Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 26, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | AK STEEL HOLDING CORPORATION | |
Entity Central Index Key | 918,160 | |
Trading Symbol | AKS | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 314,825,249 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net sales | $ 1,533.4 | $ 1,518.8 |
Cost of products sold (exclusive of items shown separately below) | 1,310.8 | 1,365.5 |
Selling and administrative expenses (exclusive of items shown separately below) | 71.2 | 63.5 |
Depreciation | 55.1 | 53.7 |
Pension and OPEB expense (income) | (16.2) | (11.9) |
Total operating costs | 1,420.9 | 1,470.8 |
Operating profit | 112.5 | 48 |
Interest expense | 39.4 | 42.8 |
Other income (expense) | (7.8) | (0.7) |
Income before income taxes | 65.3 | 4.5 |
Income tax expense (benefit) | (13.4) | 0.1 |
Net income (loss) | 78.7 | 4.4 |
Less: Net income attributable to noncontrolling interests | 16.2 | 18 |
Net income (loss) attributable to AK Steel Holding Corporation | $ 62.5 | $ (13.6) |
Net income (loss) per share attributable to AK Steel Holding Corporation common stockholders: | ||
Basic | $ 0.20 | $ (0.08) |
Diluted | $ 0.19 | $ (0.08) |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net income | $ 78.7 | $ 4.4 |
Other comprehensive income (loss), before tax: | ||
Foreign currency translation gain (loss) | 0.3 | 1.5 |
Cash flow hedges: | ||
Gains (losses) arising in period | (8) | (7.8) |
Reclassification of losses (gains) to net income (loss) | (3.2) | 13.2 |
Pension and OPEB plans: | ||
Reclassification of prior service cost (credits) included in net income (loss) | (13.4) | (13.8) |
Reclassification of losses (gains) included in net income (loss) | 1.6 | 5.9 |
Other comprehensive income (loss), before tax | (22.7) | (1) |
Income tax benefit related to items of comprehensive income (loss) | 0 | 0 |
Other comprehensive income (loss) | (22.7) | (1) |
Comprehensive income (loss) | 56 | 3.4 |
Less: Comprehensive income attributable to noncontrolling interests | 16.2 | 18 |
Comprehensive income (loss) attributable to AK Steel Holding Corporation | $ 39.8 | $ (14.6) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 185.7 | $ 173.2 |
Accounts receivable, net | 524.5 | 442 |
Inventory, net | 1,105.8 | 1,113.9 |
Other current assets | 107.7 | 94.6 |
Total current assets | 1,923.7 | 1,823.7 |
Property, plant and equipment | 6,585.4 | 6,569 |
Accumulated depreciation | (4,609.4) | (4,554.6) |
Property, plant and equipment, net | 1,976 | 2,014.4 |
Other non-current assets | 204.7 | 197.9 |
TOTAL ASSETS | 4,104.4 | 4,036 |
Current liabilities: | ||
Accounts payable | 651.5 | 589.9 |
Accrued liabilities | 176.6 | 234.1 |
Current portion of long-term debt | 168.5 | 0 |
Current portion of pension and other postretirement benefit obligations | 41.3 | 41.3 |
Total current liabilities | 1,037.9 | 865.3 |
Non-current liabilities: | ||
Long-term debt | 1,684.5 | 1,816.6 |
Pension and other postretirement benefit obligations | 1,077.6 | 1,093.7 |
Other non-current liabilities | 149.9 | 148.4 |
TOTAL LIABILITIES | 3,949.9 | 3,924 |
EXCHANGEABLE NOTES EXCHANGE FEATURE | 19.7 | 21.3 |
Equity: | ||
Common stock, authorized 450,000,000 shares of $0.01 par value each; issued 315,663,417 and 314,739,500 shares in 2017 and 2016; outstanding 314,785,342 and 314,160,557 shares in 2017 and 2016 | 3.2 | 3.1 |
Additional paid-in capital | 2,861.4 | 2,855.4 |
Treasury stock, common shares at cost, 878,075 and 578,943 shares in 2017 and 2016 | (5.3) | (2.4) |
Accumulated deficit | (3,002.3) | (3,064.8) |
Accumulated other comprehensive loss | (86.2) | (63.5) |
Total stockholders' equity (deficit) | (229.2) | (272.2) |
Noncontrolling interests | 364 | 362.9 |
TOTAL EQUITY | 134.8 | 90.7 |
TOTAL LIABILITIES AND EQUITY | 4,104.4 | 4,036 |
Variable Interest Entity, Primary Beneficiary [Member] | SunCoke Middletown [Member] | ||
Current assets: | ||
Cash and cash equivalents | 10.1 | 5 |
Inventory, net | 17.8 | 16.2 |
Property, plant and equipment | 422.4 | 422.3 |
Accumulated depreciation | (76.6) | (72.5) |
Other assets (liabilities), net | (0.7) | (2.3) |
Current liabilities: | ||
Accounts payable | 10.9 | 7.8 |
Equity: | ||
Noncontrolling interests | 362.1 | 360.9 |
Variable Interest Entity, Primary Beneficiary [Member] | Other Variable Interest Entities [Member] | ||
Current assets: | ||
Cash and cash equivalents | 0.8 | 0.8 |
Property, plant and equipment | 11.8 | 11.8 |
Accumulated depreciation | (9.6) | (9.5) |
Other assets (liabilities), net | 0.9 | 1 |
Equity: | ||
Noncontrolling interests | $ 1.9 | $ 2 |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) Parentheticals - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||
Common Stock, Shares Authorized | 450,000,000 | 450,000,000 |
Common Stock, Par Value | $ 0.01 | $ 0.01 |
Common Stock, Shares Issued | 315,663,417 | 314,739,500 |
Common Stock, Shares Outstanding | 314,785,342 | 314,160,557 |
Treasury Stock, Shares | 878,075 | 578,943 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 78.7 | $ 4.4 |
Depreciation | 55.1 | 53.7 |
Amortization | 7.2 | 5.3 |
Deferred income taxes | (11.9) | 4.5 |
Pension and OPEB expense (income) | (16.2) | (11.9) |
Other postretirement benefit payments | (11.4) | (9.6) |
Changes in working capital | (54.6) | 71.6 |
Other operating items, net | (10.6) | 18.7 |
Net cash flows from operating activities | 36.3 | 136.7 |
Cash flows from investing activities: | ||
Capital investments | (32.5) | (28.8) |
Other investing items, net | 1.5 | (0.1) |
Net cash flows from investing activities | (31) | (28.9) |
Cash flows from financing activities: | ||
Net borrowings (payments) under credit facility | 0 | (30) |
Proceeds from issuance of long-term debt | 400 | 0 |
Redemption of long-term debt | (367.5) | 0 |
Debt issuance costs | (7.8) | 0 |
SunCoke Middletown distributions to noncontrolling interest owners | (15.1) | (21.1) |
Other financing items, net | (2.4) | (0.3) |
Net cash flows from financing activities | 7.2 | (51.4) |
Net increase (decrease) in cash and cash equivalents | 12.5 | 56.4 |
Cash and cash equivalents, beginning of period | 173.2 | 56.6 |
Cash and cash equivalents, end of period | 185.7 | 113 |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | ||
Cash flows from operating activities: | ||
Depreciation | 51 | 50.1 |
Variable Interest Entity, Primary Beneficiary [Member] | SunCoke Middletown [Member] | ||
Cash flows from operating activities: | ||
Depreciation | 4.1 | 3.6 |
Net cash flows from operating activities | 20.3 | 20.4 |
Cash flows from financing activities: | ||
SunCoke Middletown distributions to noncontrolling interest owners | (15.1) | $ (21.1) |
Cash and cash equivalents, beginning of period | 5 | |
Cash and cash equivalents, end of period | $ 10.1 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (unaudited) - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interests [Member] |
Balance at Dec. 31, 2015 | $ (595.6) | $ 1.8 | $ 2,266.8 | $ (2) | $ (3,057) | $ (187.2) | $ 382 |
Net income (loss) | 4.4 | (13.6) | 18 | ||||
Share-based compensation | 2 | 2 | |||||
Purchase of treasury stock | (0.3) | (0.3) | |||||
Change in accumulated other comprehensive income (loss) | (1) | (1) | |||||
Net distributions to noncontrolling interests | (21.1) | (21.1) | |||||
Balance at Mar. 31, 2016 | (611.6) | 1.8 | 2,268.8 | (2.3) | (3,070.6) | (188.2) | 378.9 |
Balance at Dec. 31, 2016 | 90.7 | 3.1 | 2,855.4 | (2.4) | (3,064.8) | (63.5) | 362.9 |
Net income (loss) | 78.7 | 62.5 | 16.2 | ||||
Share-based compensation | 4.2 | 0.1 | 4.1 | ||||
Stock options exercised | 0.3 | 0.3 | |||||
Exchangeable notes exchange feature | 1.6 | 1.6 | |||||
Purchase of treasury stock | (2.9) | (2.9) | |||||
Change in accumulated other comprehensive income (loss) | (22.7) | (22.7) | |||||
Net distributions to noncontrolling interests | (15.1) | (15.1) | |||||
Balance at Mar. 31, 2017 | $ 134.8 | $ 3.2 | $ 2,861.4 | $ (5.3) | $ (3,002.3) | $ (86.2) | $ 364 |
Basis of Presentation (Notes)
Basis of Presentation (Notes) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation These financial statements consolidate the operations and accounts of AK Steel Holding Corporation (“AK Holding”), its wholly-owned subsidiary AK Steel Corporation (“AK Steel”), all subsidiaries in which AK Holding has a controlling interest, and two variable interest entities for which AK Steel is the primary beneficiary. Unless the context provides otherwise, references to “we,” “us” and “our” refer to AK Holding and its subsidiaries. In our opinion, the accompanying condensed consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, necessary to present fairly our financial position as of March 31, 2017 and December 31, 2016 , our results of operations for the three months ended March 31, 2017 and 2016 , and our cash flows for the three months ended March 31, 2017 and 2016 . Our results of operations for the three months ended March 31, 2017 are not necessarily indicative of the results we expect for the full year ending December 31, 2017 . These condensed consolidated financial statements should be read along with our audited consolidated financial statements for the year ended December 31, 2016 , included in our Annual Report on Form 10-K for the year ended December 31, 2016 |
Supplementary Financial Stateme
Supplementary Financial Statement Information (Notes) | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Supplementary Financial Statement Information | Supplementary Financial Statement Information Inventory, net Inventories as of March 31, 2017 and December 31, 2016 , are presented below: March 31, December 31, Finished and semi-finished $ 916.3 $ 855.0 Raw materials 381.8 415.8 Total cost 1,298.1 1,270.8 Adjustment to state inventories at LIFO value (192.3 ) (156.9 ) Inventory, net $ 1,105.8 $ 1,113.9 Investments in Affiliates We have investments in several businesses accounted for using the equity method of accounting. Cost of products sold includes $3.4 and $2.9 for the three months ended March 31, 2017 and 2016 , for our share of income of equity investees. Summarized financial statement data for all investees is presented below. Three Months Ended March 31, 2017 2016 Revenue $ 72.5 $ 69.6 Gross profit 25.5 23.0 Net income 8.9 7.8 Facility Idling In the fourth quarter of 2015, we temporarily idled the Ashland Works blast furnace and steelmaking operations (“Ashland Works Hot End”). We incurred charges during the fourth quarter of 2015 for supplemental unemployment and other employee benefit costs and for equipment idling, asset preservation and other costs. The supplemental unemployment and other employee benefit costs were recorded as accrued liabilities in the condensed consolidated balance sheet, and the activity for the three months ended March 31, 2017 and 2016 was as follows: Three Months Ended March 31, 2017 2016 Balance at beginning of period $ 6.1 $ 22.1 Payments (1.7 ) (4.9 ) Balance at end of period $ 4.4 $ 17.2 We estimate we will incur on-going costs of approximately $2.0 per month for maintenance of the equipment, utilities and supplier obligations related to the temporarily idled Ashland Works Hot End. These costs were $5.6 and $7.3 for the three months ended March 31, 2017 and 2016 . The carrying value of the long-lived assets associated with the temporarily idled operations totaled approximately $70.0 as of March 31, 2017 |
Income Taxes (Notes)
Income Taxes (Notes) | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income taxes recorded through March 31, 2017 and 2016 , were estimated using the discrete method. Income taxes are based on our financial results through the end of the period, as well as the related change in the valuation allowance on deferred tax assets. We are unable to estimate the annual effective tax rate with sufficient precision for purposes of the effective tax rate method, which requires us to consider a projection of full-year income and the expected change in the valuation allowance. The estimated annual effective tax rate method was not reliable due to its sensitivity to small changes to forecasted annual pre-tax earnings and the effect of our valuation allowance, which create results with significant variations in the customary relationship between income tax expense and pre-tax income for the interim periods. As a result, we determined that using the discrete method is more appropriate than using the annual effective tax rate method. We have estimated the change in valuation allowances required based on our year-to-date financial results and the change in value of the identified tax-planning strategy, which is determined based on year-to-date changes in the LIFO reserve. In addition, the change in valuation allowance for the three months ended March 31, 2016 includes a $4.4 benefit related to the realizability of certain alternative minimum tax credits. |
Long-term Debt and Other Financ
Long-term Debt and Other Financing (Notes) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-term Debt and Other Financing | Long-term Debt and Other Financing Debt balances at March 31, 2017 , and December 31, 2016 , are presented below: March 31, December 31, Credit Facility $ — $ — 7.50% Senior Secured Notes due July 2023 (effective rate of 8.3%) 380.0 380.0 5.00% Exchangeable Senior Notes due November 2019 (effective rate of 10.8%) 150.0 150.0 7.625% Senior Notes due May 2020 (to be redeemed May 2017) 168.5 529.8 7.625% Senior Notes due October 2021 406.2 406.2 8.375% Senior Notes due April 2022 279.8 279.8 7.00% Senior Notes due March 2027 400.0 — Industrial Revenue Bonds due 2020 through 2028 99.3 99.3 Capital lease for Research and Innovation Center 25.2 25.2 Unamortized debt discount/premium and debt issuance costs (56.0 ) (53.7 ) Total debt 1,853.0 1,816.6 Less: Current portion of long-term debt 168.5 — Total long-term debt $ 1,684.5 $ 1,816.6 During the three months ended March 31, 2017 , we were in compliance with all the terms and conditions of our debt agreements. Credit Facility We have a $1,500.0 revolving credit facility (the “Credit Facility”), which expires in March 2019 and is guaranteed by AK Holding and by AK Tube LLC (“AK Tube”), AK Steel Properties, Inc. (“AK Properties”) and Mountain State Carbon LLC (“Mountain State Carbon”), three 100%-owned subsidiaries of AK Steel (referred to together as the “Subsidiary Guarantors”). The Credit Facility contains common restrictions, including limitations on, among other things, distributions and dividends, acquisitions and investments, indebtedness, liens and affiliate transactions. The Credit Facility requires that we maintain a minimum fixed charge coverage ratio of one to one if availability under the Credit Facility is less than $150.0 . The Credit Facility’s current availability significantly exceeds $150.0 . Availability is calculated as the lesser of the Credit Facility commitment or eligible collateral after advance rates, less outstanding revolver borrowings and letters of credit. We secure our Credit Facility obligations with our inventory and accounts receivable, and the Credit Facility’s availability fluctuates monthly based on the varying levels of eligible collateral. We do not expect any of these restrictions to affect or limit our ability to conduct business in the ordinary course. The Credit Facility includes a separate “first-in, last-out”, or “FILO” tranche, which allows us to use a portion of our eligible collateral at higher advance rates. As of March 31, 2017 , there were no outstanding borrowings under the Credit Facility. At March 31, 2017 , our eligible collateral, after application of applicable advance rates, was $1,352.0 . Availability as of March 31, 2017 was reduced by $70.7 for outstanding letters of credit, resulting in remaining availability of $1,281.3 . Senior Unsecured Notes In March 2017 , AK Steel issued $400.0 aggregate principal amount of 7.00% Senior Unsecured Notes due March 2027 (the “2027 Notes”) and generated net proceeds of $394.0 after underwriting discount. The 2027 Notes are fully and unconditionally guaranteed by AK Holding and by the Subsidiary Guarantors. We used a portion of the net proceeds to pay the cash tender offer of our 7.625% Senior Unsecured Notes due May 2020 (the “2020 Notes”), as further discussed below. Similar to our other senior unsecured notes, the indenture governing the 2027 Notes includes covenants with customary restrictions on (a) the incurrence of additional debt by certain subsidiaries, (b) the incurrence of certain liens, (c) the incurrence of sale/leaseback transactions, and (d) our ability to merge or consolidate with other entities or to sell, lease or transfer all or substantially all of our assets to another entity. The 2027 Notes also contain customary events of default. Before March 15, 2022, we may redeem the 2027 Notes at a price equal to par plus a make-whole premium and all accrued and unpaid interest to the date of redemption. After that date, we may redeem them at 103.500% until March 15, 2023, 102.333% thereafter until March 15, 2024, 101.167% thereafter until March 15, 2025, and 100.000% thereafter, together with all accrued and unpaid interest to the date of redemption . Concurrently with the issuance of the 2027 Notes, we repurchased $361.3 of 2020 Notes through a cash tender offer (the “Tender Offer”) at a tender price equal to 102.125% of principal plus accrued and unpaid interest. We also issued a notice of redemption providing that, as of May 15, 2017, we will redeem all 2020 Notes that were not tendered and remained outstanding following the Tender Offer at a redemption price of 101.271% plus accrued and unpaid interest (the “2020 Notes Redemption”). We will use the remaining proceeds received from the issuance of the 2027 Notes, together with cash on hand and borrowings under our Credit Facility, as necessary, to effect the 2020 Notes Redemption. In the first quarter of 2017, we recognized other expense of $9.7 for expenses related to the Tender Offer and the write-off of unamortized debt discount and issue costs related to the 2020 Notes. We expect to record additional expense of approximately $3.4 in the second quarter of 2017 related to the call premium paid on the 2020 Notes Redemption and the write-off of unamortized debt discount and issuance costs related to the remaining 2020 Notes being redeemed in May 2017. Fees paid to holders of the 2020 Notes to tender their notes and expenses paid to third parties related to the issuance of the 2027 Notes, totaling approximately $7.5 , will be recognized as an adjustment of the carrying amount of the 2027 Notes and amortized over their term as an adjustment to interest expense. Exchangeable Notes AK Steel has outstanding 5.0% Exchangeable Senior Notes due 2019 (the “Exchangeable Notes”). The indenture governing the Exchangeable Notes provides holders with an exchange right at their option before August 15, 2019, if the closing price of our common stock is greater than or equal to $7.02 per share ( 130% of the exchange price of the Exchangeable Notes) for at least 20 trading days during the last 30 consecutive trading days of a calendar quarter. As of April 1, 2017, this exchange right was triggered and will remain available until June 30, 2017. Thereafter, the triggering condition will be reassessed at the beginning of each quarter while any Exchangeable Notes remain outstanding. We would be required to pay cash to holders for the principal amount of the Exchangeable Notes and to pay cash or issue common stock (at our option) for the premium if any holders elect to exchange their Exchangeable Notes. As a result of meeting this trigger at April 1, 2017 and January 1, 2017, a portion of the equity component of the Exchangeable Notes, calculated as the difference between the principal amount of the Exchangeable Notes and the carrying amount of the liability component of the Exchangeable Notes, was considered redeemable and classified as temporary equity of $19.7 and $21.3 on the condensed consolidated balance sheets at March 31, 2017 and December 31, 2016 . The value of the Exchangeable Notes if exchanged as of March 31, 2017 , would have exceeded the principal amount by $63.6 |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits (Notes) | 3 Months Ended |
Mar. 31, 2017 | |
General Discussion of Pension and Other Postretirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits We provide noncontributory pension and various healthcare and life insurance benefits to most employees and retirees. We are required to contribute $44.1 to the master pension trust during 2017. Based on current actuarial assumptions, we estimate that our required pension contributions will be approximately $60.0 and $75.0 in 2018 and 2019. Factors that affect our estimates of future funding projections include return on plan assets, actuarial data and assumptions relating to plan participants, the discount rate used to measure the pension obligations and changes to regulatory funding requirements. Net periodic benefit cost (income) for pension and other postretirement benefits was as follows: Three Months Ended March 31, 2017 2016 Pension Benefits Service cost $ 0.7 $ 0.7 Interest cost 27.0 32.0 Expected return on assets (37.6 ) (42.9 ) Amortization of prior service cost 1.2 1.3 Amortization of loss 2.7 7.0 Net periodic benefit cost (income) $ (6.0 ) $ (1.9 ) Other Postretirement Benefits Service cost $ 1.2 $ 1.2 Interest cost 4.3 5.0 Amortization of prior service cost (credit) (14.6 ) (15.1 ) Amortization of (gain) loss (1.1 ) (1.1 ) Net periodic benefit cost (income) $ (10.2 ) $ (10.0 ) |
Environmental and Legal Conting
Environmental and Legal Contingencies (Notes) | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Environmental and Legal Contingencies | Environmental and Legal Contingencies Environmental Contingencies We and our predecessors have been involved in steel manufacturing and related operations since 1900. Although we believe our operating practices have been consistent with prevailing industry standards, hazardous materials may have been released at operating sites or third-party sites in the past, including operating sites that we no longer own. If we reasonably can, we have estimated potential remediation expenditures for those sites where future remediation efforts are probable based on identified conditions, regulatory requirements or contractual obligations arising from the sale of a business or facility. For sites involving government-required investigations, we typically make an estimate of potential remediation expenditures only after the investigation is complete and when we better understand the nature and scope of the remediation. In general, the material factors in these estimates include the costs associated with investigations, delineations, risk assessments, remedial work, governmental response and oversight, site monitoring, and preparation of reports to the appropriate environmental agencies. We have recorded the following liabilities for environmental matters on our condensed consolidated balance sheets: March 31, December 31, Accrued liabilities $ 7.2 $ 7.3 Other non-current liabilities 40.1 39.9 We cannot predict the ultimate costs for each site with certainty because of the evolving nature of the investigation and remediation process. Rather, to estimate the probable costs, we must make certain assumptions. The most significant of these assumptions is for the nature and scope of the work that will be necessary to investigate and remediate a particular site and the cost of that work. Other significant assumptions include the cleanup technology that will be used, whether and to what extent any other parties will participate in paying the investigation and remediation costs, reimbursement of past response and future oversight costs by governmental agencies, and the reaction of the governing environmental agencies to the proposed work plans. Costs for future investigation and remediation are not discounted to their present value. If we have been able to reasonably estimate future liabilities, we do not believe that there is a reasonable possibility that we will incur a loss or losses that exceed the amounts we accrued for the environmental matters discussed below that would, either individually or in the aggregate, have a material adverse effect on our consolidated financial condition, results of operations or cash flows. However, since we recognize amounts in the consolidated financial statements in accordance with accounting principles generally accepted in the United States that exclude potential losses that are not probable or that may not be currently estimable, the ultimate costs of these environmental proceedings may be higher than the liabilities we currently have recorded in our consolidated financial statements. Except as we expressly note below, we do not currently anticipate any material effect on our consolidated financial position, results of operations or cash flows as a result of compliance with current environmental regulations. Moreover, because all domestic steel producers operate under the same federal environmental regulations, we do not believe that we are more disadvantaged than our domestic competitors by our need to comply with these regulations. Some foreign competitors may benefit from less stringent environmental requirements in the countries where they produce, resulting in lower compliance costs for them and providing those foreign competitors with a cost advantage on their products. According to the Resource Conservation and Recovery Act (“RCRA”), which governs the treatment, handling and disposal of hazardous waste, the United States Environmental Protection Agency (“EPA”) and authorized state environmental agencies may conduct inspections of RCRA-regulated facilities to identify areas where there have been releases of hazardous waste or hazardous constituents into the environment and may order the facilities to take corrective action to remediate such releases. Environmental regulators may inspect our major steelmaking facilities. While we cannot predict the future actions of these regulators, it is possible that they may identify conditions in future inspections of these facilities which they believe require corrective action. Under authority from the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), the EPA and state environmental authorities have conducted site investigations at certain of our facilities and other third-party facilities, portions of which previously may have been used for disposal of materials that are currently regulated. The results of these investigations are still pending, and we could be directed to spend funds for remedial activities at the former disposal areas. Because of the uncertain status of these investigations, however, we cannot reliably predict whether or when such spending might be required or their magnitude. As previously reported, on July 27, 2001, we received a Special Notice Letter from the EPA requesting that we agree to conduct a Remedial Investigation/Feasibility Study (“RI/FS”) and enter an administrative order on consent pursuant to Section 122 of CERCLA regarding our former Hamilton Plant located in New Miami, Ohio. The Hamilton Plant ceased operations in 1990, and all of its former structures have been demolished and removed. Although we did not believe that a site-wide RI/FS was necessary or appropriate, in April 2002 we entered a mutually agreed-upon administrative order on consent to perform a RI/FS of the Hamilton Plant site. We submitted the investigation portion of the RI/FS, and we completed a supplemental study in 2014. We currently have accrued $0.7 for the remaining cost of the RI/FS. Until the RI/FS is complete, we cannot reliably estimate the additional costs, if any, we may incur for potentially required remediation of the site or when we may incur them. As previously reported, on September 30, 1998, our predecessor, Armco Inc., received an order from the EPA under Section 3013 of RCRA requiring it to develop a plan for investigation of eight areas of our Mansfield Works that allegedly could be sources of contamination. A site investigation began in November 2000 and is continuing. We cannot reliably estimate at this time how long it will take to complete this site investigation. We currently have accrued approximately $1.1 for the projected cost of the study. Until the site investigation is complete, we cannot reliably estimate the additional costs, if any, we may incur for potentially required remediation of the site or when we may incur them. As previously noted, on September 26, 2012, the EPA issued an order under Section 3013 of RCRA requiring us to develop a plan for investigation of four areas at our Ashland Works coke plant. The Ashland Works coke plant ceased operations in 2011 and all of its former structures have been demolished and removed. In 1981 we acquired the plant from Honeywell International Corporation (as successor to Allied Corporation), who had managed the coking operations there for approximately 60 years. In response to the Section 3013 order, we submitted a Sampling and Analysis Plan (“SAP”) to the EPA on October 25, 2012, and the EPA ultimately approved it on June 27, 2014. We completed Phase I of the SAP and submitted a report to the EPA on December 23, 2014. We cannot reliably estimate how long it will take to complete the site investigation. On March 10, 2016, the EPA invited us to participate in settlement discussions regarding an enforcement action. Settlement discussions between the parties are ongoing, though whether the parties will reach agreement and any such agreement’s terms are uncertain. We currently have accrued approximately $1.4 for the projected cost of the investigation and known remediation. Until the site investigation is complete, we cannot reliably estimate the costs, if any, we may incur for potential additional required remediation of the site or when we may incur them. As previously reported, on July 15, 2009, we and the Pennsylvania Department of Environmental Protection (“PADEP”) entered a Consent Order and Agreement (the “Consent Order”) to resolve an alleged unpermitted discharge of wastewater from the closed Hillside Landfill at our former Ambridge Works. Under the terms of the Consent Order, we paid a penalty and also agreed to implement various corrective actions, including an investigation of the area where landfill activities occurred, submission of a plan to collect and treat surface waters and seep discharges, and upon approval from PADEP, implementation of that plan. We have accrued approximately $5.6 for the remedial work required under the approved plan and Consent Order. We submitted a National Pollution Discharge Elimination System (“NPDES”) permit application to move to the next work phase. We currently estimate that the remaining work will be completed in 2018, though it may be delayed. As previously reported, on June 29, 2000, the United States filed a complaint on behalf of the EPA against us in the U.S. District Court for the Southern District of Ohio, Case No. C-1-00530, alleging violations of the Clean Air Act, the Clean Water Act and RCRA at our Middletown Works. Subsequently, the State of Ohio, the Sierra Club and the National Resources Defense Council intervened. On May 15, 2006, the court entered a Consent Decree in Partial Resolution of Pending Claims (the “Consent Decree”). Under the Consent Decree, we agreed to undertake a comprehensive RCRA facility investigation at Middletown Works and, as appropriate, complete a corrective measures study. The Consent Decree required us to implement certain RCRA corrective action interim measures to address polychlorinated biphenyls (“PCBs”) in sediments and soils at Dicks Creek and certain other specified surface waters, adjacent floodplain areas and other previously identified geographic areas. We have completed the remedial activity at Dicks Creek, but continue to work on the RCRA facility investigation and certain interim measures. We have accrued approximately $14.6 for the cost of known work required under the Consent Decree for the RCRA facility investigation and remaining interim measures. As previously reported, on May 12, 2014, the Michigan Department of Environmental Quality (“MDEQ”) issued to our Dearborn Works an Air Permit to Install No. 182-05C (the “PTI”) to increase the emission limits for the blast furnace and other emission sources. The PTI was issued as a correction to a prior permit to install that did not include certain information during the prior permitting process. On July 10, 2014, the South Dearborn Environmental Improvement Association (“SDEIA”), Detroiters Working for Environmental Justice, Original United Citizens of Southwest Detroit and the Sierra Club filed a Claim of Appeal of the PTI in the State of Michigan, Wayne County Circuit, Case No. 14-008887-AA. Appellants and the MDEQ required the intervention of Severstal Dearborn, LLC (“Dearborn”) (now owned by us) in this action as an additional appellee. The appellants allege multiple deficiencies with the PTI and the permitting process. On October 9, 2014, the appellants filed a Motion for Peremptory Reversal of the MDEQ’s decision to issue the PTI. We believe that the MDEQ issued the PTI properly in compliance with applicable law and will vigorously contest this appeal. On October 17, 2014, we filed a motion to dismiss the appeal. Additionally, on December 15, 2014, we filed a motion to dismiss the appeal for lack of jurisdiction. At the conclusion of a hearing on all three motions on February 12, 2015, all three motions were denied. On July 12, 2016, the Michigan Court of Appeals denied our motion seeking to overturn the decision of the Circuit Court denying our motion to dismiss for lack of jurisdiction. On October 5, 2016, we filed an application with the Michigan Supreme Court for leave to appeal, seeking to overturn the decision of the Michigan Court of Appeals. Until the appeal is resolved, we cannot determine what the ultimate permit limits will be. Until the permit limits are determined and final, we cannot reliably estimate the costs, if any, that we may incur if the appeal causes the permit limits to change, nor can we determine if the costs will be material or when we would incur them. As previously reported, on August 21, 2014, the SDEIA filed a Complaint under the Michigan Environmental Protection Act (“MEPA”) in the State of Michigan, Wayne County Circuit Case No. 14-010875-CE. The plaintiffs allege that the air emissions from our Dearborn Works are impacting the air, water and other natural resources, as well as the public trust in such resources. The plaintiffs are requesting, among other requested relief, that the court assess and determine the sufficiency of the PTI’s limitations. On October 15, 2014, the court ordered a stay of the proceedings until a final order is issued in Wayne County Circuit Court Case No. 14-008887-AA (discussed above). When the proceedings resume, we will vigorously contest these claims. Until the claims in this Complaint are resolved, we cannot reliably estimate the costs we may incur, if any, or when we may incur them. As previously reported, on April 27, 2000, MDEQ issued a RCRA Corrective Action Order No. 111-04-00-07E to Rouge Steel Company and Ford Motor Company for the property that includes our Dearborn Works. The Corrective Action Order has been amended five times. We are a party to the Corrective Action Order as the successor-in-interest to Dearborn, which was the successor-in-interest to Rouge Steel Company. The Corrective Action Order requires the site-wide investigation, and where appropriate, remediation of the facility. The site investigation and remediation is ongoing. We cannot reliably estimate at this time how long it will take to complete this site investigation and remediation. To date, Ford Motor Company has incurred most of the costs of the investigation and remediation due to its prior ownership of the steelmaking operations at Dearborn Works. Until the site investigation is complete, we cannot reliably estimate the additional costs we may incur, if any, for any potentially required remediation of the site or when we may incur them. As previously reported, on August 29, 2013, the West Virginia Department of Environmental Protection (“WVDEP”) issued to Mountain State Carbon a renewal NPDES permit for wastewater discharge from the facility to the Ohio River. The new NPDES permit included numerous new, and more stringent, effluent limitations. On October 7, 2013, Mountain State Carbon appealed the permit to the Environmental Quality Board (“EQB”), Appeal No. 13-25-EQB. On February 10, 2016, we reached a partial settlement with WVDEP. On June 3, 2016, we received a favorable ruling from the EQB that required WVDEP to remove the new fecal coliform limits from the discharge permit. In addition, the EQB issued favorable rulings for the two other principal issues, pertaining to selenium and temperature. WVDEP elected not to appeal the EQB’s favorable rulings and issued the final permit on March 2, 2017. This matter is now resolved. As previously reported, AK Steel received an order in October 2002 from the EPA under Section 3013 of RCRA requiring it to investigate several areas of Zanesville Works that allegedly could be sources of contamination. A site investigation began in 2003 and was approved by EPA in November 2012. On October 28, 2016, the EPA requested that we conduct a corrective measures study and implement these measures as necessary. Settlement discussions between the parties are ongoing, though whether the parties will reach agreement and any such agreement’s terms are uncertain. We currently have accrued $0.7 for the projected cost of the corrective measures study as well as a supplemental investigation. Until the study is complete, we cannot reliably estimate the costs, if any, we may incur for potential required remediation of the site or when we may incur them. On December 22, 2016 and February 7, 2017, we received Notices of Violations from the Southwest Ohio Air Quality Agency on a pickling line at our Middletown Works, alleging violations of hydrochloric acid emission rates based on source testing events conducted between October 2016 and January 2017. We investigated these claims and implemented several corrective measures. Based on additional testing conducted in January 2017, we believe that the pickling line is currently in compliance with emission limitations. Until the claims under the Notices of Violations are resolved, we cannot reliably estimate the costs we may incur, if any, or when we may incur them. In addition to the foregoing matters, we are or may be involved in proceedings with various regulatory authorities that may require us to pay fines, comply with more rigorous standards or other requirements or incur capital and operating expenses for environmental compliance. We believe that the ultimate disposition of the proceedings will not have, individually or in the aggregate, a material adverse effect on our consolidated financial condition, results of operations or cash flows. Legal Contingencies As previously reported, since 1990 we have been named as a defendant in numerous lawsuits alleging personal injury as a result of exposure to asbestos. The great majority of these lawsuits have been filed on behalf of people who claim to have been exposed to asbestos while visiting the premises of one of our current or former facilities. The majority of asbestos cases pending in which we are a defendant do not include a specific dollar claim for damages. In the cases that do include specific dollar claims for damages, the complaint typically includes a monetary claim for compensatory damages and a separate monetary claim in an equal amount for punitive damages, and does not attempt to allocate the total monetary claim among the various defendants. The number of asbestos cases pending at March 31, 2017 , is presented below: Asbestos Cases Pending at March 31, 2017 Cases with specific dollar claims for damages: Claims up to $0.2 126 Claims above $0.2 to $5.0 6 Claims above $5.0 to $15.0 2 Claims above $15.0 to $20.0 2 Total claims with specific dollar claims for damages (a) 136 Cases without a specific dollar claim for damages 210 Total asbestos cases pending 346 (a) Involve a total of 2,336 plaintiffs and 17,601 defendants In each case, the amount described is per plaintiff against all of the defendants, collectively. Thus, it usually is not possible at the outset of a case to determine the specific dollar amount of a claim against us. In fact, it usually is not even possible at the outset to determine which of the plaintiffs actually will pursue a claim against us. Typically, that can only be determined through written interrogatories or other discovery after a case has been filed. Therefore, in a case involving multiple plaintiffs and multiple defendants, we initially only account for the lawsuit as one claim. After we have determined through discovery whether a particular plaintiff will pursue a claim, we make an appropriate adjustment to statistically account for that specific claim. It has been our experience that only a small percentage of asbestos plaintiffs ultimately identify us as a target defendant from whom they actually seek damages and most of these claims ultimately are either dismissed or settled for a small fraction of the damages initially claimed. Asbestos-related claims information for the three months ended March 31, 2017 and 2016 is presented below: Three Months Ended March 31, 2017 2016 New Claims Filed 18 13 Pending Claims Disposed Of 11 46 Total Amount Paid in Settlements $ 0.1 $ 0.3 Since the onset of asbestos claims against us in 1990, five asbestos claims against us have proceeded to trial in four separate cases. All five concluded with a verdict in our favor. We continue to vigorously defend the asbestos claims. Based upon present knowledge, and the factors above, we believe it is unlikely that the resolution in the aggregate of the asbestos claims against us will have a materially adverse effect on our consolidated results of operations, cash flows or financial condition. However, predictions about the outcome of pending litigation, particularly claims alleging asbestos exposure, are subject to substantial uncertainties. These uncertainties include (1) the significantly variable rate at which new claims may be filed, (2) the effect of bankruptcies of other companies currently or historically defending asbestos claims, (3) the litigation process from jurisdiction to jurisdiction and from case to case, (4) the type and severity of the disease each claimant alleged to suffer, and (5) the potential for enactment of legislation affecting asbestos litigation. As previously reported, in September and October 2008 and again in July 2010, several companies filed purported class actions in the United States District Court for the Northern District of Illinois against nine steel manufacturers, including us. The case numbers for these actions are 08CV5214, 08CV5371, 08CV5468, 08CV5633, 08CV5700, 08CV5942, 08CV6197 and 10CV04236. On December 28, 2010, another action, case number 32,321, was filed in state court in the Circuit Court for Cocke County, Tennessee. The defendants removed the Tennessee case to federal court and in March 2012 it was transferred to the Northern District of Illinois. The plaintiffs in the various pending actions are companies that purport to have purchased steel products, directly or indirectly, from one or more of the defendants and they claim to file the actions on behalf of all persons and entities who purchased steel products for delivery or pickup in the United States from any of the named defendants at any time from at least as early as January 2005. The complaints allege that the defendant steel producers have conspired in violation of antitrust laws to restrict output and to fix, raise, stabilize and maintain artificially high prices for steel products in the United States. In March 2014, we reached an agreement with the direct purchaser plaintiffs to tentatively settle the claims asserted against us, subject to certain court approvals below. According to that settlement, we agreed to pay $5.8 to the plaintiff class of direct purchasers in exchange for the members of that class to completely release all claims. We continue to believe that the claims made against us lack any merit, but we elected to enter the settlement to avoid the ongoing expense of defending ourselves in this protracted and expensive antitrust litigation. We provided notice of the proposed settlement to members of the settlement class. After several class members received the notice, they elected to opt out of the class settlement. Following a fairness hearing, on October 21, 2014 the Court entered an order and judgment approving the settlement and dismissing all of the direct plaintiffs’ claims against us with prejudice as to the settlement class. In 2014, we recorded a charge for the amount of the tentative settlement with the direct purchaser plaintiff class and paid that amount into an escrow account, which has now been disbursed in accordance with the order that approved the settlement. On March 3, 2017, the Court granted the defendants’ motion to dismiss the indirect plaintiffs’ amended complaint on the grounds that the plaintiffs lacked antitrust standing. On April 4, 2017, the indirect plaintiffs filed a motion for reconsideration. Because we have been unable to determine that a potential loss in this case for the indirect plaintiffs is probable or estimable, we have not recorded an accrual for this matter. If our assumptions used to evaluate a probable or estimable loss for the indirect plaintiffs prove to be incorrect or change, we may be required to record a charge for their claims. As previously reported, on January 20, 2010, ArcelorMittal France and ArcelorMittal Atlantique et Lorraine (collectively “ArcelorMittal”) filed an action in the United States District Court for the District of Delaware, Case No. 10-050-SLR against us, Dearborn, and Wheeling-Nisshin Inc., whom Dearborn indemnified in this action. By virtue of our responsibility as a successor-in-interest to Dearborn and an indemnitor of Wheeling-Nisshin Inc, we now have complete responsibility for the defense of this action. The three named defendants are collectively referred to hereafter as “we” or “us”, though the precise claims against each separate defendant may vary. The complaint alleges that we are infringing the claims of U.S. Patent No. 6,296,805 (the “Patent”) in making pre-coated cold-rolled boron steel sheet and seeks injunctive relief and unspecified compensatory damages. We filed an answer denying ArcelorMittal’s claims and raised various affirmative defenses. We also filed counterclaims against ArcelorMittal for a declaratory judgment that we are not infringing the Patent and that the Patent is invalid. Subsequently, the trial court separated the issues of liability and damages. The case proceeded with a trial to a jury on the issue of liability during the week of January 15, 2011. The jury returned a verdict that we did not infringe the Patent and that the Patent was invalid. Judgment then was entered in our favor. ArcelorMittal filed an appeal with the United States Court of Appeals for the Federal Circuit. On November 30, 2012, the court of appeals issued a decision reversing certain findings related to claim construction and the validity of the Patent and remanded the case to the trial court for further proceedings. On January 30, 2013, ArcelorMittal filed a motion for rehearing with the court of appeals. On March 20, 2013, the court of appeals denied ArcelorMittal’s motion for rehearing. The case then was remanded to the trial court for further proceedings. On April 16, 2013, according to a petition previously filed by ArcelorMittal and ArcelorMittal USA LLC, the U.S. Patent and Trademark Office (“PTO”) reissued the Patent as U.S. Reissue Patent RE44,153 (the “Reissued Patent”). Also on April 16, 2013, ArcelorMittal filed a second action against us in the United States District Court for the District of Delaware, Case Nos. 1:13-cv-00685 and 1:13-cv-00686 (collectively the “Second Action”). The complaint filed in the Second Action alleges that we are infringing the claims of the Reissued Patent and seeks injunctive relief and unspecified compensatory damages. On April 23, 2013, we filed a motion to dismiss key elements of the complaint filed in the Second Action. In addition, the parties briefed related non-infringement and claims construction issues in the original action. On October 25, 2013, the district court granted summary judgment in our favor, confirming that our product does not infringe the original Patent or the Reissued Patent. The court further ruled that ArcelorMittal’s Reissued Patent was invalid due to ArcelorMittal’s deliberate violation of a statutory prohibition on broadening a patent through reissue more than two years after the original Patent was granted and that the original Patent had been surrendered when the Reissued Patent was issued and thus is no longer in effect. Final Judgment was entered on October 31, 2013. On November 6, 2013, ArcelorMittal filed a motion to clarify or, in the alternative, to alter or amend the October 31, 2013 judgment. We opposed the motion. On December 5, 2013, the court issued a memorandum and order denying the motion and entered final judgment in our favor, and against ArcelorMittal, specifically ruling that all claims of ArcelorMittal’s Reissued Patent are invalid as violative of 35 U.S.C. §251(d). On December 30, 2013, ArcelorMittal filed notices of appeal to the Federal Circuit Court of Appeals. The appeal has been fully briefed and the court of appeals held a hearing on November 4, 2014. On May 12, 2015, the Federal Circuit issued its decision affirming in part and reversing in part the trial court’s decision and remanding the case for further proceedings. The Federal Circuit ruled that 23 of the 25 claims of the Reissued Patent were improperly broadened and therefore invalid. However, the Federal Court found that the district court erred in invalidating the remaining two claims and remanded the case for further proceedings before the district court. Following the remand, ArcelorMittal filed a motion in the trial court for leave to amend the Second Action to assert additional patent infringement claims based on another, related patent that the PTO issued on June 10, 2014, No. RE44,940 (Second Reissue Patent). It also filed a motion to dismiss the original action on the grounds that it is now moot in light of the Court of Appeals’ last ruling. We opposed both of those motions. In addition, we filed separate motions for summary judgment in the original action on the grounds of non-infringement and invalidity. A hearing on all motions was held on October 27, 2015. On December 4, 2015, the district court issued an order granting our motion for summary judgment that neither of the remaining claims of the Reissued Patent are infringed and both are invalid as obvious. The court therefore entered final judgment in favor of the defendants in the original case. In the court’s order, the judge also granted ArcelorMittal’s motion to file a first amended complaint and ArcelorMittal did file an amended complaint in Case No. 1:13-cv-00685 (“685 Action”) alleging we are infringing the claims of the Second Reissue Patent, which we deny. On December 21, 2015, ArcelorMittal filed a notice of appeal from the district court’s December 4, 2015 final judgment. That appeal is fully briefed and oral argument was held on November 1, 2016. On January 20, 2016, we filed a motion to dismiss the amended complaint in the 685 Action, or in the alternative, a motion to stay pending a resolution of the appeal in the original case. On April 19, 2016, the district court issued an order denying our motion and ordering limited discovery. Following discovery, on August 17, 2016, we filed a motion for summary judgment on the basis that the claims in the 685 Action are precluded by the judgment in the original case. On January 19, 2017, the district court issued an opinion granting summary judgment in our favor in the 685 Action on the grounds of non-infringement and also entered a final judgment on that basis. On February 14, 2017, ArcelorMittal filed a notice of appeal of the district court's order in the Federal Circuit Court of Appeals. We intend to continue to contest this matter vigorously. We have not made a determination that a loss is probable and we do not have adequate information to reliably or accurately estimate potential loss if ArcelorMittal prevails in its appeal in this dispute. Because we have been unable to determine that the potential loss in this case is probable or estimable, we have not recorded an accrual for this matter. If our assumptions used to evaluate whether a loss in this matter is either probable or estimable prove to be incorrect or change, we may be required to record a liability for an adverse outcome. As previously reported, on June 13, 2013, Cliffs Sales Company (“Cliffs”) filed an action in the United States District Court for the Northern District of Ohio, Civil Action No. 1:13 cv 1308, against us pertaining to Dearborn Works. Cliffs claims that we breached a May 21, 2008, Agreement for Sale of Reclaimed Iron Units, as amended (the “Iron Unit Agreement”). Cliffs claims that we breached the Iron Unit Agreement by failing to purchase the required amount of pellets, chips and fines as allegedly required. We filed an answer denying the material allegations of the complaint and asserting several affirmative defenses. In January of 2014, the presiding judge ordered a stay of the proceedings. We intend to contest this matter vigorously. At this time, we have not made a determination that a loss is probable and do not have adequate information to reliably or accurately estimate our potential loss if Cliffs prevails in this lawsuit. Because we have been unable to determine that a loss is probable or estimable, we have not recorded an accrual. If our assumptions used to evaluate whether a loss in this matter is either probable or estimable prove to be incorrect or change, we may be re |
Share-based Compensation (Notes
Share-based Compensation (Notes) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation | Share-based Compensation AK Holding’s Stock Incentive Plan (“SIP”) permits the granting of nonqualified stock option, restricted stock, performance share and restricted stock unit awards to our Directors, officers and other employees. We have estimated share-based compensation expense to be $8.1 for 2017 . The first quarter information is presented below: Three Months Ended March 31, Share-based Compensation Expense 2017 2016 Stock options $ 1.5 $ 0.5 Restricted stock 1.9 0.8 Restricted stock units issued to Directors 0.4 0.3 Performance shares 0.4 0.4 Total share-based compensation expense $ 4.2 $ 2.0 We granted stock options on 513,600 shares during the three months ended March 31, 2017 , with a weighted-average fair value of $5.33 per share of stock option. Options on 41,800 shares were exercised in 2017 . We granted restricted stock awards of 355,600 shares during the three months ended March 31, 2017 , at a weighted-average fair value of $9.78 per share. The total intrinsic value of restricted stock awards that vested (i.e., restrictions lapsed) during the three months ended March 31, 2017 was $3.8 . We granted performance share awards of 263,600 shares during the three months ended March 31, 2017 , with a weighted-average fair value of $10.78 per share. The total intrinsic value of performance share awards that vested during the three months ended March 31, 2017 was $4.5 . |
Comprehensive Income (Loss) (No
Comprehensive Income (Loss) (Notes) | 3 Months Ended |
Mar. 31, 2017 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Other comprehensive income (loss), net of tax, information is presented below: Three Months Ended March 31, 2017 2016 Foreign currency translation Balance at beginning of period $ (3.6 ) $ (2.1 ) Other comprehensive income (loss)—foreign currency translation gain (loss) 0.3 1.5 Balance at end of period $ (3.3 ) $ (0.6 ) Cash flow hedges Balance at beginning of period $ 46.4 $ (34.0 ) Other comprehensive income (loss): Gains (losses) arising in period (8.0 ) (7.8 ) Income tax expense (benefit) — — Gains (losses) arising in period, net of tax (8.0 ) (7.8 ) Reclassification of losses (gains) to net income (loss)—commodity contracts (a) (3.2 ) 13.2 Income tax expense — — Net amount of reclassification of losses (gains) to net income (loss) (3.2 ) 13.2 Total other comprehensive income (loss), net of tax (11.2 ) 5.4 Balance at end of period $ 35.2 $ (28.6 ) Pension and OPEB plans Balance at beginning of period $ (106.3 ) $ (151.1 ) Other comprehensive income (loss): Reclassification to net income (loss): Prior service costs (credits) (b) (13.4 ) (13.8 ) Actuarial (gains) losses (b) 1.6 5.9 Subtotal (11.8 ) (7.9 ) Income tax expense — — Amount of reclassification to net income (loss), net of tax (11.8 ) (7.9 ) Balance at end of period $ (118.1 ) $ (159.0 ) (a) Included in cost of products sold. (b) |
Earnings Per Share (Notes)
Earnings Per Share (Notes) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share Earnings per share are calculated using the “two-class” method. Under the “two-class” method, undistributed earnings are allocated to both common shares and participating securities. We divide the sum of distributed earnings to common stockholders and undistributed earnings to common stockholders by the weighted-average number of common shares outstanding during the period. The restricted stock granted by AK Holding is entitled to dividends before vesting and meets the criteria of a participating security. Three Months Ended March 31, 2017 2016 Net income (loss) attributable to AK Steel Holding Corporation $ 62.5 $ (13.6 ) Less: distributed earnings to common stockholders and holders of certain stock compensation awards — — Undistributed earnings (loss) $ 62.5 $ (13.6 ) Common stockholders earnings—basic and diluted: Distributed earnings to common stockholders $ — $ — Undistributed earnings (loss) to common stockholders 62.4 (13.5 ) Common stockholders earnings (loss)—basic and diluted $ 62.4 $ (13.5 ) Common shares outstanding (weighted-average shares in millions): Common shares outstanding for basic earnings per share 314.1 177.5 Effect of exchangeable debt 10.3 — Effect of dilutive stock-based compensation 1.2 — Common shares outstanding for diluted earnings per share 325.6 177.5 Basic earnings per share: Distributed earnings $ — $ — Undistributed earnings (loss) 0.20 (0.08 ) Basic earnings (loss) per share $ 0.20 $ (0.08 ) Diluted earnings per share: Distributed earnings $ — $ — Undistributed earnings (loss) 0.19 (0.08 ) Diluted earnings (loss) per share $ 0.19 $ (0.08 ) Potentially issuable common shares (in millions) excluded from earnings per share calculation due to anti-dilutive effect 1.1 3.9 |
Variable Interest Entities (Not
Variable Interest Entities (Notes) | 3 Months Ended |
Mar. 31, 2017 | |
Variable Interest Entity, Primary Beneficiary, Does Not Hold Majority Voting Interest, Disclosures [Abstract] | |
Variable Interest Entities | Variable Interest Entities SunCoke Middletown We purchase substantially all the coke and electrical power generated from SunCoke Middletown’s plant under long-term supply agreements. SunCoke Middletown is a variable interest entity because we have committed to purchase all the expected production from the facility through at least 2031 and we are the primary beneficiary. Therefore, we consolidate SunCoke Middletown’s financial results with our financial results, even though we have no ownership interest in SunCoke Middletown. SunCoke Middletown had income before income taxes of $16.2 and $18.0 for the three months ended March 31, 2017 and 2016 that was included in our consolidated income before income taxes. Vicksmetal/Armco Associates We indirectly own a 50% interest in Vicksmetal/Armco Associates (“VAA”), a joint venture with Vicksmetal Company, which is owned by Sumitomo Corporation. VAA slits electrical steel primarily for us, though also does so for third parties. VAA is a variable interest entity and we are the primary beneficiary. Therefore, we consolidate VAA’s financial results with our financial results. |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We measure certain assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, we use various valuation approaches. The hierarchy of those valuation approaches is broken down into three levels based on the reliability of inputs as follows: • Level 1 inputs are quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date. • Level 2 inputs are inputs, other than quoted prices, that are directly or indirectly observable for the asset or liability. Level 2 inputs include model-generated values that rely on inputs either directly observed or readily-derived from available market data sources, such as Bloomberg or other news and data vendors. They include quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates and yield curves observable at commonly quoted intervals or current market) and contractual prices for the underlying financial instrument, as well as other relevant economic factors. As a practical expedient, we estimate the value of money market mutual funds by using a $1.00 per share multiplied by the number of shares in the fund as of the measurement date. We generate fair values for our commodity derivative contracts and foreign currency forward contracts from observable futures prices for the respective commodity or currency, from sources such as the New York Mercantile Exchange (NYMEX) or the London Metal Exchange (LME). We use the Black-Scholes option valuation model to value option contract derivatives (including caps, floors and collars). We use independent sources for implied volatilities, and we discount model-generated future values with discount factors that reflect the counterparty’s credit quality. We apply different discount rates to different contracts since the maturities and counterparties differ. As of March 31, 2017 , a spread over benchmark rates of less than 2% was used for derivatives valued as assets and less than 5% for derivatives valued as liabilities. We have estimated the fair value of long-term debt based upon quoted market prices for the same or similar issues or on the current interest rates available to us for debt on similar terms and with similar maturities. • Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs are used to measure fair value if observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. This level of categorization is not applicable to our valuations on a normal recurring basis. Assets and liabilities measured at fair value on a recurring basis are presented below: March 31, 2017 December 31, 2016 Level 1 Level 2 Total Level 1 Level 2 Total Assets measured at fair value Cash and cash equivalents (a) $ 45.7 $ 140.0 $ 185.7 $ 48.2 $ 125.0 $ 173.2 Other current assets: Foreign exchange contracts — 0.1 0.1 — 0.1 0.1 Commodity hedge contracts — 43.6 43.6 — 47.0 47.0 Other non-current assets: Commodity hedge contracts — 8.7 8.7 — 15.3 15.3 Assets measured at fair value $ 45.7 $ 192.4 $ 238.1 $ 48.2 $ 187.4 $ 235.6 Liabilities measured at fair value Accrued liabilities: Commodity hedge contracts $ — $ (1.5 ) $ (1.5 ) $ — $ (1.8 ) $ (1.8 ) Other non-current liabilities: Commodity hedge contracts — (1.5 ) (1.5 ) — (0.6 ) (0.6 ) Liabilities measured at fair value $ — $ (3.0 ) $ (3.0 ) $ — $ (2.4 ) $ (2.4 ) Liabilities measured at other than fair value Long-term debt, including current portions: Fair value $ — $ (2,065.6 ) $ (2,065.6 ) $ — $ (2,123.2 ) $ (2,123.2 ) Carrying amount — (1,853.0 ) (1,853.0 ) — (1,816.6 ) (1,816.6 ) (a) Level 2 assets include money market mutual funds invested in U.S. Treasury obligations. The carrying amounts of our other financial instruments do not differ materially from their estimated fair values at March 31, 2017 and December 31, 2016 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities (Notes) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Exchange rate fluctuations affect a portion of intercompany receivables that are denominated in foreign currencies, and we use forward currency contracts to reduce our exposure to certain of these currency price fluctuations. These contracts have not been designated as hedges for accounting purposes and gains or losses are reported in earnings on a current basis in other income (expense). We are exposed to fluctuations in market prices of raw materials and energy sources. We may use cash-settled commodity price swaps and options (including collars) to hedge the market risk associated with the purchase of certain of our raw materials and energy requirements. For input commodities, these derivatives are typically used for a portion of our natural gas, nickel, iron ore, zinc and electricity requirements. Our hedging strategy is to reduce the effect on earnings from the price volatility of these various commodity exposures. Independent of any hedging activities, price changes in any of these commodity markets could negatively affect operating costs. All commodity derivatives are recognized as an asset or liability at fair value. We record the effective gains and losses for commodity derivatives designated as cash flow hedges of forecasted purchases of raw materials and energy sources in accumulated other comprehensive income (loss) and reclassify them into cost of products sold in the same period we recognize earnings for the associated underlying transaction. We recognize gains and losses on these designated derivatives arising from either hedge ineffectiveness or from components excluded from the assessment of effectiveness in current earnings under cost of products sold. We record all gains or losses from derivatives for which hedge accounting treatment has not been elected to earnings on a current basis in cost of products sold. We have provided no collateral to counterparties under collateral funding arrangements as of March 31, 2017 . Outstanding commodity price swaps and options and forward foreign exchange contracts are presented below: Commodity March 31, December 31, Natural gas (in MMBTUs) 40,198,000 43,865,000 Zinc (in lbs) 53,000,000 58,750,000 Iron ore (in metric tons) 2,300,000 2,555,000 Electricity (in MWHs) 1,356,000 1,578,821 Foreign exchange contracts (in euros) € 17,300,000 € 5,000,000 The fair value of derivative instruments in the condensed consolidated balance sheets is presented below: Asset (liability) March 31, December 31, Derivatives designated as hedging instruments: Other current assets—commodity contracts $ 13.3 $ 18.5 Other non-current assets—commodity contracts 0.8 5.2 Accrued liabilities—commodity contracts (1.5 ) (1.8 ) Other non-current liabilities—commodity contracts (0.9 ) (0.1 ) Derivatives not designated as hedging instruments: Other current assets: Foreign exchange contracts 0.1 0.1 Commodity contracts 30.3 28.5 Other non-current assets—commodity contracts 7.9 10.1 Other non-current liabilities—commodity contracts (0.6 ) (0.5 ) Gains (losses) on derivative instruments included in the condensed consolidated statements of operations are presented below: Three Months Ended March 31, Gain (loss) 2017 2016 Derivatives designated as cash flow hedges— Commodity contracts: Reclassified from accumulated other comprehensive income into cost of products sold (effective portion) $ 3.2 $ (13.2 ) Recognized in cost of products sold (ineffective portion and amount excluded from effectiveness testing) (0.2 ) 4.4 Derivatives not designated as hedging instruments: Foreign exchange contracts—recognized in other income (expense) (0.1 ) (1.8 ) Commodity contracts—recognized in cost of products sold 15.3 (0.5 ) We routinely use iron ore derivatives to minimize the volatility in the cost of our iron ore purchases. Historically, these economic hedges qualified for hedge accounting—meaning that gains and losses on the derivatives were reflected in the company’s financial results in the same period that the hedged iron ore purchases affected earnings. Beginning in the third quarter of 2016, our iron ore derivatives no longer qualify for hedge accounting treatment. Therefore, adjustments to mark these derivatives to fair value each period are recognized currently in our financial results versus being recognized in the period that iron ore purchases affect earnings. Gains and losses recognized in cost of products sold shown in the table above includes $16.3 for the three months ended March 31, 2017 , for unrealized mark-to-market gains on iron ore derivatives that are not designated as cash flow hedges for accounting purposes. However, $11.4 of settled iron ore derivative gains were not included in the income statement for the first quarter of 2017 but instead were recognized in our financial results in prior periods. This would have partially offset our increased iron ore costs reported in our first quarter 2017 financial results related to sales during the quarter. Gains (losses) before tax expected to be reclassified into cost of products sold within the next twelve months for our existing commodity contracts that qualify for hedge accounting, as well as the period over which we are hedging our exposure to the volatility in future cash flows, are presented below: Commodity Hedge Settlement Dates Gains (losses) Natural gas April 2017 to March 2019 $ 15.3 Zinc April 2017 to December 2018 7.2 Electricity April 2017 to December 2018 0.2 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information (Notes) | 3 Months Ended |
Mar. 31, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplementary Cash Flow Information Net cash paid (received) during the period for interest, net of capitalized interest, and income taxes are presented below: Three Months Ended March 31, 2017 2016 Net cash paid (received) during the period for: Interest, net of capitalized interest $ 45.1 $ 4.8 Income taxes 0.1 (3.4 ) Included in net cash flows from operations was cash provided by SunCoke Middletown of $20.3 and $20.4 for the three months ended March 31, 2017 and 2016 . Consolidated cash and cash equivalents at March 31, 2017 and December 31, 2016 , include SunCoke Middletown’s cash and cash equivalents of $10.1 and $5.0 . SunCoke Middletown’s cash and cash equivalents have no compensating balance arrangements or legal restrictions, but are not available for our use. We had capital investments during the three months ended March 31, 2017 and 2016 , that had not been paid as of the end of the respective period. These amounts are included in accounts payable and accrued liabilities and have been excluded from the condensed consolidated statements of cash flows until paid. We also issued stock to certain employees vested performance shares and granted restricted stock to certain employees and restricted stock units to directors under the SIP. Non-cash investing and financing activities are presented below: Three Months Ended March 31, 2017 2016 Capital investments $ 21.6 $ 21.2 Research and Innovation Center capital lease — 9.6 Issuance of performance shares, restricted stock and restricted stock units 3.8 1.4 |
Union Contracts (Notes)
Union Contracts (Notes) | 3 Months Ended |
Mar. 31, 2017 | |
Union Contracts [Abstract] | |
Union Contracts | Union Contracts In the first quarter of 2017, members of the United Steelworkers, Local 169 , ratified a labor agreement covering approximately 300 employees at Mansfield Works. The new agreement expires March 31, 2021 . In March 2017, we and the United Auto Workers, Local 600 , which represents approximately 1,165 employees at Dearborn Works, agreed to extend the current labor agreement to May 31, 2017 , two months from its original March 31, 2017 expiration. An agreement with the United Auto Workers, Local 3044 , that governs approximately 190 production employees at Rockport Works, is scheduled to expire on September 30, 2017 . As of January 1, 2016, approximately 135 hourly Rockport Works maintenance employees transferred to our employment from an independent contractor. We have been negotiating with the United Auto Workers for the contractual terms for these employees to be added to the union. An agreement with the United Steelworkers, Local 1915-15 , that governs approximately 90 production employees at AK Tube in Walbridge, Ohio, is scheduled to expire on January 22, 2018 . An agreement with the International Association of Machinists and Aerospace Workers, Local 1943 , that governs approximately 1,725 production employees at Middletown Works, is scheduled to expire on March 15, 2018 |
New Accounting Pronouncements (
New Accounting Pronouncements (Notes) | 3 Months Ended |
Mar. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements The Financial Accounting Standards Board (“FASB”) issued a standard update during the first quarter of 2016 to simplify several aspects of the accounting for employee share-based payments. The new guidance requires companies to record excess tax benefits and tax deficiencies in the income statement when stock awards vest or are settled. In addition, companies will no longer separately classify cash flows related to excess tax benefits as a financing activity apart from other income tax cash flows. The standard also allows companies to repurchase more of each employee’s vesting shares for tax withholding purposes without triggering liability accounting, clarifies that all cash payments made to tax authorities on each employee’s behalf for withheld shares should be presented as a financing activity on companies’ cash flows statements, and provides an accounting policy election to account for forfeitures as they occur. We adopted this update effective January 1, 2017. The adoption had a minimal effect on us. We recognized previously unrecorded excess tax benefits with an equal offset with a change in valuation allowance. We have elected to continue to estimate forfeitures expected to occur to determine the compensation cost we recognize each period. The presentation requirements for cash flows related to employee taxes paid for withheld shares has no effect on us since we have historically presented these as a financing activity. FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) , during the second quarter of 2014. Topic 606, as further amended by subsequent Accounting Standard Updates, affects virtually all aspects of an entity’s revenue recognition, including determining the measurement of revenue and the timing of when it is recognized for the transfer of goods or services to customers. Topic 606 is effective for us beginning January 1, 2018. The guidance permits two methods of adoption—retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method). We are evaluating the effect of the adoption of Topic 606 on our financial position and results of operations, but we do not currently expect it to have a material effect on us. Based on our evaluation of our current contracts and revenue streams to date, we believe that most revenue transactions recorded under Topic 606 will be substantially consistent with treatment under existing guidance. Our revenue transactions generally consist of a single performance obligation to transfer promised goods and are not accounted for under industry-specific guidance. We currently anticipate adopting the standard using the modified retrospective method as of January 1, 2018. FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) , during the first quarter of 2016. Topic 842 requires entities to recognize lease assets and lease liabilities and disclose key information about leasing arrangements for certain leases. We will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Topic 842 is effective for us beginning January 1, 2019. We are currently evaluating the effect of the adoption of Topic 842 on our financial position and results of operations. |
Supplemental Guarantor Informat
Supplemental Guarantor Information (Notes) | 3 Months Ended |
Mar. 31, 2017 | |
Supplemental Guarantor Information [Abstract] | |
Supplemental Guarantor Information | Supplementary Guarantor Information AK Steel’s 7.50% Senior Secured Notes due 2023, 7.625% Senior Notes due 2020, 7.625% Senior Notes due 2021, 8.375% Senior Notes due 2022 and 7.00% Senior Notes due 2027 (collectively, the “Senior Notes”) and Exchangeable Notes are governed by indentures entered into by AK Holding and its 100%-owned subsidiary, AK Steel. Under the terms of the indentures, AK Holding and the Guarantor Subsidiaries each fully and unconditionally, jointly and severally, guarantee the payment of interest, principal and premium, if any, on each of the notes included in the Senior Notes. Under the terms of the indenture for the Exchangeable Notes, AK Holding fully and unconditionally, jointly and severally, guarantees the payment of interest, principal and premium, if any, on the Exchangeable Notes. We present all investments in subsidiaries in the supplementary guarantor information using the equity method of accounting. Therefore, the net income (loss) of the subsidiaries accounted for using the equity method is in their parents’ investment accounts. The principal elimination entries eliminate investments in subsidiaries and inter-company balances and transactions. The following supplementary condensed consolidating financial statements present information about AK Holding, AK Steel, the Guarantor Subsidiaries of the Senior Notes and the other non-guarantor subsidiaries. Condensed Consolidated Statements of Comprehensive Income (Loss) Three Months Ended March 31, 2017 AK Holding AK Steel Guarantor Subsidiaries of the Senior Notes Other Non-Guarantor Subsidiaries Eliminations Consolidated Company Net sales $ — $ 1,473.6 $ 72.3 $ 91.4 $ (103.9 ) $ 1,533.4 Cost of products sold (exclusive of items shown separately below) — 1,286.5 51.9 62.8 (90.4 ) 1,310.8 Selling and administrative expenses (exclusive of items shown separately below) 1.4 72.3 3.2 5.5 (11.2 ) 71.2 Depreciation — 47.2 2.0 5.9 — 55.1 Pension and OPEB expense (income) — (16.2 ) — — — (16.2 ) Total operating costs 1.4 1,389.8 57.1 74.2 (101.6 ) 1,420.9 Operating profit (loss) (1.4 ) 83.8 15.2 17.2 (2.3 ) 112.5 Interest expense — 39.0 — 0.4 — 39.4 Other income (expense) — (11.4 ) 2.4 1.2 — (7.8 ) Income (loss) before income taxes (1.4 ) 33.4 17.6 18.0 (2.3 ) 65.3 Income tax expense (benefit) — (19.9 ) 6.7 0.7 (0.9 ) (13.4 ) Equity in net income (loss) of subsidiaries 63.9 10.6 — 0.1 (74.6 ) — Net income (loss) 62.5 63.9 10.9 17.4 (76.0 ) 78.7 Less: Net income attributable to noncontrolling interests — — — 16.2 — 16.2 Net income (loss) attributable to AK Steel Holding Corporation 62.5 63.9 10.9 1.2 (76.0 ) 62.5 Other comprehensive income (loss) (22.7 ) (22.7 ) — 0.3 22.4 (22.7 ) Comprehensive income (loss) attributable to AK Steel Holding Corporation $ 39.8 $ 41.2 $ 10.9 $ 1.5 $ (53.6 ) $ 39.8 Condensed Consolidated Statements of Comprehensive Income (Loss) Three Months Ended March 31, 2016 AK Holding AK Steel Guarantor Subsidiaries of the Senior Notes Other Non-Guarantor Subsidiaries Eliminations Consolidated Company Net sales $ — $ 1,468.2 $ 58.7 $ 118.1 $ (126.2 ) $ 1,518.8 Cost of products sold (exclusive of items shown separately below) — 1,351.3 39.8 87.7 (113.3 ) 1,365.5 Selling and administrative expenses (exclusive of items shown separately below) 1.3 64.5 2.6 6.5 (11.4 ) 63.5 Depreciation — 46.4 1.0 6.3 — 53.7 Pension and OPEB expense (income) — (11.9 ) — — — (11.9 ) Total operating costs 1.3 1,450.3 43.4 100.5 (124.7 ) 1,470.8 Operating profit (loss) (1.3 ) 17.9 15.3 17.6 (1.5 ) 48.0 Interest expense — 42.3 — 0.5 — 42.8 Other income (expense) — (4.1 ) 2.0 1.4 — (0.7 ) Income (loss) before income taxes (1.3 ) (28.5 ) 17.3 18.5 (1.5 ) 4.5 Income tax expense (benefit) — (6.1 ) 6.6 0.2 (0.6 ) 0.1 Equity in net income (loss) of subsidiaries (11.1 ) 10.1 — — 1.0 — Net income (loss) (12.4 ) (12.3 ) 10.7 18.3 0.1 4.4 Less: Net income attributable to noncontrolling interests — — — 18.0 — 18.0 Net income (loss) attributable to AK Steel Holding Corporation (12.4 ) (12.3 ) 10.7 0.3 0.1 (13.6 ) Other comprehensive income (loss) (1.0 ) (1.0 ) — 1.5 (0.5 ) (1.0 ) Comprehensive income (loss) attributable to AK Steel Holding Corporation $ (13.4 ) $ (13.3 ) $ 10.7 $ 1.8 $ (0.4 ) $ (14.6 ) Condensed Consolidated Balance Sheets March 31, 2017 AK Holding AK Steel Guarantor Subsidiaries of the Senior Notes Other Non-Guarantor Subsidiaries Eliminations Consolidated Company ASSETS Current assets: Cash and cash equivalents $ — $ 161.1 $ 2.6 $ 22.0 $ — $ 185.7 Accounts receivable, net — 474.0 35.6 22.8 (7.9 ) 524.5 Inventory, net — 1,028.7 49.1 41.7 (13.7 ) 1,105.8 Other current assets — 103.6 1.2 2.9 — 107.7 Total current assets — 1,767.4 88.5 89.4 (21.6 ) 1,923.7 Property, plant and equipment — 5,872.6 177.2 535.6 — 6,585.4 Accumulated depreciation — (4,412.8 ) (89.3 ) (107.3 ) — (4,609.4 ) Property, plant and equipment, net — 1,459.8 87.9 428.3 — 1,976.0 Investment in subsidiaries (3,238.0 ) 1,442.5 — 68.3 1,727.2 — Inter-company accounts 3,008.8 (4,126.0 ) 1,489.6 (452.7 ) 80.3 — Other non-current assets — 130.9 33.0 40.8 — 204.7 TOTAL ASSETS $ (229.2 ) $ 674.6 $ 1,699.0 $ 174.1 $ 1,785.9 $ 4,104.4 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ — $ 618.6 $ 15.9 $ 18.0 $ (1.0 ) $ 651.5 Accrued liabilities — 157.8 5.9 12.9 — 176.6 Current portion of long-term debt — 168.5 — — — 168.5 Current portion of pension and other postretirement benefit obligations — 41.0 — 0.3 — 41.3 Total current liabilities — 985.9 21.8 31.2 (1.0 ) 1,037.9 Non-current liabilities: Long-term debt — 1,684.5 — — — 1,684.5 Pension and other postretirement benefit obligations — 1,074.4 — 3.2 — 1,077.6 Other non-current liabilities — 148.1 1.6 0.2 — 149.9 TOTAL LIABILITIES — 3,892.9 23.4 34.6 (1.0 ) 3,949.9 EXCHANGEABLE NOTES EXCHANGE FEATURE — 19.7 — — — 19.7 Equity: Total stockholders’ equity (deficit) (229.2 ) (3,238.0 ) 1,675.6 (224.5 ) 1,786.9 (229.2 ) Noncontrolling interests — — — 364.0 — 364.0 TOTAL EQUITY (229.2 ) (3,238.0 ) 1,675.6 139.5 1,786.9 134.8 TOTAL LIABILITIES AND EQUITY $ (229.2 ) $ 674.6 $ 1,699.0 $ 174.1 $ 1,785.9 $ 4,104.4 Condensed Consolidated Balance Sheets December 31, 2016 AK Holding AK Steel Guarantor Subsidiaries of the Senior Notes Other Non-Guarantor Subsidiaries Eliminations Consolidated Company ASSETS Current assets: Cash and cash equivalents $ — $ 147.9 $ 4.4 $ 20.9 $ — $ 173.2 Accounts receivable, net — 400.4 30.3 19.6 (8.3 ) 442.0 Inventory, net — 1,038.1 45.3 42.0 (11.5 ) 1,113.9 Other current assets — 91.5 0.2 2.9 — 94.6 Total current assets — 1,677.9 80.2 85.4 (19.8 ) 1,823.7 Property, plant and equipment — 5,857.9 175.9 535.2 — 6,569.0 Accumulated depreciation — (4,365.8 ) (87.2 ) (101.6 ) — (4,554.6 ) Property, plant and equipment, net — 1,492.1 88.7 433.6 — 2,014.4 Investment in subsidiaries (3,227.1 ) 1,406.2 — 67.5 1,753.4 — Inter-company accounts 2,954.9 (4,041.9 ) 1,464.0 (458.4 ) 81.4 — Other non-current assets — 126.0 33.0 38.9 — 197.9 TOTAL ASSETS $ (272.2 ) $ 660.3 $ 1,665.9 $ 167.0 $ 1,815.0 $ 4,036.0 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ — $ 557.7 $ 16.7 $ 15.0 $ 0.5 $ 589.9 Accrued liabilities — 213.7 7.0 13.4 — 234.1 Current portion of pension and other postretirement benefit obligations — 41.0 — 0.3 — 41.3 Total current liabilities — 812.4 23.7 28.7 0.5 865.3 Non-current liabilities: Long-term debt — 1,816.6 — — — 1,816.6 Pension and other postretirement benefit obligations — 1,090.4 — 3.3 — 1,093.7 Other non-current liabilities — 146.7 1.6 0.1 — 148.4 TOTAL LIABILITIES — 3,866.1 25.3 32.1 0.5 3,924.0 EXCHANGEABLE NOTES EXCHANGE FEATURE — 21.3 — — — 21.3 Equity: Total stockholders’ equity (deficit) (272.2 ) (3,227.1 ) 1,640.6 (228.0 ) 1,814.5 (272.2 ) Noncontrolling interests — — — 362.9 — 362.9 TOTAL EQUITY (272.2 ) (3,227.1 ) 1,640.6 134.9 1,814.5 90.7 TOTAL LIABILITIES AND EQUITY $ (272.2 ) $ 660.3 $ 1,665.9 $ 167.0 $ 1,815.0 $ 4,036.0 Condensed Consolidated Statements of Cash Flows Three Months Ended March 31, 2017 AK Holding AK Steel Guarantor Subsidiaries of the Senior Notes Other Non-Guarantor Subsidiaries Eliminations Consolidated Company Net cash flows from operating activities $ (1.1 ) $ 16.0 $ 1.1 $ 21.4 $ (1.1 ) $ 36.3 Cash flows from investing activities: Capital investments — (30.6 ) (1.4 ) (0.5 ) — (32.5 ) Other investing items, net — 1.4 — 0.1 — 1.5 Net cash flows from investing activities — (29.2 ) (1.4 ) (0.4 ) — (31.0 ) Cash flows from financing activities: Proceeds from issuance of long-term debt — 400.0 — — — 400.0 Redemption of long-term debt — (367.5 ) — — — (367.5 ) Debt issuance costs — (7.8 ) — — — (7.8 ) Inter-company activity 3.6 1.6 (1.5 ) (4.8 ) 1.1 — SunCoke Middletown distributions to noncontrolling interest owners — — — (15.1 ) — (15.1 ) Other financing items, net (2.5 ) 0.1 — — — (2.4 ) Net cash flows from financing activities 1.1 26.4 (1.5 ) (19.9 ) 1.1 7.2 Net increase (decrease) in cash and cash equivalents — 13.2 (1.8 ) 1.1 — 12.5 Cash and equivalents, beginning of period — 147.9 4.4 20.9 — 173.2 Cash and equivalents, end of period $ — $ 161.1 $ 2.6 $ 22.0 $ — $ 185.7 Condensed Consolidated Statements of Cash Flows Three Months Ended March 31, 2016 AK Holding AK Steel Guarantor Subsidiaries of the Senior Notes Other Non-Guarantor Subsidiaries Eliminations Consolidated Company Net cash flows from operating activities $ (1.3 ) $ 108.1 $ 10.7 $ 15.1 $ 4.1 $ 136.7 Cash flows from investing activities: Capital investments — (27.2 ) (0.7 ) (0.9 ) — (28.8 ) Other investing items, net — — — (0.1 ) — (0.1 ) Net cash flows from investing activities — (27.2 ) (0.7 ) (1.0 ) — (28.9 ) Cash flows from financing activities: Net borrowings (payments) under credit facility — (30.0 ) — — — (30.0 ) Inter-company activity 1.6 8.0 (9.9 ) 4.4 (4.1 ) — SunCoke Middletown distributions to noncontrolling interest owners — — — (21.1 ) — (21.1 ) Other financing items, net (0.3 ) — — — — (0.3 ) Net cash flows from financing activities 1.3 (22.0 ) (9.9 ) (16.7 ) (4.1 ) (51.4 ) Net increase (decrease) in cash and cash equivalents — 58.9 0.1 (2.6 ) — 56.4 Cash and equivalents, beginning of period — 27.0 — 29.6 — 56.6 Cash and equivalents, end of period $ — $ 85.9 $ 0.1 $ 27.0 $ — $ 113.0 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting, Policy | These financial statements consolidate the operations and accounts of AK Steel Holding Corporation (“AK Holding”), its wholly-owned subsidiary AK Steel Corporation (“AK Steel”), all subsidiaries in which AK Holding has a controlling interest, and two variable interest entities for which AK Steel is the primary beneficiary. Unless the context provides otherwise, references to “we,” “us” and “our” refer to AK Holding and its subsidiaries. In our opinion, the accompanying condensed consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, necessary to present fairly our financial position as of March 31, 2017 and December 31, 2016 , our results of operations for the three months ended March 31, 2017 and 2016 , and our cash flows for the three months ended March 31, 2017 and 2016 . Our results of operations for the three months ended March 31, 2017 are not necessarily indicative of the results we expect for the full year ending December 31, 2017 . These condensed consolidated financial statements should be read along with our audited consolidated financial statements for the year ended December 31, 2016 , included in our Annual Report on Form 10-K for the year ended December 31, 2016 |
Earnings Per Share (Policies)
Earnings Per Share (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share, Policy | Earnings per share are calculated using the “two-class” method. Under the “two-class” method, undistributed earnings are allocated to both common shares and participating securities. We divide the sum of distributed earnings to common stockholders and undistributed earnings to common stockholders by the weighted-average number of common shares outstanding during the period. The restricted stock granted by AK Holding is entitled to dividends before vesting and meets the criteria of a participating security. |
Supplementary Financial State26
Supplementary Financial Statement Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory, net | Inventories as of March 31, 2017 and December 31, 2016 , are presented below: March 31, December 31, Finished and semi-finished $ 916.3 $ 855.0 Raw materials 381.8 415.8 Total cost 1,298.1 1,270.8 Adjustment to state inventories at LIFO value (192.3 ) (156.9 ) Inventory, net $ 1,105.8 $ 1,113.9 |
Investments in Affiliates | Summarized financial statement data for all investees is presented below. Three Months Ended March 31, 2017 2016 Revenue $ 72.5 $ 69.6 Gross profit 25.5 23.0 Net income 8.9 7.8 |
Facility Idling | The supplemental unemployment and other employee benefit costs were recorded as accrued liabilities in the condensed consolidated balance sheet, and the activity for the three months ended March 31, 2017 and 2016 was as follows: Three Months Ended March 31, 2017 2016 Balance at beginning of period $ 6.1 $ 22.1 Payments (1.7 ) (4.9 ) Balance at end of period $ 4.4 $ 17.2 |
Long-term Debt and Other Fina27
Long-term Debt and Other Financing (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Debt balances at March 31, 2017 , and December 31, 2016 , are presented below: March 31, December 31, Credit Facility $ — $ — 7.50% Senior Secured Notes due July 2023 (effective rate of 8.3%) 380.0 380.0 5.00% Exchangeable Senior Notes due November 2019 (effective rate of 10.8%) 150.0 150.0 7.625% Senior Notes due May 2020 (to be redeemed May 2017) 168.5 529.8 7.625% Senior Notes due October 2021 406.2 406.2 8.375% Senior Notes due April 2022 279.8 279.8 7.00% Senior Notes due March 2027 400.0 — Industrial Revenue Bonds due 2020 through 2028 99.3 99.3 Capital lease for Research and Innovation Center 25.2 25.2 Unamortized debt discount/premium and debt issuance costs (56.0 ) (53.7 ) Total debt 1,853.0 1,816.6 Less: Current portion of long-term debt 168.5 — Total long-term debt $ 1,684.5 $ 1,816.6 |
Pension and Other Postretirem28
Pension and Other Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
General Discussion of Pension and Other Postretirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | Net periodic benefit cost (income) for pension and other postretirement benefits was as follows: Three Months Ended March 31, 2017 2016 Pension Benefits Service cost $ 0.7 $ 0.7 Interest cost 27.0 32.0 Expected return on assets (37.6 ) (42.9 ) Amortization of prior service cost 1.2 1.3 Amortization of loss 2.7 7.0 Net periodic benefit cost (income) $ (6.0 ) $ (1.9 ) Other Postretirement Benefits Service cost $ 1.2 $ 1.2 Interest cost 4.3 5.0 Amortization of prior service cost (credit) (14.6 ) (15.1 ) Amortization of (gain) loss (1.1 ) (1.1 ) Net periodic benefit cost (income) $ (10.2 ) $ (10.0 ) |
Environmental and Legal Conti29
Environmental and Legal Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Accrual of Liabilities Related to Environmental Loss Contingencies | We have recorded the following liabilities for environmental matters on our condensed consolidated balance sheets: March 31, December 31, Accrued liabilities $ 7.2 $ 7.3 Other non-current liabilities 40.1 39.9 |
Schedule of Information on Pending Asbestos Cases | The number of asbestos cases pending at March 31, 2017 , is presented below: Asbestos Cases Pending at March 31, 2017 Cases with specific dollar claims for damages: Claims up to $0.2 126 Claims above $0.2 to $5.0 6 Claims above $5.0 to $15.0 2 Claims above $15.0 to $20.0 2 Total claims with specific dollar claims for damages (a) 136 Cases without a specific dollar claim for damages 210 Total asbestos cases pending 346 (a) Involve a total of 2,336 plaintiffs and 17,601 defendants |
Schedule of Number of New Asbestos Claims Filed, Number of Pending Asbestos Claims Disposed, And Amount Paid in Settlements | Asbestos-related claims information for the three months ended March 31, 2017 and 2016 is presented below: Three Months Ended March 31, 2017 2016 New Claims Filed 18 13 Pending Claims Disposed Of 11 46 Total Amount Paid in Settlements $ 0.1 $ 0.3 |
Schedule of Percentages to Calculate Cash Deposits on Imports from Foreign Countries to US | After correcting certain ministerial errors, the Commerce Department calculated final dumping and subsidy margins as follows: Country Hot-Rolled CVD Margins Hot-Rolled AD Margins Australia NA 29.58% Brazil 11.30% – 11.09% 34.28% – 33.14% Japan NA 7.51% – 4.99% Netherlands NA 3.73% South Korea 58.68% – 3.89% 9.49% – 4.61% Turkey NA 6.77% – 4.15% United Kingdom NA 33.06% Country Stainless CVD Margins Stainless AD Margins China 190.71% – 75.60% 76.64% – 63.86% Country Cold-Rolled CVD Margins Cold-Rolled AD Margins Brazil 11.31% – 11.09% 35.43% – 19.58% China 256.44% 265.79% India 10.00% 7.60% Japan NA 71.35% South Korea 59.72% – 3.89% 34.33% – 6.32% United Kingdom NA 25.17% – 5.40% Country Corrosion-Resistant CVD Margins Corrosion-Resistant AD Margins China 241.07% – 39.05% 209.97% India 29.49% – 8.00% 4.43% – 3.05% Italy 38.51% – 0.00% 92.12% – 12.63% South Korea 1.19% – 0.00% 47.80% – 8.75% Taiwan 0.00% 10.34% |
Share-based Compensation (Table
Share-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule about share-based compensation expense | The first quarter information is presented below: Three Months Ended March 31, Share-based Compensation Expense 2017 2016 Stock options $ 1.5 $ 0.5 Restricted stock 1.9 0.8 Restricted stock units issued to Directors 0.4 0.3 Performance shares 0.4 0.4 Total share-based compensation expense $ 4.2 $ 2.0 |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Income (Loss), Net of T ax | Other comprehensive income (loss), net of tax, information is presented below: Three Months Ended March 31, 2017 2016 Foreign currency translation Balance at beginning of period $ (3.6 ) $ (2.1 ) Other comprehensive income (loss)—foreign currency translation gain (loss) 0.3 1.5 Balance at end of period $ (3.3 ) $ (0.6 ) Cash flow hedges Balance at beginning of period $ 46.4 $ (34.0 ) Other comprehensive income (loss): Gains (losses) arising in period (8.0 ) (7.8 ) Income tax expense (benefit) — — Gains (losses) arising in period, net of tax (8.0 ) (7.8 ) Reclassification of losses (gains) to net income (loss)—commodity contracts (a) (3.2 ) 13.2 Income tax expense — — Net amount of reclassification of losses (gains) to net income (loss) (3.2 ) 13.2 Total other comprehensive income (loss), net of tax (11.2 ) 5.4 Balance at end of period $ 35.2 $ (28.6 ) Pension and OPEB plans Balance at beginning of period $ (106.3 ) $ (151.1 ) Other comprehensive income (loss): Reclassification to net income (loss): Prior service costs (credits) (b) (13.4 ) (13.8 ) Actuarial (gains) losses (b) 1.6 5.9 Subtotal (11.8 ) (7.9 ) Income tax expense — — Amount of reclassification to net income (loss), net of tax (11.8 ) (7.9 ) Balance at end of period $ (118.1 ) $ (159.0 ) (a) Included in cost of products sold. (b) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per share | Three Months Ended March 31, 2017 2016 Net income (loss) attributable to AK Steel Holding Corporation $ 62.5 $ (13.6 ) Less: distributed earnings to common stockholders and holders of certain stock compensation awards — — Undistributed earnings (loss) $ 62.5 $ (13.6 ) Common stockholders earnings—basic and diluted: Distributed earnings to common stockholders $ — $ — Undistributed earnings (loss) to common stockholders 62.4 (13.5 ) Common stockholders earnings (loss)—basic and diluted $ 62.4 $ (13.5 ) Common shares outstanding (weighted-average shares in millions): Common shares outstanding for basic earnings per share 314.1 177.5 Effect of exchangeable debt 10.3 — Effect of dilutive stock-based compensation 1.2 — Common shares outstanding for diluted earnings per share 325.6 177.5 Basic earnings per share: Distributed earnings $ — $ — Undistributed earnings (loss) 0.20 (0.08 ) Basic earnings (loss) per share $ 0.20 $ (0.08 ) Diluted earnings per share: Distributed earnings $ — $ — Undistributed earnings (loss) 0.19 (0.08 ) Diluted earnings (loss) per share $ 0.19 $ (0.08 ) Potentially issuable common shares (in millions) excluded from earnings per share calculation due to anti-dilutive effect 1.1 3.9 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value assets and liabilities measured on a recurring basis | Assets and liabilities measured at fair value on a recurring basis are presented below: March 31, 2017 December 31, 2016 Level 1 Level 2 Total Level 1 Level 2 Total Assets measured at fair value Cash and cash equivalents (a) $ 45.7 $ 140.0 $ 185.7 $ 48.2 $ 125.0 $ 173.2 Other current assets: Foreign exchange contracts — 0.1 0.1 — 0.1 0.1 Commodity hedge contracts — 43.6 43.6 — 47.0 47.0 Other non-current assets: Commodity hedge contracts — 8.7 8.7 — 15.3 15.3 Assets measured at fair value $ 45.7 $ 192.4 $ 238.1 $ 48.2 $ 187.4 $ 235.6 Liabilities measured at fair value Accrued liabilities: Commodity hedge contracts $ — $ (1.5 ) $ (1.5 ) $ — $ (1.8 ) $ (1.8 ) Other non-current liabilities: Commodity hedge contracts — (1.5 ) (1.5 ) — (0.6 ) (0.6 ) Liabilities measured at fair value $ — $ (3.0 ) $ (3.0 ) $ — $ (2.4 ) $ (2.4 ) Liabilities measured at other than fair value Long-term debt, including current portions: Fair value $ — $ (2,065.6 ) $ (2,065.6 ) $ — $ (2,123.2 ) $ (2,123.2 ) Carrying amount — (1,853.0 ) (1,853.0 ) — (1,816.6 ) (1,816.6 ) (a) |
Derivative Instruments and He34
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding commodity price swaps and options and forward foreign exchange contracts | Outstanding commodity price swaps and options and forward foreign exchange contracts are presented below: Commodity March 31, December 31, Natural gas (in MMBTUs) 40,198,000 43,865,000 Zinc (in lbs) 53,000,000 58,750,000 Iron ore (in metric tons) 2,300,000 2,555,000 Electricity (in MWHs) 1,356,000 1,578,821 Foreign exchange contracts (in euros) € 17,300,000 € 5,000,000 |
Fair value of derivative instruments in the condensed consolidated balance sheets | The fair value of derivative instruments in the condensed consolidated balance sheets is presented below: Asset (liability) March 31, December 31, Derivatives designated as hedging instruments: Other current assets—commodity contracts $ 13.3 $ 18.5 Other non-current assets—commodity contracts 0.8 5.2 Accrued liabilities—commodity contracts (1.5 ) (1.8 ) Other non-current liabilities—commodity contracts (0.9 ) (0.1 ) Derivatives not designated as hedging instruments: Other current assets: Foreign exchange contracts 0.1 0.1 Commodity contracts 30.3 28.5 Other non-current assets—commodity contracts 7.9 10.1 Other non-current liabilities—commodity contracts (0.6 ) (0.5 ) |
Gains (losses) on derivative instruments included in the condensed consolidated statements of operations | Gains (losses) on derivative instruments included in the condensed consolidated statements of operations are presented below: Three Months Ended March 31, Gain (loss) 2017 2016 Derivatives designated as cash flow hedges— Commodity contracts: Reclassified from accumulated other comprehensive income into cost of products sold (effective portion) $ 3.2 $ (13.2 ) Recognized in cost of products sold (ineffective portion and amount excluded from effectiveness testing) (0.2 ) 4.4 Derivatives not designated as hedging instruments: Foreign exchange contracts—recognized in other income (expense) (0.1 ) (1.8 ) Commodity contracts—recognized in cost of products sold 15.3 (0.5 ) |
Amount of gains (losses) expected to be reclassified into earnings within the next twelve months | Gains (losses) before tax expected to be reclassified into cost of products sold within the next twelve months for our existing commodity contracts that qualify for hedge accounting, as well as the period over which we are hedging our exposure to the volatility in future cash flows, are presented below: Commodity Hedge Settlement Dates Gains (losses) Natural gas April 2017 to March 2019 $ 15.3 Zinc April 2017 to December 2018 7.2 Electricity April 2017 to December 2018 0.2 |
Supplemental Cash Flow Inform35
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of cash flow, supplemental disclosures | Net cash paid (received) during the period for interest, net of capitalized interest, and income taxes are presented below: Three Months Ended March 31, 2017 2016 Net cash paid (received) during the period for: Interest, net of capitalized interest $ 45.1 $ 4.8 Income taxes 0.1 (3.4 ) |
Schedule of non-cash investing and financing activities | Non-cash investing and financing activities are presented below: Three Months Ended March 31, 2017 2016 Capital investments $ 21.6 $ 21.2 Research and Innovation Center capital lease — 9.6 Issuance of performance shares, restricted stock and restricted stock units 3.8 1.4 |
Supplemental Guarantor Inform36
Supplemental Guarantor Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Supplemental Guarantor Information [Abstract] | |
Schedule of Condensed Comprehensive Income (Loss) | Condensed Consolidated Statements of Comprehensive Income (Loss) Three Months Ended March 31, 2017 AK Holding AK Steel Guarantor Subsidiaries of the Senior Notes Other Non-Guarantor Subsidiaries Eliminations Consolidated Company Net sales $ — $ 1,473.6 $ 72.3 $ 91.4 $ (103.9 ) $ 1,533.4 Cost of products sold (exclusive of items shown separately below) — 1,286.5 51.9 62.8 (90.4 ) 1,310.8 Selling and administrative expenses (exclusive of items shown separately below) 1.4 72.3 3.2 5.5 (11.2 ) 71.2 Depreciation — 47.2 2.0 5.9 — 55.1 Pension and OPEB expense (income) — (16.2 ) — — — (16.2 ) Total operating costs 1.4 1,389.8 57.1 74.2 (101.6 ) 1,420.9 Operating profit (loss) (1.4 ) 83.8 15.2 17.2 (2.3 ) 112.5 Interest expense — 39.0 — 0.4 — 39.4 Other income (expense) — (11.4 ) 2.4 1.2 — (7.8 ) Income (loss) before income taxes (1.4 ) 33.4 17.6 18.0 (2.3 ) 65.3 Income tax expense (benefit) — (19.9 ) 6.7 0.7 (0.9 ) (13.4 ) Equity in net income (loss) of subsidiaries 63.9 10.6 — 0.1 (74.6 ) — Net income (loss) 62.5 63.9 10.9 17.4 (76.0 ) 78.7 Less: Net income attributable to noncontrolling interests — — — 16.2 — 16.2 Net income (loss) attributable to AK Steel Holding Corporation 62.5 63.9 10.9 1.2 (76.0 ) 62.5 Other comprehensive income (loss) (22.7 ) (22.7 ) — 0.3 22.4 (22.7 ) Comprehensive income (loss) attributable to AK Steel Holding Corporation $ 39.8 $ 41.2 $ 10.9 $ 1.5 $ (53.6 ) $ 39.8 Condensed Consolidated Statements of Comprehensive Income (Loss) Three Months Ended March 31, 2016 AK Holding AK Steel Guarantor Subsidiaries of the Senior Notes Other Non-Guarantor Subsidiaries Eliminations Consolidated Company Net sales $ — $ 1,468.2 $ 58.7 $ 118.1 $ (126.2 ) $ 1,518.8 Cost of products sold (exclusive of items shown separately below) — 1,351.3 39.8 87.7 (113.3 ) 1,365.5 Selling and administrative expenses (exclusive of items shown separately below) 1.3 64.5 2.6 6.5 (11.4 ) 63.5 Depreciation — 46.4 1.0 6.3 — 53.7 Pension and OPEB expense (income) — (11.9 ) — — — (11.9 ) Total operating costs 1.3 1,450.3 43.4 100.5 (124.7 ) 1,470.8 Operating profit (loss) (1.3 ) 17.9 15.3 17.6 (1.5 ) 48.0 Interest expense — 42.3 — 0.5 — 42.8 Other income (expense) — (4.1 ) 2.0 1.4 — (0.7 ) Income (loss) before income taxes (1.3 ) (28.5 ) 17.3 18.5 (1.5 ) 4.5 Income tax expense (benefit) — (6.1 ) 6.6 0.2 (0.6 ) 0.1 Equity in net income (loss) of subsidiaries (11.1 ) 10.1 — — 1.0 — Net income (loss) (12.4 ) (12.3 ) 10.7 18.3 0.1 4.4 Less: Net income attributable to noncontrolling interests — — — 18.0 — 18.0 Net income (loss) attributable to AK Steel Holding Corporation (12.4 ) (12.3 ) 10.7 0.3 0.1 (13.6 ) Other comprehensive income (loss) (1.0 ) (1.0 ) — 1.5 (0.5 ) (1.0 ) Comprehensive income (loss) attributable to AK Steel Holding Corporation $ (13.4 ) $ (13.3 ) $ 10.7 $ 1.8 $ (0.4 ) $ (14.6 ) |
Schedule of Condensed Balance Sheet | Condensed Consolidated Balance Sheets March 31, 2017 AK Holding AK Steel Guarantor Subsidiaries of the Senior Notes Other Non-Guarantor Subsidiaries Eliminations Consolidated Company ASSETS Current assets: Cash and cash equivalents $ — $ 161.1 $ 2.6 $ 22.0 $ — $ 185.7 Accounts receivable, net — 474.0 35.6 22.8 (7.9 ) 524.5 Inventory, net — 1,028.7 49.1 41.7 (13.7 ) 1,105.8 Other current assets — 103.6 1.2 2.9 — 107.7 Total current assets — 1,767.4 88.5 89.4 (21.6 ) 1,923.7 Property, plant and equipment — 5,872.6 177.2 535.6 — 6,585.4 Accumulated depreciation — (4,412.8 ) (89.3 ) (107.3 ) — (4,609.4 ) Property, plant and equipment, net — 1,459.8 87.9 428.3 — 1,976.0 Investment in subsidiaries (3,238.0 ) 1,442.5 — 68.3 1,727.2 — Inter-company accounts 3,008.8 (4,126.0 ) 1,489.6 (452.7 ) 80.3 — Other non-current assets — 130.9 33.0 40.8 — 204.7 TOTAL ASSETS $ (229.2 ) $ 674.6 $ 1,699.0 $ 174.1 $ 1,785.9 $ 4,104.4 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ — $ 618.6 $ 15.9 $ 18.0 $ (1.0 ) $ 651.5 Accrued liabilities — 157.8 5.9 12.9 — 176.6 Current portion of long-term debt — 168.5 — — — 168.5 Current portion of pension and other postretirement benefit obligations — 41.0 — 0.3 — 41.3 Total current liabilities — 985.9 21.8 31.2 (1.0 ) 1,037.9 Non-current liabilities: Long-term debt — 1,684.5 — — — 1,684.5 Pension and other postretirement benefit obligations — 1,074.4 — 3.2 — 1,077.6 Other non-current liabilities — 148.1 1.6 0.2 — 149.9 TOTAL LIABILITIES — 3,892.9 23.4 34.6 (1.0 ) 3,949.9 EXCHANGEABLE NOTES EXCHANGE FEATURE — 19.7 — — — 19.7 Equity: Total stockholders’ equity (deficit) (229.2 ) (3,238.0 ) 1,675.6 (224.5 ) 1,786.9 (229.2 ) Noncontrolling interests — — — 364.0 — 364.0 TOTAL EQUITY (229.2 ) (3,238.0 ) 1,675.6 139.5 1,786.9 134.8 TOTAL LIABILITIES AND EQUITY $ (229.2 ) $ 674.6 $ 1,699.0 $ 174.1 $ 1,785.9 $ 4,104.4 Condensed Consolidated Balance Sheets December 31, 2016 AK Holding AK Steel Guarantor Subsidiaries of the Senior Notes Other Non-Guarantor Subsidiaries Eliminations Consolidated Company ASSETS Current assets: Cash and cash equivalents $ — $ 147.9 $ 4.4 $ 20.9 $ — $ 173.2 Accounts receivable, net — 400.4 30.3 19.6 (8.3 ) 442.0 Inventory, net — 1,038.1 45.3 42.0 (11.5 ) 1,113.9 Other current assets — 91.5 0.2 2.9 — 94.6 Total current assets — 1,677.9 80.2 85.4 (19.8 ) 1,823.7 Property, plant and equipment — 5,857.9 175.9 535.2 — 6,569.0 Accumulated depreciation — (4,365.8 ) (87.2 ) (101.6 ) — (4,554.6 ) Property, plant and equipment, net — 1,492.1 88.7 433.6 — 2,014.4 Investment in subsidiaries (3,227.1 ) 1,406.2 — 67.5 1,753.4 — Inter-company accounts 2,954.9 (4,041.9 ) 1,464.0 (458.4 ) 81.4 — Other non-current assets — 126.0 33.0 38.9 — 197.9 TOTAL ASSETS $ (272.2 ) $ 660.3 $ 1,665.9 $ 167.0 $ 1,815.0 $ 4,036.0 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ — $ 557.7 $ 16.7 $ 15.0 $ 0.5 $ 589.9 Accrued liabilities — 213.7 7.0 13.4 — 234.1 Current portion of pension and other postretirement benefit obligations — 41.0 — 0.3 — 41.3 Total current liabilities — 812.4 23.7 28.7 0.5 865.3 Non-current liabilities: Long-term debt — 1,816.6 — — — 1,816.6 Pension and other postretirement benefit obligations — 1,090.4 — 3.3 — 1,093.7 Other non-current liabilities — 146.7 1.6 0.1 — 148.4 TOTAL LIABILITIES — 3,866.1 25.3 32.1 0.5 3,924.0 EXCHANGEABLE NOTES EXCHANGE FEATURE — 21.3 — — — 21.3 Equity: Total stockholders’ equity (deficit) (272.2 ) (3,227.1 ) 1,640.6 (228.0 ) 1,814.5 (272.2 ) Noncontrolling interests — — — 362.9 — 362.9 TOTAL EQUITY (272.2 ) (3,227.1 ) 1,640.6 134.9 1,814.5 90.7 TOTAL LIABILITIES AND EQUITY $ (272.2 ) $ 660.3 $ 1,665.9 $ 167.0 $ 1,815.0 $ 4,036.0 |
Schedule of Condensed Cash Flow Statement | Condensed Consolidated Statements of Cash Flows Three Months Ended March 31, 2017 AK Holding AK Steel Guarantor Subsidiaries of the Senior Notes Other Non-Guarantor Subsidiaries Eliminations Consolidated Company Net cash flows from operating activities $ (1.1 ) $ 16.0 $ 1.1 $ 21.4 $ (1.1 ) $ 36.3 Cash flows from investing activities: Capital investments — (30.6 ) (1.4 ) (0.5 ) — (32.5 ) Other investing items, net — 1.4 — 0.1 — 1.5 Net cash flows from investing activities — (29.2 ) (1.4 ) (0.4 ) — (31.0 ) Cash flows from financing activities: Proceeds from issuance of long-term debt — 400.0 — — — 400.0 Redemption of long-term debt — (367.5 ) — — — (367.5 ) Debt issuance costs — (7.8 ) — — — (7.8 ) Inter-company activity 3.6 1.6 (1.5 ) (4.8 ) 1.1 — SunCoke Middletown distributions to noncontrolling interest owners — — — (15.1 ) — (15.1 ) Other financing items, net (2.5 ) 0.1 — — — (2.4 ) Net cash flows from financing activities 1.1 26.4 (1.5 ) (19.9 ) 1.1 7.2 Net increase (decrease) in cash and cash equivalents — 13.2 (1.8 ) 1.1 — 12.5 Cash and equivalents, beginning of period — 147.9 4.4 20.9 — 173.2 Cash and equivalents, end of period $ — $ 161.1 $ 2.6 $ 22.0 $ — $ 185.7 Condensed Consolidated Statements of Cash Flows Three Months Ended March 31, 2016 AK Holding AK Steel Guarantor Subsidiaries of the Senior Notes Other Non-Guarantor Subsidiaries Eliminations Consolidated Company Net cash flows from operating activities $ (1.3 ) $ 108.1 $ 10.7 $ 15.1 $ 4.1 $ 136.7 Cash flows from investing activities: Capital investments — (27.2 ) (0.7 ) (0.9 ) — (28.8 ) Other investing items, net — — — (0.1 ) — (0.1 ) Net cash flows from investing activities — (27.2 ) (0.7 ) (1.0 ) — (28.9 ) Cash flows from financing activities: Net borrowings (payments) under credit facility — (30.0 ) — — — (30.0 ) Inter-company activity 1.6 8.0 (9.9 ) 4.4 (4.1 ) — SunCoke Middletown distributions to noncontrolling interest owners — — — (21.1 ) — (21.1 ) Other financing items, net (0.3 ) — — — — (0.3 ) Net cash flows from financing activities 1.3 (22.0 ) (9.9 ) (16.7 ) (4.1 ) (51.4 ) Net increase (decrease) in cash and cash equivalents — 58.9 0.1 (2.6 ) — 56.4 Cash and equivalents, beginning of period — 27.0 — 29.6 — 56.6 Cash and equivalents, end of period $ — $ 85.9 $ 0.1 $ 27.0 $ — $ 113.0 |
Supplementary Financial State37
Supplementary Financial Statement Information (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Finished and semi-finished | $ 916.3 | $ 855 |
Raw materials | 381.8 | 415.8 |
Total cost | 1,298.1 | 1,270.8 |
Adjustment to state inventories at LIFO value | (192.3) | (156.9) |
Inventory, net | $ 1,105.8 | $ 1,113.9 |
Supplementary Financial State38
Supplementary Financial Statement Information (Details2) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | ||
Revenue | $ 72.5 | $ 69.6 |
Gross profit | 25.5 | 23 |
Net income | 8.9 | 7.8 |
Cost of Sales [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Income from equity method investments | $ 3.4 | $ 2.9 |
Supplementary Financial State39
Supplementary Financial Statement Information (Details3) - Ashland Works Hot End [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | $ 6.1 | $ 22.1 |
Payments for Restructuring | (1.7) | (4.9) |
Ending Balance | 4.4 | 17.2 |
Estimated Monthly Ongoing Costs | 2 | |
Costs for Temporarily Idled Operations | 5.6 | $ 7.3 |
Long-Lived Assets | $ 70 |
Income Tax (Details)
Income Tax (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Alternative Minimum Tax [Member] | |
Tax Credit Carryforward [Line Items] | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 4.4 |
Long-term Debt and Other Fina41
Long-term Debt and Other Financing (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Jun. 30, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||||
Capital Lease Obligations | $ 25.2 | $ 25.2 | ||
Unamortized debt discount/premium and debt issuance costs | (56) | (53.7) | ||
Total debt | 1,853 | 1,816.6 | ||
Current portion of long-term debt | 168.5 | 0 | ||
Total long-term debt | 1,684.5 | 1,816.6 | ||
Debt issuance costs | 7.8 | $ 0 | ||
Exchangeable notes exchange feature | 19.7 | 21.3 | ||
Senior Secured Notes Due July 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 380 | $ 380 | ||
Debt Instrument, Interest Rate, Effective Percentage | 8.30% | 8.30% | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | 7.50% | ||
Exchangeable Senior Notes Due November 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 150 | $ 150 | ||
Debt Instrument, Interest Rate, Effective Percentage | 10.80% | 10.80% | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | ||
Debt Instrument, Convertible, Stock Price Trigger | $ 7.02 | |||
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | 130.00% | |||
Debt Instrument, Convertible, Threshold Trading Days | 20 | |||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | 30 days | |||
Exchangeable notes exchange feature | $ 19.7 | $ 21.3 | ||
Debt Instrument, Convertible, If-converted Value in Excess of Principal | 63.6 | |||
Senior Notes Due May 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 168.5 | $ 529.8 | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.625% | 7.625% | ||
Debt Instrument, Redemption Price, Percentage | 102.125% | |||
Debt Instrument, Repurchased Face Amount | $ (361.3) | |||
Gain (Loss) on Repurchase of Debt Instrument | $ (9.7) | |||
Senior Notes Due May 2020 [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Redemption Price, Percentage | 101.271% | |||
Senior Notes Due October 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 406.2 | $ 406.2 | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.625% | 7.625% | ||
Senior Notes Due April 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 279.8 | $ 279.8 | ||
Debt Instrument, Interest Rate, Stated Percentage | 8.375% | 8.375% | ||
Senior Notes Due March 2027 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 400 | $ 0 | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | |||
Proceeds from Debt, Net of Issuance Costs | $ 394 | |||
Debt issuance costs | $ 7.5 | |||
Senior Notes Due March 2027 [Member] | Debt Instrument, Redemption, Period One [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Redemption, Description | Before March 15, 2022, we may redeem the 2027 Notes at a price equal to par plus a make-whole premium and all accrued and unpaid interest to the date of redemption. | |||
Debt Instrument, Redemption Period, End Date | Mar. 14, 2022 | |||
Senior Notes Due March 2027 [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Redemption Price, Percentage | 103.50% | |||
Debt Instrument, Redemption Period, Start Date | Mar. 15, 2022 | |||
Debt Instrument, Redemption Period, End Date | Mar. 14, 2023 | |||
Senior Notes Due March 2027 [Member] | Debt Instrument, Redemption, Period Three [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Redemption Price, Percentage | 102.333% | |||
Debt Instrument, Redemption Period, Start Date | Mar. 15, 2023 | |||
Debt Instrument, Redemption Period, End Date | Mar. 14, 2024 | |||
Senior Notes Due March 2027 [Member] | Debt Instrument, Redemption, Period Four [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Redemption Price, Percentage | 101.167% | |||
Debt Instrument, Redemption Period, Start Date | Mar. 15, 2024 | |||
Debt Instrument, Redemption Period, End Date | Mar. 14, 2025 | |||
Senior Notes Due March 2027 [Member] | Debt Instrument, Redemption, Period Five [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||
Debt Instrument, Redemption Period, Start Date | Mar. 15, 2025 | |||
Debt Instrument, Redemption Period, End Date | Mar. 15, 2027 | |||
Industrial Revenue Bonds [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 99.3 | 99.3 | ||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit Facility | $ 0 | $ 0 | ||
Line of Credit Facility, Expiration Date | Mar. 31, 2019 | |||
Scenario, Forecast [Member] | Senior Notes Due May 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Gain (Loss) on Repurchase of Debt Instrument | $ (3.4) |
Long-term Debt and Other Fina42
Long-term Debt and Other Financing (Details2) - Revolving Credit Facility [Member] - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 1,500,000,000 | |
Line of Credit Facility, Expiration Date | Mar. 31, 2019 | |
Minimum amount of borrowing capacity for a fixed charge coverage ratio applies | $ 150,000,000 | |
Line of Credit Facility, Current Borrowing Capacity | 1,352,000,000 | |
Outstanding borrowings on revolving credit facility | 0 | $ 0 |
Letters of credit, outstanding | 70,700,000 | |
Line of credit facility, remaining borrowing capacity | $ 1,281,300,000 | |
Debt Instrument, Covenant Description | The Credit Facility contains common restrictions, including limitations on, among other things, distributions and dividends, acquisitions and investments, indebtedness, liens and affiliate transactions. The Credit Facility requires that we maintain a minimum fixed charge coverage ratio of one to one if availability under the Credit Facility is less than $150.0. The Credit Facility?s current availability significantly exceeds $150.0. Availability is calculated as the lesser of the Credit Facility commitment or eligible collateral after advance rates, less outstanding revolver borrowings and letters of credit. We secure our Credit Facility obligations with our inventory and accounts receivable, and the Credit Facility?s availability fluctuates monthly based on the varying levels of eligible collateral. |
Pension and Other Postretirem43
Pension and Other Postretirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Pension Plans, Defined Benefit [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Estimated pension plan contributions in current year | $ 44.1 | |
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 60 | |
Defined Benefit Plans, Estimated Future Employer Contributions, Year Two | 75 | |
Net periodic benefit cost (income) [Abstract] | ||
Service cost | 0.7 | $ 0.7 |
Interest cost | 27 | 32 |
Expected return on assets | (37.6) | (42.9) |
Amortization of prior service cost (credit) | 1.2 | 1.3 |
Amortization of (gain) loss | 2.7 | 7 |
Net periodic benefit cost (income) | (6) | (1.9) |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ||
Net periodic benefit cost (income) [Abstract] | ||
Service cost | 1.2 | 1.2 |
Interest cost | 4.3 | 5 |
Amortization of prior service cost (credit) | (14.6) | (15.1) |
Amortization of (gain) loss | (1.1) | (1.1) |
Net periodic benefit cost (income) | $ (10.2) | $ (10) |
Environmental and Legal Conti44
Environmental and Legal Contingencies (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrued liabilities | $ 7.2 | $ 7.3 |
Other non-current liabilities | $ 40.1 | $ 39.9 |
Environmental and Legal Conti45
Environmental and Legal Contingencies (Details 2) $ in Millions | Mar. 31, 2017USD ($) |
Hamilton Plant [Member] | |
Site Contingency [Line Items] | |
Site contingency accrual, undiscounted amount | $ 0.7 |
Mansfield OH Works [Member] | |
Site Contingency [Line Items] | |
Site contingency accrual, undiscounted amount | 1.1 |
Ashland coke plant [Member] | |
Site Contingency [Line Items] | |
Site contingency accrual, undiscounted amount | 1.4 |
Ambridge Works [Member] | |
Site Contingency [Line Items] | |
Site contingency accrual, undiscounted amount | 5.6 |
Middletown Works RCRA Site [Member] | |
Site Contingency [Line Items] | |
Site contingency accrual, undiscounted amount | 14.6 |
Zanesville Works RCRA [Member] | |
Site Contingency [Line Items] | |
Site contingency accrual, undiscounted amount | $ 0.7 |
Environmental and Legal Conti46
Environmental and Legal Contingencies (Details 3) | 3 Months Ended | ||
Mar. 31, 2017USD ($)claims-lawsuitsdefendantsplaintiffs | Mar. 31, 2016USD ($)claims-lawsuits | ||
Asbestos Claims With Specific Dollar Claim For Damages [Member] | |||
Information on pending asbestos cases [Line Items] | |||
Number of asbestos cases pending | claims-lawsuits | [1] | 136 | |
Claims with specific dollar claims for damages [Abstract] | |||
Asbestos Lawsuits Pending With Dollars Number Of Plaintiffs | plaintiffs | 2,336 | ||
Asbestos Lawsuits Pending With Dollars Number Of Defendants | defendants | 17,601 | ||
Asbestos Claims With Specific Dollar Claim For Damages [Member] | Asbestos Claims of Range 1 [Member] | |||
Information on pending asbestos cases [Line Items] | |||
Number of asbestos cases pending | claims-lawsuits | 126 | ||
Claims with specific dollar claims for damages [Abstract] | |||
Amount claimed per plaintiff, lower range | $ | $ 0 | ||
Amount claimed per plaintiff, upper range | $ | $ 200,000 | ||
Asbestos Claims With Specific Dollar Claim For Damages [Member] | Asbestos Claims Range 2 [Member] | |||
Information on pending asbestos cases [Line Items] | |||
Number of asbestos cases pending | claims-lawsuits | 6 | ||
Claims with specific dollar claims for damages [Abstract] | |||
Amount claimed per plaintiff, lower range | $ | $ 200,000 | ||
Amount claimed per plaintiff, upper range | $ | $ 5,000,000 | ||
Asbestos Claims With Specific Dollar Claim For Damages [Member] | Asbestos Claims of Range 3 [Member] | |||
Information on pending asbestos cases [Line Items] | |||
Number of asbestos cases pending | claims-lawsuits | 2 | ||
Claims with specific dollar claims for damages [Abstract] | |||
Amount claimed per plaintiff, lower range | $ | $ 5,000,000 | ||
Amount claimed per plaintiff, upper range | $ | $ 15,000,000 | ||
Asbestos Claims With Specific Dollar Claim For Damages [Member] | Asbestos Claims Range 4 [Member] | |||
Information on pending asbestos cases [Line Items] | |||
Number of asbestos cases pending | claims-lawsuits | 2 | ||
Claims with specific dollar claims for damages [Abstract] | |||
Amount claimed per plaintiff, lower range | $ | $ 15,000,000 | ||
Amount claimed per plaintiff, upper range | $ | $ 20,000,000 | ||
Asbestos Claims Without Specific Dollar Claim For Damages [Member] | |||
Information on pending asbestos cases [Line Items] | |||
Number of asbestos cases pending | claims-lawsuits | 210 | ||
Asbestos Issue [Member] | |||
Information on pending asbestos cases [Line Items] | |||
Number of asbestos cases pending | claims-lawsuits | 346 | ||
Claims with specific dollar claims for damages [Abstract] | |||
Loss Contingency, New Claims Filed, Number | claims-lawsuits | 18 | 13 | |
Loss Contingency, Claims Settled and Dismissed, Number | claims-lawsuits | 11 | 46 | |
Amounts paid in asbestos settlements | $ | $ 100,000 | $ 300,000 | |
[1] | Involve a total of 2,336 plaintiffs and 17,601 |
Environmental and Legal Conti47
Environmental and Legal Contingencies (Details 4) $ in Millions | 1 Months Ended |
Mar. 31, 2014USD ($) | |
Antitrust Case [Member] | |
Loss Contingencies [Line Items] | |
Payments for Legal Settlements | $ 5.8 |
Environmental and Legal Conti48
Environmental and Legal Contingencies (Details 5) - Final [Member] | Feb. 02, 2017 | Aug. 05, 2016 | Jul. 21, 2016 | May 25, 2016 | May 17, 2016 |
US Trade Case - CORE [Member] | Countervailing Duty [Member] | CHINA | Maximum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 241.07% | ||||
US Trade Case - CORE [Member] | Countervailing Duty [Member] | CHINA | Minimum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 39.05% | ||||
US Trade Case - CORE [Member] | Countervailing Duty [Member] | INDIA | Maximum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 29.49% | ||||
US Trade Case - CORE [Member] | Countervailing Duty [Member] | INDIA | Minimum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 8.00% | ||||
US Trade Case - CORE [Member] | Countervailing Duty [Member] | ITALY | Maximum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 38.51% | ||||
US Trade Case - CORE [Member] | Countervailing Duty [Member] | ITALY | Minimum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 0.00% | ||||
US Trade Case - CORE [Member] | Countervailing Duty [Member] | KOREA, REPUBLIC OF | Maximum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 1.19% | ||||
US Trade Case - CORE [Member] | Countervailing Duty [Member] | KOREA, REPUBLIC OF | Minimum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 0.00% | ||||
US Trade Case - CORE [Member] | Countervailing Duty [Member] | TAIWAN, PROVINCE OF CHINA | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 0.00% | ||||
US Trade Case - CORE [Member] | Antidumping Duty [Member] | CHINA | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 209.97% | ||||
US Trade Case - CORE [Member] | Antidumping Duty [Member] | INDIA | Maximum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 4.43% | ||||
US Trade Case - CORE [Member] | Antidumping Duty [Member] | INDIA | Minimum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 3.05% | ||||
US Trade Case - CORE [Member] | Antidumping Duty [Member] | ITALY | Maximum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 92.12% | ||||
US Trade Case - CORE [Member] | Antidumping Duty [Member] | ITALY | Minimum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 12.63% | ||||
US Trade Case - CORE [Member] | Antidumping Duty [Member] | KOREA, REPUBLIC OF | Maximum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 47.80% | ||||
US Trade Case - CORE [Member] | Antidumping Duty [Member] | KOREA, REPUBLIC OF | Minimum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 8.75% | ||||
US Trade Case - CORE [Member] | Antidumping Duty [Member] | TAIWAN, PROVINCE OF CHINA | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 10.34% | ||||
US Trade Case - ColdRolled [Member] | Countervailing Duty [Member] | CHINA | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 256.44% | ||||
US Trade Case - ColdRolled [Member] | Countervailing Duty [Member] | INDIA | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 10.00% | ||||
US Trade Case - ColdRolled [Member] | Countervailing Duty [Member] | KOREA, REPUBLIC OF | Maximum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 59.72% | ||||
US Trade Case - ColdRolled [Member] | Countervailing Duty [Member] | KOREA, REPUBLIC OF | Minimum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 3.89% | ||||
US Trade Case - ColdRolled [Member] | Countervailing Duty [Member] | BRAZIL | Maximum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 11.31% | ||||
US Trade Case - ColdRolled [Member] | Countervailing Duty [Member] | BRAZIL | Minimum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 11.09% | ||||
US Trade Case - ColdRolled [Member] | Antidumping Duty [Member] | CHINA | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 265.79% | ||||
US Trade Case - ColdRolled [Member] | Antidumping Duty [Member] | INDIA | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 7.60% | ||||
US Trade Case - ColdRolled [Member] | Antidumping Duty [Member] | KOREA, REPUBLIC OF | Maximum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 34.33% | ||||
US Trade Case - ColdRolled [Member] | Antidumping Duty [Member] | KOREA, REPUBLIC OF | Minimum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 6.32% | ||||
US Trade Case - ColdRolled [Member] | Antidumping Duty [Member] | BRAZIL | Maximum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 35.43% | ||||
US Trade Case - ColdRolled [Member] | Antidumping Duty [Member] | BRAZIL | Minimum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 19.58% | ||||
US Trade Case - ColdRolled [Member] | Antidumping Duty [Member] | JAPAN | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 71.35% | ||||
US Trade Case - ColdRolled [Member] | Antidumping Duty [Member] | UNITED KINGDOM | Maximum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 25.17% | ||||
US Trade Case - ColdRolled [Member] | Antidumping Duty [Member] | UNITED KINGDOM | Minimum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 5.40% | ||||
US Trade Case - HotRolled [Member] | Countervailing Duty [Member] | KOREA, REPUBLIC OF | Maximum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 58.68% | ||||
US Trade Case - HotRolled [Member] | Countervailing Duty [Member] | KOREA, REPUBLIC OF | Minimum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 3.89% | ||||
US Trade Case - HotRolled [Member] | Countervailing Duty [Member] | BRAZIL | Maximum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 11.30% | ||||
US Trade Case - HotRolled [Member] | Countervailing Duty [Member] | BRAZIL | Minimum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 11.09% | ||||
US Trade Case - HotRolled [Member] | Antidumping Duty [Member] | KOREA, REPUBLIC OF | Maximum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 9.49% | ||||
US Trade Case - HotRolled [Member] | Antidumping Duty [Member] | KOREA, REPUBLIC OF | Minimum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 4.61% | ||||
US Trade Case - HotRolled [Member] | Antidumping Duty [Member] | BRAZIL | Maximum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 34.28% | ||||
US Trade Case - HotRolled [Member] | Antidumping Duty [Member] | BRAZIL | Minimum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 33.14% | ||||
US Trade Case - HotRolled [Member] | Antidumping Duty [Member] | JAPAN | Maximum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 7.51% | ||||
US Trade Case - HotRolled [Member] | Antidumping Duty [Member] | JAPAN | Minimum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 4.99% | ||||
US Trade Case - HotRolled [Member] | Antidumping Duty [Member] | UNITED KINGDOM | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 33.06% | ||||
US Trade Case - HotRolled [Member] | Antidumping Duty [Member] | AUSTRALIA | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 29.58% | ||||
US Trade Case - HotRolled [Member] | Antidumping Duty [Member] | NETHERLANDS | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 3.73% | ||||
US Trade Case - HotRolled [Member] | Antidumping Duty [Member] | TURKEY | Maximum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 6.77% | ||||
US Trade Case - HotRolled [Member] | Antidumping Duty [Member] | TURKEY | Minimum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 4.15% | ||||
US Trade Case - Stainless [Member] | Countervailing Duty [Member] | CHINA | Maximum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 190.71% | ||||
US Trade Case - Stainless [Member] | Countervailing Duty [Member] | CHINA | Minimum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 75.60% | ||||
US Trade Case - Stainless [Member] | Antidumping Duty [Member] | CHINA | Maximum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 76.64% | ||||
US Trade Case - Stainless [Member] | Antidumping Duty [Member] | CHINA | Minimum [Member] | |||||
Duty Rates [Line Items] | |||||
Duty Rate | 63.86% |
Share-based Compensation (Detai
Share-based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Estimated share-based compensation expense | $ 8.1 | |
Share-based Compensation Expense [Abstract] | ||
Share-based Compensation Expense | $ 4.2 | $ 2 |
Number of options granted (in shares) | 513,600 | |
Weighted-average grant-date fair value per share of options granted (dollars per share) | $ 5.33 | |
Number of options exercised (in shares) | 41,800 | |
Stock Options [Member] | ||
Share-based Compensation Expense [Abstract] | ||
Share-based Compensation Expense | $ 1.5 | 0.5 |
Restricted Stock [Member] | ||
Share-based Compensation Expense [Abstract] | ||
Share-based Compensation Expense | $ 1.9 | 0.8 |
Number of shares granted (in shares) | 355,600 | |
Weighted average grant date fair value, granted (dollars per share) | $ 9.78 | |
Intrinsic value of shares vested/restrictions lapsed during the period | $ 3.8 | |
Restricted Stock Units Issued to Directors [Member] | ||
Share-based Compensation Expense [Abstract] | ||
Share-based Compensation Expense | 0.4 | 0.3 |
Performance shares [Member] | ||
Share-based Compensation Expense [Abstract] | ||
Share-based Compensation Expense | $ 0.4 | $ 0.4 |
Number of shares granted (in shares) | 263,600 | |
Weighted average grant date fair value, granted (dollars per share) | $ 10.78 | |
Intrinsic value of shares vested/restrictions lapsed during the period | $ 4.5 |
Comprehensive Income (Loss) (De
Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Foreign Currency Translation [Abstract] | |||
Balance at beginning of period | $ (3.6) | $ (2.1) | |
Foreign currency translation gain (loss) | 0.3 | 1.5 | |
Balance at end of period | (3.3) | (0.6) | |
Cash flow hedges | |||
Balance at beginning of period | 46.4 | (34) | |
Other comprehensive income (loss): | |||
Gains (losses) arising in period | (8) | (7.8) | |
Income tax expense (benefit) | 0 | 0 | |
Gains (losses) arising in period, net of tax | (8) | (7.8) | |
Reclassification of losses (gains) to net income (loss) | (3.2) | 13.2 | |
Income tax expense | 0 | 0 | |
Net amount of reclassification of losses (gains) to net income (loss) | (3.2) | 13.2 | |
Total other comprehensive income (loss), net of tax | (11.2) | 5.4 | |
Balance at end of period | 35.2 | (28.6) | |
Pension and OPEB plans | |||
Balance at beginning of period | (106.3) | (151.1) | |
Reclassification to net income (loss): | |||
Prior service costs (credits) (b) | (13.4) | (13.8) | |
Actuarial (gains) losses (b) | 1.6 | 5.9 | |
Subtotal | (11.8) | (7.9) | |
Income tax expense | 0 | 0 | |
Amount of reclasification to net income (loss), net of tax | (11.8) | (7.9) | |
Balance at end of period | (118.1) | (159) | |
Cost of Sales [Member] | |||
Other comprehensive income (loss): | |||
Reclassification of losses (gains) to net income (loss) | [1] | (3.2) | 13.2 |
Pension and OPEB Expense (Income) [Member] | |||
Reclassification to net income (loss): | |||
Prior service costs (credits) (b) | [2] | (13.4) | (13.8) |
Actuarial (gains) losses (b) | [2] | $ 1.6 | $ 5.9 |
[1] | Included in cost of products sold. | ||
[2] | Included in pension and OPEB expense (income). |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Net income (loss) attributable to AK Steel Holding Corporation | $ 62.5 | $ (13.6) |
Less: distributed earnings to common stockholders and holders of certain stock compensation awards | 0 | 0 |
Undistributed earnings (loss) | 62.5 | (13.6) |
Common stockholders earnings - basic [Abstract] | ||
Distributed earnings to common stockholders - basic | 0 | 0 |
Undistributed earnings (loss) to common stockholders - basic | 62.4 | (13.5) |
Common stockholders earnings (loss) - basic | 62.4 | (13.5) |
Common stockholders earnings - diluted [Abstract] | ||
Distributed earnings to common stockholders - diluted | 0 | 0 |
Undistributed earnings (loss) to common stockholders - diluted | 62.4 | (13.5) |
Common stockholders earnings (loss) - diluted | $ 62.4 | $ (13.5) |
Common shares outstanding (weighted-average shares in millions) [Abstract] | ||
Common shares outstanding for basic earnings per share | 314.1 | 177.5 |
Effect of exchangeable debt (in shares) | 10.3 | 0 |
Effect of dilutive stock-based compensation (in shares) | 1.2 | 0 |
Common shares outstanding for diluted earnings per share | 325.6 | 177.5 |
Basic earnings per share [Abstract] | ||
Distributed earnings - basic (in dollars per share) | $ 0 | $ 0 |
Undistributed earnings (loss) - basic (in dollars per share) | 0.20 | (0.08) |
Basic earnings (loss) per share (in dollars per share) | 0.20 | (0.08) |
Diluted earnings per share [Abstract] | ||
Distributed earnings - diluted (in dollars per share) | 0 | 0 |
Undistributed earnings (loss) - diluted (in dollars per share) | 0.19 | (0.08) |
Diluted earnings (loss) per share (in dollars per share) | $ 0.19 | $ (0.08) |
Potentially issuable common shares (in millions) excluded from earnings per share calculation due to anti-dilutive effect (in shares) | 1.1 | 3.9 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Variable Interest Entity [Line Items] | ||
Income (loss) before income taxes | $ 65.3 | $ 4.5 |
SunCoke Middletown [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, ownership percentage (in hundredths) | 0.00% | |
Income (loss) before income taxes | $ 16.2 | $ 18 |
Vicksmetal Armco Associates [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, ownership percentage (in hundredths) | 50.00% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Liabilities measured at fair value | ||
Debt Instrument, Fair Value Disclosure | $ (2,065.6) | $ (2,123.2) |
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Liabilities measured at fair value | ||
Debt Instrument, Fair Value Disclosure | 0 | 0 |
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Liabilities measured at fair value | ||
Debt Instrument, Fair Value Disclosure | (2,065.6) | (2,123.2) |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Liabilities measured at fair value | ||
Debt Instrument, Fair Value Disclosure | (1,853) | (1,816.6) |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Liabilities measured at fair value | ||
Debt Instrument, Fair Value Disclosure | 0 | 0 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Liabilities measured at fair value | ||
Debt Instrument, Fair Value Disclosure | (1,853) | (1,816.6) |
Fair Value, Measurements, Recurring [Member] | ||
Assets measured at fair value | ||
Assets measured at fair value | 238.1 | 235.6 |
Liabilities measured at fair value | ||
Liabilities measured at fair value | (3) | (2.4) |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets measured at fair value | ||
Assets measured at fair value | 45.7 | 48.2 |
Liabilities measured at fair value | ||
Liabilities measured at fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets measured at fair value | ||
Assets measured at fair value | 192.4 | 187.4 |
Liabilities measured at fair value | ||
Liabilities measured at fair value | (3) | (2.4) |
Fair Value, Measurements, Recurring [Member] | Cash and Cash Equivalents [Member] | ||
Assets measured at fair value | ||
Cash and cash equivalents | 185.7 | 173.2 |
Fair Value, Measurements, Recurring [Member] | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets measured at fair value | ||
Cash and cash equivalents | 45.7 | 48.2 |
Fair Value, Measurements, Recurring [Member] | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets measured at fair value | ||
Cash and cash equivalents | 140 | 125 |
Fair Value, Measurements, Recurring [Member] | Other Current Assets [Member] | ||
Assets measured at fair value | ||
Foreign exchange contracts - current | 0.1 | 0.1 |
Commodity hedge contracts - current | 43.6 | 47 |
Fair Value, Measurements, Recurring [Member] | Other Current Assets [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets measured at fair value | ||
Foreign exchange contracts - current | 0 | 0 |
Commodity hedge contracts - current | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Other Current Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets measured at fair value | ||
Foreign exchange contracts - current | 0.1 | 0.1 |
Commodity hedge contracts - current | 43.6 | 47 |
Fair Value, Measurements, Recurring [Member] | Other Non-current Assets [Member] | ||
Assets measured at fair value | ||
Commodity hedge contracts - noncurrent | 8.7 | 15.3 |
Fair Value, Measurements, Recurring [Member] | Other Non-current Assets [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets measured at fair value | ||
Commodity hedge contracts - noncurrent | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Other Non-current Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets measured at fair value | ||
Commodity hedge contracts - noncurrent | 8.7 | 15.3 |
Fair Value, Measurements, Recurring [Member] | Accrued Liabilities [Member] | ||
Liabilities measured at fair value | ||
Commodity hedge contracts - current | (1.5) | (1.8) |
Fair Value, Measurements, Recurring [Member] | Accrued Liabilities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Liabilities measured at fair value | ||
Commodity hedge contracts - current | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Accrued Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Liabilities measured at fair value | ||
Commodity hedge contracts - current | (1.5) | (1.8) |
Fair Value, Measurements, Recurring [Member] | Other Non-current Liabilities [Member] | ||
Liabilities measured at fair value | ||
Commodity hedge contracts - noncurrent | (1.5) | (0.6) |
Fair Value, Measurements, Recurring [Member] | Other Non-current Liabilities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Liabilities measured at fair value | ||
Commodity hedge contracts - noncurrent | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Other Non-current Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Liabilities measured at fair value | ||
Commodity hedge contracts - noncurrent | $ (1.5) | $ (0.6) |
Liability [Member] | Maximum [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Benchmark interest rates for contracts (in hundredths) | 5.00% | |
Assets [Member] | Maximum [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Benchmark interest rates for contracts (in hundredths) | 2.00% |
Derivative Instruments and He54
Derivative Instruments and Hedging Activities (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017USD ($)MMBTUtlbMW | Mar. 31, 2017EUR (€)MMBTUtlbMW | Dec. 31, 2016EUR (€)MMBTUtlbMW | |
Derivative [Line Items] | |||
Derivative, Collateral, Right to Reclaim Cash | $ 0 | ||
Natural Gas [Member] | |||
Derivative [Line Items] | |||
Beginning Settlement Date | Apr. 1, 2017 | ||
Ending Settlement Date | Mar. 31, 2019 | ||
Gains (losses) expected to be reclassified into cost of products sold within the next twelve months | $ 15.3 | ||
Zinc [Member] | |||
Derivative [Line Items] | |||
Beginning Settlement Date | Apr. 1, 2017 | ||
Ending Settlement Date | Dec. 31, 2018 | ||
Gains (losses) expected to be reclassified into cost of products sold within the next twelve months | $ 7.2 | ||
Electricity [Member] | |||
Derivative [Line Items] | |||
Beginning Settlement Date | Apr. 1, 2017 | ||
Ending Settlement Date | Dec. 31, 2018 | ||
Gains (losses) expected to be reclassified into cost of products sold within the next twelve months | $ 0.2 | ||
Commodity Contract [Member] | Natural Gas [Member] | |||
Derivative [Line Items] | |||
Nonmonetary Notional Amount of Derivatives | MMBTU | 40,198,000 | 40,198,000 | 43,865,000 |
Commodity Contract [Member] | Zinc [Member] | |||
Derivative [Line Items] | |||
Nonmonetary Notional Amount of Derivatives | lb | 53,000,000 | 53,000,000 | 58,750,000 |
Commodity Contract [Member] | Iron Ore [Member] | |||
Derivative [Line Items] | |||
Nonmonetary Notional Amount of Derivatives | t | 2,300,000 | 2,300,000 | 2,555,000 |
Commodity Contract [Member] | Electricity [Member] | |||
Derivative [Line Items] | |||
Nonmonetary Notional Amount of Derivatives | MW | 1,356,000 | 1,356,000 | 1,578,821 |
Foreign Exchange Contract [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | € | € 17,300,000 | € 5,000,000 |
Derivative Instruments and He55
Derivative Instruments and Hedging Activities (Details 2) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Current | $ 13.3 | $ 18.5 |
Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other Non-current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Noncurrent | 0.8 | 5.2 |
Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Current | (1.5) | (1.8) |
Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other Non-current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Noncurrent | (0.9) | (0.1) |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Current | 0.1 | 0.1 |
Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Current | 30.3 | 28.5 |
Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other Non-current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Noncurrent | 7.9 | 10.1 |
Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other Non-current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Noncurrent | $ (0.6) | $ (0.5) |
Derivative Instruments and He56
Derivative Instruments and Hedging Activities (Details 3) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Other Nonoperating Income (Expense) [Member] | Foreign Exchange Contract [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ (0.1) | $ (1.8) |
Cost of Products Sold [Member] | Commodity Contract [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 15.3 | (0.5) |
Cash Flow Hedging [Member] | Cost of Products Sold [Member] | Commodity Contract [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Reclassified from accumulated other comprehensive income (loss) into income (effective portion) | 3.2 | (13.2) |
Recognized in cost of products sold (ineffective portion and amount excluded from effectiveness testing) | (0.2) | $ 4.4 |
Iron Ore [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain | 16.3 | |
Derivative, Cash Received on Hedge | $ 11.4 |
Supplemental Cash Flow Inform57
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplemental cash flow, net cash paid (received) during the period for: [Abstract] | ||||
Interest, net of capitalized interest | $ 45.1 | $ 4.8 | ||
Income taxes | 0.1 | (3.4) | ||
Net Cash Provided by (Used in) Operating Activities | 36.3 | 136.7 | ||
Cash and Cash Equivalents, at Carrying Value | 185.7 | 113 | $ 173.2 | $ 56.6 |
Supplemental cash flow, noncash investing and financing activities [Abstract] | ||||
Capital investments | 21.6 | 21.2 | ||
Restricted Stock and Restricted Stock Units [Member] | ||||
Supplemental cash flow, noncash investing and financing activities [Abstract] | ||||
Issuance of performance shars, restricted stock and restricted stock units | 3.8 | 1.4 | ||
Variable Interest Entity, Primary Beneficiary [Member] | SunCoke Middletown [Member] | ||||
Supplemental cash flow, net cash paid (received) during the period for: [Abstract] | ||||
Net Cash Provided by (Used in) Operating Activities | 20.3 | 20.4 | ||
Cash and Cash Equivalents, at Carrying Value | 10.1 | $ 5 | ||
Research And Innovation Center Middletown OH [Member] | ||||
Supplemental cash flow, noncash investing and financing activities [Abstract] | ||||
Research and Innovation Center capital lease | $ 0 | $ 9.6 |
Union Contracts (Details)
Union Contracts (Details) | Mar. 31, 2017employees |
Mansfield OH Works [Member] | |
Concentration Risk [Line Items] | |
Entity Number of Employees | 300 |
Dearborn Works [Member] | |
Concentration Risk [Line Items] | |
Entity Number of Employees | 1,165 |
Rockport IN Works Production [Member] | |
Concentration Risk [Line Items] | |
Entity Number of Employees | 190 |
Rockport IN Works Maintenance [Member] | |
Concentration Risk [Line Items] | |
Entity Number of Employees | 135 |
Walbridge Tube [Member] | |
Concentration Risk [Line Items] | |
Entity Number of Employees | 90 |
Middletown Works [Member] | |
Concentration Risk [Line Items] | |
Entity Number of Employees | 1,725 |
Supplemental Guarantor Inform59
Supplemental Guarantor Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
Condensed Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ||||||
Net sales | $ 1,533.4 | $ 1,518.8 | ||||
Cost of products sold (exclusive of items shown separately below) | 1,310.8 | 1,365.5 | ||||
Selling and administrative expenses (exclusive of items shown separately below) | 71.2 | 63.5 | ||||
Depreciation | 55.1 | 53.7 | ||||
Pension and OPEB expense (income) | (16.2) | (11.9) | ||||
Total operating costs | 1,420.9 | 1,470.8 | ||||
Operating profit (loss) | 112.5 | 48 | ||||
Interest expense | 39.4 | 42.8 | ||||
Other income (expense) | (7.8) | (0.7) | ||||
Income (loss) before income taxes | 65.3 | 4.5 | ||||
Income tax expense (benefit) | (13.4) | 0.1 | ||||
Equity in net income (loss) of subsidiaries | 0 | 0 | ||||
Net income (loss) | 78.7 | 4.4 | ||||
Less: Net income attributable to noncontrolling interests | 16.2 | 18 | ||||
Net income (loss) attributable to AK Steel Holding Corporation | 62.5 | (13.6) | ||||
Other comprehensive income (loss) | (22.7) | (1) | ||||
Comprehensive income (loss) attributable to AK Steel Holding Corporation | 39.8 | (14.6) | ||||
Current assets: | ||||||
Cash and cash equivalents | 173.2 | 113 | $ 185.7 | $ 173.2 | $ 113 | $ 56.6 |
Accounts receivable, net | 524.5 | 442 | ||||
Inventory, net | 1,105.8 | 1,113.9 | ||||
Other current assets | 107.7 | 94.6 | ||||
Total current assets | 1,923.7 | 1,823.7 | ||||
Property, plant and equipment | 6,585.4 | 6,569 | ||||
Accumulated depreciation | (4,609.4) | (4,554.6) | ||||
Property, plant and equipment, net | 1,976 | 2,014.4 | ||||
Investment in subsidiaries | 0 | 0 | ||||
Inter-company accounts | 0 | 0 | ||||
Other non-current assets | 204.7 | 197.9 | ||||
TOTAL ASSETS | 4,104.4 | 4,036 | ||||
Current liabilities: | ||||||
Accounts payable | 651.5 | 589.9 | ||||
Accrued liabilities | 176.6 | 234.1 | ||||
Current portion of long-term debt | 168.5 | 0 | ||||
Current portion of pension and other postretirement benefit obligations | 41.3 | 41.3 | ||||
Total current liabilities | 1,037.9 | 865.3 | ||||
Non-current liabilities: | ||||||
Long-term debt | 1,684.5 | 1,816.6 | ||||
Pension and other postretirement benefit obligations | 1,077.6 | 1,093.7 | ||||
Other non-current liabilities | 149.9 | 148.4 | ||||
TOTAL LIABILITIES | 3,949.9 | 3,924 | ||||
EXCHANGEABLE NOTES EXCHANGE FEATURE | 19.7 | 21.3 | ||||
Equity [Abstract] | ||||||
Total stockholders' equity (deficit) | (229.2) | (272.2) | ||||
Noncontrolling interests | 364 | 362.9 | ||||
TOTAL EQUITY | 134.8 | 90.7 | (611.6) | (595.6) | ||
TOTAL LIABILITIES AND EQUITY | 4,104.4 | 4,036 | ||||
Condensed Consolidated Statements of Cash Flows [Abstract] | ||||||
Net cash flows from operating activities | 36.3 | 136.7 | ||||
Cash flows from investing activities: | ||||||
Capital investments | (32.5) | (28.8) | ||||
Other investing items, net | 1.5 | (0.1) | ||||
Net cash flows from investing activities | (31) | (28.9) | ||||
Cash flows from financing activities: | ||||||
Net borrowings (payments) under credit facility | 0 | (30) | ||||
Proceeds from issuance of long-term debt | 400 | 0 | ||||
Redemption of long-term debt | (367.5) | 0 | ||||
Debt issuance costs | (7.8) | 0 | ||||
Inter-company activity | 0 | 0 | ||||
SunCoke Middletown distributions to noncontrolling interest owners | (15.1) | (21.1) | ||||
Other financing items, net | (2.4) | (0.3) | ||||
Net cash flows from financing activities | 7.2 | (51.4) | ||||
Net increase (decrease) in cash and cash equivalents | 12.5 | 56.4 | ||||
Cash and cash equivalents, beginning of period | 173.2 | 56.6 | ||||
Cash and cash equivalents, end of period | 185.7 | 113 | ||||
AK Holding [Member] | ||||||
Condensed Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ||||||
Net sales | 0 | 0 | ||||
Cost of products sold (exclusive of items shown separately below) | 0 | 0 | ||||
Selling and administrative expenses (exclusive of items shown separately below) | 1.4 | 1.3 | ||||
Depreciation | 0 | 0 | ||||
Pension and OPEB expense (income) | 0 | 0 | ||||
Total operating costs | 1.4 | 1.3 | ||||
Operating profit (loss) | (1.4) | (1.3) | ||||
Interest expense | 0 | 0 | ||||
Other income (expense) | 0 | 0 | ||||
Income (loss) before income taxes | (1.4) | (1.3) | ||||
Income tax expense (benefit) | 0 | 0 | ||||
Equity in net income (loss) of subsidiaries | 63.9 | (11.1) | ||||
Net income (loss) | 62.5 | (12.4) | ||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | ||||
Net income (loss) attributable to AK Steel Holding Corporation | 62.5 | (12.4) | ||||
Other comprehensive income (loss) | (22.7) | (1) | ||||
Comprehensive income (loss) attributable to AK Steel Holding Corporation | 39.8 | (13.4) | ||||
Current assets: | ||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||||
Inventory, net | 0 | 0 | ||||
Other current assets | 0 | 0 | ||||
Total current assets | 0 | 0 | ||||
Property, plant and equipment | 0 | 0 | ||||
Accumulated depreciation | 0 | 0 | ||||
Property, plant and equipment, net | 0 | 0 | ||||
Investment in subsidiaries | (3,238) | (3,227.1) | ||||
Inter-company accounts | 3,008.8 | 2,954.9 | ||||
Other non-current assets | 0 | 0 | ||||
TOTAL ASSETS | (229.2) | (272.2) | ||||
Current liabilities: | ||||||
Accounts payable | 0 | 0 | ||||
Accrued liabilities | 0 | 0 | ||||
Current portion of long-term debt | 0 | |||||
Current portion of pension and other postretirement benefit obligations | 0 | 0 | ||||
Total current liabilities | 0 | 0 | ||||
Non-current liabilities: | ||||||
Long-term debt | 0 | 0 | ||||
Pension and other postretirement benefit obligations | 0 | 0 | ||||
Other non-current liabilities | 0 | 0 | ||||
TOTAL LIABILITIES | 0 | 0 | ||||
EXCHANGEABLE NOTES EXCHANGE FEATURE | 0 | 0 | ||||
Equity [Abstract] | ||||||
Total stockholders' equity (deficit) | (229.2) | (272.2) | ||||
Noncontrolling interests | 0 | 0 | ||||
TOTAL EQUITY | (229.2) | (272.2) | ||||
TOTAL LIABILITIES AND EQUITY | (229.2) | (272.2) | ||||
Condensed Consolidated Statements of Cash Flows [Abstract] | ||||||
Net cash flows from operating activities | (1.1) | (1.3) | ||||
Cash flows from investing activities: | ||||||
Capital investments | 0 | 0 | ||||
Other investing items, net | 0 | 0 | ||||
Net cash flows from investing activities | 0 | 0 | ||||
Cash flows from financing activities: | ||||||
Net borrowings (payments) under credit facility | 0 | |||||
Proceeds from issuance of long-term debt | 0 | |||||
Redemption of long-term debt | 0 | |||||
Debt issuance costs | 0 | |||||
Inter-company activity | 3.6 | 1.6 | ||||
SunCoke Middletown distributions to noncontrolling interest owners | 0 | 0 | ||||
Other financing items, net | (2.5) | (0.3) | ||||
Net cash flows from financing activities | 1.1 | 1.3 | ||||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | ||||
Cash and cash equivalents, beginning of period | 0 | 0 | ||||
Cash and cash equivalents, end of period | 0 | 0 | ||||
AK Steel [Member] | ||||||
Condensed Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ||||||
Net sales | 1,473.6 | 1,468.2 | ||||
Cost of products sold (exclusive of items shown separately below) | 1,286.5 | 1,351.3 | ||||
Selling and administrative expenses (exclusive of items shown separately below) | 72.3 | 64.5 | ||||
Depreciation | 47.2 | 46.4 | ||||
Pension and OPEB expense (income) | (16.2) | (11.9) | ||||
Total operating costs | 1,389.8 | 1,450.3 | ||||
Operating profit (loss) | 83.8 | 17.9 | ||||
Interest expense | 39 | 42.3 | ||||
Other income (expense) | (11.4) | (4.1) | ||||
Income (loss) before income taxes | 33.4 | (28.5) | ||||
Income tax expense (benefit) | (19.9) | (6.1) | ||||
Equity in net income (loss) of subsidiaries | 10.6 | 10.1 | ||||
Net income (loss) | 63.9 | (12.3) | ||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | ||||
Net income (loss) attributable to AK Steel Holding Corporation | 63.9 | (12.3) | ||||
Other comprehensive income (loss) | (22.7) | (1) | ||||
Comprehensive income (loss) attributable to AK Steel Holding Corporation | 41.2 | (13.3) | ||||
Current assets: | ||||||
Cash and cash equivalents | 161.1 | 27 | 161.1 | 147.9 | 85.9 | 27 |
Accounts receivable, net | 474 | 400.4 | ||||
Inventory, net | 1,028.7 | 1,038.1 | ||||
Other current assets | 103.6 | 91.5 | ||||
Total current assets | 1,767.4 | 1,677.9 | ||||
Property, plant and equipment | 5,872.6 | 5,857.9 | ||||
Accumulated depreciation | (4,412.8) | (4,365.8) | ||||
Property, plant and equipment, net | 1,459.8 | 1,492.1 | ||||
Investment in subsidiaries | 1,442.5 | 1,406.2 | ||||
Inter-company accounts | (4,126) | (4,041.9) | ||||
Other non-current assets | 130.9 | 126 | ||||
TOTAL ASSETS | 674.6 | 660.3 | ||||
Current liabilities: | ||||||
Accounts payable | 618.6 | 557.7 | ||||
Accrued liabilities | 157.8 | 213.7 | ||||
Current portion of long-term debt | 168.5 | |||||
Current portion of pension and other postretirement benefit obligations | 41 | 41 | ||||
Total current liabilities | 985.9 | 812.4 | ||||
Non-current liabilities: | ||||||
Long-term debt | 1,684.5 | 1,816.6 | ||||
Pension and other postretirement benefit obligations | 1,074.4 | 1,090.4 | ||||
Other non-current liabilities | 148.1 | 146.7 | ||||
TOTAL LIABILITIES | 3,892.9 | 3,866.1 | ||||
EXCHANGEABLE NOTES EXCHANGE FEATURE | 19.7 | 21.3 | ||||
Equity [Abstract] | ||||||
Total stockholders' equity (deficit) | (3,238) | (3,227.1) | ||||
Noncontrolling interests | 0 | 0 | ||||
TOTAL EQUITY | (3,238) | (3,227.1) | ||||
TOTAL LIABILITIES AND EQUITY | 674.6 | 660.3 | ||||
Condensed Consolidated Statements of Cash Flows [Abstract] | ||||||
Net cash flows from operating activities | 16 | 108.1 | ||||
Cash flows from investing activities: | ||||||
Capital investments | (30.6) | (27.2) | ||||
Other investing items, net | 1.4 | 0 | ||||
Net cash flows from investing activities | (29.2) | (27.2) | ||||
Cash flows from financing activities: | ||||||
Net borrowings (payments) under credit facility | (30) | |||||
Proceeds from issuance of long-term debt | 400 | |||||
Redemption of long-term debt | (367.5) | |||||
Debt issuance costs | (7.8) | |||||
Inter-company activity | 1.6 | 8 | ||||
SunCoke Middletown distributions to noncontrolling interest owners | 0 | 0 | ||||
Other financing items, net | 0.1 | 0 | ||||
Net cash flows from financing activities | 26.4 | (22) | ||||
Net increase (decrease) in cash and cash equivalents | 13.2 | 58.9 | ||||
Cash and cash equivalents, beginning of period | 147.9 | 27 | ||||
Cash and cash equivalents, end of period | 161.1 | 85.9 | ||||
Guarantor Subsidiaries [Member] | ||||||
Condensed Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ||||||
Net sales | 72.3 | 58.7 | ||||
Cost of products sold (exclusive of items shown separately below) | 51.9 | 39.8 | ||||
Selling and administrative expenses (exclusive of items shown separately below) | 3.2 | 2.6 | ||||
Depreciation | 2 | 1 | ||||
Pension and OPEB expense (income) | 0 | 0 | ||||
Total operating costs | 57.1 | 43.4 | ||||
Operating profit (loss) | 15.2 | 15.3 | ||||
Interest expense | 0 | 0 | ||||
Other income (expense) | 2.4 | 2 | ||||
Income (loss) before income taxes | 17.6 | 17.3 | ||||
Income tax expense (benefit) | 6.7 | 6.6 | ||||
Equity in net income (loss) of subsidiaries | 0 | 0 | ||||
Net income (loss) | 10.9 | 10.7 | ||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | ||||
Net income (loss) attributable to AK Steel Holding Corporation | 10.9 | 10.7 | ||||
Other comprehensive income (loss) | 0 | 0 | ||||
Comprehensive income (loss) attributable to AK Steel Holding Corporation | 10.9 | 10.7 | ||||
Current assets: | ||||||
Cash and cash equivalents | 4.4 | 0 | 2.6 | 4.4 | 0.1 | 0 |
Accounts receivable, net | 35.6 | 30.3 | ||||
Inventory, net | 49.1 | 45.3 | ||||
Other current assets | 1.2 | 0.2 | ||||
Total current assets | 88.5 | 80.2 | ||||
Property, plant and equipment | 177.2 | 175.9 | ||||
Accumulated depreciation | (89.3) | (87.2) | ||||
Property, plant and equipment, net | 87.9 | 88.7 | ||||
Investment in subsidiaries | 0 | 0 | ||||
Inter-company accounts | 1,489.6 | 1,464 | ||||
Other non-current assets | 33 | 33 | ||||
TOTAL ASSETS | 1,699 | 1,665.9 | ||||
Current liabilities: | ||||||
Accounts payable | 15.9 | 16.7 | ||||
Accrued liabilities | 5.9 | 7 | ||||
Current portion of long-term debt | 0 | |||||
Current portion of pension and other postretirement benefit obligations | 0 | 0 | ||||
Total current liabilities | 21.8 | 23.7 | ||||
Non-current liabilities: | ||||||
Long-term debt | 0 | 0 | ||||
Pension and other postretirement benefit obligations | 0 | 0 | ||||
Other non-current liabilities | 1.6 | 1.6 | ||||
TOTAL LIABILITIES | 23.4 | 25.3 | ||||
EXCHANGEABLE NOTES EXCHANGE FEATURE | 0 | 0 | ||||
Equity [Abstract] | ||||||
Total stockholders' equity (deficit) | 1,675.6 | 1,640.6 | ||||
Noncontrolling interests | 0 | 0 | ||||
TOTAL EQUITY | 1,675.6 | 1,640.6 | ||||
TOTAL LIABILITIES AND EQUITY | 1,699 | 1,665.9 | ||||
Condensed Consolidated Statements of Cash Flows [Abstract] | ||||||
Net cash flows from operating activities | 1.1 | 10.7 | ||||
Cash flows from investing activities: | ||||||
Capital investments | (1.4) | (0.7) | ||||
Other investing items, net | 0 | 0 | ||||
Net cash flows from investing activities | (1.4) | (0.7) | ||||
Cash flows from financing activities: | ||||||
Net borrowings (payments) under credit facility | 0 | |||||
Proceeds from issuance of long-term debt | 0 | |||||
Redemption of long-term debt | 0 | |||||
Debt issuance costs | 0 | |||||
Inter-company activity | (1.5) | (9.9) | ||||
SunCoke Middletown distributions to noncontrolling interest owners | 0 | 0 | ||||
Other financing items, net | 0 | 0 | ||||
Net cash flows from financing activities | (1.5) | (9.9) | ||||
Net increase (decrease) in cash and cash equivalents | (1.8) | 0.1 | ||||
Cash and cash equivalents, beginning of period | 4.4 | 0 | ||||
Cash and cash equivalents, end of period | 2.6 | 0.1 | ||||
Other Non-Guarantor Subsidiaries [Member] | ||||||
Condensed Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ||||||
Net sales | 91.4 | 118.1 | ||||
Cost of products sold (exclusive of items shown separately below) | 62.8 | 87.7 | ||||
Selling and administrative expenses (exclusive of items shown separately below) | 5.5 | 6.5 | ||||
Depreciation | 5.9 | 6.3 | ||||
Pension and OPEB expense (income) | 0 | 0 | ||||
Total operating costs | 74.2 | 100.5 | ||||
Operating profit (loss) | 17.2 | 17.6 | ||||
Interest expense | 0.4 | 0.5 | ||||
Other income (expense) | 1.2 | 1.4 | ||||
Income (loss) before income taxes | 18 | 18.5 | ||||
Income tax expense (benefit) | 0.7 | 0.2 | ||||
Equity in net income (loss) of subsidiaries | 0.1 | 0 | ||||
Net income (loss) | 17.4 | 18.3 | ||||
Less: Net income attributable to noncontrolling interests | 16.2 | 18 | ||||
Net income (loss) attributable to AK Steel Holding Corporation | 1.2 | 0.3 | ||||
Other comprehensive income (loss) | 0.3 | 1.5 | ||||
Comprehensive income (loss) attributable to AK Steel Holding Corporation | 1.5 | 1.8 | ||||
Current assets: | ||||||
Cash and cash equivalents | 22 | 29.6 | 22 | 20.9 | 27 | 29.6 |
Accounts receivable, net | 22.8 | 19.6 | ||||
Inventory, net | 41.7 | 42 | ||||
Other current assets | 2.9 | 2.9 | ||||
Total current assets | 89.4 | 85.4 | ||||
Property, plant and equipment | 535.6 | 535.2 | ||||
Accumulated depreciation | (107.3) | (101.6) | ||||
Property, plant and equipment, net | 428.3 | 433.6 | ||||
Investment in subsidiaries | 68.3 | 67.5 | ||||
Inter-company accounts | (452.7) | (458.4) | ||||
Other non-current assets | 40.8 | 38.9 | ||||
TOTAL ASSETS | 174.1 | 167 | ||||
Current liabilities: | ||||||
Accounts payable | 18 | 15 | ||||
Accrued liabilities | 12.9 | 13.4 | ||||
Current portion of long-term debt | 0 | |||||
Current portion of pension and other postretirement benefit obligations | 0.3 | 0.3 | ||||
Total current liabilities | 31.2 | 28.7 | ||||
Non-current liabilities: | ||||||
Long-term debt | 0 | 0 | ||||
Pension and other postretirement benefit obligations | 3.2 | 3.3 | ||||
Other non-current liabilities | 0.2 | 0.1 | ||||
TOTAL LIABILITIES | 34.6 | 32.1 | ||||
EXCHANGEABLE NOTES EXCHANGE FEATURE | 0 | 0 | ||||
Equity [Abstract] | ||||||
Total stockholders' equity (deficit) | (224.5) | (228) | ||||
Noncontrolling interests | 364 | 362.9 | ||||
TOTAL EQUITY | 139.5 | 134.9 | ||||
TOTAL LIABILITIES AND EQUITY | 174.1 | 167 | ||||
Condensed Consolidated Statements of Cash Flows [Abstract] | ||||||
Net cash flows from operating activities | 21.4 | 15.1 | ||||
Cash flows from investing activities: | ||||||
Capital investments | (0.5) | (0.9) | ||||
Other investing items, net | 0.1 | (0.1) | ||||
Net cash flows from investing activities | (0.4) | (1) | ||||
Cash flows from financing activities: | ||||||
Net borrowings (payments) under credit facility | 0 | |||||
Proceeds from issuance of long-term debt | 0 | |||||
Redemption of long-term debt | 0 | |||||
Debt issuance costs | 0 | |||||
Inter-company activity | (4.8) | 4.4 | ||||
SunCoke Middletown distributions to noncontrolling interest owners | (15.1) | (21.1) | ||||
Other financing items, net | 0 | 0 | ||||
Net cash flows from financing activities | (19.9) | (16.7) | ||||
Net increase (decrease) in cash and cash equivalents | 1.1 | (2.6) | ||||
Cash and cash equivalents, beginning of period | 20.9 | 29.6 | ||||
Cash and cash equivalents, end of period | 22 | 27 | ||||
Consolidation, Eliminations [Member] | ||||||
Condensed Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ||||||
Net sales | (103.9) | (126.2) | ||||
Cost of products sold (exclusive of items shown separately below) | (90.4) | (113.3) | ||||
Selling and administrative expenses (exclusive of items shown separately below) | (11.2) | (11.4) | ||||
Depreciation | 0 | 0 | ||||
Pension and OPEB expense (income) | 0 | 0 | ||||
Total operating costs | (101.6) | (124.7) | ||||
Operating profit (loss) | (2.3) | (1.5) | ||||
Interest expense | 0 | 0 | ||||
Other income (expense) | 0 | 0 | ||||
Income (loss) before income taxes | (2.3) | (1.5) | ||||
Income tax expense (benefit) | (0.9) | (0.6) | ||||
Equity in net income (loss) of subsidiaries | (74.6) | 1 | ||||
Net income (loss) | (76) | 0.1 | ||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | ||||
Net income (loss) attributable to AK Steel Holding Corporation | (76) | 0.1 | ||||
Other comprehensive income (loss) | 22.4 | (0.5) | ||||
Comprehensive income (loss) attributable to AK Steel Holding Corporation | (53.6) | (0.4) | ||||
Current assets: | ||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | $ 0 | $ 0 |
Accounts receivable, net | (7.9) | (8.3) | ||||
Inventory, net | (13.7) | (11.5) | ||||
Other current assets | 0 | 0 | ||||
Total current assets | (21.6) | (19.8) | ||||
Property, plant and equipment | 0 | 0 | ||||
Accumulated depreciation | 0 | 0 | ||||
Property, plant and equipment, net | 0 | 0 | ||||
Investment in subsidiaries | 1,727.2 | 1,753.4 | ||||
Inter-company accounts | 80.3 | 81.4 | ||||
Other non-current assets | 0 | 0 | ||||
TOTAL ASSETS | 1,785.9 | 1,815 | ||||
Current liabilities: | ||||||
Accounts payable | (1) | 0.5 | ||||
Accrued liabilities | 0 | 0 | ||||
Current portion of long-term debt | 0 | |||||
Current portion of pension and other postretirement benefit obligations | 0 | 0 | ||||
Total current liabilities | (1) | 0.5 | ||||
Non-current liabilities: | ||||||
Long-term debt | 0 | 0 | ||||
Pension and other postretirement benefit obligations | 0 | 0 | ||||
Other non-current liabilities | 0 | 0 | ||||
TOTAL LIABILITIES | (1) | 0.5 | ||||
EXCHANGEABLE NOTES EXCHANGE FEATURE | 0 | 0 | ||||
Equity [Abstract] | ||||||
Total stockholders' equity (deficit) | 1,786.9 | 1,814.5 | ||||
Noncontrolling interests | 0 | 0 | ||||
TOTAL EQUITY | 1,786.9 | 1,814.5 | ||||
TOTAL LIABILITIES AND EQUITY | $ 1,785.9 | $ 1,815 | ||||
Condensed Consolidated Statements of Cash Flows [Abstract] | ||||||
Net cash flows from operating activities | (1.1) | 4.1 | ||||
Cash flows from investing activities: | ||||||
Capital investments | 0 | 0 | ||||
Other investing items, net | 0 | 0 | ||||
Net cash flows from investing activities | 0 | 0 | ||||
Cash flows from financing activities: | ||||||
Net borrowings (payments) under credit facility | 0 | |||||
Proceeds from issuance of long-term debt | 0 | |||||
Redemption of long-term debt | 0 | |||||
Debt issuance costs | 0 | |||||
Inter-company activity | 1.1 | (4.1) | ||||
SunCoke Middletown distributions to noncontrolling interest owners | 0 | 0 | ||||
Other financing items, net | 0 | 0 | ||||
Net cash flows from financing activities | 1.1 | (4.1) | ||||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | ||||
Cash and cash equivalents, beginning of period | 0 | 0 | ||||
Cash and cash equivalents, end of period | 0 | $ 0 | ||||
Senior Secured Notes Due July 2023 [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | 7.50% | ||||
Senior Notes Due May 2020 [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.625% | 7.625% | ||||
Senior Notes Due October 2021 [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.625% | 7.625% | ||||
Senior Notes Due April 2022 [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.375% | 8.375% | ||||
Senior Notes Due March 2027 [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | |||||
Cash flows from financing activities: | ||||||
Debt issuance costs | $ (7.5) | |||||
Exchangeable Senior Notes Due November 2019 [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | ||||
Non-current liabilities: | ||||||
EXCHANGEABLE NOTES EXCHANGE FEATURE | $ 19.7 | $ 21.3 |