Document and Entity Information (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Feb. 16, 2011
Document And Entity Information Abstract
Entity Registrant Name	KAISER ALUMINUM CORPORATION
Entity Central Index Key	0000811596
Document Type	10-K
Document Period End Date	Dec. 31, 2010
Amendment Flag	false
Document Fiscal Year Focus	2010
Document Fiscal Period Focus	Q4
Current Fiscal Year End Date	--12-31
Entity Well Known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float	$ 0.5
Entity Common Stock, Shares Outstanding		19,214,451

Consolidated Balance Sheets (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Current assets:
Cash and cash equivalents	$ 135.6	$ 30.3
Receivables:
Trade, less allowance for doubtful receivables of $0.6 at December 31, 2010 and $0.8 at December 31, 2009, respectively	83.0	83.7
Due from affiliate		0.2
Other	5.2	2.2
Inventories	167.5	125.2
Prepaid expenses and other current assets	80.1	59.1
Total current assets	471.4	300.7
Property, plant, and equipment - net	354.1	338.9
Net asset in respect of VEBAs	195.7	127.5
Deferred tax assets - net	231.1	277.2
Intangible assets, net	4.0
Goodwill	3.1
Other assets	83.0	41.2
Total	1,342.4	1,085.5
Current liabilities:
Accounts payable	50.8	49.0
Accrued salaries, wages, and related expenses	31.1	33.1
Other accrued liabilities	42.0	32.1
Payable to affiliate	17.1	9.0
Long-term debt-current portion	1.3
Total current liabilities	142.3	123.2
Net liability in respect of VEBA		0.3
Long-term liabilities	134.7	53.7
Cash convertible senior notes	141.4
Other long-term debt	11.8	7.1
Total Liabilities	430.2	184.3
Commitments and contingencies - Note 13
Stockholders' equity:
Common stock, par value $0.01, 90,000,000 shares authorized at both December 31, 2010 and December 31, 2009; 19,214,451 shares issued and outstanding at December 31, 2010 and 20,276,571 shares issued and outstanding at December 31, 2009	0.2	0.2
Additional capital	987.1	967.8
Retained earnings	80.1	85.0
Common stock owned by Union VEBA subject to transfer restrictions, at reorganization value, 3,523,980 shares at December 31, 2010 and 4,845,465 shares at December 31, 2009	(84.6)	(116.4)
Treasury stock, at cost, 1,724,606 shares at December 31, 2010 and 572,706 shares at December 31, 2009	(72.3)	(28.1)
Accumulated other comprehensive loss	1.7	(7.3)
Total stockholders' equity	912.2	901.2
Total	$ 1,342.4	$ 1,085.5

Consolidated Balance Sheets (Parenthetical) (USD $) In Millions, except Share data, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009
Receivables:
Allowance for doubtful receivables	$ 0.6	$ 0.8
Stockholders' equity:
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	90,000,000	90,000,000
Common stock, shares issued	19,214,451	20,276,571
Common stock, shares outstanding	19,214,451	20,276,571
Common stock owned by Union VEBA, shares	3,523,980	4,845,465
Treasury stock, shares	1,724,606	572,706

Statements of Consolidated Income (Loss) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Net sales	$ 1,079.1	$ 987.0	$ 1,508.2
Cost of products sold:
Cost of products sold, excluding depreciation, amortization, and other items	946.8	766.4	1,400.7
Lower of cost or market inventory write-down		9.3	65.5
Impairment of investment in Anglesey		1.8	37.8
Restructuring costs and other (benefits) charges	(0.3)	5.4	8.8
Depreciation and amortization	19.8	16.4	14.7
Selling, administrative, research and development, and general	64.4	69.9	73.1
Other operating charges (benefits), net	4.0	(0.9)	(1.4)
Total costs and expenses	1,034.7	868.3	1,599.2
Operating income (loss)	44.4	118.7	(91.0)
Other (expense) income:
Interest expense	(11.8)		(1.0)
Other (expense) income, net	(4.2)	(0.1)	0.7
Income (loss) before income taxes	28.4	118.6	(91.3)
Income tax (provision) benefit	(14.3)	(48.1)	22.8
Net income (loss)	$ 14.1	$ 70.5	$ (68.5)
Earnings per share, Basic - Note 1, 15:
Net income (loss) per share	$ 0.72	$ 3.51	$ (3.45)
Earnings per share, Diluted - Note 1, 15:
Net income (loss) per share	$ 0.72	$ 3.51	$ (3.45)
Weighted-average number of common shares outstanding (000):
Basic	19,377	19,639	19,980
Diluted	19,377	19,639	19,980

Statements of Consolidated Stockholders Equity and Comprehensive Income (Loss) (USD $) In Millions, except Share data	Total	Common Stock	Additional Paid In Capital	Retained Earnings	Common Stock Owned By Union Subject To Transfer Restriction [Member]	Treasury Stock	Accumulated Other Comprehensive Income (Loss)
Beginning balance at Dec. 31, 2007	$ 942.8	$ 0.2	$ 948.9	$ 116.1	$ (116.4)		$ (6.0)
Beginning balance, shares at Dec. 31, 2007		20,580,815
Net income (loss)	(68.5)			(68.5)
Tax effect of prior year pension adjustments			(0.7)				0.7
Net actuarial gain (loss) arising during period (net of tax of $(4.4), $(43.2) and $34.3, in 2010, 2009 and 2008, respectively)	(55.4)						(55.4)
Prior service cost arising during the period (net of tax of $0, $12.2 and $3.4 in 2010, 2009 and 2008, respectively)	(5.5)						(5.5)
Less: amortization of net actuarial gain/loss (net of tax of $0.2, $(1.4) and $(0.1) in 2010, 2009 and 2008, respectively)	0.2						0.2
Less: amortization of prior service cost (net of tax of $(1.6), $(0.6) and $(0.3) in 2010, 2009 and 2008, respectively)	0.5						0.5
Foreign currency translation adjustment, net of tax of $0 in 2010, 2009 and 2008	5.2						5.2
Comprehensive income	(123.5)
Recognition of pre-emergence tax benefits in accordance with fresh start accounting	1.9		1.9
Equity Compensation recognized by an unconsolidated affiliate (net of tax of $0.1 in 2008)	(0.1)		(0.1)
Capital distibution by unconsolidated affiliate to its parent company (net of tax of $0 and $0.6 in 2009 and 2008), respectively)	(0.9)		(0.9)
Issuance of non-vested shares to employees		52,970
Issuance of common shares to directors	0.2		0.2
Issuance of common shares to directors		3,689
Issuance of common shares to employees upon vesting of restricted stock units and performance shares		1,521
Cancellation of employee non-vested shares		(9,953)
Cancellation of shares to cover employees' tax witholdings upon vesting of non-vested shares	(0.7)		(0.7)
Cancellation of shares to cover employees' tax witholdings upon vesting of non-vested shares		(11,423)
Repurchase of common stock	(28.1)					(28.1)
Repurchase of common stock		(572,706)
Cash dividends on common stock ($0.96, $0.96 and $0.66 per share in 2010, 2009 and 2008, respectively)	(13.5)			(13.5)
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest	0.1		0.1
Amortization of unearned equity compensation	9.9		9.9
Ending balance at Dec. 31, 2008	788.1	0.2	958.6	34.1	(116.4)	(28.1)	(60.3)
Ending balance, shares at Dec. 31, 2008		20,044,913
Net income (loss)	70.5			70.5
Net actuarial gain (loss) arising during period (net of tax of $(4.4), $(43.2) and $34.3, in 2010, 2009 and 2008, respectively)	71.4						71.4
Prior service cost arising during the period (net of tax of $0, $12.2 and $3.4 in 2010, 2009 and 2008, respectively)	(20.2)						(20.2)
Less: amortization of net actuarial gain/loss (net of tax of $0.2, $(1.4) and $(0.1) in 2010, 2009 and 2008, respectively)	2.4						2.4
Less: amortization of prior service cost (net of tax of $(1.6), $(0.6) and $(0.3) in 2010, 2009 and 2008, respectively)	0.9						0.9
Foreign currency translation adjustment, net of tax of $0 in 2010, 2009 and 2008	(1.5)						(1.5)
Comprehensive income	123.5
Capital distibution by unconsolidated affiliate to its parent company (net of tax of $0 and $0.6 in 2009 and 2008), respectively)	(0.1)		(0.1)
Issuance of non-vested shares to employees		196,829
Issuance of common shares to employees in lieu of cash bonus	0.3		0.3
Issuance Of common shares in lieu of cash bonus, shares		15,674
Issuance of common shares to directors	0.1		0.1
Issuance of common shares to directors		3,734
Issuance of common shares to employees upon vesting of restricted stock units and performance shares		21,089
Cancellation of employee non-vested shares		(5,668)
Cash dividends on common stock ($0.96, $0.96 and $0.66 per share in 2010, 2009 and 2008, respectively)	(19.6)			(19.6)
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest	(0.1)		(0.1)
Amortization of unearned equity compensation	9.0		9.0
Ending balance at Dec. 31, 2009	901.2	0.2	967.8	85.0	(116.4)	(28.1)	(7.3)
Ending balance, shares at Dec. 31, 2009	20,276,571	20,276,571
Net income (loss)	14.1			14.1
Net actuarial gain (loss) arising during period (net of tax of $(4.4), $(43.2) and $34.3, in 2010, 2009 and 2008, respectively)	7.0						7.0
Prior service cost arising during the period (net of tax of $0, $12.2 and $3.4 in 2010, 2009 and 2008, respectively)
Less: amortization of net actuarial gain/loss (net of tax of $0.2, $(1.4) and $(0.1) in 2010, 2009 and 2008, respectively)	(0.2)						(0.2)
Less: amortization of prior service cost (net of tax of $(1.6), $(0.6) and $(0.3) in 2010, 2009 and 2008, respectively)	2.6						2.6
Unrealized gain on available for sale securities (net of tax of $0 in 2010)	0.1						0.1
Foreign currency translation adjustment, net of tax of $0 in 2010, 2009 and 2008	(0.5)						(0.5)
Comprehensive income	23.1
Sale of Union VEBA shares by the Union VEBA (net of tax of $19.6 in 2010)	32.5		0.7
Issuance of warrants	14.3		14.3
Issuance of non-vested shares to employees		97,931
Issuance of common shares to directors	0.2		0.2
Issuance of common shares to directors		4,612
Issuance of common shares to employees upon vesting of restricted stock units and performance shares		4,934
Cancellation of employee non-vested shares		(5,968)
Cancellation of shares to cover employees' tax witholdings upon vesting of non-vested shares	(0.4)		(0.4)
Cancellation of shares to cover employees' tax witholdings upon vesting of non-vested shares		(11,729)
Repurchase of common stock	(44.2)					(44.2)
Repurchase of common stock		(1,151,900)
Cash dividends on common stock ($0.96, $0.96 and $0.66 per share in 2010, 2009 and 2008, respectively)	(19.0)			(19.0)
Amortization of unearned equity compensation	4.5		4.5
Ending balance at Dec. 31, 2010	$ 912.2	$ 0.2	$ 987.1	$ 80.1	$ (84.6)	$ (72.3)	$ 1.7
Ending balance, shares at Dec. 31, 2010	19,214,451	19,214,451

Statements of Consolidated Stockholders Equity and Comprehensive Income (Loss) (Parenthetical) (USD $) In Millions, except Per Share data (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Additional Paid In Capital
Tax effect of sale of Union VEBA shares by the Union VEBA	$ 19.6
Tax effect of equity compensation recognized by unconsol affiliate			0.1
Tax effect of capital distribution by unconsolidated affliate to its parent company			0.6
Retained Earnings
Cash dividends declared on common stock (per share)	$ 0.96	$ 0.96	$ 0.66
Accumulated Other Comprehensive Income (Loss)
Tax effect of net actuarial gain (loss) arising during period	(4.4)	(43.2)	34.3
Tax effect of prior service cost arising during the period		12.2	3.4
Tax effect of amortization of net actuarial gain/loss	0.2	(1.4)	(0.1)
Tax effect of amortization of prior service cost	(1.6)	(0.6)	(0.3)
Tax effect of foreign currency translation adjustment

Consolidated Cash Flows (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Cash flows from operating activities:
Net income	$ 14.1	$ 70.5	$ (68.5)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation of property, plant and equipment	19.5	16.4	14.7
Amortization of definite-lived intangible assets	0.3
Amortization of debt discount and debt issuance costs	4.5		0.2
Deferred income taxes	14.5	47.3	(31.0)
Excess tax deficiency (benefit) upon vesting of non-vested shares and dividend payment on unvested shares expected to vest		0.1	(0.1)
Non-cash equity compensation	4.7	9.1	10.1
Net non-cash LIFO charges and lower of cost or market inventory write-down	16.5	18.0	57.7
Non-cash unrealized losses (gains) on derivative positions	5.5	(80.5)	87.1
Amortization of option premiums	1.8	5.5
Non-cash impairment charges	4.6	2.3	42.1
Equity in (income) loss of unconsolidated affiliate, net of distributions		(1.9)	1.8
Losses (gains) on disposition of property, plant and equipment	0.1	0.1	(0.1)
Other non-cash changes in assets and liabilities	1.0	5.5	(0.3)
Changes in operating assets and liabilities, net of effect of acquisition:
Trade and other receivables	(1.2)	30.1	(13.2)
Receivable from affiliate	0.2	11.6	(2.3)
Inventories (excluding LIFO charges (benefits) and lower of cost or market write-down)	(56.3)	29.1	(22.7)
Prepaid expenses and other current assets	(0.9)	(2.0)	(7.0)
Accounts payable	4.2	(2.5)	(18.9)
Accrued liabilities	0.4	(19.8)	7.1
Payable to affiliate	8.1	(18.5)	8.9
Accrued income taxes			(0.4)
Long-term assets and liabilities, net	24.7	7.3	(18.3)
Net cash provided by operating activities	66.3	127.7	46.9
Cash flows from investing activities:
Capital expenditures	(38.9)	(59.2)	(93.2)
Purchase of available for sale securities	(4.4)
Net proceeds from dispositions of manufacturing facility and related assets	4.8
Net proceeds from dispositions of property, plant and equipment			1.6
Cash payment for acquisition of manufacturing facility and related assets	(9.0)
Change in restricted cash	1.1	18.5	(20.9)
Net cash used in investing activities	(46.4)	(40.7)	(112.5)
Cash flows from financing activities:
Proceeds from issuance of cash convertible senior notes	175.0
Cash paid for financing costs in connection with issuance of cash convertible senior notes	(5.9)
Purchase of call option in connection with issuance of cash convertible senior notes	(31.4)
Proceeds from issuance of warrants	14.3
Repayment of promissory note - current portion	(0.7)
Borrowings under note payable			7.0
Borrowings under the revolving credit facility		111.6	171.5
Repayment of borrowings under the revolving credit facility		(147.6)	(135.5)
Cash paid for financing costs in connection with the revolving credit facility	(2.7)	(1.2)
Excess tax (deficiency) benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest		(0.1)	0.1
Retirement of common stock			(0.7)
Repurchase of common stock	(44.2)		(28.1)
Cash dividend paid to stockholders	(19.0)	(19.6)	(17.2)
Net cash provided by (used in) financing activities	85.4	(56.9)	(2.9)
Net increase (decrease) in cash and cash equivalents during the period	105.3	30.1	(68.5)
Cash and cash equivalents at beginning of period	30.3	0.2	68.7
Cash and cash equivalents at end of period	$ 135.6	$ 30.3	$ 0.2

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2010

General Policies Abstract

Summary of Significant Accounting Policies

1. Summary of Significant Accounting Policies

Principles of Consolidation and Basis of Presentation. The consolidated financial statements consolidate the financial statements of the Company and its wholly owned subsidiaries and are prepared in accordance with United States generally accepted accounting principles (“US GAAP”). Intercompany balances and transactions are eliminated. See Note 3 for a description of the Company's accounting for its 49%, non-controlling ownership interest in Anglesey Aluminium Limited (“Anglesey”). References to specific US GAAP in this Report cite topics within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”).

Use of Estimates in the Preparation of Financial Statements. The preparation of financial statements in accordance with US 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 the Company's 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 the Company's consolidated financial position and results of operations.

Recognition of Sales. Sales are generally recognized on a gross basis when title, ownership and risk of loss pass to the buyer and collectability is reasonably assured. In connection with Anglesey's remelt operations, which commenced in the fourth quarter of 2009, the Company substantially reduced or eliminated its risks with respect to inventory loss and fluctuations in metal prices and foreign currency exchange rates. In the fourth quarter of 2009, the Company in substance began to act as an agent in connection with sales of secondary aluminum produced by Anglesey and, consequently, the Company's sales of such secondary aluminum are presented net of cost of sales.

A provision for estimated sales returns from, and allowances to, customers is made in the same period as the related revenues are recognized, based on historical experience or the specific identification of an event necessitating a reserve.

From time to time, in the ordinary course of business, the Company may enter into agreements with customers in which the Company, in return for a fee, agrees to reserve certain amounts of its existing production capacity to the customer, defer an existing customer purchase commitment into future periods and reserve certain amounts of its expected production capacity in those periods to the customer, or cancel or reduce existing commitments under existing contracts. These agreements may have terms or impact periods exceeding one year.

Certain of the capacity reservation and commitment deferral agreements provide for periodic, such as quarterly or annual, billing for the duration of the contract. For capacity reservation agreements, the Company recognizes revenue ratably over the period of the capacity reservation. Accordingly, the Company may recognize revenue prior to billing reservation fees. At December 31, 2010 and December 31, 2009, the Company had $1.1 and $0.3 of unbilled receivables, respectively, included within Trade receivables on the Company's Consolidated Balance Sheets. For commitment deferral agreements, the Company recognizes revenue upon the earlier occurrence of the related sale of product or the end of the commitment period. In connection with other agreements, the Company may collect funds from customers in advance of the periods for which (i) the production capacity is reserved, (ii) commitments are deferred, (iii) commitments are reduced or (iv) performance is completed, in which event the recognition of revenue is deferred until such time as the fee is earned. Any unearned fees are included within Other accrued liabilities or Long-term liabilities, as appropriate, on the Company's Consolidated Balance Sheets (see Note 6). At December 31, 2010 and December 31, 2009, the Company had total deferred revenues of $24.0 and $15.5, respectively, relating to these agreements. Such deferred revenue is included within Other accrued liabilities or Long-term liabilities, as appropriate, on the Company's Consolidated Balance Sheets (see Note 6).

Earnings per Share. ASC Topic 260, Earnings Per Share, defines unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) as participating securities and requires inclusion of such securities in the computation of earnings per share pursuant to the two-class method. Topic 260 mandates the application of the foregoing principles to all financial statements issued for fiscal years beginning after December 2008 and requires retrospective application. Upon adoption, the Company retrospectively adjusted its earnings per share data, resulting in a $0.02 per share reduction in both the basic and diluted earnings per common share for 2008.

Basic earnings per share is computed by dividing distributed and undistributed earnings allocable to common shares by the weighted-average number of common shares outstanding during the applicable period. The basic weighted-average number of common shares outstanding during the period excludes unvested share-based payment awards. The shares owned by a voluntary employee's beneficiary association (“VEBA”) for the benefit of certain union retirees, their surviving spouses and eligible dependents (the “Union VEBA”) that are subject to transfer restrictions, while treated in the Consolidated Balance Sheets as being similar to treasury stock (i.e., as a reduction in Stockholders' equity), are included in the computation of basic weighted-average number of common shares outstanding because such shares were irrevocably issued and have full dividend and voting rights. Diluted earnings per share is calculated as the more dilutive result of computing earnings per share under: (i) the treasury stock method or (ii) the two-class method (see Note 15).

Stock-Based Compensation. Stock based compensation is provided to certain employees, directors and a director emeritus, and is accounted for at fair value, pursuant to the requirements of ASC Topic 718, Compensation – Stock Compensation. The Company measures 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 fair value of awards provided to the director emeritus is not material. The cost of an award is recognized as an expense over the requisite service period of the award on a straight-line basis. The Company has elected to amortize compensation expense for equity awards with graded vesting using the straight-line method. The Company recognized compensation expense for 2010, 2009 and 2008 of $3.7, $8.2, and $9.9 respectively, in connection with vested awards and non-vested stock, restricted stock units and stock options (see Note 12).

The Company grants performance shares to executive officers and other key employees. These awards are subject to performance requirements pertaining to the Company's economic value added (“EVA”) performance, measured over a three-year performance period. The EVA is a measure of the excess of the Company's adjusted pre-tax operating income for a particular year over a pre-determined percentage of the adjusted net assets of the immediately preceding year, as defined in the 2008-2010, 2009-2011 and 2010-2012 Long-Term Incentive (“LTI”) programs. The number of performance shares, if any, that will ultimately vest and result in the issuance of common shares depends on the average annual EVA achieved for the specified three-year performance periods. The fair value of performance-based awards is measured based on the most probable outcome of the performance condition, which is estimated quarterly using the Company's forecast and actual results. The Company expenses the fair value, after assuming an estimated forfeiture rate, over the specified three-year performance periods on a ratable basis. The Company recognized compensation expense for 2010, 2009 and 2008 of $0.8, $0.9, and $0.2 respectively, in connection with the performance shares.

Acquisition, Goodwill and Intangible Assets. Acquisitions are accounted for in accordance with ASC Topic 805, Business Combinations (“ASC 805”). The Company recognizes assets acquired and liabilities assumed, including assets acquired and liabilities assumed arising from contractual contingencies at the acquisition date, at their respective estimated fair values. The Company recognizes goodwill as of the acquisition date as a residual over the fair values of the identifiable net assets acquired. Acquisition-related costs are expensed directly in the period in which they are incurred and are included in Selling, administrative, research and development, and general in the Statements of Consolidated Income.

Goodwill is tested for impairment on an annual basis during the third quarter, as well as on an interim basis, as warranted, at the time of events and changes in circumstances. Intangible assets with definite lives are initially recognized at fair value and will be 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, the Company uses 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 will be reviewed for impairment. The weighted-average estimated useful life of the Company's intangible assets is 18 years (see Note 9).

Environmental Contingencies. With respect to environmental loss contingencies, the Company records a loss contingency whenever such contingency is probable and reasonably estimable. Accruals for estimated losses from environmental remediation obligations are generally recognized no later than completion of the remedial feasibility study. Such accruals are adjusted as further information develops or circumstances change. Costs of future expenditures for environmental remediation obligations are not discounted to their present value. Environmental expense relating to continuing operations is included in Cost of products sold, excluding depreciation, amortization and other items in the Statement of Consolidated Income. Environmental expense relating to discontinued operations is included in Selling, administrative, research and development, and general in the Statement of Consolidated Income.

Restructuring Costs and Other Charges. Restructuring costs and other charges include employee severance and benefit costs, impairment of owned equipment to be disposed of, and other costs associated with exit and disposal activities. The Company applies the provisions of ASC Topic 420, Exit or Disposal Cost Obligations, to account for obligations arising from such activities. Severance and benefit costs incurred in connection with exit activities are recognized when the Company's management with the proper level of authority has committed to a restructuring plan and communicated those actions to employees. For owned facilities and equipment, impairment losses recognized are based on the fair value less costs to sell, with fair value estimated based on existing market prices for similar assets. Other exit costs include costs to consolidate facilities or close facilities, terminate contractual commitments and relocate employees. A liability for such costs is recorded at its fair value in the period in which the liability is incurred. At each reporting date, the Company evaluates its accruals for exit costs and employee separation costs to ensure the accruals are still appropriate. During 2010, 2009 and 2008, the Company recorded $(0.3), $5.4 and $8.8, respectively, of restructuring costs and other (benefits) charges relating to employee termination and other personnel costs, and contract termination and other facility-related activities, in connection with the Company's closure of its Tulsa, Oklahoma extrusion facility, reductions of operations at its Bellwood, Virginia facility, and reduction of personnel in other locations (see Note 17).

Other (Expense) Income, net. Amounts included in Other (expense) income in 2010, 2009 and 2008 included the following:

	Year Ended December 31, 2010		Year Ended December 31, 2009		Year Ended December 31, 2008
Interest income	$	0.3	$	0.1	$	1.7
Unrealized loss on financial derivatives¹		(4.9)		-		-
All other, net		0.4		(0.2)		(1.0)
	$	(4.2)	$	(0.1)	$	0.7
__________________________
¹See "Derivative Financial Instruments" below, for a discussion of accounting policy for such instruments.

Income Taxes. Deferred income taxes reflect the future tax effect of temporary differences between the carrying amount of assets and liabilities for financial and income tax reporting and are measured by applying statutory tax rates in effect for the year during which the differences are expected to reverse. In accordance with ASC Topic 740, Income Taxes, the Company uses a “more likely than not” threshold for recognition of tax attributes that are subject to uncertainties and measures any reserves in respect of such expected benefits based on their probability. Deferred tax assets are reduced by a valuation allowance to the extent it is more likely than not that the deferred tax assets will not be realized (see Note 10).

Cash and Cash Equivalents. The Company considers only those short-term, highly liquid investments with original maturities of 90 days or less when purchased to be cash equivalents. The Company's cash equivalents consist primarily of funds in savings accounts, demand notes, money market accounts and other highly liquid investments, which are classified within Level 1 of the fair value hierarchy. Cash equivalents at December 31, 2010 and 2009 were $30.1 and $29.4, respectively.

Restricted Cash. The Company is required to keep certain amounts on deposit relating to workers' compensation and other agreements. Such amounts totaled $17.2 and $18.3 at December 31, 2010 and December 31, 2009, respectively. Of the restricted cash balance, $0.9 and $0.9 were considered short-term and included in Prepaid expenses and other current assets on the Consolidated Balance Sheets at December 31, 2010 and December 31, 2009, respectively, and $16.3 and $17.4 were considered long-term and included in Other assets on the Consolidated Balance Sheets at December 31, 2010 and December 31, 2009, respectively. There were no margin call deposits with the Company's derivative financial instrument counterparties in restricted cash at December 31, 2010 and 2009.

Trade Receivables and Allowance for Doubtful Accounts. Trade receivables primarily consist of amounts billed to customers for products sold. Accounts receivable are generally due within 30 days. For the majority of its receivables, the Company establishes an allowance for doubtful accounts based upon collection experience and other factors. On certain other receivables where the Company is aware of a specific customer's inability or reluctance to pay, an allowance for doubtful accounts is established against amounts due, to reduce the net receivable balance to the amount the Company reasonably expects to collect. However, if circumstances change, the Company's estimate of the recoverability of accounts receivable could be different. Circumstances that could affect the Company's 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.

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. Other inventories, principally operating supplies and repair and maintenance parts, are stated at average cost. 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).

Shipping and Handling Costs. Shipping and handling costs are recorded as a component of Cost of products sold excluding depreciation, amortization and other items.

Advertising Costs. Advertising costs, which are included in Selling, administrative, research and development, and general, are expensed as incurred. Advertising costs for 2010, 2009 and 2008 were $0.3, $0.4, and $0.3, respectively.

Research and Development Costs. Research and development costs, which are included in Selling, research and development, and general, are expensed as incurred. Research and development costs for 2010, 2009 and 2008, were $4.9, $4.4, and $4.8, respectively.

Depreciation. Depreciation is computed using the straight-line method at rates based on the estimated useful lives of the various classes of assets. The principal estimated useful lives, are as follows (in years):

Land improvements............................................................................... 3 - 25

Buildings............................................................................................ 15 - 45

Machinery and equipment....................................................................... 1 - 24

Depreciation expense relating to Fabricated Products is not included in Cost of products sold, excluding depreciation, amortization and other items, but is included in Depreciation and amortization on the Statements of Consolidated Income (Loss). Depreciation expense is not adjusted when assets are temporarily idled. Property, plant and equipment held for future development are presented as idled assets. Such assets are evaluated for impairment on a held-and-used basis.

Major Maintenance Activities. All of the major maintenance costs are accounted for using the direct expensing method.

Leases. For leases that contain predetermined fixed escalations of the minimum rent, the Company recognizes the related rent expense on a straight-line basis from the date it takes possession of the property to the end of the initial lease term. The Company records any difference between the straight-line rent amounts and the amount payable under the lease as part of deferred rent, in Other accrued liabilities or Long-term liabilities, as appropriate. Deferred rent for all periods presented was not material.

Capitalization of Interest. Interest related to the construction of qualifying assets is capitalized as part of the construction costs. The aggregate amount of interest capitalized is limited to the interest expense incurred in the period.

Deferred Financing Costs. Costs incurred to obtain debt financing are deferred and amortized over the estimated term of the related borrowing. Such amortization is included in Interest expense which could be capitalized as part of construction in progress. Deferred financing costs included in other assets at December 31, 2010 and 2009 were $7.7 and $1.1, respectively.

Foreign Currency. One of the Company's foreign subsidiaries uses the local currency as its functional currency, its assets and liabilities are translated at exchange rates in effect at the balance sheet date; and its statement of operations is translated at weighted-average monthly rates of exchange prevailing during the year. Resulting translation adjustments are recorded directly to a separate component of stockholders' equity in accordance with ASC Topic 830, Foreign Currency Matters. Where the U.S. dollar is the functional currency of a foreign facility or subsidiary, re-measurement adjustments are recorded in Other income (expense). At both December 31, 2010 and December 31, 2009, the amount of translation adjustment relating to the foreign subsidiary using local currency as its functional currency was immaterial.

Derivative Financial Instruments. Hedging transactions using derivative financial instruments are primarily designed to mitigate the Company's exposure to changes in prices for certain of the products which the Company sells and consumes and, to a lesser extent, to mitigate the Company's exposure to changes in foreign currency exchange rates. From time-to-time, the Company also enters into hedging arrangements in connection with financing transactions to mitigate financial risks.

The Company does not utilize derivative financial instruments for trading or other speculative purposes. The Company's derivative activities are initiated within guidelines established by management and approved by the Company's Board of Directors. Hedging transactions are executed centrally on behalf of all of the Company's business units to minimize transaction costs, monitor consolidated net exposures and allow for increased responsiveness to changes in market factors.

On March 29, 2010, the Company issued $175.0 aggregate principal amount of 4.5% cash convertible senior notes due 2015 (the “Notes”). The Notes may be settled only in cash. The cash conversion feature of the Notes requires bifurcation from the Notes according to ASC Topic 815, Derivatives and Hedging (“ASC 815”). The Company accounts for such cash conversion feature (“Bifurcated Conversion Feature”) as a derivative liability. In connection with the issuance of the Notes, the Company purchased cash-settled call options relating to its common stock (the “Call Options”) to hedge against potential cash payments that could result from the conversion of the Notes. The Call Options are accounted for as derivative assets, as they meet the definition of a derivative under ASC 815 (Notes 7 and 14).

The Company recognizes all derivative instruments as assets or liabilities in its balance sheet and measures these instruments at fair value by “marking-to-market” all of its hedging positions at each period-end (Note 14). The Company does not meet the documentation requirements for hedge (deferral) accounting under ASC 815. Unrealized and realized gains and losses associated with hedges of operational risks are reflected as a reduction or increase in Cost of products sold, excluding depreciation, amortization and other items. Unrealized and realized gains and losses relating to hedges of financing transactions are reflected as a component of Other income (expense).

Concentration of Credit Risk. Financial arrangements which potentially subject the Company to concentrations of credit risk consist of metal, currency, and natural gas derivative contracts, the Call Options, and arrangements related to its cash equivalents. If the market value of the Company's net commodity and currency derivative positions with certain counterparties exceeds a specified threshold, if any, the counterparty is required to transfer cash collateral in excess of the threshold to the Company. Conversely, if the market value of these net derivative positions falls below a specified threshold, the Company is required to transfer cash collateral below the threshold to certain counterparties. At both December 31, 2010 and December 31, 2009, the Company had no margin deposits with or from its counterparties.

The Company is exposed to credit loss in the event of nonperformance by counterparties on derivative contracts used in hedging activities as well as failure of counterparties to return cash collateral previously transferred to the counterparties. The counterparties to the Company's derivative contracts are major financial institutions, and the Company does not expect to experience nonperformance by any of its counterparties.

The Company places its cash in bank deposits and money market funds with high credit quality financial institutions which invest primarily in commercial paper and time deposits of prime quality, short-term repurchase agreements, and U.S. government agency notes. The Company has not experienced losses on its temporary cash investments.

Conditional Asset Retirement Obligations (“CAROs”). The Company has CAROs at several of its fabricated products facilities. The vast majority of such CAROs 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, roofs, ceilings or piping) of certain of the Company's older facilities if such facilities were to undergo major renovation or be demolished. The Company, in accordance with ASC Topic 410, Asset Retirement and Environmental Obligations, estimates incremental costs for special handling, removal and disposal costs of materials that may or will give rise to CAROs and then discounts the expected costs back to the current year using a credit-adjusted, risk-free rate. The Company recognizes liabilities and costs for CAROs even if it is unclear when or if CAROs may/will be triggered. When it is unclear when or if CAROs will be triggered, the Company uses probability weighting for possible timing scenarios to determine the probability-weighted amounts that should be recognized in the Company's financial statements.

Realization of Excess Tax Benefits. Beginning on January 1, 2008, the Company made an accounting policy election to follow the tax law ordering approach in assessing the realization of excess tax benefits related to stock-based awards. Under the tax law ordering approach, realization of excess tax benefits is determined based on the ordering provisions of the tax law. Current year deductions, which include the tax benefits from current year stock-based award activities, are used first before using the Company's net operating loss (“NOL”) carryforwards from prior years. Under this method, Additional capital would be credited when an excess tax benefit is realized, creating an additional paid-in-capital pool, to absorb potential future tax deficiencies resulting from stock-based award activities.

Fair Value Measurement. The Company applies the provisions of ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”), in measuring the fair value of its derivative contracts (Note 14), plan assets invested by certain of the Company's employee benefit plans (Note 11) and its Notes (Note 7).

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a fair value hierarchy that distinguishes between (i) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (ii) an entity's own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

• Level 1 — Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

• Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means.

• Level 3 — Inputs that are both significant to the fair value measurement and unobservable.

New Accounting Pronouncements. In December 2010, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2010-29, Business Combinations, Disclosure of Supplementary Pro Forma Information for Business Combinations (“ASU 2010-29”), which provides clarification regarding pro forma revenue and earnings disclosure requirements for business combinations. The amendments in this ASU specify that if a public entity presents comparative financial statements, the entity should disclose only revenue and earnings of the combined entity as though the business combination(s) that occurred during the current year had occurred as of the beginning of the comparable prior annual reporting period. The amendments also expand the supplemental pro forma disclosures to include a description of the nature and amount of material, nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings. The amendments are effective prospectively for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2010. Early adoption is permitted. The Company expects to adopt ASU 2010-29 during the first interim reporting period of 2011 as it relates to pro-forma disclosure of the Company's acquisition of assets from Alexco, L.L.C. (“Alexco”) effective January 1, 2011 (see Note 19). The Company does not expect the adoption of ASU 2010-29 to have a material impact on its consolidated financial statements.

ASU No. 2010-06, Fair Value Measurements and Disclosures—Improving Disclosures about Fair Value Measurements (“ASU 2010-06”) was issued in January 2010. This ASU amends ASC Subtopic 820-10, Fair Value Measurements and Disclosures—Overall, to require new disclosures regarding transfers in and out of Level 1 and Level 2, as well as activity in Level 3, fair value measurements. ASU 2010-06 became effective for financial statements issued by the Company for interim and annual periods beginning after December 15, 2009, except for disclosures relating to purchases, sales, issuances, and settlements in the roll-forward of activity in Level 3 fair value measurements, which are effective for fiscal years beginning after December 15, 2010. The Company adopted during 2010 the applicable provisions of ASU 2010-06, which did not have a material impact on the disclosures in its consolidated financial statements. The Company does not expect the adoption of the provisions of ASU 2010-06 relating to increased disclosure of activity in Level 3 fair value measurements to have a material impact on the disclosures in its consolidated financial statements.

ASU No. 2010-20, Receivables (Topic 310) — Disclosure about the Credit Quality of Financing Receivables and the Allowance for Credit Losses (“ASU 2010-20”) was issued in July 2010. This ASU amends existing disclosure requirements and requires additional disclosure regarding financing receivables (other than short-term trade receivables or receivables measured at fair value or lower of cost or fair value), including: (i) credit quality indicators of financing receivables at the end of the reporting period by class of financing receivables, (ii) the aging of past due financing receivables at the end of the reporting period by class of financing receivables, and (iii) the nature and extent of troubled debt restructurings that occurred during the period by class of financing receivables and their effect on the allowance for credit losses. For public entities, the requirement for disclosures as of the end of a reporting period is effective for interim and annual reporting periods ending on or after December 15, 2010. The requirement for disclosures about activities that occur during a reporting period is effective for interim and annual reporting periods beginning on or after December 15, 2010. The Company adopted on December 31, 2010 the applicable provisions of ASU 2010-20, which did not have a material impact on the disclosures in its consolidated financial statements. The Company does not expect the adoption of the provisions of ASU 2010-20 relating to increased disclosure activities relating to financing receivables to have a material impact on the disclosures in its consolidated financial statements.

ASU No. 2010-28, Intangibles - Goodwill and Other, When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts (“ASU 2010-28”) was issued in December 2010. The amendments in this ASU modify Step 1 of the goodwill impairment test for reporting units with zero or negative carrying amounts. For those reporting units, an entity is required to perform Step 2 of the goodwill impairment test if it is more likely than not that a goodwill impairment exists. In determining whether it is more likely than not that a goodwill impairment exists, an entity should consider whether there are any events or circumstances that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2010. Early adoption is not permitted. The Company expects to adopt ASU 2010-28 for the quarter ending March 31, 2011 and does not expect the adoption to have a material impact on its consolidated financial statements.

Inventories

12 Months Ended

Dec. 31, 2010

Inventory Net Abstract

Inventories

	2. Inventories

	Inventories consist of the following:

		December 31,		December 31,
		2010		2009
Fabricated Products segment —
	Finished products	$	53.8	$	40.4
	Work in process		49.6		44.9
	Raw materials		50.9		27.1
	Operating supplies and repairs and maintenance parts		13.2		12.8
		$	167.5	$	125.2

The Company recorded net non-cash LIFO (charges) benefits of approximately $(16.5), $(8.7) and $7.5 during 2010, 2009 and 2008, respectively. These amounts are primarily a result of changes in metal prices and changes in inventory volumes.

With the inevitable ebb and flow of business cycles, non-cash LIFO (charges) benefits will result when inventory levels and metal prices fluctuate. Further, potential lower of cost or market adjustments can occur when metal prices decline and margins compress. At December 31, 2008, due to the decline in the London Metal Exchange (“LME”) price of primary aluminum, the Company recorded a $65.5 lower of cost or market inventory write-down to reflect the inventory at market value. During the first quarter of 2009, the Company recorded an additional lower of cost or market inventory write-down of $9.3 due to the continued decline in the LME price of primary aluminum. The write-downs of inventory were recorded pursuant to ASC Topic 330, Inventory, under which the market value of inventory is determined based on the current replacement cost, by purchase or by reproduction, except that it does not exceed the net realizable value and it is not less than net realizable value reduced by an approximate normal profit margin. There were no lower of cost or market inventory write-downs during 2010.

Investment In and Advances To Unconsolidated Affiliate

12 Months Ended

Dec. 31, 2010

Investment In and Advances To Unconsolidated Affiliate [Abstract]

Investment In and Advances To Unconsolidated Affiliate

3. Investment In and Advances To Unconsolidated Affiliate

The Company has a 49%, non-controlling ownership interest in Anglesey. Anglesey operated as a primary aluminum smelter until September 30, 2009, when it fully curtailed its smelting operations due to the expiration of its long-term power contract and its inability to find alternative affordable power to continue operating as a smelter. In the fourth quarter of 2009, Anglesey commenced a remelt and casting operation to produce secondary aluminum.

Through September 30, 2009, the Company and Anglesey had interrelated operations. The Company was responsible for selling alumina to Anglesey in proportion to its ownership percentage. To meet its obligation to provide alumina to Anglesey, the Company purchased alumina under a contract that provided adequate alumina for Anglesey's operations through September 2009. Further, the Company was responsible for purchasing primary aluminum from Anglesey in proportion to its ownership percentage, at prices based on the primary aluminum market prices.

At December 31, 2008, the Company recorded a charge of $37.8 to fully impair its investment in Anglesey. In the first half of 2009, the Company recorded additional impairment charges totaling $1.8 to maintain its investment balance at zero. During the quarter ended September 30, 2009, Anglesey incurred a significant net loss, primarily as the result of employee redundancy costs incurred in connection with the cessation of its smelting operations. Commencing in the quarter ended September 30, 2009 and continuing through December 31, 2010, the Company suspended the use of the equity method of accounting with respect to its ownership in Anglesey as the Company is not obligated to advance any funds to Anglesey, guarantee any obligations of Anglesey, or make any commitments to provide any financial support for Anglesey. Accordingly, the Company did not recognize its share of Anglesey's net loss for such periods, pursuant to ASC Topic 323, Investments – Equity Method and Joint Ventures. The Company does not anticipate resuming the use of the equity method of accounting with respect to its investment in Anglesey unless and until (i) its share of any future net income of Anglesey equals or is greater than the Company's share of net losses not recognized during periods for which the equity method was suspended and (ii) future dividends can be expected. The Company does not anticipate the occurrence of such event during the next 12 months.

After the cessation of Anglesey's smelting operations on September 30, 2009, Anglesey no longer requires alumina for its operations, and the Company's obligation to sell alumina to Anglesey terminated. Since such date, the Company has purchased secondary aluminum products from Anglesey in proportion to its ownership interest, at prices tied to the market price of primary aluminum. The Company in turn sells the secondary aluminum products to a third party and receive a portion of a premium over normal commodity market prices. The transactions are structured to largely eliminate metal price and currency exchange rate risks with respect to income and cash flow.

In the fourth quarter of 2009, the Company in substance began to act as an agent in connection with sales of secondary aluminum produced by Anglesey and, consequently, the Company's sales of such secondary aluminum are presented net of the cost of sales. Prior to the cessation of Anglesey's smelting operations as of September 30, 2009, the Company's sales of primary aluminum produced by Anglesey were recorded on a gross basis when title, ownership and risk of loss were passed to the buyer and collectability was reasonably assured. The Company recorded $0.3, $89.9 and $171.4 of revenue relating to the sales of primary aluminum produced by Anglesey in 2010, 2009 and 2008, respectively. The Company did not record any net revenue relating to sales of secondary aluminum produced by Anglesey.

The Company recorded zero equity in income from Anglesey in 2009 and 2008. The Company received no dividends from Anglesey for 2010 or 2009, and received dividends from Anglesey of $3.9 million in 2008.

Purchases from and sales to Anglesey were as follows:
	Year ended		Year ended		Year ended
	December 31,		December 31,		December 31,
	2010		2009		2008
Purchases	$	93.3	$	91.4	$	155.9
Sales		-		18.1		52.1

At December 31, 2010 and 2009, receivables from Anglesey were $0.0 and $0.2, respectively. At December 31, 2010 and 2009, payables to Anglesey were $17.1 and $9.0, respectively.

Conditional Asset Retirement Obligations

12 Months Ended

Dec. 31, 2010

Asset Retirement Obligation Abstract

Conditional Asset Retirement Obligations

4. Conditional Asset Retirement Obligations

The Company has conditional asset retirement obligations, or CAROs, at several of its fabricated products facilities. The vast majority of such CAROs 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, roofs, ceilings or piping) at certain of the Company's older facilities if such facilities were to undergo major renovation or be demolished. There are currently plans for such renovation or demolition at one facility and management's current assessment is that certain immaterial CAROs may be triggered during the next four years. For locations where there are no current plans for renovations or demolitions, the most probable scenario is that such CAROs would not be triggered for 20 or more years, if at all.

The inputs in estimating the fair value of CAROs include: (i) timing of when any such CARO may be incurred, (ii) incremental costs associated with special handling or treatment of CARO materials and (iii) credit adjusted risk free rate, all of which are considered level 3 inputs as they involve significant judgment of the Company.

During the quarter ended September 30, 2010, the Company re-assessed and revised its estimates relating to the timing and future costs of various asbestos removal projects at one facility. Both upward and downward revisions relating to cost estimates were made. The downward revisions in cost estimates resulted in a $1.3 decrease in CARO liabilities and cumulative adjustments reducing Cost of products sold, excluding depreciation, amortization and other items, and Depreciation and amortization by approximately $1.1 and $0.1, respectively. The total of such adjustments increased both basic and diluted earnings per share by approximately $0.05 per share. The upward revisions in costs estimates resulted in a $1.3 increase in both CARO liabilities and CARO assets. The Company used a credit-adjusted, risk-free rate of 10.8% in estimating the fair value with respect to the CARO liability associated with the upward cost adjustment. Accretion and depreciation expense over the next 20 years is expected to increase as a result of the revisions. Revisions to timing of CARO settlement did not have a material impact on the Company's financial statements.

The Company's results for 2010, 2009 and 2008 included an immaterial amount of depreciation expense associated with CARO-related costs. For 2010, 2009 and 2008, accretion of CARO liabilities (recorded in Cost of products sold) was $0.3, $0.2 and $0.3, respectively. The estimated fair value of CARO liabilities at December 31, 2010 and December 31, 2009 was $3.8 and $3.5, respectively.

For purposes of the Company's fair value estimates with respect to the CARO liabilities prior to the quarter ended September 30, 2010, a credit adjusted risk free rate of 7.5% was used.

Property, Plant and Equipment

12 Months Ended

Dec. 31, 2010

Property, Plant and Equipment [Abstract]

Property, Plant, and Equipment

5. Property, Plant and Equipment

Property, plant and equipment are recorded at cost. The major classes of Property, plant, and equipment are as follows:

	December 31,		December 31,
	2010		2009
Land and improvements	$	23.3	$	23.6
Buildings		43.5		31.9
Machinery and equipment		338.0		246.2
Construction in progress		7.7		83.4
		412.5		385.1
Accumulated depreciation		(63.9)		(46.2)
Active property, plant, and equipment, net		348.6		338.9
Idled equipment		5.5		-
Property, plant, and equipment, net	$	354.1	$	338.9

The majority of the Construction in progress at December 31, 2009 was related to the Company's Kalamazoo, Michigan facility. The facility is equipped with two extrusion presses and a remelt operation. This investment program was substantially completed in late 2010. The decrease in the Construction in progress balance from December 31, 2009 to December 31, 2010 reflects principally the commissioning of certain equipment during that period, the cost of which is reflected above in Machinery and equipment as of December 31, 2010.

The amount of interest expense capitalized as construction in progress was $2.8, $2.7 and $0.3 during the years ended 2010, 2009, and 2008, respectively.

For 2010, 2009, and 2008, the Company recorded depreciation expense of $19.4, $16.2, and $14.6, respectively, relating to the Company’s operating facilities in its Fabricated Products segment. An immaterial amount of depreciation expense was also recorded in the Company's Corporate segment for all such periods.

In December 2010, the Company re-assessed the expected utilization of certain of its manufacturing equipment, in light of factors such as the production capacity and added capabilities resulting from the acquisition of assets from Alexco effective January 1, 2011 (see Note 19). Based upon this assessment, the Company concluded that certain of its existing equipment would be idled until such time as the equipment is needed for production. As such equipment is currently expected to be idled on more than a temporary basis, the Company suspended the depreciation expense relating to such equipment.

Concurrent with the reclassification of assets to the Idled equipment category of Property, plant and equipment, the Company performed an assessment of the net carrying amount of such assets. Of the $5.5 carrying amount of Idled assets as of December 31, 2010, $1.1 represents equipment used by the Company's Tulsa, Oklahoma facility prior to the closure of that facility in the fourth quarter of 2008. The remaining Idled equipment as of December 31, 2010 represents assets that were acquired by the Company but had not yet been placed into service. For such assets, the Company performed an appraisal in the fourth quarter of 2010 and recorded an impairment charge of $2.0 to write-down the carrying amount of the equipment to $4.4, representing the estimated fair value. The fair value was estimated using a combination of the cost approach and market approach. The cost approach is based on replacement cost and the market approach is based on prices for similar assets, both of which used level 3 fair value inputs.

In addition to the $2.0 impairment charge noted above, the Company recorded an asset impairment charge of $1.9 in connection with the sale of its Greenwood, South Carolina facility in July 2010. The combined asset impairment charges of $3.9 in 2010 are included in Other operating charges (benefits), net in the Statements of Consolidated Income (Loss) and are included in the Fabricated Products segment.

Further, as discussed in Note 17, the Company recorded $0.7, $0.3 and $4.3 of asset impairment charges in 2010, 2009 and 2008, respectively, in connection with the restructuring plans to close its Tulsa, Oklahoma facility and curtail operations at its Bellwood, Virginia location. Such charges are reflected within Restructuring costs and other (benefits) charges in the Statements of Consolidated Income (Loss).

Supplemental Balance Sheet Information

12 Months Ended

Dec. 31, 2010

Supplemental Balance Sheet Information [Abstract]

Supplemental Balance Sheet Information

	6. Supplemental Balance Sheet Information

	Trade Receivables.

	Trade receivables were comprised of the following:
		December 31,		December 31,
		2010		2009
	Billed trade receivables	$	82.5	$	84.2
	Unbilled trade receivables - Note 1		1.1		0.3
			83.6		84.5
	Allowance for doubtful receivables		(0.6)		(0.8)
		$	83.0	$	83.7

	Prepaid Expenses and Other Current Assets.

	Prepaid expenses and other current assets were comprised of the following:
		December 31,		December 31,
		2010		2009

	Current derivative assets - Note 14	$	22.1	$	7.2
	Current deferred tax assets		46.8		40.6
	Option premiums paid		5.6		3.1
	Short-term restricted cash		0.9		0.9
	Prepaid taxes		1.3		4.2
	Prepaid expenses		3.4		3.1
	Total	$	80.1	$	59.1

	Other Assets.

	Other assets were comprised of the following:
		December 31,		December 31,
		2010		2009
	Derivative assets - Note 14	$	50.8	$	18.2
	Option premiums paid		0.6		1.6
	Restricted cash		16.3		17.4
	Long-term income tax receivable		2.9		2.8
	Deferred financing costs		7.7		1.1
	Available for sale securities		4.6	¹	-
	Other		0.1		0.1
	Total	$	83.0	$	41.2
	_____________________
¹	Available for sale securities represent investments related to the Company's deferred compensation plan, in various
	investment funds measured at fair value based on the net asset value of the investment funds which is considered to be a level 2 input. The fair value of these securities approximate amortized cost.

	Other Accrued Liabilities.

	Other accrued liabilities were comprised of the following:
		December 31,		December 31,
		2010		2009
	Current derivative liabilities - Note 14	$	8.9	$	5.1
	Option premiums received		7.0		1.6
	Current portion of income tax liabilities		1.1		1.1
	Accrued income taxes and taxes payable		1.8		2.0
	Accrued book overdraft (uncleared cash disbursements)		-		3.4
	Accrued annual VEBA contribution		2.1		2.4
	Accrued freight		1.9		2.1
	Environmental accrual - Note13		1.1		3.9
	Accrued interest		2.1		0.1
	Deferred revenue		10.8		6.8
	Other		5.2		3.6
	Total	$	42.0	$	32.1

	Long-term Liabilities.

	Long-term liabilities were comprised of the following:
		December 31,		December 31,
		2010		2009
	Derivative liabilities - Note 14	$	62.2	$	5.3
	Option premiums received		0.3		1.6
	Income tax liabilities		12.9		13.4
	Workers’ compensation accruals		15.9		14.1
	Environmental accrual - Note13		19.1		5.8
	Asset retirement obligations		3.8		3.5
	Deferred revenue		13.2		8.7
	Deferred compensation liability		4.9		-
	Other long-term liabilities		2.4		1.3
	Total	$	134.7	$	53.7

Cash Convertible Senior Notes and Related Transactions

12 Months Ended

Dec. 31, 2010

Cash Convertible Senior Notes And Related Transactions Abstract

Cash Convertible Senior Notes And Related Transactions

7. Cash Convertible Senior Notes and Related Transactions

Indenture. On March 29, 2010, the Company issued Notes in the aggregate principal amount of $175.0 pursuant to an indenture by and between the Company and Wells Fargo Bank, National Association, as trustee (the “Indenture”). Net proceeds from this transaction were approximately $169.2, after deducting the initial purchasers' discounts and transaction fees and expenses. The Notes bear a stated interest rate of 4.50% per annum. As described in Note 1, the Company accounts for the Bifurcated Conversion Feature of the Notes as a derivative instrument. The fair value of the Bifurcated Conversion Feature on the issuance date of the Notes was recorded as the original issue discount for purposes of accounting for the debt component of the Notes. At issuance, the original issue discount relating to the Notes was $38.1, which will be amortized based on the effective interest method over the term of the Notes. Therefore, interest expense greater than the interest rate of 4.50% will be recognized over the term of the Notes, primarily due to the accretion of the discounted carrying value of the Notes to their face amount. The initial purchasers' discounts and transaction fees and expenses totaling $5.8 were capitalized as deferred financing costs and will be amortized over the term of the Notes using the effective interest method. The effective interest rate of the Notes is approximately 11% per annum. Interest is payable semi-annually in arrears on April 1 and October 1 of each year, beginning on October 1, 2010. The Notes will mature on April 1, 2015, subject to earlier repurchase or conversion upon the occurrence of certain events. Holders may convert their Notes before January 1, 2015, only in certain circumstances determined by (i) the market price of the Company's common stock, (ii) the trading price of the Notes, or (iii) the occurrence of specified corporate events. The Notes can be converted by the holders at any time on or after January 1, 2015 until the close of business on the second scheduled trading date immediately preceding the maturity date of the Notes. The Notes are subject to repurchase by the Company at the option of the holders following a fundamental change, as defined in the Indenture, including, but not limited to, (i) certain ownership changes, (ii) certain recapitalizations, mergers and dispositions, (iii) approval of any plan or proposal for the liquidation, or dissolution of the Company, and (iv) the Company's common stock ceasing to be listed on any of the New York Stock Exchange, the NASDAQ Global Select Market or the NASDAQ Global Market, at a price equal to 100% of the principal amount of the Notes plus accrued and unpaid interest up to the fundamental change repurchase date. The Notes have an initial conversion rate of 20.6949 shares of common stock per (in whole dollars) $1,000 principal amount of the Notes (equivalent to an initial conversion price of approximately $48.32 per share, representing a 26% conversion premium over the closing price of $38.35 per share of the Company's common stock on March 23, 2010), subject to adjustment, based on the occurrence of certain events, including, but not limited to, (i) the issuance of certain dividends on the Company's common stock, (ii) the issuance of certain rights, options or warrants, (iii) the effectuation of share splits or combinations, (iv) certain distributions of property and (v) certain issuer tender or exchange offers as described in the Indenture, with the amount due on conversion payable in cash. The Notes are not convertible into the Company's common stock or any other securities under any circumstances.

Convertible Note Hedge Transactions. On March 23 and March 26, 2010, the Company purchased the Call Options from several financial institutions (the “Option Counterparties”). The Call Options have an exercise price equal to the conversion price of the Notes, subject to anti-dilution adjustments substantially similar to the anti-dilution adjustments for the Notes. The Call Options will expire upon the maturity of the Notes. The Company paid an aggregate amount of approximately $31.4 to the Option Counterparties for the Call Options.

The Call Options are expected to generally reduce the Company's exposure to potential cash payments in excess of the principal amount of the Notes that it may be required to make upon the conversion of the Notes. If the market price per share of the Company's common stock at the time of cash conversion of any Notes is above the strike price of the Call Options (which strike price is initially equal to the initial conversion price of the Notes of approximately $48.32 per share of the Company's common stock), the Call Options will entitle the Company to receive from the Option Counterparties in the aggregate the same amount of cash as it would be required to deliver to the holder of the converted Notes in excess of the principal amount thereof.

Warrant Transactions. On March 23 and March 26, 2010, the Company also entered into warrant transactions pursuant to which the Company sold to the Option Counterparties net-share-settled warrants (the “Warrants”) relating to approximately 3.6 million shares of the Company's common stock. The warrants expire on July 1, 2015. The Option Counterparties paid an aggregate amount of approximately $14.3 to the Company for the Warrants.

If the market price per share of the Company's common stock, as measured under the terms of the Warrants, exceeds the strike price of the Warrants, which is initially equal to $61.36 per share (representing a 60% premium over the closing price of $38.35 per share of the Company's common stock on March 23, 2010), the Company will issue to the Option Counterparties shares of the Company's common stock having a value equal to such excess, as measured under the terms of the Warrants. The Warrants may not be exercised prior to the expiration date.

Other. The Call Options and Warrant transactions are separate transactions entered into by the Company with the Option Counterparties, and are not part of the terms of the Notes and do not affect the rights of holders under the Notes.

As described in Note 1, the cash conversion feature of the Notes meets the definition of a derivative under ASC 815 and requires bifurcation from the Notes for accounting purposes. The Call Options also meet the definition of derivatives under ASC 815. As such, the Company accounts for both instruments as derivatives and marks to market both instruments at the end of each reporting period. At December 31, 2010, the Bifurcated Conversion Feature had a fair value of $60.0 and was recorded as a long-term derivative liability, and the Call Options had a fair value of $48.4 and were recorded as long-term derivative assets (Note 6).

The Warrants meet the definition of derivatives under ASC 815; however, because the Warrants have been determined to be indexed to the Company's common stock and to have met the requirement to be classified as equity instruments, they are not subject to the fair value provisions of ASC 815 (Note 14).

At December 31, 2010, the carrying value of the Notes was $141.4, which consists of $175.0 face amount net of $33.6 of debt discount. The fair value of the Notes was $214.7 based on the trading price of the Notes on December 31, 2010. The trading price of the Notes is considered a Level 1 input in the fair value hierarchy. Total interest expense related to the Notes for the year ended December 31, 2010 was $11.3 consisting $6.0 of cash interest and $5.3 of non-cash amortization of original issue discount and debt issuance cost, a portion of which was capitalized as Construction in progress.

Secured Debt and Credit Facilities

12 Months Ended

Dec. 31, 2010

Secured Debt and Credit Facilities [Abstract]

Secured Debt and Credit Facilities

8. Secured Debt and Credit Facilities

Secured credit facility and long-term debt consisted of the following:
	December 31,		December 31,
	2010		2009
Revolving Credit Facility	$	-	$	-
Other		13.1		7.1
Total		13.1		7.1
Less — Current portion		(1.3)		-
Long-term secured debt	$	11.8	$	7.1

Revolving Credit Facility. On March 23, 2010, the Company and certain of its subsidiaries entered into a $200.0 revolving credit facility with a group of lenders (the “Revolving Credit Facility”), of which up to a maximum of $60.0 may be utilized for letters of credit. The Revolving Credit Facility amended and restated the Company's previously existing $265.0 revolving credit facility. In connection with the amendment and restatement, the Company expensed $0.4 of unamortized deferred financing costs relating to the $265.0 revolving credit facility, resulting in a residual balance of $0.7 of unamortized deferred financing costs related to such financing arrangement. Also, in connection with the amendment and restatement, the Company incurred $2.7 of additional financing costs, which were capitalized. Accordingly, a total of $3.4 of capitalized financing costs will be amortized over the term of the Revolving Credit Facility on a straight-line basis. At December 31, 2010, $2.7 of deferred financing costs remained on the Consolidated Balance Sheets.

Under the Revolving Credit Facility, the Company is able to borrow from time to time an aggregate amount equal to the lesser of $200.0 or a borrowing base comprised of approximately 85% of eligible accounts receivable and approximately 65% of eligible inventory, reduced by certain reserves, all as specified in the Revolving Credit Facility. The Revolving Credit Facility matures in March 2014, at which time all amounts outstanding under the Revolving Credit Facility will be due and payable. Borrowings under the Revolving Credit Facility bear interest at a rate equal to either a base prime rate or LIBOR, at the Company's option, plus, in each case, a specified variable percentage determined by reference to the then-remaining borrowing availability under the Revolving Credit Facility. The Revolving Credit Facility may, subject to certain conditions and the agreement of lenders thereunder, be increased up to $250.0.

Amounts owed under the Revolving Credit Facility may be accelerated upon the occurrence of various events of default including, without limitation, the failure to make principal or interest payments when due and breaches of covenants, representations and warranties set forth in the Revolving Credit Facility. The Revolving Credit Facility places limitations on the ability of the Company and certain of its subsidiaries to, among other things, grant liens, engage in mergers, sell assets, incur debt, make investments, undertake transactions with affiliates, pay dividends and repurchase shares. In addition, the Company is required to maintain a fixed charge coverage ratio on a consolidated basis at or above 1.1 to 1.0 if borrowing availability under the Revolving Credit Facility is less than $30.

The Revolving Credit Facility is secured by a first priority lien on substantially all of the accounts receivable, inventory and certain other related assets and proceeds of the Company and its domestic operating subsidiaries. At December 31, 2010, the Company was in compliance with all covenants contained in the Revolving Credit Facility.

At December 31, 2010, based on the borrowing base determination in effect as of that date, the Company had under the Revolving Credit Facility borrowing availability of $178.8, of which $9.9 was being used to support outstanding letters of credit, leaving $168.9 of availability. There were no borrowings under the Revolving Credit Facility at December 31, 2010, but the interest rate applicable to any borrowings under the Revolving Credit Facility would have been 5.25% at December 31, 2010 for overnight borrowings.

Other. In connection with the Company's acquisition of the manufacturing facility and related assets of Nichols Wire, Incorporated (“Nichols”) in Florence, Alabama (the “Florence, Alabama facility”) on August 9, 2010 (Note 9), a promissory note in the amount of $6.7 (the “Nichols Promissory Note”) was issued to Nichols as a part of the consideration paid. The Nichols Promissory Note bears interest at a rate of 7.5% per annum. Accrued but unpaid interest is due quarterly through maturity of the Nichols Promissory Note on August 9, 2015. The Company has the option to repay all or a portion of the Nichols Promissory Note at any time prior to the maturity date. Principal payments on the Nichols Promissory Note are due in equal quarterly installments, with the first two payments having been made on September 30, 2010 and December 31, 2010. The Nichols Promissory Note is secured by certain real property and equipment included in the assets acquired from Nichols in the acquisition. At December 31, 2010, the outstanding principal balance under the Nichols Promissory Note was $6.0, of which $1.3 was payable within 12 months. For the year ended December 31, 2010, the Company recorded $0.2 of interest expense related to the Nichols Promissory Note.

As of December 31, 2010, the carrying amount of the Nichols Promissory Note was representative of its fair value due to the fact that this obligation originated in late 2010.

As of December 31, 2010, the Company also had a $7.0 outstanding promissory note (the “LA Promissory Note”) in connection with the Company's purchase of the previously leased land and buildings associated with its Los Angeles, California facility in December 2008. Interest is payable on the unpaid principal balance of the LA Promissory Note monthly in arrears at the prime rate, as defined in the LA Promissory Note, plus 1.5%, in no event exceeding 10% per annum. A principal payment of $3.5 will be due on January 1, 2012, and the remaining $3.5 will be due on January 1, 2013. The LA Promissory Note is secured by a deed of trust on the property. For the years ended December 31, 2010 and December 31, 2009, the Company incurred $0.3 and $0.4 of interest expense relating to the LA Promissory Note, respectively. The interest rate applicable to the LA Promissory Note was 4.75% at December 31, 2010.

As of December 31, 2010 and 2009, the carrying amount of the LA Promissory Note is deemed to approximate its fair value as such instrument bears a variable rate of interest and the Company's credit quality has remained materially consistent since the inception of that obligation.

Acquisition

12 Months Ended

Dec. 31, 2010

Business Combination Description Abstract

Acquisition

9. Acquisition

On August 9, 2010, the Company acquired the Florence, Alabama facility, and related assets of Nichols, which manufactures bare mechanical alloy wire products, nails and aluminum rod for aerospace, general engineering, and automotive applications. The acquired assets have been integrated into and complement the existing assets of the Company's Fabricated Products segment. In connection with the purchase, the Company hired approximately 100 personnel who were formerly employees of Nichols. The majority of such employees are members of the United Steel, Paper and Foresting, rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO, CLC (the “USW”).

Consideration consisted of (i) $9.0 in cash, (ii) the $6.7 Nichols Promissory Note from the Company to Nichols (Note 8), and (iii) the assumption of certain liabilities totaling approximately $2.1. The goodwill of $3.1 arising from the acquisition represents the commercial opportunity for the Company to sell small-diameter rod, bar and wire products, as a complement to its other products, to its core markets and end market segment applications and is expected to be deductible for income tax purposes over the next 15 years. All of the goodwill is included in the Company's Fabricated Products segment. Total acquisition-related costs were approximately $0.8, of which $0.4 was expensed during the year ended December 31, 2010 and was included in Selling, administrative, research and development, and general in the Statement of Consolidated Income. The Company does not expect the acquisition will have a material impact on its consolidated financial statements.

The following table summarizes recognized amounts of identifiable assets acquired and liabilities assumed at the acquisition date:

Inventory		$	3.9
Other current assets			2.3
Property, plant and equipment			4.2
Identifiable intangible assets with definite lives			4.3
Goodwill			3.1
Liabilities assumed			(2.1)
Consideration paid		$	15.7

Identifiable intangible assets at December 31, 2010 are comprised of the following:

	Estimated useful life		Original cost		Accumulated amortization		Net book value
Customer relationships	20	$	3.8	$	(0.1)	$	3.7
Backlog	3		0.5		(0.2)		0.3
	18	$	4.3	$	(0.3)	$	4.0

Total amortization expense for 2010 relating to definite-lived intangible assets arising from the acquisition of the Florence, Alabama facility was $0.3 which was recorded in the Fabricated Products segment. Amortization expense relating to intangible assets will be $0.3 for each of 2011 and 2012, and $0.2 for each of 2013 and 2014.