Document and Entity Information - USD ($) $ in Billions	12 Months Ended
Document and Entity Information - USD ($) $ in Billions	Dec. 31, 2017	Feb. 15, 2018	Jun. 30, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	Kaiser Aluminum Corp
Entity Central Index Key	0000811596
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Common Stock, Shares Outstanding		16,757,781
Entity Well Known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 1.5

Consolidated Balance Sheet - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 51.1	$ 55.2
Short-term investments	183.7	231.0
Receivables:
Trade receivables, net	165.0	137.7
Other	15.5	11.9
Inventories	207.9	201.6
Prepaid expenses and other current assets	33.4	18.5
Total current assets	656.6	655.9
Property, plant and equipment, net	571.4	530.9
Deferred tax assets – net	72.0	159.7
Intangible assets, net	25.0	26.4
Goodwill	18.8	37.2
Other assets	41.4	33.4
Total	1,385.2	1,443.5
Current liabilities:
Accounts payable	90.0	75.8
Accrued salaries, wages and related expenses	42.6	49.1
Other accrued liabilities	40.5	40.1
Total current liabilities	173.1	165.0
Net liabilities of Salaried VEBA	31.9	28.6
Deferred tax liabilities	4.3	3.3
Long-term liabilities	60.0	73.2
Long-term debt	369.6	368.7
Total liabilities	638.9	638.8
Commitments and contingencies
Stockholders’ equity:
Preferred stock, 5,000,000 shares authorized at both December 31, 2017 and December 31, 2016; no shares were issued and outstanding at December 31, 2017 and December 31, 2016	0.0	0.0
Common stock, par value $0.01, 90,000,000 shares authorized at both December 31, 2017 and December 31, 2016; 22,393,537 shares issued and 16,773,586 shares outstanding at December 31, 2017; 22,332,732 shares issued and 17,651,461 shares outstanding at December 31, 2016	0.2	0.2
Additional paid in capital	1,055.9	1,047.4
Retained earnings	85.5	75.2
Treasury stock, at cost, 5,619,951 shares at December 31, 2017 and 4,681,271 shares at December 31, 2016	(358.6)	(281.4)
Accumulated other comprehensive loss	(36.7)	(36.7)
Total stockholders’ equity	746.3	804.7
Total	$ 1,385.2	$ 1,443.5

Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
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 or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	90,000,000	90,000,000
Common Stock, Shares, Issued	22,393,537	22,332,732
Common Stock, Shares, Outstanding	16,773,586	17,651,461
Treasury Stock, Shares	5,619,951	4,681,271
Union VEBA
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Deferred tax liability relating to Union VEBA	$ 0.0	$ 0.0

Statements of Consolidated Income - USD ($) shares in Thousands, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Statement [Abstract]
Net sales	$ 353.1	$ 332.8	$ 356.3	$ 355.3	$ 331.9	$ 320.6	$ 334.9	$ 343.2	$ 1,397.5	$ 1,330.6	$ 1,391.9
Cost of products sold:
Cost of products sold, excluding depreciation and amortization and other items	282.6	267.2	277.7	277.8	252.4	254.7	250.4	262.0	1,105.3	1,019.5	1,115.4
Lower of cost or market inventory write-down					0.0	0.0	0.0	4.9	0.0	4.9	2.6
Unrealized (gain) loss on derivative instruments	(5.4)	(10.8)	11.9	(15.1)	(1.8)	(2.0)	(10.9)	(4.0)	(19.4)	(18.7)	3.4
Depreciation and amortization									39.7	36.0	32.4
Selling, general, administrative, research and development									97.5	105.0	88.1
Net periodic postretirement benefit cost relating to Salaried VEBA									4.5	3.4	2.4
(Gain) loss on removal of Union VEBA net assets – Note 4									0.0	(0.1)	493.4
Total selling, general, administrative, research and development									102.0	108.3	583.9
Goodwill impairment									18.4	0.0	0.0
Other operating charges, net									0.8	2.8	0.1
Total costs and expenses									1,246.8	1,152.8	1,737.8
Operating income (loss)	40.0	39.8	11.4	59.5	45.3	29.8	57.9	44.8	150.7	177.8	(345.9)
Other (expense) income:
Interest expense									(22.2)	(20.3)	(24.1)
Other income (expense), net – Note 11									4.5	(10.3)	(1.8)
Income (loss) before income taxes									133.0	147.2	(371.8)
Income tax (provision) benefit									(87.6)	(55.5)	135.2
Net income (loss)	$ (15.2)	$ 19.9	$ 4.7	$ 36.0	$ 24.5	$ 14.9	$ 26.0	$ 26.3	$ 45.4	$ 91.7	$ (236.6)
Net income (loss) per common share:
Basic (in dollars per share)	$ (0.90)	$ 1.18	$ 0.28	$ 2.07	$ 1.39	$ 0.84	$ 1.45	$ 1.47	$ 2.67	$ 5.15	$ (13.76)
Diluted (in dollars per share)	(0.90)	1.16	0.27	2.04	1.37	0.82	1.43	1.44	$ 2.63	$ 5.09	$ (13.76)
Weighted-average number of common shares outstanding (in thousands):
Basic (in shares)									16,996	17,813	17,201
Diluted (in shares)									17,259	18,033	17,201
Dividends declared per common share (in dollars per share)	$ 0.50	$ 0.50	$ 0.50	$ 0.50	$ 0.45	$ 0.45	$ 0.45	$ 0.45	$ 2	$ 1.8	$ 1.6

Statements of Consolidated Comprehensive Income (Loss) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Net income (loss)	$ 45.4	$ 91.7	$ (236.6)
Other comprehensive (loss) income, net of tax – Note 10:
Defined benefit pension plan and VEBAs	(1.4)	(5.8)	65.1
Available for sale securities	0.5	0.9	(0.3)
Other	0.9	(0.1)	(0.4)
Other comprehensive (loss) income, net of tax	0.0	(5.0)	64.4
Comprehensive income (loss)	$ 45.4	$ 86.7	$ (172.2)

Statement 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, shares at Dec. 31, 2014		17,607,251
Beginning balance at Dec. 31, 2014	$ 1,015.9	$ 0.2	$ 1,028.5	$ 280.4	$ (197.1)	$ (96.1)
Stockholders' Equity [Roll Forward]
Net income (loss)	(236.6)			(236.6)
Other comprehensive income (loss), net of tax	64.4					64.4
Issuance of non-vested shares to employees		62,285
Issuance of common shares to non-employee directors	0.2		0.2
Issuance of common shares to directors, shares		2,436
Issuance of common shares to employees upon vesting of restricted stock units and performance shares, shares		52,106
Cancellation of employee non-vested shares, shares		(987)
Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares, shares		(37,009)
Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares	$ (2.8)		(2.8)
Repurchase of common stock, shares	(647,520)	(647,520)
Repurchase of common stock	$ (49.4)				(49.4)
Issuance of stock related to warrants, shares		1,015,185
Cash dividends on common stock	(28.1)			(28.1)
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest	1.3		1.3
Amortization of unearned equity compensation	9.3		9.3
Dividends on unvested equity awards that were canceled	0.2			0.2
Ending balance, shares (Before Cumulative Adjustment) at Dec. 31, 2015		18,053,747
Ending balance (Before Cumulative Adjustment) at Dec. 31, 2015	774.4	$ 0.2	1,036.5	15.9	(246.5)	(31.7)
Ending balance at Dec. 31, 2015						(31.7)
Stockholders' Equity [Roll Forward]
Net income (loss)	91.7			91.7
Other comprehensive income (loss), net of tax	(5.0)					(5.0)
Issuance of non-vested shares to employees		9,702
Issuance of common shares to non-employee directors	0.1		0.1
Issuance of common shares to directors, shares		1,474
Issuance of common shares to employees upon vesting of restricted stock units and performance shares, shares		66,810
Issuance of common shares to employees upon option exercises and vesting of restricted stock units and performance shares	1.2		1.2
Cancellation of employee non-vested shares, shares		(379)
Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares, shares		(36,055)
Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares	$ (2.9)		(2.9)
Repurchase of common stock, shares	(443,838)	(443,838)
Repurchase of common stock	$ (34.9)				(34.9)
Cash dividends on common stock	(32.4)			(32.4)
Amortization of unearned equity compensation	11.7		11.7
Dividends on unvested equity awards that were canceled	$ 0.1			0.1
Ending balance, shares (Before Cumulative Adjustment) at Dec. 31, 2016		17,651,461
Ending balance, shares (Restatement Adjustment [Member])		18,053,747
Ending balance, shares at Dec. 31, 2016	17,651,461
Ending balance (Before Cumulative Adjustment) at Dec. 31, 2016	$ 804.7	$ 0.2	1,047.4	75.2	(281.4)	(36.7)
Ending balance (Restatement Adjustment [Member])	775.1	$ 0.2	1,037.3	15.8	(246.5)	(31.7)
Ending balance at Dec. 31, 2016	804.7					(36.7)
Cumulative Effect of New Accounting Principle in Period of Adoption	0.7		0.8	(0.1)
Stockholders' Equity [Roll Forward]
Net income (loss)	45.4			45.4
Issuance of non-vested shares to employees		11,817
Issuance of common shares to non-employee directors	0.2		0.2
Issuance of common shares to directors, shares		2,282
Issuance of common shares to employees upon vesting of restricted stock units and performance shares, shares		103,652
Issuance of common shares to employees upon vesting of restricted stock units and performance shares			0.0
Cancellation of employee non-vested shares, shares		(451)
Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares, shares		(56,495)
Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares	$ (4.5)		(4.5)
Repurchase of common stock, shares	(938,680)	(938,680)
Repurchase of common stock	$ (77.8)				(77.8)
Cancellation of treasury stock			(0.2)	(0.4)	0.6
Cash dividends on common stock	(35.0)			(35.0)
Amortization of unearned equity compensation	$ 13.0		13.0
Ending balance, shares at Dec. 31, 2017	16,773,586	16,773,586
Ending balance at Dec. 31, 2017	$ 746.3	$ 0.2	$ 1,055.9	85.5	$ (358.6)	$ (36.7)
Cumulative Effect of New Accounting Principle in Period of Adoption	$ 0.3			$ 0.3

Statement of Consolidated Cash Flows
$ in Millions

12 Months Ended

Dec. 31, 2017

USD ($)

Dec. 31, 2016

USD ($)

Dec. 31, 2015

USD ($)

Cash flows from operating activities:

Net income (loss)

$ 45.4

$ 91.7

$ (236.6)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation of property, plant and equipment

38.3

34.5

30.8

Amortization of definite-lived intangible assets

1.4

1.5

1.6

Amortization of debt discount and debt issuance costs

1.2

1.1

4.3

Deferred income taxes

89.0

57.4

(131.7)

Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest

0.0

(1.3)

Non-cash compensation

13.3

11.8

9.5

Lower of cost or market inventory write-down

0.0

4.9

2.6

Non-cash unrealized (gain) loss on derivative instruments

(19.4)

(18.7)

3.4

Non-cash impairment charges

19.2

2.8

0.1

Loss on repurchase of Senior Notes

0.0

11.1

2.5

(Gain) loss on disposition of property, plant and equipment

(0.5)

0.2

0.3

Gain on disposition of available for sale securities

(2.3)

0.0

Non-cash defined benefit net periodic benefit cost (income)

4.8

3.7

2.8

Non-cash loss on removal of Union VEBA, net

0.0

(446.7)

Other non-cash changes in assets and liabilities

(3.9)

(1.2)

(0.6)

Changes in operating assets and liabilities:

Trade and other receivables

(30.9)

(26.8)

17.4

Inventories, excluding lower of cost or market write-down

(6.3)

13.1

(7.5)

Prepaid expenses and other current assets

(1.7)

(8.0)

0.5

Accounts payable

13.0

3.4

(13.6)

Accrued liabilities

(4.7)

26.2

12.8

Annual variable cash contributions to VEBAs

(20.0)

(19.5)

(13.7)

Long-term assets and liabilities, net

(2.2)

(26.0)

28.2

Net cash provided by operating activities

141.5

165.6

159.7

Cash flows from investing activities:

Capital expenditures

(75.5)

(76.1)

(63.1)

Purchase of available for sale securities

(247.5)

(255.3)

(0.5)

Proceeds from disposition of available for sale securities

296.9

55.0

84.0

Proceeds from disposal of property, plant and equipment

0.6

0.0

Net cash (used in) provided by investing activities

(25.5)

^[1]

(276.4)

^[1]

20.4

^[1]

Cash flows from financing activities:

Repayment of principal and redemption premium of 8.25% Senior Notes

0.0

(206.0)

(30.0)

Issuance of 5.875% Senior Notes

0.0

375.0

0.0

Repayment of Convertible Notes

0.0

(175.0)

Proceeds from cash-settled call options related to settlement of Convertible Notes

0.0

94.9

Payment for conversion premium related to settlement of Convertible Notes

0.0

(94.9)

Cash paid for debt issuance costs

0.0

6.8

0.6

Proceeds from stock option exercises

0.0

1.2

0.0

Repayment of capital lease

(0.4)

0.0

Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest

0.0

1.3

Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares

(4.5)

(2.9)

(2.8)

Repurchase of common stock

(79.5)

(33.3)

(49.2)

Cash dividends and dividend equivalents paid

(35.0)

(32.4)

(28.1)

Net cash (used in) provided by financing activities

(119.4)

^[1]

94.8

^[1]

(284.4)

^[1]

Net decrease in cash, cash equivalents and restricted cash during the period

(3.4)

(16.0)

(104.3)

Cash, cash equivalents and restricted cash at end of period

51.1

55.2

72.5

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents

$ 64.3

$ 67.7

$ 83.7

[1]	See Note 14 for supplemental disclosure on non-cash transactions.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

In this Annual Report on Form 10-K (this "Report"), unless the context otherwise requires, references in these notes to consolidated financial statements to "Kaiser Aluminum Corporation," "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 and extruded and drawn products, for the following end market applications: aerospace and high strength ("Aero/HS products"), automotive applications ("Automotive Extrusions"), general engineering ("GE products") and other industrial ("Other products"). Our business is organized into one operating segment, Fabricated Products. See Note 15 for additional information regarding our reportable segment and business unit.

Principles of Consolidation and Basis of Presentation. The consolidated financial statements include the accounts of our wholly owned subsidiaries and are prepared in accordance with United States generally accepted accounting principles ("GAAP") and the rules and regulations of the Securities and Exchange Commission ("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.

Foreign Currency. Certain of our foreign subsidiaries use the local currency as their functional currency; the assets and liabilities of these foreign subsidiaries are translated at exchange rates in effect at the balance sheet date; and our statement of income (loss) 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. Where the U.S. dollar is the functional currency of a foreign facility or subsidiary, re-measurement adjustments are recorded in Other income (expense), net.

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.

The fair values of financial assets and liabilities are evaluated and measured on a recurring basis. As part of that evaluation process, we 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. We historically have not had significant transfers into or out of each hierarchy level.

Financial assets and liabilities that we measure at fair value each period include our derivative instruments and available for sale securities, consisting of debt investment securities and investments related to our deferred compensation plan (see Note 4). Additionally, we measure at fair value once each year at December 31 the plan assets of the Salaried VEBA (defined in Note 4) and our Canadian defined benefit pension plan. We record our remaining financial assets and liabilities at carrying value.

For a majority of our non-financial assets and liabilities, which include goodwill, intangible assets, inventories and property, plant and equipment, we are not required to measure their fair value on a recurring basis. However, if certain triggering events occur (or at least annually for goodwill), 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. Other than the impairment charges discussed below in Property, Plant and Equipment, Net and Goodwill and Intangible Assets, we concluded that none of our other non-financial assets and liabilities subject to fair value assessments on a non-recurring basis required a material adjustment to the carrying amount of such assets and liabilities during the years ended December 31, 2017 and December 31, 2016.

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 commercial paper, money market funds and other highly liquid investments, which are classified within Level 1 of the fair value hierarchy with the exception of commercial paper, which is classified within Level 2 of the fair value hierarchy (see Note 7).

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 14). From time to time, such restricted funds could be returned to us or we could be required to pledge additional cash.

Available for Sale Securities. We account for investments in certain marketable debt securities as available for sale securities. Such securities are recorded at fair value (see Note 7), with net unrealized gains and losses, net of income taxes, reflected in Accumulated other comprehensive income (loss) as a component of Stockholders' equity. Realized gains and losses from the sale of marketable debt securities, if any, are determined on a specific identification basis. Debt investment securities with an original maturity of 90 days or less are classified as Cash and cash equivalents (see Note 2). Debt investment securities with an original maturity of greater than 90 days are presented as Short-term investments on the Consolidated Balance Sheets. In addition to debt investment securities, we also hold assets in various investment funds managed by a third-party trust in connection with our deferred compensation program (see Note 4).

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 to 90 days. For the majority of our receivables, we establish an allowance for doubtful accounts based upon collection experience and other factors. On certain other receivables where we are 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 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 2017, 2016 and 2015 were immaterial to the consolidated financial statements.

Inventories. Inventories are stated at the lower of cost or market value. On March 31, 2016, we recorded a lower of cost or market inventory write-down of $4.9 million, as a result of a decrease in our net realizable value of inventory. The net realizable value reflected commitments as of that date from customers to purchase our inventory at prices that exceeded the Midwest Transaction Price ("Midwest Price"), which reflects the primary aluminum supply/demand dynamics in North America, reduced by an approximate normal profit margin. There were no additional lower of cost or market inventory adjustments since the quarter ended March 31, 2016.

Finished products, work-in-process and raw material inventories are stated on the last-in, first-out ("LIFO") basis. At

December 31, 2017, the current cost of our inventory exceeded its stated LIFO value by $24.3 million. The stated LIFO value of our inventory represented its net realizable value (less a normal profit margin) and exceeded the current cost of our inventory by $8.5 million at December 31, 2016. Other inventories are stated on the first-in, first-out 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. All of our inventories at December 31, 2017 and December 31, 2016 were included in the Fabricated Products segment (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 first-in, first-out 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 current operating cycle.

Property, Plant and Equipment, Net. Property, plant and equipment, net is recorded at cost and includes construction in progress (see Note 2). Interest related to the construction of qualifying assets is capitalized as part of the construction costs. The amount of interest expense capitalized as construction in progress was $2.2 million, $2.9 million and $1.8 million during 2017, 2016 and 2015, respectively.

Depreciation is computed using the straight-line method at rates based on the estimated useful lives of the various classes of assets. Capital lease assets and leasehold improvements are depreciated on a straight-line basis over the shorter of the estimated useful lives of the assets or the lease term. The principal estimated useful lives are as follows:



	Range (in years)
Land improvements	3	-	25
Buildings and leasehold improvements	15	-	45
Machinery and equipment	1	-	24
Capital lease assets	3	-	5

Depreciation expense is not included in Cost of products sold, excluding depreciation and amortization and other items, but is included in Depreciation and amortization.

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(s) in measuring whether the asset(s) are recoverable. Measurement of the amount of impairment, if any, is based on the difference between the carrying value of the asset(s) and the estimated fair value of such asset(s). Fair value is determined through a series of standard valuation techniques.

We recorded impairment charges of $0.8 million, $0.2 million and $0.1 million in 2017, 2016 and 2015, respectively, to reflect the scrap value of idled assets we determined not to deploy for future use. Asset impairment charges are included in Other operating charges, net in the Statements of Consolidated Income (Loss) and are included in the Fabricated Products segment.

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.

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. 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 3 for a discussion of the goodwill impairment charge recorded during 2017 related to the operations at our Chandler, Arizona (Extrusion) facility, as well as the non-cash impairment charge recorded during 2016 related to one of our customer relationship intangible assets.

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, alloying metals, and 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 respond promptly to changes in market factors.

We reflect the fair value of all of our derivative instruments on our Consolidated Balance Sheets (see Note 7). The carrying values of hedges settling within one year are included in Prepaid expenses and other current assets or Other accrued liabilities. Carrying values for hedges settling beyond one year are included in Other assets or Long-term liabilities.

We do not meet the documentation requirements for hedge (deferral) accounting related to aluminum and energy derivatives. Accordingly, we record unrealized gain or loss associated with these hedges in the Statements of Consolidated Income (Loss) within Unrealized (gain) loss on derivative instruments. As such derivatives settle, we reverse any previously recorded unrealized gain or loss associated with these hedges and record the realized gain or loss within Cost of products sold, excluding depreciation and amortization and other items.

Forward swap contracts for zinc and copper ("Alloy Hedges") used in our fabrication operations are designated and qualify as cash flow hedges. Unrealized gain and loss associated with the Alloy Hedges are deferred in Other comprehensive income, net of tax. As Alloy Hedges settle, we reverse any unrealized gain or loss previously recorded within Other comprehensive income, net of tax associated with settling Alloy Hedges and record the realized gain or loss within Cost of products sold, excluding depreciation and amortization and other items.

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. Our undiscounted workers' compensation liabilities were estimated at $24.8 million and $26.8 million at December 31, 2017 and December 31, 2016, respectively. However, we account for our workers' compensation accrued liability on a discounted basis, using a discount rate of 2.25% at December 31, 2017 and 2.00% at December 31, 2016. Accrued liabilities for employee healthcare benefits, which are estimates of unpaid incurred medical and prescription drug costs as provided by our healthcare administrators, were $3.5 million and $3.6 million at December 31, 2017 and December 31, 2016, respectively.

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 and may be capitalized as part of construction in progress (see Note 2 and Note 8).

Conditional Asset Retirement Obligations ("CAROs"). We have CAROs at several of our Fabricated Products facilities. Our CAROs can be separated into two primary categories: (i) legal obligations related to the removal and disposal of asbestos and (ii) asset retirement obligations 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, ceilings or piping) 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 9).

Environmental Contingencies. With respect to environmental loss contingencies, we record a loss contingency whenever a contingency is probable and reasonably estimable (see Note 9). 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 Cost of products sold, excluding depreciation and amortization and other items in the 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 the Statements of Consolidated Income (Loss).

Recognition of Sales. Sales are generally recognized on a gross basis when all of the following criteria are met: (i) persuasive evidence of an arrangement exists; (ii) title, ownership and risk of loss has passed to the customer; (iii) the price to the customer is fixed or determinable; and (iv) collection of the resulting receivable is reasonably assured. 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.

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 SG&A and R&D, are expensed as incurred. Advertising costs for 2017, 2016 and 2015 were $0.7 million, $0.4 million and $1.2 million, respectively.

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 2017, 2016 and 2015 were $10.0 million, $10.2 million and $9.5 million, respectively.

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

Leases. For leases that contain predetermined fixed escalations of the minimum rent, we recognize the related rent expense on a straight-line basis from the date we take possession of the property to the end of the initial lease term. We record 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.

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 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 performance conditions pertaining to our cost performance and awards with performance conditions pertaining to our economic value added performance are valued based on our stock price at the date of grant. For more information on our stock-based compensation, see Note 6.

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. For performance shares with performance conditions pertaining to our cost performance and economic value added 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 6).

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 Accounting Standards Codification ("ASC") Topic 740, Income Taxes ("ASC 740"), we use a "more likely than not" threshold for recognition of tax attributes that are subject to uncertainties and measure 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 12).

New Accounting Pronouncements. Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"), was issued in May 2014 and requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, ASU 2014-09 was amended by ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which defers the effective date of ASU 2014-09 by one year for all entities and permits early adoption on a limited basis. ASU 2014-09 was subsequently amended by five additional pronouncements that are applicable to us: (i) ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing; (ii) ASU No. 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting; (iii) ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients; (iv) ASU No. 2016-20, Revenue from Contracts with Customers (Topic 606): Technical Corrections and Improvements to Topic 606; and (v) ASU No. 2017-14, Income Statement - Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606).

The primary change to our accounting policies of adopting ASU 2014-09 and its subsequent amendments discussed above (together "ASC 606") will relate to the timing of revenue recognition. Previously, we recognized revenue upon the transfer of risks and title, which was typically not until the product shipped or reached its destination. We will continue to recognize revenue upon product shipment or delivery under ASC 606 for "point-in-time" sales (under certain contracts). However, upon adopting ASC 606, contract sales for a majority of our Aero/HS products and a substantial portion of our Automotive Extrusions will convert from point-in-time to over-time recognition. On these contract sales, we will accelerate revenue recognition throughout the production process.

We do not believe adopting ASC 606 will result in: (i) a change in the number of distinct performance obligations within our contractual arrangements; (ii) a change in our current capitalization and deferral policies; (iii) a change in our accounting for contract acquisition and fulfillment costs; (iv) additional contract liability balances; or (v) the adjustment of the amount of promised consideration from our customers for the effects of significant financing components. Additionally, we plan to 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).

As of December 31, 2017: (i) our review of our customer contracts was complete; (ii) our systems were modified to track information needed to apply ASC 606; and (iii) our employees were trained on the changes to revenue recognition policies and work procedures. We will adopt ASC 606 effective January 1, 2018 by recognizing a cumulative-effect adjustment to increase the 2018 opening balance of Retained earnings for the tax-adjusted gross profit of over-time products that were either in work-in-process, in finished goods or in transit to our customers as of December 31, 2017. We expect our adoption of ASC 606 to result in a cumulative-effect adjustment relating to the early recognition of approximately $55.6 million of Net sales based on the application of guidance to contracts not completed at the date of adoption. The cumulative-effect adjustment will be recorded in our opening balance sheet for the year ended December 31, 2018 as: (i) a Contract asset of $55.6 million; (ii) a reduction in Inventories of $42.2 million; (iii) a reduction in Deferred tax assets, net of $3.3 million; and (iv) an increase in Retained earnings of $10.1 million. We believe the impact of adopting ASC 606 will predominantly relate to the timing of revenue recognition and we do not expect it to have a material impact to our quarter-over-quarter or year-over-year results. However, changes in product mix and the stage of product completion at the end of each quarter could result in some unanticipated variability.

ASU No. 2016-02, Leases (Topic 842): Amendments to the Financial Accounting Standards Board Accounting Standards Codification ("ASU 2016-02"), was issued in February 2016. Under ASU 2016-02, lessees will need to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease). For income statement purposes, a dual model was retained, requiring leases to be classified as either operating or finance. Operating leases will result in straight-line expense (similar to current operating leases) while finance leases will result in a front-loaded expense pattern (similar to current capital leases). ASU 2016-02 becomes effective for us in the first quarter of 2019. We are currently assessing the impact and expect the adoption of this ASU in 2019 to have a material impact on our consolidated financial statements.

ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities ("ASU 2017-12"), was issued in August 2017. The amendments under ASU 2017-12 refine and expand hedge accounting requirements for both financial (e.g., interest rate) and commodity risks. Its provisions create more transparency around how economic results are presented, both on the face of the financial statements and in the related notes. It also makes certain targeted improvements to simplify the application of hedge accounting guidance. We do not expect to record a cumulative effect adjustment as a result of early adopting ASU 2017-12 in the first quarter of 2018; however, we plan to designate a significant portion of our commodity hedges as cash flow hedges beginning January 1, 2018. We therefore expect to significantly reduce or eliminate the mark-to-market adjustments that have historically been recorded within Unrealized (gain) loss on derivative instruments. These adjustments will instead be recorded within Accumulated other comprehensive loss beginning in the first quarter of 2018.

We do not anticipate any material impact on our consolidated financial statements upon the adoption of the following accounting pronouncements: (i) ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities; (ii) ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments; (iii) ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost; and (iv) ASU No. 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting.

There were no material impacts on our consolidated financial statements resulting from our early adoption in the first quarter of 2017 of the following accounting pronouncements: (i) ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments; (ii) ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash; and (iii) ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.

Supplemental Balance Sheet Information

12 Months Ended

Dec. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental Balance Sheet Information



	December 31, 2017			December 31, 2016
	(In millions of dollars)
Cash and Cash Equivalents
Cash and money market funds	$	23.5		$	37.9
Commercial paper	27.6			17.3
Total	$	51.1		$	55.2

Trade Receivables, net
Billed trade receivables	$	165.9		$	138.2
Unbilled trade receivables	0.3			0.3
Trade receivables, gross	166.2			138.5
Allowance for doubtful receivables	(1.2		)	(0.8		)
Trade receivables, net	$	165.0		$	137.7

Inventories
Finished products	$	63.8		$	73.8
Work-in-process	78.3			71.7
Raw materials	61.3			51.1
Operating supplies	4.5			5.0
Total	$	207.9		$	201.6

Property, Plant and Equipment, net
Land and improvements	$	21.1		$	22.7
Buildings and leasehold improvements	92.1			88.6
Machinery and equipment	689.1			615.1
Construction in progress	35.1			34.8
Property, plant and equipment – gross	837.4			761.2
Accumulated depreciation	(267.9		)	(230.6		)
Assets held for sale	1.9			0.3
Property, plant and equipment, net	$	571.4		$	530.9

Other Accrued Liabilities
Uncleared cash disbursements	$	7.3		$	5.8
Accrued income taxes and other taxes payable	6.8			4.3
Accrued annual contribution to VEBAs – Note 4	15.7			20.0
Accrued interest	2.9			2.9
Other	7.8			7.1
Total	$	40.5		$	40.1



	December 31, 2017		December 31, 2016
	(In millions of dollars)
Long-Term Liabilities
Workers’ compensation accruals	$	22.6	$	25.0
Long-term environmental accrual – Note 9	15.8		15.8
Long-term portion of contingent contribution to Union VEBA – Note 4	—		12.8
Other long-term liabilities	21.6		19.6
Total	$	60.0	$	73.2

Supplemental Balance Sheet Information



	December 31, 2017			December 31, 2016
	(In millions of dollars)
Cash and Cash Equivalents
Cash and money market funds	$	23.5		$	37.9
Commercial paper	27.6			17.3
Total	$	51.1		$	55.2

Trade Receivables, net
Billed trade receivables	$	165.9		$	138.2
Unbilled trade receivables	0.3			0.3
Trade receivables, gross	166.2			138.5
Allowance for doubtful receivables	(1.2		)	(0.8		)
Trade receivables, net	$	165.0		$	137.7

Inventories
Finished products	$	63.8		$	73.8
Work-in-process	78.3			71.7
Raw materials	61.3			51.1
Operating supplies	4.5			5.0
Total	$	207.9		$	201.6

Property, Plant and Equipment, net
Land and improvements	$	21.1		$	22.7
Buildings and leasehold improvements	92.1			88.6
Machinery and equipment	689.1			615.1
Construction in progress	35.1			34.8
Property, plant and equipment – gross	837.4			761.2
Accumulated depreciation	(267.9		)	(230.6		)
Assets held for sale	1.9			0.3
Property, plant and equipment, net	$	571.4		$	530.9

Other Accrued Liabilities
Uncleared cash disbursements	$	7.3		$	5.8
Accrued income taxes and other taxes payable	6.8			4.3
Accrued annual contribution to VEBAs – Note 4	15.7			20.0
Accrued interest	2.9			2.9
Other	7.8			7.1
Total	$	40.5		$	40.1



	December 31, 2017		December 31, 2016
	(In millions of dollars)
Long-Term Liabilities
Workers’ compensation accruals	$	22.6	$	25.0
Long-term environmental accrual – Note 9	15.8		15.8
Long-term portion of contingent contribution to Union VEBA – Note 4	—		12.8
Other long-term liabilities	21.6		19.6
Total	$	60.0	$	73.2

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill. Goodwill is related to our acquisitions of the Chandler, Arizona (Extrusion) facility and the Florence, Alabama facility and is included in the Fabricated Products segment. The carrying value of our goodwill was $18.8 million as of December 31, 2017 and $37.2 million at both the beginning and the end of the year ended December 31, 2016. The carrying value as of December 31, 2017 included accumulated impairment of $18.4 million. There was no accumulated impairment reflected in the carrying values at both the beginning and the end of the year ended December 31, 2016.

Several factors identified in a qualitative review in the quarter ended June 30, 2017 indicated that long-term demand for hard alloy extruded shapes produced at the Chandler, Arizona (Extrusion) facility was less than previously assumed. Such factors included: (i) reduced build rates of wide body commercial aircraft; (ii) continued low build rates for business jets; and (iii) additional substitution away from hard alloy extruded shapes in favor of composites, titanium and/or aerospace aluminum plate in the manufacture of commercial aircraft. After testing for goodwill impairment applying Level 3 inputs and a combination of an income approach using the estimated discounted cash flow and a market-based valuation methodology, we impaired the carrying value of the goodwill related to our Chandler, Arizona (Extrusion) facility by $18.4 million as of June 30, 2017. As this goodwill is deductible for income tax purposes, the deferred tax effects were included in the impairment charge and income tax provision.

During our annual goodwill impairment test in the quarter ending December 31, 2017, we performed a quantitative impairment test and determined that no additional impairment of our goodwill was required.

Intangible Assets. In 2017 and 2016, our identifiable intangible assets related to acquired finite-lived customer relationships. Information regarding the gross carrying amount and accumulated amortization of these intangible assets was as follows as of each period presented:



	December 31, 2017			December 31, 2016
	(In millions of dollars)
Gross carrying amount	$	34.7		$	34.7
Accumulated amortization	(9.7		)	(8.3		)
Net carrying amount	$	25.0		$	26.4

We recorded a $2.6 million non-cash impairment charge within Other operating charges, net during the quarter ended September 30, 2016 due to the loss of a customer. We identified no other indicators of impairment associated with the remainder of our intangible assets during the years ended December 31, 2017, December 31, 2016 or December 31, 2015.

Amortization expense relating to definite-lived intangible assets is recorded in the Fabricated Products segment over a weighted-average useful life of 25 years. Such expense was $1.4 million for 2017, $1.5 million for 2016, and $1.6 million for 2015. The expected amortization of intangible assets for each of the next five calendar years is $1.4 million and $18.0 million for years thereafter.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Employee Benefits

12 Months Ended

Dec. 31, 2017

Retirement Benefits [Abstract]

Employee Benefits

Employee Plans. Employee benefit plans include:

•

A defined contribution 401(k) savings plan for hourly bargaining unit employees at nine of our production facilities based on the specific collective bargaining agreement at each facility. For active bargaining unit employees at three of these production facilities, we are required to make fixed rate contributions. For active bargaining unit employees at one of these production facilities, we are required to match certain employee contributions. For active bargaining unit employees at three of these production facilities, we are required to make both fixed rate contributions and concurrent matches. For active bargaining unit employees at two remaining production facilities, we are not required to make any contributions. Fixed rate contributions either: (i) range from (in whole dollars) $800 to $2,400 per employee per year, depending on the employee’s age, or (ii) vary between 2% to 10% of the employees’ compensation depending on their age and years of service for employees hired prior to January 1, 2004 or is a fixed 2% annual contribution for employees hired on or after January 1, 2004.

•

A defined contribution 401(k) savings plan for salaried and certain hourly employees providing for a concurrent match of up to 4% of certain contributions made by employees plus an annual contribution of between 2% and 10% of their compensation depending on their age and years of service to employees hired prior to January 1, 2004. All new hires on or after January 1, 2004 receive a fixed 2% contribution annually.

•

A defined benefit plan for salaried employees at our London, Ontario facility, with annual contributions based on each salaried employee’s age and years of service. At December 31, 2017, approximately 63% of the plan assets were invested in equity securities and 33% of plan assets were invested in fixed income securities. The remaining plan assets were invested in short-term securities. Our investment committee reviews and evaluates the investment portfolio. The asset mix target allocation on the long-term investments is approximately 65% in equity securities, 30% in fixed income securities and 5% in short-term securities. The plan assets of our Canadian pension plan are managed by advisors selected by us, with the investment portfolio subject to periodic review and evaluation by our investment committee. The investment of assets in the Canadian pension plan is based upon the objective of maintaining a diversified portfolio of investments in order to minimize concentration of credit and market risks (such as interest rate, currency, equity price and liquidity risks). The degree of risk and risk tolerance take into account the obligation structure of the plan, the anticipated demand for funds and the maturity profiles required from the investment portfolio in light of these demands.

•

A non-qualified, unfunded, unsecured plan of deferred compensation for key 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 ("Code"). 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 at all times subject to the claims of our general creditors and no participant has a claim to any assets of the trust. Plan participants are eligible to receive distributions from the trust subject to vesting and other eligibility requirements. Assets in the rabbi trust relating to the deferred compensation plan are accounted for as available for sale securities and are included in Other assets on the Consolidated Balance Sheets (see "Fair Value of Plan Assets" below). Liabilities relating to the deferred compensation plan are included in Long-term liabilities on the Consolidated Balance Sheets.


•	An employment agreement with our chief executive officer extending through July 15, 2020. We also provide certain members of senior management, including each of our named executive officers, with benefits 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.

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 voluntary employees' beneficiary association ("VEBA") that provides healthcare cost, medical cost and long-term care insurance cost reimbursement benefits ("Salaried VEBA"). The Salaried VEBA is managed by trustees who determine the level and type of benefits to offer to its participants and who appoint an independent fiduciary to manage the assets of the Salaried VEBA. The Salaried VEBA trustees are independent of us and not under our control. However, because we have an ongoing obligation with no express termination date to make annual variable cash contributions to the Salaried VEBA, we account for it as a defined benefit plan in our financial statements.

Our annual cash contribution payable to the Salaried VEBA varies from a minimum of zero to a maximum of $2.9 million, depending on our annual cash flow. We paid the maximum of $2.9 million to the Salaried VEBA in 2017 and we determined that in 2018 we will also pay the maximum of $2.9 million as our variable cash contribution. Such amount was calculated with respect to the 2017 calendar year and recorded within Other accrued liabilities as of December 31, 2017 (see Note 2). It will be paid during the first quarter of 2018.

Union VEBA Postretirement Obligation. Certain other eligible retirees represented by certain unions along with their surviving spouses and eligible dependents participate in a separate VEBA ("Union VEBA") that provides healthcare and medical cost reimbursement benefits. We had an obligation to make variable cash contributions to the Union VEBA with respect to periods through September 30, 2017. Our final cash contribution for the nine months ended September 30, 2017, totaling $12.8 million, will be paid during the first quarter of 2018 and was recorded within Other accrued liabilities (see Note 2). The variable contribution relating to 2016 in the amount of $17.1 million was paid in 2017.

We terminated defined benefit plan accounting with respect to the Union VEBA in 2015, after determining that our obligation to make annual variable contributions to the Union VEBA would expire as of September 2017. This resulted in a non-cash loss of $307.8 million, net of a $184.4 million tax benefit, as we removed the Union VEBA net assets and related deferred tax liabilities from our Consolidated Balance Sheet and accrued amounts estimated to be paid through the expiration of our obligation.

Key Assumptions. The following data presents the key assumptions used and the amounts reflected in our consolidated financial statements with respect to our Canadian pension plan and the Salaried VEBA. We use a December 31 measurement date for all of the plans.

Assumptions used to determine benefit obligations as of the periods presented were as follows:



	Canadian Pension Plan				Salaried VEBA
	December 31, 2017		December 31, 2016		December 31, 2017		December 31, 2016
Discount rate	3.40	%	3.80	%	3.20	%	3.60	%
Rate of compensation increase	3.00	%	3.00	%	—		—

Key assumptions made in computing the net obligation of the Salaried VEBA and in total include:

With respect to Salaried VEBA assets:


•	Based on the information received from the Salaried VEBA at December 31, 2017 and at December 31, 2016, the Salaried VEBA assets were invested in various managed proprietary funds.


•	Our variable payment, if any, is treated as a funding/contribution policy and not counted as a Salaried VEBA asset at December 31 for actuarial purposes.

With respect to Salaried VEBA obligations:


•	The accumulated postretirement benefit obligation ("APBO") for the Salaried VEBA was computed based on the level of benefits being provided by it at December 31, 2017 and December 31, 2016.


•	Since the Salaried VEBA was paying a fixed annual amount to its participants at both December 31, 2017 and December 31, 2016, no future cost trend rate increase has been assumed in computing the APBO for the Salaried VEBA.

Assumptions used to determine net periodic benefit cost for the years ended December 31 were:



	Canadian Pension Plan						Salaried VEBA
	2017		2016		2015		2017		2016		2015
Discount rate	3.80	%	4.10	%	4.00	%	3.60	%	3.90	%	3.60	%
Expected long-term return on plan assets¹	4.45	%	4.45	%	5.10	%	7.75	%	7.75	%	7.75	%
Rate of compensation increase	3.00	%	3.00	%	3.00	%	—		—		—

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^1.	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.

Benefit Obligations and Funded Status. The following table presents the benefit obligations and funded status of our Canadian pension and the Salaried VEBA as of December 31, 2017 and December 31, 2016 and the corresponding amounts that are included in our Consolidated Balance Sheets (in millions of dollars):



	Canadian Pension Plan						Salaried VEBA
	2017			2016			2017			2016
Change in benefit obligation:
Obligation at beginning of year	$	7.0		$	6.1		$	86.8		$	77.9
Foreign currency translation adjustment	0.5			0.2			—			—
Service cost	0.3			0.3			—			—
Interest cost	0.3			0.3			3.0			2.9
Prior service cost¹	—			—			7.3			8.4
Actuarial loss (gain)²	0.6			0.3			(0.5		)	4.1
Plan participants contributions	0.1			—			—			—
Benefits paid by Company	(0.3		)	(0.2		)	—			—
Benefits paid by Salaried VEBA	—			—			(6.6		)	(6.5		)
Obligation at end of year³	8.5			7.0			90.0			86.8

Change in plan assets:
Fair market value of plan assets at beginning of year	6.1			5.7			58.2			58.9
Foreign currency translation adjustment	0.5			0.2			—			—
Actual return on assets	0.5			0.1			3.6			2.9
Plan participants contributions	0.1			—			—			—
Company contributions	0.4			0.3			2.9			2.9
Benefits paid by Company	(0.3		)	(0.2		)	—			—
Benefits paid by Salaried VEBA	—			—			(6.6		)	(6.5		)
Fair market value of plan assets at end of year	7.3			6.1			58.1			58.2
Net funded status⁴	$	(1.2	)	$	(0.9	)	$	(31.9	)	$	(28.6	)

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^1.	The prior service cost relating to the Salaried VEBA in both 2017 and 2016 resulted from increases in the annual healthcare reimbursement benefit starting in 2018 and 2017, respectively, for plan participants.


^2.	The actuarial gain relating to the Salaried VEBA in 2017 was comprised of: (i) a $2.5 million gain due to changes in census information; (ii) a $1.0 million gain due to a change in the projected utilization rate; offset by (iii) a $3.0 million loss due to a change in the discount rate.

The actuarial loss relating to the Salaried VEBA in 2016 was comprised of: (i) a $2.3 million loss due to changes in census information; (ii) a $2.2 million loss due to a reduction in the discount rate; offset by (iii) a $0.4 million gain due to a change in the projected utilization rate.


^3.	For the Canadian pension plan, the benefit obligation is the projected benefit obligation. For the Salaried VEBA, the benefit obligation is the APBO.


^4.	Net funded status of $31.9 million and $28.6 million relating to the Salaried VEBA at December 31, 2017 and December 31, 2016, respectively, was presented as Net liabilities of Salaried VEBA on the Consolidated Balance Sheet.

The accumulated benefit obligation for the Canadian defined benefit pension plan was $7.9 million and $6.4 million at December 31, 2017 and December 31, 2016, respectively. We expect to contribute $0.5 million to the Canadian pension plan in 2018.

As of December 31, 2017, the net benefits expected to be paid in each of the next five fiscal years and in the aggregate for the five fiscal years thereafter are as follows (in millions of dollars):



	Benefit Payments Due by Period
	2018		2019		2020		2021		2022		2023-2027
Canadian pension plan benefit payments	$	0.3	$	0.3	$	0.3	$	0.4	$	0.3	$	1.9
Salaried VEBA benefit payments¹	7.5		7.3		7.2		7.0		6.8		30.3
Total net benefits	$	7.8	$	7.6	$	7.5	$	7.4	$	7.1	$	32.2

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^1.	Such amounts are based on benefit amounts and certain key assumptions obtained from the Salaried VEBA.

The amount of loss included in the Consolidated Balance Sheets (within Accumulated other comprehensive loss) associated with our Canadian defined benefit pension plan and the Salaried VEBA (before tax) that had not yet been reflected in net periodic benefit cost was as follows at December 31 (in millions of dollars):



	Canadian Pension Plan						Salaried VEBA
	2017			2016			2017			2016
Accumulated net actuarial loss	$	(1.9	)	$	(1.5	)	$	(17.5	)	$	(18.3	)
Transition assets	0.1			0.1			—			—
Prior service cost	—			—			(42.7		)	(40.2		)
Cumulative loss reflected in Accumulated other comprehensive loss	$	(1.8	)	$	(1.4	)	$	(60.2	)	$	(58.5	)

The amount in Accumulated other comprehensive loss that has not yet been recognized as a component of net periodic postretirement benefit cost at December 31, 2017 that is expected to be recognized in 2018 for the Canadian pension plan was nominal at December 31, 2017. For the Salaried VEBA, such amounts were $6.2 million at December 31, 2017. Of the $6.2 million relating to the Salaried VEBA, $5.4 million is related to amortization of prior service cost and $0.8 million is related to amortization of net actuarial loss. See Note 10 for reclassification adjustments of other comprehensive (loss) income that were recognized as components of net periodic benefit cost for 2017, 2016 and 2015.

Fair Value of Plan Assets. The plan assets of our Canadian pension plan 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. Valuation of certain Canadian pension plan and Salaried VEBA assets are based on the net asset value ("NAV") of shares held by the plans at year-end using the NAV practical expedient.

With respect to the Salaried VEBA, the investment advisors providing the valuations are engaged by the Salaried VEBA trustees. Certain Salaried VEBA 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. Valuation of other Salaried VEBA invested plan assets is based on significant observable inputs (e.g., valuations derived from actual market transactions, broker-dealer supplied valuations or correlations between a given U.S. market and a non-U.S. security). Valuation model inputs can generally 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.

In addition to the Canadian pension plan and Salaried VEBA, we also hold assets in various investment funds at certain registered investment companies in connection with our deferred compensation program. Such assets are accounted for as available for sale securities within Level 2 of the fair value hierarchy and are measured and recorded at fair value based on their quoted market prices (see Note 1).

The following table presents the fair value of plan assets, classified under the appropriate level of the fair value hierarchy, as of each period presented (in millions of dollars):

Level 1

Level 2

Level 3

Total

As of December 31, 2017:

Plan Assets in the Fair Value Hierarchy: