Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 22, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | Kaiser Aluminum Corp | |
Entity Central Index Key | 0000811596 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 16,123,168 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 115.3 | $ 125.6 |
Short-term investments | 22.3 | 36.7 |
Receivables: | ||
Trade receivables, net | 195.8 | 179.8 |
Other | 22.4 | 25.6 |
Contract assets | 58.4 | 54.9 |
Inventories | 233.9 | 215.1 |
Prepaid expenses and other current assets | 23 | 18.9 |
Total current assets | 671.1 | 656.6 |
Property, plant and equipment, net | 610.9 | 611.8 |
Operating lease assets | 27.4 | 0 |
Deferred tax assets, net | 22.4 | 35.9 |
Intangible assets, net | 31.7 | 32.4 |
Goodwill | 44 | 44 |
Other assets | 40.3 | 38.6 |
Total | 1,447.8 | 1,419.3 |
Current liabilities: | ||
Accounts payable | 124.4 | 121.4 |
Accrued salaries, wages and related expenses | 28.2 | 40.1 |
Other accrued liabilities | 51.6 | 44 |
Total current liabilities | 204.2 | 205.5 |
Long-term portion of operating lease liabilities | 26.6 | 0 |
Net liabilities of Salaried VEBA | 32.5 | 32.4 |
Deferred tax liabilities | 4.2 | 4.2 |
Long-term liabilities | 61.8 | 66.4 |
Long-term debt | 370.6 | 370.4 |
Total liabilities | 699.9 | 678.9 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, 5,000,000 shares authorized at both March 31, 2019 and December 31, 2018; no shares were issued and outstanding at March 31, 2019 and December 31, 2018 | 0 | 0 |
Common stock, par value $0.01, 90,000,000 shares authorized at both March 31, 2019 and at December 31, 2018; 22,547,626 shares issued and 16,134,547 shares outstanding at March 31, 2019; 22,471,705 shares issued and 16,234,603 shares outstanding at December 31, 2018 | 0.2 | 0.2 |
Additional paid in capital | 1,056.7 | 1,059.3 |
Retained earnings | 168 | 150.2 |
Treasury stock, at cost, 6,413,079 shares at March 31, 2019 and 6,237,102 shares at December 31, 2018, respectively | (437.9) | (420.5) |
Accumulated other comprehensive loss | (39.1) | (48.8) |
Total stockholders' equity | 747.9 | 740.4 |
Total | $ 1,447.8 | $ 1,419.3 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Stockholders' equity: | ||
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common Stock, shares issued | 22,547,626 | 22,471,705 |
Common stock, shares outstanding | 16,134,547 | 16,234,603 |
Treasury stock, shares | 6,413,079 | 6,237,102 |
Statements of Consolidated Inco
Statements of Consolidated Income (Unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Revenues | $ 395.2 | $ 388 |
Costs and expenses: | ||
Cost of products sold, excluding depreciation and amortization and other items | 315.1 | 316.7 |
Depreciation and amortization | 11.9 | 10.5 |
Selling, general, administrative, research and development | 25.2 | 23.6 |
Other operating charges, net | 0 | 0.1 |
Total costs and expenses | 352.2 | 350.9 |
Operating income | 43 | 37.1 |
Other income (expense): | ||
Interest expense | (5.7) | (5.6) |
Other income, net | 0.5 | 0.1 |
Income before income taxes | 37.8 | 31.6 |
Income tax provision | (9.8) | (5.9) |
Net income | $ 28 | $ 25.7 |
Net income per common share: | ||
Basic (in dollars per share) | $ 1.74 | $ 1.54 |
Diluted (in dollars per share) | $ 1.71 | $ 1.51 |
Weighted-average number of common shares outstanding (in thousands): | ||
Basic (shares) | 16,108 | 16,707 |
Diluted (shares) | 16,372 | 17,031 |
Statements of Consolidated Comp
Statements of Consolidated Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 28 | $ 25.7 |
Other Comprehensive Income (Loss), Net of Tax | ||
Defined benefit pension plan and Salaried VEBA | 1.1 | 1.2 |
Available for sale securities | (0.2) | (0.2) |
Cash flow hedges | 8.8 | (9.3) |
Other comprehensive income (loss), net of tax | 9.7 | (8.3) |
Comprehensive income | $ 37.7 | $ 17.4 |
Statement of Consolidated Stock
Statement of Consolidated Stockholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Additional Paid in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | |
Stockholders' Equity [Roll Forward] | |||||||
Cumulative-effect adjustment | $ 10.1 | $ 10.5 | $ 0 | $ (0.4) | |||
Adjusted balance | 756.4 | $ 0.2 | $ 1,055.9 | 96 | (358.6) | (37.1) | |
Beginning balance (shares) at Dec. 31, 2017 | 16,773,586 | ||||||
Beginning balance at Dec. 31, 2017 | 746.3 | $ 0.2 | 1,055.9 | 85.5 | (358.6) | (36.7) | |
Stockholders' Equity [Roll Forward] | |||||||
Net income | 25.7 | 25.7 | |||||
Other comprehensive income, net of tax | (8.3) | (8.3) | |||||
Issuance of common shares to employees upon vesting of restricted stock units and performance shares (shares) | 135,134 | ||||||
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares (shares) | (68,029) | ||||||
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | $ (6.9) | (6.9) | |||||
Repurchase of common stock (shares) | (58,155) | (58,155) | |||||
Repurchase of common stock | $ (6.1) | (6.1) | |||||
Cash dividends on common stock and restricted shares and dividend equivalents on restricted stock units and performance shares1 | [1] | (10) | (10) | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 2.8 | 2.8 | |||||
Ending balance (shares) at Mar. 31, 2018 | 16,782,536 | ||||||
Ending balance at Mar. 31, 2018 | $ 753.6 | $ 0.2 | 1,051.8 | 111.7 | (364.7) | (45.4) | |
Stockholders' Equity [Roll Forward] | |||||||
Cash dividends declared (in dollars per share) | $ 0.55 | ||||||
Beginning balance (shares) at Dec. 31, 2018 | 16,234,603 | 16,234,603 | |||||
Beginning balance at Dec. 31, 2018 | $ 740.4 | $ 0.2 | 1,059.3 | 150.2 | (420.5) | (48.8) | |
Stockholders' Equity [Roll Forward] | |||||||
Net income | 28 | 28 | |||||
Other comprehensive income, net of tax | 9.7 | 9.7 | |||||
Issuance of common shares to employees upon vesting of restricted stock units and performance shares (shares) | 122,309 | ||||||
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares (shares) | (46,388) | ||||||
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | $ (5) | (5) | |||||
Repurchase of common stock (shares) | (175,977) | (175,977) | |||||
Repurchase of common stock | $ (17.4) | (17.4) | |||||
Cash dividends on common stock and restricted shares and dividend equivalents on restricted stock units and performance shares1 | [2] | (10.2) | (10.2) | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | $ 2.4 | 2.4 | |||||
Ending balance (shares) at Mar. 31, 2019 | 16,134,547 | 16,134,547 | |||||
Ending balance at Mar. 31, 2019 | $ 747.9 | $ 0.2 | $ 1,056.7 | $ 168 | $ (437.9) | $ (39.1) | |
Stockholders' Equity [Roll Forward] | |||||||
Cash dividends declared (in dollars per share) | $ 0.60 | ||||||
[1] | Dividends declared per common share were $0.55 during the quarter ended March 31, 2018 | ||||||
[2] | Dividends declared per common share were $0.60 during the quarter ended March 31, 2019 |
Statement of Consolidated Cash
Statement of Consolidated Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Cash flows from operating activities: | |||
Net income | $ 28 | $ 25.7 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation of property, plant and equipment | 11.2 | 10.1 | |
Amortization of definite-lived intangible assets | 0.7 | 0.4 | |
Amortization of debt discount and debt issuance costs | 0.3 | 0.3 | |
Deferred income taxes | 10.4 | 7.9 | |
Non-cash equity compensation | 2.4 | 2.8 | |
Gain on disposition of available for sale securities | (0.3) | (1.1) | |
Non-cash asset impairment charge | 0 | 0.1 | |
Other non-cash changes in assets and liabilities | 3.6 | 8.1 | |
Changes in operating assets and liabilities: | |||
Trade and other receivables | (12.8) | (23) | |
Contract assets | (3.5) | (1.9) | |
Inventories | (18.8) | (9.6) | |
Prepaid expenses and other current assets | (3.4) | (2.2) | |
Accounts payable | 7.4 | 32 | |
Accrued liabilities | (0.4) | (7.3) | |
Annual variable cash contributions to VEBAs | (2.1) | (15.7) | |
Long-term assets and liabilities, net | 0.1 | (0.5) | |
Net cash provided by (used in) operating activities | 22.8 | 26.1 | |
Cash flows from investing activities | |||
Capital expenditures | (13.6) | (19.7) | |
Purchase of available for sale securities | (18.1) | 0 | |
Proceeds from disposition of property, plant and equipment | 32.7 | 100.3 | |
Net cash provided by investing activities | [1] | 1 | 80.6 |
Cash flows from financing activities | |||
Repayment of finance lease | (0.3) | (0.2) | |
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | (5) | (6.9) | |
Repurchase of common stock | (18.5) | (5.7) | |
Cash dividends and dividend equivalents paid | (10.2) | (10) | |
Net cash used in financing activities | [1] | (34) | (22.8) |
Net increase in cash, cash equivalents and restricted cash during the period | (10.2) | 83.9 | |
Cash, cash equivalents and restricted cash at beginning of period | 139.6 | 64.3 | |
Cash, cash equivalents and restricted cash at end of period | $ 129.4 | $ 148.2 | |
[1] | See Note 12 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies This Quarterly Report on Form 10-Q (this "Report") should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2018 . Unless the context otherwise requires, references in these notes to interim consolidated financial statements - unaudited to "Kaiser Aluminum Corporation," "we," "us," "our," "the Company" and "our Company" refer collectively to Kaiser Aluminum Corporation and its subsidiaries. Organization and Nature of Operations. Kaiser Aluminum Corporation specializes in the production of semi-fabricated specialty aluminum 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 13 for additional information regarding our business, product and geographical area information and concentration of risk. Principles of Consolidation and Basis of Presentation. The accompanying unaudited consolidated financial statements include the accounts of our wholly owned subsidiaries and are prepared in accordance with United States generally accepted accounting principles ("GAAP") and the rules and regulations of the Securities and Exchange Commission ("SEC") applicable for interim periods and, therefore, do not include all information and footnotes required by GAAP for complete financial statements. In management's opinion, all adjustments (which include normal recurring adjustments) considered necessary for a fair presentation have been included. The results of operations for our interim periods are not necessarily indicative of the results of operations that may be achieved for the entire 2019 fiscal year. The financial information as of December 31, 2018 is derived from our audited consolidated financial statements and footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2018 . 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 ). Additionally, we measure at fair value once each year at December 31 our Canadian defined benefit pension plan and the plan assets of the Salaried VEBA (defined in Note 4 ). We record our remaining financial assets and liabilities at carrying value. For a majority of our non-financial assets and liabilities, which include goodwill, intangible 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 (or at least annually for goodwill), 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. None of our non-financial assets and liabilities subject to fair value assessments on a non-recurring basis required a material adjustment to the carrying amount of such assets and liabilities for the quarter ended March 31, 2019 . Inventories. Inventories are stated at the lower of cost or market value. Finished products, work-in-process and raw material inventories are stated on the last-in, first-out ("LIFO") basis. At March 31, 2019 and December 31, 2018 , the current cost of our inventory exceeded its stated LIFO value by $17.2 million and $31.7 million , respectively. 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 $0.5 million during each of the quarters ended March 31, 2019 and March 31, 2018 , respectively. Depreciation is computed using the straight-line method at rates based on the estimated useful lives of the various classes of assets. Finance 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. 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 5 ). 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. Our aluminum and energy derivatives qualify for hedge (deferral) accounting and, as such, we designate 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 income, net of tax, and reclassified to Cost of products sold, excluding depreciation and amortization and other items ("COGS") when such hedges settle (see Note 5 ). 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 $28.1 million and $27.6 million as of March 31, 2019 and December 31, 2018 , respectively. However, we accounted for our workers' compensation accrued liabilities on a discounted basis (see Note 2 ), using a discount rate of 2.50% and 3.00% at March 31, 2019 and December 31, 2018 , respectively. Accrued liabilities for employee healthcare benefits, which are estimates of unpaid incurred medical and prescription drug costs as provided by our healthcare administrators, were $3.4 million and $3.6 million as of March 31, 2019 and December 31, 2018 , respectively. 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 March 31, 2019 , we had a liability of $3.9 million recorded within Accrued salaries, wages and related expenses for estimated probable future payments relating to the three month performance period of our 2019 STI Plan. Long-Term Incentive Programs. 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 approved by stockholders on May 26, 2016 ("2016 Plan"). At March 31, 2019 , 503,379 shares were available for awards under the 2016 Plan. We issue new shares of our common stock upon vesting under the 2016 Plan. Adoption of New Accounting Pronouncements 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 (with amendments issued in 2018) and requires lessees 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 operating leases under the previous guidance) while finance leases will result in a front-loaded expense pattern (similar to capital leases under the previous guidance). We adopted ASU 2016-02 and its subsequent amendments (together "ASC 842") during the quarter ended March 31, 2019 using the transition approach provided for under ASU No. 2018-11, Leases (Topic 842): Targeted Improvements , which allowed us to apply the new lease standard as of January 1, 2019, rather than the beginning of the earliest period presented. We elected the package of practical expedients, which permitted us to: (i) not reassess whether any of our contracts contained leases; (ii) carry forward the historical lease classification of our existing leases; and (iii) not reassess initial direct costs for our existing leases. We did not elect to apply the hindsight practical expedient when determining lease term and assessing impairment of right-of-use assets. Due to our adoption of ASC 842, we recorded an operating lease right-of-use asset of $29.0 million , a current operating lease liability of $4.1 million and a long-term operating lease liability of $27.4 million on our Consolidated Balance Sheets as of January 1, 2019. There was no cumulative-effect adjustment to Retained earnings required. The standard did not materially impact our consolidated net earnings and had no impact on cash flows. Comparative information in this Report has not been adjusted and continues to be reported under the previous lease accounting rules. See Note 3 for details of the significant changes and quantitative impacts of the changes, as well as other required disclosures related to our adoption of ASC 842. There were no material impacts on our consolidated financial statements resulting from our adoption in the quarter ended March 31, 2019 of: (i) ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting and (ii) ASU No. 2018-08, Not-for-Profit Entities (Topic 958): Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made. Accounting Pronouncements Issued But Not Yet Adopted 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 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information March 31, 2019 December 31, 2018 (In millions of dollars) Cash and Cash Equivalents Cash and money market funds $ 29.3 $ 22.9 Commercial paper 86.0 102.7 Total $ 115.3 $ 125.6 Trade Receivables, Net Billed trade receivables $ 196.6 $ 179.5 Unbilled trade receivables — 1.1 Trade receivables, gross 196.6 180.6 Allowance for doubtful receivables (0.8 ) (0.8 ) Trade receivables, net $ 195.8 $ 179.8 Inventories Finished products $ 47.1 $ 48.0 Work-in-process 104.9 85.6 Raw materials 74.8 75.0 Operating supplies 7.1 6.5 Total $ 233.9 $ 215.1 Property, Plant and Equipment, Net Land and improvements $ 21.4 $ 21.4 Buildings and leasehold improvements 97.8 97.0 Machinery and equipment 766.9 755.6 Construction in progress 41.8 43.6 Property, plant and equipment, gross 927.9 917.6 Accumulated depreciation (318.6 ) (307.4 ) Assets held for sale 1.6 1.6 Property, plant and equipment, net $ 610.9 $ 611.8 Other Accrued Liabilities Uncleared cash disbursements $ 6.6 $ 4.8 Accrued income taxes and taxes payable 9.9 6.5 Accrued annual contribution to Salaried VEBA — 2.1 Accrued interest 8.4 2.9 Other – Note 5 26.7 27.7 Total $ 51.6 $ 44.0 March 31, 2019 December 31, 2018 (In millions of dollars) Long-Term Liabilities Workers' compensation accruals $ 25.5 $ 24.6 Long-term environmental accrual – Note 7 13.1 14.3 Other long-term liabilities 23.2 27.5 Total $ 61.8 $ 66.4 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases We determine if an agreement is a lease at inception. We have operating and finance leases for equipment and real estate that primarily have fixed lease payments. Our leases have remaining lease terms of one year to 15 years , some of which may include options to extend the lease for up to 20 years , and some of which may include options to terminate the lease within one year . None of our options to extend or terminate are reasonably certain of being exercised, and are therefore not included in our determination of lease assets and liabilities. Short-term leases with an initial term of 12 months or less are not recorded in our Consolidated Balance Sheets. As most of our leases do not provide an implicit rate, we use information available at the lease commencement date in determining an incremental borrowing rate when calculating our operating lease assets and operating lease liabilities. In determining the inputs to the incremental borrowing rate calculation, we make judgments about the value of the leased asset, our credit rating and the lease term including the probability of our exercising options to extend or terminate the underlying lease. Additionally, we make judgments around contractual asset substitution rights in determining whether a contract contains a lease. We have lease agreements with lease and non-lease components, which are generally accounted for separately. These non-lease components include items such as common area maintenance, taxes and insurance for our real estate leases, as well as maintenance charges related to our equipment leases. We have applied the practical expedient within ASU 2016-02 to not separate lease and non-lease components to only our embedded supply system equipment leases and have therefore accounted for both lease and non-lease components in determining the lease assets and liabilities. Many of our equipment leases contain clauses that require us to return the equipment with certain functionality intact. We account for these costs as residual value guarantees when the guarantee becomes probable of being owed. Our lease agreements do not contain any material restrictive covenants. The following table presents lease terms and discount rates as of March 31, 2019 : Finance Leases Operating Leases Weighted-average lease term (in years): 6.1 10.9 Weighted-average discount rate: 4.7 % 5.8 % The following table summarizes the classification of lease assets and lease liabilities in our Consolidated Balance Sheet at March 31, 2019 (in millions of dollars): Leases Classification March 31, 2019 Assets Operating lease assets Operating lease assets $ 27.4 Finance lease assets Property, plant and equipment, net 6.7 Total lease assets $ 34.1 Liabilities Current: Operating lease liabilities Other accrued liabilities $ 3.5 Finance lease liabilities Other accrued liabilities 1.3 Non-current: Operating lease liabilities Long-term portion of operating lease liabilities 26.6 Finance lease liabilities Long-term liabilities 5.4 Total lease liabilities $ 36.8 The following table summarizes the components of lease cost in our Statements of Consolidated Income during the quarter ended March 31, 2019 (in millions of dollars): Lease Cost Quarter Ended March 31, 2019 Operating lease cost $ 2.0 Short-term lease cost 0.3 Finance lease cost: Amortization of leased assets 0.4 Interest on lease liabilities 0.1 Total lease cost $ 2.8 The following table presents the maturity of our lease liabilities as of March 31, 2019 (in millions of dollars): Maturity of Lease Liabilities Finance Leases Operating Leases Remainder of 2019 $ 1.2 $ 3.7 2020 1.4 4.7 2021 1.2 4.1 2022 1.1 3.6 2023 1.0 3.4 2024 0.6 3.3 2025 and thereafter 1.2 18.7 Total minimum lease payments $ 7.7 $ 41.5 Less: interest (1.0 ) (11.4 ) Present value $ 6.7 $ 30.1 The following table presents minimum rental commitments at December 31, 2018 (in millions of dollars): Year Ended December 31, Finance 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 finance 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 finance leases and the accumulated amortization thereon were $8.3 million and $1.3 million |
Leases | Leases We determine if an agreement is a lease at inception. We have operating and finance leases for equipment and real estate that primarily have fixed lease payments. Our leases have remaining lease terms of one year to 15 years , some of which may include options to extend the lease for up to 20 years , and some of which may include options to terminate the lease within one year . None of our options to extend or terminate are reasonably certain of being exercised, and are therefore not included in our determination of lease assets and liabilities. Short-term leases with an initial term of 12 months or less are not recorded in our Consolidated Balance Sheets. As most of our leases do not provide an implicit rate, we use information available at the lease commencement date in determining an incremental borrowing rate when calculating our operating lease assets and operating lease liabilities. In determining the inputs to the incremental borrowing rate calculation, we make judgments about the value of the leased asset, our credit rating and the lease term including the probability of our exercising options to extend or terminate the underlying lease. Additionally, we make judgments around contractual asset substitution rights in determining whether a contract contains a lease. We have lease agreements with lease and non-lease components, which are generally accounted for separately. These non-lease components include items such as common area maintenance, taxes and insurance for our real estate leases, as well as maintenance charges related to our equipment leases. We have applied the practical expedient within ASU 2016-02 to not separate lease and non-lease components to only our embedded supply system equipment leases and have therefore accounted for both lease and non-lease components in determining the lease assets and liabilities. Many of our equipment leases contain clauses that require us to return the equipment with certain functionality intact. We account for these costs as residual value guarantees when the guarantee becomes probable of being owed. Our lease agreements do not contain any material restrictive covenants. The following table presents lease terms and discount rates as of March 31, 2019 : Finance Leases Operating Leases Weighted-average lease term (in years): 6.1 10.9 Weighted-average discount rate: 4.7 % 5.8 % The following table summarizes the classification of lease assets and lease liabilities in our Consolidated Balance Sheet at March 31, 2019 (in millions of dollars): Leases Classification March 31, 2019 Assets Operating lease assets Operating lease assets $ 27.4 Finance lease assets Property, plant and equipment, net 6.7 Total lease assets $ 34.1 Liabilities Current: Operating lease liabilities Other accrued liabilities $ 3.5 Finance lease liabilities Other accrued liabilities 1.3 Non-current: Operating lease liabilities Long-term portion of operating lease liabilities 26.6 Finance lease liabilities Long-term liabilities 5.4 Total lease liabilities $ 36.8 The following table summarizes the components of lease cost in our Statements of Consolidated Income during the quarter ended March 31, 2019 (in millions of dollars): Lease Cost Quarter Ended March 31, 2019 Operating lease cost $ 2.0 Short-term lease cost 0.3 Finance lease cost: Amortization of leased assets 0.4 Interest on lease liabilities 0.1 Total lease cost $ 2.8 The following table presents the maturity of our lease liabilities as of March 31, 2019 (in millions of dollars): Maturity of Lease Liabilities Finance Leases Operating Leases Remainder of 2019 $ 1.2 $ 3.7 2020 1.4 4.7 2021 1.2 4.1 2022 1.1 3.6 2023 1.0 3.4 2024 0.6 3.3 2025 and thereafter 1.2 18.7 Total minimum lease payments $ 7.7 $ 41.5 Less: interest (1.0 ) (11.4 ) Present value $ 6.7 $ 30.1 The following table presents minimum rental commitments at December 31, 2018 (in millions of dollars): Year Ended December 31, Finance 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 finance 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 finance leases and the accumulated amortization thereon were $8.3 million and $1.3 million |
Employee Benefits
Employee Benefits | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Employee Benefits Pension and Similar Benefit Plans. We provide contributions to: (i) defined contribution 401(k) savings plans for salaried employees and certain hourly employees; (ii) a non-qualified, unfunded, unsecured plan of deferred compensation (see " Deferred Compensation Plan " below); (iii) multi-employer pension plans sponsored by the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO, CLC, the International Association of Machinists and certain other unions at certain of our production facilities; and (iv) a defined benefit pension plan for salaried employees at our London, Ontario (Canada) facility. Deferred Compensation Plan . We have 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. 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 and are accounted for as equity investments with changes in fair value recorded within Other income, net. During the quarter ended March 31, 2019 , we recognized a $0.5 million gain on equity securities still held at March 31, 2019 related to our deferred compensation plan. For the quarter ended March 31, 2018 , the corresponding amount was immaterial. Assets of our deferred compensation plan are classified within Level 2 of the fair value hierarchy and are measured and recorded at fair value based on their quoted market prices. The fair value of these assets at March 31, 2019 and December 31, 2018 was $11.0 million and $9.8 million , respectively, and are included in Other assets. Offsetting liabilities relating to the deferred compensation plan are included in Other accrued liabilities and Long-term liabilities. 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 annual variable cash contributions up to a maximum of $2.9 million to the Salaried VEBA. We paid $2.1 million with respect to 2018 during the quarter ended March 31, 2019. 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. 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. The following tables present the total expense related to all benefit plans for the periods presented (in millions of dollars): Quarter Ended March 31, 2019 2018 Defined contribution plans 1 $ 3.9 $ 4.3 Deferred compensation plan 1 0.7 0.1 Multiemployer pension plans 1 1.2 1.2 Net periodic postretirement benefit cost relating to Salaried VEBA 2 1.7 1.5 Total $ 7.5 $ 7.1 ____________________ 1 Substantially all of the expense related to employee benefits are in COGS with the remaining balance in Selling, general, administrative, research and development ("SG&A and R&D"). 2 The current service cost component of Net periodic postretirement benefit cost relating to Salaried VEBA is included within our Statements of Consolidated Income in SG&A and R&D for all periods presented. All other components of Net periodic postretirement benefit cost relating to Salaried VEBA are included within Other income, net in our Statements of Consolidated Income. Components of Net Periodic Benefit Cost. Our results of operations included the following impacts associated with our Canadian pension plan and the Salaried VEBA: (i) a charge for service rendered by employees; (ii) a charge for accretion of interest; (iii) a benefit for the return on plan assets; and (iv) amortization of prior service costs associated with plan amendments, net gains or losses on assets and actuarial differences. Net periodic benefit cost related to our Canadian pension plan was not material for the quarters ended March 31, 2019 and March 31, 2018 . The following table presents the components of Net periodic postretirement benefit cost relating to Salaried VEBA for the periods presented (in millions of dollars): Quarter Ended March 31, 2019 2018 Salaried VEBA 1 : Interest cost $ 0.8 $ 0.7 Expected return on plan assets (0.6 ) (0.7 ) Amortization of prior service cost 2 1.4 1.3 Amortization of net actuarial loss 0.1 0.2 Total net periodic postretirement benefit cost relating to Salaried VEBA $ 1.7 $ 1.5 ____________________ 1 The service cost was insignificant for all periods presented. 2 |
Derivatives, Hedging Programs a
Derivatives, Hedging Programs and Other Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
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 and (ii) energy price risk relating to fluctuating prices of natural gas and electricity used in our production processes. 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 $6.0 million and $12.6 million at March 31, 2019 and December 31, 2018 , 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. We had $0.2 million cash collateral posted from our customers as of December 31, 2018 . Cash collateral posted from our customers as of March 31, 2019 was immaterial. For more information about concentration risks concerning customers and suppliers, see Note 13 . 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 March 31, 2019 : Aluminum Maturity Period (month/year) Notional Amount of Contracts (mmlbs) Fixed price purchase contracts 4/19 through 12/21 117.1 Fixed price sales contracts 4/19 through 11/19 0.5 Midwest premium swap contracts 1 4/19 through 12/21 89.4 Alloying Metals Maturity Period (month/year) Notional Amount of Contracts (mmlbs) Fixed price purchase contracts 4/19 through 12/20 10.5 Natural Gas 2 Maturity Period (month/year) Notional Amount of Contracts (mmbtu) Fixed price purchase contracts 4/19 through 12/24 8,530,000 Electricity 3 Maturity Period (month/year) Notional Amount of Contracts (Mwh) Fixed price purchase contracts 1/20 through 12/21 307,080 ____________________ 1 Regional premiums represent the premium over the London Metal Exchange price for primary aluminum which is incurred on our purchases of primary aluminum. 2 As of March 31, 2019 , we had derivative and/or physical delivery commitments with energy companies in place to cover exposure to fluctuations in prices for approximately 69% of the expected natural gas purchases for the remainder of 2019 , 66% of the expected natural gas purchases for both 2020 and 2021 , 37% of the expected natural gas purchases for both 2022 and 2023 and 31% of the expected natural gas purchases for 2024. 3 As of March 31, 2019 , we had derivative and/or physical delivery commitments with energy companies in place to cover exposure to fluctuations in prices for approximately 54% of our expected electricity purchases for both the remainder of 2019 and 2020 and 27% of our expected electricity purchases for 2021 . Loss (Gain) See Note 8 for the total amount of loss (gain) on derivative instruments designated and qualifying as cash flow hedging instruments that was reported in Accumulated other comprehensive income ("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 amount of loss (gain) included on our Statements of Consolidated Income (all within COGS) associated with all derivative contracts consisted of the following for each period presented (in millions of dollars): Quarter Ended March 31, 2019 2018 Total amounts of income and expense line items presented in our Statements of Consolidated Income in which the effects of hedges are recorded $ 315.1 $ 316.7 Loss (gain) recognized in income related to cash flow hedges: Aluminum $ 4.2 $ 0.3 Alloying metals 0.1 (0.4 ) Natural gas (0.1 ) — Total loss (gain) recognized in income $ 4.2 $ (0.1 ) 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 our Consolidated Balance Sheets. The following table presents the fair value of our derivative financial instruments as of the periods presented (in millions of dollars): March 31, 2019 December 31, 2018 Derivative Assets Derivative Liabilities Net Amount Derivative Assets Derivative Liabilities Net Amount Cash Flow Hedges: Aluminum – Fixed price purchase contracts $ 0.6 $ (7.9 ) $ (7.3 ) $ 0.1 $ (13.2 ) $ (13.1 ) Fixed price sales contracts — — — 0.1 — 0.1 Midwest premium swap contracts 2.8 (0.2 ) 2.6 3.2 (0.5 ) 2.7 Alloying Metals – Fixed price purchase contracts 0.9 (0.3 ) 0.6 — (1.7 ) (1.7 ) Natural gas – Fixed price purchase contracts 0.4 (0.8 ) (0.4 ) 0.2 (0.5 ) (0.3 ) Electricity – Fixed price purchase contracts 2.0 — 2.0 0.7 — 0.7 Total $ 6.7 $ (9.2 ) $ (2.5 ) $ 4.3 $ (15.9 ) $ (11.6 ) The following table presents the balance sheet location of derivative assets and liabilities as of the periods presented (in millions of dollars): March 31, 2019 December 31, 2018 Assets: Prepaid expenses and other current assets $ 4.1 $ 3.4 Other assets 2.6 0.9 Total assets $ 6.7 $ 4.3 Liabilities: Other accrued liabilities $ (8.1 ) $ (13.2 ) Long-term liabilities (1.1 ) (2.7 ) Total liabilities $ (9.2 ) $ (15.9 ) 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 March 31, 2019 , 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 March 31, 2019 and December 31, 2018 , 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 March 31, 2019 (in millions of dollars): Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 29.3 $ 86.0 $ — $ 115.3 Short-term investments — 22.3 — 22.3 Total $ 29.3 $ 108.3 $ — $ 137.6 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 All Other Financial Assets and Liabilities. |
Debt and Credit Facility
Debt and Credit Facility | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facility | Debt and Credit Facility Senior Notes In May 2016, we issued $375.0 million principal amount of 5.875% unsecured senior notes due May 15, 2024 ("Senior Notes") at 100% of the principal amount. The unamortized amount of debt issuance costs as of March 31, 2019 was $4.4 million . Interest expense, including amortization of debt issuance costs, relating to the Senior Notes was $5.7 million for each of the quarters ended March 31, 2019 and March 31, 2018 . A portion of the interest relating to the Senior Notes was capitalized as construction in progress. The effective interest rate of the Senior Notes is approximately 6.1% per annum, taking into account the amortization of debt issuance costs. The fair value of the outstanding Senior Notes, which are Level 1 liabilities, was approximately $387.1 million and $369.9 million at March 31, 2019 and December 31, 2018 , respectively. Revolving Credit Facility Our credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, and the other financial institutions party thereto ("Revolving Credit Facility") provides us with a $300.0 million funding commitment through December 2020. We had $300.0 million of borrowing availability under the Revolving Credit Facility at March 31, 2019 , based on the borrowing base determination then in effect. At March 31, 2019 , there were no borrowings under the Revolving Credit Facility and $8.0 million was being 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 March 31, 2019 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
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 5 and Note 6 ). 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 Spokane, Washington ("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, Ohio ("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 9 months . At March 31, 2019 , our environmental accrual of $17.1 million represented our estimate of the incremental remediation cost based on: (i) proposed alternatives in the final feasibility study related to the Trentwood facility; (ii) currently available facts with respect to our Newark facility; and (iii) facts related to certain other locations owned or formerly owned by us. In accordance with approved and proposed remediation action plans, we expect that the implementation and ongoing monitoring could occur over a period of 30 or more years. As additional facts are developed, feasibility studies are completed, 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. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table presents the changes in the accumulated balances for each component of AOCI for each period presented (in millions of dollars): Quarter Ended March 31, 2019 2018 Defined Benefit Pension Plan and Salaried VEBA: Beginning balance $ (35.6 ) $ (38.5 ) Amortization of net actuarial loss 1 0.1 0.2 Amortization of prior service cost 1 1.4 1.3 Less: income tax expense 2 (0.4 ) (0.3 ) Net amortization reclassified from AOCI to Net income 1.1 1.2 Other comprehensive income, net of tax 1.1 1.2 Ending balance $ (34.5 ) $ (37.3 ) Available for Sale Securities: Beginning balance $ 0.3 $ 0.9 Unrealized gain on available for sale securities 1.0 1.0 Less: income tax expense (0.3 ) (0.2 ) Net unrealized gain on available for sale securities 0.7 0.8 Reclassification of unrealized gain upon sale of available for sale securities 3 (1.2 ) (1.5 ) Less: income tax benefit 2 0.3 0.5 Net gain reclassified from AOCI to Net income (0.9 ) (1.0 ) Other comprehensive loss, net of tax (0.2 ) (0.2 ) Ending balance $ 0.1 $ 0.7 Cash Flow Hedges: Beginning balance $ (13.4 ) $ 0.5 Unrealized gain (loss) on cash flow hedges 7.4 (12.2 ) Less: income tax (expense) benefit (1.8 ) 3.0 Net unrealized gain (loss) on cash flow hedges 5.6 (9.2 ) Reclassification of unrealized loss (gain) upon settlement of cash flow hedges 4 4.2 (0.1 ) Less: income tax expense 2 (1.0 ) — Net loss (gain) reclassified from AOCI to Net income 3.2 (0.1 ) Other comprehensive income (loss), net of tax 8.8 (9.3 ) Ending balance $ (4.6 ) $ (8.8 ) Foreign Currency Translation: Beginning balance $ (0.1 ) $ — Other comprehensive income, net of tax — — Ending balance $ (0.1 ) $ — Total AOCI ending balance $ (39.1 ) $ (45.4 ) ____________________ 1 Amounts amortized out of AOCI relating to Salaried VEBA adjustments were included within Other income, 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 Amounts reclassified out of AOCI relating to sales of available for sale securities were included as a component of Other income, net. We use the specific identification method to determine the amount reclassified out of AOCI. 4 Amounts reclassified out of AOCI relating to cash flow hedges were included as a component of COGS. As of March 31, 2019 , we estimate a net mark-to-market loss before tax of $7.4 million |
Other Income, Net
Other Income, Net | 3 Months Ended |
Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other Income, Net | Other Income, Net Other income, net, consisted of the following for each period presented (in millions of dollars): Quarter Ended March 31, 2019 2018 Interest income $ 0.2 $ 0.1 Net periodic postretirement benefit cost relating to Salaried VEBA (1.6 ) (1.5 ) Realized gain on investments 1.2 1.6 All other income (expense), net 0.7 (0.1 ) Other income, net $ 0.5 $ 0.1 |
Income Tax Matters
Income Tax Matters | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Matters | Income Tax Matters The provision for in come taxes for each period presented consisted of the following (in millions of dollars): Quarter Ended March 31, 2019 2018 Domestic $ 9.5 $ 5.6 Foreign 0.3 0.3 Total $ 9.8 $ 5.9 The income tax provision for the quarters ended March 31, 2019 and March 31, 2018 was $9.8 million and $5.9 million , respectively, reflecting an effective tax rate of 26% and 19% , respectively. The difference between the effective tax rate and the projected blended statutory tax rate for the quarter ended March 31, 2019 was primarily due to: (i) an increase of $0.4 million ( 1% of taxable income) related to non-deductible compensation expense and (ii) an increase of $0.7 million ( 2% of taxable income) related to the valuation allowance for certain state net operating losses, partially offset by a decrease of $0.5 million ( 1% of taxable income) for the recognition of excess tax benefits from stock-based compensation. The difference between the effective tax rate and the projected blended statutory tax rate for the quarter ended March 31, 2018 was primarily due to: (i) a decrease of $1.8 million ( 6% of taxable income) for the recognition of excess tax benefits from stock-based compensation and (ii) a decrease of $0.8 million ( 3% of taxable income) related to the valuation allowance for certain state net operating losses, partially offset by an increase of $0.6 million ( 2% of taxable income) related to non-deductible compensation expense. Our gross unrecognized benefits relating to uncertain tax positions were $1.5 million at both March 31, 2019 and December 31, 2018 . If and when the gross unrecognized tax benefits are recognized, $0.4 million will be reflected in our income tax provision and thus affect the effective tax rate in future periods. We do not expect our gross unrecognized tax benefits to significantly change within the next 12 months |
Net Income Per Share and Stockh
Net Income Per Share and Stockholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
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 the quarters ended March 31, 2019 and March 31, 2018 , which in both periods 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): Quarter Ended March 31, 2019 2018 Numerator: Net income $ 28.0 $ 25.7 Denominator – Weighted-average common shares outstanding (in thousands): Basic 16,108 16,707 Add: dilutive effect of non-vested common shares, restricted stock units and performance shares 1 264 324 Diluted 16,372 17,031 Net income per common share, Basic: $ 1.74 $ 1.54 Net income per common share, Diluted: $ 1.71 $ 1.51 ____________________ 1 During the quarter ended March 31, 2019 a total of four thousand securities were excluded from the weighted-average diluted shares computation as their inclusion would have been anti-dilutive. There were no anti-dilutive securities during the quarter ended March 31, 2018 . Dividends . During the quarters ended March 31, 2019 and March 31, 2018 , we paid a total of approximately $10.2 million and $10.0 million , respectively, in cash dividends to stockholders, including the holders of restricted stock, and dividend equivalents to the holders of certain restricted stock units and performance shares. 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: Quarter Ended March 31, 2019 2018 Number of common shares repurchased 175,977 58,155 Weighted-average repurchase price (dollars per share) $ 98.55 $ 104.50 Total cost of repurchased common shares (in millions of dollars) $ 17.4 $ 6.1 At March 31, 2019 , $131.3 million remained 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 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Quarter Ended March 31, 2019 2018 (In millions of dollars) Interest paid $ 0.3 $ 0.3 Non-cash investing and financing activities (included in Accounts payable): Unpaid purchases of property and equipment $ 4.7 $ 5.2 Stock repurchases not yet settled $ 0.2 $ 0.5 Supplemental lease disclosures: Operating lease liabilities arising from obtaining operating lease assets $ 0.5 n/a Cash paid for amounts included in the measurement of operating lease liabilities $ 0.9 n/a March 31, 2019 March 31, 2018 (In millions of dollars) Components of cash, cash equivalents and restricted cash: Cash and cash equivalents $ 115.3 $ 135.0 Restricted cash included in Prepaid expenses and other current assets 1 0.3 0.3 Restricted cash included in Other assets 1 13.8 12.9 Total cash, cash equivalents and restricted cash shown in our Statements of Consolidated Cash Flows $ 129.4 $ 148.2 ____________________ 1 |
Business, Product and Geographi
Business, Product and Geographical Area Information and Concentration of Risk | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Business, Product and Geographical Area Information and Concentration of Risk | 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 September 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 the nine months ended September 30, 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 March 31, 2019 , approximately 62% of our employees were covered by collective bargaining agreements and approximately 1% of our employees were covered by collective bargaining agreements with expiration dates occurring within one year from March 31, 2019 . Net sales by end market applications and by timing of control transfer for each period presented were as follows (in millions of dollars): Quarter Ended March 31, 2019 2018 Net sales: Aero/HS products $ 198.5 $ 170.2 Automotive Extrusions 53.0 60.5 GE products 130.0 143.3 Other products 13.7 14.0 Total net sales $ 395.2 $ 388.0 Timing of revenue recognition: Products transferred at a point in time $ 131.8 $ 156.6 Products transferred over time 263.4 231.4 Total net sales $ 395.2 $ 388.0 Geographic information for income taxes paid for each period presented was as follows (in millions of dollars): Quarter Ended March 31, 2019 2018 Income taxes paid: Domestic $ 0.1 $ 0.2 Foreign 0.8 — Total income taxes paid $ 0.9 $ 0.2 Concentrations . For the quarter ended March 31, 2019 , one customer represented 24% and another represented 14% of Net sales. For the quarter ended March 31, 2018 , one customer represented 27% and another represented 13% of Net sales. At March 31, 2019 , one individual customer accounted for 29% and another individual customer accounted for 13% of the accounts receivable balance. One individual customer accounted for 31% and another individual customer accounted for 11% of the accounts receivable balance at December 31, 2018 . Information about primary aluminum supply from our major suppliers for each period presented was as follows: Quarter Ended March 31, 2019 2018 Percentage of total primary aluminum supply (lbs): Supply from our top five major suppliers 71 % 81 % Supply from our largest supplier 20 % 39 % Supply from our second and third largest suppliers combined 28 % 27 % |
Condensed Guarantor and Non-Gua
Condensed Guarantor and Non-Guarantor Financial Information | 3 Months Ended |
Mar. 31, 2019 | |
Guarantor and Non-Guarantor Financial Statement [Abstract] | |
Condensed 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 Senior Notes. The 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. 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 March 31, 2019 and December 31, 2018 , and for the quarters ended March 31, 2019 and March 31, 2018 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 our 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. CONDENSED CONSOLIDATING BALANCE SHEET (In millions of dollars) March 31, 2019 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 111.2 $ 4.1 $ — $ 115.3 Short-term investments — 22.3 — — 22.3 Receivables: Trade receivables, net — 190.3 5.5 — 195.8 Intercompany loans receivable 106.7 0.3 4.4 (111.4 ) — Other — 20.8 1.6 — 22.4 Contract assets — 53.8 4.6 — 58.4 Inventories — 220.0 13.9 — 233.9 Prepaid expenses and other current assets 0.1 22.5 0.4 — 23.0 Total current assets 106.8 641.2 34.5 (111.4 ) 671.1 Investments in and advances to subsidiaries 1,021.3 95.5 0.2 (1,117.0 ) — Property, plant and equipment, net — 576.9 34.0 — 610.9 Operating lease assets — 27.4 — — 27.4 Long-term intercompany loans receivable — — 7.2 (7.2 ) — Deferred tax assets, net — 19.4 — 3.0 22.4 Intangible assets, net — 23.2 8.5 — 31.7 Goodwill — 18.7 25.3 — 44.0 Other assets — 40.3 — — 40.3 Total $ 1,128.1 $ 1,442.6 $ 109.7 $ (1,232.6 ) $ 1,447.8 LIABILITIES AND STOCKHOLDERS ' EQUITY Current liabilities: Accounts payable $ 1.3 $ 115.6 $ 7.5 $ — $ 124.4 Intercompany loans payable — 111.3 0.1 (111.4 ) — Accrued salaries, wages and related expenses — 26.5 1.7 — 28.2 Other accrued liabilities 8.3 44.4 0.4 (1.5 ) 51.6 Total current liabilities 9.6 297.8 9.7 (112.9 ) 204.2 Long-term portion of operating lease liabilities — 26.6 — — 26.6 Net liabilities of Salaried VEBA — 32.5 — — 32.5 Deferred tax liabilities — — 4.2 — 4.2 Long-term intercompany loans payable — 7.2 — (7.2 ) — Long-term liabilities — 58.8 3.0 — 61.8 Long-term debt 370.6 — — — 370.6 Total liabilities 380.2 422.9 16.9 (120.1 ) 699.9 Total stockholders' equity 747.9 1,019.7 92.8 (1,112.5 ) 747.9 Total $ 1,128.1 $ 1,442.6 $ 109.7 $ (1,232.6 ) $ 1,447.8 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 STATEMENT OF COMPREHENSIVE INCOME (In millions of dollars) Quarter Ended March 31, 2019 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 385.7 $ 28.9 $ (19.4 ) $ 395.2 Costs and expenses: Cost of products sold, excluding depreciation and amortization and other items — 309.0 25.0 (18.9 ) 315.1 Depreciation and amortization — 10.9 1.0 — 11.9 Selling, general, administrative, research and development 1.1 22.2 2.4 (0.5 ) 25.2 Total costs and expenses 1.1 342.1 28.4 (19.4 ) 352.2 Operating (loss) income (1.1 ) 43.6 0.5 — 43.0 Other (expense) income: Interest expense (5.2 ) (0.6 ) — 0.1 (5.7 ) Other expense, net — 0.3 0.3 (0.1 ) 0.5 (Loss) income before income taxes (6.3 ) 43.3 0.8 — 37.8 Income tax provision — (11.0 ) (0.3 ) 1.5 (9.8 ) Earnings in equity of subsidiaries 34.3 0.5 — (34.8 ) — Net income $ 28.0 $ 32.8 $ 0.5 $ (33.3 ) $ 28.0 Comprehensive income $ 37.7 $ 42.5 $ 0.5 $ (43.0 ) $ 37.7 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (In millions of dollars) Quarter Ended March 31, 2018 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 377.9 $ 32.5 $ (22.4 ) $ 388.0 Costs and expenses: Cost of products sold, excluding depreciation and amortization and other items — 309.4 29.1 (21.8 ) 316.7 Depreciation and amortization — 9.9 0.6 — 10.5 Selling, general, administrative, research and development 1.1 21.3 1.9 (0.7 ) 23.6 Other operating charges, net — 0.1 — — 0.1 Total costs and expenses 1.1 340.7 31.6 (22.5 ) 350.9 Operating (loss) income (1.1 ) 37.2 0.9 0.1 37.1 Other (expense) income: Interest expense (5.2 ) (0.5 ) — 0.1 (5.6 ) Other income, net — 0.1 0.1 (0.1 ) 0.1 (Loss) income before income taxes (6.3 ) 36.8 1.0 0.1 31.6 Income tax provision — (7.1 ) (0.3 ) 1.5 (5.9 ) Earnings in equity of subsidiaries 32.0 0.7 — (32.7 ) — Net income $ 25.7 $ 30.4 $ 0.7 $ (31.1 ) $ 25.7 Comprehensive income $ 17.4 $ 22.1 $ 0.7 $ (22.8 ) $ 17.4 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (In millions of dollars) Quarter Ended March 31, 2019 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities: Net cash (used in) provided by operating activities $ (3.3 ) $ 27.2 $ (1.1 ) $ — $ 22.8 Cash flows from investing activities: Capital expenditures — (13.3 ) (0.3 ) — (13.6 ) Purchase of available for sale securities — (18.1 ) — — (18.1 ) Proceeds from disposition of available for sale securities — 32.7 — — 32.7 Intercompany loans receivable 37.0 (0.2 ) 2.5 (39.3 ) — Net cash provided by (used in) investing activities 37.0 1.1 2.2 (39.3 ) 1.0 Cash flows from financing activities: Repayment of finance lease — (0.3 ) — — (0.3 ) Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares (5.0 ) — — — (5.0 ) Repurchase of common stock (18.5 ) — — — (18.5 ) Cash dividends and dividend equivalents paid (10.2 ) — — — (10.2 ) Intercompany loans payable — (39.3 ) — 39.3 — Net cash used in financing activities (33.7 ) (39.6 ) — 39.3 (34.0 ) Net (decrease) increase in cash, cash equivalents and restricted cash during the period — (11.3 ) 1.1 — (10.2 ) Cash, cash equivalents and restricted cash at beginning of period — 136.3 3.3 — 139.6 Cash, cash equivalents and restricted cash at end of period $ — $ 125.0 $ 4.4 $ — $ 129.4 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (In millions of dollars) Quarter Ended March 31, 2018 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities: Net cash provided by operating activities $ 99.7 $ 25.6 $ 0.8 $ (100.0 ) $ 26.1 Cash flows from investing activities: Capital expenditures — (19.4 ) (0.3 ) — (19.7 ) Proceeds from disposition of available for sale securities — 100.3 — — 100.3 Intercompany loans receivable (77.1 ) — 0.1 77.0 — Net cash (used in) provided by investing activities (77.1 ) 80.9 (0.2 ) 77.0 80.6 Cash flows from financing activities: Repayment of finance lease — (0.2 ) — — (0.2 ) Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares (6.9 ) — — — (6.9 ) Repurchase of common stock (5.7 ) — — — (5.7 ) Cash dividends paid to Parent — (100.0 ) — 100.0 — Cash dividends and dividend equivalents paid (10.0 ) — — — (10.0 ) Intercompany loans payable — 77.0 — (77.0 ) — Net cash used in financing activities (22.6 ) (23.2 ) — 23.0 (22.8 ) Net increase in cash, cash equivalents and restricted cash during the period — 83.3 0.6 — 83.9 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 $ — $ 144.6 $ 3.6 $ — $ 148.2 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Dividend Declaration . On April 15, 2019 , we announced that our Board of Directors declared a cash dividend of $0.60 per common share. As such, we expect to pay approximately $9.8 million (including dividend equivalents) on or about May 15, 2019 to stockholders of record and the holders of certain restricted stock units at the close of business on April 25, 2019 . Section 232 Tariff . 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, for recovery of approximately $3.1 million |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation. The accompanying unaudited consolidated financial statements include the accounts of our wholly owned subsidiaries and are prepared in accordance with United States generally accepted accounting principles ("GAAP") and the rules and regulations of the Securities and Exchange Commission ("SEC") applicable for interim periods and, therefore, do not include all information and footnotes required by GAAP for complete financial statements. In management's opinion, all adjustments (which include normal recurring adjustments) considered necessary for a fair presentation have been included. The results of operations for our interim periods are not necessarily indicative of the results of operations that may be achieved for the entire 2019 fiscal year. The financial information as of December 31, 2018 is derived from our audited consolidated financial statements and footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2018 |
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. |
Fair Value Measurements | 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 ). Additionally, we measure at fair value once each year at December 31 our Canadian defined benefit pension plan and the plan assets of the Salaried VEBA (defined in Note 4 ). We record our remaining financial assets and liabilities at carrying value. For a majority of our non-financial assets and liabilities, which include goodwill, intangible 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 (or at least annually for goodwill), 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. None of our non-financial assets and liabilities subject to fair value assessments on a non-recurring basis required a material adjustment to the carrying amount of such assets and liabilities for the quarter ended March 31, 2019 |
Inventories | Inventories. Inventories are stated at the lower of cost or market value. Finished products, work-in-process and raw material inventories are stated on the last-in, first-out ("LIFO") basis. At March 31, 2019 and December 31, 2018 , the current cost of our inventory exceeded its stated LIFO value by $17.2 million and $31.7 million , respectively. 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 |
Replacement Parts | 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 $0.5 million during each of the quarters ended March 31, 2019 and March 31, 2018 , respectively. Depreciation is computed using the straight-line method at rates based on the estimated useful lives of the various classes of assets. Finance 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. |
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 5 ). 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. Our aluminum and energy derivatives qualify for hedge (deferral) accounting and, as such, we designate 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 income, net of tax, and reclassified to Cost of products sold, excluding depreciation and amortization and other items ("COGS") when such hedges settle (see Note 5 |
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 $28.1 million and $27.6 million as of March 31, 2019 and December 31, 2018 , respectively. However, we accounted for our workers' compensation accrued liabilities on a discounted basis (see Note 2 ), using a discount rate of 2.50% and 3.00% at March 31, 2019 and December 31, 2018 , respectively. Accrued liabilities for employee healthcare benefits, which are estimates of unpaid incurred medical and prescription drug costs as provided by our healthcare administrators, were $3.4 million and $3.6 million as of March 31, 2019 and December 31, 2018 |
Short-Term Incentive Plans (STI 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 March 31, 2019 , we had a liability of $3.9 million |
Long-Term Incentive Programs (LTI Programs) | Long-Term Incentive Programs. 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 approved by stockholders on May 26, 2016 ("2016 Plan"). At March 31, 2019 , 503,379 |
New Accounting Pronouncements | Adoption of New Accounting Pronouncements 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 (with amendments issued in 2018) and requires lessees 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 operating leases under the previous guidance) while finance leases will result in a front-loaded expense pattern (similar to capital leases under the previous guidance). We adopted ASU 2016-02 and its subsequent amendments (together "ASC 842") during the quarter ended March 31, 2019 using the transition approach provided for under ASU No. 2018-11, Leases (Topic 842): Targeted Improvements , which allowed us to apply the new lease standard as of January 1, 2019, rather than the beginning of the earliest period presented. We elected the package of practical expedients, which permitted us to: (i) not reassess whether any of our contracts contained leases; (ii) carry forward the historical lease classification of our existing leases; and (iii) not reassess initial direct costs for our existing leases. We did not elect to apply the hindsight practical expedient when determining lease term and assessing impairment of right-of-use assets. Due to our adoption of ASC 842, we recorded an operating lease right-of-use asset of $29.0 million , a current operating lease liability of $4.1 million and a long-term operating lease liability of $27.4 million on our Consolidated Balance Sheets as of January 1, 2019. There was no cumulative-effect adjustment to Retained earnings required. The standard did not materially impact our consolidated net earnings and had no impact on cash flows. Comparative information in this Report has not been adjusted and continues to be reported under the previous lease accounting rules. See Note 3 for details of the significant changes and quantitative impacts of the changes, as well as other required disclosures related to our adoption of ASC 842. There were no material impacts on our consolidated financial statements resulting from our adoption in the quarter ended March 31, 2019 of: (i) ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting and (ii) ASU No. 2018-08, Not-for-Profit Entities (Topic 958): Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made. Accounting Pronouncements Issued But Not Yet Adopted 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 |
Leases | We determine if an agreement is a lease at inception. We have operating and finance leases for equipment and real estate that primarily have fixed lease payments. Our leases have remaining lease terms of one year to 15 years , some of which may include options to extend the lease for up to 20 years , and some of which may include options to terminate the lease within one year . None of our options to extend or terminate are reasonably certain of being exercised, and are therefore not included in our determination of lease assets and liabilities. Short-term leases with an initial term of 12 months or less are not recorded in our Consolidated Balance Sheets. As most of our leases do not provide an implicit rate, we use information available at the lease commencement date in determining an incremental borrowing rate when calculating our operating lease assets and operating lease liabilities. In determining the inputs to the incremental borrowing rate calculation, we make judgments about the value of the leased asset, our credit rating and the lease term including the probability of our exercising options to extend or terminate the underlying lease. Additionally, we make judgments around contractual asset substitution rights in determining whether a contract contains a lease. We have lease agreements with lease and non-lease components, which are generally accounted for separately. These non-lease components include items such as common area maintenance, taxes and insurance for our real estate leases, as well as maintenance charges related to our equipment leases. We have applied the practical expedient within ASU 2016-02 to not separate lease and non-lease components to only our embedded supply system equipment leases and have therefore accounted for both lease and non-lease components in determining the lease assets and liabilities. |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Balance Sheet Disclosures | emental Balance Sheet Information March 31, 2019 December 31, 2018 (In millions of dollars) Cash and Cash Equivalents Cash and money market funds $ 29.3 $ 22.9 Commercial paper 86.0 102.7 Total $ 115.3 $ 125.6 Trade Receivables, Net Billed trade receivables $ 196.6 $ 179.5 Unbilled trade receivables — 1.1 Trade receivables, gross 196.6 180.6 Allowance for doubtful receivables (0.8 ) (0.8 ) Trade receivables, net $ 195.8 $ 179.8 Inventories Finished products $ 47.1 $ 48.0 Work-in-process 104.9 85.6 Raw materials 74.8 75.0 Operating supplies 7.1 6.5 Total $ 233.9 $ 215.1 Property, Plant and Equipment, Net Land and improvements $ 21.4 $ 21.4 Buildings and leasehold improvements 97.8 97.0 Machinery and equipment 766.9 755.6 Construction in progress 41.8 43.6 Property, plant and equipment, gross 927.9 917.6 Accumulated depreciation (318.6 ) (307.4 ) Assets held for sale 1.6 1.6 Property, plant and equipment, net $ 610.9 $ 611.8 Other Accrued Liabilities Uncleared cash disbursements $ 6.6 $ 4.8 Accrued income taxes and taxes payable 9.9 6.5 Accrued annual contribution to Salaried VEBA — 2.1 Accrued interest 8.4 2.9 Other – Note 5 26.7 27.7 Total $ 51.6 $ 44.0 March 31, 2019 December 31, 2018 (In millions of dollars) Long-Term Liabilities Workers' compensation accruals $ 25.5 $ 24.6 Long-term environmental accrual – Note 7 13.1 14.3 Other long-term liabilities 23.2 27.5 Total $ 61.8 $ 66.4 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of Lease Terms and Discount Rates | The following table presents lease terms and discount rates as of March 31, 2019 : Finance Leases Operating Leases Weighted-average lease term (in years): 6.1 10.9 Weighted-average discount rate: 4.7 % 5.8 % |
Schedule of Lease Assets and Liabilities | The following table summarizes the classification of lease assets and lease liabilities in our Consolidated Balance Sheet at March 31, 2019 (in millions of dollars): Leases Classification March 31, 2019 Assets Operating lease assets Operating lease assets $ 27.4 Finance lease assets Property, plant and equipment, net 6.7 Total lease assets $ 34.1 Liabilities Current: Operating lease liabilities Other accrued liabilities $ 3.5 Finance lease liabilities Other accrued liabilities 1.3 Non-current: Operating lease liabilities Long-term portion of operating lease liabilities 26.6 Finance lease liabilities Long-term liabilities 5.4 Total lease liabilities $ 36.8 |
Schedule of Lease Cost Classification | The following table summarizes the components of lease cost in our Statements of Consolidated Income during the quarter ended March 31, 2019 (in millions of dollars): Lease Cost Quarter Ended March 31, 2019 Operating lease cost $ 2.0 Short-term lease cost 0.3 Finance lease cost: Amortization of leased assets 0.4 Interest on lease liabilities 0.1 Total lease cost $ 2.8 |
Lease Liability Maturity Schedule | The following table presents the maturity of our lease liabilities as of March 31, 2019 (in millions of dollars): Maturity of Lease Liabilities Finance Leases Operating Leases Remainder of 2019 $ 1.2 $ 3.7 2020 1.4 4.7 2021 1.2 4.1 2022 1.1 3.6 2023 1.0 3.4 2024 0.6 3.3 2025 and thereafter 1.2 18.7 Total minimum lease payments $ 7.7 $ 41.5 Less: interest (1.0 ) (11.4 ) Present value $ 6.7 $ 30.1 |
Schedule of Future Minimum Rental Payments | The following table presents minimum rental commitments at December 31, 2018 (in millions of dollars): Year Ended December 31, Finance 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 finance 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 finance leases and the accumulated amortization thereon were $8.3 million and $1.3 million |
Employee Benefits (Tables)
Employee Benefits (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Total Expense (Income) Related to Benefit Plans | The following tables present the total expense related to all benefit plans for the periods presented (in millions of dollars): Quarter Ended March 31, 2019 2018 Defined contribution plans 1 $ 3.9 $ 4.3 Deferred compensation plan 1 0.7 0.1 Multiemployer pension plans 1 1.2 1.2 Net periodic postretirement benefit cost relating to Salaried VEBA 2 1.7 1.5 Total $ 7.5 $ 7.1 ____________________ 1 Substantially all of the expense related to employee benefits are in COGS with the remaining balance in Selling, general, administrative, research and development ("SG&A and R&D"). 2 |
Schedule of Net Benefit Costs | The following table presents the components of Net periodic postretirement benefit cost relating to Salaried VEBA for the periods presented (in millions of dollars): Quarter Ended March 31, 2019 2018 Salaried VEBA 1 : Interest cost $ 0.8 $ 0.7 Expected return on plan assets (0.6 ) (0.7 ) Amortization of prior service cost 2 1.4 1.3 Amortization of net actuarial loss 0.1 0.2 Total net periodic postretirement benefit cost relating to Salaried VEBA $ 1.7 $ 1.5 ____________________ 1 The service cost was insignificant for all periods presented. 2 |
Derivatives, Hedging Programs_2
Derivatives, Hedging Programs and Other Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of material derivative positions | The following table summarizes our derivative positions at March 31, 2019 : Aluminum Maturity Period (month/year) Notional Amount of Contracts (mmlbs) Fixed price purchase contracts 4/19 through 12/21 117.1 Fixed price sales contracts 4/19 through 11/19 0.5 Midwest premium swap contracts 1 4/19 through 12/21 89.4 Alloying Metals Maturity Period (month/year) Notional Amount of Contracts (mmlbs) Fixed price purchase contracts 4/19 through 12/20 10.5 Natural Gas 2 Maturity Period (month/year) Notional Amount of Contracts (mmbtu) Fixed price purchase contracts 4/19 through 12/24 8,530,000 Electricity 3 Maturity Period (month/year) Notional Amount of Contracts (Mwh) Fixed price purchase contracts 1/20 through 12/21 307,080 ____________________ 1 Regional premiums represent the premium over the London Metal Exchange price for primary aluminum which is incurred on our purchases of primary aluminum. 2 As of March 31, 2019 , we had derivative and/or physical delivery commitments with energy companies in place to cover exposure to fluctuations in prices for approximately 69% of the expected natural gas purchases for the remainder of 2019 , 66% of the expected natural gas purchases for both 2020 and 2021 , 37% of the expected natural gas purchases for both 2022 and 2023 and 31% of the expected natural gas purchases for 2024. 3 As of March 31, 2019 , we had derivative and/or physical delivery commitments with energy companies in place to cover exposure to fluctuations in prices for approximately 54% of our expected electricity purchases for both the remainder of 2019 and 2020 and 27% of our expected electricity purchases for 2021 |
Summary of realized and unrealized gains and losses | The amount of loss (gain) included on our Statements of Consolidated Income (all within COGS) associated with all derivative contracts consisted of the following for each period presented (in millions of dollars): Quarter Ended March 31, 2019 2018 Total amounts of income and expense line items presented in our Statements of Consolidated Income in which the effects of hedges are recorded $ 315.1 $ 316.7 Loss (gain) recognized in income related to cash flow hedges: Aluminum $ 4.2 $ 0.3 Alloying metals 0.1 (0.4 ) Natural gas (0.1 ) — Total loss (gain) recognized in income $ 4.2 $ (0.1 ) |
Fair Value of Derivative Assets and Liabilities Measured on Recurring Basis | The following table presents the fair value of our derivative financial instruments as of the periods presented (in millions of dollars): March 31, 2019 December 31, 2018 Derivative Assets Derivative Liabilities Net Amount Derivative Assets Derivative Liabilities Net Amount Cash Flow Hedges: Aluminum – Fixed price purchase contracts $ 0.6 $ (7.9 ) $ (7.3 ) $ 0.1 $ (13.2 ) $ (13.1 ) Fixed price sales contracts — — — 0.1 — 0.1 Midwest premium swap contracts 2.8 (0.2 ) 2.6 3.2 (0.5 ) 2.7 Alloying Metals – Fixed price purchase contracts 0.9 (0.3 ) 0.6 — (1.7 ) (1.7 ) Natural gas – Fixed price purchase contracts 0.4 (0.8 ) (0.4 ) 0.2 (0.5 ) (0.3 ) Electricity – Fixed price purchase contracts 2.0 — 2.0 0.7 — 0.7 Total $ 6.7 $ (9.2 ) $ (2.5 ) $ 4.3 $ (15.9 ) $ (11.6 ) The following table presents the balance sheet location of derivative assets and liabilities as of the periods presented (in millions of dollars): March 31, 2019 December 31, 2018 Assets: Prepaid expenses and other current assets $ 4.1 $ 3.4 Other assets 2.6 0.9 Total assets $ 6.7 $ 4.3 Liabilities: Other accrued liabilities $ (8.1 ) $ (13.2 ) Long-term liabilities (1.1 ) (2.7 ) Total liabilities $ (9.2 ) $ (15.9 ) |
Fair Value, Non-Derivative 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 March 31, 2019 (in millions of dollars): Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 29.3 $ 86.0 $ — $ 115.3 Short-term investments — 22.3 — 22.3 Total $ 29.3 $ 108.3 $ — $ 137.6 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 All Other Financial Assets and Liabilities. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the changes in the accumulated balances for each component of AOCI for each period presented (in millions of dollars): Quarter Ended March 31, 2019 2018 Defined Benefit Pension Plan and Salaried VEBA: Beginning balance $ (35.6 ) $ (38.5 ) Amortization of net actuarial loss 1 0.1 0.2 Amortization of prior service cost 1 1.4 1.3 Less: income tax expense 2 (0.4 ) (0.3 ) Net amortization reclassified from AOCI to Net income 1.1 1.2 Other comprehensive income, net of tax 1.1 1.2 Ending balance $ (34.5 ) $ (37.3 ) Available for Sale Securities: Beginning balance $ 0.3 $ 0.9 Unrealized gain on available for sale securities 1.0 1.0 Less: income tax expense (0.3 ) (0.2 ) Net unrealized gain on available for sale securities 0.7 0.8 Reclassification of unrealized gain upon sale of available for sale securities 3 (1.2 ) (1.5 ) Less: income tax benefit 2 0.3 0.5 Net gain reclassified from AOCI to Net income (0.9 ) (1.0 ) Other comprehensive loss, net of tax (0.2 ) (0.2 ) Ending balance $ 0.1 $ 0.7 Cash Flow Hedges: Beginning balance $ (13.4 ) $ 0.5 Unrealized gain (loss) on cash flow hedges 7.4 (12.2 ) Less: income tax (expense) benefit (1.8 ) 3.0 Net unrealized gain (loss) on cash flow hedges 5.6 (9.2 ) Reclassification of unrealized loss (gain) upon settlement of cash flow hedges 4 4.2 (0.1 ) Less: income tax expense 2 (1.0 ) — Net loss (gain) reclassified from AOCI to Net income 3.2 (0.1 ) Other comprehensive income (loss), net of tax 8.8 (9.3 ) Ending balance $ (4.6 ) $ (8.8 ) Foreign Currency Translation: Beginning balance $ (0.1 ) $ — Other comprehensive income, net of tax — — Ending balance $ (0.1 ) $ — Total AOCI ending balance $ (39.1 ) $ (45.4 ) ____________________ 1 Amounts amortized out of AOCI relating to Salaried VEBA adjustments were included within Other income, 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 Amounts reclassified out of AOCI relating to sales of available for sale securities were included as a component of Other income, net. We use the specific identification method to determine the amount reclassified out of AOCI. 4 Amounts reclassified out of AOCI relating to cash flow hedges were included as a component of COGS. As of March 31, 2019 , we estimate a net mark-to-market loss before tax of $7.4 million |
Other Income, Net (Tables)
Other Income, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other Income, Net | Other income, net, consisted of the following for each period presented (in millions of dollars): Quarter Ended March 31, 2019 2018 Interest income $ 0.2 $ 0.1 Net periodic postretirement benefit cost relating to Salaried VEBA (1.6 ) (1.5 ) Realized gain on investments 1.2 1.6 All other income (expense), net 0.7 (0.1 ) Other income, net $ 0.5 $ 0.1 |
Income Tax Matters (Tables)
Income Tax Matters (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Tax Provision | The provision for in come taxes for each period presented consisted of the following (in millions of dollars): Quarter Ended March 31, 2019 2018 Domestic $ 9.5 $ 5.6 Foreign 0.3 0.3 Total $ 9.8 $ 5.9 |
Net Income Per Share and Stoc_2
Net Income Per Share and Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Calculation of basic and diluted earnings per share | 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): Quarter Ended March 31, 2019 2018 Numerator: Net income $ 28.0 $ 25.7 Denominator – Weighted-average common shares outstanding (in thousands): Basic 16,108 16,707 Add: dilutive effect of non-vested common shares, restricted stock units and performance shares 1 264 324 Diluted 16,372 17,031 Net income per common share, Basic: $ 1.74 $ 1.54 Net income per common share, Diluted: $ 1.71 $ 1.51 ____________________ 1 During the quarter ended March 31, 2019 a total of four thousand securities were excluded from the weighted-average diluted shares computation as their inclusion would have been anti-dilutive. There were no anti-dilutive securities during the quarter ended March 31, 2018 . |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Quarter Ended March 31, 2019 2018 (In millions of dollars) Interest paid $ 0.3 $ 0.3 Non-cash investing and financing activities (included in Accounts payable): Unpaid purchases of property and equipment $ 4.7 $ 5.2 Stock repurchases not yet settled $ 0.2 $ 0.5 Supplemental lease disclosures: Operating lease liabilities arising from obtaining operating lease assets $ 0.5 n/a Cash paid for amounts included in the measurement of operating lease liabilities $ 0.9 n/a March 31, 2019 March 31, 2018 (In millions of dollars) Components of cash, cash equivalents and restricted cash: Cash and cash equivalents $ 115.3 $ 135.0 Restricted cash included in Prepaid expenses and other current assets 1 0.3 0.3 Restricted cash included in Other assets 1 13.8 12.9 Total cash, cash equivalents and restricted cash shown in our Statements of Consolidated Cash Flows $ 129.4 $ 148.2 ____________________ 1 |
Business, Product and Geograp_2
Business, Product and Geographical Area Information and Concentration of Risk (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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): Quarter Ended March 31, 2019 2018 Net sales: Aero/HS products $ 198.5 $ 170.2 Automotive Extrusions 53.0 60.5 GE products 130.0 143.3 Other products 13.7 14.0 Total net sales $ 395.2 $ 388.0 Timing of revenue recognition: Products transferred at a point in time $ 131.8 $ 156.6 Products transferred over time 263.4 231.4 Total net sales $ 395.2 $ 388.0 |
Schedule of income taxes paid by geographical area | Geographic information for income taxes paid for each period presented was as follows (in millions of dollars): Quarter Ended March 31, 2019 2018 Income taxes paid: Domestic $ 0.1 $ 0.2 Foreign 0.8 — Total income taxes paid $ 0.9 $ 0.2 |
Schedule of information for contractual delivery of primary aluminum supply from major suppliers | Information about primary aluminum supply from our major suppliers for each period presented was as follows: Quarter Ended March 31, 2019 2018 Percentage of total primary aluminum supply (lbs): Supply from our top five major suppliers 71 % 81 % Supply from our largest supplier 20 % 39 % Supply from our second and third largest suppliers combined 28 % 27 % |
Condensed Guarantor and Non-G_2
Condensed Guarantor and Non-Guarantor Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Guarantor and Non-Guarantor Financial Statement [Abstract] | |
Condensed Financial Statements | CONDENSED CONSOLIDATING BALANCE SHEET (In millions of dollars) March 31, 2019 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 111.2 $ 4.1 $ — $ 115.3 Short-term investments — 22.3 — — 22.3 Receivables: Trade receivables, net — 190.3 5.5 — 195.8 Intercompany loans receivable 106.7 0.3 4.4 (111.4 ) — Other — 20.8 1.6 — 22.4 Contract assets — 53.8 4.6 — 58.4 Inventories — 220.0 13.9 — 233.9 Prepaid expenses and other current assets 0.1 22.5 0.4 — 23.0 Total current assets 106.8 641.2 34.5 (111.4 ) 671.1 Investments in and advances to subsidiaries 1,021.3 95.5 0.2 (1,117.0 ) — Property, plant and equipment, net — 576.9 34.0 — 610.9 Operating lease assets — 27.4 — — 27.4 Long-term intercompany loans receivable — — 7.2 (7.2 ) — Deferred tax assets, net — 19.4 — 3.0 22.4 Intangible assets, net — 23.2 8.5 — 31.7 Goodwill — 18.7 25.3 — 44.0 Other assets — 40.3 — — 40.3 Total $ 1,128.1 $ 1,442.6 $ 109.7 $ (1,232.6 ) $ 1,447.8 LIABILITIES AND STOCKHOLDERS ' EQUITY Current liabilities: Accounts payable $ 1.3 $ 115.6 $ 7.5 $ — $ 124.4 Intercompany loans payable — 111.3 0.1 (111.4 ) — Accrued salaries, wages and related expenses — 26.5 1.7 — 28.2 Other accrued liabilities 8.3 44.4 0.4 (1.5 ) 51.6 Total current liabilities 9.6 297.8 9.7 (112.9 ) 204.2 Long-term portion of operating lease liabilities — 26.6 — — 26.6 Net liabilities of Salaried VEBA — 32.5 — — 32.5 Deferred tax liabilities — — 4.2 — 4.2 Long-term intercompany loans payable — 7.2 — (7.2 ) — Long-term liabilities — 58.8 3.0 — 61.8 Long-term debt 370.6 — — — 370.6 Total liabilities 380.2 422.9 16.9 (120.1 ) 699.9 Total stockholders' equity 747.9 1,019.7 92.8 (1,112.5 ) 747.9 Total $ 1,128.1 $ 1,442.6 $ 109.7 $ (1,232.6 ) $ 1,447.8 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 STATEMENT OF COMPREHENSIVE INCOME (In millions of dollars) Quarter Ended March 31, 2019 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 385.7 $ 28.9 $ (19.4 ) $ 395.2 Costs and expenses: Cost of products sold, excluding depreciation and amortization and other items — 309.0 25.0 (18.9 ) 315.1 Depreciation and amortization — 10.9 1.0 — 11.9 Selling, general, administrative, research and development 1.1 22.2 2.4 (0.5 ) 25.2 Total costs and expenses 1.1 342.1 28.4 (19.4 ) 352.2 Operating (loss) income (1.1 ) 43.6 0.5 — 43.0 Other (expense) income: Interest expense (5.2 ) (0.6 ) — 0.1 (5.7 ) Other expense, net — 0.3 0.3 (0.1 ) 0.5 (Loss) income before income taxes (6.3 ) 43.3 0.8 — 37.8 Income tax provision — (11.0 ) (0.3 ) 1.5 (9.8 ) Earnings in equity of subsidiaries 34.3 0.5 — (34.8 ) — Net income $ 28.0 $ 32.8 $ 0.5 $ (33.3 ) $ 28.0 Comprehensive income $ 37.7 $ 42.5 $ 0.5 $ (43.0 ) $ 37.7 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (In millions of dollars) Quarter Ended March 31, 2018 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 377.9 $ 32.5 $ (22.4 ) $ 388.0 Costs and expenses: Cost of products sold, excluding depreciation and amortization and other items — 309.4 29.1 (21.8 ) 316.7 Depreciation and amortization — 9.9 0.6 — 10.5 Selling, general, administrative, research and development 1.1 21.3 1.9 (0.7 ) 23.6 Other operating charges, net — 0.1 — — 0.1 Total costs and expenses 1.1 340.7 31.6 (22.5 ) 350.9 Operating (loss) income (1.1 ) 37.2 0.9 0.1 37.1 Other (expense) income: Interest expense (5.2 ) (0.5 ) — 0.1 (5.6 ) Other income, net — 0.1 0.1 (0.1 ) 0.1 (Loss) income before income taxes (6.3 ) 36.8 1.0 0.1 31.6 Income tax provision — (7.1 ) (0.3 ) 1.5 (5.9 ) Earnings in equity of subsidiaries 32.0 0.7 — (32.7 ) — Net income $ 25.7 $ 30.4 $ 0.7 $ (31.1 ) $ 25.7 Comprehensive income $ 17.4 $ 22.1 $ 0.7 $ (22.8 ) $ 17.4 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (In millions of dollars) Quarter Ended March 31, 2019 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities: Net cash (used in) provided by operating activities $ (3.3 ) $ 27.2 $ (1.1 ) $ — $ 22.8 Cash flows from investing activities: Capital expenditures — (13.3 ) (0.3 ) — (13.6 ) Purchase of available for sale securities — (18.1 ) — — (18.1 ) Proceeds from disposition of available for sale securities — 32.7 — — 32.7 Intercompany loans receivable 37.0 (0.2 ) 2.5 (39.3 ) — Net cash provided by (used in) investing activities 37.0 1.1 2.2 (39.3 ) 1.0 Cash flows from financing activities: Repayment of finance lease — (0.3 ) — — (0.3 ) Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares (5.0 ) — — — (5.0 ) Repurchase of common stock (18.5 ) — — — (18.5 ) Cash dividends and dividend equivalents paid (10.2 ) — — — (10.2 ) Intercompany loans payable — (39.3 ) — 39.3 — Net cash used in financing activities (33.7 ) (39.6 ) — 39.3 (34.0 ) Net (decrease) increase in cash, cash equivalents and restricted cash during the period — (11.3 ) 1.1 — (10.2 ) Cash, cash equivalents and restricted cash at beginning of period — 136.3 3.3 — 139.6 Cash, cash equivalents and restricted cash at end of period $ — $ 125.0 $ 4.4 $ — $ 129.4 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (In millions of dollars) Quarter Ended March 31, 2018 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities: Net cash provided by operating activities $ 99.7 $ 25.6 $ 0.8 $ (100.0 ) $ 26.1 Cash flows from investing activities: Capital expenditures — (19.4 ) (0.3 ) — (19.7 ) Proceeds from disposition of available for sale securities — 100.3 — — 100.3 Intercompany loans receivable (77.1 ) — 0.1 77.0 — Net cash (used in) provided by investing activities (77.1 ) 80.9 (0.2 ) 77.0 80.6 Cash flows from financing activities: Repayment of finance lease — (0.2 ) — — (0.2 ) Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares (6.9 ) — — — (6.9 ) Repurchase of common stock (5.7 ) — — — (5.7 ) Cash dividends paid to Parent — (100.0 ) — 100.0 — Cash dividends and dividend equivalents paid (10.0 ) — — — (10.0 ) Intercompany loans payable — 77.0 — (77.0 ) — Net cash used in financing activities (22.6 ) (23.2 ) — 23.0 (22.8 ) Net increase in cash, cash equivalents and restricted cash during the period — 83.3 0.6 — 83.9 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 $ — $ 144.6 $ 3.6 $ — $ 148.2 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies, Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Jan. 01, 2019 | Dec. 31, 2017 | |
Significant accounting policies | |||||
Operating lease assets | $ 27.4 | $ 0 | |||
Operating Lease, Liability, Current | 3.5 | ||||
Excess of current cost over the stated LIFO value of inventory | 17.2 | 31.7 | |||
Interest expense capitalized | 0.5 | $ 0.5 | |||
Workers compensation liability | $ 28.1 | $ 27.6 | |||
Workers' compensation accrual, discount rate (percent) | 2.50% | 3.00% | |||
Accrued liabilities for employee healthcare benefits | $ 3.4 | $ 3.6 | |||
Shares available for award (shares) | 503,379 | ||||
Retained earnings | $ 168 | 150.2 | |||
Long-term portion of operating lease liabilities | 26.6 | $ 0 | |||
Cumulative-effect adjustment | $ 10.1 | ||||
Accrued salaries, wages and related expenses | |||||
Significant accounting policies | |||||
Accrued salaries, wages and related expenses | $ 3.9 | ||||
Accounting Standards Update 2016-02 | |||||
Significant accounting policies | |||||
Operating lease assets | $ 29 | ||||
Operating Lease, Liability, Current | 4.1 | ||||
Long-term portion of operating lease liabilities | 27.4 | ||||
Cumulative-effect adjustment | $ 0 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents | ||
Cash and money market funds | $ 29.3 | $ 22.9 |
Commercial paper | 86 | 102.7 |
Total | 115.3 | 125.6 |
Trade Receivables – Net | ||
Trade receivables, gross | 196.6 | 180.6 |
Allowance for doubtful receivables | (0.8) | (0.8) |
Trade receivables – net | 195.8 | 179.8 |
Inventories | ||
Finished products | 47.1 | 48 |
Work-in-process | 104.9 | 85.6 |
Raw materials | 74.8 | 75 |
Operating supplies | 7.1 | 6.5 |
Total | 233.9 | 215.1 |
Property, Plant and Equipment – Net | ||
Land and improvements | 21.4 | 21.4 |
Buildings and leasehold improvements | 97.8 | 97 |
Machinery and equipment | 766.9 | 755.6 |
Construction in progress | 41.8 | 43.6 |
Property, plant and equipment – gross | 927.9 | 917.6 |
Accumulated depreciation | (318.6) | (307.4) |
Assets held for sale | 1.6 | 1.6 |
Property, plant and equipment – net | 610.9 | 611.8 |
Other Accrued Liabilities | ||
Uncleared cash disbursements | 6.6 | 4.8 |
Accrued income taxes and taxes payable | 9.9 | 6.5 |
Accrued annual contribution to Salaried VEBA | 0 | 2.1 |
Accrued interest | 8.4 | 2.9 |
Other | 26.7 | 27.7 |
Total | 51.6 | 44 |
Long-Term Liabilities | ||
Workers’ compensation accruals | 25.5 | 24.6 |
Long-term environmental accrual | 13.1 | 14.3 |
Other long-term liabilities | 23.2 | 27.5 |
Total | 61.8 | 66.4 |
Billed | ||
Trade Receivables – Net | ||
Trade receivables, gross | 196.6 | 179.5 |
Unbilled | ||
Trade Receivables – Net | ||
Trade receivables, gross | $ 0 | $ 1.1 |
Lease, Lease Cost (Details)
Lease, Lease Cost (Details) | Mar. 31, 2019 |
Leases, Lease, Cost [Abstract] | |
Finance Leases - Weighted-average lease term (in years): | 6 years 1 month 6 days |
Finance Leases - Weighted-average discount rate (percent) | 4.70% |
Operating Leases - Weighted-average lease term (in years) | 10 years 10 months 24 days |
Operating Leases - Weighted-average discount rate (percent) | 5.80% |
Leases, Schedule of Lease Asset
Leases, Schedule of Lease Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Operating lease assets | $ 27.4 | $ 0 |
Finance lease assets | 6.7 | |
Total lease assets | 34.1 | |
Operating lease liabilities, current | 3.5 | |
Finance lease liabilities, current | 1.3 | |
Operating lease liabilities, noncurrent | 26.6 | $ 0 |
Finance lease liabilities, noncurrent | 5.4 | |
Total lease liabilities | $ 36.8 |
Leases, Schedule of Lease Cost
Leases, Schedule of Lease Cost Classification (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 2 |
Short-term lease cost | 0.3 |
Amortization of leased assets | 0.4 |
Interest on lease liabilities | 0.1 |
Total lease cost | $ 2.8 |
Leases, Maturity of Lease liabi
Leases, Maturity of Lease liability (Details) $ in Millions | Mar. 31, 2019USD ($) |
Operating Lease Liabilities, Payments Due [Abstract] | |
Remainder of 2019 | $ 3.7 |
2020 | 4.7 |
2021 | 4.1 |
2022 | 3.6 |
2023 | 3.4 |
2024 | 3.3 |
2025 and thereafter | 18.7 |
Total minimum lease payments | 41.5 |
Less: interest | (11.4) |
Present value | 30.1 |
Finance Lease Liabilities, Payments, Rolling Maturity [Abstract] | |
Remainder of 2019 | 1.2 |
2020 | 1.4 |
2021 | 1.2 |
2022 | 1.1 |
2023 | 1 |
2024 | 0.6 |
2025 and thereafter | 1.2 |
Total minimum lease payments | 7.7 |
Less: interest | (1) |
Present value | $ 6.7 |
Leases, Schedule of Future Mini
Leases, Schedule of Future Minimum Rental Payments (Details) $ in Millions | Dec. 31, 2018USD ($) |
Finance Leases | |
2020 | $ 1.7 |
2019 | 1.4 |
2021 | 1.2 |
2022 | 1.1 |
2023 | 1 |
2024 and thereafter | 1.8 |
Total minimum lease payments | 8.2 |
Less: interest | 1.2 |
Present value | 7 |
Operating Leases | |
2019 | 6.1 |
2020 | 3.7 |
2021 | 2.8 |
2022 | 2.4 |
2023 | 2.2 |
2024 and thereafter | 20.8 |
Total minimum lease payments | 38 |
Assets recorded under finance leases | 8.3 |
Accumulated amortization of assets recorded under finance lease | 1.3 |
Accrued Liabilities [Member] | |
Operating Leases | |
Finance lease obligation included in Other accrued liabilities | 1.4 |
Other Noncurrent Liabilities [Member] | |
Operating Leases | |
Finance lese obligation included in Long-term liabilities | $ 5.6 |
Leases, Narrative (Details)
Leases, Narrative (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Optional extension lease terms | 20 years |
Lease termination period | 1 year |
Minimum [Member] | |
Remaining lease terms | 1 year |
Maximum [Member] | |
Remaining lease terms | 15 years |
Employee Benefits Tables (Detai
Employee Benefits Tables (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Other Postretirement Benefits Plan | ||
Defined Benefit Plan Disclosure | ||
Defined Contribution Plan, Cost | $ 3.9 | $ 4.3 |
Deferred Compensation Arrangement with Individual, Compensation Expense | 0.7 | 0.1 |
Multiemployer Plan, Contributions by Employer | 1.2 | 1.2 |
Total other employee benefit plans | 7.5 | 7.1 |
Postretirement Health Coverage | Salaried VEBA | ||
Defined Benefit Plan Disclosure | ||
Total net periodic postretirement benefit cost relating to Salaried VEBA | 1.7 | 1.5 |
Salaried VEBA: | ||
Interest cost | 0.8 | 0.7 |
Expected return on plan assets | (0.6) | (0.7) |
Amortization of prior service cost | 1.4 | 1.3 |
Amortization of net actuarial loss | $ 0.1 | $ 0.2 |
Employee Benefits Narrative (De
Employee Benefits Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure | |||
Equity Securities, FV-NI, Unrealized Gain (Loss) | $ 0.5 | ||
Payment for Other Postretirement Benefits | 2.1 | $ 15.7 | |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | |||
Defined Benefit Plan Disclosure | |||
Fair value of deferred compensation assets | 11 | $ 9.8 | |
Postretirement Health Coverage | Union VEBA | |||
Defined Benefit Plan Disclosure | |||
Maximum contribution threshold | $ 12.8 | ||
Postretirement Health Coverage | Salaried VEBA | |||
Defined Benefit Plan Disclosure | |||
Maximum contribution threshold | 2.9 | ||
Payment for Other Postretirement Benefits | $ 2.1 |
Derivatives, Hedging Programs_3
Derivatives, Hedging Programs and Other Financial Instruments, Narrative (Details) - USD ($) | 3 Months Ended | |||||||
Mar. 31, 2019 | Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||||||||
Collateral posted for net derivatives | $ 0 | $ 0 | ||||||
Maturity period of short-term investments | 12 months | |||||||
Customer Deposits, Current | 200,000 | |||||||
Designated as Hedging Instrument | Purchase | ||||||||
Derivative [Line Items] | ||||||||
Derivative net liability | $ 6,000,000 | $ 12,600,000 | ||||||
Scenario, Forecast | Natural Gas | ||||||||
Derivative [Line Items] | ||||||||
Derivative, Nonmonetary Notional Amount, Percent of Required Need, Coverage | 31.00% | 37.00% | 37.00% | 66.00% | 66.00% | 69.00% | ||
Scenario, Forecast | Electricity | ||||||||
Derivative [Line Items] | ||||||||
Derivative, Nonmonetary Notional Amount, Percent of Required Need, Coverage | 27.00% | 54.00% | 54.00% |
Derivatives, Hedging Programs_4
Derivatives, Hedging Programs and Other Financial Instruments, Material Derivative Positions (Details) mmlbs in Millions | Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019MMBTUMWHmmlbs |
Aluminum | Designated as Hedging Instrument | Purchase | |||||||
Derivative [Line Items] | |||||||
Derivative non-monetary notional amount | 117.1 | ||||||
Aluminum | Designated as Hedging Instrument | Sales | |||||||
Derivative [Line Items] | |||||||
Derivative non-monetary notional amount | 0.5 | ||||||
Midwest premium swap contracts | Designated as Hedging Instrument | Purchase | |||||||
Derivative [Line Items] | |||||||
Derivative non-monetary notional amount | 89.4 | ||||||
Alloy Metal Hedge | Designated as Hedging Instrument | Purchase | |||||||
Derivative [Line Items] | |||||||
Derivative non-monetary notional amount | 10.5 | ||||||
Natural Gas | Designated as Hedging Instrument | Purchase | |||||||
Derivative [Line Items] | |||||||
Derivative non-monetary notional amount | MMBTU | 8,530,000 | ||||||
Electricity | Designated as Hedging Instrument | Purchase | |||||||
Derivative [Line Items] | |||||||
Derivative non-monetary notional amount | MWH | 307,080 | ||||||
Scenario, Forecast | Natural Gas | |||||||
Derivative [Line Items] | |||||||
Derivative, Nonmonetary Notional Amount, Percent of Required Need, Coverage | 31.00% | 37.00% | 37.00% | 66.00% | 66.00% | 69.00% | |
Scenario, Forecast | Electricity | |||||||
Derivative [Line Items] | |||||||
Derivative, Nonmonetary Notional Amount, Percent of Required Need, Coverage | 27.00% | 54.00% | 54.00% |
Derivatives, Hedging Programs_5
Derivatives, Hedging Programs and Other Financial Instruments, Realized and Unrealized Gains (Losses) Table (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative Instruments Gain Loss [Line Items] | ||
Cost of products sold, excluding depreciation and amortization and other items | $ 315.1 | $ 316.7 |
Cost of Sales | ||
Derivative Instruments Gain Loss [Line Items] | ||
Cost of products sold, excluding depreciation and amortization and other items | 316.7 | |
Cost of Sales | Designated as Hedging Instrument | ||
Derivative Instruments Gain Loss [Line Items] | ||
Loss (gain) recognized in income related to cash flow hedges: | 4.2 | (0.1) |
Cost of Sales | Aluminum | Designated as Hedging Instrument | ||
Derivative Instruments Gain Loss [Line Items] | ||
Loss (gain) recognized in income related to cash flow hedges: | 4.2 | 0.3 |
Cost of Sales | Alloy Metal Hedge | Designated as Hedging Instrument | ||
Derivative Instruments Gain Loss [Line Items] | ||
Loss (gain) recognized in income related to cash flow hedges: | 0.1 | (0.4) |
Cost of Sales | Natural Gas | Designated as Hedging Instrument | ||
Derivative Instruments Gain Loss [Line Items] | ||
Loss (gain) recognized in income related to cash flow hedges: | $ (0.1) | $ 0 |
Derivatives, Hedging Programs_6
Derivatives, Hedging Programs and Other Financial Instruments, Fair Value Hierarchy Table (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | $ 6.7 | $ 4.3 |
Derivative liability | (9.2) | (15.9) |
Cash and cash equivalents | 115.3 | 125.6 |
Total | 137.6 | 162.3 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 29.3 | 22.9 |
Total | 29.3 | 22.9 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 6.7 | 4.3 |
Derivative liability | (9.2) | (15.9) |
Derivative Assets (Liabilities), at Fair Value, Net | (2.5) | (11.6) |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Total | 0 | 0 |
Designated as Hedging Instrument | Purchase | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | (6) | (12.6) |
Designated as Hedging Instrument | Purchase | Aluminum | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0.6 | 0.1 |
Derivative liability | (7.9) | (13.2) |
Derivative Assets (Liabilities), at Fair Value, Net | (7.3) | (13.1) |
Designated as Hedging Instrument | Purchase | Midwest premium swap contracts | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 2.8 | 3.2 |
Derivative liability | (0.2) | (0.5) |
Derivative Assets (Liabilities), at Fair Value, Net | 2.6 | 2.7 |
Designated as Hedging Instrument | Purchase | Alloy Metal Hedge | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0.9 | 0 |
Derivative liability | (0.3) | (1.7) |
Derivative Assets (Liabilities), at Fair Value, Net | 0.6 | (1.7) |
Designated as Hedging Instrument | Purchase | Natural Gas | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0.4 | 0.2 |
Derivative liability | (0.8) | (0.5) |
Derivative Assets (Liabilities), at Fair Value, Net | (0.4) | (0.3) |
Designated as Hedging Instrument | Purchase | Electricity | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 2 | 0.7 |
Derivative liability | 0 | 0 |
Derivative Assets (Liabilities), at Fair Value, Net | 2 | 0.7 |
Designated as Hedging Instrument | Sales | Aluminum | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0.1 |
Derivative liability | 0 | 0 |
Derivative Assets (Liabilities), at Fair Value, Net | 0 | 0.1 |
Debt Securities | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 22.3 | 36.7 |
Debt Securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Debt Securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 86 | 102.7 |
Short-term investments | 22.3 | 36.7 |
Total | 108.3 | 139.4 |
Debt Securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 0 | $ 0 |
Derivatives, Hedging Programs_7
Derivatives, Hedging Programs and Other Financial Instruments, Balance Sheet (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Derivative asset | $ 6.7 | $ 4.3 |
Derivative liability | (9.2) | (15.9) |
Other Current Liabilities | ||
Derivative [Line Items] | ||
Derivative liability | (8.1) | (13.2) |
Other Noncurrent Liabilities [Member] | ||
Derivative [Line Items] | ||
Derivative liability | (1.1) | (2.7) |
Other Current Assets | ||
Derivative [Line Items] | ||
Derivative asset | 4.1 | 3.4 |
Other Assets | ||
Derivative [Line Items] | ||
Derivative asset | $ 2.6 | $ 0.9 |
Debt and Credit Facility, Narra
Debt and Credit Facility, Narrative (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | May 15, 2016 | |
Debt Instrument | ||||
Unamortized debt issuance cost | $ 4,400,000 | |||
Senior Notes Due 2024 | Senior Notes | ||||
Debt Instrument | ||||
Debt principal amount | $ 375,000,000 | |||
Debt instrument contractual rate (percent) | 5.875% | |||
Debt issuance, percentage of principal amount | 100.00% | |||
Interest expense | $ 5,700,000 | $ 5,700,000 | ||
Effective interest rate (percent) | 6.10% | |||
Fair value of outstanding debt | $ 387,100,000 | $ 369,900,000 | ||
Revolving Credit Facility | Line of Credit | ||||
Debt Instrument | ||||
Funding commitment provided | 300,000,000 | |||
Available borrowing capacity under the Revolving Facility | 300,000,000 | |||
Outstanding borrowings | 0 | |||
Net borrowing availability | 292,000,000 | |||
Revolving Credit Facility | Letter of Credit | ||||
Debt Instrument | ||||
Outstanding borrowings | $ 8,000,000 | |||
Would have been | Revolving Credit Facility | Line of Credit | ||||
Debt Instrument | ||||
Applicable interest rate at period end (percent) | 5.75% |
Commitments and Contingencies,
Commitments and Contingencies, Environmental (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Environmental Contingency | |
Environmental accrual | $ 17.1 |
Expected period related to remediation expenditures for environmental contingencies period | 30 years |
Potential increase in environmental costs | $ 11.6 |
Time period within which Companys recorded estimate of its obligation may change | 12 months |
Minimum [Member] | |
Environmental Contingency | |
Period for final feasibility study | 9 months |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Estimated net mark-to-market loss before tax within next twelve months | $ (7.4) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 740.4 | $ 746.3 |
Other comprehensive income (loss), net of tax | 9.7 | (8.3) |
Ending balance | 747.9 | 753.6 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (35.6) | (38.5) |
Less: income tax benefit | (0.4) | (0.3) |
Net loss (gain) reclassified from AOCI to Net income | 1.1 | 1.2 |
Other comprehensive income (loss), net of tax | 1.1 | 1.2 |
Ending balance | (34.5) | (37.3) |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Reclassification of unrealized gain upon sale of available for sale securities | 0.1 | 0.2 |
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Reclassification of unrealized gain upon sale of available for sale securities | 1.4 | 1.3 |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 0.3 | 0.9 |
Unrealized gain on available for sale securities | 1 | 1 |
Less: income tax expense | (0.3) | (0.2) |
Net unrealized gain on available for sale securities | 0.7 | 0.8 |
Reclassification of unrealized gain upon sale of available for sale securities | (1.2) | (1.5) |
Less: income tax benefit | 0.3 | 0.5 |
Net loss (gain) reclassified from AOCI to Net income | (0.9) | (1) |
Other comprehensive income (loss), net of tax | (0.2) | (0.2) |
Ending balance | 0.1 | 0.7 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (13.4) | 0.5 |
Unrealized gain on available for sale securities | 7.4 | (12.2) |
Less: income tax expense | (1.8) | 3 |
Net unrealized gain on available for sale securities | 5.6 | (9.2) |
Reclassification of unrealized gain upon sale of available for sale securities | 4.2 | (0.1) |
Less: income tax benefit | (1) | 0 |
Net loss (gain) reclassified from AOCI to Net income | 3.2 | (0.1) |
Other comprehensive income (loss), net of tax | 8.8 | (9.3) |
Ending balance | (4.6) | (8.8) |
Accumulated Other Comprehensive Loss (Other) [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (0.1) | 0 |
Other comprehensive income (loss), net of tax | 0 | 0 |
Ending balance | (0.1) | 0 |
AOCI Attributable to Parent [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (48.8) | (36.7) |
Other comprehensive income (loss), net of tax | 9.7 | (8.3) |
Ending balance | $ (39.1) | $ (45.4) |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Other Income and Expenses [Abstract] | ||
Interest income | $ 0.2 | $ 0.1 |
Net periodic postretirement benefit cost relating to Salaried VEBA | (1.6) | (1.5) |
Realized gain on investments | 1.2 | 1.6 |
All other income (expense), net | 0.7 | (0.1) |
Other income, net | $ 0.5 | $ 0.1 |
Income Tax Matters, Provision T
Income Tax Matters, Provision Table (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Tax Provision | ||
Domestic | $ 9.5 | $ 5.6 |
Foreign | 0.3 | 0.3 |
Total | $ 9.8 | $ 5.9 |
Income Tax Matters, Narrative (
Income Tax Matters, Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income tax provision | $ 9.8 | $ 5.9 | |
Effective tax rate (percent) | 26.00% | 19.00% | |
Effective Income Tax Rate Reconciliation, Share-based Compensation, Excess Tax Benefit, Amount | $ (1.8) | ||
Effective Income Tax Rate Reconciliation, Share-based Compensation, Excess Tax Benefit, Percent | (6.00%) | ||
Effective tax rate reconciliation, increase (decrease) to the valuation allowance for certain state net operating losses | $ 0.7 | $ (0.8) | |
Effective tax rate reconciliation, increase (decrease) to the valuation allowance for certain state net operating losses (percent) | 2.00% | (3.00%) | |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Amount | $ (0.5) | ||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Percent | (1.00%) | ||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Amount | $ 0.4 | $ 0.6 | |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Percent | 1.00% | 2.00% | |
Gross unrecognized tax benefits | $ 1.5 | $ 1.5 | |
Gross unrecognized tax benefits that would impact effective tax rate | $ 0.4 | $ 0.4 |
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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator: | ||
Net income | $ 28 | $ 25.7 |
Denominator — Weighted-average common shares outstanding (in thousands): | ||
Basic (shares) | 16,108 | 16,707 |
Add: dilutive effect of non-vested common shares, restricted stock units, performance shares and stock options (shares) | 264 | 324 |
Diluted (shares) | 16,372 | 17,031 |
Net income per common share: | ||
Basic (in dollars per share) | $ 1.74 | $ 1.54 |
Earnings per common share, Diluted: | ||
Diluted (in dollars per share) | $ 1.71 | $ 1.51 |
Net Income Per Share and Stoc_4
Net Income Per Share and Stockholders' Equity, Anti Dilution Table (Details) | Apr. 07, 2016 | Mar. 31, 2019shares | Mar. 31, 2018shares | Dec. 31, 2018shares |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4,000 | 0 | ||
Authorized number of shares of Series A Preferred Stock (shares) | 5,000,000 | 5,000,000 | ||
Series A Preferred Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Preferred Stock, Rights Conversion Ratio into Preferred Stock | 1 |
Net Income Per Share and Stoc_5
Net Income Per Share and Stockholders' Equity, Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Equity [Abstract] | ||
Number of common shares repurchased (shares) | 175,977 | 58,155 |
Weighted-average repurchase price (in usd per share) | $ 98.55 | $ 104.50 |
Total cost of repurchased common shares | $ 17.4 | $ 6.1 |
Net Income Per Share and Stoc_6
Net Income Per Share and Stockholders' Equity, Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Dividends paid | $ 10.2 | $ 10 |
Availability remaining to repurchase common shares pursuant to stock repurchase program | $ 131.3 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | ||||
Interest paid | $ 0.3 | $ 0.3 | ||
Supplemental disclosure of cash flow information: | ||||
Unpaid purchases of property and equipment | 4.7 | 5.2 | ||
Stock repurchases not yet settled | 0.2 | 0.5 | ||
Non-cash investing and financing activities: | ||||
Operating lease liabilities arising from obtaining operating lease assets | 0.5 | |||
Cash paid for amounts included in the measurement of operating lease liabilities | 0.9 | |||
Components of cash, cash equivalents and restricted cash: | ||||
Cash and cash equivalents | 115.3 | 135 | $ 125.6 | |
Restricted cash included in Prepaid expenses and other current assets | 0.3 | 0.3 | ||
Restricted cash included in Other assets | 13.8 | 12.9 | ||
Total cash, cash equivalents and restricted cash shown in our Statements of Consolidated Cash Flows | $ 129.4 | $ 148.2 | $ 139.6 | $ 64.3 |
Business, Product and Geograp_3
Business, Product and Geographical Area Information and Concentration of Risk, Net Sales by End Market Segment Applications (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net Sales: | ||
Revenues | $ 395.2 | $ 388 |
Transferred at Point in Time | ||
Net Sales: | ||
Revenues | 131.8 | 156.6 |
Transferred over Time | ||
Net Sales: | ||
Revenues | 263.4 | 231.4 |
Aero/HS products | ||
Net Sales: | ||
Revenues | 198.5 | 170.2 |
Automotive Extrusions | ||
Net Sales: | ||
Revenues | 53 | 60.5 |
GE products | ||
Net Sales: | ||
Revenues | 130 | 143.3 |
Other products | ||
Net Sales: | ||
Revenues | $ 13.7 | $ 14 |
Business, Product and Geograp_4
Business, Product and Geographical Area Information and Concentration of Risk, Income Taxes Paid by Geographical Area (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information | ||
Income taxes paid | $ 0.9 | $ 0.2 |
Domestic | ||
Segment Reporting Information | ||
Income taxes paid | 0.1 | 0.2 |
Foreign | ||
Segment Reporting Information | ||
Income taxes paid | $ 0.8 | $ 0 |
Business, Product and Geograp_5
Business, Product and Geographical Area Information and Concentration of Risk, Supply Information (Details) - Supplier Concentration Risk - Aluminum | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Top five major suppliers | ||
Concentration Risk | ||
Percentage of total primary aluminum supply (percent) | 71.00% | 81.00% |
Largest supplier | ||
Concentration Risk | ||
Percentage of total primary aluminum supply (percent) | 20.00% | 39.00% |
Second and third largest suppliers | ||
Concentration Risk | ||
Percentage of total primary aluminum supply (percent) | 28.00% | 27.00% |
Business, Product and Geograp_6
Business, Product and Geographical Area Information and Concentration of Risk, Narrative (Details) - productionfacilities | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
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 | 1.00% | ||
Domestic | |||
Segment Reporting Information | |||
Number of production facilities | 12 | ||
Foreign | |||
Segment Reporting Information | |||
Number of production facilities | 1 | ||
Customer Concentration Risk | Largest Customer | Sales Revenue, Net | |||
Segment Reporting Information | |||
Concentration percentages (percent) | 24.00% | 27.00% | |
Customer Concentration Risk | Largest Customer | Accounts Receivable | |||
Segment Reporting Information | |||
Concentration percentages (percent) | 29.00% | 31.00% | |
Customer Concentration Risk | Second Largest Customer | Sales Revenue, Net | |||
Segment Reporting Information | |||
Concentration percentages (percent) | 14.00% | 13.00% | |
Customer Concentration Risk | Second Largest Customer | Accounts Receivable | |||
Segment Reporting Information | |||
Concentration percentages (percent) | 13.00% | 11.00% |
Condensed Guarantor and Non-G_3
Condensed Guarantor and Non-Guarantor Financial Information, Balance Sheets (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||||
Cash and cash equivalents | $ 115.3 | $ 125.6 | $ 135 | |
Short-term investments | 22.3 | 36.7 | ||
Receivables: | ||||
Trade receivables, net | 195.8 | 179.8 | ||
Intercompany receivables | 0 | 0 | ||
Other | 22.4 | 25.6 | ||
Contract assets | 58.4 | 54.9 | ||
Inventories | 233.9 | 215.1 | ||
Prepaid expenses and other current assets | 23 | 18.9 | ||
Total current assets | 671.1 | 656.6 | ||
Investments in and advances to subsidiaries | 0 | 0 | ||
Property, plant and equipment, net | 610.9 | 611.8 | ||
Operating lease assets | 27.4 | 0 | ||
Long-term intercompany loans receivable | 0 | 0 | ||
Deferred tax assets, net | 22.4 | 35.9 | ||
Intangible assets, net | 31.7 | 32.4 | ||
Goodwill | 44 | 44 | ||
Other assets | 40.3 | 38.6 | ||
Total | 1,447.8 | 1,419.3 | ||
Current liabilities: | ||||
Accounts payable | 124.4 | 121.4 | ||
Intercompany loans payable | 0 | 0 | ||
Accrued salaries, wages and related expenses | 28.2 | 40.1 | ||
Other accrued liabilities | 51.6 | 44 | ||
Total current liabilities | 204.2 | 205.5 | ||
Long-term portion of operating lease liabilities | 26.6 | 0 | ||
Net liabilities of Salaried VEBA | 32.5 | 32.4 | ||
Deferred tax liabilities | 4.2 | 4.2 | ||
Long-term intercompany loans payable | 0 | 0 | ||
Long-term liabilities | 61.8 | 66.4 | ||
Long-term debt | 370.6 | 370.4 | ||
Total liabilities | 699.9 | 678.9 | ||
Total stockholders' equity | 747.9 | 740.4 | $ 753.6 | $ 746.3 |
Total | 1,447.8 | 1,419.3 | ||
Consolidating Adjustments | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Short-term investments | 0 | 0 | ||
Receivables: | ||||
Trade receivables, net | 0 | 0 | ||
Intercompany receivables | (111.4) | (148.1) | ||
Other | 0 | 0 | ||
Contract assets | 0 | 0 | ||
Inventories | 0 | 0 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Total current assets | (111.4) | (148.1) | ||
Investments in and advances to subsidiaries | (1,117) | (1,069.8) | ||
Property, plant and equipment, net | 0 | 0 | ||
Operating lease assets | 0 | |||
Long-term intercompany loans receivable | (7.2) | (9.8) | ||
Deferred tax assets, net | 3 | 3 | ||
Intangible assets, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total | (1,232.6) | (1,224.7) | ||
Current liabilities: | ||||
Accounts payable | 0 | 0 | ||
Intercompany loans payable | (111.4) | (148.1) | ||
Accrued salaries, wages and related expenses | 0 | 0 | ||
Other accrued liabilities | (1.5) | (6.3) | ||
Total current liabilities | (112.9) | (154.4) | ||
Long-term portion of operating lease liabilities | 0 | |||
Net liabilities of Salaried VEBA | 0 | 0 | ||
Deferred tax liabilities | 0 | 0 | ||
Long-term intercompany loans payable | (7.2) | (9.8) | ||
Long-term liabilities | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Total liabilities | (120.1) | (164.2) | ||
Total stockholders' equity | (1,112.5) | (1,060.5) | ||
Total | (1,232.6) | (1,224.7) | ||
Parent | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Short-term investments | 0 | 0 | ||
Receivables: | ||||
Trade receivables, net | 0 | 0 | ||
Intercompany receivables | 106.7 | 143.7 | ||
Other | 0 | 0 | ||
Contract assets | 0 | 0 | ||
Inventories | 0 | 0 | ||
Prepaid expenses and other current assets | 0.1 | 0.1 | ||
Total current assets | 106.8 | 143.8 | ||
Investments in and advances to subsidiaries | 1,021.3 | 974.7 | ||
Property, plant and equipment, net | 0 | 0 | ||
Operating lease assets | 0 | |||
Long-term intercompany loans receivable | 0 | 0 | ||
Deferred tax assets, net | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total | 1,128.1 | 1,118.5 | ||
Current liabilities: | ||||
Accounts payable | 1.3 | 4.9 | ||
Intercompany loans payable | 0 | 0 | ||
Accrued salaries, wages and related expenses | 0 | 0 | ||
Other accrued liabilities | 8.3 | 2.8 | ||
Total current liabilities | 9.6 | 7.7 | ||
Long-term portion of operating lease liabilities | 0 | |||
Net liabilities of Salaried VEBA | 0 | 0 | ||
Deferred tax liabilities | 0 | 0 | ||
Long-term intercompany loans payable | 0 | 0 | ||
Long-term liabilities | 0 | 0 | ||
Long-term debt | 370.6 | 370.4 | ||
Total liabilities | 380.2 | 378.1 | ||
Total stockholders' equity | 747.9 | 740.4 | ||
Total | 1,128.1 | 1,118.5 | ||
Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 111.2 | 122.6 | ||
Short-term investments | 22.3 | 36.7 | ||
Receivables: | ||||
Trade receivables, net | 190.3 | 174 | ||
Intercompany receivables | 0.3 | 0.1 | ||
Other | 20.8 | 23.3 | ||
Contract assets | 53.8 | 52 | ||
Inventories | 220 | 203 | ||
Prepaid expenses and other current assets | 22.5 | 18.4 | ||
Total current assets | 641.2 | 630.1 | ||
Investments in and advances to subsidiaries | 95.5 | 94.9 | ||
Property, plant and equipment, net | 576.9 | 577.4 | ||
Operating lease assets | 27.4 | |||
Long-term intercompany loans receivable | 0 | 0 | ||
Deferred tax assets, net | 19.4 | 32.9 | ||
Intangible assets, net | 23.2 | 23.6 | ||
Goodwill | 18.7 | 18.8 | ||
Other assets | 40.3 | 38.6 | ||
Total | 1,442.6 | 1,416.3 | ||
Current liabilities: | ||||
Accounts payable | 115.6 | 109.6 | ||
Intercompany loans payable | 111.3 | 148 | ||
Accrued salaries, wages and related expenses | 26.5 | 38.3 | ||
Other accrued liabilities | 44.4 | 46.7 | ||
Total current liabilities | 297.8 | 342.6 | ||
Long-term portion of operating lease liabilities | 26.6 | |||
Net liabilities of Salaried VEBA | 32.5 | 32.4 | ||
Deferred tax liabilities | 0 | 0 | ||
Long-term intercompany loans payable | 7.2 | 9.8 | ||
Long-term liabilities | 58.8 | 63.3 | ||
Long-term debt | 0 | 0 | ||
Total liabilities | 422.9 | 448.1 | ||
Total stockholders' equity | 1,019.7 | 968.2 | ||
Total | 1,442.6 | 1,416.3 | ||
Non-Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 4.1 | 3 | ||
Short-term investments | 0 | 0 | ||
Receivables: | ||||
Trade receivables, net | 5.5 | 5.8 | ||
Intercompany receivables | 4.4 | 4.3 | ||
Other | 1.6 | 2.3 | ||
Contract assets | 4.6 | 2.9 | ||
Inventories | 13.9 | 12.1 | ||
Prepaid expenses and other current assets | 0.4 | 0.4 | ||
Total current assets | 34.5 | 30.8 | ||
Investments in and advances to subsidiaries | 0.2 | 0.2 | ||
Property, plant and equipment, net | 34 | 34.4 | ||
Operating lease assets | 0 | |||
Long-term intercompany loans receivable | 7.2 | 9.8 | ||
Deferred tax assets, net | 0 | 0 | ||
Intangible assets, net | 8.5 | 8.8 | ||
Goodwill | 25.3 | 25.2 | ||
Other assets | 0 | 0 | ||
Total | 109.7 | 109.2 | ||
Current liabilities: | ||||
Accounts payable | 7.5 | 6.9 | ||
Intercompany loans payable | 0.1 | 0.1 | ||
Accrued salaries, wages and related expenses | 1.7 | 1.8 | ||
Other accrued liabilities | 0.4 | 0.8 | ||
Total current liabilities | 9.7 | 9.6 | ||
Long-term portion of operating lease liabilities | 0 | |||
Net liabilities of Salaried VEBA | 0 | 0 | ||
Deferred tax liabilities | 4.2 | 4.2 | ||
Long-term intercompany loans payable | 0 | 0 | ||
Long-term liabilities | 3 | 3.1 | ||
Long-term debt | 0 | 0 | ||
Total liabilities | 16.9 | 16.9 | ||
Total stockholders' equity | 92.8 | 92.3 | ||
Total | $ 109.7 | $ 109.2 |
Condensed Guarantor and Non-G_4
Condensed Guarantor and Non-Guarantor Financial Information, Comprehensive Income Statements (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||
Revenues | $ 395.2 | $ 388 |
Costs and expenses: | ||
Cost of products sold, excluding depreciation and amortization and other items | 315.1 | 316.7 |
Depreciation and amortization | 11.9 | 10.5 |
Selling, general, administrative, research and development | 25.2 | 23.6 |
Other operating charges, net | 0 | 0.1 |
Total costs and expenses | 352.2 | 350.9 |
Operating income | 43 | 37.1 |
Other income (expense): | ||
Interest expense | (5.7) | (5.6) |
Other income, net | 0.5 | 0.1 |
Income before income taxes | 37.8 | 31.6 |
Income tax provision | (9.8) | (5.9) |
Earnings in equity of subsidiaries | 0 | 0 |
Net income | 28 | 25.7 |
Comprehensive income | 37.7 | 17.4 |
Consolidating Adjustments | ||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||
Revenues | (19.4) | (22.4) |
Costs and expenses: | ||
Cost of products sold, excluding depreciation and amortization and other items | (18.9) | (21.8) |
Depreciation and amortization | 0 | 0 |
Selling, general, administrative, research and development | (0.5) | (0.7) |
Other operating charges, net | 0 | |
Total costs and expenses | (19.4) | (22.5) |
Operating income | 0 | 0.1 |
Other income (expense): | ||
Interest expense | 0.1 | 0.1 |
Other income, net | (0.1) | (0.1) |
Income before income taxes | 0 | 0.1 |
Income tax provision | 1.5 | 1.5 |
Earnings in equity of subsidiaries | (34.8) | (32.7) |
Net income | (33.3) | (31.1) |
Comprehensive income | (43) | (22.8) |
Parent | ||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||
Revenues | 0 | 0 |
Costs and expenses: | ||
Cost of products sold, excluding depreciation and amortization and other items | 0 | 0 |
Depreciation and amortization | 0 | 0 |
Selling, general, administrative, research and development | 1.1 | 1.1 |
Other operating charges, net | 0 | |
Total costs and expenses | 1.1 | 1.1 |
Operating income | (1.1) | (1.1) |
Other income (expense): | ||
Interest expense | (5.2) | (5.2) |
Other income, net | 0 | 0 |
Income before income taxes | (6.3) | (6.3) |
Income tax provision | 0 | 0 |
Earnings in equity of subsidiaries | 34.3 | 32 |
Net income | 28 | 25.7 |
Comprehensive income | 37.7 | 17.4 |
Guarantor Subsidiaries | ||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||
Revenues | 385.7 | 377.9 |
Costs and expenses: | ||
Cost of products sold, excluding depreciation and amortization and other items | 309 | 309.4 |
Depreciation and amortization | 10.9 | 9.9 |
Selling, general, administrative, research and development | 22.2 | 21.3 |
Other operating charges, net | 0.1 | |
Total costs and expenses | 342.1 | 340.7 |
Operating income | 43.6 | 37.2 |
Other income (expense): | ||
Interest expense | (0.6) | (0.5) |
Other income, net | 0.3 | 0.1 |
Income before income taxes | 43.3 | 36.8 |
Income tax provision | (11) | (7.1) |
Earnings in equity of subsidiaries | 0.5 | 0.7 |
Net income | 32.8 | 30.4 |
Comprehensive income | 42.5 | 22.1 |
Non-Guarantor Subsidiaries | ||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||
Revenues | 28.9 | 32.5 |
Costs and expenses: | ||
Cost of products sold, excluding depreciation and amortization and other items | 25 | 29.1 |
Depreciation and amortization | 1 | 0.6 |
Selling, general, administrative, research and development | 2.4 | 1.9 |
Other operating charges, net | 0 | |
Total costs and expenses | 28.4 | 31.6 |
Operating income | 0.5 | 0.9 |
Other income (expense): | ||
Interest expense | 0 | 0 |
Other income, net | 0.3 | 0.1 |
Income before income taxes | 0.8 | 1 |
Income tax provision | (0.3) | (0.3) |
Earnings in equity of subsidiaries | 0 | 0 |
Net income | 0.5 | 0.7 |
Comprehensive income | $ 0.5 | $ 0.7 |
Condensed Guarantor and Non-G_5
Condensed Guarantor and Non-Guarantor Financial Information, Cash Flow Statements (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Cash flows from operating activities: | |||
Net cash (used in) provided by operating activities | $ 22.8 | $ 26.1 | |
Cash flows from investing activities | |||
Capital expenditures | (13.6) | (19.7) | |
Purchase of available for sale securities | (18.1) | 0 | |
Proceeds from disposition of available for sale securities | 32.7 | 100.3 | |
Intercompany loans receivable | 0 | 0 | |
Net cash provided by investing activities | [1] | 1 | 80.6 |
Cash flows from financing activities | |||
Repayment of finance lease | (0.3) | (0.2) | |
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | (5) | (6.9) | |
Repurchase of common stock | (18.5) | (5.7) | |
Cash dividends paid to Parent | 0 | ||
Cash dividends and dividend equivalents paid | (10.2) | (10) | |
Intercompany loans payable | 0 | 0 | |
Net cash used in financing activities | [1] | (34) | (22.8) |
Net increase in cash, cash equivalents, and restricted cash during the period | (10.2) | 83.9 | |
Cash, cash equivalents and restricted cash at beginning of period | 139.6 | 64.3 | |
Cash, cash equivalents and restricted cash at end of period | 129.4 | 148.2 | |
Consolidating Adjustments | |||
Cash flows from operating activities: | |||
Net cash (used in) provided by operating activities | 0 | (100) | |
Cash flows from investing activities | |||
Capital expenditures | 0 | 0 | |
Purchase of available for sale securities | 0 | ||
Proceeds from disposition of available for sale securities | 0 | 0 | |
Intercompany loans receivable | (39.3) | 77 | |
Net cash provided by investing activities | (39.3) | 77 | |
Cash flows from financing activities | |||
Repayment of finance lease | 0 | 0 | |
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | 0 | 0 | |
Repurchase of common stock | 0 | 0 | |
Cash dividends paid to Parent | 100 | ||
Cash dividends and dividend equivalents paid | 0 | 0 | |
Intercompany loans payable | 39.3 | (77) | |
Net cash used in financing activities | 39.3 | 23 | |
Net increase in cash, cash equivalents, and restricted cash during the period | 0 | 0 | |
Cash, cash equivalents and restricted cash at beginning of period | 0 | 0 | |
Cash, cash equivalents and restricted cash at end of period | 0 | 0 | |
Parent | |||
Cash flows from operating activities: | |||
Net cash (used in) provided by operating activities | (3.3) | 99.7 | |
Cash flows from investing activities | |||
Capital expenditures | 0 | 0 | |
Purchase of available for sale securities | 0 | ||
Proceeds from disposition of available for sale securities | 0 | 0 | |
Intercompany loans receivable | 37 | (77.1) | |
Net cash provided by investing activities | 37 | (77.1) | |
Cash flows from financing activities | |||
Repayment of finance lease | 0 | 0 | |
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | (5) | (6.9) | |
Repurchase of common stock | (18.5) | (5.7) | |
Cash dividends paid to Parent | 0 | ||
Cash dividends and dividend equivalents paid | (10.2) | (10) | |
Intercompany loans payable | 0 | 0 | |
Net cash used in financing activities | (33.7) | (22.6) | |
Net increase in cash, cash equivalents, and restricted cash during the period | 0 | 0 | |
Cash, cash equivalents and restricted cash at beginning of period | 0 | 0 | |
Cash, cash equivalents and restricted cash at end of period | 0 | 0 | |
Guarantor Subsidiaries | |||
Cash flows from operating activities: | |||
Net cash (used in) provided by operating activities | 27.2 | 25.6 | |
Cash flows from investing activities | |||
Capital expenditures | (13.3) | (19.4) | |
Purchase of available for sale securities | (18.1) | ||
Proceeds from disposition of available for sale securities | 32.7 | 100.3 | |
Intercompany loans receivable | (0.2) | 0 | |
Net cash provided by investing activities | 1.1 | 80.9 | |
Cash flows from financing activities | |||
Repayment of finance lease | (0.3) | (0.2) | |
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | 0 | 0 | |
Repurchase of common stock | 0 | 0 | |
Cash dividends paid to Parent | (100) | ||
Cash dividends and dividend equivalents paid | 0 | 0 | |
Intercompany loans payable | (39.3) | 77 | |
Net cash used in financing activities | (39.6) | (23.2) | |
Net increase in cash, cash equivalents, and restricted cash during the period | (11.3) | 83.3 | |
Cash, cash equivalents and restricted cash at beginning of period | 136.3 | 61.3 | |
Cash, cash equivalents and restricted cash at end of period | 125 | 144.6 | |
Non-Guarantor Subsidiaries | |||
Cash flows from operating activities: | |||
Net cash (used in) provided by operating activities | (1.1) | 0.8 | |
Cash flows from investing activities | |||
Capital expenditures | (0.3) | (0.3) | |
Purchase of available for sale securities | 0 | ||
Proceeds from disposition of available for sale securities | 0 | 0 | |
Intercompany loans receivable | 2.5 | 0.1 | |
Net cash provided by investing activities | 2.2 | (0.2) | |
Cash flows from financing activities | |||
Repayment of finance lease | 0 | 0 | |
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | 0 | 0 | |
Repurchase of common stock | 0 | 0 | |
Cash dividends paid to Parent | 0 | ||
Cash dividends and dividend equivalents paid | 0 | 0 | |
Intercompany loans payable | 0 | 0 | |
Net cash used in financing activities | 0 | 0 | |
Net increase in cash, cash equivalents, and restricted cash during the period | 1.1 | 0.6 | |
Cash, cash equivalents and restricted cash at beginning of period | 3.3 | 3 | |
Cash, cash equivalents and restricted cash at end of period | $ 4.4 | $ 3.6 | |
[1] | See Note 12 |
Condensed Guarantor and Non-G_6
Condensed Guarantor and Non-Guarantor Financial Information, Narrative (Details) - USD ($) | Mar. 31, 2019 | May 15, 2016 |
Condensed Financial Statements, Captions | ||
Ownership interest by parent | 100.00% | |
Senior Notes Due 2024 | Senior Notes | ||
Condensed Financial Statements, Captions | ||
Debt principal amount | $ 375,000,000 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 15, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Subsequent Event [Line Items] | |||
Cash dividends declared (in dollars per share) | $ 0.60 | $ 0.55 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Cash dividends declared (in dollars per share) | $ 0.60 | ||
Cash dividends declared | $ 9.8 |