Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 19, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 1-09447 | ||
Entity Registrant Name | KAISER ALUMINUM CORPORATION | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 94-3030279 | ||
Entity Address, Address Line One | 1550 West McEwen Drive | ||
Entity Address, Address Line Two | Suite 500 | ||
Entity Address, City or Town | Franklin | ||
Entity Address, State or Province | TN | ||
Entity Address, Postal Zip Code | 37067 | ||
City Area Code | 629 | ||
Local Phone Number | 252-7040 | ||
Title of 12(b) Security | Common stock, par value $0.01 per share | ||
Trading Symbol | KALU | ||
Security Exchange Name | NASDAQ | ||
Entity Well Known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.1 | ||
Entity Common Stock, Shares Outstanding | 16,015,791 | ||
Documents Incorporated by Reference | Documents Incorporated by Reference. Certain portions of the registrant’s definitive proxy statement related to the registrant’s 2024 annual meeting of stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
ICFR Auditor Attestation Flag | true | ||
Entity Central Index Key | 0000811596 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Auditor Firm ID | 34 | ||
Auditor Name | Deloitte & Touche LLP | ||
Auditor Location | Nashville, Tennessee |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 82.4 | $ 57.4 |
Receivables: | ||
Trade receivables, net | 325.2 | 297.2 |
Other | 12.4 | 73.5 |
Contract assets | 58.5 | 58.6 |
Inventories | 477.2 | 525.4 |
Prepaid expenses and other current assets | 34.5 | 30.5 |
Total current assets | 990.2 | 1,042.6 |
Property, plant and equipment, net | 1,052.1 | 1,013.2 |
Operating lease assets | 32.6 | 39.1 |
Deferred tax assets, net | 6 | 7.5 |
Intangible assets, net | 50 | 55.3 |
Goodwill | 18.8 | 18.8 |
Other assets | 117.7 | 112.3 |
Total assets | 2,267.4 | 2,288.8 |
Current liabilities: | ||
Accounts payable | 252.7 | 305.1 |
Accrued salaries, wages and related expenses | 53 | 45.2 |
Other accrued liabilities | 64.3 | 68.4 |
Total current liabilities | 370 | 418.7 |
Long-term portion of operating lease liabilities | 29.2 | 35.4 |
Pension and other postretirement benefits | 76.8 | 69.3 |
Net liabilities of Salaried VEBA | 3.8 | 16.5 |
Deferred tax liabilities | 13.9 | 4.9 |
Long-term liabilities | 81.7 | 74.7 |
Long-term debt, net | 1,039.8 | 1,038.1 |
Total liabilities | 1,615.2 | 1,657.6 |
Commitments and contingencies - Note 10 | ||
Stockholders’ equity: | ||
Preferred stock, 5,000,000 shares authorized at both December 31, 2023 and December 31, 2022; no shares were issued and outstanding at December 31, 2023 and December 31, 2022 | ||
Common stock, par value $0.01, 90,000,000 shares authorized at both December 31, 2023 and December 31, 2022; 22,851,077 shares issued and 16,015,791 shares outstanding at December 31, 2023; 22,776,042 shares issued and 15,940,756 shares outstanding at December 31, 2022 | 0.2 | 0.2 |
Additional paid in capital | 1,104.7 | 1,090.4 |
Retained earnings | 10.1 | 13.3 |
Treasury stock, at cost, 6,835,286 shares at both December 31, 2023 and December 31, 2022 | (475.9) | (475.9) |
Accumulated other comprehensive income | 13.1 | 3.2 |
Total stockholders’ equity | 652.2 | 631.2 |
Total liabilities and stockholders' equity | $ 2,267.4 | $ 2,288.8 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common Stock, shares issued | 22,851,077 | 22,776,042 |
Common stock, shares outstanding | 16,015,791 | 15,940,756 |
Treasury stock, shares | 6,835,286 | 6,835,286 |
STATEMENTS OF CONSOLIDATED INCO
STATEMENTS OF CONSOLIDATED INCOME (LOSS) - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Net sales | $ 3,087 | $ 3,427.9 | $ 2,622 |
Costs and expenses: | |||
Cost of products sold, excluding depreciation and amortization | 2,754.9 | 3,180.2 | 2,348.1 |
Depreciation and amortization | 108.6 | 106.9 | 91.5 |
Selling, general, administrative, research and development | 122.7 | 110.9 | 118.8 |
Goodwill impairment | 0 | 20.5 | |
Restructuring costs (benefit) | 5 | 2.2 | (0.8) |
Other operating charges, net | 3.2 | ||
Total costs and expenses | 2,991.2 | 3,423.9 | 2,557.6 |
Operating income | 95.8 | 4 | 64.4 |
Other (expense) income: | |||
Interest expense | (46.9) | (48.3) | (49.5) |
Other income (expense), net - Note 13 | 7.4 | 6.4 | (38.9) |
Income (loss) before income taxes | 56.3 | (37.9) | (24) |
Income tax (provision) benefit | (9.1) | 8.3 | 5.5 |
Net income (loss) | $ 47.2 | $ (29.6) | $ (18.5) |
Net income (loss) per common share: | |||
Basic | $ 2.95 | $ (1.86) | $ (1.17) |
Diluted | $ 2.92 | $ (1.86) | $ (1.17) |
Weighted-average number of common shares outstanding (in thousands): | |||
Basic | 15,991 | 15,906 | 15,836 |
Diluted | 16,131 | 15,906 | 15,836 |
STATEMENTS OF CONSOLIDATED COMP
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 47.2 | $ (29.6) | $ (18.5) |
Other comprehensive income (loss), net of tax-Note 11: | |||
Defined benefit plans | 8.2 | 24.2 | (1.6) |
Cash flow hedges | 1.7 | (17.3) | 16.6 |
Other comprehensive income (loss), net of tax | 9.9 | 6.9 | 15 |
Comprehensive income (loss) | $ 57.1 | $ (22.7) | $ (3.5) |
STATEMENTS OF CONSOLIDATED STOC
STATEMENTS OF CONSOLIDATED STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional Paid In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive (Loss) Income | |
Beginning balance at Dec. 31, 2020 | $ 732.4 | $ 0.2 | $ 1,068.6 | $ 158.2 | $ (475.9) | $ (18.7) | |
Beginning balance (shares) at Dec. 31, 2020 | 15,812,169 | ||||||
Net income (loss) | (18.5) | (18.5) | |||||
Other comprehensive income, net of tax | 15 | 15 | |||||
Common shares issued (including impacts from Long-Term Incentive programs) | 0.3 | 0.3 | |||||
Common shares issued (including impacts from Long-Term Incentive programs) (shares) | 75,748 | ||||||
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | (2.6) | (2.6) | |||||
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares (shares) | (22,799) | ||||||
Cash dividends declared | [1] | (46.7) | (46.7) | ||||
Amortization of unearned equity compensation | 12.6 | 12.6 | |||||
Ending balance at Dec. 31, 2021 | 692.5 | $ 0.2 | 1,078.9 | 93 | (475.9) | (3.7) | |
Ending balance (shares) at Dec. 31, 2021 | 15,865,118 | ||||||
Net income (loss) | (29.6) | (29.6) | |||||
Other comprehensive income, net of tax | 6.9 | 6.9 | |||||
Common shares issued (including impacts from Long-Term Incentive programs) | 0.6 | 0.6 | |||||
Common shares issued (including impacts from Long-Term Incentive programs) (shares) | 107,494 | ||||||
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | (2.8) | (2.8) | |||||
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares (shares) | (31,856) | ||||||
Cash dividends declared | [1] | (50.1) | (50.1) | ||||
Amortization of unearned equity compensation | 13.7 | 13.7 | |||||
Ending balance at Dec. 31, 2022 | $ 631.2 | $ 0.2 | 1,090.4 | 13.3 | (475.9) | 3.2 | |
Ending balance (shares) at Dec. 31, 2022 | 15,940,756 | 15,940,756 | |||||
Net income (loss) | $ 47.2 | 47.2 | |||||
Other comprehensive income, net of tax | 9.9 | 9.9 | |||||
Common shares issued (including impacts from Long-Term Incentive programs) | 0.7 | 0.7 | |||||
Common shares issued (including impacts from Long-Term Incentive programs) (shares) | 98,292 | ||||||
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | (1.8) | (1.8) | |||||
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares (shares) | (23,257) | ||||||
Cash dividends declared | [1] | (50.4) | (50.4) | ||||
Amortization of unearned equity compensation | 15.4 | 15.4 | |||||
Ending balance at Dec. 31, 2023 | $ 652.2 | $ 0.2 | $ 1,104.7 | $ 10.1 | $ (475.9) | $ 13.1 | |
Ending balance (shares) at Dec. 31, 2023 | 16,015,791 | 16,015,791 | |||||
[1] Dividends declared per common share were $ 3.08 , $ 3.08 and $ 2.88 during 2023, 2022, and 2021 , respectively. |
STATEMENTS OF CONSOLIDATED ST_2
STATEMENTS OF CONSOLIDATED STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared (in dollars per share) | $ 3.08 | $ 3.08 | $ 2.88 |
STATEMENTS OF CONSOLIDATED CASH
STATEMENTS OF CONSOLIDATED CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 47.2 | $ (29.6) | $ (18.5) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation of property, plant and equipment | 103.3 | 97.6 | 82.5 |
Amortization of definite-lived intangible assets | 5.3 | 9.3 | 9 |
Amortization of debt premium and debt issuance costs | 2.2 | 2.3 | 2.1 |
Deferred income taxes | 7.5 | (12) | (11.4) |
Non-cash equity compensation | 16.1 | 14.3 | 12.9 |
Non-cash asset impairment charges | 23.7 | ||
Loss on extinguishment of debt | 35.9 | ||
Gain on disposition of property, plant and equipment | (13.8) | (6) | (0.5) |
Gain on reimbursement on certain machinery and equipment - Note 13 | (6) | ||
Non-cash defined benefit net periodic postretirement benefit cost | 13.4 | 13.1 | 9.4 |
Changes in operating assets and liabilities, net of effects of acquisition: | |||
Trade and other receivables | 33.1 | 15 | (90.3) |
Contract assets | 0.1 | 4.6 | (27.1) |
Inventories | 48.2 | (120.8) | (43.5) |
Prepaid expenses and other current assets | (2.8) | (1.5) | (0.9) |
Accounts payable | (43) | (61.2) | 112.5 |
Accrued liabilities | 6.6 | 4.4 | 17.3 |
Annual variable cash contributions to Salaried VEBA | (1.7) | ||
Long-term assets and liabilities, net | (11.5) | (10.3) | (8.3) |
Net cash provided by (used in) operating activities | 211.9 | (63.1) | 79.4 |
Cash flows from investing activities: | |||
Capital expenditures | (143.2) | (142.5) | (58) |
Purchase of equity securities | (0.3) | (0.3) | (0.4) |
Proceeds from sale of equity securities | 0.1 | ||
Cash payment for acquisition of Warrick, net of cash received – Note 4 | (609.2) | ||
Proceeds from reimbursement on certain machinery and equipment - Note 13 | 6 | ||
Proceeds from disposition of property, plant and equipment | 15.2 | 11 | 1.8 |
Net cash used in investing activities | (128.2) | (125.8) | (665.8) |
Cash flows from financing activities: | |||
Borrowings under the Revolving Credit Facility | 215.1 | ||
Repayment of borrowings under the Revolving Credit Facility | (215.1) | ||
Cash paid for debt issuance costs | (1.8) | (8.6) | |
Repayment of finance lease | (2.1) | (2.1) | (2.1) |
Cancellation of shares to cover tax withholdings upon common shares issued | (1.8) | (2.8) | (2.6) |
Cash dividends and dividend equivalents paid | (50.4) | (50.1) | (46.7) |
Net cash (used in) provided by financing activities | (54.3) | (56.8) | 109.1 |
Net increase (decrease) in cash, cash equivalents and restricted cash during the period | 29.4 | (245.7) | (477.3) |
Cash, cash equivalents and restricted cash at beginning of period | 71.3 | 317 | 794.3 |
Cash, cash equivalents and restricted cash at end of period | $ 100.7 | $ 71.3 | 317 |
6.50% Senior Notes | |||
Cash flows from financing activities: | |||
Repayment of principal and redemption premium of Senior Notes | (380.9) | ||
4.50% Senior Notes | |||
Cash flows from financing activities: | |||
Issuance of Senior Notes | $ 550 |
STATEMENTS OF CONSOLIDATED CA_2
STATEMENTS OF CONSOLIDATED CASH FLOWS (Parenthetical) | May 31, 2021 |
6.50% Senior Notes | Senior Notes | |
Debt instrument contractual rate (percent) | 6.50% |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significa nt Accounting Policies In this Form 10-K, unless the context otherwise requires, references in these notes to consolidated financial statements to “Kaiser Aluminum Corporation,” “Kaiser,” “we,” “us,” “our,” “the Company” and “our Company” refer collectively to Kaiser Aluminum Corporation and its subsidiaries. Organization and Nature of Operations. Kaiser Aluminum Corporation specializes in the production of semi-fabricated specialty aluminum mill products, such as aluminum plate and sheet, bare and coated coil and extruded and drawn products, for the following end market applications: (i) Aero/HS products; (ii) Packaging; (iii) GE products; (iv) Automotive Extrusions; and (v) Other products. Our business is organized into one operating segment. See Note 17 for additional information regarding our business, product and geographical area information and concentration of risk. Principles of Consolidation and Basis of Presentation. Our consolidated financial statements include the accounts of our wholly owned subsidiaries and are prepared in accordance with GAAP and the rules and regulations of the SEC. Intercompany balances and transactions are eliminated. Use of Estimates in the Preparation of Financial Statements. The preparation of financial statements in accordance with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of our consolidated financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of our consolidated financial position and results of operations. Supply Chain Financing . Upon our acquisition of Warrick (see Note 4), we became party to several supply chain financing arrangements, in which we may sell certain of our customers’ trade accounts receivable to such customers’ financial institutions without recourse. We sell our undivided interests in certain of these receivables at our discretion when we determine that the cost of these arrangements is less than the cost of servicing our receivables with existing debt. Under the terms of the agreements, we retain no rights or interest, have no obligations with respect to the sold receivables and do not service the receivables after the sale. As such, we account for these transactions as a sale (see Note 13 ). Fair Value Measurements. We apply the fair value hierarchy established by GAAP for the recognition and measurement of certain financial assets and liabilities. An asset or liability’s fair value classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and consider counterparty risk in our assessment of fair value. We also review the underlying inputs that are significant to the fair value measurement of financial instruments to determine if a transfer among hierarchy levels is appropriate. Financial assets and liabilities that we measure at fair value each period include our derivative instruments and equity investments related to our deferred compensation plan (see Note 5 and Note 8). Additionally, we measure at fair value once each year at December 31 the plan assets of our defined benefit pension and postretirement plans including the Salaried VEBA (see Note 5 ). In determining the fair value of the plan assets at an annual period end, we utilize primarily the results of valuations supplied by the investment advisors responsible for managing the assets of each plan, which we independently review for reasonableness. We record our remaining financial assets and liabilities at carrying value. Goodwill is tested for impairment during the fourth quarter on an annual basis, as well as on an interim basis, as warranted, at the time of relevant events and changes in circumstances. Our evaluation of goodwill for impairment involves the comparison of the fair value of each reporting unit to its carrying value. We estimate the fair value of a reporting unit using a combination of an income approach and a market-based approach. Intangible asset fair values and useful lives are determined using the income approach valuation methodology. The income approach incorporates the use of cash flow projections and a discount rate that are developed using market participant-based assumptions. The cash flow projections are based on, among other factors, the expected future period of benefit of the asset, the various characteristics of the asset, long‑term forecasts of the business, market prices, projected cash flows and the rate used in discounting those cash flows. Intangible assets with definite lives are initially recognized at fair value and subsequently amortized over the estimated useful lives to reflect the pattern in which the economic benefits of the intangible assets are consumed. In the event the pattern cannot be reliably determined, we use a straight-line amortization method. Whenever events or changes in circumstances indicate that the carrying amount of the intangible assets may not be recoverable, the intangible assets are reviewed for impairment. See Note 4 for discussion on business combinations, goodwill and intangible assets. For a majority of our remaining non-financial assets and liabilities, which include inventories, debt issuance costs and property, plant and equipment, we are not required to measure their fair value on a recurring basis. However, if certain triggering events occur, an evaluation of the affected non-financial asset or liability will be required, which could result in a reduction to the carrying amount of such asset or liability. See “Property, Plant and Equipment, Net” below for a discussion of impairment charges on long-lived physical assets. See Note 9 for the fair value of our Long-term debt, net. Government Grants. From time to time, we receive grants from certain governmental agencies such as states and municipalities. We recognize government grants when we have reasonable assurance that we will comply with any conditions attached to the grant and the grant will be received. Government grants related to property, plant and equipment are presented as a reduction to the related asset’s carrying amount. Grants related to compensation for expenses already incurred or for immediate financial support with no future related costs are recognized as income in the period in which they are receivable. The following table presents the total government assistance recognized during the year ended December 31, 2023 (in millions of dollars): Grantor Grant Amount Duration Classification Indiana Economic Development Corporation IN EDGE Tax Credit $ 1.6 2021 - 2030 Cost of products sold, excluding depreciation and amortization Total $ 1.6 To be eligible to receive and keep the full amount of the IN EDGE Tax Credit, we must achieve: (i) minimum cumulative expenditures towards capital expenditures and (ii) a minimum number of full-time employees. Cash and Cash Equivalents. We consider only those short-term, highly liquid investments which, when purchased, have maturities of 90 days or less to be cash equivalents. Our cash equivalents consist primarily of funds in money market funds, which are classified within Level 1 of the fair value hierarchy. Restricted Cash. We are required to keep on deposit certain amounts that are pledged or held as collateral relating to workers’ compensation and other agreements. We account for such deposits as restricted cash (see Note 16 ). From time to time, such restricted funds could be returned to us or we could be required to pledge additional cash. Trade Receivables and Allowance for Credit Losses. Trade receivables primarily consist of amounts billed to customers for products sold. Accounts receivable are generally due within 30 to 90 days . For the majority of our receivables, we establish an allowance for credit losses based upon collection experience and other factors including, but not limited to, customer credit ratings, bankruptcy filings, published or estimated credit default rates, age of receivables, expected loss rates and collateral exposures. On certain other receivables where we are aware of a specific customer’s inability or reluctance to pay, an allowance for credit losses is established against amounts due, to reduce the net receivable balance to the amount we reasonably expect to collect. However, if circumstances change, our estimate of the recoverability of accounts receivable could be different. Circumstances that could affect our estimates include, but are not limited to, customer credit issues and general economic conditions. Accounts are written off once deemed to be uncollectible. Any subsequent cash collections relating to accounts that have been previously written off are typically recorded as a reduction to total bad debt expense in the period of payment. Write-offs for 2023, 2022, and 2021 were immaterial to our consolidated financial statements. Inventories. Inventories are stated at the lower of cost or market value. Finished products, work-in-process, and raw material inventories are stated on the last-in, first-out (“LIFO”) basis. At December 31, 2023 and December 31, 2022 , the cost of our inventory on a first-in, first-out (“FIFO”) basis, which approximates the current replacement cost, exceeded its stated LIFO value by $ 56.0 million and $ 84.6 million , respectively. Other inventories are stated on the FIFO basis and consist of operating supplies, which are materials and supplies to be consumed during the production process. Inventory costs consist of material, labor and manufacturing overhead, including depreciation. Abnormal costs, such as idle facility expenses, freight, handling costs and spoilage, are accounted for as current period charges. See Note 2 for the components of inventories. Replacement Parts. Replacement parts consist of preventative maintenance and capital spare parts, which are stated on the FIFO basis. Replacement parts are recorded within Prepaid expenses and other current assets or Other assets depending on whether or not the expected utilization of the replacement parts is to occur within the next 12 months. Property, Plant and Equipment, Net. Property, plant and equipment, net, is recorded at cost and includes construction in progress (see Note 2). Property, plant and equipment acquired in the Warrick acquisition was recorded at fair value as of the date of acquisition (see Note 4). Interest related to the construction of qualifying assets is capitalized as part of the construction costs (see Note 9). Depreciation is computed using the straight-line method at rates based on the estimated useful lives of the various classes of assets. Depreciable finance lease assets and leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful lives of the assets or the lease term. The estimated useful lives are as follows: Range Land improvements 1 - 25 Buildings and leasehold improvements 2 - 45 Machinery and equipment 1 - 22 Depreciable finance lease assets 2 - 120 Depreciation expense is included in Depreciation and amortization within our Statements of Consolidated Income (Loss). Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset or group of assets may not be recoverable. We regularly assess whether events and circumstances with the potential to trigger impairment have occurred and rely on a number of factors, including operating results, business plans, economic projections, and anticipated future cash flow, to make such assessments. We use an estimate of the future undiscounted cash flows of the related asset or asset group over the estimated remaining life of such asset or asset group in measuring whether the asset or asset group is recoverable. There were no impairment charges in 2023, 2022, and 2021. Asset impairment charges are included in Other operating charges, net, in our Statements of Consolidated Income (Loss). We classify assets as held for sale only when an asset is being actively marketed and expected to sell within 12 months. Assets held for sale are initially measured at the lesser of the assets’ carrying amount and the fair value less costs to sell. Cloud Computing Implementation Costs. We defer implementation costs associated with a software hosting arrangement that meets the definition of a service contract. We recognize these deferred costs within Prepaid expenses and other current assets and within Other assets on our Consolidated Balance Sheets. When the project is placed into service, we amortize the deferred implementation costs over the term of the hosting arrangement inclusive of expected renewal periods to the same line item in the Statements of Consolidated Income (Loss) as the underlying arrangement. The following table summarizes the total deferred implementation costs and accumulated amortization related to the hosted cloud computing software for our enterprise resource planning system refresh project (in millions of dollars): As of December 31, Average 2023 2022 2021 Useful Life Deferred implementation costs 1 $ 11.7 $ 10.4 $ 7.8 9 years Accumulated amortization $ ( 2.2 ) $ ( 1.1 ) $ ( 0.1 ) n/a 1. We began amortizing deferred implementation costs in December 2021 and will amortize such costs within Selling, general, administrative, research and development over a nine-year period . We recorded amortization expense of $ 1.1 million , $ 1.0 million , and $ 0.1 million in 2023, 2022, and 2021 , respectively. Leases. We determine whether an agreement is a lease at inception. We have operating and finance leases for equipment and real estate that primarily have fixed lease payments. For purposes of calculating lease liabilities, options to extend or terminate a lease are included within the lease term when it is reasonably certain that we will exercise such options. Short-term leases with an initial term of 12 months or less are not recorded on our Consolidated Balance Sheets. As most of our leases do not provide an implicit rate, we use information available at the lease commencement date in determining an incremental borrowing rate when calculating our right-of-use lease assets and liabilities. In determining the inputs to the incremental borrowing rate calculation, we make judgments about the value of the leased asset, our credit rating, and the lease term, including the probability of our exercising options to extend or terminate the underlying lease. Additionally, we make judgments around contractual asset substitution rights in determining whether a contract contains a lease. We have lease agreements with lease and non-lease components, which are generally accounted for separately. These non-lease components include items such as common area maintenance, taxes, and insurance for our real estate leases, as well as maintenance charges related to our equipment leases. We have, however, applied the practical expedient within ASC No. 2016-02, Leases (Topic 842): Amendments to the Financial Accounting Standards Board Accounting Standards Codification (“ASC 2016-02”), to not separate lease and non-lease components to our embedded supply system equipment leases and have therefore accounted for both lease and non‑lease components in determining the lease assets and liabilities. Many of our equipment leases contain clauses that require us to return the equipment with certain functionality intact. We account for these costs as residual value guarantees when the guarantee becomes probable of being owed. Our lease agreements do not contain any material restrictive covenants. Derivative Financial Instruments. Consistent with guidelines established by management and approved by our Board of Directors, we use derivative financial instruments to mitigate our exposure to changes in the market price of aluminum, certain alloying metals, energy and, to a lesser extent, foreign currency exchange rates. We do not use derivative financial instruments for trading or other speculative purposes. Hedging transactions are executed centrally on behalf of all of our operations to minimize transaction costs, monitor consolidated net exposures, and allow for increased responsiveness to changes in market factors. We reflect the fair value of all of our derivative instruments on our Consolidated Balance Sheets. The fair value of hedges settling within one year is included in Prepaid expenses and other current assets or Other accrued liabilities. The fair value of hedges settling beyond one year is included in Other assets or Long-term liabilities. Cash flows related to all of our derivative instruments are reported in our Statements of Consolidated Cash Flows within the same category as the items being hedged. See Note 8 for additional information on our derivative financial instruments. Self-Insurance of Workers’ Compensation and Employee Healthcare Liabilities . We self-insure the majority of the costs of workers’ compensation benefits and employee healthcare benefits and rely on insurance coverage to protect us from large losses on individual claims. Workers’ compensation liabilities are based on a combination of estimates for: (i) incurred-but-not-reported claims and (ii) the ultimate expense of incurred claims. Such estimates are based on judgment, using our historical claims data and information and analysis provided by actuarial and claims advisors, our insurance carriers and other professionals. Accrued liabilities for employee healthcare benefits, which are estimates of unpaid incurred medical and prescription drug costs as provided by our healthcare administrators, were $ 7.7 million at December 31, 2023 and December 31, 2022 . Debt Issuance Costs. Costs incurred in connection with debt financing are deferred and amortized over the estimated term of the related borrowing. Such amortization is included in Interest expense in our Statements of Consolidated Income (Loss). Unamortized issuance costs are presented within Long-term debt, net on our Consolidated Balance Sheets (see Note 9 ). Conditional Asset Retirement Obligations ( “ CAROs ” ). We have CAROs at several of our manufacturing facilities. Our CAROs can be separated into two primary categories: (i) legal obligations related to the removal and disposal of asbestos and (ii) CAROs related to future lease terminations. The majority of our CAROs relate to the first category and consist of incremental costs that would be associated with the removal and disposal of asbestos (all of which is believed to be fully contained and encapsulated within walls, floors, roof, piping, or equipment insulation) of certain of our older facilities if such facilities were to undergo major renovation or be demolished. We estimate incremental costs for special handling, removal and disposal costs of materials that may or will give rise to CAROs and then discount the expected costs back to the current year using a credit-adjusted, risk-free rate. When it is unclear when or if CAROs will be triggered, we use probability weighting for possible timing scenarios to determine the probability-weighted liability amounts that should be recognized in our consolidated financial statements (see Note 10 ). Environmental Contingencies. With respect to environmental loss contingencies, we record a loss contingency whenever a contingency is probable and reasonably estimable (see Note 10). Accruals for estimated losses from environmental remediation obligations are generally recognized no later than the completion of the remedial feasibility study. Such accruals are adjusted as information develops or circumstances change. Costs of future expenditures for environmental remediation obligations are not discounted to their present value. Accruals for expected environmental costs are included in Other accrued liabilities or Long-term liabilities, as appropriate (see Note 2 ). Environmental expense relating to continuing operations is included in COGS in our Statements of Consolidated Income (Loss). Environmental expense relating to non-operating locations is included in Selling, general, administrative, research and development (“SG&A and R&D”) in our Statements of Consolidated Income (Loss). Revenue Recognition. We recognize revenue as we fulfill our performance obligations and transfer control of products to our customers. For products that have an alternative use and/or for which we do not have an enforceable right to payment (including a reasonable profit) during the production process, we recognize revenue at a point in time. For products that have no alternative use and for which we have an enforceable right to payment (including a reasonable profit) throughout the production process, we recognize revenue over time. In general, revenue recognized over time primarily relates to our Aero/HS products and our Automotive Extrusions with the remainder of our products recognized at a point in time. In limited circumstances, we have concluded that we are an agent in certain Packaging end market arrangements. For these transactions, revenue has been recognized on a net basis. For the majority of our business, contracts with customers begin when we acknowledge a purchase order for a specific customer order of product to be delivered in the near term. These purchase orders are short term in nature, although they may reference a longer term “blanket purchase order” or a “terms and conditions” agreement, both of which may span multiple years. For revenue recognized at a point in time, transfer of control usually occurs upon shipment or upon customer receipt of the product, depending on shipping terms. For contracts recognized over time, control transfer occurs incrementally during our production process as progress is made on fulfilling the performance obligation. We use the input method of determining our progress, capturing direct costs beginning at the point that billet or cast ingot is introduced into production at either the extrusion phase or the rolling phase, respectively. We believe the input method more accurately reflects the transfer of control as it represents the best information available of work completed to date for which we have an enforceable right to payment. For products in production, we recognize revenue using estimates of the cost incurred to date plus a reasonable margin. As the duration of our contracts for accounting purposes is typically less than one year, we do not present quantitative information about the aggregate transaction price allocated to unsatisfied performance obligations at the end of the reporting period. We adjust the amount of revenue recognized on all products, regardless of timing of revenue recognition, for variable price consideration, which could include metal market price adjustments, volume rebates and sales discounts. We estimate rebate and discount values based on forecasted order data and historical payment trends for specific customers, adjusted as necessary at each reporting period. Accounts receivable is recorded when our right to consideration becomes unconditional. Payment terms for a majority of our customers is 30 to 90 days, with the longer terms generally to accommodate customers with deliveries to overseas locations. As such, we do not adjust the promised amount of consideration for the effects of a significant financing component as we do not expect the period between the transfer of control of products to our customers and receipt of payment will be greater than one year. Contract assets primarily relate to our enforceable right to consideration for work completed but not billed at the reporting date on contracts for products recognized over time. Contract assets also include amounts related to our contractual right to consideration for finished goods recognized over time that were in transit as of period end. Incremental Costs of Obtaining a Contract . We expense the costs of obtaining a contract as incurred as the amortization period of the asset that we otherwise would have recognized is one year or less. Shipping and Handling Activities. We account for shipping and handling activities that occur after the customer has obtained control of a product as fulfillment activities (i.e., an expense) rather than as a promised service (i.e., a revenue element). Advertising Costs. Advertising costs, which are included in SG&A and R&D, are expensed as incurred. Advertising costs for 2023 and 2021 were $ 0.1 million . We had no advertising costs in 2022. Research and Development Costs. Research and development costs, which are included in SG&A and R&D, are expensed as incurred. Research and development costs for 2023, 2022, and 2021 were $ 11.1 million , $ 9.3 million and $ 9.3 million , respectively. Major Maintenance Activities. All major maintenance costs are accounted for using the direct expensing method. Stock-Based Compensation. Stock-based compensation in the form of service-based awards is provided to executive officers, certain employees and non-employee directors and is accounted for at fair value. We measure the cost of services received in exchange for an award of equity instruments based on the grant-date fair value of the award and the number of awards expected to ultimately vest. The grant-date fair value is determined based on the stock price on the date of grant, adjusted for expected dividends or dividend equivalents to be paid during the vesting period. We also grant performance-based awards to executive officers and other key employees. The methodology used to value these performance-based awards is based on the nature of the performance conditions within those awards. Awards that are subject to performance conditions pertaining to total shareholder return (market-based awards) are valued on the date of grant using a Monte Carlo valuation model. The key assumptions in applying this model are an expected volatility and a risk-free interest rate. Awards with certain other performance conditions (non-market-based awards) are valued based on our stock price at the date of grant. Our non‑market-based awards have performance conditions pertaining to our cost performance and adjusted EBITDA margin performance, which is measured by our Adjusted EBITDA as a percentage of Conversion Revenue, which is Net sales less the Hedged Cost of Alloyed Metal. As used in this discussion, “Hedged Cost of Alloyed Metal” is the cost of aluminum at the average MWTP plus the cost of alloying elements and any realized gains and/or losses on settled hedges related to the metal sold in the referenced period. Holders of performance-based awards receive a one-time payment at the time of issuance of vested shares based on the total dividends they would have received if the vested shares had been held of record from the date of grant through the date of issuance. See Note 7 for more information on our stock-based compensation. The cost of service-based awards, including time-vested restricted stock and performance shares, is recognized as an expense over the requisite service period of the award on a straight-line basis. Adjustments to expense related to forfeitures are recorded in the period in which they occur. We recognize stock-based compensation expense for market-based awards if the requisite service period is rendered, even if the market condition is never satisfied. For performance shares with performance conditions pertaining to our cost performance and Adjusted EBITDA margin performance, the related expense is updated quarterly by adjusting the estimated number of shares expected to vest based on the most probable outcome of the performance condition (see Note 7 ). Adoption of New Accounting Pronouncements There have been no new accounting pronouncements adopted since the filing of the 2022 Form 10-K. Accounting Pronouncements Issued But Not Yet Adopted Disclosure Improvements. In October 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2023-06 (“ASU 2023-06”), Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative. The guidance amends GAAP to reflect updates and simplifications to certain disclosure requirements referred to the FASB by the SEC. The amendments in ASU 2023-06 will become effective on the date which the SEC’s removal of the related disclosure becomes effective. If by June 30, 2027, the SEC does not remove the related disclosure, the pending amendment will be removed from ASC 2023-06 and it will not be effective. We do not expect this ASU to have a material impact on our consolidated financial statements. Segment Reporting. In November 2023, the FASB issued ASU No. 2023-07 (“ASU 2023-07”), Improvements to Reportable Segment Disclosures. The guidance primarily will require enhanced disclosures about significant segment expenses. All disclosure requirements under ASU 2023-07 and existing segment disclosures in ASC 280, Segment Reporting are also required for public entities with a single reportable segment. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted, and are to be applied on a retrospective basis. We are evaluating the impact of the standard on our reporting disclosures. Income Taxes. In December 2023, the FASB issued ASU No. 2023-09 (“ASU 2023-09”), Improvements to Income Tax Disclosures. The guidance is intended to improve income tax disclosure requirements by requiring (i) consistent categories and greater disaggregation of information in the rate reconciliation and (ii) the disaggregation of income taxes paid by jurisdiction. The guidance makes several other changes to the income tax disclosure requirements. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and is required to be applied prospectively with the option of retrospective application. We are evaluating the impact of the standard on our income tax disclosures. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Balance Sheet Information | 2. Supplemental Balan ce Sheet Information As of December 31, 2023 2022 (In millions of dollars) Trade Receivables, Net Billed trade receivables $ 325.8 $ 297.7 Allowance for doubtful receivables ( 0.6 ) ( 0.5 ) Trade receivables, net $ 325.2 $ 297.2 Inventories Finished products $ 89.3 $ 98.0 Work-in-process 210.8 242.5 Raw materials 161.5 174.0 Operating supplies 15.6 10.9 Inventories $ 477.2 $ 525.4 Property, Plant and Equipment, Net Land and improvements $ 38.0 $ 28.4 Buildings and leasehold improvements 238.4 185.5 Machinery and equipment 1,265.3 1,232.7 Construction in progress 173.7 141.3 Property, plant and equipment, gross 1,715.4 1,587.9 Accumulated depreciation and amortization ( 663.7 ) ( 574.9 ) Land held for sale 0.4 0.2 Property, plant and equipment, net $ 1,052.1 $ 1,013.2 Other Assets Assets to be conveyed associated with Warrick acquisition $ 56.8 $ 56.8 Restricted cash – Note 16 18.3 13.9 Long-term replacement parts 16.7 15.5 Other 25.9 26.1 Other assets $ 117.7 $ 112.3 . Other Accrued Liabilities Uncleared cash disbursements $ 15.7 $ 13.6 Accrued income taxes and other taxes payable 9.5 8.9 Accrued annual contribution to Salaried VEBA – Note 5 1.1 — Accrued interest 9.9 9.9 Short-term environmental accrual – Note 10 2.8 1.1 Current operating lease liabilities – Note 3 8.0 9.1 Current finance lease liabilities – Note 3 2.1 2.1 Other – Note 8 15.2 23.7 Other accrued liabilities $ 64.3 $ 68.4 Long-Term Liabilities Workers' compensation accrual $ 29.9 $ 30.9 Long-term environmental accrual – Note 10 14.2 16.6 Other long-term liabilities 37.6 27.2 Long-term liabilities $ 81.7 $ 74.7 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | 3. Le ases The following table presents lease terms and discount rates: As of December 31, 2023 2022 Weighted-average remaining lease term (in years): Finance leases 38.8 29.0 Operating leases 8.9 7. 0 Weighted-average discount rate: Finance leases 5.31 % 3.51 % Operating leases 4.35 % 3.95 % The following table summarizes the classification of lease assets and lease liabilities on our Consolidated Balance Sheets (in millions of dollars): As of December 31, Description Classification 2023 2022 Operating lease assets Operating lease assets $ 32.6 $ 39.1 Finance lease assets Property, plant and equipment, net $ 14.3 $ 6.7 Current operating lease liabilities Other accrued liabilities $ 8.0 $ 9.1 Non-current operating lease liabilities Long-term portion of operating lease liabilities $ 29.2 $ 35.4 Total operating lease liabilities $ 37.2 $ 44.5 Current finance lease liabilities Other accrued liabilities $ 2.1 $ 2.1 Non-current finance lease liabilities Long-term liabilities $ 12.9 $ 5.0 Total finance lease liabilities $ 15.0 $ 7.1 The following table summarizes the components of lease cost in our Statements of Consolidated Income (Loss) (in millions of dollars): Year Ended December 31, 2023 2022 2021 Operating lease cost $ 11.6 $ 12.1 $ 11.0 Short-term lease cost 4.3 4.3 3.2 Finance lease cost: Amortization of leased assets 2.4 2.5 2.1 Interest on lease liabilities 0.7 0.3 0.3 Total lease cost $ 19.0 $ 19.2 $ 16.6 The following table presents the maturity of our lease liabilities as of December 31, 2023 (in millions of dollars): Finance Leases Operating Leases 2024 $ 2.9 $ 9.4 2025 2.2 6.8 2026 1.7 4.4 2027 0.8 3.7 2028 0.6 3.4 Thereafter 26.9 19.2 Total minimum lease payments $ 35.1 $ 46.9 Less: interest ( 20.1 ) ( 9.7 ) Present value $ 15.0 $ 37.2 |
Business Combinations, Goodwill
Business Combinations, Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Business Combinations Goodwill And Intangible Assets Disclosure [Abstract] | |
Business Combinations, Goodwill and Intangible Assets | 4. Business Combinations, Go odwill and Intangible Assets Business Combinations. On March 31, 2021, we acquired Warrick for a final aggregate purchase consideration, after giving effect to working capital adjustments and indebtedness related to postretirement benefits, of $ 609.2 million . Warrick is a leading producer of bare and coated aluminum coil used for can stock applications in the beverage and food packaging industry in North America. The transaction provided us with non-cyclical end market diversification and re-entry into the packaging end market. Goodwill. In conjunction with our acquisition of Warrick, we added $ 20.5 million of goodwill after allocating the consideration paid, net of cash received to all other identifiable assets. The goodwill reflected the value we expected from our re-entry into the Packaging end market and our assembled workforce. In conjunction with our annual testing and due to downward revisions in forecasted operating margins as a result of supply chain challenges, inflationary cost pressures and manufacturing inefficiencies, we determined that the carrying value of Warrick exceeded its fair value, and we recognized an impairment charge of $ 20.5 million for the year ended December 31, 2022 within Operating income in the Statements of Consolidated Income (Loss). We estimated the fair value of Warrick using a combination of an income approach and a market-based approach. The income approach incorporated the use of cash flow projections and a discount rate that is developed using market participant-based assumptions. The cash flow projections are based on our best estimates of the long-term forecasts of the business, market prices, projected cash flows, and the rate used in the discounting of those cash flows. As goodwill is deductible for tax purposes, the deferred tax effects were included in the impairment charge and income tax provision. The following table presents the changes in the carrying value of our goodwill (in millions of dollars): As of December 31, 2023 2022 Gross carrying value 1 : Beginning balance $ 57.7 $ 57.7 Warrick impairment — ( 20.5 ) Ending balance 57.7 37.2 Accumulated impairment loss 1 ( 38.9 ) ( 18.4 ) Net carrying value $ 18.8 $ 18.8 1. The gross carrying value and accumulated impairment loss excludes $ 25.2 million of goodwill recorded in conjunction with our acquisition of IMT. Intangible Assets. The following table presents the gross carrying amount and accumulated amortization by major intangible asset class (in millions of dollars, except amortization periods): Weighted- Gross Accumulated Intangible As of December 31, 2023 Customer relationships 19 $ 68.1 $ ( 26.1 ) $ 42.0 Trade name 10 2.4 ( 1.2 ) 1.2 Non-compete agreement 5 5.4 ( 5.4 ) — Favorable lease contracts 120 7.0 ( 0.2 ) 6.8 Total $ 82.9 $ ( 32.9 ) $ 50.0 As of December 31, 2022 Customer relationships 19 $ 68.1 $ ( 21.9 ) $ 46.2 Trade name 10 2.4 ( 1.0 ) 1.4 Non-compete agreement 5 5.4 ( 4.6 ) 0.8 Favorable lease contracts 120 7.0 ( 0.1 ) 6.9 Total $ 82.9 $ ( 27.6 ) $ 55.3 During the year ended December 31, 2022, we impaired the remaining book value of our favorable commodity contracts intangible asset as the supplier associated with the intangible asset ceased all deliveries of magnesium to us and provided no indication of when or if deliveries would resume over the remainder of the contract. The impairment charge of $ 3.1 million was included within Other operating charges, net , in our Statements of Consolidated Income (Loss). We identified no indicators of impairment associated with our intangible assets during the years ended December 31, 2023 and December 31, 2021. Amortization expense relating to definite-lived intangible assets was $ 5.3 million , $ 9.3 million and $ 9.0 million for 2023, 2022, and 2021 , respectively. The following table presents the expected amortization of intangible assets for each of the next five calendar years and thereafter as of December 31, 2023 (in millions of dollars): 2024 $ 4.5 2025 4.5 2026 4.5 2027 4.5 2028 4.4 Thereafter 27.6 Total $ 50.0 |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefits | 5. Employe e Benefits Defined Contribution Plans We sponsor defined contribution 401(k) savings plans for certain hourly and salaried employees. Employees may contribute a portion of their compensation to the plans, and we match a specified percentage of these contributions in equivalent form of the investments elected by the employee. In addition, we make fixed annual contributions for certain hourly and salaried employees in varying amounts depending on hire date. Deferred Compensation Plan We sponsor a non-qualified, unfunded, unsecured plan of deferred compensation for certain employees who would otherwise suffer a loss of benefits under our defined contribution plan as a result of the limitations imposed by the Internal Revenue Code of 1986. Despite the plan being an unfunded plan, we make an annual contribution to a rabbi trust to fulfill future funding obligations, as contemplated by the terms of the plan. The assets in the trust are held in various investment funds at certain registered investment companies (see discussion below in “Fair Value of Plan Assets”) and are at all times subject to the claims of our general creditors. No participant has a claim to any assets of the trust; however, participants are eligible to receive distributions from the trust subject to vesting and other eligibility requirements. Offsetting liabilities relating to the deferred compensation plan are included within Other accrued liabilities and Long-term liabilities. Assets in the trust are accounted for as equity investments with changes in fair value recorded within Other income (expense), net (see Note 13). Other Benefits We provide other benefits for certain members of senior management, including certain of our named executive officers, related to terminations of employment in specified circumstances, including in connection with a change in control, by us without cause and by the executive officer with good reason. Defined Benefit Plans Pension. We sponsor defined benefit pension plans for certain hourly bargaining unit employees and salaried employees. Pension benefits generally depend on length of service, job grade, and remuneration. Substantially all benefits are paid through pension trusts that are sufficiently funded to ensure that all plans can pay benefits to retirees as they become due. We use a December 31 measurement date for our pension plans. OPEB. We sponsor an OPEB plan covering certain eligible retirees. Generally, the medical plans are unfunded and pay a percentage of medical expenses, reduced by deductibles and other coverage. Life insurance benefits are generally provided by insurance contracts. We use a December 31 measurement date for our OPEB plan. Salaried VEBA Postretirement Obligation. Certain retirees who retired prior to 2004 and certain employees who were hired prior to February 2002 and have subsequently retired or will retire with the requisite age and service, along with their surviving spouses and eligible dependents, are eligible to participate in a Salaried VEBA. The accumulated postretirement benefit obligation (“APBO”) for the Salaried VEBA was computed based on the level of benefits being provided. Since the Salaried VEBA pays out a fixed annual amount to its participants, no future cost trend rate increase was assumed in computing the APBO for the Salaried VEBA. We have an ongoing obligation with no express termination date to make variable cash contributions up to a maximum of $ 2.9 million annually to the Salaried VEBA. The Salaried VEBA assets were invested in various managed funds based on information we received from the trustee of the Salaried VEBA. Our variable payment, if any, is treated as a funding/contribution policy and not counted as a Salaried VEBA asset at the accrual date for actuarial purposes. We determined that in the first quarter of 2024, we will pay approximately $ 1.1 million with respect to 2023. Such amount was recorded within Other accrued liabilities as of December 31, 2023 (see Note 2). There was no payment made with respect to 2022 during the first quarter of 2023. We account for the Salaried VEBA as a defined benefit plan in our financial statements using a December 31 measurement date. Key Assumptions. The following table presents the weighted average assumptions used to determine benefit obligations: Pension Plans 1 OPEB Salaried VEBA As of December 31, As of December 31, As of December 31, 2023 2022 2023 2022 2023 2022 Discount rate 4.95 % 5.16 % 4.92 % 5.14 % 4.89 % 5.10 % Rate of compensation increase 2.63 % 2.69 % — % — % — % — % 1. Assumptions for our pension plans are weighted based on the total benefit obligations of each. The following table presents the weighted average assumptions used to determine net periodic postretirement benefit cost: Pension Plans 1 OPEB Salaried VEBA Year Ended December 31, Year Ended December 31, Year Ended December 31, 2023 2022 2021 2023 2022 2021 2023 2022 2021 Discount rate 5.19 % 2.90 % 2.89 % 5.14 % 2.64 % 2.97 % 5.10 % 2.49 % 2.05 % Expected long-term return on plan assets 2 6.33 % 6.02 % 5.78 % — % — % — % 5.75 % 5.50 % 5.50 % Rate of compensation increase 2.63 % 2.69 % 2.74 % — % — % — % — % — % — % 1. Assumptions for our pension plans are weighted based on the total benefit obligations of each. 2. The expected long-term rate of return assumption for the Salaried VEBA is based on the targeted investment portfolios provided to us by the trustee of the Salaried VEBA. In measuring the expected cost of benefits covered by our OPEB plan, we estimate a healthcare cost trend rate representing the annual rates of change in the costs of the healthcare benefits currently provided by the OPEB plan. The 2023 actuarial valuation assumed a 6.9 % annual rate of increase in the per capita cost of covered healthcare claims with the rate decreasing until reaching 4.0 % in 2036. Benefit Obligations and Funded Status. The following table presents the benefit obligations and funded status of our pension plans, OPEB, and the Salaried VEBA and the corresponding amounts that are included in our Consolidated Balance Sheets (in millions of dollars): Pension Plans OPEB Salaried VEBA As of December 31, As of December 31, As of December 31, 2023 2022 2023 2022 2023 2022 Change in benefit obligation: Obligation at beginning of year $ 18.8 $ 20.3 $ 66.4 $ 83.5 $ 58.9 $ 79.8 Foreign currency translation adjustment 0.2 ( 0.5 ) — — — — Service cost 3.8 5.8 1.1 1.6 — 0.1 Interest cost 1.3 0.6 3.4 2.2 2.9 1.9 Prior service cost (credit) 1 6.6 — — — ( 8.8 ) — Actuarial loss (gain) 2 0.2 ( 7.1 ) ( 0.7 ) ( 20.4 ) 0.4 ( 16.3 ) Plan participants contributions 0.1 0.1 0.1 0.1 — — Benefits paid ( 0.5 ) ( 0.4 ) ( 1.5 ) ( 0.6 ) ( 6.5 ) ( 6.6 ) Obligation at end of year 3 30.5 18.8 68.8 66.4 46.9 58.9 Change in plan assets: Fair market value of plan assets at beginning of year 14.9 9.8 — — 42.4 59.2 Foreign currency translation adjustment 0.2 ( 0.5 ) — — — — Actual return on assets 1.4 ( 2.6 ) — — 6.1 ( 10.2 ) Plan participants contributions 0.1 0.1 0.1 0.1 — — Company contributions 4.4 8.5 1.4 0.5 1.1 — Benefits paid ( 0.5 ) ( 0.4 ) ( 1.5 ) ( 0.6 ) ( 6.5 ) ( 6.6 ) Fair market value of plan assets at end of year 20.5 14.9 — — 43.1 42.4 Net funded status 4 $ ( 10.0 ) $ ( 3.9 ) $ ( 68.8 ) $ ( 66.4 ) $ ( 3.8 ) $ ( 16.5 ) Cumulative gain (loss) recognized in Accumulated other comprehensive income: Accumulated net actuarial gain $ 1.3 $ 2.6 $ 17.4 $ 17.8 $ 5.2 $ 1.7 Prior service cost ( 6.1 ) — — — ( 16.0 ) ( 29.7 ) Total $ ( 4.8 ) $ 2.6 $ 17.4 $ 17.8 $ ( 10.8 ) $ ( 28.0 ) 1. The prior service cost relating to our pension plans in 2023 resulted from a new four-year collective bargaining agreement with the USW Local 104. In connection with the agreement, we amended the Kaiser Aluminum Warrick pension plan to increase certain pension benefits for covered plan participants, resulting in a $ 6.6 million pre-tax prior service cost, which we recorded in AOCI and amortize on a straight-line basis over approximately 10 years. The prior service credit relating to the Salaried VEBA in 2023 resulted from a decrease in the annual healthcare reimbursement benefit for plan participants. 2. The actuarial loss relating to our pension plans in 2023 was comprised of a $ 0.5 million loss due to a change in the discount rate and a $ 0.3 million gain due to changes in census information . The actuarial gain relating to our pension plans in 2022 was comprised of an $ 8.0 million gain due to a change in the discount rate and a $ 0.9 million loss due to changes in census information. The actuarial gain relating to the OPEB in 2023 was comprised of a $ 2.7 million gain due to a change in the projected depletion year, a $ 2.5 million gain due to changes in census information, a $ 3.1 million loss due to a change in the trend rate assumption, and a $ 1.4 million loss due to a change in the discount rate. The actuarial gain relating to the OPEB in 2022 was comprised of a $ 20.4 million gain due to a change in the discount rate, a $ 0.7 million gain due to changes in census information and a $ 0.7 million loss due t o a change in the trend rate assumption. The actuarial loss relating to the Salaried VEBA in 2023 was comprised of a $ 0.7 million loss due to a change in the discount rate and a $ 0.3 million gain due to changes in census information. The actuarial gain relating to the Salaried VEBA in 2022 was comprised of a $ 12.6 million gain due to a change in the discount rate, a $ 2.6 million gain due to changes in census information and a $ 1.1 million gain due t o a change in the trend rate assumption. 3. For the pension plans, the benefit obligation is the projected benefit obligation. For the Salaried VEBA and OPEB, the benefit obligation is the APBO. 4. At December 31, 2023, Net funded status relating to the pension plans consisted of $ 1.3 million within Other assets and $ 11.3 million within Pension and other postretirement benefits on our Consolidated Balance Sheets. At December 31, 2022 , Net funded status relating to the pension plans consisted of $ 1.0 million within Other assets and $ 4.9 million within Pension and other postretirement benefits on our Consolidated Balance Sheets. Of the Net funded status relating to the OPEB at December 31, 2023, $ 3.3 million was included within Accrued salaries, wages and related expenses and $ 65.5 million was i ncluded within Pension and other postretirement benefits on our Consolidated Balance Sheets. Of the Net funded status relating to the OPEB at December 31, 2022, $ 2.0 million was included within Accrued salaries, wages and related expenses and $ 64.4 million was included within Pension and other postretirement benefits on our Consolidated Balance Sheets. Net funded status relating to the Salaried VEBA at December 31, 2023 and December 31, 2022 was included within Net liabilities of Salaried VEBA on our Consolidated Balance Sheets. The accumulated benefit obligation for the pension plans was $ 29.6 million and $ 18.0 million at December 31, 2023 and December 31, 2022, respectively. We expect to contribute $ 4.2 million to the pension plans in 2024. The following table presents the net benefits expected to be paid (in millions of dollars): Year Ended December 31, 2024 2025 2026 2027 2028 2029-2033 Pension benefit payments $ 0.8 $ 1.0 $ 1.2 $ 1.5 $ 1.7 $ 11.3 Salaried VEBA benefit payments 1 5.4 5.2 5.0 4.8 4.5 18.1 OPEB payments 3.3 3.9 4.6 5.2 5.8 35.0 Total $ 9.5 $ 10.1 $ 10.8 $ 11.5 $ 12.0 $ 64.4 1. Such amounts are based on benefit amounts and certain key assumptions obtained from the Salaried VEBA trustees and will be paid out of the Salaried VEBA plan assets. We have an ongoing obligation to make variable cash contributions to the Salaried VEBA, up to a maximum of $ 2.9 million annually based on our cash flow. Plan Assets. The following table presents the asset class allocation per our pension plan investment policy and the weighted average asset allocation: Asset class Policy range As of December 31, 2023 Equities 54 % - 60 % 59 % Fixed income 35 % - 40 % 35 % Other investments 5 % - 6 % 6 % Fair Value of Plan Assets. The plan assets of our pension plans and the Salaried VEBA are measured annually on December 31 and reflected in our Consolidated Balance Sheets at fair value. In determining the fair value of the plan assets at an annual period end, we utilize primarily the results of valuations supplied by the investment advisors responsible for managing the assets of each plan, which we independently review for reasonableness. With respect to the Salaried VEBA, the investment advisors providing the valuations are engaged by the Salaried VEBA trustees. Certain plan assets are valued based upon unadjusted quoted market prices in active markets that are accessible at the measurement date for identical, unrestricted assets (e.g., liquid securities listed on an exchange). Such assets are classified within Level 1 of the fair value hierarchy. The following table presents the fair value of plan assets at December 31, 2023 and 2022, classified under the appropriate level of the fair value hierarchy (in millions of dollars): December 31, 2023 December 31, 2022 Plan Assets in the Fair Value Hierarchy: 4 Level 1 Salaried VEBA – Equity investment funds in registered investment companies 1 $ 25.5 $ 27.4 Salaried VEBA – Fixed income investment funds in registered investment companies 2 16.5 15.0 Pension plans – Equity investment funds in registered investment companies 1 7.1 4.1 Pension plans – Fixed income investment funds in registered investment companies 2 4.1 2.6 Pension plans – Diversified investment funds in registered investment companies 3 9.3 8.2 Deferred compensation program – Diversified investment funds in registered investment companies 3 11.1 9.8 Total plan assets in the fair value hierarchy $ 73.6 $ 67.1 1. Equity investment funds in registered investment companies. This category represents investments in equity funds that invest in portfolios comprised primarily of equity and equity-related securities of U.S. and non-U.S. issuers across all market capitalizations. 2. Fixed income investment funds in registered investment companies . This category represents investments in various fixed income funds with multiple registered investment companies. Such funds invest primarily in bonds, debentures, notes, securities with equity and fixed-income characteristics, cash equivalents, securities backed by mortgages and other assets, loans, pooled or collective investment vehicles made up of fixed‑income securities and other fixed-income obligations of banks, corporations, and governmental authorities. 3. Diversified investment funds in registered investment companies . The plan assets are invested in investment funds that hold a diversified portfolio of: (i) U.S. and international debt and equity securities; (ii) fixed income securities such as corporate bonds and government bonds; (iii) mortgage-related securities; and (iv) cash and cash equivalents. 4. All plan assets were measured using Level 1 inputs. The following table presents the total expense related to all benefit plans (in millions of dollars): Year Ended December 31, 2023 2022 2021 Defined contribution plans 1 $ 18.1 $ 17.1 $ 13.9 Deferred compensation plan 2 1.2 ( 0.6 ) 0.7 Multiemployer pension plans 1,3 5.6 5.2 5.0 Net periodic postretirement benefit cost relating to defined benefit plans 2,3,4 13.4 13.1 9.4 Total $ 38.3 $ 34.8 $ 29.0 1. Substantially all of these charges related to employee benefits are in COGS with the remaining balance in SG&A and R&D. 2. Deferred compensation plan expense and the current service cost component of Net periodic postretirement benefit cost relating to Salaried VEBA are included within our Statements of Consolidated Income (Loss) in SG&A and R&D for all periods presented. All other components of Net periodic postretirement benefit cost relating to Salaried VEBA are included within Other income (expense), net, in our Statements of Consolidated Income (Loss). 3. See Note 6 for more information on our multiemployer defined benefit pension plans. 4. The current service cost component of Net periodic postretirement benefit cost relating to both the pension plans and the OPEB plan are included within our Statements of Consolidated Income (Loss) in COGS for all periods presented. All other components of Net periodic postretirement benefit cost relating to both the pension plans and the OPEB plan are included within Other income (expense), net, in our Statements of Consolidated Income (Loss). Components of Net Periodic Postretirement Benefit Cost. Our results of operations included the following impacts associated with our pension plans, OPEB plan, and the Salaried VEBA: (i) a charge for service rendered by employees; (ii) a charge for accretion of interest; (iii) a benefit for the return on plan assets; (iv) amortization of prior service costs associated with plan amendments; and (v) amortization of net actuarial differences. The following table presents the components of Net periodic postretirement benefit cost relating to our defined benefit plans (in millions of dollars): Pension Plans OPEB Salaried VEBA Year Ended December 31, Year Ended December 31, Year Ended December 31, 2023 2022 2021 2023 2022 2021 2023 2022 2021 Service cost $ 3.8 $ 5.8 $ 4.1 $ 1.1 $ 1.6 $ 1.1 $ — $ 0.1 $ 0.1 Interest cost 1.3 0.6 0.5 3.4 2.2 1.7 2.9 1.9 1.5 Expected return on plan assets ( 1.1 ) ( 0.9 ) ( 0.4 ) — — — ( 2.2 ) ( 3.1 ) ( 3.1 ) Amortization of prior service cost 1 0.4 — — — — — 4.9 4.9 3.5 Amortization of net actuarial loss (gain) — — 0.1 ( 1.1 ) — — — — 0.3 Total net periodic postretirement benefit cost $ 4.4 $ 5.5 $ 4.3 $ 3.4 $ 3.8 $ 2.8 $ 5.6 $ 3.8 $ 2.3 1. We amortize prior service cost on a straight-line basis over the average remaining years of service of the active plan participants. |
Multiemployer Pension Plans
Multiemployer Pension Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Multiemployer Pension Plans | 6. Multiemploye r Pension Plans Overview. We contribute to multiemployer defined benefit pension plans under the terms of collective bargaining agreements that cover our union-represented employees at certain facilities. At December 31, 2023, approximately 37 % of our total employees were union-represented employees at facilities participating in these multiemployer pension plans. We currently estimate that contributions will range from $ 5.0 million to $ 6.0 million in 2024. The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects: • Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. • If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. • If we choose to stop participating in any of our multiemployer plans, we may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. The following table presents information about multiemployer pension plans in which we participate: Pension FIP/RP Status Contributions of Employer Protection Act Pending/ the Company Surcharge Expiration Date Identification Zone Status 1 Implemented Year Ended December 31, Imposed of Collective- Pension Fund Number 2023 2022 in 2023² 2023 2022 2021 in 2023 Bargaining Agreements (in millions of dollars) USW 3 23-6648508 Green Green No $ 4.2 $ 3.8 $ 3.6 No Sep 2025 - Nov 2026 Other Funds 4 1.4 1.4 1.4 $ 5.6 $ 5.2 $ 5.0 1. The zone status is based on information that we received from the plan and is certified by the plan’s actuary. Among other factors, plans in the green zone are at least 80 % funded. 2. The “FIP/RP Status Pending/Implemented” column indicates if a Financial Improvement Plan (“FIP”) or a Rehabilitation Plan (“RP”) is either pending or has been implemented for the plan under the Pension Protection Act. 3. We are party to three collective bargaining agreements with the USW that require contributions to the Steelworkers Pension Trust. As of December 31, 2023, USW collective bargaining agreements covering employees at our Newark and Trentwood facilities cove red 87 % of our USW-represented employees and expire in September 2025. Our monthly contributions per hour worked by each bargaining unit employee at our Newark and Trentwood facilities were (in whole dollars) $ 1.75 in 2023. The union contracts covering employees at our Richmond, Virginia facility and Florence, Alabama facility cover 10 % and 3 % of our USW-represented employees, respectively, and expire in November 2026 and March 2026, respectively. Our monthly contributions per hour worked by each bargaining unit employee at our Richmond, Virginia facility and Florence, Alabama facility were (in whole dollars) $ 1.50 and $ 1.35 , respectively, in 2023. 4. Other Funds consists of plans that are not individually significant. We were not listed in any of the plans’ Forms 5500 as providing more than 5 % of the total contributions for any of the plan years disclosed. At the date the Company’s financial statements were issued, Forms 5500 were not available for the plan year ending in 2023 . Further, there were no significant changes to the number of employees covered by our multiemployer plans that would affect the period-to-period comparability of the contributions for the years presented. |
Employee Incentive Plans
Employee Incentive Plans | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Employee Incentive Plans | 7. Employee In centive Plans Short-Term Incentive Plans (“STI Plans”) We have annual short-term incentive compensation plans for senior management and certain other employees payable at our election in cash, shares of common stock, or a combination of cash and shares of common stock. Amounts earned under STI Plans are based on our Adjusted EBITDA, modified for certain safety, quality, delivery, cost, and individual performance factors. The Adjusted EBITDA targets are determined based on the return on adjusted net assets. Most of our production facilities have similar programs for both hourly and salaried employees. In addition, we have discretionary bonus programs that allow for management to incentivize employees based on performance. As of December 31, 2023, we had a liability of $ 11.4 million recorded within Accrued salaries, wages and related expenses for estimated probable future payments relating to the 12-month performance period of our 2023 STI Plans. Long-Term Incentive Programs (“LTI Programs”) General . Executive officers and other key employees of the Company, as well as non-employee directors of the Company, are eligible to participate in the Kaiser Aluminum Corporation 2021 Equity and Incentive Compensation Plan (“2021 Plan”). The 2021 Plan was approved by stockholders on June 3, 2021 and replaced and succeeded, in its entirety, the Kaiser Aluminum Corporation Amended and Restated 2016 Equity and Performance Incentive Plan, except with regard to awards previously granted thereunder that continued to be outstanding. At December 31, 2023, 506,031 shares were available for awards under the 2021 Plan. Non-Vested Common Shares and Restricted Stock Units. We grant non-vested common shares (“RSAs”) to our non-employee directors and restricted stock units (“RSUs”) to our executive officers and other key employees. The RSUs have rights similar to the rights of RSAs, and each RSU that becomes vested entitles the recipient to receive one common share, for which we issue new shares of our common stock upon vesting under the 2021 Plan, or a cash amount equaling the value of one common share. The service period is generally one year for RSAs granted to non-employee directors and three years for RSUs granted to executive officers and other key employees. The following table summarizes activity relating to RSAs and RSUs for the year ended December 31, 2023: Shares Weighted- Outstanding at December 31, 2022 323,179 $ 87.59 Granted 171,710 71.81 Vested ( 80,452 ) 90.82 Forfeited ( 15,050 ) 80.92 Outstanding at December 31, 2023 399,387 $ 80.41 Performance Shares. We grant performance shares to executive officers and other key employees that vest upon the achievement of specified market or internal performance goals. Performance goals can include: (i) our achieving a total shareholder return (“TSR”) compared to the TSR of a specified group of peer companies over a three-year performance period (“TSR-Based Performance Shares”); (ii) achieving targeted improvements to our total controllable cost performance over a three-year performance period; and/or (iii) achieving targeted improvements to our Adjusted EBITDA margin performance, measured by our Adjusted EBITDA as a percentage of Conversion Revenue, over a three-year performance period. Each performance share that becomes vested and earned entitles the recipient to receive one common share or a cash amount equaling the value of one common share. The number of performance shares that may be earned and result in the issuance of cash or common shares ranges between 0 % to 200 % of the target number of underlying performance shares. The following table presents the weighted average inputs and assumptions used in the Monte Carlo simulations to calculate the fair value at the grant date of our TSR-Based Performance Shares: Year Ended December 31, 2023 2022 2021 Grant date fair value $ 104.87 $ 122.22 $ 151.98 Grant date stock price $ 84.33 $ 95.13 $ 114.71 Expected volatility of Kaiser Aluminum 1 49.72 % 49.37 % 45.71 % Expected volatility of peer companies 1 45.14 % 51.08 % 50.69 % Risk-free interest rate 4.59 % 1.59 % 0.29 % Dividend yield 3.65 % 3.24 % 2.51 % 1. Weighted average expected volatility based on 2.8 ye ars of daily closing share prices from the valuation date to the end of the performance period. The following table summarizes activity relating to performance shares for the year ended December 31, 2023: Shares Weighted- Outstanding at December 31, 2022 367,552 $ 114.25 Granted 1 98,708 96.65 Forfeited 1 ( 3,932 ) 119.15 Canceled 1 ( 133,712 ) 99.79 Outstanding at December 31, 2023 328,616 $ 114.79 1. The number of shares granted and forfeited are presented at their maximum payout; and the number of shares canceled includes the number of shares that did not vest due to performance results falling below those required for maximum payout. Non-Cash Compensation Expense. Non-cash compensation expense is primarily included in SG&A and R&D. The following table presents non-cash compensation expense by type of award under LTI Programs (in millions of dollars): Year Ended December 31, 2023 2022 2021 RSAs and RSUs $ 10.7 $ 8.8 $ 8.1 Performance shares 4.7 4.9 4.5 Total non-cash compensation expense $ 15.4 $ 13.7 $ 12.6 Recognized tax benefits relating to the non-cash compensation expense presented in the table above were $ 3.6 million , $ 3.2 million and $ 3.0 million for 2023, 2022, and 2021, respectively. The aggregate fair value of awards that vested was $ 6.2 million , $ 9.1 million and $ 9.7 million for 2023, 2022, and 2021, respectively, which represents the market value of our common stock on the date that the awards vested. Unrecognized Gross Compensation Cost Data. The following table presents unrecognized gross compensation costs and the expected period over which the remaining gross compensation costs will be recognized by type of award as of December 31, 2023: Unrecognized Gross Compensation Costs Expected Period RSAs and RSUs $ 14.0 2.3 Performance shares $ 6.0 1.8 The following table presents the weighted-average grant-date fair value per share for shares granted by type of award: Year Ended December 31, 2023 2022 2021 RSAs and RSUs $ 71.81 $ 84.16 $ 107.24 Performance shares $ 96.65 $ 111.37 $ 137.06 Participants may elect to have us withhold common shares to satisfy minimum statutory tax withholding obligations arising in connection with the vesting of RSAs, RSUs, and performance shares. We cancel any such shares withheld on the applicable vesting dates or earlier dates when service requirements are satisfied, which correspond to the times at which income to the participant is recognized. When we withhold these common shares, we are required to remit to the appropriate taxing authorities the fair value of the shares withheld as of the vesting date. The withholding of common shares by us could be deemed a purchase of the common shares. See Statements of Consolidated Stockholders’ Equity for details on cancellation of shares to cover tax withholdings upon common shares issued. |
Derivatives, Hedging Programs a
Derivatives, Hedging Programs and Other Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives, Hedging Programs and Other Financial Instruments | 8. Derivatives, Hedging Programs and Other Financial Instruments Overview. In conducting our business, we enter into derivative transactions, including forward contracts and options, to limit our exposure to: (i) metal price risk related to our sale of fabricated aluminum products and the purchase of metal, including primary, rolling ingot and scrap, or recycled, aluminum, our main raw material, and certain alloys used as raw material for our fabrication operations; (ii) energy price risk relating to fluctuating prices of natural gas and electricity used in our production processes; and (iii) foreign currency requirements with respect to cash commitments for equipment purchases and/or other agreements denominated in foreign currency. We do not use derivative financial instruments for trading or other speculative purposes. Hedging transactions are executed centrally on behalf of all of our operations to minimize transaction costs, monitor consolidated net exposures, and allow for increased responsiveness to changes in market factors. Our derivative activities are overseen by a committee (“Hedging Committee”), which is composed of our Chief Executive Officer, Chief Financial Officer, Chief Accounting Officer, Treasurer, Executive Vice President of Manufacturing and other officers and employees selected by the Chief Executive Officer. The Hedging Committee meets regularly to review commodity price exposure, derivative positions, and strategy. Management reviews the scope of the Hedging Committee’s activities with our Board of Directors. We are exposed to counterparty credit risk on all of our derivative instruments, which we manage by monitoring the credit quality of our counterparties and allocating our hedging positions among multiple counterparties to limit exposure to any single entity. Our counterparties are major investment grade financial institutions or trading companies, and our hedging transactions are governed by negotiated International Swaps and Derivatives Association Master Agreements, which generally require collateral to be posted by our counterparties above specified credit thresholds which may adjust up or down, based on increases or decreases in counterparty credit ratings. As a result, we believe the risk of loss is remote and contained. The aggregate fair value of our derivative instruments that were in a net liability position was $ 1.0 million and $ 3.3 million at December 31, 2023 and December 31, 2022, respectively, and we had no collateral posted as of those dates. In addition, our firm-price customer sales commitments create incremental customer credit risk related to metal price movements. Under certain circumstances, we mitigate this risk by periodically requiring cash collateral to be posted by our customers, which we classify as deferred revenue and include as a component of Other accrued liabilities. We had no material cash collateral posted by our customers at both December 31, 2023 and December 31, 2022. For more information about concentration risks concerning customers and suppliers, see Note 17. Cash Flow Hedges We designate as cash flow hedges forward swap contracts for aluminum and energy. Additionally, in the fourth quarter of 2023, we adopted this treatment for our Alloying Metals. We also designate as cash flow hedges foreign currency forward contracts for equipment and services for which payments are due in foreign currency. Unrealized gains and losses associated with our cash flow hedges are deferred in Other comprehensive income, net of tax, and reclassified to COGS when such hedges settle or when it is probable that the original forecasted transactions will not occur by the end of the originally specified time period. See Note 11 for the total amount of gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments that was reported in AOCI, as well as the related reclassifications into earnings and tax effects. Cumulative gains and losses related to cash flow hedges are reclassified out of AOCI and recorded within COGS when the associated hedged commodity purchases impact earnings. Aluminum Hedges . Our pricing of fabricated aluminum products is generally intended to lock in our Conversion Revenue (representing our value added from the fabrication process) and to pass through aluminum price fluctuations to our customers. For some of our higher margin products sold on a spot basis, the pass through of aluminum price movements can sometimes lag by as much as several months, with a favorable impact to us when aluminum prices decline and an adverse impact to us when aluminum prices increase. Additionally, in certain instances, we enter into firm-price arrangements with our customers for stipulated volumes to be delivered in the future. Because we generally purchase primary and secondary aluminum on a floating price basis, the lag in passing through aluminum price movements to customers on some of our higher margin products sold on a spot basis and the volume that we have committed to sell to our customers under a firm-price arrangement create aluminum price risk for us. We use third-party hedging instruments to limit exposure to aluminum price risk related to the aluminum pass through lag on some of our products and firm-price customer sales contracts. Alloying Metals Hedges . We are exposed to risk of fluctuating prices for alloying metals used as raw materials in our fabrication operations. We, from time to time, in the ordinary course of business, enter into hedging transactions and/or physical delivery commitments with third parties to mitigate our risk from fluctuations in certain alloying metals prices that are not passed through pursuant to the terms of our customer contracts. Energy Hedges . We are exposed to risk of fluctuating prices for natural gas and electricity. We, from time to time, in the ordinary course of business, enter into hedging transactions and/or physical delivery commitments with third parties to mitigate our risk from fluctuations in natural gas and electricity prices that are not passed through pursuant to the terms of our customer contracts. Foreign Currency Hedges. We are exposed to foreign currency exchange risk related to certain equipment and service agreements with vendors for which payments are due in foreign currency. We, from time to time, in the ordinary course of business, use foreign currency forward contracts in order to mitigate the exposure to currency exchange rate fluctuations related to these purchases. Non-Designated Hedges of Operational Risks From time to time, we enter into commodity and foreign currency forward contracts that are not designated as hedging instruments to mitigate certain short‑term impacts, as identified. The gain or loss on these commodity and foreign currency derivatives is recognized within COGS and Other income (expense), net, respectively. There were no material non-designated hedges at both December 31, 2023 and December 31, 2022. Notional Amount of Derivative Contracts The following table summarizes our derivative positions at December 31, 2023: Aluminum Maturity Period Notional Amount of Contracts (mmlbs) Fixed price purchase contracts for LME January 2024 through December 2025 69.8 Fixed price sale contracts for LME January 2024 through April 2024 6.3 Fixed price purchase contracts for MWTP January 2024 through December 2025 54.1 Fixed price sale contracts for MWTP January 2024 through May 2024 26.6 Alloying Metals Maturity Period Notional Amount of Contracts (mmlbs) Fixed price purchase contracts January 2024 through December 2025 8.4 Natural Gas Maturity Period Notional Amount of Contracts (mmbtu) Fixed price purchase contracts January 2024 through December 2026 3,390,000 Electricity Maturity Period Notional Amount of Contracts (Mwh) Fixed price purchase contracts January 2024 through December 2024 52,704 Euros Maturity Period Notional Amount of Contracts (EUR) Fixed price forward purchase contracts January 2024 through January 2026 16,745,648 British Pounds Maturity Period Notional Amount of Contracts (GBP) Fixed price forward purchase contracts May 2024 through July 2024 216,799 Loss (Gain) on Derivative Contracts The following table summarizes the amount of loss (gain) on derivative contracts recorded within our Statements of Consolidated Income (Loss) in Cost of products sold (in millions of dollars): Year Ended December 31, 2023 2022 2021 Total of income and expense line items presented in our Statements of Consolidated Income (Loss) in which the effects of hedges are recorded: Cash flow hedges $ 2,754.9 $ 3,180.2 $ 2,348.1 Loss (gain) recognized in our Statements of Consolidated Income (Loss) related to cash flow hedges: Aluminum $ 12.8 $ 7.4 $ ( 35.2 ) Alloying Metals — — 0.1 Natural gas 0.1 ( 6.6 ) ( 2.1 ) Electricity — ( 11.3 ) ( 4.7 ) Total loss (gain) recognized in our Statements of Consolidated Income (Loss) related to cash flow hedges $ 12.9 $ ( 10.5 ) $ ( 41.9 ) Loss (gain) recognized in our Statements of Consolidated Income (Loss) related to non-designated hedges: Alloying Metals – Realized loss (gain) $ 0.1 $ ( 0.5 ) $ ( 5.0 ) Alloying Metals – Unrealized loss — 1.4 1.2 Total loss (gain) recognized in our Statements of Consolidated Income (Loss) related to non-designated hedges $ 0.1 $ 0.9 $ ( 3.8 ) Fair Values of Derivative Contracts The fair values of our derivative contracts are based upon trades in liquid markets. Valuation model inputs can be verified, and valuation techniques do not involve significant judgment. The fair values of such financial instruments are classified within Level 2 of the fair value hierarchy. All of our derivative contracts with counterparties are subject to enforceable master netting arrangements. We reflect the fair value of our derivative contracts on a gross basis on our Consolidated Balance Sheets. The following table presents the fair value of our derivative financial instruments (in millions of dollars): As of December 31, 2023 As of December 31, 2022 Assets Liabilities Net Amount Assets Liabilities Net Amount Aluminum – Fixed price purchase contracts for LME $ 3.4 $ ( 0.6 ) $ 2.8 $ 0.7 $ ( 3.9 ) $ ( 3.2 ) Fixed price sale contracts for LME — ( 0.2 ) ( 0.2 ) — — — Fixed price purchase contracts for MWTP 0.4 ( 0.3 ) 0.1 0.5 ( 1.4 ) ( 0.9 ) Fixed price sale contracts for MWTP 0.1 ( 0.2 ) ( 0.1 ) — — — Alloying Metals – Fixed price purchase contracts 0.7 ( 0.1 ) 0.6 — — — Natural gas – Fixed price purchase contracts 0.3 ( 0.9 ) ( 0.6 ) 4.7 — 4.7 Electricity – Fixed price purchase contracts 0.5 ( 0.6 ) ( 0.1 ) — — — Foreign Currency – Fixed price forward contracts 0.5 — 0.5 — — — Total $ 5.9 $ ( 2.9 ) $ 3.0 $ 5.9 $ ( 5.3 ) $ 0.6 The following table presents the total amounts of derivative assets and liabilities on our Consolidated Balance Sheets (in millions of dollars): As of December 31, 2023 2022 Derivative assets: Prepaid expenses and other current assets $ 4.8 $ 3.6 Other assets 1.1 2.3 Total derivative assets $ 5.9 $ 5.9 Derivative liabilities: Other accrued liabilities $ ( 2.4 ) $ ( 5.3 ) Long-term liabilities ( 0.5 ) — Total derivative liabilities $ ( 2.9 ) $ ( 5.3 ) Fair Value of Other Financial Instruments All Other Financial Assets and Liabilities. We believe that the fair values of our accounts receivable, contract assets, accounts payable, and accrued liabilities approximate their respective carrying values due to their short maturities and nominal credit risk. |
Debt and Credit Facility
Debt and Credit Facility | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facility | 9. Debt and C redit Facility Senior Notes At December 31, 2023 and 2022, we had outstanding fixed-rate unsecured Senior Notes with varying maturity dates. The stated interest rates and aggregate principal amounts of such Senior Notes were, respectively: (i) 4.50 % and $ 550.0 million (“4.50% Senior Notes”) and (ii) 4.625 % and $ 500.0 million (“4.625% Senior Notes”). Our Senior Notes do not require us to make any mandatory redemptions or sinking fund payments. The following table summarizes key details of our outstanding Senior Notes: Outstanding (in millions of dollars) Issuance Date Maturity Effective Interest Rate As of December 31, 2023 As of December 31, 2022 4.50 % Senior Notes May 2021 June 2031 4.7 % $ 550.0 $ 550.0 4.625 % Senior Notes November 2019 March 2028 4.8 % 500.0 500.0 Total debt 1,050.0 1,050.0 Unamortized issuance costs ( 10.2 ) ( 11.9 ) Total carrying amount $ 1,039.8 $ 1,038.1 The following table presents the fair value of our outstanding Senior Notes, which are Level 1 liabilities (in millions of dollars): As of December 31, 2023 2022 4.50% Senior Notes $ 474.1 $ 438.7 4.625% Senior Notes $ 462.4 $ 440.4 Revolving Credit Facility In October 2019, we entered into a Revolving Credit Facility. Joining us as borrowers under the Revolving Credit Facility are four of our wholly owned domestic operating subsidiaries: (i) Kaiser Aluminum Investments Company; (ii) Kaiser Aluminum Fabricated Products, LLC; (iii) Kaiser Aluminum Washington, LLC; and (iv) Kaiser Aluminum Warrick, LLC. In April 2022, we entered into Amendment No. 3 to our Revolving Credit Facility. As amended, the Revolving Credit Facility, among other things: (i) increased the commitment from $ 375.0 million to $ 575.0 million (of which up to a maximum of $ 50.0 million may be utilized for letters of credit); (ii) extended the maturity date from the earlier of (a) February 2024 (if certain conditions were met) and (b) October 2024 to April 2027 ; (iii) removed eligible equipment from the borrowing base and as collateral; and (iv) updated relevant benchmark provisions from LIBOR to Term SOFR. Our effective interest rate on outstanding borrowings under the amended Revolving Credit Facility is based on the rates of Base Rate Loans and SOFR Loans (as defined in the amended Revolving Credit Facility). For borrowings outstanding during the year ended December 31, 2023, the rate for Base Rate Loans was equal to the prevailing Prime Rate plus 0.25 %, while the rate for SOFR Loans, which are made for one or three month periods, was equal to the Term SOFR Reference Rate (as defined in the amended Revolving Credit Facility) plus 1.35 %. Outstanding borrowings under the Revolving Credit Facility are reported within Long-term debt, net, on our Consolidated Balance Sheets. We had no outstanding borrowings as of December 31, 2023 under our Revolving Credit Facility, after repaying borrowings of $ 215.1 million incurred during the year ended December 31, 2023. In addition, we had no borrowings under the Revolving Credit Facility during the year ended December 31, 2022. The following table summarizes availability and usage of our Revolving Credit Facility as determined by a borrowing base calculated as of December 31, 2023 (in millions of dollars): Revolving Credit Facility borrowing commitment $ 575.0 Borrowing base availability $ 543.5 Less: Outstanding borrowings under Revolving Credit Facility — Less: Outstanding letters of credit under Revolving Credit Facility ( 26.8 ) Remaining borrowing availability $ 516.7 Interest Expense and Future Maturities The following table presents interest expense relating to our Senior Notes and Revolving Credit Facility (in millions of dollars): Year Ended December 31, 2023 2022 2021 Senior Notes interest expense, including debt issuance cost amortization $ 49.6 $ 49.6 $ 49.0 Revolving Credit Facility interest expense, including commitment fees and finance cost amortization 3.0 2.0 1.4 Interest expense on finance lease liabilities 0.7 0.3 0.3 Interest expense capitalized as construction in progress ( 6.4 ) ( 3.6 ) ( 1.2 ) Total interest expense $ 46.9 $ 48.3 $ 49.5 The following table presents the future principal payments for our Senior Notes and Revolving Credit Facility as of December 31, 2023 (in millions of dollars): Year ending December 31, 2024 $ — 2025 — 2026 — 2027 — 2028 500.0 Thereafter 550.0 Total $ 1,050.0 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments a nd Contingencies Commitments. We have a variety of financial commitments, including purchase agreements, forward foreign exchange and forward sales contracts, indebtedness, and letters of credit (see Note 3, Note 8, and Note 9). CAROs. The inputs in estimating the fair value of CAROs include: (i) the timing of when any such CARO cash flows may be incurred; (ii) incremental costs associated with special handling or treatment of CARO materials; and (iii) the credit-adjusted risk-free rate applicable at the time additional CARO cash flows are estimated. The majority of these inputs are considered Level 3 inputs as they involve significant judgment from us. The following table summarizes activity relating to CARO liabilities (in millions of dollars): Year Ended December 31, 2023 2022 2021 Beginning balance $ 10.1 $ 7.2 $ 6.7 Liabilities added during the period — 2.3 — Liabilities settled during the period — ( 0.1 ) ( 0.1 ) Accretion expense 0.8 0.7 0.6 Ending balance $ 10.9 $ 10.1 $ 7.2 The estimated fair values of CARO liabilities were based upon the application of a weighted-average credit-adjusted risk-free rate of 8.26 % and 8.23 % at December 31, 2023 and December 31, 2022, respectively. CAROs are included in Other accrued liabilities or Long-term liabilities, as appropriate. Environmental Contingencies. We are subject to a number of environmental laws and regulations, potential fines or penalties assessed for alleged breaches of such laws and regulations, and potential claims based upon such laws and regulations. We are also subject to legacy environmental contingencies related to activities that occurred at operating facilities prior to July 6, 2006, which represent the majority of our environmental accruals. The status of these environmental contingencies are discussed below. We have established procedures for regularly evaluating environmental loss contingencies. Our environmental accruals represent our undiscounted estimate of costs reasonably expected to be incurred based on presently enacted laws and regulations, currently available facts, existing requirements, existing technology and our assessment of the likely remediation actions to be taken. We continue to pursue remediation activities, primarily to address the historical use of oils containing polychlorinated biphenyls (“PCBs”) at our Trentwood facility. Our remediation efforts are in collaboration with the Washington State Department of Ecology (“Ecology”), to which we submitted a feasibility study in 2012 of remediation alternatives and from which we received permission to begin certain remediation activities pursuant to a signed work order. We have completed a number of sections of the work plan and have received satisfactory completion approval from Ecology on those sections. In cooperation with Ecology, we constructed an experimental treatment facility to determine the treatability and evaluate the feasibility of removing PCBs from ground water under the Trentwood facility. In 2015, we began treatment operations involving a walnut shell filtration system, which we optimized for maximum PCB capture during 2020. Furthermore, based on advancements in technology, we signed an Amended Agreed Order with Ecology in 2020 to evaluate and implement new technologies for PCB removal from groundwater on a pilot basis. The primary technology we are evaluating is Ultraviolet Light Advanced Oxidation Process (the “UV Process”). As the long-term success of the UV Process cannot be reasonably determined at this time, it is possible we may need to make upward adjustments to our related accruals and cost estimates as the long-term results become available. Pursuant to a consent agreement with the Ohio Environmental Protection Agency (“OEPA”), we initiated an investigational study of our Newark facility related to historical on-site waste disposal. During the quarter ended December 31, 2018, we submitted our remedial investigation study to the OEPA for review and approval. The final remedial investigation report was approved by the OEPA during the quarter ended December 31, 2020. We have submitted the Alternate Arrays Document (“AAD”) to the OEPA for review during the quarter ended December 31, 2023. Once the AAD is reviewed and accepted by the OEPA, we plan to submit our feasibility study to the OEPA. The actual and final remediation cost estimates will not be fully determinable until the feasibility study has been submitted to the OEPA and the selected remediation design work plans are completed, which we expect to occur in 2024. The following table presents the changes in our environmental accrual. We classify the short-term and long-term liabilities within Other accrued liabilities and Long-term liabilities, respectively, on our Consolidated Balance Sheets (in millions of dollars): Year Ended December 31, 2023 2022 2021 Beginning balance $ 17.7 $ 16.8 $ 18.7 Additional accruals 1.2 3.2 0.1 Less: expenditures ( 1.9 ) ( 2.3 ) ( 2.0 ) Ending balance $ 17.0 $ 17.7 $ 16.8 At December 31, 2023, our environmental accrual of $ 17.0 million represented our estimate of the incremental remediation cost based on: (i) proposed alternatives in the final feasibility study related to the Trentwood facility; (ii) currently available facts with respect to our Newark facility; and (iii) facts related to certain other locations owned or formerly owned by us. In accordance with approved and proposed remediation action plans, we expect that the implementation and ongoing monitoring could occur over a period of 30 or more years. As additional facts are developed, feasibility studies are completed, remediation plans are modified, necessary regulatory approvals for the implementation of remediation are obtained, alternative technologies are developed, and/or other factors change, there may be revisions to management’s estimates and actual costs may exceed the current environmental accruals. We believe at this time that it is reasonably possible that undiscounted costs associated with these environmental matters may exceed current accruals by amounts that could be, in the aggregate, up to an estimated $ 11.6 million over the remediation period. It is reasonably possible that our recorded estimate will change in the next 12 months . Other Contingencies. We are party to various lawsuits, claims, investigations and administrative proceedings that arise in connection with past and current operations. We evaluate such matters on a case-by-case basis and our policy is to vigorously contest any such claims we believe are without merit. We accrue for a legal liability when it is both probable that a liability has been incurred and the amount of the loss is reasonably estimable. Quarterly, in addition to when changes in facts and circumstances require it, we review and adjust these accruals to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. While uncertainties are inherent in the final outcome of such matters and it is presently impossible to determine the actual cost that may ultimately be incurred, we believe that we have sufficiently accrued for such matters and that the ultimate resolution of pending matters will not have a material impact on our consolidated financial position, operating results or liquidity. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 11. Accumulated Other Co mprehensive Income (Loss) The following table presents the changes in the accumulated balances for each component of AOCI (in millions of dollars): Year Ended December 31, 2023 2022 2021 Defined Benefit Plans: Beginning balance $ 2.8 $ ( 21.4 ) $ ( 19.8 ) Actuarial gain arising during the period 4.3 27.0 8.0 Less: income tax expense ( 1.0 ) ( 6.5 ) ( 1.9 ) Net actuarial gain arising during the period 3.3 20.5 6.1 Prior service credit (cost) arising during the period 2.2 — ( 14.0 ) Less: income tax (expense) benefit ( 0.5 ) — 3.3 Net prior service credit (cost) arising during the period 1.7 — ( 10.7 ) Amortization of net actuarial (gain) loss 1 ( 1.1 ) — 0.4 Amortization of prior service cost 1 5.3 4.9 3.5 Less: income tax expense 2 ( 1.0 ) ( 1.2 ) ( 0.9 ) Net amortization reclassified from AOCI to Net income (loss) 3.2 3.7 3.0 Other comprehensive income (loss), net of tax 8.2 24.2 ( 1.6 ) Ending balance $ 11.0 $ 2.8 $ ( 21.4 ) Cash Flow Hedges: Beginning balance $ 0.4 $ 17.7 $ 1.1 Unrealized (loss) gain on cash flow hedges ( 10.7 ) ( 12.2 ) 63.6 Less: income tax benefit (expense) 2.5 2.9 ( 15.0 ) Net unrealized (loss) gain on cash flow hedges ( 8.2 ) ( 9.3 ) 48.6 Reclassification of unrealized loss (gain) upon settlement 12.9 ( 10.5 ) ( 41.9 ) Less: income tax (expense) benefit 2 ( 3.0 ) 2.5 9.9 Net loss (gain) reclassified from AOCI to Net income (loss) 9.9 ( 8.0 ) ( 32.0 ) Other comprehensive income (loss), net of tax 1.7 ( 17.3 ) 16.6 Ending balance 3 $ 2.1 $ 0.4 $ 17.7 Total AOCI ending balance $ 13.1 $ 3.2 $ ( 3.7 ) 1. Amounts amortized out of AOCI related to pension and other postretirement benefits were included within Net periodic postretirement benefit cost (see Note 5 ). 2. Income tax amounts reclassified out of AOCI were included as a component of Inc ome tax (provision) benefit. 3. As of December 31, 2023, we estimate a net mark-to-market gain before tax of $ 2.2 million in AOCI will be reclassified into Net income (loss) upon settlement within the next 12 months. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | 12. Res tructuring 2022 Restructuring Plan. During 2022, we relocated our corporate headquarters from Foothill Ranch, California (“Foothill Ranch”) to Franklin, Tennessee (“Franklin”). In conjunction with the relocation, we initiated a restructuring plan during the quarter ended December 31, 2022, which consisted primarily of employee retention benefits aimed at incentivizing Foothill Ranch employees to assist with the buildout of the new corporate function in Franklin (“2022 Restructuring Plan”). At December 31, 2023, the total amount expected to be incurred in connection with the 2022 Restructuring Plan is approximately $ 8.0 million . Through December 31, 2023, we incurred restructuring costs of $ 7.2 million , of which cash paid was $ 5.4 million, related to the 2022 Restructuring Plan, which consisted of employee-related costs and office rent within Restructuring costs in our Statements of Consolidated Income (Loss). Substantially all of the costs associated with the restructuring efforts initiated under the 2022 Plan were incurred and expensed as of December 31, 2023. The following table summarizes activity relating to the 2022 Restructuring Plan liabilities (in millions of dollars): BALANCE, December 31, 2021 $ — Restructuring costs 2.2 Costs paid or otherwise settled 1 ( 0.5 ) BALANCE, December 31, 2022 1.7 Restructuring costs 5.0 Costs paid or otherwise settled 1 ( 5.5 ) BALANCE, December 31, 2023 $ 1.2 1. Cash paid during the years ended December 31, 2023 and December 31, 2022 was $ 5.0 million and $ 0.4 million, respectively. 2020 Restructuring Plan. We initiated a restructuring plan during the quarter ended June 30, 2020, which consisted primarily of reduction in force measures (“2020 Restructuring Plan”) in order to align our projected operational requirements with reduced short and mid-term commercial aerospace demand as a result of the COVID pandemic. We incurred total restructuring costs of $ 6.7 million related to the 2020 Restructuring Plan, which consisted of severance, voluntary buyout packages, outplacement services, estimated medical costs and associated payroll costs within Restructuring costs in our Statements of Consolidated Income (Loss). We completed the 2020 Restructuring Plan as of December 31, 2021. The following table summarizes activity relating to the 2020 Restructuring Plan liabilities (in millions of dollars): BALANCE, December 31, 2020 $ 1.4 Restructuring costs — Costs paid or otherwise settled ( 0.6 ) Other adjustments 1 ( 0.8 ) BALANCE, December 31, 2021 $ — 1. In 2021, we revised our production forecasts, thereby reducing the estimated number of headcount reductions necessary under the 2020 Restructuring Plan as compared with our initial requirements. These reductions to accommodate the revised headcount requirements are included in Other adjustments with an offset to Restructuring costs in our Statements of Consolidated Income (Loss). |
Other Income (Expense), Net
Other Income (Expense), Net | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | 13. Other Income (E xpense), Net The following table presents the components of Other income (expense), net, (in millions of dollars): Year Ended December 31, 2023 2022 2021 Interest income $ 1.7 $ 1.3 $ 0.2 Net periodic postretirement benefit cost ( 8.4 ) ( 5.6 ) ( 4.1 ) Unrealized gain (loss) on equity securities 0.6 ( 1.2 ) ( 0.2 ) Loss on extinguishment of debt 1 — — ( 35.9 ) Gain on disposition of property, plant and equipment 13.8 6.0 0.5 Post-acquisition funding received from Alcoa Corporation 2 — 6.0 — All other, net ( 0.3 ) ( 0.1 ) 0.6 Other income (expense), net $ 7.4 $ 6.4 $ ( 38.9 ) 1. In May 2021, we redeemed in full our 6.50% Senior Notes at a redemption price of 108.83 % of the $ 350.0 million principal amount plus $ 1.3 million of accrued and unpaid interest for a total net cash outflow of $ 382.2 million. Upon redemption of the 6.50% Senior Notes, we recorded a loss on extinguishment of debt of $ 35.9 million, which included the premium payment of $ 30.9 million and a write-off of the remaining unamortized premium and debt issuance costs of $ 5.0 million. 2. Reimbursement received for repairs and maintenance expenditures on certain machinery and equipment that we had purchased from Alcoa in connection with our March 31, 2021 acquisition of Warrick . Supply Chain Financing . During the years ended December 31, 2023 and December 31, 2022, we sold trade accounts receivable totaling $ 1,240.6 million and $ 1,589.3 million , respectively, related to these supply chain financing arrangements, of which our customers’ financial institutions applied discount fees totaling $ 29.7 million and $ 23.3 million , respectively. To the extent discount fees related to the sale of trade accounts receivable under supply chain financing arrangements are not reimbursed by our customers, they are included in Other income (expense), net. As of December 31, 2023 , we had been and/or expected to be substantially reimbursed by our customers for these discount fees, in accordance with the underlying sales agreements. |
Income Tax Matters
Income Tax Matters | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Tax Matters | 14. Income Tax Matters The following table presents Income (loss) before income taxes by geographic area (in millions of dollars): Year Ended December 31, 2023 2022 2021 Domestic $ 48.0 $ ( 44.6 ) $ ( 30.2 ) Foreign 8.3 6.7 6.2 Income (loss) before income taxes $ 56.3 $ ( 37.9 ) $ ( 24.0 ) Tax (Provision) Benefit . Income taxes are classified as either domestic or foreign based on whether payment is made or due to the United States or a foreign country. Certain income classified as foreign is also subject to domestic income taxes. The following table presents the components of Income tax (provision) benefit (in millions of dollars): Federal Foreign State Total Year Ended December 31, 2023 Current $ — $ ( 2.2 ) $ 0.6 $ ( 1.6 ) Deferred ( 11.6 ) 0.1 1.0 ( 10.5 ) Benefit applied to decrease AOCI 2.5 0.1 0.4 3.0 Income tax (provision) benefit $ ( 9.1 ) $ ( 2.0 ) $ 2.0 $ ( 9.1 ) Year Ended December 31, 2022 Current $ — $ ( 1.1 ) $ ( 2.5 ) $ ( 3.6 ) Deferred 8.9 ( 0.8 ) 1.6 9.7 Benefit applied to decrease AOCI 1.7 0.2 0.3 2.2 Income tax benefit (provision) $ 10.6 $ ( 1.7 ) $ ( 0.6 ) $ 8.3 Year Ended December 31, 2021 Current $ — $ ( 2.4 ) $ ( 3.5 ) $ ( 5.9 ) Deferred 2.1 0.5 4.2 6.8 Benefit applied to decrease AOCI 3.7 0.3 0.6 4.6 Income tax benefit (provision) $ 5.8 $ ( 1.6 ) $ 1.3 $ 5.5 The following table presents a reconciliation between the (provision) benefit for income taxes and the amount computed by applying the federal statutory income tax rate to Income (loss) before income taxes (in millions of dollars): Year Ended December 31, 2023 2022 2021 Amount of federal income tax (provision) benefit based on the statutory rate $ ( 11.8 ) $ 8.0 $ 5.0 Decrease in federal valuation allowances — 1.1 0.2 Non-deductible compensation expense ( 1.6 ) ( 0.9 ) ( 0.5 ) Non-deductible benefit (expense) 0.2 ( 1.0 ) ( 0.2 ) State income tax benefit (provision), net of federal benefit 1 1.5 ( 0.5 ) 1.0 Research and development credit 3.2 2.2 0.6 Foreign income tax expense ( 0.3 ) ( 0.3 ) ( 0.3 ) Foreign undistributed earnings ( 0.3 ) ( 0.3 ) ( 0.3 ) Income tax (provision) benefit $ ( 9.1 ) $ 8.3 $ 5.5 1. The sta te income tax expense was $ 1.4 million in 2023 , reflecting a decrease of $ 1.9 million due to state net operating loss (“NOL”) carryforward expirations and tax rate true-ups in various states and a $ 1.0 million decrease in the valuation allowance relating to certain state net operating losses. The state income tax benefit was $ 1.1 million in 2022, reflecting an increase of $ 1.5 million due to state NOL carryforward expirations and tax rate true-ups in various states and a $ 0.1 million increase in the valuation allowance relating to certain state net operating losses. The state income tax benefit was $ 0.7 million in 2021, reflecting an increase of $ 1.3 million due to state NOL carryforward expirations and tax rate true-ups in various states, offset by a $ 1.6 million decrease in the valuation allowance relating to certain state net operating losses. Deferred Income Taxes. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for income tax purposes. The following table presents the components of our net deferred income tax assets and liabilities (in millions of dollars): As of December 31, 2023 2022 Deferred income tax assets: Loss and credit carryforwards $ 39.6 $ 47.7 Defined benefit plans 3.6 2.9 Other assets 36.8 36.3 Lease assets 8.7 10.6 Inventories 29.5 46.9 Excess interest carryforward 14.0 12.2 Research & development capitalization 16.9 8.7 Valuation allowances ( 2.7 ) ( 3.7 ) Total deferred income tax assets 146.4 161.6 Deferred income tax liabilities: Property, plant and equipment ( 142.6 ) ( 147.0 ) Lease liabilities ( 8.7 ) ( 9.3 ) Undistributed foreign earnings ( 3.0 ) ( 2.7 ) Total deferred income tax liabilities ( 154.3 ) ( 159.0 ) Net deferred income tax (liabilities) assets $ ( 7.9 ) $ 2.6 Tax Attributes. At December 31, 2023 , we had $ 101.1 million of NOL carryforwards available to reduce future cash payments for federal income taxes in the United States. H.R.1, commonly referred to as the Tax Cut and Jobs Act, allows NOLs generated prior to December 31, 2017 (including our NOL carryforwards) to be fully deducted against 100% of taxable income until fully utilized or expired. NOL carryforwards generated after December 31, 2017 do not expire and can be carried forward indefinitely. For losses arising in taxable years beginning after December 31, 2017, the net operating loss deduction for taxable years beginning after December 31, 2020, is limited to 80% of the excess (if any) of taxable income. Our State NOL carryforwards expire periodically through 2041 . In addition, we had $ 17.4 million of federal research and development (“R&D”) credit carryforwards to offset regular federal income tax requirements. Our R&D credit carryforwards expire periodically through 2043 . We also had $ 1.5 million of state credit carryforwards that will expire periodically through 2047 . In assessing the realizability of deferred tax assets, management considers whether it is “more likely than not” that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers taxable income in carryback years, the scheduled reversal of deferred tax liabilities, tax planning strategies, and projected future taxable income in making this assessment. Due to uncertainties surrounding the realization of some of our deferred tax assets, primarily including state NOL carryforwards sustained during the prior years and expiring tax benefits, we have a valuation allowance against certain deferred tax assets. When recognized, the tax benefits relating to any reversal of this valuation allowance will be recorded as a reduction of income tax expense. There was a decrease in the valuation allowance of $ 1.0 million in 2023 , a decrease in the valuation allowance of $ 0.9 million in 2022 and a decrease in the valuation allowance of $ 1.8 million in 2021. The decrease in the valuation allowance for 2023 was primarily due to the expiration of state NOL carryforwards and the related reversal of their valuation allowances. The decrease in the valuation allowance for 2022 was primarily due to the liquidation of an inactive passive insurance company, and its related separate return limitation year net operating losses. The decrease in the valuation allowance for 2021 was primarily due to the expiration of state NOL carryforwards and the related reversal of their valuation allowances. Other . We and our subsidiaries file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. Our tax returns for certain past years are still subject to examination by taxing authorities, and the use of NOL carryforwards in future periods could trigger a review of attributes and other tax matters in years that are not otherwise subject to examination. On October 8, 2021, the Organization for Economic Co-operation and Development ("OECD") announced the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting which agreed to a two-pillar solution to address tax challenges arising from digitalization of the economy. On December 20, 2021, the OECD released Pillar Two Model Rules defining the global minimum tax, which calls for the taxation of large corporations at a minimum rate of 15 %. The OECD continues to release additional guidance on the two-pillar framework with widespread implementation anticipated by 2024. Although we are continuing to evaluate the potential impact on future periods of the Pillar Two Framework, pending legislative adoption by individual countries, we do not anticipate any material financial impact. The legislation is anticipated to be effective for our fiscal year beginning January 1, 2024. We have gross unrecognized benefits relating to uncertain tax positions. The following table presents a reconciliation of changes in the gross unrecognized tax benefits (in millions of dollars): Year Ended December 31, 2023 2022 2021 Gross unrecognized tax benefits at beginning of period $ 5.0 $ 4.1 $ 3.8 Gross increases for tax positions of current year 1.3 0.9 0.3 Gross increases for tax positions of prior years 0.2 0.1 0.4 Gross decreases for tax positions of prior years — ( 0.1 ) ( 0.3 ) Settlements — — ( 0.1 ) Gross unrecognized tax benefits at end of period $ 6.5 $ 5.0 $ 4.1 If and when the $ 6.5 million of gross unrecognized tax benefits at December 31, 2023 are recognized, $ 6.5 million will be reflected in our income tax provision and thus affect the effective tax rate in future periods. In addition, we recognize interest and penalties related to unrecognized tax benefits in the income tax provision. We had $ 0.2 million and $ 0.1 million accrued for interest and penalties at December 31, 2023 and December 31, 2022 , respectively, and we recognized interest and penalties of $ 0.2 million in our tax provision in 2021 . Of the amounts accrued, no ne were considered current and, as such, were included in Long-term liabilities on our Consolidated Balance Sheets as of December 31, 2023 and December 31, 2022. We do not expect our gross unrecognized tax benefits to significantly change within the next 12 months. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | 15. Net Inco me (Loss) Per Share Basic net income (loss) per share is computed by dividing distributed and undistributed net income (loss) available to common shares by the weighted-average number of common shares outstanding during the applicable period. The basic weighted-average number of common shares outstanding during the period excludes non-vested share-based payment awards. Basic and diluted net income (loss) per share was calculated under the two-class method for 2023, and the treasury method in 2022 and 2021, which was more dilutive than the two‑class method. The following table sets forth the computation of basic and diluted net income (loss) per share (in millions of dollars, except share and per share amounts): Year Ended December 31, 2023 2022 2021 Numerator: Net income (loss) 47.2 ( 29.6 ) ( 18.5 ) Less: earnings attributable to participating securities 1 ( 0.1 ) — — Net income (loss) available to common shareholders 47.1 ( 29.6 ) ( 18.5 ) Denominator – Weighted-average common shares Basic 15,991 15,906 15,836 Add: dilutive effect of non-vested common shares, 2 140 — — Diluted 16,131 15,906 15,836 Net income (loss) per common share, Basic $ 2.95 $ ( 1.86 ) $ ( 1.17 ) Net income (loss) per common share, Diluted $ 2.92 $ ( 1.86 ) $ ( 1.17 ) 1. Represents distributed and undistributed earnings allocated to non-vested RSAs that contain non-forfeitable rights to dividends. 2. Quantities in the following discussion are denoted in wh ole shares. A total of 35,000 non-vested RSUs and performance shares for the year ended December 31, 2023 were excluded from the weighted-average diluted shares computation as their inclusion would have been anti-dilutive. For the years ended December 31, 2022 and December 31, 2021, approximately 139,000 and 213,000 potentially dilutive shares, respectively, were excluded from the computation of net loss per share as their effect would have been anti‑dilutive. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | 16. Supplemental Ca sh Flow Information Year Ended December 31, 2023 2022 2021 (in millions of dollars) Interest paid $ 43.8 $ 45.7 $ 48.7 Non-cash investing and financing activities (included in Accounts payable): Unpaid purchases of property and equipment $ 19.3 $ 28.9 $ 14.0 Supplemental lease disclosures: Operating lease liabilities arising from obtaining operating lease assets $ 3.2 $ 3.1 $ 27.8 Cash paid for amounts included in the measurement of $ 9.3 $ 9.8 $ 8.2 Finance lease liabilities arising from obtaining finance lease assets $ 10.0 $ 1.0 $ 2.2 As of December 31, 2023 2022 2021 (in millions of dollars) Components of cash, cash equivalents and restricted cash: Cash and cash equivalents $ 82.4 $ 57.4 $ 303.2 Restricted cash included in Other assets 18.3 13.9 13.8 Total cash, cash equivalents and restricted cash presented on our Statements of $ 100.7 $ 71.3 $ 317.0 |
Business, Product and Geographi
Business, Product and Geographical Area Information and Concentration of Risk | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Business, Product and Geographical Area Information and Concentration of Risk | 17. Business, Product and Geographical Ar ea Information and Concentration of Risk Our primary line of business is the production of semi-fabricated specialty aluminum mill products, such as plate and sheet, bare and coated coils and extruded and drawn products, primarily used in our Aero/HS products, Packaging, GE products, Automotive Extrusions and Other products end markets. We operate 13 focused production facilities in the United States and one in Canada. Our chief operating decision maker reviews and evaluates our business as a single operating segment. At December 31, 2023, approximately 65 % of our employees were covered by collective bargaining agreements and 4 % of those employees were covered by collective bargaining agreements with expiration dates occurring within one year from December 31, 2023. The following table presents Net sales by end market applications and by timing of control transfer (in millions of dollars): Year Ended December 31, 2023 2022 2021 Net sales: Aero/HS products $ 899.3 $ 676.1 $ 533.7 Packaging 1,315.2 1,585.3 1,119.3 GE products 596.5 883.8 706.1 Automotive Extrusions 254.9 254.8 225.0 Other products 21.1 27.9 37.9 Total net sales $ 3,087.0 $ 3,427.9 $ 2,622.0 Timing of revenue recognition: Products transferred at a point in time $ 2,394.8 $ 2,782.9 $ 2,067.9 Products transferred over time 692.2 645.0 554.1 Total net sales $ 3,087.0 $ 3,427.9 $ 2,622.0 The following table presents geographic information for net sales based on country of origin, income taxes paid, and long-lived assets (in millions of dollars): Year Ended December 31, 2023 2022 2021 Net sales to unaffiliated customers: Domestic $ 2,986.0 $ 3,328.2 $ 2,545.0 Foreign 1 101.0 99.7 77.0 Total net sales $ 3,087.0 $ 3,427.9 $ 2,622.0 Income taxes paid: Domestic $ 0.3 $ 3.1 $ 4.5 Foreign 0.2 3.2 1.1 Total income taxes paid $ 0.5 $ 6.3 $ 5.6 As of December 31, 2023 2022 2021 Long-lived assets: 2 Domestic $ 1,025.3 $ 984.8 $ 925.3 Foreign 1 26.8 28.4 29.9 Total long-lived assets $ 1,052.1 $ 1,013.2 $ 955.2 1. Foreign reflects our London, Ontario production facility. 2. Long-lived assets represent Property, plant and equipment, net. The aggregate foreign currency transaction gain included in determining Net income was immaterial for 2023 . The aggregate foreign currency transaction loss included in determining Net loss was $ 0.5 million for 2022 and immaterial for 2021. Concentrations. For the years ended December 31, 2023, December 31, 2022 and December 31, 2021 , one customer represented 18 %, 19 % and 16 %, respectively, of Net sales, and a second customer represented 16 %, 14 % and 15 %, respectively, of Net sales. One customer accounted for 20 %, a second customer accounted for 13 % and a third customer accounted for 12 % of the accounts receivable balance at December 31, 2023 . One customer accounted for 17 %, a second customer accounted for 14 % and a third customer accounted for 13 % of the accounts receivable balance at December 31, 2022. The following table presents information about export sales and primary aluminum supply from our major suppliers: Year Ended December 31, 2023 2022 2021 Percentage of Net sales: Export sales 10 % 10 % 10 % Percentage of total annual primary aluminum supply (lbs): Supply from our top five major suppliers 83 % 81 % 78 % Supply from our largest supplier 37 % 48 % 47 % Supply from our second and third largest suppliers combined 28 % 20 % 20 % |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 18. Subseq uent Events Dividend Declaration . On January 11, 2024 , we announced that our Board of Directors declared a quarterly cash dividend of $ 0.77 per common share. As such, we paid approximately $ 12.6 million (including dividend equivalents) on February 15, 2024 to stockholders of record and the holders of certain restricted stock units at the close of business on January 25, 2024 . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Organization and Nature of Operations | Organization and Nature of Operations. Kaiser Aluminum Corporation specializes in the production of semi-fabricated specialty aluminum mill products, such as aluminum plate and sheet, bare and coated coil and extruded and drawn products, for the following end market applications: (i) Aero/HS products; (ii) Packaging; (iii) GE products; (iv) Automotive Extrusions; and (v) Other products. Our business is organized into one operating segment. See Note 17 for additional information regarding our business, product and geographical area information and concentration of risk. |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation. Our consolidated financial statements include the accounts of our wholly owned subsidiaries and are prepared in accordance with GAAP and the rules and regulations of the SEC. Intercompany balances and transactions are eliminated. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements. The preparation of financial statements in accordance with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of our consolidated financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of our consolidated financial position and results of operations. |
Supply Chain Financing | Supply Chain Financing . Upon our acquisition of Warrick (see Note 4), we became party to several supply chain financing arrangements, in which we may sell certain of our customers’ trade accounts receivable to such customers’ financial institutions without recourse. We sell our undivided interests in certain of these receivables at our discretion when we determine that the cost of these arrangements is less than the cost of servicing our receivables with existing debt. Under the terms of the agreements, we retain no rights or interest, have no obligations with respect to the sold receivables and do not service the receivables after the sale. As such, we account for these transactions as a sale (see Note 13 ). |
Fair Value Measurement | Fair Value Measurements. We apply the fair value hierarchy established by GAAP for the recognition and measurement of certain financial assets and liabilities. An asset or liability’s fair value classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and consider counterparty risk in our assessment of fair value. We also review the underlying inputs that are significant to the fair value measurement of financial instruments to determine if a transfer among hierarchy levels is appropriate. Financial assets and liabilities that we measure at fair value each period include our derivative instruments and equity investments related to our deferred compensation plan (see Note 5 and Note 8). Additionally, we measure at fair value once each year at December 31 the plan assets of our defined benefit pension and postretirement plans including the Salaried VEBA (see Note 5 ). In determining the fair value of the plan assets at an annual period end, we utilize primarily the results of valuations supplied by the investment advisors responsible for managing the assets of each plan, which we independently review for reasonableness. We record our remaining financial assets and liabilities at carrying value. For a majority of our remaining non-financial assets and liabilities, which include inventories, debt issuance costs and property, plant and equipment, we are not required to measure their fair value on a recurring basis. However, if certain triggering events occur, an evaluation of the affected non-financial asset or liability will be required, which could result in a reduction to the carrying amount of such asset or liability. See “Property, Plant and Equipment, Net” below for a discussion of impairment charges on long-lived physical assets. See Note 9 for the fair value of our Long-term debt, net. |
Goodwill and Intangible Assets | Goodwill is tested for impairment during the fourth quarter on an annual basis, as well as on an interim basis, as warranted, at the time of relevant events and changes in circumstances. Our evaluation of goodwill for impairment involves the comparison of the fair value of each reporting unit to its carrying value. We estimate the fair value of a reporting unit using a combination of an income approach and a market-based approach. Intangible asset fair values and useful lives are determined using the income approach valuation methodology. The income approach incorporates the use of cash flow projections and a discount rate that are developed using market participant-based assumptions. The cash flow projections are based on, among other factors, the expected future period of benefit of the asset, the various characteristics of the asset, long‑term forecasts of the business, market prices, projected cash flows and the rate used in discounting those cash flows. Intangible assets with definite lives are initially recognized at fair value and subsequently amortized over the estimated useful lives to reflect the pattern in which the economic benefits of the intangible assets are consumed. In the event the pattern cannot be reliably determined, we use a straight-line amortization method. Whenever events or changes in circumstances indicate that the carrying amount of the intangible assets may not be recoverable, the intangible assets are reviewed for impairment. See Note 4 for discussion on business combinations, goodwill and intangible assets. |
Government Grants | Government Grants. From time to time, we receive grants from certain governmental agencies such as states and municipalities. We recognize government grants when we have reasonable assurance that we will comply with any conditions attached to the grant and the grant will be received. Government grants related to property, plant and equipment are presented as a reduction to the related asset’s carrying amount. Grants related to compensation for expenses already incurred or for immediate financial support with no future related costs are recognized as income in the period in which they are receivable. The following table presents the total government assistance recognized during the year ended December 31, 2023 (in millions of dollars): Grantor Grant Amount Duration Classification Indiana Economic Development Corporation IN EDGE Tax Credit $ 1.6 2021 - 2030 Cost of products sold, excluding depreciation and amortization Total $ 1.6 To be eligible to receive and keep the full amount of the IN EDGE Tax Credit, we must achieve: (i) minimum cumulative expenditures towards capital expenditures and (ii) a minimum number of full-time employees. |
Cash and Cash Equivalents | Cash and Cash Equivalents. We consider only those short-term, highly liquid investments which, when purchased, have maturities of 90 days or less to be cash equivalents. Our cash equivalents consist primarily of funds in money market funds, which are classified within Level 1 of the fair value hierarchy. |
Restricted Cash | Restricted Cash. We are required to keep on deposit certain amounts that are pledged or held as collateral relating to workers’ compensation and other agreements. We account for such deposits as restricted cash (see Note 16 ). From time to time, such restricted funds could be returned to us or we could be required to pledge additional cash. |
Trade Receivables and Allowance for Credit Losses | Trade Receivables and Allowance for Credit Losses. Trade receivables primarily consist of amounts billed to customers for products sold. Accounts receivable are generally due within 30 to 90 days . For the majority of our receivables, we establish an allowance for credit losses based upon collection experience and other factors including, but not limited to, customer credit ratings, bankruptcy filings, published or estimated credit default rates, age of receivables, expected loss rates and collateral exposures. On certain other receivables where we are aware of a specific customer’s inability or reluctance to pay, an allowance for credit losses is established against amounts due, to reduce the net receivable balance to the amount we reasonably expect to collect. However, if circumstances change, our estimate of the recoverability of accounts receivable could be different. Circumstances that could affect our estimates include, but are not limited to, customer credit issues and general economic conditions. Accounts are written off once deemed to be uncollectible. Any subsequent cash collections relating to accounts that have been previously written off are typically recorded as a reduction to total bad debt expense in the period of payment. Write-offs for 2023, 2022, and 2021 were immaterial to our consolidated financial statements. |
Inventories | Inventories. Inventories are stated at the lower of cost or market value. Finished products, work-in-process, and raw material inventories are stated on the last-in, first-out (“LIFO”) basis. At December 31, 2023 and December 31, 2022 , the cost of our inventory on a first-in, first-out (“FIFO”) basis, which approximates the current replacement cost, exceeded its stated LIFO value by $ 56.0 million and $ 84.6 million , respectively. Other inventories are stated on the FIFO basis and consist of operating supplies, which are materials and supplies to be consumed during the production process. Inventory costs consist of material, labor and manufacturing overhead, including depreciation. Abnormal costs, such as idle facility expenses, freight, handling costs and spoilage, are accounted for as current period charges. See Note 2 for the components of inventories. Replacement Parts. Replacement parts consist of preventative maintenance and capital spare parts, which are stated on the FIFO basis. Replacement parts are recorded within Prepaid expenses and other current assets or Other assets depending on whether or not the expected utilization of the replacement parts is to occur within the next 12 months. |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net. Property, plant and equipment, net, is recorded at cost and includes construction in progress (see Note 2). Property, plant and equipment acquired in the Warrick acquisition was recorded at fair value as of the date of acquisition (see Note 4). Interest related to the construction of qualifying assets is capitalized as part of the construction costs (see Note 9). Depreciation is computed using the straight-line method at rates based on the estimated useful lives of the various classes of assets. Depreciable finance lease assets and leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful lives of the assets or the lease term. The estimated useful lives are as follows: Range Land improvements 1 - 25 Buildings and leasehold improvements 2 - 45 Machinery and equipment 1 - 22 Depreciable finance lease assets 2 - 120 Depreciation expense is included in Depreciation and amortization within our Statements of Consolidated Income (Loss). Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset or group of assets may not be recoverable. We regularly assess whether events and circumstances with the potential to trigger impairment have occurred and rely on a number of factors, including operating results, business plans, economic projections, and anticipated future cash flow, to make such assessments. We use an estimate of the future undiscounted cash flows of the related asset or asset group over the estimated remaining life of such asset or asset group in measuring whether the asset or asset group is recoverable. There were no impairment charges in 2023, 2022, and 2021. Asset impairment charges are included in Other operating charges, net, in our Statements of Consolidated Income (Loss). We classify assets as held for sale only when an asset is being actively marketed and expected to sell within 12 months. Assets held for sale are initially measured at the lesser of the assets’ carrying amount and the fair value less costs to sell. |
Cloud Computing Implementation Costs | Cloud Computing Implementation Costs. We defer implementation costs associated with a software hosting arrangement that meets the definition of a service contract. We recognize these deferred costs within Prepaid expenses and other current assets and within Other assets on our Consolidated Balance Sheets. When the project is placed into service, we amortize the deferred implementation costs over the term of the hosting arrangement inclusive of expected renewal periods to the same line item in the Statements of Consolidated Income (Loss) as the underlying arrangement. The following table summarizes the total deferred implementation costs and accumulated amortization related to the hosted cloud computing software for our enterprise resource planning system refresh project (in millions of dollars): As of December 31, Average 2023 2022 2021 Useful Life Deferred implementation costs 1 $ 11.7 $ 10.4 $ 7.8 9 years Accumulated amortization $ ( 2.2 ) $ ( 1.1 ) $ ( 0.1 ) n/a 1. We began amortizing deferred implementation costs in December 2021 and will amortize such costs within Selling, general, administrative, research and development over a nine-year period . We recorded amortization expense of $ 1.1 million , $ 1.0 million , and $ 0.1 million in 2023, 2022, and 2021 , respectively. |
Leases | Leases. We determine whether an agreement is a lease at inception. We have operating and finance leases for equipment and real estate that primarily have fixed lease payments. For purposes of calculating lease liabilities, options to extend or terminate a lease are included within the lease term when it is reasonably certain that we will exercise such options. Short-term leases with an initial term of 12 months or less are not recorded on our Consolidated Balance Sheets. As most of our leases do not provide an implicit rate, we use information available at the lease commencement date in determining an incremental borrowing rate when calculating our right-of-use lease assets and liabilities. In determining the inputs to the incremental borrowing rate calculation, we make judgments about the value of the leased asset, our credit rating, and the lease term, including the probability of our exercising options to extend or terminate the underlying lease. Additionally, we make judgments around contractual asset substitution rights in determining whether a contract contains a lease. We have lease agreements with lease and non-lease components, which are generally accounted for separately. These non-lease components include items such as common area maintenance, taxes, and insurance for our real estate leases, as well as maintenance charges related to our equipment leases. We have, however, applied the practical expedient within ASC No. 2016-02, Leases (Topic 842): Amendments to the Financial Accounting Standards Board Accounting Standards Codification (“ASC 2016-02”), to not separate lease and non-lease components to our embedded supply system equipment leases and have therefore accounted for both lease and non‑lease components in determining the lease assets and liabilities. Many of our equipment leases contain clauses that require us to return the equipment with certain functionality intact. We account for these costs as residual value guarantees when the guarantee becomes probable of being owed. Our lease agreements do not contain any material restrictive covenants. |
Derivative Financial Instruments | Derivative Financial Instruments. Consistent with guidelines established by management and approved by our Board of Directors, we use derivative financial instruments to mitigate our exposure to changes in the market price of aluminum, certain alloying metals, energy and, to a lesser extent, foreign currency exchange rates. We do not use derivative financial instruments for trading or other speculative purposes. Hedging transactions are executed centrally on behalf of all of our operations to minimize transaction costs, monitor consolidated net exposures, and allow for increased responsiveness to changes in market factors. We reflect the fair value of all of our derivative instruments on our Consolidated Balance Sheets. The fair value of hedges settling within one year is included in Prepaid expenses and other current assets or Other accrued liabilities. The fair value of hedges settling beyond one year is included in Other assets or Long-term liabilities. Cash flows related to all of our derivative instruments are reported in our Statements of Consolidated Cash Flows within the same category as the items being hedged. See Note 8 for additional information on our derivative financial instruments. |
Self Insurance of Workers' Compensation and Employee Healthcare Liabilities | Self-Insurance of Workers’ Compensation and Employee Healthcare Liabilities . We self-insure the majority of the costs of workers’ compensation benefits and employee healthcare benefits and rely on insurance coverage to protect us from large losses on individual claims. Workers’ compensation liabilities are based on a combination of estimates for: (i) incurred-but-not-reported claims and (ii) the ultimate expense of incurred claims. Such estimates are based on judgment, using our historical claims data and information and analysis provided by actuarial and claims advisors, our insurance carriers and other professionals. Accrued liabilities for employee healthcare benefits, which are estimates of unpaid incurred medical and prescription drug costs as provided by our healthcare administrators, were $ 7.7 million at December 31, 2023 and December 31, 2022 . |
Deferred Issuance Costs | Debt Issuance Costs. Costs incurred in connection with debt financing are deferred and amortized over the estimated term of the related borrowing. Such amortization is included in Interest expense in our Statements of Consolidated Income (Loss). Unamortized issuance costs are presented within Long-term debt, net on our Consolidated Balance Sheets (see Note 9 ). |
Conditional Asset Retirement Obligations ("CAROs") | Conditional Asset Retirement Obligations ( “ CAROs ” ). We have CAROs at several of our manufacturing facilities. Our CAROs can be separated into two primary categories: (i) legal obligations related to the removal and disposal of asbestos and (ii) CAROs related to future lease terminations. The majority of our CAROs relate to the first category and consist of incremental costs that would be associated with the removal and disposal of asbestos (all of which is believed to be fully contained and encapsulated within walls, floors, roof, piping, or equipment insulation) of certain of our older facilities if such facilities were to undergo major renovation or be demolished. We estimate incremental costs for special handling, removal and disposal costs of materials that may or will give rise to CAROs and then discount the expected costs back to the current year using a credit-adjusted, risk-free rate. When it is unclear when or if CAROs will be triggered, we use probability weighting for possible timing scenarios to determine the probability-weighted liability amounts that should be recognized in our consolidated financial statements (see Note 10 ). |
Environmental Contingencies | Environmental Contingencies. With respect to environmental loss contingencies, we record a loss contingency whenever a contingency is probable and reasonably estimable (see Note 10). Accruals for estimated losses from environmental remediation obligations are generally recognized no later than the completion of the remedial feasibility study. Such accruals are adjusted as information develops or circumstances change. Costs of future expenditures for environmental remediation obligations are not discounted to their present value. Accruals for expected environmental costs are included in Other accrued liabilities or Long-term liabilities, as appropriate (see Note 2 ). Environmental expense relating to continuing operations is included in COGS in our Statements of Consolidated Income (Loss). Environmental expense relating to non-operating locations is included in Selling, general, administrative, research and development (“SG&A and R&D”) in our Statements of Consolidated Income (Loss). |
Revenue Recognition | Revenue Recognition. We recognize revenue as we fulfill our performance obligations and transfer control of products to our customers. For products that have an alternative use and/or for which we do not have an enforceable right to payment (including a reasonable profit) during the production process, we recognize revenue at a point in time. For products that have no alternative use and for which we have an enforceable right to payment (including a reasonable profit) throughout the production process, we recognize revenue over time. In general, revenue recognized over time primarily relates to our Aero/HS products and our Automotive Extrusions with the remainder of our products recognized at a point in time. In limited circumstances, we have concluded that we are an agent in certain Packaging end market arrangements. For these transactions, revenue has been recognized on a net basis. For the majority of our business, contracts with customers begin when we acknowledge a purchase order for a specific customer order of product to be delivered in the near term. These purchase orders are short term in nature, although they may reference a longer term “blanket purchase order” or a “terms and conditions” agreement, both of which may span multiple years. For revenue recognized at a point in time, transfer of control usually occurs upon shipment or upon customer receipt of the product, depending on shipping terms. For contracts recognized over time, control transfer occurs incrementally during our production process as progress is made on fulfilling the performance obligation. We use the input method of determining our progress, capturing direct costs beginning at the point that billet or cast ingot is introduced into production at either the extrusion phase or the rolling phase, respectively. We believe the input method more accurately reflects the transfer of control as it represents the best information available of work completed to date for which we have an enforceable right to payment. For products in production, we recognize revenue using estimates of the cost incurred to date plus a reasonable margin. As the duration of our contracts for accounting purposes is typically less than one year, we do not present quantitative information about the aggregate transaction price allocated to unsatisfied performance obligations at the end of the reporting period. We adjust the amount of revenue recognized on all products, regardless of timing of revenue recognition, for variable price consideration, which could include metal market price adjustments, volume rebates and sales discounts. We estimate rebate and discount values based on forecasted order data and historical payment trends for specific customers, adjusted as necessary at each reporting period. Accounts receivable is recorded when our right to consideration becomes unconditional. Payment terms for a majority of our customers is 30 to 90 days, with the longer terms generally to accommodate customers with deliveries to overseas locations. As such, we do not adjust the promised amount of consideration for the effects of a significant financing component as we do not expect the period between the transfer of control of products to our customers and receipt of payment will be greater than one year. Contract assets primarily relate to our enforceable right to consideration for work completed but not billed at the reporting date on contracts for products recognized over time. Contract assets also include amounts related to our contractual right to consideration for finished goods recognized over time that were in transit as of period end. Incremental Costs of Obtaining a Contract . We expense the costs of obtaining a contract as incurred as the amortization period of the asset that we otherwise would have recognized is one year or less. |
Shipping and Handling Activities | Shipping and Handling Activities. We account for shipping and handling activities that occur after the customer has obtained control of a product as fulfillment activities (i.e., an expense) rather than as a promised service (i.e., a revenue element). |
Advertising Costs | Advertising Costs. Advertising costs, which are included in SG&A and R&D, are expensed as incurred. Advertising costs for 2023 and 2021 were $ 0.1 million . We had no advertising costs in 2022. |
Research and Development Costs | Research and Development Costs. Research and development costs, which are included in SG&A and R&D, are expensed as incurred. Research and development costs for 2023, 2022, and 2021 were $ 11.1 million , $ 9.3 million and $ 9.3 million , respectively. |
Major Maintenance Activities | Major Maintenance Activities. All major maintenance costs are accounted for using the direct expensing method. |
Stock-Based Compensation | Stock-Based Compensation. Stock-based compensation in the form of service-based awards is provided to executive officers, certain employees and non-employee directors and is accounted for at fair value. We measure the cost of services received in exchange for an award of equity instruments based on the grant-date fair value of the award and the number of awards expected to ultimately vest. The grant-date fair value is determined based on the stock price on the date of grant, adjusted for expected dividends or dividend equivalents to be paid during the vesting period. We also grant performance-based awards to executive officers and other key employees. The methodology used to value these performance-based awards is based on the nature of the performance conditions within those awards. Awards that are subject to performance conditions pertaining to total shareholder return (market-based awards) are valued on the date of grant using a Monte Carlo valuation model. The key assumptions in applying this model are an expected volatility and a risk-free interest rate. Awards with certain other performance conditions (non-market-based awards) are valued based on our stock price at the date of grant. Our non‑market-based awards have performance conditions pertaining to our cost performance and adjusted EBITDA margin performance, which is measured by our Adjusted EBITDA as a percentage of Conversion Revenue, which is Net sales less the Hedged Cost of Alloyed Metal. As used in this discussion, “Hedged Cost of Alloyed Metal” is the cost of aluminum at the average MWTP plus the cost of alloying elements and any realized gains and/or losses on settled hedges related to the metal sold in the referenced period. Holders of performance-based awards receive a one-time payment at the time of issuance of vested shares based on the total dividends they would have received if the vested shares had been held of record from the date of grant through the date of issuance. See Note 7 for more information on our stock-based compensation. The cost of service-based awards, including time-vested restricted stock and performance shares, is recognized as an expense over the requisite service period of the award on a straight-line basis. Adjustments to expense related to forfeitures are recorded in the period in which they occur. We recognize stock-based compensation expense for market-based awards if the requisite service period is rendered, even if the market condition is never satisfied. For performance shares with performance conditions pertaining to our cost performance and Adjusted EBITDA margin performance, the related expense is updated quarterly by adjusting the estimated number of shares expected to vest based on the most probable outcome of the performance condition (see Note 7 ). |
New Accounting Pronouncements | Adoption of New Accounting Pronouncements There have been no new accounting pronouncements adopted since the filing of the 2022 Form 10-K. |
Accounting Pronouncements Issued But Not Yet Adopted | Accounting Pronouncements Issued But Not Yet Adopted Disclosure Improvements. In October 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2023-06 (“ASU 2023-06”), Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative. The guidance amends GAAP to reflect updates and simplifications to certain disclosure requirements referred to the FASB by the SEC. The amendments in ASU 2023-06 will become effective on the date which the SEC’s removal of the related disclosure becomes effective. If by June 30, 2027, the SEC does not remove the related disclosure, the pending amendment will be removed from ASC 2023-06 and it will not be effective. We do not expect this ASU to have a material impact on our consolidated financial statements. Segment Reporting. In November 2023, the FASB issued ASU No. 2023-07 (“ASU 2023-07”), Improvements to Reportable Segment Disclosures. The guidance primarily will require enhanced disclosures about significant segment expenses. All disclosure requirements under ASU 2023-07 and existing segment disclosures in ASC 280, Segment Reporting are also required for public entities with a single reportable segment. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted, and are to be applied on a retrospective basis. We are evaluating the impact of the standard on our reporting disclosures. Income Taxes. In December 2023, the FASB issued ASU No. 2023-09 (“ASU 2023-09”), Improvements to Income Tax Disclosures. The guidance is intended to improve income tax disclosure requirements by requiring (i) consistent categories and greater disaggregation of information in the rate reconciliation and (ii) the disaggregation of income taxes paid by jurisdiction. The guidance makes several other changes to the income tax disclosure requirements. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and is required to be applied prospectively with the option of retrospective application. We are evaluating the impact of the standard on our income tax disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Total Government Assistance Recognized | The following table presents the total government assistance recognized during the year ended December 31, 2023 (in millions of dollars): Grantor Grant Amount Duration Classification Indiana Economic Development Corporation IN EDGE Tax Credit $ 1.6 2021 - 2030 Cost of products sold, excluding depreciation and amortization Total $ 1.6 |
Estimated Useful Lives of Property, Plant and Equipment | Depreciation is computed using the straight-line method at rates based on the estimated useful lives of the various classes of assets. Depreciable finance lease assets and leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful lives of the assets or the lease term. The estimated useful lives are as follows: Range Land improvements 1 - 25 Buildings and leasehold improvements 2 - 45 Machinery and equipment 1 - 22 Depreciable finance lease assets 2 - 120 |
Summarizes of Total Deferred Implementation Costs and Accumulated Amortization Related to Hosted Cloud Computing Software | The following table summarizes the total deferred implementation costs and accumulated amortization related to the hosted cloud computing software for our enterprise resource planning system refresh project (in millions of dollars): As of December 31, Average 2023 2022 2021 Useful Life Deferred implementation costs 1 $ 11.7 $ 10.4 $ 7.8 9 years Accumulated amortization $ ( 2.2 ) $ ( 1.1 ) $ ( 0.1 ) n/a 1. We began amortizing deferred implementation costs in December 2021 and will amortize such costs within Selling, general, administrative, research and development over a nine-year period . |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Supplemental Balance Sheet Information | As of December 31, 2023 2022 (In millions of dollars) Trade Receivables, Net Billed trade receivables $ 325.8 $ 297.7 Allowance for doubtful receivables ( 0.6 ) ( 0.5 ) Trade receivables, net $ 325.2 $ 297.2 Inventories Finished products $ 89.3 $ 98.0 Work-in-process 210.8 242.5 Raw materials 161.5 174.0 Operating supplies 15.6 10.9 Inventories $ 477.2 $ 525.4 Property, Plant and Equipment, Net Land and improvements $ 38.0 $ 28.4 Buildings and leasehold improvements 238.4 185.5 Machinery and equipment 1,265.3 1,232.7 Construction in progress 173.7 141.3 Property, plant and equipment, gross 1,715.4 1,587.9 Accumulated depreciation and amortization ( 663.7 ) ( 574.9 ) Land held for sale 0.4 0.2 Property, plant and equipment, net $ 1,052.1 $ 1,013.2 Other Assets Assets to be conveyed associated with Warrick acquisition $ 56.8 $ 56.8 Restricted cash – Note 16 18.3 13.9 Long-term replacement parts 16.7 15.5 Other 25.9 26.1 Other assets $ 117.7 $ 112.3 . Other Accrued Liabilities Uncleared cash disbursements $ 15.7 $ 13.6 Accrued income taxes and other taxes payable 9.5 8.9 Accrued annual contribution to Salaried VEBA – Note 5 1.1 — Accrued interest 9.9 9.9 Short-term environmental accrual – Note 10 2.8 1.1 Current operating lease liabilities – Note 3 8.0 9.1 Current finance lease liabilities – Note 3 2.1 2.1 Other – Note 8 15.2 23.7 Other accrued liabilities $ 64.3 $ 68.4 Long-Term Liabilities Workers' compensation accrual $ 29.9 $ 30.9 Long-term environmental accrual – Note 10 14.2 16.6 Other long-term liabilities 37.6 27.2 Long-term liabilities $ 81.7 $ 74.7 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Lease Terms and Discount Rates | The following table presents lease terms and discount rates: As of December 31, 2023 2022 Weighted-average remaining lease term (in years): Finance leases 38.8 29.0 Operating leases 8.9 7. 0 Weighted-average discount rate: Finance leases 5.31 % 3.51 % Operating leases 4.35 % 3.95 % |
Schedule of Lease Assets and Lease Liabilities | The following table summarizes the classification of lease assets and lease liabilities on our Consolidated Balance Sheets (in millions of dollars): As of December 31, Description Classification 2023 2022 Operating lease assets Operating lease assets $ 32.6 $ 39.1 Finance lease assets Property, plant and equipment, net $ 14.3 $ 6.7 Current operating lease liabilities Other accrued liabilities $ 8.0 $ 9.1 Non-current operating lease liabilities Long-term portion of operating lease liabilities $ 29.2 $ 35.4 Total operating lease liabilities $ 37.2 $ 44.5 Current finance lease liabilities Other accrued liabilities $ 2.1 $ 2.1 Non-current finance lease liabilities Long-term liabilities $ 12.9 $ 5.0 Total finance lease liabilities $ 15.0 $ 7.1 |
Components of Lease Cost | The following table summarizes the components of lease cost in our Statements of Consolidated Income (Loss) (in millions of dollars): Year Ended December 31, 2023 2022 2021 Operating lease cost $ 11.6 $ 12.1 $ 11.0 Short-term lease cost 4.3 4.3 3.2 Finance lease cost: Amortization of leased assets 2.4 2.5 2.1 Interest on lease liabilities 0.7 0.3 0.3 Total lease cost $ 19.0 $ 19.2 $ 16.6 |
Schedule of Maturity of Our Lease Liabilities | The following table presents the maturity of our lease liabilities as of December 31, 2023 (in millions of dollars): Finance Leases Operating Leases 2024 $ 2.9 $ 9.4 2025 2.2 6.8 2026 1.7 4.4 2027 0.8 3.7 2028 0.6 3.4 Thereafter 26.9 19.2 Total minimum lease payments $ 35.1 $ 46.9 Less: interest ( 20.1 ) ( 9.7 ) Present value $ 15.0 $ 37.2 |
Business Combinations, Goodwi_2
Business Combinations, Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combinations Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents the changes in the carrying value of our goodwill (in millions of dollars): As of December 31, 2023 2022 Gross carrying value 1 : Beginning balance $ 57.7 $ 57.7 Warrick impairment — ( 20.5 ) Ending balance 57.7 37.2 Accumulated impairment loss 1 ( 38.9 ) ( 18.4 ) Net carrying value $ 18.8 $ 18.8 1. The gross carrying value and accumulated impairment loss excludes $ 25.2 million of goodwill recorded in conjunction with our acquisition of IMT. |
Schedule of Gross Carrying Amount and Accumulated Amortization By Major Intangible Asset Class | The following table presents the gross carrying amount and accumulated amortization by major intangible asset class (in millions of dollars, except amortization periods): Weighted- Gross Accumulated Intangible As of December 31, 2023 Customer relationships 19 $ 68.1 $ ( 26.1 ) $ 42.0 Trade name 10 2.4 ( 1.2 ) 1.2 Non-compete agreement 5 5.4 ( 5.4 ) — Favorable lease contracts 120 7.0 ( 0.2 ) 6.8 Total $ 82.9 $ ( 32.9 ) $ 50.0 As of December 31, 2022 Customer relationships 19 $ 68.1 $ ( 21.9 ) $ 46.2 Trade name 10 2.4 ( 1.0 ) 1.4 Non-compete agreement 5 5.4 ( 4.6 ) 0.8 Favorable lease contracts 120 7.0 ( 0.1 ) 6.9 Total $ 82.9 $ ( 27.6 ) $ 55.3 |
Schedule of Expected Amortization of Intangible Assets | The following table presents the expected amortization of intangible assets for each of the next five calendar years and thereafter as of December 31, 2023 (in millions of dollars): 2024 $ 4.5 2025 4.5 2026 4.5 2027 4.5 2028 4.4 Thereafter 27.6 Total $ 50.0 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Assumptions Used for Benefit Obligation | Key Assumptions. The following table presents the weighted average assumptions used to determine benefit obligations: Pension Plans 1 OPEB Salaried VEBA As of December 31, As of December 31, As of December 31, 2023 2022 2023 2022 2023 2022 Discount rate 4.95 % 5.16 % 4.92 % 5.14 % 4.89 % 5.10 % Rate of compensation increase 2.63 % 2.69 % — % — % — % — % 1. Assumptions for our pension plans are weighted based on the total benefit obligations of each. |
Schedule of Assumptions Used to Determine Net Periodic Benefit Cost (Income) | The following table presents the weighted average assumptions used to determine net periodic postretirement benefit cost: Pension Plans 1 OPEB Salaried VEBA Year Ended December 31, Year Ended December 31, Year Ended December 31, 2023 2022 2021 2023 2022 2021 2023 2022 2021 Discount rate 5.19 % 2.90 % 2.89 % 5.14 % 2.64 % 2.97 % 5.10 % 2.49 % 2.05 % Expected long-term return on plan assets 2 6.33 % 6.02 % 5.78 % — % — % — % 5.75 % 5.50 % 5.50 % Rate of compensation increase 2.63 % 2.69 % 2.74 % — % — % — % — % — % — % 1. Assumptions for our pension plans are weighted based on the total benefit obligations of each. 2. The expected long-term rate of return assumption for the Salaried VEBA is based on the targeted investment portfolios provided to us by the trustee of the Salaried VEBA. |
Schedule of Changes in Benefit Obligations | The following table presents the benefit obligations and funded status of our pension plans, OPEB, and the Salaried VEBA and the corresponding amounts that are included in our Consolidated Balance Sheets (in millions of dollars): Pension Plans OPEB Salaried VEBA As of December 31, As of December 31, As of December 31, 2023 2022 2023 2022 2023 2022 Change in benefit obligation: Obligation at beginning of year $ 18.8 $ 20.3 $ 66.4 $ 83.5 $ 58.9 $ 79.8 Foreign currency translation adjustment 0.2 ( 0.5 ) — — — — Service cost 3.8 5.8 1.1 1.6 — 0.1 Interest cost 1.3 0.6 3.4 2.2 2.9 1.9 Prior service cost (credit) 1 6.6 — — — ( 8.8 ) — Actuarial loss (gain) 2 0.2 ( 7.1 ) ( 0.7 ) ( 20.4 ) 0.4 ( 16.3 ) Plan participants contributions 0.1 0.1 0.1 0.1 — — Benefits paid ( 0.5 ) ( 0.4 ) ( 1.5 ) ( 0.6 ) ( 6.5 ) ( 6.6 ) Obligation at end of year 3 30.5 18.8 68.8 66.4 46.9 58.9 Change in plan assets: Fair market value of plan assets at beginning of year 14.9 9.8 — — 42.4 59.2 Foreign currency translation adjustment 0.2 ( 0.5 ) — — — — Actual return on assets 1.4 ( 2.6 ) — — 6.1 ( 10.2 ) Plan participants contributions 0.1 0.1 0.1 0.1 — — Company contributions 4.4 8.5 1.4 0.5 1.1 — Benefits paid ( 0.5 ) ( 0.4 ) ( 1.5 ) ( 0.6 ) ( 6.5 ) ( 6.6 ) Fair market value of plan assets at end of year 20.5 14.9 — — 43.1 42.4 Net funded status 4 $ ( 10.0 ) $ ( 3.9 ) $ ( 68.8 ) $ ( 66.4 ) $ ( 3.8 ) $ ( 16.5 ) Cumulative gain (loss) recognized in Accumulated other comprehensive income: Accumulated net actuarial gain $ 1.3 $ 2.6 $ 17.4 $ 17.8 $ 5.2 $ 1.7 Prior service cost ( 6.1 ) — — — ( 16.0 ) ( 29.7 ) Total $ ( 4.8 ) $ 2.6 $ 17.4 $ 17.8 $ ( 10.8 ) $ ( 28.0 ) 1. The prior service cost relating to our pension plans in 2023 resulted from a new four-year collective bargaining agreement with the USW Local 104. In connection with the agreement, we amended the Kaiser Aluminum Warrick pension plan to increase certain pension benefits for covered plan participants, resulting in a $ 6.6 million pre-tax prior service cost, which we recorded in AOCI and amortize on a straight-line basis over approximately 10 years. The prior service credit relating to the Salaried VEBA in 2023 resulted from a decrease in the annual healthcare reimbursement benefit for plan participants. 2. The actuarial loss relating to our pension plans in 2023 was comprised of a $ 0.5 million loss due to a change in the discount rate and a $ 0.3 million gain due to changes in census information . The actuarial gain relating to our pension plans in 2022 was comprised of an $ 8.0 million gain due to a change in the discount rate and a $ 0.9 million loss due to changes in census information. The actuarial gain relating to the OPEB in 2023 was comprised of a $ 2.7 million gain due to a change in the projected depletion year, a $ 2.5 million gain due to changes in census information, a $ 3.1 million loss due to a change in the trend rate assumption, and a $ 1.4 million loss due to a change in the discount rate. The actuarial gain relating to the OPEB in 2022 was comprised of a $ 20.4 million gain due to a change in the discount rate, a $ 0.7 million gain due to changes in census information and a $ 0.7 million loss due t o a change in the trend rate assumption. The actuarial loss relating to the Salaried VEBA in 2023 was comprised of a $ 0.7 million loss due to a change in the discount rate and a $ 0.3 million gain due to changes in census information. The actuarial gain relating to the Salaried VEBA in 2022 was comprised of a $ 12.6 million gain due to a change in the discount rate, a $ 2.6 million gain due to changes in census information and a $ 1.1 million gain due t o a change in the trend rate assumption. 3. For the pension plans, the benefit obligation is the projected benefit obligation. For the Salaried VEBA and OPEB, the benefit obligation is the APBO. 4. At December 31, 2023, Net funded status relating to the pension plans consisted of $ 1.3 million within Other assets and $ 11.3 million within Pension and other postretirement benefits on our Consolidated Balance Sheets. At December 31, 2022 , Net funded status relating to the pension plans consisted of $ 1.0 million within Other assets and $ 4.9 million within Pension and other postretirement benefits on our Consolidated Balance Sheets. Of the Net funded status relating to the OPEB at December 31, 2023, $ 3.3 million was included within Accrued salaries, wages and related expenses and $ 65.5 million was i ncluded within Pension and other postretirement benefits on our Consolidated Balance Sheets. Of the Net funded status relating to the OPEB at December 31, 2022, $ 2.0 million was included within Accrued salaries, wages and related expenses and $ 64.4 million was included within Pension and other postretirement benefits on our Consolidated Balance Sheets. Net funded status relating to the Salaried VEBA at December 31, 2023 and December 31, 2022 was included within Net liabilities of Salaried VEBA on our Consolidated Balance Sheets. |
Schedule of Expected Benefit Payments | The following table presents the net benefits expected to be paid (in millions of dollars): Year Ended December 31, 2024 2025 2026 2027 2028 2029-2033 Pension benefit payments $ 0.8 $ 1.0 $ 1.2 $ 1.5 $ 1.7 $ 11.3 Salaried VEBA benefit payments 1 5.4 5.2 5.0 4.8 4.5 18.1 OPEB payments 3.3 3.9 4.6 5.2 5.8 35.0 Total $ 9.5 $ 10.1 $ 10.8 $ 11.5 $ 12.0 $ 64.4 1. Such amounts are based on benefit amounts and certain key assumptions obtained from the Salaried VEBA trustees and will be paid out of the Salaried VEBA plan assets. We have an ongoing obligation to make variable cash contributions to the Salaried VEBA, up to a maximum of $ 2.9 million annually based on our cash flow. |
Summary of Asset Class Allocation per Pension Plan Investment Policy and Weighted Average Asset Allocation | Plan Assets. The following table presents the asset class allocation per our pension plan investment policy and the weighted average asset allocation: Asset class Policy range As of December 31, 2023 Equities 54 % - 60 % 59 % Fixed income 35 % - 40 % 35 % Other investments 5 % - 6 % 6 % |
Schedule of Fair Value of Plan Assets | The following table presents the fair value of plan assets at December 31, 2023 and 2022, classified under the appropriate level of the fair value hierarchy (in millions of dollars): December 31, 2023 December 31, 2022 Plan Assets in the Fair Value Hierarchy: 4 Level 1 Salaried VEBA – Equity investment funds in registered investment companies 1 $ 25.5 $ 27.4 Salaried VEBA – Fixed income investment funds in registered investment companies 2 16.5 15.0 Pension plans – Equity investment funds in registered investment companies 1 7.1 4.1 Pension plans – Fixed income investment funds in registered investment companies 2 4.1 2.6 Pension plans – Diversified investment funds in registered investment companies 3 9.3 8.2 Deferred compensation program – Diversified investment funds in registered investment companies 3 11.1 9.8 Total plan assets in the fair value hierarchy $ 73.6 $ 67.1 1. Equity investment funds in registered investment companies. This category represents investments in equity funds that invest in portfolios comprised primarily of equity and equity-related securities of U.S. and non-U.S. issuers across all market capitalizations. 2. Fixed income investment funds in registered investment companies . This category represents investments in various fixed income funds with multiple registered investment companies. Such funds invest primarily in bonds, debentures, notes, securities with equity and fixed-income characteristics, cash equivalents, securities backed by mortgages and other assets, loans, pooled or collective investment vehicles made up of fixed‑income securities and other fixed-income obligations of banks, corporations, and governmental authorities. 3. Diversified investment funds in registered investment companies . The plan assets are invested in investment funds that hold a diversified portfolio of: (i) U.S. and international debt and equity securities; (ii) fixed income securities such as corporate bonds and government bonds; (iii) mortgage-related securities; and (iv) cash and cash equivalents. 4. All plan assets were measured using Level 1 inputs. |
Schedule of Total Expense Related to Benefit Plans | The following table presents the total expense related to all benefit plans (in millions of dollars): Year Ended December 31, 2023 2022 2021 Defined contribution plans 1 $ 18.1 $ 17.1 $ 13.9 Deferred compensation plan 2 1.2 ( 0.6 ) 0.7 Multiemployer pension plans 1,3 5.6 5.2 5.0 Net periodic postretirement benefit cost relating to defined benefit plans 2,3,4 13.4 13.1 9.4 Total $ 38.3 $ 34.8 $ 29.0 1. Substantially all of these charges related to employee benefits are in COGS with the remaining balance in SG&A and R&D. 2. Deferred compensation plan expense and the current service cost component of Net periodic postretirement benefit cost relating to Salaried VEBA are included within our Statements of Consolidated Income (Loss) in SG&A and R&D for all periods presented. All other components of Net periodic postretirement benefit cost relating to Salaried VEBA are included within Other income (expense), net, in our Statements of Consolidated Income (Loss). 3. See Note 6 for more information on our multiemployer defined benefit pension plans. 4. The current service cost component of Net periodic postretirement benefit cost relating to both the pension plans and the OPEB plan are included within our Statements of Consolidated Income (Loss) in COGS for all periods presented. All other components of Net periodic postretirement benefit cost relating to both the pension plans and the OPEB plan are included within Other income (expense), net, in our Statements of Consolidated Income (Loss). |
Schedule of Net Benefit Costs | The following table presents the components of Net periodic postretirement benefit cost relating to our defined benefit plans (in millions of dollars): Pension Plans OPEB Salaried VEBA Year Ended December 31, Year Ended December 31, Year Ended December 31, 2023 2022 2021 2023 2022 2021 2023 2022 2021 Service cost $ 3.8 $ 5.8 $ 4.1 $ 1.1 $ 1.6 $ 1.1 $ — $ 0.1 $ 0.1 Interest cost 1.3 0.6 0.5 3.4 2.2 1.7 2.9 1.9 1.5 Expected return on plan assets ( 1.1 ) ( 0.9 ) ( 0.4 ) — — — ( 2.2 ) ( 3.1 ) ( 3.1 ) Amortization of prior service cost 1 0.4 — — — — — 4.9 4.9 3.5 Amortization of net actuarial loss (gain) — — 0.1 ( 1.1 ) — — — — 0.3 Total net periodic postretirement benefit cost $ 4.4 $ 5.5 $ 4.3 $ 3.4 $ 3.8 $ 2.8 $ 5.6 $ 3.8 $ 2.3 1. We amortize prior service cost on a straight-line basis over the average remaining years of service of the active plan participants. |
Multiemployer Pension Plans (Ta
Multiemployer Pension Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Multiemployer Pension Plan Description and Contributions | The following table presents information about multiemployer pension plans in which we participate: Pension FIP/RP Status Contributions of Employer Protection Act Pending/ the Company Surcharge Expiration Date Identification Zone Status 1 Implemented Year Ended December 31, Imposed of Collective- Pension Fund Number 2023 2022 in 2023² 2023 2022 2021 in 2023 Bargaining Agreements (in millions of dollars) USW 3 23-6648508 Green Green No $ 4.2 $ 3.8 $ 3.6 No Sep 2025 - Nov 2026 Other Funds 4 1.4 1.4 1.4 $ 5.6 $ 5.2 $ 5.0 1. The zone status is based on information that we received from the plan and is certified by the plan’s actuary. Among other factors, plans in the green zone are at least 80 % funded. 2. The “FIP/RP Status Pending/Implemented” column indicates if a Financial Improvement Plan (“FIP”) or a Rehabilitation Plan (“RP”) is either pending or has been implemented for the plan under the Pension Protection Act. 3. We are party to three collective bargaining agreements with the USW that require contributions to the Steelworkers Pension Trust. As of December 31, 2023, USW collective bargaining agreements covering employees at our Newark and Trentwood facilities cove red 87 % of our USW-represented employees and expire in September 2025. Our monthly contributions per hour worked by each bargaining unit employee at our Newark and Trentwood facilities were (in whole dollars) $ 1.75 in 2023. The union contracts covering employees at our Richmond, Virginia facility and Florence, Alabama facility cover 10 % and 3 % of our USW-represented employees, respectively, and expire in November 2026 and March 2026, respectively. Our monthly contributions per hour worked by each bargaining unit employee at our Richmond, Virginia facility and Florence, Alabama facility were (in whole dollars) $ 1.50 and $ 1.35 , respectively, in 2023. 4. Other Funds consists of plans that are not individually significant. |
Employee Incentive Plans (Table
Employee Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of RSAs and RSUs Activity | The following table summarizes activity relating to RSAs and RSUs for the year ended December 31, 2023: Shares Weighted- Outstanding at December 31, 2022 323,179 $ 87.59 Granted 171,710 71.81 Vested ( 80,452 ) 90.82 Forfeited ( 15,050 ) 80.92 Outstanding at December 31, 2023 399,387 $ 80.41 |
Summary of Performance Shares Activity | The following table summarizes activity relating to performance shares for the year ended December 31, 2023: Shares Weighted- Outstanding at December 31, 2022 367,552 $ 114.25 Granted 1 98,708 96.65 Forfeited 1 ( 3,932 ) 119.15 Canceled 1 ( 133,712 ) 99.79 Outstanding at December 31, 2023 328,616 $ 114.79 1. The number of shares granted and forfeited are presented at their maximum payout; and the number of shares canceled includes the number of shares that did not vest due to performance results falling below those required for maximum payout. |
Summary of Non-Cash Compensation Expense under LTI Programs | Non-Cash Compensation Expense. Non-cash compensation expense is primarily included in SG&A and R&D. The following table presents non-cash compensation expense by type of award under LTI Programs (in millions of dollars): Year Ended December 31, 2023 2022 2021 RSAs and RSUs $ 10.7 $ 8.8 $ 8.1 Performance shares 4.7 4.9 4.5 Total non-cash compensation expense $ 15.4 $ 13.7 $ 12.6 |
Summary of Unrecognized Gross Compensation Cost and Expected Period Over Which Remaining Gross Compensation Costs Will Be Recognized By Type of Award | Unrecognized Gross Compensation Cost Data. The following table presents unrecognized gross compensation costs and the expected period over which the remaining gross compensation costs will be recognized by type of award as of December 31, 2023: Unrecognized Gross Compensation Costs Expected Period RSAs and RSUs $ 14.0 2.3 Performance shares $ 6.0 1.8 |
Summary of Weighted-Average Grant-Date Fair Value per Share for Shares Granted by Type of Award | The following table presents the weighted-average grant-date fair value per share for shares granted by type of award: Year Ended December 31, 2023 2022 2021 RSAs and RSUs $ 71.81 $ 84.16 $ 107.24 Performance shares $ 96.65 $ 111.37 $ 137.06 |
Performance Shares | |
Summary of Weighted Average Inputs and Assumptions Used to Calculate Fair Value at Grant Date | The following table presents the weighted average inputs and assumptions used in the Monte Carlo simulations to calculate the fair value at the grant date of our TSR-Based Performance Shares: Year Ended December 31, 2023 2022 2021 Grant date fair value $ 104.87 $ 122.22 $ 151.98 Grant date stock price $ 84.33 $ 95.13 $ 114.71 Expected volatility of Kaiser Aluminum 1 49.72 % 49.37 % 45.71 % Expected volatility of peer companies 1 45.14 % 51.08 % 50.69 % Risk-free interest rate 4.59 % 1.59 % 0.29 % Dividend yield 3.65 % 3.24 % 2.51 % 1. Weighted average expected volatility based on 2.8 ye ars of daily closing share prices from the valuation date to the end of the performance period. |
Derivatives, Hedging Programs_2
Derivatives, Hedging Programs and Other Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Derivative Positions | The following table summarizes our derivative positions at December 31, 2023: Aluminum Maturity Period Notional Amount of Contracts (mmlbs) Fixed price purchase contracts for LME January 2024 through December 2025 69.8 Fixed price sale contracts for LME January 2024 through April 2024 6.3 Fixed price purchase contracts for MWTP January 2024 through December 2025 54.1 Fixed price sale contracts for MWTP January 2024 through May 2024 26.6 Alloying Metals Maturity Period Notional Amount of Contracts (mmlbs) Fixed price purchase contracts January 2024 through December 2025 8.4 Natural Gas Maturity Period Notional Amount of Contracts (mmbtu) Fixed price purchase contracts January 2024 through December 2026 3,390,000 Electricity Maturity Period Notional Amount of Contracts (Mwh) Fixed price purchase contracts January 2024 through December 2024 52,704 Euros Maturity Period Notional Amount of Contracts (EUR) Fixed price forward purchase contracts January 2024 through January 2026 16,745,648 British Pounds Maturity Period Notional Amount of Contracts (GBP) Fixed price forward purchase contracts May 2024 through July 2024 216,799 |
Summary of Loss (Gain) Associated with Derivative Contracts | The following table summarizes the amount of loss (gain) on derivative contracts recorded within our Statements of Consolidated Income (Loss) in Cost of products sold (in millions of dollars): Year Ended December 31, 2023 2022 2021 Total of income and expense line items presented in our Statements of Consolidated Income (Loss) in which the effects of hedges are recorded: Cash flow hedges $ 2,754.9 $ 3,180.2 $ 2,348.1 Loss (gain) recognized in our Statements of Consolidated Income (Loss) related to cash flow hedges: Aluminum $ 12.8 $ 7.4 $ ( 35.2 ) Alloying Metals — — 0.1 Natural gas 0.1 ( 6.6 ) ( 2.1 ) Electricity — ( 11.3 ) ( 4.7 ) Total loss (gain) recognized in our Statements of Consolidated Income (Loss) related to cash flow hedges $ 12.9 $ ( 10.5 ) $ ( 41.9 ) Loss (gain) recognized in our Statements of Consolidated Income (Loss) related to non-designated hedges: Alloying Metals – Realized loss (gain) $ 0.1 $ ( 0.5 ) $ ( 5.0 ) Alloying Metals – Unrealized loss — 1.4 1.2 Total loss (gain) recognized in our Statements of Consolidated Income (Loss) related to non-designated hedges $ 0.1 $ 0.9 $ ( 3.8 ) |
Schedule of Fair Value of Derivative Financial Instruments | The following table presents the fair value of our derivative financial instruments (in millions of dollars): As of December 31, 2023 As of December 31, 2022 Assets Liabilities Net Amount Assets Liabilities Net Amount Aluminum – Fixed price purchase contracts for LME $ 3.4 $ ( 0.6 ) $ 2.8 $ 0.7 $ ( 3.9 ) $ ( 3.2 ) Fixed price sale contracts for LME — ( 0.2 ) ( 0.2 ) — — — Fixed price purchase contracts for MWTP 0.4 ( 0.3 ) 0.1 0.5 ( 1.4 ) ( 0.9 ) Fixed price sale contracts for MWTP 0.1 ( 0.2 ) ( 0.1 ) — — — Alloying Metals – Fixed price purchase contracts 0.7 ( 0.1 ) 0.6 — — — Natural gas – Fixed price purchase contracts 0.3 ( 0.9 ) ( 0.6 ) 4.7 — 4.7 Electricity – Fixed price purchase contracts 0.5 ( 0.6 ) ( 0.1 ) — — — Foreign Currency – Fixed price forward contracts 0.5 — 0.5 — — — Total $ 5.9 $ ( 2.9 ) $ 3.0 $ 5.9 $ ( 5.3 ) $ 0.6 The following table presents the total amounts of derivative assets and liabilities on our Consolidated Balance Sheets (in millions of dollars): As of December 31, 2023 2022 Derivative assets: Prepaid expenses and other current assets $ 4.8 $ 3.6 Other assets 1.1 2.3 Total derivative assets $ 5.9 $ 5.9 Derivative liabilities: Other accrued liabilities $ ( 2.4 ) $ ( 5.3 ) Long-term liabilities ( 0.5 ) — Total derivative liabilities $ ( 2.9 ) $ ( 5.3 ) |
Debt and Credit Facility (Table
Debt and Credit Facility (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Senior Notes | The following table summarizes key details of our outstanding Senior Notes: Outstanding (in millions of dollars) Issuance Date Maturity Effective Interest Rate As of December 31, 2023 As of December 31, 2022 4.50 % Senior Notes May 2021 June 2031 4.7 % $ 550.0 $ 550.0 4.625 % Senior Notes November 2019 March 2028 4.8 % 500.0 500.0 Total debt 1,050.0 1,050.0 Unamortized issuance costs ( 10.2 ) ( 11.9 ) Total carrying amount $ 1,039.8 $ 1,038.1 |
Summary of Fair Value of Outstanding Senior Notes | The following table presents the fair value of our outstanding Senior Notes, which are Level 1 liabilities (in millions of dollars): As of December 31, 2023 2022 4.50% Senior Notes $ 474.1 $ 438.7 4.625% Senior Notes $ 462.4 $ 440.4 |
Schedule of Availability and Usage of Revolving Credit Facility | The following table summarizes availability and usage of our Revolving Credit Facility as determined by a borrowing base calculated as of December 31, 2023 (in millions of dollars): Revolving Credit Facility borrowing commitment $ 575.0 Borrowing base availability $ 543.5 Less: Outstanding borrowings under Revolving Credit Facility — Less: Outstanding letters of credit under Revolving Credit Facility ( 26.8 ) Remaining borrowing availability $ 516.7 |
Summary of Interest Relating to Senior Notes and Revolving Credit Facility | The following table presents interest expense relating to our Senior Notes and Revolving Credit Facility (in millions of dollars): Year Ended December 31, 2023 2022 2021 Senior Notes interest expense, including debt issuance cost amortization $ 49.6 $ 49.6 $ 49.0 Revolving Credit Facility interest expense, including commitment fees and finance cost amortization 3.0 2.0 1.4 Interest expense on finance lease liabilities 0.7 0.3 0.3 Interest expense capitalized as construction in progress ( 6.4 ) ( 3.6 ) ( 1.2 ) Total interest expense $ 46.9 $ 48.3 $ 49.5 |
Schedule of Future Principal Payments for Senior Notes and Revolving Credit Facility | The following table presents the future principal payments for our Senior Notes and Revolving Credit Facility as of December 31, 2023 (in millions of dollars): Year ending December 31, 2024 $ — 2025 — 2026 — 2027 — 2028 500.0 Thereafter 550.0 Total $ 1,050.0 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Activities Relating to Company's CARO Liabilities | The following table summarizes activity relating to CARO liabilities (in millions of dollars): Year Ended December 31, 2023 2022 2021 Beginning balance $ 10.1 $ 7.2 $ 6.7 Liabilities added during the period — 2.3 — Liabilities settled during the period — ( 0.1 ) ( 0.1 ) Accretion expense 0.8 0.7 0.6 Ending balance $ 10.9 $ 10.1 $ 7.2 |
Schedule of Changes in Environmental Contingencies | The following table presents the changes in our environmental accrual. We classify the short-term and long-term liabilities within Other accrued liabilities and Long-term liabilities, respectively, on our Consolidated Balance Sheets (in millions of dollars): Year Ended December 31, 2023 2022 2021 Beginning balance $ 17.7 $ 16.8 $ 18.7 Additional accruals 1.2 3.2 0.1 Less: expenditures ( 1.9 ) ( 2.3 ) ( 2.0 ) Ending balance $ 17.0 $ 17.7 $ 16.8 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the changes in the accumulated balances for each component of AOCI (in millions of dollars): Year Ended December 31, 2023 2022 2021 Defined Benefit Plans: Beginning balance $ 2.8 $ ( 21.4 ) $ ( 19.8 ) Actuarial gain arising during the period 4.3 27.0 8.0 Less: income tax expense ( 1.0 ) ( 6.5 ) ( 1.9 ) Net actuarial gain arising during the period 3.3 20.5 6.1 Prior service credit (cost) arising during the period 2.2 — ( 14.0 ) Less: income tax (expense) benefit ( 0.5 ) — 3.3 Net prior service credit (cost) arising during the period 1.7 — ( 10.7 ) Amortization of net actuarial (gain) loss 1 ( 1.1 ) — 0.4 Amortization of prior service cost 1 5.3 4.9 3.5 Less: income tax expense 2 ( 1.0 ) ( 1.2 ) ( 0.9 ) Net amortization reclassified from AOCI to Net income (loss) 3.2 3.7 3.0 Other comprehensive income (loss), net of tax 8.2 24.2 ( 1.6 ) Ending balance $ 11.0 $ 2.8 $ ( 21.4 ) Cash Flow Hedges: Beginning balance $ 0.4 $ 17.7 $ 1.1 Unrealized (loss) gain on cash flow hedges ( 10.7 ) ( 12.2 ) 63.6 Less: income tax benefit (expense) 2.5 2.9 ( 15.0 ) Net unrealized (loss) gain on cash flow hedges ( 8.2 ) ( 9.3 ) 48.6 Reclassification of unrealized loss (gain) upon settlement 12.9 ( 10.5 ) ( 41.9 ) Less: income tax (expense) benefit 2 ( 3.0 ) 2.5 9.9 Net loss (gain) reclassified from AOCI to Net income (loss) 9.9 ( 8.0 ) ( 32.0 ) Other comprehensive income (loss), net of tax 1.7 ( 17.3 ) 16.6 Ending balance 3 $ 2.1 $ 0.4 $ 17.7 Total AOCI ending balance $ 13.1 $ 3.2 $ ( 3.7 ) 1. Amounts amortized out of AOCI related to pension and other postretirement benefits were included within Net periodic postretirement benefit cost (see Note 5 ). 2. Income tax amounts reclassified out of AOCI were included as a component of Inc ome tax (provision) benefit. 3. As of December 31, 2023, we estimate a net mark-to-market gain before tax of $ 2.2 million in AOCI will be reclassified into Net income (loss) upon settlement within the next 12 months. |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
2022 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Summary of Activity Relating to Restructuring Plan Liabilities | The following table summarizes activity relating to the 2022 Restructuring Plan liabilities (in millions of dollars): BALANCE, December 31, 2021 $ — Restructuring costs 2.2 Costs paid or otherwise settled 1 ( 0.5 ) BALANCE, December 31, 2022 1.7 Restructuring costs 5.0 Costs paid or otherwise settled 1 ( 5.5 ) BALANCE, December 31, 2023 $ 1.2 1. Cash paid during the years ended December 31, 2023 and December 31, 2022 was $ 5.0 million and $ 0.4 million, respectively. |
2020 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Summary of Activity Relating to Restructuring Plan Liabilities | The following table summarizes activity relating to the 2020 Restructuring Plan liabilities (in millions of dollars): BALANCE, December 31, 2020 $ 1.4 Restructuring costs — Costs paid or otherwise settled ( 0.6 ) Other adjustments 1 ( 0.8 ) BALANCE, December 31, 2021 $ — 1. In 2021, we revised our production forecasts, thereby reducing the estimated number of headcount reductions necessary under the 2020 Restructuring Plan as compared with our initial requirements. These reductions to accommodate the revised headcount requirements are included in Other adjustments with an offset to Restructuring costs in our Statements of Consolidated Income (Loss). |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | The following table presents the components of Other income (expense), net, (in millions of dollars): Year Ended December 31, 2023 2022 2021 Interest income $ 1.7 $ 1.3 $ 0.2 Net periodic postretirement benefit cost ( 8.4 ) ( 5.6 ) ( 4.1 ) Unrealized gain (loss) on equity securities 0.6 ( 1.2 ) ( 0.2 ) Loss on extinguishment of debt 1 — — ( 35.9 ) Gain on disposition of property, plant and equipment 13.8 6.0 0.5 Post-acquisition funding received from Alcoa Corporation 2 — 6.0 — All other, net ( 0.3 ) ( 0.1 ) 0.6 Other income (expense), net $ 7.4 $ 6.4 $ ( 38.9 ) 1. In May 2021, we redeemed in full our 6.50% Senior Notes at a redemption price of 108.83 % of the $ 350.0 million principal amount plus $ 1.3 million of accrued and unpaid interest for a total net cash outflow of $ 382.2 million. Upon redemption of the 6.50% Senior Notes, we recorded a loss on extinguishment of debt of $ 35.9 million, which included the premium payment of $ 30.9 million and a write-off of the remaining unamortized premium and debt issuance costs of $ 5.0 million. 2. Reimbursement received for repairs and maintenance expenditures on certain machinery and equipment that we had purchased from Alcoa in connection with our March 31, 2021 acquisition of Warrick . |
Income Tax Matters (Tables)
Income Tax Matters (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income (Loss) Before Income Taxes by Geographic Area | The following table presents Income (loss) before income taxes by geographic area (in millions of dollars): Year Ended December 31, 2023 2022 2021 Domestic $ 48.0 $ ( 44.6 ) $ ( 30.2 ) Foreign 8.3 6.7 6.2 Income (loss) before income taxes $ 56.3 $ ( 37.9 ) $ ( 24.0 ) |
Income Tax (Provision) Benefit | The following table presents the components of Income tax (provision) benefit (in millions of dollars): Federal Foreign State Total Year Ended December 31, 2023 Current $ — $ ( 2.2 ) $ 0.6 $ ( 1.6 ) Deferred ( 11.6 ) 0.1 1.0 ( 10.5 ) Benefit applied to decrease AOCI 2.5 0.1 0.4 3.0 Income tax (provision) benefit $ ( 9.1 ) $ ( 2.0 ) $ 2.0 $ ( 9.1 ) Year Ended December 31, 2022 Current $ — $ ( 1.1 ) $ ( 2.5 ) $ ( 3.6 ) Deferred 8.9 ( 0.8 ) 1.6 9.7 Benefit applied to decrease AOCI 1.7 0.2 0.3 2.2 Income tax benefit (provision) $ 10.6 $ ( 1.7 ) $ ( 0.6 ) $ 8.3 Year Ended December 31, 2021 Current $ — $ ( 2.4 ) $ ( 3.5 ) $ ( 5.9 ) Deferred 2.1 0.5 4.2 6.8 Benefit applied to decrease AOCI 3.7 0.3 0.6 4.6 Income tax benefit (provision) $ 5.8 $ ( 1.6 ) $ 1.3 $ 5.5 |
Reconciliation of Income Tax (Provision) Benefit based on Effective Income Tax Rate and Statutory Tax Rate | The following table presents a reconciliation between the (provision) benefit for income taxes and the amount computed by applying the federal statutory income tax rate to Income (loss) before income taxes (in millions of dollars): Year Ended December 31, 2023 2022 2021 Amount of federal income tax (provision) benefit based on the statutory rate $ ( 11.8 ) $ 8.0 $ 5.0 Decrease in federal valuation allowances — 1.1 0.2 Non-deductible compensation expense ( 1.6 ) ( 0.9 ) ( 0.5 ) Non-deductible benefit (expense) 0.2 ( 1.0 ) ( 0.2 ) State income tax benefit (provision), net of federal benefit 1 1.5 ( 0.5 ) 1.0 Research and development credit 3.2 2.2 0.6 Foreign income tax expense ( 0.3 ) ( 0.3 ) ( 0.3 ) Foreign undistributed earnings ( 0.3 ) ( 0.3 ) ( 0.3 ) Income tax (provision) benefit $ ( 9.1 ) $ 8.3 $ 5.5 1. The sta te income tax expense was $ 1.4 million in 2023 , reflecting a decrease of $ 1.9 million due to state net operating loss (“NOL”) carryforward expirations and tax rate true-ups in various states and a $ 1.0 million decrease in the valuation allowance relating to certain state net operating losses. The state income tax benefit was $ 1.1 million in 2022, reflecting an increase of $ 1.5 million due to state NOL carryforward expirations and tax rate true-ups in various states and a $ 0.1 million increase in the valuation allowance relating to certain state net operating losses. The state income tax benefit was $ 0.7 million in 2021, reflecting an increase of $ 1.3 million due to state NOL carryforward expirations and tax rate true-ups in various states, offset by a $ 1.6 million decrease in the valuation allowance relating to certain state net operating losses. |
Deferred Tax Assets and Liabilities | The following table presents the components of our net deferred income tax assets and liabilities (in millions of dollars): As of December 31, 2023 2022 Deferred income tax assets: Loss and credit carryforwards $ 39.6 $ 47.7 Defined benefit plans 3.6 2.9 Other assets 36.8 36.3 Lease assets 8.7 10.6 Inventories 29.5 46.9 Excess interest carryforward 14.0 12.2 Research & development capitalization 16.9 8.7 Valuation allowances ( 2.7 ) ( 3.7 ) Total deferred income tax assets 146.4 161.6 Deferred income tax liabilities: Property, plant and equipment ( 142.6 ) ( 147.0 ) Lease liabilities ( 8.7 ) ( 9.3 ) Undistributed foreign earnings ( 3.0 ) ( 2.7 ) Total deferred income tax liabilities ( 154.3 ) ( 159.0 ) Net deferred income tax (liabilities) assets $ ( 7.9 ) $ 2.6 |
Reconciliation of Changes in Gross Unrecognized Tax Benefits | We have gross unrecognized benefits relating to uncertain tax positions. The following table presents a reconciliation of changes in the gross unrecognized tax benefits (in millions of dollars): Year Ended December 31, 2023 2022 2021 Gross unrecognized tax benefits at beginning of period $ 5.0 $ 4.1 $ 3.8 Gross increases for tax positions of current year 1.3 0.9 0.3 Gross increases for tax positions of prior years 0.2 0.1 0.4 Gross decreases for tax positions of prior years — ( 0.1 ) ( 0.3 ) Settlements — — ( 0.1 ) Gross unrecognized tax benefits at end of period $ 6.5 $ 5.0 $ 4.1 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Net Income (Loss) Per Share | The following table sets forth the computation of basic and diluted net income (loss) per share (in millions of dollars, except share and per share amounts): Year Ended December 31, 2023 2022 2021 Numerator: Net income (loss) 47.2 ( 29.6 ) ( 18.5 ) Less: earnings attributable to participating securities 1 ( 0.1 ) — — Net income (loss) available to common shareholders 47.1 ( 29.6 ) ( 18.5 ) Denominator – Weighted-average common shares Basic 15,991 15,906 15,836 Add: dilutive effect of non-vested common shares, 2 140 — — Diluted 16,131 15,906 15,836 Net income (loss) per common share, Basic $ 2.95 $ ( 1.86 ) $ ( 1.17 ) Net income (loss) per common share, Diluted $ 2.92 $ ( 1.86 ) $ ( 1.17 ) 1. Represents distributed and undistributed earnings allocated to non-vested RSAs that contain non-forfeitable rights to dividends. 2. Quantities in the following discussion are denoted in wh ole shares. A total of 35,000 non-vested RSUs and performance shares for the year ended December 31, 2023 were excluded from the weighted-average diluted shares computation as their inclusion would have been anti-dilutive. For the years ended December 31, 2022 and December 31, 2021, approximately 139,000 and 213,000 potentially dilutive shares, respectively, were excluded from the computation of net loss per share as their effect would have been anti‑dilutive. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | Year Ended December 31, 2023 2022 2021 (in millions of dollars) Interest paid $ 43.8 $ 45.7 $ 48.7 Non-cash investing and financing activities (included in Accounts payable): Unpaid purchases of property and equipment $ 19.3 $ 28.9 $ 14.0 Supplemental lease disclosures: Operating lease liabilities arising from obtaining operating lease assets $ 3.2 $ 3.1 $ 27.8 Cash paid for amounts included in the measurement of $ 9.3 $ 9.8 $ 8.2 Finance lease liabilities arising from obtaining finance lease assets $ 10.0 $ 1.0 $ 2.2 As of December 31, 2023 2022 2021 (in millions of dollars) Components of cash, cash equivalents and restricted cash: Cash and cash equivalents $ 82.4 $ 57.4 $ 303.2 Restricted cash included in Other assets 18.3 13.9 13.8 Total cash, cash equivalents and restricted cash presented on our Statements of $ 100.7 $ 71.3 $ 317.0 |
Business, Product and Geograp_2
Business, Product and Geographical Area Information and Concentration of Risk (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Net Sales by End Market Segment Applications | The following table presents Net sales by end market applications and by timing of control transfer (in millions of dollars): Year Ended December 31, 2023 2022 2021 Net sales: Aero/HS products $ 899.3 $ 676.1 $ 533.7 Packaging 1,315.2 1,585.3 1,119.3 GE products 596.5 883.8 706.1 Automotive Extrusions 254.9 254.8 225.0 Other products 21.1 27.9 37.9 Total net sales $ 3,087.0 $ 3,427.9 $ 2,622.0 Timing of revenue recognition: Products transferred at a point in time $ 2,394.8 $ 2,782.9 $ 2,067.9 Products transferred over time 692.2 645.0 554.1 Total net sales $ 3,087.0 $ 3,427.9 $ 2,622.0 |
Schedule of Net Sales, Income Taxes Paid, and Long-lived Assets, by Geographical Area | The following table presents geographic information for net sales based on country of origin, income taxes paid, and long-lived assets (in millions of dollars): Year Ended December 31, 2023 2022 2021 Net sales to unaffiliated customers: Domestic $ 2,986.0 $ 3,328.2 $ 2,545.0 Foreign 1 101.0 99.7 77.0 Total net sales $ 3,087.0 $ 3,427.9 $ 2,622.0 Income taxes paid: Domestic $ 0.3 $ 3.1 $ 4.5 Foreign 0.2 3.2 1.1 Total income taxes paid $ 0.5 $ 6.3 $ 5.6 As of December 31, 2023 2022 2021 Long-lived assets: 2 Domestic $ 1,025.3 $ 984.8 $ 925.3 Foreign 1 26.8 28.4 29.9 Total long-lived assets $ 1,052.1 $ 1,013.2 $ 955.2 1. Foreign reflects our London, Ontario production facility. 2. Long-lived assets represent Property, plant and equipment, net. |
Schedule of Export Sales and Primary Aluminum Supply from Major Suppliers | The following table presents information about export sales and primary aluminum supply from our major suppliers: Year Ended December 31, 2023 2022 2021 Percentage of Net sales: Export sales 10 % 10 % 10 % Percentage of total annual primary aluminum supply (lbs): Supply from our top five major suppliers 83 % 81 % 78 % Supply from our largest supplier 37 % 48 % 47 % Supply from our second and third largest suppliers combined 28 % 20 % 20 % |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) Segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Significant Accounting Policies [Line Items] | |||
Number of operating segments | Segment | 1 | ||
Excess of current cost over the stated LIFO value of inventory | $ 56 | $ 84.6 | |
Non-cash asset impairment charges | 23.7 | ||
Amortization expenses of cloud computing implementation costs | $ 1.1 | 1 | $ 0.1 |
Lease, practical expedients, package [true false] | true | ||
Accrued employee healthcare benefits | $ 7.7 | 7.7 | |
Advertising costs | 0.1 | 0 | 0.1 |
Research and development costs | $ 11.1 | 9.3 | 9.3 |
IN EDGE Tax Credit | |||
Significant Accounting Policies [Line Items] | |||
Government grants eligible conditions description | (i) minimum cumulative expenditures towards capital expenditures and (ii) a minimum number of full-time employees. | ||
Fabricated Products | Idled Equipment | |||
Significant Accounting Policies [Line Items] | |||
Non-cash asset impairment charges | $ 0 | $ 0 | $ 0 |
Minimum | |||
Significant Accounting Policies [Line Items] | |||
Period over which accounts receivable is due, days | 30 days | ||
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Period over which accounts receivable is due, days | 90 days |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Total Government Assistance Recognized (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Government Grant | |
Significant Accounting Policies [Line Items] | |
Government assistance recognized amount | $ 1.6 |
IN EDGE Tax Credit | Indiana Economic Development Corporation | Cost of Products Sold | |
Significant Accounting Policies [Line Items] | |
Government assistance recognized amount | $ 1.6 |
IN EDGE Tax Credit | Indiana Economic Development Corporation | Cost of Products Sold | Minimum | |
Significant Accounting Policies [Line Items] | |
Government grants transaction duration | 2021 |
IN EDGE Tax Credit | Indiana Economic Development Corporation | Cost of Products Sold | Maximum | |
Significant Accounting Policies [Line Items] | |
Government grants transaction duration | 2030 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Estimated Useful Lives of Property, Plant and Equipment (Details) | Dec. 31, 2023 |
Land Improvements | Minimum | |
Property, Plant and Equipment | |
Property, plant and equipment useful lives (in years) | 1 year |
Land Improvements | Maximum | |
Property, Plant and Equipment | |
Property, plant and equipment useful lives (in years) | 25 years |
Buildings and Leasehold Improvements | Minimum | |
Property, Plant and Equipment | |
Property, plant and equipment useful lives (in years) | 2 years |
Buildings and Leasehold Improvements | Maximum | |
Property, Plant and Equipment | |
Property, plant and equipment useful lives (in years) | 45 years |
Machinery and Equipment | Minimum | |
Property, Plant and Equipment | |
Property, plant and equipment useful lives (in years) | 1 year |
Machinery and Equipment | Maximum | |
Property, Plant and Equipment | |
Property, plant and equipment useful lives (in years) | 22 years |
Depreciable Finance Lease Assets | Minimum | |
Property, Plant and Equipment | |
Property, plant and equipment useful lives (in years) | 2 years |
Depreciable Finance Lease Assets | Maximum | |
Property, Plant and Equipment | |
Property, plant and equipment useful lives (in years) | 120 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summarizes of Total Deferred Implementation Costs and Accumulated Amortization Related to Hosted Cloud Computing Software (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Hosting Arrangement, Service Contract [Abstract] | |||
Deferred implementation costs | $ 11.7 | $ 10.4 | $ 7.8 |
Average Useful Life | 9 years | ||
Accumulated amortization | $ (2.2) | $ (1.1) | $ (0.1) |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summarizes of Total Deferred Implementation Costs and Accumulated Amortization Related to Hosted Cloud Computing Software (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Hosting Arrangement, Service Contract [Abstract] | |
Amortization period | 9 years |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information - Schedule of Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Trade Receivables, Net | |||
Allowance for doubtful receivables | $ (0.6) | $ (0.5) | |
Trade receivables, net | 325.2 | 297.2 | |
Inventories | |||
Finished products | 89.3 | 98 | |
Work-in-process | 210.8 | 242.5 | |
Raw materials | 161.5 | 174 | |
Operating supplies | 15.6 | 10.9 | |
Inventories | 477.2 | 525.4 | |
Property, Plant and Equipment, Net | |||
Land and improvements | 38 | 28.4 | |
Buildings and leasehold improvements | 238.4 | 185.5 | |
Machinery and equipment | 1,265.3 | 1,232.7 | |
Construction in progress | 173.7 | 141.3 | |
Property, plant and equipment, gross | 1,715.4 | 1,587.9 | |
Accumulated depreciation and amortization | (663.7) | (574.9) | |
Land held for sale | 0.4 | 0.2 | |
Property, plant and equipment, net | 1,052.1 | 1,013.2 | |
Other Assets | |||
Assets to be conveyed associated with Warrick acquisition | 56.8 | 56.8 | |
Restricted cash - Note 16 | 18.3 | 13.9 | $ 13.8 |
Long-term replacement parts | 16.7 | 15.5 | |
Other | 25.9 | 26.1 | |
Other assets | 117.7 | 112.3 | |
Other Accrued Liabilities | |||
Uncleared cash disbursements | 15.7 | 13.6 | |
Accrued income taxes and other taxes payable | 9.5 | 8.9 | |
Accrued annual contribution to Salaried VEBA - Note 5 | 1.1 | ||
Accrued interest | 9.9 | 9.9 | |
Short-term environmental accrual - Note 10 | 2.8 | 1.1 | |
Current operating lease liabilities - Note 3 | 8 | 9.1 | |
Current finance lease liabilities - Note 3 | 2.1 | 2.1 | |
Other - Note 8 | 15.2 | 23.7 | |
Other accrued liabilities | 64.3 | 68.4 | |
Long-Term Liabilities | |||
Workers' compensation accrual | 29.9 | 30.9 | |
Long-term environmental accrual | 14.2 | 16.6 | |
Other long-term liabilities | 37.6 | 27.2 | |
Long-term liabilities | 81.7 | 74.7 | |
Billed | |||
Trade Receivables, Net | |||
Billed trade receivables | $ 325.8 | $ 297.7 |
Leases - Schedule of Lease Term
Leases - Schedule of Lease Terms and Discount Rates (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Finance Lease, Weighted Average Remaining Lease Term | 38 years 9 months 18 days | 29 years |
Operating Lease, Weighted Average Remaining Lease Term | 8 years 10 months 24 days | 7 years |
Finance Lease, Weighted Average Discount Rate, Percent | 5.31% | 3.51% |
Operating Lease, Weighted Average Discount Rate, Percent | 4.35% | 3.95% |
Leases - Schedule of Lease Asse
Leases - Schedule of Lease Assets and Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating lease assets | $ 32.6 | $ 39.1 |
Finance lease assets | $ 14.3 | $ 6.7 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant and equipment, net | Property, plant and equipment, net |
Current operating lease liabilities | $ 8 | $ 9.1 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Accrued Liabilities, Current | Other Accrued Liabilities, Current |
Non-current operating lease liabilities | $ 29.2 | $ 35.4 |
Total operating lease liabilities | 37.2 | 44.5 |
Current finance lease liabilities | $ 2.1 | $ 2.1 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Accrued Liabilities, Current | Other Accrued Liabilities, Current |
Non-current finance lease liabilities | $ 12.9 | $ 5 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Total finance lease liabilities | $ 15 | $ 7.1 |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating lease cost | $ 11.6 | $ 12.1 | $ 11 |
Short-term lease cost | 4.3 | 4.3 | 3.2 |
Amortization of leased assets | 2.4 | 2.5 | 2.1 |
Interest on lease liabilities | 0.7 | 0.3 | 0.3 |
Total lease cost | $ 19 | $ 19.2 | $ 16.6 |
Leases - Schedule of Maturity o
Leases - Schedule of Maturity of Our Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Leases | ||
2024 | $ 9.4 | |
2025 | 6.8 | |
2026 | 4.4 | |
2027 | 3.7 | |
2028 | 3.4 | |
Thereafter | 19.2 | |
Total minimum lease payments | 46.9 | |
Less: interest | (9.7) | |
Present value | 37.2 | $ 44.5 |
Finance Leases | ||
2024 | 2.9 | |
2025 | 2.2 | |
2026 | 1.7 | |
2027 | 0.8 | |
2028 | 0.6 | |
Thereafter | 26.9 | |
Total minimum lease payments | 35.1 | |
Less: interest | (20.1) | |
Present value | $ 15 | $ 7.1 |
Business Combinations, Goodwi_3
Business Combinations, Goodwill and Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite Lived Intangible Assets [Line Items] | ||||
Goodwill impairment | $ 0 | $ 20,500,000 | ||
Impairment of intangible assets | $ 3,100,000 | |||
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Operating Income (Expense), Net | |||
Impairment associated with intangible assets | 0 | $ 0 | ||
Amortization of definite-lived intangible assets | $ 5,300,000 | $ 9,300,000 | $ 9,000,000 | |
Warrick acquisition | $ 20,500,000 | |||
Alcoa Warrick LLC [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Business combination, final purchase consideration | $ 609,200,000 |
Business Combinations, Goodwi_4
Business Combinations, Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 57.7 | $ 57.7 |
Warrick impairment | 0 | (20.5) |
Ending balance | 57.7 | 37.2 |
Accumulated impairment loss | (38.9) | (18.4) |
Net carrying value | $ 18.8 | $ 18.8 |
Business Combinations, Goodwi_5
Business Combinations, Goodwill and Intangible Assets - Schedule of Goodwill (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Line Items] | |||
Goodwill | $ 18.8 | $ 18.8 | |
Goodwill, acquired | $ 20.5 | ||
Impairment charge | 38.9 | $ 18.4 | |
IMT | |||
Goodwill [Line Items] | |||
Goodwill, acquired | 25.2 | ||
Impairment charge | $ 25.2 |
Business Combinations, Goodwi_6
Business Combinations, Goodwill and Intangible Assets - Schedule of Gross Carrying Amount and Accumulated Amortization By Major Intangible Asset Class (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 82.9 | $ 82.9 |
Accumulated Amortization | (32.9) | (27.6) |
Intangible Assets, Net | $ 50 | $ 55.3 |
Customer relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted- Average Amortization Period (in years) | 19 years | 19 years |
Gross Amount | $ 68.1 | $ 68.1 |
Accumulated Amortization | (26.1) | (21.9) |
Intangible Assets, Net | $ 42 | $ 46.2 |
Trade Name | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted- Average Amortization Period (in years) | 10 years | 10 years |
Gross Amount | $ 2.4 | $ 2.4 |
Accumulated Amortization | (1.2) | (1) |
Intangible Assets, Net | $ 1.2 | $ 1.4 |
Non-compete Agreement | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted- Average Amortization Period (in years) | 5 years | 5 years |
Gross Amount | $ 5.4 | $ 5.4 |
Accumulated Amortization | $ (5.4) | (4.6) |
Intangible Assets, Net | $ 0.8 | |
Favorable Lease Contracts | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted- Average Amortization Period (in years) | 120 years | 120 years |
Gross Amount | $ 7 | $ 7 |
Accumulated Amortization | (0.2) | (0.1) |
Intangible Assets, Net | $ 6.8 | $ 6.9 |
Business Combinations, Goodwi_7
Business Combinations, Goodwill and Intangible Assets - Schedule of Expected Amortization of Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 4.5 | |
2025 | 4.5 | |
2026 | 4.5 | |
2027 | 4.5 | |
2028 | 4.4 | |
Thereafter | 27.6 | |
Intangible Assets, Net | $ 50 | $ 55.3 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2021 | Dec. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Payment for other postretirement benefits | $ 1,700,000 | ||||
Postretirement Health Coverage | Salaried VEBA | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Maximum contribution threshold | $ 2,900,000 | ||||
Payment for other postretirement benefits | $ 0 | ||||
Postretirement Health Coverage | Scenario Forecast | Salaried VEBA | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Payment for other postretirement benefits | $ 1,100,000 | ||||
Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Accumulated benefit obligation | 29,600,000 | $ 18,000,000 | |||
Expected employer contributions in 2023 | $ 4,200,000 | ||||
Other Postretirement Benefits Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Health care cost trend rate assumed | 6.90% | ||||
Decreased rate of health care cost trend | 4% |
Employee Benefits - Assumptions
Employee Benefits - Assumptions Used to Determine Benefit Obligation (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Salaried VEBA | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.89% | 5.10% |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.95% | 5.16% |
Rate of compensation increase | 2.63% | 2.69% |
Other Postretirement Benefits Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.92% | 5.14% |
Employee Benefits - Assumptio_2
Employee Benefits - Assumptions Used to Determine Net Periodic Benefit Cost (Income) (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Salaried VEBA | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 5.10% | 2.49% | 2.05% |
Expected long-term return on plan assets | 5.75% | 5.50% | 5.50% |
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 5.19% | 2.90% | 2.89% |
Expected long-term return on plan assets | 6.33% | 6.02% | 5.78% |
Rate of compensation increase | 2.63% | 2.69% | 2.74% |
Other Postretirement Benefits Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 5.14% | 2.64% | 2.97% |
Employee Benefits - Benefit Obl
Employee Benefits - Benefit Obligations and Funded Status of Pension Plans, OPEB and Salaried VEBAs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Salaried VEBA | |||
Change in benefit obligation: | |||
Obligation at beginning of year | $ 58.9 | $ 79.8 | |
Service cost | 0.1 | ||
Interest cost | 2.9 | 1.9 | |
Prior service cost (credit) | (8.8) | ||
Actuarial loss (gain) | 0.4 | (16.3) | |
Benefits paid | (6.5) | (6.6) | |
Obligation at end of year | 46.9 | 58.9 | $ 79.8 |
Change in plan assets: | |||
Fair market value of plan assets at beginning of year | 42.4 | 59.2 | |
Actual return on assets | 6.1 | (10.2) | |
Company contributions | 1.1 | ||
Benefits paid | (6.5) | (6.6) | |
Fair market value of plan assets at end of year | 43.1 | 42.4 | 59.2 |
Net funded status | (3.8) | (16.5) | |
Cumulative gain (loss) recognized in Accumulated other comprehensive income: | |||
Accumulated net actuarial gain | 5.2 | 1.7 | |
Prior service cost | (16) | (29.7) | |
Total | (10.8) | (28) | |
Pension Plans | |||
Change in benefit obligation: | |||
Obligation at beginning of year | 18.8 | 20.3 | |
Foreign currency translation adjustment | 0.2 | (0.5) | |
Service cost | 3.8 | 5.8 | 4.1 |
Interest cost | 1.3 | 0.6 | 0.5 |
Prior service cost (credit) | 6.6 | ||
Actuarial loss (gain) | 0.2 | (7.1) | |
Plan participants contributions | 0.1 | 0.1 | |
Benefits paid | (0.5) | (0.4) | |
Obligation at end of year | 30.5 | 18.8 | 20.3 |
Change in plan assets: | |||
Fair market value of plan assets at beginning of year | 14.9 | 9.8 | |
Foreign currency translation adjustment | 0.2 | (0.5) | |
Actual return on assets | 1.4 | (2.6) | |
Plan participants contributions | 0.1 | 0.1 | |
Company contributions | 4.4 | 8.5 | |
Benefits paid | (0.5) | (0.4) | |
Fair market value of plan assets at end of year | 20.5 | 14.9 | 9.8 |
Net funded status | (10) | (3.9) | |
Cumulative gain (loss) recognized in Accumulated other comprehensive income: | |||
Accumulated net actuarial gain | 1.3 | 2.6 | |
Prior service cost | (6.1) | ||
Total | (4.8) | 2.6 | |
Other Postretirement Benefits Plan | |||
Change in benefit obligation: | |||
Obligation at beginning of year | 66.4 | 83.5 | |
Service cost | 1.1 | 1.6 | 1.1 |
Interest cost | 3.4 | 2.2 | 1.7 |
Actuarial loss (gain) | (0.7) | (20.4) | |
Plan participants contributions | 0.1 | 0.1 | |
Benefits paid | (1.5) | (0.6) | |
Obligation at end of year | 68.8 | 66.4 | $ 83.5 |
Change in plan assets: | |||
Plan participants contributions | 0.1 | 0.1 | |
Company contributions | 1.4 | 0.5 | |
Benefits paid | (1.5) | (0.6) | |
Net funded status | (68.8) | (66.4) | |
Cumulative gain (loss) recognized in Accumulated other comprehensive income: | |||
Accumulated net actuarial gain | 17.4 | 17.8 | |
Total | $ 17.4 | $ 17.8 |
Employee Benefits - Benefit O_2
Employee Benefits - Benefit Obligations and Funded Status of Pension Plans, OPEB and Salaried VEBAs (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Actuarial gain (loss) due to change in discount rate | $ (0.5) | $ 8 |
Actuarial gain (loss) due to changes in census data | 0.3 | (0.9) |
Pension and Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | 11.3 | 4.9 |
Other Assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | 1.3 | 1 |
Other Postretirement Benefits Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actuarial gain (loss) due to change in discount rate | (1.4) | 20.4 |
Actuarial gain (loss) due to changes in census data | 2.5 | 0.7 |
Actuarial gain (loss) due to changes in projected depletion year | 2.7 | |
Actuarial gain (loss) due to change in trend rate | (3.1) | (0.7) |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (68.8) | (66.4) |
Other Postretirement Benefits Plan | Accrued Salaries and Wages and Related Expenses | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | 3.3 | 2 |
Other Postretirement Benefits Plan | Pension and Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | 65.5 | 64.4 |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service cost (credit) | 6.6 | |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (10) | (3.9) |
Salaried VEBA | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service cost (credit) | (8.8) | |
Actuarial gain (loss) due to change in discount rate | (0.7) | 12.6 |
Actuarial gain (loss) due to changes in census data | 0.3 | 2.6 |
Actuarial gain (loss) due to change in trend rate | 1.1 | |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ (3.8) | $ (16.5) |
Employee Benefits - Expected Be
Employee Benefits - Expected Benefit Payments (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | $ 9.5 |
2025 | 10.1 |
2026 | 10.8 |
2027 | 11.5 |
2028 | 12 |
2029-2033 | 64.4 |
Salaried VEBA | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | 5.4 |
2025 | 5.2 |
2026 | 5 |
2027 | 4.8 |
2028 | 4.5 |
2029-2033 | 18.1 |
Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | 0.8 |
2025 | 1 |
2026 | 1.2 |
2027 | 1.5 |
2028 | 1.7 |
2029-2033 | 11.3 |
Other Postretirement Benefits Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | 3.3 |
2025 | 3.9 |
2026 | 4.6 |
2027 | 5.2 |
2028 | 5.8 |
2029-2033 | $ 35 |
Employee Benefits - Expected _2
Employee Benefits - Expected Benefit Payments (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Postretirement Health Coverage | Salaried VEBA | |
Defined Benefit Plan Disclosure [Line Items] | |
Maximum contribution threshold | $ 2,900,000 |
Employee Benefits - Summary of
Employee Benefits - Summary of Asset Class Allocation per Pension Plan Investment Policy and Weighted Average Asset Allocation (Details) | Dec. 31, 2023 |
Equities | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, weighted average asset allocation, percentage | 59% |
Equities | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, policy range, percentage | 54% |
Equities | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, policy range, percentage | 60% |
Fixed Income | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, weighted average asset allocation, percentage | 35% |
Fixed Income | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, policy range, percentage | 35% |
Fixed Income | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, policy range, percentage | 40% |
Other Investments | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, weighted average asset allocation, percentage | 6% |
Other Investments | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, policy range, percentage | 5% |
Other Investments | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, policy range, percentage | 6% |
Employee Benefits - Fair Value
Employee Benefits - Fair Value of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Salaried VEBA | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | $ 43.1 | $ 42.4 | $ 59.2 |
Pension Plans | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 20.5 | 14.9 | $ 9.8 |
Level 1 | Fair Value, Measurements, Recurring | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 73.6 | 67.1 | |
Deferred Compensation Plan Assets | 11.1 | 9.8 | |
Level 1 | Postretirement Health Coverage | Salaried VEBA | Equity Funds | Fair Value, Measurements, Recurring | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 25.5 | 27.4 | |
Level 1 | Postretirement Health Coverage | Salaried VEBA | Fixed Income Funds | Fair Value, Measurements, Recurring | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 16.5 | 15 | |
Level 1 | Pension Plans | Equity Funds | Fair Value, Measurements, Recurring | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 7.1 | 4.1 | |
Level 1 | Pension Plans | Fixed Income Funds | Fair Value, Measurements, Recurring | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 4.1 | 2.6 | |
Level 1 | Pension Plans | Diversified Investment Funds In Registered Investment Companies | Fair Value, Measurements, Recurring | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | $ 9.3 | $ 8.2 |
Employee Benefits - Summary o_2
Employee Benefits - Summary of Total Expense Related to All Postretirement Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic postretirement benefit cost relating to defined benefit plans | $ 8.4 | $ 5.6 | $ 4.1 |
Postretirement Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, cost | 18.1 | 17.1 | 13.9 |
Deferred compensation arrangement with individual, compensation expense | 1.2 | (0.6) | 0.7 |
Multiemployer plan, contributions by employer | 5.6 | 5.2 | 5 |
Net periodic postretirement benefit cost relating to defined benefit plans | 13.4 | 13.1 | 9.4 |
Total other employee benefit plans | $ 38.3 | $ 34.8 | $ 29 |
Employee Benefits - Summary o_3
Employee Benefits - Summary of Components of Net Periodic Postretirement Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Total net periodic postretirement benefit cost | $ 8.4 | $ 5.6 | $ 4.1 |
Salaried VEBA | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.1 | ||
Interest cost | 2.9 | 1.9 | |
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 3.8 | 5.8 | 4.1 |
Interest cost | 1.3 | 0.6 | 0.5 |
Expected return on plan assets | (1.1) | (0.9) | (0.4) |
Amortization of prior service cost | 0.4 | ||
Amortization of net actuarial loss (gain) | 0.1 | ||
Total net periodic postretirement benefit cost | 4.4 | 5.5 | 4.3 |
Other Postretirement Benefits Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 1.1 | 1.6 | 1.1 |
Interest cost | 3.4 | 2.2 | 1.7 |
Amortization of net actuarial loss (gain) | (1.1) | ||
Total net periodic postretirement benefit cost | 3.4 | 3.8 | 2.8 |
Postretirement Health Coverage | Salaried VEBA | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.1 | 0.1 | |
Interest cost | 2.9 | 1.9 | 1.5 |
Expected return on plan assets | (2.2) | (3.1) | (3.1) |
Amortization of prior service cost | 4.9 | 4.9 | 3.5 |
Amortization of net actuarial loss (gain) | 0.3 | ||
Total net periodic postretirement benefit cost | $ 5.6 | $ 3.8 | $ 2.3 |
Multiemployer Pension Plans - A
Multiemployer Pension Plans - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Multiemployer Pension Plan Disclosure [Line Items] | |
Percentage of employees participating in multiemployer pension plans to total employees | 37% |
Company's contributions to the multiemployer plans is less than | 5% |
Minimum | |
Multiemployer Pension Plan Disclosure [Line Items] | |
Estimated annual contribution to pension and other postretirement benefit plans | $ 5 |
Maximum | |
Multiemployer Pension Plan Disclosure [Line Items] | |
Estimated annual contribution to pension and other postretirement benefit plans | $ 6 |
Multiemployer Pension Plans - M
Multiemployer Pension Plans - Multiemployer Pension Plan Description and Contributions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Multiemployer Pension Plan Disclosure [Line Items] | |||
Entity Tax Identification Number | 94-3030279 | ||
Contributions of the Company | $ 5.6 | $ 5.2 | $ 5 |
USW Plan | |||
Multiemployer Pension Plan Disclosure [Line Items] | |||
Entity Tax Identification Number | 23-6648508 | ||
Pension Protection Act Zone Status | Green | Green | |
FIP/RP Status Pending/Implemented in 2022 | No | ||
Contributions of the Company | $ 4.2 | $ 3.8 | 3.6 |
Surcharge Imposed in 2022 | No | ||
USW Plan | Minimum | |||
Multiemployer Pension Plan Disclosure [Line Items] | |||
Expiration Date of Collective-Bargaining Agreement | Sep. 30, 2025 | ||
USW Plan | Maximum | |||
Multiemployer Pension Plan Disclosure [Line Items] | |||
Expiration Date of Collective-Bargaining Agreement | Nov. 30, 2026 | ||
Other Funds | |||
Multiemployer Pension Plan Disclosure [Line Items] | |||
Contributions of the Company | $ 1.4 | $ 1.4 | $ 1.4 |
Multiemployer Pension Plans -_2
Multiemployer Pension Plans - Multiemployer Pension Plan Description and Contributions (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2023 Agreement $ / shares | |
Multiemployer Pension Plan Disclosure [Line Items] | |
Green zone funding percentage | 80% |
USW Plan | |
Multiemployer Pension Plan Disclosure [Line Items] | |
Number of collective-bargaining agreements | Agreement | 3 |
USW Plan | Newark and Trentwood Facilities | |
Multiemployer Pension Plan Disclosure [Line Items] | |
Percentage of employees covered by bargaining agreement | 87% |
USW Plan | Newark and Trentwood Facilities | Starting in July Two Thousand Twenty | |
Multiemployer Pension Plan Disclosure [Line Items] | |
Monthly contributions per hour worked by each bargaining unit employee | $ 1.75 |
USW Plan | Richmond (Bellwood), Virginia Facility | |
Multiemployer Pension Plan Disclosure [Line Items] | |
Percentage of employees covered by bargaining agreement | 10% |
Monthly contributions per hour worked by each bargaining unit employee | $ 1.50 |
USW Plan | Florence, Alabama Facility | |
Multiemployer Pension Plan Disclosure [Line Items] | |
Percentage of employees covered by bargaining agreement | 3% |
Monthly contributions per hour worked by each bargaining unit employee | $ 1.35 |
Employee Incentive Plans - Addi
Employee Incentive Plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares available for awards (shares) | 506,031 | ||
Recognized tax benefit relating to non-cash compensation expense | $ 3.6 | $ 3.2 | $ 3 |
Share-based Compensation Arrangement by Share-based Payment Award, stock units, vested in period, fair value | $ 6.2 | $ 9.1 | $ 9.7 |
Restricted stock units (RSUs) | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of common share received by the employee on vesting | 1 | ||
Service period | 3 years | ||
Restricted Stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Service period | 1 year | ||
Performance Shares | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of common share received by the employee on vesting | 1 | ||
Performance Shares | Tranche One | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Performance period | 3 years | ||
Performance Shares | Tranche Two | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Performance period | 3 years | ||
Performance Shares | Tranche Four | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Performance period | 3 years | ||
Performance Shares | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of performance shares that may be earned, as a percentage (percent) | 0% | ||
Performance Shares | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of performance shares that may be earned, as a percentage (percent) | 200% | ||
Accrued salaries, wages and related expenses | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Accrued salaries, wages and related expenses | $ 11.4 |
Employee Incentive Plans - Summ
Employee Incentive Plans - Summary of RSAs and RSUs Activity (Details) - Restricted Stock and Restricted Stock Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares, Outstanding Beginning Balance | 323,179 | ||
Shares, Granted | 171,710 | ||
Shares, Vested | (80,452) | ||
Shares, Forfeited | (15,050) | ||
Shares, Outstanding Ending Balance | 399,387 | 323,179 | |
Weighted-Average Grant-Date Fair Value per Share, Outstanding Beginning Balance | $ 87.59 | ||
Weighted-Average Grant-Date Fair Value per Share, Granted | 71.81 | $ 84.16 | $ 107.24 |
Weighted-Average Grant-Date Fair Value per Share, Vested | 90.82 | ||
Weighted-Average Grant-Date Fair Value per Share, Forfeited | 80.92 | ||
Weighted-Average Grant-Date Fair Value per Share, Outstanding Ending Balance | $ 80.41 | $ 87.59 |
Employee Incentive Plans - Su_2
Employee Incentive Plans - Summary of Weighted Average Inputs and Assumptions Used to Calculate Fair Value at Grant Date (Details) - TSR-Based Performance Shares - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Grant date fair value | $ 104.87 | $ 122.22 | $ 151.98 |
Grant date stock price | $ 84.33 | $ 95.13 | $ 114.71 |
Expected volatility of Kaiser Aluminum | 49.72% | 49.37% | 45.71% |
Expected volatility of peer companies | 45.14% | 51.08% | 50.69% |
Risk-free interest rate | 4.59% | 1.59% | 0.29% |
Dividend yield | 3.65% | 3.24% | 2.51% |
Employee Incentive Plans - Su_3
Employee Incentive Plans - Summary of Weighted Average Inputs and Assumptions Used to Calculate Fair Value at Grant Date (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2023 | |
TSR-Based Performance Shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Term of awards remaining | 2 years 9 months 18 days |
Employee Incentive Plans - Su_4
Employee Incentive Plans - Summary of Performance Shares Activity (Details) - Performance Shares - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares, Outstanding Beginning Balance | 367,552 | ||
Shares, Granted | 98,708 | ||
Shares, Forfeited | (3,932) | ||
Shares, canceled | (133,712) | ||
Shares, Outstanding Ending Balance | 328,616 | 367,552 | |
Weighted-Average Grant-Date Fair Value per Share, Outstanding Beginning Balance | $ 114.25 | ||
Weighted-Average Grant-Date Fair Value per Share, Granted | 96.65 | $ 111.37 | $ 137.06 |
Weighted-Average Grant-Date Fair Value per Share, Forfeited | 119.15 | ||
Weighted-Average Grant-Date Fair Value per Share, Canceled | 99.79 | ||
Weighted-Average Grant-Date Fair Value per Share, Outstanding Ending Balance | $ 114.79 | $ 114.25 |
Employee Incentive Plans - Su_5
Employee Incentive Plans - Summary of Non-Cash Compensation Expense under LTI Programs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total non-cash compensation expense | $ 15.4 | $ 13.7 | $ 12.6 |
Restricted Stock and Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total non-cash compensation expense | 10.7 | 8.8 | 8.1 |
Performance Shares | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total non-cash compensation expense | $ 4.7 | $ 4.9 | $ 4.5 |
Employee Incentive Plans - Su_6
Employee Incentive Plans - Summary of Unrecognized Gross Compensation Cost and Expected Period Over Which Remaining Gross Compensation Costs Will Be Recognized By Type of Award (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Restricted Stock and Restricted Stock Units | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized Gross Compensation Costs | $ 14 |
Expected Period (in years) Over Which the Remaining Gross Compensation Costs Will Be Recognized | 2 years 3 months 18 days |
Performance Shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized Gross Compensation Costs | $ 6 |
Expected Period (in years) Over Which the Remaining Gross Compensation Costs Will Be Recognized | 1 year 9 months 18 days |
Employee Incentive Plans - Su_7
Employee Incentive Plans - Summary of Weighted-Average Grant-Date Fair Value per Share for Shares Granted by Type of Award (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Stock and Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Grant date fair value | $ 71.81 | $ 84.16 | $ 107.24 |
Performance Shares | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Grant date fair value | $ 96.65 | $ 111.37 | $ 137.06 |
Derivatives, Hedging Programs_3
Derivatives, Hedging Programs and Other Financial Instruments - Additional Information (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Collateral posted for net derivatives | $ 0 | $ 0 |
Cash collateral posted from customers | 0 | 0 |
Designated as Hedging Instrument | Purchase | ||
Derivative [Line Items] | ||
Derivative net liability | 1,000,000 | 3,300,000 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Net amount | $ 0 | $ 0 |
Derivatives, Hedging Programs_4
Derivatives, Hedging Programs and Other Financial Instruments - Summary of Derivative Positions (Details) - 12 months ended Dec. 31, 2023 Mmlb in Millions | EUR (€) Mmlb MMBTU MW | GBP (£) Mmlb MMBTU MW |
Purchase | Aluminum | ||
Derivative [Line Items] | ||
Derivative non-monetary notional amount | 69.8 | 69.8 |
Purchase | Aluminum | Minimum | ||
Derivative [Line Items] | ||
Derivative maturity period | Jan. 31, 2024 | |
Purchase | Aluminum | Maximum | ||
Derivative [Line Items] | ||
Derivative maturity period | Dec. 31, 2025 | |
Purchase | Fixed Price Purchase Contracts for MWTP | ||
Derivative [Line Items] | ||
Derivative non-monetary notional amount | 54.1 | 54.1 |
Purchase | Fixed Price Purchase Contracts for MWTP | Minimum | ||
Derivative [Line Items] | ||
Derivative maturity period | Jan. 31, 2024 | |
Purchase | Fixed Price Purchase Contracts for MWTP | Maximum | ||
Derivative [Line Items] | ||
Derivative maturity period | Dec. 31, 2025 | |
Purchase | Alloying Metals | ||
Derivative [Line Items] | ||
Derivative non-monetary notional amount | 8.4 | 8.4 |
Purchase | Alloying Metals | Minimum | ||
Derivative [Line Items] | ||
Derivative maturity period | Jan. 31, 2024 | |
Purchase | Alloying Metals | Maximum | ||
Derivative [Line Items] | ||
Derivative maturity period | Dec. 31, 2025 | |
Purchase | Natural Gas | ||
Derivative [Line Items] | ||
Derivative non-monetary notional amount | MMBTU | 3,390,000 | 3,390,000 |
Purchase | Natural Gas | Minimum | ||
Derivative [Line Items] | ||
Derivative maturity period | Jan. 31, 2024 | |
Purchase | Natural Gas | Maximum | ||
Derivative [Line Items] | ||
Derivative maturity period | Dec. 31, 2026 | |
Purchase | Electricity | ||
Derivative [Line Items] | ||
Derivative non-monetary notional amount | MW | 52,704 | 52,704 |
Purchase | Electricity | Minimum | ||
Derivative [Line Items] | ||
Derivative maturity period | Jan. 31, 2024 | |
Purchase | Electricity | Maximum | ||
Derivative [Line Items] | ||
Derivative maturity period | Dec. 31, 2024 | |
Purchase | Euro | ||
Derivative [Line Items] | ||
Derivative notional amount | € | € 16,745,648 | |
Purchase | Euro | Minimum | ||
Derivative [Line Items] | ||
Derivative maturity period | Jan. 31, 2024 | |
Purchase | Euro | Maximum | ||
Derivative [Line Items] | ||
Derivative maturity period | Jan. 31, 2026 | |
Purchase | British Pounds | ||
Derivative [Line Items] | ||
Derivative notional amount | £ | £ 216,799 | |
Purchase | British Pounds | Minimum | ||
Derivative [Line Items] | ||
Derivative maturity period | May 31, 2024 | |
Purchase | British Pounds | Maximum | ||
Derivative [Line Items] | ||
Derivative maturity period | Jul. 31, 2024 | |
Sales | Aluminum | ||
Derivative [Line Items] | ||
Derivative non-monetary notional amount | 6.3 | 6.3 |
Sales | Aluminum | Minimum | ||
Derivative [Line Items] | ||
Derivative maturity period | Jan. 31, 2024 | |
Sales | Aluminum | Maximum | ||
Derivative [Line Items] | ||
Derivative maturity period | Apr. 30, 2024 | |
Sales | Fixed Price Sale Contracts for MWTP | ||
Derivative [Line Items] | ||
Derivative non-monetary notional amount | 26.6 | 26.6 |
Sales | Fixed Price Sale Contracts for MWTP | Minimum | ||
Derivative [Line Items] | ||
Derivative maturity period | Jan. 31, 2024 | |
Sales | Fixed Price Sale Contracts for MWTP | Maximum | ||
Derivative [Line Items] | ||
Derivative maturity period | May 31, 2024 |
Derivatives, Hedging Programs_5
Derivatives, Hedging Programs and Other Financial Instruments - Summary of Loss (Gain) Associated with Derivative Contracts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments Gain Loss [Line Items] | |||
Total of income and expense line items presented in our Statements of Consolidated Income (loss) in which the effects of cashflow hedges are recorded | $ 2,754.9 | $ 3,180.2 | $ 2,348.1 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Total of income and expense line items presented in our Statements of Consolidated Income (loss) in which the effects of cashflow hedges are recorded | Total of income and expense line items presented in our Statements of Consolidated Income (loss) in which the effects of cashflow hedges are recorded | Total of income and expense line items presented in our Statements of Consolidated Income (loss) in which the effects of cashflow hedges are recorded |
Not Designated as Hedging Instrument | |||
Derivative Instruments Gain Loss [Line Items] | |||
Loss (gain) recognized in our Statements of Consolidated Income (Loss) | $ 0.1 | $ 0.9 | $ (3.8) |
Not Designated as Hedging Instrument | Alloying Metals | |||
Derivative Instruments Gain Loss [Line Items] | |||
Loss (gain) recognized in our Statements of Consolidated Income (Loss) | 0.1 | (0.5) | (5) |
Loss (gain) recognized in our Statements of Consolidated Income - Unrealized loss | 1.4 | 1.2 | |
Cash Flow Hedges | |||
Derivative Instruments Gain Loss [Line Items] | |||
Total of income and expense line items presented in our Statements of Consolidated Income (loss) in which the effects of cashflow hedges are recorded | 2,754.9 | 3,180.2 | 2,348.1 |
Cash Flow Hedges | Designated as Hedging Instrument | |||
Derivative Instruments Gain Loss [Line Items] | |||
Loss (gain) recognized in our Statements of Consolidated Income (Loss) | 12.9 | (10.5) | (41.9) |
Cash Flow Hedges | Designated as Hedging Instrument | Aluminum | |||
Derivative Instruments Gain Loss [Line Items] | |||
Loss (gain) recognized in our Statements of Consolidated Income (Loss) | 12.8 | 7.4 | (35.2) |
Cash Flow Hedges | Designated as Hedging Instrument | Alloying Metals | |||
Derivative Instruments Gain Loss [Line Items] | |||
Loss (gain) recognized in our Statements of Consolidated Income (Loss) | 0.1 | ||
Cash Flow Hedges | Designated as Hedging Instrument | Natural Gas | |||
Derivative Instruments Gain Loss [Line Items] | |||
Loss (gain) recognized in our Statements of Consolidated Income (Loss) | $ 0.1 | (6.6) | (2.1) |
Cash Flow Hedges | Designated as Hedging Instrument | Electricity | |||
Derivative Instruments Gain Loss [Line Items] | |||
Loss (gain) recognized in our Statements of Consolidated Income (Loss) | $ (11.3) | $ (4.7) |
Derivatives, Hedging Programs_6
Derivatives, Hedging Programs and Other Financial Instruments - Schedule of Fair Value of Derivative Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Designated as Hedging Instrument | Purchase | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities | $ (1) | $ (3.3) |
Not Designated as Hedging Instrument | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Net Amount | 0 | 0 |
Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 5.9 | 5.9 |
Liabilities | (2.9) | (5.3) |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 5.9 | 5.9 |
Liabilities | (2.9) | (5.3) |
Net Amount | 3 | 0.6 |
Fair Value, Measurements, Recurring | Cash Flow Hedges | Level 1 | Designated as Hedging Instrument | Purchase | Natural Gas | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 0.3 | 4.7 |
Liabilities | (0.9) | |
Net Amount | (0.6) | 4.7 |
Fair Value, Measurements, Recurring | Cash Flow Hedges | Level 1 | Designated as Hedging Instrument | Purchase | Aluminum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 3.4 | 0.7 |
Liabilities | (0.6) | (3.9) |
Net Amount | 2.8 | (3.2) |
Fair Value, Measurements, Recurring | Cash Flow Hedges | Level 1 | Designated as Hedging Instrument | Purchase | Fixed Price Purchase Contracts for MWTP | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 0.4 | 0.5 |
Liabilities | (0.3) | (1.4) |
Net Amount | 0.1 | $ (0.9) |
Fair Value, Measurements, Recurring | Cash Flow Hedges | Level 1 | Designated as Hedging Instrument | Purchase | Fixed Price Sale Contracts For MWTP | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 0.1 | |
Liabilities | (0.2) | |
Net Amount | (0.1) | |
Fair Value, Measurements, Recurring | Cash Flow Hedges | Level 1 | Designated as Hedging Instrument | Purchase | Foreign Currency | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 0.5 | |
Net Amount | 0.5 | |
Fair Value, Measurements, Recurring | Cash Flow Hedges | Level 1 | Designated as Hedging Instrument | Purchase | Alloying Metals | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 0.7 | |
Liabilities | (0.1) | |
Net Amount | 0.6 | |
Fair Value, Measurements, Recurring | Cash Flow Hedges | Level 1 | Designated as Hedging Instrument | Purchase | Electricity | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 0.5 | |
Liabilities | (0.6) | |
Net Amount | (0.1) | |
Fair Value, Measurements, Recurring | Cash Flow Hedges | Level 1 | Designated as Hedging Instrument | Sales | Aluminum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities | (0.2) | |
Net Amount | $ (0.2) |
Derivatives, Hedging Programs_7
Derivatives, Hedging Programs and Other Financial Instruments - Schedule of Total Amounts of Derivative Assets and Liabilities on Balance Sheets (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Derivative asset current | $ 4.8 | $ 3.6 |
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] | Prepaid Expense and Other Assets, Current | Prepaid Expense and Other Assets, Current |
Derivative asset noncurrent | $ 1.1 | $ 2.3 |
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent | Other Assets, Noncurrent |
Total derivative assets | $ 5.9 | $ 5.9 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Assets | Assets |
Derivative liabilities current | $ (2.4) | $ (5.3) |
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Accrued Liabilities, Current | Other Accrued Liabilities, Current |
Derivative liabilities noncurrent | $ (0.5) | |
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | |
Total derivative liabilities | $ (2.9) | $ (5.3) |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Liabilities | Liabilities |
Debt and Credit Facility (Senio
Debt and Credit Facility (Senior Notes) - Additional Information (Details) - Senior Notes - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Debt instrument aggregate principal amount | $ 1,050 | $ 1,050 |
4.50% Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument contractual rate (percent) | 4.50% | |
Debt instrument aggregate principal amount | $ 550 | $ 550 |
4.625% Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument contractual rate (percent) | 4.625% | 4.625% |
Debt instrument aggregate principal amount | $ 500 | $ 500 |
Debt and Credit Facility - Summ
Debt and Credit Facility - Summary of Senior Notes (Details) - Senior Notes - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Total debt | $ 1,050 | $ 1,050 |
Unamortized issuance costs | (10.2) | (11.9) |
Total carrying amount | $ 1,039.8 | 1,038.1 |
4.50% Senior Notes | ||
Debt Instrument [Line Items] | ||
Issuance Date | May 21, 2021 | |
Debt Instrument, Maturity Date | Jun. 30, 2031 | |
Effective interest rate (percent) | 4.70% | |
Total debt | $ 550 | 550 |
4.625% Senior Notes | ||
Debt Instrument [Line Items] | ||
Issuance Date | Nov. 30, 2019 | |
Debt Instrument, Maturity Date | Mar. 31, 2028 | |
Effective interest rate (percent) | 4.80% | |
Total debt | $ 500 | $ 500 |
Debt and Credit Facility - Su_2
Debt and Credit Facility - Summary of Senior Notes (Parenthetical) (Details) - Senior Notes | Dec. 31, 2023 | Dec. 31, 2022 |
4.50% Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument contractual rate (percent) | 4.50% | |
4.625% Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument contractual rate (percent) | 4.625% | 4.625% |
Debt and Credit Facility - Su_3
Debt and Credit Facility - Summary of Fair Value of Outstanding Senior Notes (Details) - Senior Notes - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
4.50% Senior Notes | ||
Debt Instrument [Line Items] | ||
Fair value of outstanding senior notes | $ 474.1 | $ 438.7 |
4.625% Senior Notes | ||
Debt Instrument [Line Items] | ||
Fair value of outstanding senior notes | $ 462.4 | $ 440.4 |
Debt and Credit Facility (Revol
Debt and Credit Facility (Revolving Credit Facility) - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Oct. 31, 2019 | |
Debt Instrument [Line Items] | ||||
Total borrowings incurred | $ 215.1 | |||
Amended Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Line of credit maturity date description | extended the maturity date from the earlier of (a) February 2024 (if certain conditions were met) and (b) October 2024 to April 2027 | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 575 | $ 375 | ||
Outstanding borrowings | 0 | $ 0 | ||
Total borrowings incurred | $ 215.1 | |||
Revolving Credit Facility | Prime Rate | ||||
Debt Instrument [Line Items] | ||||
Effective interest rate (percent) | 0.25% | |||
Revolving Credit Facility | Amended Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 575 | |||
Revolving Credit Facility | Amended Credit Agreement | SOFR | ||||
Debt Instrument [Line Items] | ||||
Effective interest rate (percent) | 1.35% | |||
Revolving Credit Facility | Amended Credit Agreement | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 50 |
Debt and Credit Facility - Sche
Debt and Credit Facility - Schedule of Availability and Usage of Revolving Credit Facility (Details) - Revolving Credit Facility - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Oct. 31, 2019 |
Line Of Credit Facility [Line Items] | |||
Revolving Credit Facility borrowing commitment | $ 575 | $ 375 | |
Borrowing base availability | 543.5 | ||
Less: Outstanding borrowings under Revolving Credit Facility | 0 | $ 0 | |
Less: Outstanding letters of credit under Revolving Credit Facility | (26.8) | ||
Remaining borrowing availability | $ 516.7 |
Debt and Credit Facility - Su_4
Debt and Credit Facility - Summary of Interest Expense Relating to Senior Notes and Revolving Credit Facility (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Interest expense on finance lease liabilities | $ 0.7 | $ 0.3 | $ 0.3 |
Total interest expense | 46.9 | 48.3 | 49.5 |
Senior Notes and Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Interest expense on finance lease liabilities | 0.7 | 0.3 | 0.3 |
Interest expense capitalized as construction in progress | (6.4) | (3.6) | (1.2) |
Total interest expense | 46.9 | 48.3 | 49.5 |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Revolving Credit Facility interest expense, including commitment fees and finance cost amortization | 3 | 2 | 1.4 |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior Notes interest expense, including debt issuance cost amortization | $ 49.6 | $ 49.6 | $ 49 |
Debt and Credit Facility - Sc_2
Debt and Credit Facility - Schedule of Future Principal Payments for Senior Notes and Revolving Credit Facility (Details) - Senior Notes and Revolving Credit Facility $ in Millions | Dec. 31, 2023 USD ($) |
Debt Instrument [Line Items] | |
2028 | $ 500 |
Thereafter | 550 |
Total | $ 1,050 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Activities Relating to Company's CARO Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Beginning balance | $ 10.1 | $ 7.2 | $ 6.7 |
Liabilities added during the period | 2.3 | ||
Liabilities settled during the period | (0.1) | (0.1) | |
Accretion expense | 0.8 | 0.7 | 0.6 |
Ending balance | $ 10.9 | $ 10.1 | $ 7.2 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Environmental Contingency | ||||
Environmental accrual | $ 17 | $ 17.7 | $ 16.8 | $ 18.7 |
Expected period related to remediation expenditures for environmental contingencies period | 30 years | |||
Potential increase in environmental costs | $ 11.6 | |||
Time period within which recorded estimate of its obligation may change | 12 months | |||
Weighted-average Credit-adjusted Risk-free Rate | ||||
Environmental Contingency | ||||
Weighted-average credit-adjusted risk-free rate (percent) | 8.26% | 8.23% |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Changes in Environmental Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning balance | $ 17.7 | $ 16.8 | $ 18.7 |
Additional accruals | 1.2 | 3.2 | 0.1 |
Less: expenditures | (1.9) | (2.3) | (2) |
Ending balance | $ 17 | $ 17.7 | $ 16.8 |
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | $ 631.2 | $ 692.5 | $ 732.4 | |||
Other comprehensive income (loss), net of tax | 9.9 | 6.9 | 15 | |||
Ending balance | 652.2 | 631.2 | 692.5 | |||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | 2.8 | (21.4) | (19.8) | |||
Less: income tax (expense) benefit | [1] | (1) | (1.2) | (0.9) | ||
Net loss (gain) reclassified from AOCI to Net income (loss) | 3.2 | 3.7 | 3 | |||
Other comprehensive income (loss), net of tax | 8.2 | 24.2 | (1.6) | |||
Ending balance | 11 | 2.8 | (21.4) | |||
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Unrealized gain (loss) on securities | 4.3 | 27 | 8 | |||
Less: income tax (expense) benefit | (1) | (6.5) | (1.9) | |||
Net unrealized gain (loss) on available for sale securities, cash flow hedges and fair value hedges | 3.3 | 20.5 | 6.1 | |||
Reclassification from AOCI | [2] | (1.1) | 0.4 | |||
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Unrealized gain (loss) on securities | 2.2 | (14) | ||||
Less: income tax (expense) benefit | (0.5) | 3.3 | ||||
Net unrealized gain (loss) on available for sale securities, cash flow hedges and fair value hedges | 1.7 | (10.7) | ||||
Reclassification from AOCI | [2] | 5.3 | 4.9 | 3.5 | ||
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | 0.4 | [3] | 17.7 | [3] | 1.1 | |
Unrealized gain (loss) on securities | (10.7) | (12.2) | 63.6 | |||
Less: income tax (expense) benefit | 2.5 | 2.9 | (15) | |||
Net unrealized gain (loss) on available for sale securities, cash flow hedges and fair value hedges | (8.2) | (9.3) | 48.6 | |||
Reclassification from AOCI | 12.9 | (10.5) | (41.9) | |||
Less: income tax (expense) benefit | (3) | 2.5 | 9.9 | |||
Net loss (gain) reclassified from AOCI to Net income (loss) | 9.9 | (8) | (32) | |||
Other comprehensive income (loss), net of tax | 1.7 | (17.3) | 16.6 | |||
Ending balance | [3] | 2.1 | 0.4 | 17.7 | ||
Accumulated Other Comprehensive (Loss) Income | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | 3.2 | (3.7) | (18.7) | |||
Other comprehensive income (loss), net of tax | 9.9 | 6.9 | 15 | |||
Ending balance | $ 13.1 | $ 3.2 | $ (3.7) | |||
[1] Income tax amounts reclassified out of AOCI were included as a component of Inc ome tax (provision) benefit. Amounts amortized out of AOCI related to pension and other postretirement benefits were included within Net periodic postretirement benefit cost (see Note 5 ). As of December 31, 2023, we estimate a net mark-to-market gain before tax of $ 2.2 million in AOCI will be reclassified into Net income (loss) upon settlement within the next 12 months. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Loss (Parenthetical) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Equity [Abstract] | |
Estimated net mark-to-market gain before tax within next twelve months - cash flow hedges | $ 2.2 |
Restructuring - Additional Info
Restructuring - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | 15 Months Ended | 21 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2021 | |
Restructuring Cost And Reserve [Line Items] | |||||
Payments for restructuring | $ 5 | $ 0.4 | |||
2022 Plan | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Total amount expected to be incurred | 8 | $ 8 | |||
Restructuring costs | 5 | 2.2 | 7.2 | ||
Payments for restructuring | $ 5.5 | $ 0.5 | $ 5.4 | ||
2020 Plan | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring costs | $ 6.7 | ||||
Payments for restructuring | $ 0.6 |
Restructuring - Summary of Acti
Restructuring - Summary of Activity Relating to Restructuring Plan Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | 15 Months Ended | 21 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2021 | |
Restructuring Reserve [Roll Forward] | |||||
Costs paid or otherwise settled | $ (5) | $ (0.4) | |||
2022 Plan | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | 1.7 | ||||
Restructuring costs | 5 | 2.2 | $ 7.2 | ||
Costs paid or otherwise settled | (5.5) | (0.5) | (5.4) | ||
Ending balance | $ 1.2 | $ 1.7 | $ 1.2 | ||
2020 Plan | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | $ 1.4 | ||||
Restructuring costs | $ 6.7 | ||||
Costs paid or otherwise settled | (0.6) | ||||
Other adjustments | $ (0.8) |
Restructuring - Summary of Ac_2
Restructuring - Summary of Activity Relating to Restructuring Plan Liabilities (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | ||
Cash Paid | $ 5 | $ 0.4 |
Other Income (Expense), Net - O
Other Income (Expense), Net - Other Income (Expense), Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |||
Interest income | $ 1.7 | $ 1.3 | $ 0.2 |
Net periodic postretirement benefit cost | (8.4) | (5.6) | (4.1) |
Unrealized gain (loss) on equity securities | 0.6 | (1.2) | (0.2) |
Loss on extinguishment of debt | (35.9) | ||
Gain on disposition of property, plant and equipment | 13.8 | 6 | 0.5 |
Post-acquisition funding received from Alcoa Corporation | 6 | ||
All other, net | (0.3) | (0.1) | 0.6 |
Other income (expense), net | $ 7.4 | $ 6.4 | $ (38.9) |
Other Income (Expense), Net -_2
Other Income (Expense), Net - Other Income (Expense), Net - (Parenthetical) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
May 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||
Loss on extinguishment of debt | $ (35.9) | |||
Amortization of debt premium and debt issuance costs | $ 2.2 | $ 2.3 | $ 2.1 | |
Trade accounts receivable sold | 1,240.6 | 1,589.3 | ||
Net discount fees recognized | 29.7 | 23.3 | ||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument aggregate principal amount | $ 1,050 | $ 1,050 | ||
Senior Notes Due 2025 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument aggregate principal amount | $ 350 | |||
Debt issuance, percentage of principal amount | 108.83% | |||
Loss on extinguishment of debt | $ 35.9 | |||
Net cash outflow | 382.2 | |||
Accrued and unpaid interest | 1.3 | |||
Amortization of debt premium and debt issuance costs | 5 | |||
Premium payment | $ 30.9 |
Other Income (Expense), Net - A
Other Income (Expense), Net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | ||
Trade accounts receivable sold | $ 1,240.6 | $ 1,589.3 |
Net discount fees recognized | $ 29.7 | $ 23.3 |
Income Tax Matters - Income (Lo
Income Tax Matters - Income (Loss) Before Income Taxes by Geographic Area (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 48 | $ (44.6) | $ (30.2) |
Foreign | 8.3 | 6.7 | 6.2 |
Income (loss) before income taxes | $ 56.3 | $ (37.9) | $ (24) |
Income Tax Matters - Income Tax
Income Tax Matters - Income Tax (Provision) Benefit (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Federal income tax (expense) benefit | |||
Deferred federal income tax (expense) benefit | $ (11.6) | $ 8.9 | $ 2.1 |
Federal benefit (expense) applied to decrease (increase) AOCI | 2.5 | 1.7 | 3.7 |
Federal income tax (provision) benefit | (9.1) | 10.6 | 5.8 |
Foreign income tax (expense) benefit | |||
Current foreign tax (expense) benefit | (2.2) | (1.1) | (2.4) |
Deferred foreign income tax (expense) benefit | 0.1 | (0.8) | 0.5 |
Foreign benefit (expense) applied to decrease (increase) AOCI | 0.1 | 0.2 | 0.3 |
Foreign income tax (provision) benefit | (2) | (1.7) | (1.6) |
State income tax (expense) benefit | |||
Current state tax (expense) benefit | 0.6 | (2.5) | (3.5) |
Deferred state income tax (expense) benefit | 1 | 1.6 | 4.2 |
State benefit (expense) applied to decrease (increase) AOCI | 0.4 | 0.3 | 0.6 |
State income tax (provision) benefit | 2 | (0.6) | 1.3 |
Total income tax (expense) benefit | |||
Current tax (expense) benefit | (1.6) | (3.6) | (5.9) |
Deferred income tax (expense) benefit | (10.5) | 9.7 | 6.8 |
Benefit (expense) applied to decrease (increase) AOCI | 3 | 2.2 | 4.6 |
Income tax (provision) benefit | $ (9.1) | $ 8.3 | $ 5.5 |
Income Tax Matters - Reconcilia
Income Tax Matters - Reconciliation of Income Tax (Provision) Benefit based on Effective Income Tax Rate and Statutory Tax Rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation between income tax provision and statutory income tax provision: | |||
Amount of federal income tax (provision) benefit based on the statutory rate | $ (11.8) | $ 8 | $ 5 |
Decrease in federal valuation allowances | 0 | 1.1 | 0.2 |
Non-deductible compensation expense | (1.6) | (0.9) | (0.5) |
Non-deductible benefit (expense) | 0.2 | (1) | (0.2) |
State income tax benefit (provision), net of federal benefit | 1.5 | (0.5) | 1 |
Research and development credit | 3.2 | 2.2 | 0.6 |
Foreign income tax expense | (0.3) | (0.3) | (0.3) |
Foreign undistributed earnings | (0.3) | (0.3) | (0.3) |
Income tax (provision) benefit | $ (9.1) | $ 8.3 | $ 5.5 |
Income Tax Matters - Reconcil_2
Income Tax Matters - Reconciliation of Income Tax (Provision) Benefit based on Effective Income Tax Rate and Statutory Tax Rate (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation between income tax provision and statutory income tax provision: | |||
Increase (decrease) in federal valuation allowances | $ 0 | $ (1.1) | $ (0.2) |
State and Local Jurisdiction | |||
Reconciliation between income tax provision and statutory income tax provision: | |||
Increase (decrease) in federal valuation allowances | (1) | 0.1 | 1.6 |
State and tax expense (benefit) before adjustments | 1.4 | (1.1) | (0.7) |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ (1.9) | $ 1.5 | $ 1.3 |
Income Tax Matters - Deferred T
Income Tax Matters - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred income tax assets: | ||
Loss and credit carryforwards | $ 39.6 | $ 47.7 |
Defined benefit plans | 3.6 | 2.9 |
Other assets | 36.8 | 36.3 |
Lease assets | 8.7 | 10.6 |
Inventories | 29.5 | 46.9 |
Excess interest carryforward | 14 | 12.2 |
Research & development capitalization | 16.9 | 8.7 |
Valuation allowances | (2.7) | (3.7) |
Total deferred income tax assets | 146.4 | 161.6 |
Deferred income tax liabilities: | ||
Property, plant and equipment | (142.6) | (147) |
Lease liabilities | (8.7) | (9.3) |
Undistributed foreign earnings | (3) | (2.7) |
Total deferred income tax liabilities | (154.3) | (159) |
Net deferred income tax assets | $ 2.6 | |
Net deferred income tax liabilities | $ (7.9) |
Income Tax Matters - Additional
Income Tax Matters - Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Dec. 20, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Tax Credit Carryforward [Line Items] | |||||
Net operating loss | $ 101,100,000 | ||||
Operating loss expiration period | Dec. 31, 2030 | ||||
Increase (decrease) in valuation allowance | $ (1,000,000) | $ (900,000) | $ (1,800,000) | ||
Global minimum tax rate | 15% | ||||
Gross unrecognized tax benefits | 6,500,000 | 5,000,000 | 4,100,000 | $ 3,800,000 | |
Amount that would be reflected in income tax provision if unrecognized tax benefits are recognized | 6,500,000 | ||||
Accrued interest and penalties on unrecognized tax benefits | 200,000 | 100,000 | |||
Accrued interest and penalties on unrecognized tax benefits, current | 0 | $ 0 | |||
(Decrease) increase in interest and penalties | $ 200,000 | ||||
Research Tax Credit Carryforward | |||||
Tax Credit Carryforward [Line Items] | |||||
Tax credit carryforward | $ 17,400,000 | ||||
Tax credit carryforward expiration period | Dec. 31, 2043 | ||||
State Tax Credit Carryforwards | |||||
Tax Credit Carryforward [Line Items] | |||||
Tax credit carryforward | $ 1,500,000 | ||||
Tax credit carryforward expiration period | Dec. 31, 2047 |
Income Tax Matters - Reconcil_3
Income Tax Matters - Reconciliation of Changes in Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Gross unrecognized tax benefits at beginning of period | $ 5 | $ 4.1 | $ 3.8 |
Gross increases for tax positions of current year | 1.3 | 0.9 | 0.3 |
Gross increases for tax positions of prior years | 0.2 | 0.1 | 0.4 |
Gross decreases for tax positions of prior years | 0 | (0.1) | (0.3) |
Settlements | 0 | 0 | (0.1) |
Gross unrecognized tax benefits at end of period | $ 6.5 | $ 5 | $ 4.1 |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Schedule of Calculation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Numerator: | ||||
Net income (loss) | $ 47.2 | $ (29.6) | $ (18.5) | |
Less: earnings attributable to participating securities | [1] | (0.1) | ||
Net income (loss) available to common shareholders | $ 47.1 | $ (29.6) | $ (18.5) | |
Denominator – Weighted-average common shares outstanding (in thousands): | ||||
Basic | 15,991 | 15,906 | 15,836 | |
Add: dilutive effect of non-vested common shares, restricted stock units and performance shares | [2] | 140 | ||
Diluted | 16,131 | 15,906 | 15,836 | |
Net income (loss) per common share, Basic | $ 2.95 | $ (1.86) | $ (1.17) | |
Net income (loss) per common share, Diluted | $ 2.92 | $ (1.86) | $ (1.17) | |
[1] Represents distributed and undistributed earnings allocated to non-vested RSAs that contain non-forfeitable rights to dividends. Quantities in the following discussion are denoted in wh ole shares. A total of 35,000 non-vested RSUs and performance shares for the year ended December 31, 2023 were excluded from the weighted-average diluted shares computation as their inclusion would have been anti-dilutive. For the years ended December 31, 2022 and December 31, 2021, approximately 139,000 and 213,000 potentially dilutive shares, respectively, were excluded from the computation of net loss per share as their effect would have been anti‑dilutive. |
Net Income (Loss) Per Share -_2
Net Income (Loss) Per Share - Schedule of Calculation of Basic and Diluted Net Income Per Share (Parenthetical) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 35,000 | 139,000 | 213,000 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | ||||
Interest paid | $ 43.8 | $ 45.7 | $ 48.7 | |
Non-cash investing and financing activities (included in Accounts payable): | ||||
Unpaid purchases of property and equipment | 19.3 | 28.9 | 14 | |
Supplemental lease disclosures: | ||||
Operating lease liabilities arising from obtaining operating lease assets | 3.2 | 3.1 | 27.8 | |
Cash paid for amounts included in the measurement of operating lease liabilities | 9.3 | 9.8 | 8.2 | |
Finance lease liabilities arising from obtaining finance lease assets | 10 | 1 | 2.2 | |
Components of cash, cash equivalents and restricted cash: | ||||
Cash and cash equivalents | 82.4 | 57.4 | 303.2 | |
Restricted cash included in Other assets | 18.3 | 13.9 | 13.8 | |
Total cash, cash equivalents and restricted cash presented on our Statements of Consolidated Cash Flows | $ 100.7 | $ 71.3 | $ 317 | $ 794.3 |
Business, Product and Geograp_3
Business, Product and Geographical Area Information and Concentration of Risk - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 Productionfacility Customer | Dec. 31, 2022 USD ($) Customer | Dec. 31, 2021 Customer | |
Segment Reporting Information [Line Items] | |||
Foreign currency transaction loss | $ | $ 0.5 | ||
Workforce Subject to Collective Bargaining Arrangements | Customer Concentration Risk | Employee One | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 65% | ||
Workforce Subject to Collective Bargaining Arrangements Expiring within One Year | Customer Concentration Risk | Employee Two | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 4% | ||
Net sales | Customer Concentration Risk | Largest Customer | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 18% | 19% | 16% |
Number of customers | Customer | 1 | 1 | 1 |
Net sales | Customer Concentration Risk | Second Largest Customer | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 16% | 14% | 15% |
Trade receivables | Customer Concentration Risk | Largest Customer | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 20% | 17% | |
Trade receivables | Customer Concentration Risk | Second Largest Customer | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 13% | 14% | |
Trade receivables | Customer Concentration Risk | Third Largest Customer | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 12% | 13% | |
Domestic | |||
Segment Reporting Information [Line Items] | |||
Number of production facilities | 13 | ||
Canada | |||
Segment Reporting Information [Line Items] | |||
Number of production facilities | 1 |
Business, Product and Geograp_4
Business, Product and Geographical Area Information and Concentration of Risk - Net Sales by End Market Segment Applications (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net sales: | |||
Net sales | $ 3,087 | $ 3,427.9 | $ 2,622 |
Aero/HS products | |||
Net sales: | |||
Net sales | 899.3 | 676.1 | 533.7 |
Packaging | |||
Net sales: | |||
Net sales | 1,315.2 | 1,585.3 | 1,119.3 |
Automotive Extrusions | |||
Net sales: | |||
Net sales | 254.9 | 254.8 | 225 |
GE products | |||
Net sales: | |||
Net sales | 596.5 | 883.8 | 706.1 |
Other products | |||
Net sales: | |||
Net sales | 21.1 | 27.9 | 37.9 |
Transferred at Point in Time | |||
Net sales: | |||
Net sales | 2,394.8 | 2,782.9 | 2,067.9 |
Transferred over Time | |||
Net sales: | |||
Net sales | $ 692.2 | $ 645 | $ 554.1 |
Business, Product and Geograp_5
Business, Product and Geographical Area Information and Concentration of Risk - Schedule of Net Sales, Income Taxes Paid, and Long-lived Assets, by Geographical Area (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | $ 3,087 | $ 3,427.9 | $ 2,622 |
Income taxes paid | 0.5 | 6.3 | 5.6 |
Long-lived assets | 1,052.1 | 1,013.2 | 955.2 |
Domestic | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 2,986 | 3,328.2 | 2,545 |
Income taxes paid | 0.3 | 3.1 | 4.5 |
Long-lived assets | 1,025.3 | 984.8 | 925.3 |
Foreign | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 101 | 99.7 | 77 |
Income taxes paid | 0.2 | 3.2 | 1.1 |
Long-lived assets | $ 26.8 | $ 28.4 | $ 29.9 |
Business, Product and Geograp_6
Business, Product and Geographical Area Information and Concentration of Risk - Schedule of Export Sales and Primary Aluminum Supply from Major Suppliers (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Export Sales | Geographic Concentration Risk | Supplier | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10% | 10% | 10% |
Aluminum | Supplier Concentration Risk | Top Five Major Suppliers | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 83% | 81% | 78% |
Aluminum | Supplier Concentration Risk | Largest Supplier | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 37% | 48% | 47% |
Aluminum | Supplier Concentration Risk | Second and Third Largest Suppliers | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 28% | 20% | 20% |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Jan. 11, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Subsequent Event [Line Items] | ||||
Cash dividends declared (in dollars per share) | $ 3.08 | $ 3.08 | $ 2.88 | |
Cash dividends and dividend equivalents paid | $ 50.4 | $ 50.1 | $ 46.7 | |
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Cash dividends declared (in dollars per share) | $ 0.77 | |||
Cash dividends and dividend equivalents paid | $ 12.6 | |||
Cash dividends, declared date | Jan. 11, 2024 | |||
Cash dividends, payable date | Feb. 15, 2024 | |||
Cash dividends, record date | Jan. 25, 2024 |