0001564590-22-026765 | 10-Q | XBRL Viewer

Basis of Presentation and Recent Accounting Pronouncements	6 Months Ended
Jun. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation and Recent Accounting Pronouncements	1. Basis of Presentation and Recent Accounting Pronouncements This Quarterly Report on Form 10-Q (this “Report”) should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Unless the context otherwise requires, references in these notes to interim consolidated financial statements - unaudited to “Kaiser Aluminum Corporation,” “we,” “us,” “our,” “the Company” and “our Company” refer collectively to Kaiser Aluminum Corporation and its subsidiaries. Principles of Consolidation and Basis of Presentation. The accompanying unaudited 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”) applicable for interim periods and, therefore, do not include all information and footnotes required by GAAP for complete financial statements. In management’s opinion, all adjustments (which include normal recurring adjustments) considered necessary for a fair presentation have been included. The results of operations for our interim periods are not necessarily indicative of the results of operations that may be achieved for the entire 2022 fiscal year. The financial information as of December 31, 2021 is derived from our audited consolidated financial statements and footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2021. Use of Estimates in the Preparation of Financial Statements. The preparation of financial statements in accordance with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of our consolidated financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of our consolidated financial position and results of operations. Supply Chain Financing. We are party to several supply chain financing arrangements, in which we may sell certain of our customers’ trade accounts receivable to such customers’ financial institutions without recourse. We sell our undivided interests in certain of these receivables at our discretion when we determine that the cost of these arrangements is less than the cost of servicing our receivables with existing debt. Under the terms of the agreements, we retain no rights or interest, have no obligations with respect to the sold receivables and do not service the receivables after the sale. As such, these transactions are being accounted for as a sale. During the quarter and six months ended June 30, 2022, we sold trade accounts receivable totaling $482.0 million and $889.4 million, respectively, related to these supply chain financing arrangements, of which our customers’ financial institutions applied discount fees totaling $6.3 million and $9.2 million, respectively. During both the quarter and six months ended June 30, 2021, we sold trade accounts receivable totaling $316.0 million, of which our customers’ financial institutions applied discount fees totaling $1.9 million. To the extent discount fees related to the sale of trade accounts receivable under supply chain financing arrangements are not reimbursed by our customers, they are included in Other expense, net. As of June 30, 2022, we had been and/or expected to be fully reimbursed by our customers for these discount fees. Government Grants. From time-to-time, we receive grants from certain governmental agencies such as states and municipalities. We recognize government grants when we have reasonable assurance that we will comply with any conditions attached to the grant and the grant will be received. Government grants related to property, plant and equipment are presented as a reduction to the related asset’s carrying amount. Grants related to compensation for expenses already incurred or for immediate financial support with no future related costs are recognized as income in the period in which it is receivable. As of June 30, 2022, we received a $0.3 million performance grant from the Tennessee Valley Authority, which we recorded as an offset to Property, plant and equipment, net. To be eligible to receive and keep the full amount of this grant, we must achieve: (i) minimum cumulative expenditures towards developmental and/or capital expenditures; (ii) a minimum number of new full-time employees; and (iii) a minimum average annual wage, all within seven years of our execution of the grant agreement. Favorable Commodity Contract Intangible Asset Impairment. During the quarter ended June 30, 2022, we impaired the remaining book value of our favorable commodity contract intangible asset as the supplier associated with the intangible asset ceased all deliveries of magnesium to us and provided no indication of when or if deliveries would resume over the remaining six months of the contract. The impairment charge of $3.1 million was included within Other operating charges, net, in our Statements of Consolidated Loss. Adoption of New Accounting Pronouncements Accounting Standard Update (“ASU”) No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance (“ASU 2021-10”) was issued in November 2021. Under ASU 2021-10, the accounting entities with transactions with a government that are accounted for by analogy to a grant or contribution accounting model are required to annually disclose certain information regarding the transaction including: (i) nature and related accounting policy used; (ii) line items on the balance sheet and income statement affected by the transactions; (iii) amounts applicable to each line item; and (iv) significant terms and conditions. Our adoption of ASU 2021-10 during the quarter ended March 31, 2022 using a prospective approach did not have a material impact on our consolidated financial statements. In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) and also issued subsequent amendments to the initial guidance (collectively, “Topic 848”). Topic 848 is effective for all entities as of March 12, 2020 through December 31, 2022 and provides optional guidance for contract modifications and certain hedging relationships associated with the transition from reference rates that are expected to be discontinued. As of June 30, 2022, our customers’ supply chain financing contracts have transitioned to the Secured Overnight Financing Rate (“SOFR”) to replace the London Interbank Offered Rate (“LIBOR”). Our adoption of Topic 848 did not have a material impact on our consolidated financial statements.

Basis of Presentation and Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2022

Basis of Presentation and Recent Accounting Pronouncements

1. Basis of Presentation and Recent Accounting Pronouncements

This Quarterly Report on Form 10-Q (this “Report”) should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Unless the context otherwise requires, references in these notes to interim consolidated financial statements - unaudited to “Kaiser Aluminum Corporation,” “we,” “us,” “our,” “the Company” and “our Company” refer collectively to Kaiser Aluminum Corporation and its subsidiaries.

Principles of Consolidation and Basis of Presentation. The accompanying unaudited 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”) applicable for interim periods and, therefore, do not include all information and footnotes required by GAAP for complete financial statements. In management’s opinion, all adjustments (which include normal recurring adjustments) considered necessary for a fair presentation have been included. The results of operations for our interim periods are not necessarily indicative of the results of operations that may be achieved for the entire 2022 fiscal year. The financial information as of December 31, 2021 is derived from our audited consolidated financial statements and footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2021.

Use of Estimates in the Preparation of Financial Statements. The preparation of financial statements in accordance with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of our consolidated financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of our consolidated financial position and results of operations.

Supply Chain Financing. We are party to several supply chain financing arrangements, in which we may sell certain of our customers’ trade accounts receivable to such customers’ financial institutions without recourse. We sell our undivided interests in certain of these receivables at our discretion when we determine that the cost of these arrangements is less than the cost of servicing our receivables with existing debt. Under the terms of the agreements, we retain no rights or interest, have no obligations with respect to the sold receivables and do not service the receivables after the sale. As such, these transactions are being accounted for as a sale. During the quarter and six months ended June 30, 2022, we sold trade accounts receivable totaling $482.0 million and $889.4 million, respectively, related to these supply chain financing arrangements, of which our customers’ financial institutions applied discount fees totaling $6.3 million and $9.2 million, respectively. During both the quarter and six months ended June 30, 2021, we sold trade accounts receivable totaling $316.0 million, of which our customers’ financial institutions applied discount fees totaling $1.9 million. To the extent discount fees related to the sale of trade accounts receivable under supply chain financing arrangements are not reimbursed by our customers, they are included in Other expense, net. As of June 30, 2022, we had been and/or expected to be fully reimbursed by our customers for these discount fees.

Government Grants. From time-to-time, we receive grants from certain governmental agencies such as states and municipalities. We recognize government grants when we have reasonable assurance that we will comply with any conditions attached to the grant and the grant will be received. Government grants related to property, plant and equipment are presented as a reduction to the related asset’s carrying amount. Grants related to compensation for expenses already incurred or for immediate financial support with no future related costs are recognized as income in the period in which it is receivable. As of June 30, 2022, we received a $0.3 million performance grant from the Tennessee Valley Authority, which we recorded as an offset to Property, plant and equipment, net. To be eligible to receive and keep the full amount of this grant, we must achieve: (i) minimum cumulative expenditures towards developmental and/or capital expenditures; (ii) a minimum number of new full-time employees; and (iii) a minimum average annual wage, all within seven years of our execution of the grant agreement.

Favorable Commodity Contract Intangible Asset Impairment. During the quarter ended June 30, 2022, we impaired the remaining book value of our favorable commodity contract intangible asset as the supplier associated with the intangible asset ceased all deliveries of magnesium to us and provided no indication of when or if deliveries would resume over the remaining six months of the contract. The impairment charge of $3.1 million was included within Other operating charges, net, in our Statements of Consolidated Loss.

Adoption of New Accounting Pronouncements

Accounting Standard Update (“ASU”) No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance (“ASU 2021-10”) was issued in November 2021. Under ASU 2021-10, the accounting entities with

transactions with a government that are accounted for by analogy to a grant or contribution accounting model are required to annually disclose certain information regarding the transaction including: (i) nature and related accounting policy used; (ii) line items on the balance sheet and income statement affected by the transactions; (iii) amounts applicable to each line item; and (iv) significant terms and conditions. Our adoption of ASU 2021-10 during the quarter ended March 31, 2022 using a prospective approach did not have a material impact on our consolidated financial statements.

In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) and also issued subsequent amendments to the initial guidance (collectively, “Topic 848”). Topic 848 is effective for all entities as of March 12, 2020 through December 31, 2022 and provides optional guidance for contract modifications and certain hedging relationships associated with the transition from reference rates that are expected to be discontinued. As of June 30, 2022, our customers’ supply chain financing contracts have transitioned to the Secured Overnight Financing Rate (“SOFR”) to replace the London Interbank Offered Rate (“LIBOR”). Our adoption of Topic 848 did not have a material impact on our consolidated financial statements.

Income Tax Matters - Income Tax Benefit (Provision) - (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Domestic	$ 4.8	$ 16.7	$ 2.0	$ 17.3
Foreign	(0.7)	(1.2)	(1.2)	(1.5)
Total	$ 4.1	$ 15.5	$ 0.8	$ 15.8

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Tax Matters

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Tax Matters

9. Income Tax Matters

The income tax benefit (provision) consisted of the following (in millions of dollars):

	Quarter Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Domestic	$	4.8		$	16.7		$	2.0		$	17.3
Foreign		(0.7	)		(1.2	)		(1.2	)		(1.5	)
Total	$	4.1		$	15.5		$	0.8		$	15.8

The income tax benefit (provision) for the quarters ended June 30, 2022 and June 30, 2021 was $4.1 million and $15.5 million, respectively, reflecting an effective tax rate of 23% and 41%, respectively. There was no material difference between the effective tax rate and the projected blended statutory rate for the quarter ended June 30, 2022.

The difference between the effective tax rate and the projected blended statutory tax rate for the quarter ended June 30, 2021 was primarily due to: (i) an increase of 22% related to non‑deductible compensation expense; (ii) an increase of 5% related to foreign withholding tax; (iii) an increase of 4% due to various permanent items not deductible for tax purposes; (iv) an increase of 1% related to the valuation allowance for certain state net operating losses; and (v) an increase of 1% for the recognition of excess tax benefits from stock-based compensation, partially offset by a decrease of 15% related to a Federal Research and Development Credit.

The income tax benefit (provision) for the six months ended June 30, 2022 and June 30, 2021 was $0.8 million and $15.8 million, respectively, reflecting an effective tax rate of 13% and 47%, respectively. The difference between the effective tax rate and the projected blended statutory tax rate for the six months ended June 30, 2022 was primarily due to: (i) a decrease of 8% for the recognition of excess book benefits from stock-based compensation; (ii) a decrease of 5% related to a Federal Research and Development Credit; and (iii) a decrease of 1% related to the valuation allowance for certain state net operating losses, partially offset by: (i) an increase of 2% related to non-deductible compensation expense and (ii) an increase of 1% related to foreign withholding tax.

The difference between the effective tax rate and the projected blended statutory tax rate for the six months ended June 30, 2021 was primarily due to: (i) an increase of 22% related to non-deductible compensation expense; (ii) an increase of 5% related to foreign withholding tax; (iii) an increase of 4% due to various permanent items not deductible for tax purposes; (iv) an increase of 3% related to the valuation allowance for certain state net operating losses; (v) an increase of 2% for a foreign tax rate difference; (vi) an increase of 2% for the recognition of excess tax benefits from stock-based compensation; and (vii) an increase of 2% for a change in state tax rate due to the Warrick acquisition, partially offset by a decrease of 15% related to a Federal Research and Development Credit.

Our gross unrecognized benefits relating to uncertain tax positions were $4.7 million and $4.1 million at June 30, 2022 and December 31, 2021, respectively, of which, $4.7 million and $4.1 million would be recorded through our income tax provision and thus, impact the effective tax rate at June 30, 2022 and December 31, 2021, respectively, if the gross unrecognized tax benefits were to be recognized.

We do not expect our gross unrecognized tax benefits to significantly change within the next 12 months.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Debt and Credit Facility - Summary of Senior Notes (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021	May 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Senior Notes
Debt Instrument [Line Items]
Total debt	$ 1,050.0	$ 1,050.0
Unamortized issuance costs	(12.8)	(13.7)
Total carrying amount	$ 1,037.2	1,036.3
4.50% Senior Notes \| Senior Notes
Debt Instrument [Line Items]
Issuance Date	May 21, 2021
Debt Instrument, Maturity Date	2031-06
Effective interest rate (percent)	4.70%
Total debt	$ 550.0	550.0
6.50% Senior Notes
Debt Instrument [Line Items]
Unamortized issuance costs			$ (5.0)
6.50% Senior Notes \| Senior Notes
Debt Instrument [Line Items]
Issuance Date, Start	2020-04
Issuance Date, End	2020-05
Debt Instrument, Maturity Date	2025-05
Effective interest rate (percent)	6.80%
Total debt				$ 350.0
4.625% Senior Notes \| Senior Notes
Debt Instrument [Line Items]
Issuance Date	Nov. 30, 2019
Debt Instrument, Maturity Date	2028-03
Effective interest rate (percent)	4.80%
Total debt	$ 500.0	$ 500.0			$ 500.0

Employee Benefits (Tables)

6 Months Ended

Jun. 30, 2022

Compensation And Retirement Disclosure [Abstract]

Schedule of Total Expense (Benefit) Related to Benefit Plans

The following table presents the total expense (benefit) related to all postretirement benefit plans (in millions of dollars):

	Quarter Ended June 30,					Six Months Ended June 30,
	2022			2021		2022			2021
Defined contribution plans¹	$	4.0		$	3.6	$	9.7		$	7.0
Deferred compensation plan²		(0.5	)		0.4		(0.8	)		0.4
Multiemployer pension plans¹		1.4			1.3		2.6			2.4
Salaried VEBA²		1.0			0.5		1.9			1.1
Pension plans³		1.3			1.5		2.7			1.5
OPEB³		1.0			1.0		1.9			1.0
Total	$	8.2		$	8.3	$	18.0		$	13.4

¹	^{Substantially all of the expense related to employee benefits are in Cost of products sold, excluding depreciation and amortization and other items (“Cost of products sold” or “COGS”) with the remaining balance in Selling, general, administrative, research and development (“SG&A and R&D”).}

^{The deferred compensation plan and the current service cost component of Net periodic postretirement benefit cost relating to the voluntary employees’ beneficiary association that provides benefits for certain eligible retirees and their surviving spouses and eligible dependents (“Salaried VEBA”) are included within our Statements of Consolidated Loss in SG&A and R&D for all periods presented. All other components of Net periodic postretirement benefit cost relating to Salaried VEBA are included within Other expense, net, on our Statements of Consolidated Loss.}

^{The current service cost component of Net periodic postretirement benefit cost relating to both the pension plans and the healthcare and life insurance postretirement benefit plan (“OPEB”) are included within our Statements of Consolidated Loss in COGS for all periods presented. All other components of Net periodic postretirement benefit cost relating to both the pension plans and the OPEB are included within Other expense, net, on our Statements of Consolidated Loss.}

Schedule of Net Benefit Costs

The following table presents the components of Net periodic postretirement benefit cost (in millions of dollars):

	Pension Plans						OPEB				Salaried VEBA
	Quarter Ended June 30,						Quarter Ended June 30,				Quarter Ended June 30,
	2022			2021			2022		2021		2022			2021
Service cost	$	1.4		$	1.4		$	0.4	$	0.4	$	—		$	—
Interest cost		0.1			0.2			0.6		0.6		0.4			0.4
Expected return on plan assets		(0.2	)		(0.2	)		—		—		(0.7	)		(0.8	)
Amortization of prior service cost¹		—			—			—		—		1.3			0.8
Amortization of net actuarial loss		—			0.1			—		—		—			0.1
Total net periodic postretirement benefit cost	$	1.3		$	1.5		$	1.0	$	1.0	$	1.0		$	0.5

	Pension Plans²						OPEB				Salaried VEBA
	Six Months Ended June 30,						Six Months Ended June 30,				Six Months Ended June 30,
	2022			2021			2022		2021		2022			2021
Service cost	$	2.8		$	1.4		$	0.8	$	0.4	$	—		$	—
Interest cost		0.3			0.2			1.1		0.6		0.9			0.8
Expected return on plan assets		(0.4	)		(0.2	)		—		—		(1.5	)		(1.6	)
Amortization of prior service cost¹		—			—			—		—		2.5			1.7
Amortization of net actuarial loss		—			0.1			—		—		—			0.2
Total net periodic postretirement benefit cost	$	2.7		$	1.5		$	1.9	$	1.0	$	1.9		$	1.1

¹	We amortize prior service cost on a straight-line basis over the average remaining years of service to full eligibility for benefits of the active plan participants.

²	Net periodic benefit cost for the U.S. pension plan was not included in our Statements of Consolidated Loss until the March 31, 2021 acquisition date of our Warrick County, Indiana (“Warrick”) facility.

Income Tax Matters (Tables)

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Tax Benefit (Provision)

The income tax benefit (provision) consisted of the following (in millions of dollars):

	Quarter Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Domestic	$	4.8		$	16.7		$	2.0		$	17.3
Foreign		(0.7	)		(1.2	)		(1.2	)		(1.5	)
Total	$	4.1		$	15.5		$	0.8		$	15.8

Derivatives, Hedging Programs and Other Financial Instruments - Schedule of Fair Value of Derivative Financial Instruments (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Designated as Hedging Instrument \| Purchase
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative liability	$ (16.4)	$ 0.0
Fair Value, Measurements, Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset	21.6	26.7
Derivative liability	(24.2)	(2.0)
Fair Value, Measurements, Recurring \| Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset	21.6	26.7
Derivative liability	(24.2)	(2.0)
Net Amount	(2.6)	24.7
Fair Value, Measurements, Recurring \| Level 2 \| Not Designated as Hedging Instrument \| Alloying Metals
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset	0.2	1.6
Derivative liability	(0.6)	(0.1)
Net Amount	(0.4)	1.5
Fair Value, Measurements, Recurring \| Level 2 \| Not Designated as Hedging Instrument \| Purchase \| Alloying Metals
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset	0.2	1.6
Derivative liability	(0.6)	(0.1)
Net Amount	(0.4)	1.5
Fair Value, Measurements, Recurring \| Cash Flow Hedges \| Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset	21.4	25.1
Derivative liability	(23.6)	(1.9)
Net Amount	(2.2)	23.2
Fair Value, Measurements, Recurring \| Cash Flow Hedges \| Level 2 \| Designated as Hedging Instrument \| Purchase \| Aluminum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset	2.8	12.2
Derivative liability	(21.6)	(1.1)
Net Amount	(18.8)	11.1
Fair Value, Measurements, Recurring \| Cash Flow Hedges \| Level 2 \| Designated as Hedging Instrument \| Purchase \| Midwest premium swap contracts
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset	2.2	5.5
Derivative liability	(2.0)	(0.1)
Net Amount	0.2	5.4
Fair Value, Measurements, Recurring \| Cash Flow Hedges \| Level 2 \| Designated as Hedging Instrument \| Purchase \| Natural Gas
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset	8.1	3.0
Derivative liability	0.0	(0.1)
Net Amount	8.1	2.9
Fair Value, Measurements, Recurring \| Cash Flow Hedges \| Level 2 \| Designated as Hedging Instrument \| Purchase \| Electricity
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset	5.1	4.4
Derivative liability	0.0	(0.6)
Net Amount	5.1	3.8
Fair Value, Measurements, Recurring \| Cash Flow Hedges \| Level 2 \| Designated as Hedging Instrument \| Sales \| Aluminum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset	3.2	0.0
Derivative liability	0.0	0.0
Net Amount	$ 3.2	$ 0.0

STATEMENTS OF CONSOLIDATED CASH FLOWS (UNAUDITED) (Parenthetical)	Jun. 30, 2022	May 31, 2021
6.50% Senior Notes
Debt instrument contractual rate (percent)		6.50%
4.50% Senior Notes
Debt instrument contractual rate (percent)	4.50%

Derivatives, Hedging Programs and Other Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2022

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Summary of Percentages of Expected Variable Priced Purchases of Metals Alloys and Energy

The following table summarizes the percentages as of June 30, 2022 of our expected variable priced purchases of metal alloys and energy for which we have executed derivative and/or physical delivery commitments to reduce price fluctuations for each of the following years:

	Remainder of 2022	2023		2024		2025		2026
Zinc	66%		—		—		—		—
Copper	58%		—		—		—		—
Magnesium¹	64%		—		—		—		—
Silicon	100%		—		—		—		—
Natural Gas	49%	48%		46%		25%		20%
Electricity	77%	43%			—		—		—

We have contracts in place to cover the noted percentage of our requirements at a firm or predetermined price. As our largest supplier of magnesium declared force majeure and, during the quarter ended June 30, 2022, stopped all shipments to us, we excluded its contracts from the above table. We have included only qualified magnesium suppliers secured to date in place of the excluded contracted volume.

Summary of Derivative Positions

The following table summarizes our derivative positions at June 30, 2022:

Aluminum	Maturity Period (month/year)	Notional Amount of Contracts (mmlbs)
Fixed price purchase contracts	July 2022 through December 2023		128.0
Fixed price sales contracts	July 2022 through December 2022		24.3
Midwest premium swap contracts¹	July 2022 through December 2023		61.5

Alloying Metals

Maturity Period

(month/year)

Notional Amount of Contracts (mmlbs)

Fixed price purchase contracts

July 2022 through December 2022

3.2

Natural Gas

Maturity Period

(month/year)

Notional Amount of Contracts (mmbtu)

Fixed price purchase contracts

July 2022 through December 2025

4,320,000

Electricity

Maturity Period

(month/year)

Notional Amount of Contracts (Mwh)

Fixed price purchase contracts

July 2022 through December 2022

110,425

Euro

Maturity Period

(month/year)

Notional Amount of Contracts (euro)

Fixed price forward contracts

September 2022 through February 2024

1,160,746

¹	Regional premiums represent the premium over the London Metal Exchange price for primary aluminum which is incurred on our purchases of primary aluminum.

Summary of Loss (Gain) Associated with Derivative Contracts

The following table summarizes the amount of loss (gain) included on our Statements of Consolidated Loss associated with all derivative contracts (in millions of dollars):

	Quarter Ended June 30,						Six Months Ended June 30,						Statements of Consolidated
	2022			2021			2022			2021			Loss Classification
Total of income and expense line items presented in our Statements of Consolidated Loss in which the effects of hedges are recorded:
Cash flow hedges	$	898.4		$	673.3		$	1,764.3		$	935.8		Cost of products sold

Loss (gain) recognized in our Statements of Consolidated Loss related to cash flow hedges:
Aluminum	$	5.9		$	(8.1	)	$	(12.8	)	$	(11.0	)	Cost of products sold
Alloying Metals		—			0.2			—			0.4		Cost of products sold
Natural gas		(1.9	)		(0.1	)		(2.8	)		(0.1	)	Cost of products sold
Electricity		(1.1	)		(0.7	)		(1.4	)		(0.7	)	Cost of products sold
Total loss (gain) recognized in our Statements of Consolidated Loss related to cash flow hedges	$	2.9		$	(8.7	)	$	(17.0	)	$	(11.4	)

(Gain) loss recognized in our Statements of Consolidated Loss related to non-designated hedges:
Alloying Metals – Realized gain	$	(0.5	)	$	(1.5	)	$	(1.1	)	$	(2.6	)	Cost of products sold
Alloying Metals – Unrealized loss		2.9			0.4			1.9			0.1		Cost of products sold
Total loss (gain) recognized in our Statements of Consolidated Loss related to non-designated hedges	$	2.4		$	(1.1	)	$	0.8		$	(2.5	)

Schedule of Fair Value of Derivative Financial Instruments

The following table presents the fair value of our derivative financial instruments (in millions of dollars):

	As of June 30, 2022								As of December 31, 2021
	Assets		Liabilities			Net Amount			Assets		Liabilities			Net Amount
Cash Flow Hedges:
Aluminum –
Fixed price purchase contracts	$	2.8	$	(21.6	)	$	(18.8	)	$	12.2	$	(1.1	)	$	11.1
Fixed price sales contracts		3.2		—			3.2			—		—			—
Midwest premium swap contracts		2.2		(2.0	)		0.2			5.5		(0.1	)		5.4
Natural gas – Fixed price purchase contracts		8.1		—			8.1			3.0		(0.1	)		2.9
Electricity – Fixed price purchase contracts		5.1		—			5.1			4.4		(0.6	)		3.8
Total cash flow hedges		21.4		(23.6	)		(2.2	)		25.1		(1.9	)		23.2

Non-Designated Hedges:
Alloying Metals –
Fixed price purchase contracts		0.2		(0.6	)		(0.4	)		1.6		(0.1	)		1.5
Total non-designated hedges		0.2		(0.6	)		(0.4	)		1.6		(0.1	)		1.5

Total	$	21.6	$	(24.2	)	$	(2.6	)	$	26.7	$	(2.0	)	$	24.7

The following table presents the total amounts of derivative assets and liabilities on our Consolidated Balance Sheets (in millions of dollars):

	As of June 30, 2022			As of December 31, 2021
Derivative assets:
Prepaid expenses and other current assets	$	17.5		$	25.0
Other assets		4.1			1.7
Total derivative assets	$	21.6		$	26.7
Derivative liabilities:
Other accrued liabilities	$	(23.9	)	$	(1.9	)
Long-term liabilities		(0.3	)		(0.1	)
Total derivative liabilities	$	(24.2	)	$	(2.0	)

Net Loss Per Share (Tables)

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Schedule of Calculation of Basic and Diluted Net Loss Per Share

The following table sets forth the computation of basic and diluted net loss per share (in millions of dollars, except share and per share amounts):

	Quarter Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Numerator:
Net loss	$	(13.8	)	$	(22.4	)	$	(5.7	)	$	(17.9	)
Denominator – Weighted-average common shares outstanding (in thousands):
Basic		15,899			15,835			15,883			15,820
Add: dilutive effect of non-vested common shares, restricted stock units and performance shares¹		—			—			—			—
Diluted		15,899			15,835			15,883			15,820

Net loss per common share, Basic:	$	(0.87	)	$	(1.42	)	$	(0.36	)	$	(1.13	)
Net loss per common share, Diluted:	$	(0.87	)	$	(1.42	)	$	(0.36	)	$	(1.13	)

Quantities in the following discussion are denoted in whole shares. For the quarters ended June 30, 2022 and June 30, 2021 and the six months ended June 30, 2022 and June 30, 2021, approximately 157,000, 226,000, 161,000 and 214,000 shares, respectively, were excluded from the computation of net loss per share as their inclusion would have been anti‑dilutive.

Supplemental Balance Sheet Information - Schedule of Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Trade Receivables, Net
Allowance for doubtful receivables	$ (0.6)	$ (0.8)
Trade receivables, net	351.1	332.7
Inventories
Finished products	66.9	90.3
Work-in-process	160.3	162.2
Raw materials	230.2	143.0
Operating supplies	11.2	9.1
Total	468.6	404.6
Property, Plant and Equipment, Net
Land and improvements	26.4	26.0
Buildings and leasehold improvements	184.5	179.0
Machinery and equipment	1,171.7	1,151.5
Construction in progress	99.8	75.3
Property, plant and equipment, gross	1,482.4	1,431.8
Accumulated depreciation and amortization	(526.5)	(480.4)
Assets held for sale	0.4	3.8
Property, plant and equipment, net	956.3	955.2
Other Accrued Liabilities
Uncleared cash disbursements	11.1	10.9
Accrued income taxes and other taxes payable	11.7	9.5
Accrued interest	9.9	9.9
Short-term environmental accrual	2.8	2.6
Other	51.8	25.5
Total	87.3	58.4
Long-Term Liabilities
Workers' compensation accrual	31.8	31.9
Long-term environmental accrual	13.2	14.2
Other long-term liabilities	28.6	26.4
Total	73.6	72.5
Billed
Trade Receivables, Net
Billed trade receivables	$ 351.7	$ 333.5

Employee Benefits - Summary of Total Expense (Benefit) Related to All Postretirement Benefit Plans (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Defined Benefit Plan Disclosure [Line Items]
Total net periodic postretirement benefit cost	$ 1.5	$ 1.2	$ 2.9	$ 1.8
Other Postretirement Benefits Plan
Defined Benefit Plan Disclosure [Line Items]
Defined contribution plan, cost	4.0	3.6	9.7	7.0
Deferred compensation arrangement with individual, compensation expense	(0.5)	0.4	(0.8)	0.4
Multiemployer plan, contributions by employer	1.4	1.3	2.6	2.4
Total net periodic postretirement benefit cost	1.0	1.0	1.9	1.0
Total other employee benefit plans	8.2	8.3	18.0	13.4
Postretirement Health Coverage \| Salaried VEBA
Defined Benefit Plan Disclosure [Line Items]
Total net periodic postretirement benefit cost	1.0	0.5	1.9	1.1
Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Total net periodic postretirement benefit cost	$ 1.3	$ 1.5	$ 2.7	$ 1.5

Debt and Credit Facility (Tables)

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Summary of Senior Notes

The following table summarizes key details of our Senior Notes:

				Outstanding (in millions of dollars)
	Issuance Date	Maturity	Effective Interest Rate	As of June 30, 2022		As of December 31, 2021
4.50% Senior Notes	May 2021	June 2031	4.7%	$	550.0	$	550.0
6.50% Senior Notes¹	April/May 2020	May 2025	6.8%		—		—
4.625% Senior Notes	November 2019	March 2028	4.8%		500.0		500.0
Total debt