Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 15, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Kaiser Aluminum Corp | ||
Entity Central Index Key | 811,596 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 16,093,993 | ||
Entity Well Known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.7 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 125.6 | $ 51.1 |
Short-term investments | 36.7 | 183.7 |
Receivables: | ||
Trade receivables, net | 179.8 | 165 |
Other | 25.6 | 15.5 |
Contract assets | 54.9 | 0 |
Inventories | 215.1 | 207.9 |
Prepaid expenses and other current assets | 18.9 | 33.4 |
Total current assets | 656.6 | 656.6 |
Property, plant and equipment, net | 611.8 | 571.4 |
Deferred tax assets – net | 35.9 | 72 |
Intangible assets, net | 32.4 | 25 |
Goodwill | 44 | 18.8 |
Other assets | 38.6 | 41.4 |
Total | 1,419.3 | 1,385.2 |
Current liabilities: | ||
Accounts payable | 121.4 | 90 |
Accrued salaries, wages and related expenses | 40.1 | 42.6 |
Other accrued liabilities | 44 | 40.5 |
Total current liabilities | 205.5 | 173.1 |
Net liabilities of Salaried VEBA | 32.4 | 31.9 |
Deferred tax liabilities | 4.2 | 4.3 |
Long-term liabilities | 66.4 | 60 |
Long-term debt | 370.4 | 369.6 |
Total liabilities | 678.9 | 638.9 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, 5,000,000 shares authorized at both December 31, 2018 and December 31, 2017; no shares were issued and outstanding at December 31, 2018 and December 31, 2017 | 0 | 0 |
Common stock, par value $0.01, 90,000,000 shares authorized at both December 31, 2018 and December 31, 2017; 22,471,705 shares issued and 16,234,603 shares outstanding at December 31, 2018; 22,393,537 shares issued and 16,773,586 shares outstanding at December 31, 2017 | 0.2 | 0.2 |
Additional paid in capital | 1,059.3 | 1,055.9 |
Retained earnings | 150.2 | 85.5 |
Treasury stock, at cost, 6,237,102 shares at December 31, 2018 and 5,619,951 shares at December 31, 2017 | (420.5) | (358.6) |
Accumulated other comprehensive loss | (48.8) | (36.7) |
Total stockholders' equity | 740.4 | 746.3 |
Total | $ 1,419.3 | $ 1,385.2 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 90,000,000 | 90,000,000 |
Common Stock, Shares, Issued | 22,471,705 | 22,393,537 |
Common Stock, Shares, Outstanding | 16,234,603 | 16,773,586 |
Treasury Stock, Shares | 6,237,102 | 5,619,951 |
Statements of Consolidated Inco
Statements of Consolidated Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Income Statement [Abstract] | |||||||||||||||
Revenues | $ 389.4 | $ 393.1 | $ 415.4 | $ 388 | $ 353.1 | $ 332.8 | $ 356.3 | $ 355.3 | $ 1,585.9 | $ 1,397.5 | $ 1,330.6 | ||||
Cost of Goods and Services Sold | 317.3 | 323.3 | 343.4 | 316.7 | 277.2 | 256.4 | 289.6 | 262.7 | 1,300.7 | [1] | 1,085.9 | [1] | 1,000.8 | [1] | |
Costs and expenses: | |||||||||||||||
Lower of cost or market inventory write-down | 0 | 0 | 4.9 | ||||||||||||
Depreciation and amortization | 43.9 | 39.7 | 36 | ||||||||||||
Selling, general, administrative, research and development | [2] | 96.3 | 97.5 | 105 | |||||||||||
Goodwill impairment | 18.4 | 0 | 18.4 | 0 | |||||||||||
Other operating charges, net | 1.4 | 0.8 | 2.8 | ||||||||||||
Total costs and expenses | 1,442.3 | 1,242.3 | 1,149.5 | ||||||||||||
Operating income | 36.9 | 34.9 | 34.7 | 37.1 | 41.9 | 41.5 | 12.5 | 59.3 | 143.6 | 155.2 | 181.1 | ||||
Other expense: | |||||||||||||||
Interest expense | (22.7) | (22.2) | (20.3) | ||||||||||||
Other expense, net – Note 12 | (0.9) | 0 | (13.6) | ||||||||||||
Income before income taxes | 120 | 133 | 147.2 | ||||||||||||
Income tax provision | (28.3) | (87.6) | (55.5) | ||||||||||||
Net income | $ 23.6 | $ 21.7 | $ 20.7 | $ 25.7 | $ (15.2) | $ 19.9 | $ 4.7 | $ 36 | $ 91.7 | $ 45.4 | $ 91.7 | ||||
Net income per common share: | |||||||||||||||
Basic (in dollars per share) | $ 1.44 | $ 1.31 | $ 1.24 | $ 1.54 | $ (0.90) | $ 1.18 | $ 0.28 | $ 2.07 | $ 5.53 | $ 2.67 | $ 5.15 | ||||
Diluted (in dollars per share) | 1.41 | 1.29 | 1.22 | 1.51 | (0.90) | 1.16 | 0.27 | 2.04 | $ 5.43 | $ 2.63 | $ 5.09 | ||||
Weighted-average number of common shares outstanding (in thousands): | |||||||||||||||
Basic (in shares) | 16,585 | 16,996 | 17,813 | ||||||||||||
Diluted (in shares) | 16,874 | 17,259 | 18,033 | ||||||||||||
Dividends declared per common share (in dollars per share) | $ 0.55 | $ 0.55 | $ 0.55 | $ 0.55 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 2.20 | $ 2 | $ 1.80 | ||||
[1] | See Note 7 for discussion of our adoption of ASU 2017-12 (as defined in Note 1 | ||||||||||||||
[2] | See Note 1 for discussion of our adoption of ASU 2017-07 (as defined in Note 1 ) and the related reclassification of amounts previously presented in the Statements of Consolidated Income within Selling, general, administrative, research and development and now included within Other expense, net. |
Statements of Consolidated Comp
Statements of Consolidated Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net income | $ 91.7 | $ 45.4 | $ 91.7 |
Other comprehensive income (loss), net of tax – Note 10: | |||
Defined benefit pension plan and Salaried VEBA | 2.9 | (1.4) | (5.8) |
Available for sale securities | (0.6) | 0.5 | 0.9 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | (13.9) | 0.7 | 0 |
Foreign currency translation | (0.1) | 0.2 | (0.1) |
Other comprehensive loss, net of tax | (11.7) | 0 | (5) |
Comprehensive income | $ 80 | $ 45.4 | $ 86.7 |
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 | Before Cumulative Adjustment | Before Cumulative AdjustmentCommon Stock | Before Cumulative AdjustmentAdditional Paid In Capital | Before Cumulative AdjustmentRetained Earnings | Before Cumulative AdjustmentTreasury Stock | Before Cumulative AdjustmentAccumulated Other Comprehensive Loss | |
Beginning balance, shares at Dec. 31, 2015 | 18,053,747 | ||||||||||||
Beginning balance at Dec. 31, 2015 | $ 774.4 | $ 0.2 | $ 1,036.5 | $ 15.9 | $ (246.5) | $ (31.7) | |||||||
Stockholders' Equity [Roll Forward] | |||||||||||||
Net income | $ 91.7 | $ 91.7 | |||||||||||
Other comprehensive income (loss), net of tax | (5) | $ (5) | |||||||||||
Issuance of non-vested shares to employees | 9,702 | ||||||||||||
Issuance of common shares to non-employee directors | 0.1 | $ 0.1 | |||||||||||
Issuance of common shares to directors, shares | 1,474 | ||||||||||||
Issuance of common shares to employees upon vesting of restricted stock units and performance shares, shares | 66,810 | ||||||||||||
Issuance of common shares to employees upon option exercises and vesting of restricted stock units and performance shares | 1.2 | 1.2 | |||||||||||
Cancellation of employee non-vested shares, shares | (379) | ||||||||||||
Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares, shares | (36,055) | ||||||||||||
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | $ (2.9) | (2.9) | |||||||||||
Repurchase of common stock, shares | (443,838) | (443,838) | |||||||||||
Repurchase of common stock | $ (34.9) | $ (34.9) | |||||||||||
Cash dividends on common stock | [1] | (32.4) | (32.4) | ||||||||||
Amortization of unearned equity compensation | 11.7 | 11.7 | |||||||||||
Dividends on unvested equity awards that were canceled | 0.1 | 0.1 | |||||||||||
Ending balance, shares at Dec. 31, 2016 | 17,651,461 | ||||||||||||
Ending balance at Dec. 31, 2016 | (36.7) | $ 804.7 | $ 0.2 | $ 1,047.4 | $ 75.2 | $ (281.4) | $ (36.7) | ||||||
Stockholders' Equity [Roll Forward] | |||||||||||||
Net income | 45.4 | 45.4 | |||||||||||
Issuance of non-vested shares to employees | 11,817 | ||||||||||||
Issuance of common shares to non-employee directors | 0.2 | 0.2 | |||||||||||
Issuance of common shares to directors, shares | 2,282 | ||||||||||||
Issuance of common shares to employees upon vesting of restricted stock units and performance shares, shares | 103,652 | ||||||||||||
Issuance of common shares to employees upon vesting of restricted stock units and performance shares | 0 | ||||||||||||
Cancellation of employee non-vested shares, shares | (451) | ||||||||||||
Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares, shares | (56,495) | ||||||||||||
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | $ (4.5) | (4.5) | |||||||||||
Repurchase of common stock, shares | (938,680) | (938,680) | |||||||||||
Repurchase of common stock | $ (77.8) | (77.8) | |||||||||||
Cancellation of treasury stock | (0.2) | (0.4) | 0.6 | ||||||||||
Cash dividends on common stock | [1] | (35) | (35) | ||||||||||
Amortization of unearned equity compensation | $ 13 | 13 | |||||||||||
Ending balance, shares at Dec. 31, 2017 | 16,773,586 | 16,773,586 | |||||||||||
Ending balance at Dec. 31, 2017 | $ 746.3 | $ 0.2 | 1,055.9 | 85.5 | (358.6) | (36.7) | |||||||
Stockholders' Equity [Roll Forward] | |||||||||||||
Cumulative-effect adjustment | 0.3 | 0.3 | |||||||||||
Net income | 91.7 | 91.7 | |||||||||||
Other comprehensive income (loss), net of tax | (11.7) | (11.7) | |||||||||||
Issuance of non-vested shares to employees | 9,009 | ||||||||||||
Issuance of common shares to non-employee directors | 0.2 | 0.2 | |||||||||||
Issuance of common shares to directors, shares | 1,954 | ||||||||||||
Issuance of common shares to employees upon vesting of restricted stock units and performance shares, shares | 135,400 | ||||||||||||
Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares, shares | (68,195) | ||||||||||||
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | $ (6.9) | (6.9) | |||||||||||
Repurchase of common stock, shares | (617,151) | (617,151) | |||||||||||
Repurchase of common stock | $ (61.9) | (61.9) | |||||||||||
Cash dividends on common stock | [1] | (37.7) | (37.7) | ||||||||||
Amortization of unearned equity compensation | $ 10.1 | 10.1 | |||||||||||
Ending balance, shares at Dec. 31, 2018 | 16,234,603 | 16,234,603 | |||||||||||
Ending balance at Dec. 31, 2018 | $ 740.4 | $ 0.2 | $ 1,059.3 | $ 150.2 | $ (420.5) | $ (48.8) | |||||||
[1] | Dividends declared per common share were $2.20 , $2.00 and $1.80 during 2018 , 2017 and 2016 |
Statement of Consolidated Sto_2
Statement of Consolidated Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Financial Position [Abstract] | |||||||||||
Dividends declared per common share (in dollars per share) | $ 0.55 | $ 0.55 | $ 0.55 | $ 0.55 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 2.20 | $ 2 | $ 1.80 |
Statement of Consolidated Cash
Statement of Consolidated Cash Flows $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | ||||
Cash flows from operating activities: | ||||||
Net income | $ 91.7 | $ 45.4 | $ 91.7 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation of property, plant and equipment | 42.1 | 38.3 | 34.5 | |||
Amortization of definite-lived intangible assets | 1.8 | 1.4 | 1.5 | |||
Amortization of debt discount and debt issuance costs | 1 | 1.2 | 1.1 | |||
Deferred income taxes | 36.7 | 89 | 57.4 | |||
Non-cash equity compensation | 10.3 | 13.3 | 11.8 | |||
Lower of cost or market inventory write-down | 0 | 0 | 4.9 | |||
Non-cash asset impairment charges | 1.4 | 19.2 | 2.8 | |||
Loss on repurchase of Senior Notes | 0 | 0 | 11.1 | |||
(Gain) loss on disposition of property, plant and equipment | (0.2) | (0.5) | 0.2 | |||
Gain on disposition of available for sale securities | (2.9) | (2.3) | 0 | |||
Non-cash defined benefit net periodic benefit cost (income) | 6.6 | 4.8 | 3.7 | |||
Other non-cash changes in assets and liabilities | (21.9) | 15.5 | 17.5 | |||
Changes in operating assets and liabilities: | ||||||
Trade and other receivables | (22.3) | (30.9) | (26.8) | |||
Contract assets | 0.7 | 0 | 0 | |||
Inventories, excluding lower of cost or market write-down | (45) | (6.3) | 13.1 | |||
Prepaid expenses and other current assets | (0.4) | (1.7) | (8) | |||
Accounts payable | 29.2 | 13 | 3.4 | |||
Accrued liabilities | (2.6) | (4.7) | 26.2 | |||
Annual variable cash contributions to VEBAs | (15.7) | (20) | (19.5) | |||
Long-term assets and liabilities, net | (4.1) | (2.2) | (26) | |||
Net cash provided by operating activities1 | 150.2 | [1] | 141.5 | [1] | 165.6 | [1] |
Cash flows from investing activities: | ||||||
Capital expenditures | (74.1) | (75.5) | (76.1) | |||
Purchase of available for sale securities | (135.2) | (247.5) | (255.3) | |||
Payments to Acquire Available-for-sale Securities, Equity | (0.9) | 0 | 0 | |||
Proceeds from disposition of available for sale securities | 283.9 | 296.9 | 55 | |||
Cash payment for acquisition of Imperial Machine & Tool Co., net of cash received | (43.2) | 0 | 0 | |||
Proceeds from disposal of property, plant and equipment | 0.6 | 0.6 | 0 | |||
Net cash provided by (used in) investing activities | 31.1 | [2] | (25.5) | [2] | (276.4) | [2] |
Cash flows from financing activities: | ||||||
Repayment of principal and redemption premium of 8.25% Senior Notes | 0 | 0 | (206) | |||
Issuance of 5.875% Senior Notes | 0 | 0 | 375 | |||
Cash paid for debt issuance costs | 0 | 0 | 6.8 | |||
Proceeds from stock option exercises | 0 | 0 | 1.2 | |||
Repayment of capital lease | (0.7) | (0.4) | 0 | |||
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | (6.9) | (4.5) | (2.9) | |||
Repurchase of common stock | (60.7) | (79.5) | (33.3) | |||
Cash dividends and dividend equivalents paid | (37.7) | (35) | (32.4) | |||
Net cash (used in) provided by financing activities | (106) | [2] | (119.4) | [2] | 94.8 | [2] |
Net increase (decrease) in cash, cash equivalents and restricted cash during the period | 75.3 | (3.4) | (16) | |||
Cash, cash equivalents and restricted cash at end of period | 125.6 | 51.1 | 55.2 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 139.6 | $ 64.3 | $ 67.7 | |||
[1] | See Note 11 | |||||
[2] | See Note 15 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies In this Annual Report on Form 10-K (this "Report"), unless the context otherwise requires, references in these notes to consolidated financial statements to "Kaiser Aluminum Corporation," "we," "us," "our," "the Company" and "our Company" refer collectively to Kaiser Aluminum Corporation and its subsidiaries. Organization and Nature of Operations. Kaiser Aluminum Corporation specializes in the production of semi-fabricated specialty aluminum mill products, such as aluminum plate and sheet and extruded and drawn products, for the following end market applications: aerospace and high strength ("Aero/HS products"), automotive ("Automotive Extrusions"), general engineering ("GE products") and other industrial ("Other products"). Our business is organized into one operating segment. See Note 16 for additional information regarding our business, product and geographical area information and concentration of risk. Principles of Consolidation and Basis of Presentation. The consolidated financial statements include the accounts of our wholly owned subsidiaries and are prepared in accordance with United States generally accepted accounting principles ("GAAP") and the rules and regulations of the Securities and Exchange Commission ("SEC"). Intercompany balances and transactions are eliminated. We have reclassified certain amounts in prior-period financial statements to conform to the current period's presentation. On the Statements of Consolidated Income, prior period presentation of Unrealized (gain) loss on derivative instruments is now contained within "Cost of products sold, excluding depreciation and amortization and other items." See Note 7 for additional details. See Note 16 for changes relating to the consolidation of the All Other business unit into the Fabricated Products reporting segment. 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. Fair Value Measurements. 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. We also 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 each period include our derivative instruments, equity investments related to our deferred compensation plan and debt investment securities classified as available for sale securities (see Note 4 and Note 7 ). Additionally, we measure at fair value once each year at December 31 the plan assets of the Salaried VEBA (defined in Note 4 ) and our Canadian defined benefit pension plan. We record our remaining financial assets and liabilities at carrying value. Goodwill is tested for impairment during the fourth quarter on an annual basis, as well as on an interim basis, as warranted, at the time of relevant events and changes in circumstances. Intangible assets with definite lives are initially recognized at fair value and subsequently amortized over the estimated useful lives to reflect the pattern in which the economic benefits of the intangible assets are consumed. In the event the pattern cannot be reliably determined, we use a straight-line amortization method. Whenever events or changes in circumstances indicate that the carrying amount of the intangible assets may not be recoverable, the intangible assets are reviewed for impairment. For a discussion of our business acquisition in 2018, the goodwill impairment charge we recorded during 2017 and the intangible asset non-cash impairment charge we recorded during 2016, see Note 3 . For a majority of our remaining non-financial assets and liabilities, which include contract assets, inventories and property, plant and equipment, we are not required to measure their fair value on a recurring basis. However, if certain triggering events occur, an evaluation of the affected non-financial asset or liability will be required, which could result in a reduction to the carrying amount of such asset or liability. See " Inventories" below for a discussion of the lower of cost or market inventory write-down recorded in 2016 and see " Property, Plant and Equipment, Net" below for a discussion of impairment charges on idled assets recorded during 2018, 2017 and 2016. Cash and Cash Equivalents. We consider only those short-term, highly liquid investments which, when purchased, have maturities of 90 days or less to be cash equivalents. Our cash equivalents consist primarily of funds in commercial paper, money market funds and other highly liquid investments, which are classified within Level 1 of the fair value hierarchy with the exception of commercial paper, which is classified within Level 2 of the fair value hierarchy (see Note 7 ). Restricted Cash. We are required to keep on deposit certain amounts that are pledged or held as collateral relating to workers' compensation and other agreements. We account for such deposits as restricted cash (see Note 15 ). From time to time, such restricted funds could be returned to us or we could be required to pledge additional cash. Available for Sale Securities. We account for investments in certain marketable debt securities as available for sale securities. Such securities are recorded at fair value (see Note 7 ), with net unrealized gains and losses, net of income taxes, reflected in Accumulated other comprehensive loss as a component of Stockholders' equity. Realized gains and losses from the sale of marketable debt securities, if any, are determined on a specific identification basis. Debt investment securities with an original maturity of 90 days or less are classified as Cash and cash equivalents (see Note 2 ). Debt investment securities with an original maturity of greater than 90 days are presented as Short-term investments on the Consolidated Balance Sheets. In addition to debt investment securities, we also hold assets in various investment funds managed by a third-party trust in connection with our deferred compensation program (see Note 4 ). Trade Receivables and Allowance for Doubtful Accounts. Trade receivables primarily consist of amounts billed to customers for products sold. Accounts receivable are generally due within 30 to 90 days . For the majority of our receivables, we establish an allowance for doubtful accounts based upon collection experience and other factors. On certain other receivables where we are aware of a specific customer's inability or reluctance to pay, an allowance for doubtful accounts is established against amounts due, to reduce the net receivable balance to the amount we reasonably expect to collect. However, if circumstances change, our estimate of the recoverability of accounts receivable could be different. Circumstances that could affect our estimates include, but are not limited to, customer credit issues and general economic conditions. Accounts are written off once deemed to be uncollectible. Any subsequent cash collections relating to accounts that have been previously written off are typically recorded as a reduction to total bad debt expense in the period of payment. Write-offs for 2018 , 2017 and 2016 were immaterial to the consolidated financial statements. Inventories. Inventories are stated at the lower of cost or market value. On March 31, 2016, we recorded a lower of cost or market inventory write-down of $4.9 million as a result of a decrease in our net realizable value of inventory. The net realizable value reflected commitments as of that date from customers to purchase our inventory at prices that exceeded the Midwest Transaction Price, which reflects the primary aluminum supply/demand dynamics in North America, reduced by an approximate normal profit margin. There were no additional lower of cost or market inventory adjustments since the quarter ended March 31, 2016. Finished products, work-in-process and raw material inventories are stated on the last-in, first-out ("LIFO") basis. At December 31, 2018 and December 31, 2017 , the current cost of our inventory exceeded its stated LIFO value by $31.7 million and $24.3 million , respectively. The stated LIFO value of our inventory represented its net realizable value (less a normal profit margin). Other inventories are stated on the first-in, first-out basis and consist of operating supplies, which are materials and supplies to be consumed during the production process. 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 (see Note 2 for the components of inventories). Replacement Parts. Replacement parts consist of preventative maintenance and capital spare parts, which are stated on the first-in, first-out basis. Replacement parts are recorded within Prepaid expenses and other current assets or Other assets depending on whether or not the expected utilization of the replacement parts is to occur within the current operating cycle. Property, Plant and Equipment, Net. Property, plant and equipment, net, is recorded at cost and includes construction in progress (see Note 2 ). Interest related to the construction of qualifying assets is capitalized as part of the construction costs. The amount of interest expense capitalized as construction in progress was $1.7 million , $2.2 million and $2.9 million during 2018 , 2017 and 2016 , respectively. Depreciation is computed using the straight-line method at rates based on the estimated useful lives of the various classes of assets. Capital lease assets and leasehold improvements are depreciated on a straight-line basis over the shorter of the estimated useful lives of the assets or the lease term. The principal estimated useful lives are as follows: Range (in years) Land improvements 3 - 25 Buildings and leasehold improvements 15 - 45 Machinery and equipment 1 - 24 Capital lease assets 2 - 10 Depreciation expense is not included in Cost of products sold, excluding depreciation and amortization and other items, but is included in Depreciation and amortization. Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset or group of assets may not be recoverable. We regularly assess whether events and circumstances with the potential to trigger impairment have occurred and rely on a number of factors, including operating results, business plans, economic projections and anticipated future cash flow, to make such assessments. We use an estimate of the future undiscounted cash flows of the related asset or asset group over the estimated remaining life of such asset(s) in measuring whether the asset(s) are recoverable. Measurement of the amount of impairment, if any, is based on the difference between the carrying value of the asset(s) and the estimated fair value of such asset(s). Fair value is determined through a series of standard valuation techniques. We recorded impairment charges of $1.4 million , $0.8 million and $0.2 million in 2018 , 2017 and 2016 , respectively, to reflect the scrap value of idled assets we determined not to deploy for future use. Asset impairment charges are included in Other operating charges, net , in the Statements of Consolidated Income. 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. Derivative Financial Instruments. Consistent with guidelines established by management and approved by our Board of Directors, we use derivative financial instruments to mitigate our exposure to changes in the market price of aluminum, alloying metals, energy and, to a lesser extent, foreign currency exchange rates. We do not use derivative financial instruments for trading or other speculative purposes. Hedging transactions are executed centrally on behalf of all of our operations to minimize transaction costs, monitor consolidated net exposures and allow for increased responsiveness to changes in market factors. We reflect the fair value of all of our derivative instruments on our Consolidated Balance Sheets (see Note 7 ). The fair value of hedges settling within one year is included in Prepaid expenses and other current assets or Other accrued liabilities. The fair value of hedges settling beyond one year is included in Other assets or Long-term liabilities. Prior to our adoption of ASU 2017-12 (as defined below under " Adoption of New Accounting Standards "), we did not meet the documentation requirements for hedge (deferral) accounting related to our aluminum and energy derivatives. Accordingly, we recorded unrealized gain or loss associated with these hedges in the Statements of Consolidated Income. Subsequent to our adoption of ASU 2017-12 on January 1, 2018, our aluminum and energy derivatives qualified for hedge (deferral) accounting and, as such, we designated such hedges as cash flow hedges. Forward swap contracts for zinc and copper ("Alloying Metals") used in our fabrication operations are also designated as cash flow hedges. Unrealized gains and losses associated with our cash flow hedges are deferred in Other comprehensive loss, net of tax and reclassified to Cost of products sold, excluding depreciation and amortization and other items when such hedges settle (see Note 7 ). 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. We do not meet the documentation requirements for hedge (deferral) accounting related to foreign currency derivatives and, as such, gains and losses (both unrealized and realized) related to our foreign currency forward contracts are reflected as an increase or reduction in Other income, net. Self Insurance of Workers' Compensation and Employee Healthcare Liabilities . We self-insure the majority of the costs of workers' compensation benefits and employee healthcare benefits and rely on insurance coverage to protect us from large losses on individual claims. Workers' compensation liabilities are based on a combination of estimates for: (i) incurred-but-not- reported claims and (ii) the ultimate expense of incurred claims. Such estimates are based on judgment, using our historical claims data and information and analysis provided by actuarial and claims advisors, our insurance carriers and other professionals. Our undiscounted workers' compensation liabilities were estimated at $27.6 million and $24.8 million at December 31, 2018 and December 31, 2017 , respectively. However, we account for our workers' compensation accrued liability on a discounted basis (see Note 2 ), using a discount rate of 3.00% at December 31, 2018 and 2.25% at December 31, 2017 . Accrued liabilities for employee healthcare benefits, which are estimates of unpaid incurred medical and prescription drug costs as provided by our healthcare administrators, were $3.6 million and $3.5 million at December 31, 2018 and December 31, 2017 , respectively. Debt Issuance Costs. Costs incurred in connection with debt financing are deferred and amortized over the estimated term of the related borrowing. Such amortization is included in Interest expense and may be capitalized as part of construction in progress (see Note 8 ). Conditional Asset Retirement Obligations ( " CAROs " ). We have CAROs at several of our manufacturing facilities. Our CAROs can be separated into two primary categories: (i) legal obligations related to the removal and disposal of asbestos and (ii) asset retirement obligations related to future lease terminations. The majority of our CAROs relate to the first category and consist of incremental costs that would be associated with the removal and disposal of asbestos (all of which is believed to be fully contained and encapsulated within walls, floors, ceilings or piping) of certain of our older facilities if such facilities were to undergo major renovation or be demolished. We estimate incremental costs for special handling, removal and disposal costs of materials that may or will give rise to CAROs and then discount the expected costs back to the current year using a credit-adjusted, risk-free rate. When it is unclear when or if CAROs will be triggered, we use probability weighting for possible timing scenarios to determine the probability-weighted liability amounts that should be recognized in our consolidated financial statements (see Note 9 ). Environmental Contingencies. With respect to environmental loss contingencies, we record a loss contingency whenever a contingency is probable and reasonably estimable (see Note 9 ). Accruals for estimated losses from environmental remediation obligations are generally recognized no later than the completion of the remedial feasibility study. Such accruals are adjusted as information develops or circumstances change. Costs of future expenditures for environmental remediation obligations are not discounted to their present value. Accruals for expected environmental costs are included in Other accrued liabilities or Long-term liabilities, as appropriate (see Note 2 ). Environmental expense relating to continuing operations is included in Cost of products sold, excluding depreciation and amortization and other items 1 in the Statements of Consolidated Income. Environmental expense relating to non-operating locations is included in Selling, general, administrative, research and development ("SG&A and R&D") in the Statements of Consolidated Income. Advertising Costs. Advertising costs, which are included in SG&A and R&D, are expensed as incurred. Advertising costs for 2018 , 2017 and 2016 were $0.3 million , $0.7 million and $0.4 million , respectively. Research and Development Costs. Research and development costs, which are included in SG&A and R&D, are expensed as incurred. Research and development costs for 2018 , 2017 and 2016 were $9.8 million , $10.0 million and $10.2 million , respectively. Major Maintenance Activities. All major maintenance costs are accounted for using the direct expensing method. Leases. For leases that contain predetermined fixed escalations of the minimum rent, we recognize the related rent expense on a straight-line basis from the date we take possession of the property to the end of the initial lease term. We record any difference between the straight-line rent amounts and the amount payable under the lease as part of deferred rent in Other accrued liabilities or Long-term liabilities, as appropriate. Deferred rent for all periods presented was not material. Stock-Based Compensation. Stock-based compensation in the form of service-based awards is provided to executive officers, certain employees and non-employee directors and is accounted for at fair value. We measure the cost of services received in exchange for an award of equity instruments based on the grant-date fair value of the award and the number of awards expected to ultimately vest. The grant-date fair value is determined based on the stock price on the date of grant, adjusted for expected dividends or dividend equivalents to be paid during the vesting period. We also grant performance-based awards to executive officers and other key employees. The methodology used to value these performance-based awards is based on the nature of the performance conditions within those awards. Awards that are subject to performance conditions pertaining to total shareholder return are valued on the date of grant using a Monte Carlo valuation model. The key assumptions in applying this model are an expected volatility and a risk-free interest rate. Awards with performance conditions pertaining to our cost performance and awards with performance conditions pertaining to our economic value added performance are valued based on our stock price at the date of grant. For more information on our stock-based compensation, see Note 6 . The cost of service-based awards, including time-vested restricted stock and performance shares, is recognized as an expense over the requisite service period of the award on a straight-line basis. Adjustments to expense related to forfeitures are recorded in the period in which they occur. For performance shares with performance conditions pertaining to our cost performance and economic value added performance, the related expense is updated quarterly by adjusting the estimated number of shares expected to vest based on the most probable outcome of the performance condition (see Note 6 ). Income Taxes. Deferred income taxes reflect the future tax effect of temporary differences between the carrying amount of assets and liabilities for financial and income tax reporting and are measured by applying statutory tax rates in effect for the year during which the differences are expected to reverse. In accordance with Accounting Standards Codification ("ASC") Topic 740, Income Taxes ("ASC 740"), we use a "more likely than not" threshold for recognition of tax attributes that are subject to uncertainties and measure any reserves in respect of such expected benefits based on their probability. Deferred tax assets are reduced by a valuation allowance to the extent it is more likely than not that the deferred tax assets will not be realized (see Note 13 ). Adoption of New Accounting Pronouncements Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09") , 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. We adopted ASU 2014-09, including its subsequent amendments as codified under ASC Topic 606 ("ASC 606"), during the quarter ended March 31, 2018. Upon adoption under the modified retrospective method, we elected to apply the guidance only to contracts that were not completed at the date of initial application, which resulted in a cumulative-effect increase of $10.1 million (see Note 11 ) to our Retained earnings (net of a $3.3 million tax impact) on January 1, 2018. Comparative information in this Report has not been adjusted and continues to be reported under previous revenue recognition guidance within ASC Topic 605 ("ASC 605"). See Statement of Consolidated Stockholders' Equity and Note 11 for details of the significant changes and quantitative impacts of the changes, as well as our policy on revenue recognition. ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"), was issued in January 2016. The amendments in ASU 2016-01 require equity investments to be measured at fair value with changes in fair value recognized in net income. Equity investments related to our deferred compensation plan that had previously been accounted for as available for sale securities are now accounted for as equity investments with changes in fair value recorded within net income. As such, we recorded a cumulative-effect increase of $0.6 million to our Retained earnings on January 1, 2018 to remove the balance of mark-to-market adjustments recorded within Accumulated other comprehensive income at December 31, 2017. See Note 4 for additional details on our deferred compensation plan, including the fair value of related equity investments. ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost ("ASU 2017-07"), was issued in March 2017. ASU 2017-07 amends the requirements related to the income statement presentation of the components of net periodic postretirement benefit cost for our defined benefit pension and other postretirement plans. Specifically, ASU 2017-07 requires us to: (i) disaggregate the current-service-cost component from the "other components" of net benefit cost and present it with other current compensation costs for related employees in the income statement and (ii) present the other components elsewhere in the income statement and outside of income from operations. As a result of our retrospective adoption of ASU 2017-07, we reclassified amounts that had previously been presented within Selling, general, administrative, research and development to Other expense, net, in the Statements of Consolidated Income. See Note 4 for further discussion of our defined benefit pension and other postretirement plans. ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities ("ASU 2017-12"), was issued in August 2017. The amendments under ASU 2017-12 refine and expand hedge accounting requirements for both financial (e.g., interest rate) and commodity risks. Its provisions create more transparency around how economic results are presented, both on the face of the financial statements and in the related notes. It also makes certain targeted improvements to simplify the application of hedge accounting guidance. There was no cumulative effect adjustment to record as a result of early adopting ASU 2017-12 in the quarter ended March 31, 2018; however, we designated all of our outstanding commodity hedges as cash flow hedges beginning January 1, 2018. We therefore have significantly reduced the mark-to-market adjustments that have historically been recorded within the Statements of Consolidated Income. These adjustments have instead been recorded within Other comprehensive loss, net of tax beginning in the quarter ended March 31, 2018. See Note 7 for further discussion of our derivatives and hedging programs. There were no material impacts on our consolidated financial statements resulting from our early adoption in the first quarter of 2018 of ASU No. 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. Accounting Pronouncements Issued But Not Yet Adopted 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 plan to adopt this standard using the optional transition method provided for under ASU No. 2018-11, Leases (Topic 842): Targeted Improvements ("ASU 2018-11"), which will allow us to apply the standard as of January 1, 2019, rather than as of the earliest period presented. We plan to elect the package of practical expedients within ASC Topic 842, which, among other things, will allow us to carry forward historical lease classification. We also plan to elect the practical expedient that will allow us to exclude leases with a term of twelve months or less from our balance sheet. However, we are not electing to adopt the hindsight practical expedient. We estimate that the adoption of ASU 2016-02 will impact our consolidated balance sheet as of January 1, 2019 through the creation of a right-of-use asset and lease liability for operating leases in the range of $20.0 million to $30.0 million . We are still in process of estimating our incremental borrowing rate as of January 1, 2019, updating our policies and procedures to incorporate updates to lease accounting as well as assessing our control environment for the resulting changes. ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), was issued in June 2016. Under ASU 2016-13, existing guidance on reporting credit losses for trade and other receivables and available for sale debt securities will be replaced with a new forward-looking "expected loss" model that generally will result in the earlier recognition of allowances for losses. We are currently in the process of evaluating the impact of adopting ASU 2016-13 in 2020, but do not expect it to have a material impact on our consolidated financial statements. ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract ("ASU 2018-15"), was issued in August 2018. Under ASU 2018-15, requirements for capitalizing implementation costs incurred in a hosting arrangement (cloud computing) that is a service contract, are to be aligned with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. We are currently in the process of evaluating the impact of adopting ASU 2018-15 in 2020, but do not expect it to have a material impact on our consolidated financial statements. We do not anticipate any material impact on our consolidated financial statements upon the adoption of the following accounting pronouncements: (i) ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting ; (ii) ASU No. 2018-08, Not-for-Profit Entities (Topic 958): Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made ; (iii) ASU 2018-13 , Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement ; and (iv) ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information December 31, 2018 December 31, 2017 (In millions of dollars) Cash and Cash Equivalents Cash and money market funds $ 22.9 $ 23.5 Commercial paper 102.7 27.6 Total $ 125.6 $ 51.1 December 31, 2018 December 31, 2017 (In millions of dollars) Trade Receivables, net Billed trade receivables $ 179.5 $ 165.9 Unbilled trade receivables 1.1 0.3 Trade receivables, gross 180.6 166.2 Allowance for doubtful receivables (0.8 ) (1.2 ) Trade receivables, net $ 179.8 $ 165.0 Inventories Finished products $ 48.0 $ 63.8 Work-in-process 85.6 78.3 Raw materials 75.0 61.3 Operating supplies 6.5 4.5 Total $ 215.1 $ 207.9 Property, Plant and Equipment, net Land and improvements $ 21.4 $ 21.1 Buildings and leasehold improvements 97.0 92.1 Machinery and equipment 755.6 689.1 Construction in progress 43.6 35.1 Property, plant and equipment – gross 917.6 837.4 Accumulated depreciation (307.4 ) (267.9 ) Assets held for sale 1.6 1.9 Property, plant and equipment, net $ 611.8 $ 571.4 Other Accrued Liabilities Uncleared cash disbursements $ 4.8 $ 7.3 Accrued income taxes and other taxes payable 6.5 6.8 Accrued annual contribution to VEBAs – Note 4 2.1 15.7 Accrued interest 2.9 2.9 Other – Note 7 27.7 7.8 Total $ 44.0 $ 40.5 Long-Term Liabilities Workers' compensation accruals $ 24.6 $ 22.6 Long-term environmental accrual – Note 9 14.3 15.8 Other long-term liabilities 27.5 21.6 Total $ 66.4 $ 60.0 |
Business Combinations, Goodwill
Business Combinations, Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Business Combinations, Goodwill and Intangible Assets | Business Combinations, Goodwill and Intangible Assets Business Combinations . On September 19, 2018, we acquired Imperial Machine and Tool Co. ("IMT"), located in Columbia, New Jersey, for $43.2 million in cash, net of cash received. IMT specializes in multi-material additive manufacturing and machining technologies for demanding aerospace and defense, automotive, high-tech and general industrial applications. The acquisition allows us to gain further insights into the potentially disruptive additive manufacturing technology and enhances our ability to address customer needs by broadening our capability to provide innovative solutions for demanding applications. The following table summarizes recognized amounts of identifiable assets acquired and liabilities assumed at the acquisition date (in millions of dollars): Cash $ 0.9 Accounts receivable 2.6 Prepaid expenses and other current assets 0.6 Inventory 2.9 Property, plant and equipment 4.1 Identifiable intangible assets with definite lives 9.2 Goodwill 25.2 Accounts payable and other current liabilities (1.4 ) Total purchase price 44.1 Less: cash acquired (0.9 ) Purchase price, net of cash acquired $ 43.2 Total acquisition-related costs were approximately $0.6 million , all of which were expensed during the year ended December 31, 2018 and were included in Selling, general, administrative, research and development in the Statements of Consolidated Income. Goodwill. The following table presents the changes to goodwill during the year ended December 31, 2018 (in millions of dollars): December 31, 2017 Increase to Goodwill 1 December 31, 2018 Goodwill $ 37.2 $ 25.2 $ 62.4 Accumulated impairment loss (18.4 ) — (18.4 ) Carrying value $ 18.8 $ 25.2 $ 44.0 ____________________ 1 The goodwill of $25.2 million arising from the acquisition of IMT after allocating the consideration paid, net of cash received, to all other identifiable assets is expected to be deductible for income tax purposes over the next 15 years . Due to a reduction in our long-term demand assumption for hard alloy extruded shapes, we recorded an impairment charge with respect to our Chandler, Arizona (Extrusion) facility of $18.4 million during the quarter ended June 30, 2017 within Operating income in the Statements of Consolidated Income. Intangible Assets. Information regarding our intangible assets consisted of the following as of each period presented (in millions of dollars, except amortization periods): Weighted-Average Amortization Period (in years) Gross Amount Accumulated Amortization Intangible Assets, Net December 31, 2018 Customer relationships 24 $ 36.1 $ (11.1 ) $ 25.0 Trade name 10 2.4 (0.1 ) 2.3 Non-compete agreement 5 5.4 (0.3 ) 5.1 Total $ 43.9 $ (11.5 ) $ 32.4 December 31, 2017 Customer relationships 25 $ 34.7 $ (9.7 ) $ 25.0 Total $ 34.7 $ (9.7 ) $ 25.0 We recorded a $2.6 million non-cash impairment charge within Other operating charges, net, during the quarter ended September 30, 2016 due to the loss of a customer. We identified no other indicators of impairment associated with the remainder of our intangible assets during the years ended December 31, 2018 , December 31, 2017 or December 31, 2016 . Amortization expense relating to definite-lived intangible assets was $1.8 million for 2018 , $1.4 million for 2017 , and $1.5 million for 2016 . The expected amortization of intangible assets for each of the next five calendar years is as follows (in millions of dollars): 2019 $ 2.8 2020 2.8 2021 2.8 2022 2.8 2023 2.6 Thereafter 18.6 Total $ 32.4 |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Employee Benefits Employee Plans. Employee benefit plans include: • A defined contribution 401(k) savings plan for hourly bargaining unit employees at nine of our production facilities based on the specific collective bargaining agreement at each facility. For active bargaining unit employees at three of these production facilities, we are required to make fixed rate contributions. For active bargaining unit employees at one of these production facilities, we are required to match certain employee contributions. For active bargaining unit employees at three of these production facilities, we are required to make both fixed rate contributions and concurrent matches. For active bargaining unit employees at two remaining production facilities, we are not required to make any contributions. Fixed rate contributions either: (i) range from (in whole dollars) $800 to $2,400 per employee per year, depending on the employee's age, or (ii) vary between 2% to 10% of the employees' compensation depending on their age and years of service for employees hired prior to January 1, 2004 or is a fixed 2% annual contribution for employees hired on or after January 1, 2004. • A defined contribution 401(k) savings plan for salaried and certain hourly employees providing for a concurrent match of up to 4% of certain contributions made by employees plus an annual contribution of between 2% and 10% of their compensation depending on their age and years of service to employees hired prior to January 1, 2004. All new hires on or after January 1, 2004 receive a fixed 2% contribution annually. • A defined contribution 401(k) savings plan for certain employees providing for an annually funded discretionary Company match determined in January based on the financial results of the previous year. If a Company match is to be made, a total flat dollar amount is determined and then funded to employees' accounts based on their contribution levels. • A defined benefit pension plan for salaried employees at our London, Ontario facility, with annual contributions based on each salaried employee's age and years of service. At December 31, 2018 , approximately 62% of the plan assets were invested in equity securities and 34% of plan assets were invested in fixed income securities. The remaining plan assets were invested in short-term securities. Our investment committee reviews and evaluates the investment portfolio. The asset mix target allocation on the long-term investments is approximately 65% in equity securities, 30% in fixed income securities and 5% in short-term securities. The plan assets of our Canadian pension plan are managed by advisors selected by us, with the investment portfolio subject to periodic review and evaluation by our investment committee. The investment of assets in the Canadian pension plan is based upon the objective of maintaining a diversified portfolio of investments in order to minimize concentration of credit and market risks (such as interest rate, currency, equity price and liquidity risks). The degree of risk and risk tolerance take into account the obligation structure of the plan, the anticipated demand for funds and the maturity profiles required from the investment portfolio in light of these demands. • A non-qualified, unfunded, unsecured plan of deferred compensation for certain employees who would otherwise suffer a loss of benefits under our defined contribution plan as a result of the limitations imposed by the Internal Revenue Code of 1986 ("Code"). Despite the plan being an unfunded plan, we make an annual contribution to a rabbi trust to fulfill future funding obligations, as contemplated by the terms of the plan. The assets in the trust are held in various investment funds at certain registered investment companies (see " Fair Value of Plan Assets" below) and are at all times subject to the claims of our general creditors. No participant has a claim to any assets of the trust; however, participants are eligible to receive distributions from the trust subject to vesting and other eligibility requirements. Offsetting liabilities relating to the deferred compensation plan are included in Long-term liabilities. Upon adoption of ASU 2016-01 on January 1, 2018 (see Note 1 ), assets in the trust are accounted for as equity investments with changes in fair value recorded within Other expense, net. During the year ended December 31, 2018 , we recognized a $1.0 million loss on equity securities still held at the reporting date related to the deferred compensation plan. • An employment agreement with our chief executive officer extending through July 15, 2020. We also provide certain members of senior management, including each of our named executive officers, with benefits related to terminations of employment in specified circumstances, including in connection with a change in control, by us without cause and by the executive officer with good reason. Salaried VEBA Postretirement Obligation. Certain retirees who retired prior to 2004 and certain employees who were hired prior to February 2002 and have subsequently retired or will retire with the requisite age and service, along with their surviving spouses and eligible dependents, are eligible to participate in a voluntary employees' beneficiary association ("VEBA") that provides healthcare cost, medical cost and long-term care insurance cost reimbursement benefits ("Salaried VEBA"). We have an ongoing obligation with no express termination date to make variable cash contributions up to a maximum of $2.9 million to the Salaried VEBA. We determined that in the first quarter of 2019, we will pay approximately $2.1 million with respect to 2018. Such amount was recorded within Other accrued liabilities as of December 31, 2018 (see Note 2 ). We paid the maximum of $2.9 million with respect to 2017 during the first quarter of 2018. We account for the Salaried VEBA as a defined benefit plan in our financial statements. Union VEBA Postretirement Obligation . Certain other eligible retirees represented by certain unions, along with their surviving spouses and eligible dependents, participate in a separate VEBA ("Union VEBA"). During the first quarter of 2018, we made a $12.8 million cash contribution to the Union VEBA with respect to the nine months ended September 30, 2017. This was our final contribution. We have no ongoing obligation to make further contributions to the Union VEBA. Key Assumptions. The following data presents the key assumptions used and the amounts reflected in our consolidated financial statements with respect to our Canadian pension plan and the Salaried VEBA. We use a December 31 measurement date for all of the plans. Assumptions used to determine benefit obligations as of the periods presented were as follows: Canadian Pension Plan Salaried VEBA December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Discount rate 3.90 % 3.40 % 3.90 % 3.20 % Expected long-term return on plan assets 4.45 % 4.45 % 5.50 % 5.50 % Rate of compensation increase 3.00 % 3.00 % — — Key assumptions made in computing the net obligation of the Salaried VEBA and in total include: With respect to Salaried VEBA assets: • Based on the information received from the Salaried VEBA at December 31, 2018 and at December 31, 2017 , the Salaried VEBA assets were invested in various managed proprietary funds. • Our variable payment, if any, is treated as a funding/contribution policy and not counted as a Salaried VEBA asset at December 31 for actuarial purposes. With respect to Salaried VEBA obligations: • The accumulated postretirement benefit obligation ("APBO") for the Salaried VEBA was computed based on the level of benefits being provided by it at December 31, 2018 and December 31, 2017 . • Since the Salaried VEBA was paying a fixed annual amount to its participants at both December 31, 2018 and December 31, 2017 , no future cost trend rate increase has been assumed in computing the APBO for the Salaried VEBA. Assumptions used to determine net periodic postretirement benefit cost for the years ended December 31 were: Canadian Pension Plan Salaried VEBA 2018 2017 2016 2018 2017 2016 Discount rate 3.40 % 3.80 % 4.10 % 3.20 % 3.60 % 3.90 % Expected long-term return on plan assets 1 4.45 % 4.45 % 4.45 % 5.50 % 7.75 % 7.75 % Rate of compensation increase 3.00 % 3.00 % 3.00 % — — — _____________________ 1. The expected long-term rate of return assumption for the Salaried VEBA is based on the targeted investment portfolios provided to us by the trustee of the Salaried VEBA. Benefit Obligations and Funded Status. The following table presents the benefit obligations and funded status of our Canadian pension plan and the Salaried VEBA as of December 31, 2018 and December 31, 2017 and the corresponding amounts that are included in our Consolidated Balance Sheets (in millions of dollars): Canadian Pension Plan Salaried VEBA 2018 2017 2018 2017 Change in benefit obligation: Obligation at beginning of year $ 8.5 $ 7.0 $ 90.0 $ 86.8 Foreign currency translation adjustment (0.7 ) 0.5 — — Service cost 0.3 0.3 — — Interest cost 0.3 0.3 2.8 3.0 Prior service cost 1 — — 6.9 7.3 Actuarial (gain) loss 2 (0.6 ) 0.6 (6.8 ) (0.5 ) Plan participants contributions 0.1 0.1 — — Benefits paid by Company (0.6 ) (0.3 ) — — Benefits paid by Salaried VEBA — — (7.3 ) (6.6 ) Obligation at end of year 3 7.3 8.5 85.6 90.0 Change in plan assets: Fair market value of plan assets at beginning of year 7.3 6.1 58.1 58.2 Foreign currency translation adjustment (0.6 ) 0.5 — — Actual return on assets (0.2 ) 0.5 0.3 3.6 Plan participants contributions 0.1 0.1 — — Company contributions 0.5 0.4 2.1 2.9 Benefits paid by Company (0.6 ) (0.3 ) — — Benefits paid by Salaried VEBA — — (7.3 ) (6.6 ) Fair market value of plan assets at end of year 6.5 7.3 53.2 58.1 Net funded status 4 $ (0.8 ) $ (1.2 ) $ (32.4 ) $ (31.9 ) _____________________________ 1. The prior service cost relating to the Salaried VEBA in both 2018 and 2017 resulted from increases in the annual healthcare reimbursement benefit starting in 2018 and 2017, respectively, for plan participants. 2. The actuarial gain relating to the Salaried VEBA in 2018 was comprised of: (i) a $5.1 million gain due to a change in the discount rate; (ii) a $2.2 million gain due to a change in the projected utilization rate; offset by (iii) a $0.5 million loss due to changes in census information. The actuarial gain relating to the Salaried VEBA in 2017 was comprised of: (i) a $2.5 million gain due to changes in census information; (ii) a $1.0 million gain due to a change in the projected utilization rate; offset by (iii) a $3.0 million loss due to a change in the discount rate. 3. For the Canadian pension plan, the benefit obligation is the projected benefit obligation. For the Salaried VEBA, the benefit obligation is the APBO. 4. Net funded status of $32.4 million and $31.9 million relating to the Salaried VEBA at December 31, 2018 and December 31, 2017 , respectively, was presented as Net liabilities of Salaried VEBA on the Consolidated Balance Sheet. The accumulated benefit obligation for the Canadian pension plan was $6.4 million and $7.9 million at December 31, 2018 and December 31, 2017 , respectively. We expect to contribute $0.6 million to the Canadian pension plan in 2019 . As of December 31, 2018 , the net benefits expected to be paid in each of the next five fiscal years and in the aggregate for the five fiscal years thereafter are as follows (in millions of dollars): Benefit Payments Due by Period 2019 2020 2021 2022 2023 2024-2028 Canadian pension plan benefit payments $ 0.3 $ 0.3 $ 0.3 $ 0.3 $ 0.3 $ 1.8 Salaried VEBA benefit payments 1 8.0 7.8 7.5 7.2 6.9 29.9 Total net benefits $ 8.3 $ 8.1 $ 7.8 $ 7.5 $ 7.2 $ 31.7 __________________________________ 1. Such amounts are based on benefit amounts and certain key assumptions obtained from the Salaried VEBA. The amount of loss included in the Consolidated Balance Sheets (within Accumulated other comprehensive loss) associated with our Canadian pension plan and the Salaried VEBA (before tax) that had not yet been reflected in net periodic postretirement benefit cost was as follows at December 31 (in millions of dollars): Canadian Pension Plan Salaried VEBA 2018 2017 2018 2017 Accumulated net actuarial loss $ (1.5 ) $ (1.9 ) $ (12.5 ) $ (17.5 ) Transition assets — 0.1 — — Prior service cost — — (44.2 ) (42.7 ) Cumulative loss reflected in Accumulated other comprehensive loss $ (1.5 ) $ (1.8 ) $ (56.7 ) $ (60.2 ) The amount in Accumulated other comprehensive loss that has not yet been recognized as a component of net periodic postretirement benefit cost at December 31, 2018 that is expected to be recognized in 2019 for the Canadian pension plan was nominal at December 31, 2018 . For the Salaried VEBA, such amounts were $6.1 million at December 31, 2018 . Of the $6.1 million relating to the Salaried VEBA, $5.7 million is related to amortization of prior service cost and $0.4 million is related to amortization of net actuarial loss. See Note 10 for reclassification adjustments within other comprehensive (loss) income that were recognized as components of net periodic postretirement benefit cost for 2018 , 2017 and 2016 . Fair Value of Plan Assets. The plan assets of our Canadian pension plan and the Salaried VEBA 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. Valuation of certain Canadian pension plan and Salaried VEBA assets are based on the net asset value ("NAV") of shares held by the plans at year-end using the NAV practical expedient. With respect to the Salaried VEBA, the investment advisors providing the valuations are engaged by the Salaried VEBA trustees. Certain Salaried VEBA plan assets are valued based upon unadjusted quoted market prices in active markets that are accessible at the measurement date for identical, unrestricted assets (e.g., liquid securities listed on an exchange). Such assets are classified within Level 1 of the fair value hierarchy. Valuation of other Salaried VEBA invested plan assets is based on significant observable inputs (e.g., valuations derived from actual market transactions, broker-dealer supplied valuations or correlations between a given U.S. market and a non-U.S. security). Valuation model inputs can generally be verified and valuation techniques do not involve significant judgment. The fair values of such financial instruments are classified within Level 2 of the fair value hierarchy. In addition to the Canadian pension plan and Salaried VEBA, we also hold assets in various investment funds at certain registered investment companies in connection with our deferred compensation program. Such assets are accounted for as available for sale securities within Level 2 of the fair value hierarchy and are measured and recorded at fair value based on their quoted market prices. The following table presents the fair value of plan assets, classified under the appropriate level of the fair value hierarchy, as of each period presented (in millions of dollars): Level 1 Level 2 Level 3 Total As of December 31, 2018: Plan Assets in the Fair Value Hierarchy: Salaried VEBA – Cash and money market investments $ 0.9 $ — $ — $ 0.9 Diversified investment funds in registered investment companies 1 8.7 — — 8.7 Total Salaried VEBA assets in the fair value hierarchy 9.6 — — 9.6 Deferred compensation program – Diversified investment funds in registered investment companies 1 — 10.5 — 10.5 Total plan assets in the fair value hierarchy $ 9.6 $ 10.5 $ — $ 20.1 Plan Assets Measured at NAV 2 : Salaried VEBA – Fixed income investment funds in registered investment companies 3 $ 21.2 Salaried VEBA – Equity investment funds in registered investment companies 4 20.3 Canadian pension plan – Diversified investment funds in registered investment companies 1 6.5 Total plan assets at fair value $ 68.1 As of December 31, 2017: Plan Assets in the Fair Value Hierarchy: Salaried VEBA – Cash and money market investments $ 1.3 $ — $ — $ 1.3 Diversified investment funds in registered investment companies 1 10.2 — — 10.2 Total Salaried VEBA assets in the fair value hierarchy 11.5 — — 11.5 Deferred compensation program – Diversified investment funds in registered investment companies 1 — 9.8 — 9.8 Total plan assets in the fair value hierarchy $ 11.5 $ 9.8 $ — $ 21.3 Plan Assets Measured at NAV 2 : Salaried VEBA – Fixed income investment funds in registered investment companies 3 $ 19.4 Salaried VEBA – Equity investment funds in registered investment companies 4 24.3 Canadian pension plan – Diversified investment funds in registered investment companies 1 7.3 Total plan assets at fair value $ 72.3 _________________________ 1. The plan assets are invested in investment funds that hold a diversified portfolio of: (i) U.S. and international debt and equity securities; (ii) fixed income securities such as corporate bonds and government bonds; (iii) mortgage-related securities; and (iv) cash and cash equivalents. 2. The market value of these funds has not been categorized in the fair value hierarchy and is being presented in the table above to permit a reconciliation of the fair value hierarchy to the Consolidated Balance Sheets. Equity investment funds measured at fair value using the NAV practical expedient are managed by an investment adviser registered with the SEC under the Investment Advisers Act of 1940 and can be redeemed with five business days' notice on the 15th (or last business day prior to the 15th) and on the last business day of each month. A business day is every day that the New York Stock Exchange is open. Diversified investment funds measured at fair value using the NAV practical expedient are unitized mutual funds without externally published net asset values, which can be redeemed daily without restriction. 3. This category represents investments in various fixed income funds with multiple registered investment companies. Such funds invest in diversified portfolios, including: (i) marketable fixed income securities, such as (a) U.S. Treasury and other government and agency securities, (b) municipal bonds, (c) mortgage-backed securities, (d) asset-backed securities, (e) corporate bonds, notes and debentures in various sectors, (f) preferred and common stock, (g) investments in affiliated and other investment companies, (h) short-term investments and other net assets and (i) repurchase agreements and reverse repurchase agreements; (ii) other commingled investments; (iii) investment grade debt; (iv) fixed income instruments which may be represented by options, future contracts or swap agreements; and (v) cash and cash equivalents. 4. This category represents investments in equity funds that invest in portfolios comprised of: (i) equity and equity-related securities of U.S. and non-U.S. issuers across all market capitalizations; (ii) common stock in investment trust funds; and (iii) other short-term investments. The following tables present the total expense (income) related to all benefit plans for the periods presented (in millions of dollars): Year Ended December 31, 2018 2017 2016 Canadian pension plan 1 $ 0.4 $ 0.3 $ 0.3 Defined contribution plans 1 8.8 8.9 8.9 Deferred compensation plan 1 1.0 1.8 0.9 Multiemployer pension plans 2 4.7 4.6 4.7 Net periodic postretirement benefit cost relating to Salaried VEBA 3 6.1 4.5 3.4 Gain on removal of Union VEBA net assets 3 — — (0.1 ) Total $ 21.0 $ 20.1 $ 18.1 ___________________________ 1. Substantially all of these charges related to employee benefits are in Cost of products sold, excluding depreciation and amortization and other items with the remaining balance in SG&A and R&D. 2. See Note 5 for more information on our multiemployer defined benefit pension plans. 3. On January 1, 2018, we retrospectively adopted ASU 2017-07 (see Note 1 ). As such, the current service cost component of Net periodic postretirement benefit cost relating to Salaried VEBA is included within the Statements of Consolidated Income in SG&A and R&D for all periods presented. We reclassified all other components of Net periodic postretirement benefit cost relating to Salaried VEBA, as well as Gain on removal of Union VEBA net assets that had previously been presented within SG&A and R&D, to Other expense, net, in the Statements of Consolidated Income. Components of Net Periodic Postretirement Benefit Cost. Our results of operations included the following impacts associated with the Canadian pension plan and the Salaried VEBA: (a) a charge for service rendered by employees; (b) a charge for accretion of interest; (c) a benefit for the return on plan assets; and (d) amortization of net gains or losses on assets, prior service costs associated with plan amendments and actuarial differences. The following table presents the components of net periodic postretirement benefit cost for the years ended December 31 (in millions of dollars): Canadian Pension Plan Salaried VEBA 2018 2017 2016 2018 2017 2016 Service cost $ 0.3 $ 0.3 $ 0.3 $ 0.1 $ — $ — Interest cost 0.3 0.3 0.3 2.7 3.0 2.9 Expected return on plan assets (0.3 ) (0.3 ) (0.3 ) (2.9 ) (4.1 ) (4.1 ) Amortization of prior service cost 1 — — — 5.4 4.7 4.1 Amortization of net actuarial loss 0.1 — — 0.8 0.9 0.5 Net periodic postretirement benefit cost $ 0.4 $ 0.3 $ 0.3 $ 6.1 $ 4.5 $ 3.4 __________________________ 1. |
Multiemployer Pension Plans
Multiemployer Pension Plans | 12 Months Ended |
Dec. 31, 2018 | |
Multiemployer Plans [Abstract] | |
Multiemployer Pension Plans | Multiemployer Pension Plans Overview. We contribute to multiemployer defined benefit pension plans under the terms of collective bargaining agreements that cover our union-represented employees at certain facilities. At December 31, 2018 , approximately 51% of our total employees were union-represented employees at facilities participating in these multiemployer pension plans. We currently estimate that contributions will range from $3.0 million to $5.0 million per year through 2019 . The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects: • Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. • If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. • If we choose to stop participating in some of our multiemployer plans, we may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. Our participation in multiemployer pension plans for the year ended December 31, 2018 is outlined in the table below: Pension Fund Employer Identification Number Pension Protection Act Zone Status 1 FIP/RP Status Pending/Implemented in 2018 2 Contributions of the Company Surcharge Imposed in 2018 Expiration Date of Collective-Bargaining Agreements 2018 2017 2016 2018 2017 (in millions of dollars) Steelworkers Pension Trust (USW) 3 236648508 Green Green No $ 3.6 $ 3.5 $ 3.7 No Mar 2020 - Feb 2021 Other Funds 4 1.1 1.1 1.0 $ 4.7 $ 4.6 $ 4.7 ________________ 1. The most recent Pension Protection Act zone status available in 2018 and 2017 for the Steelworkers Pension Trust is for the plan's year-end at December 31, 2017 and December 31, 2016 , respectively. The zone status is based on information that we received from the plan and is certified by the plan's actuary. Among other factors, plans in the green zone are at least 80% funded. 2. The "FIP/RP Status Pending/Implemented" column indicates if a Financial Improvement Plan (FIP) or a Rehabilitation Plan (RP) is either pending or has been implemented for the plan under the Pension Protection Act. 3. We are party to three collective bargaining agreements with the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO, CLC ("USW") that require contributions to the Steelworkers Pension Trust. As of December 31, 2018 , USW collective bargaining agreements covering employees at the Newark, Ohio ("Newark") and Spokane, Washington ("Trentwood") facilities covered 86% of our USW-represented employees and expire in September 2020. Our monthly contributions per hour worked by each bargaining unit employee at the Newark and Trentwood facilities are (in whole dollars) $1.50 and will increase to $1.75 in 2019. The union contracts covering employees at the Richmond, Virginia facility and Florence, Alabama facility cover 11% and 3% of our USW-represented employees, respectively, and expire in November 2020 and March 2020, respectively. 4. Other Funds consists of plans that are not individually significant. We were not listed in any of the plans' Forms 5500 or the Canada-Wide Industrial Pension Plan financial statements as providing more than 5% of the total contributions for any of the plan years disclosed. At December 31, 2018 , financial statements and Forms 5500 were not available for the plan years ending in 2018 |
Employee Incentive Plans
Employee Incentive Plans | 12 Months Ended |
Dec. 31, 2018 | |
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 return on adjusted net assets. Most of our production facilities have similar programs for both hourly and salaried employees. As of December 31, 2018 , we had a liability of $13.1 million recorded within Accrued salaries, wages and related expenses for estimated probable future payments relating to the 12-month performance period of our 2018 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 2016 Equity and Incentive Compensation Plan ("2016 Plan"). The 2016 Plan was approved by stockholders on May 26, 2016 and replaced and succeeded in its entirety the Kaiser Aluminum Corporation Amended and Restated 2006 Equity and Performance Incentive Plan, except with regard to awards previously granted thereunder that continued to be outstanding. At December 31, 2018 , 577,014 shares were available for awards under the 2016 Plan. We issue new shares of our common stock upon vesting under the 2016 Plan. Non-Vested Common Shares and Restricted Stock Units. We grant non-vested common shares ("RSAs") to our non-employee directors and restricted stock units ("RSUs") to our executive officers and other key employees. The RSUs have rights similar to the rights of RSAs and each RSU that becomes vested entitles the recipient to receive one common share or a cash amount equaling the value of one common share. The service period is generally one year for RSAs granted to non-employee directors and three years for RSUs granted to executive officers and other key employees. Prior to 2016, we granted RSAs to executive officers and other key employees, generally with a three-year service period, but in certain circumstances with a longer service period. A summary of the activity with respect to RSAs and RSUs for the year ended December 31, 2018 is as follows: Shares Weighted-Average Outstanding at December 31, 2017 216,953 $ 74.04 Granted 74,138 96.40 Vested (64,061 ) 73.25 Forfeited (7,517 ) 77.17 Outstanding at December 31, 2018 219,513 $ 80.99 Performance Shares. We grant performance shares to executive officers and other key employees that vest upon the achievement of specified market or internal performance goals. Performance goals can include: (i) our achieving a total shareholder return ("TSR") compared to the TSR of a specified group of peer companies over a three -year performance period ("TSR-Based Performance Shares"); (ii) achieving targeted improvements to our total controllable cost performance over a three -year performance period; and/or (iii) achieving targeted improvements to our economic value added performance, determined based on our adjusted pre-tax operating income in excess of a capital charge, over a three -year performance period. Each performance share that becomes vested and earned entitles the recipient to receive one common share or a cash amount equaling the value of one common share. The number of performance shares that may be earned and result in the issuance of cash or common shares ranges between 0% to 200% of the target number of underlying common shares, which is approximately one-half of the maximum payout. Inputs and assumptions used in the Monte Carlo simulations to calculate the fair value at grant date of our TSR-Based Performance Shares were as follows: Year Ended December 31, 2018 2017 2016 Grant date fair value $ 127.41 $ 97.88 $ 93.02 Grant date stock price $ 101.66 $ 79.69 $ 80.46 Expected volatility of Kaiser Aluminum 1 24.86 % 22.74 % 17.81 % Expected volatility of peer companies 1 44.74 % 44.19 % 41.22 % Risk-free interest rate 2.37 % 1.54 % 1.01 % Dividend yield 2.16 % 2.50 % 2.24 % _____________________ 1. Expected volatility based on 2.8 years of daily closing share prices from the valuation date to the end of the performance period. A summary of the activity with respect to performance shares for the year ended December 31, 2018 is as follows: Shares Weighted-Average Outstanding at December 31, 2017 459,669 $ 90.12 Granted 1 124,833 109.38 Vested (125,674 ) 95.68 Forfeited 1 (10,261 ) 94.85 Canceled 1 (22,207 ) 95.68 Outstanding at December 31, 2018 426,360 $ 93.72 _____________________ 1. 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 performance results falling below those required for maximum payout. Non-Cash Compensation Expense. Non-cash compensation expense relating to all awards is included in SG&A and R&D. Non-cash compensation expense by type of award under LTI Programs was as follows for each period presented (in millions of dollars): Year Ended December 31, 2018 2017 2016 RSAs and RSUs $ 5.8 $ 5.4 $ 4.7 Performance shares 4.3 7.7 7.0 Total non-cash compensation expense $ 10.1 $ 13.1 $ 11.7 Recognized tax benefits relating to non-cash compensation expense were $2.5 million , $4.9 million and $4.4 million for 2018 , 2017 and 2016 , respectively. Unrecognized Gross Compensation Cost Data. The following table presents unrecognized gross compensation cost data by type of award as of December 31, 2018 : Unrecognized Gross Compensation Costs (in millions of dollars) Expected Period (in years) Over Which the Remaining Gross Compensation Costs Will Be Recognized RSAs and RSUs $ 8.7 2.5 Performance shares $ 6.0 1.6 The weighted-average grant-date fair value per share for shares granted by type of award was as follows for each period presented: Year Ended December 31, 2018 2017 2016 RSAs and RSUs $ 96.40 $ 77.35 $ 76.82 Performance shares $ 109.38 $ 86.97 $ 88.00 Stock Options. As of December 31, 2016, we had 1,543 fully-vested outstanding stock options exercisable to purchase common shares at $80.01 per share, all of which subsequently expired on April 2, 2017. No options were granted during the years ended December 31, 2018 and December 31, 2017, and no options were outstanding as of December 31, 2018 and December 31, 2017. 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 RSAs, RSUs 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 2018 , 2017 and 2016 , 68,195 , 56,495 and 36,055 |
Derivatives, Hedging Programs a
Derivatives, Hedging Programs and Other Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives, Hedging Programs and Other Financial Instruments | Derivatives, Hedging Programs and Other Financial Instruments Overview . In conducting our business, we enter into derivative transactions, including forward contracts and options, to limit our exposure to: (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 committee ("Hedging Committee"), which is composed of our chief executive officer, chief operating officer, chief financial officer, chief accounting officer, vice president of metal management, treasurer and other officers and employees selected by the chief executive officer. The Hedging Committee meets regularly to review commodity price exposure, derivative positions and strategy. Management reviews the scope of the Hedging Committee's activities with our Board of Directors. We are exposed to counterparty credit risk on all of our derivative instruments, which we manage by monitoring the credit quality of our counterparties and allocating our hedging positions among multiple counterparties to limit exposure to any single entity. Our counterparties are major investment grade financial institutions or trading companies. Hedging transactions are governed by negotiated reciprocal credit lines, which generally require collateral to be posted above specified credit thresholds. We believe the risk of loss is remote and contained due to counterparty credit quality, our diversification practice and collateral requirements. In a majority of our hedging counterparty agreements, our counterparty offers us a credit line that adjusts up or down, depending on our liquidity. Below specified liquidity thresholds, we may have to post collateral if the fair value of our net liability with such counterparty exceeds our reduced credit line. We manage this risk by allocating hedging transactions among multiple counterparties, using 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 $12.6 million and $0.1 million at December 31, 2018 and December 31, 2017 , respectively, and we had no collateral posted as of those dates. Additionally, our firm-price customer sales commitments create incremental customer credit risk related to metal price movements. Under certain circumstances, we mitigate this risk by periodically requiring cash collateral from them, which we classify as deferred revenue and include as a component of Other accrued liabilities. At December 31, 2018 , we had $0.2 million cash collateral posted from our customers. For more information about concentration risks concerning customers and suppliers, see Note 16 . Aluminum Hedges . 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. Alloying Metals Hedges . We are exposed to risk of fluctuating prices for Alloying Metals used as raw materials in our fabrication operations. We, from time to time, in the ordinary course of business, use third-party hedging instruments to mitigate our risk from price fluctuations in Alloying Metals. Energy Hedges . We are exposed to risk of fluctuating prices for natural gas and electricity. We, from time to time, in the ordinary course of business, enter into hedging transactions and/or physical delivery commitments with third parties to mitigate our risk from fluctuations in natural gas and electricity prices. Notional Amount of Derivative Contracts The following table summarizes our derivative positions at December 31, 2018 : Aluminum Maturity Period (month/year) Notional Amount of contracts (mmlbs) Fixed price purchase contracts 1/19 through 12/21 139.1 Fixed price sales contracts 1/19 through 11/19 0.9 Midwest premium swap contracts 1 1/19 through 12/21 100.1 Alloying Metals Maturity Period (month/year) Notional Amount of contracts (mmlbs) Fixed price purchase contracts 1/19 through 12/19 9.0 Natural Gas 2 Maturity Period (month/year) Notional Amount of contracts (mmbtu) Fixed price purchase contracts 1/19 through 12/21 4,040,000 Electricity 3 Maturity Period (month/year) Notional Amount of contracts (Mwh) Fixed price purchase contracts 1/20 through 12/21 219,600 _________________________ 1. Regional premiums represent the premium over the London Metal Exchange price for primary aluminum which is incurred on our purchases of primary aluminum. 2. As of December 31, 2018 , we had derivative and/or physical delivery commitments with energy companies in place to cover exposure to fluctuations in prices for approximately 66% of the expected natural gas purchases for each of the years 2019 , 2020 and 2021 . 3. As of December 31, 2018 , we had derivative and/or physical delivery commitments with energy companies in place to cover exposure to fluctuations in prices for approximately 54% of the expected electricity purchases for 2019 , 55% of the expected electricity purchases for 2020 and 9% of the expected electricity purchases for 2021 . Adoption of ASU 2017-12 Prior to our adoption of ASU 2017-12 on January 1, 2018, changes in the fair value of non-designated hedges (aluminum and energy) were recorded within Unrealized (gain) loss on derivative instruments in the Statements of Consolidated Income. Upon settlement, realized gain or loss was recorded within Cost of products sold, excluding depreciation and amortization and other items, with an offsetting reversal of previously recognized unrealized amounts recorded within Unrealized (gain) loss on derivative instruments. Beginning with our adoption of ASU 2017-12 (see Note 1 ), aluminum and energy hedges that were non-designated prior to 2018 are now designated as cash flow hedges. As these previously non-designated hedges are settled, unrealized gains and losses recognized subsequent to December 31, 2017 are reclassified from Accumulated other comprehensive loss to Cost of products sold, excluding depreciation and amortization. Loss (Gain) See Note 10 for the total amount of gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments that was reported in Accumulated other comprehensive (loss) ("AOCI"), as well as the related reclassifications into earnings and tax effects. Cumulative gains and losses related to cash flow hedges are reclassified out of AOCI when the associated hedged commodity purchases impact earnings. The location and amount of loss (gain) included on the Statements of Consolidated Income associated with all derivative contracts consisted of the following for each period presented (in millions of dollars): Year Ended December 31, 2018 2017 2016 Cost of products sold, excluding depreciation and amortization and other items 1 Cost of products sold, excluding depreciation and amortization and other items 1 Unrealized (gain) loss on derivative instruments Cost of products sold, excluding depreciation and amortization and other items 1 Unrealized gain on derivative instruments Total amounts of income and expense line items presented in the statements of consolidated income in which the effects of hedges are recorded $ 1,300.7 $ 1,105.3 $ (19.4 ) $ 1,019.5 $ (18.7 ) Loss (gain) recognized in income related to cash flow hedges: Aluminum $ 2.1 $ — $ — $ — $ — Alloying Metals 1.0 (0.9 ) — — — Natural gas (0.3 ) — — — — Total loss (gain) recognized in income $ 2.8 $ (0.9 ) $ — $ — $ — (Gain) loss recognized in income related to non-designated hedges: Aluminum $ — $ (20.4 ) $ (20.9 ) $ 2.0 $ (10.8 ) Natural gas — 0.7 1.4 5.0 (7.9 ) Foreign exchange — (0.1 ) — 0.1 — Electricity $ — — 0.1 — — Total (gain) loss recognized in income $ — $ (19.8 ) $ (19.4 ) $ 7.1 $ (18.7 ) ____________________ 1 Beginning with our adoption of ASU 2017-12 effective January 1, 2018, we no longer have Unrealized (gain) loss on derivative instruments on the Statements of Consolidated Income as all of our commodity hedges are designated as cash flow hedges. As such, all Unrealized (gain) loss on derivative instruments is reported in AOCI. For the years ended December 31, 2017 and December 31, 2016 , Unrealized (gain) loss on derivative instruments was reclassified to Cost of products sold, excluding depreciation and amortization and other items in the Statements of Consolidated Income to conform to the current period's presentation, for a combined total of $1,085.9 million and $1,000.8 million , respectively. The amounts comprising both line items are presented separately here for comparative purposes. Fair Values of Derivative Contracts The fair values of our derivative contracts are based upon trades in liquid markets. Valuation model inputs can be verified, and valuation techniques do not involve significant judgment. The fair values of such financial instruments are classified within Level 2 of the fair value hierarchy. All of our derivative contracts with counterparties are subject to enforceable master netting arrangements. We reflect the fair value of our derivative contracts on a gross basis on the Consolidated Balance Sheets. The following table presents the fair value of our derivative financial instruments as of the periods presented (in millions of dollars): December 31, 2018 December 31, 2017 Derivative Assets Derivative Liabilities Net Amount Derivative Assets Derivative Liabilities Net Amount Cash Flow Hedges: Aluminum – Fixed price purchase contracts $ 0.1 $ (13.2 ) $ (13.1 ) $ — $ — $ — Fixed price sales contracts 0.1 — 0.1 — — — Midwest premium swap contracts 3.2 (0.5 ) 2.7 — — — Alloying Metals – Fixed price purchase contracts — (1.7 ) (1.7 ) 0.9 — 0.9 Natural gas – Fixed price purchase contracts 0.2 (0.5 ) (0.3 ) — — — Electricity – Fixed price purchase contracts 0.7 — 0.7 — — — Non-Designated Hedges: Aluminum – Fixed price purchase contracts — — — 22.5 — 22.5 Fixed price sales contracts — — — — (0.1 ) (0.1 ) Midwest premium swap contracts — — — 1.7 (0.1 ) 1.6 Natural gas – Fixed price purchase contracts — — — 0.2 (0.5 ) (0.3 ) Electricity – Fixed price purchase contracts — — — — (0.1 ) (0.1 ) Total $ 4.3 $ (15.9 ) $ (11.6 ) $ 25.3 $ (0.8 ) $ 24.5 The following table presents the balance sheet location of derivative assets and liabilities as of the periods presented (in millions of dollars): December 31, 2018 December 31, 2017 Assets: Prepaid expenses and other current assets $ 3.4 $ 18.9 Other assets 0.9 6.4 Total assets $ 4.3 $ 25.3 Liabilities: Other accrued liabilities $ (13.2 ) $ (0.3 ) Long-term liabilities (2.7 ) (0.5 ) Total Liabilities $ (15.9 ) $ (0.8 ) Fair Value of Other Financial Instruments Cash and Cash Equivalents. See Note 2 for components of cash and cash equivalents. Available for Sale Securities. We hold debt investment securities that are accounted for as available for sale securities and are presented as cash equivalents and short-term investments on our Consolidated Balance Sheets. The fair value of the debt investment securities, which consist of commercial paper, is determined based on valuation models that use observable market data. At December 31, 2018 , all of our short-term investments had maturity dates within 12 months . We review our debt investment portfolio for other-than-temporary impairment at least quarterly or when there are changes in credit risk or other potential valuation concerns. At December 31, 2018 and December 31, 2017 , the total unrealized loss, net of tax, included in AOCI 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 was due to normal market fluctuations, and not due to increased credit risk or other valuation concerns. The fair value input of our available for sale securities, which are classified within Level 2 of the fair value hierarchy, is calculated based on broker quotes. The amortized cost for available for sale securities approximates their fair value. The following table presents our other financial assets, classified under the appropriate level of the fair value hierarchy, as of December 31, 2018 (in millions of dollars): Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 22.9 $ 102.7 $ — $ 125.6 Short-term investments — 36.7 — 36.7 Total $ 22.9 $ 139.4 $ — $ 162.3 The following table presents our other financial assets, classified under the appropriate level of the fair value hierarchy, as of December 31, 2017 (in millions of dollars): Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 23.5 $ 27.6 $ — $ 51.1 Short-term investments — 183.7 — 183.7 Total $ 23.5 $ 211.3 $ — $ 234.8 All Other Financial Assets and Liabilities. |
Debt and Credit Facility
Debt and Credit Facility | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facility | Debt and Credit Facility Senior Notes 5.875% Senior Notes. In May 2016, we issued $375.0 million principal amount of 5.875% unsecured senior notes due May 15, 2024 ("5.875% Senior Notes") at 100% of the principal amount. The unamortized amount of debt issuance costs as of December 31, 2018 and December 31, 2017 was $4.6 million and $5.4 million , respectively. Interest expense, including amortization of debt issuance costs, relating to the 5.875% Senior Notes was $22.9 million for each of the years ended December 31, 2018 and December 31, 2017 , and $14.5 million for the year ended December 31, 2016 . A portion of the interest relating to the 5.875% Senior Notes was capitalized as construction in progress. The effective interest rate of the 5.875% Senior Notes is approximately 6.1% per annum, taking into account the amortization of debt issuance costs. All outstanding 5.875% Senior Notes are freely transferable. The fair value of the outstanding 5.875% Senior Notes, which are Level 1 liabilities, was approximately $369.9 million and $399.9 million at December 31, 2018 and December 31, 2017 , respectively. The 5.875% Senior Notes are unsecured obligations and are guaranteed by certain of our domestic subsidiaries that own virtually all of our operating assets and through which we conduct the vast majority of our business. See Note 17 for condensed guarantor and non-guarantor financial information. The indenture governing the 5.875% Senior Notes places limitations on our ability to, among other things: (i) incur liens; (ii) consolidate, merge or sell all or substantially all of our and certain of our subsidiaries' assets; (iii) incur or guarantee additional indebtedness; (iv) enter into transactions with affiliates; and (v) make "restricted payments" (as defined in the indenture to include certain loans, investments, dividend payments, share repurchases and prepayments, redemptions and repurchases of certain indebtedness). Many of these limitations also apply to certain of our subsidiaries. Additionally, the indenture limits the ability of certain of our subsidiaries to be subject to consensual restrictions on paying dividends to us, making loans to us, repaying indebtedness owed to us, or transferring assets to us. Certain types and amounts of restricted payments are allowed by various provisions of the indenture. In particular, the indenture provisions permit us to make restricted payments in any amount if, after giving effect to such restricted payments, our "consolidated net indebtedness" as a ratio of "EBITDA" (each term as defined in the indenture) is less than 2.75:1.00 . We may redeem the 5.875% Senior Notes at our option in whole or part at any time on or after May 15, 2019 at a redemption price of 104.406% of the principal amount, declining to 102.938% , 101.469% and 100% of the principal amount on or after May 15, 2020, May 15, 2021 and May 15, 2022, respectively, in each case plus any accrued and unpaid interest. At any time prior to May 15, 2019, we may also redeem some or all of the 5.875% Senior Notes at a redemption price equal to 100% of the principal amount, together with any accrued and unpaid interest, plus a "make-whole premium." Holders of the 5.875% Senior Notes have the right to require us to repurchase the 5.875% Senior Notes at a price equal to 101% of the principal amount plus any accrued and unpaid interest following the occurrence of both: (i) a change of control and (ii) a ratings decline by one or both of the two major rating agencies within 60 days after the earlier of a change of control or the public notice of an upcoming change of control. A change of control includes: (i) certain ownership changes; (ii) certain recapitalizations, mergers and dispositions; (iii) certain changes in the composition of our Board of Directors; and (iv) stockholder approval of any plan or proposal for the liquidation or dissolution of us. We may also be required to offer to repurchase the 5.875% Senior Notes at 100% of the principal amount, plus any accrued and unpaid interest, with the proceeds of certain asset sales. 8.25% Senior Notes. In May 2012, we issued $225.0 million principal amount of 8.25% unsecured senior notes due June 1, 2020 ("8.25% Senior Notes"), of which $197.8 million principal amount remained outstanding at December 31, 2015. On June 1, 2016, we redeemed in full all remaining 8.25% Senior Notes at a redemption price of 104.125% of the principal amount. Interest expense, including amortization of debt issuance costs, relating to the 8.25% Senior Notes was $7.1 million for 2016 . A portion of the interest relating to the 8.25% Senior Notes was capitalized as construction in progress. 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 1, 2020. Joining the Company as borrowers ("Co-Borrowers") are three of our wholly-owned domestic operating subsidiaries: Kaiser Aluminum Investments Company, Kaiser Aluminum Fabricated Products, LLC and Kaiser Aluminum Washington, LLC. The Revolving Credit Facility is secured by a first priority lien on substantially all of the accounts receivable, inventory and certain other related assets and proceeds of the Co-Borrowers, as well as certain machinery and equipment. Under the Revolving Credit Facility, we are able to borrow from time to time an aggregate commitment amount equal to the lesser of $300.0 million and a borrowing base comprised of: (i) 85% of eligible accounts receivable; (ii) the lesser of (a) 75% of eligible inventory and (b) 85% of the net orderly liquidation value of eligible inventory as determined in the most recent inventory appraisal ordered by the administrative agent; and (iii) certain eligible machinery and equipment supporting up to $60.0 million of borrowing availability, reduced by certain reserves, all as specified in the Revolving Credit Facility. Up to a maximum of $20.0 million of availability under the Revolving Credit Facility may be utilized for letters of credit. Borrowings under the Revolving Credit Facility bear interest at a rate equal to either a base prime rate or LIBOR, at our option, plus, in each case, a specified variable percentage determined by reference to the then-remaining borrowing availability under the Revolving Credit Facility. The funding commitment of the Revolving Credit Facility may be increased up to $400.0 million , subject to certain conditions and the agreement of lenders thereunder. We had $300.0 million of total borrowing availability under the Revolving Credit Facility at December 31, 2018 , based on the borrowing base determination then in effect. At December 31, 2018 , there were no borrowings under the Revolving Credit Facility and $8.0 million was used to support outstanding letters of credit, leaving $292.0 million of net borrowing availability. The interest rate applicable to any overnight borrowings under the Revolving Credit Facility would have been 5.75% at December 31, 2018 . Amounts owed under the Revolving Credit Facility may be accelerated upon the occurrence of various events of default including, without limitation, the failure to make principal or interest payments when due and breaches of covenants, representations and warranties set forth therein. The Revolving Credit Facility places limitations on our ability and certain of our subsidiaries to, among other things, grant liens, engage in mergers, sell assets, incur debt, enter into sale and leaseback transactions, make investments, undertake transactions with affiliates, prepay certain debt, pay dividends and repurchase shares. We are allowed to prepay debt, pay dividends and repurchase shares in any amount if, after giving effect to such payment, $52.5 million or more would be available for us to borrow under the Revolving Credit Facility, or if after giving effect to such payment, $45.0 million or more would be available to us to borrow under the Revolving Credit Facility and we maintain a fixed charge coverage ratio at or above 1.15:1.0 . In addition, we are required to maintain a fixed charge coverage ratio on a consolidated basis at or above 1.0:1.0 if borrowing availability under the Revolving Credit Facility is less than $30.0 million |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
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 7 and Note 8 ). Rental expenses were $8.2 million , $7.9 million and $8.5 million for 2018 , 2017 and 2016 , respectively. There are renewal options in various leases subject to certain terms and conditions. Minimum rental commitments at December 31, 2018 were as follows (in millions of dollars): Year Ended December 31, Capital Leases Operating Leases 2019 $ 1.7 $ 6.1 2020 1.4 3.7 2021 1.2 2.8 2022 1.1 2.4 2023 1.0 2.2 2024 and thereafter 1.8 20.8 Total minimum lease payments $ 8.2 $ 38.0 Less: interest (1.2 ) Present value 1 $ 7.0 _________________________ 1. Of the $7.0 million in capital lease obligations as of December 31, 2018 , $1.4 million was included in Other accrued liabilities and $5.6 million was included in Long-term liabilities. Assets recorded under capital leases and the accumulated amortization thereon were $8.3 million and $1.3 million , respectively, as of December 31, 2018 , and $2.2 million and $0.9 million , respectively, as of December 31, 2017 . CAROs. The inputs in estimating the fair value of CAROs include: (i) the timing of when any such CARO cash flows may be incurred; (ii) incremental costs associated with special handling or treatment of CARO materials; and (iii) the credit-adjusted risk-free rate applicable at the time additional CARO cash flows are estimated; all of these are considered Level 3 inputs as they involve significant judgment from us. The following table summarizes the activity relating to our CARO liabilities (in millions of dollars): Year Ended December 31, 2018 2017 2016 Beginning balance $ 5.9 $ 5.5 $ 4.9 Liabilities settled during the period — — (0.1 ) Accretion expense 0.4 0.4 0.5 Adjustment to accretion expense due to revisions to estimated cash flow and timing of expenditure 1 — — 0.2 Ending balance $ 6.3 $ 5.9 $ 5.5 _________________________ 1. The adjustments in 2016 had a de minimis impact on the basic and diluted net income per share for 2016. The estimated fair value of CARO liabilities were based upon the application of a weighted-average credit-adjusted risk-free rate of 8.7% at both December 31, 2018 and December 31, 2017 . CAROs are included in Other accrued liabilities or Long-term liabilities, as appropriate. 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 are also subject to legacy environmental contingencies related to activities that occurred at operating facilities prior to July 6, 2006, which represent the majority of our environmental accruals. The status of these environmental contingencies are discussed below. 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. We continue to pursue remediation activities, primarily to address the historical use of oils containing polychlorinated biphenyls ("PCBs") at our Trentwood facility. Our remediation efforts are in collaboration with the Washington State Department of Ecology ("Washington State Ecology"), to which we submitted a feasibility study in 2012 of remediation alternatives and from which we received permission to begin certain remediation activities pursuant to a signed work order. As we have finished a number of sections of the work plan, we have received approval from Washington State Ecology on satisfactory completion of those sections. Additionally, in cooperation with Washington State Ecology, to determine the treatability and evaluate the feasibility of removing PCBs from ground water under the Trentwood facility, we constructed an experimental treatment facility and began treatment operations in 2016. As the long-term success of the new methodology cannot be reasonably determined at this time, it is possible we may need to make upward adjustments to our related accruals and cost estimates as the long-term results become available. During 2013, at the request of the Ohio Environmental Protection Agency ("OEPA"), we initiated an investigational study of the Newark facility related to historical on-site waste disposal. In the fourth quarter of 2018, we submitted our remedial investigation study to the OEPA which is subject to their review and approval. Following OEPA approval of the remedial investigational study, we will then prepare the final feasibility study and update estimates for probable and estimable remediation, if any. The actual and final cost for remediation will not be fully determinable until a final feasibility study is submitted and accepted by the OEPA and work plans are prepared, which is expected to occur in the next 12 months . The following table presents the changes in our environmental accrual, which was primarily included in Long-term liabilities (in millions of dollars): Year Ended December 31, 2018 2017 2016 Beginning balance $ 16.6 $ 17.2 $ 18.6 Additional accruals 1.7 0.3 0.1 Less: expenditures (1.4 ) (0.9 ) (1.5 ) Ending balance $ 16.9 $ 16.6 $ 17.2 At December 31, 2018 , our environmental accrual of $16.9 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, 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 $11.6 million over the remediation period. It is reasonably possible that our recorded estimate will change in the next 12 months . Other Contingencies. We are party to various lawsuits, claims, investigations and administrative proceedings that arise in connection with past and current operations. We evaluate such matters on a case-by-case basis and our policy is to vigorously contest any such claims we believe are without merit. We accrue for a legal liability when it is both probable that a liability has been incurred and the amount of the loss is reasonably estimable. Quarterly, in addition to when changes in facts and circumstances require it, we review and adjust these accruals to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. While uncertainties are inherent in the final outcome of such matters and it is presently impossible to determine the actual cost that may ultimately be incurred, we believe that we have sufficiently accrued for such matters and that the ultimate resolution of pending matters will not have a material impact on our consolidated financial position, operating results or liquidity. In July and September 2018, we filed a total of three requests for exclusion from certain import duties, as instituted in the Presidential Proclamation 9704 of March 8, 2018 (also known as “Section 232 Tariff”), with the Bureau of Industry and Security ("BIS"), an agency within the Department of Commerce. If such exclusions are approved by the BIS, we believe we will be able to apply for and recover approximately $2.4 million |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income The following table presents the changes in the accumulated balances for each component of Accumulated other comprehensive (loss) income ("AOCI") for each period presented (in millions of dollars): Year Ended December 31, 2018 2017 2016 Defined benefit pension plan and VEBAs: Beginning balance $ (38.5 ) $ (37.1 ) $ (31.3 ) Actuarial gain (loss) arising during the period 4.4 (0.3 ) (5.7 ) Less: income tax (expense) benefit (1.1 ) 0.1 2.1 Net actuarial gain (loss) arising during the period 3.3 (0.2 ) (3.6 ) Prior service cost arising during the period (6.9 ) (7.3 ) (8.3 ) Less: income tax benefit 1.7 2.7 3.1 Net prior service cost arising during the period (5.2 ) (4.6 ) (5.2 ) Amortization of net actuarial loss 1 0.9 0.9 0.5 Amortization of prior service cost 1 5.4 4.7 4.1 Less: income tax expense 2 (1.5 ) (2.1 ) (1.7 ) Net amortization and reclassification from AOCI to Net income 4.8 3.5 2.9 Translation impact on Canadian pension plan AOCI balance — (0.1 ) 0.1 Other comprehensive income (loss), net of tax 2.9 (1.4 ) (5.8 ) Ending balance $ (35.6 ) $ (38.5 ) $ (37.1 ) Available for sale securities: Beginning balance 3 $ 0.9 $ 0.8 $ (0.1 ) Unrealized gain on available for sale securities 4.7 4.0 1.9 Less: income tax expense (1.1 ) (1.5 ) (0.7 ) Net gain on available for sale securities 3.6 2.5 1.2 Gain reclassified from AOCI to Net income 4 (5.4 ) (3.2 ) (0.5 ) Less: income tax benefit 2 1.2 1.2 0.2 Net gain reclassified from AOCI to Net income (4.2 ) (2.0 ) (0.3 ) Other comprehensive (loss) income, net of tax (0.6 ) 0.5 0.9 Ending balance $ 0.3 $ 1.3 $ 0.8 Cash Flow Hedges: Beginning balance $ 0.5 $ (0.2 ) $ (0.2 ) Unrealized (loss) gain on cash flow hedges (21.2 ) 1.8 (0.1 ) Less: income tax benefit (expense) 5.3 (0.7 ) — Net unrealized (loss) gain on cash flow hedges (15.9 ) 1.1 (0.1 ) Reclassification of unrealized loss (gain) upon settlement of cash flow hedges 5 2.7 (0.6 ) 0.1 Less: income tax (expense) benefit 2 (0.7 ) 0.2 — Net loss (gain) reclassified from AOCI to Net income 2.0 (0.4 ) 0.1 Other comprehensive (loss) income, net of tax (13.9 ) 0.7 — Ending balance $ (13.4 ) $ 0.5 $ (0.2 ) Year Ended December 31, 2018 2017 2016 Foreign Currency Translation: Beginning balance $ — $ (0.2 ) $ (0.1 ) Other comprehensive (loss) income, net of tax (0.1 ) 0.2 (0.1 ) Ending balance $ (0.1 ) $ — $ (0.2 ) Total AOCI ending balance $ (48.8 ) $ (36.7 ) $ (36.7 ) ____________ 1. Amounts amortized out of AOCI relating to Salaried VEBA adjustments were included within Other expense, net, as a component of Net periodic postretirement benefit cost relating to Salaried VEBA. 2. Income tax amounts reclassified out of AOCI were included as a component of Income tax provision. 3. The beginning unrealized gain within Available for sale securities as of January 1, 2018 includes a $0.4 million cumulative-effect adjustment from our adoption of ASU 2016-01, which required us to remove cumulative gains on equity investments related to our deferred compensation plan as they are no longer accounted for as available for sale securities (see Note 1 and Note 4 for additional details). 4. Amounts reclassified out of AOCI relating to sales of available for sale securities were included as a component of Other expense, net. We use the specific identification method to determine the amount reclassified out of AOCI. 5. Amounts reclassified out of AOCI relating to cash flow hedges were included as a component of Cost of products sold, excluding depreciation and amortization and other items. As of December 31, 2018 , we estimate a net mark-to-market loss before tax of $15.6 million |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Prior to the Adoption of ASC 606 . Prior to our adoption of ASC 606 on January 1, 2018, we recognized revenue on a gross basis when all of the following criteria were met: (i) persuasive evidence of an arrangement existed; (ii) title, ownership and risk of loss had passed to the customer; (iii) the price to the customer was fixed or determinable; and (iv) collection of the resulting receivable was reasonably assured. Provisions for estimated sales returns from and allowances to customers were made in the same period as the related revenues were recognized, based on historical experience or the specific identification of an event necessitating a reserve. Subsequent to the Adoption of ASC 606 . Subsequent to our adoption of ASC 606 on January 1, 2018 (see " New Accounting Pronouncements" in Note 1 ), we recognize revenue as we fulfill our performance obligations and transfer control of products to our customers. For products that have an alternative use and/or for which we do not have an enforceable right to payment (including a reasonable profit) during the production process, we recognize revenue at a point in time. For products that have no alternative use and for which we have an enforceable right to payment (including a reasonable profit) throughout the production process, we recognize revenue over time. In general, a majority of our Aero/HS products and our Automotive Extrusions are recognized over time, with the remainder of our products recognized at a point in time. For the majority of our business, contracts with customers begin when we acknowledge a purchase order for a specific customer order of product to be delivered in the near term. These purchase orders are short term in nature, although they may reference a longer term "blanket purchase order" or a "terms and conditions" agreement, both of which may span multiple years. For revenue recognized at a point in time, transfer of control usually occurs upon shipment or upon customer receipt of the product, depending on shipping terms. For contracts recognized over time, control transfer occurs incrementally during our production process as progress is made on fulfilling the performance obligation. We use the input method of determining our progress, capturing direct costs beginning at the point that billet or cast ingot is introduced into production at either the extrusion phase or the rolling phase, respectively. We believe the input method more accurately reflects the transfer of control as it represents the best information available of work completed to date for which we have an enforceable right to payment. For products in production, we recognize revenue using estimates of the cost incurred to date plus a reasonable margin. As the duration of our contracts for accounting purposes is typically less than one year, we do not present quantitative information about the aggregate transaction price allocated to unsatisfied performance obligations at the end of the reporting period. We adjust the amount of revenue recognized on all products, regardless of timing of revenue recognition, for variable price consideration, which could include metal market price adjustments, volume rebates and sales discounts. We estimate rebate and discount values based on forecasted order data and historical payment trends for specific customers, adjusted as necessary at each reporting period. Accounts receivable is recorded when our right to consideration becomes unconditional. Payment terms for a majority of our domestic customers are 30 days after invoice date. To accommodate shipping time to overseas locations, payment terms for foreign customers are typically several weeks longer than domestic terms. As such, we do not adjust the promised amount of consideration for the effects of a significant financing component as we do not expect the period between the transfer of control of products to our customers and receipt of payment will be greater than one year. Contract assets primarily relate to our enforceable right to consideration for work completed but not billed at the reporting date on contracts for products recognized over time. Contract assets also include amounts related to our contractual right to consideration for finished goods recognized over time that were in transit as of period end. Incremental Costs of Obtaining a Contract . We expense the costs of obtaining a contract as incurred as the amortization period of the asset that we otherwise would have recognized is one year or less. Shipping and Handling Activities. We account for shipping and handling activities that occur after the customer has obtained control of a product as fulfillment activities (i.e., an expense) rather than as a promised service (i.e., a revenue element). The following table presents the impact on our opening Consolidated Balance Sheet as of January 1, 2018 of adopting ASC 606 (in millions of dollars): December 31, 2017 As Reported Cumulative-effect Adjustments 1 January 1, 2018 As Adjusted Contract assets $ — $ 55.6 $ 55.6 Inventories 207.9 (40.7 ) 167.2 Total current assets 656.6 14.9 671.5 Deferred tax assets, net 72.0 (3.3 ) 68.7 Total assets $ 1,385.2 $ 11.6 $ 1,396.8 Other accrued liabilities 40.5 1.5 42.0 Total current liabilities 173.1 1.5 174.6 Total liabilities $ 638.9 $ 1.5 $ 640.4 Retained earnings 85.5 10.1 95.6 Total stockholders' equity 746.3 10.1 756.4 Total liabilities and stockholders' equity $ 1,385.2 $ 11.6 $ 1,396.8 ____________________ 1 Included in the cumulative-effect adjustment was a charge of $5.0 million as a result of decrementing higher cost prior LIFO layers. The following table presents the impact of adopting ASC 606 on our Consolidated Balance Sheet as of the period presented (in millions of dollars): December 31, 2018 As Reported Adjustments December 31, 2018 without Adoption of ASC 606 Contract assets $ 54.9 $ (54.9 ) $ — Inventories 215.1 32.4 247.5 Total current assets 656.6 (22.5 ) 634.1 Deferred tax assets, net 35.9 3.3 39.2 Total assets $ 1,419.3 $ (19.2 ) $ 1,400.1 Other accrued liabilities 44.0 (3.7 ) 40.3 Total current liabilities 205.5 (3.7 ) 201.8 Total liabilities $ 678.9 $ (3.7 ) $ 675.2 Retained earnings 150.2 (15.5 ) 134.7 Total stockholders' equity 740.4 (15.5 ) 724.9 Total liabilities and stockholders' equity $ 1,419.3 $ (19.2 ) $ 1,400.1 The following table presents the impact of adopting ASC 606 on our Statements of Consolidated Income for each period presented (in millions of dollars, except per share amounts): Year Ended December 31, 2018 As Reported Adjustments Without Adoption of ASC 606 Net sales $ 1,585.9 $ 1.2 $ 1,587.1 Cost of products sold, excluding depreciation and amortization and other items 1 1,300.7 8.3 1,309.0 Operating income 143.6 (7.1 ) 136.5 Income before income taxes 120.0 (7.1 ) 112.9 Income tax provision (28.3 ) 1.7 (26.6 ) Net income $ 91.7 $ (5.4 ) $ 86.3 Net income per common share: Basic $ 5.53 $ (0.33 ) $ 5.20 Diluted $ 5.43 $ (0.32 ) $ 5.11 ____________________ 1 Included in the "as reported" amounts was the benefit of having decremented higher cost prior LIFO layers as part of the cumulative-effect adjustment of adopting ASC 606, as discussed in the opening balance sheet table above. The following table presents the impact of adopting ASC 606 on our Statements of Consolidated Comprehensive Income for each period presented (in millions of dollars): Year Ended December 31, 2018 As Reported Adjustments Without Adoption of ASC 606 Net income $ 91.7 $ (5.4 ) $ 86.3 Comprehensive income $ 80.0 $ (5.4 ) $ 74.6 The following table presents the impact of adopting ASC 606 on our Statements of Consolidated Cash Flows for the period presented (in millions of dollars): Year Ended December 31, 2018 As Reported Adjustments Year Ended December 31, 2018 without Adoption of ASC 606 Net income $ 91.7 $ (5.4 ) $ 86.3 Changes in operating assets and liabilities: Contract assets 0.7 (0.7 ) — Inventories (45.0 ) 8.3 (36.7 ) Accrued liabilities (2.6 ) (2.2 ) (4.8 ) Net cash provided by operating activities $ 150.2 $ — $ 150.2 |
Other Expense, Net
Other Expense, Net | 12 Months Ended |
Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Other Expense, Net | Other Expense, Net Other expense, net, consisted of the following for each period presented (in millions of dollars): Year Ended December 31, 2018 2017 2016 Interest income $ 0.3 $ 0.2 $ 0.1 Net periodic postretirement benefit cost relating to Salaried VEBA (6.1 ) (4.5 ) (3.4 ) Gain on removal of Union VEBA net assets — — 0.1 Realized gain on investments 6.1 3.4 0.8 Loss on extinguishment of debt 1 — — (11.1 ) All other, net (1.2 ) 0.9 (0.1 ) Other expense, net $ (0.9 ) $ — $ (13.6 ) ____________ 1. Represents the loss on extinguishment of our 8.25% Senior Notes during the year ended December 31, 2016 which includes an $8.2 million premium paid to redeem the notes and a $2.9 million |
Income Tax Matters
Income Tax Matters | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Matters | Income Tax Matters Tax Provision . Income before income taxes by geographic area was as follows (in millions of dollars): Year Ended December 31, 2018 2017 2016 Domestic $ 114.6 $ 127.9 $ 143.6 Foreign 5.4 5.1 3.6 Income before income taxes $ 120.0 $ 133.0 $ 147.2 Income taxes are classified as either domestic or foreign based on whether payment is made or due to the United States or a foreign country. Certain income classified as foreign is also subject to domestic income taxes. Income tax provision consisted of (in millions of dollars): Federal Foreign State Total 2018 Current $ 11.9 $ (1.9 ) $ (1.5 ) $ 8.5 Deferred (34.7 ) 0.1 (1.4 ) (36.0 ) Expense applied to increase Retained earnings/ Other comprehensive loss (0.7 ) — (0.1 ) (0.8 ) Income tax provision $ (23.5 ) $ (1.8 ) $ (3.0 ) $ (28.3 ) 2017 Current $ 3.1 $ (0.8 ) $ (1.0 ) $ 1.3 Deferred (82.0 ) (1.0 ) (5.7 ) (88.7 ) Expense applied to increase Retained earnings/ Other comprehensive loss (0.1 ) (0.1 ) — (0.2 ) Income tax provision $ (79.0 ) $ (1.9 ) $ (6.7 ) $ (87.6 ) 2016 Current $ 2.7 $ 0.6 $ (1.5 ) $ 1.8 Deferred (47.8 ) (1.2 ) (4.7 ) (53.7 ) Expense applied to increase Additional paid in capital/Other comprehensive loss (3.2 ) (0.1 ) (0.3 ) (3.6 ) Income tax provision $ (48.3 ) $ (0.7 ) $ (6.5 ) $ (55.5 ) A reconciliation between the provision for income taxes and the amount computed by applying the federal statutory income tax rate to Income before income taxes is as follows (in millions of dollars): Year Ended December 31, 2018 2017 2016 Amount of federal income tax provision based on the statutory rate $ (25.2 ) $ (46.5 ) $ (51.5 ) Decrease (increase) in federal valuation allowances 1.7 0.5 (0.3 ) Non-deductible compensation (expense) benefit (0.6 ) (2.3 ) 0.3 Non-deductible expense (1.5 ) — (0.3 ) State income tax provision, net of federal benefit 1 (2.5 ) (4.3 ) (4.2 ) Foreign income tax (expense) benefit (0.5 ) (0.1 ) 0.5 Foreign undistributed earnings 0.4 (5.9 ) — Tax rate change (0.1 ) (29.0 ) — Income tax provision $ (28.3 ) $ (87.6 ) $ (55.5 ) ___________________________ 1. State income taxes were $4.5 million in 2018 , increased by a $0.9 million due to higher tax rate true-ups in various states, offset by a $2.9 million decrease in the valuation allowance relating to certain state net operating losses. The state income taxes were $4.0 million in 2017 , increased by a $2.5 million change in tax rates, offset by a $2.2 million decrease in the valuation allowance relating to certain state net operating losses. The state income taxes were $4.1 million in 2016 , offset by a $0.2 million decrease due to lower tax rates in various states and a $0.3 million increase in the valuation allowance relating to certain state net operating losses. Deferred Income Taxes. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for income tax purposes. The components of our net deferred income tax assets were as follows (in millions of dollars): Year Ended December 31, 2018 2017 Deferred income tax assets: Loss and credit carryforwards $ 48.7 $ 98.7 Salaried VEBA (see Note 4) 8.0 11.6 Other assets 27.2 21.0 Inventories 20.0 9.3 Valuation allowances (8.4 ) (13.0 ) Total deferred income tax assets 95.5 127.6 Deferred income tax liabilities: Property, plant and equipment (62.0 ) (57.7 ) Undistributed foreign earnings (1.8 ) (2.2 ) Total deferred income tax liabilities (63.8 ) (59.9 ) Net deferred income tax assets 1 $ 31.7 $ 67.7 __________________________ 1. Of the total net deferred income tax assets of $31.7 million , $35.9 million was presented as Deferred tax assets, net, and $4.2 million was presented as Deferred tax liabilities on the Consolidated Balance Sheet as of December 31, 2018 . Of the total net deferred income tax assets of $67.7 million , $72.0 million was presented as Deferred tax assets, net, and $4.3 million was presented as Deferred tax liabilities on the Consolidated Balance Sheet as of December 31, 2017 . Tax Attributes. At December 31, 2018 , we had $117.7 million of net operating loss ("NOL") carryforwards available to reduce future cash payments for federal income taxes in the United States. H.R.1, commonly referred to as the Tax Cut and Jobs Act ("Tax Act"), allows net operating losses generated prior to December 31, 2017 (including our NOL carryforwards) to be fully deducted against 100% of taxable income until fully utilized or expired (see " Tax Cuts and Jobs Act " below for further discussion of the Tax Act). Our NOL carryforwards expire periodically through 2030. We also had $11.4 million of alternative minimum tax ("AMT") credit carryforwards available to offset regular federal income tax requirements. Since the corporate AMT has been repealed in the Tax Act for tax years beginning after December 31, 2017, our AMT credit carryforwards that have not yet been used are refundable in future years. We will use AMT credits to offset any regular income tax liability in years 2018 through 2020, with 50% of remaining AMT credits refunded in each of the 2018, 2019 and 2020 tax years and all remaining credits refunded in tax year 2021 (see " Tax Cuts and Jobs Act " below for further discussion of the Tax Act). In assessing the realizability of deferred tax assets, management considers whether it is "more likely than not" that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers taxable income in carryback years, the scheduled reversal of deferred tax liabilities, tax planning strategies and projected future taxable income in making this assessment. Due to uncertainties surrounding the realization of some of our deferred tax assets, primarily including state NOL carryforwards sustained during the prior years and expiring tax benefits, we have a valuation allowance against our deferred tax assets. When recognized, the tax benefits relating to any reversal of this valuation allowance will be recorded as a reduction of income tax expense. The decrease in the valuation allowance was $4.6 million , $2.7 million and $5.5 million in 2018 , 2017 and 2016 , respectively. The decrease in the valuation allowance for 2018 was primarily due to the expiration of state NOL carryforwards and the related reversal of their valuation allowances and the expiration of a capital loss carryforward. The decrease in the valuation allowance for 2017 was primarily due to the expiration of state NOL carryforwards and the related reversal of their valuation allowances and the utilization of capital losses. The decrease in the valuation allowance for 2016 was primarily due to the expiration of state NOL carryforwards and the related reversal of their valuation allowances. Other . We and our subsidiaries file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. Our tax returns for certain past years are still subject to examination by taxing authorities and the use of NOL carryforwards in future periods could trigger a review of attributes and other tax matters in years that are not otherwise subject to examination. We have gross unrecognized benefits relating to uncertain tax positions. A reconciliation of changes in the gross unrecognized tax benefits is as follows (in millions of dollars): Year Ended December 31, 2018 2017 2016 Gross unrecognized tax benefits at beginning of period $ 1.5 $ 1.8 $ 1.7 Gross increases for tax positions of prior years — — 0.1 Gross decreases for tax positions of prior years (0.3 ) — Gross unrecognized tax benefits at end of period $ 1.5 $ 1.5 $ 1.8 If and when the $1.5 million of gross unrecognized tax benefits at December 31, 2018 are recognized, $0.4 million will be reflected in our income tax provision and thus affect the effective tax rate in future periods. In addition, we recognize interest and penalties related to unrecognized tax benefits in the income tax provision. We had $0.2 million and $0.1 million accrued for interest and penalties at December 31, 2018 and December 31, 2017 , respectively. Of these amounts, none were considered current and, as such, were included in Long-term liabilities on the Consolidated Balance Sheets at December 31, 2018 and December 31, 2017 . We recognized an increase in interest and penalty of $0.1 million in our tax provision in 2018. We recognized a decrease in interest and penalty of $0.1 million in our tax provision in 2017. There was no change to interest and penalty in 2016 . We do not expect our gross unrecognized tax benefits to significantly change within the next 12 months . Tax Cuts and Jobs Act . On December 22, 2017, the U.S. government enacted the Tax Act, which makes broad and complex changes to the Code, including, but not limited to: (i) reducing the U.S. federal corporate tax rate from 35% to 21% ; (ii) requiring companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries; (iii) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries; (iv) requiring a current inclusion in U.S. federal taxable income of certain earnings of controlled foreign corporations; (v) eliminating the corporate AMT and changing how existing AMT credits can be realized; (vi) creating a new limitation on deductible interest expense; and (vii) changing rules related to uses and limitations of NOL carryforwards created in tax years beginning after December 31, 2017. The SEC staff issued Staff Accounting Bulletin No. 118 ("SAB 118"), which provided guidance on accounting for the tax effects of the Tax Act. SAB 118 provided a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC No. 740, Income Taxes ("ASC 740"). In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 was complete. To the extent that a company's accounting for certain income tax effects of the Tax Act was incomplete, but it was able to determine a reasonable estimate, it recorded a provisional estimate in the financial statements at December 31, 2017 . The completion of the accounting for the Tax Act in accordance with SAB 118 at December 31, 2018 did not result in a significant change to the provisional amounts booked at December 31, 2017 . Reduction of US Federal Corporate Tax Rate. The Tax Act reduced the corporate tax rate to 21% , effective January 1, 2018. For certain of our deferred tax assets, we recorded a decrease of $29.0 million , with a corresponding net increase to deferred income tax expense for the year ended December 31, 2017. Deemed Repatriation Transition Tax. The Deemed Repatriation Transition Tax ("Transition Tax") is a tax on previously untaxed accumulated and current earnings and profits ("E&P") of certain of our foreign subsidiaries. To determine the amount of the Transition Tax, we determined, in addition to other factors, the amount of post-1986 E&P of the relevant subsidiaries, as well as the amount of non-U.S. income taxes paid on such earnings. We recorded a Transition Tax obligation of $3.5 million . In addition, we have accrued $1.6 million for withholding tax since our earnings in Canada are no longer permanently reinvested. Internal Revenue Code Section 162(m). The Tax Act modified Section 162(m) of the Code ("Section 162(m)") by: (i) expanding the scope of covered employees to include the chief financial officer; (ii) providing that any individual that becomes a covered employee for a taxable year beginning after December 31, 2016 would remain a covered employee for all future years; and (iii) eliminating the exceptions for commissions and performance-based compensation from the $1.0 million deduction limit. These changes did not apply to compensation stemming from contracts entered into on or before November 2, 2017, unless such contracts were materially modified on or after that date. Compensation agreements entered into and share-based payment awards granted after this date were subject to the revised terms of Section 162(m). We recorded a Section 162(m) obligation of $2.3 million |
Net Income Per Share and Stockh
Net Income Per Share and Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Income Per Share and Stockholders' Equity | Net Income Per Share and Stockholders' Equity Net Income Per Share . Basic net income per share is computed by dividing distributed and undistributed net income allocable to common shares by the weighted-average number of common shares outstanding during the applicable period. The basic weighted-average number of common shares outstanding during the period excludes non-vested share-based payment awards. Diluted net income per share was calculated under the treasury stock method for 2018 , 2017 and 2016 , which in all years was more dilutive than the two-class method. The following table sets forth the computation of basic and diluted net income per share for the periods presented (in millions of dollars, except share and per share amounts): Year Ended December 31, 2018 2017 2016 Numerator: Net income $ 91.7 $ 45.4 $ 91.7 Denominator – Weighted-average common shares outstanding (in thousands): Basic 16,585 16,996 17,813 Add: dilutive effect of non-vested common shares, restricted stock units and performance shares 1 289 263 220 Diluted 16,874 17,259 18,033 Net income per common share, Basic: $ 5.53 $ 2.67 $ 5.15 Net income per common share, Diluted: $ 5.43 $ 2.63 $ 5.09 ____________ 1. A total of 52,000 and 50,000 non-vested RSAs, RSUs and performance shares for the years ended December 31, 2017 and December 31, 2016 , respectively, were excluded from the weighted-average diluted shares computation as their inclusion would have been anti-dilutive. None were excluded for the year ended December 31, 2018 . Dividends . During 2018 , 2017 and 2016 , we paid a total of approximately $37.7 million ( $2.20 per common share), $35.0 million ( $2.00 per common share) and $32.4 million ( $1.80 per common share), respectively, in cash dividends to stockholders, including the holders of RSAs, and dividend equivalents to the holders of certain RSUs and performance shares. Treasury Stock. 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. Repurchases of our common stock pursuant to the stock repurchase program is recorded as Treasury stock and consisted of the following for each period presented: Year Ended December 31, 2018 2017 2016 Number of common shares repurchased 617,151 938,680 443,838 Weighted-average repurchase price (dollars per share) $ 100.28 $ 82.97 $ 78.59 Total cost of repurchased common shares (in millions of dollars) $ 61.9 $ 77.8 $ 34.9 At December 31, 2018 and December 31, 2017 , $148.7 million and $110.5 million , respectively, were available to repurchase our common shares pursuant to the stock repurchase program. Preferred Stock . In connection with a tax asset protection rights plan, our Board of Directors declared a dividend, payable April 22, 2016, of one right for each outstanding share of our common stock. In general, if the rights become exercisable, each right would allow its holder to purchase one one-hundredth of a share of our Series A Preferred Stock. The authorized number of shares of Series A Preferred Stock is 900,000 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Year Ended December 31, 2018 2017 2016 (in millions of dollars) Interest paid $ 21.6 $ 21.1 $ 17.7 Non-cash investing and financing activities (included in Accounts payable): Unpaid purchases of property and equipment $ 7.0 $ 7.4 $ 4.6 Stock repurchases not yet settled $ 1.3 $ 0.1 $ 1.8 Acquisition of property and equipment through capital leasing arrangements $ 6.5 $ 1.2 $ 0.2 December 31, 2018 2017 2016 Components of cash, cash equivalents and restricted cash: Cash and cash equivalents $ 125.6 $ 51.1 $ 55.2 Restricted cash included in Prepaid expenses and other current assets 0.3 0.3 0.3 Restricted cash included in Other assets 13.7 12.9 12.2 Total cash, cash equivalents and restricted cash shown in the Statements of Consolidated Cash Flows $ 139.6 $ 64.3 $ 67.7 |
Business, Product and Geographi
Business, Product and Geographical Area Information and Concentration of Risk | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Business, Product and Geographical Area Information and Concentration of Risk | Our primary line of business is the production of semi-fabricated specialty aluminum mill products, such as aluminum plate and sheet and extruded and drawn products, primarily used in Aero/HS products, Automotive Extrusions, GE products and Other products. We operate 12 focused production facilities in the United States and one in Canada. Our chief operating decision maker reviews and evaluates our business as a single operating segment. Prior to 2018, we reported our consolidated financial statements based on one reportable segment, Fabricated Products (comprised primarily of our manufacturing operations), and presented the business unit All Other (comprised primarily of corporate general and administrative expenses) as a reconciling item between Fabricated Products and our consolidated financial statements. During 2018, we determined that the All Other business unit had decreased in materiality and relevance and was therefore immaterial to our consolidated financial statements. Therefore, we no longer separate All Other from Fabricated Products for all periods presented in this Report and on a prospective basis. At December 31, 2018 , approximately 62% of our employees were covered by collective bargaining agreements and none of our employees were covered by collective bargaining agreements with expiration dates occurring within one year from December 31, 2018 . Net sales by end market applications and by timing of control transfer for each period presented were as follows (in millions of dollars): Year Ended December 31, 2018 2017 2016 Net sales: Aero/HS products $ 739.4 $ 653.7 $ 675.4 Automotive Extrusions 239.3 217.3 188.8 GE products 546.0 476.2 420.1 Other products 61.2 50.3 46.3 Total net sales $ 1,585.9 $ 1,397.5 $ 1,330.6 Timing of revenue recognition – Note 11: Products transferred at a point in time $ 543.0 n/a n/a Products transferred over time 1,042.9 n/a n/a Total net sales $ 1,585.9 Geographic information for net sales based on country of origin, income taxes paid and long-lived assets were as follows (in millions of dollars): Year Ended December 31, 2018 2017 2016 Net sales to unaffiliated customers: Domestic $ 1,509.6 $ 1,337.3 $ 1,278.6 Foreign 1 76.3 60.2 52.0 Total net sales $ 1,585.9 $ 1,397.5 $ 1,330.6 Income taxes paid: Domestic $ 1.6 $ 1.2 $ 0.7 Foreign 2.0 0.1 0.5 Total income taxes paid $ 3.6 $ 1.3 $ 1.2 December 31, 2018 2017 2016 Long-lived assets: 2 Domestic $ 581.7 $ 541.2 $ 499.5 Foreign 1 30.1 30.2 31.4 Total long-lived assets $ 611.8 $ 571.4 $ 530.9 __________________ 1. Foreign reflects our London, Ontario production facility. 2. Long-lived assets represent Property, plant and equipment, net. The aggregate foreign currency transaction gain (loss) included in determining net income were immaterial for 2018 , 2017 and 2016 . For the years ended December 31, 2018 , December 31, 2017 and December 31, 2016 , one customer represented 25% , 27% and 26% , respectively, of Net sales and a second customer represented 15% , 12% and 10% , respectively, of Net sales. One individual customer accounted for 31% and another individual customer accounted for 11% of the accounts receivable balance at December 31, 2018 . One individual customer accounted for 22% and another individual customer accounted for 14% of the accounts receivable balance at December 31, 2017 . Information about export sales and primary aluminum supply from our major suppliers were as follows for the periods presented: Year Ended December 31, 2018 2017 2016 Percentage of Net sales: Export sales 15 % 18 % 19 % Percentage of total annual primary aluminum supply (lbs): Supply from our top five major suppliers 81 % 85 % 84 % Supply from our largest supplier 22 % 36 % 32 % Supply from our second and third largest suppliers combined 38 % 33 % 32 % |
Guarantor and Non-Guarantor Fin
Guarantor and Non-Guarantor Financial Statements | 12 Months Ended |
Dec. 31, 2018 | |
Guarantor and Non-Guarantor Financial Statement [Abstract] | |
Guarantor and Non-Guarantor Financial Statements | Condensed Guarantor and Non-Guarantor Financial Information During the quarter ended June 30, 2016, we issued $375.0 million aggregate principal amount of our 5.875% Senior Notes and redeemed in full the remaining principal balance of our 8.25% Senior Notes. The 5.875% Senior Notes were issued by Kaiser Aluminum Corporation ("Parent") pursuant to an indenture dated May 12, 2016 ("Indenture") with Wells Fargo Bank, National Association, as trustee ("Trustee"). The obligations of the Parent under the Indenture are guaranteed by Kaiser Aluminum Investments Company, Kaiser Aluminum Fabricated Products, LLC and Kaiser Aluminum Washington, LLC, ("Guarantor Subsidiaries"). All Guarantor Subsidiaries are 100% owned by Parent. The guarantees are full and unconditional and joint and several but have customary releases in the following situations: (i) the sale of the Guarantor Subsidiary or all of its assets; (ii) the declaration of a Guarantor Subsidiary as an unrestricted subsidiary under the Indenture; (iii) the termination or release of the Guarantor Subsidiary's guarantee of certain other indebtedness; or (iv) our exercise of legal defeasance or covenant defeasance or the discharge of our obligations under the Indenture. The following condensed consolidating financial information as of December 31, 2018 and December 31, 2017 , and for the years ended December 31, 2018 , December 31, 2017 and December 31, 2016 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 of Parent other than the Guarantor Subsidiaries ("Non-Guarantor Subsidiaries") on a combined basis; (ii) the "Consolidating Adjustments," which represent the adjustments necessary to eliminate the investments in our subsidiaries, other intercompany balances and other intercompany sales and cost of sales 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. The condensed consolidating financial information should be read in conjunction with the consolidated financial statements herein. The Non-Guarantor Subsidiaries include Kaiser Aluminum Mill Products, Inc., Kaiser Aluminum Canada Limited, Trochus Insurance Company, Kaiser Aluminum France, S.A.S., Kaiser Aluminum Beijing Trading Company, Imperial Machine & Tool, Co. and Solid Innovations, LLC. Kaiser Aluminum Mill Products, Inc. was included in the "Guarantor Subsidiaries" under the indenture covering the 8.25% Senior Notes but is not a Guarantor Subsidiary under the Indenture. CONDENSED CONSOLIDATING BALANCE SHEET (In millions of dollars) December 31, 2018 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 122.6 $ 3.0 $ — $ 125.6 Short-term investments — 36.7 — — 36.7 Receivables: Trade receivables, net — 174.0 5.8 — 179.8 Intercompany receivables 143.7 0.1 4.3 (148.1 ) — Other — 23.3 2.3 — 25.6 Contract assets — 52.0 2.9 — 54.9 Inventories — 203.0 12.1 — 215.1 Prepaid expenses and other current assets 0.1 18.4 0.4 — 18.9 Total current assets 143.8 630.1 30.8 (148.1 ) 656.6 Investments in and advances to subsidiaries 974.7 94.9 0.2 (1,069.8 ) — Property, plant and equipment, net — 577.4 34.4 — 611.8 Long-term intercompany receivables — — 9.8 (9.8 ) — Deferred tax assets, net — 32.9 — 3.0 35.9 Intangible assets, net — 23.6 8.8 — 32.4 Goodwill — 18.8 25.2 — 44.0 Other assets — 38.6 — — 38.6 Total $ 1,118.5 $ 1,416.3 $ 109.2 $ (1,224.7 ) $ 1,419.3 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 4.9 $ 109.6 $ 6.9 $ — $ 121.4 Intercompany payable — 148.0 0.1 (148.1 ) — Accrued salaries, wages and related expenses — 38.3 1.8 — 40.1 Other accrued liabilities 2.8 46.7 0.8 (6.3 ) 44.0 Total current liabilities 7.7 342.6 9.6 (154.4 ) 205.5 Net liabilities of Salaried VEBA — 32.4 — — 32.4 Deferred tax liabilities — — 4.2 — 4.2 Long-term intercompany payable — 9.8 — (9.8 ) — Long-term liabilities — 63.3 3.1 — 66.4 Long-term debt 370.4 — — — 370.4 Total liabilities 378.1 448.1 16.9 (164.2 ) 678.9 Total stockholders' equity 740.4 968.2 92.3 (1,060.5 ) 740.4 Total $ 1,118.5 $ 1,416.3 $ 109.2 $ (1,224.7 ) $ 1,419.3 CONDENSED CONSOLIDATING BALANCE SHEET (In millions of dollars) December 31, 2017 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 48.4 $ 2.7 $ — $ 51.1 Short-term investments — 183.7 — — 183.7 Receivables: Trade receivables, net — 160.1 4.9 — 165.0 Intercompany receivables 22.8 0.1 0.7 (23.6 ) — Other — 14.7 0.8 — 15.5 Inventories — 198.7 9.2 — 207.9 Prepaid expenses and other current assets 0.1 32.9 0.4 — 33.4 Total current assets 22.9 638.6 18.7 (23.6 ) 656.6 Investments in and advances to subsidiaries 1,097.7 48.2 — (1,145.9 ) — Property, plant and equipment, net — 541.2 30.2 — 571.4 Long-term intercompany receivables — — 12.4 (12.4 ) — Deferred tax assets, net — 67.3 — 4.7 72.0 Intangible assets, net — 25.0 — — 25.0 Goodwill — 18.8 — — 18.8 Other assets — 41.4 — — 41.4 Total $ 1,120.6 $ 1,380.5 $ 61.3 $ (1,177.2 ) $ 1,385.2 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 1.9 $ 81.4 $ 6.7 $ — $ 90.0 Intercompany payable — 23.5 0.1 (23.6 ) — Accrued salaries, wages and related expenses — 41.0 1.6 — 42.6 Other accrued liabilities 2.8 46.2 1.0 (9.5 ) 40.5 Total current liabilities 4.7 192.1 9.4 (33.1 ) 173.1 Net liabilities of Salaried VEBA — 31.9 — — 31.9 Deferred tax liabilities — — 4.3 — 4.3 Long-term intercompany payable — 12.4 — (12.4 ) — Long-term liabilities — 58.0 2.0 — 60.0 Long-term debt 369.6 — — — 369.6 Total liabilities 374.3 294.4 15.7 (45.5 ) 638.9 Total stockholders' equity 746.3 1,086.1 45.6 (1,131.7 ) 746.3 Total $ 1,120.6 $ 1,380.5 $ 61.3 $ (1,177.2 ) $ 1,385.2 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (In millions of dollars) Year Ended December 31, 2018 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 1,547.0 $ 138.1 $ (99.2 ) $ 1,585.9 Costs and expenses: Cost of products sold, excluding depreciation and amortization and other items — 1,271.2 126.0 (96.5 ) 1,300.7 Depreciation and amortization — 41.3 2.6 — 43.9 Selling, general, administrative, research and development 4.8 88.5 5.7 (2.7 ) 96.3 Other operating charges, net — 1.3 0.1 — 1.4 Total costs and expenses 4.8 1,402.3 134.4 (99.2 ) 1,442.3 Operating (loss) income (4.8 ) 144.7 3.7 — 143.6 Other (expense) income: Interest expense (21.1 ) (2.2 ) — 0.6 (22.7 ) Other (expense) income, net — (0.4 ) 0.1 (0.6 ) (0.9 ) (Loss) income before income taxes (25.9 ) 142.1 3.8 — 120.0 Income tax provision — (32.9 ) (1.7 ) 6.3 (28.3 ) Earnings in equity of subsidiaries 117.6 2.1 — (119.7 ) — Net income $ 91.7 $ 111.3 $ 2.1 $ (113.4 ) $ 91.7 Comprehensive income $ 80.0 $ 99.6 $ 2.1 $ (101.7 ) $ 80.0 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (In millions of dollars) Year Ended December 31, 2017 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 1,365.3 $ 115.7 $ (83.5 ) $ 1,397.5 Costs and expenses: Cost of products sold, excluding depreciation and amortization and other items 1 — 1,066.1 101.1 (81.3 ) 1,085.9 Depreciation and amortization — 37.5 2.2 — 39.7 Selling, general, administrative, research and development 2 4.5 88.3 6.9 (2.2 ) 97.5 Goodwill impairment — 18.4 — — 18.4 Other operating charges, net — 0.8 — — 0.8 Total costs and expenses 4.5 1,211.1 110.2 (83.5 ) 1,242.3 Operating (loss) income (4.5 ) 154.2 5.5 — 155.2 Other (expense) income: Interest expense (20.7 ) (1.7 ) — 0.2 (22.2 ) Other (expense) income, net — (0.5 ) 0.7 (0.2 ) — (Loss) income before income taxes (25.2 ) 152.0 6.2 — 133.0 Income tax provision — (95.2 ) (1.9 ) 9.5 (87.6 ) Earnings in equity of subsidiaries 70.6 4.3 — (74.9 ) — Net income $ 45.4 $ 61.1 $ 4.3 $ (65.4 ) $ 45.4 Comprehensive income $ 45.4 $ 61.1 $ 4.3 $ (65.4 ) $ 45.4 _____________________ 1. See Note 7 for discussion of our adoption of ASU 2017-12 and the related reclassification of amounts previously presented in the Statements of Consolidated Income within Unrealized (gain) loss on derivative instruments and now included within Cost of products sold, excluding depreciation and amortization and other items. 2. See Note 1 for discussion of our adoption of ASU 2017-07 and the related reclassification of amounts previously presented in the Statements of Consolidated Income within Selling, general, administrative, research and development and now included within Other expense. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE (LOSS) INCOME (In millions of dollars) Year Ended December 31, 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 1,301.6 $ 103.4 $ (74.4 ) $ 1,330.6 Costs and expenses: Cost of products sold: Cost of products sold, excluding depreciation and amortization and other items 1 — 981.9 90.0 (71.1 ) 1,000.8 Lower of cost or market inventory write-down — 4.9 — — 4.9 Depreciation and amortization — 34.0 2.0 — 36.0 Selling, general, administrative, research and development 2 4.2 95.0 8.4 (2.6 ) 105.0 Other operating charges, net — 2.8 — — 2.8 Total costs and expenses 4.2 1,118.6 100.4 (73.7 ) 1,149.5 Operating (loss) income (4.2 ) 183.0 3.0 (0.7 ) 181.1 Other (expense) income: Interest (expense) income (21.6 ) 1.2 — 0.1 (20.3 ) Other expense, net (11.1 ) (2.4 ) — (0.1 ) (13.6 ) (Loss) income before income taxes (36.9 ) 181.8 3.0 (0.7 ) 147.2 Income tax provision — (69.0 ) (0.6 ) 14.1 (55.5 ) Earnings in equity of subsidiaries 128.6 1.7 — (130.3 ) — Net income $ 91.7 $ 114.5 $ 2.4 $ (116.9 ) $ 91.7 Comprehensive income $ 86.7 $ 109.8 $ 2.1 $ (111.9 ) $ 86.7 _____________________ 1. See Note 7 for discussion of our adoption of ASU 2017-12 and the related reclassification of amounts previously presented in the Statements of Consolidated Income within Unrealized (gain) loss on derivative instruments and now included within Cost of products sold, excluding depreciation and amortization and other items. 2. See Note 1 for discussion of our adoption of ASU 2017-07 and the related reclassification of amounts previously presented in the Statements of Consolidated Income within Selling, general, administrative, research and development and now included within Other expense. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (In millions of dollars) Year Ended December 31, 2018 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities: Net cash provided by operating activities $ 226.2 $ 166.6 $ 7.4 $ (250.0 ) $ 150.2 Cash flows from investing activities: Capital expenditures — (68.0 ) (6.1 ) — (74.1 ) Purchase of available for sale securities — (135.2 ) — — (135.2 ) Purchase of equity securities — (0.9 ) — — (0.9 ) Proceeds from disposition of available for sale securities — 283.9 — — 283.9 Cash payment for acquisition of Imperial Machine & Tool Co., net of cash received — (43.2 ) — — (43.2 ) Proceeds from disposal of property, plant and equipment — 0.6 — — 0.6 Intercompany loans receivable (120.9 ) — (1.0 ) 121.9 — Net cash (used in) provided by investing activities (120.9 ) 37.2 (7.1 ) 121.9 31.1 Cash flows from financing activities: Repayment of capital lease — (0.7 ) — — (0.7 ) Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares (6.9 ) — — — (6.9 ) Repurchase of common stock (60.7 ) — — — (60.7 ) Cash dividends and dividend equivalents paid (37.7 ) — — — (37.7 ) Cash dividends paid to Parent — (250.0 ) — 250.0 — Intercompany loans payable — 121.9 — (121.9 ) — Net cash used in financing activities (105.3 ) (128.8 ) — 128.1 (106.0 ) Net increase in cash and cash equivalents during the period — 75.0 0.3 — 75.3 Cash, cash equivalents and restricted cash at beginning of period — 61.3 3.0 — 64.3 Cash, cash equivalents and restricted cash at end of period $ — $ 136.3 $ 3.3 $ — $ 139.6 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (In millions of dollars) Year Ended December 31, 2017 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities: Net cash (used in) provided by operating activities $ (24.2 ) $ 156.9 $ 8.8 $ — $ 141.5 Cash flows from investing activities: Capital expenditures — (74.7 ) (0.8 ) — (75.5 ) Purchase of available for sale securities — (247.5 ) — — (247.5 ) Proceeds from disposition of available for sale securities — 296.9 — — 296.9 Proceeds from disposal of property, plant and equipment — 0.6 — — 0.6 Intercompany loans receivable 143.2 — (7.6 ) (135.6 ) — Net cash provided by (used in) investing activities 143.2 (24.7 ) (8.4 ) (135.6 ) (25.5 ) Cash flows from financing activities: Repayment of capital lease — (0.4 ) — — (0.4 ) Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares (4.5 ) — — — (4.5 ) Repurchase of common stock (79.5 ) — — — (79.5 ) Cash dividends and dividend equivalents paid (35.0 ) — — — (35.0 ) Intercompany loans payable — (135.6 ) — 135.6 — Net cash used in financing activities (119.0 ) (136.0 ) — 135.6 (119.4 ) Net (decrease) increase in cash and cash equivalents during the period — (3.8 ) 0.4 — (3.4 ) Cash, cash equivalents and restricted cash at beginning of period — 65.1 2.6 — 67.7 Cash, cash equivalents and restricted cash at end of period $ — $ 61.3 $ 3.0 $ — $ 64.3 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (In millions of dollars) Year Ended December 31, 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities: Net cash provided by operating activities $ 177.7 $ 178.7 $ 9.2 $ (200.0 ) $ 165.6 Cash flows from investing activities: Capital expenditures — (74.0 ) (2.1 ) — (76.1 ) Purchase of available for sale securities — (255.3 ) — — (255.3 ) Proceeds from disposition of available for sale securities — 55.0 — — 55.0 Intercompany loans receivable 1 (166.0 ) 110.4 (1.3 ) 56.9 — Net cash used in investing activities (166.0 ) (163.9 ) (3.4 ) 56.9 (276.4 ) Cash flows from financing activities: Repayment of principal and redemption premium of 8.25% Senior Notes (206.0 ) — — — (206.0 ) Issuance of 5.875% Senior Notes 375.0 — — — 375.0 Cash paid for debt issuance costs (6.8 ) — — — (6.8 ) Proceeds from stock option exercises 1.2 — — — 1.2 Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares (2.9 ) — — — (2.9 ) Repurchase of common stock (33.3 ) — — — (33.3 ) Cash dividends and dividend equivalents paid (32.4 ) — — — (32.4 ) Cash dividends paid to Parent — (200.0 ) — 200.0 — Intercompany loans payable 1 (106.5 ) 167.3 (3.9 ) (56.9 ) — Net cash (used in) provided by financing activities (11.7 ) (32.7 ) (3.9 ) 143.1 94.8 Net (decrease) increase in cash and cash equivalents during the period — (17.9 ) 1.9 — (16.0 ) Cash, cash equivalents and restricted cash at beginning of period — 83.0 0.7 — 83.7 Cash, cash equivalents and restricted cash at end of period $ — $ 65.1 $ 2.6 $ — $ 67.7 ________________ 1 As a result of Parent's additional liquidity associated with the 5.875% Senior Notes (see Note 8 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The following tables present the unaudited financial data for each of the interim periods in 2018 and 2017 (in millions of dollars, except per share amounts): Quarter Ended 31-Mar Quarter Ended 30-Jun Quarter Ended 30-Sep Quarter Ended 31-Dec 2018 Net sales $ 388.0 $ 415.4 $ 393.1 $ 389.4 Cost of products sold, excluding depreciation, amortization and other items $ 316.7 $ 343.4 $ 323.3 $ 317.3 Gross profit $ 71.3 $ 72.0 $ 69.8 $ 72.1 Operating income $ 37.1 $ 34.7 $ 34.9 $ 36.9 Net income $ 25.7 $ 20.7 $ 21.7 $ 23.6 Net income per common share, Basic $ 1.54 $ 1.24 $ 1.31 $ 1.44 Net income per common share, Diluted $ 1.51 $ 1.22 $ 1.29 $ 1.41 Dividends declared per common share $ 0.55 $ 0.55 $ 0.55 $ 0.55 Quarter Ended 31-Mar Quarter Ended 30-Jun Quarter Ended 30-Sep Quarter Ended 31-Dec 2017 Net sales $ 355.3 $ 356.3 $ 332.8 $ 353.1 Cost of products sold, excluding depreciation, amortization and other items $ 262.7 $ 289.6 $ 256.4 $ 277.2 Gross profit $ 92.6 $ 66.7 $ 76.4 $ 75.9 Operating income $ 59.3 $ 12.5 $ 41.5 $ 41.9 Net income (loss) 1 $ 36.0 $ 4.7 $ 19.9 $ (15.2 ) Net income (loss) per common share, Basic $ 2.07 $ 0.28 $ 1.18 $ (0.90 ) Net income (loss) per common share, Diluted $ 2.04 $ 0.27 $ 1.16 $ (0.90 ) Dividends declared per common share $ 0.50 $ 0.50 $ 0.50 $ 0.50 ________________ 1 The quarter ended June 30, 2017 reflected an $18.4 million goodwill impairment charge (see Note 3 ). The quarter ended December 31, 2017 included the tax provision effect of $37.2 million due to the Tax Act (see Note 13 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Dividend Declaration . On January 15, 2019 , we announced that our Board of Directors declared a quarterly cash dividend of $0.60 per common share, or approximately $9.8 million (including dividend equivalents), which was paid on February 15, 2019 to stockholders of record at the close of business on January 25, 2019 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation. The consolidated financial statements include the accounts of our wholly owned subsidiaries and are prepared in accordance with United States generally accepted accounting principles ("GAAP") and the rules and regulations of the Securities and Exchange Commission ("SEC"). Intercompany balances and transactions are eliminated. We have reclassified certain amounts in prior-period financial statements to conform to the current period's presentation. On the Statements of Consolidated Income, prior period presentation of Unrealized (gain) loss on derivative instruments is now contained within "Cost of products sold, excluding depreciation and amortization and other items." See Note 7 for additional details. See Note 16 for changes relating to the consolidation of the All Other business unit into the Fabricated Products reporting segment. |
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. |
Foreign Currency | 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. We do not meet the documentation requirements for hedge (deferral) accounting related to foreign currency derivatives and, as such, gains and losses (both unrealized and realized) related to our foreign currency forward contracts are reflected as an increase or reduction in Other income, net. |
Fair Value Measurement | Fair Value Measurements. 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. We also 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 each period include our derivative instruments, equity investments related to our deferred compensation plan and debt investment securities classified as available for sale securities (see Note 4 and Note 7 ). Additionally, we measure at fair value once each year at December 31 the plan assets of the Salaried VEBA (defined in Note 4 ) and our Canadian defined benefit pension plan. We record our remaining financial assets and liabilities at carrying value. |
Cash and Cash Equivalents | Cash and Cash Equivalents. We consider only those short-term, highly liquid investments which, when purchased, have maturities of 90 days or less to be cash equivalents. Our cash equivalents consist primarily of funds in commercial paper, money market funds and other highly liquid investments, which are classified within Level 1 of the fair value hierarchy with the exception of commercial paper, which is classified within Level 2 of the fair value hierarchy (see Note 7 |
Restricted Cash | Restricted Cash. We are required to keep on deposit certain amounts that are pledged or held as collateral relating to workers' compensation and other agreements. We account for such deposits as restricted cash (see Note 15 |
Available for Sale Securities | Available for Sale Securities. We account for investments in certain marketable debt securities as available for sale securities. Such securities are recorded at fair value (see Note 7 ), with net unrealized gains and losses, net of income taxes, reflected in Accumulated other comprehensive loss as a component of Stockholders' equity. Realized gains and losses from the sale of marketable debt securities, if any, are determined on a specific identification basis. Debt investment securities with an original maturity of 90 days or less are classified as Cash and cash equivalents (see Note 2 ). Debt investment securities with an original maturity of greater than 90 days are presented as Short-term investments on the Consolidated Balance Sheets. In addition to debt investment securities, we also hold assets in various investment funds managed by a third-party trust in connection with our deferred compensation program (see Note 4 |
Trade Receivables and Allowance for Doubtful Accounts | Trade Receivables and Allowance for Doubtful Accounts. Trade receivables primarily consist of amounts billed to customers for products sold. Accounts receivable are generally due within 30 to 90 days . For the majority of our receivables, we establish an allowance for doubtful accounts based upon collection experience and other factors. On certain other receivables where we are aware of a specific customer's inability or reluctance to pay, an allowance for doubtful accounts is established against amounts due, to reduce the net receivable balance to the amount we reasonably expect to collect. However, if circumstances change, our estimate of the recoverability of accounts receivable could be different. Circumstances that could affect our estimates include, but are not limited to, customer credit issues and general economic conditions. Accounts are written off once deemed to be uncollectible. Any subsequent cash collections relating to accounts that have been previously written off are typically recorded as a reduction to total bad debt expense in the period of payment. Write-offs for 2018 , 2017 and 2016 |
Inventories | Inventories. Inventories are stated at the lower of cost or market value. On March 31, 2016, we recorded a lower of cost or market inventory write-down of $4.9 million as a result of a decrease in our net realizable value of inventory. The net realizable value reflected commitments as of that date from customers to purchase our inventory at prices that exceeded the Midwest Transaction Price, which reflects the primary aluminum supply/demand dynamics in North America, reduced by an approximate normal profit margin. There were no additional lower of cost or market inventory adjustments since the quarter ended March 31, 2016. Finished products, work-in-process and raw material inventories are stated on the last-in, first-out ("LIFO") basis. At December 31, 2018 and December 31, 2017 , the current cost of our inventory exceeded its stated LIFO value by $31.7 million and $24.3 million , respectively. The stated LIFO value of our inventory represented its net realizable value (less a normal profit margin). Other inventories are stated on the first-in, first-out basis and consist of operating supplies, which are materials and supplies to be consumed during the production process. 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 (see Note 2 for the components of inventories). Replacement Parts. Replacement parts consist of preventative maintenance and capital spare parts, which are stated on the first-in, first-out basis. Replacement parts are recorded within Prepaid expenses and other current assets or Other assets depending on whether or not the expected utilization of the replacement parts is to occur within the current operating cycle. |
Property, Plant and Equipment - Net | Property, Plant and Equipment, Net. Property, plant and equipment, net, is recorded at cost and includes construction in progress (see Note 2 ). Interest related to the construction of qualifying assets is capitalized as part of the construction costs. The amount of interest expense capitalized as construction in progress was $1.7 million , $2.2 million and $2.9 million during 2018 , 2017 and 2016 , respectively. Depreciation is computed using the straight-line method at rates based on the estimated useful lives of the various classes of assets. Capital lease assets and leasehold improvements are depreciated on a straight-line basis over the shorter of the estimated useful lives of the assets or the lease term. The principal estimated useful lives are as follows: Range (in years) Land improvements 3 - 25 Buildings and leasehold improvements 15 - 45 Machinery and equipment 1 - 24 Capital lease assets 2 - 10 Depreciation expense is not included in Cost of products sold, excluding depreciation and amortization and other items, but is included in Depreciation and amortization. Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset or group of assets may not be recoverable. We regularly assess whether events and circumstances with the potential to trigger impairment have occurred and rely on a number of factors, including operating results, business plans, economic projections and anticipated future cash flow, to make such assessments. We use an estimate of the future undiscounted cash flows of the related asset or asset group over the estimated remaining life of such asset(s) in measuring whether the asset(s) are recoverable. Measurement of the amount of impairment, if any, is based on the difference between the carrying value of the asset(s) and the estimated fair value of such asset(s). Fair value is determined through a series of standard valuation techniques. We recorded impairment charges of $1.4 million , $0.8 million and $0.2 million in 2018 , 2017 and 2016 , respectively, to reflect the scrap value of idled assets we determined not to deploy for future use. Asset impairment charges are included in Other operating charges, net , in the Statements of Consolidated Income. |
Goodwill and Intangible Assets | Goodwill is tested for impairment during the fourth quarter on an annual basis, as well as on an interim basis, as warranted, at the time of relevant events and changes in circumstances. Intangible assets with definite lives are initially recognized at fair value and subsequently amortized over the estimated useful lives to reflect the pattern in which the economic benefits of the intangible assets are consumed. In the event the pattern cannot be reliably determined, we use a straight-line amortization method. Whenever events or changes in circumstances indicate that the carrying amount of the intangible assets may not be recoverable, the intangible assets are reviewed for impairment. For a discussion of our business acquisition in 2018, the goodwill impairment charge we recorded during 2017 and the intangible asset non-cash impairment charge we recorded during 2016, see Note 3 |
Derivative Financial Instruments | Derivative Financial Instruments. Consistent with guidelines established by management and approved by our Board of Directors, we use derivative financial instruments to mitigate our exposure to changes in the market price of aluminum, alloying metals, energy and, to a lesser extent, foreign currency exchange rates. We do not use derivative financial instruments for trading or other speculative purposes. Hedging transactions are executed centrally on behalf of all of our operations to minimize transaction costs, monitor consolidated net exposures and allow for increased responsiveness to changes in market factors. We reflect the fair value of all of our derivative instruments on our Consolidated Balance Sheets (see Note 7 ). The fair value of hedges settling within one year is included in Prepaid expenses and other current assets or Other accrued liabilities. The fair value of hedges settling beyond one year is included in Other assets or Long-term liabilities. Prior to our adoption of ASU 2017-12 (as defined below under " Adoption of New Accounting Standards "), we did not meet the documentation requirements for hedge (deferral) accounting related to our aluminum and energy derivatives. Accordingly, we recorded unrealized gain or loss associated with these hedges in the Statements of Consolidated Income. Subsequent to our adoption of ASU 2017-12 on January 1, 2018, our aluminum and energy derivatives qualified for hedge (deferral) accounting and, as such, we designated such hedges as cash flow hedges. Forward swap contracts for zinc and copper ("Alloying Metals") used in our fabrication operations are also designated as cash flow hedges. Unrealized gains and losses associated with our cash flow hedges are deferred in Other comprehensive loss, net of tax and reclassified to Cost of products sold, excluding depreciation and amortization and other items when such hedges settle (see Note 7 |
Self Insurance of Workers' Compensation and Employee Healthcare Liabilities | Self Insurance of Workers' Compensation and Employee Healthcare Liabilities . We self-insure the majority of the costs of workers' compensation benefits and employee healthcare benefits and rely on insurance coverage to protect us from large losses on individual claims. Workers' compensation liabilities are based on a combination of estimates for: (i) incurred-but-not- reported claims and (ii) the ultimate expense of incurred claims. Such estimates are based on judgment, using our historical claims data and information and analysis provided by actuarial and claims advisors, our insurance carriers and other professionals. Our undiscounted workers' compensation liabilities were estimated at $27.6 million and $24.8 million at December 31, 2018 and December 31, 2017 , respectively. However, we account for our workers' compensation accrued liability on a discounted basis (see Note 2 ), using a discount rate of 3.00% at December 31, 2018 and 2.25% at December 31, 2017 . Accrued liabilities for employee healthcare benefits, which are estimates of unpaid incurred medical and prescription drug costs as provided by our healthcare administrators, were $3.6 million and $3.5 million at December 31, 2018 and December 31, 2017 |
Deferred Issuance Costs | Debt Issuance Costs. Costs incurred in connection with debt financing are deferred and amortized over the estimated term of the related borrowing. Such amortization is included in Interest expense and may be capitalized as part of construction in progress (see Note 8 |
Conditional Asset Retirement Obligations ("CAROs") | Conditional Asset Retirement Obligations ( " CAROs " ). We have CAROs at several of our manufacturing facilities. Our CAROs can be separated into two primary categories: (i) legal obligations related to the removal and disposal of asbestos and (ii) asset retirement obligations related to future lease terminations. The majority of our CAROs relate to the first category and consist of incremental costs that would be associated with the removal and disposal of asbestos (all of which is believed to be fully contained and encapsulated within walls, floors, ceilings or piping) of certain of our older facilities if such facilities were to undergo major renovation or be demolished. We estimate incremental costs for special handling, removal and disposal costs of materials that may or will give rise to CAROs and then discount the expected costs back to the current year using a credit-adjusted, risk-free rate. When it is unclear when or if CAROs will be triggered, we use probability weighting for possible timing scenarios to determine the probability-weighted liability amounts that should be recognized in our consolidated financial statements (see Note 9 |
Environmental Contingencies | Environmental Contingencies. With respect to environmental loss contingencies, we record a loss contingency whenever a contingency is probable and reasonably estimable (see Note 9 ). Accruals for estimated losses from environmental remediation obligations are generally recognized no later than the completion of the remedial feasibility study. Such accruals are adjusted as information develops or circumstances change. Costs of future expenditures for environmental remediation obligations are not discounted to their present value. Accruals for expected environmental costs are included in Other accrued liabilities or Long-term liabilities, as appropriate (see Note 2 ). Environmental expense relating to continuing operations is included in Cost of products sold, excluding depreciation and amortization and other items 1 |
Advertising Costs | Advertising Costs. Advertising costs, which are included in SG&A and R&D, are expensed as incurred. Advertising costs for 2018 , 2017 and 2016 were $0.3 million , $0.7 million and $0.4 million |
Research and Development Costs | Research and Development Costs. Research and development costs, which are included in SG&A and R&D, are expensed as incurred. Research and development costs for 2018 , 2017 and 2016 were $9.8 million , $10.0 million and $10.2 million |
Major Maintenance Activities | Major Maintenance Activities. All major maintenance costs are accounted for using the direct expensing method. |
Leases | Leases. For leases that contain predetermined fixed escalations of the minimum rent, we recognize the related rent expense on a straight-line basis from the date we take possession of the property to the end of the initial lease term. We record any difference between the straight-line rent amounts and the amount payable under the lease as part of deferred rent in Other accrued liabilities or Long-term liabilities, as appropriate. Deferred rent for all periods presented was not material. |
Stock-Based Compensation | Stock-Based Compensation. Stock-based compensation in the form of service-based awards is provided to executive officers, certain employees and non-employee directors and is accounted for at fair value. We measure the cost of services received in exchange for an award of equity instruments based on the grant-date fair value of the award and the number of awards expected to ultimately vest. The grant-date fair value is determined based on the stock price on the date of grant, adjusted for expected dividends or dividend equivalents to be paid during the vesting period. We also grant performance-based awards to executive officers and other key employees. The methodology used to value these performance-based awards is based on the nature of the performance conditions within those awards. Awards that are subject to performance conditions pertaining to total shareholder return are valued on the date of grant using a Monte Carlo valuation model. The key assumptions in applying this model are an expected volatility and a risk-free interest rate. Awards with performance conditions pertaining to our cost performance and awards with performance conditions pertaining to our economic value added performance are valued based on our stock price at the date of grant. For more information on our stock-based compensation, see Note 6 . The cost of service-based awards, including time-vested restricted stock and performance shares, is recognized as an expense over the requisite service period of the award on a straight-line basis. Adjustments to expense related to forfeitures are recorded in the period in which they occur. For performance shares with performance conditions pertaining to our cost performance and economic value added performance, the related expense is updated quarterly by adjusting the estimated number of shares expected to vest based on the most probable outcome of the performance condition (see Note 6 |
Income Taxes | Income Taxes. Deferred income taxes reflect the future tax effect of temporary differences between the carrying amount of assets and liabilities for financial and income tax reporting and are measured by applying statutory tax rates in effect for the year during which the differences are expected to reverse. In accordance with Accounting Standards Codification ("ASC") Topic 740, Income Taxes ("ASC 740"), we use a "more likely than not" threshold for recognition of tax attributes that are subject to uncertainties and measure any reserves in respect of such expected benefits based on their probability. Deferred tax assets are reduced by a valuation allowance to the extent it is more likely than not that the deferred tax assets will not be realized (see Note 13 |
New Accounting Pronouncements | Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09") , 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. We adopted ASU 2014-09, including its subsequent amendments as codified under ASC Topic 606 ("ASC 606"), during the quarter ended March 31, 2018. Upon adoption under the modified retrospective method, we elected to apply the guidance only to contracts that were not completed at the date of initial application, which resulted in a cumulative-effect increase of $10.1 million (see Note 11 ) to our Retained earnings (net of a $3.3 million tax impact) on January 1, 2018. Comparative information in this Report has not been adjusted and continues to be reported under previous revenue recognition guidance within ASC Topic 605 ("ASC 605"). See Statement of Consolidated Stockholders' Equity and Note 11 for details of the significant changes and quantitative impacts of the changes, as well as our policy on revenue recognition. ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"), was issued in January 2016. The amendments in ASU 2016-01 require equity investments to be measured at fair value with changes in fair value recognized in net income. Equity investments related to our deferred compensation plan that had previously been accounted for as available for sale securities are now accounted for as equity investments with changes in fair value recorded within net income. As such, we recorded a cumulative-effect increase of $0.6 million to our Retained earnings on January 1, 2018 to remove the balance of mark-to-market adjustments recorded within Accumulated other comprehensive income at December 31, 2017. See Note 4 for additional details on our deferred compensation plan, including the fair value of related equity investments. ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost ("ASU 2017-07"), was issued in March 2017. ASU 2017-07 amends the requirements related to the income statement presentation of the components of net periodic postretirement benefit cost for our defined benefit pension and other postretirement plans. Specifically, ASU 2017-07 requires us to: (i) disaggregate the current-service-cost component from the "other components" of net benefit cost and present it with other current compensation costs for related employees in the income statement and (ii) present the other components elsewhere in the income statement and outside of income from operations. As a result of our retrospective adoption of ASU 2017-07, we reclassified amounts that had previously been presented within Selling, general, administrative, research and development to Other expense, net, in the Statements of Consolidated Income. See Note 4 for further discussion of our defined benefit pension and other postretirement plans. ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities ("ASU 2017-12"), was issued in August 2017. The amendments under ASU 2017-12 refine and expand hedge accounting requirements for both financial (e.g., interest rate) and commodity risks. Its provisions create more transparency around how economic results are presented, both on the face of the financial statements and in the related notes. It also makes certain targeted improvements to simplify the application of hedge accounting guidance. There was no cumulative effect adjustment to record as a result of early adopting ASU 2017-12 in the quarter ended March 31, 2018; however, we designated all of our outstanding commodity hedges as cash flow hedges beginning January 1, 2018. We therefore have significantly reduced the mark-to-market adjustments that have historically been recorded within the Statements of Consolidated Income. These adjustments have instead been recorded within Other comprehensive loss, net of tax beginning in the quarter ended March 31, 2018. See Note 7 for further discussion of our derivatives and hedging programs. There were no material impacts on our consolidated financial statements resulting from our early adoption in the first quarter of 2018 of ASU No. 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. Accounting Pronouncements Issued But Not Yet Adopted 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 plan to adopt this standard using the optional transition method provided for under ASU No. 2018-11, Leases (Topic 842): Targeted Improvements ("ASU 2018-11"), which will allow us to apply the standard as of January 1, 2019, rather than as of the earliest period presented. We plan to elect the package of practical expedients within ASC Topic 842, which, among other things, will allow us to carry forward historical lease classification. We also plan to elect the practical expedient that will allow us to exclude leases with a term of twelve months or less from our balance sheet. However, we are not electing to adopt the hindsight practical expedient. We estimate that the adoption of ASU 2016-02 will impact our consolidated balance sheet as of January 1, 2019 through the creation of a right-of-use asset and lease liability for operating leases in the range of $20.0 million to $30.0 million . We are still in process of estimating our incremental borrowing rate as of January 1, 2019, updating our policies and procedures to incorporate updates to lease accounting as well as assessing our control environment for the resulting changes. ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), was issued in June 2016. Under ASU 2016-13, existing guidance on reporting credit losses for trade and other receivables and available for sale debt securities will be replaced with a new forward-looking "expected loss" model that generally will result in the earlier recognition of allowances for losses. We are currently in the process of evaluating the impact of adopting ASU 2016-13 in 2020, but do not expect it to have a material impact on our consolidated financial statements. ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract ("ASU 2018-15"), was issued in August 2018. Under ASU 2018-15, requirements for capitalizing implementation costs incurred in a hosting arrangement (cloud computing) that is a service contract, are to be aligned with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. We are currently in the process of evaluating the impact of adopting ASU 2018-15 in 2020, but do not expect it to have a material impact on our consolidated financial statements. We do not anticipate any material impact on our consolidated financial statements upon the adoption of the following accounting pronouncements: (i) ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting ; (ii) ASU No. 2018-08, Not-for-Profit Entities (Topic 958): Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made ; (iii) ASU 2018-13 , Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement ; and (iv) ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans |
Revenue Recognition | 11. Revenue Recognition Prior to the Adoption of ASC 606 . Prior to our adoption of ASC 606 on January 1, 2018, we recognized revenue on a gross basis when all of the following criteria were met: (i) persuasive evidence of an arrangement existed; (ii) title, ownership and risk of loss had passed to the customer; (iii) the price to the customer was fixed or determinable; and (iv) collection of the resulting receivable was reasonably assured. Provisions for estimated sales returns from and allowances to customers were made in the same period as the related revenues were recognized, based on historical experience or the specific identification of an event necessitating a reserve. Subsequent to the Adoption of ASC 606 . Subsequent to our adoption of ASC 606 on January 1, 2018 (see " New Accounting Pronouncements" in Note 1 ), we recognize revenue as we fulfill our performance obligations and transfer control of products to our customers. For products that have an alternative use and/or for which we do not have an enforceable right to payment (including a reasonable profit) during the production process, we recognize revenue at a point in time. For products that have no alternative use and for which we have an enforceable right to payment (including a reasonable profit) throughout the production process, we recognize revenue over time. In general, a majority of our Aero/HS products and our Automotive Extrusions are recognized over time, with the remainder of our products recognized at a point in time. For the majority of our business, contracts with customers begin when we acknowledge a purchase order for a specific customer order of product to be delivered in the near term. These purchase orders are short term in nature, although they may reference a longer term "blanket purchase order" or a "terms and conditions" agreement, both of which may span multiple years. For revenue recognized at a point in time, transfer of control usually occurs upon shipment or upon customer receipt of the product, depending on shipping terms. For contracts recognized over time, control transfer occurs incrementally during our production process as progress is made on fulfilling the performance obligation. We use the input method of determining our progress, capturing direct costs beginning at the point that billet or cast ingot is introduced into production at either the extrusion phase or the rolling phase, respectively. We believe the input method more accurately reflects the transfer of control as it represents the best information available of work completed to date for which we have an enforceable right to payment. For products in production, we recognize revenue using estimates of the cost incurred to date plus a reasonable margin. As the duration of our contracts for accounting purposes is typically less than one year, we do not present quantitative information about the aggregate transaction price allocated to unsatisfied performance obligations at the end of the reporting period. We adjust the amount of revenue recognized on all products, regardless of timing of revenue recognition, for variable price consideration, which could include metal market price adjustments, volume rebates and sales discounts. We estimate rebate and discount values based on forecasted order data and historical payment trends for specific customers, adjusted as necessary at each reporting period. Accounts receivable is recorded when our right to consideration becomes unconditional. Payment terms for a majority of our domestic customers are 30 days after invoice date. To accommodate shipping time to overseas locations, payment terms for foreign customers are typically several weeks longer than domestic terms. As such, we do not adjust the promised amount of consideration for the effects of a significant financing component as we do not expect the period between the transfer of control of products to our customers and receipt of payment will be greater than one year. Contract assets primarily relate to our enforceable right to consideration for work completed but not billed at the reporting date on contracts for products recognized over time. Contract assets also include amounts related to our contractual right to consideration for finished goods recognized over time that were in transit as of period end. Incremental Costs of Obtaining a Contract . We expense the costs of obtaining a contract as incurred as the amortization period of the asset that we otherwise would have recognized is one year or less. Shipping and Handling Activities. |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Balance Sheet Disclosures | Supplemental Balance Sheet Information December 31, 2018 December 31, 2017 (In millions of dollars) Cash and Cash Equivalents Cash and money market funds $ 22.9 $ 23.5 Commercial paper 102.7 27.6 Total $ 125.6 $ 51.1 December 31, 2018 December 31, 2017 (In millions of dollars) Trade Receivables, net Billed trade receivables $ 179.5 $ 165.9 Unbilled trade receivables 1.1 0.3 Trade receivables, gross 180.6 166.2 Allowance for doubtful receivables (0.8 ) (1.2 ) Trade receivables, net $ 179.8 $ 165.0 Inventories Finished products $ 48.0 $ 63.8 Work-in-process 85.6 78.3 Raw materials 75.0 61.3 Operating supplies 6.5 4.5 Total $ 215.1 $ 207.9 Property, Plant and Equipment, net Land and improvements $ 21.4 $ 21.1 Buildings and leasehold improvements 97.0 92.1 Machinery and equipment 755.6 689.1 Construction in progress 43.6 35.1 Property, plant and equipment – gross 917.6 837.4 Accumulated depreciation (307.4 ) (267.9 ) Assets held for sale 1.6 1.9 Property, plant and equipment, net $ 611.8 $ 571.4 Other Accrued Liabilities Uncleared cash disbursements $ 4.8 $ 7.3 Accrued income taxes and other taxes payable 6.5 6.8 Accrued annual contribution to VEBAs – Note 4 2.1 15.7 Accrued interest 2.9 2.9 Other – Note 7 27.7 7.8 Total $ 44.0 $ 40.5 Long-Term Liabilities Workers' compensation accruals $ 24.6 $ 22.6 Long-term environmental accrual – Note 9 14.3 15.8 Other long-term liabilities 27.5 21.6 Total $ 66.4 $ 60.0 |
Business Combinations, Goodwi_2
Business Combinations, Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes recognized amounts of identifiable assets acquired and liabilities assumed at the acquisition date (in millions of dollars): Cash $ 0.9 Accounts receivable 2.6 Prepaid expenses and other current assets 0.6 Inventory 2.9 Property, plant and equipment 4.1 Identifiable intangible assets with definite lives 9.2 Goodwill 25.2 Accounts payable and other current liabilities (1.4 ) Total purchase price 44.1 Less: cash acquired (0.9 ) Purchase price, net of cash acquired $ 43.2 |
Schedule of Goodwill | Goodwill. The following table presents the changes to goodwill during the year ended December 31, 2018 (in millions of dollars): December 31, 2017 Increase to Goodwill 1 December 31, 2018 Goodwill $ 37.2 $ 25.2 $ 62.4 Accumulated impairment loss (18.4 ) — (18.4 ) Carrying value $ 18.8 $ 25.2 $ 44.0 ____________________ 1 The goodwill of $25.2 million arising from the acquisition of IMT after allocating the consideration paid, net of cash received, to all other identifiable assets is expected to be deductible for income tax purposes over the next 15 years |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Intangible Assets. Information regarding our intangible assets consisted of the following as of each period presented (in millions of dollars, except amortization periods): Weighted-Average Amortization Period (in years) Gross Amount Accumulated Amortization Intangible Assets, Net December 31, 2018 Customer relationships 24 $ 36.1 $ (11.1 ) $ 25.0 Trade name 10 2.4 (0.1 ) 2.3 Non-compete agreement 5 5.4 (0.3 ) 5.1 Total $ 43.9 $ (11.5 ) $ 32.4 December 31, 2017 Customer relationships 25 $ 34.7 $ (9.7 ) $ 25.0 Total $ 34.7 $ (9.7 ) $ 25.0 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Amortization expense relating to definite-lived intangible assets was $1.8 million for 2018 , $1.4 million for 2017 , and $1.5 million for 2016 . The expected amortization of intangible assets for each of the next five calendar years is as follows (in millions of dollars): 2019 $ 2.8 2020 2.8 2021 2.8 2022 2.8 2023 2.6 Thereafter 18.6 Total $ 32.4 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Assumptions Used for Benefit Obligation | Assumptions used to determine benefit obligations as of the periods presented were as follows: Canadian Pension Plan Salaried VEBA December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Discount rate 3.90 % 3.40 % 3.90 % 3.20 % Expected long-term return on plan assets 4.45 % 4.45 % 5.50 % 5.50 % Rate of compensation increase 3.00 % 3.00 % — — |
Schedule of Assumptions Used to Determine Net Periodic Benefit Cost (Income) | Assumptions used to determine net periodic postretirement benefit cost for the years ended December 31 were: Canadian Pension Plan Salaried VEBA 2018 2017 2016 2018 2017 2016 Discount rate 3.40 % 3.80 % 4.10 % 3.20 % 3.60 % 3.90 % Expected long-term return on plan assets 1 4.45 % 4.45 % 4.45 % 5.50 % 7.75 % 7.75 % Rate of compensation increase 3.00 % 3.00 % 3.00 % — — — _____________________ 1. |
Schedule of Changes in Benefit Obligations | The following table presents the benefit obligations and funded status of our Canadian pension plan and the Salaried VEBA as of December 31, 2018 and December 31, 2017 and the corresponding amounts that are included in our Consolidated Balance Sheets (in millions of dollars): Canadian Pension Plan Salaried VEBA 2018 2017 2018 2017 Change in benefit obligation: Obligation at beginning of year $ 8.5 $ 7.0 $ 90.0 $ 86.8 Foreign currency translation adjustment (0.7 ) 0.5 — — Service cost 0.3 0.3 — — Interest cost 0.3 0.3 2.8 3.0 Prior service cost 1 — — 6.9 7.3 Actuarial (gain) loss 2 (0.6 ) 0.6 (6.8 ) (0.5 ) Plan participants contributions 0.1 0.1 — — Benefits paid by Company (0.6 ) (0.3 ) — — Benefits paid by Salaried VEBA — — (7.3 ) (6.6 ) Obligation at end of year 3 7.3 8.5 85.6 90.0 Change in plan assets: Fair market value of plan assets at beginning of year 7.3 6.1 58.1 58.2 Foreign currency translation adjustment (0.6 ) 0.5 — — Actual return on assets (0.2 ) 0.5 0.3 3.6 Plan participants contributions 0.1 0.1 — — Company contributions 0.5 0.4 2.1 2.9 Benefits paid by Company (0.6 ) (0.3 ) — — Benefits paid by Salaried VEBA — — (7.3 ) (6.6 ) Fair market value of plan assets at end of year 6.5 7.3 53.2 58.1 Net funded status 4 $ (0.8 ) $ (1.2 ) $ (32.4 ) $ (31.9 ) _____________________________ 1. The prior service cost relating to the Salaried VEBA in both 2018 and 2017 resulted from increases in the annual healthcare reimbursement benefit starting in 2018 and 2017, respectively, for plan participants. 2. The actuarial gain relating to the Salaried VEBA in 2018 was comprised of: (i) a $5.1 million gain due to a change in the discount rate; (ii) a $2.2 million gain due to a change in the projected utilization rate; offset by (iii) a $0.5 million loss due to changes in census information. The actuarial gain relating to the Salaried VEBA in 2017 was comprised of: (i) a $2.5 million gain due to changes in census information; (ii) a $1.0 million gain due to a change in the projected utilization rate; offset by (iii) a $3.0 million loss due to a change in the discount rate. 3. For the Canadian pension plan, the benefit obligation is the projected benefit obligation. For the Salaried VEBA, the benefit obligation is the APBO. 4. Net funded status of $32.4 million and $31.9 million relating to the Salaried VEBA at December 31, 2018 and December 31, 2017 , respectively, was presented as Net liabilities of Salaried VEBA on the Consolidated Balance Sheet. The accumulated benefit obligation for the Canadian pension plan was $6.4 million and $7.9 million at December 31, 2018 and December 31, 2017 , respectively. We expect to contribute $0.6 million to the Canadian pension plan in 2019 |
Schedule of Changes in Plan Assets | The following table presents the benefit obligations and funded status of our Canadian pension plan and the Salaried VEBA as of December 31, 2018 and December 31, 2017 and the corresponding amounts that are included in our Consolidated Balance Sheets (in millions of dollars): Canadian Pension Plan Salaried VEBA 2018 2017 2018 2017 Change in benefit obligation: Obligation at beginning of year $ 8.5 $ 7.0 $ 90.0 $ 86.8 Foreign currency translation adjustment (0.7 ) 0.5 — — Service cost 0.3 0.3 — — Interest cost 0.3 0.3 2.8 3.0 Prior service cost 1 — — 6.9 7.3 Actuarial (gain) loss 2 (0.6 ) 0.6 (6.8 ) (0.5 ) Plan participants contributions 0.1 0.1 — — Benefits paid by Company (0.6 ) (0.3 ) — — Benefits paid by Salaried VEBA — — (7.3 ) (6.6 ) Obligation at end of year 3 7.3 8.5 85.6 90.0 Change in plan assets: Fair market value of plan assets at beginning of year 7.3 6.1 58.1 58.2 Foreign currency translation adjustment (0.6 ) 0.5 — — Actual return on assets (0.2 ) 0.5 0.3 3.6 Plan participants contributions 0.1 0.1 — — Company contributions 0.5 0.4 2.1 2.9 Benefits paid by Company (0.6 ) (0.3 ) — — Benefits paid by Salaried VEBA — — (7.3 ) (6.6 ) Fair market value of plan assets at end of year 6.5 7.3 53.2 58.1 Net funded status 4 $ (0.8 ) $ (1.2 ) $ (32.4 ) $ (31.9 ) _____________________________ 1. The prior service cost relating to the Salaried VEBA in both 2018 and 2017 resulted from increases in the annual healthcare reimbursement benefit starting in 2018 and 2017, respectively, for plan participants. 2. The actuarial gain relating to the Salaried VEBA in 2018 was comprised of: (i) a $5.1 million gain due to a change in the discount rate; (ii) a $2.2 million gain due to a change in the projected utilization rate; offset by (iii) a $0.5 million loss due to changes in census information. The actuarial gain relating to the Salaried VEBA in 2017 was comprised of: (i) a $2.5 million gain due to changes in census information; (ii) a $1.0 million gain due to a change in the projected utilization rate; offset by (iii) a $3.0 million loss due to a change in the discount rate. 3. For the Canadian pension plan, the benefit obligation is the projected benefit obligation. For the Salaried VEBA, the benefit obligation is the APBO. 4. Net funded status of $32.4 million and $31.9 million relating to the Salaried VEBA at December 31, 2018 and December 31, 2017 , respectively, was presented as Net liabilities of Salaried VEBA on the Consolidated Balance Sheet. |
Schedule of Expected Benefit Payments | As of December 31, 2018 , the net benefits expected to be paid in each of the next five fiscal years and in the aggregate for the five fiscal years thereafter are as follows (in millions of dollars): Benefit Payments Due by Period 2019 2020 2021 2022 2023 2024-2028 Canadian pension plan benefit payments $ 0.3 $ 0.3 $ 0.3 $ 0.3 $ 0.3 $ 1.8 Salaried VEBA benefit payments 1 8.0 7.8 7.5 7.2 6.9 29.9 Total net benefits $ 8.3 $ 8.1 $ 7.8 $ 7.5 $ 7.2 $ 31.7 __________________________________ 1. |
Schedule of Net Periodic Benefit Cost Not yet Recognized | The amount of loss included in the Consolidated Balance Sheets (within Accumulated other comprehensive loss) associated with our Canadian pension plan and the Salaried VEBA (before tax) that had not yet been reflected in net periodic postretirement benefit cost was as follows at December 31 (in millions of dollars): Canadian Pension Plan Salaried VEBA 2018 2017 2018 2017 Accumulated net actuarial loss $ (1.5 ) $ (1.9 ) $ (12.5 ) $ (17.5 ) Transition assets — 0.1 — — Prior service cost — — (44.2 ) (42.7 ) Cumulative loss reflected in Accumulated other comprehensive loss $ (1.5 ) $ (1.8 ) $ (56.7 ) $ (60.2 ) |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | fair value of plan assets, classified under the appropriate level of the fair value hierarchy, as of each period presented (in millions of dollars): Level 1 Level 2 Level 3 Total As of December 31, 2018: Plan Assets in the Fair Value Hierarchy: Salaried VEBA – Cash and money market investments $ 0.9 $ — $ — $ 0.9 Diversified investment funds in registered investment companies 1 8.7 — — 8.7 Total Salaried VEBA assets in the fair value hierarchy 9.6 — — 9.6 Deferred compensation program – Diversified investment funds in registered investment companies 1 — 10.5 — 10.5 Total plan assets in the fair value hierarchy $ 9.6 $ 10.5 $ — $ 20.1 Plan Assets Measured at NAV 2 : Salaried VEBA – Fixed income investment funds in registered investment companies 3 $ 21.2 Salaried VEBA – Equity investment funds in registered investment companies 4 20.3 Canadian pension plan – Diversified investment funds in registered investment companies 1 6.5 Total plan assets at fair value $ 68.1 As of December 31, 2017: Plan Assets in the Fair Value Hierarchy: Salaried VEBA – Cash and money market investments $ 1.3 $ — $ — $ 1.3 Diversified investment funds in registered investment companies 1 10.2 — — 10.2 Total Salaried VEBA assets in the fair value hierarchy 11.5 — — 11.5 Deferred compensation program – Diversified investment funds in registered investment companies 1 — 9.8 — 9.8 Total plan assets in the fair value hierarchy $ 11.5 $ 9.8 $ — $ 21.3 Plan Assets Measured at NAV 2 : Salaried VEBA – Fixed income investment funds in registered investment companies 3 $ 19.4 Salaried VEBA – Equity investment funds in registered investment companies 4 24.3 Canadian pension plan – Diversified investment funds in registered investment companies 1 7.3 Total plan assets at fair value $ 72.3 _________________________ 1. The plan assets are invested in investment funds that hold a diversified portfolio of: (i) U.S. and international debt and equity securities; (ii) fixed income securities such as corporate bonds and government bonds; (iii) mortgage-related securities; and (iv) cash and cash equivalents. 2. The market value of these funds has not been categorized in the fair value hierarchy and is being presented in the table above to permit a reconciliation of the fair value hierarchy to the Consolidated Balance Sheets. Equity investment funds measured at fair value using the NAV practical expedient are managed by an investment adviser registered with the SEC under the Investment Advisers Act of 1940 and can be redeemed with five business days' notice on the 15th (or last business day prior to the 15th) and on the last business day of each month. A business day is every day that the New York Stock Exchange is open. Diversified investment funds measured at fair value using the NAV practical expedient are unitized mutual funds without externally published net asset values, which can be redeemed daily without restriction. 3. This category represents investments in various fixed income funds with multiple registered investment companies. Such funds invest in diversified portfolios, including: (i) marketable fixed income securities, such as (a) U.S. Treasury and other government and agency securities, (b) municipal bonds, (c) mortgage-backed securities, (d) asset-backed securities, (e) corporate bonds, notes and debentures in various sectors, (f) preferred and common stock, (g) investments in affiliated and other investment companies, (h) short-term investments and other net assets and (i) repurchase agreements and reverse repurchase agreements; (ii) other commingled investments; (iii) investment grade debt; (iv) fixed income instruments which may be represented by options, future contracts or swap agreements; and (v) cash and cash equivalents. 4. |
Schedule of Net Periodic Benefit Costs (Income) | The following table presents the components of net periodic postretirement benefit cost for the years ended December 31 (in millions of dollars): Canadian Pension Plan Salaried VEBA 2018 2017 2016 2018 2017 2016 Service cost $ 0.3 $ 0.3 $ 0.3 $ 0.1 $ — $ — Interest cost 0.3 0.3 0.3 2.7 3.0 2.9 Expected return on plan assets (0.3 ) (0.3 ) (0.3 ) (2.9 ) (4.1 ) (4.1 ) Amortization of prior service cost 1 — — — 5.4 4.7 4.1 Amortization of net actuarial loss 0.1 — — 0.8 0.9 0.5 Net periodic postretirement benefit cost $ 0.4 $ 0.3 $ 0.3 $ 6.1 $ 4.5 $ 3.4 __________________________ 1. Year Ended December 31, 2018 2017 2016 Canadian pension plan 1 $ 0.4 $ 0.3 $ 0.3 Defined contribution plans 1 8.8 8.9 8.9 Deferred compensation plan 1 1.0 1.8 0.9 Multiemployer pension plans 2 4.7 4.6 4.7 Net periodic postretirement benefit cost relating to Salaried VEBA 3 6.1 4.5 3.4 Gain on removal of Union VEBA net assets 3 — — (0.1 ) Total $ 21.0 $ 20.1 $ 18.1 ___________________________ 1. Substantially all of these charges related to employee benefits are in Cost of products sold, excluding depreciation and amortization and other items with the remaining balance in SG&A and R&D. 2. See Note 5 for more information on our multiemployer defined benefit pension plans. 3. On January 1, 2018, we retrospectively adopted ASU 2017-07 (see Note 1 |
Multiemployer Pension Plans (Ta
Multiemployer Pension Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Multiemployer Plans [Abstract] | |
Multiemployer Pension Plan Description and Contributions | Our participation in multiemployer pension plans for the year ended December 31, 2018 is outlined in the table below: Pension Fund Employer Identification Number Pension Protection Act Zone Status 1 FIP/RP Status Pending/Implemented in 2018 2 Contributions of the Company Surcharge Imposed in 2018 Expiration Date of Collective-Bargaining Agreements 2018 2017 2016 2018 2017 (in millions of dollars) Steelworkers Pension Trust (USW) 3 236648508 Green Green No $ 3.6 $ 3.5 $ 3.7 No Mar 2020 - Feb 2021 Other Funds 4 1.1 1.1 1.0 $ 4.7 $ 4.6 $ 4.7 ________________ 1. The most recent Pension Protection Act zone status available in 2018 and 2017 for the Steelworkers Pension Trust is for the plan's year-end at December 31, 2017 and December 31, 2016 , respectively. The zone status is based on information that we received from the plan and is certified by the plan's actuary. Among other factors, plans in the green zone are at least 80% funded. 2. The "FIP/RP Status Pending/Implemented" column indicates if a Financial Improvement Plan (FIP) or a Rehabilitation Plan (RP) is either pending or has been implemented for the plan under the Pension Protection Act. 3. We are party to three collective bargaining agreements with the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO, CLC ("USW") that require contributions to the Steelworkers Pension Trust. As of December 31, 2018 , USW collective bargaining agreements covering employees at the Newark, Ohio ("Newark") and Spokane, Washington ("Trentwood") facilities covered 86% of our USW-represented employees and expire in September 2020. Our monthly contributions per hour worked by each bargaining unit employee at the Newark and Trentwood facilities are (in whole dollars) $1.50 and will increase to $1.75 in 2019. The union contracts covering employees at the Richmond, Virginia facility and Florence, Alabama facility cover 11% and 3% of our USW-represented employees, respectively, and expire in November 2020 and March 2020, respectively. 4. |
Employee Incentive Plans (Table
Employee Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of the activity with respect to RSAs and RSUs for the year ended December 31, 2018 is as follows: Shares Weighted-Average Outstanding at December 31, 2017 216,953 $ 74.04 Granted 74,138 96.40 Vested (64,061 ) 73.25 Forfeited (7,517 ) 77.17 Outstanding at December 31, 2018 219,513 $ 80.99 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Inputs and assumptions used in the Monte Carlo simulations to calculate the fair value at grant date of our TSR-Based Performance Shares were as follows: Year Ended December 31, 2018 2017 2016 Grant date fair value $ 127.41 $ 97.88 $ 93.02 Grant date stock price $ 101.66 $ 79.69 $ 80.46 Expected volatility of Kaiser Aluminum 1 24.86 % 22.74 % 17.81 % Expected volatility of peer companies 1 44.74 % 44.19 % 41.22 % Risk-free interest rate 2.37 % 1.54 % 1.01 % Dividend yield 2.16 % 2.50 % 2.24 % _____________________ 1. Expected volatility based on 2.8 years |
Summary of activity of non-vested common shares, restricted stock units, and performance shares | A summary of the activity with respect to performance shares for the year ended December 31, 2018 is as follows: Shares Weighted-Average Outstanding at December 31, 2017 459,669 $ 90.12 Granted 1 124,833 109.38 Vested (125,674 ) 95.68 Forfeited 1 (10,261 ) 94.85 Canceled 1 (22,207 ) 95.68 Outstanding at December 31, 2018 426,360 $ 93.72 _____________________ 1. |
Non-cash compensation expense | Non-Cash Compensation Expense. Non-cash compensation expense relating to all awards is included in SG&A and R&D. Non-cash compensation expense by type of award under LTI Programs was as follows for each period presented (in millions of dollars): Year Ended December 31, 2018 2017 2016 RSAs and RSUs $ 5.8 $ 5.4 $ 4.7 Performance shares 4.3 7.7 7.0 Total non-cash compensation expense $ 10.1 $ 13.1 $ 11.7 |
Unrecognized gross compensation cost data | Unrecognized Gross Compensation Cost Data. The following table presents unrecognized gross compensation cost data by type of award as of December 31, 2018 : Unrecognized Gross Compensation Costs (in millions of dollars) Expected Period (in years) Over Which the Remaining Gross Compensation Costs Will Be Recognized RSAs and RSUs $ 8.7 2.5 Performance shares $ 6.0 1.6 |
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: Year Ended December 31, 2018 2017 2016 RSAs and RSUs $ 96.40 $ 77.35 $ 76.82 Performance shares $ 109.38 $ 86.97 $ 88.00 |
Derivatives, Hedging Programs_2
Derivatives, Hedging Programs and Other Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of material derivative positions | The following table summarizes our derivative positions at December 31, 2018 : Aluminum Maturity Period (month/year) Notional Amount of contracts (mmlbs) Fixed price purchase contracts 1/19 through 12/21 139.1 Fixed price sales contracts 1/19 through 11/19 0.9 Midwest premium swap contracts 1 1/19 through 12/21 100.1 Alloying Metals Maturity Period (month/year) Notional Amount of contracts (mmlbs) Fixed price purchase contracts 1/19 through 12/19 9.0 Natural Gas 2 Maturity Period (month/year) Notional Amount of contracts (mmbtu) Fixed price purchase contracts 1/19 through 12/21 4,040,000 Electricity 3 Maturity Period (month/year) Notional Amount of contracts (Mwh) Fixed price purchase contracts 1/20 through 12/21 219,600 _________________________ 1. Regional premiums represent the premium over the London Metal Exchange price for primary aluminum which is incurred on our purchases of primary aluminum. 2. As of December 31, 2018 , we had derivative and/or physical delivery commitments with energy companies in place to cover exposure to fluctuations in prices for approximately 66% of the expected natural gas purchases for each of the years 2019 , 2020 and 2021 . 3. As of December 31, 2018 , we had derivative and/or physical delivery commitments with energy companies in place to cover exposure to fluctuations in prices for approximately 54% of the expected electricity purchases for 2019 , 55% of the expected electricity purchases for 2020 and 9% of the expected electricity purchases for 2021 . |
Summary of realized and unrealized gains and losses | The location and amount of loss (gain) included on the Statements of Consolidated Income associated with all derivative contracts consisted of the following for each period presented (in millions of dollars): Year Ended December 31, 2018 2017 2016 Cost of products sold, excluding depreciation and amortization and other items 1 Cost of products sold, excluding depreciation and amortization and other items 1 Unrealized (gain) loss on derivative instruments Cost of products sold, excluding depreciation and amortization and other items 1 Unrealized gain on derivative instruments Total amounts of income and expense line items presented in the statements of consolidated income in which the effects of hedges are recorded $ 1,300.7 $ 1,105.3 $ (19.4 ) $ 1,019.5 $ (18.7 ) Loss (gain) recognized in income related to cash flow hedges: Aluminum $ 2.1 $ — $ — $ — $ — Alloying Metals 1.0 (0.9 ) — — — Natural gas (0.3 ) — — — — Total loss (gain) recognized in income $ 2.8 $ (0.9 ) $ — $ — $ — (Gain) loss recognized in income related to non-designated hedges: Aluminum $ — $ (20.4 ) $ (20.9 ) $ 2.0 $ (10.8 ) Natural gas — 0.7 1.4 5.0 (7.9 ) Foreign exchange — (0.1 ) — 0.1 — Electricity $ — — 0.1 — — Total (gain) loss recognized in income $ — $ (19.8 ) $ (19.4 ) $ 7.1 $ (18.7 ) ____________________ 1 Beginning with our adoption of ASU 2017-12 effective January 1, 2018, we no longer have Unrealized (gain) loss on derivative instruments on the Statements of Consolidated Income as all of our commodity hedges are designated as cash flow hedges. As such, all Unrealized (gain) loss on derivative instruments is reported in AOCI. For the years ended December 31, 2017 and December 31, 2016 , Unrealized (gain) loss on derivative instruments was reclassified to Cost of products sold, excluding depreciation and amortization and other items in the Statements of Consolidated Income to conform to the current period's presentation, for a combined total of $1,085.9 million and $1,000.8 million |
Fair Value, Measurement Inputs, Disclosure | The following table presents the fair value of our derivative financial instruments as of the periods presented (in millions of dollars): December 31, 2018 December 31, 2017 Derivative Assets Derivative Liabilities Net Amount Derivative Assets Derivative Liabilities Net Amount Cash Flow Hedges: Aluminum – Fixed price purchase contracts $ 0.1 $ (13.2 ) $ (13.1 ) $ — $ — $ — Fixed price sales contracts 0.1 — 0.1 — — — Midwest premium swap contracts 3.2 (0.5 ) 2.7 — — — Alloying Metals – Fixed price purchase contracts — (1.7 ) (1.7 ) 0.9 — 0.9 Natural gas – Fixed price purchase contracts 0.2 (0.5 ) (0.3 ) — — — Electricity – Fixed price purchase contracts 0.7 — 0.7 — — — Non-Designated Hedges: Aluminum – Fixed price purchase contracts — — — 22.5 — 22.5 Fixed price sales contracts — — — — (0.1 ) (0.1 ) Midwest premium swap contracts — — — 1.7 (0.1 ) 1.6 Natural gas – Fixed price purchase contracts — — — 0.2 (0.5 ) (0.3 ) Electricity – Fixed price purchase contracts — — — — (0.1 ) (0.1 ) Total $ 4.3 $ (15.9 ) $ (11.6 ) $ 25.3 $ (0.8 ) $ 24.5 The following table presents the balance sheet location of derivative assets and liabilities as of the periods presented (in millions of dollars): December 31, 2018 December 31, 2017 Assets: Prepaid expenses and other current assets $ 3.4 $ 18.9 Other assets 0.9 6.4 Total assets $ 4.3 $ 25.3 Liabilities: Other accrued liabilities $ (13.2 ) $ (0.3 ) Long-term liabilities (2.7 ) (0.5 ) Total Liabilities $ (15.9 ) $ (0.8 ) |
Fair Value, Assets Measured on Recurring Basis | The following table presents our other financial assets, classified under the appropriate level of the fair value hierarchy, as of December 31, 2018 (in millions of dollars): Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 22.9 $ 102.7 $ — $ 125.6 Short-term investments — 36.7 — 36.7 Total $ 22.9 $ 139.4 $ — $ 162.3 December 31, 2017 (in millions of dollars): Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 23.5 $ 27.6 $ — $ 51.1 Short-term investments — 183.7 — 183.7 Total $ 23.5 $ 211.3 $ — $ 234.8 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental payments | Minimum rental commitments at December 31, 2018 were as follows (in millions of dollars): Year Ended December 31, Capital Leases Operating Leases 2019 $ 1.7 $ 6.1 2020 1.4 3.7 2021 1.2 2.8 2022 1.1 2.4 2023 1.0 2.2 2024 and thereafter 1.8 20.8 Total minimum lease payments $ 8.2 $ 38.0 Less: interest (1.2 ) Present value 1 $ 7.0 |
Summary of activities relating to the Company's CARO liabilities | The following table summarizes the activity relating to our CARO liabilities (in millions of dollars): Year Ended December 31, 2018 2017 2016 Beginning balance $ 5.9 $ 5.5 $ 4.9 Liabilities settled during the period — — (0.1 ) Accretion expense 0.4 0.4 0.5 Adjustment to accretion expense due to revisions to estimated cash flow and timing of expenditure 1 — — 0.2 Ending balance $ 6.3 $ 5.9 $ 5.5 _________________________ 1. The adjustments in 2016 had a de minimis impact on the basic and diluted net income per share for 2016. |
Schedule of changes in environmental contingencies | The following table presents the changes in our environmental accrual, which was primarily included in Long-term liabilities (in millions of dollars): Year Ended December 31, 2018 2017 2016 Beginning balance $ 16.6 $ 17.2 $ 18.6 Additional accruals 1.7 0.3 0.1 Less: expenditures (1.4 ) (0.9 ) (1.5 ) Ending balance $ 16.9 $ 16.6 $ 17.2 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive (Loss) Income | The following table presents the changes in the accumulated balances for each component of Accumulated other comprehensive (loss) income ("AOCI") for each period presented (in millions of dollars): Year Ended December 31, 2018 2017 2016 Defined benefit pension plan and VEBAs: Beginning balance $ (38.5 ) $ (37.1 ) $ (31.3 ) Actuarial gain (loss) arising during the period 4.4 (0.3 ) (5.7 ) Less: income tax (expense) benefit (1.1 ) 0.1 2.1 Net actuarial gain (loss) arising during the period 3.3 (0.2 ) (3.6 ) Prior service cost arising during the period (6.9 ) (7.3 ) (8.3 ) Less: income tax benefit 1.7 2.7 3.1 Net prior service cost arising during the period (5.2 ) (4.6 ) (5.2 ) Amortization of net actuarial loss 1 0.9 0.9 0.5 Amortization of prior service cost 1 5.4 4.7 4.1 Less: income tax expense 2 (1.5 ) (2.1 ) (1.7 ) Net amortization and reclassification from AOCI to Net income 4.8 3.5 2.9 Translation impact on Canadian pension plan AOCI balance — (0.1 ) 0.1 Other comprehensive income (loss), net of tax 2.9 (1.4 ) (5.8 ) Ending balance $ (35.6 ) $ (38.5 ) $ (37.1 ) Available for sale securities: Beginning balance 3 $ 0.9 $ 0.8 $ (0.1 ) Unrealized gain on available for sale securities 4.7 4.0 1.9 Less: income tax expense (1.1 ) (1.5 ) (0.7 ) Net gain on available for sale securities 3.6 2.5 1.2 Gain reclassified from AOCI to Net income 4 (5.4 ) (3.2 ) (0.5 ) Less: income tax benefit 2 1.2 1.2 0.2 Net gain reclassified from AOCI to Net income (4.2 ) (2.0 ) (0.3 ) Other comprehensive (loss) income, net of tax (0.6 ) 0.5 0.9 Ending balance $ 0.3 $ 1.3 $ 0.8 Cash Flow Hedges: Beginning balance $ 0.5 $ (0.2 ) $ (0.2 ) Unrealized (loss) gain on cash flow hedges (21.2 ) 1.8 (0.1 ) Less: income tax benefit (expense) 5.3 (0.7 ) — Net unrealized (loss) gain on cash flow hedges (15.9 ) 1.1 (0.1 ) Reclassification of unrealized loss (gain) upon settlement of cash flow hedges 5 2.7 (0.6 ) 0.1 Less: income tax (expense) benefit 2 (0.7 ) 0.2 — Net loss (gain) reclassified from AOCI to Net income 2.0 (0.4 ) 0.1 Other comprehensive (loss) income, net of tax (13.9 ) 0.7 — Ending balance $ (13.4 ) $ 0.5 $ (0.2 ) Year Ended December 31, 2018 2017 2016 Foreign Currency Translation: Beginning balance $ — $ (0.2 ) $ (0.1 ) Other comprehensive (loss) income, net of tax (0.1 ) 0.2 (0.1 ) Ending balance $ (0.1 ) $ — $ (0.2 ) Total AOCI ending balance $ (48.8 ) $ (36.7 ) $ (36.7 ) ____________ 1. Amounts amortized out of AOCI relating to Salaried VEBA adjustments were included within Other expense, net, as a component of Net periodic postretirement benefit cost relating to Salaried VEBA. 2. Income tax amounts reclassified out of AOCI were included as a component of Income tax provision. 3. The beginning unrealized gain within Available for sale securities as of January 1, 2018 includes a $0.4 million cumulative-effect adjustment from our adoption of ASU 2016-01, which required us to remove cumulative gains on equity investments related to our deferred compensation plan as they are no longer accounted for as available for sale securities (see Note 1 and Note 4 for additional details). 4. Amounts reclassified out of AOCI relating to sales of available for sale securities were included as a component of Other expense, net. We use the specific identification method to determine the amount reclassified out of AOCI. 5. Amounts reclassified out of AOCI relating to cash flow hedges were included as a component of Cost of products sold, excluding depreciation and amortization and other items. As of December 31, 2018 , we estimate a net mark-to-market loss before tax of $15.6 million |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table presents the impact on our opening Consolidated Balance Sheet as of January 1, 2018 of adopting ASC 606 (in millions of dollars): December 31, 2017 As Reported Cumulative-effect Adjustments 1 January 1, 2018 As Adjusted Contract assets $ — $ 55.6 $ 55.6 Inventories 207.9 (40.7 ) 167.2 Total current assets 656.6 14.9 671.5 Deferred tax assets, net 72.0 (3.3 ) 68.7 Total assets $ 1,385.2 $ 11.6 $ 1,396.8 Other accrued liabilities 40.5 1.5 42.0 Total current liabilities 173.1 1.5 174.6 Total liabilities $ 638.9 $ 1.5 $ 640.4 Retained earnings 85.5 10.1 95.6 Total stockholders' equity 746.3 10.1 756.4 Total liabilities and stockholders' equity $ 1,385.2 $ 11.6 $ 1,396.8 ____________________ 1 Included in the cumulative-effect adjustment was a charge of $5.0 million as a result of decrementing higher cost prior LIFO layers. The following table presents the impact of adopting ASC 606 on our Consolidated Balance Sheet as of the period presented (in millions of dollars): December 31, 2018 As Reported Adjustments December 31, 2018 without Adoption of ASC 606 Contract assets $ 54.9 $ (54.9 ) $ — Inventories 215.1 32.4 247.5 Total current assets 656.6 (22.5 ) 634.1 Deferred tax assets, net 35.9 3.3 39.2 Total assets $ 1,419.3 $ (19.2 ) $ 1,400.1 Other accrued liabilities 44.0 (3.7 ) 40.3 Total current liabilities 205.5 (3.7 ) 201.8 Total liabilities $ 678.9 $ (3.7 ) $ 675.2 Retained earnings 150.2 (15.5 ) 134.7 Total stockholders' equity 740.4 (15.5 ) 724.9 Total liabilities and stockholders' equity $ 1,419.3 $ (19.2 ) $ 1,400.1 The following table presents the impact of adopting ASC 606 on our Statements of Consolidated Income for each period presented (in millions of dollars, except per share amounts): Year Ended December 31, 2018 As Reported Adjustments Without Adoption of ASC 606 Net sales $ 1,585.9 $ 1.2 $ 1,587.1 Cost of products sold, excluding depreciation and amortization and other items 1 1,300.7 8.3 1,309.0 Operating income 143.6 (7.1 ) 136.5 Income before income taxes 120.0 (7.1 ) 112.9 Income tax provision (28.3 ) 1.7 (26.6 ) Net income $ 91.7 $ (5.4 ) $ 86.3 Net income per common share: Basic $ 5.53 $ (0.33 ) $ 5.20 Diluted $ 5.43 $ (0.32 ) $ 5.11 ____________________ 1 Included in the "as reported" amounts was the benefit of having decremented higher cost prior LIFO layers as part of the cumulative-effect adjustment of adopting ASC 606, as discussed in the opening balance sheet table above. The following table presents the impact of adopting ASC 606 on our Statements of Consolidated Comprehensive Income for each period presented (in millions of dollars): Year Ended December 31, 2018 As Reported Adjustments Without Adoption of ASC 606 Net income $ 91.7 $ (5.4 ) $ 86.3 Comprehensive income $ 80.0 $ (5.4 ) $ 74.6 The following table presents the impact of adopting ASC 606 on our Statements of Consolidated Cash Flows for the period presented (in millions of dollars): Year Ended December 31, 2018 As Reported Adjustments Year Ended December 31, 2018 without Adoption of ASC 606 Net income $ 91.7 $ (5.4 ) $ 86.3 Changes in operating assets and liabilities: Contract assets 0.7 (0.7 ) — Inventories (45.0 ) 8.3 (36.7 ) Accrued liabilities (2.6 ) (2.2 ) (4.8 ) Net cash provided by operating activities $ 150.2 $ — $ 150.2 |
Other Expense, Net (Tables)
Other Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Other Expense, Net | Other expense, net, consisted of the following for each period presented (in millions of dollars): Year Ended December 31, 2018 2017 2016 Interest income $ 0.3 $ 0.2 $ 0.1 Net periodic postretirement benefit cost relating to Salaried VEBA (6.1 ) (4.5 ) (3.4 ) Gain on removal of Union VEBA net assets — — 0.1 Realized gain on investments 6.1 3.4 0.8 Loss on extinguishment of debt 1 — — (11.1 ) All other, net (1.2 ) 0.9 (0.1 ) Other expense, net $ (0.9 ) $ — $ (13.6 ) ____________ 1. Represents the loss on extinguishment of our 8.25% Senior Notes during the year ended December 31, 2016 which includes an $8.2 million premium paid to redeem the notes and a $2.9 million |
Income Tax Matters (Tables)
Income Tax Matters (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income before income taxes by geographic area | Tax Provision . Income before income taxes by geographic area was as follows (in millions of dollars): Year Ended December 31, 2018 2017 2016 Domestic $ 114.6 $ 127.9 $ 143.6 Foreign 5.4 5.1 3.6 Income before income taxes $ 120.0 $ 133.0 $ 147.2 |
Tax Provision | Income tax provision consisted of (in millions of dollars): Federal Foreign State Total 2018 Current $ 11.9 $ (1.9 ) $ (1.5 ) $ 8.5 Deferred (34.7 ) 0.1 (1.4 ) (36.0 ) Expense applied to increase Retained earnings/ Other comprehensive loss (0.7 ) — (0.1 ) (0.8 ) Income tax provision $ (23.5 ) $ (1.8 ) $ (3.0 ) $ (28.3 ) 2017 Current $ 3.1 $ (0.8 ) $ (1.0 ) $ 1.3 Deferred (82.0 ) (1.0 ) (5.7 ) (88.7 ) Expense applied to increase Retained earnings/ Other comprehensive loss (0.1 ) (0.1 ) — (0.2 ) Income tax provision $ (79.0 ) $ (1.9 ) $ (6.7 ) $ (87.6 ) 2016 Current $ 2.7 $ 0.6 $ (1.5 ) $ 1.8 Deferred (47.8 ) (1.2 ) (4.7 ) (53.7 ) Expense applied to increase Additional paid in capital/Other comprehensive loss (3.2 ) (0.1 ) (0.3 ) (3.6 ) Income tax provision $ (48.3 ) $ (0.7 ) $ (6.5 ) $ (55.5 ) |
Reconciliation of income tax provision based on effective income tax rate and statutory tax rate | A reconciliation between the provision for income taxes and the amount computed by applying the federal statutory income tax rate to Income before income taxes is as follows (in millions of dollars): Year Ended December 31, 2018 2017 2016 Amount of federal income tax provision based on the statutory rate $ (25.2 ) $ (46.5 ) $ (51.5 ) Decrease (increase) in federal valuation allowances 1.7 0.5 (0.3 ) Non-deductible compensation (expense) benefit (0.6 ) (2.3 ) 0.3 Non-deductible expense (1.5 ) — (0.3 ) State income tax provision, net of federal benefit 1 (2.5 ) (4.3 ) (4.2 ) Foreign income tax (expense) benefit (0.5 ) (0.1 ) 0.5 Foreign undistributed earnings 0.4 (5.9 ) — Tax rate change (0.1 ) (29.0 ) — Income tax provision $ (28.3 ) $ (87.6 ) $ (55.5 ) ___________________________ 1. State income taxes were $4.5 million in 2018 , increased by a $0.9 million due to higher tax rate true-ups in various states, offset by a $2.9 million decrease in the valuation allowance relating to certain state net operating losses. The state income taxes were $4.0 million in 2017 , increased by a $2.5 million change in tax rates, offset by a $2.2 million decrease in the valuation allowance relating to certain state net operating losses. The state income taxes were $4.1 million in 2016 , offset by a $0.2 million decrease due to lower tax rates in various states and a $0.3 million increase in the valuation allowance relating to certain state net operating losses. |
Deferred tax assets and liabilities | Deferred Income Taxes. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for income tax purposes. The components of our net deferred income tax assets were as follows (in millions of dollars): Year Ended December 31, 2018 2017 Deferred income tax assets: Loss and credit carryforwards $ 48.7 $ 98.7 Salaried VEBA (see Note 4) 8.0 11.6 Other assets 27.2 21.0 Inventories 20.0 9.3 Valuation allowances (8.4 ) (13.0 ) Total deferred income tax assets 95.5 127.6 Deferred income tax liabilities: Property, plant and equipment (62.0 ) (57.7 ) Undistributed foreign earnings (1.8 ) (2.2 ) Total deferred income tax liabilities (63.8 ) (59.9 ) Net deferred income tax assets 1 $ 31.7 $ 67.7 __________________________ 1. Of the total net deferred income tax assets of $31.7 million , $35.9 million was presented as Deferred tax assets, net, and $4.2 million was presented as Deferred tax liabilities on the Consolidated Balance Sheet as of December 31, 2018 . Of the total net deferred income tax assets of $67.7 million , $72.0 million was presented as Deferred tax assets, net, and $4.3 million was presented as Deferred tax liabilities on the Consolidated Balance Sheet as of December 31, 2017 |
Reconciliation of changes in the gross unrecognized tax benefits | We have gross unrecognized benefits relating to uncertain tax positions. A reconciliation of changes in the gross unrecognized tax benefits is as follows (in millions of dollars): Year Ended December 31, 2018 2017 2016 Gross unrecognized tax benefits at beginning of period $ 1.5 $ 1.8 $ 1.7 Gross increases for tax positions of prior years — — 0.1 Gross decreases for tax positions of prior years (0.3 ) — Gross unrecognized tax benefits at end of period $ 1.5 $ 1.5 $ 1.8 |
Net Income Per Share and Stoc_2
Net Income Per Share and Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Calculation of basic and diluted earnings per share | asic and diluted net income per share for the periods presented (in millions of dollars, except share and per share amounts): Year Ended December 31, 2018 2017 2016 Numerator: Net income $ 91.7 $ 45.4 $ 91.7 Denominator – Weighted-average common shares outstanding (in thousands): Basic 16,585 16,996 17,813 Add: dilutive effect of non-vested common shares, restricted stock units and performance shares 1 289 263 220 Diluted 16,874 17,259 18,033 Net income per common share, Basic: $ 5.53 $ 2.67 $ 5.15 Net income per common share, Diluted: $ 5.43 $ 2.63 $ 5.09 |
Treasury Stock | Repurchases of our common stock pursuant to the stock repurchase program is recorded as Treasury stock and consisted of the following for each period presented: Year Ended December 31, 2018 2017 2016 Number of common shares repurchased 617,151 938,680 443,838 Weighted-average repurchase price (dollars per share) $ 100.28 $ 82.97 $ 78.59 Total cost of repurchased common shares (in millions of dollars) $ 61.9 $ 77.8 $ 34.9 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Year Ended December 31, 2018 2017 2016 (in millions of dollars) Interest paid $ 21.6 $ 21.1 $ 17.7 Non-cash investing and financing activities (included in Accounts payable): Unpaid purchases of property and equipment $ 7.0 $ 7.4 $ 4.6 Stock repurchases not yet settled $ 1.3 $ 0.1 $ 1.8 Acquisition of property and equipment through capital leasing arrangements $ 6.5 $ 1.2 $ 0.2 December 31, 2018 2017 2016 Components of cash, cash equivalents and restricted cash: Cash and cash equivalents $ 125.6 $ 51.1 $ 55.2 Restricted cash included in Prepaid expenses and other current assets 0.3 0.3 0.3 Restricted cash included in Other assets 13.7 12.9 12.2 Total cash, cash equivalents and restricted cash shown in the Statements of Consolidated Cash Flows $ 139.6 $ 64.3 $ 67.7 |
Business, Product and Geograp_2
Business, Product and Geographical Area Information and Concentration of Risk (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of net sales by end market segment applications | Net sales by end market applications and by timing of control transfer for each period presented were as follows (in millions of dollars): Year Ended December 31, 2018 2017 2016 Net sales: Aero/HS products $ 739.4 $ 653.7 $ 675.4 Automotive Extrusions 239.3 217.3 188.8 GE products 546.0 476.2 420.1 Other products 61.2 50.3 46.3 Total net sales $ 1,585.9 $ 1,397.5 $ 1,330.6 Timing of revenue recognition – Note 11: Products transferred at a point in time $ 543.0 n/a n/a Products transferred over time 1,042.9 n/a n/a Total net sales $ 1,585.9 |
Schedule of net sales, income taxes paid, and long-lived assets, by geographical area | Geographic information for net sales based on country of origin, income taxes paid and long-lived assets were as follows (in millions of dollars): Year Ended December 31, 2018 2017 2016 Net sales to unaffiliated customers: Domestic $ 1,509.6 $ 1,337.3 $ 1,278.6 Foreign 1 76.3 60.2 52.0 Total net sales $ 1,585.9 $ 1,397.5 $ 1,330.6 Income taxes paid: Domestic $ 1.6 $ 1.2 $ 0.7 Foreign 2.0 0.1 0.5 Total income taxes paid $ 3.6 $ 1.3 $ 1.2 December 31, 2018 2017 2016 Long-lived assets: 2 Domestic $ 581.7 $ 541.2 $ 499.5 Foreign 1 30.1 30.2 31.4 Total long-lived assets $ 611.8 $ 571.4 $ 530.9 __________________ 1. Foreign reflects our London, Ontario production facility. 2. Long-lived assets represent Property, plant and equipment, net. |
Schedules of Concentration of Risk, by Risk Factor | Information about export sales and primary aluminum supply from our major suppliers were as follows for the periods presented: Year Ended December 31, 2018 2017 2016 Percentage of Net sales: Export sales 15 % 18 % 19 % Percentage of total annual primary aluminum supply (lbs): Supply from our top five major suppliers 81 % 85 % 84 % Supply from our largest supplier 22 % 36 % 32 % Supply from our second and third largest suppliers combined 38 % 33 % 32 % |
Guarantor and Non-Guarantor F_2
Guarantor and Non-Guarantor Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Guarantor and Non-Guarantor Financial Statement [Abstract] | |
Schedule of Condensed Financial Statements | CONDENSED CONSOLIDATING BALANCE SHEET (In millions of dollars) December 31, 2018 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 122.6 $ 3.0 $ — $ 125.6 Short-term investments — 36.7 — — 36.7 Receivables: Trade receivables, net — 174.0 5.8 — 179.8 Intercompany receivables 143.7 0.1 4.3 (148.1 ) — Other — 23.3 2.3 — 25.6 Contract assets — 52.0 2.9 — 54.9 Inventories — 203.0 12.1 — 215.1 Prepaid expenses and other current assets 0.1 18.4 0.4 — 18.9 Total current assets 143.8 630.1 30.8 (148.1 ) 656.6 Investments in and advances to subsidiaries 974.7 94.9 0.2 (1,069.8 ) — Property, plant and equipment, net — 577.4 34.4 — 611.8 Long-term intercompany receivables — — 9.8 (9.8 ) — Deferred tax assets, net — 32.9 — 3.0 35.9 Intangible assets, net — 23.6 8.8 — 32.4 Goodwill — 18.8 25.2 — 44.0 Other assets — 38.6 — — 38.6 Total $ 1,118.5 $ 1,416.3 $ 109.2 $ (1,224.7 ) $ 1,419.3 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 4.9 $ 109.6 $ 6.9 $ — $ 121.4 Intercompany payable — 148.0 0.1 (148.1 ) — Accrued salaries, wages and related expenses — 38.3 1.8 — 40.1 Other accrued liabilities 2.8 46.7 0.8 (6.3 ) 44.0 Total current liabilities 7.7 342.6 9.6 (154.4 ) 205.5 Net liabilities of Salaried VEBA — 32.4 — — 32.4 Deferred tax liabilities — — 4.2 — 4.2 Long-term intercompany payable — 9.8 — (9.8 ) — Long-term liabilities — 63.3 3.1 — 66.4 Long-term debt 370.4 — — — 370.4 Total liabilities 378.1 448.1 16.9 (164.2 ) 678.9 Total stockholders' equity 740.4 968.2 92.3 (1,060.5 ) 740.4 Total $ 1,118.5 $ 1,416.3 $ 109.2 $ (1,224.7 ) $ 1,419.3 CONDENSED CONSOLIDATING BALANCE SHEET (In millions of dollars) December 31, 2017 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 48.4 $ 2.7 $ — $ 51.1 Short-term investments — 183.7 — — 183.7 Receivables: Trade receivables, net — 160.1 4.9 — 165.0 Intercompany receivables 22.8 0.1 0.7 (23.6 ) — Other — 14.7 0.8 — 15.5 Inventories — 198.7 9.2 — 207.9 Prepaid expenses and other current assets 0.1 32.9 0.4 — 33.4 Total current assets 22.9 638.6 18.7 (23.6 ) 656.6 Investments in and advances to subsidiaries 1,097.7 48.2 — (1,145.9 ) — Property, plant and equipment, net — 541.2 30.2 — 571.4 Long-term intercompany receivables — — 12.4 (12.4 ) — Deferred tax assets, net — 67.3 — 4.7 72.0 Intangible assets, net — 25.0 — — 25.0 Goodwill — 18.8 — — 18.8 Other assets — 41.4 — — 41.4 Total $ 1,120.6 $ 1,380.5 $ 61.3 $ (1,177.2 ) $ 1,385.2 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 1.9 $ 81.4 $ 6.7 $ — $ 90.0 Intercompany payable — 23.5 0.1 (23.6 ) — Accrued salaries, wages and related expenses — 41.0 1.6 — 42.6 Other accrued liabilities 2.8 46.2 1.0 (9.5 ) 40.5 Total current liabilities 4.7 192.1 9.4 (33.1 ) 173.1 Net liabilities of Salaried VEBA — 31.9 — — 31.9 Deferred tax liabilities — — 4.3 — 4.3 Long-term intercompany payable — 12.4 — (12.4 ) — Long-term liabilities — 58.0 2.0 — 60.0 Long-term debt 369.6 — — — 369.6 Total liabilities 374.3 294.4 15.7 (45.5 ) 638.9 Total stockholders' equity 746.3 1,086.1 45.6 (1,131.7 ) 746.3 Total $ 1,120.6 $ 1,380.5 $ 61.3 $ (1,177.2 ) $ 1,385.2 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (In millions of dollars) Year Ended December 31, 2018 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 1,547.0 $ 138.1 $ (99.2 ) $ 1,585.9 Costs and expenses: Cost of products sold, excluding depreciation and amortization and other items — 1,271.2 126.0 (96.5 ) 1,300.7 Depreciation and amortization — 41.3 2.6 — 43.9 Selling, general, administrative, research and development 4.8 88.5 5.7 (2.7 ) 96.3 Other operating charges, net — 1.3 0.1 — 1.4 Total costs and expenses 4.8 1,402.3 134.4 (99.2 ) 1,442.3 Operating (loss) income (4.8 ) 144.7 3.7 — 143.6 Other (expense) income: Interest expense (21.1 ) (2.2 ) — 0.6 (22.7 ) Other (expense) income, net — (0.4 ) 0.1 (0.6 ) (0.9 ) (Loss) income before income taxes (25.9 ) 142.1 3.8 — 120.0 Income tax provision — (32.9 ) (1.7 ) 6.3 (28.3 ) Earnings in equity of subsidiaries 117.6 2.1 — (119.7 ) — Net income $ 91.7 $ 111.3 $ 2.1 $ (113.4 ) $ 91.7 Comprehensive income $ 80.0 $ 99.6 $ 2.1 $ (101.7 ) $ 80.0 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (In millions of dollars) Year Ended December 31, 2017 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 1,365.3 $ 115.7 $ (83.5 ) $ 1,397.5 Costs and expenses: Cost of products sold, excluding depreciation and amortization and other items 1 — 1,066.1 101.1 (81.3 ) 1,085.9 Depreciation and amortization — 37.5 2.2 — 39.7 Selling, general, administrative, research and development 2 4.5 88.3 6.9 (2.2 ) 97.5 Goodwill impairment — 18.4 — — 18.4 Other operating charges, net — 0.8 — — 0.8 Total costs and expenses 4.5 1,211.1 110.2 (83.5 ) 1,242.3 Operating (loss) income (4.5 ) 154.2 5.5 — 155.2 Other (expense) income: Interest expense (20.7 ) (1.7 ) — 0.2 (22.2 ) Other (expense) income, net — (0.5 ) 0.7 (0.2 ) — (Loss) income before income taxes (25.2 ) 152.0 6.2 — 133.0 Income tax provision — (95.2 ) (1.9 ) 9.5 (87.6 ) Earnings in equity of subsidiaries 70.6 4.3 — (74.9 ) — Net income $ 45.4 $ 61.1 $ 4.3 $ (65.4 ) $ 45.4 Comprehensive income $ 45.4 $ 61.1 $ 4.3 $ (65.4 ) $ 45.4 _____________________ 1. See Note 7 for discussion of our adoption of ASU 2017-12 and the related reclassification of amounts previously presented in the Statements of Consolidated Income within Unrealized (gain) loss on derivative instruments and now included within Cost of products sold, excluding depreciation and amortization and other items. 2. See Note 1 for discussion of our adoption of ASU 2017-07 and the related reclassification of amounts previously presented in the Statements of Consolidated Income within Selling, general, administrative, research and development and now included within Other expense. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE (LOSS) INCOME (In millions of dollars) Year Ended December 31, 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 1,301.6 $ 103.4 $ (74.4 ) $ 1,330.6 Costs and expenses: Cost of products sold: Cost of products sold, excluding depreciation and amortization and other items 1 — 981.9 90.0 (71.1 ) 1,000.8 Lower of cost or market inventory write-down — 4.9 — — 4.9 Depreciation and amortization — 34.0 2.0 — 36.0 Selling, general, administrative, research and development 2 4.2 95.0 8.4 (2.6 ) 105.0 Other operating charges, net — 2.8 — — 2.8 Total costs and expenses 4.2 1,118.6 100.4 (73.7 ) 1,149.5 Operating (loss) income (4.2 ) 183.0 3.0 (0.7 ) 181.1 Other (expense) income: Interest (expense) income (21.6 ) 1.2 — 0.1 (20.3 ) Other expense, net (11.1 ) (2.4 ) — (0.1 ) (13.6 ) (Loss) income before income taxes (36.9 ) 181.8 3.0 (0.7 ) 147.2 Income tax provision — (69.0 ) (0.6 ) 14.1 (55.5 ) Earnings in equity of subsidiaries 128.6 1.7 — (130.3 ) — Net income $ 91.7 $ 114.5 $ 2.4 $ (116.9 ) $ 91.7 Comprehensive income $ 86.7 $ 109.8 $ 2.1 $ (111.9 ) $ 86.7 _____________________ 1. See Note 7 for discussion of our adoption of ASU 2017-12 and the related reclassification of amounts previously presented in the Statements of Consolidated Income within Unrealized (gain) loss on derivative instruments and now included within Cost of products sold, excluding depreciation and amortization and other items. 2. See Note 1 for discussion of our adoption of ASU 2017-07 and the related reclassification of amounts previously presented in the Statements of Consolidated Income within Selling, general, administrative, research and development and now included within Other expense. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (In millions of dollars) Year Ended December 31, 2018 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities: Net cash provided by operating activities $ 226.2 $ 166.6 $ 7.4 $ (250.0 ) $ 150.2 Cash flows from investing activities: Capital expenditures — (68.0 ) (6.1 ) — (74.1 ) Purchase of available for sale securities — (135.2 ) — — (135.2 ) Purchase of equity securities — (0.9 ) — — (0.9 ) Proceeds from disposition of available for sale securities — 283.9 — — 283.9 Cash payment for acquisition of Imperial Machine & Tool Co., net of cash received — (43.2 ) — — (43.2 ) Proceeds from disposal of property, plant and equipment — 0.6 — — 0.6 Intercompany loans receivable (120.9 ) — (1.0 ) 121.9 — Net cash (used in) provided by investing activities (120.9 ) 37.2 (7.1 ) 121.9 31.1 Cash flows from financing activities: Repayment of capital lease — (0.7 ) — — (0.7 ) Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares (6.9 ) — — — (6.9 ) Repurchase of common stock (60.7 ) — — — (60.7 ) Cash dividends and dividend equivalents paid (37.7 ) — — — (37.7 ) Cash dividends paid to Parent — (250.0 ) — 250.0 — Intercompany loans payable — 121.9 — (121.9 ) — Net cash used in financing activities (105.3 ) (128.8 ) — 128.1 (106.0 ) Net increase in cash and cash equivalents during the period — 75.0 0.3 — 75.3 Cash, cash equivalents and restricted cash at beginning of period — 61.3 3.0 — 64.3 Cash, cash equivalents and restricted cash at end of period $ — $ 136.3 $ 3.3 $ — $ 139.6 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (In millions of dollars) Year Ended December 31, 2017 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities: Net cash (used in) provided by operating activities $ (24.2 ) $ 156.9 $ 8.8 $ — $ 141.5 Cash flows from investing activities: Capital expenditures — (74.7 ) (0.8 ) — (75.5 ) Purchase of available for sale securities — (247.5 ) — — (247.5 ) Proceeds from disposition of available for sale securities — 296.9 — — 296.9 Proceeds from disposal of property, plant and equipment — 0.6 — — 0.6 Intercompany loans receivable 143.2 — (7.6 ) (135.6 ) — Net cash provided by (used in) investing activities 143.2 (24.7 ) (8.4 ) (135.6 ) (25.5 ) Cash flows from financing activities: Repayment of capital lease — (0.4 ) — — (0.4 ) Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares (4.5 ) — — — (4.5 ) Repurchase of common stock (79.5 ) — — — (79.5 ) Cash dividends and dividend equivalents paid (35.0 ) — — — (35.0 ) Intercompany loans payable — (135.6 ) — 135.6 — Net cash used in financing activities (119.0 ) (136.0 ) — 135.6 (119.4 ) Net (decrease) increase in cash and cash equivalents during the period — (3.8 ) 0.4 — (3.4 ) Cash, cash equivalents and restricted cash at beginning of period — 65.1 2.6 — 67.7 Cash, cash equivalents and restricted cash at end of period $ — $ 61.3 $ 3.0 $ — $ 64.3 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (In millions of dollars) Year Ended December 31, 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities: Net cash provided by operating activities $ 177.7 $ 178.7 $ 9.2 $ (200.0 ) $ 165.6 Cash flows from investing activities: Capital expenditures — (74.0 ) (2.1 ) — (76.1 ) Purchase of available for sale securities — (255.3 ) — — (255.3 ) Proceeds from disposition of available for sale securities — 55.0 — — 55.0 Intercompany loans receivable 1 (166.0 ) 110.4 (1.3 ) 56.9 — Net cash used in investing activities (166.0 ) (163.9 ) (3.4 ) 56.9 (276.4 ) Cash flows from financing activities: Repayment of principal and redemption premium of 8.25% Senior Notes (206.0 ) — — — (206.0 ) Issuance of 5.875% Senior Notes 375.0 — — — 375.0 Cash paid for debt issuance costs (6.8 ) — — — (6.8 ) Proceeds from stock option exercises 1.2 — — — 1.2 Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares (2.9 ) — — — (2.9 ) Repurchase of common stock (33.3 ) — — — (33.3 ) Cash dividends and dividend equivalents paid (32.4 ) — — — (32.4 ) Cash dividends paid to Parent — (200.0 ) — 200.0 — Intercompany loans payable 1 (106.5 ) 167.3 (3.9 ) (56.9 ) — Net cash (used in) provided by financing activities (11.7 ) (32.7 ) (3.9 ) 143.1 94.8 Net (decrease) increase in cash and cash equivalents during the period — (17.9 ) 1.9 — (16.0 ) Cash, cash equivalents and restricted cash at beginning of period — 83.0 0.7 — 83.7 Cash, cash equivalents and restricted cash at end of period $ — $ 65.1 $ 2.6 $ — $ 67.7 ________________ 1 As a result of Parent's additional liquidity associated with the 5.875% Senior Notes (see Note 8 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Data | The following tables present the unaudited financial data for each of the interim periods in 2018 and 2017 (in millions of dollars, except per share amounts): Quarter Ended 31-Mar Quarter Ended 30-Jun Quarter Ended 30-Sep Quarter Ended 31-Dec 2018 Net sales $ 388.0 $ 415.4 $ 393.1 $ 389.4 Cost of products sold, excluding depreciation, amortization and other items $ 316.7 $ 343.4 $ 323.3 $ 317.3 Gross profit $ 71.3 $ 72.0 $ 69.8 $ 72.1 Operating income $ 37.1 $ 34.7 $ 34.9 $ 36.9 Net income $ 25.7 $ 20.7 $ 21.7 $ 23.6 Net income per common share, Basic $ 1.54 $ 1.24 $ 1.31 $ 1.44 Net income per common share, Diluted $ 1.51 $ 1.22 $ 1.29 $ 1.41 Dividends declared per common share $ 0.55 $ 0.55 $ 0.55 $ 0.55 Quarter Ended 31-Mar Quarter Ended 30-Jun Quarter Ended 30-Sep Quarter Ended 31-Dec 2017 Net sales $ 355.3 $ 356.3 $ 332.8 $ 353.1 Cost of products sold, excluding depreciation, amortization and other items $ 262.7 $ 289.6 $ 256.4 $ 277.2 Gross profit $ 92.6 $ 66.7 $ 76.4 $ 75.9 Operating income $ 59.3 $ 12.5 $ 41.5 $ 41.9 Net income (loss) 1 $ 36.0 $ 4.7 $ 19.9 $ (15.2 ) Net income (loss) per common share, Basic $ 2.07 $ 0.28 $ 1.18 $ (0.90 ) Net income (loss) per common share, Diluted $ 2.04 $ 0.27 $ 1.16 $ (0.90 ) Dividends declared per common share $ 0.50 $ 0.50 $ 0.50 $ 0.50 ________________ 1 The quarter ended June 30, 2017 reflected an $18.4 million goodwill impairment charge (see Note 3 ). The quarter ended December 31, 2017 included the tax provision effect of $37.2 million due to the Tax Act (see Note 13 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies, Narrative (Details) $ in Millions | Jan. 01, 2018USD ($) | Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jan. 01, 2019USD ($) |
Accounting policies additional disclosures | |||||
Number of operating segments | segment | 1 | ||||
Advertising costs | $ 0.3 | $ 0.7 | $ 0.4 | ||
Research and development costs | 9.8 | 10 | 10.2 | ||
Lower of cost or market inventory write-down | 0 | 0 | 4.9 | ||
Excess of current cost over the stated LIFO value of inventory | 31.7 | 24.3 | |||
Non-cash asset impairment charges | 1.4 | 19.2 | $ 2.8 | ||
Undiscounted workers' compensation liabilities | $ 27.6 | $ 24.8 | |||
Discount rate used in estimating liabilities for worker compensation claims | 3.00% | 2.25% | |||
Accrued employee healthcare benefits | $ 3.6 | $ 3.5 | |||
Retained earnings | $ 95.6 | $ 150.2 | $ 85.5 | ||
Minimum | |||||
Accounting policies additional disclosures | |||||
Period over which accounts receivable is due, days | 30 days | ||||
Number of days in maturity for debt investment securities to be classified as short-term investments | 90 days | ||||
Maximum | |||||
Accounting policies additional disclosures | |||||
Period over which accounts receivable is due, days | 90 days | ||||
Number of days to maturity for debt investment securities to be classified as cash and cash equivalents | 90 days | ||||
Scenario, Forecast | Accounting Standards Update 2016-02 | Minimum | |||||
Accounting policies additional disclosures | |||||
Right-of-use asset | $ 20 | ||||
Lease liability | 20 | ||||
Scenario, Forecast | Accounting Standards Update 2016-02 | Maximum | |||||
Accounting policies additional disclosures | |||||
Right-of-use asset | 30 | ||||
Lease liability | $ 30 | ||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 | |||||
Accounting policies additional disclosures | |||||
Tax impact of cumulative increase to retained earnings | (3.3) | ||||
Retained earnings | 10.1 | $ (15.5) | |||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2016-01 | |||||
Accounting policies additional disclosures | |||||
Retained earnings | $ 0.6 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies, Narrative, Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment | |||
Interest expense capitalized as construction in progress | $ 1.7 | $ 2.2 | $ 2.9 |
Depreciation expense | 42.1 | 38.3 | 34.5 |
Non-cash asset impairment charges | 1.4 | 19.2 | 2.8 |
Fabricated Products | Idled equipment | |||
Property, Plant and Equipment | |||
Non-cash asset impairment charges | $ 1.4 | $ 0.8 | $ 0.2 |
Minimum | Land improvements | |||
Property, Plant and Equipment | |||
Property, plant and equipment useful lives (in years) | 3 years | ||
Minimum | Buildings and leasehold improvements | |||
Property, Plant and Equipment | |||
Property, plant and equipment useful lives (in years) | 15 years | ||
Minimum | Machinery and equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment useful lives (in years) | 1 year | ||
Minimum | Capital lease assets | |||
Property, Plant and Equipment | |||
Property, plant and equipment useful lives (in years) | 2 years | ||
Maximum | Land improvements | |||
Property, Plant and Equipment | |||
Property, plant and equipment useful lives (in years) | 25 years | ||
Maximum | Buildings and leasehold improvements | |||
Property, Plant and Equipment | |||
Property, plant and equipment useful lives (in years) | 45 years | ||
Maximum | Machinery and equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment useful lives (in years) | 24 years | ||
Maximum | Capital lease assets | |||
Property, Plant and Equipment | |||
Property, plant and equipment useful lives (in years) | 10 years |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Cash and Cash Equivalents | |||
Cash and money market funds | $ 22.9 | $ 23.5 | |
Commercial paper | 102.7 | 27.6 | |
Total | 125.6 | 51.1 | |
Trade Receivables - Net | |||
Billed trade receivables | 179.5 | 165.9 | |
Unbilled trade receivables | 1.1 | 0.3 | |
Trade receivables, gross | 180.6 | 166.2 | |
Allowance for doubtful receivables | (0.8) | (1.2) | |
Trade receivables - net | 179.8 | 165 | |
Inventories | |||
Finished products | 48 | 63.8 | |
Work-in-process | 85.6 | 78.3 | |
Raw materials | 75 | 61.3 | |
Operating supplies | 6.5 | 4.5 | |
Total | 215.1 | $ 167.2 | 207.9 |
Property, Plant and Equipment - Net | |||
Land and improvements | 21.4 | 21.1 | |
Buildings and leasehold improvements | 97 | 92.1 | |
Machinery and equipment | 755.6 | 689.1 | |
Construction in progress | 43.6 | 35.1 | |
Property, plant and equipment - gross | 917.6 | 837.4 | |
Accumulated depreciation | (307.4) | (267.9) | |
Assets held for sale | 1.6 | 1.9 | |
Property, plant and equipment - net | 611.8 | 571.4 | |
Other Accrued Liabilities | |||
Uncleared cash disbursements | 4.8 | 7.3 | |
Accrued income taxes and taxes payable | 6.5 | 6.8 | |
Accrued annual contribution to VEBAs – Note 4 | 2.1 | 15.7 | |
Accrued interest | 2.9 | 2.9 | |
Other | 27.7 | 7.8 | |
Total | 44 | $ 42 | 40.5 |
Long-Term Liabilities | |||
Workers’ compensation accruals | 24.6 | 22.6 | |
Long-term environmental accrual – Note 9 | 14.3 | 15.8 | |
Other long-term liabilities | 27.5 | 21.6 | |
Total | $ 66.4 | $ 60 |
Business Combinations, Goodwi_3
Business Combinations, Goodwill and Intangible Assets, Business Combinations (Details) - USD ($) $ in Millions | Sep. 19, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Combination Segment Allocation [Line Items] | |||
Goodwill | $ 62.4 | $ 37.2 | |
Imperial Machine and Tool Co. (''IMT'') [Member] | |||
Business Combination Segment Allocation [Line Items] | |||
Cash | $ 0.9 | ||
Accounts receivable | 2.6 | ||
Prepaid expenses and other current assets | 0.6 | ||
Inventory | 2.9 | ||
Property, plant and equipment | 4.1 | ||
Identifiable intangible assets with definite lives | 9.2 | ||
Goodwill | 25.2 | ||
Accounts payable and other current liabilities | (1.4) | ||
Total purchase price | 44.1 | ||
Purchase price, net of cash acquired | $ 43.2 | ||
Acquisition-related costs | $ 0.6 |
Employee Benefits, Assumptions
Employee Benefits, Assumptions used to determine benefit obligations (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Salaried VEBA | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.90% | 3.20% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Expected Long-term Rate of Return on Plan Assets | 5.50% | 5.50% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 5.50% | 7.75% | 7.75% |
Canadian pension plan | Canadian pension plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.90% | 3.40% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Expected Long-term Rate of Return on Plan Assets | 4.45% | 4.45% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 4.45% | 4.45% | 4.45% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 3.00% | 3.00% |
Business Combinations, Goodwi_4
Business Combinations, Goodwill and Intangible Assets, Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | ||||
Goodwill, gross | $ 37.2 | |||
Impairment of the carrying value of goodwill | (18.4) | |||
Goodwill | 18.8 | |||
Goodwill, acquired | 25.2 | |||
Goodwill impairment | $ 18.4 | 0 | $ 18.4 | $ 0 |
Goodwill, total increase | 25.2 | |||
Goodwill, gross | 62.4 | 37.2 | ||
Impairment of the carrying value of goodwill | (18.4) | (18.4) | ||
Goodwill | $ 44 | $ 18.8 | ||
Period over which goodwill is expected to be deductible for income tax purposes | 15 years |
Employee Benefits, Assumption_2
Employee Benefits, Assumptions used to determine net periodic benefit cost (income) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Salaried VEBA | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.20% | 3.60% | 3.90% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 5.50% | 7.75% | 7.75% |
Canadian pension plan | Canadian pension plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.40% | 3.80% | 4.10% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 4.45% | 4.45% | 4.45% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 3.00% | 3.00% | 3.00% |
Business Combinations, Goodwi_5
Business Combinations, Goodwill and Intangible Assets, Identifiable Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Identifiable intangible assets | ||||
Original cost | $ 43.9 | $ 34.7 | ||
Accumulated amortization | (11.5) | (9.7) | ||
Net book value | 32.4 | 25 | ||
Impairment of Intangible Assets | $ 2.6 | |||
Amortization of definite-lived intangible assets | $ 1.8 | $ 1.4 | $ 1.5 | |
Noncompete Agreements | ||||
Finite-Lived Intangible Assets | ||||
Weighted-Average Amortization Period (in years) | 5 years | |||
Identifiable intangible assets | ||||
Original cost | $ 5.4 | |||
Accumulated amortization | (0.3) | |||
Net book value | $ 5.1 | |||
Trade Names | ||||
Finite-Lived Intangible Assets | ||||
Weighted-Average Amortization Period (in years) | 10 years | |||
Identifiable intangible assets | ||||
Original cost | $ 2.4 | |||
Accumulated amortization | (0.1) | |||
Net book value | $ 2.3 | |||
Customer relationships | ||||
Finite-Lived Intangible Assets | ||||
Weighted-Average Amortization Period (in years) | 24 years | 25 years | ||
Identifiable intangible assets | ||||
Original cost | $ 36.1 | $ 34.7 | ||
Accumulated amortization | (11.1) | (9.7) | ||
Net book value | $ 25 | $ 25 |
Employee Benefits, Benefit obli
Employee Benefits, Benefit obligations and funded status of our Canadian pension and the VEBAs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Change in plan assets: | ||
Fair value of plan assets at beginning of year | $ 72.3 | |
Fair value of plan assets at end of year | 68.1 | $ 72.3 |
Accrued Annual Veba Contribution | 2.1 | 15.7 |
Net liabilities of Salaried VEBA | 32.4 | 31.9 |
VEBAs | ||
Change in benefit obligation: | ||
Obligation at beginning of year | 90 | 86.8 |
Defined Benefit Plan, Benefit Obligation, Foreign Currency Translation Gain (Loss) | 0 | 0 |
Defined Benefit Plan, Service Cost | 0 | 0 |
Defined Benefit Plan, Interest Cost | 2.8 | 3 |
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | 6.9 | 7.3 |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 6.8 | 0.5 |
Benefits paid by VEBA | (7.3) | (6.6) |
Obligation at end of year | 85.6 | 90 |
Change in plan assets: | ||
Fair value of plan assets at beginning of year | 58.1 | 58.2 |
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | 0.3 | 3.6 |
Defined Benefit Plan, Plan Assets, Contributions by Employer | 2.1 | 2.9 |
Benefits paid by VEBA | (7.3) | (6.6) |
Fair value of plan assets at end of year | 53.2 | 58.1 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (32.4) | (31.9) |
Salaried VEBA | ||
Change in plan assets: | ||
Actuarial (gain) loss due to projected lower benefit utilization | (2.2) | (1) |
Actuarial (Gain) Loss Due To Change In Discount Rate | (5.1) | 3 |
Actuarial (Gain) Loss Due To Changes In Census Data | 0.5 | (2.5) |
Accrued Annual Veba Contribution | 2.1 | 2.9 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (32.4) | (31.9) |
Union VEBA | ||
Change in plan assets: | ||
Accrued Annual Veba Contribution | 12.8 | |
Canadian pension plan | ||
Change in plan assets: | ||
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | 0.1 | 0.1 |
Canadian pension plan | Canadian pension plan | ||
Change in benefit obligation: | ||
Obligation at beginning of year | 8.5 | 7 |
Defined Benefit Plan, Benefit Obligation, Foreign Currency Translation Gain (Loss) | (0.7) | 0.5 |
Defined Benefit Plan, Service Cost at Balance Sheet Exchange Rate | 0.3 | 0.3 |
Defined Benefit Plan, Interest Cost at Balance Sheet Exchange Rate | 0.3 | 0.3 |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 0.6 | (0.6) |
Obligation at end of year | 7.3 | 8.5 |
Change in plan assets: | ||
Fair value of plan assets at beginning of year | 7.3 | 6.1 |
Defined Benefit Plan, Plan Assets, Foreign Currency Translation Gain (Loss) | (0.6) | 0.5 |
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | (0.2) | 0.5 |
Defined Benefit Plan, Plan Assets, Contributions by Employer | 0.5 | 0.4 |
Defined Benefit Plan, Plan Assets, Benefits Paid | 0.6 | 0.3 |
Fair value of plan assets at end of year | 6.5 | 7.3 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ (0.8) | $ (1.2) |
Business Combinations, Goodwi_6
Business Combinations, Goodwill and Intangible Assets, Intangible Asset Amortization (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,019 | $ 2.8 | |
2,020 | 2.8 | |
2,021 | 2.8 | |
2,022 | 2.8 | |
2,023 | 2.6 | |
Thereafter | 18.6 | |
Net book value | $ 32.4 | $ 25 |
Employee Benefits, Net assets (
Employee Benefits, Net assets (liabilities) of each VEBA (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | $ 68.1 | $ 72.3 |
Salaried VEBA | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ (32.4) | $ (31.9) |
Employee Benefits, Net benefits
Employee Benefits, Net benefits expected to be paid in each of the next five fiscal years (Details) $ in Millions | Dec. 31, 2018USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | $ 8.3 |
2,020 | 8.1 |
2,021 | 7.8 |
2,022 | 7.5 |
2,023 | 7.2 |
2024-2028 | 31.7 |
VEBAs | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 8 |
2,020 | 7.8 |
2,021 | 7.5 |
2,022 | 7.2 |
2,023 | 6.9 |
2024-2028 | 29.9 |
Canadian pension plan | Canadian pension plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 0.3 |
2,020 | 0.3 |
2,021 | 0.3 |
2,022 | 0.3 |
2,023 | 0.3 |
2024-2028 | $ 1.8 |
Employee Benefits, Amount of lo
Employee Benefits, Amount of loss recognized in accumulated other comprehensive loss (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Salaried VEBA | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | $ (12.5) | $ (17.5) |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, Prior Service Cost (Credit), before Tax | 44.2 | 42.7 |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax | 56.7 | 60.2 |
Canadian pension plan | Canadian pension plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | (1.5) | (1.9) |
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Transition Asset (Obligation), before Tax | 0 | 0.1 |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax | $ 1.5 | $ 1.8 |
Employee Benefits, Net Periodic
Employee Benefits, Net Periodic Benefit Costs and Charges Relating To Other Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Non-cash net periodic benefit income | $ 6.6 | $ 4.8 | $ 3.7 |
Defined contribution plans | 8.8 | 8.9 | 8.9 |
Deferred Compensation Arrangement with Individual, Compensation Expense | 1 | 1.8 | 0.9 |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Remeasurement due to Settlement | 0 | 0 | (0.1) |
Other expenses | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Non-cash net periodic benefit income | 21 | 20.1 | 18.1 |
VEBAs | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Non-cash net periodic benefit income | 6.1 | 4.5 | 3.4 |
VEBAs | All Other | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Non-cash net periodic benefit income | $ 6.1 | $ 4.5 | $ 3.4 |
Employee Benefits, Components o
Employee Benefits, Components of net periodic benefit cost (income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic postretirement benefit cost | $ 6.6 | $ 4.8 | $ 3.7 |
VEBAs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Service Cost | 0 | 0 | |
Defined Benefit Plan, Interest Cost | 2.8 | 3 | |
Net periodic postretirement benefit cost | 6.1 | 4.5 | 3.4 |
All Other | VEBAs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Service Cost | 0.1 | 0 | 0 |
Defined Benefit Plan, Interest Cost | 2.7 | 3 | 2.9 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 2.9 | 4.1 | 4.1 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 5.4 | 4.7 | 4.1 |
Defined Benefit Plan, Amortization of Gain (Loss) | (0.8) | (0.9) | (0.5) |
Net periodic postretirement benefit cost | 6.1 | 4.5 | 3.4 |
Canadian pension plan | Canadian pension plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic postretirement benefit cost | 0.4 | 0.3 | 0.3 |
Canadian pension plan | Fabricated Products | Canadian pension plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Service Cost | 0.3 | 0.3 | 0.3 |
Defined Benefit Plan, Interest Cost | 0.3 | 0.3 | 0.3 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 0.3 | 0.3 | 0.3 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 0 | 0 | 0 |
Defined Benefit Plan, Amortization of Gain (Loss) | (0.1) | 0 | 0 |
Net periodic postretirement benefit cost | $ 0.4 | $ 0.3 | $ 0.3 |
Employee Benefits, Total charge
Employee Benefits, Total charges (income) related to all benefit plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Components of Net Periodic Benefit Cost (Income) | |||
Defined Contribution Plan, Cost | $ 8.8 | $ 8.9 | $ 8.9 |
Deferred Compensation Arrangement with Individual, Compensation Expense | 1 | 1.8 | 0.9 |
Contributions of the Company | 4.7 | 4.6 | 4.7 |
Net periodic postretirement benefit cost | 6.6 | 4.8 | 3.7 |
VEBAs | |||
Components of Net Periodic Benefit Cost (Income) | |||
Net periodic postretirement benefit cost | 6.1 | 4.5 | 3.4 |
All Other | VEBAs | |||
Components of Net Periodic Benefit Cost (Income) | |||
Net periodic postretirement benefit cost | 6.1 | 4.5 | 3.4 |
Canadian pension plan | Canadian pension plan | |||
Components of Net Periodic Benefit Cost (Income) | |||
Net periodic postretirement benefit cost | 0.4 | 0.3 | 0.3 |
Canadian pension plan | Fabricated Products | Canadian pension plan | |||
Components of Net Periodic Benefit Cost (Income) | |||
Net periodic postretirement benefit cost | 0.4 | 0.3 | 0.3 |
Other expenses | |||
Components of Net Periodic Benefit Cost (Income) | |||
Net periodic postretirement benefit cost | $ 21 | $ 20.1 | $ 18.1 |
Employee Benefits, Defined Cont
Employee Benefits, Defined Contribution Plans Narrative (Details) | 12 Months Ended |
Dec. 31, 2018USD ($)productionfacilities | |
Defined Contribution Plan Disclosure [Line Items] | |
Equity Securities, FV-NI, Unrealized Gain (Loss) | $ | $ (1,000,000) |
Defined Contribution Plan | Hourly bargaining unit employees | |
Defined Contribution Plan Disclosure [Line Items] | |
Number of production facilities | 9 |
Defined Contribution Plan | Hourly bargaining unit employees | Fixed rate contributions | |
Defined Contribution Plan Disclosure [Line Items] | |
Number of production facilities | 3 |
Defined Contribution Plan | Hourly bargaining unit employees | Concurrent match | |
Defined Contribution Plan Disclosure [Line Items] | |
Number of production facilities | 1 |
Defined Contribution Plan | Hourly bargaining unit employees | Fixed rate and concurrent match | |
Defined Contribution Plan Disclosure [Line Items] | |
Number of production facilities | 3 |
Defined Contribution Plan | Hourly bargaining unit employees | No contributions required | |
Defined Contribution Plan Disclosure [Line Items] | |
Number of production facilities | 2 |
Defined Contribution Plan | Salaried and certain hourly employee | Concurrent match | |
Defined Contribution Plan Disclosure [Line Items] | |
Defined contribution plan employer concurrent match percentage | 4.00% |
Defined Contribution Plan | Hired on or after January 1, 2004 | Hourly bargaining unit employees | Fixed rate contributions | |
Defined Contribution Plan Disclosure [Line Items] | |
Defined contribution plan annual employer contribution percentage | 2.00% |
Defined Contribution Plan | Hired on or after January 1, 2004 | Salaried and certain hourly employee | Fixed rate contributions | |
Defined Contribution Plan Disclosure [Line Items] | |
Defined contribution plan annual employer contribution percentage | 2.00% |
Defined Contribution Plan | Minimum | Hourly bargaining unit employees | Fixed rate contributions | |
Defined Contribution Plan Disclosure [Line Items] | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ | $ 800 |
Defined Contribution Plan | Minimum | Hired prior to January 1, 2004 | Hourly bargaining unit employees | Fixed rate contributions | |
Defined Contribution Plan Disclosure [Line Items] | |
Defined contribution plan annual employer contribution percentage | 2.00% |
Defined Contribution Plan | Minimum | Hired prior to January 1, 2004 | Salaried and certain hourly employee | Fixed rate contributions | |
Defined Contribution Plan Disclosure [Line Items] | |
Defined contribution plan annual employer contribution percentage | 2.00% |
Defined Contribution Plan | Maximum | Hourly bargaining unit employees | Fixed rate contributions | |
Defined Contribution Plan Disclosure [Line Items] | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ | $ 2,400 |
Defined Contribution Plan | Maximum | Salaried and certain hourly employee | |
Defined Contribution Plan Disclosure [Line Items] | |
Estimated annual contribution to pension and other postretirement benefit plans | $ | $ 2,900,000 |
Defined Contribution Plan | Maximum | Hired prior to January 1, 2004 | Hourly bargaining unit employees | Fixed rate contributions | |
Defined Contribution Plan Disclosure [Line Items] | |
Defined contribution plan annual employer contribution percentage | 10.00% |
Defined Contribution Plan | Maximum | Hired prior to January 1, 2004 | Salaried and certain hourly employee | Fixed rate contributions | |
Defined Contribution Plan Disclosure [Line Items] | |
Defined contribution plan annual employer contribution percentage | 10.00% |
Employee Benefits, Defined Bene
Employee Benefits, Defined Benefit Plans Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accrued Annual Veba Contribution | $ 2.1 | $ 15.7 | |
Defined Benefit Plan, Plan Assets, Amount | 68.1 | 72.3 | |
Union VEBA | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accrued Annual Veba Contribution | 12.8 | ||
Salaried VEBA | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accrued Annual Veba Contribution | 2.1 | 2.9 | |
Defined Benefit Plan, Expected Amortization of Prior Service Cost (Credit), Next Fiscal Year | 5.7 | ||
Defined Benefit Plan, Expected Amortization, Next Fiscal Year | 6.1 | ||
Defined Benefit Plan, Expected Amortization of Gain (Loss), Next Fiscal Year | 0.4 | ||
VEBAs | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Benefit Obligation | 85.6 | 90 | $ 86.8 |
Defined Benefit Plan, Plan Assets, Amount | 53.2 | 58.1 | 58.2 |
Salaried and certain hourly employee | Canadian pension plan | Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Estimated annual contribution to pension and other postretirement benefit plans | 2.9 | ||
Canadian pension plan | Canadian pension plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Benefit Obligation | 7.3 | 8.5 | 7 |
Defined Benefit Plan, Plan Assets, Amount | 6.5 | 7.3 | $ 6.1 |
Defined Benefit Plan, Accumulated Benefit Obligation | 6.4 | $ 7.9 | |
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 0.6 | ||
London Ontario Facility | Canadian pension plan | Canadian pension plan | Fixed Income Securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 34.00% | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 30.00% | ||
London Ontario Facility | Canadian pension plan | Canadian pension plan | Equity Securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 62.00% | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 65.00% | ||
London Ontario Facility | Canadian pension plan | Canadian pension plan | Short-term Investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 5.00% |
Employee Benefits, Fair Value o
Employee Benefits, Fair Value of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | $ 68.1 | $ 72.3 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | 20.1 | 21.3 |
Deferred Compensation Plan Assets | 10.5 | 9.8 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | 9.6 | 11.5 |
Deferred Compensation Plan Assets | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | 10.5 | 9.8 |
Deferred Compensation Plan Assets | 10.5 | 9.8 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 |
Deferred Compensation Plan Assets | 0 | 0 |
Salaried VEBA | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | 9.6 | 11.5 |
Salaried VEBA | Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | 9.6 | 11.5 |
Salaried VEBA | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 |
Salaried VEBA | Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 |
Salaried VEBA | Diversified Investment Funds in Registered Investment Companies [Member] | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | 8.7 | 10.2 |
Salaried VEBA | Diversified Investment Funds in Registered Investment Companies [Member] | Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | 8.7 | 10.2 |
Salaried VEBA | Diversified Investment Funds in Registered Investment Companies [Member] | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 |
Salaried VEBA | Diversified Investment Funds in Registered Investment Companies [Member] | Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 |
Salaried VEBA | Equity Funds [Member] | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | 20.3 | 24.3 |
Salaried VEBA | Fixed Income Funds [Member] | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | 21.2 | 19.4 |
Salaried VEBA | Cash and Cash Equivalents [Member] | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | 0.9 | 1.3 |
Salaried VEBA | Cash and Cash Equivalents [Member] | Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | 0.9 | 1.3 |
Salaried VEBA | Cash and Cash Equivalents [Member] | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 |
Salaried VEBA | Cash and Cash Equivalents [Member] | Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 |
Canadian pension plan | Diversified Investment Funds in Registered Investment Companies [Member] | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | $ 6.5 | $ 7.3 |
Multiemployer Pension Plans (De
Multiemployer Pension Plans (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)agreements | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Multiemployer Pension Plan Disclosure | |||
Percentage of employees participating in multiemployer pension plans to total employees | 51.00% | ||
Contributions of the Company | $ 4,700,000 | $ 4,600,000 | $ 4,700,000 |
Company's contributions to the multiemployer plans is less than | 5.00% | ||
USW Plan | |||
Multiemployer Pension Plan Disclosure | |||
Employer Identification Number | 236,648,508 | ||
Pension Protection Act Zone Status | Green | Green | |
FIP/RP Status Pending/Implemented in Current Year | No | ||
Contributions of the Company | $ 3,600,000 | $ 3,500,000 | 3,700,000 |
Surcharge Imposed in 2018 | No | ||
Expiration Date of Collective-Bargaining Agreement, First | Mar. 31, 2020 | ||
Expiration Date of Collective-Bargaining Agreement, Last | Feb. 28, 2021 | ||
Number of collective-bargaining agreements | agreements | 3 | ||
USW Plan | Newark, Ohio and Spokane (Trentwood), Washington Facilities | |||
Multiemployer Pension Plan Disclosure | |||
Percentage of employees covered by bargaining agreement | 86.00% | ||
USW Plan | Newark, Ohio and Spokane (Trentwood), Washington Facilities | Starting July 2015 | |||
Multiemployer Pension Plan Disclosure | |||
Monthly contributions per hour worked by each bargaining unit employee | $ 1.50 | ||
USW Plan | Newark, Ohio and Spokane (Trentwood), Washington Facilities | Ending in July Two Thousand Nineteen | |||
Multiemployer Pension Plan Disclosure | |||
Monthly contributions per hour worked by each bargaining unit employee | $ 1.75 | ||
USW Plan | Richmond (Bellwood), Virginia Facility | |||
Multiemployer Pension Plan Disclosure | |||
Percentage of employees covered by bargaining agreement | 11.00% | ||
USW Plan | Florence, Alabama Facility | |||
Multiemployer Pension Plan Disclosure | |||
Percentage of employees covered by bargaining agreement | 3.00% | ||
Other Funds | |||
Multiemployer Pension Plan Disclosure | |||
Contributions of the Company | $ 1,100,000 | $ 1,100,000 | $ 1,000,000 |
Multiemployer Plans, Pension | Minimum | |||
Multiemployer Pension Plan Disclosure | |||
Estimated annual contribution to pension and other postretirement benefit plans | 3,000,000 | ||
Multiemployer Plans, Pension | Maximum | |||
Multiemployer Pension Plan Disclosure | |||
Estimated annual contribution to pension and other postretirement benefit plans | $ 5,000,000 |
Employee Incentive Plans, Short
Employee Incentive Plans, Short Term Incentive Plans (Details) $ in Millions | Dec. 31, 2018USD ($) |
Short Term Incentive Plans | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |
Accrued Bonuses | $ 13.1 |
Employee Incentive Plans, Restr
Employee Incentive Plans, Restricted Shares Summary of Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
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, Nonvested, Weighted Average Grant Date Fair Value | $ 80.99 | $ 74.04 |
Restricted Stock | ||
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, Forfeited in Period | (7,517) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 77.17 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 219,513 | 216,953 |
Grant date fair value | $ 96.40 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 74,138 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (64,061) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 73.25 |
Employee Incentive Plans, Input
Employee Incentive Plans, Inputs and Assumptions Used in Monte Carlo Simulations (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term of awards remaining | 2 years 9 months 18 days | ||
TSR-Based Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value | $ 127.41 | $ 97.88 | $ 93.02 |
Grant date stock price | $ 101.66 | $ 79.69 | $ 80.46 |
Expected volatility of Kaiser Aluminum | 24.86% | 22.74% | 17.81% |
Expected volatility of peer companies | 44.74% | 44.19% | 41.22% |
Risk-free interest rate | 2.37% | 1.54% | 1.01% |
Dividend yield | 2.16% | 2.50% | 2.24% |
Employee Incentive Plans, Perfo
Employee Incentive Plans, Performance Shares Summary of Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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, Nonvested, Weighted Average Grant Date Fair Value | $ 80.99 | $ 74.04 | |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 426,360 | 459,669 | |
Grant date fair value | $ 109.38 | $ 86.97 | $ 88 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 93.72 | 90.12 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 124,833 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (125,674) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 95.68 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (10,261) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 94.85 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Period Increase (Decrease) | (22,207) | ||
Share Based Compensation Arrangement By Share Based Payments Award Equity Instruments Other Than Options Cancelled In Period Weighted Average Grant Date Fair Value | $ 95.68 | ||
Restricted stock units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value | 77.35 | 76.82 | |
TSR-Based Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value | $ 127.41 | $ 97.88 | $ 93.02 |
Employee Incentive Plans, Compe
Employee Incentive Plans, Compensation expense under LTI programs (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $ 10.1 | $ 13.1 | $ 11.7 |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value | $ 96.40 | ||
Restricted Stock And Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $ 5.8 | $ 5.4 | $ 4.7 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 8.7 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 6 months | ||
TSR-Based Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value | $ 127.41 | $ 97.88 | $ 93.02 |
Allocated Share-based Compensation Expense | $ 4.3 | $ 7.7 | $ 7 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 6 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 7 months 6 days | ||
Restricted stock units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value | $ 77.35 | $ 76.82 | |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value | $ 109.38 | $ 86.97 | $ 88 |
Employee Incentive Plans, Weigh
Employee Incentive Plans, Weighted Average Grant Date Fair Value (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value | $ 96.40 | ||
Restricted stock units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value | $ 77.35 | $ 76.82 | |
TSR-Based Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value | 127.41 | 97.88 | 93.02 |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value | $ 109.38 | $ 86.97 | $ 88 |
Employee Incentive Plans, Narra
Employee Incentive Plans, Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of common shares available for additional awards under Equity Incentive Plan | 577,014 | ||
Recognized tax benefit relating to non-cash compensation expense | $ 2.5 | $ 4.9 | $ 4.4 |
Fully-vested options outstanding | 0 | 1,543 | |
Exercise price of options to purchase common stock | $ 80.01 | ||
Stock options granted | 0 | ||
Shares withheld for taxes | 68,195 | 56,495 | 36,055 |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Service period | 1 year | ||
Restricted stock units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Service period | 3 years | ||
Number of common share received by the employee on vesting of restricted stock unit | 1 | ||
TSR-Based Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 3 years | ||
TSR-Based Performance Shares | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of performance sharesthat may be earned, as a percentage (percent) | 0.00% | ||
TSR-Based Performance Shares | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of performance sharesthat may be earned, as a percentage (percent) | 200.00% |
Derivatives, Hedging Programs_3
Derivatives, Hedging Programs and Other Financial Instruments, Notional Quantity Table (Details) mmlbs in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018mmlbsMMBTU |
Not Designated as Hedging Instrument | Aluminum | Purchase | ||||
Derivative [Line Items] | ||||
Derivative Notional Amount (Non-Monetary) | 139.1 | |||
Not Designated as Hedging Instrument | Aluminum | Sale | ||||
Derivative [Line Items] | ||||
Derivative Notional Amount (Non-Monetary) | 0.9 | |||
Not Designated as Hedging Instrument | Midwest premium swap contracts | Purchase | ||||
Derivative [Line Items] | ||||
Derivative Notional Amount (Non-Monetary) | 100.1 | |||
Not Designated as Hedging Instrument | Natural Gas Member | Purchase | ||||
Derivative [Line Items] | ||||
Derivative Notional Amount (Non-Monetary) | MMBTU | 4,040,000 | |||
Not Designated as Hedging Instrument | Electricity | Purchase | ||||
Derivative [Line Items] | ||||
Derivative Notional Amount (Non-Monetary) | MMBTU | 219,600 | |||
Designated as Hedging Instrument | Alloy Metal Hedge | Purchase | ||||
Derivative [Line Items] | ||||
Derivative Notional Amount (Non-Monetary) | 9 | |||
Scenario, Forecast | Natural Gas Member | ||||
Derivative [Line Items] | ||||
Derivative, Nonmonetary Notional Amount, Percent of Required Need, Coverage | 66.00% | |||
Scenario, Forecast | Electricity | ||||
Derivative [Line Items] | ||||
Derivative, Nonmonetary Notional Amount, Percent of Required Need, Coverage | 9.00% | 55.00% | 54.00% |
Derivatives, Hedging Programs_4
Derivatives, Hedging Programs and Other Financial Instruments, Realized and Unrealized Gains and Losses Table (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Derivative Instruments Gain Loss [Line Items] | ||||||||||||||
Cost of Goods and Services Sold | $ 317.3 | $ 323.3 | $ 343.4 | $ 316.7 | $ 277.2 | $ 256.4 | $ 289.6 | $ 262.7 | $ 1,300.7 | [1] | $ 1,085.9 | [1] | $ 1,000.8 | [1] |
Cost of Sales | ||||||||||||||
Derivative Instruments Gain Loss [Line Items] | ||||||||||||||
Cost of Goods and Services Sold | 1,105.3 | 1,019.5 | ||||||||||||
Cost of Sales | Designated as Hedging Instrument | ||||||||||||||
Derivative Instruments Gain Loss [Line Items] | ||||||||||||||
Realized (losses) gains | 2.8 | (0.9) | 0 | |||||||||||
Cost of Sales | Not Designated as Hedging Instrument | ||||||||||||||
Derivative Instruments Gain Loss [Line Items] | ||||||||||||||
Realized (losses) gains | 0 | (19.8) | 7.1 | |||||||||||
Cost of Sales | Aluminum | Designated as Hedging Instrument | ||||||||||||||
Derivative Instruments Gain Loss [Line Items] | ||||||||||||||
Realized (losses) gains | 2.1 | 0 | 0 | |||||||||||
Cost of Sales | Aluminum | Not Designated as Hedging Instrument | ||||||||||||||
Derivative Instruments Gain Loss [Line Items] | ||||||||||||||
Realized (losses) gains | 0 | (20.4) | 2 | |||||||||||
Cost of Sales | Natural Gas | Designated as Hedging Instrument | ||||||||||||||
Derivative Instruments Gain Loss [Line Items] | ||||||||||||||
Realized (losses) gains | (0.3) | 0 | 0 | |||||||||||
Cost of Sales | Natural Gas | Not Designated as Hedging Instrument | ||||||||||||||
Derivative Instruments Gain Loss [Line Items] | ||||||||||||||
Realized (losses) gains | 0 | 0.7 | 5 | |||||||||||
Cost of Sales | Alloy Metal Hedge | Designated as Hedging Instrument | ||||||||||||||
Derivative Instruments Gain Loss [Line Items] | ||||||||||||||
Realized (losses) gains | 1 | (0.9) | 0 | |||||||||||
Cost of Sales | Foreign Exchange Contract | Not Designated as Hedging Instrument | ||||||||||||||
Derivative Instruments Gain Loss [Line Items] | ||||||||||||||
Realized (losses) gains | 0 | (0.1) | 0.1 | |||||||||||
Cost of Sales | Electricity | Not Designated as Hedging Instrument | ||||||||||||||
Derivative Instruments Gain Loss [Line Items] | ||||||||||||||
Realized (losses) gains | $ 0 | 0 | 0 | |||||||||||
Gain (Loss) on Derivative Instruments | ||||||||||||||
Derivative Instruments Gain Loss [Line Items] | ||||||||||||||
Realized (losses) gains | (19.4) | (18.7) | ||||||||||||
Gain (Loss) on Derivative Instruments | Designated as Hedging Instrument | ||||||||||||||
Derivative Instruments Gain Loss [Line Items] | ||||||||||||||
Realized (losses) gains | 0 | 0 | ||||||||||||
Gain (Loss) on Derivative Instruments | Not Designated as Hedging Instrument | ||||||||||||||
Derivative Instruments Gain Loss [Line Items] | ||||||||||||||
Realized (losses) gains | (19.4) | (18.7) | ||||||||||||
Gain (Loss) on Derivative Instruments | Aluminum | Designated as Hedging Instrument | ||||||||||||||
Derivative Instruments Gain Loss [Line Items] | ||||||||||||||
Realized (losses) gains | 0 | 0 | ||||||||||||
Gain (Loss) on Derivative Instruments | Aluminum | Not Designated as Hedging Instrument | ||||||||||||||
Derivative Instruments Gain Loss [Line Items] | ||||||||||||||
Realized (losses) gains | (20.9) | (10.8) | ||||||||||||
Gain (Loss) on Derivative Instruments | Natural Gas | Not Designated as Hedging Instrument | ||||||||||||||
Derivative Instruments Gain Loss [Line Items] | ||||||||||||||
Realized (losses) gains | 1.4 | (7.9) | ||||||||||||
Gain (Loss) on Derivative Instruments | Alloy Metal Hedge | Designated as Hedging Instrument | ||||||||||||||
Derivative Instruments Gain Loss [Line Items] | ||||||||||||||
Realized (losses) gains | 0 | 0 | ||||||||||||
Gain (Loss) on Derivative Instruments | Foreign Exchange Contract | Not Designated as Hedging Instrument | ||||||||||||||
Derivative Instruments Gain Loss [Line Items] | ||||||||||||||
Realized (losses) gains | 0 | 0 | ||||||||||||
Gain (Loss) on Derivative Instruments | Electricity | Not Designated as Hedging Instrument | ||||||||||||||
Derivative Instruments Gain Loss [Line Items] | ||||||||||||||
Realized (losses) gains | $ 0.1 | $ 0 | ||||||||||||
[1] | See Note 7 for discussion of our adoption of ASU 2017-12 (as defined in Note 1 |
Derivatives, Hedging Programs_5
Derivatives, Hedging Programs and Other Financial Instruments, Material Derivative Positions (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Derivative Asset | $ 4.3 | $ 25.3 |
Derivative Liability | (15.9) | (0.8) |
Fair Value, Inputs, Level 2 [Member] | ||
Derivative [Line Items] | ||
Derivative Asset | 4.3 | 25.3 |
Derivative Liability | (15.9) | (0.8) |
Derivative Assets (Liabilities), at Fair Value, Net | (11.6) | 24.5 |
Fair Value, Inputs, Level 2 [Member] | Not Designated as Hedging Instrument | Aluminum | Long | ||
Derivative [Line Items] | ||
Derivative Asset | 0 | 22.5 |
Derivative Liability | 0 | 0 |
Derivative Assets (Liabilities), at Fair Value, Net | 0 | 22.5 |
Fair Value, Inputs, Level 2 [Member] | Not Designated as Hedging Instrument | Aluminum | Short | ||
Derivative [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | (0.1) |
Derivative Assets (Liabilities), at Fair Value, Net | 0 | (0.1) |
Fair Value, Inputs, Level 2 [Member] | Not Designated as Hedging Instrument | Midwest premium swap contracts | Long | ||
Derivative [Line Items] | ||
Derivative Asset | 0 | 1.7 |
Derivative Liability | 0 | (0.1) |
Derivative Assets (Liabilities), at Fair Value, Net | 0 | 1.6 |
Fair Value, Inputs, Level 2 [Member] | Not Designated as Hedging Instrument | Natural Gas Member | Long | ||
Derivative [Line Items] | ||
Derivative Asset | 0 | 0.2 |
Derivative Liability | 0 | (0.5) |
Derivative Assets (Liabilities), at Fair Value, Net | 0 | (0.3) |
Fair Value, Inputs, Level 2 [Member] | Not Designated as Hedging Instrument | Electricity [Member] | Long | ||
Derivative [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | (0.1) |
Derivative Assets (Liabilities), at Fair Value, Net | 0 | (0.1) |
Fair Value, Inputs, Level 2 [Member] | Designated as Hedging Instrument | Aluminum | Long | ||
Derivative [Line Items] | ||
Derivative Asset | 0.1 | 0 |
Derivative Liability | (13.2) | 0 |
Derivative Assets (Liabilities), at Fair Value, Net | (13.1) | 0 |
Fair Value, Inputs, Level 2 [Member] | Designated as Hedging Instrument | Aluminum | Short | ||
Derivative [Line Items] | ||
Derivative Asset | 0.1 | 0 |
Derivative Liability | 0 | 0 |
Derivative Assets (Liabilities), at Fair Value, Net | 0.1 | 0 |
Fair Value, Inputs, Level 2 [Member] | Designated as Hedging Instrument | Midwest premium swap contracts | Long | ||
Derivative [Line Items] | ||
Derivative Asset | 3.2 | 0 |
Derivative Liability | (0.5) | 0 |
Derivative Assets (Liabilities), at Fair Value, Net | 2.7 | 0 |
Fair Value, Inputs, Level 2 [Member] | Designated as Hedging Instrument | Alloy Metal Hedge | Long | ||
Derivative [Line Items] | ||
Derivative Asset | 0 | 0.9 |
Derivative Liability | (1.7) | 0 |
Derivative Assets (Liabilities), at Fair Value, Net | (1.7) | 0.9 |
Fair Value, Inputs, Level 2 [Member] | Designated as Hedging Instrument | Natural Gas Member | Long | ||
Derivative [Line Items] | ||
Derivative Asset | 0.2 | 0 |
Derivative Liability | (0.5) | 0 |
Derivative Assets (Liabilities), at Fair Value, Net | (0.3) | 0 |
Fair Value, Inputs, Level 2 [Member] | Designated as Hedging Instrument | Electricity [Member] | Long | ||
Derivative [Line Items] | ||
Derivative Asset | 0.7 | 0 |
Derivative Liability | 0 | 0 |
Derivative Assets (Liabilities), at Fair Value, Net | $ 0.7 | $ 0 |
Derivatives, Hedging Programs_6
Derivatives, Hedging Programs and Other Financial Instruments, Balance Sheet (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Derivative Asset | $ 4.3 | $ 25.3 |
Derivative Liability | (15.9) | (0.8) |
Other Current Assets | ||
Derivative [Line Items] | ||
Derivative Asset | 3.4 | 18.9 |
Other Assets | ||
Derivative [Line Items] | ||
Derivative Asset | 0.9 | 6.4 |
Other Current Liabilities | ||
Derivative [Line Items] | ||
Derivative Liability | (13.2) | (0.3) |
Other Noncurrent Liabilities | ||
Derivative [Line Items] | ||
Derivative Liability | $ (2.7) | $ (0.5) |
Derivatives, Hedging Programs_7
Derivatives, Hedging Programs and Other Financial Instruments, Fair Value Hierarchy Table (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 125.6 | $ 51.1 |
Derivative Asset | (4.3) | (25.3) |
Derivative Liability | (15.9) | (0.8) |
Other Assets, Fair Value Disclosure | 162.3 | 234.8 |
Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 36.7 | 183.7 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 22.9 | 23.5 |
Other Assets, Fair Value Disclosure | 22.9 | 23.5 |
Level 1 | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 102.7 | 27.6 |
Derivative Asset | (4.3) | (25.3) |
Derivative Liability | (15.9) | (0.8) |
Other Assets, Fair Value Disclosure | 139.4 | 211.3 |
Fair Value, Inputs, Level 2 [Member] | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 36.7 | 183.7 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Other Assets, Fair Value Disclosure | 0 | 0 |
Level 3 | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Not Designated as Hedging Instrument | Fair Value, Inputs, Level 2 [Member] | Aluminum Member | Long | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | (22.5) |
Derivative Liability | 0 | 0 |
Not Designated as Hedging Instrument | Fair Value, Inputs, Level 2 [Member] | Aluminum Member | Short | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | (0.1) |
Not Designated as Hedging Instrument | Fair Value, Inputs, Level 2 [Member] | Midwest premium swap contracts | Long | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | (1.7) |
Derivative Liability | 0 | (0.1) |
Not Designated as Hedging Instrument | Fair Value, Inputs, Level 2 [Member] | Natural Gas Member | Long | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | (0.2) |
Derivative Liability | 0 | (0.5) |
Not Designated as Hedging Instrument | Fair Value, Inputs, Level 2 [Member] | Electricity [Member] | Long | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | (0.1) |
Designated as Hedging Instrument | Fair Value, Inputs, Level 2 [Member] | Aluminum Member | Long | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | (0.1) | 0 |
Derivative Liability | (13.2) | 0 |
Designated as Hedging Instrument | Fair Value, Inputs, Level 2 [Member] | Aluminum Member | Short | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | (0.1) | 0 |
Derivative Liability | 0 | 0 |
Designated as Hedging Instrument | Fair Value, Inputs, Level 2 [Member] | Midwest premium swap contracts | Long | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | (3.2) | 0 |
Derivative Liability | (0.5) | 0 |
Designated as Hedging Instrument | Fair Value, Inputs, Level 2 [Member] | Natural Gas Member | Long | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | (0.2) | 0 |
Derivative Liability | (0.5) | 0 |
Designated as Hedging Instrument | Fair Value, Inputs, Level 2 [Member] | Electricity [Member] | Long | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | (0.7) | 0 |
Derivative Liability | 0 | 0 |
Designated as Hedging Instrument | Fair Value, Inputs, Level 2 [Member] | Alloy Metal Hedge | Long | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | (0.9) |
Derivative Liability | $ (1.7) | $ 0 |
Derivatives, Hedging Programs_8
Derivatives, Hedging Programs and Other Financial Instruments, Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Derivative [Line Items] | |||||||||||||||||
Derivative, Net Liability Position, Aggregate Fair Value | $ 12,600,000 | $ 100,000 | $ 12,600,000 | $ 100,000 | |||||||||||||
Cost of Goods and Services Sold | 317,300,000 | $ 323,300,000 | $ 343,400,000 | $ 316,700,000 | $ 277,200,000 | $ 256,400,000 | $ 289,600,000 | $ 262,700,000 | 1,300,700,000 | [1] | 1,085,900,000 | [1] | $ 1,000,800,000 | [1] | |||
Margin deposits with counterparties | 0 | 0 | |||||||||||||||
Customer Deposits, Current | $ 200,000 | $ 200,000 | |||||||||||||||
Debt Instrument, Term | 12 months | ||||||||||||||||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ (15,600,000) | ||||||||||||||||
Scenario, Forecast | Natural Gas Member | |||||||||||||||||
Derivative [Line Items] | |||||||||||||||||
Derivative, Nonmonetary Notional Amount, Percent of Required Need, Coverage | 66.00% | ||||||||||||||||
Scenario, Forecast | Electricity [Member] | |||||||||||||||||
Derivative [Line Items] | |||||||||||||||||
Derivative, Nonmonetary Notional Amount, Percent of Required Need, Coverage | 9.00% | 55.00% | 54.00% | ||||||||||||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | |||||||||||||||||
Derivative [Line Items] | |||||||||||||||||
OCI, before Reclassifications, before Tax, Attributable to Parent | $ (21,200,000) | $ 1,800,000 | $ (100,000) | ||||||||||||||
[1] | See Note 7 for discussion of our adoption of ASU 2017-12 (as defined in Note 1 |
Debt and Credit Facility, Narra
Debt and Credit Facility, Narrative (Details) | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2016 | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 01, 2016USD ($) | May 15, 2016USD ($) | May 23, 2012USD ($) | |
Debt Instrument | |||||||
Loss on Repurchase of Debt Instrument | $ 0 | $ 0 | $ (11,100,000) | ||||
Long-term debt | 370,400,000 | 369,600,000 | |||||
Repayments of Unsecured Debt | 0 | 0 | 206,000,000 | ||||
Senior Notes Due 2024 | Senior Notes | |||||||
Debt Instrument | |||||||
Principal amount of notes | $ 375,000,000 | ||||||
Interest rate | 5.875% | ||||||
Percentage of principal amount issued | 100.00% | ||||||
Unamortized Debt Issuance Expense | 4,600,000 | 5,400,000 | |||||
Interest Expense including amortization of deferred financing cost | $ 22,900,000 | 14,500,000 | |||||
Effective interest rate | 6.10% | ||||||
Debt Instrument, Fair Value Disclosure | $ 369,900,000 | $ 399,900,000 | |||||
Senior Notes Due 2024 | Senior Notes | Change in control | |||||||
Debt Instrument | |||||||
Debt Instrument, Redemption Price, Percentage | 101.00% | ||||||
Senior Notes Due 2020 | Senior Notes | |||||||
Debt Instrument | |||||||
Principal amount of notes | $ 225,000,000 | ||||||
Interest rate | 8.25% | ||||||
Interest Expense including amortization of deferred financing cost | $ 7,100,000 | ||||||
Long-term debt | $ 197,800,000 | ||||||
Revolving Credit Facility | Line of Credit | |||||||
Debt Instrument | |||||||
Maximum borrowing capacity | $ 300,000,000 | ||||||
Percentage of eligible accounts receivable for borrowing base | 85.00% | ||||||
Percentage of eligible inventory for borrowing base | 75.00% | ||||||
Percentage of net orderly liquidation value of eligible inventory | 85.00% | ||||||
Maximum amount of eligible machinery and equipment for borrowing base | $ 60,000,000 | ||||||
Line of Credit Facility, Possible Future Maximum Borrowing Capacity | 400,000,000 | ||||||
Available borrowing capacity | 300,000,000 | ||||||
Outstanding line of credit | 0 | ||||||
Remaining available borrowing capacity | $ 292,000,000 | ||||||
Interest on Revolving Credit Facility | 5.75% | ||||||
Minimum Amount of Available Borrowing to Maintain | $ 52,500,000 | ||||||
Revolving Credit Facility | Line of Credit | Borrowing Availability Under $45.0 Million | |||||||
Debt Instrument | |||||||
Line of Credit, Ability to Make Restricted Actions, Available Borrowing Necessary After Action with Fixed Charge Coverage Ratio | $ 45,000,000 | ||||||
Fixed Charge Coverage Ratio | 1.15 | ||||||
Revolving Credit Facility | Line of Credit | Borrowing Availability Under $30.0 Million | |||||||
Debt Instrument | |||||||
Fixed Charge Coverage Ratio | 1 | ||||||
Line of Credit, Minimum Borrowing Availability Threshold to Maintain Fixed Charge Coverage Ratio | $ 30,000,000 | ||||||
Revolving Credit Facility | Letter of Credit | |||||||
Debt Instrument | |||||||
Maximum borrowing capacity | 20,000,000 | ||||||
Outstanding line of credit | $ (8,000,000) | ||||||
On or after June 1, 2016 | Senior Notes Due 2020 | Senior Notes | |||||||
Debt Instrument | |||||||
Debt Instrument, Redemption Price, Percentage | 104.125% | ||||||
On or after May 15, 2019 | Senior Notes Due 2024 | Senior Notes | |||||||
Debt Instrument | |||||||
Debt Instrument, Redemption Price, Percentage | 104.406% | ||||||
On or after May 15, 2020 | Senior Notes Due 2024 | Senior Notes | |||||||
Debt Instrument | |||||||
Debt Instrument, Redemption Price, Percentage | 102.938% | ||||||
On or after May 15, 2021 | Senior Notes Due 2024 | Senior Notes | |||||||
Debt Instrument | |||||||
Debt Instrument, Redemption Price, Percentage | 101.469% | ||||||
On or after May 15, 2022 | Senior Notes Due 2024 | Senior Notes | |||||||
Debt Instrument | |||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||
Any time prior to May 15, 2019 | Senior Notes Due 2024 | Senior Notes | |||||||
Debt Instrument | |||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||
Upon receipt of the proceeds of certain asset sales | Senior Notes Due 2024 | Senior Notes | |||||||
Debt Instrument | |||||||
Debt Instrument, Redemption Price, Percentage | 100.00% |
Commitments and Contingencies,
Commitments and Contingencies, Minimum Commitments (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Minimum rental commitments | |
Capital Leases - 2019 | $ 1.7 |
Capital Leases - 2020 | 1.4 |
Capital Leases - 2021 | 1.2 |
Capital Leases - 2022 | 1.1 |
Capital Leases - 2023 | 1 |
Capital Leases - 2024 and thereafter | 1.8 |
Operating leases -2019 | 6.1 |
Operating leases - 2020 | 3.7 |
Operating leases - 2021 | 2.8 |
Operating leases - 2022 | 2.4 |
Operating leases - 2023 | 2.2 |
Operating leases - 2024 and Thereafter | 20.8 |
Capital Leases, Future Minimum Payments Due | 8.2 |
Operating Leases, Future Minimum Payments Due | 38 |
Less: interest | (1.2) |
Capital lease obligations | $ 7 |
Commitments and Contingencies_2
Commitments and Contingencies, Rollforward of CARO Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Weighted Average Discount Rate, Percent | 8.70% | 8.70% | |
Asset Retirement Obligation, Roll Forward | |||
Beginning balance | $ 5.9 | $ 5.5 | $ 4.9 |
Liabilities settled during the period | 0 | 0 | (0.1) |
Accretion expense | 0.4 | 0.4 | 0.5 |
Adjustment to accretion expense due to revisions to estimated cash flow and timing of expenditure1 | 0 | 0 | 0.2 |
Ending balance | $ 6.3 | $ 5.9 | $ 5.5 |
Commitments and Contingencies_3
Commitments and Contingencies, Changes in Environmental Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 11.6 | ||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning balance | 16.6 | $ 17.2 | $ 18.6 |
Additional accruals | 1.7 | 0.3 | 0.1 |
Less: expenditures | 1.4 | 0.9 | 1.5 |
Ending balance | $ 16.9 | $ 16.6 | $ 17.2 |
Commitments and Contingencies_4
Commitments and Contingencies, Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Environmental Contingencies | ||||
PeriodForFinalFeasibilityStudy | 12 months | |||
Accrual for Environmental Loss Contingencies, Gross, Fiscal Year Maturity | ||||
Rental expense | $ 8.2 | $ 7.9 | $ 8.5 | |
Environmental accrual | $ 16.9 | 16.6 | $ 17.2 | $ 18.6 |
Expected period related to remediation expenditures for environmental contingencies | 30 years | |||
Estimated environmental contingency loss exposure in excess of current accrual | $ 11.6 | |||
Time period within which Company's recorded estimate of its obligation may change | 12 months | |||
Gain Contingency, Unrecorded Amount | $ 2.4 | |||
Capital lease obligations | 7 | |||
Capital lease asset | 8.3 | 2.2 | ||
Capital lease accumulated depreciation | (1.3) | $ (0.9) | ||
Other Accrued Liabilities | ||||
Accrual for Environmental Loss Contingencies, Gross, Fiscal Year Maturity | ||||
Capital lease obligations | 1.4 | |||
Longterm Liabilities | ||||
Accrual for Environmental Loss Contingencies, Gross, Fiscal Year Maturity | ||||
Capital lease obligations | $ 5.6 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | Jan. 01, 2016 | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Cumulative-effect adjustment | $ 0.3 | $ 10.3 | [1] | $ 0.7 | |||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ (15.6) | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | 746.3 | ||||||
Other comprehensive income (loss), net of tax | (11.7) | $ (5) | |||||
Ending balance | 740.4 | 746.3 | |||||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | (38.5) | (37.1) | (31.3) | ||||
Reclassification from AOCI, Current Period, Tax | 1.5 | 2.1 | 1.7 | ||||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | 4.8 | 3.5 | 2.9 | ||||
Defined Benefit Plan, Benefit Obligation, Foreign Currency Translation Gain (Loss) | 0 | (0.1) | 0.1 | ||||
Other comprehensive income (loss), net of tax | 2.9 | (1.4) | (5.8) | ||||
Ending balance | (35.6) | (38.5) | (37.1) | ||||
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
OCI, before Reclassifications, before Tax, Attributable to Parent | 4.4 | (0.3) | (5.7) | ||||
Other Comprehensive Income (Loss) before Reclassifications, Tax | 1.1 | (0.1) | (2.1) | ||||
OCI, before Reclassifications, Net of Tax, Attributable to Parent | 3.3 | (0.2) | (3.6) | ||||
Reclassification from AOCI, Current Period, before Tax, Attributable to Parent | 0.9 | 0.9 | 0.5 | ||||
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
OCI, before Reclassifications, before Tax, Attributable to Parent | (6.9) | (7.3) | (8.3) | ||||
Other Comprehensive Income (Loss) before Reclassifications, Tax | (1.7) | (2.7) | (3.1) | ||||
OCI, before Reclassifications, Net of Tax, Attributable to Parent | (5.2) | (4.6) | (5.2) | ||||
Reclassification from AOCI, Current Period, before Tax, Attributable to Parent | 5.4 | 4.7 | 4.1 | ||||
Accumulated Net Investment Gain (Loss) Attributable to Parent | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | 1.3 | 0.8 | (0.1) | ||||
OCI, before Reclassifications, before Tax, Attributable to Parent | 4.7 | 4 | 1.9 | ||||
Other Comprehensive Income (Loss) before Reclassifications, Tax | 1.1 | 1.5 | 0.7 | ||||
OCI, before Reclassifications, Net of Tax, Attributable to Parent | 3.6 | 2.5 | 1.2 | ||||
Reclassification from AOCI, Current Period, before Tax, Attributable to Parent | (5.4) | (3.2) | (0.5) | ||||
Reclassification from AOCI, Current Period, Tax | (1.2) | (1.2) | (0.2) | ||||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | (4.2) | (2) | (0.3) | ||||
Other comprehensive income (loss), net of tax | (0.6) | 0.5 | 0.9 | ||||
Ending balance | 0.3 | 1.3 | 0.8 | ||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | 0.5 | (0.2) | (0.2) | ||||
OCI, before Reclassifications, before Tax, Attributable to Parent | (21.2) | 1.8 | (0.1) | ||||
Other Comprehensive Income (Loss) before Reclassifications, Tax | (5.3) | 0.7 | 0 | ||||
OCI, before Reclassifications, Net of Tax, Attributable to Parent | (15.9) | 1.1 | (0.1) | ||||
Reclassification from AOCI, Current Period, before Tax, Attributable to Parent | 2.7 | (0.6) | 0.1 | ||||
Reclassification from AOCI, Current Period, Tax | 0.7 | (0.2) | 0 | ||||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | 2 | (0.4) | 0.1 | ||||
Other comprehensive income (loss), net of tax | (13.9) | 0.7 | 0 | ||||
Ending balance | (13.4) | 0.5 | (0.2) | ||||
Accumulated Other Comprehensive Loss (Other) [Member] | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | 0 | (0.2) | (0.1) | ||||
Other comprehensive income (loss), net of tax | (0.1) | 0.2 | (0.1) | ||||
Ending balance | (0.1) | 0 | (0.2) | ||||
AOCI Attributable to Parent [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Cumulative-effect adjustment | [1] | (0.4) | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | (36.7) | (36.7) | |||||
Other comprehensive income (loss), net of tax | (11.7) | (5) | |||||
Ending balance | $ (48.8) | $ (36.7) | $ (36.7) | ||||
Accounting Standards Update 2016-01 | Accumulated Net Investment Gain (Loss) Attributable to Parent | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Cumulative-effect adjustment | $ 0.4 | ||||||
[1] | See Note 1 for discussion of our adoption of ASC 606 and ASU 2016-01 (as defined in Note 1 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | Jan. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Effect of LIFO Inventory Liquidation on Income | $ 5 | ||
Contract assets | 55.6 | $ 54.9 | $ 0 |
Inventories | 167.2 | 215.1 | 207.9 |
Total current assets | 671.5 | 656.6 | 656.6 |
Deferred tax assets, net | 68.7 | 35.9 | 72 |
Total assets | 1,396.8 | 1,419.3 | 1,385.2 |
Other accrued liabilities | 42 | 44 | 40.5 |
Total current liabilities | 174.6 | 205.5 | 173.1 |
Total liabilities | 640.4 | 678.9 | 638.9 |
Retained earnings | 95.6 | 150.2 | 85.5 |
Total stockholders' equity | 756.4 | 740.4 | 746.3 |
Total liabilities and stockholders' equity | 1,396.8 | 1,419.3 | 1,385.2 |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract assets | 0 | 0 | |
Inventories | 247.5 | 207.9 | |
Total current assets | 634.1 | 656.6 | |
Deferred tax assets, net | 39.2 | 72 | |
Total assets | 1,400.1 | 1,385.2 | |
Other accrued liabilities | 40.3 | 40.5 | |
Total current liabilities | 201.8 | 173.1 | |
Total liabilities | 675.2 | 638.9 | |
Retained earnings | 134.7 | 85.5 | |
Total stockholders' equity | 724.9 | 746.3 | |
Total liabilities and stockholders' equity | 1,400.1 | $ 1,385.2 | |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract assets | 55.6 | (54.9) | |
Inventories | (40.7) | 32.4 | |
Total current assets | 14.9 | (22.5) | |
Deferred tax assets, net | (3.3) | 3.3 | |
Total assets | 11.6 | (19.2) | |
Other accrued liabilities | 1.5 | (3.7) | |
Total current liabilities | 1.5 | (3.7) | |
Total liabilities | 1.5 | (3.7) | |
Retained earnings | 10.1 | (15.5) | |
Total stockholders' equity | 10.1 | (15.5) | |
Total liabilities and stockholders' equity | $ 11.6 | (19.2) | |
Imperial Machine and Tool Co. (''IMT'') [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Acquisition-related costs | $ 0.6 |
Revenue Recognition Standard (D
Revenue Recognition Standard (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 01, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Effect of LIFO Inventory Liquidation on Income | $ 5 | |||||||||||||||
Contract assets | 55.6 | $ 54.9 | $ 0 | $ 54.9 | $ 0 | |||||||||||
Inventories | 167.2 | 215.1 | 207.9 | 215.1 | 207.9 | |||||||||||
Total current assets | 671.5 | 656.6 | 656.6 | 656.6 | 656.6 | |||||||||||
Deferred tax assets, net | 68.7 | 35.9 | 72 | 35.9 | 72 | |||||||||||
Total assets | 1,396.8 | 1,419.3 | 1,385.2 | 1,419.3 | 1,385.2 | |||||||||||
Other accrued liabilities | 42 | 44 | 40.5 | 44 | 40.5 | |||||||||||
Total current liabilities | 174.6 | 205.5 | 173.1 | 205.5 | 173.1 | |||||||||||
Total liabilities | 640.4 | 678.9 | 638.9 | 678.9 | 638.9 | |||||||||||
Retained earnings | 95.6 | 150.2 | 85.5 | 150.2 | 85.5 | |||||||||||
Total stockholders' equity | 756.4 | 740.4 | 746.3 | 740.4 | 746.3 | |||||||||||
Total liabilities and stockholders' equity | 1,396.8 | 1,419.3 | 1,385.2 | 1,419.3 | 1,385.2 | |||||||||||
Net sales | 389.4 | $ 393.1 | $ 415.4 | $ 388 | 353.1 | $ 332.8 | $ 356.3 | $ 355.3 | 1,585.9 | 1,397.5 | $ 1,330.6 | |||||
Cost of products sold, excluding depreciation and amortization and other items | 317.3 | 323.3 | 343.4 | 316.7 | 277.2 | 256.4 | 289.6 | 262.7 | 1,300.7 | [1] | 1,085.9 | [1] | 1,000.8 | [1] | ||
Operating income | 36.9 | 34.9 | 34.7 | 37.1 | 41.9 | 41.5 | 12.5 | 59.3 | 143.6 | 155.2 | 181.1 | |||||
Income before income taxes | 120 | 133 | 147.2 | |||||||||||||
Income tax provision | (28.3) | (87.6) | (55.5) | |||||||||||||
Net income | $ 23.6 | $ 21.7 | $ 20.7 | $ 25.7 | $ (15.2) | $ 19.9 | $ 4.7 | $ 36 | $ 91.7 | $ 45.4 | $ 91.7 | |||||
Basic (in dollars per share) | $ 1.44 | $ 1.31 | $ 1.24 | $ 1.54 | $ (0.90) | $ 1.18 | $ 0.28 | $ 2.07 | $ 5.53 | $ 2.67 | $ 5.15 | |||||
Diluted (in dollars per share) | $ 1.41 | $ 1.29 | $ 1.22 | $ 1.51 | $ (0.90) | $ 1.16 | $ 0.27 | $ 2.04 | $ 5.43 | $ 2.63 | $ 5.09 | |||||
Comprehensive income | $ 80 | $ 45.4 | $ 86.7 | |||||||||||||
Contract assets | 0.7 | 0 | 0 | |||||||||||||
Inventories | (45) | (6.3) | 13.1 | |||||||||||||
Accrued liabilities | (2.6) | (4.7) | 26.2 | |||||||||||||
Net cash provided by operating activities | [2] | 150.2 | 141.5 | $ 165.6 | ||||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Contract assets | $ 0 | $ 0 | 0 | 0 | ||||||||||||
Inventories | 247.5 | 207.9 | 247.5 | 207.9 | ||||||||||||
Total current assets | 634.1 | 656.6 | 634.1 | 656.6 | ||||||||||||
Deferred tax assets, net | 39.2 | 72 | 39.2 | 72 | ||||||||||||
Total assets | 1,400.1 | 1,385.2 | 1,400.1 | 1,385.2 | ||||||||||||
Other accrued liabilities | 40.3 | 40.5 | 40.3 | 40.5 | ||||||||||||
Total current liabilities | 201.8 | 173.1 | 201.8 | 173.1 | ||||||||||||
Total liabilities | 675.2 | 638.9 | 675.2 | 638.9 | ||||||||||||
Retained earnings | 134.7 | 85.5 | 134.7 | 85.5 | ||||||||||||
Total stockholders' equity | 724.9 | 746.3 | 724.9 | 746.3 | ||||||||||||
Total liabilities and stockholders' equity | 1,400.1 | $ 1,385.2 | 1,400.1 | $ 1,385.2 | ||||||||||||
Net sales | 1,587.1 | |||||||||||||||
Cost of products sold, excluding depreciation and amortization and other items | 1,309 | |||||||||||||||
Operating income | 136.5 | |||||||||||||||
Income before income taxes | 112.9 | |||||||||||||||
Income tax provision | (26.6) | |||||||||||||||
Net income | $ 86.3 | |||||||||||||||
Basic (in dollars per share) | $ 5.20 | |||||||||||||||
Diluted (in dollars per share) | $ 5.11 | |||||||||||||||
Comprehensive income | $ 74.6 | |||||||||||||||
Contract assets | 0 | |||||||||||||||
Inventories | (36.7) | |||||||||||||||
Accrued liabilities | (4.8) | |||||||||||||||
Net cash provided by operating activities | 150.2 | |||||||||||||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Contract assets | 55.6 | (54.9) | (54.9) | |||||||||||||
Inventories | (40.7) | 32.4 | 32.4 | |||||||||||||
Total current assets | 14.9 | (22.5) | (22.5) | |||||||||||||
Deferred tax assets, net | (3.3) | 3.3 | 3.3 | |||||||||||||
Total assets | 11.6 | (19.2) | (19.2) | |||||||||||||
Other accrued liabilities | 1.5 | (3.7) | (3.7) | |||||||||||||
Total current liabilities | 1.5 | (3.7) | (3.7) | |||||||||||||
Total liabilities | 1.5 | (3.7) | (3.7) | |||||||||||||
Retained earnings | 10.1 | (15.5) | (15.5) | |||||||||||||
Total stockholders' equity | 10.1 | (15.5) | (15.5) | |||||||||||||
Total liabilities and stockholders' equity | $ 11.6 | $ (19.2) | (19.2) | |||||||||||||
Net sales | 1.2 | |||||||||||||||
Cost of products sold, excluding depreciation and amortization and other items | 8.3 | |||||||||||||||
Operating income | (7.1) | |||||||||||||||
Income before income taxes | (7.1) | |||||||||||||||
Income tax provision | 1.7 | |||||||||||||||
Net income | $ (5.4) | |||||||||||||||
Basic (in dollars per share) | $ (0.33) | |||||||||||||||
Diluted (in dollars per share) | $ (0.32) | |||||||||||||||
Comprehensive income | $ (5.4) | |||||||||||||||
Contract assets | (0.7) | |||||||||||||||
Inventories | 8.3 | |||||||||||||||
Accrued liabilities | (2.2) | |||||||||||||||
Net cash provided by operating activities | $ 0 | |||||||||||||||
[1] | See Note 7 for discussion of our adoption of ASU 2017-12 (as defined in Note 1 | |||||||||||||||
[2] | See Note 11 |
Other Expense, Net (Details)
Other Expense, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |||
Interest income | $ 0.3 | $ 0.2 | $ 0.1 |
Net periodic postretirement benefit cost relating to Salaried VEBA | (6.1) | (4.5) | (3.4) |
Gain on removal of Union VEBA net assets | 0 | 0 | 0.1 |
Realized gain on investments | 6.1 | 3.4 | 0.8 |
Loss on extinguishment of debt | 0 | 0 | (11.1) |
All other, net | (1.2) | (0.1) | |
All other, net | 0.9 | ||
Other expense, net | $ (0.9) | $ 0 | (13.6) |
Senior Notes | Senior Notes Due 2020 | |||
Debt Instrument, Redemption | |||
Redemption Premium | 8.2 | ||
Write off of Deferred Debt Issuance Cost | $ 2.9 |
Income Tax Matters Income Tax M
Income Tax Matters Income Tax Matters, Income Before Income Taxes Table (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 114.6 | $ 127.9 | $ 143.6 |
Foreign | 5.4 | 5.1 | 3.6 |
Income before income taxes | $ 120 | $ 133 | $ 147.2 |
Income Tax Matters, Income Tax
Income Tax Matters, Income Tax Benefit (Provision) Table (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Federal income tax (expense) benefit | |||
Current federal tax (expense) benefit | $ 11.9 | $ 3.1 | $ 2.7 |
Deferred federal income tax (expense) benefit | (34.7) | (82) | (47.8) |
Federal benefit (expense) applied to increase (decrease) Additional capital/Other comprehensive income | (0.7) | (0.1) | (3.2) |
Federal income tax (expense) benefit | (23.5) | (79) | (48.3) |
Foreign income tax (expense) benefit | |||
Current foreign tax (expense) benefit | (1.9) | (0.8) | 0.6 |
Deferred foreign income tax (expense) benefit | 0.1 | (1) | (1.2) |
Foreign benefit (expense) applied to increase (decrease) Additional capital/Other comprehensive income | 0 | (0.1) | (0.1) |
Foreign income tax (expense) benefit | (1.8) | (1.9) | (0.7) |
State income tax (expense) benefit | |||
Current state tax (expense) benefit | (1.5) | (1) | (1.5) |
Deferred state income tax (expense) benefit | (1.4) | (5.7) | (4.7) |
State benefit (expense) applied to increase (decrease) additional capital/Other comprehensive income | (0.1) | 0 | (0.3) |
State income tax (expense) benefit | (3) | (6.7) | (6.5) |
Total income tax (expense) benefit | |||
Current income tax (expense) benefit | 8.5 | 1.3 | 1.8 |
Deferred income tax (expense) benefit | (36) | (88.7) | (53.7) |
Benefit (expense) applied to increase (decrease) Additional capital/Other comprehensive income | (0.8) | (0.2) | (3.6) |
Income tax provision | $ (28.3) | $ (87.6) | $ (55.5) |
Income Tax Matters, Reconciliat
Income Tax Matters, Reconciliation Between Income Tax Provision and Statutory Income Tax Provision Table (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation between income tax provision and statutory income tax provision: | |||
Amount of federal income tax provision based on the statutory rate | $ (25.2) | $ (46.5) | $ (51.5) |
Decrease (increase) in federal valuation allowances | 1.7 | 0.5 | (0.3) |
Non-deductible compensation (expense) benefit | (0.6) | (2.3) | 0.3 |
Non-deductible expense | (1.5) | 0 | (0.3) |
State income taxes, net of federal benefit | (2.5) | (4.3) | (4.2) |
Foreign income tax (expense) benefit | (0.5) | (0.1) | 0.5 |
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | 0.4 | (5.9) | 0 |
Effective Income Tax Rate Reconciliation, Tax Settlement, Foreign, Amount | 0.1 | 29 | 0 |
Income tax provision | (28.3) | (87.6) | (55.5) |
State and Local Jurisdiction [Member] | |||
Reconciliation between income tax provision and statutory income tax provision: | |||
Decrease (increase) in federal valuation allowances | 2.9 | 2.2 | (0.3) |
State and tax expense (benefit) before adjustments | 4.5 | 4 | 4.1 |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ (0.9) | $ (2.5) | $ 0.2 |
Income Tax Matters, Components
Income Tax Matters, Components of Deferred Tax Assets and Liabilities Table (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred income tax assets: | ||
Loss and credit carryforwards | $ 48.7 | $ 98.7 |
Salaried VEBA (see Note 4) | 8 | 11.6 |
Other assets | 27.2 | 21 |
Inventories | 20 | 9.3 |
Valuation allowances | (8.4) | (13) |
Total deferred income tax assets | 95.5 | 127.6 |
Deferred income tax liabilities: | ||
Property, plant and equipment | (62) | (57.7) |
Undistributed foreign earnings | (1.8) | (2.2) |
Total deferred income tax liabilities | (63.8) | (59.9) |
Net deferred income tax assets | 31.7 | 67.7 |
Net deferred income tax assets, long term | 35.9 | 72 |
Deferred tax liability, long term | $ (4.2) | $ (4.3) |
Income Tax Matters, Reconcili_2
Income Tax Matters, Reconciliation of Changes in the Gross Unrecognized Tax Benefits Table (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of changes in the gross unrecognized tax benefits: | |||
Gross unrecognized tax benefits at beginning of period | $ 1.5 | $ 1.8 | $ 1.7 |
Gross increases for tax positions of prior years | 0 | 0 | 0.1 |
Gross decreases for tax positions of prior years | (0.3) | 0 | |
Gross unrecognized tax benefits at end of period | $ 1.5 | $ 1.5 | $ 1.8 |
Income Tax Matters Income Tax_2
Income Tax Matters Income Tax Matters Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||
Operating Loss Carryforwards | $ 117,700,000 | $ 117,700,000 | |||
Tax Credit Carryforward, Amount | 11,400,000 | 11,400,000 | |||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | (4,600,000) | $ (2,700,000) | $ (5,500,000) | ||
Unrecognized Tax Benefits | 1,500,000 | 1,500,000 | 1,500,000 | 1,800,000 | $ 1,700,000 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 400,000 | 400,000 | |||
Accrued interest and penalties on unrecognized tax benefits | 200,000 | 200,000 | 100,000 | ||
Accrued interest and penalties on unrecognized tax benefits, current | 0 | 0 | |||
(Decrease) increase in interest and penalty | (100,000) | (100,000) | $ 0 | ||
Provisional decrease in deferred tax assets | $ 29,000,000 | ||||
Provisional Transition Tax obligation | 3,500,000 | ||||
Accrued witholding taxes due to Canadian earnings deemed no longer permanently reinvested | 1,600,000 | 1,600,000 | |||
Provisional Section 162(m) obligation | $ 2,300,000 | $ 2,300,000 |
Net Income Per Share and Stoc_3
Net Income Per Share and Stockholders' Equity, Calculation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator: | |||||||||||
Net income | $ 23.6 | $ 21.7 | $ 20.7 | $ 25.7 | $ (15.2) | $ 19.9 | $ 4.7 | $ 36 | $ 91.7 | $ 45.4 | $ 91.7 |
Denominator – Weighted-average common shares outstanding (in thousands): | |||||||||||
Basic (in shares) | 16,585 | 16,996 | 17,813 | ||||||||
Add: dilutive effect of non-vested common shares, restricted stock units and performance shares1 | 289 | 263 | 220 | ||||||||
Diluted (in shares) | 16,874 | 17,259 | 18,033 | ||||||||
Basic (in dollars per share) | $ 1.44 | $ 1.31 | $ 1.24 | $ 1.54 | $ (0.90) | $ 1.18 | $ 0.28 | $ 2.07 | $ 5.53 | $ 2.67 | $ 5.15 |
Net (loss) income per common share, Diluted (in dollars per share | $ 1.41 | $ 1.29 | $ 1.22 | $ 1.51 | $ (0.90) | $ 1.16 | $ 0.27 | $ 2.04 | $ 5.43 | $ 2.63 | $ 5.09 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 52 | 50 |
Net Income Per Share and Stoc_4
Net Income Per Share and Stockholders' Equity Net Income Per Share and Stockholders' Equity, Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity [Abstract] | |||
Number of common shares repurchased (shares) | 617,151 | 938,680 | 443,838 |
Weighted-average repurchase price (dollars per share) | $ 100.28 | $ 82.97 | $ 78.59 |
Total cost of repurchased common shares | $ 61.9 | $ 77.8 | $ 34.9 |
Net Income Per Share and Stoc_5
Net Income Per Share and Stockholders' Equity, Narrative (Details) $ / shares in Units, $ in Millions | Apr. 07, 2016 | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Apr. 22, 2016shares |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Payment of cash dividends to stockholders | $ | $ 37.7 | $ 35 | $ 32.4 | ||
Payment of quarterly cash dividends | $ / shares | $ 2.20 | $ 2 | $ 1.80 | ||
Repurchase of common shares pursuant to an authorization from the Board, shares | shares | 617,151 | 938,680 | 443,838 | ||
Weighted-average price of repurchases of common shares | $ / shares | $ 100.28 | $ 82.97 | $ 78.59 | ||
Repurchase of common shares pursuant to an authorization from the Board, value | $ | $ 61.9 | $ 77.8 | $ 34.9 | ||
Common shares available for additional share repurchase | $ | $ 148.7 | $ 110.5 | |||
Preferred Stock, Shares Authorized | shares | 5,000,000 | 5,000,000 | |||
Series A Preferred Stock [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Preferred Stock, Rights Conversion Ratio into Preferred Stock | 1 | ||||
Preferred Stock, Shares Authorized | shares | 900,000 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplemental disclosure of cash flow information: | ||||
Interest paid | $ 21.6 | $ 21.1 | $ 17.7 | |
Non-cash investing and financing activities (included in Accounts payable): | ||||
Unpaid purchases of property and equipment | 7 | 7.4 | 4.6 | |
Stock repurchases not yet settled | 1.3 | 0.1 | 1.8 | |
Acquisition of property and equipment through capital leasing arrangements | 6.5 | 1.2 | 0.2 | |
Cash and cash equivalents | 125.6 | 51.1 | 55.2 | |
Restricted cash included in Prepaid expenses and other current assets | 0.3 | 0.3 | 0.3 | |
Restricted cash included in Other assets | 13.7 | 12.9 | 12.2 | |
Total cash, cash equivalents and restricted cash shown in the Statements of Consolidated Cash Flows | $ 139.6 | $ 64.3 | $ 67.7 | $ 83.7 |
Business, Product and Geograp_3
Business, Product and Geographical Area Information and Concentration of Risk - Summary of financial information by operating segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Segment Reporting Information | |||||||||||||
Impairment of Intangible Assets | $ 2.6 | ||||||||||||
Segment Operating Income (Loss): | |||||||||||||
Operating income | $ 36.9 | $ 34.9 | $ 34.7 | $ 37.1 | $ 41.9 | $ 41.5 | $ 12.5 | $ 59.3 | $ 143.6 | $ 155.2 | $ 181.1 | ||
Other income, net | (0.9) | 0 | (13.6) | ||||||||||
Income before income taxes | 120 | 133 | 147.2 | ||||||||||
Depreciation and Amortization: | |||||||||||||
Depreciation and amortization | 43.9 | 39.7 | 36 | ||||||||||
Capital expenditures: | |||||||||||||
Capital expenditures | 74.1 | 75.5 | $ 76.1 | ||||||||||
Segment assets: | |||||||||||||
Total assets | $ 1,419.3 | $ 1,385.2 | $ 1,419.3 | $ 1,385.2 | $ 1,396.8 |
Business, Product and Geograp_4
Business, Product and Geographical Area Information and Concentration of Risk - Schedule of net sales by end market segment applications (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue from External Customer | |||||||||||
Revenues | $ 389.4 | $ 393.1 | $ 415.4 | $ 388 | $ 353.1 | $ 332.8 | $ 356.3 | $ 355.3 | $ 1,585.9 | $ 1,397.5 | $ 1,330.6 |
Aero/HS products | |||||||||||
Revenue from External Customer | |||||||||||
Revenues | 739.4 | 653.7 | 675.4 | ||||||||
Automotive Extrusions | |||||||||||
Revenue from External Customer | |||||||||||
Revenues | 239.3 | 217.3 | 188.8 | ||||||||
GE products | |||||||||||
Revenue from External Customer | |||||||||||
Revenues | 546 | 476.2 | 420.1 | ||||||||
Other products | |||||||||||
Revenue from External Customer | |||||||||||
Revenues | 61.2 | $ 50.3 | $ 46.3 | ||||||||
Transferred at Point in Time | |||||||||||
Revenue from External Customer | |||||||||||
Revenues | 543 | ||||||||||
Transferred over Time | |||||||||||
Revenue from External Customer | |||||||||||
Revenues | $ 1,042.9 |
Business, Product and Geograp_5
Business, Product and Geographical Area Information and Concentration of Risk - Schedule of net sales, income taxes paid, and long-lived assets, by geographical area (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues from External Customers, Income Taxes Paid, and Long-Lived Assets | |||||||||||
Revenues | $ 389.4 | $ 393.1 | $ 415.4 | $ 388 | $ 353.1 | $ 332.8 | $ 356.3 | $ 355.3 | $ 1,585.9 | $ 1,397.5 | $ 1,330.6 |
Income taxes paid | 3.6 | 1.3 | 1.2 | ||||||||
Long-lived assets | 611.8 | 571.4 | 611.8 | 571.4 | 530.9 | ||||||
Fabricated Products | United States | |||||||||||
Revenues from External Customers, Income Taxes Paid, and Long-Lived Assets | |||||||||||
Revenues | 1,509.6 | 1,337.3 | 1,278.6 | ||||||||
Income taxes paid | 1.6 | 1.2 | 0.7 | ||||||||
Long-lived assets | 581.7 | 541.2 | 581.7 | 541.2 | 499.5 | ||||||
Fabricated Products | Canada | |||||||||||
Revenues from External Customers, Income Taxes Paid, and Long-Lived Assets | |||||||||||
Revenues | 76.3 | 60.2 | 52 | ||||||||
Income taxes paid | 2 | 0.1 | 0.5 | ||||||||
Long-lived assets | $ 30.1 | $ 30.2 | $ 30.1 | $ 30.2 | $ 31.4 |
Business, Product and Geograp_6
Business, Product and Geographical Area Information and Concentration of Risk - Schedules of Concentration of Risk, by Risk Factor (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Export sales | Net sales | |||
Concentration Risk | |||
Concentration risk, percentage | 15.00% | 18.00% | 19.00% |
Supplier concentration risk | Aluminum | Top five major suppliers | |||
Concentration Risk | |||
Concentration risk, percentage | 81.00% | 85.00% | 84.00% |
Supplier concentration risk | Aluminum | Largest supplier | |||
Concentration Risk | |||
Concentration risk, percentage | 22.00% | 36.00% | 32.00% |
Supplier concentration risk | Aluminum | Second and third largest suppliers | |||
Concentration Risk | |||
Concentration risk, percentage | 38.00% | 33.00% | 32.00% |
Largest Customer [Member] | Customer Concentration Risk [Member] | Trade receivables | |||
Concentration Risk | |||
Concentration risk, percentage | 31.00% | 22.00% | |
Second Largest Customer [Member] | Customer Concentration Risk [Member] | Trade receivables | |||
Concentration Risk | |||
Concentration risk, percentage | 11.00% | 14.00% |
Business, Product and Geograp_7
Business, Product and Geographical Area Information and Concentration of Risk - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2018productionfacilitiescustomer | Dec. 31, 2017customer | Dec. 31, 2016customer | |
Segment Reporting Information | |||
Percentage of Employees Covered by Collective Bargaining Agreements | 62.00% | ||
Percentage of Employees Covered by Collective Bargaining Agreements Expiring Within One Year | 0.00% | ||
United States | |||
Segment Reporting Information | |||
Number of production facilities | 12 | ||
Canada | |||
Segment Reporting Information | |||
Number of production facilities | 1 | ||
Customer Concentration Risk [Member] | Net sales | Largest Customer [Member] | Fabricated Products | |||
Segment Reporting Information | |||
Concentration risk, percentage | 25.00% | 27.00% | 26.00% |
Number of Customers | customer | 1 | 1 | 1 |
Customer Concentration Risk [Member] | Net sales | Second Largest Customer [Member] | Fabricated Products | |||
Segment Reporting Information | |||
Concentration risk, percentage | 15.00% | 12.00% | 10.00% |
Customer Concentration Risk [Member] | Trade receivables | Largest Customer [Member] | |||
Segment Reporting Information | |||
Concentration risk, percentage | 31.00% | 22.00% | |
Customer Concentration Risk [Member] | Trade receivables | Second Largest Customer [Member] | |||
Segment Reporting Information | |||
Concentration risk, percentage | 11.00% | 14.00% |
Guarantor and Non-Guarantor F_3
Guarantor and Non-Guarantor Financial Statements (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | Jun. 01, 2016 | May 15, 2016 | May 23, 2012 | |||||
Condensed Financial Statements [Line Items] | |||||||||||||||||||
Revenues | $ 389,400,000 | $ 393,100,000 | $ 415,400,000 | $ 388,000,000 | $ 353,100,000 | $ 332,800,000 | $ 356,300,000 | $ 355,300,000 | $ 1,585,900,000 | $ 1,397,500,000 | $ 1,330,600,000 | ||||||||
Ownership interest by parent | 100.00% | 100.00% | |||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ 125,600,000 | 51,100,000 | $ 125,600,000 | 51,100,000 | 55,200,000 | ||||||||||||||
Short-term investments | 36,700,000 | 183,700,000 | 36,700,000 | 183,700,000 | |||||||||||||||
Receivables: | |||||||||||||||||||
Trade, less allowance for doubtful receivables | 179,800,000 | 165,000,000 | 179,800,000 | 165,000,000 | |||||||||||||||
Intercompany receivables | 0 | 0 | 0 | 0 | |||||||||||||||
Other | 25,600,000 | 15,500,000 | 25,600,000 | 15,500,000 | |||||||||||||||
Contract assets | 54,900,000 | 0 | 54,900,000 | 0 | $ 55,600,000 | ||||||||||||||
Inventories | 215,100,000 | 207,900,000 | 215,100,000 | 207,900,000 | 167,200,000 | ||||||||||||||
Prepaid expenses and other current assets | 18,900,000 | 33,400,000 | 18,900,000 | 33,400,000 | |||||||||||||||
Total current assets | 656,600,000 | 656,600,000 | 656,600,000 | 656,600,000 | 671,500,000 | ||||||||||||||
Investments in and advances to unconsolidated affiliates | 0 | 0 | 0 | 0 | |||||||||||||||
Property, plant and equipment, net | 611,800,000 | 571,400,000 | 611,800,000 | 571,400,000 | |||||||||||||||
Long-term intercompany receivables | 0 | 0 | 0 | 0 | |||||||||||||||
Deferred tax assets, net | 35,900,000 | 72,000,000 | 35,900,000 | 72,000,000 | 68,700,000 | ||||||||||||||
Intangible assets, net | 32,400,000 | 25,000,000 | 32,400,000 | 25,000,000 | |||||||||||||||
Goodwill | 44,000,000 | 18,800,000 | 44,000,000 | 18,800,000 | |||||||||||||||
Other assets | 38,600,000 | 41,400,000 | 38,600,000 | 41,400,000 | |||||||||||||||
Total | 1,419,300,000 | 1,385,200,000 | 1,419,300,000 | 1,385,200,000 | 1,396,800,000 | ||||||||||||||
Current liabilities: | |||||||||||||||||||
Accounts payable | 121,400,000 | 90,000,000 | 121,400,000 | 90,000,000 | |||||||||||||||
Intercompany payable | 0 | 0 | 0 | 0 | |||||||||||||||
Accrued salaries, wages and related expenses | 40,100,000 | 42,600,000 | 40,100,000 | 42,600,000 | |||||||||||||||
Other accrued liabilities | 44,000,000 | 40,500,000 | 44,000,000 | 40,500,000 | 42,000,000 | ||||||||||||||
Total current liabilities | 205,500,000 | 173,100,000 | 205,500,000 | 173,100,000 | 174,600,000 | ||||||||||||||
Net liabilities of Salaried VEBA | 32,400,000 | 31,900,000 | 32,400,000 | 31,900,000 | |||||||||||||||
Deferred tax liabilities | 4,200,000 | 4,300,000 | 4,200,000 | 4,300,000 | |||||||||||||||
Long-term intercompany payable | 0 | 0 | 0 | 0 | |||||||||||||||
Long-term liabilities | 66,400,000 | 60,000,000 | 66,400,000 | 60,000,000 | |||||||||||||||
Long-term debt | 370,400,000 | 369,600,000 | 370,400,000 | 369,600,000 | |||||||||||||||
Total liabilities | 678,900,000 | 638,900,000 | 678,900,000 | 638,900,000 | 640,400,000 | ||||||||||||||
Total stockholders' equity | 740,400,000 | 746,300,000 | 740,400,000 | 746,300,000 | 756,400,000 | ||||||||||||||
Total liabilities and stockholders' equity | 1,419,300,000 | 1,385,200,000 | 1,419,300,000 | 1,385,200,000 | $ 1,396,800,000 | ||||||||||||||
Costs and expenses: | |||||||||||||||||||
Cost of Goods and Services Sold | 317,300,000 | 323,300,000 | 343,400,000 | 316,700,000 | 277,200,000 | 256,400,000 | 289,600,000 | 262,700,000 | 1,300,700,000 | [1] | 1,085,900,000 | [1] | 1,000,800,000 | [1] | |||||
Lower of cost or market inventory write-down | 0 | 0 | 4,900,000 | ||||||||||||||||
Depreciation and amortization | 43,900,000 | 39,700,000 | 36,000,000 | ||||||||||||||||
Selling, general, administrative, research and development | [2] | 96,300,000 | 97,500,000 | 105,000,000 | |||||||||||||||
Net periodic postretirement benefit cost relating to Salaried VEBA | 6,100,000 | 4,500,000 | 3,400,000 | ||||||||||||||||
Goodwill impairment | 18,400,000 | 0 | 18,400,000 | 0 | |||||||||||||||
Other operating charges, net | 1,400,000 | 800,000 | 2,800,000 | ||||||||||||||||
Total costs and expenses | 1,442,300,000 | 1,242,300,000 | 1,149,500,000 | ||||||||||||||||
Operating (loss) income | 36,900,000 | 34,900,000 | 34,700,000 | 37,100,000 | 41,900,000 | 41,500,000 | 12,500,000 | 59,300,000 | 143,600,000 | 155,200,000 | 181,100,000 | ||||||||
Interest expense | (22,700,000) | (22,200,000) | (20,300,000) | ||||||||||||||||
Other expense: | |||||||||||||||||||
Other income, net | (900,000) | 0 | (13,600,000) | ||||||||||||||||
(Loss) income before income taxes | 120,000,000 | 133,000,000 | 147,200,000 | ||||||||||||||||
Income tax provision | (28,300,000) | (87,600,000) | (55,500,000) | ||||||||||||||||
Earnings in equity of subsidiaries | 0 | 0 | 0 | ||||||||||||||||
Net income | 23,600,000 | $ 21,700,000 | $ 20,700,000 | 25,700,000 | (15,200,000) | $ 19,900,000 | $ 4,700,000 | 36,000,000 | 91,700,000 | 45,400,000 | 91,700,000 | ||||||||
Comprehensive income | 80,000,000 | 45,400,000 | 86,700,000 | ||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||
Net cash provided by operating activities | [3] | 150,200,000 | 141,500,000 | 165,600,000 | |||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||
Capital expenditures | (74,100,000) | (75,500,000) | (76,100,000) | ||||||||||||||||
Purchase of available for sale securities | (135,200,000) | (247,500,000) | (255,300,000) | ||||||||||||||||
Payments to Acquire Available-for-sale Securities, Equity | (900,000) | 0 | 0 | ||||||||||||||||
Proceeds from disposition of available for sale securities | 283,900,000 | 296,900,000 | 55,000,000 | ||||||||||||||||
Cash payment for acquisition of Imperial Machine & Tool Co., net of cash received | (43,200,000) | 0 | 0 | ||||||||||||||||
Proceeds from disposal of property, plant and equipment | 600,000 | 600,000 | 0 | ||||||||||||||||
Intercompany loans receivable | 0 | 0 | 0 | ||||||||||||||||
Net cash provided by (used in) investing activities | [4] | 31,100,000 | (25,500,000) | (276,400,000) | |||||||||||||||
Repayment of principal and redemption premium of 8.25% Senior Notes | 0 | 0 | (206,000,000) | ||||||||||||||||
Issuance of 5.875% Senior Notes | 0 | 0 | 375,000,000 | ||||||||||||||||
Cash paid for debt issuance costs | 0 | 0 | (6,800,000) | ||||||||||||||||
Proceeds from stock option exercises | 0 | 0 | 1,200,000 | ||||||||||||||||
Repayment of capital lease | (700,000) | (400,000) | 0 | ||||||||||||||||
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | (6,900,000) | (4,500,000) | (2,900,000) | ||||||||||||||||
Repurchase of common stock | (60,700,000) | (79,500,000) | (33,300,000) | ||||||||||||||||
Cash dividends and dividend equivalents paid | (37,700,000) | (35,000,000) | (32,400,000) | ||||||||||||||||
Cash dividends paid to Parent | 0 | ||||||||||||||||||
Intercompany loans payable1 | 0 | 0 | 0 | ||||||||||||||||
Net cash (used in) provided by financing activities | [4] | (106,000,000) | (119,400,000) | 94,800,000 | |||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash during the period | 75,300,000 | (3,400,000) | (16,000,000) | ||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 64,300,000 | 67,700,000 | 64,300,000 | 67,700,000 | 83,700,000 | ||||||||||||||
Cash, cash equivalents and restricted cash at end of period | 139,600,000 | 64,300,000 | 139,600,000 | 64,300,000 | 67,700,000 | ||||||||||||||
Consolidating Adjustments | |||||||||||||||||||
Condensed Financial Statements [Line Items] | |||||||||||||||||||
Revenues | (99,200,000) | (83,500,000) | (74,400,000) | ||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |||||||||||||||
Short-term investments | 0 | 0 | 0 | 0 | |||||||||||||||
Receivables: | |||||||||||||||||||
Trade, less allowance for doubtful receivables | 0 | 0 | 0 | 0 | |||||||||||||||
Intercompany receivables | (148,100,000) | (23,600,000) | (148,100,000) | (23,600,000) | |||||||||||||||
Other | 0 | 0 | 0 | 0 | |||||||||||||||
Contract assets | 0 | 0 | |||||||||||||||||
Inventories | 0 | 0 | 0 | 0 | |||||||||||||||
Prepaid expenses and other current assets | 0 | 0 | 0 | 0 | |||||||||||||||
Total current assets | (148,100,000) | (23,600,000) | (148,100,000) | (23,600,000) | |||||||||||||||
Investments in and advances to unconsolidated affiliates | (1,069,800,000) | (1,145,900,000) | (1,069,800,000) | (1,145,900,000) | |||||||||||||||
Property, plant and equipment, net | 0 | 0 | 0 | 0 | |||||||||||||||
Long-term intercompany receivables | (9,800,000) | (12,400,000) | (9,800,000) | (12,400,000) | |||||||||||||||
Deferred tax assets, net | 3,000,000 | 4,700,000 | 3,000,000 | 4,700,000 | |||||||||||||||
Intangible assets, net | 0 | 0 | 0 | 0 | |||||||||||||||
Goodwill | 0 | 0 | 0 | 0 | |||||||||||||||
Other assets | 0 | 0 | 0 | 0 | |||||||||||||||
Total | (1,224,700,000) | (1,177,200,000) | (1,224,700,000) | (1,177,200,000) | |||||||||||||||
Current liabilities: | |||||||||||||||||||
Accounts payable | 0 | 0 | 0 | 0 | |||||||||||||||
Intercompany payable | (148,100,000) | (23,600,000) | (148,100,000) | (23,600,000) | |||||||||||||||
Accrued salaries, wages and related expenses | 0 | 0 | 0 | 0 | |||||||||||||||
Other accrued liabilities | (6,300,000) | (9,500,000) | (6,300,000) | (9,500,000) | |||||||||||||||
Total current liabilities | (154,400,000) | (33,100,000) | (154,400,000) | (33,100,000) | |||||||||||||||
Net liabilities of Salaried VEBA | 0 | 0 | 0 | 0 | |||||||||||||||
Deferred tax liabilities | 0 | 0 | 0 | 0 | |||||||||||||||
Long-term intercompany payable | (9,800,000) | (12,400,000) | (9,800,000) | (12,400,000) | |||||||||||||||
Long-term liabilities | 0 | 0 | 0 | 0 | |||||||||||||||
Long-term debt | 0 | 0 | 0 | 0 | |||||||||||||||
Total liabilities | (164,200,000) | (45,500,000) | (164,200,000) | (45,500,000) | |||||||||||||||
Total stockholders' equity | (1,060,500,000) | (1,131,700,000) | (1,060,500,000) | (1,131,700,000) | |||||||||||||||
Total liabilities and stockholders' equity | (1,224,700,000) | (1,177,200,000) | (1,224,700,000) | (1,177,200,000) | |||||||||||||||
Costs and expenses: | |||||||||||||||||||
Cost of Goods and Services Sold | (96,500,000) | (81,300,000) | (71,100,000) | ||||||||||||||||
Lower of cost or market inventory write-down | 0 | ||||||||||||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||||||||||
Selling, general, administrative, research and development | (2,700,000) | (2,200,000) | (2,600,000) | ||||||||||||||||
Goodwill impairment | 0 | ||||||||||||||||||
Other operating charges, net | 0 | 0 | 0 | ||||||||||||||||
Total costs and expenses | (99,200,000) | (83,500,000) | (73,700,000) | ||||||||||||||||
Operating (loss) income | 0 | 0 | (700,000) | ||||||||||||||||
Interest expense | 600,000 | 200,000 | 100,000 | ||||||||||||||||
Other expense: | |||||||||||||||||||
Other income, net | (600,000) | (200,000) | (100,000) | ||||||||||||||||
(Loss) income before income taxes | 0 | 0 | (700,000) | ||||||||||||||||
Income tax provision | 6,300,000 | 9,500,000 | 14,100,000 | ||||||||||||||||
Earnings in equity of subsidiaries | (119,700,000) | (74,900,000) | (130,300,000) | ||||||||||||||||
Net income | (113,400,000) | (65,400,000) | (116,900,000) | ||||||||||||||||
Comprehensive income | (101,700,000) | (65,400,000) | (111,900,000) | ||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||
Net cash provided by operating activities | (250,000,000) | 0 | (200,000,000) | ||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||
Capital expenditures | 0 | 0 | 0 | ||||||||||||||||
Purchase of available for sale securities | 0 | 0 | 0 | ||||||||||||||||
Payments to Acquire Available-for-sale Securities, Equity | 0 | ||||||||||||||||||
Proceeds from disposition of available for sale securities | 0 | 0 | 0 | ||||||||||||||||
Cash payment for acquisition of Imperial Machine & Tool Co., net of cash received | 0 | ||||||||||||||||||
Proceeds from disposal of property, plant and equipment | 0 | 0 | |||||||||||||||||
Intercompany loans receivable | 121,900,000 | (135,600,000) | 56,900,000 | ||||||||||||||||
Net cash provided by (used in) investing activities | 121,900,000 | (135,600,000) | 56,900,000 | ||||||||||||||||
Repayment of principal and redemption premium of 8.25% Senior Notes | 0 | ||||||||||||||||||
Issuance of 5.875% Senior Notes | 0 | ||||||||||||||||||
Cash paid for debt issuance costs | 0 | ||||||||||||||||||
Proceeds from stock option exercises | 0 | ||||||||||||||||||
Repayment of capital lease | 0 | 0 | |||||||||||||||||
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | 0 | 0 | 0 | ||||||||||||||||
Repurchase of common stock | 0 | 0 | 0 | ||||||||||||||||
Cash dividends and dividend equivalents paid | 0 | 0 | 0 | ||||||||||||||||
Payments of Dividends | (200,000,000) | ||||||||||||||||||
Cash dividends paid to Parent | 250,000,000 | ||||||||||||||||||
Intercompany loans payable1 | (121,900,000) | 135,600,000 | (56,900,000) | ||||||||||||||||
Net cash (used in) provided by financing activities | 128,100,000 | 135,600,000 | 143,100,000 | ||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash during the period | 0 | 0 | 0 | ||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Cash, cash equivalents and restricted cash at end of period | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Parent Company [Member] | |||||||||||||||||||
Condensed Financial Statements [Line Items] | |||||||||||||||||||
Revenues | 0 | 0 | 0 | ||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |||||||||||||||
Short-term investments | 0 | 0 | 0 | 0 | |||||||||||||||
Receivables: | |||||||||||||||||||
Trade, less allowance for doubtful receivables | 0 | 0 | 0 | 0 | |||||||||||||||
Intercompany receivables | 143,700,000 | 22,800,000 | 143,700,000 | 22,800,000 | |||||||||||||||
Other | 0 | 0 | 0 | 0 | |||||||||||||||
Contract assets | 0 | 0 | |||||||||||||||||
Inventories | 0 | 0 | 0 | 0 | |||||||||||||||
Prepaid expenses and other current assets | 100,000 | 100,000 | 100,000 | 100,000 | |||||||||||||||
Total current assets | 143,800,000 | 22,900,000 | 143,800,000 | 22,900,000 | |||||||||||||||
Investments in and advances to unconsolidated affiliates | 974,700,000 | 1,097,700,000 | 974,700,000 | 1,097,700,000 | |||||||||||||||
Property, plant and equipment, net | 0 | 0 | 0 | 0 | |||||||||||||||
Long-term intercompany receivables | 0 | 0 | 0 | 0 | |||||||||||||||
Deferred tax assets, net | 0 | 0 | 0 | 0 | |||||||||||||||
Intangible assets, net | 0 | 0 | 0 | 0 | |||||||||||||||
Goodwill | 0 | 0 | 0 | 0 | |||||||||||||||
Other assets | 0 | 0 | 0 | 0 | |||||||||||||||
Total | 1,118,500,000 | 1,120,600,000 | 1,118,500,000 | 1,120,600,000 | |||||||||||||||
Current liabilities: | |||||||||||||||||||
Accounts payable | 4,900,000 | 1,900,000 | 4,900,000 | 1,900,000 | |||||||||||||||
Intercompany payable | 0 | 0 | 0 | 0 | |||||||||||||||
Accrued salaries, wages and related expenses | 0 | 0 | 0 | 0 | |||||||||||||||
Other accrued liabilities | 2,800,000 | 2,800,000 | 2,800,000 | 2,800,000 | |||||||||||||||
Total current liabilities | 7,700,000 | 4,700,000 | 7,700,000 | 4,700,000 | |||||||||||||||
Net liabilities of Salaried VEBA | 0 | 0 | 0 | 0 | |||||||||||||||
Deferred tax liabilities | 0 | 0 | 0 | 0 | |||||||||||||||
Long-term intercompany payable | 0 | 0 | 0 | 0 | |||||||||||||||
Long-term liabilities | 0 | 0 | 0 | 0 | |||||||||||||||
Long-term debt | 370,400,000 | 369,600,000 | 370,400,000 | 369,600,000 | |||||||||||||||
Total liabilities | 378,100,000 | 374,300,000 | 378,100,000 | 374,300,000 | |||||||||||||||
Total stockholders' equity | 740,400,000 | 746,300,000 | 740,400,000 | 746,300,000 | |||||||||||||||
Total liabilities and stockholders' equity | 1,118,500,000 | 1,120,600,000 | 1,118,500,000 | 1,120,600,000 | |||||||||||||||
Costs and expenses: | |||||||||||||||||||
Cost of Goods and Services Sold | 0 | 0 | 0 | ||||||||||||||||
Lower of cost or market inventory write-down | 0 | ||||||||||||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||||||||||
Selling, general, administrative, research and development | 4,800,000 | 4,500,000 | 4,200,000 | ||||||||||||||||
Goodwill impairment | 0 | ||||||||||||||||||
Other operating charges, net | 0 | 0 | 0 | ||||||||||||||||
Total costs and expenses | 4,800,000 | 4,500,000 | 4,200,000 | ||||||||||||||||
Operating (loss) income | (4,800,000) | (4,500,000) | (4,200,000) | ||||||||||||||||
Interest expense | (21,100,000) | (20,700,000) | (21,600,000) | ||||||||||||||||
Other expense: | |||||||||||||||||||
Other income, net | 0 | 0 | (11,100,000) | ||||||||||||||||
(Loss) income before income taxes | (25,900,000) | (25,200,000) | (36,900,000) | ||||||||||||||||
Income tax provision | 0 | 0 | 0 | ||||||||||||||||
Earnings in equity of subsidiaries | 117,600,000 | 70,600,000 | 128,600,000 | ||||||||||||||||
Net income | 91,700,000 | 45,400,000 | 91,700,000 | ||||||||||||||||
Comprehensive income | 80,000,000 | 45,400,000 | 86,700,000 | ||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||
Net cash provided by operating activities | 226,200,000 | (24,200,000) | 177,700,000 | ||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||
Capital expenditures | 0 | 0 | 0 | ||||||||||||||||
Purchase of available for sale securities | 0 | 0 | 0 | ||||||||||||||||
Payments to Acquire Available-for-sale Securities, Equity | 0 | ||||||||||||||||||
Proceeds from disposition of available for sale securities | 0 | 0 | 0 | ||||||||||||||||
Cash payment for acquisition of Imperial Machine & Tool Co., net of cash received | 0 | ||||||||||||||||||
Proceeds from disposal of property, plant and equipment | 0 | 0 | |||||||||||||||||
Intercompany loans receivable | (120,900,000) | 143,200,000 | (166,000,000) | ||||||||||||||||
Net cash provided by (used in) investing activities | (120,900,000) | 143,200,000 | (166,000,000) | ||||||||||||||||
Repayment of principal and redemption premium of 8.25% Senior Notes | (206,000,000) | ||||||||||||||||||
Issuance of 5.875% Senior Notes | 375,000,000 | ||||||||||||||||||
Cash paid for debt issuance costs | (6,800,000) | ||||||||||||||||||
Proceeds from stock option exercises | 1,200,000 | ||||||||||||||||||
Repayment of capital lease | 0 | 0 | |||||||||||||||||
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | (6,900,000) | (4,500,000) | (2,900,000) | ||||||||||||||||
Repurchase of common stock | (60,700,000) | (79,500,000) | (33,300,000) | ||||||||||||||||
Cash dividends and dividend equivalents paid | (37,700,000) | (35,000,000) | (32,400,000) | ||||||||||||||||
Payments of Dividends | 0 | ||||||||||||||||||
Cash dividends paid to Parent | 0 | ||||||||||||||||||
Intercompany loans payable1 | 0 | 0 | (106,500,000) | ||||||||||||||||
Net cash (used in) provided by financing activities | (105,300,000) | (119,000,000) | (11,700,000) | ||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash during the period | 0 | 0 | 0 | ||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Cash, cash equivalents and restricted cash at end of period | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Guarantor Subsidiaries | |||||||||||||||||||
Condensed Financial Statements [Line Items] | |||||||||||||||||||
Revenues | 1,547,000,000 | 1,365,300,000 | 1,301,600,000 | ||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | 122,600,000 | 48,400,000 | 122,600,000 | 48,400,000 | |||||||||||||||
Short-term investments | 36,700,000 | 183,700,000 | 36,700,000 | 183,700,000 | |||||||||||||||
Receivables: | |||||||||||||||||||
Trade, less allowance for doubtful receivables | 174,000,000 | 160,100,000 | 174,000,000 | 160,100,000 | |||||||||||||||
Intercompany receivables | 100,000 | 100,000 | 100,000 | 100,000 | |||||||||||||||
Other | 23,300,000 | 14,700,000 | 23,300,000 | 14,700,000 | |||||||||||||||
Contract assets | 52,000,000 | 52,000,000 | |||||||||||||||||
Inventories | 203,000,000 | 198,700,000 | 203,000,000 | 198,700,000 | |||||||||||||||
Prepaid expenses and other current assets | 18,400,000 | 32,900,000 | 18,400,000 | 32,900,000 | |||||||||||||||
Total current assets | 630,100,000 | 638,600,000 | 630,100,000 | 638,600,000 | |||||||||||||||
Investments in and advances to unconsolidated affiliates | 94,900,000 | 48,200,000 | 94,900,000 | 48,200,000 | |||||||||||||||
Property, plant and equipment, net | 577,400,000 | 541,200,000 | 577,400,000 | 541,200,000 | |||||||||||||||
Long-term intercompany receivables | 0 | 0 | 0 | 0 | |||||||||||||||
Deferred tax assets, net | 32,900,000 | 67,300,000 | 32,900,000 | 67,300,000 | |||||||||||||||
Intangible assets, net | 23,600,000 | 25,000,000 | 23,600,000 | 25,000,000 | |||||||||||||||
Goodwill | 18,800,000 | 18,800,000 | 18,800,000 | 18,800,000 | |||||||||||||||
Other assets | 38,600,000 | 41,400,000 | 38,600,000 | 41,400,000 | |||||||||||||||
Total | 1,416,300,000 | 1,380,500,000 | 1,416,300,000 | 1,380,500,000 | |||||||||||||||
Current liabilities: | |||||||||||||||||||
Accounts payable | 109,600,000 | 81,400,000 | 109,600,000 | 81,400,000 | |||||||||||||||
Intercompany payable | 148,000,000 | 23,500,000 | 148,000,000 | 23,500,000 | |||||||||||||||
Accrued salaries, wages and related expenses | 38,300,000 | 41,000,000 | 38,300,000 | 41,000,000 | |||||||||||||||
Other accrued liabilities | 46,700,000 | 46,200,000 | 46,700,000 | 46,200,000 | |||||||||||||||
Total current liabilities | 342,600,000 | 192,100,000 | 342,600,000 | 192,100,000 | |||||||||||||||
Net liabilities of Salaried VEBA | 32,400,000 | 31,900,000 | 32,400,000 | 31,900,000 | |||||||||||||||
Deferred tax liabilities | 0 | 0 | 0 | 0 | |||||||||||||||
Long-term intercompany payable | 9,800,000 | 12,400,000 | 9,800,000 | 12,400,000 | |||||||||||||||
Long-term liabilities | 63,300,000 | 58,000,000 | 63,300,000 | 58,000,000 | |||||||||||||||
Long-term debt | 0 | 0 | 0 | 0 | |||||||||||||||
Total liabilities | 448,100,000 | 294,400,000 | 448,100,000 | 294,400,000 | |||||||||||||||
Total stockholders' equity | 968,200,000 | 1,086,100,000 | 968,200,000 | 1,086,100,000 | |||||||||||||||
Total liabilities and stockholders' equity | 1,416,300,000 | 1,380,500,000 | 1,416,300,000 | 1,380,500,000 | |||||||||||||||
Costs and expenses: | |||||||||||||||||||
Cost of Goods and Services Sold | 1,271,200,000 | 1,066,100,000 | 981,900,000 | ||||||||||||||||
Lower of cost or market inventory write-down | 4,900,000 | ||||||||||||||||||
Depreciation and amortization | 41,300,000 | 37,500,000 | 34,000,000 | ||||||||||||||||
Selling, general, administrative, research and development | 88,500,000 | 88,300,000 | 95,000,000 | ||||||||||||||||
Goodwill impairment | 18,400,000 | ||||||||||||||||||
Other operating charges, net | 1,300,000 | 800,000 | 2,800,000 | ||||||||||||||||
Total costs and expenses | 1,402,300,000 | 1,211,100,000 | 1,118,600,000 | ||||||||||||||||
Operating (loss) income | 144,700,000 | 154,200,000 | 183,000,000 | ||||||||||||||||
Interest expense | (2,200,000) | (1,700,000) | 1,200,000 | ||||||||||||||||
Other expense: | |||||||||||||||||||
Other income, net | (400,000) | (500,000) | (2,400,000) | ||||||||||||||||
(Loss) income before income taxes | 142,100,000 | 152,000,000 | 181,800,000 | ||||||||||||||||
Income tax provision | (32,900,000) | (95,200,000) | (69,000,000) | ||||||||||||||||
Earnings in equity of subsidiaries | 2,100,000 | 4,300,000 | 1,700,000 | ||||||||||||||||
Net income | 111,300,000 | 61,100,000 | 114,500,000 | ||||||||||||||||
Comprehensive income | 99,600,000 | 61,100,000 | 109,800,000 | ||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||
Net cash provided by operating activities | 166,600,000 | 156,900,000 | 178,700,000 | ||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||
Capital expenditures | (68,000,000) | (74,700,000) | (74,000,000) | ||||||||||||||||
Purchase of available for sale securities | (135,200,000) | (247,500,000) | (255,300,000) | ||||||||||||||||
Payments to Acquire Available-for-sale Securities, Equity | (900,000) | ||||||||||||||||||
Proceeds from disposition of available for sale securities | 283,900,000 | 296,900,000 | 55,000,000 | ||||||||||||||||
Cash payment for acquisition of Imperial Machine & Tool Co., net of cash received | (43,200,000) | ||||||||||||||||||
Proceeds from disposal of property, plant and equipment | 600,000 | 600,000 | |||||||||||||||||
Intercompany loans receivable | 0 | 0 | 110,400,000 | ||||||||||||||||
Net cash provided by (used in) investing activities | 37,200,000 | (24,700,000) | (163,900,000) | ||||||||||||||||
Repayment of principal and redemption premium of 8.25% Senior Notes | 0 | ||||||||||||||||||
Issuance of 5.875% Senior Notes | 0 | ||||||||||||||||||
Cash paid for debt issuance costs | 0 | ||||||||||||||||||
Proceeds from stock option exercises | 0 | ||||||||||||||||||
Repayment of capital lease | (700,000) | (400,000) | |||||||||||||||||
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | 0 | 0 | 0 | ||||||||||||||||
Repurchase of common stock | 0 | 0 | 0 | ||||||||||||||||
Cash dividends and dividend equivalents paid | 0 | 0 | 0 | ||||||||||||||||
Payments of Dividends | 200,000,000 | ||||||||||||||||||
Cash dividends paid to Parent | (250,000,000) | ||||||||||||||||||
Intercompany loans payable1 | 121,900,000 | (135,600,000) | 167,300,000 | ||||||||||||||||
Net cash (used in) provided by financing activities | (128,800,000) | (136,000,000) | (32,700,000) | ||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash during the period | 75,000,000 | (3,800,000) | (17,900,000) | ||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 61,300,000 | 65,100,000 | 61,300,000 | 65,100,000 | 83,000,000 | ||||||||||||||
Cash, cash equivalents and restricted cash at end of period | 136,300,000 | 61,300,000 | 136,300,000 | 61,300,000 | 65,100,000 | ||||||||||||||
Non-Guarantor Subsidiaries | |||||||||||||||||||
Condensed Financial Statements [Line Items] | |||||||||||||||||||
Revenues | 138,100,000 | 115,700,000 | 103,400,000 | ||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | 3,000,000 | 2,700,000 | 3,000,000 | 2,700,000 | |||||||||||||||
Short-term investments | 0 | 0 | 0 | 0 | |||||||||||||||
Receivables: | |||||||||||||||||||
Trade, less allowance for doubtful receivables | 5,800,000 | 4,900,000 | 5,800,000 | 4,900,000 | |||||||||||||||
Intercompany receivables | 4,300,000 | 700,000 | 4,300,000 | 700,000 | |||||||||||||||
Other | 2,300,000 | 800,000 | 2,300,000 | 800,000 | |||||||||||||||
Contract assets | 2,900,000 | 2,900,000 | |||||||||||||||||
Inventories | 12,100,000 | 9,200,000 | 12,100,000 | 9,200,000 | |||||||||||||||
Prepaid expenses and other current assets | 400,000 | 400,000 | 400,000 | 400,000 | |||||||||||||||
Total current assets | 30,800,000 | 18,700,000 | 30,800,000 | 18,700,000 | |||||||||||||||
Investments in and advances to unconsolidated affiliates | 200,000 | 0 | 200,000 | 0 | |||||||||||||||
Property, plant and equipment, net | 34,400,000 | 30,200,000 | 34,400,000 | 30,200,000 | |||||||||||||||
Long-term intercompany receivables | 9,800,000 | 12,400,000 | 9,800,000 | 12,400,000 | |||||||||||||||
Deferred tax assets, net | 0 | 0 | 0 | 0 | |||||||||||||||
Intangible assets, net | 8,800,000 | 0 | 8,800,000 | 0 | |||||||||||||||
Goodwill | 25,200,000 | 0 | 25,200,000 | 0 | |||||||||||||||
Other assets | 0 | 0 | 0 | 0 | |||||||||||||||
Total | 109,200,000 | 61,300,000 | 109,200,000 | 61,300,000 | |||||||||||||||
Current liabilities: | |||||||||||||||||||
Accounts payable | 6,900,000 | 6,700,000 | 6,900,000 | 6,700,000 | |||||||||||||||
Intercompany payable | 100,000 | 100,000 | 100,000 | 100,000 | |||||||||||||||
Accrued salaries, wages and related expenses | 1,800,000 | 1,600,000 | 1,800,000 | 1,600,000 | |||||||||||||||
Other accrued liabilities | 800,000 | 1,000,000 | 800,000 | 1,000,000 | |||||||||||||||
Total current liabilities | 9,600,000 | 9,400,000 | 9,600,000 | 9,400,000 | |||||||||||||||
Net liabilities of Salaried VEBA | 0 | 0 | 0 | 0 | |||||||||||||||
Deferred tax liabilities | 4,200,000 | 4,300,000 | 4,200,000 | 4,300,000 | |||||||||||||||
Long-term intercompany payable | 0 | 0 | 0 | 0 | |||||||||||||||
Long-term liabilities | 3,100,000 | 2,000,000 | 3,100,000 | 2,000,000 | |||||||||||||||
Long-term debt | 0 | 0 | 0 | 0 | |||||||||||||||
Total liabilities | 16,900,000 | 15,700,000 | 16,900,000 | 15,700,000 | |||||||||||||||
Total stockholders' equity | 92,300,000 | 45,600,000 | 92,300,000 | 45,600,000 | |||||||||||||||
Total liabilities and stockholders' equity | 109,200,000 | 61,300,000 | 109,200,000 | 61,300,000 | |||||||||||||||
Costs and expenses: | |||||||||||||||||||
Cost of Goods and Services Sold | 126,000,000 | 101,100,000 | 90,000,000 | ||||||||||||||||
Lower of cost or market inventory write-down | 0 | ||||||||||||||||||
Depreciation and amortization | 2,600,000 | 2,200,000 | 2,000,000 | ||||||||||||||||
Selling, general, administrative, research and development | 5,700,000 | 6,900,000 | 8,400,000 | ||||||||||||||||
Goodwill impairment | 0 | ||||||||||||||||||
Other operating charges, net | 100,000 | 0 | 0 | ||||||||||||||||
Total costs and expenses | 134,400,000 | 110,200,000 | 100,400,000 | ||||||||||||||||
Operating (loss) income | 3,700,000 | 5,500,000 | 3,000,000 | ||||||||||||||||
Interest expense | 0 | 0 | 0 | ||||||||||||||||
Other expense: | |||||||||||||||||||
Other income, net | 100,000 | 700,000 | 0 | ||||||||||||||||
(Loss) income before income taxes | 3,800,000 | 6,200,000 | 3,000,000 | ||||||||||||||||
Income tax provision | (1,700,000) | (1,900,000) | (600,000) | ||||||||||||||||
Earnings in equity of subsidiaries | 0 | 0 | 0 | ||||||||||||||||
Net income | 2,100,000 | 4,300,000 | 2,400,000 | ||||||||||||||||
Comprehensive income | 2,100,000 | 4,300,000 | 2,100,000 | ||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||
Net cash provided by operating activities | 7,400,000 | 8,800,000 | 9,200,000 | ||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||
Capital expenditures | (6,100,000) | (800,000) | (2,100,000) | ||||||||||||||||
Purchase of available for sale securities | 0 | 0 | 0 | ||||||||||||||||
Payments to Acquire Available-for-sale Securities, Equity | 0 | ||||||||||||||||||
Proceeds from disposition of available for sale securities | 0 | 0 | 0 | ||||||||||||||||
Cash payment for acquisition of Imperial Machine & Tool Co., net of cash received | 0 | ||||||||||||||||||
Proceeds from disposal of property, plant and equipment | 0 | 0 | |||||||||||||||||
Intercompany loans receivable | (1,000,000) | (7,600,000) | (1,300,000) | ||||||||||||||||
Net cash provided by (used in) investing activities | (7,100,000) | (8,400,000) | (3,400,000) | ||||||||||||||||
Repayment of principal and redemption premium of 8.25% Senior Notes | 0 | ||||||||||||||||||
Issuance of 5.875% Senior Notes | 0 | ||||||||||||||||||
Cash paid for debt issuance costs | 0 | ||||||||||||||||||
Proceeds from stock option exercises | 0 | ||||||||||||||||||
Repayment of capital lease | 0 | 0 | |||||||||||||||||
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | 0 | 0 | 0 | ||||||||||||||||
Repurchase of common stock | 0 | 0 | 0 | ||||||||||||||||
Cash dividends and dividend equivalents paid | 0 | 0 | 0 | ||||||||||||||||
Payments of Dividends | 0 | ||||||||||||||||||
Cash dividends paid to Parent | 0 | ||||||||||||||||||
Intercompany loans payable1 | 0 | 0 | (3,900,000) | ||||||||||||||||
Net cash (used in) provided by financing activities | 0 | 0 | (3,900,000) | ||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash during the period | 300,000 | 400,000 | 1,900,000 | ||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | $ 3,000,000 | $ 2,600,000 | 3,000,000 | 2,600,000 | 700,000 | ||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ 3,300,000 | $ 3,000,000 | $ 3,300,000 | $ 3,000,000 | $ 2,600,000 | ||||||||||||||
Senior Notes | Senior Notes Due 2024 | |||||||||||||||||||
Condensed Financial Statements [Line Items] | |||||||||||||||||||
Principal amount of notes | $ 375,000,000 | ||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.875% | ||||||||||||||||||
Senior Notes | Senior Notes Due 2020 | |||||||||||||||||||
Condensed Financial Statements [Line Items] | |||||||||||||||||||
Principal amount of notes | $ 225,000,000 | ||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.25% | ||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Long-term debt | $ 197,800,000 | ||||||||||||||||||
[1] | See Note 7 for discussion of our adoption of ASU 2017-12 (as defined in Note 1 | ||||||||||||||||||
[2] | See Note 1 for discussion of our adoption of ASU 2017-07 (as defined in Note 1 ) and the related reclassification of amounts previously presented in the Statements of Consolidated Income within Selling, general, administrative, research and development and now included within Other expense, net. | ||||||||||||||||||
[3] | See Note 11 | ||||||||||||||||||
[4] | See Note 15 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Revenues | $ 389.4 | $ 393.1 | $ 415.4 | $ 388 | $ 353.1 | $ 332.8 | $ 356.3 | $ 355.3 | $ 1,585.9 | $ 1,397.5 | $ 1,330.6 | |||
Goodwill impairment | 18.4 | 0 | 18.4 | 0 | ||||||||||
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Provisional Income Tax Expense (Benefit) | (37.2) | |||||||||||||
Cost of Goods and Services Sold | 317.3 | 323.3 | 343.4 | 316.7 | 277.2 | 256.4 | 289.6 | 262.7 | 1,300.7 | [1] | 1,085.9 | [1] | 1,000.8 | [1] |
Lower of cost or market inventory write-down | 0 | 0 | 4.9 | |||||||||||
Gross Profit | 72.1 | 69.8 | 72 | 71.3 | 75.9 | 76.4 | 66.7 | 92.6 | ||||||
Operating income | 36.9 | 34.9 | 34.7 | 37.1 | 41.9 | 41.5 | 12.5 | 59.3 | 143.6 | 155.2 | 181.1 | |||
Net income (loss) | $ 23.6 | $ 21.7 | $ 20.7 | $ 25.7 | $ (15.2) | $ 19.9 | $ 4.7 | $ 36 | $ 91.7 | $ 45.4 | $ 91.7 | |||
Net income per common share: | ||||||||||||||
Basic (in dollars per share) | $ 1.44 | $ 1.31 | $ 1.24 | $ 1.54 | $ (0.90) | $ 1.18 | $ 0.28 | $ 2.07 | $ 5.53 | $ 2.67 | $ 5.15 | |||
Net Income (loss) per common share, Diluted: | ||||||||||||||
Diluted (in dollars per share) | 1.41 | 1.29 | 1.22 | 1.51 | (0.90) | 1.16 | 0.27 | 2.04 | 5.43 | 2.63 | 5.09 | |||
Dividends declared per common share (in dollars per share) | $ 0.55 | $ 0.55 | $ 0.55 | $ 0.55 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 2.20 | $ 2 | $ 1.80 | |||
[1] | See Note 7 for discussion of our adoption of ASU 2017-12 (as defined in Note 1 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 15, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Subsequent Event [Line Items] | ||||||||||||
Dividends declared per common share (in dollars per share) | $ 0.55 | $ 0.55 | $ 0.55 | $ 0.55 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 2.20 | $ 2 | $ 1.80 | |
Subsequent Event | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Dividends declared per common share (in dollars per share) | $ 0.60 | |||||||||||
Dividends | $ 9.8 |
Uncategorized Items - kalu-1231
Label | Element | Value | |
Restatement Adjustment [Member] | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 775,100,000 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 756,600,000 | |
AOCI Attributable to Parent [Member] | Restatement Adjustment [Member] | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (37,100,000) | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (31,700,000) | |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | 900,000 | |
Common Stock [Member] | Restatement Adjustment [Member] | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 200,000 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 200,000 | |
Common Stock, Shares, Outstanding | us-gaap_CommonStockSharesOutstanding | 16,773,586 | |
Common Stock, Shares, Outstanding | us-gaap_CommonStockSharesOutstanding | 18,053,747 | |
Retained Earnings [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (100,000) | |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 10,700,000 | [1] |
Retained Earnings [Member] | Restatement Adjustment [Member] | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 15,800,000 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 96,200,000 | |
Additional Paid-in Capital [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 800,000 | |
Additional Paid-in Capital [Member] | Restatement Adjustment [Member] | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 1,055,900,000 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 1,037,300,000 | |
Treasury Stock [Member] | Restatement Adjustment [Member] | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (246,500,000) | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ (358,600,000) | |
[1] | See Note 1 for discussion of our adoption of ASC 606 and ASU 2016-01 (as defined in Note 1 |