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Cover Page - USD ($) $ in Billions	12 Months Ended
Cover Page - USD ($) $ in Billions	Dec. 31, 2019	Feb. 14, 2020	Jun. 30, 2019
Cover page.
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2019
Document Transition Report	false
Entity File Number	1-09447
Entity Registrant Name	KAISER ALUMINUM CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	94-3030279
Entity Address, Address Line One	27422 Portola Parkway
Entity Address, Address Line Two	Suite 200
Entity Address, City or Town	Foothill Ranch
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92610-2831
City Area Code	(949)
Local Phone Number	614-1740
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	KALU
Security Exchange Name	NASDAQ
Entity Well Known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 1.5
Entity Common Stock, Shares Outstanding		15,854,182
Documents Incorporated by Reference	Documents Incorporated by Reference. Certain portions of the registrant's definitive proxy statement related to the registrant's 2020 annual meeting of stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K.
Entity Central Index Key	0000811596
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Amendment Flag	false

Consolidated Balance Sheet - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 264.3	$ 125.6
Short-term investments	78.7	36.7
Receivables:
Trade receivables, net	167.1	179.8
Other	18.1	25.6
Contract assets	54.6	54.9
Inventories	177.6	215.1
Prepaid expenses and other current assets	19.4	18.9
Total current assets	779.8	656.6
Property, plant and equipment, net	622.0	611.8
Operating lease assets	25.8	0.0
Deferred tax assets, net	11.8	35.9
Intangible assets, net	29.6	32.4
Goodwill	18.8	44.0
Other assets	38.4	38.6
Total	1,526.2	1,419.3
Current liabilities:
Accounts payable	92.0	121.4
Accrued salaries, wages and related expenses	34.4	40.1
Other accrued liabilities	44.0	44.0
Total current liabilities	170.4	205.5
Long-term portion of operating lease liabilities	25.2	0.0
Net liabilities of Salaried VEBA	32.6	32.4
Long-term liabilities	4.5	4.2
Long-term liabilities	67.0	66.4
Long-term debt	492.6	370.4
Total liabilities	792.3	678.9
Commitments and contingencies
Stockholders' equity:
Preferred stock, 5,000,000 shares authorized at both December 31, 2019 and December 31, 2018; no shares were issued and outstanding at December 31, 2019 and December 31, 2018	0.0	0.0
Common stock, par value $0.01, 90,000,000 shares authorized at both December 31, 2019 and December 31, 2018; 22,550,827 shares issued and 15,868,304 shares outstanding at December 31, 2019; 22,471,705 shares issued and 16,234,603 shares outstanding at December 31, 2018	0.2	0.2
Additional paid in capital	1,062.9	1,059.3
Retained earnings	172.8	150.2
Treasury stock, at cost, 6,682,523 shares at December 31, 2019 and 6,237,102 shares at December 31, 2018	(463.4)	(420.5)
Accumulated other comprehensive loss	(38.6)	(48.8)
Total stockholders' equity	733.9	740.4
Total	$ 1,526.2	$ 1,419.3

Consolidated Balance Sheet (Parenthetical) - $ / shares	Dec. 31, 2019	Dec. 31, 2018
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	22,550,827	22,471,705
Common Stock, Shares, Outstanding	15,868,304	16,234,603
Treasury Stock, Shares	6,682,523	6,237,102

Statements of Consolidated Income - USD ($)
shares in Thousands, $ in Millions

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Income Statement [Abstract]

Net sales

$ 1,514.1

$ 1,585.9

$ 1,397.5

Cost of products sold, excluding depreciation and amortization and other items

^[1]

1,215.2

1,300.7

1,085.9

Costs and expenses:

Depreciation and amortization

49.1

43.9

39.7

Selling, general, administrative, research and development

98.0

96.3

97.5

Goodwill impairment

25.2

0.0

18.4

Other operating charges, net

0.9

1.4

0.8

Total costs and expenses

1,388.4

1,442.3

1,242.3

Operating income

125.7

143.6

155.2

Other expense:

Interest expense

(24.6)

(22.7)

(22.2)

Other expense, net – Note 12

(20.7)

(0.9)

0.0

Income before income taxes

80.4

120.0

133.0

Income tax provision

(18.4)

(28.3)

(87.6)

Net income

$ 62.0

$ 91.7

$ 45.4

Net income per common share:

Basic (in dollars per share)

$ 3.88

$ 5.53

$ 2.67

Diluted (in dollars per share)

$ 3.83

$ 5.43

$ 2.63

Weighted-average number of common shares outstanding (in thousands):

Basic (in shares)

15,997

16,585

16,996

Diluted (in shares)

16,203

16,874

17,259

Dividends declared per common share (in dollars per share)

$ 2.40

$ 2.20

$ 2.00

[1]

See Note 8 for discussion of our adoption of ASU 2017-12 (as defined in Note 1) in 2018 and the related reclassification of amounts in 2017 that were presented in the Statements of Consolidated Income within Unrealized (gain) loss on derivative instruments and are now presented within Cost of products sold, excluding depreciation and amortization and other items ("Cost of products sold").

Statements of Consolidated Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Net income	$ 62.0	$ 91.7	$ 45.4
Defined benefit pension plan and Salaried VEBA	(2.4)	(2.9)	1.4
Available for sale securities	0.0	(0.6)	0.5
Cash flow hedges	7.8	(13.9)	0.7
Other comprehensive income (loss), net of tax – Note 11:
Foreign currency translation	0.0	(0.1)	0.2
Other comprehensive income (loss), net of tax	10.2	(11.7)	0.0
Comprehensive income	$ 72.2	$ 80.0	$ 45.4

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Statement of Consolidated Stockholders' Equity - USD ($)
$ in Millions

Total

Common Stock

Additional Paid In Capital

Retained Earnings

Treasury Stock

Accumulated Other Comprehensive Loss

Before Cumulative Adjustment

Common Stock

Before Cumulative Adjustment

Additional Paid In Capital

Before Cumulative Adjustment

Retained Earnings

Before Cumulative Adjustment

Treasury Stock

Before Cumulative Adjustment

Accumulated Other Comprehensive Loss

Cumulative-effect adjustment

Common Stock

Cumulative-effect adjustment

Additional Paid In Capital

Cumulative-effect adjustment

Retained Earnings

Cumulative-effect adjustment

Treasury Stock

Cumulative-effect adjustment

Accumulated Other Comprehensive Loss

Beginning balance, shares at Dec. 31, 2016

17,651,461

Beginning balance at Dec. 31, 2016

$ 804.7

$ 0.2

$ 1,047.4

$ 75.2

$ (281.4)

$ (36.7)

Stockholders' Equity [Roll Forward]

Net income

$ 45.4

Common shares issued (including impacts from Long-Term Incentive programs) (shares)

117,751

Common shares issued (including impacts from Long-Term Incentive programs)

0.2

$ 0.2

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)

Repurchase of common stock, shares

^[1]

(938,680)

Repurchase of common stock

^[1]

(77.8)

$ (77.8)

Cancellation of treasury stock

0.0

(0.2)

0.4

0.6

Cash dividends on common stock

^[2]

(35.0)

Amortization of unearned equity compensation

13.0

Ending balance, shares at Dec. 31, 2017

16,773,586

Ending balance at Dec. 31, 2017

$ (36.7)

$ 746.3

$ 0.2

$ 1,055.9

$ 85.5

$ (358.6)

$ (36.7)

Stockholders' Equity [Roll Forward]

Net income

91.7

Other comprehensive income (loss), net of tax

(11.7)

Common shares issued (including impacts from Long-Term Incentive programs) (shares)

146,363

Common shares issued (including impacts from Long-Term Incentive programs)

0.2

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

(68,195)

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

(6.9)

Repurchase of common stock, shares

^[1]

(617,151)

Repurchase of common stock

^[1]

(61.9)

Cash dividends on common stock

^[2]

(37.7)

Amortization of unearned equity compensation

$ 10.1

10.1

Ending balance, shares at Dec. 31, 2018

16,234,603

Ending balance at Dec. 31, 2018

$ 740.4

$ 0.2

1,059.3

150.2

(420.5)

(48.8)

Stockholders' Equity [Roll Forward]

Net income

62.0

Other comprehensive income (loss), net of tax

10.2

Common shares issued (including impacts from Long-Term Incentive programs) (shares)

137,905

Common shares issued (including impacts from Long-Term Incentive programs)

0.3

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

(58,783)

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

(6.2)

Repurchase of common stock, shares

^[1]

(445,421)

Repurchase of common stock

^[1]

(42.9)

Cash dividends on common stock

^[2]

(39.4)

Amortization of unearned equity compensation

$ 9.5

9.5

Ending balance, shares at Dec. 31, 2019

15,868,304

Ending balance at Dec. 31, 2019

$ 733.9

$ 0.2

$ 1,062.9

$ 172.8

$ (463.4)

$ (38.6)

[1]	Weighted-average repurchase price (dollars per share) for the years ended December 31, 2019, December 31, 2018 and December 31, 2017 was $96.18, $100.28 and $82.97, respectively. At December 31, 2019, $105.6 million remained available to repurchase our common shares pursuant to the stock repurchase program.
[2]	Dividends declared per common share were $2.40, $2.20 and $2.00 during 2019, 2018 and 2017, respectively.

Statement of Consolidated Stockholders' Equity (Parenthetical) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2019 USD ($) $ / shares	Dec. 31, 2019 USD ($) $ / shares
Statement of Financial Position [Abstract]
Weighted-average repurchase price (dollars per share)		$ 96.18
Repurchase amount remaining available \| $	$ 105.6	$ 105.6
Dividends declared per common share (in dollars per share)	$ 0.60	$ 2.40

Statement of Consolidated Cash Flows
$ in Millions

12 Months Ended

Dec. 31, 2019

USD ($)

Dec. 31, 2018

USD ($)

Dec. 31, 2017

USD ($)

Cash flows from operating activities:

Net income

$ 62.0

$ 91.7

$ 45.4

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation of property, plant and equipment

46.3

42.1

38.3

Amortization of definite-lived intangible assets

2.8

1.8

1.4

Amortization of debt discount and debt issuance costs

1.2

1.0

1.2

Deferred income taxes

21.1

36.7

89.0

Non-cash equity compensation

9.8

10.3

13.3

Non-cash asset impairment charges

26.1

1.4

19.2

Loss on extinguishment of debt

20.3

0.0

Gain on disposition of property, plant and equipment

0.0

(0.2)

(0.5)

Gain on disposition of short-term investments

(0.9)

(2.9)

(2.3)

Non-cash defined benefit net periodic postretirement benefit cost

7.0

6.6

4.8

Other non-cash changes in assets and liabilities

(8.6)

(21.9)

15.5

Changes in operating assets and liabilities:

Trade and other receivables

20.2

(22.3)

(30.9)

Contract assets

(0.3)

(0.7)

0.0

Inventories

37.5

(45.0)

(6.3)

Prepaid expenses and other current assets

(1.7)

(0.4)

(1.7)

Accounts payable

(24.5)

29.2

13.0

Accrued liabilities

(7.5)

(2.6)

(4.7)

Annual variable cash contributions to VEBAs

(2.1)

(15.7)

(20.0)

Long-term assets and liabilities, net

5.8

(4.1)

(2.2)

Net cash provided by operating activities

232.3

^[1]

150.2

^[1]

141.5

^[1]

Cash flows from investing activities:

Capital expenditures

(60.2)

(74.1)

(75.5)

Purchase of short-term investments

(132.2)

(135.2)

(247.5)

Purchase of equity securities

(0.7)

(0.9)

0.0

Proceeds from disposition of short-term investments

91.1

283.9

296.9

Cash payment for acquisition of Imperial Machine & Tool Co., net of cash received

0.0

(43.2)

0.0

Proceeds from disposal of property, plant and equipment

0.2

0.6

Net cash (used in) provided by investing activities

(101.8)

^[1]

31.1

^[1]

(25.5)

^[1]

Cash flows from financing activities:

Repayment of principal and redemption premium of 5.875% Senior Notes

(391.5)

0.0

Issuance of 4.625% Senior Notes

500.0

0.0

Cash paid for debt issuance costs

8.8

0.0

Repayment of finance lease

(1.4)

(0.7)

(0.4)

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

(6.2)

(6.9)

(4.5)

Repurchase of common stock

(44.2)

(60.7)

(79.5)

Cash dividends and dividend equivalents paid

(39.4)

(37.7)

(35.0)

Net cash provided by (used in) financing activities

8.5

^[1]

(106.0)

^[1]

(119.4)

^[1]

Net increase (decrease) in cash, cash equivalents and restricted cash during the period

139.0

75.3

(3.4)

Cash, cash equivalents and restricted cash at end of period

264.3

125.6

51.1

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents

$ 278.6

$ 139.6

$ 64.3

[1]	See Note 15 for supplemental disclosure on non-cash transactions.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

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 ("Automotive Extrusions"), general engineering ("GE products") and other industrial ("Other products"). Our business is organized into one operating segment. See Note 16 for additional information regarding our business, product and geographical area information and concentration of risk.

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. We have reclassified certain amounts in prior-period financial statements to conform to the current period's presentation. On the Statements of Consolidated Income, prior period presentation of Unrealized (gain) loss on derivative instruments is now contained within Cost of products sold (see Note 8 for additional details).

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.

Fair Value Measurements. We apply the fair value hierarchy established by GAAP for the recognition and measurement of certain financial assets and liabilities. An asset or liability's fair value classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and consider counterparty risk in our assessment of fair value.

We also review the underlying inputs that are significant to the fair value measurement of financial instruments to determine if a transfer among hierarchy levels is appropriate. 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, equity investments related to our deferred compensation plan and debt investment securities classified as available for sale securities (see Note 5 and Note 8). Prior to our adoption of Accounting Standards Update ("ASU") No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"), equity investments related to our deferred compensation plan were accounted for as available for sale securities. Subsequent to our adoption of ASU 2016-01 on January 1, 2018, changes in the fair value of these equity investments are recorded within Other expense, net (see Note 5 and Note 12). Additionally, we measure at fair value once each year at December 31 our Canadian defined benefit pension plan and the plan assets of the Salaried VEBA (defined in Note 5). In determining the fair value of the plan assets at an annual period end, we utilize primarily the results of valuations supplied by the investment advisors responsible for managing the assets of each plan, which we independently review for reasonableness. We record our remaining financial assets and liabilities at carrying value.

Goodwill is tested for impairment during the fourth quarter on an annual basis, as well as on an interim basis, as warranted, at the time of relevant events and changes in circumstances. Intangible assets with definite lives are initially recognized at fair value and subsequently amortized over the estimated useful lives to reflect the pattern in which the economic benefits of the intangible assets are consumed. In the event the pattern cannot be reliably determined, we use a straight-line amortization method. Whenever events or changes in circumstances indicate that the carrying amount of the intangible assets may not be recoverable, the intangible assets are reviewed for impairment. See Note 4 for a discussion of our business acquisition in 2018 and the goodwill impairment charges we recorded during 2019 and 2017.

For a majority of our remaining non-financial assets and liabilities, which include inventories, debt issuance costs and property, plant and equipment, we are not required to measure their fair value on a recurring basis. However, if certain triggering events occur, an evaluation of the affected non-financial asset or liability will be required, which could result in a reduction to the carrying amount of such asset or liability. See "Property, Plant and Equipment, Net" below for a discussion of impairment charges on idled assets recorded during 2019, 2018 and 2017.

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 8).

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 15). 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 8), with net unrealized gains and losses, net of income taxes, reflected in Accumulated other comprehensive 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 5).

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 2019, 2018 and 2017 were immaterial to the consolidated financial statements.

Inventories. Inventories are stated at the lower of cost or market value. Finished products, work-in-process and raw material inventories are stated on the last-in, first-out ("LIFO") basis. During the year ended December 31, 2019, we decremented a prior year, higher cost LIFO layer which resulted in a charge of $3.6 million. At December 31, 2019 and December 31, 2018, the current cost of our inventory exceeded its stated LIFO value by $11.9 million and $31.7 million, respectively. The stated LIFO value of our inventory represented its net realizable value (less a normal profit margin). 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 (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 next 12 months.

Property, Plant and Equipment, Net. Property, plant and equipment, net, is recorded at cost and includes construction in progress (see Note 2). 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 $1.6 million, $1.7 million and $2.2 million during 2019, 2018 and 2017, respectively.

Depreciation is computed using the straight-line method at rates based on the estimated useful lives of the various classes of assets. Finance 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 estimated useful lives are as follows:



	Range (in years)
Land improvements	3	-	25
Buildings and leasehold improvements	5	-	45
Machinery and equipment	1	-	22
Finance lease assets	2	-	15

Depreciation expense is not included in Cost of products sold, 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.

We recorded impairment charges of $0.9 million, $1.4 million and $0.8 million in 2019, 2018 and 2017, 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.

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.

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, energy and, to a lesser extent, foreign currency exchange rates. We do not use derivative financial instruments for trading or other speculative purposes. Hedging transactions are executed centrally on behalf of all of our operations to minimize transaction costs, monitor consolidated net exposures and allow for increased responsiveness to changes in market factors.

We reflect the fair value of all of our derivative instruments on our Consolidated Balance Sheets (see Note 8). The fair value of hedges settling within one year is included in Prepaid expenses and other current assets or Other accrued liabilities. The fair value of hedges settling beyond one year is included in Other assets or Long-term liabilities. Cash flows related to all of our derivative instruments are reported in the Statements of Consolidated Cash Flows within the same category as the items being hedged.

Prior to our adoption of ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities ("ASU 2017-12"), we did not meet the requirements for hedge (deferral) accounting related to our aluminum and energy derivatives. Accordingly, we recorded unrealized gain or loss associated with these hedges in the Statements of Consolidated Income. Our adoption of ASU 2017-12 on January 1, 2018 has allowed our aluminum and energy derivatives to qualify for hedge (deferral) accounting and, as such, we designated such hedges as cash flow hedges. Forward swap contracts for zinc and copper ("Alloying Metals") used in our fabrication operations are also designated as cash flow hedges. Unrealized gains and losses associated with our cash flow hedges are deferred in Other comprehensive loss, net of tax and reclassified to Cost of products sold when such hedges settle (see Note 8).

From time to time, we enter into foreign currency forward contracts to protect the value of anticipated foreign currency expenses associated with cash commitments for equipment purchases. For the years ended December 31, 2019, December 31, 2018 and December 31, 2017, we did not meet the requirements for hedge (deferral) accounting related to foreign currency derivatives and, as such, gains and losses (both unrealized and realized) related to our foreign currency forward contracts have been reflected as an increase or reduction in Other expense, net.

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 $29.2 million and $27.6 million at December 31, 2019 and December 31, 2018, respectively. However, we account for our workers' compensation accrued liability on a discounted basis (see Note 2), using a discount rate of 1.75% at December 31, 2019 and 3.00% at December 31, 2018. 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, 2019 and December 31, 2018, 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 9).

Conditional Asset Retirement Obligations ("CAROs"). We have CAROs at several of our manufacturing facilities. Our CAROs can be separated into two primary categories: (i) legal obligations related to the removal and disposal of asbestos and (ii) 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, roof, piping or equipment insulation) of certain of our older facilities if such facilities were to undergo major renovation or be demolished. We estimate incremental costs for special handling, removal and disposal costs of materials that may or will give rise to CAROs and then discount the expected costs back to the current year using a credit-adjusted, risk-free rate. When it is unclear when or if CAROs will be triggered, we use probability weighting for possible timing scenarios to determine the probability-weighted liability amounts that should be recognized in our consolidated financial statements (see Note 10).

Environmental Contingencies. With respect to environmental loss contingencies, we record a loss contingency whenever a contingency is probable and reasonably estimable (see Note 10). Accruals for estimated losses from environmental remediation obligations are generally recognized no later than the completion of the remedial feasibility study. Such accruals are adjusted as information develops or circumstances change. Costs of future expenditures for environmental remediation obligations are not discounted to their present value. Accruals for expected environmental costs are included in Other accrued liabilities or Long-term liabilities, as appropriate (see Note 2). Environmental expense relating to continuing operations is included in Cost of products sold in the Statements of Consolidated Income. 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.

Revenue Recognition. We adopted Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 606 ("ASC 606") on January 1, 2018 using the modified retrospective method. The reported results for the years ended December 31, 2019 and December 31, 2018 reflect the application of ASC 606 guidance while the reported results for the periods prior to January 1, 2018 were prepared under the guidance of FASB ASC 605, Revenue Recognition ("ASC 605"). Subsequent to our adoption, we recognize revenue as we fulfill our performance obligations and transfer control of products to our customers. For products that have an alternative use and/or for which we do not have an enforceable right to payment (including a reasonable profit) during the production process, we recognize revenue at a point in time. For products that have no alternative use and for which we have an enforceable right to payment (including a reasonable profit) throughout the production process, we recognize revenue over time. In general, a majority of our Aero/HS products and our Automotive Extrusions are recognized over time, with the remainder of our products recognized at a point in time.

For the majority of our business, contracts with customers begin when we acknowledge a purchase order for a specific customer order of product to be delivered in the near term. These purchase orders are short term in nature, although they may reference a longer term "blanket purchase order" or a "terms and conditions" agreement, both of which may span multiple years. For revenue recognized at a point in time, transfer of control usually occurs upon shipment or upon customer receipt of the product, depending on shipping terms. For contracts recognized over time, control transfer occurs incrementally during our production process as progress is made on fulfilling the performance obligation. We use the input method of determining our progress, capturing direct costs beginning at the point that billet or cast ingot is introduced into production at either the extrusion phase or the rolling phase, respectively. We believe the input method more accurately reflects the transfer of control as it represents the best information available of work completed to date for which we have an enforceable right to payment. For products in production, we recognize revenue using estimates of the cost incurred to date plus a reasonable margin. As the duration of our contracts for accounting purposes is typically less than one year, we do not present quantitative information about the aggregate transaction price allocated to unsatisfied performance obligations at the end of the reporting period.

We adjust the amount of revenue recognized on all products, regardless of timing of revenue recognition, for variable price consideration, which could include metal market price adjustments, volume rebates and sales discounts. We estimate rebate and discount values based on forecasted order data and historical payment trends for specific customers, adjusted as necessary at each reporting period. Accounts receivable is recorded when our right to consideration becomes unconditional. Payment terms for a majority of our domestic customers are 30 days after invoice date. To accommodate shipping time to overseas locations, payment terms for foreign customers are typically several weeks longer than domestic terms. As such, we do not adjust the promised amount of consideration for the effects of a significant financing component as we do not expect the period between the transfer of control of products to our customers and receipt of payment will be greater than one year.

Contract assets primarily relate to our enforceable right to consideration for work completed but not billed at the reporting date on contracts for products recognized over time. Contract assets also include amounts related to our contractual right to consideration for finished goods recognized over time that were in transit as of period end.

Incremental Costs of Obtaining a Contract. We expense the costs of obtaining a contract as incurred as the amortization period of the asset that we otherwise would have recognized is one year or less.

Shipping and Handling Activities. We account for shipping and handling activities that occur after the customer has obtained control of a product as fulfillment activities (i.e., an expense) rather than as a promised service (i.e., a revenue element).

Advertising Costs. Advertising costs, which are included in SG&A and R&D, are expensed as incurred. Advertising costs for 2019, 2018 and 2017 were $0.4 million, $0.3 million and $0.7 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 2019, 2018 and 2017 were $10.5 million, $9.8 million and $10.0 million, respectively.

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

Stock-Based Compensation. Stock-based compensation in the form of service-based awards is provided to executive officers, certain employees and non-employee directors and is accounted for at fair value. We measure the cost of services received in exchange for an award of equity instruments based on the grant-date fair value of the award and the number of awards expected to ultimately vest. The grant-date fair value is determined based on the stock price on the date of grant, adjusted for expected dividends or dividend equivalents to be paid during the vesting period.

We also grant performance-based awards to executive officers and other key employees. The methodology used to value these performance-based awards is based on the nature of the performance conditions within those awards. Awards that are subject to performance conditions pertaining to total shareholder return 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. Holders of performance-based awards receive a one-time payment at the time of issuance of vested shares based on the total dividends they would have received if the vested shares had been held of record from the date of grant through the date of issuance. For more information on our stock-based compensation, see Note 7.

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 7).

Adoption of New Accounting Pronouncements

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 (with amendments issued in 2018) and requires lessees 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 result in straight-line expense (similar to operating leases under the previous guidance) while finance leases result in a front-loaded expense pattern (similar to capital leases under the previous guidance). We adopted ASU 2016-02 and its subsequent amendments (together "ASC 842") during the quarter ended March 31, 2019 using the

transition approach provided for under ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which allowed us to apply the new lease standard as of January 1, 2019, rather than the beginning of the earliest period presented. We elected the package of practical expedients, which permitted us to: (i) not reassess whether any of our contracts contained leases; (ii) carry forward the historical lease classification of our existing leases; and (iii) not reassess initial direct costs for our existing leases. We did not elect to apply the hindsight practical expedient when determining lease term and assessing impairment of right-of-use assets. Due to our adoption of ASC 842, we recorded an operating lease right-of-use asset of $29.0 million, a current operating lease liability of $4.1 million and a long-term operating lease liability of $27.4 million on our Consolidated Balance Sheets as of January 1, 2019. There was no cumulative-effect adjustment to Retained earnings required. The standard did not materially impact our consolidated net earnings and had no impact on cash flows. Comparative information in this Report has not been adjusted and continues to be reported under the previous lease accounting rules. See Note 3 for details of the significant changes and quantitative impacts of the changes, as well as other required disclosures related to our adoption of ASC 842.

There were no material impacts on our consolidated financial statements resulting from our adoption during the year ended December 31, 2019 of: (i) ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting; (ii) ASU No. 2018-08, Not-for-Profit Entities (Topic 958): Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made; (iii) ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement; (iv) ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans; and (v) ASU No. 2019-07, Codification Updates to SEC Sections: Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization, and Miscellaneous Updates.

Accounting Pronouncements Issued But Not Yet Adopted

ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), was issued in June 2016. Under ASU 2016-13, existing guidance on reporting credit losses for trade and other receivables and available for sale debt securities will be replaced with a new forward-looking "expected loss" model that generally will result in the earlier recognition of allowances for losses. We will adopt ASU 2016-13 in 2020 using the modified retrospective transition approach and do not expect it to have a material impact on our consolidated financial statements.

ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract ("ASU 2018-15"), was issued in August 2018. Under ASU 2018-15, requirements for capitalizing implementation costs incurred in a hosting arrangement (cloud computing) that is a service contract are to be aligned with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. We will adopt ASU 2018-15 in 2020 using the prospective transition approach and do not expect it to have a material impact on our consolidated financial statements.

ASU No. 2019-12, Simplifying the Accounting for Income Taxes ("ASU 2019-12"), was issued in December 2019. Under ASU 2019-12, the accounting for income taxes is simplified by eliminating certain exceptions and implementing additional requirements which result in a more consistent application of ASC 740. We are currently in the process of evaluating the impact of adopting ASU 2019-12 in 2021, but do not expect it to have a material impact on our consolidated financial statements.

Supplemental Balance Sheet Information

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental Balance Sheet Information



	December 31, 2019		December 31, 2018
	(In millions of dollars)
Cash and Cash Equivalents
Cash and money market funds	$	28.2	$	22.9
Commercial paper	236.1		102.7
Total	$	264.3	$	125.6



	December 31, 2019			December 31, 2018
	(In millions of dollars)
Trade Receivables, net
Billed trade receivables	$	168.5		$	179.5
Unbilled trade receivables	—			1.1
Trade receivables, gross	168.5			180.6
Allowance for doubtful receivables	(1.4		)	(0.8		)
Trade receivables, net	$	167.1		$	179.8

Inventories
Finished products	$	42.6		$	48.0
Work-in-process	63.5			85.6
Raw materials	65.0			75.0
Operating supplies	6.5			6.5
Total	$	177.6		$	215.1

Property, Plant and Equipment, net
Land and improvements	$	21.4		$	21.4
Buildings and leasehold improvements	104.5			97.0
Machinery and equipment	813.5			755.6
Construction in progress	33.2			43.6
Property, plant and equipment, gross	972.6			917.6
Accumulated depreciation	(352.2		)	(307.4		)
Assets held for sale	1.6			1.6
Property, plant and equipment, net	$	622.0		$	611.8

Other Accrued Liabilities
Uncleared cash disbursements	$	4.2		$	4.8
Accrued income taxes and other taxes payable	6.2			6.5
Accrued annual contribution to VEBAs – Note 5	2.9			2.1
Accrued interest	2.3			2.9
Short-term environmental accrual – Note 10	5.5			2.6
Other – Note 3 and Note 8	22.9			25.1
Total	$	44.0		$	44.0

Long-Term Liabilities
Workers' compensation accruals	$	27.7		$	24.6
Long-term environmental accrual – Note 10	11.5			14.3
Other long-term liabilities	27.8			27.5
Total	$	67.0		$	66.4

Leases Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

We determine whether an agreement is a lease at inception. We have operating and finance leases for equipment and real estate that primarily have fixed lease payments. Our leases have remaining lease terms of approximately one to 14 years, some of which may include options to extend the lease for up to 20 years, and some of which may include options to terminate the

lease within one year. None of our options to extend or terminate are reasonably certain of being exercised, and are therefore not included in our determination of lease assets and liabilities. Short-term leases with an initial term of 12 months or less are not recorded on our Consolidated Balance Sheets.

As most of our leases do not provide an implicit rate, we use information available at the lease commencement date in determining an incremental borrowing rate when calculating our operating lease assets and operating lease liabilities. In determining the inputs to the incremental borrowing rate calculation, we make judgments about the value of the leased asset, our credit rating and the lease term, including the probability of our exercising options to extend or terminate the underlying lease. Additionally, we make judgments around contractual asset substitution rights in determining whether a contract contains a lease.

We have lease agreements with lease and non-lease components, which are generally accounted for separately. These non-lease components include items such as common area maintenance, taxes and insurance for our real estate leases, as well as maintenance charges related to our equipment leases. We have, however, applied the practical expedient within ASU 2016-02 to not separate lease and non-lease components to our embedded supply system equipment leases and have therefore accounted for both lease and non-lease components in determining the lease assets and liabilities.

Many of our equipment leases contain clauses that require us to return the equipment with certain functionality intact. We account for these costs as residual value guarantees when the guarantee becomes probable of being owed. Our lease agreements do not contain any material restrictive covenants.

The following table presents lease terms and discount rates as of December 31, 2019:

The following table summarizes the classification of lease assets and lease liabilities on our Consolidated Balance Sheet as of the period presented (in millions of dollars):



Leases	Classification	December 31, 2019
Assets
Operating lease assets	Operating lease assets	$	25.8
Finance lease assets	Property, plant and equipment, net	6.6
Total lease assets		$	32.4

Liabilities
Current:
Operating lease liabilities	Other accrued liabilities	$	3.9
Finance lease liabilities	Other accrued liabilities	1.2
Non-current:
Operating lease liabilities	Long-term portion of operating lease liabilities	25.2
Finance lease liabilities	Long-term liabilities	5.4
Total lease liabilities		$	35.7

The following table summarizes the components of lease cost on our Statements of Consolidated Income for the period presented (in millions of dollars):



Lease Cost	December 31, 2019
Operating lease cost	$	7.5
Short-term lease cost	1.2
Finance lease cost:
Amortization of leased assets	1.5
Interest on lease liabilities	0.3
Total lease cost	$	10.5

Total lease cost was $8.2 million and $7.9 million for the years ended December 31, 2018 and December 31, 2017, respectively.

The following table presents the maturity of our lease liabilities as of December 31, 2019 (in millions of dollars):



Maturity of Lease Liabilities	Finance Leases			Operating Leases
2020	$	1.6		$	5.4
2021	1.4			4.6
2022	1.3			3.8
2023	1.2			3.5
2024	0.7			3.3
2025 and thereafter	1.3			18.7
Total minimum lease payments	$	7.5		$	39.3

Less: interest	(0.9		)	(10.2		)
Present value	$	6.6		$	29.1

Minimum rental commitments at December 31, 2018 were as follows (in millions of dollars):



Year Ended December 31,	Finance Leases			Operating Leases
2019	$	1.7		$	6.1
2020	1.4			3.7
2021	1.2			2.8
2022	1.1			2.4
2023	1.0			2.2
2024 and thereafter	1.8			20.8
Total minimum lease payments	$	8.2		$	38.0

Less: interest	(1.2		)
Present value¹	$	7.0

_________________________

^1.

Of the $7.0 million in finance lease obligations as of December 31, 2018, $1.4 million was included in Other accrued liabilities and $5.6 million was included in Long-term liabilities. Assets recorded under finance leases and the accumulated amortization thereon were $8.3 million and $1.3 million, respectively, as of December 31, 2018.

Leases

The following table presents lease terms and discount rates as of December 31, 2019:

The following table summarizes the classification of lease assets and lease liabilities on our Consolidated Balance Sheet as of the period presented (in millions of dollars):



Leases	Classification	December 31, 2019
Assets
Operating lease assets	Operating lease assets	$	25.8
Finance lease assets	Property, plant and equipment, net	6.6
Total lease assets		$	32.4

Liabilities
Current:
Operating lease liabilities	Other accrued liabilities	$	3.9
Finance lease liabilities	Other accrued liabilities	1.2
Non-current:
Operating lease liabilities	Long-term portion of operating lease liabilities	25.2
Finance lease liabilities	Long-term liabilities	5.4
Total lease liabilities		$	35.7

The following table summarizes the components of lease cost on our Statements of Consolidated Income for the period presented (in millions of dollars):



Lease Cost	December 31, 2019
Operating lease cost	$	7.5
Short-term lease cost	1.2
Finance lease cost:
Amortization of leased assets	1.5
Interest on lease liabilities	0.3
Total lease cost	$	10.5

Total lease cost was $8.2 million and $7.9 million for the years ended December 31, 2018 and December 31, 2017, respectively.

The following table presents the maturity of our lease liabilities as of December 31, 2019 (in millions of dollars):



Maturity of Lease Liabilities	Finance Leases			Operating Leases
2020	$	1.6		$	5.4
2021	1.4			4.6
2022	1.3			3.8
2023	1.2			3.5
2024	0.7			3.3
2025 and thereafter	1.3			18.7
Total minimum lease payments	$	7.5		$	39.3

Less: interest	(0.9		)	(10.2		)
Present value	$	6.6		$	29.1

Minimum rental commitments at December 31, 2018 were as follows (in millions of dollars):



Year Ended December 31,	Finance Leases			Operating Leases
2019	$	1.7		$	6.1
2020	1.4			3.7
2021	1.2			2.8
2022	1.1			2.4
2023	1.0			2.2
2024 and thereafter	1.8			20.8
Total minimum lease payments	$	8.2		$	38.0

Less: interest	(1.2		)
Present value¹	$	7.0

_________________________

^1.

Business Combinations, Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Business Combinations, Goodwill and Intangible Assets

Business Combinations. On September 19, 2018, we acquired Imperial Machine & Tool Co. ("IMT"), located in Columbia, New Jersey, for $43.2 million in cash, net of cash received. IMT specializes in multi-material advanced manufacturing methods and techniques, which include multi-axis computer numerical control ("CNC") machining, additive manufacturing ("3D Printing"), welding and fabrication for demanding aerospace and defense, automotive, high tech and general industrial applications. The acquisition enhances our ability to address customer needs by broadening our capability to provide innovative solutions for demanding applications.

2019 Goodwill Impairment. In conjunction with our acquisition of IMT, we added $25.2 million of goodwill after allocating the consideration paid, net of cash received, to all other identifiable assets. The goodwill recorded reflected the value we expected from IMT's 3D Printing line of business. However, due to recent indications that opportunities for this type of disruptive technology are extending over a longer-term horizon than initially valued, during the fourth quarter of 2019, we made the strategic decision to prioritize our focus on IMT's subtractive (machining) business opportunities while the 3D Printing market continues to mature. Based on our revised strategy, we tested for goodwill impairment using Level 3 inputs and a combination of an income approach using the estimated discounted cash flow and a market-based valuation methodology. Having determined that the carrying value of IMT exceeded its fair value as of November 30, 2019, we recognized an impairment charge of $25.2 million for the year ended December 31, 2019 within Operating income in the Statements of Consolidated Income. As this goodwill is deductible for tax purposes, the deferred tax effects were included in the impairment charge and income tax provision.

2017 Goodwill Impairment. Due to a reduction in our long-term demand assumption for hard alloy extruded shapes, we recorded an impairment charge with respect to our Chandler, Arizona (Extrusion) facility of $18.4 million during the quarter ended June 30, 2017 within Operating income in the Statements of Consolidated Income.

Goodwill activity was as follows for each period presented (in millions of dollars):



	December 31, 2018			Add: Impairment of IMT Goodwill			December 31, 2019
Goodwill	$	62.4		$	—		$	62.4
Accumulated impairment loss	(18.4		)	(25.2		)	(43.6		)
Carrying value	$	44.0		$	(25.2	)	$	18.8



	December 31, 2017			Add: Goodwill from IMT Acquisition		December 31, 2018
Goodwill	$	37.2		$	25.2	$	62.4
Accumulated impairment loss	(18.4		)	—		(18.4		)
Carrying value	$	18.8		$	25.2	$	44.0

Intangible Assets. Information regarding our intangible assets consisted of the following as of the periods presented (in millions of dollars, except amortization periods):



	Weighted-Average Amortization Period (in years)	Gross Amount		Accumulated Amortization			Intangible Assets, Net
December 31, 2019
Customer relationships	24	$	36.1	$	(12.7	)	$	23.4
Trade name	10	2.4		(0.3		)	2.1
Non-compete agreement	5	5.4		(1.3		)	4.1
Total		$	43.9	$	(14.3	)	$	29.6

December 31, 2018
Customer relationships	24	$	36.1	$	(11.1	)	$	25.0
Trade name	10	2.4		(0.1		)	2.3
Non-compete agreement	5	5.4		(0.3		)	5.1
Total		$	43.9	$	(11.5	)	$	32.4

We identified no indicators of impairment associated with our intangible assets during the years ended December 31, 2019, December 31, 2018 or December 31, 2017.

Amortization expense relating to definite-lived intangible assets was $2.8 million for 2019, $1.8 million for 2018, and $1.4 million for 2017. The expected amortization of intangible assets for each of the next five calendar years is as follows (in millions of dollars):



2020	$	2.8
2021	2.8
2022	2.8
2023	2.6
2024	1.8
Thereafter	16.8
Total	$	29.6

Employee Benefits

12 Months Ended

Dec. 31, 2019

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 contribution 401(k) savings plan for certain employees providing for an annually funded discretionary Company match determined in January based on the financial results of the previous year. If a Company match is to be made, a total flat dollar amount is determined and then funded to employees' accounts based on their contribution levels.

•

A defined benefit pension 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, 2019, approximately 62% of the plan assets were invested in equity securities, 36% were invested in fixed income securities and 2% were invested in short-term and other securities. Our investment committee reviews and evaluates the investment portfolio. The asset mix target allocation on the long-term investments is approximately 60% in equity securities, 35% 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 certain employees who would otherwise suffer a loss of benefits under our defined contribution plan as a result of the limitations imposed by the Internal Revenue Code of 1986 ("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 held in various investment funds at certain registered investment companies (see "Fair Value of Plan Assets" below) and are at all times subject to the claims of our general creditors. No participant has a claim to any assets of the trust; however, participants are eligible to receive distributions from the trust subject to vesting and other eligibility requirements. Offsetting liabilities relating to the deferred compensation plan are included in Other accrued liabilities and Long-term liabilities. Assets in the trust are accounted for as equity investments with changes in fair value recorded within Other expense, net (see Note 12).


•	An employment agreement with our chief executive officer extending through July 15, 2022. 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"). We have an ongoing obligation with no express termination date to make variable cash contributions up to a maximum of $2.9 million to the Salaried VEBA. We determined that in the first quarter of 2020, we will pay approximately

$2.9 million with respect to 2019. Such amount was recorded within Other accrued liabilities as of December 31, 2019 (see Note 2). We paid $2.1 million with respect to 2018 during the first quarter of 2019. We account for the Salaried VEBA as a defined benefit plan in our financial statements.

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"). During the first quarter of 2018, we made a $12.8 million cash contribution to the Union VEBA with respect to the nine months ended September 30, 2017. This was our final contribution. We have no ongoing obligation to make further variable cash contributions to the Union VEBA.

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, 2019		December 31, 2018		December 31, 2019		December 31, 2018
Discount rate	3.10	%	3.90	%	2.95	%	3.90	%
Expected long-term return on plan assets	4.45	%	4.45	%	5.50	%	5.50	%
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, 2019 and at December 31, 2018, 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, 2019 and December 31, 2018.


•	Since the Salaried VEBA was paying a fixed annual amount to its participants at both December 31, 2019 and December 31, 2018, no future cost trend rate increase has been assumed in computing the APBO for the Salaried VEBA.

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



	Canadian Pension Plan						Salaried VEBA
	2019		2018		2017		2019		2018		2017
Discount rate	3.90	%	3.40	%	3.80	%	3.90	%	3.20	%	3.60	%
Expected long-term return on plan assets¹	4.45	%	4.45	%	4.45	%	5.50	%	5.50	%	7.75	%
Rate of compensation increase	3.00	%	3.00	%	3.00	%	—		—		—

_____________________


^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 plan and the Salaried VEBA as of December 31, 2019 and December 31, 2018 and the corresponding amounts that are included in our Consolidated Balance Sheets (in millions of dollars):



	Canadian Pension Plan						Salaried VEBA
	2019			2018			2019			2018
Change in benefit obligation:
Obligation at beginning of year	$	7.3		$	8.5		$	85.6		$	90.0
Foreign currency translation adjustment	0.3			(0.7		)	—			—
Service cost	0.3			0.3			0.1			0.1
Interest cost	0.3			0.3			3.2			2.7
Prior service cost¹	—			—			2.5			6.9
Actuarial loss (gain)²	1.1			(0.6		)	6.4			(6.8		)
Plan participants contributions	—			0.1			—			—
Benefits paid by Company	(0.5		)	(0.6		)	—			—
Benefits paid by Salaried VEBA	—			—			(7.6		)	(7.3		)
Obligation at end of year³	8.8			7.3			90.2			85.6

Change in plan assets:
Fair market value of plan assets at beginning of year	6.5			7.3			53.2			58.1
Foreign currency translation adjustment	0.3			(0.6		)	—			—
Actual return on assets	1.0			(0.2		)	9.1			0.3
Plan participants contributions	—			0.1			—			—
Company contributions	0.5			0.5			2.9			2.1
Benefits paid by Company	(0.5		)	(0.6		)	—			—
Benefits paid by Salaried VEBA	—			—			(7.6		)	(7.3		)
Fair market value of plan assets at end of year	7.8			6.5			57.6			53.2
Net funded status⁴	$	(1.0	)	$	(0.8	)	$	(32.6	)	$	(32.4	)

_____________________________


^1.	The prior service cost relating to the Salaried VEBA in both 2019 and 2018 resulted from increases in the annual healthcare reimbursement benefit starting in 2019 and 2018, respectively, for plan participants.


^2.	The actuarial gain relating to the Salaried VEBA in 2019 was comprised of: (i) a $6.8 million loss due to a change in the discount rate; (ii) a $0.1 million loss due to changes in census information; offset by (iii) a $0.5 million gain due to a change in the projected utilization rate.

The actuarial gain relating to the Salaried VEBA in 2018 was comprised of: (i) a $5.1 million gain due to a change in the discount rate; (ii) a $2.2 million gain due to a change in the projected utilization rate; offset by (iii) a $0.5 million loss due to changes in census information.


^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 relating to the Salaried VEBA at December 31, 2019 and December 31, 2018, respectively, was presented as Net liabilities of Salaried VEBA on the Consolidated Balance Sheet.

The accumulated benefit obligation for the Canadian pension plan was $7.6 million and $6.4 million at December 31, 2019 and December 31, 2018, respectively. We expect to contribute $0.5 million to the Canadian pension plan in 2020.

As of December 31, 2019, 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
	2020		2021		2022		2023		2024		2025-2029
Canadian pension plan benefit payments	$	0.3	$	0.3	$	0.3	$	0.3	$	0.3	$	2.0
Salaried VEBA benefit payments¹	7.9		7.6		7.4		7.1		6.8		29.1
Total net benefits	$	8.2	$	7.9	$	7.7	$	7.4	$	7.1	$	31.1

__________________________________


^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 pension plan and the Salaried VEBA (before tax) that had not yet been reflected in net periodic postretirement benefit cost was as follows at December 31 (in millions of dollars):



	Canadian Pension Plan						Salaried VEBA
	2019			2018			2019			2018
Accumulated net actuarial loss	$	(1.9	)	$	(1.5	)	$	(12.1	)	$	(12.5	)
Prior service cost	—			—			(41.1		)	(44.2		)
Cumulative loss reflected in Accumulated other comprehensive loss	$	(1.9	)	$	(1.5	)	$	(53.2	)	$	(56.7	)

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 presented within Level 2 of the fair value hierarchy and are measured and recorded at fair value based on their quoted market prices.

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



	Level 1		Level 2		Level 3		Total
December 31, 2019:
Plan Assets in the Fair Value Hierarchy:
Salaried VEBA –
Cash and money market investments	$	0.9	$	—	$	—	$	0.9
Diversified investment funds in registered investment companies¹	7.1		—		—		7.1
Total Salaried VEBA assets in the fair value hierarchy	8.0		—		—		8.0
Deferred compensation program – Diversified investment funds in registered investment companies¹	—		8.1		—		8.1
Total plan assets in the fair value hierarchy	$	8.0	$	8.1	$	—	$	16.1

Plan Assets Measured at NAV ²:
Salaried VEBA – Fixed income investment funds in registered investment companies³