Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 25, 2018 | |
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, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 315,305,290 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net sales | $ 1,658.9 | $ 1,533.4 |
Cost of products sold (exclusive of item shown separately below) | 1,463.7 | 1,276.9 |
Selling and administrative expenses (exclusive of item shown separately below) | 76.7 | 71.7 |
Depreciation | 54.9 | 55.1 |
Total operating costs | 1,595.3 | 1,403.7 |
Operating profit | 63.6 | 129.7 |
Interest expense | 37.6 | 39.4 |
Pension and OPEB (income) expense | (10) | (18.1) |
Other (income) expense | (3.9) | 7.8 |
Income before income taxes | 39.9 | 100.6 |
Income tax expense (benefit) | (4.9) | 0 |
Net income | 44.8 | 100.6 |
Less: Net income attributable to noncontrolling interests | 16.1 | 16.2 |
Net income attributable to AK Steel Holding Corporation | $ 28.7 | $ 84.4 |
Net income per share attributable to AK Steel Holding Corporation common stockholders: | ||
Basic | $ 0.09 | $ 0.27 |
Diluted | $ 0.09 | $ 0.26 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net income | $ 44.8 | $ 100.6 |
Other comprehensive income (loss), before tax: | ||
Foreign currency translation gain (loss) | 1.1 | 0.3 |
Cash flow hedges: | ||
Gains (losses) arising in period | (1.4) | (8) |
Reclassification of losses (gains) to net income (loss) | (7.6) | (0.6) |
Pension and OPEB plans: | ||
Reclassification of prior service cost (credits) to net income (loss) | (2.4) | (13.4) |
Reclassification of losses (gains) to net income (loss) | 3.6 | 1.6 |
Other comprehensive income (loss), before tax | (6.7) | (20.1) |
Income tax benefit related to items of comprehensive income (loss) | 0 | 0 |
Other comprehensive income (loss) | (6.7) | (20.1) |
Comprehensive income | 38.1 | 80.5 |
Less: Comprehensive income attributable to noncontrolling interests | 16.1 | 16.2 |
Comprehensive income attributable to AK Steel Holding Corporation | $ 22 | $ 64.3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 44.5 | $ 38 |
Accounts receivable, net | 619.8 | 517.8 |
Inventory | 1,334 | 1,385 |
Other current assets | 96.4 | 130.3 |
Total current assets | 2,094.7 | 2,071.1 |
Property, plant and equipment | 6,850.7 | 6,831.8 |
Accumulated depreciation | (4,899.7) | (4,845.6) |
Property, plant and equipment, net | 1,951 | 1,986.2 |
Other non-current assets | 412 | 417.5 |
TOTAL ASSETS | 4,457.7 | 4,474.8 |
Current liabilities: | ||
Accounts payable | 728.6 | 690.4 |
Accrued liabilities | 234.1 | 270.5 |
Current portion of pension and other postretirement benefit obligations | 39.7 | 40.1 |
Total current liabilities | 1,002.4 | 1,001 |
Non-current liabilities: | ||
Long-term debt | 2,103.3 | 2,110.1 |
Pension and other postretirement benefit obligations | 869.2 | 894.2 |
Other non-current liabilities | 150.9 | 168.9 |
TOTAL LIABILITIES | 4,125.8 | 4,174.2 |
Equity: | ||
Common stock, authorized 450,000,000 shares of $0.01 par value each; issued 316,330,695 and 315,782,764 shares in 2018 and 2017; outstanding 315,279,677 and 314,884,569 shares in 2018 and 2017 | 3.2 | 3.2 |
Additional paid-in capital | 2,889.3 | 2,884.8 |
Treasury stock, common shares at cost, 1,051,018 and 898,195 shares in 2018 and 2017 | (6.4) | (5.4) |
Accumulated deficit | (2,849.1) | (2,877) |
Accumulated other comprehensive loss | (56.1) | (50.2) |
Total stockholders’ equity (deficit) | (19.1) | (44.6) |
Noncontrolling interests | 351 | 345.2 |
TOTAL EQUITY | 331.9 | 300.6 |
TOTAL LIABILITIES AND EQUITY | 4,457.7 | 4,474.8 |
SunCoke Middletown [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Current assets: | ||
Cash and cash equivalents | 10.6 | 0.1 |
Inventory | 16.4 | 18.4 |
Property, plant and equipment | 426 | 425.9 |
Accumulated depreciation | (92.4) | (88.6) |
Current liabilities: | ||
Accounts payable | 12.8 | 11.3 |
Other assets (liabilities), net | 1.7 | (1) |
Equity: | ||
Noncontrolling interests | 349.5 | 343.5 |
Other Variable Interest Entities [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Current assets: | ||
Cash and cash equivalents | 0.4 | 0.7 |
Property, plant and equipment | 11.7 | 11.7 |
Accumulated depreciation | (9.7) | (9.6) |
Current liabilities: | ||
Other assets (liabilities), net | 0.8 | 0.8 |
Equity: | ||
Noncontrolling interests | $ 1.5 | $ 1.7 |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) Parentheticals - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
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 | 316,330,695 | 315,782,764 |
Common Stock, Shares Outstanding | 315,279,677 | 314,884,569 |
Treasury Stock, Shares | 1,051,018 | 898,195 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 44.8 | $ 100.6 |
Depreciation | 54.9 | 55.1 |
Amortization | 10 | 7.2 |
Deferred income taxes | (6.8) | 1.5 |
Pension and OPEB expense (income) | (8.1) | (16.2) |
Contributions to pension trust | (6) | 0 |
Other postretirement benefit payments | (10.1) | (11.4) |
Changes in working capital | 0.2 | (92.5) |
Other operating items, net | (13.3) | (8) |
Net cash flows from operating activities | 65.6 | 36.3 |
Cash flows from investing activities: | ||
Capital investments | (37.9) | (32.5) |
Other investing items, net | 0 | 1.5 |
Net cash flows from investing activities | (37.9) | (31) |
Cash flows from financing activities: | ||
Net borrowings (payments) under credit facility | (10) | 0 |
Proceeds from issuance of long-term debt | 0 | 400 |
Redemption of long-term debt | 0 | (367.5) |
Debt issuance costs | 0 | (7.8) |
SunCoke Middletown distributions to noncontrolling interest owners | (10.3) | (15.1) |
Other financing items, net | (0.9) | (2.4) |
Net cash flows from financing activities | (21.2) | 7.2 |
Net increase (decrease) in cash and cash equivalents | 6.5 | 12.5 |
Cash and cash equivalents, beginning of period | 38 | 173.2 |
Cash and cash equivalents, end of period | 44.5 | 185.7 |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | ||
Cash flows from operating activities: | ||
Depreciation | 51.1 | 51 |
Variable Interest Entity, Primary Beneficiary [Member] | SunCoke Middletown [Member] | ||
Cash flows from operating activities: | ||
Depreciation | 3.8 | 4.1 |
Net cash flows from operating activities | 21.5 | 20.3 |
Cash flows from financing activities: | ||
SunCoke Middletown distributions to noncontrolling interest owners | (10.3) | $ (15.1) |
Cash and cash equivalents, beginning of period | 0.1 | |
Cash and cash equivalents, end of period | $ 10.6 |
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] |
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 0 | ||||||
Balance at Dec. 31, 2016 | $ 149.8 | $ 3.1 | $ 2,855.4 | $ (2.4) | $ (2,980.5) | (88.7) | $ 362.9 |
Net income | 100.6 | 84.4 | 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) | (20.1) | (20.1) | |||||
Net distributions to noncontrolling interests | (15.1) | (15.1) | |||||
Balance at Mar. 31, 2017 | 218.4 | 3.2 | 2,861.4 | (5.3) | (2,896.1) | (108.8) | 364 |
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | (0.8) | 0.8 | ||||
Balance at Dec. 31, 2017 | 300.6 | 3.2 | 2,884.8 | (5.4) | (2,877) | (50.2) | 345.2 |
Net income | 44.8 | 28.7 | 16.1 | ||||
Share-based compensation | 4.5 | 4.5 | |||||
Purchase of treasury stock | (1) | (1) | |||||
Change in accumulated other comprehensive income (loss) | (6.7) | (6.7) | |||||
Net distributions to noncontrolling interests | (10.3) | (10.3) | |||||
Balance at Mar. 31, 2018 | $ 331.9 | $ 3.2 | $ 2,889.3 | $ (6.4) | $ (2,849.1) | $ (56.1) | $ 351 |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Significant Accounting Policies | Summary of Significant Accounting Policies 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, 2018 and December 31, 2017 , our results of operations for the three months ended March 31, 2018 and 2017 , and our cash flows for the three months ended March 31, 2018 and 2017 . Our results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results we expect for the full year ending December 31, 2018 . These condensed consolidated financial statements should be read along with our audited consolidated financial statements for the year ended December 31, 2017 , included in our Annual Report on Form 10-K for the year ended December 31, 2017 . Revenue Recognition : We generate our revenue through product sales, and shipping terms generally indicate when we have fulfilled our performance obligations and passed control of products to our customer. Our revenue transactions consist of a single performance obligation to transfer promised goods. We have contracts with a substantial portion of our customers. These contracts usually define the mechanism for determining the sales price, but the contacts do not impose a specific quantity on either party. Quantities to be delivered to the customer are determined at a point near the date of delivery through purchase orders or other written instructions we receive from the customer. Spot market sales are made through purchase orders or other written instructions. We recognize revenue when we have fulfilled a performance obligation, which is typically when we have shipped products at the customer’s instructions. For sales with shipping terms that transfer title and risk of loss at the destination point, we recognize revenue when the customer receives the goods and our performance obligation is complete. For sales with shipping terms that transfer title and risk of loss at the shipping point with us bearing responsibility for freight costs to the destination, we determine that we have fulfilled a single performance obligation and recognize revenue when we ship the goods. For our tooling solutions, we record progress payments that we receive from a customer as accrued liabilities until we recognize the revenue when the customer provides written acceptance that our performance obligation has been fulfilled. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring product. We reduce the amount of revenue recognized for estimated returns and other customer credits, such as discounts and volume rebates, based on the expected value to be realized. Payment terms are consistent with terms standard to the markets we serve. We maintain an allowance for doubtful accounts for the loss that would be incurred if a customer is unable to pay amounts due. We initially estimate the allowance required at the time of revenue recognition based on historical experience and make changes to the allowance based on various factors, including changes in the customer’s financial condition or payment patterns. Sales taxes collected from customers are excluded from revenues. Inventory : Inventories are valued at the lower of cost or net realizable value. We measure the cost of inventories using the average cost method. See Note 3 for information on the change to the average cost method effective January 1, 2018. Pension and Other Postretirement Benefits : On January 1, 2018, we adopted Accounting Standards Update No. 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. Under this standard, the service cost component of periodic pension and other postretirement benefit expense is included in cost of products sold and selling and administrative expenses, consistent with our treatment of other employee compensation costs. The remainder of periodic pension and other postretirement benefit income of $10.0 and $18.1 |
Acquisition of Precision Partne
Acquisition of Precision Partners (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Acquisition of Precision Partners On August 4, 2017 , we acquired 100% of the equity of PPHC Holdings, LLC (“Precision Partners”), which provides advanced-engineered solutions, tool design and build, hot- and cold-stamped steel components and complex assemblies for the automotive market. Precision Partners is headquartered in Ontario, Canada and has approximately 1,000 employees, including approximately 300 engineers and skilled tool makers, across eight |
Supplementary Financial Stateme
Supplementary Financial Statement Information (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Supplementary Financial Statement Information | Supplementary Financial Statement Information Revenue Net sales by market are presented below: Three Months Ended March 31, 2018 2017 Automotive $ 1,119.1 $ 1,029.5 Infrastructure and Manufacturing 241.3 229.6 Distributors and Converters 298.5 274.3 Total $ 1,658.9 $ 1,533.4 Net sales by product line are presented below: Three Months Ended March 31, 2018 2017 Carbon steel $ 1,068.6 $ 1,029.2 Stainless and electrical steel 426.1 433.9 Tubular products, components and other 164.2 70.3 Total $ 1,658.9 $ 1,533.4 We sell domestically to customers located primarily in the Midwestern and Eastern United States and to foreign customers, primarily in Canada, Mexico and Western Europe. Net sales to customers located outside the United States totaled $167.8 and $155.1 for the three months ended March 31, 2018 and 2017 . Inventory Inventories as of March 31, 2018 and December 31, 2017 , are presented below: March 31, December 31, Finished and semi-finished $ 972.5 $ 996.8 Raw materials 361.5 388.2 Inventory $ 1,334.0 $ 1,385.0 In the first quarter of 2018, we changed our accounting method for valuing certain inventories from the last-in, first-out (LIFO) method to the average cost method. This method values inventory using average costs for materials and most recent production costs for labor and overhead. We believe that using the average cost method is preferable since it improves comparability with our peers, more closely tracks the physical flow of our inventory, better matches revenue with expenses and aligns with how we internally manage our business. The effects of the change in accounting principle from LIFO to average cost have been retrospectively applied to all periods presented. As a result of the retrospective application of the change in accounting principle, certain financial statement line items in our condensed consolidated balance sheet as of December 31, 2017 and our condensed consolidated statements of operations and comprehensive income (loss) and cash flows for the three months ended March 31, 2017 were adjusted as follows: As Originally Reported Effect of Change As Adjusted Condensed consolidated statement of operations for the three months ended March 31, 2017: Cost of products sold (a) $ 1,312.2 $ (35.3 ) $ 1,276.9 Income tax expense (benefit) (13.4 ) 13.4 — Net income 78.7 21.9 100.6 Net income attributable to AK Steel Holding Corporation 62.5 21.9 84.4 Net income per share attributable to AK Steel Holding Corporation common stockholders: Basic $ 0.20 $ 0.07 $ 0.27 Diluted 0.19 0.07 0.26 Condensed consolidated statement of comprehensive income for the three months ended March 31, 2017: Cash flow hedges—Reclassification of losses (gains) to net income (loss) $ (3.2 ) $ 2.6 $ (0.6 ) Comprehensive income 56.0 24.5 80.5 Comprehensive income attributable to AK Steel Holding Corporation 39.8 24.5 64.3 Condensed consolidated balance sheet as of December 31, 2017: Inventory $ 1,147.8 $ 237.2 $ 1,385.0 Other non-current assets 476.0 (58.5 ) 417.5 Other non-current liabilities 161.6 7.3 168.9 Accumulated deficit (3,058.6 ) 181.6 (2,877.0 ) Accumulated other comprehensive loss (40.0 ) (10.2 ) (50.2 ) Condensed consolidated statement of cash flows for the three months ended March 31, 2017: Net income $ 78.7 $ 21.9 $ 100.6 Deferred income taxes (11.9 ) 13.4 1.5 Changes in working capital (54.6 ) (37.9 ) (92.5 ) Other operating items, net (10.6 ) 2.6 (8.0 ) (a) Cost of products sold as originally reported reflects the change in presentation of pension and OPEB (income) expense further described in Note 1 . The following table shows the effects of the change in accounting principle from LIFO to average cost as of March 31, 2018 and for the three months ended March 31, 2018 : As Computed under LIFO As Reported under Average Cost Effect of Change Condensed consolidated statement of operations for the three months ended March 31, 2018: Cost of products sold $ 1,478.9 $ 1,463.7 $ (15.2 ) Income tax expense (benefit) (8.2 ) (4.9 ) 3.3 Net income 32.9 44.8 11.9 Net income attributable to AK Steel Holding Corporation 16.8 28.7 11.9 Net income per share attributable to AK Steel Holding Corporation common stockholders: Basic $ 0.05 $ 0.09 $ 0.04 Diluted 0.05 0.09 0.04 Condensed consolidated statement of comprehensive income for the three months ended March 31, 2018: Cash flow hedges—Reclassification of losses (gains) to net income (loss) $ (5.9 ) $ (7.6 ) $ (1.7 ) Comprehensive income 27.9 38.1 10.2 Comprehensive income attributable to AK Steel Holding Corporation 11.8 22.0 10.2 Condensed consolidated balance sheet as of March 31, 2018: Inventory $ 1,083.3 $ 1,334.0 $ 250.7 Other non-current assets 479.1 412.0 (67.1 ) Other non-current liabilities 148.9 150.9 2.0 Accumulated deficit (3,042.6 ) (2,849.1 ) 193.5 Accumulated other comprehensive loss (44.2 ) (56.1 ) (11.9 ) Condensed consolidated statement of cash flows for the three months ended March 31, 2018: Net income $ 32.9 $ 44.8 $ 11.9 Deferred income taxes (10.1 ) (6.8 ) 3.3 Changes in working capital 13.7 0.2 (13.5 ) Other operating items, net (11.6 ) (13.3 ) (1.7 ) Other Non-Current Assets The change in goodwill for the three months ended March 31, 2018 , was as follows. 2018 Balance at December 31, 2017 $ 253.8 Adjustment to acquisition purchase price 1.2 Balance at March 31, 2018 $ 255.0 Intangible assets at March 31, 2018 , consist of: Gross Amount Accumulated Amortization Net Amount Customer relationships $ 36.6 $ (3.5 ) $ 33.1 Technology 19.3 (2.1 ) 17.2 Other 1.0 (0.6 ) 0.4 Intangible assets $ 56.9 $ (6.2 ) $ 50.7 Intangible assets at December 31, 2017 , consist of: Gross Amount Accumulated Amortization Net Amount Customer relationships $ 36.6 $ (2.2 ) $ 34.4 Technology 19.3 (1.4 ) 17.9 Other 1.0 (0.4 ) 0.6 Intangible assets $ 56.9 $ (4.0 ) $ 52.9 Amortization expense related to intangible assets was $2.4 for the three months ended March 31, 2018 . Investments in Affiliates We have investments in several businesses accounted for using the equity method of accounting. Cost of products sold includes $1.3 and $3.4 for the three months ended March 31, 2018 and 2017 , for our share of income of equity investees. Summarized financial statement data for all investees is presented below. Three Months Ended March 31, 2018 2017 Revenue $ 74.8 $ 72.5 Gross profit 21.1 25.5 Net income 4.2 8.9 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 on-going costs of $5.4 and $5.6 for the three months ended March 31, 2018 and 2017 , for maintenance of the equipment, utilities and supplier obligations related to the Ashland Works Hot End. We continue to engage in regular reviews of the potential viability of the Ashland Works Hot End, including an assessment of the most significant risks and benefits of a permanent idling of those idled operations. As part of these reviews, we take into consideration, among other items, our strategic focus on reducing participation in commodity markets to position the company for sustainable profitability and whether we anticipate that future market conditions will enable production from the Ashland Works Hot End to generate sustainable economic returns through steel market cycles. The Ashland Works Hot End remains on temporary idle based on our assessment of forecasted supply and demand characteristics of the markets that we |
Income Taxes (Notes)
Income Taxes (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income taxes recorded for the periods ended March 31, 2018 and 2017 , 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. During the quarter ended March 31, 2018, we reduced our valuation allowance and recorded an income tax benefit of $5.3 as a result of changes to the tax net operating carryover rules included in the Tax Cuts and Jobs Act of 2017 that allow us to use certain indefinite-lived deferred tax liabilities as a source of future income to realize deferred tax assets. We have not completed our determination of the accounting implications of the Tax Cuts and Jobs Act of 2017 on our tax balances. However, we have reasonably estimated the provisional effects of the act in these condensed consolidated financial statements. |
Long-term Debt and Other Financ
Long-term Debt and Other Financing (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt and Other Financing | Long-term Debt and Other Financing Debt balances at March 31, 2018 and December 31, 2017 , are presented below: March 31, December 31, Credit Facility $ 440.0 $ 450.0 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 October 2021 406.2 406.2 6.375% Senior Notes due October 2025 (effective rate of 7.1%) 280.0 280.0 7.00% Senior Notes due March 2027 400.0 400.0 Industrial Revenue Bonds due 2020 through 2028 99.3 99.3 Unamortized debt discount and issuance costs (52.2 ) (55.4 ) Total long-term debt $ 2,103.3 $ 2,110.1 During the three months ended March 31, 2018 , we were in compliance with all the terms and conditions of our debt agreements. In the three months ended March 31, 2017, we recognized other expense of $9.7 for expenses related to the repurchase of senior unsecured notes. Credit Facility We have a $1,350.0 revolving credit facility (the “Credit Facility”), which expires in September 2022 and is guaranteed by AK Holding and by AK Tube LLC (“AK Tube”), AK Steel Properties, Inc. and Mountain State Carbon LLC, three 100%-owned subsidiaries of AK Steel (referred to together as the “Subsidiary Guarantors”). The Credit Facility contains customary restrictions, including limitations on, among other things, distributions and dividends, acquisitions and investments, dispositions, 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 $135.0 . The Credit Facility’s current availability significantly exceeds $135.0 . Availability is calculated as the lesser of the Credit Facility commitments or eligible collateral after advance rates, less outstanding revolver borrowings and letters of credit. We do not expect any of these restrictions to affect or limit our ability to conduct business in the ordinary course. 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. As of March 31, 2018 , we had outstanding borrowings of $440.0 under the Credit Facility. At March 31, 2018 , our eligible collateral, after application of applicable advance rates, was $1,331.3 . Availability as of March 31, 2018 , was $819.8 after reductions of $71.5 |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits, Description [Abstract] | |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits Net periodic benefit (income) expense for pension and other postretirement benefits was as follows: Three Months Ended March 31, 2018 2017 Pension Benefits Service cost $ 0.8 $ 0.7 Interest cost 23.7 27.0 Expected return on assets (38.8 ) (37.6 ) Amortization of prior service cost 1.0 1.2 Amortization of loss 3.9 2.7 Net periodic benefit (income) expense $ (9.4 ) $ (6.0 ) Other Postretirement Benefits Service cost $ 1.1 $ 1.2 Interest cost 3.9 4.3 Amortization of prior service cost (credit) (3.4 ) (14.6 ) Amortization of (gain) loss (0.3 ) (1.1 ) Net periodic benefit (income) expense $ 1.3 $ (10.2 ) We are required to contribute $49.9 to the master pension trust during 2018 , of which $6.0 was contributed in the first quarter of 2018 and another $9.2 was contributed in April 2018. Based on current actuarial assumptions, we estimate that our required pension contributions will be approximately $35.0 and $10.0 |
Environmental and Legal Conting
Environmental and Legal Contingencies (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
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 $ 8.2 $ 8.5 Other non-current liabilities 31.0 35.4 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. To the extent that 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 noted, on April 29, 2002, we entered a mutually agreed-upon administrative order on consent with the EPA pursuant to Section 122 of CERCLA to perform a Remedial Investigation/Feasibility Study (“RI/FS”) of the Hamilton Plant site located in New Miami, Ohio. The plant ceased operations in 1990 and all of its former structures have been demolished. 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 how long it will take to complete this site investigation. We currently have accrued $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. 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 $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 $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 2019, 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 $13.6 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 we may incur, if any, or when we may 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 are ongoing. We cannot reliably estimate 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, 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. We subsequently agreed to proceed with a voluntary corrective measures study and have accrued $0.1 for the study. Until it 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. 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, 2018 , is presented below: Asbestos Cases Pending at March 31, 2018 Cases with specific dollar claims for damages: Claims up to $0.2 137 Claims above $0.2 to $5.0 4 Claims above $5.0 to $20.0 3 Total claims with specific dollar claims for damages (a) 144 Cases without a specific dollar claim for damages 193 Total asbestos cases pending 337 (a) Involve a total of 2,246 plaintiffs and 17,826 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, 2018 and 2017 is presented below: Three Months Ended March 31, 2018 2017 New Claims Filed 12 18 Pending Claims Disposed Of 11 11 Total Amount Paid in Settlements $ 0.3 $ 0.1 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 and the defendants filed an opposition to that motion. On July 13, 2017, the Court denied the indirect plaintiffs’ motion for reconsideration. On September 15, 2017 the indirect plaintiffs filed a notice of appeal with the Seventh Circuit Court of Appeals. 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. RE044940 (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. On May 16, 2017, the Federal Circuit Court of Appeals affirmed the district court’s judgment of invalidity and non-infringement of the reissued Patent. On June 14, 2017, ArcelorMittal filed a petition to the Federal Circuit for rehearing en banc of the May 16, 2017 decision. On August 14, 2017, the Federal Court of Appeals denied ArcelorMittal’s petition for rehearing en banc. 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. The briefing of that appeal is completed and the parties are awaiting a decision from the court. 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 the 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. Other Contingencies In addition to the matters discussed above, there are various pending and potential claims against us and our subsidiaries involving product liability, commercial, employee benefits and other matters arising in the ordinary course of business. |
Share-based Compensation (Notes
Share-based Compensation (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
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 $9.4 for 2018 . The first quarter information is presented below: Three Months Ended March 31, Share-based Compensation Expense 2018 2017 Stock options $ 1.7 $ 1.5 Restricted stock 1.9 1.9 Restricted stock units issued to Directors 0.3 0.4 Performance shares 0.5 0.4 Equity-based long-term performance plan 0.1 — Total share-based compensation expense $ 4.5 $ 4.2 We granted stock options on 842,000 shares during the three months ended March 31, 2018 , with a weighted-average fair value of $3.51 per share of stock option. Options on 4,100 shares were exercised during the three months ended March 31, 2018 . We granted restricted stock awards of 521,100 shares during the three months ended March 31, 2018 , at a weighted-average fair value of $6.56 per share. The total intrinsic value of restricted stock awards that vested (i.e., restrictions lapsed) during the three months ended March 31, 2018 was $3.1 . We granted performance share awards of 366,500 shares during the three months ended March 31, 2018 , with a weighted-average fair value of $8.05 per share. During the first quarter of 2018, in order to further align Management and stockholder interests, the Board of Directors changed how incentive compensation earned by executive officers under the long-term performance plan is paid so that 30% of the compensation earned will now be denominated in stock, instead of all being settled in cash as under prior long-term awards. As a result, starting with the three-year performance period beginning in 2018, the equity-based portion of the long-term performance plan is treated as share-based compensation with a performance condition. |
Comprehensive Income (Loss) (No
Comprehensive Income (Loss) (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 2017 Foreign currency translation Balance at beginning of period $ 1.1 $ (3.6 ) Other comprehensive income (loss)—foreign currency translation gain (loss) 1.1 0.3 Balance at end of period $ 2.2 $ (3.3 ) Cash flow hedges Balance at beginning of period $ 22.3 $ 39.9 Cumulative effect of adopting new hedging standard 0.8 — Other comprehensive income (loss): Gains (losses) arising in period (1.4 ) (8.0 ) Income tax expense (benefit) (b) — — Gains (losses) arising in period, net of tax (1.4 ) (8.0 ) Reclassification of losses (gains) to net income: Recorded in cost of products sold (7.6 ) (0.6 ) Income tax (expense) benefit (b) — — Net amount of reclassification of losses (gains) to net income, net of tax (7.6 ) (0.6 ) Total other comprehensive income (loss), net of tax (9.0 ) (8.6 ) Balance at end of period $ 14.1 $ 31.3 Pension and OPEB plans Balance at beginning of period $ (73.6 ) $ (125.0 ) Reclassification to net income: Prior service costs (credits) (a) (2.4 ) (13.4 ) Actuarial (gains) losses (a) 3.6 1.6 Subtotal 1.2 (11.8 ) Income tax (expense) benefit (b) — — Amount of reclassification to net income, net of tax 1.2 (11.8 ) Total other comprehensive income (loss), net of tax 1.2 (11.8 ) Balance at end of period $ (72.4 ) $ (136.8 ) (a) Included in pension and OPEB (income) expense (b) |
Earnings Per Share (Notes)
Earnings Per Share (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 2017 Net income (loss) attributable to AK Steel Holding Corporation $ 28.7 $ 84.4 Less: distributed earnings to common stockholders and holders of certain stock compensation awards — — Undistributed earnings $ 28.7 $ 84.4 Common stockholders earnings—basic and diluted: Distributed earnings to common stockholders $ — $ — Undistributed earnings to common stockholders 28.6 84.3 Common stockholders earnings—basic and diluted $ 28.6 $ 84.3 Common shares outstanding (weighted-average shares in millions): Common shares outstanding for basic earnings per share 314.7 314.1 Effect of exchangeable debt 0.5 10.3 Effect of dilutive stock-based compensation 0.8 1.2 Common shares outstanding for diluted earnings per share 316.0 325.6 Basic earnings per share: Distributed earnings $ — $ — Undistributed earnings 0.09 0.27 Basic earnings per share $ 0.09 $ 0.27 Diluted earnings per share: Distributed earnings $ — $ — Undistributed earnings 0.09 0.26 Diluted earnings per share $ 0.09 $ 0.26 Potentially issuable common shares (in millions) excluded from earnings per share calculation due to anti-dilutive effect 2.2 1.1 |
Variable Interest Entities (Not
Variable Interest Entities (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
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 consolidated 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 $16.2 for the three months ended March 31, 2018 and 2017 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 it also does so for third parties. VAA is a consolidated 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, 2018 | |
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, 2018 , a spread over benchmark rates of less than 1% was used for derivatives valued as assets and a spread over benchmark rates of less than 2% was used 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, 2018 December 31, 2017 Level 1 Level 2 Total Level 1 Level 2 Total Assets measured at fair value Cash and cash equivalents $ 44.5 $ — $ 44.5 $ 38.0 $ — $ 38.0 Other current assets: Foreign exchange contracts — 0.1 0.1 — 0.2 0.2 Commodity hedge contracts — 20.1 20.1 — 35.2 35.2 Other non-current assets: Foreign exchange contracts — 0.9 0.9 — 1.7 1.7 Commodity hedge contracts — 4.1 4.1 — 10.6 10.6 Assets measured at fair value $ 44.5 $ 25.2 $ 69.7 $ 38.0 $ 47.7 $ 85.7 Liabilities measured at fair value Accrued liabilities: Foreign exchange contracts $ — $ (0.9 ) $ (0.9 ) $ — $ (0.3 ) $ (0.3 ) Commodity hedge contracts — (2.8 ) (2.8 ) — (4.9 ) (4.9 ) Other non-current liabilities: Foreign exchange contracts — (0.3 ) (0.3 ) — — — Commodity hedge contracts — (1.4 ) (1.4 ) — (0.5 ) (0.5 ) Liabilities measured at fair value $ — $ (5.4 ) $ (5.4 ) $ — $ (5.7 ) $ (5.7 ) Liabilities measured at other than fair value Long-term debt, including current portions: Fair value $ — $ (2,199.3 ) $ (2,199.3 ) $ — $ (2,273.4 ) $ (2,273.4 ) Carrying amount — (2,103.3 ) (2,103.3 ) — (2,110.1 ) (2,110.1 ) The carrying amounts of our other financial instruments do not differ materially from their estimated fair values at March 31, 2018 and December 31, 2017 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Exchange rate fluctuations affect a portion of revenues and operating costs that are denominated in foreign currencies, and we use forward currency and currency option contracts to reduce our exposure to certain of these currency price fluctuations. Contracts to sell euros have not been designated as cash flow hedges for accounting purposes, and gains or losses are reported in earnings immediately in other (income) expense. Contracts to purchase Canadian dollars are designated as cash flow hedges for accounting purposes, and we record the gains and losses for the derivatives and premiums paid for option contracts in accumulated other comprehensive income (loss) until we reclassify them into cost of products sold when we recognize the associated underlying operating costs. We are exposed to fluctuations in market prices of raw materials and energy sources. We may use cash-settled commodity price swaps and options 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 electricity, iron ore, natural gas, nickel and zinc 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 gains and losses and premiums paid for option contracts 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 when we recognize earnings for the associated underlying transaction. We record all gains or losses from commodity derivatives for which hedge accounting treatment has not been elected to earnings immediately in cost of products sold. We have provided no collateral to counterparties under collateral funding arrangements as of March 31, 2018 . Outstanding derivative contracts and the period over which we are hedging our exposure to the volatility in future cash flows are presented below: Derivative Contracts Settlement Dates March 31, December 31, Commodity contracts: Nickel (in lbs) — 500,000 Natural gas (in MMBTUs) April 2018 to March 2020 37,843,000 41,338,000 Zinc (in lbs) April 2018 to December 2019 51,300,000 50,350,000 Iron ore (in metric tons) April 2018 to December 2019 2,065,000 2,340,000 Electricity (in MWHs) April 2018 to December 2019 1,308,000 1,553,000 Foreign exchange contracts: Euros (in millions) April 2018 to December 2018 € 18.0 € 26.0 Canadian dollars (in millions) April 2018 to December 2021 C$ 147.9 C$ 148.1 The fair value of derivative instruments in the condensed consolidated balance sheets is presented below: Asset (liability) March 31, December 31, Derivatives designated as cash flow hedges: Other current assets: Foreign exchange contracts $ 0.1 $ 0.2 Commodity contracts 6.4 9.0 Other non-current assets: Foreign exchange contracts 0.9 1.7 Commodity contracts 0.7 2.3 Accrued liabilities: Foreign exchange contracts (0.5 ) (0.2 ) Commodity contracts (2.8 ) (4.6 ) Other non-current liabilities: Foreign exchange contracts (0.3 ) — Commodity contracts (1.4 ) (0.5 ) Derivatives not designated as cash flow hedges: Other current assets—commodity contracts 13.7 26.2 Other non-current assets—commodity contracts 3.4 8.3 Accrued liabilities: Foreign exchange contracts (0.4 ) (0.1 ) Commodity contracts — (0.3 ) Gains (losses) on derivative instruments included in the condensed consolidated statements of operations and comprehensive income (loss) are presented below: Three Months Ended March 31, Gain (loss) 2018 2017 Derivatives designated as cash flow hedges: Commodity contracts: Recognized in accumulated other comprehensive income that were included in the assessment of effectiveness $ 0.3 $ (8.0 ) Reclassified from accumulated other comprehensive income into cost of products sold 7.6 0.6 Foreign exchange contracts: Recognized in accumulated other comprehensive income that were included in the assessment of effectiveness (1.7 ) — Derivatives not designated as cash flow hedges: Commodity contracts—recognized in cost of products sold (8.7 ) 15.3 Foreign exchange contracts—recognized in other income (expense) (0.3 ) (0.1 ) We routinely use iron ore derivatives to reduce the volatility of the cost of our iron ore purchases. These derivatives do not qualify for hedge accounting treatment. Therefore, adjustments to mark these derivatives to fair value each period are recognized immediately in our financial results versus being recognized in the period that iron ore purchases affect earnings. For the three months ended March 31, 2018 and 2017 , gains (losses) recognized in cost of products sold shown in the table above include $(7.7) and $16.3 , for unrealized mark-to-market gains (losses) on iron ore derivatives. Not included in the financial results for the three months ended March 31, 2018 and 2017 were realized gains of $2.3 and $11.4 for iron ore derivatives contracts that settled during the period for which we had recognized mark-to-market gains in our financial results in prior quarters. Gains (losses) before tax expected to be reclassified into cost of products sold within the next twelve months for our existing derivatives that qualify as cash flow hedges for hedge accounting are presented below: Hedge Gains (losses) Natural gas $ (0.5 ) Zinc (6.8 ) Electricity 0.5 Canadian dollars (6.8 ) |
Supplementary Cash Flow Informa
Supplementary Cash Flow Information (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Supplementary 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, 2018 2017 Net cash paid (received) during the period for: Interest, net of capitalized interest $ 32.8 $ 45.1 Income taxes (7.5 ) 0.1 Included in net cash flows from operations was cash provided by SunCoke Middletown of $21.5 and $20.3 for the three months ended March 31, 2018 and 2017 . Consolidated cash and cash equivalents at March 31, 2018 and December 31, 2017 , include SunCoke Middletown’s cash and cash equivalents of $10.6 and $0.1 . 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, 2018 and 2017 , 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 grant 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, 2018 2017 Capital investments $ 20.0 $ 21.6 Issuance of restricted stock and restricted stock units 3.7 3.8 |
Union Contracts (Notes)
Union Contracts (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Union Contracts [Abstract] | |
Union Contracts | Union Contracts In March 2018, members of the International Association of Machinists and Aerospace Workers, Local 1943 , ratified a labor agreement covering approximately 1,730 production employees at Middletown Works. The new agreement expires March 15, 2020 . An agreement with the United Steelworkers, Local 1865 , that governs approximately 280 production employees at Ashland Works is scheduled to expire on September 1, 2018 . An agreement with the United Steelworkers, Local 1190 , that governs approximately 200 production employees at Mountain State Carbon LLC is scheduled to expire on March 1, 2019 . An agreement with the United Auto Workers, Local 3303 , that governs approximately 1,160 production employees at Butler Works is scheduled to expire on April 1, 2019 |
New Accounting Pronouncements (
New Accounting Pronouncements (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles | New Accounting Pronouncements Other Recent Accounting Pronouncements Adopted We adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) , as of January 1, 2018 through the modified retrospective method applied to those contracts that were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC Topic 605. There was no adjustment required to adopt Topic 606 since our revenue recognition under Topic 606 is substantially the same as under Topic 605. In August 2017, the FASB issued a standards update to better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. Among other amendments, the update allows entities to designate the variability in cash flows attributable to changes in a contractually specified component stated in the contract as the hedged risk in a cash flow hedge of a forecasted purchase or sale of a nonfinancial asset. We have adopted the standard update effective as of January 1, 2018, and have applied the new hedge guidance for certain hedges entered since adoption. The effect of adoption of the new guidance was not significant. Recent Accounting Pronouncements Not Yet Adopted 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 intend to recognize and measure leases beginning at the adoption date using a modified retrospective approach in accordance with updated guidance expected to be issued by FASB. Topic 842 is effective for us beginning January 1, 2019. We are currently evaluating the effect of the adoption of Topic 842 on our consolidated financial position and results of operations. We expect that the adoption of the standard will result in a material increase to the assets and liabilities on our consolidated balance sheets. In June 2016, FASB issued a new standard to replace the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. In connection with recognizing credit losses on receivables and other financial instruments, we will be required to use a forward-looking expected loss model rather than the incurred loss model. The new standard will be effective for us beginning January 1, 2020, with early adoption permitted beginning January 1, 2019. Adoption of this standard is through a cumulative-effect adjustment to retained earnings as of the effective date. We are currently evaluating the effect of this standard on our consolidated financial position and results of operations. |
Supplementary Guarantor Informa
Supplementary Guarantor Information (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Supplemental Guarantor Information [Abstract] | |
Supplementary Guarantor Information | Supplementary Guarantor Information AK Steel’s senior secured notes due 2023 and senior unsecured notes due 2021, 2025 and 2027 (collectively, the “Senior Notes”) and Exchangeable Notes due 2019 are governed by indentures entered into by AK Holding and its 100%-owned subsidiary, AK Steel. Under the terms of the Senior Notes’ indentures, AK Holding and the Subsidiary Guarantors 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. AK Holding is the sole guarantor of 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 Subsidiary Guarantors of the Senior Notes and the other non-guarantor subsidiaries. Condensed Consolidated Statements of Comprehensive Income (Loss) Three Months Ended March 31, 2018 AK Holding AK Steel Guarantor Subsidiaries of the Senior Notes Other Non-Guarantor Subsidiaries Eliminations Consolidated Company Net sales $ — $ 1,503.0 $ 77.1 $ 208.7 $ (129.9 ) $ 1,658.9 Cost of products sold (exclusive of item shown separately below) — 1,353.4 54.6 171.7 (116.0 ) 1,463.7 Selling and administrative expenses (exclusive of item shown separately below) 1.3 74.9 3.6 8.7 (11.8 ) 76.7 Depreciation — 43.4 2.0 9.5 — 54.9 Total operating costs 1.3 1,471.7 60.2 189.9 (127.8 ) 1,595.3 Operating profit (loss) (1.3 ) 31.3 16.9 18.8 (2.1 ) 63.6 Interest expense — 36.4 — 1.2 — 37.6 Pension and OPEB (income) expense — (10.0 ) (10.0 ) Other (income) expense — 1.2 (3.5 ) (1.6 ) — (3.9 ) Income (loss) before income taxes (1.3 ) 3.7 20.4 19.2 (2.1 ) 39.9 Income tax expense (benefit) — (11.9 ) 5.1 2.4 (0.5 ) (4.9 ) Equity in net income (loss) of subsidiaries 30.0 14.4 — — (44.4 ) — Net income (loss) 28.7 30.0 15.3 16.8 (46.0 ) 44.8 Less: Net income attributable to noncontrolling interests — — — 16.1 — 16.1 Net income (loss) attributable to AK Steel Holding Corporation 28.7 30.0 15.3 0.7 (46.0 ) 28.7 Other comprehensive income (loss) (6.7 ) (6.7 ) — 1.1 5.6 (6.7 ) Comprehensive income (loss) attributable to AK Steel Holding Corporation $ 22.0 $ 23.3 $ 15.3 $ 1.8 $ (40.4 ) $ 22.0 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 item shown separately below) — 1,258.0 46.5 62.8 (90.4 ) 1,276.9 Selling and administrative expenses (exclusive of item shown separately below) 1.4 72.8 3.2 5.5 (11.2 ) 71.7 Depreciation — 47.2 2.0 5.9 — 55.1 Total operating costs 1.4 1,378.0 51.7 74.2 (101.6 ) 1,403.7 Operating profit (loss) (1.4 ) 95.6 20.6 17.2 (2.3 ) 129.7 Interest expense — 39.0 — 0.4 — 39.4 Pension and OPEB (income) expense — (18.1 ) — — — (18.1 ) Other (income) expense — 11.4 (2.4 ) (1.2 ) — 7.8 Income (loss) before income taxes (1.4 ) 63.3 23.0 18.0 (2.3 ) 100.6 Income tax expense (benefit) — (8.6 ) 8.8 0.7 (0.9 ) — Equity in net income (loss) of subsidiaries 85.8 13.9 — 0.1 (99.8 ) — Net income (loss) 84.4 85.8 14.2 17.4 (101.2 ) 100.6 Less: Net income attributable to noncontrolling interests — — — 16.2 — 16.2 Net income (loss) attributable to AK Steel Holding Corporation 84.4 85.8 14.2 1.2 (101.2 ) 84.4 Other comprehensive income (loss) (20.1 ) (20.1 ) — 0.3 19.8 (20.1 ) Comprehensive income (loss) attributable to AK Steel Holding Corporation $ 64.3 $ 65.7 $ 14.2 $ 1.5 $ (81.4 ) $ 64.3 Condensed Consolidated Balance Sheets March 31, 2018 AK Holding AK Steel Guarantor Subsidiaries of the Senior Notes Other Non-Guarantor Subsidiaries Eliminations Consolidated Company ASSETS Current assets: Cash and cash equivalents $ — $ 12.7 $ 4.1 $ 27.7 $ — $ 44.5 Accounts receivable, net — 499.0 38.6 103.4 (21.2 ) 619.8 Inventory — 1,202.3 57.6 86.1 (12.0 ) 1,334.0 Other current assets — 89.1 0.1 7.2 — 96.4 Total current assets — 1,803.1 100.4 224.4 (33.2 ) 2,094.7 Property, plant and equipment — 6,019.5 182.3 648.9 — 6,850.7 Accumulated depreciation — (4,663.8 ) (96.8 ) (139.1 ) — (4,899.7 ) Property, plant and equipment, net — 1,355.7 85.5 509.8 — 1,951.0 Investment in subsidiaries (3,170.1 ) 1,886.9 — 67.5 1,215.7 — Inter-company accounts 3,151.0 — 1,565.7 — (4,716.7 ) — Other non-current assets — 60.7 33.1 318.2 — 412.0 TOTAL ASSETS $ (19.1 ) $ 5,106.4 $ 1,784.7 $ 1,119.9 $ (3,534.2 ) $ 4,457.7 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ — $ 661.7 $ 21.0 $ 50.6 $ (4.7 ) $ 728.6 Accrued liabilities — 195.3 6.7 32.1 — 234.1 Current portion of pension and other postretirement benefit obligations — 39.3 — 0.4 — 39.7 Total current liabilities — 896.3 27.7 83.1 (4.7 ) 1,002.4 Non-current liabilities: Long-term debt — 2,103.3 — — — 2,103.3 Pension and other postretirement benefit obligations — 865.7 — 3.5 — 869.2 Inter-company accounts — 4,294.5 — 510.8 (4,805.3 ) — Other non-current liabilities — 116.7 — 34.2 — 150.9 TOTAL LIABILITIES — 8,276.5 27.7 631.6 (4,810.0 ) 4,125.8 Equity: Total stockholders’ equity (deficit) (19.1 ) (3,170.1 ) 1,757.0 137.3 1,275.8 (19.1 ) Noncontrolling interests — — — 351.0 — 351.0 TOTAL EQUITY (19.1 ) (3,170.1 ) 1,757.0 488.3 1,275.8 331.9 TOTAL LIABILITIES AND EQUITY $ (19.1 ) $ 5,106.4 $ 1,784.7 $ 1,119.9 $ (3,534.2 ) $ 4,457.7 Condensed Consolidated Balance Sheets December 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 $ — $ 14.5 $ 7.2 $ 16.3 $ — $ 38.0 Accounts receivable, net — 432.4 33.2 65.4 (13.2 ) 517.8 Inventory — 1,231.5 55.1 108.3 (9.9 ) 1,385.0 Other current assets — 124.7 0.2 5.4 — 130.3 Total current assets — 1,803.1 95.7 195.4 (23.1 ) 2,071.1 Property, plant and equipment — 6,004.0 181.5 646.3 — 6,831.8 Accumulated depreciation — (4,620.8 ) (94.8 ) (130.0 ) — (4,845.6 ) Property, plant and equipment, net — 1,383.2 86.7 516.3 — 1,986.2 Investment in subsidiaries (3,127.4 ) 1,844.9 — 67.5 1,215.0 — Inter-company accounts 3,082.8 — 1,523.1 — (4,605.9 ) — Other non-current assets — 66.3 33.0 318.2 — 417.5 TOTAL ASSETS $ (44.6 ) $ 5,097.5 $ 1,738.5 $ 1,097.4 $ (3,414.0 ) $ 4,474.8 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ — $ 623.3 $ 17.9 $ 50.9 $ (1.7 ) $ 690.4 Accrued liabilities — 228.2 7.8 34.5 — 270.5 Current portion of pension and other postretirement benefit obligations — 39.7 — 0.4 — 40.1 Total current liabilities — 891.2 25.7 85.8 (1.7 ) 1,001.0 Non-current liabilities: Long-term debt — 2,110.1 — — — 2,110.1 Pension and other postretirement benefit obligations — 890.8 — 3.4 — 894.2 Inter-company accounts — 4,199.6 — 489.1 (4,688.7 ) — Other non-current liabilities — 133.2 1.0 34.7 — 168.9 TOTAL LIABILITIES — 8,224.9 26.7 613.0 (4,690.4 ) 4,174.2 Equity: Total stockholders’ equity (deficit) (44.6 ) (3,127.4 ) 1,711.8 139.2 1,276.4 (44.6 ) Noncontrolling interests — — — 345.2 — 345.2 TOTAL EQUITY (44.6 ) (3,127.4 ) 1,711.8 484.4 1,276.4 300.6 TOTAL LIABILITIES AND EQUITY $ (44.6 ) $ 5,097.5 $ 1,738.5 $ 1,097.4 $ (3,414.0 ) $ 4,474.8 Condensed Consolidated Statements of Cash Flows Three Months Ended March 31, 2018 AK Holding AK Steel Guarantor Subsidiaries of the Senior Notes Other Non-Guarantor Subsidiaries Eliminations Consolidated Company Net cash flows from operating activities $ (1.0 ) $ 45.7 $ 4.8 $ 11.1 $ 5.0 $ 65.6 Cash flows from investing activities: Capital investments — (31.4 ) (0.9 ) (5.6 ) — (37.9 ) Other investing items, net — — — — — — Net cash flows from investing activities — (31.4 ) (0.9 ) (5.6 ) — (37.9 ) Cash flows from financing activities: Net borrowings (payments) under credit facility — (10.0 ) — — — (10.0 ) Inter-company activity 2.0 (6.2 ) (7.0 ) 16.2 (5.0 ) — SunCoke Middletown distributions to noncontrolling interest owners — — — (10.3 ) — (10.3 ) Other financing items, net (1.0 ) 0.1 — — — (0.9 ) Net cash flows from financing activities 1.0 (16.1 ) (7.0 ) 5.9 (5.0 ) (21.2 ) Net increase (decrease) in cash and cash equivalents — (1.8 ) (3.1 ) 11.4 — 6.5 Cash and equivalents, beginning of period — 14.5 7.2 16.3 — 38.0 Cash and equivalents, end of period $ — $ 12.7 $ 4.1 $ 27.7 $ — $ 44.5 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 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting, Policy | 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, 2018 and December 31, 2017 , our results of operations for the three months ended March 31, 2018 and 2017 , and our cash flows for the three months ended March 31, 2018 and 2017 . Our results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results we expect for the full year ending December 31, 2018 . These condensed consolidated financial statements should be read along with our audited consolidated financial statements for the year ended December 31, 2017 , included in our Annual Report on Form 10-K for the year ended December 31, 2017 |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition : We generate our revenue through product sales, and shipping terms generally indicate when we have fulfilled our performance obligations and passed control of products to our customer. Our revenue transactions consist of a single performance obligation to transfer promised goods. We have contracts with a substantial portion of our customers. These contracts usually define the mechanism for determining the sales price, but the contacts do not impose a specific quantity on either party. Quantities to be delivered to the customer are determined at a point near the date of delivery through purchase orders or other written instructions we receive from the customer. Spot market sales are made through purchase orders or other written instructions. We recognize revenue when we have fulfilled a performance obligation, which is typically when we have shipped products at the customer’s instructions. For sales with shipping terms that transfer title and risk of loss at the destination point, we recognize revenue when the customer receives the goods and our performance obligation is complete. For sales with shipping terms that transfer title and risk of loss at the shipping point with us bearing responsibility for freight costs to the destination, we determine that we have fulfilled a single performance obligation and recognize revenue when we ship the goods. For our tooling solutions, we record progress payments that we receive from a customer as accrued liabilities until we recognize the revenue when the customer provides written acceptance that our performance obligation has been fulfilled. |
Inventory, Policy [Policy Text Block] | Inventory : Inventories are valued at the lower of cost or net realizable value. We measure the cost of inventories using the average cost method. See Note 3 |
Accounting Changes [Text Block] | Pension and Other Postretirement Benefits : On January 1, 2018, we adopted Accounting Standards Update No. 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. Under this standard, the service cost component of periodic pension and other postretirement benefit expense is included in cost of products sold and selling and administrative expenses, consistent with our treatment of other employee compensation costs. The remainder of periodic pension and other postretirement benefit income of $10.0 and $18.1 |
Earnings Per Share (Policies)
Earnings Per Share (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
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 State27
Supplementary Financial Statement Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Disaggregation of Revenue | Net sales by market are presented below: Three Months Ended March 31, 2018 2017 Automotive $ 1,119.1 $ 1,029.5 Infrastructure and Manufacturing 241.3 229.6 Distributors and Converters 298.5 274.3 Total $ 1,658.9 $ 1,533.4 Net sales by product line are presented below: Three Months Ended March 31, 2018 2017 Carbon steel $ 1,068.6 $ 1,029.2 Stainless and electrical steel 426.1 433.9 Tubular products, components and other 164.2 70.3 Total $ 1,658.9 $ 1,533.4 |
Inventory | Inventories as of March 31, 2018 and December 31, 2017 , are presented below: March 31, December 31, Finished and semi-finished $ 972.5 $ 996.8 Raw materials 361.5 388.2 Inventory $ 1,334.0 $ 1,385.0 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | As a result of the retrospective application of the change in accounting principle, certain financial statement line items in our condensed consolidated balance sheet as of December 31, 2017 and our condensed consolidated statements of operations and comprehensive income (loss) and cash flows for the three months ended March 31, 2017 were adjusted as follows: As Originally Reported Effect of Change As Adjusted Condensed consolidated statement of operations for the three months ended March 31, 2017: Cost of products sold (a) $ 1,312.2 $ (35.3 ) $ 1,276.9 Income tax expense (benefit) (13.4 ) 13.4 — Net income 78.7 21.9 100.6 Net income attributable to AK Steel Holding Corporation 62.5 21.9 84.4 Net income per share attributable to AK Steel Holding Corporation common stockholders: Basic $ 0.20 $ 0.07 $ 0.27 Diluted 0.19 0.07 0.26 Condensed consolidated statement of comprehensive income for the three months ended March 31, 2017: Cash flow hedges—Reclassification of losses (gains) to net income (loss) $ (3.2 ) $ 2.6 $ (0.6 ) Comprehensive income 56.0 24.5 80.5 Comprehensive income attributable to AK Steel Holding Corporation 39.8 24.5 64.3 Condensed consolidated balance sheet as of December 31, 2017: Inventory $ 1,147.8 $ 237.2 $ 1,385.0 Other non-current assets 476.0 (58.5 ) 417.5 Other non-current liabilities 161.6 7.3 168.9 Accumulated deficit (3,058.6 ) 181.6 (2,877.0 ) Accumulated other comprehensive loss (40.0 ) (10.2 ) (50.2 ) Condensed consolidated statement of cash flows for the three months ended March 31, 2017: Net income $ 78.7 $ 21.9 $ 100.6 Deferred income taxes (11.9 ) 13.4 1.5 Changes in working capital (54.6 ) (37.9 ) (92.5 ) Other operating items, net (10.6 ) 2.6 (8.0 ) (a) Cost of products sold as originally reported reflects the change in presentation of pension and OPEB (income) expense further described in Note 1 . The following table shows the effects of the change in accounting principle from LIFO to average cost as of March 31, 2018 and for the three months ended March 31, 2018 : As Computed under LIFO As Reported under Average Cost Effect of Change Condensed consolidated statement of operations for the three months ended March 31, 2018: Cost of products sold $ 1,478.9 $ 1,463.7 $ (15.2 ) Income tax expense (benefit) (8.2 ) (4.9 ) 3.3 Net income 32.9 44.8 11.9 Net income attributable to AK Steel Holding Corporation 16.8 28.7 11.9 Net income per share attributable to AK Steel Holding Corporation common stockholders: Basic $ 0.05 $ 0.09 $ 0.04 Diluted 0.05 0.09 0.04 Condensed consolidated statement of comprehensive income for the three months ended March 31, 2018: Cash flow hedges—Reclassification of losses (gains) to net income (loss) $ (5.9 ) $ (7.6 ) $ (1.7 ) Comprehensive income 27.9 38.1 10.2 Comprehensive income attributable to AK Steel Holding Corporation 11.8 22.0 10.2 Condensed consolidated balance sheet as of March 31, 2018: Inventory $ 1,083.3 $ 1,334.0 $ 250.7 Other non-current assets 479.1 412.0 (67.1 ) Other non-current liabilities 148.9 150.9 2.0 Accumulated deficit (3,042.6 ) (2,849.1 ) 193.5 Accumulated other comprehensive loss (44.2 ) (56.1 ) (11.9 ) Condensed consolidated statement of cash flows for the three months ended March 31, 2018: Net income $ 32.9 $ 44.8 $ 11.9 Deferred income taxes (10.1 ) (6.8 ) 3.3 Changes in working capital 13.7 0.2 (13.5 ) Other operating items, net (11.6 ) (13.3 ) (1.7 ) |
Schedule of Intangible Assets and Goodwill [Table Text Block] | The change in goodwill for the three months ended March 31, 2018 , was as follows. 2018 Balance at December 31, 2017 $ 253.8 Adjustment to acquisition purchase price 1.2 Balance at March 31, 2018 $ 255.0 Intangible assets at March 31, 2018 , consist of: Gross Amount Accumulated Amortization Net Amount Customer relationships $ 36.6 $ (3.5 ) $ 33.1 Technology 19.3 (2.1 ) 17.2 Other 1.0 (0.6 ) 0.4 Intangible assets $ 56.9 $ (6.2 ) $ 50.7 Intangible assets at December 31, 2017 , consist of: Gross Amount Accumulated Amortization Net Amount Customer relationships $ 36.6 $ (2.2 ) $ 34.4 Technology 19.3 (1.4 ) 17.9 Other 1.0 (0.4 ) 0.6 Intangible assets $ 56.9 $ (4.0 ) $ 52.9 |
Investments in Affiliates | Summarized financial statement data for all investees is presented below. Three Months Ended March 31, 2018 2017 Revenue $ 74.8 $ 72.5 Gross profit 21.1 25.5 Net income 4.2 8.9 |
Long-term Debt and Other Fina28
Long-term Debt and Other Financing (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Debt balances at March 31, 2018 and December 31, 2017 , are presented below: March 31, December 31, Credit Facility $ 440.0 $ 450.0 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 October 2021 406.2 406.2 6.375% Senior Notes due October 2025 (effective rate of 7.1%) 280.0 280.0 7.00% Senior Notes due March 2027 400.0 400.0 Industrial Revenue Bonds due 2020 through 2028 99.3 99.3 Unamortized debt discount and issuance costs (52.2 ) (55.4 ) Total long-term debt $ 2,103.3 $ 2,110.1 |
Pension and Other Postretirem29
Pension and Other Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits, Description [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | Net periodic benefit (income) expense for pension and other postretirement benefits was as follows: Three Months Ended March 31, 2018 2017 Pension Benefits Service cost $ 0.8 $ 0.7 Interest cost 23.7 27.0 Expected return on assets (38.8 ) (37.6 ) Amortization of prior service cost 1.0 1.2 Amortization of loss 3.9 2.7 Net periodic benefit (income) expense $ (9.4 ) $ (6.0 ) Other Postretirement Benefits Service cost $ 1.1 $ 1.2 Interest cost 3.9 4.3 Amortization of prior service cost (credit) (3.4 ) (14.6 ) Amortization of (gain) loss (0.3 ) (1.1 ) Net periodic benefit (income) expense $ 1.3 $ (10.2 ) |
Environmental and Legal Conti30
Environmental and Legal Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 $ 8.2 $ 8.5 Other non-current liabilities 31.0 35.4 |
Schedule of Information on Pending Asbestos Cases | The number of asbestos cases pending at March 31, 2018 , is presented below: Asbestos Cases Pending at March 31, 2018 Cases with specific dollar claims for damages: Claims up to $0.2 137 Claims above $0.2 to $5.0 4 Claims above $5.0 to $20.0 3 Total claims with specific dollar claims for damages (a) 144 Cases without a specific dollar claim for damages 193 Total asbestos cases pending 337 (a) Involve a total of 2,246 plaintiffs and 17,826 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, 2018 and 2017 is presented below: Three Months Ended March 31, 2018 2017 New Claims Filed 12 18 Pending Claims Disposed Of 11 11 Total Amount Paid in Settlements $ 0.3 $ 0.1 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 2018 2017 Stock options $ 1.7 $ 1.5 Restricted stock 1.9 1.9 Restricted stock units issued to Directors 0.3 0.4 Performance shares 0.5 0.4 Equity-based long-term performance plan 0.1 — Total share-based compensation expense $ 4.5 $ 4.2 |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 2017 Foreign currency translation Balance at beginning of period $ 1.1 $ (3.6 ) Other comprehensive income (loss)—foreign currency translation gain (loss) 1.1 0.3 Balance at end of period $ 2.2 $ (3.3 ) Cash flow hedges Balance at beginning of period $ 22.3 $ 39.9 Cumulative effect of adopting new hedging standard 0.8 — Other comprehensive income (loss): Gains (losses) arising in period (1.4 ) (8.0 ) Income tax expense (benefit) (b) — — Gains (losses) arising in period, net of tax (1.4 ) (8.0 ) Reclassification of losses (gains) to net income: Recorded in cost of products sold (7.6 ) (0.6 ) Income tax (expense) benefit (b) — — Net amount of reclassification of losses (gains) to net income, net of tax (7.6 ) (0.6 ) Total other comprehensive income (loss), net of tax (9.0 ) (8.6 ) Balance at end of period $ 14.1 $ 31.3 Pension and OPEB plans Balance at beginning of period $ (73.6 ) $ (125.0 ) Reclassification to net income: Prior service costs (credits) (a) (2.4 ) (13.4 ) Actuarial (gains) losses (a) 3.6 1.6 Subtotal 1.2 (11.8 ) Income tax (expense) benefit (b) — — Amount of reclassification to net income, net of tax 1.2 (11.8 ) Total other comprehensive income (loss), net of tax 1.2 (11.8 ) Balance at end of period $ (72.4 ) $ (136.8 ) (a) Included in pension and OPEB (income) expense (b) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per share | Three Months Ended March 31, 2018 2017 Net income (loss) attributable to AK Steel Holding Corporation $ 28.7 $ 84.4 Less: distributed earnings to common stockholders and holders of certain stock compensation awards — — Undistributed earnings $ 28.7 $ 84.4 Common stockholders earnings—basic and diluted: Distributed earnings to common stockholders $ — $ — Undistributed earnings to common stockholders 28.6 84.3 Common stockholders earnings—basic and diluted $ 28.6 $ 84.3 Common shares outstanding (weighted-average shares in millions): Common shares outstanding for basic earnings per share 314.7 314.1 Effect of exchangeable debt 0.5 10.3 Effect of dilutive stock-based compensation 0.8 1.2 Common shares outstanding for diluted earnings per share 316.0 325.6 Basic earnings per share: Distributed earnings $ — $ — Undistributed earnings 0.09 0.27 Basic earnings per share $ 0.09 $ 0.27 Diluted earnings per share: Distributed earnings $ — $ — Undistributed earnings 0.09 0.26 Diluted earnings per share $ 0.09 $ 0.26 Potentially issuable common shares (in millions) excluded from earnings per share calculation due to anti-dilutive effect 2.2 1.1 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 December 31, 2017 Level 1 Level 2 Total Level 1 Level 2 Total Assets measured at fair value Cash and cash equivalents $ 44.5 $ — $ 44.5 $ 38.0 $ — $ 38.0 Other current assets: Foreign exchange contracts — 0.1 0.1 — 0.2 0.2 Commodity hedge contracts — 20.1 20.1 — 35.2 35.2 Other non-current assets: Foreign exchange contracts — 0.9 0.9 — 1.7 1.7 Commodity hedge contracts — 4.1 4.1 — 10.6 10.6 Assets measured at fair value $ 44.5 $ 25.2 $ 69.7 $ 38.0 $ 47.7 $ 85.7 Liabilities measured at fair value Accrued liabilities: Foreign exchange contracts $ — $ (0.9 ) $ (0.9 ) $ — $ (0.3 ) $ (0.3 ) Commodity hedge contracts — (2.8 ) (2.8 ) — (4.9 ) (4.9 ) Other non-current liabilities: Foreign exchange contracts — (0.3 ) (0.3 ) — — — Commodity hedge contracts — (1.4 ) (1.4 ) — (0.5 ) (0.5 ) Liabilities measured at fair value $ — $ (5.4 ) $ (5.4 ) $ — $ (5.7 ) $ (5.7 ) Liabilities measured at other than fair value Long-term debt, including current portions: Fair value $ — $ (2,199.3 ) $ (2,199.3 ) $ — $ (2,273.4 ) $ (2,273.4 ) Carrying amount — (2,103.3 ) (2,103.3 ) — (2,110.1 ) (2,110.1 ) |
Derivative Instruments and He35
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding commodity price swaps and options and forward foreign exchange contracts | Outstanding derivative contracts and the period over which we are hedging our exposure to the volatility in future cash flows are presented below: Derivative Contracts Settlement Dates March 31, December 31, Commodity contracts: Nickel (in lbs) — 500,000 Natural gas (in MMBTUs) April 2018 to March 2020 37,843,000 41,338,000 Zinc (in lbs) April 2018 to December 2019 51,300,000 50,350,000 Iron ore (in metric tons) April 2018 to December 2019 2,065,000 2,340,000 Electricity (in MWHs) April 2018 to December 2019 1,308,000 1,553,000 Foreign exchange contracts: Euros (in millions) April 2018 to December 2018 € 18.0 € 26.0 Canadian dollars (in millions) April 2018 to December 2021 C$ 147.9 C$ 148.1 |
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 cash flow hedges: Other current assets: Foreign exchange contracts $ 0.1 $ 0.2 Commodity contracts 6.4 9.0 Other non-current assets: Foreign exchange contracts 0.9 1.7 Commodity contracts 0.7 2.3 Accrued liabilities: Foreign exchange contracts (0.5 ) (0.2 ) Commodity contracts (2.8 ) (4.6 ) Other non-current liabilities: Foreign exchange contracts (0.3 ) — Commodity contracts (1.4 ) (0.5 ) Derivatives not designated as cash flow hedges: Other current assets—commodity contracts 13.7 26.2 Other non-current assets—commodity contracts 3.4 8.3 Accrued liabilities: Foreign exchange contracts (0.4 ) (0.1 ) Commodity contracts — (0.3 ) |
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 and comprehensive income (loss) are presented below: Three Months Ended March 31, Gain (loss) 2018 2017 Derivatives designated as cash flow hedges: Commodity contracts: Recognized in accumulated other comprehensive income that were included in the assessment of effectiveness $ 0.3 $ (8.0 ) Reclassified from accumulated other comprehensive income into cost of products sold 7.6 0.6 Foreign exchange contracts: Recognized in accumulated other comprehensive income that were included in the assessment of effectiveness (1.7 ) — Derivatives not designated as cash flow hedges: Commodity contracts—recognized in cost of products sold (8.7 ) 15.3 Foreign exchange contracts—recognized in other income (expense) (0.3 ) (0.1 ) |
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 derivatives that qualify as cash flow hedges for hedge accounting are presented below: Hedge Gains (losses) Natural gas $ (0.5 ) Zinc (6.8 ) Electricity 0.5 Canadian dollars (6.8 ) |
Supplementary Cash Flow Infor36
Supplementary Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 2017 Net cash paid (received) during the period for: Interest, net of capitalized interest $ 32.8 $ 45.1 Income taxes (7.5 ) 0.1 |
Schedule of non-cash investing and financing activities | Non-cash investing and financing activities are presented below: Three Months Ended March 31, 2018 2017 Capital investments $ 20.0 $ 21.6 Issuance of restricted stock and restricted stock units 3.7 3.8 |
Supplementary Guarantor Infor37
Supplementary Guarantor Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Supplemental Guarantor Information [Abstract] | |
Schedule of Condensed Comprehensive Income (Loss) | Condensed Consolidated Statements of Comprehensive Income (Loss) Three Months Ended March 31, 2018 AK Holding AK Steel Guarantor Subsidiaries of the Senior Notes Other Non-Guarantor Subsidiaries Eliminations Consolidated Company Net sales $ — $ 1,503.0 $ 77.1 $ 208.7 $ (129.9 ) $ 1,658.9 Cost of products sold (exclusive of item shown separately below) — 1,353.4 54.6 171.7 (116.0 ) 1,463.7 Selling and administrative expenses (exclusive of item shown separately below) 1.3 74.9 3.6 8.7 (11.8 ) 76.7 Depreciation — 43.4 2.0 9.5 — 54.9 Total operating costs 1.3 1,471.7 60.2 189.9 (127.8 ) 1,595.3 Operating profit (loss) (1.3 ) 31.3 16.9 18.8 (2.1 ) 63.6 Interest expense — 36.4 — 1.2 — 37.6 Pension and OPEB (income) expense — (10.0 ) (10.0 ) Other (income) expense — 1.2 (3.5 ) (1.6 ) — (3.9 ) Income (loss) before income taxes (1.3 ) 3.7 20.4 19.2 (2.1 ) 39.9 Income tax expense (benefit) — (11.9 ) 5.1 2.4 (0.5 ) (4.9 ) Equity in net income (loss) of subsidiaries 30.0 14.4 — — (44.4 ) — Net income (loss) 28.7 30.0 15.3 16.8 (46.0 ) 44.8 Less: Net income attributable to noncontrolling interests — — — 16.1 — 16.1 Net income (loss) attributable to AK Steel Holding Corporation 28.7 30.0 15.3 0.7 (46.0 ) 28.7 Other comprehensive income (loss) (6.7 ) (6.7 ) — 1.1 5.6 (6.7 ) Comprehensive income (loss) attributable to AK Steel Holding Corporation $ 22.0 $ 23.3 $ 15.3 $ 1.8 $ (40.4 ) $ 22.0 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 item shown separately below) — 1,258.0 46.5 62.8 (90.4 ) 1,276.9 Selling and administrative expenses (exclusive of item shown separately below) 1.4 72.8 3.2 5.5 (11.2 ) 71.7 Depreciation — 47.2 2.0 5.9 — 55.1 Total operating costs 1.4 1,378.0 51.7 74.2 (101.6 ) 1,403.7 Operating profit (loss) (1.4 ) 95.6 20.6 17.2 (2.3 ) 129.7 Interest expense — 39.0 — 0.4 — 39.4 Pension and OPEB (income) expense — (18.1 ) — — — (18.1 ) Other (income) expense — 11.4 (2.4 ) (1.2 ) — 7.8 Income (loss) before income taxes (1.4 ) 63.3 23.0 18.0 (2.3 ) 100.6 Income tax expense (benefit) — (8.6 ) 8.8 0.7 (0.9 ) — Equity in net income (loss) of subsidiaries 85.8 13.9 — 0.1 (99.8 ) — Net income (loss) 84.4 85.8 14.2 17.4 (101.2 ) 100.6 Less: Net income attributable to noncontrolling interests — — — 16.2 — 16.2 Net income (loss) attributable to AK Steel Holding Corporation 84.4 85.8 14.2 1.2 (101.2 ) 84.4 Other comprehensive income (loss) (20.1 ) (20.1 ) — 0.3 19.8 (20.1 ) Comprehensive income (loss) attributable to AK Steel Holding Corporation $ 64.3 $ 65.7 $ 14.2 $ 1.5 $ (81.4 ) $ 64.3 |
Schedule of Condensed Balance Sheet | Condensed Consolidated Balance Sheets March 31, 2018 AK Holding AK Steel Guarantor Subsidiaries of the Senior Notes Other Non-Guarantor Subsidiaries Eliminations Consolidated Company ASSETS Current assets: Cash and cash equivalents $ — $ 12.7 $ 4.1 $ 27.7 $ — $ 44.5 Accounts receivable, net — 499.0 38.6 103.4 (21.2 ) 619.8 Inventory — 1,202.3 57.6 86.1 (12.0 ) 1,334.0 Other current assets — 89.1 0.1 7.2 — 96.4 Total current assets — 1,803.1 100.4 224.4 (33.2 ) 2,094.7 Property, plant and equipment — 6,019.5 182.3 648.9 — 6,850.7 Accumulated depreciation — (4,663.8 ) (96.8 ) (139.1 ) — (4,899.7 ) Property, plant and equipment, net — 1,355.7 85.5 509.8 — 1,951.0 Investment in subsidiaries (3,170.1 ) 1,886.9 — 67.5 1,215.7 — Inter-company accounts 3,151.0 — 1,565.7 — (4,716.7 ) — Other non-current assets — 60.7 33.1 318.2 — 412.0 TOTAL ASSETS $ (19.1 ) $ 5,106.4 $ 1,784.7 $ 1,119.9 $ (3,534.2 ) $ 4,457.7 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ — $ 661.7 $ 21.0 $ 50.6 $ (4.7 ) $ 728.6 Accrued liabilities — 195.3 6.7 32.1 — 234.1 Current portion of pension and other postretirement benefit obligations — 39.3 — 0.4 — 39.7 Total current liabilities — 896.3 27.7 83.1 (4.7 ) 1,002.4 Non-current liabilities: Long-term debt — 2,103.3 — — — 2,103.3 Pension and other postretirement benefit obligations — 865.7 — 3.5 — 869.2 Inter-company accounts — 4,294.5 — 510.8 (4,805.3 ) — Other non-current liabilities — 116.7 — 34.2 — 150.9 TOTAL LIABILITIES — 8,276.5 27.7 631.6 (4,810.0 ) 4,125.8 Equity: Total stockholders’ equity (deficit) (19.1 ) (3,170.1 ) 1,757.0 137.3 1,275.8 (19.1 ) Noncontrolling interests — — — 351.0 — 351.0 TOTAL EQUITY (19.1 ) (3,170.1 ) 1,757.0 488.3 1,275.8 331.9 TOTAL LIABILITIES AND EQUITY $ (19.1 ) $ 5,106.4 $ 1,784.7 $ 1,119.9 $ (3,534.2 ) $ 4,457.7 Condensed Consolidated Balance Sheets December 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 $ — $ 14.5 $ 7.2 $ 16.3 $ — $ 38.0 Accounts receivable, net — 432.4 33.2 65.4 (13.2 ) 517.8 Inventory — 1,231.5 55.1 108.3 (9.9 ) 1,385.0 Other current assets — 124.7 0.2 5.4 — 130.3 Total current assets — 1,803.1 95.7 195.4 (23.1 ) 2,071.1 Property, plant and equipment — 6,004.0 181.5 646.3 — 6,831.8 Accumulated depreciation — (4,620.8 ) (94.8 ) (130.0 ) — (4,845.6 ) Property, plant and equipment, net — 1,383.2 86.7 516.3 — 1,986.2 Investment in subsidiaries (3,127.4 ) 1,844.9 — 67.5 1,215.0 — Inter-company accounts 3,082.8 — 1,523.1 — (4,605.9 ) — Other non-current assets — 66.3 33.0 318.2 — 417.5 TOTAL ASSETS $ (44.6 ) $ 5,097.5 $ 1,738.5 $ 1,097.4 $ (3,414.0 ) $ 4,474.8 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ — $ 623.3 $ 17.9 $ 50.9 $ (1.7 ) $ 690.4 Accrued liabilities — 228.2 7.8 34.5 — 270.5 Current portion of pension and other postretirement benefit obligations — 39.7 — 0.4 — 40.1 Total current liabilities — 891.2 25.7 85.8 (1.7 ) 1,001.0 Non-current liabilities: Long-term debt — 2,110.1 — — — 2,110.1 Pension and other postretirement benefit obligations — 890.8 — 3.4 — 894.2 Inter-company accounts — 4,199.6 — 489.1 (4,688.7 ) — Other non-current liabilities — 133.2 1.0 34.7 — 168.9 TOTAL LIABILITIES — 8,224.9 26.7 613.0 (4,690.4 ) 4,174.2 Equity: Total stockholders’ equity (deficit) (44.6 ) (3,127.4 ) 1,711.8 139.2 1,276.4 (44.6 ) Noncontrolling interests — — — 345.2 — 345.2 TOTAL EQUITY (44.6 ) (3,127.4 ) 1,711.8 484.4 1,276.4 300.6 TOTAL LIABILITIES AND EQUITY $ (44.6 ) $ 5,097.5 $ 1,738.5 $ 1,097.4 $ (3,414.0 ) $ 4,474.8 |
Schedule of Condensed Cash Flow Statement | Condensed Consolidated Statements of Cash Flows Three Months Ended March 31, 2018 AK Holding AK Steel Guarantor Subsidiaries of the Senior Notes Other Non-Guarantor Subsidiaries Eliminations Consolidated Company Net cash flows from operating activities $ (1.0 ) $ 45.7 $ 4.8 $ 11.1 $ 5.0 $ 65.6 Cash flows from investing activities: Capital investments — (31.4 ) (0.9 ) (5.6 ) — (37.9 ) Other investing items, net — — — — — — Net cash flows from investing activities — (31.4 ) (0.9 ) (5.6 ) — (37.9 ) Cash flows from financing activities: Net borrowings (payments) under credit facility — (10.0 ) — — — (10.0 ) Inter-company activity 2.0 (6.2 ) (7.0 ) 16.2 (5.0 ) — SunCoke Middletown distributions to noncontrolling interest owners — — — (10.3 ) — (10.3 ) Other financing items, net (1.0 ) 0.1 — — — (0.9 ) Net cash flows from financing activities 1.0 (16.1 ) (7.0 ) 5.9 (5.0 ) (21.2 ) Net increase (decrease) in cash and cash equivalents — (1.8 ) (3.1 ) 11.4 — 6.5 Cash and equivalents, beginning of period — 14.5 7.2 16.3 — 38.0 Cash and equivalents, end of period $ — $ 12.7 $ 4.1 $ 27.7 $ — $ 44.5 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 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies Accounting Change (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accounting Changes [Abstract] | ||
Pension and OPEB income | $ 10 | $ 18.1 |
Acquisition of Precision Part39
Acquisition of Precision Partners (Details) - Precision Partners Holding Company [Member] | Aug. 04, 2017employees |
Business Acquisition [Line Items] | |
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% |
Entity Number of Employees | 1,000 |
Entity Number of Engineers and Skilled Workers | 300 |
Entity Number of Plants | 8 |
Supplementary Financial State40
Supplementary Financial Statement Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 1,658.9 | $ 1,533.4 |
Non-US [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 167.8 | 155.1 |
Carbon steel | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,068.6 | 1,029.2 |
Stainless and electrical steel | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 426.1 | 433.9 |
Tubular products, components and other | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 164.2 | 70.3 |
Automotive | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,119.1 | 1,029.5 |
Infrastructure and Manufacturing | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 241.3 | 229.6 |
Distributors and Converters | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 298.5 | $ 274.3 |
Supplementary Financial State41
Supplementary Financial Statement Information (Details2) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Finished and semi-finished | $ 972.5 | $ 996.8 |
Raw materials | 361.5 | 388.2 |
Inventory | $ 1,334 | $ 1,385 |
Supplementary Financial State42
Supplementary Financial Statement Information (Details3) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cost of products sold (exclusive of item shown separately below) | $ 1,463.7 | $ 1,276.9 | ||
Income tax expense (benefit) | (4.9) | 0 | ||
Net income | 44.8 | 100.6 | ||
Net income attributable to AK Steel Holding Corporation | $ 28.7 | $ 84.4 | ||
Basic | $ 0.09 | $ 0.27 | ||
Diluted | $ 0.09 | $ 0.26 | ||
Reclassification of losses (gains) to net income (loss) | $ (7.6) | $ (0.6) | ||
Comprehensive income | 38.1 | 80.5 | ||
Comprehensive income attributable to AK Steel Holding Corporation | 22 | 64.3 | ||
Inventory | 1,334 | $ 1,385 | ||
Other non-current assets | 412 | 417.5 | ||
Other non-current liabilities | 150.9 | 168.9 | ||
Accumulated deficit | (2,849.1) | (2,877) | ||
Accumulated other comprehensive loss | (56.1) | (50.2) | ||
Deferred income taxes | (6.8) | 1.5 | ||
Changes in working capital | 0.2 | (92.5) | ||
Other operating items, net | (13.3) | (8) | ||
Scenario, Previously Reported [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cost of products sold (exclusive of item shown separately below) | 1,478.9 | 1,312.2 | [1] | |
Income tax expense (benefit) | (8.2) | (13.4) | ||
Net income | 32.9 | 78.7 | ||
Net income attributable to AK Steel Holding Corporation | $ 16.8 | $ 62.5 | ||
Basic | $ 0.05 | $ 0.20 | ||
Diluted | $ 0.05 | $ 0.19 | ||
Reclassification of losses (gains) to net income (loss) | $ (5.9) | $ (3.2) | ||
Comprehensive income | 27.9 | 56 | ||
Comprehensive income attributable to AK Steel Holding Corporation | 11.8 | 39.8 | ||
Inventory | 1,083.3 | 1,147.8 | ||
Other non-current assets | 479.1 | 476 | ||
Other non-current liabilities | 148.9 | 161.6 | ||
Accumulated deficit | (3,042.6) | (3,058.6) | ||
Accumulated other comprehensive loss | (44.2) | (40) | ||
Deferred income taxes | (10.1) | (11.9) | ||
Changes in working capital | 13.7 | (54.6) | ||
Other operating items, net | (11.6) | (10.6) | ||
Restatement Adjustment [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cost of products sold (exclusive of item shown separately below) | (15.2) | (35.3) | ||
Income tax expense (benefit) | 3.3 | 13.4 | ||
Net income | 11.9 | 21.9 | ||
Net income attributable to AK Steel Holding Corporation | $ 11.9 | $ 21.9 | ||
Basic | $ 0.04 | $ 0.07 | ||
Diluted | $ 0.04 | $ 0.07 | ||
Reclassification of losses (gains) to net income (loss) | $ (1.7) | $ 2.6 | ||
Comprehensive income | 10.2 | 24.5 | ||
Comprehensive income attributable to AK Steel Holding Corporation | 10.2 | 24.5 | ||
Inventory | 250.7 | 237.2 | ||
Other non-current assets | (67.1) | (58.5) | ||
Other non-current liabilities | 2 | 7.3 | ||
Accumulated deficit | 193.5 | 181.6 | ||
Accumulated other comprehensive loss | (11.9) | $ (10.2) | ||
Deferred income taxes | 3.3 | 13.4 | ||
Changes in working capital | (13.5) | (37.9) | ||
Other operating items, net | $ (1.7) | $ 2.6 | ||
[1] | (a) Cost of products sold as originally reported reflects the change in presentation of pension and OPEB (income) expense further described in Note 1 |
Supplementary Financial State43
Supplementary Financial Statement Information (Details4) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Goodwill balance | $ 253.8 | |
Adjustment to acquisition purchase price | 1.2 | |
Goodwill balance | 255 | |
Intangible Assets, Gross Amount | 56.9 | $ 56.9 |
Intangible Assets, Accumulated Amortization | (6.2) | (4) |
Intangible Assets, Net Amount | 50.7 | 52.9 |
Amortization of Intangible Assets | 2.4 | |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross Amount | 36.6 | 36.6 |
Intangible Assets, Accumulated Amortization | (3.5) | (2.2) |
Intangible Assets, Net Amount | 33.1 | 34.4 |
Technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross Amount | 19.3 | 19.3 |
Intangible Assets, Accumulated Amortization | (2.1) | (1.4) |
Intangible Assets, Net Amount | 17.2 | 17.9 |
Other | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross Amount | 1 | 1 |
Intangible Assets, Accumulated Amortization | (0.6) | (0.4) |
Intangible Assets, Net Amount | $ 0.4 | $ 0.6 |
Supplementary Financial State44
Supplementary Financial Statement Information (Details5) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | ||
Revenue | $ 74.8 | $ 72.5 |
Gross profit | 21.1 | 25.5 |
Net income | 4.2 | 8.9 |
Cost of Sales [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Income from equity method investments | $ 1.3 | $ 3.4 |
Supplementary Financial State45
Supplementary Financial Statement Information (Details6) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Ashland Works Hot End [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Costs for Temporarily Idled Operations | $ 5.4 | $ 5.6 |
Income Tax (Details)
Income Tax (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Income Tax Disclosure [Abstract] | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 5.3 |
Long-term Debt and Other Fina47
Long-term Debt and Other Financing (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Unamortized debt discount and issuance costs | $ (52.2) | $ (55.4) | |
Total long-term debt | 2,103.3 | 2,110.1 | |
Gain (Loss) on Repurchase of Debt Instrument | $ (9.7) | ||
Senior Secured Notes Due July 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 380 | $ 380 | |
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | 7.50% | |
Debt Instrument, Interest Rate, Effective Percentage | 8.30% | 8.30% | |
Exchangeable Senior Notes Due November 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 150 | $ 150 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | |
Debt Instrument, Interest Rate, Effective Percentage | 10.80% | 10.80% | |
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 October 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 280 | $ 280 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.375% | 6.375% | |
Debt Instrument, Interest Rate, Effective Percentage | 7.10% | 7.10% | |
Senior Notes Due March 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 400 | $ 400 | |
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | 7.00% | |
Industrial Revenue Bonds [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 99.3 | $ 99.3 |
Long-term Debt and Other Fina48
Long-term Debt and Other Financing (Details2) - Revolving Credit Facility [Member] - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 1,350,000,000 | |
Line of Credit Facility, Expiration Date | Mar. 31, 2019 | |
Minimum amount of borrowing capacity for a fixed charge coverage ratio applies | $ 135,000,000 | |
Outstanding borrowings on revolving credit facility | 440,000,000 | $ 450,000,000 |
Line of Credit Facility, Current Borrowing Capacity | 1,331,300,000 | |
Letters of credit, outstanding | 71,500,000 | |
Line of credit facility, remaining borrowing capacity | $ 819,800,000 | |
Debt Instrument, Covenant Description | The Credit Facility contains customary restrictions, including limitations on, among other things, distributions and dividends, acquisitions and investments, dispositions, 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 $135.0. The Credit Facility?s current availability significantly exceeds $135.0. Availability is calculated as the lesser of the Credit Facility commitments or eligible collateral after advance rates, less outstanding revolver borrowings and letters of credit. We do not expect any of these restrictions to affect or limit our ability to conduct business in the ordinary course. We secure our Credit Facility obligations with our inventory and accounts receivable, and the Credit Facility?s availability fluctuates monthly based on the varying levels of eligible collateral. |
Pension and Other Postretirem49
Pension and Other Postretirement Benefits (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Apr. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Payment for Pension Benefits | $ 6 | $ 0 | |
Net periodic benefit cost (income) [Abstract] | |||
Net periodic benefit (income) expense | (8.1) | (16.2) | |
Pension Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Estimated pension plan contributions in current year | 49.9 | ||
Payment for Pension Benefits | 6 | ||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | 35 | ||
Defined Benefit Plans, Estimated Future Employer Contributions, Year Two | 10 | ||
Net periodic benefit cost (income) [Abstract] | |||
Service cost | 0.8 | 0.7 | |
Interest cost | 23.7 | 27 | |
Expected return on assets | (38.8) | (37.6) | |
Amortization of prior service cost (credit) | 1 | 1.2 | |
Amortization of (gain) loss | 3.9 | 2.7 | |
Net periodic benefit (income) expense | (9.4) | (6) | |
Other Postretirement Benefits [Member] | |||
Net periodic benefit cost (income) [Abstract] | |||
Service cost | 1.1 | 1.2 | |
Interest cost | 3.9 | 4.3 | |
Amortization of prior service cost (credit) | (3.4) | (14.6) | |
Amortization of (gain) loss | (0.3) | (1.1) | |
Net periodic benefit (income) expense | $ 1.3 | $ (10.2) | |
Subsequent Event [Member] | Pension Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Payment for Pension Benefits | $ 9.2 |
Environmental and Legal Conti50
Environmental and Legal Contingencies (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrued liabilities | $ 8.2 | $ 8.5 |
Other non-current liabilities | $ 31 | $ 35.4 |
Environmental and Legal Conti51
Environmental and Legal Contingencies (Details 2) $ in Millions | Mar. 31, 2018USD ($) |
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 | 13.6 |
Zanesville Works RCRA [Member] | |
Site Contingency [Line Items] | |
Site contingency accrual, undiscounted amount | $ 0.1 |
Environmental and Legal Conti52
Environmental and Legal Contingencies (Details 3) | 3 Months Ended | ||
Mar. 31, 2018USD ($)claims-lawsuitsdefendantsplaintiffs | Mar. 31, 2017USD ($)claims-lawsuits | ||
Asbestos Claims With Specific Dollar Claim For Damages [Member] | |||
Information on pending asbestos cases [Line Items] | |||
Number of asbestos cases pending | [1] | 144 | |
Claims with specific dollar claims for damages [Abstract] | |||
Asbestos Lawsuits Pending With Dollars Number Of Plaintiffs | plaintiffs | 2,246 | ||
Asbestos Lawsuits Pending With Dollars Number Of Defendants | defendants | 17,826 | ||
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 | 137 | ||
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 of Range 2 [Member] | |||
Information on pending asbestos cases [Line Items] | |||
Number of asbestos cases pending | 4 | ||
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 | 3 | ||
Claims with specific dollar claims for damages [Abstract] | |||
Amount claimed per plaintiff, lower range | $ | $ 5,000,000 | ||
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 | 193 | ||
Asbestos Issue [Member] | |||
Information on pending asbestos cases [Line Items] | |||
Number of asbestos cases pending | 337 | ||
Claims with specific dollar claims for damages [Abstract] | |||
New Claims Filed | 12 | 18 | |
Pending Claims Disposed Of | 11 | 11 | |
Total Amount Paid in Settlements | $ | $ 300,000 | $ 100,000 | |
[1] | Involve a total of 2,246 plaintiffs and 17,826 |
Environmental and Legal Conti53
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 |
Share-based Compensation (Detai
Share-based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Estimated share-based compensation expense | $ 9.4 | |
Share-based Compensation Expense [Abstract] | ||
Share-based Compensation Expense | 4.5 | $ 4.2 |
Stock Options [Member] | ||
Share-based Compensation Expense [Abstract] | ||
Share-based Compensation Expense | $ 1.7 | 1.5 |
Number of options granted (in shares) | 842,000 | |
Weighted-average grant-date fair value per share of options granted (dollars per share) | $ 3.51 | |
Number of options exercised (in shares) | 4,100 | |
Restricted Stock [Member] | ||
Share-based Compensation Expense [Abstract] | ||
Share-based Compensation Expense | $ 1.9 | 1.9 |
Number of shares granted (in shares) | 521,100 | |
Weighted average grant date fair value, granted (dollars per share) | $ 6.56 | |
Intrinsic value of shares vested/restrictions lapsed during the period | $ 3.1 | |
Restricted Stock Units Issued to Directors [Member] | ||
Share-based Compensation Expense [Abstract] | ||
Share-based Compensation Expense | 0.3 | 0.4 |
Performance shares [Member] | ||
Share-based Compensation Expense [Abstract] | ||
Share-based Compensation Expense | $ 0.5 | 0.4 |
Number of shares granted (in shares) | 366,500 | |
Weighted average grant date fair value, granted (dollars per share) | $ 8.05 | |
Long-term Performance Plan [Member] | ||
Share-based Compensation Expense [Abstract] | ||
Share-based Compensation Expense | $ 0.1 | $ 0 |
Share-based Compensation, Target Allocation of Equity Under Comprehensive Award (in hundredths) | 30.00% |
Comprehensive Income (Loss) (De
Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Foreign currency translation | |||||
Balance at beginning of period | $ 1.1 | $ (3.6) | |||
Other comprehensive income (loss)—foreign currency translation gain (loss) | 1.1 | 0.3 | |||
Balance at end of period | 2.2 | (3.3) | |||
Cash flow hedges | |||||
Balance at beginning of period | 22.3 | 39.9 | |||
Cumulative effect of adopting new hedging standard | $ 0 | ||||
Other comprehensive income (loss): | |||||
Gains (losses) arising in period | (1.4) | (8) | |||
Income tax expense (benefit) (b) | 0 | 0 | |||
Gains (losses) arising in period, net of tax | (1.4) | (8) | |||
Reclassification of losses (gains) to net income (loss) | (7.6) | (0.6) | |||
Income tax (expense) benefit (b) | [1] | 0 | 0 | ||
Net amount of reclassification of losses (gains) to net income, net of tax | (7.6) | (0.6) | |||
Total other comprehensive income (loss), net of tax | (9) | (8.6) | |||
Balance at end of period | 14.1 | 31.3 | |||
Pension and OPEB plans | |||||
Balance at beginning of period | (73.6) | (125) | |||
Reclassification to net income: | |||||
Prior service costs (credits) (a) | (2.4) | (13.4) | |||
Actuarial (gains) losses (a) | 3.6 | 1.6 | |||
Subtotal | 1.2 | (11.8) | |||
Income tax (expense) benefit (b) | [1] | 0 | 0 | ||
Amount of reclassification to net income, net of tax | 1.2 | (11.8) | |||
Total other comprehensive income (loss), net of tax | 1.2 | (11.8) | |||
Balance at end of period | (72.4) | (136.8) | |||
Cost of Sales [Member] | |||||
Other comprehensive income (loss): | |||||
Reclassification of losses (gains) to net income (loss) | (7.6) | (0.6) | |||
Pension and OPEB Expense (Income) [Member] | |||||
Reclassification to net income: | |||||
Prior service costs (credits) (a) | [2] | (2.4) | (13.4) | ||
Actuarial (gains) losses (a) | [2] | $ 3.6 | $ 1.6 | ||
Accumulated Other Comprehensive Income (Loss) [Member] | |||||
Cash flow hedges | |||||
Cumulative effect of adopting new hedging standard | $ 0.8 | $ 0 | |||
[1] | Included in income tax expense (benefit) | ||||
[2] | Included in pension and OPEB (income) expense |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Net income (loss) attributable to AK Steel Holding Corporation | $ 28.7 | $ 84.4 |
Less: distributed earnings to common stockholders and holders of certain stock compensation awards | 0 | 0 |
Undistributed earnings | 28.7 | 84.4 |
Common stockholders earnings—basic and diluted | ||
Distributed earnings - basic and diluted | 0 | 0 |
Undistributed earnings to common stockholders - basic and diluted | 28.6 | 84.3 |
Common stockholders earnings—basic and diluted | 28.6 | 84.3 |
Common stockholders earnings – diluted: | ||
Distributed earnings to common stockholders - diluted | 0 | 0 |
Undistributed earnings to common stockholders - diluted | 28.6 | 84.3 |
Common stockholders earnings (loss) – diluted | $ 28.6 | $ 84.3 |
Common shares outstanding (weighted-average shares in millions): | ||
Common shares outstanding for basic earnings per share | 314.7 | 314.1 |
Effect of exchangeable debt (in shares) | 0.5 | 10.3 |
Effect of dilutive stock-based compensation (in shares) | 0.8 | 1.2 |
Common shares outstanding for diluted earnings per share | 316 | 325.6 |
Basic earnings per share: | ||
Distributed earnings - basic (in dollars per share) | $ 0 | $ 0 |
Undistributed earnings - basic (in dollars per share) | 0.09 | 0.27 |
Basic earnings per share (in dollars per share) | 0.09 | 0.27 |
Diluted earnings per share: | ||
Distributed earnings - diluted (in dollars per share) | 0 | 0 |
Undistributed earnings - diluted (in dollars per share) | 0.09 | 0.26 |
Diluted earnings per share (in dollars per share) | $ 0.09 | $ 0.26 |
Potentially issuable common shares (in millions) excluded from earnings per share calculation due to anti-dilutive effect (in shares) | 2.2 | 1.1 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Variable Interest Entity [Line Items] | ||
Income (loss) before income taxes | $ 39.9 | $ 100.6 |
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 | $ 16.2 |
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, 2018 | Dec. 31, 2017 | |
Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Liabilities measured at fair value | ||
Debt Instrument, Fair Value Disclosure | $ (2,199.3) | $ (2,273.4) |
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 | (2,199.3) | (2,273.4) |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Liabilities measured at fair value | ||
Debt Instrument, Fair Value Disclosure | (2,103.3) | (2,110.1) |
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 | (2,103.3) | (2,110.1) |
Fair Value, Measurements, Recurring [Member] | ||
Assets measured at fair value | ||
Assets measured at fair value | 69.7 | 85.7 |
Liabilities measured at fair value | ||
Liabilities measured at fair value | (5.4) | (5.7) |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets measured at fair value | ||
Assets measured at fair value | 44.5 | 38 |
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 | 25.2 | 47.7 |
Liabilities measured at fair value | ||
Liabilities measured at fair value | (5.4) | (5.7) |
Fair Value, Measurements, Recurring [Member] | Cash and Cash Equivalents [Member] | ||
Assets measured at fair value | ||
Cash and cash equivalents | 44.5 | 38 |
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 | 44.5 | 38 |
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 | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Other Current Assets [Member] | ||
Assets measured at fair value | ||
Foreign exchange contracts | 0.1 | 0.2 |
Commodity hedge contracts - current | 20.1 | 35.2 |
Fair Value, Measurements, Recurring [Member] | Other Current Assets [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets measured at fair value | ||
Foreign exchange contracts | 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 | 0.1 | 0.2 |
Commodity hedge contracts - current | 20.1 | 35.2 |
Fair Value, Measurements, Recurring [Member] | Other Non-current Assets [Member] | ||
Assets measured at fair value | ||
Foreign exchange contracts | 0.9 | 1.7 |
Commodity hedge contracts - noncurrent | 4.1 | 10.6 |
Fair Value, Measurements, Recurring [Member] | Other Non-current Assets [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets measured at fair value | ||
Foreign exchange contracts | 0 | 0 |
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 | ||
Foreign exchange contracts | 0.9 | 1.7 |
Commodity hedge contracts - noncurrent | 4.1 | 10.6 |
Fair Value, Measurements, Recurring [Member] | Accrued Liabilities [Member] | ||
Liabilities measured at fair value | ||
Foreign exchange contracts | (0.9) | (0.3) |
Commodity hedge contracts - current | (2.8) | (4.9) |
Fair Value, Measurements, Recurring [Member] | Accrued Liabilities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Liabilities measured at fair value | ||
Foreign exchange contracts | 0 | 0 |
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 | ||
Foreign exchange contracts | (0.9) | (0.3) |
Commodity hedge contracts - current | (2.8) | (4.9) |
Fair Value, Measurements, Recurring [Member] | Other Non-current Liabilities [Member] | ||
Liabilities measured at fair value | ||
Foreign exchange contracts | (0.3) | 0 |
Commodity hedge contracts - noncurrent | (1.4) | (0.5) |
Fair Value, Measurements, Recurring [Member] | Other Non-current Liabilities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Liabilities measured at fair value | ||
Foreign exchange contracts | 0 | 0 |
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 | ||
Foreign exchange contracts | (0.3) | 0 |
Commodity hedge contracts - noncurrent | $ (1.4) | $ (0.5) |
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) | 2.00% | |
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) | 1.00% |
Derivative Instruments and He59
Derivative Instruments and Hedging Activities (Details) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2018USD ($)MMBTUtlbMW | Mar. 31, 2018CAD ($)MMBTUtlbMW | Mar. 31, 2018EUR (€)MMBTUtlbMW | Dec. 31, 2017CAD ($)MMBTUtlbMW | Dec. 31, 2017EUR (€)MMBTUtlbMW | |
Derivative [Line Items] | |||||
Derivative, Collateral, Right to Reclaim Cash | $ 0 | ||||
Euro Member Countries, Euro | |||||
Derivative [Line Items] | |||||
Beginning Settlement Date | Apr. 1, 2018 | ||||
Ending Settlement Date | Dec. 31, 2018 | ||||
Canada, Dollars | |||||
Derivative [Line Items] | |||||
Beginning Settlement Date | Apr. 1, 2018 | ||||
Ending Settlement Date | Dec. 31, 2021 | ||||
Gains (losses) expected to be reclassified into cost of products sold within the next twelve months | $ (6.8) | ||||
Natural Gas [Member] | |||||
Derivative [Line Items] | |||||
Beginning Settlement Date | Apr. 1, 2018 | ||||
Ending Settlement Date | Mar. 31, 2020 | ||||
Gains (losses) expected to be reclassified into cost of products sold within the next twelve months | $ (0.5) | ||||
Zinc [Member] | |||||
Derivative [Line Items] | |||||
Beginning Settlement Date | Apr. 1, 2018 | ||||
Ending Settlement Date | Dec. 31, 2019 | ||||
Gains (losses) expected to be reclassified into cost of products sold within the next twelve months | $ (6.8) | ||||
Iron Ore [Member] | |||||
Derivative [Line Items] | |||||
Beginning Settlement Date | Apr. 1, 2018 | ||||
Ending Settlement Date | Dec. 31, 2019 | ||||
Electricity [Member] | |||||
Derivative [Line Items] | |||||
Beginning Settlement Date | Apr. 1, 2018 | ||||
Ending Settlement Date | Dec. 31, 2019 | ||||
Gains (losses) expected to be reclassified into cost of products sold within the next twelve months | $ 0.5 | ||||
Commodity Contract [Member] | Nickel [Member] | |||||
Derivative [Line Items] | |||||
Nonmonetary Notional Amount of Derivatives | lb | 0 | 0 | 0 | 500,000 | 500,000 |
Commodity Contract [Member] | Natural Gas [Member] | |||||
Derivative [Line Items] | |||||
Nonmonetary Notional Amount of Derivatives | MMBTU | 37,843,000 | 37,843,000 | 37,843,000 | 41,338,000 | 41,338,000 |
Commodity Contract [Member] | Zinc [Member] | |||||
Derivative [Line Items] | |||||
Nonmonetary Notional Amount of Derivatives | lb | 51,300,000 | 51,300,000 | 51,300,000 | 50,350,000 | 50,350,000 |
Commodity Contract [Member] | Iron Ore [Member] | |||||
Derivative [Line Items] | |||||
Nonmonetary Notional Amount of Derivatives | t | 2,065,000 | 2,065,000 | 2,065,000 | 2,340,000 | 2,340,000 |
Commodity Contract [Member] | Electricity [Member] | |||||
Derivative [Line Items] | |||||
Nonmonetary Notional Amount of Derivatives | MW | 1,308,000 | 1,308,000 | 1,308,000 | 1,553,000 | 1,553,000 |
Foreign Exchange Contract [Member] | Euro Member Countries, Euro | |||||
Derivative [Line Items] | |||||
Derivative, Notional Amount | € | € 18,000,000 | € 26,000,000 | |||
Foreign Exchange Contract [Member] | Canada, Dollars | |||||
Derivative [Line Items] | |||||
Derivative, Notional Amount | $ 147,900,000 | $ 148,100,000 |
Derivative Instruments and He60
Derivative Instruments and Hedging Activities (Details 2) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Current | $ 6.4 | $ 9 |
Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other Non-current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Noncurrent | 0.7 | 2.3 |
Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Current | (2.8) | (4.6) |
Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other Non-current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Noncurrent | (1.4) | (0.5) |
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Current | 0.1 | 0.2 |
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Non-current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Noncurrent | 0.9 | 1.7 |
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Current | (0.5) | (0.2) |
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Non-current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Noncurrent | (0.3) | 0 |
Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Current | 13.7 | 26.2 |
Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other Non-current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Noncurrent | 3.4 | 8.3 |
Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Current | 0 | (0.3) |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Current | $ (0.4) | $ (0.1) |
Derivative Instruments and He61
Derivative Instruments and Hedging Activities (Details 3) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) arising in period | $ (1.4) | $ (8) |
Reclassification of losses (gains) to net income (loss) | (7.6) | (0.6) |
Other Nonoperating Income (Expense) [Member] | Foreign Exchange Contract [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivatives not designated as cash flow hedges: | (0.3) | (0.1) |
Cost of Products Sold [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Reclassification of losses (gains) to net income (loss) | (7.6) | (0.6) |
Cost of Products Sold [Member] | Commodity Contract [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivatives not designated as cash flow hedges: | (8.7) | 15.3 |
Cash Flow Hedging [Member] | Commodity Contract [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) arising in period | 0.3 | (8) |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) arising in period | (1.7) | 0 |
Iron Ore [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivatives not designated as cash flow hedges: | (7.7) | 16.3 |
Derivative, Cash Received on Hedge | $ 2.3 | $ 11.4 |
Supplementary Cash Flow Infor62
Supplementary Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplemental cash flow, net cash paid (received) during the period for: [Abstract] | ||||
Interest, net of capitalized interest | $ 32.8 | $ 45.1 | ||
Income taxes | (7.5) | 0.1 | ||
Net Cash Provided by (Used in) Operating Activities | 65.6 | 36.3 | ||
Cash and Cash Equivalents, at Carrying Value | 44.5 | 185.7 | $ 38 | $ 173.2 |
Supplemental cash flow, noncash investing and financing activities [Abstract] | ||||
Capital investments | 20 | 21.6 | ||
Restricted Stock and Restricted Stock Units [Member] | ||||
Supplemental cash flow, noncash investing and financing activities [Abstract] | ||||
Issuance of restricted stock and restricted stock units | 3.7 | 3.8 | ||
SunCoke Middletown [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Supplemental cash flow, net cash paid (received) during the period for: [Abstract] | ||||
Net Cash Provided by (Used in) Operating Activities | 21.5 | $ 20.3 | ||
Cash and Cash Equivalents, at Carrying Value | $ 10.6 | $ 0.1 |
Union Contracts (Details)
Union Contracts (Details) | Mar. 31, 2018employees |
Middletown Works [Member] | |
Concentration Risk [Line Items] | |
Entity Number of Employees | 1,730 |
Ashland Works [Member] | |
Concentration Risk [Line Items] | |
Entity Number of Employees | 280 |
Mountain State Carbon [Member] | |
Concentration Risk [Line Items] | |
Entity Number of Employees | 200 |
Butler Works [Member] | |
Concentration Risk [Line Items] | |
Entity Number of Employees | 1,160 |
Supplementary Guarantor Infor64
Supplementary Guarantor Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Condensed Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ||||||
Net sales | $ 1,658.9 | $ 1,533.4 | ||||
Cost of products sold (exclusive of item shown separately below) | 1,463.7 | 1,276.9 | ||||
Selling and administrative expenses (exclusive of item shown separately below) | 76.7 | 71.7 | ||||
Depreciation | 54.9 | 55.1 | ||||
Total operating costs | 1,595.3 | 1,403.7 | ||||
Operating profit (loss) | 63.6 | 129.7 | ||||
Interest expense | 37.6 | 39.4 | ||||
Pension and OPEB (income) expense | (10) | (18.1) | ||||
Other (income) expense | (3.9) | 7.8 | ||||
Income (loss) before income taxes | 39.9 | 100.6 | ||||
Income tax expense (benefit) | (4.9) | 0 | ||||
Equity in net income (loss) of subsidiaries | 0 | 0 | ||||
Net income | 44.8 | 100.6 | ||||
Less: Net income attributable to noncontrolling interests | 16.1 | 16.2 | ||||
Net income attributable to AK Steel Holding Corporation | 28.7 | 84.4 | ||||
Other comprehensive income (loss) | (6.7) | (20.1) | ||||
Comprehensive income attributable to AK Steel Holding Corporation | 22 | 64.3 | ||||
Current assets: | ||||||
Cash and cash equivalents | 44.5 | 185.7 | $ 44.5 | $ 38 | $ 185.7 | $ 173.2 |
Accounts receivable, net | 619.8 | 517.8 | ||||
Inventory | 1,334 | 1,385 | ||||
Other current assets | 96.4 | 130.3 | ||||
Total current assets | 2,094.7 | 2,071.1 | ||||
Property, plant and equipment | 6,850.7 | 6,831.8 | ||||
Accumulated depreciation | (4,899.7) | (4,845.6) | ||||
Property, plant and equipment, net | 1,951 | 1,986.2 | ||||
Investment in subsidiaries | 0 | 0 | ||||
Inter-company accounts | 0 | 0 | ||||
Other non-current assets | 412 | 417.5 | ||||
TOTAL ASSETS | 4,457.7 | 4,474.8 | ||||
Current liabilities: | ||||||
Accounts payable | 728.6 | 690.4 | ||||
Accrued liabilities | 234.1 | 270.5 | ||||
Current portion of pension and other postretirement benefit obligations | 39.7 | 40.1 | ||||
Total current liabilities | 1,002.4 | 1,001 | ||||
Non-current liabilities: | ||||||
Long-term debt | 2,103.3 | 2,110.1 | ||||
Pension and other postretirement benefit obligations | 869.2 | 894.2 | ||||
Inter-company accounts | 0 | 0 | ||||
Other non-current liabilities | 150.9 | 168.9 | ||||
TOTAL LIABILITIES | 4,125.8 | 4,174.2 | ||||
Equity [Abstract] | ||||||
Total stockholders' equity (deficit) | (19.1) | (44.6) | ||||
Noncontrolling interests | 351 | 345.2 | ||||
TOTAL EQUITY | 331.9 | 300.6 | 218.4 | 149.8 | ||
TOTAL LIABILITIES AND EQUITY | 4,457.7 | 4,474.8 | ||||
Condensed Consolidated Statements of Cash Flows [Abstract] | ||||||
Net cash flows from operating activities | 65.6 | 36.3 | ||||
Cash flows from investing activities: | ||||||
Capital investments | (37.9) | (32.5) | ||||
Other investing items, net | 0 | 1.5 | ||||
Net cash flows from investing activities | (37.9) | (31) | ||||
Cash flows from financing activities: | ||||||
Net borrowings (payments) under credit facility | (10) | 0 | ||||
Proceeds from issuance of long-term debt | 0 | 400 | ||||
Redemption of long-term debt | 0 | (367.5) | ||||
Debt issuance costs | 0 | (7.8) | ||||
Inter-company activity | 0 | 0 | ||||
SunCoke Middletown distributions to noncontrolling interest owners | (10.3) | (15.1) | ||||
Other financing items, net | (0.9) | (2.4) | ||||
Net cash flows from financing activities | (21.2) | 7.2 | ||||
Net increase (decrease) in cash and cash equivalents | 6.5 | 12.5 | ||||
Cash and cash equivalents, beginning of period | 38 | 173.2 | ||||
Cash and cash equivalents, end of period | 44.5 | 185.7 | ||||
AK Holding [Member] | ||||||
Condensed Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ||||||
Net sales | 0 | 0 | ||||
Cost of products sold (exclusive of item shown separately below) | 0 | 0 | ||||
Selling and administrative expenses (exclusive of item shown separately below) | 1.3 | 1.4 | ||||
Depreciation | 0 | 0 | ||||
Total operating costs | 1.3 | 1.4 | ||||
Operating profit (loss) | (1.3) | (1.4) | ||||
Interest expense | 0 | 0 | ||||
Pension and OPEB (income) expense | 0 | 0 | ||||
Other (income) expense | 0 | 0 | ||||
Income (loss) before income taxes | (1.3) | (1.4) | ||||
Income tax expense (benefit) | 0 | 0 | ||||
Equity in net income (loss) of subsidiaries | 30 | 85.8 | ||||
Net income | 28.7 | 84.4 | ||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | ||||
Net income attributable to AK Steel Holding Corporation | 28.7 | 84.4 | ||||
Other comprehensive income (loss) | (6.7) | (20.1) | ||||
Comprehensive income attributable to AK Steel Holding Corporation | 22 | 64.3 | ||||
Current assets: | ||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||||
Inventory | 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 | (3,170.1) | (3,127.4) | ||||
Inter-company accounts | 3,151 | 3,082.8 | ||||
Other non-current assets | 0 | 0 | ||||
TOTAL ASSETS | (19.1) | (44.6) | ||||
Current liabilities: | ||||||
Accounts payable | 0 | 0 | ||||
Accrued liabilities | 0 | 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 | ||||
Inter-company accounts | 0 | 0 | ||||
Other non-current liabilities | 0 | 0 | ||||
TOTAL LIABILITIES | 0 | 0 | ||||
Equity [Abstract] | ||||||
Total stockholders' equity (deficit) | (19.1) | (44.6) | ||||
Noncontrolling interests | 0 | 0 | ||||
TOTAL EQUITY | (19.1) | (44.6) | ||||
TOTAL LIABILITIES AND EQUITY | (19.1) | (44.6) | ||||
Condensed Consolidated Statements of Cash Flows [Abstract] | ||||||
Net cash flows from operating activities | (1) | (1.1) | ||||
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 | 2 | 3.6 | ||||
SunCoke Middletown distributions to noncontrolling interest owners | 0 | 0 | ||||
Other financing items, net | (1) | (2.5) | ||||
Net cash flows from financing activities | 1 | 1.1 | ||||
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 | ||||
AK Steel [Member] | ||||||
Condensed Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ||||||
Net sales | 1,503 | 1,473.6 | ||||
Cost of products sold (exclusive of item shown separately below) | 1,353.4 | 1,258 | ||||
Selling and administrative expenses (exclusive of item shown separately below) | 74.9 | 72.8 | ||||
Depreciation | 43.4 | 47.2 | ||||
Total operating costs | 1,471.7 | 1,378 | ||||
Operating profit (loss) | 31.3 | 95.6 | ||||
Interest expense | 36.4 | 39 | ||||
Pension and OPEB (income) expense | (10) | (18.1) | ||||
Other (income) expense | 1.2 | 11.4 | ||||
Income (loss) before income taxes | 3.7 | 63.3 | ||||
Income tax expense (benefit) | (11.9) | (8.6) | ||||
Equity in net income (loss) of subsidiaries | 14.4 | 13.9 | ||||
Net income | 30 | 85.8 | ||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | ||||
Net income attributable to AK Steel Holding Corporation | 30 | 85.8 | ||||
Other comprehensive income (loss) | (6.7) | (20.1) | ||||
Comprehensive income attributable to AK Steel Holding Corporation | 23.3 | 65.7 | ||||
Current assets: | ||||||
Cash and cash equivalents | 14.5 | 147.9 | 12.7 | 14.5 | 161.1 | 147.9 |
Accounts receivable, net | 499 | 432.4 | ||||
Inventory | 1,202.3 | 1,231.5 | ||||
Other current assets | 89.1 | 124.7 | ||||
Total current assets | 1,803.1 | 1,803.1 | ||||
Property, plant and equipment | 6,019.5 | 6,004 | ||||
Accumulated depreciation | (4,663.8) | (4,620.8) | ||||
Property, plant and equipment, net | 1,355.7 | 1,383.2 | ||||
Investment in subsidiaries | 1,886.9 | 1,844.9 | ||||
Inter-company accounts | 0 | 0 | ||||
Other non-current assets | 60.7 | 66.3 | ||||
TOTAL ASSETS | 5,106.4 | 5,097.5 | ||||
Current liabilities: | ||||||
Accounts payable | 661.7 | 623.3 | ||||
Accrued liabilities | 195.3 | 228.2 | ||||
Current portion of pension and other postretirement benefit obligations | 39.3 | 39.7 | ||||
Total current liabilities | 896.3 | 891.2 | ||||
Non-current liabilities: | ||||||
Long-term debt | 2,103.3 | 2,110.1 | ||||
Pension and other postretirement benefit obligations | 865.7 | 890.8 | ||||
Inter-company accounts | 4,294.5 | 4,199.6 | ||||
Other non-current liabilities | 116.7 | 133.2 | ||||
TOTAL LIABILITIES | 8,276.5 | 8,224.9 | ||||
Equity [Abstract] | ||||||
Total stockholders' equity (deficit) | (3,170.1) | (3,127.4) | ||||
Noncontrolling interests | 0 | 0 | ||||
TOTAL EQUITY | (3,170.1) | (3,127.4) | ||||
TOTAL LIABILITIES AND EQUITY | 5,106.4 | 5,097.5 | ||||
Condensed Consolidated Statements of Cash Flows [Abstract] | ||||||
Net cash flows from operating activities | 45.7 | 16 | ||||
Cash flows from investing activities: | ||||||
Capital investments | (31.4) | (30.6) | ||||
Other investing items, net | 0 | 1.4 | ||||
Net cash flows from investing activities | (31.4) | (29.2) | ||||
Cash flows from financing activities: | ||||||
Net borrowings (payments) under credit facility | (10) | |||||
Proceeds from issuance of long-term debt | 400 | |||||
Redemption of long-term debt | (367.5) | |||||
Debt issuance costs | (7.8) | |||||
Inter-company activity | (6.2) | 1.6 | ||||
SunCoke Middletown distributions to noncontrolling interest owners | 0 | 0 | ||||
Other financing items, net | 0.1 | 0.1 | ||||
Net cash flows from financing activities | (16.1) | 26.4 | ||||
Net increase (decrease) in cash and cash equivalents | (1.8) | 13.2 | ||||
Cash and cash equivalents, beginning of period | 14.5 | 147.9 | ||||
Cash and cash equivalents, end of period | 12.7 | 161.1 | ||||
Guarantor Subsidiaries [Member] | ||||||
Condensed Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ||||||
Net sales | 77.1 | 72.3 | ||||
Cost of products sold (exclusive of item shown separately below) | 54.6 | 46.5 | ||||
Selling and administrative expenses (exclusive of item shown separately below) | 3.6 | 3.2 | ||||
Depreciation | 2 | 2 | ||||
Total operating costs | 60.2 | 51.7 | ||||
Operating profit (loss) | 16.9 | 20.6 | ||||
Interest expense | 0 | 0 | ||||
Pension and OPEB (income) expense | 0 | |||||
Other (income) expense | (3.5) | (2.4) | ||||
Income (loss) before income taxes | 20.4 | 23 | ||||
Income tax expense (benefit) | 5.1 | 8.8 | ||||
Equity in net income (loss) of subsidiaries | 0 | 0 | ||||
Net income | 15.3 | 14.2 | ||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | ||||
Net income attributable to AK Steel Holding Corporation | 15.3 | 14.2 | ||||
Other comprehensive income (loss) | 0 | 0 | ||||
Comprehensive income attributable to AK Steel Holding Corporation | 15.3 | 14.2 | ||||
Current assets: | ||||||
Cash and cash equivalents | 7.2 | 4.4 | 4.1 | 7.2 | 2.6 | 4.4 |
Accounts receivable, net | 38.6 | 33.2 | ||||
Inventory | 57.6 | 55.1 | ||||
Other current assets | 0.1 | 0.2 | ||||
Total current assets | 100.4 | 95.7 | ||||
Property, plant and equipment | 182.3 | 181.5 | ||||
Accumulated depreciation | (96.8) | (94.8) | ||||
Property, plant and equipment, net | 85.5 | 86.7 | ||||
Investment in subsidiaries | 0 | 0 | ||||
Inter-company accounts | 1,565.7 | 1,523.1 | ||||
Other non-current assets | 33.1 | 33 | ||||
TOTAL ASSETS | 1,784.7 | 1,738.5 | ||||
Current liabilities: | ||||||
Accounts payable | 21 | 17.9 | ||||
Accrued liabilities | 6.7 | 7.8 | ||||
Current portion of pension and other postretirement benefit obligations | 0 | 0 | ||||
Total current liabilities | 27.7 | 25.7 | ||||
Non-current liabilities: | ||||||
Long-term debt | 0 | 0 | ||||
Pension and other postretirement benefit obligations | 0 | 0 | ||||
Inter-company accounts | 0 | 0 | ||||
Other non-current liabilities | 0 | 1 | ||||
TOTAL LIABILITIES | 27.7 | 26.7 | ||||
Equity [Abstract] | ||||||
Total stockholders' equity (deficit) | 1,757 | 1,711.8 | ||||
Noncontrolling interests | 0 | 0 | ||||
TOTAL EQUITY | 1,757 | 1,711.8 | ||||
TOTAL LIABILITIES AND EQUITY | 1,784.7 | 1,738.5 | ||||
Condensed Consolidated Statements of Cash Flows [Abstract] | ||||||
Net cash flows from operating activities | 4.8 | 1.1 | ||||
Cash flows from investing activities: | ||||||
Capital investments | (0.9) | (1.4) | ||||
Other investing items, net | 0 | 0 | ||||
Net cash flows from investing activities | (0.9) | (1.4) | ||||
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 | (7) | (1.5) | ||||
SunCoke Middletown distributions to noncontrolling interest owners | 0 | 0 | ||||
Other financing items, net | 0 | 0 | ||||
Net cash flows from financing activities | (7) | (1.5) | ||||
Net increase (decrease) in cash and cash equivalents | (3.1) | (1.8) | ||||
Cash and cash equivalents, beginning of period | 7.2 | 4.4 | ||||
Cash and cash equivalents, end of period | 4.1 | 2.6 | ||||
Other Non-Guarantor Subsidiaries [Member] | ||||||
Condensed Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ||||||
Net sales | 208.7 | 91.4 | ||||
Cost of products sold (exclusive of item shown separately below) | 171.7 | 62.8 | ||||
Selling and administrative expenses (exclusive of item shown separately below) | 8.7 | 5.5 | ||||
Depreciation | 9.5 | 5.9 | ||||
Total operating costs | 189.9 | 74.2 | ||||
Operating profit (loss) | 18.8 | 17.2 | ||||
Interest expense | 1.2 | 0.4 | ||||
Pension and OPEB (income) expense | 0 | |||||
Other (income) expense | (1.6) | (1.2) | ||||
Income (loss) before income taxes | 19.2 | 18 | ||||
Income tax expense (benefit) | 2.4 | 0.7 | ||||
Equity in net income (loss) of subsidiaries | 0 | 0.1 | ||||
Net income | 16.8 | 17.4 | ||||
Less: Net income attributable to noncontrolling interests | 16.1 | 16.2 | ||||
Net income attributable to AK Steel Holding Corporation | 0.7 | 1.2 | ||||
Other comprehensive income (loss) | 1.1 | 0.3 | ||||
Comprehensive income attributable to AK Steel Holding Corporation | 1.8 | 1.5 | ||||
Current assets: | ||||||
Cash and cash equivalents | 16.3 | 20.9 | 27.7 | 16.3 | 22 | 20.9 |
Accounts receivable, net | 103.4 | 65.4 | ||||
Inventory | 86.1 | 108.3 | ||||
Other current assets | 7.2 | 5.4 | ||||
Total current assets | 224.4 | 195.4 | ||||
Property, plant and equipment | 648.9 | 646.3 | ||||
Accumulated depreciation | (139.1) | (130) | ||||
Property, plant and equipment, net | 509.8 | 516.3 | ||||
Investment in subsidiaries | 67.5 | 67.5 | ||||
Inter-company accounts | 0 | 0 | ||||
Other non-current assets | 318.2 | 318.2 | ||||
TOTAL ASSETS | 1,119.9 | 1,097.4 | ||||
Current liabilities: | ||||||
Accounts payable | 50.6 | 50.9 | ||||
Accrued liabilities | 32.1 | 34.5 | ||||
Current portion of pension and other postretirement benefit obligations | 0.4 | 0.4 | ||||
Total current liabilities | 83.1 | 85.8 | ||||
Non-current liabilities: | ||||||
Long-term debt | 0 | 0 | ||||
Pension and other postretirement benefit obligations | 3.5 | 3.4 | ||||
Inter-company accounts | 510.8 | 489.1 | ||||
Other non-current liabilities | 34.2 | 34.7 | ||||
TOTAL LIABILITIES | 631.6 | 613 | ||||
Equity [Abstract] | ||||||
Total stockholders' equity (deficit) | 137.3 | 139.2 | ||||
Noncontrolling interests | 351 | 345.2 | ||||
TOTAL EQUITY | 488.3 | 484.4 | ||||
TOTAL LIABILITIES AND EQUITY | 1,119.9 | 1,097.4 | ||||
Condensed Consolidated Statements of Cash Flows [Abstract] | ||||||
Net cash flows from operating activities | 11.1 | 21.4 | ||||
Cash flows from investing activities: | ||||||
Capital investments | (5.6) | (0.5) | ||||
Other investing items, net | 0 | 0.1 | ||||
Net cash flows from investing activities | (5.6) | (0.4) | ||||
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 | 16.2 | (4.8) | ||||
SunCoke Middletown distributions to noncontrolling interest owners | (10.3) | (15.1) | ||||
Other financing items, net | 0 | 0 | ||||
Net cash flows from financing activities | 5.9 | (19.9) | ||||
Net increase (decrease) in cash and cash equivalents | 11.4 | 1.1 | ||||
Cash and cash equivalents, beginning of period | 16.3 | 20.9 | ||||
Cash and cash equivalents, end of period | 27.7 | 22 | ||||
Consolidation, Eliminations [Member] | ||||||
Condensed Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ||||||
Net sales | (129.9) | (103.9) | ||||
Cost of products sold (exclusive of item shown separately below) | (116) | (90.4) | ||||
Selling and administrative expenses (exclusive of item shown separately below) | (11.8) | (11.2) | ||||
Depreciation | 0 | 0 | ||||
Total operating costs | (127.8) | (101.6) | ||||
Operating profit (loss) | (2.1) | (2.3) | ||||
Interest expense | 0 | 0 | ||||
Pension and OPEB (income) expense | 0 | |||||
Other (income) expense | 0 | 0 | ||||
Income (loss) before income taxes | (2.1) | (2.3) | ||||
Income tax expense (benefit) | (0.5) | (0.9) | ||||
Equity in net income (loss) of subsidiaries | (44.4) | (99.8) | ||||
Net income | (46) | (101.2) | ||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | ||||
Net income attributable to AK Steel Holding Corporation | (46) | (101.2) | ||||
Other comprehensive income (loss) | 5.6 | 19.8 | ||||
Comprehensive income attributable to AK Steel Holding Corporation | (40.4) | (81.4) | ||||
Current assets: | ||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | $ 0 | $ 0 |
Accounts receivable, net | (21.2) | (13.2) | ||||
Inventory | (12) | (9.9) | ||||
Other current assets | 0 | 0 | ||||
Total current assets | (33.2) | (23.1) | ||||
Property, plant and equipment | 0 | 0 | ||||
Accumulated depreciation | 0 | 0 | ||||
Property, plant and equipment, net | 0 | 0 | ||||
Investment in subsidiaries | 1,215.7 | 1,215 | ||||
Inter-company accounts | (4,716.7) | (4,605.9) | ||||
Other non-current assets | 0 | 0 | ||||
TOTAL ASSETS | (3,534.2) | (3,414) | ||||
Current liabilities: | ||||||
Accounts payable | (4.7) | (1.7) | ||||
Accrued liabilities | 0 | 0 | ||||
Current portion of pension and other postretirement benefit obligations | 0 | 0 | ||||
Total current liabilities | (4.7) | (1.7) | ||||
Non-current liabilities: | ||||||
Long-term debt | 0 | 0 | ||||
Pension and other postretirement benefit obligations | 0 | 0 | ||||
Inter-company accounts | (4,805.3) | (4,688.7) | ||||
Other non-current liabilities | 0 | 0 | ||||
TOTAL LIABILITIES | (4,810) | (4,690.4) | ||||
Equity [Abstract] | ||||||
Total stockholders' equity (deficit) | 1,275.8 | 1,276.4 | ||||
Noncontrolling interests | 0 | 0 | ||||
TOTAL EQUITY | 1,275.8 | 1,276.4 | ||||
TOTAL LIABILITIES AND EQUITY | $ (3,534.2) | $ (3,414) | ||||
Condensed Consolidated Statements of Cash Flows [Abstract] | ||||||
Net cash flows from operating activities | 5 | (1.1) | ||||
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 | (5) | 1.1 | ||||
SunCoke Middletown distributions to noncontrolling interest owners | 0 | 0 | ||||
Other financing items, net | 0 | 0 | ||||
Net cash flows from financing activities | (5) | 1.1 | ||||
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 |