Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 14, 2019 | Jun. 30, 2018 | |
Document Information [Line Items] | |||
Entity Registrant Name | CENTURY ALUMINUM CO | ||
Entity Central Index Key | 949,157 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 782 | ||
Entity Common Stock, Shares Outstanding | 88,103,440 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | [1] | Dec. 31, 2016 | ||
NET SALES: | |||||||||||||
Related parties | $ 1,204.5 | $ 1,198.1 | $ 1,178.6 | ||||||||||
Other customers | 688.7 | 391 | 140.5 | ||||||||||
Total net sales | $ 486.9 | $ 481.8 | $ 470 | $ 454.5 | $ 433.9 | $ 400.6 | $ 388.8 | $ 365.8 | 1,893.2 | 1,589.1 | 1,319.1 | ||
Cost of goods sold | 1,916.1 | 1,457.8 | 1,325.2 | ||||||||||
Gross profit (loss) | (59.3) | (11.8) | 33.7 | 14.5 | 47.9 | 41.4 | 22.5 | 16.8 | (22.9) | 131.3 | (6.1) | ||
Selling, general and administrative expenses | 40.2 | 44.8 | 38.9 | ||||||||||
Helguvik (gains) losses | (4.5) | (7.3) | [2] | 152.2 | [2] | ||||||||
Ravenswood (gains) losses | 0 | (5.5) | 26.8 | ||||||||||
Other operating expense - net | 0.4 | 2.1 | 3.9 | ||||||||||
Operating income (loss) | (59) | 97.2 | (227.9) | ||||||||||
Interest expense | (22.4) | (22.2) | (22.2) | ||||||||||
Interest income | 1.5 | 1.4 | 0.8 | ||||||||||
Net gain (loss) on forward and derivative contracts | (16.1) | 6.3 | (16.5) | 3.5 | |||||||||
Other income (expense) - net | 3 | (4.5) | (5.1) | ||||||||||
Income (loss) before income taxes and equity in earnings of joint ventures | (70.6) | 55.4 | (250.9) | ||||||||||
Income tax benefit (expense) | 0.2 | (7.6) | (2.8) | ||||||||||
Income (loss) before equity in earnings of joint ventures | (70.4) | 47.8 | (253.7) | ||||||||||
Equity in earnings of joint ventures | 4.2 | 0.8 | 1.3 | ||||||||||
Net income (loss) | $ (65) | $ (20.3) | $ 19.4 | $ (0.3) | $ 35.8 | $ 20.8 | $ 7.1 | $ (15.1) | $ (66.2) | $ 48.6 | [2] | $ (252.4) | [2] |
INCOME (LOSS) PER COMMON SHARE: | |||||||||||||
Basic (in dollars per share) | $ (0.74) | $ (0.23) | $ 0.20 | $ 0 | $ 0.38 | $ 0.22 | $ 0.08 | $ (0.17) | $ (0.76) | $ 0.51 | $ (2.90) | ||
Diluted (in dollars per share) | $ (0.74) | $ (0.23) | $ 0.20 | $ 0 | $ 0.37 | $ 0.22 | $ 0.07 | $ (0.17) | $ (0.76) | $ 0.51 | $ (2.90) | ||
[1] | As adjusted due to the adoption of ASU 2017-07 Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost | ||||||||||||
[2] | As adjusted due to the adoption of ASU 2016-18 "Statement of Cash Flows (Topic 230) Restricted Cash." |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Statement of Comprehensive Income [Abstract] | |||||
Net income (loss) | $ (66.2) | $ 48.6 | [1],[2] | $ (252.4) | [1] |
Other comprehensive income (loss) before income tax effect: | |||||
Net income (loss) on foreign currency cash flow hedges reclassified as income | (0.2) | (0.2) | 4.3 | ||
Defined benefit plans and other postretirement benefits: | |||||
Net gain (loss) arising during the period | (6.8) | (7.2) | (9.5) | ||
Prior service benefit (cost) arising during the period | (0.6) | 27.4 | 0 | ||
Amortization of prior service benefit (cost) during the period | (7.1) | (4.9) | (2.7) | ||
Amortization of net gain (loss) during the period | 9.2 | 8.6 | 8.2 | ||
Other comprehensive income (loss) before income tax effect | (5.5) | 23.7 | 0.3 | ||
Income tax effect | (1.5) | (1.5) | (1.5) | ||
Other comprehensive income (loss) | (7) | 22.2 | (1.2) | ||
Total comprehensive income (loss) | $ (73.2) | $ 70.8 | $ (253.6) | ||
[1] | As adjusted due to the adoption of ASU 2016-18 "Statement of Cash Flows (Topic 230) Restricted Cash." | ||||
[2] | As adjusted due to the adoption of ASU 2017-07 Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 38,900,000 | $ 167,200,000 |
Restricted cash | 800,000 | 800,000 |
Accounts receivable - net | 82,500,000 | 43,100,000 |
Due from affiliates | 22,700,000 | 10,400,000 |
Inventories | 343,800,000 | 317,500,000 |
Prepaid and other current assets | 18,000,000 | 14,700,000 |
Total current assets | 506,700,000 | 553,700,000 |
Property, plant and equipment - net | 967,300,000 | 971,900,000 |
Other assets | 63,500,000 | 56,000,000 |
TOTAL | 1,537,500,000 | 1,581,600,000 |
LIABILITIES: | ||
Accounts payable, trade | 119,400,000 | 89,900,000 |
Due to affiliates | 10,300,000 | 20,400,000 |
Accrued and other current liabilities | 52,500,000 | 61,400,000 |
Accrued employee benefits costs | 11,000,000 | 11,000,000 |
Revolving credit facility | 23,300,000 | 0 |
Industrial revenue bonds | 7,800,000 | 7,800,000 |
Total current liabilities | 224,300,000 | 190,500,000 |
Senior notes payable | 248,600,000 | 248,200,000 |
Accrued pension benefits costs - less current portion | 50,900,000 | 38,900,000 |
Accrued postretirement benefits costs - less current portion | 101,200,000 | 113,000,000 |
Other liabilities | 46,000,000 | 57,900,000 |
Deferred taxes | 104,300,000 | 103,500,000 |
Total noncurrent liabilities | 551,000,000 | 561,500,000 |
COMMITMENTS AND CONTINGENCIES | 0 | 0 |
SHAREHOLDERS’ EQUITY: | ||
Preferred stock | 0 | 0 |
Common stock | 1,000,000 | 900,000 |
Additional paid-in capital | 2,523,000,000 | 2,517,400,000 |
Treasury stock, at cost | (86,300,000) | (86,300,000) |
Accumulated other comprehensive loss | (98,700,000) | (91,700,000) |
Accumulated deficit | (1,576,800,000) | (1,510,700,000) |
Total shareholders’ equity | 762,200,000 | 829,600,000 |
TOTAL | $ 1,537,500,000 | $ 1,581,600,000 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Preferred stock [Member] | Common stock [Member] | Additional paid-in capital [Member] | Treasury stock, at cost [Member] | Accumulated other comprehensive loss [Member] | Accumulated deficit [Member] | |
Balance, start at Dec. 31, 2015 | $ 1,008.8 | $ 0 | $ 0.9 | $ 2,513.6 | $ (86.3) | $ (112.7) | $ (1,306.8) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (252.4) | [1] | (252.4) | |||||
Other comprehensive income (loss) | (1.2) | (1.2) | ||||||
Share-based compensation | 1.5 | 1.5 | ||||||
Conversion of preferred stock to common stock | 0 | 0 | 0 | |||||
Balance, end at Dec. 31, 2016 | 756.7 | 0 | 0.9 | 2,515.1 | (86.3) | (113.9) | (1,559.3) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 48.6 | [1],[2] | 48.6 | |||||
Other comprehensive income (loss) | 22.2 | 22.2 | ||||||
Share-based compensation | 2.3 | 0 | 2.3 | |||||
Conversion of preferred stock to common stock | 0 | 0 | 0 | |||||
Balance, end at Dec. 31, 2017 | 829.6 | 0 | 0.9 | 2,517.4 | (86.3) | (91.7) | (1,510.7) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (66.2) | (66.2) | ||||||
Other comprehensive income (loss) | (7) | (7) | ||||||
Share-based compensation | 5.7 | 0.1 | 5.6 | |||||
Conversion of preferred stock to common stock | 0 | 0 | 0 | |||||
Balance, end at Dec. 31, 2018 | $ 762.2 | $ 0 | $ 1 | $ 2,523 | $ (86.3) | $ (98.7) | $ (1,576.8) | |
[1] | As adjusted due to the adoption of ASU 2016-18 "Statement of Cash Flows (Topic 230) Restricted Cash." | |||||||
[2] | As adjusted due to the adoption of ASU 2017-07 Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net income (loss) | $ (66.2) | $ 48.6 | [1],[2] | $ (252.4) | [1] | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||
Lower of cost or NRV inventory adjustment | 36.5 | (1.1) | [1] | (0.7) | [1] | |
Unrealized (gains) on forward and derivative contracts | (6.5) | 0 | [1] | 0 | [1] | |
Depreciation and amortization | 90.1 | 84.2 | [1] | 84.8 | [1] | |
Helguvik (gains) losses | (4.5) | (7.3) | [1],[2] | 152.2 | [1] | |
Ravenswood (gains) losses | 0 | (5.5) | [1] | 3.8 | [1] | |
Other non-cash items - net | (13.2) | (6.7) | [1] | 1.8 | [1] | |
Change in operating assets and liabilities: | ||||||
Accounts receivable - net | (39.4) | (30.6) | [1] | (3) | [1] | |
Due from affiliates | (12.4) | 6.3 | [1] | 0.8 | [1] | |
Inventories | (62.8) | (67.5) | [1] | 0.9 | [1] | |
Prepaid and other current assets | (0.9) | 7.8 | [1] | 18.3 | [1] | |
Accounts payable, trade | 30.5 | 4.7 | [1] | 2.3 | [1] | |
Due to affiliates | (10.1) | 4.8 | [1] | 7.2 | [1] | |
Accrued and other current liabilities | (11.1) | 14.5 | [1] | (3.9) | [1] | |
Ravenswood retiree legal settlement | (2) | (5) | [1] | 23 | [1] | |
Other - net | 2.9 | 4.3 | [1] | 3.1 | [1] | |
Net cash provided by (used in) operating activities | (69.1) | 51.5 | [1] | 38.2 | [1] | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Purchase of property, plant and equipment | (83) | (31.8) | [1] | (21.9) | [1] | |
Proceeds from sale of property, plant and equipment | 0.1 | 14.4 | [1] | 1 | [1] | |
Net cash (used in) investing activities | (82.9) | (17.4) | [1] | (20.9) | [1] | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Borrowings under revolving credit facilities | 120.1 | 1.3 | [1] | 1.2 | [1] | |
Repayments under revolving credit facilities | (96.8) | (1.3) | [1] | (1.2) | [1] | |
Issuance of common stock | 0.4 | 0.4 | [1] | 0 | [1] | |
Net cash provided by financing activities | 23.7 | 0.4 | [1] | 0 | [1] | |
CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (128.3) | 34.5 | [1] | 17.3 | [1] | |
Cash, cash equivalents and restricted cash, beginning of year | [1] | 168 | 133.5 | 116.2 | ||
Cash, cash equivalents and restricted cash, end of year | 39.7 | 168 | [1] | 133.5 | [1] | |
Supplemental Cash Flow Information: | ||||||
Interest | 19.7 | 19.5 | [1] | 19.5 | [1] | |
Taxes | 13.1 | 5.6 | [1] | 13.9 | [1] | |
Capital expenditures | $ 8 | $ 0.6 | [1] | $ 3 | [1] | |
[1] | As adjusted due to the adoption of ASU 2016-18 "Statement of Cash Flows (Topic 230) Restricted Cash." | |||||
[2] | As adjusted due to the adoption of ASU 2017-07 Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Organization — Century Aluminum Company ("Century Aluminum," "Century," the "Company", "we", "us", "our" or "ours") is a holding company, whose principal subsidiaries are Century Kentucky, Inc. (together with its subsidiaries, "CAKY"), Nordural ehf ("Nordural"), Century Aluminum Sebree LLC ("Century Sebree") and Century Aluminum of South Carolina ("CASC"). CAKY operates a primary aluminum reduction facility in Hawesville, Kentucky ("Hawesville"). Nordural Grundartangi ehf, a subsidiary of Nordural, operates a primary aluminum reduction facility in Grundartangi, Iceland ("Grundartangi"). Century Sebree operates a primary aluminum reduction facility in Robards, Kentucky ("Sebree"). CASC operates a primary aluminum reduction facility in Goose Creek, South Carolina ("Mt. Holly"). Nordural Helguvik ehf, a subsidiary of Nordural, owns a greenfield primary aluminum project in Helguvik, Iceland ("Helguvik" or the "Helguvik project"), construction of which is currently curtailed. In addition to our primary aluminum assets, our subsidiary, Century Vlissingen, owns and operates a carbon anode production facility located in Vlissingen, the Netherlands ("Vlissingen"). We also own a 40% stake in Baise Haohai Carbon Co., Ltd. ("BHH"), a joint venture that owns and operates a carbon anode and cathode facility located in the Guangxi Zhuang Autonomous Region of south China. Carbon anodes are used in the production of primary aluminum and both BHH and Vlissingen currently supply carbon anodes to Grundartangi. As of December 31, 2018 , Glencore owns 42.9% of Century’s outstanding common stock ( 47.2% on a fully-diluted basis assuming the conversion of all of the Series A Convertible Preferred Stock) and all of our outstanding Series A Convertible Preferred stock. See Note 7. Shareholders' Equity for a full description of our outstanding Series A Convertible Preferred stock. From time to time Century and Glencore enter into various transactions for the purchase and sale of primary aluminum, purchase and sale of alumina, tolling agreements and certain forward financial contracts. See Note 2. Related Party Transactions . Basis of Presentation — The consolidated financial statements include the accounts of Century Aluminum Company and our subsidiaries, after elimination of all intercompany transactions and accounts. Our interest in the BHH joint venture is accounted for under the equity method on a one-quarter lag. The consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue recognition — See Note 3. Revenue . Cash and Cash Equivalents — Cash and cash equivalents are comprised of cash, money market funds and short-term investments having original maturities of three months or less. The carrying amount of cash equivalents approximates fair value. Accounts Receivable and Due from Affiliates — These amounts are net of an allowance for uncollectible accounts and credit memos of $ 1.0 at December 31, 2018 and 2017 . Inventories — Our inventories are stated at the lower of cost or net realizable value, using the first-in, first-out ("FIFO") and the weighted average cost method. Due to the nature of our business, our inventory values are subject to market price changes and these changes can have a significant impact on cost of goods sold and gross profit in any period. Reductions in net realizable value below cost basis at the end of a period will have an impact on our cost of goods sold as this inventory is sold in subsequent periods. Property, Plant and Equipment — Property, plant and equipment is stated at cost. Additions and improvements are capitalized. Asset and accumulated depreciation accounts are relieved for dispositions with resulting gains or losses included in Other income (expense) – net . Maintenance and repairs are expensed as incurred. Depreciation of plant and equipment is provided for by the straight-line method over the following estimated useful lives: Building and improvements 10 to 45 years Machinery and equipment 5 to 35 years Technology and software 3 to 7 years During 2018, we began restarting the curtailed capacity at our Hawesville facility, which may ultimately involve rebuilding all five potlines. The nature, size and scope of this effort represents a discrete construction project. All associated costs that meet the capitalization criteria will be capitalized as a component of property, plant and equipment. Impairment of long-lived assets — We evaluate our property, plant and equipment for potential impairment whenever events or circumstances indicate that the carrying amount of these assets may not be recoverable. If deemed unrecoverable, an impairment loss would be recognized for the amount by which the carrying amount exceeds the fair value of the assets. Impairment evaluation and fair value is based on estimates and assumptions that take into account our business plans and a long-term investment horizon. See Note 4. Helguvik and Ravenswood Gains and (Losses) for impairment losses recognized in 2016. Income Taxes — We account for income taxes using the asset and liability method, whereby deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. In evaluating our ability to realize deferred tax assets, we use judgment to determine if it is more likely than not that some portion or all of a deferred tax asset will not be realized, and if a corresponding valuation allowance is required. Defined Benefit Pension and Other Postretirement Benefits — We sponsor defined benefit pension and OPEB plans for certain of our domestic hourly and salaried employees and a supplemental executive retirement benefit plan for certain current and former executive officers. Plan assets and obligations are measured annually or more frequently if there is a re-measurement event, based on the Company’s measurement date utilizing various actuarial assumptions. We attribute the service costs for the plans over the working lives of plan participants. The effects of actual results differing from our assumptions and the effects of changing assumptions are considered actuarial gains or losses. Actuarial gains or losses are recorded in Accumulated Other Comprehensive Income (Loss). We contribute to our defined benefit pension plans based upon actuarial and economic assumptions designed to achieve adequate funding of the projected benefit obligations and to meet the minimum funding requirements. Postemployment Benefits — We provide certain postemployment benefits to certain former and inactive employees and their dependents during the period following employment, but before retirement. These benefits include salary continuance, supplemental unemployment and disability healthcare. We recognize the estimated future cost of providing postemployment benefits on an accrual basis over the active service life of the employee. Derivative and Hedging — As a global producer of primary aluminum, our operating results and cash flows from operations are subject to risk of fluctuations in the market prices of primary aluminum. We may from time to time enter into financial contracts to manage our exposure to such risk. Derivative instruments may consist of variable to fixed financial contracts and back-to-back fixed to floating arrangements for a portion of our sale of primary aluminum, where we receive fixed and pay floating prices from our customers and to counterparties, respectively. These derivatives are not designated as cash flow hedges. Derivative and hedging instruments are recorded in prepaid and other current assets, other assets, accrued and other current liabilities and other long term liabilities in the consolidated balance sheets at fair value. We value our derivative and hedging instruments using quoted market prices and other significant unobservable inputs. We recognize changes in fair value and settlements of derivative instruments in net gain (loss) on forward and derivative contracts in the consolidated statements of operations as they occur. Foreign Currency – We are exposed to foreign currency risk due to fluctuations in the value of the U.S. dollar as compared to the euro, the Icelandic krona ("ISK") and the Chinese renminbi. Grundartangi and Vlissingen use the U.S. dollar as their functional currency, as contracts for sales and purchases of alumina and power are denominated in U.S. dollar. BHH uses the renminbi as its functional currency. Transactions denominated in currencies other than the functional currency are recorded based on exchange rates at the time such transactions arise and any transaction gains and losses are reflected in Other income (expense) – net in the consolidated statements of operations. Financial Instruments — Receivables, certain life insurance policies, payables, borrowings under revolving credit facilities and debt related to industrial revenue bonds ("IRBs") are carried at amounts that approximate fair value. Earnings per share — Basic earnings (loss) per share ("EPS") amounts are calculated by dividing earnings (loss) available to common stockholders by the weighted average number of common shares outstanding. Diluted EPS amounts assume the issuance of common stock for all potentially dilutive common shares outstanding. Because our capital structure consists of common stock and participating convertible preferred stock, we use the two-class method to calculate basic EPS, and incorporate the use of such method to determine diluted EPS. Our Series A Convertible Preferred Stock is a non-cumulative perpetual participating convertible preferred stock with no set dividend preferences. In periods where we report net losses, we do not allocate these losses to the convertible preferred stock for the computation of basic or diluted EPS. Asset Retirement Obligations — We are subject to environmental regulations which create certain legal obligations related to the normal operations of our domestic primary aluminum smelter operations. Our asset retirement obligations ("AROs") consist primarily of costs associated with the disposal of spent potliner used in the reduction cells of our domestic facilities. AROs are recorded on a discounted basis at the time the obligation is incurred (when the potliner is put in service) and accreted over time for the change in the present value of the liability. We capitalize the asset retirement costs by increasing the carrying amount of the related long-lived assets and depreciating these assets over their remaining useful lives. Certain conditional asset retirement obligations ("CAROs") relate to the remediation of our primary aluminum facilities for hazardous material, such as landfill materials and asbestos which have not been recorded because they have an indeterminate settlement date. CAROs are a legal obligation to perform an asset retirement activity in which the timing and (or) method of settlement are conditional on a future event that may or may not be within our control. Concentrations of Credit Risk — Financial instruments, which potentially expose us to concentrations of credit risk, consist principally of trade receivables. Our limited customer base increases our concentrations of credit risk with respect to trade receivables. We routinely assess the financial strength of our customers and collectability of our trade receivables. Share-Based Compensation — We measure the cost of employee services received in exchange for an award of equity instruments based on the fair value of the award on the grant date. We recognize the cost over the period during which an employee is required to provide service in exchange for the award. We issue shares to satisfy the requirements of our share-based compensation plans. At this time, we do not plan to issue treasury shares to support our share-based compensation plans, but we may in the future. We award performance units to certain officers and employees. The performance units may be settled in cash or common stock at the discretion of the Board. We have not issued any stock options since 2009. Recently Issued Accounting Standards In March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-07 Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-07”) which requires an entity to report the service cost component of pension cost and postretirement benefit cost as compensation expense during the employee's service period. The other components of net periodic pension benefit costs and post retirement benefit costs will be presented outside a subtotal of income from operations. Prior to the adoption of ASU 2017-07, pension and OPEB costs were reported as cost of goods sold and selling, general and administrative expenses on the Company's consolidated statements of operations. The Company adopted ASU 2017-07 during 2018, which resulted in the retrospective reclassification of $3.3 million and $6.2 million from operating income (loss) to other income (expense) - net on the consolidated statements of operations for the years ended December 31, 2017 and 2016, respectively. In November 2016, the FASB issued ASU 2016-18 "Statement of Cash Flows (Topic 230) Restricted Cash." The Company adopted ASU 2016-18 during 2018. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. In February 2016, the FASB” issued ASU 2016-02, “Leases (Topic 842)” which supersedes the existing guidance on accounting for leases in “Leases (Topic 840)”. The objective of ASU 2016-02 is to provide enhanced transparency and comparability among organizations by, among other things, recognizing right-of-use assets and lease liabilities on the balance sheet for all leases other than those that meet the definition of short-term leases and disclosing qualitative and quantitative information about lease arrangements. ASU 2016-02 is effective for Century beginning January 1, 2019 and will be adopted using a modified retrospective approach. Through December 31, 2018, we have completed our review of our 2018 leases and contractual agreements that fall within the scope of ASU 2016-02. Based on our assessment completed to date, we expect the adoption of ASU 2016-02 will impact the balance sheet with the addition of right-to-use assets and corresponding lease liabilities in the range of $20.0 million to $26.0 million for the Company’s operating leases as defined under previous accounting guidance. We do not anticipate the adoption of this standard to have any impact on our cash flows. The Company will elect the package of practical expedients on adoption, which will retain the lease identification, classification and initial direct costs for leases that commenced prior to the adoption date. Additionally, the Company will elect the recognition exemption which allows the Company to not recognize lease assets and lease liabilities on the Consolidated Balance Sheet for leases with an initial term of 12 months or less and to not separate associated lease and non-lease components within a contract as permitted by the standards. In conjunction with the aforementioned implementation activities, we have continued enhancing our internal processes and controls to capture arrangements that are likely to be in scope of the standard upon and post adoption. We continue to monitor modifications, clarifications and interpretations undertaken by the FASB and the SEC and changes in our business and new arrangements, which may impact our current conclusions. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The significant related party transactions occurring during the years ended December 31, 2018 , 2017 and 2016 are described below. We believe all of our transactions with Glencore and BHH were at prices that approximate market. Glencore ownership As of December 31, 2018 , Glencore plc and its affiliates (together "Glencore") beneficially owned 42.9% of Century’s outstanding common stock ( 47.2% on a fully-diluted basis assuming the conversion of all of the Series A Convertible Preferred Stock) and all of our outstanding Series A Convertible Preferred stock. See Note 7. Shareholders' Equity for a full description of our outstanding Series A Convertible Preferred stock. From time to time Century and Glencore enter into various transactions for the purchase and sale of primary aluminum, purchase of alumina, tolling agreements and certain forward financial contracts. Sales to Glencore For the year ended December 31, 2018 , we derived approximately 64% of our consolidated sales from Glencore. Glencore purchases the aluminum we produce for resale. Glencore purchases aluminum produced at our North American smelters at prices based on the LME plus the Midwest regional premium and any additional negotiated product premiums. Glencore purchases aluminum produced at our Grundartangi, Iceland smelter at prices based on the LME plus the European Duty Paid premium and any applicable product premiums. In 2016, we were party to a tolling arrangement with Glencore that provided for delivery of primary aluminum produced at Grundartangi. We received tolling fees from Glencore under this tolling agreement based on the LME price for primary aluminum plus a portion of the European Duty Paid premium. Purchases from Glencore We purchase a portion of our alumina requirements from Glencore. Alumina purchases from Glencore during 2018 were priced based on a published alumina index. Transactions with BHH We own a 40% stake in BHH and have an agreement to purchase carbon anodes from them for use in our manufacturing operations. We have begun a project to rebuild one of our baking furnaces at Vlissingen, which is expected to increase annual carbon anode production capacity by an additional 12,000 tonnes per year. The rebuilt baking furnace is expected to be operational before the end of 2019. We expect to meet the requirement of carbon anodes at Grundartangi through Vlissingen and BHH. Summary A summary of the aforementioned significant related party transactions for the years ended December 31, 2018 , 2017 and 2016 is as follows: Year Ended December 31, 2018 2017 2016 Net sales to Glencore $ 1,204.5 $ 1,198.1 $ 1,178.6 Purchases from Glencore 319.6 253.0 231.9 Purchases from BHH 28.4 15.8 10.1 |
Revenue Revenue
Revenue Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue On January 1, 2018, we adopted ASC 606, “Revenue from Contracts with Customers” and the related amendments (“ASC 606”) to contracts not completed as of the adoption date using the modified retrospective method. Accordingly, the comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The cumulative effect of initially applying this standard was zero. The adoption of ASC 606 did not result in a change to the amount or timing of our revenue recognition. We disaggregate our revenue by geographical region as follows: Year ended December 31, Net Sales 2018 2017 2016 United States $ 1,138.6 $ 938.4 $ 808.9 Iceland 754.6 650.7 510.2 Total $ 1,893.2 $ 1,589.1 $ 1,319.1 We enter into contracts to sell primary aluminum to our customers. Revenue is recognized when our performance obligations with our customer are satisfied. Our obligations under the contracts are satisfied when we transfer control of our primary aluminum to our customer which is generally upon shipment or delivery to customer directed locations. The amount of consideration we receive, thus the revenue we recognize, is a function of volume delivered, market price of primary aluminum, as determined on the LME, plus regional premiums and any value-added product premiums. The payment terms and conditions in our contracts vary and are not significant to our revenue. We complete an appropriate credit evaluation for each customer at contract inception. Customer payments are due in arrears and are recognized as accounts receivable - net and due from affiliates in our consolidated balance sheets. Accounts receivable - net increased $ 39.4 million from December 31, 2017 to December 31, 2018, driven primarily by the increase in direct sales to end users with longer payment terms than our related party customer. In connection with our sales agreement with Glencore, we invoice Glencore prior to physical shipment of goods for substantially all production generated from each of our U.S. domestic smelters. For those sales, revenue is recognized only when Glencore has specifically requested such treatment and has made a commitment to purchase the product. The goods must be complete, ready for shipment and separated from other inventory with control over the goods passing to Glencore. We must retain no further performance obligations. |
Helguvik and Ravenswood Gains a
Helguvik and Ravenswood Gains and (Losses) | 12 Months Ended |
Dec. 31, 2018 | |
Asset Impairment Charges [Abstract] | |
Helguvik and Ravenswood Gains and (Losses) | Helguvik and Ravenswood Gains and (Losses) Helguvik In November 2016, the arbitration panel in the proceedings between Nordural Helguvik ehf and HS concluded that our agreement with HS was no longer in force. We determined that the lack of a power agreement for the entirety of the project requirements represented an indicator of impairment associated with the Helguvik project. Our analysis of the project indicated the undiscounted cash flows did not exceed the carrying value of the Helguvik project. Discounted cash flows were utilized to reduce the carrying value of the Helguvik project to fair value. We considered future development plans for the project, the lack of a power agreement for the entirety of the project requirements and long-term forward prices of LME and European Duty Paid premium along with alumina and power costs. As a result, we recorded an impairment loss of $152.2 million representing the net book value of the Helguvik project as of December 31, 2016. During 2018 and 2017, we extinguished our contractual commitments associated with the construction of the Helguvik project. Such extinguishment resulted in gains of $4.5 million and $7.3 million recognized in Helguvik (gains) losses in the consolidated statements of operations for the years ended December 31, 2018 and 2017, respectively. Ravenswood In July 2015, we announced the permanent closure of our Ravenswood, West Virginia aluminum smelter ("Ravenswood"). Ravenswood had been idled since February 2009. The decision to permanently close Ravenswood was based on the inability to secure a competitive power contract for the smelter, compounded by challenging aluminum market conditions largely driven by increased exports of aluminum from China. In June 2015, we recorded an impairment charge of $30.9 million to write down the asset values related to Ravenswood. Based on an asset purchase agreement for the sale of assets entered into in 2016, we recorded an additional impairment charge of $3.8 million , included in Ravenswood (gains) losses in the consolidated statements of operations for the year ended December 31, 2016. In January 2017, we completed our sale of the Ravenswood facility for $13.6 million in net proceeds from the buyer. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We measure certain of our assets and liabilities at fair value. Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In general, reporting entities should apply valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. Observable inputs are developed using market data and reflect assumptions that market participants would use when pricing the asset or liability. Unobservable inputs are developed using the best information available about the assumptions that market participants would use when pricing the asset or liability. The fair value hierarchy provides transparency regarding the inputs we use to measure fair value. We categorize each fair value measurement in its entirety into the following three levels, based on the lowest level input that is significant to the entire measurement: • Level 1 Inputs – quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. • Level 2 Inputs – inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. • Level 3 Inputs – unobservable inputs for the asset or liability. Recurring Fair Value Measurements As of December 31, 2018 Level 1 Level 2 Level 3 Total ASSETS: Cash equivalents $ 7.5 $ — $ — $ 7.5 Trust assets (1) 0.1 — — 0.1 Surety bonds 2.1 — — 2.1 Derivative instruments — 3.2 5.0 8.2 TOTAL $ 9.7 $ 3.2 $ 5.0 $ 17.9 LIABILITIES: Contingent obligation – net (2) $ — $ — $ — $ — Derivative instruments — 2.0 0.5 2.5 TOTAL $ — $ 2.0 $ 0.5 $ 2.5 Recurring Fair Value Measurements As of December 31, 2017 Level 1 Level 2 Level 3 Total ASSETS: Cash equivalents $ 142.8 $ — $ — $ 142.8 Trust assets (1) 1.8 — — 1.8 Surety bonds 1.6 — — 1.6 Derivative instruments — — 1.7 1.7 TOTAL $ 146.2 $ — $ 1.7 $ 147.9 LIABILITIES: Contingent obligation – net (2) $ — $ — $ — $ — Derivative instruments — — 1.2 1.2 TOTAL $ — $ — $ 1.2 $ 1.2 (1) Trust assets are currently invested in money market funds. These trust assets are held to fund the non-qualified supplemental executive pension benefit obligations for certain of our officers. (2) See Note 6 Debt for additional information about the contingent obligation. The following section describes the valuation techniques and inputs used for fair value measurements categorized within Level 2 or Level 3 of the fair value hierarchy: Level 2 and Level 3 Fair Value Measurements: Asset / Liability Level Valuation Techniques Inputs LME forward financial sales contracts 3 Discounted cash flows Quoted LME forward market, discount rate MWP forward financial sales contracts 2 Discounted cash flows Quoted MWP forward market Fixed for floating swaps 2 Discounted cash flows Quoted LME forward market, quoted MWP forward market Power price swaps 3 Discounted cash flows Quoted Nordpool forward market, discount rate FX swaps 3 Discounted cash flows Euro/USD forward exchange rate, discount rate Contingent obligation 3 Discounted cash flows Quoted LME forward market, management's estimates of the LME forward market prices for periods beyond the quoted periods, management's estimates of future level of operations |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt December 31, 2018 2017 Debt classified as current liabilities: Hancock County industrial revenue bonds ("IRBs") due April 2028, interest payable quarterly (variable interest rates (not to exceed 12%)) (1) $ 7.8 $ 7.8 U.S. Revolving Credit Facility (2) 23.3 — Debt classified as non-current liabilities: 7.5% senior secured notes due June 2021, net of debt discount of $1.4 million and $1.8 million, respectively, interest payable semiannually 248.6 248.2 Total $ 279.7 $ 256.0 (1) The IRBs are classified as current liabilities because they are remarketed weekly and could be required to be repaid upon demand if there is a failed remarketing. The IRB interest rate at December 31, 2018 was 1.90% . (2) The U.S. revolving credit facility is classified as a current liability because we repay amounts outstanding and re-borrow funds based on our working capital requirements. For borrowings that we expect to repay within a month, we generally elect to incur interest at a base rate plus applicable margin as defined within the agreement. The interest rate at December 31, 2018 was 5.75% . U.S. Revolving Credit Facility General . We and certain of our direct and indirect domestic subsidiaries have a senior secured revolving credit facility with a syndicate of lenders (the "U.S. revolving credit facility"). The U.S. revolving credit facility provides for borrowings of up to $175.0 million in the aggregate, including up to $110.0 million under a letter of credit sub-facility, and also includes an uncommitted accordion feature whereby borrowers may increase the capacity of the U.S. revolving credit facility by up to $50.0 million , subject to agreement with the lenders. The U.S. revolving credit facility matures on the sooner of May 2023 or six months before the stated maturity of our outstanding senior secured notes. Any letters of credit issued and outstanding under the U.S. revolving credit facility reduce our borrowing availability on a dollar-for-dollar basis. At December 31, 2018 , there were $23.3 million in outstanding borrowings under our U.S. revolving credit facility. Principal payments, if any, are due upon maturity of the U.S. revolving credit facility. Status of our U.S. revolving credit facility: December 31, 2018 Credit facility maximum amount $ 175.0 Borrowing availability 175.0 Outstanding letters of credit issued 44.8 Outstanding borrowings 23.3 Borrowing availability, net of outstanding letters of credit and borrowings $ 106.9 Borrowing Base . The availability of funds under the U.S. revolving credit facility is limited by a specified borrowing base consisting of the Borrower's accounts receivable and inventory which meet the eligibility criteria. Guaranty . The Borrowers' obligations under the U.S. revolving credit facility are guaranteed by certain of our domestic subsidiaries and secured by a continuing lien upon and a security interest in all of the Borrowers' accounts receivable, inventory and certain bank accounts. Each Borrower is liable for any and all obligations under the U.S. revolving credit facility on a joint and several basis. Interest Rates and Fees . Any amounts outstanding under the U.S. revolving credit facility will bear interest at our option of either LIBOR or a base rate, plus, in each case, an applicable interest margin. The applicable interest margin is determined based on the average daily availability for the immediately preceding quarter. In addition, we pay an unused line fee on undrawn amounts, less the amount of our letters of credit exposure. For standby letters of credit, we are required to pay a fee on the face amount of such letters of credit that varies depending on whether the letter of credit exposure is cash collateralized. Prepayments . We can make prepayments of amounts outstanding under the U.S. revolving credit facility, in whole or in part, without premium or penalty, subject to standard LIBOR breakage costs, if applicable. We may be required to apply the proceeds from sales of collateral accounts, other than sales of inventory in the ordinary course of business, to repay amounts outstanding under the revolving credit facility and correspondingly reduce the commitments there under. Covenants . The U.S. revolving credit facility contains customary covenants, including restrictions on mergers and acquisitions, indebtedness, affiliate transactions, liens, dividends and distributions, dispositions of collateral, investments and prepayments of indebtedness, as well as a covenant that requires the Borrowers to maintain certain minimum liquidity or availability requirements. Events of Default . The U.S. revolving credit facility also includes customary events of default, including nonpayment, misrepresentation, breach of covenant, bankruptcy, change of ownership, certain judgments and certain cross defaults. Upon the occurrence of an event of default, commitments under the U.S. revolving credit facility may be terminated and amounts outstanding may be accelerated and declared immediately due and payable. Iceland Revolving Credit Facility General . Our wholly-owned subsidiary, Nordural Grundartangi ehf ("Grundartangi"), has entered into a $50.0 million revolving credit facility agreement with Landsbankinn hf., dated November 2013 as amended. Under the terms of the Iceland revolving credit facility, when Grundartangi borrows funds it will designate a repayment date, which may be any date prior to the maturity of the Iceland revolving credit facility. The Iceland revolving credit facility has a term through November 2020. Status of our Iceland revolving credit facility: December 31, 2018 Credit facility maximum amount $ 50.0 Borrowing availability 50.0 Outstanding letters of credit issued — Outstanding borrowings — Borrowing availability, net of outstanding letters of credit and borrowings $ 50.0 Borrowing Base . The availability of funds under the Iceland revolving credit facility is limited by a specified borrowing base consisting of inventory and accounts receivable of Grundartangi. Security . Grundartangi's obligations under the Iceland revolving credit facility are secured by a general bond under which Grundartangi's inventory and accounts receivable are pledged to secure full payment of the loan. Interest Rates and Fees . Any amounts outstanding under the Iceland revolving credit facility will bear interest at LIBOR plus a margin per annum. Prepayments . Any outstanding borrowings may be prepaid without penalty or premium (except incurred breakage costs) in whole or in part. Covenants . The Iceland revolving credit facility contains customary covenants, including restrictions on mergers and acquisitions, dispositions of assets, compliance with permits, laws and payment of taxes, as well as a covenant that requires Grundartangi to maintain a certain minimum equity ratio. Events of Default . The Iceland revolving credit facility also includes customary events of default, including nonpayment, loss of license, cessation of operations, unlawfulness, breach of covenant, bankruptcy, change of ownership, certain judgments and certain cross defaults. Upon the occurrence of an event of default, commitments under the Iceland revolving credit facility may be terminated and amounts outstanding may be accelerated and declared immediately due and payable. 7.5% Notes due 2021 General. In June 2013, we issued $250.0 million of our 7.5% Notes due June 2021 in a private offering exempt from the registration requirements of the Securities Act of 1933, as amended. The 2021 Notes were issued at a discount and we received proceeds of $246.3 million, prior to payment of financing fees and related expenses. The 2021 Notes bear interest at a rate of 7.5% per annum on the principal amount, payable semi-annually in arrears in cash on June 1st and December 1st of each year. The Notes are senior secured obligations of Century, ranking equally in right of payment with all existing and future senior indebtedness of Century, but effectively senior to unsecured debt to the extent of the value of the collateral. The maturity date for the payment of principal is June 2021. Fair Value. Fair value for our 2021 Notes, based on the latest trading data available, was $247.9 million and $258.3 million, as of December 31, 2018 and 2017 , respectively. Although we use quoted market prices for identical debt instruments, the markets on which they trade are not considered to be active and are therefore considered Level 2 fair value measurements. Guaranty. Our obligations under the 2021 Notes are guaranteed by all of our existing and future domestic restricted subsidiaries (the "Guarantor Subsidiaries"), except for foreign owned holding companies and any domestic restricted subsidiary that owns no assets other than equity interests or other investments in foreign subsidiaries, which guaranty shall in each case be a senior secured obligation of such Guarantor Subsidiaries, ranking equally in right of payment with all existing and future senior indebtedness of such Guarantor Subsidiaries but effectively senior to unsecured debt. Collateral. Our obligations under the 2021 Notes due and the Guarantor Subsidiaries' obligations under the guarantees are secured by a pledge of and lien on (subject to certain exceptions): (i) all of our and the Guarantor Subsidiaries' property, plant and equipment; (ii) all equity interests in domestic subsidiaries directly owned by us and the Guarantor Subsidiaries and 65% of equity interests in foreign subsidiaries or foreign holding companies directly owned by us and the Guarantor Subsidiaries; (iii) intercompany notes owed by any non-guarantor to us or any Guarantor Subsidiary to us; and (iv) proceeds of the foregoing. Under certain circumstances, we may incur additional debt that also may be secured by liens on the collateral that are equal to or have priority over the liens securing the 2021 Notes. Redemption Rights. We may redeem the 2021 Notes, in whole or in part, for 101.875% of the outstanding principal amount plus accrued and unpaid interest before June 1, 2019 or for 100% of the outstanding principal amount plus accrued and unpaid interest on June 1, 2019 and thereafter. Upon a change of control (as defined in the indenture governing the 2021 Notes), we will be required to make an offer to purchase the 2021 Notes at a purchase price equal to 101% of the outstanding principal amount of the 2021 Notes on the date of the purchase, plus accrued interest to the date of purchase. Covenants. The indenture governing the 2021 Notes contains customary covenants which may limit our ability, and the ability of certain of our subsidiaries, to: (i) incur additional debt; (ii) incur additional liens; (iii) pay dividends or make distributions in respect of capital stock; (iv) purchase or redeem capital stock; (v) make investments or certain other restricted payments; (vi) sell assets; (vii) issue or sell stock of certain subsidiaries; (viii) enter into transactions with shareholders or affiliates; and (ix) effect a consolidation or merger. Contingent Obligation We have a contingent obligation in connection with the “unwind” of a contractual arrangement between CAKY, Big Rivers and a third party and the execution of a long-term cost-based power contract with Kenergy, a member of a cooperative of Big Rivers, in July 2009. This contingent obligation consists of the aggregate payments made to Big Rivers by the third party on CAKY’s behalf in excess of the agreed upon base amount under the long-term cost-based power contract with Kenergy. Our obligation to make repayments is contingent upon certain operating criteria for Hawesville and the LME price of primary aluminum. When the conditions for repayment are met, and for so long as those conditions continue to be met, we will be obligated to make principal and interest payments, in up to 72 monthly payments. Interest accrues at an annual rate equal to 10.94% and the term of the agreement is through December 2028. Based on the LME forward market prices for primary aluminum at December 31, 2018 and management's estimate of the LME forward market for periods beyond the quoted periods, we recognized a derivative asset which offsets our contingent obligation. As a result, our net liability decreased and we recognized a gain of $1.4 million for each of the years ended December 31, 2018 and 2017 . These amounts are exactly offset by interest expense on the contingent obligation which is recorded in interest expense. In addition, we believe that we will not have any payment obligations for the contingent obligation through the term of the agreement, which expires in 2028. However, future increases in the LME forward market may result in a partial or full derecognition of the derivative asset and a corresponding recognition of a loss. The following table provides information about the balance sheet location and gross amounts offset: Offsetting of financial instruments and derivatives Balance sheet location December 31, 2018 December 31, 2017 Contingent obligation – principal Other liabilities $ (12.9 ) $ (12.9 ) Contingent obligation – accrued interest Other liabilities (10.9 ) (9.5 ) Contingent obligation – derivative asset Other liabilities 23.8 22.4 $ — $ — Industrial Revenue Bonds As part of the purchase price for our acquisition of the Hawesville facility, we assumed IRBs which were issued in connection with the financing of certain solid waste disposal facilities constructed at the Hawesville facility. The IRBs bear interest at a variable rate not to exceed 12% per annum determined weekly based upon prevailing rates for similar bonds in the industrial revenue bond market and interest on the IRBs is paid quarterly. The IRBs are secured by a letter of credit issued under our revolving credit facility and mature in April 2028. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders' Equity Common Stock As of December 31, 2018 and 2017 , we had 195,000,000 shares of common stock, $0.01 cent par value, authorized under our Restated Certificate of Incorporation, of which 95,289,961 shares were issued and 88,103,440 shares were outstanding at December 31, 2018 ; 94,731,298 shares were issued and 87,544,777 shares were outstanding at December 31, 2017 . The rights, preferences and privileges of holders of our common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of our preferred stock which are currently outstanding, including our Series A Convertible Preferred Stock, or which we may designate and issue in the future. Preferred Stock As of December 31, 2018 and 2017 , we had 5,000,000 shares of preferred stock, $0.01 cent par value per share, authorized under our Restated Certificate of Incorporation. Our Board of Directors may issue preferred stock in one or more series and determine for each series the dividend rights, conversion rights, voting rights, redemption rights, liquidation preferences, sinking fund terms and the number of shares constituting that series, as well as the designation thereof. Depending upon the terms of preferred stock established by our Board of Directors, any or all of the preferred stock could have preference over the common stock with respect to dividends and other distributions and upon the liquidation of Century. In addition, issuance of any shares of preferred stock with voting powers may dilute the voting power of the outstanding common stock. Series A Convertible Preferred Stock Shares Authorized and Outstanding. In 2008, we issued 160,000 shares of our Series A Convertible Preferred Stock. Glencore holds all of the issued and outstanding Series A Convertible Preferred Stock. At December 31, 2018 and December 31, 2017 , 71,967 shares and 74,364 were outstanding, respectively. The issuance of common stock under our stock incentive programs, debt exchange transactions and any stock offering that excludes Glencore participation triggers anti-dilution provisions of the preferred stock agreement and results in the automatic conversion of Series A Convertible Preferred Stock shares into shares of common stock. The conversion of preferred to common shares is 100 shares of common for each share of preferred stock. Our Series A Convertible Preferred Stock has a par value of $0.01 per share. The Common and Preferred Stock Activity table below contains additional information about preferred stock conversions during 2018 , 2017 and 2016 : Common and Preferred Stock Activity: Preferred stock Common stock (in shares) Series A Convertible Treasury Outstanding Balance as of December 31, 2015 76,539 7,186,521 87,038,050 Repurchase of common stock — — — Conversion of convertible preferred stock (914 ) — 91,362 Issuance for share-based compensation plans — — 121,485 Beginning balance as of December 31, 2016 75,625 7,186,521 87,250,897 Repurchase of common stock — — — Conversion of convertible preferred stock (1,261 ) — 126,098 Issuance for share-based compensation plans — — 167,782 Beginning balance as of December 31, 2017 74,364 7,186,521 87,544,777 Repurchase of common stock — — — Conversion of convertible preferred stock (2,397 ) — 239,748 Issuance for share-based compensation plans — — 318,915 Ending balance as of December 31, 2018 71,967 7,186,521 88,103,440 Dividend Rights. So long as any shares of our Series A Convertible Preferred Stock are outstanding, we may not pay or declare any dividend or make any distribution upon or in respect of our common stock or any other capital stock ranking on a parity with or junior to the Series A Convertible Preferred Stock in respect of dividends or liquidation preference, unless we, at the same time, declare and pay a dividend or distribution on the shares of Series A Convertible Preferred Stock (a) in an amount equal to the amount such holders would receive if they were the holders of the number of shares of our common stock into which their shares of Series A Convertible Preferred Stock are convertible as of the record date fixed for such dividend or distribution, or (b) in the case of a dividend or distribution on other capital stock ranking on a parity with or junior to the Series A Convertible Preferred Stock in such amount and in such form as (based on the determination of holders of a majority of the Series A Convertible Preferred Stock) will preserve, without dilution, the economic position of the Series A Convertible Preferred Stock relative to such other capital stock. Voting Rights. The Series A Convertible Preferred Stock has no voting rights for the election of directors or on other matters where the shares of common stock have voting rights. However, we may not change the powers, preferences, or rights given to the Series A Convertible Preferred Stock, or authorize, create or issue any additional shares of Series A Convertible Preferred Stock without the affirmative vote of the holders of a majority of the shares of Series A Convertible Preferred Stock then outstanding (voting separately as a class). Liquidation Rights. Upon any liquidation, dissolution, or winding-up of Century, the holders of shares of Series A Convertible Preferred Stock are entitled to receive a preferential distribution of $0.01 per share out of the assets available for distribution. In addition, upon any liquidation, dissolution or winding-up of Century, if our assets are sufficient to make any distribution to the holders of the common stock, then the holders of shares of Series A Convertible Preferred Stock are also entitled to share ratably with the holders of common stock in the distribution of Century’s assets (as though the holders of Series A Convertible Preferred Stock were holders of that number of shares of common stock into which their shares of Series A Convertible Preferred Stock are convertible). However, the amount of any such distribution will be reduced by the amount of the preferential distribution received by the holders of the Series A Convertible Preferred Stock. Transfer Restrictions. Glencore is prohibited from transferring shares of Series A Convertible Preferred Stock to any party other than an affiliate who agrees to become bound by certain agreements associated with these shares. Automatic Conversion. The Series A Convertible Preferred Stock automatically converts, without any further act of Century or any holders of Series A Convertible Preferred Stock, into shares of common stock, at a conversion ratio of 100 shares of common stock for each share of Series A Convertible Preferred Stock, upon the occurrence of any of the following automatic conversion events: • If we sell or issue shares of common stock or any other stock that votes generally with our common stock, or the occurrence of any other event, including a sale, transfer or other disposition of common stock by Glencore, as a result of which the percentage of voting stock held by Glencore decreases, an amount of Series A Convertible Preferred Stock will convert to common stock to restore Glencore to its previous ownership percentage; • If shares of Series A Convertible Preferred Stock are transferred to an entity that is not an affiliate of Glencore, such shares of Series A Convertible Preferred Stock will convert to shares of our common stock, provided that such transfers may only be made pursuant to an effective registration statement; • Upon a sale of Series A Convertible Preferred Stock by Glencore in a Rule 144 transaction in which the shares of Series A Convertible Preferred Stock and our common stock issuable upon the conversion thereof are not directed to any purchaser, such shares of Series A Convertible Preferred Stock sold will convert to shares of our common stock; and • Immediately prior to and conditioned upon the consummation of a merger, reorganization or consolidation to which we are a party or a sale, abandonment, transfer, lease, license, mortgage, exchange or other disposition of all or substantially all of our property or assets, in one or a series of transactions where, in any such case, all of our common stock would be converted into the right to receive, or exchanged for, cash and/or securities, other than any transaction in which the Series A Convertible Preferred Stock will be redeemed. Optional Conversion. Glencore has the option to convert the Series A Convertible Preferred Stock in a tender offer or exchange offer, at the same conversion ratio as above, in which a majority of the outstanding shares of our common stock have been tendered by the holders thereof and not duly withdrawn at the expiration time of such tender or exchange offer, so long as the Series A Convertible Preferred Stock is tendered or exchanged in such offer. Stock Combinations – Adjustments. If, at any time while the Series A Convertible Preferred Stock is outstanding, Century combines outstanding common stock into a smaller number of shares, then the number of shares of common stock issuable on conversion of each share of Series A Convertible Preferred Stock will be decreased in proportion to such decrease in the aggregate number of shares of common stock outstanding. Redemptions or Repurchases of Common Stock. We may not redeem or repurchase our common stock unless we redeem or repurchase, or otherwise make a payment on, a pro-rata number of shares of the Series A Convertible Preferred Stock. These restrictions do not apply to our open market repurchases or our repurchases pursuant to our employee benefit plans. Right of Redemption. The Series A Convertible Preferred Stock will be redeemed by Century if any of the following events occur (at a redemption price based on the trading price of our common stock prior to the announcement of such event) and Glencore votes its shares of our common stock in opposition to such events: • We propose a merger, reorganization or consolidation, sale, abandonment, transfer, lease, license, mortgage, exchange or other disposition of all or substantially all of our property or assets where any of our common stock would be converted into the right to receive, or exchanged for, assets other than cash and/or securities traded on a national stock exchange or that are otherwise readily marketable, or • We propose to dissolve and wind up operations and any assets, other than cash and/or securities traded on a national stock exchange or that are otherwise readily marketable, are to be distributed to the holders of our common stock. Stock Repurchase Program In 2011, our Board of Directors authorized a $60.0 million stock repurchase program and during the first quarter of 2015, our Board of Directors increased the size of the program by $70.0 million . Under the program, Century is authorized to repurchase up to $130.0 million of our outstanding shares of common stock, from time to time, on the open market at prevailing market prices, in block trades or otherwise. The timing and amount of any shares repurchased will be determined by our management based on its evaluation of market conditions, the trading price of our common stock and other factors. The stock repurchase program may be suspended or discontinued at any time. Shares of common stock repurchased are recorded at cost as treasury stock and result in a reduction of shareholders’ equity in the consolidated balance sheets. From time to time, treasury shares may be reissued as contributions to our employee benefit plans and for the conversion of convertible preferred stock. When shares are reissued, we use an average cost method for determining cost. The difference between the cost of the shares and the reissuance price is added to or deducted from additional paid-in capital. Through December 31, 2018 , we repurchased 7,186,521 shares of common stock for an aggregate purchase price of $86.3 million. We have made no repurchases since April 2015 and have approximately $43.7 million remaining under the repurchase program authorization as of December 31, 2018 . |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory, Net [Abstract] | |
Inventories | Inventories Inventories, at December 31, consist of the following: 2018 2017 Raw materials $ 100.8 $ 106.2 Work-in-process 49.5 49.6 Finished goods 47.3 40.9 Operating and other supplies 146.2 120.8 Inventories $ 343.8 $ 317.5 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment, at December 31, consist of the following: 2018 2017 Land and improvements $ 41.8 $ 41.8 Buildings and improvements 337.3 331.7 Machinery and equipment 1,449.5 1,398.7 Construction in progress 46.3 22.5 1,874.9 1,794.7 Less accumulated depreciation (907.6 ) (822.8 ) Property, plant and equipment - net $ 967.3 $ 971.9 For the years ended December 31, 2018 , 2017 and 2016 , we recorded depreciation and amortization expense of $90.1 million, $84.2 million, and $84.8 million, respectively. See Note 4. Helguvik and Ravenswood Gains and (Losses) regarding impairment of our Helguvik project. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss (AOCL) | 12 Months Ended |
Dec. 31, 2018 | |
Additional financial information disclosures [Abstract] | |
Accumulated Other Comprehensive Loss (AOCL) | Accumulated Other Comprehensive Loss ("AOCL") Components of AOCL 2018 2017 Defined benefit plan liabilities $ (107.3 ) $ (102.1 ) Unrealized gain (loss) on financial instruments 2.5 2.7 Other comprehensive loss before income tax effect (104.8 ) (99.4 ) Income tax effect (1) 6.1 7.7 Accumulated other comprehensive loss $ (98.7 ) $ (91.7 ) (1) The allocation of the income tax effect to the components of other comprehensive loss is as follows: 2018 2017 Defined benefit plan liabilities $ 6.6 $ 8.2 Unrealized loss on financial instruments (0.5 ) (0.5 ) The following table summarizes the changes in the accumulated balances for each component of AOCL: Defined benefit plan and other postretirement liabilities Unrealized gain (loss) on financial instruments Total, net of tax Balance, December 31, 2015 $ (110.7 ) $ (2.0 ) $ (112.7 ) Other comprehensive (loss) before reclassifications (9.5 ) — (9.5 ) Net amount reclassified to net income (loss) 4.0 4.3 8.3 Balance, December 31, 2016 (116.2 ) 2.3 (113.9 ) Other comprehensive income before reclassifications 20.3 — 20.3 Net amount reclassified to net income (loss) 2.1 (0.2 ) 1.9 Balance, December 31, 2017 (93.8 ) 2.1 (91.7 ) Other comprehensive (loss) before reclassifications (7.3 ) — (7.3 ) Net amount reclassified to net income (loss) 0.4 (0.1) 0.3 Balance, December 31, 2018 $ (100.7 ) $ 2.0 $ (98.7 ) Reclassifications out of AOCL were included in the consolidated statements of operations as follows: AOCL Components Location 2018 2017 2016 Defined benefit plan and other postretirement liabilities Cost of goods sold $ 2.8 $ 3.1 $ 3.5 Selling, general and administrative expenses (1.9 ) (0.4 ) 0.5 Other operating expense, net 1.2 1.0 1.6 Income tax expense (1.6 ) (1.6 ) (1.5 ) Net of tax $ 0.5 $ 2.1 $ 4.1 Gain (loss) on financial instruments Cost of goods sold $ (0.2 ) $ (0.2 ) $ (0.2 ) Helguvik impairment — — 4.5 Income tax benefit 0.0 0.0 (0.0 ) Net of tax $ (0.2 ) $ (0.2 ) $ 4.3 |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits Pension Benefits We maintain noncontributory defined benefit pension plans for certain domestic hourly and salaried employees. For the eligible domestic salaried employees, plan benefits are based primarily on years of service and average compensation during the later years of employment. For hourly employees, plan benefits are based primarily on a formula that provides a specific benefit for each year of service. Our funding policy is to contribute amounts based upon actuarial and economic assumptions designed to achieve adequate funding of the projected benefit obligations and to meet the minimum funding requirements of the Employee Retirement Income Security Act of 1974 ("ERISA"). In addition, we maintain the SERB plan for certain current and former executive officers, which is frozen to future accruals. Plan Merger In 2017, the Century Aluminum Employees Retirement Plan was merged into the CAWV Hourly Employees Pension Plan and the resulting plan was renamed the Century Aluminum Consolidated Retirement Plan. The benefits of the participants from the Century Aluminum Employee Retirement Plan were not affected by this merger. PBGC Settlement In 2013, we entered into a settlement agreement with the Pension Benefit Guaranty Corporation ("PBGC") regarding an alleged "cessation of operations" at our Ravenswood facility. Pursuant to the terms of the agreement, we would make additional contributions (above any minimum required contributions) to our defined benefit pension plans totaling approximately $17.4 million over the term of the agreement. Under certain circumstances, in periods of lower primary aluminum prices relative to our cost of operations, we are able to defer one or more of these payments, but would then be required to provide the PBGC with acceptable security for deferred payments. We did not make any contributions during the years ended December 31, 2018, 2017 and 2016. We have elected to defer certain payments under the PBGC agreement and have provided the PBGC with the appropriate security. The remaining contributions under this agreement are approximately $ 9.6 million . Other Postretirement Benefits (OPEB) In addition to providing pension benefits, we provide certain healthcare and life insurance benefits for certain domestic retired employees. We accrue the estimated cost of providing postretirement benefits during the working careers of those employees who could become eligible for such benefits when they retire. We fund these benefits as the retirees submit claims. Retiree medical welfare changes Under the current Hawesville labor agreement, employees who retire during the term of the labor agreement have been divided into sub-groups based on attributes such as Medicare eligibility, hire date, age and years of service. Levels of benefits are defined for the sub-groups and range from no substantive change from the benefits provided under the previous labor agreement to replacement of the defined retiree medical benefit program with individual health reimbursement accounts for each eligible participant. The health reimbursement accounts will be funded by CAKY based on established rates per hour worked by each eligible participant. Eligible participants will be able to withdraw from their health reimbursement accounts to fund their own retiree medical coverage. During 2017, the Company amended its non-union retiree medical and life insurance benefits to align the Company’s benefits with the market and achieve a uniform retiree medical benefit design across the Company’s U.S. locations. Effective January 1, 2018, non-union retiree medical and life insurance benefits are restricted to current participants who meet the eligibility criteria as of January 1, 2018. Additionally, effective January 1, 2019, Century will no longer administer non-union retiree medical, prescription drug, dental, or vision benefits and instead will make fixed health reimbursement account contributions. The amendment decreased the projected benefit obligations by approximately $18.8 million and a curtailment benefit of $1.4 million was recorded in 2017. Obligations and Funded Status The change in benefit obligations and change in plan assets as of December 31 are as follows: Pension OPEB 2018 2017 2018 2017 Change in benefit obligation: Benefit obligation at beginning of year $ 344.1 $ 328.0 $ 120.8 $ 133.9 Service cost 4.3 4.4 0.2 0.8 Interest cost 12.4 13.3 4.2 5.3 Plan amendments 0.5 — 0.1 (27.4 ) Actuarial (gain) loss (28.0 ) 18.5 (10.5 ) 14.7 Medicare Part D — — 0.3 0.4 Benefits paid (18.9 ) (20.1 ) (6.4 ) (6.9 ) Benefit obligation at end of year $ 314.4 $ 344.1 $ 108.7 $ 120.8 Pension OPEB 2018 2017 2018 2017 Change in plan assets: Fair value of plan assets at beginning of year $ 303.4 $ 276.7 $ — $ — Actual return on plan assets (24.6 ) 45.0 — — Employer contributions 1.8 1.8 6.1 6.5 Medicare Part D subsidy received — — 0.3 0.4 Benefits paid (18.9 ) (20.1 ) (6.4 ) (6.9 ) Fair value of assets at end of year $ 261.7 $ 303.4 $ — $ — Pension OPEB 2018 2017 2018 2017 Funded status of plans: Funded status $ (52.7 ) $ (40.7 ) $ (108.7 ) $ (120.8 ) Amounts recognized in the Consolidated Balance Sheets: Non-current assets — — — — Current liabilities (1.8 ) (1.8 ) (7.5 ) (7.5 ) Non-current liabilities (50.9 ) (38.9 ) (101.2 ) (113.3 ) Net amount recognized $ (52.7 ) $ (40.7 ) $ (108.7 ) $ (120.8 ) Amounts recognized in accumulated other comprehensive loss (pre-tax): Net loss $ 83.7 $ 71.2 $ 43.9 $ 58.4 Prior service cost (benefit) 1.4 1.0 (21.6 ) (28.9 ) Total $ 85.1 $ 72.2 $ 22.3 $ 29.5 Pension Plans That Are Not Fully Funded At December 31, 2018, the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets were $ 314.4 million , $310.0 million , and $261.7 million , respectively. At December 31, 2017, the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets were $ 344.1 million , $339.4 million and $303.4 million , respectively. Components of net periodic benefit cost and other amounts recognized in other comprehensive loss: Net Periodic Benefit Cost: Year Ended December 31, Pension OPEB 2018 2017 2016 2018 2017 2016 Service cost $ 4.3 $ 4.4 $ 4.6 $ 0.2 $ 0.8 $ 1.0 Interest cost 12.4 13.3 13.9 4.2 5.3 5.6 Expected return on plan assets (21.1 ) (19.0 ) (18.8 ) — — — Amortization of prior service costs 0.1 0.1 0.1 (7.3 ) (3.7 ) (2.7 ) Amortization of net loss 5.2 4.7 4.7 4.0 3.9 3.5 Curtailment (benefit) cost — — — — (1.4 ) — Net periodic benefit cost $ 0.9 $ 3.5 $ 4.5 $ 1.2 $ 4.9 $ 7.4 Other changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss (pre-tax): Year Ended December 31, Pension OPEB 2018 2017 2018 2017 Net loss (gain) $ 17.6 $ (7.5 ) $ (10.5 ) $ 14.7 Prior service cost (benefit) 0.5 — 0.1 (27.4 ) Amortization of net loss, including recognition due to settlement (5.2 ) (4.7 ) (4.0 ) (3.9 ) Amortization of prior service (cost) benefit, including recognition due to curtailment (0.1 ) (0.1 ) 7.2 5.1 Total amount recognized in other comprehensive loss 12.8 (12.3 ) (7.2 ) (11.5 ) Net periodic benefit cost 0.9 3.5 1.2 4.9 Total recognized in net periodic benefit cost and other comprehensive loss $ 13.7 $ (8.8 ) $ (6.0 ) $ (6.6 ) Amounts in accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost during 2019 Pension OPEB Amortization of net loss $ 5.9 $ 3.7 Amortization of prior service cost (benefit) 0.1 (7.2 ) Weighted average assumptions used to determine benefit obligations at December 31: Pension OPEB 2018 2017 2018 2017 Discount rate (1) 4.39% 3.69% 4.27% 3.66% Rate of compensation increase (2) 3%/3.5% 3%/4% 3%/3.5% 3%/4% Measurement date 12/31/2018 12/31/2017 12/31/2018 12/31/2017 Weighted average assumptions used to determine net periodic benefit cost for the years ended December 31: Pension OPEB 2018 2017 2016 2018 2017 2016 Measurement date 12/31/2017 12/31/2016 12/31/2015 12/31/2017 12/31/2016 12/31/2015 Fiscal year end 12/31/2018 12/31/2017 12/31/2016 12/31/2018 12/31/2017 12/31/2016 Discount rate (1) 3.69% 4.15% 4.44% 3.66% 4.05% 4.50% Rate of compensation increase (2) 3%/4% 3%/4% 3%/4% 3%/4% 3%/4% 3%/4% Expected return on plan assets (3) 7.18% 6.82% 7.10% — — — (1) We use the Ryan Above Median Yield Curve to determine the discount rate. (2) For 2018, the rate of compensation increase is 3% per year for the first year and 3.5% per year thereafter. For 2017, the rate of compensation increase is 3% for the first two years and 4% per year thereafter. For 2016, the rate of compensation increase is 3% per year for the first three years and 4% per year thereafter. (3) The rate for each of our defined benefit plans was selected by taking into account our expected asset mix and is based on historical performance as well as expected future rates of return on plan assets. For measurement purposes, medical cost inflation is initially estimated to be 6.7% , and 7.4% for pre and post-65 participants, respectively, declining to 4.5% over twelve years and continuing thereafter. Assumed health care cost trend rates have a significant effect on the amounts reported for the health care benefit obligations. A one-percentage-point change in the assumed health care cost trend rate would have had the following effects in 2018 : 1% Increase 1% Decrease Effect on total of service and interest cost $ 0.4 $ (0.4 ) Effect on accumulated postretirement benefit obligation 10.6 (9.1 ) Benefit Plan Assets Pension Plan Investment Strategy and Policy The Pension Plans’ assets are invested in a prudent manner for the exclusive purpose of providing benefits to participants. Other objectives are to: • Provide a total return that, over the long term, provides sufficient assets to fund the pension plan liabilities subject to a level of risk, contributions and pension expense deemed appropriate by the company. • Minimize, where possible, pension expense volatility, and inclusion of liability driven investing as an investment strategy when appropriate. As the funding ratio improves, the objectives will evolve to minimize the funded status volatility. • Diversify investments within asset classes to reduce the impact of losses in single investments. The assets of the Pension Plans are invested in compliance with ERISA, as amended, and any subsequent applicable regulations and laws. Performance Our performance objective is to outperform the return of weighing passive investment alternatives by the policy target allocations after fees at a comparable level of risk. This investment objective is expected to be achieved over the long term and is measured over rolling multi-year periods. Peer-relative performance comparisons will also be considered especially when performance deviates meaningfully from market indexes. Investment objectives for each asset class are included below. Asset Allocation Policy Asset allocation policy is the principal method for achieving the Pension Plans' investment objectives stated above. The Pension Plans’ weighted average long-term strategic asset allocation policy targets are as follows: Pension Plan Asset Allocation 2018 Target December 31, 2018 December 31, 2017 Equities: U.S. equities 26% 25% 29% International equities 22% 19% 26% Fixed income 52% 56% 45% 100% 100% U.S. and international equities are held for their long-term expected return premium over fixed income investments and inflation. Fixed income is held for diversification relative to equities. The strategic role of U.S. and international equities is to: • Provide higher expected returns of the major asset classes. • Maintain a diversified exposure within the U.S. and international stock markets through the use of multi-manager portfolio strategies. • Achieve returns in excess of passive indexes through the use of active investment managers and strategies. The strategic role of fixed income is to: • Diversify the Pension Plans’ equity exposure by investing in fixed income securities that exhibit a low correlation to equities, thereby lowering the overall return volatility of the entire investment portfolio. • Maintain a diversified exposure within the U.S. fixed income market through the use of multi-manager portfolio strategies. • Achieve returns in excess of passive indexes through the use of active investment managers and strategies. The long-term strategic asset allocation policy is reviewed regularly or whenever significant changes occur to Century’s or the Pension Plans' financial position and liabilities. Fair Value Measurements of Pension Plan assets The following table sets forth by level the fair value hierarchy our Pension Plans' assets. These assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities and the placement within the fair value hierarchy levels. Fair Value of Pension Plans’ assets included under the fair value hierarchy: As of December 31, 2018 Level 1 Level 2 Level 3 Total Equities: U.S. equities $ 66.5 $ — $ — $ 66.5 International equities 49.0 — — 49.0 Fixed income 146.2 — — 146.2 Total $ 261.7 $ — $ — $ 261.7 As of December 31, 2017 Equities: U.S. equities $ 86.5 $ — $ — $ 86.5 International equities 79.1 — — 79.1 Fixed income 137.7 — — 137.7 Total $ 303.3 $ — $ — $ 303.3 Our Pension Plans’ assets are held in certain mutual funds. The fair value of the mutual funds is based on the Net Asset Value ("NAV") which is calculated every business day. The value of the underlying securities within the mutual funds are determined as follows: • U.S. listed equities; equity and fixed income options: Last sale price; last bid price if no last sale price; • U.S. over-the-counter equities: Official closing price; last bid price if no closing price; • Foreign equities: Official closing price, where available, or last sale price; last bid price if no official closing price; and • Municipal bonds, US bonds, Eurobonds/foreign bonds: Evaluated bid price; broker quote if no evaluated bid price. Our other postretirement benefit plans are unfunded. We fund these benefits as the retirees submit claims. Pension and OPEB Cash Flows During 2018 and 2017, we made contributions of approximately $1.8 million and $1.8 million , respectively, to the qualified defined benefit and SERB plans we sponsor. We expect to make the following contributions for 2019 : 2019 Expected pension plan contributions $ 1.8 Expected OPEB benefits payments 7.5 Estimated Future Benefit Payments The following table provides the estimated future benefit payments for the pension and other postretirement benefit plans: Pension Benefits OPEB Benefits 2019 $ 20.6 $ 7.5 2020 20.8 7.4 2021 20.9 7.6 2022 21.1 7.6 2023 21.1 7.6 2024 – 2028 100.6 37.0 Participation in Multi-employer Pension Plans The union-represented employees at Hawesville are part of a United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union ("USWA") sponsored multi-employer plan. Our contributions to the plan are determined at a fixed rate per hour worked. Currently, we do not have any plans to withdraw from or curtail participation in this plan. The risks of participating in a multi-employer plan are different from single-employer plans in the following respects: • Assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers. • If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. • If a participating employer chooses to stop participating in a multi-employer plan, the employer may be required to pay the plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability. Century’s participation in the plan for the year ended December 31, 2018 , is outlined in the table below. Fund Steelworkers Pension Trust EIN / PN 23-6648508/499 Pension Protection Act Zone Status 2018 (1) Green Pension Protection Act Zone Status 2017 (1) Green Subject to Financial Improvement/Rehabilitation Plan No Contributions of Century Aluminum 2018 $1.0 Contributions of Century Aluminum 2017 $0.8 Contributions of Century Aluminum 2016 $0.8 Withdrawal from Plan Probable No Surcharge Imposed No Expiration Date of Collective Bargaining Agreement April 1, 2020 (1) The most recent Pension Protection Act zone status available in 2018 and 2017 is for the plan's year-end December 31, 2017 and December 31, 2016 , respectively. The zone status is based on information that Century received from the plan as well as publicly available information per the Department of Labor and is certified by the plan’s actuary. Among other factors, plans in the green zone are at least 80 percent funded. Century 401(k) Plans We sponsor a tax-deferred savings plan under which eligible domestic employees may elect to contribute specified percentages of their compensation with Century. We match a portion of participants' contributions to the savings plan. Employee and matching contributions are considered fully vested immediately upon participation in the plan. Concurrent with the 2014 amendment to the Salaried Pension Plan that eliminated future accruals for participants who are under age 50 as of January 1, 2015 and closed the plan to new entrants, the Company increased the proportional match of contributions made to those affected by the amendment. The expense related to the plan was $4.4 million , $4.5 million , and $3.9 million for 2018, 2017, and 2016, respectively. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based compensation | Share-based Compensation Amended and Restated Stock Incentive Plan. We award restricted share units and grant qualified incentive and nonqualified stock options to our salaried officers, non-employee directors, and other key employees from our Amended and Restated Stock Incentive Plan (the "Stock Incentive Plan"). The Stock Incentive Plan has 10,000,000 shares authorized for issuance with approximately 4,827,840 shares remaining at December 31, 2018 . Our share-based compensation consists of service-based and performance-based share awards that typically vest over a period of three years from the date of grant, provided that the recipient is still our employee at the time of vesting. Our independent non-employee directors receive annual grants of service-based share awards that typically vest following 12 months of service. In the past, we have granted stock options that have a term of 10 years and typically vest one-third on the grant date and an additional one-third on the first and second anniversary dates of the grant. Our most recent grant of stock options was in 2009. As of December 31, 2018 , options to purchase 117,110 shares of common stock and 658,906 service-based share awards were outstanding. A summary of activity under our Stock Incentive Plan during the year ended December 31, 2018 is presented below: Options Number Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at January 1, 2018 166,757 $ 11.02 Exercised (32,147 ) 6.55 Forfeited/expired (17,500 ) 49.18 Outstanding, fully vested and exercisable at December 31, 2018 (1) 117,110 $ 6.55 0.34 $ 0.1 (1) As the result of actions in 2011 that were determined to be a "change of control" under the Stock Incentive Plan, all options will remain exercisable for their respective remaining term, regardless of whether the awardees remain employees of Century. All of the outstanding options at December 31, 2018 have an exercise price of $6.55 per share and expire in May 2019 . Long-Term Incentive Plan. We also grant annual long-term incentive awards under our Amended and Restated Long-Term Incentive Plan (the "LTIP"). The LTIP is designed to provide senior-level employees the opportunity to earn long-term incentive awards through the achievement of performance goals and to align compensation with the interests of our stockholders. This is achieved by linking compensation to share price appreciation and total stockholder return over a multi-year period. Awards made under the LTIP are granted subject to the Stock Incentive Plan to the extent the award is deliverable in stock. We provide two types of LTIP awards: time-vested share units and performance units. Time-vested share units are stock-settled awards which do not contain any performance-based vesting requirements. Performance units can be settled in cash or stock and vest based on the achievement of pre-determined performance metrics at the discretion of the Board. Our performance unit liability was approximately $ 2.2 million and $7.5 million as of December 31, 2018 and 2017 , respectively. Both the performance units and time-vested share units vest, in their entirety, after three years. Service-based share awards Number Outstanding at January 1, 2018 845,408 Granted 295,434 Vested (443,265 ) Forfeited (38,671 ) Outstanding at December 31, 2018 658,906 Year ended December 31, Service-based share awards 2018 2017 2016 Weighted average per share fair value of service-based share grants $ 20.21 $ 8.92 $ 7.14 Total intrinsic value of option exercises 444 624 — Fair Value Measurement of Share-Based Compensation Awards. We estimate the fair value of each stock option award using the Black-Scholes model on the date of grant. We have not granted any stock options since 2009. For our service-based awards, fair value is equal to the closing stock price on the date of grant. For our performance-based awards, fair value is equal to the closing stock price at each reporting period end. The following table summarizes the compensation cost recognized for the years ended December 31, 2018 , 2017 and 2016 for all options, service-based and performance-based share awards. The compensation cost is included as part of selling, general and administrative expenses in our Consolidated Statements of Operations. Year ended December 31, 2018 2017 2016 Share-based compensation expense reported: Performance-based share expense $ (0.1 ) $ 4.0 $ 2.4 Service-based share expense 3.8 3.4 2.1 Total share-based compensation expense before income tax 3.7 7.4 4.5 Income tax — — — Total share-based compensation expense, net of income tax $ 3.7 $ 7.4 $ 4.5 No share-based compensation cost was capitalized during these periods and there were no significant modifications of any share-based awards in 2018 , 2017 and 2016 . As of December 31, 2018 , we had unrecognized compensation cost of $6.6 million before taxes. This cost will be recognized over a weighted average period of two years . |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic EPS amounts are calculated by dividing net income (loss) allocated to common stockholders by the weighted average number of common shares outstanding. Diluted EPS amounts assume the issuance of common stock for all potentially dilutive common shares outstanding. The following table shows the basic and diluted earnings (loss) per share for 2018 , 2017 , and 2016 : For the year ended December 31, 2018 Net (Loss) Shares (in millions) Per Share Net loss $ (66.2 ) Amount allocated to common stockholders 100 % Basic and Diluted EPS: (1) $ (66.2 ) 87.6 $ (0.76 ) For the year ended December 31, 2017 Net Income Shares (in millions) Per Share Net income $ 48.6 Amount allocated to common stockholders 92 % Basic EPS: Net income allocated to common stockholders $ 44.7 87.3 $ 0.51 Effect of dilutive securities: Share-based compensation 0.7 Diluted EPS: $ 44.7 88.0 $ 0.51 For the year ended December 31, 2016 Net (Loss) Shares (in millions) Per Share Net loss $ (252.4 ) Amount allocated to common stockholders 100 % Basic and Diluted EPS: (1) $ (252.4 ) 87.1 $ (2.90 ) Securities excluded from the calculation of diluted EPS (in millions): 2018 (1) 2017 2016 (1) Share-based compensation 1.4 0.6 0.9 (1) In periods when we report a net loss, all share-based compensation awards are excluded from the calculation of diluted weighted average shares outstanding because of their anti-dilutive effect on earnings (loss) per share. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, the President of the United States signed into law tax reform legislation (informally known as the Tax Cuts and Jobs Act (the “Act” or “Tax Act”)) that made significant changes to various areas of U.S. federal income tax law. The Tax Act reduced the U.S. federal corporate tax rate from 35 percent to 21 percent, required companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, created new taxes on certain foreign earnings, acceleration of expensing of certain business assets and reductions in the amount of executive pay that could qualify as a tax deduction. ASC 740 requires us to recognize the effect of the tax law changes in the period of enactment. However, the SEC staff issued Staff Accounting Bulletin (SAB) 118 which allowed us to record provisional amounts during a measurement period which is similar to the measurement period used when accounting for business combinations. As of December 31, 2017, in accordance with SAB 118, the Company made a reasonable estimate of: (i) the one-time transition tax, and (ii) the effects on the Company’s existing deferred tax balances. In the current period, the Company finalized its accounting for the tax effects of enactment of the Tax Act and concluded that no material adjustments were required as of December 31, 2018. In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income ("GILTI") provisions of the Tax Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. U.S. GAAP allows companies to make an accounting policy election to either treat taxes due on future GILTI inclusions in U.S. taxable income as a current-period expense when incurred (“period cost method”) or factor such amounts into the measurement of its deferred taxes (“deferred method”). We have elected to use the period cost method and the impact was immaterial. The components of pre-tax book income (loss) consist of the following: Year Ended December 31, 2018 2017 2016 U.S. $ (39.7 ) $ 26.8 $ (86.6 ) Foreign (30.9 ) 28.6 (164.3 ) Total $ (70.6 ) $ 55.4 $ (250.9 ) Significant components of income tax expense consist of the following: Year Ended December 31, 2018 2017 2016 Current: U.S. federal current expense (benefit) $ 0.0 $ (0.1 ) $ (0.2 ) State current expense (benefit) (1.1 ) 1.2 (0.1 ) Foreign current expense 0.8 12.3 5.7 Total current expense (benefit) (0.3 ) 13.4 5.4 Deferred: U.S. federal deferred benefit (1.6 ) (2.5 ) (1.6 ) State deferred benefit — (0.0 ) — Foreign deferred tax expense (benefit) 1.7 (3.3 ) (1.0 ) Total deferred expense (benefit) 0.1 (5.8 ) (2.6 ) Total income tax expense (benefit) $ (0.2 ) $ 7.6 $ 2.8 A reconciliation of the statutory U.S. Federal income tax rate to the effective income tax rate on income (loss) is as follows: 2018 2017 2016 Federal Statutory Rate 21.0 % 35.0 % 35.0 % Permanent differences (25.7 ) 57.5 7.7 State taxes, net of Federal benefit 3.5 (6.6 ) 6.1 Rate change (0.6 ) 370.5 (4.2 ) Foreign earnings taxed at different rates than U.S. 11.8 (40.5 ) (13.5 ) Valuation allowance 81.2 (401.4 ) (27.5 ) Transition tax (13.8 ) — — Net operating loss expiration and remeasurement (75.8 ) — — Changes in uncertain tax reserves (1.4 ) 3.8 (1.0 ) Other 0.1 (4.6 ) (3.7 ) Effective tax rate 0.3 % 13.7 % (1.1 )% For the period ending December 31, 2018, the effective tax rate of 0.3% was lower than the statutory US tax rate of 21% primarily as a result of the non-recognition of current year domestic and foreign losses. For the period ending December 31, 2017, the Company’s U.S. deferred tax asset and related valuation allowance decreased by $205.2 million as a result of the Act in 2017. As the U.S. deferred tax asset had a full valuation allowance, this change in rate from 35% to 21% had no impact on the Company’s financial position or results of operations. The increase in permanent differences is a result of tax law changes related to our foreign operations. The effect of earnings of foreign subsidiaries includes the difference between the U.S. statutory rate and local jurisdiction tax rates. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The significant components of our deferred tax assets and liabilities as of December 31 are as follows: 2018 2017 Deferred tax assets: Accrued postretirement benefit cost $ 40.3 $ 39.4 Accrued liabilities 10.9 3.1 Share-based compensation 2.1 1.3 Goodwill 0.4 2.0 Net operating losses and tax credits 482.8 551.1 Foreign basis differences 13.5 13.9 Ravenswood retiree legal settlement 2.4 3.1 Other 1.9 3.1 Total deferred tax assets 554.3 617.0 Valuation allowance (552.5 ) (607.8 ) Net deferred tax assets $ 1.8 $ 9.2 Deferred tax liabilities: Tax over financial statement depreciation $ (103.9 ) $ (109.7 ) Total deferred tax liabilities (103.9 ) (109.7 ) Net deferred tax liability $ (102.1 ) $ (100.5 ) We regularly assess the likelihood that deferred tax assets will be recovered from future taxable income. To the extent we believe that it is more likely than not that a deferred tax asset will not be realized, a valuation allowance is established. When a valuation allowance is established or increased, an income tax charge is included in the consolidated statement of operations and net deferred tax assets are adjusted accordingly. Future changes in tax laws, statutory tax rates and taxable income levels could result in actual realization of the deferred tax assets being materially different from the amounts provided for in the consolidated financial statements. If the actual recovery amount of the deferred tax asset is less than anticipated, we would be required to write-off the remaining deferred tax asset and increase the tax provision. We have a valuation allowance of $552.5 million recorded for all of our U.S. deferred tax assets, and a portion of our Icelandic deferred tax assets as of December 31, 2018. The Company is subject to the provisions of ASC 740-10, Income Taxes, which requires that the effect on deferred tax assets and liabilities of a change in tax rates be recognized in the period the tax rate change was enacted. The overall reduction in deferred tax assets, and the related valuation allowances, are primarily a result of the enactment of the Tax Act in 2017 and the expiration of certain NOLs. The changes in the valuation allowance are as follows: 2018 2017 2016 Beginning balance, valuation allowance $ 607.8 $ 839.1 $ 768.8 Remeasurement of deferred tax assets (32.1 ) (205.2 ) — Release of valuation allowance — — (6.0 ) Expiration of net operating losses (12.3 ) — — Other change in valuation allowance (11.0 ) (26.1 ) 76.3 Ending balance, valuation allowance $ 552.5 $ 607.8 $ 839.1 The significant components of our net operating loss carryforwards ("NOLs") are as follows: 2018 2017 Federal (1) $ 1,470.4 $ 1,514.2 State (2) 2,205.0 2,480.5 Foreign (3) 398.2 532.6 (1) The federal NOL begins to expire in 2028 . (2) The state NOLs begin to expire in 2027 . (3) The Icelandic NOL begins to expire in 2019; the Netherlands NOL begins to expire in 2022 . Our ability to utilize our deferred tax assets to offset future federal taxable income may be significantly limited if we experience an "ownership change" as defined in the Code. In general, an ownership change would occur if our "five-percent shareholders," as defined under the Code, collectively increase their ownership in us by more than 50 percentage points over a rolling three-year period. Future transactions in our stock that may not be in our control may cause us to experience such an ownership change and thus limit our ability to utilize net operating losses, tax credits and other tax assets to offset future taxable income. A reconciliation of the beginning and ending amounts of gross unrecognized tax positions (excluding interest) is as follows: 2018 2017 2016 Balance as of January 1, $ 8.4 $ 6.4 $ 3.8 Additions based on tax positions related to the current year 2.0 2.1 2.7 Decreases due to lapse of applicable statute of limitations (0.9 ) (0.1 ) (0.1 ) Settlements — — — Balance as of December 31, $ 9.5 $ 8.4 $ 6.4 Included in the above balances are tax positions whose tax characterization is highly certain but for which there is uncertainty about the timing of tax return inclusion. Because of the impact of deferred tax accounting, other than interest and penalties, the timing would not impact the annual effective tax rate but could accelerate the payment of cash to the taxing authority to an earlier period. The remaining amounts of unrecognized tax positions would affect our effective tax rate if recognized. It is our policy to recognize potential accrued interest and penalties related to unrecognized tax positions in income tax expense. The components of our unrecognized tax positions are as follows: 2018 2017 2016 Highly certain tax positions $ 7.9 $ 8.3 $ 6.3 Other unrecognized tax benefits 1.6 0.1 0.1 Gross unrecognized tax benefits $ 9.5 $ 8.4 $ 6.4 Accrued interest and penalties related to unrecognized tax positions $ 0.1 $ 0.0 $ — We do not expect a significant change in the balance of unrecognized tax benefits within the next twelve months. Century and its subsidiaries file income tax returns in the U.S. federal jurisdiction, various state and local jurisdictions, and several foreign jurisdictions. Our federal income tax returns have been reviewed by the IRS through 2010. However, we have NOLs beginning in 2008 that are available for carryforward to future years. Under U.S. tax law, NOLs may be adjusted by the IRS until the statute of limitations expires for the year in which the NOL is used. Accordingly, our 2008 and later NOLs may be reviewed until they are used or expire. Material state and local income tax matters have been concluded for years through 2006. The majority of our state returns beginning in 2008 are subject to examination. Our Icelandic tax returns are subject to examination beginning with the 2013 tax year. As of December 31, 2018 and 2017 we had income taxes payable of $0.4 million and $12.2 million , respectively. The income taxes payable are included within accrued and other current liabilities in our Consolidated Balance Sheets. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Environmental Contingencies Based upon all available information, we believe our current environmental liabilities do not have, and are not likely to have, a material adverse effect on our financial condition, results of operations or liquidity. However, because of the inherent uncertainties in estimating environmental liabilities primarily due to unknown facts and circumstances and changing governmental regulations and legal standards regarding liability, there can be no assurance that future capital expenditures and costs for environmental compliance at currently or formerly owned or operated properties will not result in liabilities that may have a material adverse effect on our financial condition, results of operations or liquidity. It is our policy to accrue for costs associated with environmental assessments and remedial efforts when it becomes probable that a liability has been incurred and the costs can be reasonably estimated. All accrued amounts have been recorded without giving effect to any possible future recoveries. Costs for ongoing environmental compliance, including maintenance and monitoring are expensed as incurred. Vernon In July 2006, we were named as a defendant, together with certain affiliates of Alcan Inc., in a lawsuit brought by Alcoa Inc. seeking to determine responsibility for certain environmental indemnity obligations related to the sale of a cast aluminum plate manufacturing facility located in Vernon, California, which we purchased from Alcoa Inc. in December 1998, and sold to Alcan Rolled Products-Ravenswood LLC in July 1999. The complaint also seeks costs and attorney fees. The matter was stayed by the court in 2008 to allow for the remediation of environmental areas at the site. On June 30, 2016, the U.S. District Court for the District of Delaware ordered the stay lifted and reopened the case. Discovery is expected to be completed in the second quarter of 2019, and trial is currently set to begin in the second quarter of 2020. At this stage, we cannot predict the ultimate outcome of this action or estimate a range of possible losses related to this matter. Matters relating to the St. Croix Alumina Refining Facility We are a party to a United States Environmental Protection Agency Administrative Order on Consent (the "Order") pursuant to which certain past and present owners of an alumina refining facility at St. Croix, Virgin Islands (the "St. Croix Alumina Refinery") have agreed to carry out a Hydrocarbon Recovery Plan to remove and manage hydrocarbons floating on groundwater underlying the facility. Pursuant to the Hydrocarbon Recovery Plan, recovered hydrocarbons and groundwater are delivered to the adjacent petroleum refinery where they are received and managed. At this time, we are not able to estimate the amount of any future potential payments under this indemnification to comply with the Order, but we do not anticipate that any such amounts will have a material adverse effect on our financial condition, results of operations or liquidity, regardless of the final outcome. In December 2010, Century was among several defendants named in a lawsuit filed by plaintiffs who either worked, resided or owned property in the area downwind from the St. Croix Alumina Refinery. In March 2011, Century was also named a defendant in a nearly identical suit brought by certain additional plaintiffs. The plaintiffs in both suits allege damages caused by the presence of red mud and other particulates coming from the alumina facility and are seeking unspecified monetary damages, costs and attorney fees as well as certain injunctive relief. We tendered indemnity and defense to St. Croix Alumina LLC and Alcoa Alumina & Chemical LLC under the terms of an acquisition agreement relating to the facility and have filed motions to dismiss plaintiffs’ claims. In August 2015, the Superior Court of the Virgin Islands, Division of St. Croix denied the motions to dismiss but ordered all plaintiffs to refile individual complaints. On February 28, 2018, plaintiffs in both cases filed a Motion for Voluntary Dismissal of Century without prejudice to refiling. At this time, it is not possible to predict the ultimate outcome of or to estimate a range of possible losses for any of the foregoing actions relating to the St. Croix Alumina Refinery. Legal Contingencies In addition to the foregoing matters, we have pending against us or may be subject to various lawsuits, claims and proceedings related primarily to employment, commercial, stockholder, safety and health matters. While the results of such litigation matters and claims cannot be predicted with certainty, we believe that the final outcome of such matters will not have a material adverse impact on our financial condition, results of operations or liquidity. However, because of the nature and inherent uncertainties of litigation, should the outcome of these actions be unfavorable, our business, financial condition, results of operations and liquidity could be materially and adversely affected. In evaluating whether to accrue for losses associated with legal contingencies, it is our policy to take into consideration factors such as the facts and circumstances asserted, our historical experience with contingencies of a similar nature, the likelihood of our prevailing and the severity of any potential loss. For some matters, no accrual is established because we have assessed our risk of loss to be remote. Where the risk of loss is probable and the amount of the loss can be reasonably estimated, we record an accrual, either on an individual basis or with respect to a group of matters involving similar claims, based on the factors set forth above. When we have assessed that a loss associated with legal contingencies is reasonably possible, we determine if estimates of possible losses or ranges of possible losses are in excess of related accrued liabilities, if any. Based on current knowledge, management has ascertained estimates for losses that are reasonably possible and management does not believe that any reasonably possible outcomes in excess of our accruals, if any, either individually or in aggregate, would be material to our financial condition, results of operations, or liquidity. We reevaluate and update our assessments and accruals as matters progress over time. Ravenswood Retiree Medical Benefits changes In November 2009, Century Aluminum of West Virginia ("CAWV") filed a class action complaint for declaratory judgment against the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union ("USW"), the USW’s local and certain CAWV retirees, individually and as class representatives ("CAWV Retirees"), seeking a declaration of CAWV’s rights to modify/terminate retiree medical benefits. Later in November 2009, the USW and representatives of a retiree class filed a separate suit against CAWV, Century Aluminum Company, Century Aluminum Master Welfare Benefit Plan, and various John Does with respect to the foregoing. On August 18, 2017, the District Court for the Southern District of West Virginia approved a settlement agreement in respect of these actions. Under the terms of the settlement agreement, CAWV agreed to make payments into a trust for the benefit of the CAWV Retirees in the aggregate amount of $ 23.0 million over the course of 10 years. Upon approval of the settlement, we paid $ 5.0 million to the aforementioned trust in September 2017 and recognized a gain of $5.5 million to arrive at the-then net present value of the $12.5 million . CAWV has agreed to pay the remaining amounts under the settlement agreement in annual increments of $2.0 million for nine years. As of December 31, 2018, $2.0 million was recorded in other current liabilities and $ 9.8 million was recorded in other liabilities. PBGC Settlement In 2013, we entered into a settlement agreement with the Pension Benefit Guarantee Corporation (the "PBGC") regarding an alleged "cessation of operations" at our Ravenswood facility. Pursuant to the terms of the agreement, we agreed to make additional contributions (above any minimum required contributions) to our defined benefit pension plans totaling approximately $17.4 million . Under certain circumstances, in periods of lower primary aluminum prices relative to our cost of operations, we are able to defer one or more of these payments, provided that we provide the PBGC with acceptable security for such deferred payments. We did not make any contributions during the years ended December 31, 2018, 2017 and 2016. We have elected to defer certain payments under the PBGC agreement and have provided the PBGC with the appropriate security. The remaining contributions under this agreement are approximately $9.6 million . Power Commitments and Contingencies Hawesville Hawesville has a power supply arrangement with Kenergy and EDF Trading North America, LLC (“EDF") which provides market-based power to the Hawesville smelter. Under this arrangement, the power companies purchase power on the open market and pass it through to Hawesville at Midcontinent Independent System Operator ("MISO") pricing plus transmission and other costs. The power supply arrangement with Kenergy has an effective term through December 2023. The arrangement with EDF to act as our market participant with MISO has an effective term through May 2020. Each of these agreements provides for automatic extension on a year-to-year basis unless a one year notice is given. Sebree Sebree has a power supply arrangement with Kenergy and EDF which provides market-based power to the Sebree smelter. Similar to the arrangement at Hawesville, the power companies purchase power on the open market and pass it through to Sebree at MISO pricing plus transmission and other costs. The power supply arrangement with Kenergy has an effective term through December 2023. The arrangement with EDF to act as our market participant with MISO has an effective term through May 2020. Each of these agreements provides for automatic extension on a year-to-year basis unless a one year notice is given. Mt. Holly Mt. Holly has a power supply arrangement pursuant to which 25% of the Mt. Holly load is served from the South Carolina Public Service Authority’s ("Santee Cooper") generation at a cost-based industrial rate and 75% of the Mt. Holly load is sourced from a supplier that is outside Santee Cooper’s service territory at market prices that are tied to natural gas prices. The agreement with Santee Cooper has a term through December 31, 2020 and can be terminated by Mt. Holly on a 120 days' notice. The agreement with the other power supplier has a term through December 31, 2020 and may be terminated by Mt. Holly on 60 days' notice. Grundartangi Grundartangi has power purchase agreements for approximately 525 MW with HS Orka hf ("HS"), Landsvirkjun and Orkuveita Reykjavikur ("OR") to provide power to its Grundartangi smelter. These power purchase agreements expire on various dates from 2019 through 2036 (subject to extension). The power purchase agreements with HS and OR both provide power at LME-based variable rates for the duration of these agreements. The power purchase agreement with Landsvirkjun for 161 MW provides power at LME-based variable rates through October 2019 and rates linked to the Nord Pool power market from November 2019 through the expiration of the agreement on December 31, 2023. Helguvik Nordural Helguvik ehf ("Helguvik") has a power purchase agreement with OR to provide a portion of the power requirements to the Helguvik project. The agreement would provide power at LME-based variable rates and contain take-or-pay obligations with respect to a significant percentage of the total committed and available power under such agreement. The first phase of power under the OR purchase agreement (approximately 47.5 MW) became available in the fourth quarter of 2011 and is currently being utilized at Grundartangi. The agreement also contains certain conditions to OR’s obligations with respect to the remaining phases and OR has alleged that certain of these conditions have not been satisfied. We are in discussions with OR with respect to such conditions and other matters pertaining to this agreement. Other Commitments and Contingencies Labor Commitments The bargaining unit employees at our Grundartangi, Vlissingen, Hawesville and Sebree facilities are represented by labor unions, representing approximately 65% of our total workforce. Approximately 84% of Grundartangi’s work force is represented by five labor unions, governed by a labor agreement which is effective through December 31, 2019 that establishes wages and work rules for covered employees. 100% of Vlissingen's work force is represented by the Federation for the Metal and Electrical Industry ("FME") by a labor agreement that is effective through December 1, 2020. Approximately 57% of our U.S. based work force is represented by USW. The labor agreement for Hawesville employees is effective through April 1, 2020. Century Sebree's labor agreement with the USW for its employees is effective through October 28, 2023. Mt. Holly employees are not represented by a labor union. |
Asset Retirement Obligations ('
Asset Retirement Obligations ('ARO') | 12 Months Ended |
Dec. 31, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations ('ARO') | Asset Retirement Obligations The reconciliation of the changes in our AROs is presented below: Year ended December 31, 2018 2017 Beginning balance, ARO liability $ 28.5 $ 35.4 Additional ARO liability incurred 3.6 1.4 ARO liabilities settled (6.5 ) (9.9 ) Accretion expense 1.9 1.9 Revisions in estimated cash flows (9.3 ) (0.3 ) Ending balance, ARO liability $ 18.2 $ 28.5 Revisions in estimated cash flows during 2018 were related to a change in estimate of future disposal costs of spent potliners. |
Quarterly Information (Unaudite
Quarterly Information (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |
Quarterly Information (Unaudited) | Quarterly Information (Unaudited) Financial results by quarter for the years ended December 31, 2018 and 2017 are as follows: Net sales Gross profit (loss) Net income (loss) Net income (loss) allocated to common stockholders Basic earnings (loss) per share Diluted earnings (loss) per share 2018 4th Quarter (1) $ 486.9 $ (59.3 ) $ (65.0 ) $ (65.0 ) $ (0.74 ) $ (0.74 ) 3rd Quarter (2) 481.8 (11.8 ) (20.3 ) (20.3 ) (0.23 ) (0.23 ) 2nd Quarter (3) 470.0 33.7 19.4 17.9 0.20 0.20 1st Quarter 454.5 14.5 (0.3 ) (0.3 ) (0.00 ) (0.00 ) 2017 4th Quarter (4) $ 433.9 $ 47.9 $ 35.8 $ 33.0 $ 0.38 $ 0.37 3rd Quarter 400.6 41.4 20.8 19.1 0.22 0.22 2nd Quarter 388.8 22.5 7.1 6.6 0.08 0.07 1st Quarter (5) 365.8 16.8 (15.1 ) (15.1 ) (0.17 ) (0.17 ) (1) The fourth quarter of 2018 was unfavorably impacted by realization of a lower of cost or net realizable value adjustment of $30.6 million . (2) The third quarter of 2018 was favorably impacted by a $4.5 million gain on the extinguishment of the remainder of our contractual commitments associated with the construction of the Helguvik project. (3) The second quarter of 2018 reflects our temporary curtailment of one potline at our Sebree aluminum smelter due to an equipment failure that was brought back online in the third quarter. (4) The fourth quarter of 2017 was favorably impacted by a $7.3 million gain on the extinguishment of a portion of our contractual commitments associated with the construction of the Helguvik project. (5) The first quarter of 2017 was unfavorably impacted by net losses on forward and derivative contracts of $16.1 million. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments Century Aluminum is a producer of primary aluminum, which trades as a global commodity. We are organized as a holding company with each of our operating primary aluminum smelters managed and operated as a separate facility reporting to our corporate headquarters. Each of our operating primary aluminum smelters meets the definition of an operating segment. We evaluated the similar economic and other characteristics, including nearly identical products, production processes, customers and distribution and have aggregated our four operating segments into one reportable segment, primary aluminum, based on these factors. In addition, all of our primary aluminum smelters share several key economic factors inherent in their common products and production processes. For example, all of our facilities' revenue is based on the LME price for primary aluminum. A reconciliation of our consolidated assets to the total of primary aluminum segment assets is provided below. Segment assets (1) 2018 2017 2016 Primary $ 1,480.7 $ 1,531.0 $ 1,493.0 Corporate, unallocated 56.8 50.6 47.3 Total assets $ 1,537.5 $ 1,581.6 $ 1,540.3 (1) Segment assets include accounts receivable, due from affiliates, prepaid and other current assets, inventory, intangible assets and property, plant and equipment — net; the remaining assets are unallocated corporate assets. Geographic information Included in the consolidated financial statements are the following amounts related to geographic locations: 2018 2017 2016 Net sales: United States $ 1,138.6 $ 938.4 $ 808.9 Iceland 754.6 650.7 510.2 Long-lived assets: (1) United States $ 396.0 $ 370.0 $ 395.1 Iceland 554.3 583.0 625.9 Other 76.5 75.0 78.7 (1) Includes long-lived assets other than financial instruments and deferred taxes. Major customer information In 2018, revenues from two customers exceeded 10% of our net sales compared to one customer in 2017 and 2016. A loss of these customers could have a material adverse effect on our results of operations. The net sales related to the customers is as follows: Year Ended December 31, 2018 2017 2016 Glencore $ 1,204.5 $ 1,198.1 $ 1,178.6 Southwire 222.4 77.2 — |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives As of December 31, 2018, we had an open position of 58,106 tonnes related to LME forward financial sales contracts to fix the forward LME price. These contracts are expected to settle monthly, between November 2019 and December 2020. In 2018, we also entered into Midwest Premium ("MWP") forward financial sales contracts to fix the forward MWP price. These contracts are expected to settle monthly through December 2019. As of December 31, 2018, we had an open position of 36,000 tonnes. We have financial contracts with various counterparties to offset fixed price sales arrangements with certain of our customers (the “fixed for floating swaps”) to remain exposed to the LME price. As of December 31, 2018, we had open positions related to such arrangements of 12,019 tonnes settling at various dates through March 2020. In 2017, we entered into financial contracts to fix the forward price of approximately 4% of Grundartangi's total power requirements for the period November 2019 through December 2020 (the “power price swaps”). As of December 31, 2018, we had an open position of 256,200 MWh related to the power price swaps. Because the power price swaps are settled in euros, in 2018 we entered into financial contracts to hedge the risk of fluctuations associated with the euro (the "FX swaps"). As of December 31, 2018, we had open positions related to the FX swaps for €2.8 million euros that settle monthly from November 2019 through December 2020. The following table sets forth the Company's derivative assets and liabilities that were accounted for at fair value and not designated as hedging instruments as of December 31, 2018 and 2017: Asset Fair Value 2018 2017 Commodity contracts (1) $ 8.2 $ 1.7 Foreign exchange contracts (2) — — Total $ 8.2 $ 1.7 Liability Fair Value 2018 2017 Commodity contracts (1) $ 2.2 $ 1.2 Foreign exchange contracts (2) 0.3 — Total $ 2.5 $ 1.2 (1) Commodity contracts reflect our outstanding LME forward financial sales contracts, MWP forward financial sales contracts, fixed for floating swaps, and power price swaps. (2) Foreign exchange contracts reflect our outstanding FX swaps. The following table summarizes the net gain (loss) on forward and derivative contracts for the years ended December 31, 2018, 2017, and 2016: Year Ended December 31, 2018 2017 2016 Commodity contracts $ 6.6 $ (16.5 ) $ 3.5 Foreign exchange contracts (0.3 ) — — Total $ 6.3 $ (16.5 ) $ 3.5 |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Financial Information | Condensed Consolidating Financial Information Our 2021 Notes are guaranteed by each of our material existing and future domestic subsidiaries (The "Guarantor Subsidiaries"), except for Nordural US LLC, Century Aluminum Development LLC and Century Aluminum of West Virginia, Inc. The Guarantor Subsidiaries are 100% owned by Century. All guarantees are full and unconditional; all guarantees are joint and several. These notes are not guaranteed by our foreign subsidiaries (such foreign subsidiaries, Nordural US LLC, Century Aluminum Development LLC and Century Aluminum of West Virginia, Inc., collectively the "Non-Guarantor Subsidiaries"). We allocate corporate expenses or income to our subsidiaries and charge interest on certain intercompany balances. The following summarized condensed consolidating statements of comprehensive income (loss) for the twelve months ended December 31, 2018, 2017 and 2016, condensed consolidating balance sheets as of December 31, 2018 and December 31, 2017 and the condensed consolidating statements of cash flows for the twelve months ended December 31, 2018, 2017 and 2016 present separate results for Century, the Guarantor Subsidiaries, the Non-Guarantor Subsidiaries, consolidating adjustments and total consolidated amounts. Condensed Consolidating Statements of Comprehensive Income (Loss) For the year ended December 31, 2018 The Company Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated NET SALES: Related parties $ — $ 453.6 $ 750.9 $ — $ 1,204.5 Other customers — 685.0 3.7 — 688.7 Total net sales — 1,138.6 754.6 — 1,893.2 Cost of goods sold — 1,169.2 746.9 — 1,916.1 Gross profit (loss) — (30.6 ) 7.7 — (22.9 ) Selling, general and administrative expenses 23.3 11.6 5.3 — 40.2 Helguvik (gains) — — (4.5 ) — (4.5 ) Other operating expense - net — — 0.4 — 0.4 Operating income (loss) (23.3 ) (42.2 ) 6.5 — (59.0 ) Interest expense (20.6 ) (1.6 ) (0.2 ) — (22.4 ) Intercompany Interest 36.3 9.5 (45.8 ) — — Interest income 0.3 — 1.2 — 1.5 Net gain on forward and derivative contracts 1.3 1.4 3.6 — 6.3 Other income (expense) - net 2.1 (1.9 ) 2.8 — 3.0 Income (loss) before income taxes and equity in earnings of joint ventures (3.9 ) (34.8 ) (31.9 ) — (70.6 ) Income tax (expense) benefit 2.6 — (2.4 ) — 0.2 Income (loss) before equity in earnings of joint ventures (1.3 ) (34.8 ) (34.3 ) — (70.4 ) Equity in earnings (loss) of joint ventures (64.9 ) 0.6 4.2 64.3 4.2 Net income (loss) (66.2 ) (34.2 ) (30.1 ) 64.3 (66.2 ) Other comprehensive income (loss) before income tax effect (5.5 ) (24.2 ) 5.2 19.0 (5.5 ) Income tax effect (1.5 ) — — — (1.5 ) Other comprehensive income (loss) (7.0 ) (24.2 ) 5.2 19.0 (7.0 ) Total comprehensive income (loss) $ (73.2 ) $ (58.4 ) $ (24.9 ) $ 83.3 $ (73.2 ) Condensed Consolidating Statements of Comprehensive Income (Loss) For the year ended December 31, 2017* The Company Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated NET SALES: Related parties $ — $ 547.5 $ 650.6 $ — $ 1,198.1 Other customers — 390.9 0.1 — 391.0 Total net sales — 938.4 650.7 — 1,589.1 Cost of goods sold — 885.5 572.3 — 1,457.8 Gross profit — 52.9 78.4 — 131.3 Selling, general and administrative expenses 27.2 12.9 4.7 — 44.8 Helguvik (gains) — — (7.3 ) — (7.3 ) Ravenswood (gains) — — (5.5 ) — (5.5 ) Other operating expense - net — — 2.1 — 2.1 Operating income (loss) (27.2 ) 40.0 84.4 — 97.2 Interest expense (20.4 ) (1.6 ) (0.2 ) — (22.2 ) Intercompany Interest 37.3 8.6 (45.9 ) — — Interest income 0.5 — 0.9 — 1.4 Net gain (loss) on forward and derivative contracts — (17.0 ) 0.5 — (16.5 ) Other income (expense) - net 0.2 0.4 (5.1 ) — (4.5 ) Income (loss) before income taxes and equity in earnings of joint ventures (9.6 ) 30.4 34.6 — 55.4 Income tax (expense) benefit 0.5 0.9 (9.0 ) — (7.6 ) Income (loss) before equity in earnings of joint ventures (9.1 ) 31.3 25.6 — 47.8 Equity in earnings (loss) of joint ventures 57.7 2.7 0.8 (60.4 ) 0.8 Net income 48.6 34.0 26.4 (60.4 ) 48.6 Other comprehensive income before income tax effect 23.7 12.7 1.5 (14.2 ) 23.7 Income tax effect (1.5 ) — 0.0 0.0 (1.5 ) Other comprehensive income 22.2 12.7 1.5 (14.2 ) 22.2 Total comprehensive income $ 70.8 $ 46.7 $ 27.9 $ (74.6 ) $ 70.8 *As adjusted due to the adoption of ASU 2017-07 Condensed Consolidating Statements of Comprehensive Income (Loss) For the year ended December 31, 2016* The Company Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated NET SALES: Related parties $ — $ 668.5 $ 510.1 $ — $ 1,178.6 Other customers — 140.4 0.1 — 140.5 Total net sales — 808.9 510.2 — 1,319.1 Cost of goods sold — 857.7 467.5 — 1,325.2 Gross profit (loss) — (48.8 ) 42.7 — (6.1 ) Selling, general and administrative expenses 19.4 9.9 9.6 — 38.9 Helguvik impairment — — 152.2 — 152.2 Ravenswood losses — — 26.8 — 26.8 Other operating expense - net — — 3.9 — 3.9 Operating income (loss) (19.4 ) (58.7 ) (149.8 ) — (227.9 ) Interest expense (20.3 ) (1.7 ) (0.2 ) — (22.2 ) Intercompany Interest 39.2 8.1 (47.3 ) — — Interest income 0.2 0.0 0.6 — 0.8 Net gain on forward and derivative contracts — 3.5 — — 3.5 Other income (expense) - net (0.1 ) (4.7 ) (0.3 ) — (5.1 ) Loss before income taxes and equity in earnings of joint ventures (0.4 ) (53.5 ) (197.0 ) — (250.9 ) Income tax (expense) benefit 1.9 — (4.7 ) — (2.8 ) Loss before equity in earnings (loss) of joint ventures 1.5 (53.5 ) (201.7 ) — (253.7 ) Equity in earnings (loss) of subsidiaries and joint ventures (253.9 ) 12.5 1.3 241.4 1.3 Net loss (252.4 ) (41.0 ) (200.4 ) 241.4 (252.4 ) Other comprehensive income before income tax effect 0.3 1.9 5.1 (7.0 ) 0.3 Income tax effect (1.5 ) — 0.0 0.0 (1.5 ) Other comprehensive income (loss) (1.2 ) 1.9 5.1 (7.0 ) (1.2 ) Total comprehensive loss $ (253.6 ) $ (39.1 ) $ (195.3 ) $ 234.4 $ (253.6 ) *As adjusted due to the adoption of ASU 2017-07 Condensed Consolidating Balance Sheet As of December 31, 2018 The Company Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated Cash & cash equivalents $ 0.1 $ 0.0 $ 38.8 $ — $ 38.9 Restricted cash — 0.8 — — 0.8 Accounts receivable - net 0.5 81.8 0.2 — 82.5 Due from affiliates — 13.1 9.6 — 22.7 Inventories — 210.7 133.1 — 343.8 Prepaid and other current assets 6.4 3.4 8.2 — 18.0 Total current assets 7.0 309.8 189.9 — 506.7 Property, plant and equipment - net 20.6 320.7 626.0 — 967.3 Investment in subsidiaries 668.3 54.5 — (722.8 ) — Due from affiliates - long term 751.7 517.6 7.2 (1,276.5 ) — Other assets 29.8 2.1 31.6 — 63.5 TOTAL 1,477.4 1,204.7 854.7 (1,999.3 ) 1,537.5 Accounts payable, trade 3.7 84.1 31.6 — 119.4 Due to affiliates — — 10.3 — 10.3 Accrued and other current liabilities 15.8 22.8 13.9 — 52.5 Accrued employee benefits costs 1.9 8.3 0.8 — 11.0 Revolving credit facility 23.3 — — — 23.3 Industrial revenue bonds — 7.8 — — 7.8 Total current liabilities 44.7 123.0 56.6 — 224.3 Senior notes payable 248.6 — — — 248.6 Accrued pension benefits costs - less current portion 23.2 20.7 7.0 — 50.9 Accrued postretirement benefits costs - less current portion 0.7 98.9 1.6 — 101.2 Other liabilities 2.8 23.5 19.7 — 46.0 Due to affiliates - long term 395.4 307.6 573.5 (1,276.5 ) — Deferred taxes (0.2 ) 1.8 102.7 — 104.3 Total noncurrent liabilities 670.5 452.5 704.5 (1,276.5 ) 551.0 Preferred stock 0.0 — — — 0.0 Common stock 1.0 — 0.1 (0.1 ) 1.0 Other shareholders' equity 761.2 629.2 93.5 (722.7 ) 761.2 Total shareholders' equity 762.2 629.2 93.6 (722.8 ) 762.2 TOTAL $ 1,477.4 $ 1,204.7 $ 854.7 $ (1,999.3 ) $ 1,537.5 Condensed Consolidating Balance Sheet As of December 31, 2017 The Company Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated Cash & cash equivalents $ 64.3 $ (0.1 ) $ 103.0 $ — $ 167.2 Restricted cash — 0.8 — — 0.8 Accounts receivable - net — 42.8 0.3 — 43.1 Due from affiliates 0.1 10.3 — — 10.4 Inventories 0.2 205.1 112.2 — 317.5 Prepaid and other current assets 3.3 0.8 10.6 — 14.7 Total current assets 67.9 259.7 226.1 — 553.7 Property, plant and equipment - net 19.4 295.8 656.7 — 971.9 Investment in subsidiaries 751.8 54.0 — (805.8 ) — Due from affiliates - long term 513.3 349.6 9.4 (872.3 ) — Other assets 28.0 34.1 25.9 (32.0 ) 56.0 TOTAL 1,380.4 993.2 918.1 (1,710.1 ) 1,581.6 Accounts payable, trade 6.3 51.4 32.2 — 89.9 Due to affiliates 0.4 2.6 17.4 — 20.4 Accrued and other current liabilities 16.0 19.3 26.1 — 61.4 Accrued employee benefits costs 1.9 8.3 0.8 — 11.0 Industrial revenue bonds — 7.8 — — 7.8 Total current liabilities 24.6 89.4 76.5 — 190.5 Senior notes payable 248.2 — — — 248.2 Accrued pension benefits costs - less current portion 39.5 18.3 13.1 (32.0 ) 38.9 Accrued postretirement benefits costs - less current portion 0.9 110.4 1.7 — 113.0 Other liabilities 3.5 32.0 22.4 — 57.9 Due to affiliates - long term 234.1 53.8 584.4 (872.3 ) — Deferred taxes — 1.7 101.8 — 103.5 Total noncurrent liabilities 526.2 216.2 723.4 (904.3 ) 561.5 Preferred stock 0.0 — — — 0.0 Common stock 0.9 — 0.1 (0.1 ) 0.9 Other shareholders' equity 828.7 687.6 118.1 (805.7 ) 828.7 Total shareholders' equity 829.6 687.6 118.2 (805.8 ) 829.6 TOTAL $ 1,380.4 $ 993.2 $ 918.1 $ (1,710.1 ) $ 1,581.6 Condensed Consolidating Statement of Cash Flows For the year ended December 31, 2018 The Company Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated Net cash provided by (used in) operating activities $ (53.0 ) $ (19.5 ) $ 3.4 $ — $ (69.1 ) Purchase of property, plant and equipment (4.4 ) (65.1 ) (13.5 ) — (83.0 ) Proceeds from sale of property, plant and equipment — — 0.1 — 0.1 Intercompany transactions 21.6 54.7 2.2 (78.5 ) — Net cash provided by (used in) investing activities 17.2 (10.4 ) (11.2 ) (78.5 ) (82.9 ) Borrowings under revolving credit facilities 120.1 — — — 120.1 Repayments under revolving credit facilities (96.8 ) — — — (96.8 ) Issuance of common stock 0.4 — — — 0.4 Intercompany transactions (52.1 ) 30.0 (56.4 ) 78.5 — Net cash provided by (used in) financing activities (28.4 ) 30.0 (56.4 ) 78.5 23.7 CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (64.2 ) 0.1 (64.2 ) — (128.3 ) Cash, cash equivalents, and restricted cash, beginning of period 64.3 0.7 103.0 — 168.0 Cash, cash equivalents, and restricted cash, end of period $ 0.1 $ 0.8 $ 38.8 $ — $ 39.7 Condensed Consolidating Statement of Cash Flows For the year ended December 31, 2017* The Company Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated Net cash provided by (used in) operating activities $ (34.5 ) $ (7.0 ) $ 96.0 $ (3.0 ) $ 51.5 Purchase of property, plant and equipment (10.9 ) (8.1 ) (12.8 ) — (31.8 ) Proceeds from sale of property, plant and equipment — 0.9 13.5 — 14.4 Intercompany transactions 75.6 6.2 (7.6 ) (74.2 ) — Net cash provided by (used in) investing activities 64.7 (1.0 ) (6.9 ) (74.2 ) (17.4 ) Borrowings under revolving credit facilities 1.3 — — — 1.3 Repayments under revolving credit facilities (1.3 ) — — — (1.3 ) Issuance of common stock 0.4 — — — 0.4 Intercompany transactions (3.1 ) 8.2 (82.3 ) 77.2 — Net cash provided by (used in) financing activities (2.7 ) 8.2 (82.3 ) 77.2 0.4 CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH 27.5 0.2 6.8 — 34.5 Cash, cash equivalents, and restricted cash, beginning of period 36.8 0.5 96.2 — 133.5 Cash, cash equivalents, and restricted cash, end of period $ 64.3 $ 0.7 $ 103.0 $ — $ 168.0 *As adjusted due to the adoption of ASU 2016-18. Condensed Consolidating Statement of Cash Flows For the year ended December 31, 2016* The Company Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated Net cash provided by operating activities $ (63.4 ) $ 19.0 $ 82.6 $ — $ 38.2 Purchase of property, plant and equipment (1.4 ) (7.8 ) (12.7 ) — (21.9 ) Proceeds from sale of property, plant and equipment — — 1.0 — 1.0 Intercompany transactions 27.8 (15.4 ) (0.9 ) (11.5 ) — Net cash used in investing activities 26.4 (23.2 ) (12.6 ) (11.5 ) (20.9 ) Borrowings under revolving credit facilities 1.2 — — — 1.2 Repayments under revolving credit facilities (1.2 ) — — — (1.2 ) Intercompany transactions 15.4 7.5 (34.4 ) 11.5 — Net cash used in financing activities 15.4 7.5 (34.4 ) 11.5 — CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (21.6 ) 3.3 35.6 — 17.3 Cash, cash equivalents, and restricted cash, beginning of period 58.4 (2.8 ) 60.6 — 116.2 Cash, cash equivalents, and restricted cash, end of period $ 36.8 $ 0.5 $ 96.2 $ — $ 133.5 *As adjusted due to the adoption of ASU 2016-18. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation — The consolidated financial statements include the accounts of Century Aluminum Company and our subsidiaries, after elimination of all intercompany transactions and accounts. Our interest in the BHH joint venture is accounted for under the equity method on a one-quarter lag. |
Revenue recognition | Revenue recognition — See Note 3. Revenue . We enter into contracts to sell primary aluminum to our customers. Revenue is recognized when our performance obligations with our customer are satisfied. Our obligations under the contracts are satisfied when we transfer control of our primary aluminum to our customer which is generally upon shipment or delivery to customer directed locations. The amount of consideration we receive, thus the revenue we recognize, is a function of volume delivered, market price of primary aluminum, as determined on the LME, plus regional premiums and any value-added product premiums. The payment terms and conditions in our contracts vary and are not significant to our revenue. We complete an appropriate credit evaluation for each customer at contract inception. Customer payments are due in arrears and are recognized as accounts receivable - net and due from affiliates in our consolidated balance sheets. Accounts receivable - net increased $ 39.4 million from December 31, 2017 to December 31, 2018, driven primarily by the increase in direct sales to end users with longer payment terms than our related party customer. In connection with our sales agreement with Glencore, we invoice Glencore prior to physical shipment of goods for substantially all production generated from each of our U.S. domestic smelters. For those sales, revenue is recognized only when Glencore has specifically requested such treatment and has made a commitment to purchase the product. The goods must be complete, ready for shipment and separated from other inventory with control over the goods passing to Glencore. We must retain no further performance obligations. |
Cash and Cash Equivalents | Cash and Cash Equivalents — Cash and cash equivalents are comprised of cash, money market funds and short-term investments having original maturities of three months or less. The carrying amount of cash equivalents approximates fair value. |
Accounts Receivable and Due from Affiliates | Accounts Receivable and Due from Affiliates — These amounts are net of an allowance for uncollectible accounts and credit memos of $ 1.0 at December 31, 2018 and 2017 . |
Inventories | Inventories — Our inventories are stated at the lower of cost or net realizable value, using the first-in, first-out ("FIFO") and the weighted average cost method. Due to the nature of our business, our inventory values are subject to market price changes and these changes can have a significant impact on cost of goods sold and gross profit in any period. Reductions in net realizable value below cost basis at the end of a period will have an impact on our cost of goods sold as this inventory is sold in subsequent periods. |
Property, Plant and Equipment | Property, Plant and Equipment — Property, plant and equipment is stated at cost. Additions and improvements are capitalized. Asset and accumulated depreciation accounts are relieved for dispositions with resulting gains or losses included in Other income (expense) – net . Maintenance and repairs are expensed as incurred. Depreciation of plant and equipment is provided for by the straight-line method over the following estimated useful lives: Building and improvements 10 to 45 years Machinery and equipment 5 to 35 years Technology and software 3 to 7 years |
Impairment of long-lived assets | Impairment of long-lived assets — We evaluate our property, plant and equipment for potential impairment whenever events or circumstances indicate that the carrying amount of these assets may not be recoverable. If deemed unrecoverable, an impairment loss would be recognized for the amount by which the carrying amount exceeds the fair value of the assets. Impairment evaluation and fair value is based on estimates and assumptions that take into account our business plans and a long-term investment horizon. |
Income Taxes | Income Taxes — We account for income taxes using the asset and liability method, whereby deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. In evaluating our ability to realize deferred tax assets, we use judgment to determine if it is more likely than not that some portion or all of a deferred tax asset will not be realized, and if a corresponding valuation allowance is required. |
Defined Benefit Pension and Other Postretirement Benefits | Defined Benefit Pension and Other Postretirement Benefits — We sponsor defined benefit pension and OPEB plans for certain of our domestic hourly and salaried employees and a supplemental executive retirement benefit plan for certain current and former executive officers. Plan assets and obligations are measured annually or more frequently if there is a re-measurement event, based on the Company’s measurement date utilizing various actuarial assumptions. We attribute the service costs for the plans over the working lives of plan participants. The effects of actual results differing from our assumptions and the effects of changing assumptions are considered actuarial gains or losses. Actuarial gains or losses are recorded in Accumulated Other Comprehensive Income (Loss). We contribute to our defined benefit pension plans based upon actuarial and economic assumptions designed to achieve adequate funding of the projected benefit obligations and to meet the minimum funding requirements. |
Postemployment Benefits | Postemployment Benefits — We provide certain postemployment benefits to certain former and inactive employees and their dependents during the period following employment, but before retirement. These benefits include salary continuance, supplemental unemployment and disability healthcare. We recognize the estimated future cost of providing postemployment benefits on an accrual basis over the active service life of the employee. |
Derivative and Hedging | Derivative and Hedging — As a global producer of primary aluminum, our operating results and cash flows from operations are subject to risk of fluctuations in the market prices of primary aluminum. We may from time to time enter into financial contracts to manage our exposure to such risk. Derivative instruments may consist of variable to fixed financial contracts and back-to-back fixed to floating arrangements for a portion of our sale of primary aluminum, where we receive fixed and pay floating prices from our customers and to counterparties, respectively. These derivatives are not designated as cash flow hedges. Derivative and hedging instruments are recorded in prepaid and other current assets, other assets, accrued and other current liabilities and other long term liabilities in the consolidated balance sheets at fair value. We value our derivative and hedging instruments using quoted market prices and other significant unobservable inputs. We recognize changes in fair value and settlements of derivative instruments in net gain (loss) on forward and derivative contracts in the consolidated statements of operations as they occur. |
Foreign Currency | Foreign Currency – We are exposed to foreign currency risk due to fluctuations in the value of the U.S. dollar as compared to the euro, the Icelandic krona ("ISK") and the Chinese renminbi. Grundartangi and Vlissingen use the U.S. dollar as their functional currency, as contracts for sales and purchases of alumina and power are denominated in U.S. dollar. BHH uses the renminbi as its functional currency. Transactions denominated in currencies other than the functional currency are recorded based on exchange rates at the time such transactions arise and any transaction gains and losses are reflected in Other income (expense) – net in the consolidated statements of operations. |
Financial Instruments | Financial Instruments — Receivables, certain life insurance policies, payables, borrowings under revolving credit facilities and debt related to industrial revenue bonds ("IRBs") are carried at amounts that approximate fair value. |
Earnings per share | Earnings per share — Basic earnings (loss) per share ("EPS") amounts are calculated by dividing earnings (loss) available to common stockholders by the weighted average number of common shares outstanding. Diluted EPS amounts assume the issuance of common stock for all potentially dilutive common shares outstanding. Because our capital structure consists of common stock and participating convertible preferred stock, we use the two-class method to calculate basic EPS, and incorporate the use of such method to determine diluted EPS. Our Series A Convertible Preferred Stock is a non-cumulative perpetual participating convertible preferred stock with no set dividend preferences. In periods where we report net losses, we do not allocate these losses to the convertible preferred stock for the computation of basic or diluted EPS. |
Asset Retirement Obligations | Asset Retirement Obligations — We are subject to environmental regulations which create certain legal obligations related to the normal operations of our domestic primary aluminum smelter operations. Our asset retirement obligations ("AROs") consist primarily of costs associated with the disposal of spent potliner used in the reduction cells of our domestic facilities. AROs are recorded on a discounted basis at the time the obligation is incurred (when the potliner is put in service) and accreted over time for the change in the present value of the liability. We capitalize the asset retirement costs by increasing the carrying amount of the related long-lived assets and depreciating these assets over their remaining useful lives. Certain conditional asset retirement obligations ("CAROs") relate to the remediation of our primary aluminum facilities for hazardous material, such as landfill materials and asbestos which have not been recorded because they have an indeterminate settlement date. CAROs are a legal obligation to perform an asset retirement activity in which the timing and (or) method of settlement are conditional on a future event that may or may not be within our control. |
Concentration of Credit Risk | Concentrations of Credit Risk — Financial instruments, which potentially expose us to concentrations of credit risk, consist principally of trade receivables. Our limited customer base increases our concentrations of credit risk with respect to trade receivables. We routinely assess the financial strength of our customers and collectability of our trade receivables. |
Share-Based Compensation | Share-Based Compensation — We measure the cost of employee services received in exchange for an award of equity instruments based on the fair value of the award on the grant date. We recognize the cost over the period during which an employee is required to provide service in exchange for the award. We issue shares to satisfy the requirements of our share-based compensation plans. At this time, we do not plan to issue treasury shares to support our share-based compensation plans, but we may in the future. We award performance units to certain officers and employees. The performance units may be settled in cash or common stock at the discretion of the Board. We have not issued any stock options since 2009. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-07 Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-07”) which requires an entity to report the service cost component of pension cost and postretirement benefit cost as compensation expense during the employee's service period. The other components of net periodic pension benefit costs and post retirement benefit costs will be presented outside a subtotal of income from operations. Prior to the adoption of ASU 2017-07, pension and OPEB costs were reported as cost of goods sold and selling, general and administrative expenses on the Company's consolidated statements of operations. The Company adopted ASU 2017-07 during 2018, which resulted in the retrospective reclassification of $3.3 million and $6.2 million from operating income (loss) to other income (expense) - net on the consolidated statements of operations for the years ended December 31, 2017 and 2016, respectively. In November 2016, the FASB issued ASU 2016-18 "Statement of Cash Flows (Topic 230) Restricted Cash." The Company adopted ASU 2016-18 during 2018. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. In February 2016, the FASB” issued ASU 2016-02, “Leases (Topic 842)” which supersedes the existing guidance on accounting for leases in “Leases (Topic 840)”. The objective of ASU 2016-02 is to provide enhanced transparency and comparability among organizations by, among other things, recognizing right-of-use assets and lease liabilities on the balance sheet for all leases other than those that meet the definition of short-term leases and disclosing qualitative and quantitative information about lease arrangements. ASU 2016-02 is effective for Century beginning January 1, 2019 and will be adopted using a modified retrospective approach. Through December 31, 2018, we have completed our review of our 2018 leases and contractual agreements that fall within the scope of ASU 2016-02. Based on our assessment completed to date, we expect the adoption of ASU 2016-02 will impact the balance sheet with the addition of right-to-use assets and corresponding lease liabilities in the range of $20.0 million to $26.0 million for the Company’s operating leases as defined under previous accounting guidance. We do not anticipate the adoption of this standard to have any impact on our cash flows. The Company will elect the package of practical expedients on adoption, which will retain the lease identification, classification and initial direct costs for leases that commenced prior to the adoption date. Additionally, the Company will elect the recognition exemption which allows the Company to not recognize lease assets and lease liabilities on the Consolidated Balance Sheet for leases with an initial term of 12 months or less and to not separate associated lease and non-lease components within a contract as permitted by the standards. In conjunction with the aforementioned implementation activities, we have continued enhancing our internal processes and controls to capture arrangements that are likely to be in scope of the standard upon and post adoption. We continue to monitor modifications, clarifications and interpretations undertaken by the FASB and the SEC and changes in our business and new arrangements, which may impact our current conclusions. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | A summary of the aforementioned significant related party transactions for the years ended December 31, 2018 , 2017 and 2016 is as follows: Year Ended December 31, 2018 2017 2016 Net sales to Glencore $ 1,204.5 $ 1,198.1 $ 1,178.6 Purchases from Glencore 319.6 253.0 231.9 Purchases from BHH 28.4 15.8 10.1 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | We disaggregate our revenue by geographical region as follows: Year ended December 31, Net Sales 2018 2017 2016 United States $ 1,138.6 $ 938.4 $ 808.9 Iceland 754.6 650.7 510.2 Total $ 1,893.2 $ 1,589.1 $ 1,319.1 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial assets and liabilities at fair value on a recurring basis | Recurring Fair Value Measurements As of December 31, 2018 Level 1 Level 2 Level 3 Total ASSETS: Cash equivalents $ 7.5 $ — $ — $ 7.5 Trust assets (1) 0.1 — — 0.1 Surety bonds 2.1 — — 2.1 Derivative instruments — 3.2 5.0 8.2 TOTAL $ 9.7 $ 3.2 $ 5.0 $ 17.9 LIABILITIES: Contingent obligation – net (2) $ — $ — $ — $ — Derivative instruments — 2.0 0.5 2.5 TOTAL $ — $ 2.0 $ 0.5 $ 2.5 Recurring Fair Value Measurements As of December 31, 2017 Level 1 Level 2 Level 3 Total ASSETS: Cash equivalents $ 142.8 $ — $ — $ 142.8 Trust assets (1) 1.8 — — 1.8 Surety bonds 1.6 — — 1.6 Derivative instruments — — 1.7 1.7 TOTAL $ 146.2 $ — $ 1.7 $ 147.9 LIABILITIES: Contingent obligation – net (2) $ — $ — $ — $ — Derivative instruments — — 1.2 1.2 TOTAL $ — $ — $ 1.2 $ 1.2 (1) Trust assets are currently invested in money market funds. These trust assets are held to fund the non-qualified supplemental executive pension benefit obligations for certain of our officers. (2) See Note 6 Debt for additional information about the contingent obligation. |
Schedule of valuation methodology for assets and liabilities at fair value | The following section describes the valuation techniques and inputs used for fair value measurements categorized within Level 2 or Level 3 of the fair value hierarchy: Level 2 and Level 3 Fair Value Measurements: Asset / Liability Level Valuation Techniques Inputs LME forward financial sales contracts 3 Discounted cash flows Quoted LME forward market, discount rate MWP forward financial sales contracts 2 Discounted cash flows Quoted MWP forward market Fixed for floating swaps 2 Discounted cash flows Quoted LME forward market, quoted MWP forward market Power price swaps 3 Discounted cash flows Quoted Nordpool forward market, discount rate FX swaps 3 Discounted cash flows Euro/USD forward exchange rate, discount rate Contingent obligation 3 Discounted cash flows Quoted LME forward market, management's estimates of the LME forward market prices for periods beyond the quoted periods, management's estimates of future level of operations |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of debt | December 31, 2018 2017 Debt classified as current liabilities: Hancock County industrial revenue bonds ("IRBs") due April 2028, interest payable quarterly (variable interest rates (not to exceed 12%)) (1) $ 7.8 $ 7.8 U.S. Revolving Credit Facility (2) 23.3 — Debt classified as non-current liabilities: 7.5% senior secured notes due June 2021, net of debt discount of $1.4 million and $1.8 million, respectively, interest payable semiannually 248.6 248.2 Total $ 279.7 $ 256.0 (1) The IRBs are classified as current liabilities because they are remarketed weekly and could be required to be repaid upon demand if there is a failed remarketing. The IRB interest rate at December 31, 2018 was 1.90% . (2) The U.S. revolving credit facility is classified as a current liability because we repay amounts outstanding and re-borrow funds based on our working capital requirements. For borrowings that we expect to repay within a month, we generally elect to incur interest at a base rate plus applicable margin as defined within the agreement. The interest rate at December 31, 2018 was 5.75% . |
Schedule of line of credit facilities | Status of our U.S. revolving credit facility: December 31, 2018 Credit facility maximum amount $ 175.0 Borrowing availability 175.0 Outstanding letters of credit issued 44.8 Outstanding borrowings 23.3 Borrowing availability, net of outstanding letters of credit and borrowings $ 106.9 Status of our Iceland revolving credit facility: December 31, 2018 Credit facility maximum amount $ 50.0 Borrowing availability 50.0 Outstanding letters of credit issued — Outstanding borrowings — Borrowing availability, net of outstanding letters of credit and borrowings $ 50.0 |
Schedule of debt instrument redemption | We may redeem the 2021 Notes, in whole or in part, for 101.875% of the outstanding principal amount plus accrued and unpaid interest before June 1, 2019 or for 100% of the outstanding principal amount plus accrued and unpaid interest on June 1, 2019 and thereafter. |
Schedule of offsetting of financial instruments and derivatives | The following table provides information about the balance sheet location and gross amounts offset: Offsetting of financial instruments and derivatives Balance sheet location December 31, 2018 December 31, 2017 Contingent obligation – principal Other liabilities $ (12.9 ) $ (12.9 ) Contingent obligation – accrued interest Other liabilities (10.9 ) (9.5 ) Contingent obligation – derivative asset Other liabilities 23.8 22.4 $ — $ — |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Common and Preferred Stock Activity | The Common and Preferred Stock Activity table below contains additional information about preferred stock conversions during 2018 , 2017 and 2016 : Common and Preferred Stock Activity: Preferred stock Common stock (in shares) Series A Convertible Treasury Outstanding Balance as of December 31, 2015 76,539 7,186,521 87,038,050 Repurchase of common stock — — — Conversion of convertible preferred stock (914 ) — 91,362 Issuance for share-based compensation plans — — 121,485 Beginning balance as of December 31, 2016 75,625 7,186,521 87,250,897 Repurchase of common stock — — — Conversion of convertible preferred stock (1,261 ) — 126,098 Issuance for share-based compensation plans — — 167,782 Beginning balance as of December 31, 2017 74,364 7,186,521 87,544,777 Repurchase of common stock — — — Conversion of convertible preferred stock (2,397 ) — 239,748 Issuance for share-based compensation plans — — 318,915 Ending balance as of December 31, 2018 71,967 7,186,521 88,103,440 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory, Net [Abstract] | |
Schedule of Inventories | Inventories, at December 31, consist of the following: 2018 2017 Raw materials $ 100.8 $ 106.2 Work-in-process 49.5 49.6 Finished goods 47.3 40.9 Operating and other supplies 146.2 120.8 Inventories $ 343.8 $ 317.5 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Summary of property, plant and equipment | Property, plant and equipment, at December 31, consist of the following: 2018 2017 Land and improvements $ 41.8 $ 41.8 Buildings and improvements 337.3 331.7 Machinery and equipment 1,449.5 1,398.7 Construction in progress 46.3 22.5 1,874.9 1,794.7 Less accumulated depreciation (907.6 ) (822.8 ) Property, plant and equipment - net $ 967.3 $ 971.9 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (AOCL) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Additional financial information disclosures [Abstract] | |
Components of Accumulated Other Comprehensive Loss | Components of AOCL 2018 2017 Defined benefit plan liabilities $ (107.3 ) $ (102.1 ) Unrealized gain (loss) on financial instruments 2.5 2.7 Other comprehensive loss before income tax effect (104.8 ) (99.4 ) Income tax effect (1) 6.1 7.7 Accumulated other comprehensive loss $ (98.7 ) $ (91.7 ) (1) The allocation of the income tax effect to the components of other comprehensive loss is as follows: 2018 2017 Defined benefit plan liabilities $ 6.6 $ 8.2 Unrealized loss on financial instruments (0.5 ) (0.5 ) The following table summarizes the changes in the accumulated balances for each component of AOCL: Defined benefit plan and other postretirement liabilities Unrealized gain (loss) on financial instruments Total, net of tax Balance, December 31, 2015 $ (110.7 ) $ (2.0 ) $ (112.7 ) Other comprehensive (loss) before reclassifications (9.5 ) — (9.5 ) Net amount reclassified to net income (loss) 4.0 4.3 8.3 Balance, December 31, 2016 (116.2 ) 2.3 (113.9 ) Other comprehensive income before reclassifications 20.3 — 20.3 Net amount reclassified to net income (loss) 2.1 (0.2 ) 1.9 Balance, December 31, 2017 (93.8 ) 2.1 (91.7 ) Other comprehensive (loss) before reclassifications (7.3 ) — (7.3 ) Net amount reclassified to net income (loss) 0.4 (0.1) 0.3 Balance, December 31, 2018 $ (100.7 ) $ 2.0 $ (98.7 ) |
Reclassification out of AOCI | Reclassifications out of AOCL were included in the consolidated statements of operations as follows: AOCL Components Location 2018 2017 2016 Defined benefit plan and other postretirement liabilities Cost of goods sold $ 2.8 $ 3.1 $ 3.5 Selling, general and administrative expenses (1.9 ) (0.4 ) 0.5 Other operating expense, net 1.2 1.0 1.6 Income tax expense (1.6 ) (1.6 ) (1.5 ) Net of tax $ 0.5 $ 2.1 $ 4.1 Gain (loss) on financial instruments Cost of goods sold $ (0.2 ) $ (0.2 ) $ (0.2 ) Helguvik impairment — — 4.5 Income tax benefit 0.0 0.0 (0.0 ) Net of tax $ (0.2 ) $ (0.2 ) $ 4.3 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Changes in Projected Benefit Obligations | The change in benefit obligations and change in plan assets as of December 31 are as follows: Pension OPEB 2018 2017 2018 2017 Change in benefit obligation: Benefit obligation at beginning of year $ 344.1 $ 328.0 $ 120.8 $ 133.9 Service cost 4.3 4.4 0.2 0.8 Interest cost 12.4 13.3 4.2 5.3 Plan amendments 0.5 — 0.1 (27.4 ) Actuarial (gain) loss (28.0 ) 18.5 (10.5 ) 14.7 Medicare Part D — — 0.3 0.4 Benefits paid (18.9 ) (20.1 ) (6.4 ) (6.9 ) Benefit obligation at end of year $ 314.4 $ 344.1 $ 108.7 $ 120.8 |
Schedule of Changes in Fair Value of Plan Assets | Pension OPEB 2018 2017 2018 2017 Change in plan assets: Fair value of plan assets at beginning of year $ 303.4 $ 276.7 $ — $ — Actual return on plan assets (24.6 ) 45.0 — — Employer contributions 1.8 1.8 6.1 6.5 Medicare Part D subsidy received — — 0.3 0.4 Benefits paid (18.9 ) (20.1 ) (6.4 ) (6.9 ) Fair value of assets at end of year $ 261.7 $ 303.4 $ — $ — |
Schedule of Amounts Recognized in Balance Sheet | Pension OPEB 2018 2017 2018 2017 Funded status of plans: Funded status $ (52.7 ) $ (40.7 ) $ (108.7 ) $ (120.8 ) Amounts recognized in the Consolidated Balance Sheets: Non-current assets — — — — Current liabilities (1.8 ) (1.8 ) (7.5 ) (7.5 ) Non-current liabilities (50.9 ) (38.9 ) (101.2 ) (113.3 ) Net amount recognized $ (52.7 ) $ (40.7 ) $ (108.7 ) $ (120.8 ) Amounts recognized in accumulated other comprehensive loss (pre-tax): Net loss $ 83.7 $ 71.2 $ 43.9 $ 58.4 Prior service cost (benefit) 1.4 1.0 (21.6 ) (28.9 ) Total $ 85.1 $ 72.2 $ 22.3 $ 29.5 |
Schedule of Net Benefit Cost | Net Periodic Benefit Cost: Year Ended December 31, Pension OPEB 2018 2017 2016 2018 2017 2016 Service cost $ 4.3 $ 4.4 $ 4.6 $ 0.2 $ 0.8 $ 1.0 Interest cost 12.4 13.3 13.9 4.2 5.3 5.6 Expected return on plan assets (21.1 ) (19.0 ) (18.8 ) — — — Amortization of prior service costs 0.1 0.1 0.1 (7.3 ) (3.7 ) (2.7 ) Amortization of net loss 5.2 4.7 4.7 4.0 3.9 3.5 Curtailment (benefit) cost — — — — (1.4 ) — Net periodic benefit cost $ 0.9 $ 3.5 $ 4.5 $ 1.2 $ 4.9 $ 7.4 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Other changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss (pre-tax): Year Ended December 31, Pension OPEB 2018 2017 2018 2017 Net loss (gain) $ 17.6 $ (7.5 ) $ (10.5 ) $ 14.7 Prior service cost (benefit) 0.5 — 0.1 (27.4 ) Amortization of net loss, including recognition due to settlement (5.2 ) (4.7 ) (4.0 ) (3.9 ) Amortization of prior service (cost) benefit, including recognition due to curtailment (0.1 ) (0.1 ) 7.2 5.1 Total amount recognized in other comprehensive loss 12.8 (12.3 ) (7.2 ) (11.5 ) Net periodic benefit cost 0.9 3.5 1.2 4.9 Total recognized in net periodic benefit cost and other comprehensive loss $ 13.7 $ (8.8 ) $ (6.0 ) $ (6.6 ) |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | Amounts in accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost during 2019 Pension OPEB Amortization of net loss $ 5.9 $ 3.7 Amortization of prior service cost (benefit) 0.1 (7.2 ) |
Schedule of Weighted Average Assumptions Used in Calculating Benefit Obligation and Net Periodic Benefit Cost | Weighted average assumptions used to determine net periodic benefit cost for the years ended December 31: Pension OPEB 2018 2017 2016 2018 2017 2016 Measurement date 12/31/2017 12/31/2016 12/31/2015 12/31/2017 12/31/2016 12/31/2015 Fiscal year end 12/31/2018 12/31/2017 12/31/2016 12/31/2018 12/31/2017 12/31/2016 Discount rate (1) 3.69% 4.15% 4.44% 3.66% 4.05% 4.50% Rate of compensation increase (2) 3%/4% 3%/4% 3%/4% 3%/4% 3%/4% 3%/4% Expected return on plan assets (3) 7.18% 6.82% 7.10% — — — (1) We use the Ryan Above Median Yield Curve to determine the discount rate. (2) For 2018, the rate of compensation increase is 3% per year for the first year and 3.5% per year thereafter. For 2017, the rate of compensation increase is 3% for the first two years and 4% per year thereafter. For 2016, the rate of compensation increase is 3% per year for the first three years and 4% per year thereafter. (3) The rate for each of our defined benefit plans was selected by taking into account our expected asset mix and is based on historical performance as well as expected future rates of return on plan assets. Weighted average assumptions used to determine benefit obligations at December 31: Pension OPEB 2018 2017 2018 2017 Discount rate (1) 4.39% 3.69% 4.27% 3.66% Rate of compensation increase (2) 3%/3.5% 3%/4% 3%/3.5% 3%/4% Measurement date 12/31/2018 12/31/2017 12/31/2018 12/31/2017 |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one-percentage-point change in the assumed health care cost trend rate would have had the following effects in 2018 : 1% Increase 1% Decrease Effect on total of service and interest cost $ 0.4 $ (0.4 ) Effect on accumulated postretirement benefit obligation 10.6 (9.1 ) |
Schedule of Allocation of Plan Assets | Fair Value of Pension Plans’ assets included under the fair value hierarchy: As of December 31, 2018 Level 1 Level 2 Level 3 Total Equities: U.S. equities $ 66.5 $ — $ — $ 66.5 International equities 49.0 — — 49.0 Fixed income 146.2 — — 146.2 Total $ 261.7 $ — $ — $ 261.7 As of December 31, 2017 Equities: U.S. equities $ 86.5 $ — $ — $ 86.5 International equities 79.1 — — 79.1 Fixed income 137.7 — — 137.7 Total $ 303.3 $ — $ — $ 303.3 The Pension Plans’ weighted average long-term strategic asset allocation policy targets are as follows: Pension Plan Asset Allocation 2018 Target December 31, 2018 December 31, 2017 Equities: U.S. equities 26% 25% 29% International equities 22% 19% 26% Fixed income 52% 56% 45% 100% 100% |
Schedule Of Expected Benefit Plan Contributions | We expect to make the following contributions for 2019 : 2019 Expected pension plan contributions $ 1.8 Expected OPEB benefits payments 7.5 |
Schedule of Expected Benefit Payments | The following table provides the estimated future benefit payments for the pension and other postretirement benefit plans: Pension Benefits OPEB Benefits 2019 $ 20.6 $ 7.5 2020 20.8 7.4 2021 20.9 7.6 2022 21.1 7.6 2023 21.1 7.6 2024 – 2028 100.6 37.0 |
Schedule of Multiemployer Plans | Century’s participation in the plan for the year ended December 31, 2018 , is outlined in the table below. Fund Steelworkers Pension Trust EIN / PN 23-6648508/499 Pension Protection Act Zone Status 2018 (1) Green Pension Protection Act Zone Status 2017 (1) Green Subject to Financial Improvement/Rehabilitation Plan No Contributions of Century Aluminum 2018 $1.0 Contributions of Century Aluminum 2017 $0.8 Contributions of Century Aluminum 2016 $0.8 Withdrawal from Plan Probable No Surcharge Imposed No Expiration Date of Collective Bargaining Agreement April 1, 2020 (1) The most recent Pension Protection Act zone status available in 2018 and 2017 is for the plan's year-end December 31, 2017 and December 31, 2016 , respectively. The zone status is based on information that Century received from the plan as well as publicly available information per the Department of Labor and is certified by the plan’s actuary. Among other factors, plans in the green zone are at least 80 percent funded. |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of options, fully vested and exercisable | A summary of activity under our Stock Incentive Plan during the year ended December 31, 2018 is presented below: Options Number Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at January 1, 2018 166,757 $ 11.02 Exercised (32,147 ) 6.55 Forfeited/expired (17,500 ) 49.18 Outstanding, fully vested and exercisable at December 31, 2018 (1) 117,110 $ 6.55 0.34 $ 0.1 (1) As the result of actions in 2011 that were determined to be a "change of control" under the Stock Incentive Plan, all options will remain exercisable for their respective remaining term, regardless of whether the awardees remain employees of Century. All of the outstanding options at December 31, 2018 have an exercise price of $6.55 per share and expire in May 2019 . |
Summary of service-based share awards activity | Service-based share awards Number Outstanding at January 1, 2018 845,408 Granted 295,434 Vested (443,265 ) Forfeited (38,671 ) Outstanding at December 31, 2018 658,906 Year ended December 31, Service-based share awards 2018 2017 2016 Weighted average per share fair value of service-based share grants $ 20.21 $ 8.92 $ 7.14 Total intrinsic value of option exercises 444 624 — |
Summary of share-based compensation expense | The following table summarizes the compensation cost recognized for the years ended December 31, 2018 , 2017 and 2016 for all options, service-based and performance-based share awards. The compensation cost is included as part of selling, general and administrative expenses in our Consolidated Statements of Operations. Year ended December 31, 2018 2017 2016 Share-based compensation expense reported: Performance-based share expense $ (0.1 ) $ 4.0 $ 2.4 Service-based share expense 3.8 3.4 2.1 Total share-based compensation expense before income tax 3.7 7.4 4.5 Income tax — — — Total share-based compensation expense, net of income tax $ 3.7 $ 7.4 $ 4.5 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and diluted earnings (loss) per share | The following table shows the basic and diluted earnings (loss) per share for 2018 , 2017 , and 2016 : For the year ended December 31, 2018 Net (Loss) Shares (in millions) Per Share Net loss $ (66.2 ) Amount allocated to common stockholders 100 % Basic and Diluted EPS: (1) $ (66.2 ) 87.6 $ (0.76 ) For the year ended December 31, 2017 Net Income Shares (in millions) Per Share Net income $ 48.6 Amount allocated to common stockholders 92 % Basic EPS: Net income allocated to common stockholders $ 44.7 87.3 $ 0.51 Effect of dilutive securities: Share-based compensation 0.7 Diluted EPS: $ 44.7 88.0 $ 0.51 For the year ended December 31, 2016 Net (Loss) Shares (in millions) Per Share Net loss $ (252.4 ) Amount allocated to common stockholders 100 % Basic and Diluted EPS: (1) $ (252.4 ) 87.1 $ (2.90 ) |
Schedule of Antidilutive securities excluded from calculation of diluted EPS | Securities excluded from the calculation of diluted EPS (in millions): 2018 (1) 2017 2016 (1) Share-based compensation 1.4 0.6 0.9 (1) In periods when we report a net loss, all share-based compensation awards are excluded from the calculation of diluted weighted average shares outstanding because of their anti-dilutive effect on earnings (loss) per share. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of pre-tax book income (loss) | The components of pre-tax book income (loss) consist of the following: Year Ended December 31, 2018 2017 2016 U.S. $ (39.7 ) $ 26.8 $ (86.6 ) Foreign (30.9 ) 28.6 (164.3 ) Total $ (70.6 ) $ 55.4 $ (250.9 ) |
Significant components of the income before income tax expense | Significant components of income tax expense consist of the following: Year Ended December 31, 2018 2017 2016 Current: U.S. federal current expense (benefit) $ 0.0 $ (0.1 ) $ (0.2 ) State current expense (benefit) (1.1 ) 1.2 (0.1 ) Foreign current expense 0.8 12.3 5.7 Total current expense (benefit) (0.3 ) 13.4 5.4 Deferred: U.S. federal deferred benefit (1.6 ) (2.5 ) (1.6 ) State deferred benefit — (0.0 ) — Foreign deferred tax expense (benefit) 1.7 (3.3 ) (1.0 ) Total deferred expense (benefit) 0.1 (5.8 ) (2.6 ) Total income tax expense (benefit) $ (0.2 ) $ 7.6 $ 2.8 |
Reconciliation of the statutory U.S. Federal income tax rate to the effective income tax rate on income (loss) | A reconciliation of the statutory U.S. Federal income tax rate to the effective income tax rate on income (loss) is as follows: 2018 2017 2016 Federal Statutory Rate 21.0 % 35.0 % 35.0 % Permanent differences (25.7 ) 57.5 7.7 State taxes, net of Federal benefit 3.5 (6.6 ) 6.1 Rate change (0.6 ) 370.5 (4.2 ) Foreign earnings taxed at different rates than U.S. 11.8 (40.5 ) (13.5 ) Valuation allowance 81.2 (401.4 ) (27.5 ) Transition tax (13.8 ) — — Net operating loss expiration and remeasurement (75.8 ) — — Changes in uncertain tax reserves (1.4 ) 3.8 (1.0 ) Other 0.1 (4.6 ) (3.7 ) Effective tax rate 0.3 % 13.7 % (1.1 )% |
Significant components of deferred tax assets and liabilities | The significant components of our deferred tax assets and liabilities as of December 31 are as follows: 2018 2017 Deferred tax assets: Accrued postretirement benefit cost $ 40.3 $ 39.4 Accrued liabilities 10.9 3.1 Share-based compensation 2.1 1.3 Goodwill 0.4 2.0 Net operating losses and tax credits 482.8 551.1 Foreign basis differences 13.5 13.9 Ravenswood retiree legal settlement 2.4 3.1 Other 1.9 3.1 Total deferred tax assets 554.3 617.0 Valuation allowance (552.5 ) (607.8 ) Net deferred tax assets $ 1.8 $ 9.2 Deferred tax liabilities: Tax over financial statement depreciation $ (103.9 ) $ (109.7 ) Total deferred tax liabilities (103.9 ) (109.7 ) Net deferred tax liability $ (102.1 ) $ (100.5 ) |
Changes in valuation allowance | The changes in the valuation allowance are as follows: 2018 2017 2016 Beginning balance, valuation allowance $ 607.8 $ 839.1 $ 768.8 Remeasurement of deferred tax assets (32.1 ) (205.2 ) — Release of valuation allowance — — (6.0 ) Expiration of net operating losses (12.3 ) — — Other change in valuation allowance (11.0 ) (26.1 ) 76.3 Ending balance, valuation allowance $ 552.5 $ 607.8 $ 839.1 |
Significant components of Net Operating Loss Carryforwards | The significant components of our net operating loss carryforwards ("NOLs") are as follows: 2018 2017 Federal (1) $ 1,470.4 $ 1,514.2 State (2) 2,205.0 2,480.5 Foreign (3) 398.2 532.6 (1) The federal NOL begins to expire in 2028 . (2) The state NOLs begin to expire in 2027 . (3) The Icelandic NOL begins to expire in 2019; the Netherlands NOL begins to expire in 2022 . |
Reconciliation of beginning and ending amounts of gross unrecognized tax benefits | A reconciliation of the beginning and ending amounts of gross unrecognized tax positions (excluding interest) is as follows: 2018 2017 2016 Balance as of January 1, $ 8.4 $ 6.4 $ 3.8 Additions based on tax positions related to the current year 2.0 2.1 2.7 Decreases due to lapse of applicable statute of limitations (0.9 ) (0.1 ) (0.1 ) Settlements — — — Balance as of December 31, $ 9.5 $ 8.4 $ 6.4 |
Significant components of unrecognized tax positions | The components of our unrecognized tax positions are as follows: 2018 2017 2016 Highly certain tax positions $ 7.9 $ 8.3 $ 6.3 Other unrecognized tax benefits 1.6 0.1 0.1 Gross unrecognized tax benefits $ 9.5 $ 8.4 $ 6.4 Accrued interest and penalties related to unrecognized tax positions $ 0.1 $ 0.0 $ — |
Asset Retirement Obligations _2
Asset Retirement Obligations ('ARO') (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of changes in asset retirement obligations | The reconciliation of the changes in our AROs is presented below: Year ended December 31, 2018 2017 Beginning balance, ARO liability $ 28.5 $ 35.4 Additional ARO liability incurred 3.6 1.4 ARO liabilities settled (6.5 ) (9.9 ) Accretion expense 1.9 1.9 Revisions in estimated cash flows (9.3 ) (0.3 ) Ending balance, ARO liability $ 18.2 $ 28.5 |
Quarterly Information (Unaudi_2
Quarterly Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | Financial results by quarter for the years ended December 31, 2018 and 2017 are as follows: Net sales Gross profit (loss) Net income (loss) Net income (loss) allocated to common stockholders Basic earnings (loss) per share Diluted earnings (loss) per share 2018 4th Quarter (1) $ 486.9 $ (59.3 ) $ (65.0 ) $ (65.0 ) $ (0.74 ) $ (0.74 ) 3rd Quarter (2) 481.8 (11.8 ) (20.3 ) (20.3 ) (0.23 ) (0.23 ) 2nd Quarter (3) 470.0 33.7 19.4 17.9 0.20 0.20 1st Quarter 454.5 14.5 (0.3 ) (0.3 ) (0.00 ) (0.00 ) 2017 4th Quarter (4) $ 433.9 $ 47.9 $ 35.8 $ 33.0 $ 0.38 $ 0.37 3rd Quarter 400.6 41.4 20.8 19.1 0.22 0.22 2nd Quarter 388.8 22.5 7.1 6.6 0.08 0.07 1st Quarter (5) 365.8 16.8 (15.1 ) (15.1 ) (0.17 ) (0.17 ) (1) The fourth quarter of 2018 was unfavorably impacted by realization of a lower of cost or net realizable value adjustment of $30.6 million . (2) The third quarter of 2018 was favorably impacted by a $4.5 million gain on the extinguishment of the remainder of our contractual commitments associated with the construction of the Helguvik project. (3) The second quarter of 2018 reflects our temporary curtailment of one potline at our Sebree aluminum smelter due to an equipment failure that was brought back online in the third quarter. (4) The fourth quarter of 2017 was favorably impacted by a $7.3 million gain on the extinguishment of a portion of our contractual commitments associated with the construction of the Helguvik project. (5) The first quarter of 2017 was unfavorably impacted by net losses on forward and derivative contracts of $16.1 million. |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Reconciliation of assets from segment to consolidated | A reconciliation of our consolidated assets to the total of primary aluminum segment assets is provided below. Segment assets (1) 2018 2017 2016 Primary $ 1,480.7 $ 1,531.0 $ 1,493.0 Corporate, unallocated 56.8 50.6 47.3 Total assets $ 1,537.5 $ 1,581.6 $ 1,540.3 (1) Segment assets include accounts receivable, due from affiliates, prepaid and other current assets, inventory, intangible assets and property, plant and equipment — net; the remaining assets are unallocated corporate assets. |
Schedule of revenue from external customers and long-lived assets, by geographical areas | Included in the consolidated financial statements are the following amounts related to geographic locations: 2018 2017 2016 Net sales: United States $ 1,138.6 $ 938.4 $ 808.9 Iceland 754.6 650.7 510.2 Long-lived assets: (1) United States $ 396.0 $ 370.0 $ 395.1 Iceland 554.3 583.0 625.9 Other 76.5 75.0 78.7 (1) Includes long-lived assets other than financial instruments and deferred taxes. |
Schedule of revenue by major customers by reporting segments | A loss of these customers could have a material adverse effect on our results of operations. The net sales related to the customers is as follows: Year Ended December 31, 2018 2017 2016 Glencore $ 1,204.5 $ 1,198.1 $ 1,178.6 Southwire 222.4 77.2 — |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative assets and liabilities at fair value | The following table sets forth the Company's derivative assets and liabilities that were accounted for at fair value and not designated as hedging instruments as of December 31, 2018 and 2017: Asset Fair Value 2018 2017 Commodity contracts (1) $ 8.2 $ 1.7 Foreign exchange contracts (2) — — Total $ 8.2 $ 1.7 Liability Fair Value 2018 2017 Commodity contracts (1) $ 2.2 $ 1.2 Foreign exchange contracts (2) 0.3 — Total $ 2.5 $ 1.2 (1) Commodity contracts reflect our outstanding LME forward financial sales contracts, MWP forward financial sales contracts, fixed for floating swaps, and power price swaps. (2) Foreign exchange contracts reflect our outstanding FX swaps. |
Schedule of net gain (loss) on forward and derivative contracts | The following table summarizes the net gain (loss) on forward and derivative contracts for the years ended December 31, 2018, 2017, and 2016: Year Ended December 31, 2018 2017 2016 Commodity contracts $ 6.6 $ (16.5 ) $ 3.5 Foreign exchange contracts (0.3 ) — — Total $ 6.3 $ (16.5 ) $ 3.5 |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Statements of Comprehensive Income (Loss) | Condensed Consolidating Statements of Comprehensive Income (Loss) For the year ended December 31, 2018 The Company Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated NET SALES: Related parties $ — $ 453.6 $ 750.9 $ — $ 1,204.5 Other customers — 685.0 3.7 — 688.7 Total net sales — 1,138.6 754.6 — 1,893.2 Cost of goods sold — 1,169.2 746.9 — 1,916.1 Gross profit (loss) — (30.6 ) 7.7 — (22.9 ) Selling, general and administrative expenses 23.3 11.6 5.3 — 40.2 Helguvik (gains) — — (4.5 ) — (4.5 ) Other operating expense - net — — 0.4 — 0.4 Operating income (loss) (23.3 ) (42.2 ) 6.5 — (59.0 ) Interest expense (20.6 ) (1.6 ) (0.2 ) — (22.4 ) Intercompany Interest 36.3 9.5 (45.8 ) — — Interest income 0.3 — 1.2 — 1.5 Net gain on forward and derivative contracts 1.3 1.4 3.6 — 6.3 Other income (expense) - net 2.1 (1.9 ) 2.8 — 3.0 Income (loss) before income taxes and equity in earnings of joint ventures (3.9 ) (34.8 ) (31.9 ) — (70.6 ) Income tax (expense) benefit 2.6 — (2.4 ) — 0.2 Income (loss) before equity in earnings of joint ventures (1.3 ) (34.8 ) (34.3 ) — (70.4 ) Equity in earnings (loss) of joint ventures (64.9 ) 0.6 4.2 64.3 4.2 Net income (loss) (66.2 ) (34.2 ) (30.1 ) 64.3 (66.2 ) Other comprehensive income (loss) before income tax effect (5.5 ) (24.2 ) 5.2 19.0 (5.5 ) Income tax effect (1.5 ) — — — (1.5 ) Other comprehensive income (loss) (7.0 ) (24.2 ) 5.2 19.0 (7.0 ) Total comprehensive income (loss) $ (73.2 ) $ (58.4 ) $ (24.9 ) $ 83.3 $ (73.2 ) Condensed Consolidating Statements of Comprehensive Income (Loss) For the year ended December 31, 2017* The Company Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated NET SALES: Related parties $ — $ 547.5 $ 650.6 $ — $ 1,198.1 Other customers — 390.9 0.1 — 391.0 Total net sales — 938.4 650.7 — 1,589.1 Cost of goods sold — 885.5 572.3 — 1,457.8 Gross profit — 52.9 78.4 — 131.3 Selling, general and administrative expenses 27.2 12.9 4.7 — 44.8 Helguvik (gains) — — (7.3 ) — (7.3 ) Ravenswood (gains) — — (5.5 ) — (5.5 ) Other operating expense - net — — 2.1 — 2.1 Operating income (loss) (27.2 ) 40.0 84.4 — 97.2 Interest expense (20.4 ) (1.6 ) (0.2 ) — (22.2 ) Intercompany Interest 37.3 8.6 (45.9 ) — — Interest income 0.5 — 0.9 — 1.4 Net gain (loss) on forward and derivative contracts — (17.0 ) 0.5 — (16.5 ) Other income (expense) - net 0.2 0.4 (5.1 ) — (4.5 ) Income (loss) before income taxes and equity in earnings of joint ventures (9.6 ) 30.4 34.6 — 55.4 Income tax (expense) benefit 0.5 0.9 (9.0 ) — (7.6 ) Income (loss) before equity in earnings of joint ventures (9.1 ) 31.3 25.6 — 47.8 Equity in earnings (loss) of joint ventures 57.7 2.7 0.8 (60.4 ) 0.8 Net income 48.6 34.0 26.4 (60.4 ) 48.6 Other comprehensive income before income tax effect 23.7 12.7 1.5 (14.2 ) 23.7 Income tax effect (1.5 ) — 0.0 0.0 (1.5 ) Other comprehensive income 22.2 12.7 1.5 (14.2 ) 22.2 Total comprehensive income $ 70.8 $ 46.7 $ 27.9 $ (74.6 ) $ 70.8 *As adjusted due to the adoption of ASU 2017-07 Condensed Consolidating Statements of Comprehensive Income (Loss) For the year ended December 31, 2016* The Company Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated NET SALES: Related parties $ — $ 668.5 $ 510.1 $ — $ 1,178.6 Other customers — 140.4 0.1 — 140.5 Total net sales — 808.9 510.2 — 1,319.1 Cost of goods sold — 857.7 467.5 — 1,325.2 Gross profit (loss) — (48.8 ) 42.7 — (6.1 ) Selling, general and administrative expenses 19.4 9.9 9.6 — 38.9 Helguvik impairment — — 152.2 — 152.2 Ravenswood losses — — 26.8 — 26.8 Other operating expense - net — — 3.9 — 3.9 Operating income (loss) (19.4 ) (58.7 ) (149.8 ) — (227.9 ) Interest expense (20.3 ) (1.7 ) (0.2 ) — (22.2 ) Intercompany Interest 39.2 8.1 (47.3 ) — — Interest income 0.2 0.0 0.6 — 0.8 Net gain on forward and derivative contracts — 3.5 — — 3.5 Other income (expense) - net (0.1 ) (4.7 ) (0.3 ) — (5.1 ) Loss before income taxes and equity in earnings of joint ventures (0.4 ) (53.5 ) (197.0 ) — (250.9 ) Income tax (expense) benefit 1.9 — (4.7 ) — (2.8 ) Loss before equity in earnings (loss) of joint ventures 1.5 (53.5 ) (201.7 ) — (253.7 ) Equity in earnings (loss) of subsidiaries and joint ventures (253.9 ) 12.5 1.3 241.4 1.3 Net loss (252.4 ) (41.0 ) (200.4 ) 241.4 (252.4 ) Other comprehensive income before income tax effect 0.3 1.9 5.1 (7.0 ) 0.3 Income tax effect (1.5 ) — 0.0 0.0 (1.5 ) Other comprehensive income (loss) (1.2 ) 1.9 5.1 (7.0 ) (1.2 ) Total comprehensive loss $ (253.6 ) $ (39.1 ) $ (195.3 ) $ 234.4 $ (253.6 ) *As adjusted due to the adoption of ASU 2017-07 |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet As of December 31, 2018 The Company Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated Cash & cash equivalents $ 0.1 $ 0.0 $ 38.8 $ — $ 38.9 Restricted cash — 0.8 — — 0.8 Accounts receivable - net 0.5 81.8 0.2 — 82.5 Due from affiliates — 13.1 9.6 — 22.7 Inventories — 210.7 133.1 — 343.8 Prepaid and other current assets 6.4 3.4 8.2 — 18.0 Total current assets 7.0 309.8 189.9 — 506.7 Property, plant and equipment - net 20.6 320.7 626.0 — 967.3 Investment in subsidiaries 668.3 54.5 — (722.8 ) — Due from affiliates - long term 751.7 517.6 7.2 (1,276.5 ) — Other assets 29.8 2.1 31.6 — 63.5 TOTAL 1,477.4 1,204.7 854.7 (1,999.3 ) 1,537.5 Accounts payable, trade 3.7 84.1 31.6 — 119.4 Due to affiliates — — 10.3 — 10.3 Accrued and other current liabilities 15.8 22.8 13.9 — 52.5 Accrued employee benefits costs 1.9 8.3 0.8 — 11.0 Revolving credit facility 23.3 — — — 23.3 Industrial revenue bonds — 7.8 — — 7.8 Total current liabilities 44.7 123.0 56.6 — 224.3 Senior notes payable 248.6 — — — 248.6 Accrued pension benefits costs - less current portion 23.2 20.7 7.0 — 50.9 Accrued postretirement benefits costs - less current portion 0.7 98.9 1.6 — 101.2 Other liabilities 2.8 23.5 19.7 — 46.0 Due to affiliates - long term 395.4 307.6 573.5 (1,276.5 ) — Deferred taxes (0.2 ) 1.8 102.7 — 104.3 Total noncurrent liabilities 670.5 452.5 704.5 (1,276.5 ) 551.0 Preferred stock 0.0 — — — 0.0 Common stock 1.0 — 0.1 (0.1 ) 1.0 Other shareholders' equity 761.2 629.2 93.5 (722.7 ) 761.2 Total shareholders' equity 762.2 629.2 93.6 (722.8 ) 762.2 TOTAL $ 1,477.4 $ 1,204.7 $ 854.7 $ (1,999.3 ) $ 1,537.5 Condensed Consolidating Balance Sheet As of December 31, 2017 The Company Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated Cash & cash equivalents $ 64.3 $ (0.1 ) $ 103.0 $ — $ 167.2 Restricted cash — 0.8 — — 0.8 Accounts receivable - net — 42.8 0.3 — 43.1 Due from affiliates 0.1 10.3 — — 10.4 Inventories 0.2 205.1 112.2 — 317.5 Prepaid and other current assets 3.3 0.8 10.6 — 14.7 Total current assets 67.9 259.7 226.1 — 553.7 Property, plant and equipment - net 19.4 295.8 656.7 — 971.9 Investment in subsidiaries 751.8 54.0 — (805.8 ) — Due from affiliates - long term 513.3 349.6 9.4 (872.3 ) — Other assets 28.0 34.1 25.9 (32.0 ) 56.0 TOTAL 1,380.4 993.2 918.1 (1,710.1 ) 1,581.6 Accounts payable, trade 6.3 51.4 32.2 — 89.9 Due to affiliates 0.4 2.6 17.4 — 20.4 Accrued and other current liabilities 16.0 19.3 26.1 — 61.4 Accrued employee benefits costs 1.9 8.3 0.8 — 11.0 Industrial revenue bonds — 7.8 — — 7.8 Total current liabilities 24.6 89.4 76.5 — 190.5 Senior notes payable 248.2 — — — 248.2 Accrued pension benefits costs - less current portion 39.5 18.3 13.1 (32.0 ) 38.9 Accrued postretirement benefits costs - less current portion 0.9 110.4 1.7 — 113.0 Other liabilities 3.5 32.0 22.4 — 57.9 Due to affiliates - long term 234.1 53.8 584.4 (872.3 ) — Deferred taxes — 1.7 101.8 — 103.5 Total noncurrent liabilities 526.2 216.2 723.4 (904.3 ) 561.5 Preferred stock 0.0 — — — 0.0 Common stock 0.9 — 0.1 (0.1 ) 0.9 Other shareholders' equity 828.7 687.6 118.1 (805.7 ) 828.7 Total shareholders' equity 829.6 687.6 118.2 (805.8 ) 829.6 TOTAL $ 1,380.4 $ 993.2 $ 918.1 $ (1,710.1 ) $ 1,581.6 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows For the year ended December 31, 2018 The Company Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated Net cash provided by (used in) operating activities $ (53.0 ) $ (19.5 ) $ 3.4 $ — $ (69.1 ) Purchase of property, plant and equipment (4.4 ) (65.1 ) (13.5 ) — (83.0 ) Proceeds from sale of property, plant and equipment — — 0.1 — 0.1 Intercompany transactions 21.6 54.7 2.2 (78.5 ) — Net cash provided by (used in) investing activities 17.2 (10.4 ) (11.2 ) (78.5 ) (82.9 ) Borrowings under revolving credit facilities 120.1 — — — 120.1 Repayments under revolving credit facilities (96.8 ) — — — (96.8 ) Issuance of common stock 0.4 — — — 0.4 Intercompany transactions (52.1 ) 30.0 (56.4 ) 78.5 — Net cash provided by (used in) financing activities (28.4 ) 30.0 (56.4 ) 78.5 23.7 CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (64.2 ) 0.1 (64.2 ) — (128.3 ) Cash, cash equivalents, and restricted cash, beginning of period 64.3 0.7 103.0 — 168.0 Cash, cash equivalents, and restricted cash, end of period $ 0.1 $ 0.8 $ 38.8 $ — $ 39.7 Condensed Consolidating Statement of Cash Flows For the year ended December 31, 2017* The Company Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated Net cash provided by (used in) operating activities $ (34.5 ) $ (7.0 ) $ 96.0 $ (3.0 ) $ 51.5 Purchase of property, plant and equipment (10.9 ) (8.1 ) (12.8 ) — (31.8 ) Proceeds from sale of property, plant and equipment — 0.9 13.5 — 14.4 Intercompany transactions 75.6 6.2 (7.6 ) (74.2 ) — Net cash provided by (used in) investing activities 64.7 (1.0 ) (6.9 ) (74.2 ) (17.4 ) Borrowings under revolving credit facilities 1.3 — — — 1.3 Repayments under revolving credit facilities (1.3 ) — — — (1.3 ) Issuance of common stock 0.4 — — — 0.4 Intercompany transactions (3.1 ) 8.2 (82.3 ) 77.2 — Net cash provided by (used in) financing activities (2.7 ) 8.2 (82.3 ) 77.2 0.4 CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH 27.5 0.2 6.8 — 34.5 Cash, cash equivalents, and restricted cash, beginning of period 36.8 0.5 96.2 — 133.5 Cash, cash equivalents, and restricted cash, end of period $ 64.3 $ 0.7 $ 103.0 $ — $ 168.0 *As adjusted due to the adoption of ASU 2016-18. Condensed Consolidating Statement of Cash Flows For the year ended December 31, 2016* The Company Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated Net cash provided by operating activities $ (63.4 ) $ 19.0 $ 82.6 $ — $ 38.2 Purchase of property, plant and equipment (1.4 ) (7.8 ) (12.7 ) — (21.9 ) Proceeds from sale of property, plant and equipment — — 1.0 — 1.0 Intercompany transactions 27.8 (15.4 ) (0.9 ) (11.5 ) — Net cash used in investing activities 26.4 (23.2 ) (12.6 ) (11.5 ) (20.9 ) Borrowings under revolving credit facilities 1.2 — — — 1.2 Repayments under revolving credit facilities (1.2 ) — — — (1.2 ) Intercompany transactions 15.4 7.5 (34.4 ) 11.5 — Net cash used in financing activities 15.4 7.5 (34.4 ) 11.5 — CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (21.6 ) 3.3 35.6 — 17.3 Cash, cash equivalents, and restricted cash, beginning of period 58.4 (2.8 ) 60.6 — 116.2 Cash, cash equivalents, and restricted cash, end of period $ 36.8 $ 0.5 $ 96.2 $ — $ 133.5 *As adjusted due to the adoption of ASU 2016-18. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2019 | ||
Schedule of Equity Method Investments [Line Items] | |||||
Glencore beneficial ownership | 42.90% | ||||
Glencore economic ownership | 47.20% | ||||
Allowance for doubtful accounts receivable | $ 1,000 | $ 1,000 | |||
Operating income (loss) | (59,000) | 97,200 | [1] | $ (227,900) | |
Other operating expense, net | $ (400) | (2,100) | [1] | (3,900) | |
Baise Haohi Carbon Co Ltd [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage, equity method | 40.00% | ||||
Building and Improvements [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 10 years | ||||
Building and Improvements [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 45 years | ||||
Machinery and Equipment [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 5 years | ||||
Machinery and Equipment [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 35 years | ||||
Technology and Software [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 3 years | ||||
Technology and Software [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 7 years | ||||
Accounting Standards Update 2016-02 [Member] | Minimum [Member] | Forecast [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Operating lease, right-of-use asset | $ 20,000 | ||||
Operating lease, liability | 18,000 | ||||
Accounting Standards Update 2016-02 [Member] | Maximum [Member] | Forecast [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Operating lease, right-of-use asset | 26,000 | ||||
Operating lease, liability | $ 26,000 | ||||
Restatement Adjustment [Member] | Accounting Standards Update 2017-07 [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Operating income (loss) | (3,300) | (6,200) | |||
Other operating expense, net | $ 3,300 | $ 6,200 | |||
[1] | As adjusted due to the adoption of ASU 2017-07 Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) t in Thousands | 12 Months Ended |
Dec. 31, 2018t | |
Related Party Transaction [Line Items] | |
Glencore beneficial ownership | 42.90% |
Glencore economic ownership | 47.20% |
Major customer, percentage revenue, net | 10.00% |
BHH [Member] | |
Related Party Transaction [Line Items] | |
Ownership percentage, equity method | 40.00% |
Carbon anode production capacity, annual increase | 12 |
Customer Concentration Risk [Member] | Sales Revenue, Goods, Net [Member] | Glencore [Member] | |
Related Party Transaction [Line Items] | |
Major customer, percentage revenue, net | 64.00% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Related Party Transaction [Line Items] | ||||
Net sales to Glencore | $ 1,204.5 | $ 1,198.1 | [1] | $ 1,178.6 |
Glencore [Member] | ||||
Related Party Transaction [Line Items] | ||||
Net sales to Glencore | 1,204.5 | 1,198.1 | 1,178.6 | |
Purchases from Glencore | 319.6 | 253 | 231.9 | |
BHH [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchases from BHH | $ 28.4 | $ 15.8 | $ 10.1 | |
[1] | As adjusted due to the adoption of ASU 2017-07 Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 1,893.2 | $ 1,589.1 | $ 1,319.1 | ||
Increase (decrease) in accounts receivable | 39.4 | 30.6 | [1] | 3 | [1] |
United States [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 1,138.6 | 938.4 | 808.9 | ||
Iceland [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 754.6 | $ 650.7 | $ 510.2 | ||
[1] | As adjusted due to the adoption of ASU 2016-18 "Statement of Cash Flows (Topic 230) Restricted Cash." |
Helguvik and Ravenswood Gains_2
Helguvik and Ravenswood Gains and (Losses) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Jan. 31, 2017 | Jun. 30, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | [1],[2] | Dec. 31, 2016 | ||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||||||
Helguvik (gains) losses, impairment | $ 152.2 | ||||||
Helguvik (gains) losses | $ 4.5 | $ 7.3 | (152.2) | [1] | |||
Ravenswood Aluminum Smelter [Member] | |||||||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||||||
Ravenswood charges | $ 30.9 | $ 3.8 | |||||
Proceeds from sale of Ravenswood facility and assets | $ 13.6 | ||||||
[1] | As adjusted due to the adoption of ASU 2016-18 "Statement of Cash Flows (Topic 230) Restricted Cash." | ||||||
[2] | As adjusted due to the adoption of ASU 2017-07 Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS: | ||
Cash equivalents | $ 7.5 | $ 142.8 |
Trust assets | 0.1 | 1.8 |
Surety bonds | 2.1 | 1.6 |
Derivative instruments | 8.2 | 1.7 |
TOTAL | 17.9 | 147.9 |
LIABILITIES: | ||
Contingent obligation | 0 | 0 |
Derivative instruments | 2.5 | 1.2 |
TOTAL | 2.5 | 1.2 |
Level 1 [Member] | ||
ASSETS: | ||
Cash equivalents | 7.5 | 142.8 |
Trust assets | 0.1 | 1.8 |
Surety bonds | 2.1 | 1.6 |
Derivative instruments | 0 | 0 |
TOTAL | 9.7 | 146.2 |
LIABILITIES: | ||
Contingent obligation | 0 | 0 |
Derivative instruments | 0 | 0 |
TOTAL | 0 | 0 |
Level 2 [Member] | ||
ASSETS: | ||
Cash equivalents | 0 | 0 |
Trust assets | 0 | 0 |
Surety bonds | 0 | 0 |
Derivative instruments | 3.2 | 0 |
TOTAL | 3.2 | 0 |
LIABILITIES: | ||
Contingent obligation | 0 | 0 |
Derivative instruments | 2 | 0 |
TOTAL | 2 | 0 |
Level 3 [Member] | ||
ASSETS: | ||
Cash equivalents | 0 | 0 |
Trust assets | 0 | 0 |
Surety bonds | 0 | 0 |
Derivative instruments | 5 | 1.7 |
TOTAL | 5 | 1.7 |
LIABILITIES: | ||
Contingent obligation | 0 | 0 |
Derivative instruments | 0.5 | 1.2 |
TOTAL | $ 0.5 | $ 1.2 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2016 | |
Debt Instrument [Line Items] | |||
Industrial revenue bonds | $ 7.8 | $ 7.8 | |
Total | 279.7 | 256 | |
Industrial revenue bonds due 2028 [Member] | Short-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Industrial revenue bonds | $ 7.8 | 7.8 | |
Stated interest rate | 1.90% | ||
Maturity date | Apr. 1, 2028 | ||
Senior secured notes due June 01, 2021 [Member] | Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Senior secured notes | $ 248.6 | 248.2 | |
Stated interest rate | 7.50% | 7.50% | |
Maturity date | Jun. 1, 2021 | ||
Debt discount | $ 1.4 | 1.8 | |
U.S revolving credit facility [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 5.75% | ||
Maximum [Member] | Industrial revenue bonds due 2028 [Member] | Short-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Effective interest rate (percent) | 12.00% | ||
Letter of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding borrowings | $ 23.3 | ||
Letter of Credit [Member] | Short-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding borrowings | $ 23.3 | $ 0 |
Debt - Credit Facility (Details
Debt - Credit Facility (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
U.S revolving credit facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility maximum amount | $ 175,000,000 | |
Borrowing availability | 175,000,000 | |
Outstanding letters of credit issued | 44,800,000 | |
Letter of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Letter of credit sub-facility amount | 106,900,000 | |
Outstanding borrowings | 23,300,000 | |
Long-term Debt [Member] | U.S revolving credit facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility face amount | 175,000,000 | |
Long-term Debt [Member] | Letter of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Letter of credit sub-facility amount | 110,000,000 | |
Long-term Debt [Member] | U.S revolving credit facility, accordion [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility face amount | 50,000,000 | |
Long-term Debt [Member] | Iceland revolving credit facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility maximum amount | 50,000,000 | |
Borrowing availability | 50,000,000 | |
Outstanding letters of credit issued | 0 | |
Borrowing availability, net of outstanding letters of credit and borrowings | 50,000,000 | |
Short-term Debt [Member] | Letter of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Outstanding borrowings | 23,300,000 | $ 0 |
Short-term Debt [Member] | Iceland revolving credit facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Outstanding borrowings | $ 0 |
Debt - 7.5% Notes Due 2021 (Det
Debt - 7.5% Notes Due 2021 (Details) - Long-term Debt [Member] - Senior secured notes due June 01, 2021 [Member] - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2013 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2016 | |
Debt Instrument [Line Items] | ||||
Face amount | $ 250,000,000 | |||
Stated interest rate | 7.50% | 7.50% | ||
Proceeds from debt issuance | $ 246,300,000 | |||
Fair value of debt instrument | $ 247,900,000 | $ 258,300,000 | ||
Equity interests in foreign subsidiaries, percentage | 65.00% | |||
Redemptions rights after control change, percentage | 101.00% | |||
2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Redemption price, percentage | 101.875% | |||
2019 and thereafter [Member] | ||||
Debt Instrument [Line Items] | ||||
Redemptions rights after control change, percentage | 100.00% |
Debt - Contingent obligation (D
Debt - Contingent obligation (Details) - E.ON Contingent Obligation [Member] $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)payment | Dec. 31, 2017USD ($) | |
Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Number of monthly payments | payment | 72 | |
Stated interest rate | 10.94% | |
Realized gain (loss) on contingent obligation | $ 1.4 | $ 1.4 |
Other Liabilities [Member] | ||
Debt Instrument [Line Items] | ||
Contingent obligation – principal | (12.9) | (12.9) |
Contingent obligation – accrued interest | (10.9) | (9.5) |
Contingent obligation – derivative asset | 23.8 | 22.4 |
Contingent obligation | $ 0 | $ 0 |
Debt - Industrial Revenue Bonds
Debt - Industrial Revenue Bonds (Details) | Dec. 31, 2018 |
Maximum [Member] | Short-term Debt [Member] | Industrial revenue bonds due 2028 [Member] | |
Short-term Debt [Line Items] | |
Effective interest rate (percent) | 12.00% |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) | 12 Months Ended | 45 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Mar. 31, 2015 | Dec. 31, 2011 | Dec. 31, 2008 | |
Class of Stock [Line Items] | |||||||
Common stock, shares authorized (shares) | 195,000,000 | 195,000,000 | 195,000,000 | ||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Common stock, shares issued (shares) | 95,289,961 | 94,731,298 | 95,289,961 | ||||
Common stock, shares outstanding (shares) | 88,103,440 | 87,544,777 | 88,103,440 | ||||
Preferred stock, shares authorized (shares) | 5,000,000 | 5,000,000 | 5,000,000 | ||||
Preferred stock, par value (in dollars per share) | $ 0.01 | ||||||
Preferred stock, shares issued (shares) | 160,000 | ||||||
Conversion of convertible preferred stock (shares) | 100 | 100 | |||||
Liquidation preference (in dollars per share) | $ 0.01 | $ 0.01 | |||||
Authorized repurchase amount | $ 130,000,000 | $ 130,000,000 | $ 60,000,000 | ||||
Additional repurchase amount | $ 70,000,000 | ||||||
Treasury stock acquired, aggregate purchase price | $ 86,300,000 | ||||||
Repurchase of common stock (shares) | 7,186,521 | 0 | |||||
Remaining authorized repurchase amount | $ 43,700,000 | $ 43,700,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Repurchase of common stock (shares) | 7,186,521 | 0 | |||||
Series A Convertible Preferred Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||||
Preferred stock, shares outstanding (shares) | 71,967 | 74,364 | 71,967 | ||||
Repurchase of common stock (shares) | 0 | 0 | 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance (shares) | 74,364 | 75,625 | 76,539 | ||||
Repurchase of common stock (shares) | 0 | 0 | 0 | ||||
Conversion of convertible preferred stock (shares) | (2,397) | (1,261) | (914) | ||||
Issuance for share-based compensation plans (shares) | 0 | 0 | 0 | ||||
Ending balance (shares) | 71,967 | 74,364 | 75,625 | 71,967 | |||
Treasury [Member] | |||||||
Class of Stock [Line Items] | |||||||
Repurchase of common stock (shares) | 0 | 0 | 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance (shares) | 7,186,521 | 7,186,521 | 7,186,521 | ||||
Repurchase of common stock (shares) | 0 | 0 | 0 | ||||
Conversion of convertible preferred stock (shares) | 0 | 0 | 0 | ||||
Issuance for share-based compensation plans (shares) | 0 | 0 | 0 | ||||
Ending balance (shares) | 7,186,521 | 7,186,521 | 7,186,521 | 7,186,521 | |||
Common stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Repurchase of common stock (shares) | 0 | 0 | 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance (shares) | 87,544,777 | 87,250,897 | 87,038,050 | ||||
Repurchase of common stock (shares) | 0 | 0 | 0 | ||||
Conversion of convertible preferred stock (shares) | 239,748 | 126,098 | 91,362 | ||||
Issuance for share-based compensation plans (shares) | 318,915 | 167,782 | 121,485 | ||||
Ending balance (shares) | 88,103,440 | 87,544,777 | 87,250,897 | 88,103,440 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory, Net [Abstract] | ||
Raw materials | $ 100.8 | $ 106.2 |
Work-in-process | 49.5 | 49.6 |
Finished goods | 47.3 | 40.9 |
Operating and other supplies | 146.2 | 120.8 |
Inventories | $ 343.8 | $ 317.5 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Abstract] | ||
Land and improvements | $ 41.8 | $ 41.8 |
Buildings and improvements | 337.3 | 331.7 |
Machinery and equipment | 1,449.5 | 1,398.7 |
Construction in progress | 46.3 | 22.5 |
Property, plant and equipment, gross | 1,874.9 | 1,794.7 |
Less accumulated depreciation | (907.6) | (822.8) |
Property, plant and equipment - net | $ 967.3 | $ 971.9 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Detail Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 90.1 | $ 84.2 | $ 84.8 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (AOCL) - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive loss before income tax effect | $ (104.8) | $ (99.4) |
Income tax effect | 6.1 | 7.7 |
Accumulated other comprehensive loss | (98.7) | (91.7) |
Defined benefit plan liabilities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive loss before income tax effect | (107.3) | (102.1) |
Income tax effect | 6.6 | 8.2 |
Unrealized gain (loss) on financial instruments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive loss before income tax effect | 2.5 | 2.7 |
Income tax effect | $ (0.5) | $ (0.5) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (AOCL) - Changes in components of Accumulated other comprehensive loss (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||||||
Balance, start | $ 829.6 | $ 756.7 | $ 829.6 | $ 756.7 | $ 1,008.8 | ||||||||
Other comprehensive (loss) before reclassifications | (7.3) | 20.3 | (9.5) | ||||||||||
Net amount reclassified to net income (loss) | 0.3 | 1.9 | 8.3 | ||||||||||
Balance, end | $ 762.2 | $ 829.6 | 762.2 | 829.6 | 756.7 | ||||||||
Cost of goods sold | 1,916.1 | 1,457.8 | [1] | 1,325.2 | |||||||||
Selling, general and administrative expenses | 40.2 | 44.8 | [1] | 38.9 | |||||||||
Other operating expense, net | (0.4) | (2.1) | [1] | (3.9) | |||||||||
Helguvik (gains) losses | 152.2 | ||||||||||||
Income tax benefit (expense) | 0.2 | (7.6) | [1] | (2.8) | |||||||||
Net income (loss) | (65) | $ (20.3) | $ 19.4 | (0.3) | 35.8 | $ 20.8 | $ 7.1 | (15.1) | (66.2) | 48.6 | [1],[2] | (252.4) | [2] |
Defined benefit plan liabilities [Member] | |||||||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||||||
Balance, start | (93.8) | (116.2) | (93.8) | (116.2) | (110.7) | ||||||||
Other comprehensive (loss) before reclassifications | (7.3) | 20.3 | (9.5) | ||||||||||
Net amount reclassified to net income (loss) | 0.4 | 2.1 | 4 | ||||||||||
Balance, end | (100.7) | (93.8) | (100.7) | (93.8) | (116.2) | ||||||||
Unrealized gain (loss) on financial instruments [Member] | |||||||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||||||
Balance, start | 2.1 | 2.3 | 2.1 | 2.3 | (2) | ||||||||
Other comprehensive (loss) before reclassifications | 0 | 0 | 0 | ||||||||||
Net amount reclassified to net income (loss) | (0.1) | (0.2) | 4.3 | ||||||||||
Balance, end | 2 | 2.1 | 2 | 2.1 | 2.3 | ||||||||
Accumulated other comprehensive loss [Member] | |||||||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||||||
Balance, start | $ (91.7) | $ (113.9) | (91.7) | (113.9) | (112.7) | ||||||||
Balance, end | $ (98.7) | $ (91.7) | (98.7) | (91.7) | (113.9) | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Defined benefit plan liabilities [Member] | |||||||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||||||
Cost of goods sold | 2.8 | 3.1 | 3.5 | ||||||||||
Selling, general and administrative expenses | (1.9) | (0.4) | 0.5 | ||||||||||
Other operating expense, net | 1.2 | 1 | 1.6 | ||||||||||
Income tax benefit (expense) | (1.6) | (1.6) | (1.5) | ||||||||||
Net income (loss) | 0.5 | 2.1 | 4.1 | ||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized gain (loss) on financial instruments [Member] | |||||||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||||||
Cost of goods sold | (0.2) | (0.2) | (0.2) | ||||||||||
Helguvik (gains) losses | 0 | 0 | 4.5 | ||||||||||
Income tax benefit (expense) | 0 | 0 | 0 | ||||||||||
Net income (loss) | $ (0.2) | $ (0.2) | $ 4.3 | ||||||||||
[1] | As adjusted due to the adoption of ASU 2017-07 Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost | ||||||||||||
[2] | As adjusted due to the adoption of ASU 2016-18 "Statement of Cash Flows (Topic 230) Restricted Cash." |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits - PBGC settlement (Details) - PBGC Agreement [Member] - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Required pension contributions above minimum | $ 17,400,000 | |||
Pension contributions | $ 0 | $ 0 | $ 0 | |
Pension contributions above minimum remaining | $ 9,600,000 |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits - Retiree medical welfare changes (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Retirement Benefits [Abstract] | |
Benefit obligations, amendment | $ 18.8 |
Curtailment | $ 1.4 |
Pension and Other Postretirem_5
Pension and Other Postretirement Benefits - Change in benefit obligation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Change in benefit obligation [Roll Forward] | |||
Plan amendments | $ (18.8) | ||
Defined Benefit Pension Plans [Member] | |||
Change in benefit obligation [Roll Forward] | |||
Benefit obligation at beginning of year | $ 344.1 | 328 | |
Service cost | 4.3 | 4.4 | $ 4.6 |
Interest cost | 12.4 | 13.3 | 13.9 |
Plan amendments | 0.5 | 0 | |
Actuarial (gain) loss | (28) | 18.5 | |
Medicare Part D | 0 | 0 | |
Benefits paid | (18.9) | (20.1) | |
Benefit obligation at end of year | 314.4 | 344.1 | 328 |
Other Postretirement Benefit Plans [Member] | |||
Change in benefit obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 120.8 | 133.9 | |
Service cost | 0.2 | 0.8 | 1 |
Interest cost | 4.2 | 5.3 | 5.6 |
Plan amendments | 0.1 | (27.4) | |
Actuarial (gain) loss | (10.5) | 14.7 | |
Medicare Part D | 0.3 | 0.4 | |
Benefits paid | (6.4) | (6.9) | |
Benefit obligation at end of year | $ 108.7 | $ 120.8 | $ 133.9 |
Pension and Other Postretirem_6
Pension and Other Postretirement Benefits - Change in Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Change in fair value of plan assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | $ 303.3 | |
Employer contributions | 1.8 | $ 1.8 |
Fair value of assets at end of year | 261.7 | 303.3 |
Defined Benefit Pension Plans [Member] | ||
Change in fair value of plan assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 303.4 | 276.7 |
Actual return on plan assets | (24.6) | 45 |
Employer contributions | 1.8 | 1.8 |
Medicare Part D subsidy received | 0 | 0 |
Benefits paid | (18.9) | (20.1) |
Fair value of assets at end of year | 303.4 | |
Other Postretirement Benefit Plans [Member] | ||
Change in fair value of plan assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | 0 |
Actual return on plan assets | 0 | 0 |
Employer contributions | 6.1 | 6.5 |
Medicare Part D subsidy received | 0.3 | 0.4 |
Benefits paid | (6.4) | (6.9) |
Fair value of assets at end of year | $ 0 | $ 0 |
Pension and Other Postretirem_7
Pension and Other Postretirement Benefits - Funded status of plans (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current assets | $ 0 | $ 0 |
Current liabilities | (11) | (11) |
Projected benefit obligation for plans with accumulated benefit obligations in excess of plan assets | 314.4 | 344.1 |
Defined Benefit Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Funded status | (52.7) | (40.7) |
Current liabilities | (1.8) | (1.8) |
Non-current liabilities | (50.9) | (38.9) |
Net amount recognized | (52.7) | (40.7) |
Net loss | 83.7 | 71.2 |
Prior service cost (benefit) | 1.4 | 1 |
Total | 85.1 | 72.2 |
Accumulated benefit obligation for plans with accumulated benefit obligations in excess of plan assets | 310 | 339.4 |
Fair value of plan assets for plans with accumulated benefit obligations in excess of plan assets | 261.7 | 303.4 |
Other Postretirement Benefit Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Funded status | (108.7) | (120.8) |
Current liabilities | (7.5) | (7.5) |
Non-current liabilities | (101.2) | (113.3) |
Net amount recognized | (108.7) | (120.8) |
Net loss | 43.9 | 58.4 |
Prior service cost (benefit) | (21.6) | (28.9) |
Total | $ 22.3 | $ 29.5 |
Pension and Other Postretirem_8
Pension and Other Postretirement Benefits - Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 4.3 | $ 4.4 | $ 4.6 |
Interest cost | 12.4 | 13.3 | 13.9 |
Expected return on plan assets | (21.1) | (19) | (18.8) |
Amortization of prior service costs | 0.1 | 0.1 | 0.1 |
Amortization of net loss | 5.2 | 4.7 | 4.7 |
Curtailment (benefit) cost | 0 | 0 | 0 |
Net periodic benefit cost | 0.9 | 3.5 | 4.5 |
Other Postretirement Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.2 | 0.8 | 1 |
Interest cost | 4.2 | 5.3 | 5.6 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service costs | (7.3) | (3.7) | (2.7) |
Amortization of net loss | 4 | 3.9 | 3.5 |
Curtailment (benefit) cost | 0 | (1.4) | 0 |
Net periodic benefit cost | $ 1.2 | $ 4.9 | $ 7.4 |
Pension and Other Postretirem_9
Pension and Other Postretirement Benefits - Changes in Plan Assets & Benefit Obligation Recognized in OCI (pre-taxed) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net loss (gain) | $ 6.8 | $ 7.2 | $ 9.5 |
Prior service cost (benefit) | 0.6 | (27.4) | 0 |
Amortization of prior service (cost) benefit, including recognition due to curtailment | 7.1 | 4.9 | 2.7 |
Defined Benefit Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net loss (gain) | 17.6 | (7.5) | |
Prior service cost (benefit) | 0.5 | 0 | |
Amortization of net loss, including recognition due to settlement | (5.2) | (4.7) | |
Amortization of prior service (cost) benefit, including recognition due to curtailment | (0.1) | (0.1) | |
Total amount recognized in other comprehensive loss | 12.8 | (12.3) | |
Net periodic benefit cost | 0.9 | 3.5 | 4.5 |
Total recognized in net periodic benefit cost and other comprehensive loss | 13.7 | (8.8) | |
Other Postretirement Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net loss (gain) | (10.5) | 14.7 | |
Prior service cost (benefit) | 0.1 | (27.4) | |
Amortization of net loss, including recognition due to settlement | (4) | (3.9) | |
Amortization of prior service (cost) benefit, including recognition due to curtailment | 7.2 | 5.1 | |
Total amount recognized in other comprehensive loss | (7.2) | (11.5) | |
Net periodic benefit cost | 1.2 | 4.9 | $ 7.4 |
Total recognized in net periodic benefit cost and other comprehensive loss | $ (6) | $ (6.6) |
Pension and Other Postretire_10
Pension and Other Postretirement Benefits - Amortized from AOCI during the next fiscal year (Details) $ in Millions | Dec. 31, 2018USD ($) |
Defined Benefit Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Amortization of net loss | $ 5.9 |
Amortization of prior service cost (benefit) | 0.1 |
Other Postretirement Benefit Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Amortization of net loss | (3.7) |
Amortization of prior service cost (benefit) | $ (7.2) |
Pension and Other Postretire_11
Pension and Other Postretirement Benefits - Weighted Average assumptions used in calculating benefit obligations (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.39% | 3.69% |
Rate of compensation increase, group 1 | 3.00% | 3.00% |
Rate of compensation increase, group 2 | 3.50% | 4.00% |
Measurement date | Dec. 31, 2018 | Dec. 31, 2017 |
Other Postretirement Benefit Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.27% | 3.66% |
Rate of compensation increase, group 1 | 3.00% | 3.00% |
Rate of compensation increase, group 2 | 3.50% | 4.00% |
Measurement date | Dec. 31, 2018 | Dec. 31, 2017 |
Pension and Other Postretire_12
Pension and Other Postretirement Benefits - Weighted average assumptions used to determine net periodic benefit cost (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Rate of compensation increase, year one | 3.00% | ||
Rate of compensation increase, year two and thereafter | 3.50% | ||
Rate of compensation increase, year two | 3.00% | ||
Rate of compensation increase, year three and thereafter | 4.00% | ||
Rate of compensation increase, year one through three | 3.00% | ||
Rate of compensation increase, year four and thereafter | 4.00% | ||
Defined Benefit Pension Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Measurement date | 12/31/2017 | 12/31/2016 | 12/31/2015 |
Fiscal year end | 12/31/2018 | 12/31/2017 | 12/31/2016 |
Discount rate | 3.69% | 4.15% | 4.44% |
Rate of compensation increase, group 1 | 3.00% | 3.00% | 3.00% |
Rate of compensation increase, group 2 | 4.00% | 4.00% | 4.00% |
Expected return on plan assets | 7.18% | 6.82% | 7.10% |
Other Postretirement Benefit Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Measurement date | 12/31/2017 | 12/31/2016 | 12/31/2015 |
Fiscal year end | 12/31/2018 | 12/31/2017 | 12/31/2016 |
Discount rate | 3.66% | 4.05% | 4.50% |
Rate of compensation increase, group 1 | 3.00% | 3.00% | 3.00% |
Rate of compensation increase, group 2 | 4.00% | 4.00% | 4.00% |
Expected return on plan assets | 0.00% | 0.00% | 0.00% |
Pension and Other Postretire_13
Pension and Other Postretirement Benefits - Assumed health care trend rates (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
Medical cost inflation, years 13 and thereafter | 4.50% |
Effect of one percentage point increase on total service and interest cost | $ 0.4 |
Effect of one percentage point decrease on total service and interest cost | (0.4) |
Effect of one percentage point increase on accumulated postretirement benefit obligation | 10.6 |
Effect of one percentage point decrease on accumulated postretirement benefit obligation | $ (9.1) |
Pre 65 [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
Medical cost inflation rate | 6.70% |
Post 65 [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
Medical cost inflation rate | 7.40% |
Pension and Other Postretire_14
Pension and Other Postretirement Benefits - Pension Plan Asset Allocation (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 100.00% | 100.00% |
Fair value of assets | $ 261.7 | $ 303.3 |
Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 261.7 | 303.3 |
Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 0 | 0 |
Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | $ 0 | $ 0 |
U.S. Equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation percentage of assets | 26.00% | |
Actual plan asset allocations | 25.00% | 29.00% |
Fair value of assets | $ 66.5 | $ 86.5 |
U.S. Equities [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 66.5 | 86.5 |
U.S. Equities [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 0 | 0 |
U.S. Equities [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | $ 0 | $ 0 |
International Equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation percentage of assets | 22.00% | |
Actual plan asset allocations | 19.00% | 26.00% |
Fair value of assets | $ 49 | $ 79.1 |
International Equities [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 49 | 79.1 |
International Equities [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 0 | 0 |
International Equities [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | $ 0 | $ 0 |
Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation percentage of assets | 52.00% | |
Actual plan asset allocations | 56.00% | 45.00% |
Fair value of assets | $ 146.2 | $ 137.7 |
Fixed Income Securities [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 146.2 | 137.7 |
Fixed Income Securities [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | 0 | 0 |
Fixed Income Securities [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | $ 0 | $ 0 |
Pension and Other Postretire_15
Pension and Other Postretirement Benefits - Expected Contribution Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | $ 1.8 | $ 1.8 |
Defined Benefit Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | 1.8 | 1.8 |
Expected contributions in next twelve months | 1.8 | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | ||
2,019 | 20.6 | |
2,020 | 20.8 | |
2,021 | 20.9 | |
2,022 | 21.1 | |
2,023 | 21.1 | |
2024-2028 | 100.6 | |
Other Postretirement Benefit Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | 6.1 | $ 6.5 |
Expected contributions in next twelve months | 7.5 | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | ||
2,019 | 7.5 | |
2,020 | 7.4 | |
2,021 | 7.6 | |
2,022 | 7.6 | |
2,023 | 7.6 | |
2024-2028 | $ 37 |
Pension and Other Postretire_16
Pension and Other Postretirement Benefits - Participation in Multi-Employer Pension Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
EIN / PN | 23-6648508/499 | ||
Pension Protection Act Zone Status | Green | Green | |
Subject to Financial Improvement/Rehabilitation Plan | No | ||
Contributions of Century Aluminum Company | $ 1 | $ 0.8 | $ 0.8 |
Withdrawal from Plan Probable | No | ||
Surcharge Imposed | No | ||
Expiration Date of Collective Bargaining Agreement | Apr. 1, 2020 | ||
Funded status of Green zone | At least 80 percent |
Pension and Other Postretire_17
Pension and Other Postretirement Benefits - Company matching contribution to defined contribution 401(K) plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
Age requirement for future accruals | 50 years | ||
Company matching contribution to defined contribution (401(k)) plans | $ 4.4 | $ 4.5 | $ 3.9 |
Share-based Compensation (Detai
Share-based Compensation (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)award_typeshares | Dec. 31, 2017USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding, fully vested and exercisable (shares) | 117,110 | |
Service-Based Share Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Service-based share awards outstanding (shares) | 658,906 | 845,408 |
Amended and Restated Stock Option Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares authorized (shares) | 10,000,000 | |
Shares remaining (shares) | 4,827,840 | |
Share based compensation, vesting rights (in time period) | 3 years | |
Expected term (years) | 10 years | |
Amended and Restated Stock Option Plan [Member] | Non-employee director [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation, vesting rights (in time period) | 12 months | |
Amended and Restated Stock Option Plan [Member] | Service-Based Share Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Service-based share awards outstanding (shares) | 658,906 | |
Amended and Restated Stock Option Plan [Member] | Initial vesting date [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting rights | 33.33% | |
Amended and Restated Stock Option Plan [Member] | Year one [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting rights | 33.33% | |
Amended and Restated Stock Option Plan [Member] | Year two [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting rights | 33.33% | |
Long Term Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation, vesting rights (in time period) | 3 years | |
Number of award types provided | award_type | 2 | |
Performance unit liability | $ | $ 2.2 | $ 7.5 |
Share-based Compensation - Serv
Share-based Compensation - Service-Based Awards - Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Options to purchase common stock (shares) | 166,757 | |
Options exercised (shares) | (32,147) | |
Options forfeited/expired (shares) | (17,500) | |
Outstanding, fully vested and exercisable (shares) | 117,110 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Options outstanding, Weighted Average Exercise Price (in dollars per share) | $ 11.02 | |
Options exercised, Weighted Average Exercise Price (in dollars per share) | $ 6.55 | |
Options forfeited/expired, Weighted Average Exercise Price (in dollars per share) | 49.18 | |
Outstanding, fully vested and exercisable, Weighted Average Exercise Price (in dollars per share) | $ 6.55 | |
Outstanding, fully vested and exercisable, weighted average contractual term | 4 months 2 days | |
Outstanding, fully vested and exercisable, Aggregate Intrinsic Value | $ 0 | |
Stock Options that expire May 2019 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Outstanding, fully vested and exercisable, Weighted Average Exercise Price (in dollars per share) | $ 6.55 |
Share-based Compensation - Se_2
Share-based Compensation - Service Based Awards Rollforward (Details) - Service-Based Share Awards [Member] | 12 Months Ended |
Dec. 31, 2018shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Service-based share awards outstanding, beginning of period (shares) | 845,408 |
Granted (shares) | 295,434 |
Vested (shares) | (443,265) |
Forfeited (shares) | (38,671) |
Service-based share awards outstanding, end of period (shares) | 658,906 |
Share-based Compensation - Se_3
Share-based Compensation - Service-Based Awards, Additional disclosures (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Service-Based Awards, Additional disclosures [Abstract] | |||
Weighted average per share fair value of service-based share grants (in dollars per share) | $ 20.21 | $ 8.92 | $ 7.14 |
Total intrinsic value of option exercises | $ 444 | $ 624 | $ 0 |
Share-based Compensation - Shar
Share-based Compensation - Share and performance-based compensation expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share and performance-based compensation expense [Abstract] | |||
Performance-based share expense | $ (0.1) | $ 4 | $ 2.4 |
Service-based share expense | 3.8 | 3.4 | 2.1 |
Total share-based compensation expense before income tax | 3.7 | 7.4 | 4.5 |
Income tax | 0 | 0 | 0 |
Total share-based compensation expense, net of income tax | 3.7 | $ 7.4 | $ 4.5 |
Unrecognized compensation expense | $ 6.6 | ||
Weighted average period of expense recognition | 2 years |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Earnings Per Share [Abstract] | |||||||||||||
Net income (loss) | $ (65) | $ (20.3) | $ 19.4 | $ (0.3) | $ 35.8 | $ 20.8 | $ 7.1 | $ (15.1) | $ (66.2) | $ 48.6 | [1],[2] | $ (252.4) | [1] |
Percentage allocated to common shareholders | 100.00% | 92.00% | 100.00% | ||||||||||
Basic and Diluted EPS: | |||||||||||||
Net income (loss) available to common stockholders, basic and diluted | $ (66.2) | $ (252.4) | |||||||||||
Shares outstanding, basic and diluted (in shares) | 87.6 | 87.1 | |||||||||||
Basic and diluted (in dollars per share) | $ (0.76) | $ (2.90) | |||||||||||
EPS: | |||||||||||||
Net income allocated to common stockholders, basic | $ (65) | $ (20.3) | $ 17.9 | $ (0.3) | $ 33 | $ 19.1 | $ 6.6 | $ (15.1) | $ 44.7 | ||||
Shares outstanding, basic (in shares) | 87.3 | ||||||||||||
Basic (in dollars per share) | $ (0.74) | $ (0.23) | $ 0.20 | $ 0 | $ 0.38 | $ 0.22 | $ 0.08 | $ (0.17) | (0.76) | $ 0.51 | [2] | (2.90) | |
Dilutive effect of share-based payment arrangements | 0.7 | ||||||||||||
Net income (loss) available to common stockholders, diluted | $ 44.7 | ||||||||||||
Shares outstanding, diluted (in shares) | 88 | ||||||||||||
Diluted (in dollars per share) | $ (0.74) | $ (0.23) | $ 0.20 | $ 0 | $ 0.37 | $ 0.22 | $ 0.07 | $ (0.17) | $ (0.76) | $ 0.51 | [2] | $ (2.90) | |
[1] | As adjusted due to the adoption of ASU 2016-18 "Statement of Cash Flows (Topic 230) Restricted Cash." | ||||||||||||
[2] | As adjusted due to the adoption of ASU 2017-07 Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost |
Earnings (Loss) Per Share - Ant
Earnings (Loss) Per Share - Antidilutive securities excluded from the calculation of diluted EPS (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Service-Based Share Awards [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Securities excluded from calculation of diluted EPS | 1.4 | 0.6 | 0.9 |
Income Taxes - Components of Pr
Income Taxes - Components of Pre-tax Book Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Income Tax Disclosure [Abstract] | ||||
U.S. | $ (39.7) | $ 26.8 | $ (86.6) | |
Foreign | (30.9) | 28.6 | (164.3) | |
Income (loss) before income taxes and equity in earnings of joint ventures | $ (70.6) | $ 55.4 | [1] | $ (250.9) |
[1] | As adjusted due to the adoption of ASU 2017-07 Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Current: | ||||
U.S. federal current expense (benefit) | $ 0 | $ (0.1) | $ (0.2) | |
State current expense (benefit) | (1.1) | 1.2 | (0.1) | |
Foreign current expense | 0.8 | 12.3 | 5.7 | |
Total current expense (benefit) | (0.3) | 13.4 | 5.4 | |
Deferred: | ||||
U.S. federal deferred benefit | (1.6) | (2.5) | (1.6) | |
State deferred benefit | 0 | 0 | 0 | |
Foreign deferred tax expense (benefit) | 1.7 | (3.3) | (1) | |
Total deferred expense (benefit) | 0.1 | (5.8) | (2.6) | |
Total income tax expense (benefit) | $ (0.2) | $ 7.6 | [1] | $ 2.8 |
[1] | As adjusted due to the adoption of ASU 2017-07 Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of statutory to effective income tax rate (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Federal Statutory Rate | 21.00% | 35.00% | 35.00% |
Permanent differences | (25.70%) | 57.50% | 7.70% |
State taxes, net of Federal benefit | 3.50% | (6.60%) | 6.10% |
Rate change | (0.60%) | 370.50% | (4.20%) |
Foreign earnings taxed at different rates than U.S. | 11.80% | (40.50%) | (13.50%) |
Valuation allowance | 81.20% | (401.40%) | (27.50%) |
Transition tax | (13.80%) | 0.00% | 0.00% |
Net operating loss expiration and remeasurement | (75.80%) | 0.00% | 0.00% |
Transition tax | (1.40%) | 3.80% | (1.00%) |
Other | 0.10% | (4.60%) | (3.70%) |
Effective tax rate | 0.30% | 13.70% | (1.10%) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | |||
Lowered statutory rate, percent | 0.30% | 13.70% | (1.10%) |
Deferred tax assets | $ (205.2) | ||
Valuation allowance | $ 552.5 | 607.8 | |
Accrued and Other Current Liabilities [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Income taxes payable | 0.4 | $ 12.2 | |
All U.S. and Portion of Icelandic Deferred Tax Assets [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance | $ 552.5 |
Income Taxes - Significant Co_2
Income Taxes - Significant Components of our deferred tax assets & liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Accrued postretirement benefit cost | $ 40.3 | $ 39.4 |
Accrued liabilities | 10.9 | 3.1 |
Share-based compensation | 2.1 | 1.3 |
Goodwill | 0.4 | 2 |
Net operating losses and tax credits | 482.8 | 551.1 |
Foreign basis differences | 13.5 | 13.9 |
Ravenswood retiree legal settlement | 2.4 | 3.1 |
Other | 1.9 | 3.1 |
Total deferred tax assets | 554.3 | 617 |
Valuation allowance | (552.5) | (607.8) |
Net deferred tax assets | 1.8 | 9.2 |
Deferred tax liabilities: | ||
Tax over financial statement depreciation | (103.9) | (109.7) |
Total deferred tax liabilities | (103.9) | (109.7) |
Net deferred tax liability | $ (102.1) | $ (100.5) |
Income Taxes - Changes in Valua
Income Taxes - Changes in Valuation Allowance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance, valuation allowance | $ 607.8 | $ 839.1 | $ 768.8 |
Remeasurement of deferred tax assets | (32.1) | (205.2) | 0 |
Release of valuation allowance | 0 | 0 | (6) |
Expiration of net operating losses | (12.3) | 0 | 0 |
Other change in valuation allowance | (11) | (26.1) | 76.3 |
Balance, valuation allowance | $ 552.5 | $ 607.8 | $ 839.1 |
Income Taxes - Net Operating Lo
Income Taxes - Net Operating Losses Carryforwards (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Federal [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 1,470.4 | $ 1,514.2 |
Expiration dates | Dec. 31, 2028 | |
State [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 2,205 | 2,480.5 |
Expiration dates | Dec. 31, 2027 | |
Foreign [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 398.2 | $ 532.6 |
Netherlands [Member] | Foreign [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Expiration dates | Dec. 31, 2022 |
Income Taxes - Gross Unrecogniz
Income Taxes - Gross Unrecognized Tax Positions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance as of January 1, | $ 8.4 | $ 6.4 | $ 3.8 |
Additions based on tax positions related to the current year | 2 | 2.1 | 2.7 |
Decreases due to lapse of applicable statute of limitations | (0.9) | (0.1) | (0.1) |
Settlements | 0 | 0 | 0 |
Balance as of December 31, | $ 9.5 | $ 8.4 | $ 6.4 |
Income Taxes - Components of un
Income Taxes - Components of unrecognized tax positions (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Highly certain tax positions | $ 7.9 | $ 8.3 | $ 6.3 | |
Other unrecognized tax benefits | 1.6 | 0.1 | 0.1 | |
Gross unrecognized tax benefits | 9.5 | 8.4 | 6.4 | $ 3.8 |
Accrued interest and penalties related to unrecognized tax positions | $ 0.1 | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Legal Contingencies (Details) - USD ($) | Aug. 18, 2017 | Sep. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2013 | ||
Loss Contingencies [Line Items] | ||||||||
Gain recognized | $ 0 | $ 5,500,000 | [1] | $ (3,800,000) | [1] | |||
Ravenswood Retiree Medical Benefits Changes [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Litigation settlement amount | $ 23,000,000 | |||||||
Litigation settlement period | 10 years | |||||||
Ravenswood retiree legal settlement | $ 5,000,000 | |||||||
Gain recognized | 5,500,000 | |||||||
Loss contingency accrual | $ 12,500,000 | |||||||
Other liabilities, current | $ 2,000,000 | |||||||
Other liabilities | 9,800,000 | |||||||
Litigation settlement, annual installment | $ 2,000,000 | |||||||
Litigation settlement installment period | 9 years | |||||||
PBGC Agreement [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Required pension contributions above minimum | $ 17,400,000 | |||||||
Pension contributions | $ 0 | $ 0 | $ 0 | |||||
Pension contributions above minimum remaining | $ 9,600,000 | |||||||
[1] | As adjusted due to the adoption of ASU 2016-18 "Statement of Cash Flows (Topic 230) Restricted Cash." |
Commitments and Contingencies_2
Commitments and Contingencies - Other Commitments (Details) | 12 Months Ended |
Dec. 31, 2018labor_unionMW | |
Labor Commitments [Abstract] | |
Percentage of Company's work force represented by a union | 65.00% |
Percentage of Grundartangi work force represented by the labor unions | 84.00% |
Number of labor unions under new agreement | labor_union | 5 |
Percentage of U.S. based work force represented by a union | 57.00% |
Hawesville [Member] | |
Loss Contingencies [Line Items] | |
Power supply agreement, termination notice period | 1 year |
Sebree [Member] | |
Loss Contingencies [Line Items] | |
Power supply agreement, termination notice period | 1 year |
South Carolina Public Service Authority [Member] | |
Loss Contingencies [Line Items] | |
Short-term power agreement, supply from South Carolina Public Service Authority (percent) | 25.00% |
Short-term power agreement, supply from third party supplier (percent) | 75.00% |
South Carolina Public Service Authority [Member] | Santee Cooper [Member] | |
Loss Contingencies [Line Items] | |
Power supply agreement, termination notice period | 120 days |
South Carolina Public Service Authority [Member] | Other Power Suppliers [Member] | |
Loss Contingencies [Line Items] | |
Power supply agreement, termination notice period | 60 days |
Grundartangi - HS, Landsvirkjun and OR [Member] | |
Loss Contingencies [Line Items] | |
Power available | 525 |
Grundartangi - Landsvirkjun [Member] | |
Loss Contingencies [Line Items] | |
Power available | 161 |
Helguvik [Member] | |
Loss Contingencies [Line Items] | |
Power available | 47.5 |
Netherlands [Member] | |
Labor Commitments [Abstract] | |
Percentage of Vlissingen work force represented by the labor union | 100.00% |
Asset Retirement Obligations _3
Asset Retirement Obligations ('ARO') (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Asset Retirement Obligation [Roll Forward] | ||
Beginning balance, ARO liability | $ 28.5 | $ 35.4 |
Additional ARO liability incurred | 3.6 | 1.4 |
ARO liabilities settled | (6.5) | (9.9) |
Accretion expense | 1.9 | 1.9 |
Revisions in estimated cash flows | (9.3) | (0.3) |
Ending balance, ARO liability | $ 18.2 | $ 28.5 |
Quarterly Information (Unaudi_3
Quarterly Information (Unaudited) - Financial Results by Quarter (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Quarterly Financial Data [Abstract] | |||||||||||||
Net sales | $ 486.9 | $ 481.8 | $ 470 | $ 454.5 | $ 433.9 | $ 400.6 | $ 388.8 | $ 365.8 | $ 1,893.2 | $ 1,589.1 | [1] | $ 1,319.1 | |
Gross profit (loss) | (59.3) | (11.8) | 33.7 | 14.5 | 47.9 | 41.4 | 22.5 | 16.8 | (22.9) | 131.3 | [1] | (6.1) | |
Net income (loss) | (65) | (20.3) | 19.4 | (0.3) | 35.8 | 20.8 | 7.1 | (15.1) | $ (66.2) | 48.6 | [1],[2] | $ (252.4) | [2] |
Net income (loss) allocated to common stockholders | $ (65) | $ (20.3) | $ 17.9 | $ (0.3) | $ 33 | $ 19.1 | $ 6.6 | $ (15.1) | $ 44.7 | ||||
Basic earnings (loss) per share (in dollars per share) | $ (0.74) | $ (0.23) | $ 0.20 | $ 0 | $ 0.38 | $ 0.22 | $ 0.08 | $ (0.17) | $ (0.76) | $ 0.51 | [1] | $ (2.90) | |
Diluted earnings (loss) per share (in dollars per share) | $ (0.74) | $ (0.23) | $ 0.20 | $ 0 | $ 0.37 | $ 0.22 | $ 0.07 | $ (0.17) | $ (0.76) | $ 0.51 | [1] | $ (2.90) | |
[1] | As adjusted due to the adoption of ASU 2017-07 Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost | ||||||||||||
[2] | As adjusted due to the adoption of ASU 2016-18 "Statement of Cash Flows (Topic 230) Restricted Cash." |
Quarterly Information (Unaudi_4
Quarterly Information (Unaudited) - Financial Results Overview (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2018 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Effect of Fourth Quarter Events [Line Items] | ||||||
Inventory adjustments | $ 30.6 | |||||
Net gain (loss) on forward and derivative contracts | $ (16.1) | $ 6.3 | $ (16.5) | [1] | $ 3.5 | |
Helguvik [Member] | ||||||
Effect of Fourth Quarter Events [Line Items] | ||||||
Gain on extinguishment of liability | $ 4.5 | $ 7.3 | ||||
[1] | As adjusted due to the adoption of ASU 2017-07 Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost |
Business Segments (Details)
Business Segments (Details) | 12 Months Ended |
Dec. 31, 2018segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 4 |
Number of reportable segments | 1 |
Business Segments - Segment Ass
Business Segments - Segment Assets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Segment Reporting [Abstract] | |||
Primary | $ 1,480.7 | $ 1,531 | $ 1,493 |
Corporate, unallocated | 56.8 | 50.6 | 47.3 |
TOTAL | $ 1,537.5 | $ 1,581.6 | $ 1,540.3 |
Business Segments - Geography,
Business Segments - Geography, Segment Reporting (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 1,893.2 | $ 1,589.1 | $ 1,319.1 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,138.6 | 938.4 | 808.9 |
Long-lived assets | 396 | 370 | 395.1 |
Iceland [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 754.6 | 650.7 | 510.2 |
Long-lived assets | 554.3 | 583 | 625.9 |
Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 76.5 | $ 75 | $ 78.7 |
Business Segments - Major Custo
Business Segments - Major Customers (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Revenue, Major Customer [Line Items] | ||||||||||||
Major customer, percentage revenue, net | 10.00% | |||||||||||
Net sales | $ 486,900,000 | $ 481,800,000 | $ 470,000,000 | $ 454,500,000 | $ 433,900,000 | $ 400,600,000 | $ 388,800,000 | $ 365,800,000 | $ 1,893,200,000 | $ 1,589,100,000 | [1] | $ 1,319,100,000 |
Glencore [Member] | ||||||||||||
Revenue, Major Customer [Line Items] | ||||||||||||
Net sales | 1,204,500,000 | 1,198,100,000 | 1,178,600,000 | |||||||||
Southwire [Member] | ||||||||||||
Revenue, Major Customer [Line Items] | ||||||||||||
Net sales | $ 222,400 | $ 77,200 | $ 0 | |||||||||
[1] | As adjusted due to the adoption of ASU 2017-07 Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost |
Derivatives (Details)
Derivatives (Details) € in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)MWht | Dec. 31, 2017USD ($) | Dec. 31, 2018EUR (€)MWht | |
Supply Commitment [Line Items] | |||
Derivative asset | $ | $ 8.2 | $ 1.7 | |
Fixed to Variable London Metals Exchange Swap [Member] | |||
Supply Commitment [Line Items] | |||
Other forward delivery contracts to sell primary aluminum (in tonnes) | 58,106 | 58,106 | |
Midwest Premium (MWP) [Member] | |||
Supply Commitment [Line Items] | |||
Open position to offset fixed prices | 36,000 | ||
Grundartangi [Member] | Power Price Swap [Member] | |||
Supply Commitment [Line Items] | |||
Derivative, financial contract, percentage | 4.00% | ||
Underlying, derivative energy, available | MWh | 256,200 | 256,200 | |
Derivative asset | € | € 2.8 |
Derivatives Derivative Assets a
Derivatives Derivative Assets and Liabilities (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Derivative asset | $ 8.2 | $ 1.7 |
Derivative liability | 2.5 | 1.2 |
Commodity Contract [Member] | ||
Derivative [Line Items] | ||
Derivative asset | 8.2 | 1.7 |
Derivative liability | 2.2 | 1.2 |
Foreign Exchange Contract [Member] | ||
Derivative [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | $ 0.3 | $ 0 |
Derivatives Derivative Net Gain
Derivatives Derivative Net Gain (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Derivative, gain (loss) on derivative, net | $ 6.3 | $ (16.5) | $ 3.5 |
Commodity Contract [Member] | |||
Derivative [Line Items] | |||
Derivative, gain (loss) on derivative, net | 6.6 | (16.5) | 3.5 |
Foreign Exchange Contract [Member] | |||
Derivative [Line Items] | |||
Derivative, gain (loss) on derivative, net | $ (0.3) | $ 0 | $ 0 |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Information - Statements of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
NET SALES: | |||||||||||||
Related parties | $ 1,204.5 | $ 1,198.1 | [1] | $ 1,178.6 | |||||||||
Other customers | 688.7 | 391 | [1] | 140.5 | |||||||||
Total net sales | $ 486.9 | $ 481.8 | $ 470 | $ 454.5 | $ 433.9 | $ 400.6 | $ 388.8 | $ 365.8 | 1,893.2 | 1,589.1 | [1] | 1,319.1 | |
Cost of goods sold | 1,916.1 | 1,457.8 | [1] | 1,325.2 | |||||||||
Gross profit (loss) | (59.3) | (11.8) | 33.7 | 14.5 | 47.9 | 41.4 | 22.5 | 16.8 | (22.9) | 131.3 | [1] | (6.1) | |
Selling, general and administrative expenses | 40.2 | 44.8 | [1] | 38.9 | |||||||||
Helguvik (gains) losses | (4.5) | (7.3) | [1],[2] | 152.2 | [2] | ||||||||
Ravenswood (gains) | 0 | (5.5) | [1] | 26.8 | |||||||||
Other operating expense - net | 0.4 | 2.1 | [1] | 3.9 | |||||||||
Operating income (loss) | (59) | 97.2 | [1] | (227.9) | |||||||||
Interest expense | (22.4) | (22.2) | [1] | (22.2) | |||||||||
Intercompany Interest | 0 | 0 | 0 | ||||||||||
Interest income | 1.5 | 1.4 | [1] | 0.8 | |||||||||
Net gain (loss) on forward and derivative contracts | (16.1) | 6.3 | (16.5) | [1] | 3.5 | ||||||||
Other income (expense) - net | 3 | (4.5) | [1] | (5.1) | |||||||||
Income (loss) before income taxes and equity in earnings of joint ventures | (70.6) | 55.4 | [1] | (250.9) | |||||||||
Income tax (expense) benefit | 0.2 | (7.6) | [1] | (2.8) | |||||||||
Income (loss) before equity in earnings of joint ventures | (70.4) | 47.8 | [1] | (253.7) | |||||||||
Equity in earnings of joint ventures | 4.2 | 0.8 | [1] | 1.3 | |||||||||
Net income (loss) | $ (65) | $ (20.3) | $ 19.4 | $ (0.3) | $ 35.8 | $ 20.8 | $ 7.1 | $ (15.1) | (66.2) | 48.6 | [1],[2] | (252.4) | [2] |
Other comprehensive income (loss) before income tax effect | (5.5) | 23.7 | 0.3 | ||||||||||
Income tax effect | (1.5) | (1.5) | (1.5) | ||||||||||
Other comprehensive income (loss) | (7) | 22.2 | (1.2) | ||||||||||
Total comprehensive income (loss) | $ (73.2) | 70.8 | (253.6) | ||||||||||
Combined Guarantor Subsidiaries [Member] | |||||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||||
Ownership percentage | 100.00% | 100.00% | |||||||||||
Reportable Legal Entities [Member] | The Company [Member] | |||||||||||||
NET SALES: | |||||||||||||
Related parties | $ 0 | 0 | 0 | ||||||||||
Other customers | 0 | 0 | 0 | ||||||||||
Total net sales | 0 | 0 | 0 | ||||||||||
Cost of goods sold | 0 | 0 | 0 | ||||||||||
Gross profit (loss) | 0 | 0 | 0 | ||||||||||
Selling, general and administrative expenses | 23.3 | 27.2 | 19.4 | ||||||||||
Helguvik (gains) losses | 0 | 0 | 0 | ||||||||||
Ravenswood (gains) | 0 | 0 | |||||||||||
Other operating expense - net | 0 | 0 | 0 | ||||||||||
Operating income (loss) | (23.3) | (27.2) | (19.4) | ||||||||||
Interest expense | (20.6) | (20.4) | (20.3) | ||||||||||
Intercompany Interest | 36.3 | 37.3 | 39.2 | ||||||||||
Interest income | 0.3 | 0.5 | 0.2 | ||||||||||
Net gain (loss) on forward and derivative contracts | 1.3 | 0 | 0 | ||||||||||
Other income (expense) - net | 2.1 | 0.2 | (0.1) | ||||||||||
Income (loss) before income taxes and equity in earnings of joint ventures | (3.9) | (9.6) | (0.4) | ||||||||||
Income tax (expense) benefit | 2.6 | 0.5 | 1.9 | ||||||||||
Income (loss) before equity in earnings of joint ventures | (1.3) | (9.1) | 1.5 | ||||||||||
Equity in earnings of joint ventures | (64.9) | 57.7 | (253.9) | ||||||||||
Net income (loss) | (66.2) | 48.6 | (252.4) | ||||||||||
Other comprehensive income (loss) before income tax effect | (5.5) | 23.7 | 0.3 | ||||||||||
Income tax effect | (1.5) | (1.5) | (1.5) | ||||||||||
Other comprehensive income (loss) | (7) | 22.2 | (1.2) | ||||||||||
Total comprehensive income (loss) | (73.2) | 70.8 | (253.6) | ||||||||||
Reportable Legal Entities [Member] | Combined Guarantor Subsidiaries [Member] | |||||||||||||
NET SALES: | |||||||||||||
Related parties | 453.6 | 547.5 | 668.5 | ||||||||||
Other customers | 685 | 390.9 | 140.4 | ||||||||||
Total net sales | 1,138.6 | 938.4 | 808.9 | ||||||||||
Cost of goods sold | 1,169.2 | 885.5 | 857.7 | ||||||||||
Gross profit (loss) | (30.6) | 52.9 | (48.8) | ||||||||||
Selling, general and administrative expenses | 11.6 | 12.9 | 9.9 | ||||||||||
Helguvik (gains) losses | 0 | 0 | 0 | ||||||||||
Ravenswood (gains) | 0 | 0 | |||||||||||
Other operating expense - net | 0 | 0 | 0 | ||||||||||
Operating income (loss) | (42.2) | 40 | (58.7) | ||||||||||
Interest expense | (1.6) | (1.6) | (1.7) | ||||||||||
Intercompany Interest | 9.5 | 8.6 | 8.1 | ||||||||||
Interest income | 0 | 0 | 0 | ||||||||||
Net gain (loss) on forward and derivative contracts | 1.4 | (17) | 3.5 | ||||||||||
Other income (expense) - net | (1.9) | 0.4 | (4.7) | ||||||||||
Income (loss) before income taxes and equity in earnings of joint ventures | (34.8) | 30.4 | (53.5) | ||||||||||
Income tax (expense) benefit | 0 | 0.9 | 0 | ||||||||||
Income (loss) before equity in earnings of joint ventures | (34.8) | 31.3 | (53.5) | ||||||||||
Equity in earnings of joint ventures | 0.6 | 2.7 | 12.5 | ||||||||||
Net income (loss) | (34.2) | 34 | (41) | ||||||||||
Other comprehensive income (loss) before income tax effect | (24.2) | 12.7 | 1.9 | ||||||||||
Income tax effect | 0 | 0 | 0 | ||||||||||
Other comprehensive income (loss) | (24.2) | 12.7 | 1.9 | ||||||||||
Total comprehensive income (loss) | (58.4) | 46.7 | (39.1) | ||||||||||
Reportable Legal Entities [Member] | Combined Non-Guarantor Subsidiaries [Member] | |||||||||||||
NET SALES: | |||||||||||||
Related parties | 750.9 | 650.6 | 510.1 | ||||||||||
Other customers | 3.7 | 0.1 | 0.1 | ||||||||||
Total net sales | 754.6 | 650.7 | 510.2 | ||||||||||
Cost of goods sold | 746.9 | 572.3 | 467.5 | ||||||||||
Gross profit (loss) | 7.7 | 78.4 | 42.7 | ||||||||||
Selling, general and administrative expenses | 5.3 | 4.7 | 9.6 | ||||||||||
Helguvik (gains) losses | (4.5) | (7.3) | 152.2 | ||||||||||
Ravenswood (gains) | (5.5) | 26.8 | |||||||||||
Other operating expense - net | 0.4 | 2.1 | 3.9 | ||||||||||
Operating income (loss) | 6.5 | 84.4 | (149.8) | ||||||||||
Interest expense | (0.2) | (0.2) | (0.2) | ||||||||||
Intercompany Interest | (45.8) | (45.9) | (47.3) | ||||||||||
Interest income | 1.2 | 0.9 | 0.6 | ||||||||||
Net gain (loss) on forward and derivative contracts | 3.6 | 0.5 | 0 | ||||||||||
Other income (expense) - net | 2.8 | (5.1) | (0.3) | ||||||||||
Income (loss) before income taxes and equity in earnings of joint ventures | (31.9) | 34.6 | (197) | ||||||||||
Income tax (expense) benefit | (2.4) | (9) | (4.7) | ||||||||||
Income (loss) before equity in earnings of joint ventures | (34.3) | 25.6 | (201.7) | ||||||||||
Equity in earnings of joint ventures | 4.2 | 0.8 | 1.3 | ||||||||||
Net income (loss) | (30.1) | 26.4 | (200.4) | ||||||||||
Other comprehensive income (loss) before income tax effect | 5.2 | 1.5 | 5.1 | ||||||||||
Income tax effect | 0 | 0 | 0 | ||||||||||
Other comprehensive income (loss) | 5.2 | 1.5 | 5.1 | ||||||||||
Total comprehensive income (loss) | (24.9) | 27.9 | (195.3) | ||||||||||
Consolidating Adjustments [Member] | |||||||||||||
NET SALES: | |||||||||||||
Related parties | 0 | 0 | 0 | ||||||||||
Other customers | 0 | 0 | 0 | ||||||||||
Total net sales | 0 | 0 | 0 | ||||||||||
Cost of goods sold | 0 | 0 | 0 | ||||||||||
Gross profit (loss) | 0 | 0 | 0 | ||||||||||
Selling, general and administrative expenses | 0 | 0 | 0 | ||||||||||
Helguvik (gains) losses | 0 | 0 | 0 | ||||||||||
Ravenswood (gains) | 0 | 0 | |||||||||||
Other operating expense - net | 0 | 0 | 0 | ||||||||||
Operating income (loss) | 0 | 0 | 0 | ||||||||||
Interest expense | 0 | 0 | 0 | ||||||||||
Intercompany Interest | 0 | 0 | 0 | ||||||||||
Interest income | 0 | 0 | 0 | ||||||||||
Net gain (loss) on forward and derivative contracts | 0 | 0 | 0 | ||||||||||
Other income (expense) - net | 0 | 0 | 0 | ||||||||||
Income (loss) before income taxes and equity in earnings of joint ventures | 0 | 0 | 0 | ||||||||||
Income tax (expense) benefit | 0 | 0 | 0 | ||||||||||
Income (loss) before equity in earnings of joint ventures | 0 | 0 | 0 | ||||||||||
Equity in earnings of joint ventures | 64.3 | (60.4) | 241.4 | ||||||||||
Net income (loss) | 64.3 | (60.4) | 241.4 | ||||||||||
Other comprehensive income (loss) before income tax effect | 19 | (14.2) | (7) | ||||||||||
Income tax effect | 0 | 0 | 0 | ||||||||||
Other comprehensive income (loss) | 19 | (14.2) | (7) | ||||||||||
Total comprehensive income (loss) | $ 83.3 | $ (74.6) | $ 234.4 | ||||||||||
[1] | As adjusted due to the adoption of ASU 2017-07 Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost | ||||||||||||
[2] | As adjusted due to the adoption of ASU 2016-18 "Statement of Cash Flows (Topic 230) Restricted Cash." |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Information - Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||||
Cash and cash equivalents | $ 38.9 | $ 167.2 | ||
Restricted cash | 0.8 | 0.8 | ||
Accounts receivable - net | 82.5 | 43.1 | ||
Due from affiliates | 22.7 | 10.4 | ||
Inventories | 343.8 | 317.5 | ||
Prepaid and other current assets | 18 | 14.7 | ||
Total current assets | 506.7 | 553.7 | ||
Property, plant and equipment - net | 967.3 | 971.9 | ||
Investment in subsidiaries | 0 | 0 | ||
Due from affiliates - less current portion | 0 | 0 | ||
Other assets | 63.5 | 56 | ||
TOTAL | 1,537.5 | 1,581.6 | $ 1,540.3 | |
LIABILITIES: | ||||
Accounts payable, trade | 119.4 | 89.9 | ||
Due to affiliates | 10.3 | 20.4 | ||
Accrued and other current liabilities | 52.5 | 61.4 | ||
Accrued employee benefits costs | 11 | 11 | ||
Revolving credit facility | 23.3 | 0 | ||
Industrial revenue bonds | 7.8 | 7.8 | ||
Total current liabilities | 224.3 | 190.5 | ||
Senior notes payable | 248.6 | 248.2 | ||
Accrued pension benefits costs - less current portion | 50.9 | 38.9 | ||
Accrued postretirement benefits costs - less current portion | 101.2 | 113 | ||
Other liabilities | 46 | 57.9 | ||
Intercompany loan | 0 | 0 | ||
Deferred taxes | 104.3 | 103.5 | ||
Total noncurrent liabilities | 551 | 561.5 | ||
SHAREHOLDERS’ EQUITY: | ||||
Preferred stock | 0 | 0 | ||
Common stock | 1 | 0.9 | ||
Other shareholders' equity | 761.2 | 828.7 | ||
Total shareholders’ equity | 762.2 | 829.6 | $ 756.7 | $ 1,008.8 |
TOTAL | 1,537.5 | 1,581.6 | ||
Reportable Legal Entities [Member] | The Company [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 0.1 | 64.3 | ||
Restricted cash | 0 | 0 | ||
Accounts receivable - net | 0.5 | 0 | ||
Due from affiliates | 0 | 0.1 | ||
Inventories | 0 | 0.2 | ||
Prepaid and other current assets | 6.4 | 3.3 | ||
Total current assets | 7 | 67.9 | ||
Property, plant and equipment - net | 20.6 | 19.4 | ||
Investment in subsidiaries | 668.3 | 751.8 | ||
Due from affiliates - less current portion | 751.7 | 513.3 | ||
Other assets | 29.8 | 28 | ||
TOTAL | 1,477.4 | 1,380.4 | ||
LIABILITIES: | ||||
Accounts payable, trade | 3.7 | 6.3 | ||
Due to affiliates | 0 | 0.4 | ||
Accrued and other current liabilities | 15.8 | 16 | ||
Accrued employee benefits costs | 1.9 | 1.9 | ||
Revolving credit facility | 23.3 | |||
Industrial revenue bonds | 0 | 0 | ||
Total current liabilities | 44.7 | 24.6 | ||
Senior notes payable | 248.6 | 248.2 | ||
Accrued pension benefits costs - less current portion | 23.2 | 39.5 | ||
Accrued postretirement benefits costs - less current portion | 0.7 | 0.9 | ||
Other liabilities | 2.8 | 3.5 | ||
Intercompany loan | 395.4 | 234.1 | ||
Deferred taxes | (0.2) | 0 | ||
Total noncurrent liabilities | 670.5 | 526.2 | ||
SHAREHOLDERS’ EQUITY: | ||||
Preferred stock | 0 | 0 | ||
Common stock | 1 | 0.9 | ||
Other shareholders' equity | 761.2 | 828.7 | ||
Total shareholders’ equity | 762.2 | 829.6 | ||
TOTAL | 1,477.4 | 1,380.4 | ||
Reportable Legal Entities [Member] | Combined Guarantor Subsidiaries [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | (0.1) | ||
Restricted cash | 0.8 | 0.8 | ||
Accounts receivable - net | 81.8 | 42.8 | ||
Due from affiliates | 13.1 | 10.3 | ||
Inventories | 210.7 | 205.1 | ||
Prepaid and other current assets | 3.4 | 0.8 | ||
Total current assets | 309.8 | 259.7 | ||
Property, plant and equipment - net | 320.7 | 295.8 | ||
Investment in subsidiaries | 54.5 | 54 | ||
Due from affiliates - less current portion | 517.6 | 349.6 | ||
Other assets | 2.1 | 34.1 | ||
TOTAL | 1,204.7 | 993.2 | ||
LIABILITIES: | ||||
Accounts payable, trade | 84.1 | 51.4 | ||
Due to affiliates | 0 | 2.6 | ||
Accrued and other current liabilities | 22.8 | 19.3 | ||
Accrued employee benefits costs | 8.3 | 8.3 | ||
Revolving credit facility | 0 | |||
Industrial revenue bonds | 7.8 | 7.8 | ||
Total current liabilities | 123 | 89.4 | ||
Senior notes payable | 0 | 0 | ||
Accrued pension benefits costs - less current portion | 20.7 | 18.3 | ||
Accrued postretirement benefits costs - less current portion | 98.9 | 110.4 | ||
Other liabilities | 23.5 | 32 | ||
Intercompany loan | 307.6 | 53.8 | ||
Deferred taxes | 1.8 | 1.7 | ||
Total noncurrent liabilities | 452.5 | 216.2 | ||
SHAREHOLDERS’ EQUITY: | ||||
Preferred stock | 0 | 0 | ||
Common stock | 0 | 0 | ||
Other shareholders' equity | 629.2 | 687.6 | ||
Total shareholders’ equity | 629.2 | 687.6 | ||
TOTAL | 1,204.7 | 993.2 | ||
Reportable Legal Entities [Member] | Combined Non-Guarantor Subsidiaries [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 38.8 | 103 | ||
Restricted cash | 0 | 0 | ||
Accounts receivable - net | 0.2 | 0.3 | ||
Due from affiliates | 9.6 | 0 | ||
Inventories | 133.1 | 112.2 | ||
Prepaid and other current assets | 8.2 | 10.6 | ||
Total current assets | 189.9 | 226.1 | ||
Property, plant and equipment - net | 626 | 656.7 | ||
Investment in subsidiaries | 0 | 0 | ||
Due from affiliates - less current portion | 7.2 | 9.4 | ||
Other assets | 31.6 | 25.9 | ||
TOTAL | 854.7 | 918.1 | ||
LIABILITIES: | ||||
Accounts payable, trade | 31.6 | 32.2 | ||
Due to affiliates | 10.3 | 17.4 | ||
Accrued and other current liabilities | 13.9 | 26.1 | ||
Accrued employee benefits costs | 0.8 | 0.8 | ||
Revolving credit facility | 0 | |||
Industrial revenue bonds | 0 | 0 | ||
Total current liabilities | 56.6 | 76.5 | ||
Senior notes payable | 0 | 0 | ||
Accrued pension benefits costs - less current portion | 7 | 13.1 | ||
Accrued postretirement benefits costs - less current portion | 1.6 | 1.7 | ||
Other liabilities | 19.7 | 22.4 | ||
Intercompany loan | 573.5 | 584.4 | ||
Deferred taxes | 102.7 | 101.8 | ||
Total noncurrent liabilities | 704.5 | 723.4 | ||
SHAREHOLDERS’ EQUITY: | ||||
Preferred stock | 0 | 0 | ||
Common stock | 0.1 | 0.1 | ||
Other shareholders' equity | 93.5 | 118.1 | ||
Total shareholders’ equity | 93.6 | 118.2 | ||
TOTAL | 854.7 | 918.1 | ||
Consolidating Adjustments [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Accounts receivable - net | 0 | 0 | ||
Due from affiliates | 0 | 0 | ||
Inventories | 0 | 0 | ||
Prepaid and other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Property, plant and equipment - net | 0 | 0 | ||
Investment in subsidiaries | (722.8) | (805.8) | ||
Due from affiliates - less current portion | (1,276.5) | (872.3) | ||
Other assets | 0 | (32) | ||
TOTAL | (1,999.3) | (1,710.1) | ||
LIABILITIES: | ||||
Accounts payable, trade | 0 | 0 | ||
Due to affiliates | 0 | 0 | ||
Accrued and other current liabilities | 0 | 0 | ||
Accrued employee benefits costs | 0 | 0 | ||
Revolving credit facility | 0 | |||
Industrial revenue bonds | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Senior notes payable | 0 | 0 | ||
Accrued pension benefits costs - less current portion | 0 | (32) | ||
Accrued postretirement benefits costs - less current portion | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Intercompany loan | (1,276.5) | (872.3) | ||
Deferred taxes | 0 | 0 | ||
Total noncurrent liabilities | (1,276.5) | (904.3) | ||
SHAREHOLDERS’ EQUITY: | ||||
Preferred stock | 0 | 0 | ||
Common stock | (0.1) | (0.1) | ||
Other shareholders' equity | (722.7) | (805.7) | ||
Total shareholders’ equity | (722.8) | (805.8) | ||
TOTAL | $ (1,999.3) | $ (1,710.1) |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Information - Statement of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net cash provided by operating activities | $ (69.1) | $ 51.5 | [1] | $ 38.2 | [1] | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Purchase of property, plant and equipment | (83) | (31.8) | [1] | (21.9) | [1] | |
Proceeds from sale of property, plant and equipment | 0.1 | 14.4 | [1] | 1 | [1] | |
Intercompany transactions | 0 | 0 | 0 | |||
Net cash (used in) investing activities | (82.9) | (17.4) | [1] | (20.9) | [1] | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Borrowings under revolving credit facilities | 120.1 | 1.3 | [1] | 1.2 | [1] | |
Repayments under revolving credit facilities | (96.8) | (1.3) | [1] | (1.2) | [1] | |
Issuance of common stock | 0.4 | 0.4 | [1] | 0 | [1] | |
Intercompany transactions | 0 | 0 | 0 | |||
Net cash provided by financing activities | 23.7 | 0.4 | [1] | 0 | [1] | |
CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (128.3) | 34.5 | [1] | 17.3 | [1] | |
Cash, cash equivalents and restricted cash, beginning of year | [1] | 168 | 133.5 | 116.2 | ||
Cash, cash equivalents and restricted cash, end of year | 39.7 | 168 | [1] | 133.5 | [1] | |
Reportable Legal Entities [Member] | The Company [Member] | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net cash provided by operating activities | (53) | (34.5) | (63.4) | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Purchase of property, plant and equipment | (4.4) | (10.9) | (1.4) | |||
Proceeds from sale of property, plant and equipment | 0 | 0 | 0 | |||
Intercompany transactions | 21.6 | 75.6 | 27.8 | |||
Net cash (used in) investing activities | 17.2 | 64.7 | 26.4 | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Borrowings under revolving credit facilities | 120.1 | 1.3 | 1.2 | |||
Repayments under revolving credit facilities | (96.8) | (1.3) | (1.2) | |||
Issuance of common stock | 0.4 | 0.4 | ||||
Intercompany transactions | (52.1) | (3.1) | 15.4 | |||
Net cash provided by financing activities | (28.4) | (2.7) | 15.4 | |||
CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (64.2) | 27.5 | (21.6) | |||
Cash, cash equivalents and restricted cash, beginning of year | 64.3 | 36.8 | 58.4 | |||
Cash, cash equivalents and restricted cash, end of year | 0.1 | 64.3 | 36.8 | |||
Reportable Legal Entities [Member] | Combined Guarantor Subsidiaries [Member] | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net cash provided by operating activities | (19.5) | (7) | 19 | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Purchase of property, plant and equipment | (65.1) | (8.1) | (7.8) | |||
Proceeds from sale of property, plant and equipment | 0 | 0.9 | 0 | |||
Intercompany transactions | 54.7 | 6.2 | (15.4) | |||
Net cash (used in) investing activities | (10.4) | (1) | (23.2) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Borrowings under revolving credit facilities | 0 | 0 | 0 | |||
Repayments under revolving credit facilities | 0 | 0 | 0 | |||
Issuance of common stock | 0 | 0 | ||||
Intercompany transactions | 30 | 8.2 | 7.5 | |||
Net cash provided by financing activities | 30 | 8.2 | 7.5 | |||
CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 0.1 | 0.2 | 3.3 | |||
Cash, cash equivalents and restricted cash, beginning of year | 0.7 | 0.5 | (2.8) | |||
Cash, cash equivalents and restricted cash, end of year | 0.8 | 0.7 | 0.5 | |||
Reportable Legal Entities [Member] | Combined Non-Guarantor Subsidiaries [Member] | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net cash provided by operating activities | 3.4 | 96 | 82.6 | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Purchase of property, plant and equipment | (13.5) | (12.8) | (12.7) | |||
Proceeds from sale of property, plant and equipment | 0.1 | 13.5 | 1 | |||
Intercompany transactions | 2.2 | (7.6) | (0.9) | |||
Net cash (used in) investing activities | (11.2) | (6.9) | (12.6) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Borrowings under revolving credit facilities | 0 | 0 | 0 | |||
Repayments under revolving credit facilities | 0 | 0 | 0 | |||
Issuance of common stock | 0 | 0 | ||||
Intercompany transactions | (56.4) | (82.3) | (34.4) | |||
Net cash provided by financing activities | (56.4) | (82.3) | (34.4) | |||
CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (64.2) | 6.8 | 35.6 | |||
Cash, cash equivalents and restricted cash, beginning of year | 103 | 96.2 | 60.6 | |||
Cash, cash equivalents and restricted cash, end of year | 38.8 | 103 | 96.2 | |||
Consolidating Adjustments [Member] | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net cash provided by operating activities | 0 | (3) | 0 | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Purchase of property, plant and equipment | 0 | 0 | 0 | |||
Proceeds from sale of property, plant and equipment | 0 | 0 | 0 | |||
Intercompany transactions | (78.5) | (74.2) | (11.5) | |||
Net cash (used in) investing activities | (78.5) | (74.2) | (11.5) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Borrowings under revolving credit facilities | 0 | 0 | 0 | |||
Repayments under revolving credit facilities | 0 | 0 | 0 | |||
Issuance of common stock | 0 | 0 | ||||
Intercompany transactions | 78.5 | 77.2 | 11.5 | |||
Net cash provided by financing activities | 78.5 | 77.2 | 11.5 | |||
CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 0 | 0 | 0 | |||
Cash, cash equivalents and restricted cash, beginning of year | 0 | 0 | 0 | |||
Cash, cash equivalents and restricted cash, end of year | $ 0 | $ 0 | $ 0 | |||
[1] | As adjusted due to the adoption of ASU 2016-18 "Statement of Cash Flows (Topic 230) Restricted Cash." |