10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2014

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission File Number: 333-185443

________________________________________________________________________

Aleris Corporation

(Exact name of registrant as specified in its charter)

________________________________________________________________________

Delaware	27-1539594
(State or other jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
25825 Science Park Drive, Suite 400 Cleveland, Ohio 44122-7392
(Address of principal executive offices) (Zip Code)

(216) 910-3400

(Registrant’s telephone number, including area code)

________________________________________________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ¨  No  þ

(Note: Registrant is a voluntary filer of reports required to be filed by certain companies under Sections 13 and 15(d) of the Securities Exchange Act of 1934 and has filed all reports that would have been required during the preceding 12 months, had it been subject to such filing requirements.)

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes þ    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨		Accelerated filer	¨
Non-accelerated filer	þ	(Do not check if smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  þ

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes þ    No¨

There were 31,245,325 shares of the registrant’s common stock, par value $0.01 per share, outstanding as of March 31, 2014.

ALERIS CORPORATION

QUARTERLY REPORT ON FORM 10-Q

March 31, 2014

TABLE OF CONTENTS

		Page No.
PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements:
	Consolidated Balance Sheet (Unaudited) as of March 31, 2014 and December 31, 2013	3
	Consolidated Statements of Comprehensive Loss (Unaudited) for the Three Months Ended March 31, 2014 and 2013	4
	Consolidated Statements of Cash Flows (Unaudited) for the Three Months Ended March 31, 2014 and 2013	5
	Notes to Consolidated Financial Statements (Unaudited)	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	44
Item 4.	Controls and Procedures	46
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	46
Item 1A.	Risk Factors	46
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	46
Item 3.	Defaults Upon Senior Securities	46
Item 4.	Mine Safety Disclosures	47
Item 5.	Other Information	47
Item 6.	Exhibits	47
Signatures		49

2

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

ALERIS CORPORATION

CONSOLIDATED BALANCE SHEET

(UNAUDITED)

(in millions, except share and per share data)

ASSETS	March 31, 2014			December 31, 2013
Current Assets
Cash and cash equivalents	$	51.3		$	60.1
Accounts receivable (net of allowances of $9.8 and $7.7 at March 31, 2014 and December 31, 2013, respectively)	460.1			376.9
Inventories	693.7			683.4
Deferred income taxes	7.1			7.1
Prepaid expenses and other current assets	28.6			31.5
Total Current Assets	1,240.8			1,159.0
Property, plant and equipment, net	1,144.5			1,157.7
Intangible assets, net	43.0			43.5
Deferred income taxes	45.2			45.2
Other long-term assets	65.9			67.5
Total Assets	$	2,539.4		$	2,472.9
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	381.3		$	303.2
Accrued liabilities	197.2			200.9
Deferred income taxes	3.9			3.9
Current portion of long-term debt	10.1			8.3
Total Current Liabilities	592.5			516.3
Long-term debt	1,238.2			1,229.1
Deferred income taxes	4.8			4.4
Accrued pension benefits	226.8			228.5
Accrued postretirement benefits	40.7			40.9
Other long-term liabilities	77.6			79.3
Total Long-Term Liabilities	1,588.1			1,582.2
Redeemable noncontrolling interest	5.6			5.7
Stockholders’ Equity
Common stock; par value $.01; 45,000,000 shares authorized and 31,245,325 and 31,229,064 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively	0.3			0.3
Preferred stock; par value $.01; 1,000,000 shares authorized; none issued	—			—
Additional paid-in capital	405.9			401.9
Retained deficit	(65.3		)	(47.6		)
Accumulated other comprehensive income	11.7			13.8
Total Aleris Corporation Equity	352.6			368.4
Noncontrolling interest	0.6			0.3
Total Equity	353.2			368.7
Total Liabilities and Equity	$	2,539.4		$	2,472.9

The accompanying notes are an integral part of these unaudited consolidated financial statements.

3

ALERIS CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(UNAUDITED)

(in millions, except per share data)

	For the three months ended
	March 31, 2014			March 31, 2013
Revenues	$	1,054.2		$	1,110.1
Cost of sales	979.1			1,021.1
Gross profit	75.1			89.0
Selling, general and administrative expenses	61.9			61.6
Restructuring charges	0.5			0.9
Gains on derivative financial instruments	(0.5		)	(9.1		)
Other operating expense (income), net	0.3			(1.1		)
Operating income	12.9			36.7
Interest expense, net	26.3			21.0
Other income, net	(0.4		)	(1.9		)
(Loss) income before income taxes	(13.0		)	17.6
Provision for income taxes	4.3			6.3
Net (loss) income	(17.3		)	11.3
Net income attributable to noncontrolling interest	0.3			0.4
Net (loss) income attributable to Aleris Corporation	$	(17.6	)	$	10.9
Comprehensive loss	$	(19.3	)	$	(5.4	)
Comprehensive income attributable to noncontrolling interest	0.3			0.4
Comprehensive loss attributable to Aleris Corporation	$	(19.6	)	$	(5.8	)

The accompanying notes are an integral part of these unaudited consolidated financial statements.

4

ALERIS CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(in millions)

	For the three months ended
	March 31, 2014			March 31, 2013
Operating activities
Net (loss) income	$	(17.3	)	$	11.3
Adjustments to reconcile net (loss) income to net cash provided (used) by operating activities:
Depreciation and amortization	33.2			27.2
Provision for deferred income taxes	0.5			1.0
Stock-based compensation expense	4.2			2.7
Unrealized losses (gains) on derivative financial instruments	9.3			(10.3		)
Currency exchange losses on debt	0.3			0.4
Amortization of debt issuance costs	2.0			1.9
Other	1.1			(2.1		)
Changes in operating assets and liabilities:
Change in accounts receivable	(83.5		)	(105.5		)
Change in inventories	(11.1		)	(14.1		)
Change in other assets	2.3			(12.0		)
Change in accounts payable	90.3			52.2
Change in accrued liabilities	(3.5		)	(8.3		)
Net cash provided (used) by operating activities	27.8			(55.6		)
Investing activities
Payments for property, plant and equipment	(47.5		)	(96.9		)
Other	0.5			1.6
Net cash used by investing activities	(47.0		)	(95.3		)
Financing activities
Proceeds from the ABL facility	40.0			—
Payments on the ABL facility	(30.0		)	—
Proceeds from the Zhenjiang term loans	—			0.2
Net proceeds from other long-term debt	0.7			0.6
Other	(0.3		)	(2.3		)
Net cash provided (used) by financing activities	10.4			(1.5		)
Effect of exchange rate differences on cash and cash equivalents	—			(1.2		)
Net decrease in cash and cash equivalents	(8.8		)	(153.6		)
Cash and cash equivalents at beginning of period	60.1			592.9
Cash and cash equivalents at end of period	$	51.3		$	439.3

The accompanying notes are an integral part of these unaudited consolidated financial statements.

5

ALERIS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(amounts in millions, except share and per share data)

1. BASIS OF PRESENTATION

The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The operating results for interim periods contained herein are not necessarily indicative of the results that may be expected for any other interim period or for the full year. The accompanying Consolidated Financial Statements include the accounts of Aleris Corporation and all of its subsidiaries (collectively, except where the context otherwise requires, referred to as “Aleris,” “we,” “us,” “our,” “Company” or similar terms). Aleris Corporation is a holding company and currently conducts its business and operations through its direct wholly owned subsidiary, Aleris International, Inc. and its consolidated subsidiaries. Aleris International, Inc. is referred to herein as “Aleris International.”

2. INVENTORIES

The components of our “Inventories” as of March 31, 2014 and December 31, 2013 are as follows:

	March 31, 2014		December 31, 2013
Finished goods	$	196.1	$	185.6
Raw materials	248.5		265.9
Work in process	218.4		203.0
Supplies	30.7		28.9
Total inventories	$	693.7	$	683.4

3. LONG-TERM DEBT

Our debt as of March 31, 2014 and December 31, 2013 is summarized as follows:

	March 31, 2014		December 31, 2013
ABL facility	$	10.0	$	—
7 5/8% senior notes due 2018, net of discount of $5.5 and $5.9 at March 31, 2014 and December 31, 2013, respectively	494.5		494.1
7 7/8% senior notes due 2020, net of discount of $7.2 and $7.5 at March 31, 2014 and December 31, 2013, respectively	492.8		492.5
Exchangeable notes, net of discount of $0.6 and $0.7 at March 31, 2014 and December 31, 2013, respectively	44.2		44.2
Zhenjiang term loans, net of discount of $1.0 at March 31, 2014 and December 31, 2013	190.8		192.2
Other	16.0		14.4
Total debt	1,248.3		1,237.4
Less: Current portion of long-term debt	10.1		8.3
Total long-term debt	$	1,238.2	$	1,229.1

4. COMMITMENTS AND CONTINGENCIES

Environmental Proceedings

Our operations are subject to environmental laws and regulations governing air emissions, wastewater discharges, the handling, disposal and remediation of hazardous substances and wastes and employee health and safety. These laws can impose joint and several liabilities for releases or threatened releases of hazardous substances upon statutorily defined parties, including us, regardless of fault or the lawfulness of the original activity or disposal. Given the changing nature of

6

ALERIS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (CONTINUED)

(amounts in millions, except share and per share data)

environmental legal requirements, we may be required, from time to time, to take environmental control measures at some of our facilities to meet future requirements.

We have been named as a potentially responsible party in certain proceedings initiated pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act and similar stated statutes and may be named a potentially responsible party in other similar proceedings in the future. It is not anticipated that the costs incurred in connection with the presently pending proceedings will, individually or in the aggregate, have a material adverse effect on our financial position, results of operations or cash flows.

We are performing operations and maintenance at two Superfund sites for matters arising out of past waste disposal activity associated with closed facilities. We are also under orders to perform environmental remediation by agencies in four states and one non-U.S. country at seven sites.

Our reserves for environmental remediation liabilities totaled $35.0 and $35.3 at March 31, 2014 and December 31, 2013, respectively, and have been classified as “Other long-term liabilities” and “Accrued liabilities” in the Consolidated Balance Sheet. Of the environmental liabilities recorded at March 31, 2014 and December 31, 2013, $6.0 and $6.3, respectively, are indemnified by Corus Group Ltd.

In addition to environmental liabilities, we have recorded asset retirement obligations associated with legal requirements related primarily to the normal operation of our landfills and the retirement of the related assets. Our total asset retirement obligations were $12.4 at March 31, 2014 and December 31, 2013. The amounts represent the most probable costs of remedial actions. We estimate the costs related to currently identified remedial actions will be paid out primarily over the next 10 years.

Legal Proceedings

We are party to routine litigation and proceedings as part of the ordinary course of business and do not believe that the outcome of any existing proceedings would have a material adverse effect on our financial position, results of operations or cash flows. We have established accruals for those loss contingencies, including litigation and environmental contingencies, for which it has been determined that a loss is probable; none of such loss contingencies is material. For those loss contingencies, including litigation and environmental contingencies, which have been determined to be reasonably possible, an estimate of the possible loss or range of loss cannot be determined because the claims, amount claimed, facts or legal status are not sufficiently developed or advanced in order to make such a determination. While we cannot estimate the loss or range of loss at this time, we do not believe that the outcome of any of these existing proceedings would be material to our financial position, results of operations or cash flows.

5. STOCKHOLDERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTEREST

The following table summarizes the activity within stockholders’ equity and redeemable noncontrolling interest for the three months endedMarch 31, 2014:

	Aleris Corporation equity			Noncontrolling interest		Total equity			Redeemable noncontrolling interest
Total equity at January 1, 2014	$	368.4		$	0.3	$	368.7		$	5.7
Net (loss) income	(17.6		)	0.3		(17.3		)	—
Other comprehensive loss	(2.1		)	—		(2.1		)	—
Stock-based compensation activity	3.9			—		3.9			—
Other	—			—		—			(0.1		)
Total equity at March 31, 2014	$	352.6		$	0.6	$	353.2		$	5.6

7

ALERIS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (CONTINUED)

(amounts in millions, except share and per share data)

The following table shows changes in the number of our outstanding shares of common stock:

	Outstanding shares of common stock
Balance at January 1, 2014	31,229,064
Issuance associated with options exercised	3,434
Issuance associated with vested restricted stock units	11,620
Issuance upon conversion of exchangeable notes	1,207
Balance at March 31, 2014	31,245,325

6. ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table summarizes the activity within accumulated other comprehensive income for the three months endedMarch 31, 2014:

	Currency translation			Pension and other postretirement			Total
Balance at January 1, 2014	$	45.8		$	(32.0	)	$	13.8
Current period currency translation adjustments	(2.3		)	—			(2.3		)
Amortization of net actuarial losses	—			0.2			0.2
Balance at March 31, 2014	$	43.5		$	(31.8	)	$	11.7

A summary of reclassifications out of accumulated other comprehensive income for the three months endedMarch 31, 2014 is provided below:

Description of reclassifications out of accumulated other comprehensive income	Amount reclassified
Amortization of defined benefit pension and other postretirement benefit items:
Amortization of net actuarial losses before tax	$	(0.2	)	(a)
Losses reclassified into earnings, net of tax	$	(0.2	)

(a) This component of accumulated other comprehensive income is included in the computation of net periodic benefit expense and net postretirement benefit expense (see Note 10, “Employee Benefit Plans,” for additional detail).

7. SEGMENT INFORMATION

We report six operating segments based on the organizational structure that is used by the chief operating decision maker to evaluate performance, make decisions on resource allocation and for which discrete financial information is available.

The Company’s operating segments are:

▪ Rolled Products North America (“RPNA”);

▪ Rolled Products Europe (“RPEU”);

▪ Rolled Products Asia Pacific (“RPAP”);

▪ Extrusions;

▪ Recycling and Specification Alloys North America (“RSAA”); and

▪ Recycling and Specification Alloys Europe (“RSEU”).

Measurement of Segment Income or Loss and Segment Assets

The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies in the Consolidated Financial Statements for the year ended December 31, 2013. Our measure of profitability for our operating segments is referred to as segment income and loss. Segment income and loss includes gross

8

ALERIS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (CONTINUED)

(amounts in millions, except share and per share data)

profits, segment specific realized gains and losses on derivative financial instruments, segment specific other income and expense, segment specific selling, general and administrative (“SG&A”) expense and an allocation of certain regional and global functional SG&A expenses. Segment income and loss excludes provisions for and benefits from income taxes, restructuring items, interest, depreciation and amortization, unrealized and certain realized gains and losses on derivative financial instruments, corporate general and administrative costs, start-up expenses, gains and losses on asset sales, currency exchange gains and losses on debt and certain other gains and losses. Intersegment sales and transfers are recorded at market value. Consolidated cash, net capitalized debt costs, deferred tax assets and assets related to our headquarters offices are not allocated to the segments.

Reportable Segment Information

The following table shows our revenues and segment income (loss) for the periods presented in our Consolidated Statements of Comprehensive Loss:

Three months ended March 31, 2014	RPNA		RPEU		RPAP			Extrusions		RSAA		RSEU		Intersegment Revenues			Total
Revenues to external customers	$	260.9	$	323.2	$	6.9		$	91.4	$	233.7	$	138.1				$	1,054.2
Intersegment revenues	0.4		31.6		3.1			1.9		1.5		5.2		$	(43.7	)	—
Total revenues	$	261.3	$	354.8	$	10.0		$	93.3	$	235.2	$	143.3	$	(43.7	)	$	1,054.2
Segment income	$	26.9	$	38.1	$	—		$	3.0	$	9.0	$	4.3				$	81.3
Three months ended March 31, 2013	RPNA		RPEU		RPAP			Extrusions		RSAA		RSEU		Intersegment Revenues			Total
Revenues to external customers	$	313.7	$	327.0	$	0.7		$	86.7	$	236.2	$	145.8				$	1,110.1
Intersegment revenues	0.6		42.2		—			2.3		2.2		9.9		$	(57.2	)	—
Total revenues	$	314.3	$	369.2	$	0.7		$	89.0	$	238.4	$	155.7	$	(57.2	)	$	1,110.1
Segment income (loss)	$	23.5	$	38.5	$	(0.3	)	$	3.0	$	10.4	$	3.3				$	78.4

The following table reconciles total segment income to “(Loss) income before income taxes” as reported in our Consolidated Statements of Comprehensive Loss:

	For the three months ended
	March 31, 2014			March 31, 2013
Total segment income	$	81.3		$	78.4
Unallocated amounts:
Depreciation and amortization	(33.2		)	(27.2		)
Corporate general and administrative expenses, excluding depreciation, amortization, start-up expenses and other expenses	(15.0		)	(11.3		)
Restructuring charges	(0.5		)	(0.9		)
Interest expense, net	(26.3		)	(21.0		)
Unallocated (losses) gains on derivative financial instruments	(9.3		)	10.2
Unallocated currency exchange losses	(1.5		)	—
Start-up expenses	(8.4		)	(11.4		)
Other (expense) income, net	(0.1		)	0.8
(Loss) income before income taxes	$	(13.0	)	$	17.6

9

ALERIS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (CONTINUED)

(amounts in millions, except share and per share data)

The following table shows our reportable segment assets as of March 31, 2014 and December 31, 2013:

	March 31, 2014		December 31, 2013
Assets
RPNA	$	553.0	$	524.7
RPEU	719.6		699.2
RPAP	428.9		439.4
Extrusions	153.7		141.8
RSAA	310.4		294.5
RSEU	198.1		183.7
Unallocated assets	175.7		189.6
Total consolidated assets	$	2,539.4	$	2,472.9

8. STOCK-BASED COMPENSATION

On June 1, 2010, the Board of Directors of Aleris Corporation (the “Board”) approved the Aleris Corporation 2010 Equity Incentive Plan, which has been amended from time to time (the “2010 Equity Plan”). Stock options, restricted stock units and restricted shares have been granted under the 2010 Equity Plan to certain members of management of the Company and non-employee directors. All stock options granted have a life not to exceed ten years and generally vest over a period not to exceed four years. Shares of common stock are issued upon stock option exercises from available shares. The restricted stock units and restricted shares also vest over a period not to exceed four years. A portion of the stock options, as well as a portion of the restricted stock units and restricted shares, may vest upon a change in control event should the event occur prior to full vesting of these awards, depending on the amount of vesting that has already occurred at the time of the event in comparison to the change in our largest stockholders’ overall level of beneficial ownership that results from the event.

During the three months endedMarch 31, 2014, we granted 992,533 stock options and 334,456 restricted stock units to certain members of our senior management and non-employee directors. We recorded compensation expense associated with stock options, restricted stock units and restricted shares of $4.2 and $2.7 during the three months endedMarch 31, 2014 and 2013, respectively.

9. INCOME TAXES

Our effective tax rates were (33.1)% and 36.2% for the three months endedMarch 31, 2014 and 2013, respectively. The effective tax rates for the three months endedMarch 31, 2014 and 2013 differed from the federal statutory rate applied to income and losses before income taxes primarily as a result of the mix of income, losses and tax rates between tax jurisdictions and valuation allowances.

We have valuation allowances recorded to reduce certain deferred tax assets to amounts that are more likely than not to be realized. The valuation allowances relate to the potential inability to realize our deferred tax assets associated with amortization and net operating loss carryforwards in the U.S. and depreciation and net operating loss carryforwards in non-U.S. jurisdictions. We intend to maintain our valuation allowances until sufficient positive evidence exists (such as cumulative positive earnings and estimated future taxable income) to support their reversal.

As of March 31, 2014, we had $2.8 of unrecognized tax benefits. The majority of the gross unrecognized tax benefits, if recognized, would affect our annual effective tax rate. We recognize interest and penalties related to uncertain tax positions within the “Provision for income taxes” in the Consolidated Statements of Comprehensive Loss. As of March 31, 2014, we had approximately $0.2 of accrued interest related to uncertain tax positions.

The 2009 through 2013 tax years remain open to examination. During the first quarter of 2013, the IRS commenced an examination of our tax returns for the years ended December 31, 2011 and 2010 that is anticipated to be completed within three months of the reporting date. During the fourth quarter of 2013, a non-U.S. taxing jurisdiction commenced an examination of our tax returns for the tax years ended December 31, 2012, 2011, 2010 and 2009 that is anticipated to be completed within nine months of the reporting date.

10

ALERIS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (CONTINUED)

(amounts in millions, except share and per share data)

10. EMPLOYEE BENEFIT PLANS

Defined Benefit Pension Plans

The components of the net periodic benefit expense are as follows:

	U.S. pension benefits						Non-U.S. pension benefits
	for the three months ended						for the three months ended
	March 31, 2014			March 31, 2013			March 31, 2014		March 31, 2013
Service cost	$	0.8		$	0.9		$	1.0	$	1.0
Interest cost	1.8			1.6			1.9		1.7
Amortization of net actuarial losses	—			0.4			0.3		0.4
Expected return on plan assets	(2.6		)	(2.3		)	—		—
Net periodic benefit expense	$	—		$	0.6		$	3.2	$	3.1

Other Postretirement Benefit Plans

The components of net postretirement benefit expense are as follows:

	For the three months ended
	March 31, 2014			March 31, 2013
Service cost	$	—		$	0.1
Interest cost	0.5			0.4
Amortization of net actuarial (gains) losses	(0.1		)	0.1
Net postretirement benefit expense	$	0.4		$	0.6

11. DERIVATIVE AND OTHER FINANCIAL INSTRUMENTS

We use forward contracts and options, as well as contractual price escalators, to reduce the risks associated with our metal, natural gas and other supply requirements and certain currency exposures. Generally, we enter into master netting arrangements with our counterparties and offset net derivative positions with the same counterparties against amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral under those arrangements in our Consolidated Balance Sheet. For classification purposes, we record the net fair value of each type of derivative position that is expected to settle in less than one year with each counterparty as a net current asset or liability and each type of long-term position as a net long-term asset or liability. At March 31, 2014 and December 31, 2013, no cash collateral was posted. The amounts shown in the table below represent the gross amounts of recognized assets and liabilities, the amounts offset in the Consolidated Balance Sheet and the net amounts of assets and liabilities presented therein. As of March 31, 2014 and December 31, 2013, there were no amounts subject to an enforceable master netting arrangement or similar agreement that have not been offset in the Consolidated Balance Sheet.

	Fair Value of Derivatives as of
	March 31, 2014						December 31, 2013
Derivatives by Type	Asset			Liability			Asset			Liability
Metal	$	7.0		$	(20.3	)	$	13.3		$	(17.0	)
Natural gas	0.6			—			0.4			—
Total	7.6			(20.3		)	13.7			(17.0		)
Effect of counterparty netting	(6.9		)	6.9			(12.3		)	12.3
Net derivatives as classified in the balance sheet	$	0.7		$	(13.4	)	$	1.4		$	(4.7	)

11

ALERIS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (CONTINUED)

(amounts in millions, except share and per share data)

The fair value of our derivative financial instruments at March 31, 2014 and December 31, 2013 are recorded in the Consolidated Balance Sheet as follows:

Asset Derivatives	Balance Sheet Location	March 31, 2014		December 31, 2013
Metal	Prepaid expenses and other current assets	$	—	$	1.0
	Other long-term assets	0.1		—
Natural gas	Prepaid expenses and other current assets	0.6		0.4
Total		$	0.7	$	1.4
Liability Derivatives	Balance Sheet Location	March 31, 2014		December 31, 2013
Metal	Accrued liabilities	$	9.9	$	1.7
	Other long-term liabilities	3.5		3.0
Total		$	13.4	$	4.7

Derivative contracts are recorded at fair value under Financial Accounting Standards Board Accounting Standards Codification 820, “Fair Value Measurements and Disclosures,” using quoted market prices and significant other observable inputs. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

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

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

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

We endeavor to utilize the best available information in measuring fair value. Where appropriate, valuations are adjusted for various factors such as liquidity, bid/offer spreads, and credit considerations. Such adjustments are generally based on available market evidence and unobservable inputs. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following tables set forth our financial assets and liabilities that are accounted for at fair value on a recurring basis as of March 31, 2014 and December 31, 2013 and the level in the fair value hierarchy:

	Fair value measurements at March 31, 2014 using:
Description	Total carrying value in the Consolidated Balance Sheet			Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)
Derivative assets	$	7.6		$	—	$	7.6		$	—
Derivative liabilities	(20.3		)	—		(20.3		)	—
Net derivative liabilities	$	(12.7	)	$	—	$	(12.7	)	$	—

12

ALERIS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (CONTINUED)

(amounts in millions, except share and per share data)

	Fair value measurements at December 31, 2013 using:
Description	Total carrying value in the Consolidated Balance Sheet			Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)
Derivative assets	$	13.7		$	—	$	13.7		$	—
Derivative liabilities	(17.0		)	—		(17.0		)	—
Net derivative liabilities	$	(3.3	)	$	—	$	(3.3	)	$	—

Both realized and unrealized gains and losses on derivative financial instruments are included within “Gains on derivative financial instruments” in the Consolidated Statements of Comprehensive Loss. Realized (gains) losses on derivative financial instruments totaled the following:

	For the three months ended
	March 31, 2014			March 31, 2013
Metal	$	(8.3	)	$	0.9
Natural gas	(1.5		)	0.2

Metal Hedging

The selling prices of the majority of the orders for our rolled and extruded products are established at the time of order entry or, for certain customers, under long-term contracts. As the related raw materials used to produce these orders are purchased several months or years after the selling prices are fixed, margins are subject to the risk of changes in the purchase price of the raw materials used for these fixed price sales. In order to manage this transactional exposure, LME future or forward purchase contracts are purchased at the time the selling prices are fixed. As metal is purchased to fill these fixed price sales orders, LME future or forward contracts are then sold. We also maintain a significant amount of inventory on-hand to meet anticipated and unpriced future sales. In order to preserve the value of this inventory, LME future or forward contracts are sold at the time inventory is purchased. As sales orders are priced, LME future or forward contracts are purchased. These derivatives generally settle within three months. We can also use call option contracts, which function in a manner similar to the natural gas call option contracts discussed below and put option contracts for managing metal price exposures. Option contracts require the payment of a premium which is recorded as a realized loss upon settlement or expiration of the option contract. Upon settlement of a put option contract, we receive cash and recognize a related gain if the LME closing price is less than the strike price of the put option. If the put option strike price is less than the LME closing price, no amount is paid and the option expires. As of March 31, 2014 and December 31, 2013, we had 0.2 metric tons and 0.2 metric tons of metal buy and sell forward contracts, respectively.

Natural Gas Hedging

To manage our price exposure for natural gas purchases, we fix the future price of a portion of our natural gas requirements by entering into financial hedge agreements. Under these agreements, payments are made or received based on the differential between the monthly closing price on the New York Mercantile Exchange (“NYMEX”) and the contractual hedge price. We can use a combination of call option contracts and put option contracts for managing the exposure to increasing prices while maintaining our ability to benefit from declining prices. Upon settlement of call option contracts, we receive cash and recognize a related gain if the NYMEX closing price exceeds the strike price of the call option. If the call option strike price exceeds the NYMEX closing price, no amount is received and the option expires unexercised. Upon settlement of a put option contract, we pay cash and recognize a related loss if the NYMEX closing price is lower than the strike price of the put option. If the put option strike price is less than the NYMEX closing price, no amount is paid and the option expires unexercised. Option contracts require the payment of a premium which is recorded as a realized loss upon settlement or expiration of the option contract. Natural gas cost can also be managed through the use of cost escalators included in some of our long-term supply contracts with customers, which limits exposure to natural gas price risk. As of March 31, 2014 and December 31, 2013, we had 1.9 trillion and 2.9 trillion of British thermal unit forward buy contracts, respectively.

13

ALERIS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (CONTINUED)

(amounts in millions, except share and per share data)

Currency Exchange Hedging

From time to time, we may enter into currency forwards, futures, call options and similar derivative financial instruments to limit our exposure to fluctuations in currency exchange rates. As of March 31, 2014 and December 31, 2013, no currency call option contracts were outstanding.

Credit Risk

We are exposed to losses in the event of non-performance by the counterparties to the derivative financial instruments discussed above; however, we do not anticipate any non-performance by the counterparties. The counterparties are evaluated for creditworthiness and risk assessment prior to initiating trading activities with the brokers and periodically throughout each year while actively trading.

Other Financial Instruments

The carrying amount and fair values of our other financial instruments at March 31, 2014 and December 31, 2013 are as follows:

	March 31, 2014				December 31, 2013
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents	$	51.3	$	51.3	$	60.1	$	60.1
ABL facility	10.0		10.0		—		—
Exchangeable notes	44.2		72.7		44.2		72.7
7 5/8% senior notes	494.5		516.2		494.1		530.0
7 7/8% senior notes	492.8		515.0		492.5		531.3
Zhenjiang term loans	190.8		191.8		192.2		193.2

The following tables set forth our other financial instruments for which fair value is disclosed and the level in the fair value hierarchy within which the fair value measurements are categorized as of March 31, 2014 and December 31, 2013:

	Fair value measurements at March 31, 2014 using:
Description	Total estimated fair value		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Cash and cash equivalents	$	51.3	$	51.3	$	—	$	—
ABL facility	10.0		—		10.0		—
Exchangeable notes	72.7		—		—		72.7
7 5/8% senior notes	516.2		516.2		—		—
7 7/8% senior notes	515.0		515.0		—		—
Zhenjiang term loans	191.8		—		—		191.8

	Fair value measurements at December 31, 2013 using:
Description	Total estimated fair value		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Cash and cash equivalents	$	60.1	$	60.1	$	—	$	—
Exchangeable notes	72.7		—		—		72.7
7 5/8% senior notes	530.0		530.0		—		—
7 7/8% senior notes	531.3		531.3		—		—
Zhenjiang term loans	193.2		—		—		193.2

14

ALERIS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (CONTINUED)

(amounts in millions, except share and per share data)

The principal amount of the ABL facility approximates fair value because the interest rate paid is variable and there have been no significant changes in the credit risk of Aleris International subsequent to the borrowings. The fair value of Aleris International’s exchangeable notes was estimated using a binomial lattice pricing model based on the fair value of our common stock, a risk-free interest rate of 2.0% as of March 31, 2014 and 2.3% as of December 31, 2013 and expected equity volatility of 55%. Expected equity volatility was determined based on historical stock prices and implied and stated volatilities of our peer companies. The fair values of the 7 ⁵/₈% senior notes and the 7 ⁷/₈% senior notes were estimated using market quotations. The principal amount of the Zhenjiang term loans approximates fair value because the interest rate paid is variable, is set for periods of six months or less and there have been no significant changes in the credit risk of Aleris Zhenjiang subsequent to the inception of the China loan facility.

12. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

On February 9, 2011 and October 23, 2012, Aleris International issued the 7 ⁵/8% senior notes and the 7 ⁷/8% senior notes (collectively, the “Senior Notes”), respectively. Aleris Corporation, the direct parent of Aleris International, and certain of its subsidiaries (collectively, the “Guarantor Subsidiaries”) are guarantors of the indebtedness under the Senior Notes. Aleris Corporation and each of the Guarantor Subsidiaries have fully and unconditionally guaranteed (subject, in the case of the Guarantor Subsidiaries, to customary release provisions as described below), on a joint and several basis, to pay principal and interest related to the Senior Notes and Aleris International and each of the Guarantor Subsidiaries are directly or indirectly 100% owned subsidiaries of Aleris Corporation. For purposes of complying with the reporting requirements of Aleris International and the Guarantor Subsidiaries, presented below are condensed consolidating financial statements of Aleris Corporation, Aleris International, the Guarantor Subsidiaries, and those other subsidiaries of Aleris Corporation that are not guaranteeing the indebtedness under the Senior Notes (the “Non-Guarantor Subsidiaries”). The condensed consolidating balance sheets are presented as of March 31, 2014 and December 31, 2013. The condensed consolidating statements of comprehensive (loss) income are presented for the three months endedMarch 31, 2014 and 2013. The condensed consolidating statements of cash flows are presented for the three months endedMarch 31, 2014 and 2013.

The guarantee of a Guarantor Subsidiary will be automatically and unconditionally released and discharged in the event of:

▪ any sale of the Guarantor Subsidiary or of all or substantially all of its assets;

▪ a Guarantor Subsidiary being designated as an “unrestricted subsidiary” in accordance with the indentures governing the Senior Notes;

▪ the release or discharge of a Guarantor Subsidiary from its guarantee under the ABL facility or other indebtedness that resulted in the obligation of the Guarantor Subsidiary under the indentures governing the Senior Notes; and

▪ the requirements for legal defeasance or covenant defeasance or discharge of the indentures governing the Senior Notes having been satisfied.

The condensed consolidating statements of cash flows for the three months endedMarch 31, 2013 have been restated to revise the presentation of cash flows related to intercompany loans. The revisions significantly changed the classification of certain intercompany cash flows as operating, investing and financing activities; however, there was no change in the total net cash flows of Aleris Corporation, Aleris International, Inc. or the Guarantor Subsidiaries. There was no impact to the condensed consolidating statements of comprehensive (loss) income or to the consolidated financial statements for the three months endedMarch 31, 2013 as a result of these presentation changes.

15

ALERIS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (CONTINUED)

(amounts in millions, except share and per share data)

	As of March 31, 2014
	Aleris Corporation (Parent)		Aleris International, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current Assets
Cash and cash equivalents	$	—	$	—	$	—	$	51.4	$	(0.1	)	$	51.3
Accounts receivable, net	—		—		149.7		310.4		—			460.1
Inventories	—		—		263.6		430.1		—			693.7
Deferred income taxes	—		—		0.2		6.9		—			7.1
Prepaid expenses and other current assets	—		0.5		13.9		14.2		—			28.6
Intercompany receivables	—		481.7		463.0		215.6		(1,160.3		)	—
Total Current Assets	—		482.2		890.4		1,028.6		(1,160.4		)	1,240.8
Property, plant and equipment, net	—		—		370.9		773.6		—			1,144.5
Intangible assets, net	—		—		27.1		15.9		—			43.0
Deferred income taxes	—		—		—		45.2		—			45.2
Other long-term assets	—		11.4		4.2		50.3		—			65.9
Intercompany receivables	—		3.6		—		—		(3.6		)	—
Investments in subsidiaries	356.2		1,491.0		118.3		—		(1,965.5		)	—
Total Assets	$	356.2	$	1,988.2	$	1,410.9	$	1,913.6	$	(3,129.5	)	$	2,539.4
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	—	$	2.0	$	147.2	$	232.2	$	(0.1	)	$	381.3
Accrued liabilities	—		21.3		65.2		110.7		—			197.2
Deferred income taxes	—		—		—		3.9		—			3.9
Current portion of long-term debt	—		—		0.5		9.6		—			10.1
Intercompany payables	—		561.6		488.0		110.7		(1,160.3		)	—
Total Current Liabilities	—		584.9		700.9		467.1		(1,160.4		)	592.5
Long-term debt	—		1,041.5		0.7		196.0		—			1,238.2
Deferred income taxes	—		—		0.2		4.6		—			4.8
Accrued pension benefits	—		—		31.5		195.3		—			226.8
Accrued postretirement benefits	—		—		40.7		—		—			40.7
Other long-term liabilities	—		—		32.8		44.8		—			77.6
Intercompany payables	3.6		—		—		—		(3.6		)	—
Total Long-Term Liabilities	3.6		1,041.5		105.9		440.7		(3.6		)	1,588.1
Redeemable noncontrolling interest	—		5.6		—		—		—			5.6
Total equity	352.6		356.2		604.1		1,005.2		(1,965.5		)	352.6
Noncontrolling interest	—		—		—		0.6		—			0.6
Total Liabilities and Equity	$	356.2	$	1,988.2	$	1,410.9	$	1,913.6	$	(3,129.5	)	$	2,539.4

16

ALERIS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (CONTINUED)

(amounts in millions, except share and per share data)

	As of December 31, 2013
	Aleris Corporation (Parent)		Aleris International, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current Assets
Cash and cash equivalents	$	—	$	3.7	$	—	$	58.9	$	(2.5	)	$	60.1
Accounts receivable, net	—		—		125.7		251.2		—			376.9
Inventories	—		—		245.1		438.3		—			683.4
Deferred income taxes	—		—		0.2		6.9		—			7.1
Prepaid expenses and other current assets	—		0.5		16.1		14.9		—			31.5
Intercompany receivables	—		362.4		378.3		192.4		(933.1		)	—
Total Current Assets	—		366.6		765.4		962.6		(935.6		)	1,159.0
Property, plant and equipment, net	—		—		377.8		779.9		—			1,157.7
Intangible assets, net	—		—		27.6		15.9		—			43.5
Deferred income taxes	—		—		—		45.2		—			45.2
Other long-term assets	—		12.3		3.3		51.9		—			67.5
Intercompany receivables	—		3.4		—		—		(3.4		)	—
Investments in subsidiaries	371.8		1,510.6		117.7		—		(2,000.1		)	—
Total Assets	$	371.8	$	1,892.9	$	1,291.8	$	1,855.5	$	(2,939.1	)	$	2,472.9
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	—	$	0.4	$	117.1	$	188.2	$	(2.5	)	$	303.2
Accrued liabilities	—		21.7		67.0		112.2		—			200.9
Deferred income taxes	—		—		—		3.9		—			3.9
Current portion of long-term debt	—		—		0.5		7.8		—			8.3
Intercompany payables	—		462.4		371.7		99.0		(933.1		)	—
Total Current Liabilities	—		484.5		556.3		411.1		(935.6		)	516.3
Long-term debt	—		1,030.9		0.8		197.4		—			1,229.1
Deferred income taxes	—		—		0.2		4.2		—			4.4
Accrued pension benefits	—		—		33.8		194.7		—			228.5
Accrued postretirement benefits	—		—		40.9		—		—			40.9
Other long-term liabilities	—		—		32.7		46.6		—			79.3
Intercompany payables	3.4		—		—		—		(3.4		)	—
Total Long-Term Liabilities	3.4		1,030.9		108.4		442.9		(3.4		)	1,582.2
Redeemable noncontrolling interest	—		5.7		—		—		—			5.7
Total equity	368.4		371.8		627.1		1,001.2		(2,000.1		)	368.4
Noncontrolling interest	—		—		—		0.3		—			0.3
Total Liabilities and Equity	$	371.8	$	1,892.9	$	1,291.8	$	1,855.5	$	(2,939.1	)	$	2,472.9

17

ALERIS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (CONTINUED)

(amounts in millions, except share and per share data)

	For the three months ended March 31, 2014
	Aleris Corporation (Parent)			Aleris International, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	—		$	439.7		$	617.5		$	(3.0	)	$	1,054.2
Cost of sales	—			—			416.9			565.2			(3.0		)	979.1
Gross profit	—			—			22.8			52.3			—			75.1
Selling, general and administrative expenses	—			—			30.2			31.7			—			61.9
Restructuring charges (gains)	—			—			0.7			(0.2		)	—			0.5
(Gains) losses on derivative financial instruments	—			—			(3.7		)	3.2			—			(0.5		)
Other operating expense (income), net	—			—			0.5			(0.2		)	—			0.3
Operating (loss) income	—			—			(4.9		)	17.8			—			12.9
Interest expense, net	—			—			22.3			4.0			—			26.3
Other (income) expense, net	—			—			(3.7		)	3.3			—			(0.4		)
Equity in net loss (earnings) of affiliates	17.6			17.6			(0.6		)	—			(34.6		)	—
(Loss) income before income taxes	(17.6		)	(17.6		)	(22.9		)	10.5			34.6			(13.0		)
Provision for income taxes	—			—			—			4.3			—			4.3
Net (loss) income	(17.6		)	(17.6		)	(22.9		)	6.2			34.6			(17.3		)
Net income attributable to noncontrolling interest	—			—			—			0.3			—			0.3
Net (loss) income attributable to Aleris Corporation	$	(17.6	)	$	(17.6	)	$	(22.9	)	$	5.9		$	34.6		$	(17.6	)
Comprehensive (loss) income	$	(19.6	)	$	(19.6	)	$	(23.0	)	$	4.3		$	38.6		$	(19.3	)
Comprehensive income attributable to noncontrolling interest	—			—			—			0.3			—			0.3
Comprehensive (loss) income attributable to Aleris Corporation	$	(19.6	)	$	(19.6	)	$	(23.0	)	$	4.0		$	38.6		$	(19.6	)

	For the three months ended March 31, 2013
	Aleris Corporation (Parent)			Aleris International, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	—		$	507.9		$	603.9		$	(1.7	)	$	1,110.1
Cost of sales	—			—			475.4			547.4			(1.7		)	1,021.1
Gross profit	—			—			32.5			56.5			—			89.0
Selling, general and administrative expenses	—			—			27.9			33.7			—			61.6
Restructuring charges (gains)	—			—			1.2			(0.3		)	—			0.9
Gains on derivative financial instruments	—			—			(8.5		)	(0.6		)	—			(9.1		)
Other operating expense, net	—			—			—			(1.1		)	—			(1.1		)
Operating income	—			—			11.9			24.8			—			36.7
Interest expense (income), net	—			—			22.1			(1.1		)	—			21.0
Other income, net	—			—			(0.8		)	(1.1		)	—			(1.9		)
Equity in net earnings of affiliates	(10.9		)	(10.9		)	(0.5		)	—			22.3			—
Income (loss) before income taxes	10.9			10.9			(8.9		)	27.0			(22.3		)	17.6
Provision for income taxes	—			—			—			6.3			—			6.3
Net income (loss)	10.9			10.9			(8.9		)	20.7			(22.3		)	11.3
Net income attributable to noncontrolling interest	—			—			—			0.4			—			0.4
Net income (loss) attributable to Aleris Corporation	$	10.9		$	10.9		$	(8.9	)	$	20.3		$	(22.3	)	$	10.9
Comprehensive (loss) income	$	(5.8	)	$	(5.8	)	$	(7.9	)	$	3.6		$	10.5		$	(5.4	)
Comprehensive income attributable to noncontrolling interest	—			—			—			0.4			—			0.4
Comprehensive (loss) income attributable to Aleris Corporation	$	(5.8	)	$	(5.8	)	$	(7.9	)	$	3.2		$	10.5		$	(5.8	)

18

ALERIS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (CONTINUED)

(amounts in millions, except share and per share data)

	For the three months ended March 31, 2014
	Aleris Corporation (Parent)			Aleris International, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided (used) by operating activities	$	0.2		$	(18.6	)	$	19.2		$	24.6		$	2.4		$	27.8
Investing activities
Payments for property, plant and equipment	—			—			(19.0		)	(28.5		)	—			(47.5		)
Disbursements of intercompany loans	—			(15.0		)	(2.2		)	(15.0		)	32.2			—
Repayments from intercompany loans	—			5.0			2.5			—			(7.5		)	—
Other	—			—			(0.3		)	0.8			—			0.5
Net cash used by investing activities	—			(10.0		)	(19.0		)	(42.7		)	24.7			(47.0		)
Financing activities
Proceeds from the ABL facility	—			25.0			—			15.0			—			40.0
Payments on the ABL facility	—			(15.0		)	—			(15.0		)	—			(30.0		)
Net (payments on) proceeds from other long-term debt	—			—			(0.2		)	0.9			—			0.7
Proceeds from intercompany loans	—			15.0			—			17.2			(32.2		)	—
Repayments on intercompany loans	—			—			—			(7.5		)	7.5			—
Other	(0.2		)	(0.1		)	—			—			—			(0.3		)
Net cash (used) provided by financing activities	(0.2		)	24.9			(0.2		)	10.6			(24.7		)	10.4
Effect of exchange rate differences on cash and cash equivalents	—			—			—			—			—			—
Net decrease in cash and cash equivalents	—			(3.7		)	—			(7.5		)	2.4			(8.8		)
Cash and cash equivalents at beginning of period	—			3.7			—			58.9			(2.5		)	60.1
Cash and cash equivalents at end of period	$	—		$	—		$	—		$	51.4		$	(0.1	)	$	51.3

	For the three months ended March 31, 2013
	Aleris Corporation (Parent)			Aleris International, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided (used) by operating activities	$	2.0		$	(38.2	)	$	38.6		$	(57.5	)	$	(0.5	)	$	(55.6	)
Investing activities
Payments for property, plant and equipment	—			—			(19.6		)	(77.3		)	—			(96.9		)
Disbursements of intercompany loans	—			—			(24.6		)	—			24.6			—
Repayments from intercompany loans	—			—			5.5			—			(5.5		)	—
Equity contributions in subsidiaries	—			(60.0		)	(3.1		)	—			63.1			—
Other	—			—			0.1			1.5			—			1.6
Net cash used by investing activities	—			(60.0		)	(41.7		)	(75.8		)	82.2			(95.3		)
Financing activities
Proceeds from Zhenjiang term loans	—			—			—			0.2			—			0.2
Net proceeds from other long-term debt	—			—			—			0.6			—			0.6
Proceeds from intercompany loans	—			—			—			24.6			(24.6		)	—
Repayments on intercompany loans	—			—			—			(5.5		)	5.5			—
Proceeds from intercompany equity contributions	—			—			3.1			60.0			(63.1		)	—
Other	(2.0		)	(0.3		)	—			—			—			(2.3		)
Net cash (used) provided by financing activities	(2.0		)	(0.3		)	3.1			79.9			(82.2		)	(1.5		)
Effect of exchange rate differences on cash and cash equivalents	—			—			—			(1.2		)	—			(1.2		)
Net decrease in cash and cash equivalents	—			(98.5		)	—			(54.6		)	(0.5		)	(153.6		)
Cash and cash equivalents at beginning of period	—			472.4			—			121.6			(1.1		)	592.9
Cash and cash equivalents at end of period	$	—		$	373.9		$	—		$	67.0		$	(1.6	)	$	439.3

19

ALERIS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (CONTINUED)

(amounts in millions, except share and per share data)

13. SUBSEQUENT EVENT

On April 1, 2014, we acquired Nichols Aluminum, LLC (“Nichols”), a wholly owned subsidiary of Quanex Building Products Corporation, and a producer of aluminum sheet for the transportation, building and construction, machinery and equipment, consumer durables and electrical industries in North America for $110.0. The acquisition includes casting and finishing operations at two facilities in Davenport, Iowa, as well as finishing operations in Decatur, Alabama and Lincolnshire, Illinois.

The acquisition will be accounted for as a business combination, with the purchase price being allocated on a preliminary basis using information available in the second quarter of 2014. The operating results of Nichols will be reported within our RPNA segment from the date of acquisition.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following Management’s Discussion and Analysis of our Financial Condition and Results of Operations (“MD&A”) is intended to help you understand our operations as well as the industry in which we operate. Our MD&A is designed to provide a narrative from the perspective of our management on our financial condition, results of operations, liquidity and certain other factors that may affect our future results. Our MD&A includes the following sections:

▪ Overview - a general description of our business, our operating segments, the aluminum industry and our critical measures of financial performance;

▪ Seasonality and Management Outlook - a brief discussion of the material trends and uncertainties that may impact our business in the future;

▪ Results of Operations - an analysis and discussion of our consolidated and segment operating results for the three months ended March 31, 2014 and 2013;

▪ Liquidity and Capital Resources - an analysis and discussion of our cash flows for the three months endedMarch 31, 2014 and 2013, as well as a brief discussion of our current sources of capital; and

▪ Non-GAAP Financial Measures - an analysis and discussion of key financial performance measures, including EBITDA, Adjusted EBITDA and commercial margin (all defined below), as well as reconciliations to the applicable generally accepted accounting principles in the United States (“GAAP”) performance measures, for the three months ended March 31, 2014 and 2013.

This discussion should be read in conjunction with our unaudited consolidated financial statements and notes. The discussions of our financial condition and results of operations also include various forward-looking statements about our industry, the demand for our products and services and our projected results. These statements are based on certain assumptions that we consider reasonable. Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to these differences include, but are not limited to, those discussed below, particularly under the caption “Forward-Looking Statements.”

Overview

Our Business

We are a global leader in the manufacture and sale of aluminum rolled and extruded products, aluminum recycling and specification alloy manufacturing with locations in North America, Europe and China. Subsequent to the acquisition of Nichols Aluminum, LLC ("Nichols"), we operate more than 40 production facilities worldwide, with 19 production facilities that provide rolled and extruded aluminum products and 24 recycling and specification alloy manufacturing plants. We possess a combination of low-cost, flexible and technically advanced manufacturing operations supported by an industry-leading research and development platform. Our facilities are strategically located to service our customers, which include a number of the

20

world’s largest companies in the aerospace, automotive, transportation, building and construction, containers and packaging and metal distribution industries.

For a majority of our businesses, London Metal Exchange (“LME”) aluminum prices and local premium differentials (referred to as “Midwest Premium” in the U.S. and “Duty Paid/Unpaid Rotterdam” in Europe) serve as the pricing mechanisms for both the aluminum we purchase and the products we sell. Aluminum and other metal costs represented approximately 68% of our costs of sales for the three months endedMarch 31, 2014. Aluminum prices are determined by worldwide forces of supply and demand and, as a result, aluminum prices are volatile. Average LME aluminum prices per ton for the three months ended March 31, 2014 and 2013 were $1,708 and $2,001, respectively, which represents a decrease of approximately 15%.

Our business model strives to reduce the impact of aluminum price fluctuations on our financial results and protect and stabilize our margins, principally through pass-through pricing (market-based aluminum price plus a conversion fee), tolling arrangements (conversion of customer-owned material) and derivative financial instruments.

As a result of utilizing LME aluminum prices and local premium differentials to both buy our raw materials and to sell our products, we are able to pass through aluminum price changes in the majority of our commercial transactions. Consequently, while our revenues can fluctuate significantly as LME aluminum prices change, we would expect a less significant impact of these price changes on our profitability. Approximately 85% of our rolled products sales for the year ended December 31, 2013 were generated from aluminum pass-through arrangements. In addition to using LME prices to establish our invoice prices to customers, we use derivative financial instruments to further reduce the impacts of changing aluminum prices. Derivative financial instruments are entered into at the time fixed prices are established for aluminum purchases or sales, on a net basis, and allow us to fix the margin to be realized on our long-term contracts and on short-term contracts where selling prices are not established at the same time as the physical purchase price of aluminum. However, as we have elected not to account for our derivative financial instruments as hedges for accounting purposes, changes in the fair value of our derivative financial instruments are included in our results of operations immediately. These changes in fair value (referred to as “unrealized gains and losses”) can have a significant impact on our pre-tax income in the same way LME aluminum prices can have a significant impact on our revenues. In assessing the performance of our operating segments, we exclude these unrealized gains and losses, electing to include them only at the time of settlement to better match the period in which the underlying physical purchases and sales affect earnings.

Although our business model strives to reduce the impact of aluminum price fluctuations on our financial results, it cannot eliminate the impact completely. For example, the profitability of our recycling and specification alloy segments is impacted by changes in scrap aluminum prices whose movement may not be correlated to the price we are able to charge our customers. In addition, at times the profitability of our RPNA segment is impacted by changes in scrap aluminum prices whose movement may not be correlated to movements in LME prices. Furthermore, certain segments are exposed to variability in the local premium differential charged by industry participants to deliver aluminum from the smelter to the manufacturing facility, such as the Midwest Premium. This premium differential cannot be hedged and fluctuates in relation to several conditions, including the extent of warehouse financing transactions, which limit the amount of physical metal flowing to consumers and increases the price differential as a result. In addition to impacting the price we pay for the raw materials we purchase, our customers may be reluctant to place orders with us during times of uncertainty in the pricing of the Midwest Premium or Duty Paid/Unpaid Rotterdam. Such uncertainty with respect to the Midwest Premium has been a concern in recent months as changes in LME warehousing rules are being contemplated and Midwest Premiums have reached unprecedented levels.

For additional information on the key factors impacting our profitability, see “– Our Segments” and “– Critical Measures of Our Financial Performance,” below.

Our Segments

We report six operating segments based on the organizational structure that we use to evaluate performance, make decisions on resource allocations and perform business reviews of financial results. The Company’s operating segments (each of which is considered a reportable segment) are:

▪ Rolled Products North America (“RPNA”);

▪ Rolled Products Europe (“RPEU”);

▪ Rolled Products Asia Pacific (“RPAP”);

▪ Extrusions;

▪ Recycling and Specification Alloys North America (“RSAA”); and

21

▪ Recycling and Specification Alloys Europe (“RSEU”).

In addition to analyzing our consolidated operating performance based upon revenues and EBITDA (defined below in “– Critical Measures of our Financial Performance”), we measure the performance of our operating segments utilizing segment income and loss, segment Adjusted EBITDA and commercial margin. Segment income and loss includes gross profits, segment specific realized gains and losses on derivative financial instruments, segment specific other income and expense, segment specific selling, general and administrative (“SG&A”) expenses and an allocation of certain regional and global functional SG&A expenses. Segment income and loss excludes provisions for and benefits from income taxes, restructuring items, interest, depreciation and amortization, unrealized and certain realized gains and losses on derivative financial instruments, corporate general and administrative costs, start-up expenses, gains and losses on asset sales, currency exchange gains and losses on debt and certain other gains and losses. Intersegment sales and transfers are recorded at market value. Consolidated cash, net capitalized debt costs, deferred tax assets and assets related to our headquarters offices are not allocated to the segments.

Segment Adjusted EBITDA eliminates from segment income and loss the impact of recording inventory and other items at fair value through purchase accounting and metal price lag, which represents the financial impact of the timing difference between when aluminum prices included within our revenues and aluminum purchase prices included in our cost of sales are established, net of the impact of our hedging activities. Commercial margin represents revenues less the hedged cost of metal, or the raw material costs included in our cost of sales, net of the impact of our hedging activities and the effects of metal price lag. Segment Adjusted EBITDA and commercial margin are non-GAAP financial measures that have limitations as analytical tools and should be considered in addition to, and not in isolation, or as a substitute for, or as superior to, our measures of financial performance prepared in accordance with GAAP. Management uses segment Adjusted EBITDA in managing and assessing the performance of our business segments and overall business and believes that segment Adjusted EBITDA provides investors and other users of our financial information with additional useful information regarding the ongoing performance of the underlying business activities of our segments, as well as comparisons between our current results and results in prior periods. Management also uses commercial margin as a performance metric and believes that it provides useful information regarding the performance of our segments because it measures the price at which we sell our aluminum products above the hedged cost of the metal and the effects of metal price lag, thereby reflecting the value-added components of our commercial activities independent of aluminum prices which we cannot control.

For additional information regarding non-GAAP financial measures, see “– Non-GAAP Financial Measures.”

Rolled Products North America

Our RPNA segment consists of 11 manufacturing facilities located throughout the United States that produce rolled aluminum and coated products. Our RPNA segment produces rolled products for a wide variety of applications, including building and construction, distribution, transportation, and other uses in the consumer durables general industrial segments. Except for depot sales, which are for standard size products, substantially all of our rolled aluminum products in the U.S. are manufactured to specific customer requirements, using direct-chill, continuous ingot cast and pellet compaction technologies that allow us to use and offer a variety of alloys and products for a number of end-uses. Specifically, those products are integrated into, among other applications, building panels, truck trailers, gutters, appliances and recreational vehicles.

22

Segment metric tons invoiced, segment revenues, segment commercial margin, segment income and segment Adjusted EBITDA, along with the related reconciliations, are presented below:

	For the three months ended
	March 31, 2014			March 31, 2013			Change			% Change
Rolled Products North America	(dollars in millions, except per ton measures, volume in thousands of tons)
Segment metric tons invoiced	86.3			94.8			(8.5		)	(9.0	)%
Segment revenues	$	261.3		$	314.3		$	(53.0	)	(16.9	)%
Hedged cost of metal	(151.6		)	(197.7		)	46.1			(23.3	)
Favorable metal price lag	(3.7		)	(0.1		)	(3.6		)	*
Segment commercial margin	$	106.0		$	116.5		$	(10.5	)	(9.0	)%
Segment commercial margin per ton invoiced	$	1,228.4		$	1,228.7		$	(0.3	)	—	%
Segment income	$	26.9		$	23.5		$	3.4		14.5	%
Favorable metal price lag	(3.7		)	(0.1		)	(3.6		)	*
Segment Adjusted EBITDA (1)	$	23.2		$	23.4		$	(0.2	)	(0.9	)%
Segment Adjusted EBITDA per ton invoiced	$	269.3		$	246.3		$	23.0		9.3	%

* Result is not meaningful.

(1) Amounts may not foot as they represent the calculated totals based on actual amounts and not the rounded amounts presented in this table.

Rolled Products Europe

Our RPEU segment consists of two rolled aluminum products manufacturing facilities, located in Germany and Belgium, as well as an aluminum casting plant in Voerde, Germany that produces rolling slab and billets used by our RPEU and Extrusions segments. Our RPEU segment produces rolled products for a wide variety of technically sophisticated applications, including aerospace plate and sheet, brazing sheet (clad aluminum material used for, among other applications, vehicle radiators and HVAC systems), automotive sheet, and heat treated plate for engineering uses, as well as for other uses in the transportation, construction and packaging industries. Substantially all of our rolled aluminum products in Europe are manufactured to specific customer requirements using direct-chill ingot cast technologies that allow us to use and offer a variety of alloys and products for a number of technically demanding end-uses.

23

Segment metric tons invoiced, segment revenues, segment commercial margin, segment income and segment Adjusted EBITDA, along with the related reconciliations, are presented below:

	For the three months ended
	March 31, 2014			March 31, 2013			Change			% Change
Rolled Products Europe	(dollars in millions, except per ton measures, volume in thousands of tons)
Segment metric tons invoiced	86.6			89.9			(3.3		)	(3.7	)%
Segment revenues	$	354.8		$	369.2		$	(14.4	)	(3.9	)%
Hedged cost of metal	(195.8		)	(215.3		)	19.5			(9.1	)
Favorable metal price lag	(7.9		)	(4.8		)	(3.1		)	64.6
Segment commercial margin	$	151.1		$	149.1		$	2.0		1.3	%
Segment commercial margin per ton invoiced	$	1,744.4		$	1,657.9		$	86.5		5.2	%
Segment income	$	38.1		$	38.5		$	(0.4	)	(1.0	)%
Favorable metal price lag	(7.9		)	(4.8		)	(3.1		)	64.6
Segment Adjusted EBITDA (1)	$	30.3		$	33.6		$	(3.3	)	(9.8	)%
Segment Adjusted EBITDA per ton invoiced	$	349.3		$	374.1		$	(24.8	)	(6.6	)%

(1) Amounts may not foot as they represent the calculated totals based on actual amounts and not the rounded amounts presented in this table.

Rolled Products Asia Pacific

Our RPAP segment consists of the Zhenjiang rolling mill, a state-of-the-art aluminum rolling mill in China, that produces value-added plate products for the aerospace, engineering, distribution, building and construction, and other transportation industry segments worldwide. We designed the mill with the capability to expand into other high value-added products with a wide variety of technically sophisticated applications. Construction of the mill was substantially complete in 2012 and limited production began in 2013. The mill will continue to incur start-up expenses as we increase volume to full production and are qualified by our aerospace customers. These start-up expenses represent operating losses incurred while the mill is ramping up production, as well as expenses associated with obtaining certifications to produce aircraft plate. Substantially all of our rolled aluminum products in China will be manufactured to specific customer requirements using direct-chill ingot cast technologies that allow us to use and offer a variety of alloys and products for a number of technically demanding end-uses.

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Segment metric tons invoiced, segment revenues, segment commercial margin, segment loss and segment Adjusted EBITDA, along with the related reconciliations, are presented below:

	For the three months ended
	March 31, 2014			March 31, 2013			Change			% Change
Rolled Products Asia Pacific	(dollars in millions, except per ton measures, volume in thousands of tons)
Segment metric tons invoiced	2.3			0.1			2.2			*
Segment revenues	$	10.0		$	0.7		$	9.3		*
Hedged cost of metal	(10.0		)	(1.0		)	(9.0		)	*
Segment commercial margin	$	—		$	(0.3	)	$	0.3		*
Segment loss	$	—		$	(0.3	)	$	0.3		*
Segment Adjusted EBITDA	$	—		$	(0.3	)	$	0.3		*

* Result is not meaningful.

Segment loss and segment Adjusted EBITDA exclude start-up operating losses and expenses, as well as depreciation expense during the start-up period. Total start-up expenses were $6.5 million and $8.8 million for the three months endedMarch 31, 2014 and 2013, respectively. Total depreciation expense was $6.1 million and $1.2 million for the three months endedMarch 31, 2014 and 2013, respectively.

Extrusions

Our Extrusions segment produces medium and hard alloy extruded aluminum profiles targeted at demanding applications. Our extruded aluminum products are used for the aerospace, automotive, building and construction, electrical, mechanical engineering and other transportation (rail and shipbuilding) industries. The extruded products business includes five extrusion facilities located in Germany, Belgium and China. Industrial extrusions are made in all locations and the production of extrusion systems, including building systems, is concentrated in Vogt, Germany. Large extrusions and project business serving rail and other transportation sectors are concentrated in Bonn, Germany and Tianjin, China, with rods and hard alloys produced in Duffel, Belgium. The extrusion plant in Bonn operates one of the largest extrusion presses in Europe, which is mainly used for long and wide sections for railway, shipbuilding and other applications. In addition, we perform value-added fabrication to most of our extruded products.

25

Segment metric tons invoiced, segment revenues, segment commercial margin, segment income and segment Adjusted EBITDA, along with the related reconciliations, are presented below:

	For the three months ended
	March 31, 2014			March 31, 2013			Change			% Change
Extrusions	(dollars in millions, except per ton measures, volume in thousands of tons)
Segment metric tons invoiced	19.1			17.4			1.7			9.8	%
Segment revenues	$	93.3		$	89.0		$	4.3		4.8	%
Hedged cost of metal	(50.7		)	(49.9		)	(0.8		)	1.6
Favorable metal price lag	(0.5		)	(0.6		)	0.1			(16.7	)
Segment commercial margin	$	42.1		$	38.5		$	3.6		9.4	%
Segment commercial margin per ton invoiced	$	2,210.9		$	2,211.8		$	(0.9	)	—	%
Segment income	$	3.0		$	3.0		$	—		—	%
Favorable metal price lag	(0.5		)	(0.6		)	0.1			(16.7	)
Segment Adjusted EBITDA (1)	$	2.6		$	2.4		$	0.2		8.3	%
Segment Adjusted EBITDA per ton invoiced	$	133.9		$	137.1		$	(3.2	)	(2.3	)%

(1) Amounts may not foot as they represent the calculated totals based on actual amounts and not the rounded amounts presented in this table.

Recycling and Specification Alloys North America

Our RSAA segment includes aluminum melting, processing and recycling activities, as well as our specification alloy manufacturing business, located in North America. Our North American recycling business consists of 18 facilities located in the United States, Canada and Mexico. This segment’s recycling operations convert scrap and dross (a by-product of melting aluminum) and combine these materials with other alloying agents as needed to produce recycled aluminum generally for customers serving end-uses related to automotive, consumer packaging, steel, transportation and construction. The segment’s specification alloy operations combine various aluminum scrap types with hardeners and other additives to produce alloys with chemical compositions and specific properties, including increased strength, formability and wear resistance, as specified by customers for their particular applications. Our specification alloy operations typically deliver products in molten or ingot form to customers principally in the North American automotive industry. A significant percentage of this segment’s volume is sold through tolling arrangements, in which we convert customer-owned scrap and dross and return the recycled metal in ingot or molten form to our customers for a fee.

26

Segment metric tons invoiced, segment revenues, segment commercial margin, segment income and segment Adjusted EBITDA, along with the related reconciliations, are presented below (for the periods presented below, there were no reconciling items between segment income and segment Adjusted EBITDA):

	For the three months ended
	March 31, 2014			March 31, 2013			Change			% Change
Recycling and Specification Alloys North America	(dollars in millions, except per ton measures, volume in thousands of tons)
Segment buy and sell metric tons invoiced	93.3			95.6			(2.3		)	(2.4	)%
Segment toll metric tons invoiced	113.0			121.6			(8.6		)	(7.1	)
Segment metric tons invoiced	206.3			217.2			(10.9		)	(5.0	)%
Segment revenues	$	235.2		$	238.4		$	(3.2	)	(1.3	)%
Hedged cost of metal	(164.2		)	(168.6		)	4.4			(2.6	)
Segment commercial margin	$	71.0		$	69.8		$	1.2		1.7	%
Segment commercial margin per ton invoiced	$	344.2		$	321.5		$	22.7		7.1	%
Segment income	$	9.0		$	10.4		$	(1.4	)	(13.5	)%
Segment Adjusted EBITDA	9.0			10.4			(1.4		)	(13.5	)
Segment Adjusted EBITDA per ton invoiced	43.4			48.0			(4.6		)	(9.6	)

Recycling and Specification Alloys Europe

We are a leading European recycler of aluminum scrap and magnesium through our RSEU segment. Our recycling operations primarily convert aluminum scrap, dross and other alloying agents as needed and deliver the recycled metal and specification alloys in molten or ingot form to our customers. Our European recycling business consists of six facilities located in Germany, Norway and Wales. Our RSEU segment supplies specification alloys to the European automobile industry and serves other European aluminum industries from its plants. The segment’s specification alloy operations combine various aluminum scrap types with hardeners and other additives to produce alloys with chemical compositions and specific properties, including increased strength, formability and wear resistance, as specified by customers for their particular applications. The segment’s recycling operations typically service other aluminum producers and manufacturers, generally under tolling arrangements, where we convert customer-owned scrap and dross and return the recycled metal to our customers for a fee.

Segment metric tons invoiced, segment revenues, segment commercial margin, segment income and segment Adjusted EBITDA, along with the related reconciliations, are presented below (for the periods presented below, there were no reconciling items between segment income and segment Adjusted EBITDA):

	For the three months ended
	March 31, 2014			March 31, 2013			Change			% Change
Recycling and Specification Alloys Europe	(dollars in millions, except per ton measures, volume in thousands of tons)
Segment buy and sell metric tons invoiced	46.6			52.6			(6.0		)	(11.4	)%
Segment toll metric tons invoiced	49.1			42.2			6.9			16.4
Segment metric tons invoiced	95.7			94.8			0.9			0.9	%
Segment revenues	$	143.3		$	155.7		$	(12.4	)	(8.0	)%
Hedged cost of metal	(93.0		)	(108.8		)	15.8			(14.5	)
Segment commercial margin	$	50.3		$	46.9		$	3.4		7.2	%
Segment commercial margin per ton invoiced	$	525.9		$	495.0		$	30.9		6.2	%
Segment income	$	4.3		$	3.3		$	1.0		30.3	%
Segment Adjusted EBITDA	4.3			3.3			1.0			30.3
Segment Adjusted EBITDA per ton invoiced	45.3			34.3			11.0			32.1

27

The Aluminum Industry

The overall aluminum industry consists of primary aluminum producers, aluminum casters, extruders, sheet producers, aluminum recyclers and integrated companies that are present across multiple stages of the aluminum production chain. Primary aluminum is commodity traded and priced daily on both the LME and the Shanghai Futures Exchange ("SHFE"). Most primary aluminum producers are engaged in the mining of bauxite ore and refining of the ore into alumina. Alumina is then smelted to form aluminum ingots and billets. Ingots and billets are further processed by aluminum sheet manufacturers and extruders to form plate, sheet and foil and extrusions profiles, or they are sold to aluminum traders or to the commodity markets. Aluminum recyclers produce aluminum in molten or ingot form.

We participate in select segments of the aluminum fabricated products industry, including rolled and extruded products; we also recycle aluminum and produce aluminum specification alloys. We do not smelt aluminum, nor do we participate in other upstream activities, including mining bauxite or processing alumina. Our industry is cyclical and is affected by global economic conditions, industry competition and product development. Compared to several substitute metals, aluminum is lightweight, has a high strength-to-weight ratio and is resistant to corrosion. Also, aluminum is somewhat unique in that it can be recycled repeatedly without any material decline in performance or quality, which delivers both energy and capital investment savings relative to the cost of smelting primary aluminum.

Critical Measures of Our Financial Performance

The financial performance of our operating segments are the result of several factors, the most critical of which are as follows:

▪ volumes;

▪ commercial margins; and

▪ cash conversion costs.

The financial performance of our businesses is determined, in part, by the volume of metric tons invoiced and processed. Increased production volume will result in lower per unit costs, while higher invoiced volumes will result in additional revenue and associated margins. As a significant component of our revenue is derived from aluminum prices that we generally pass through to our customers, we measure the performance of our segments based upon a percentage of commercial margin and commercial margin per ton in addition to a percentage of revenue and revenue per ton. Commercial margin removes the hedged cost of the metal we purchase and metal price lag (defined below) from our revenue. Commercial margins capture the value-added components of our business and are impacted by factors, including rolling margins (the fee we charge to convert aluminum in our rolled products and extrusions businesses), changes in local pricing premiums, toll fees, product yields from our manufacturing process, the value-added mix of products sold and scrap spreads, which management are able to influence more readily than aluminum prices and, therefore, provide another basis upon which certain elements of our segments’ performance can be measured.

Although our conversion fee-based pricing model is designed to reduce the impact of changing primary aluminum prices, we remain susceptible to the impact of these changes and changes in premium differentials on our operating results. This exposure exists because we value our inventories under the first-in, first-out method, which leads to the purchase price of inventory typically impacting our cost of sales in periods subsequent to when the related sales price impacts our revenues. This lag will, generally, increase our earnings in times of rising primary aluminum prices and decrease our earnings in times of declining primary aluminum prices.

Our exposure to changing primary aluminum prices and premium differentials, both in terms of liquidity and operating results, is greater for fixed price sales contracts and other sales contracts where aluminum price changes are not able to be passed along to our customers. In addition, our rolled products and extrusions operations require that a significant amount of inventory be kept on hand to meet future production requirements. This base level of inventory is also susceptible to changing primary aluminum prices and premium differentials to the extent it is not committed to fixed price sales orders.

In order to reduce these exposures, we focus on reducing working capital and offsetting future physical purchases and sales. We also utilize various derivative financial instruments designed to reduce the impact of changing primary aluminum prices on these net physical purchases and sales and on inventory for which a fixed sale price has not yet been determined. Our risk management practices reduce but do not eliminate our exposure to changing primary aluminum prices and cannot reduce our exposure to changing premium differentials. While we have limited our exposure to unfavorable primary aluminum price

28

changes, we have also limited our ability to benefit from favorable price changes. Further, our counterparties may require that we post cash collateral if the fair value of our derivative liabilities exceed the amount of credit granted by each counterparty, thereby reducing our liquidity. At March 31, 2014 and December 31, 2013, no cash collateral was posted.

We refer to the difference between the price of primary aluminum included in our revenues and the price of aluminum impacting our cost of sales, net of realized gains and losses from our hedging activities, as “metal price lag.” Metal price lag will, generally, increase our earnings and net income and loss attributable to Aleris Corporation before interest, taxes, depreciation and amortization (“EBITDA”) in times of rising primary aluminum prices and decrease our earnings and EBITDA in times of declining primary aluminum prices. We seek to reduce this impact through the use of derivative financial instruments. We exclude metal price lag from our determination of Adjusted EBITDA because it is not an indicator of the performance of our underlying operations. We exclude the impact of metal price lag from our measurement of commercial margin to more closely align the metal prices inherent in our sales prices to those included in our cost of sales. The impact of metal price lag is not significant in our recycling and specification alloy operations as we are able to match physical purchases with physical sales, maintain low levels of inventories and conduct a substantial amount of our business on a toll basis, as discussed below.

In addition to rolling margins and product mix, commercial margins of our rolled products business are impacted by the differences between changes in the prices of primary and scrap aluminum, as well as the availability of scrap aluminum, particularly in our RPNA segment where aluminum scrap is used more frequently than in our European operations. As we price our product using the prevailing price of primary aluminum but purchase large amounts of scrap aluminum to produce our products, we benefit when primary aluminum price increases exceed scrap price increases. Conversely, when scrap price increases exceed primary aluminum price increases, our commercial margin will be negatively impacted. The difference between the price of primary aluminum and scrap prices is referred to as the “scrap spread” and is impacted by the effectiveness of our scrap purchasing activities, the supply of scrap available and movements in the terminal commodity markets, such as the LME price of aluminum.

The commercial margins of our recycling and specification alloy operations are impacted by the fees we charge our tolling customers to process their metal and by “metal spreads” which represent the difference between the purchase price of the scrap aluminum we buy and our selling prices. While an aluminum commodity market for scrap exists in Europe, there is no comparable market that is widely-utilized commercially in North America. As a result, scrap prices in North America tend to be determined regionally and are significantly impacted by supply and demand. While scrap prices may trend in a similar direction as primary aluminum prices, the extent of price movements is not highly correlated and can cause unpredictable movements in metal spreads.

Our operations are labor intensive and also require a significant amount of energy (primarily natural gas and electricity) be consumed to melt scrap or primary aluminum and to re-heat and roll aluminum slabs into rolled products. As a result, we incur a significant amount of fixed and variable labor and overhead costs which we refer to as conversion costs. Conversion costs excluding depreciation expense, or cash conversion costs, on a per ton basis are a critical measure of the effectiveness of our operations.

Revenues and margin percentages for our recycling and specification alloy operations are subject to fluctuations based upon the percentage of customer-owned metric tons tolled or processed. Increased processing under such tolling agreements results in lower revenues and generally also results in higher gross profit margins and net income margins. Tolling agreements subject us to less risk of changing metal prices and reduce our working capital requirements. Although tolling agreements are beneficial to us in these ways, the percentage of our metric tons able to be processed under these agreements is limited by the amount of metal our customers own and their willingness to enter into such arrangements.

Seasonality and Management Outlook

Certain of our rolled and extruded products and recycling and specification alloy end-uses are seasonal. Demand in the rolled and extruded products business is generally stronger in the spring and summer seasons due to higher demand in the building and construction industry. Our recycling and specification alloy business experiences greater demand in the spring season due to stronger demand from the automotive industry and demand from customers serving the beverage can industry. Such factors typically result in higher operating income in our second and third quarters, followed by our first and fourth quarters.

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We estimate second quarter 2014 segment income and Adjusted EBITDA will be sequentially higher than the first quarter of 2014 and in line with the second quarter of 2013. Factors influencing anticipated second quarter 2014 performance include:

▪ typical seasonality and improved building and construction volumes;

▪ demand for auto body sheet is expected to continue to increase which should drive further profitability and partially offset the impact of lower aerospace volume;

▪ improved metal spreads in specification alloys; and

▪ low LME prices will keep pressure on scrap spreads and competitive imports are negatively impacting margins in the second quarter of 2014.

Capital expenditures during the second quarter of 2014 are expected to be lower than the second quarter of 2013 and consistent with first quarter of 2014 as our capital spending has returned to more normalized levels. We currently estimate capital spending of $165 million in 2014.

Results of Operations

Three Months Ended March 31, 2014 Compared to the Three Months Ended March 31, 2013

Revenues for the three months endedMarch 31, 2014 and 2013 were approximately $1.1 billion. Lower aluminum prices and rolling margins more than offset higher regional Midwest Premium differentials and decreased revenues by approximately $63.0 million. In addition, a 3% decrease in volume resulted in a decrease in revenues of approximately $35.0 million. The decrease in volume was primarily driven by lower demand for rolled products in North America as harsh winter weather conditions throughout much of the region delayed the start of the building and construction season and the negative impact that the higher Midwest Premium differential had on customer buying patterns. These decreases were partially offset by a 43% increase in demand for auto body sheet in Europe. A weaker U.S. dollar during 2014 increased revenues by approximately $18.0 million and revenues from our RPAP segment increased $9.3 million.

Gross profit for the three months endedMarch 31, 2014 was $75.1 million compared to $89.0 million for the three months endedMarch 31, 2013. Start-up losses associated with the Zhenjiang rolling mill and higher depreciation expense reduced gross profit by approximately $2.4 million and $5.2 million, respectively. The decrease in volume further reduced gross profit by approximately $4.0 million. Metal price lag, excluding realized gains and losses on metal derivative financial instruments, negatively impacted gross profit for the three months endedMarch 31, 2014 when compared to the three months endedMarch 31, 2013 by an estimated $2.8 million. Higher inflation in employee, energy and freight costs decreased gross profits by approximately $10.0 million, but was partially offset by productivity related savings of approximately $5.0 million generated by our Aleris Operating System (“AOS”) initiatives. Gross profit was favorably impacted in the first quarter of 2014 by the rising Midwest Premium and improved specification alloy metal spreads, which more than offset tighter rolled product scrap spreads in North America and higher slab purchase prices in Europe.

SG&A expenses for the three months endedMarch 31, 2014 of $61.9 million were consistent with the prior year period. Increases in stock-based compensation, employee costs and depreciation expense were offset by lower SG&A-related start-up expenses associated with the Zhenjiang rolling mill.

During the three months endedMarch 31, 2014 and 2013, we recorded realized (gains) losses on derivative financial instruments of $(9.8) million and $1.1 million, respectively, and unrealized losses (gains) of $9.3 million and $(10.3) million, respectively. Generally, our realized gains or losses represent the cash paid or received upon settlement of our derivative financial instruments. Unrealized gains or losses reflect the change in the fair value of derivative financial instruments from the later of the end of the prior period or our entering into the derivative instrument as well as the reversal of previously recorded unrealized gains or losses for derivatives that settled during the period.

Further impacting our year-to-date results was a $5.3 million increase in interest expense due to decreased capitalized interest when compared to the prior year period. Other income decreased $1.5 million when compared to the prior year period primarily due to an increase in currency exchange losses, partially offset by insurance proceeds received in 2014 related to a fire at our Richmond, Virginia rolling mill that occurred in 2013.

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The following table presents key financial and operating data on a consolidated basis for the three months endedMarch 31, 2014 and 2013:

	For the three months ended
	March 31, 2014			March 31, 2013			Change			% Change
	(dollars in millions)
Revenues	$	1,054.2		$	1,110.1		$	(55.9	)	(5	)%
Cost of sales	979.1			1,021.1			(42.0		)	(4	)
Gross profit	75.1			89.0			(13.9		)	(16	)
Gross profit as a percentage of revenues	7.1		%	8.0		%	(0.9		)%	(11	)
Selling, general and administrative expenses	61.9			61.6			0.3			—
Restructuring charges	0.5			0.9			(0.4		)	*
Gains on derivative financial instruments	(0.5		)	(9.1		)	8.6			*
Other operating expense (income), net	0.3			(1.1		)	1.4			*
Operating income	12.9			36.7			(23.8		)	(65	)
Interest expense, net	26.3			21.0			5.3			25
Other income, net	(0.4		)	(1.9		)	1.5			(79	)
(Loss) income before income taxes	(13.0		)	17.6			(30.6		)	(174	)
Provision for income taxes	4.3			6.3			(2.0		)	(32	)
Net (loss) income	(17.3		)	11.3			(28.6		)	*
Net income attributable to noncontrolling interest	0.3			0.4			(0.1		)	*
Net (loss) income attributable to Aleris Corporation	$	(17.6	)	$	10.9		$	(28.5	)	*
Total segment income	$	81.3		$	78.4		$	2.9		4	%
Depreciation and amortization	(33.2		)	(27.2		)	(6.0		)	22
Corporate general and administrative expenses, excluding depreciation, amortization, start-up expenses and other expenses	(15.0		)	(11.3		)	(3.7		)	33
Interest expense, net	(26.3		)	(21.0		)	(5.3		)	25
Unallocated (losses) gains on derivative financial instruments	(9.3		)	10.2			(19.5		)	(191	)
Unallocated currency exchange losses	(1.5		)	—			(1.5		)	*
Restructuring charges	(0.5		)	(0.9		)	0.4			*
Start-up expenses	(8.4		)	(11.4		)	3.0			*
Other expense, net	(0.1		)	0.8			(0.9		)	(113	)
(Loss) income before income taxes	$	(13.0	)	$	17.6		$	(30.6	)	(174	)%

* Result is not meaningful.

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Revenues and Metric Tons Invoiced

The following tables present revenues and metric tons invoiced by segment:

	For the three months ended
	March 31, 2014			March 31, 2013			Change			% Change
Revenues:	(dollars in millions, metric tons in thousands)
RPNA	$	261.3		$	314.3		$	(53.0	)	(17	)%
RPEU	354.8			369.2			(14.4		)	(4	)
RPAP	10.0			0.7			9.3			*
Extrusions	93.3			89.0			4.3			5
RSAA	235.2			238.4			(3.2		)	(1	)
RSEU	143.3			155.7			(12.4		)	(8	)
Intersegment revenues	(43.7		)	(57.2		)	13.5			*
Consolidated revenues	$	1,054.2		$	1,110.1		$	(55.9	)	(5	)%
Metric tons invoiced:
RPNA	86.3			94.8			(8.5		)	(9	)%
RPEU	86.6			89.9			(3.3		)	(4	)
RPAP	2.3			0.1			2.2			*
Extrusions	19.1			17.4			1.7			10
RSAA	206.3			217.2			(10.9		)	(5	)
RSEU	95.7			94.8			0.9			1
Intersegment shipments	(16.6		)	(19.3		)	2.7			*
Total metric tons invoiced	479.7			494.9			(15.2		)	(3	)%

* Result is not meaningful.

The following table presents the estimated impact of key factors that resulted in the 5% decrease in our consolidated first quarter revenues from 2013 to 2014:

	RPNA					RPEU					Extrusions					RSAA					RSEU					Consolidated
	$			%		$			%		$			%		$			%		$			%		$			%
LME / aluminum pass-through	$	(11.0	)	(4	)%	$	(42.0	)	(12	)%	$	(7.0	)	(8	)%	$	(2.0	)	(1	)%	$	(7.0	)	(4	)%	$	(69.0	)	(6	)%
Commercial price	—			—		2.0			1		—			—		3.0			1		1.0			1		6.0			—
Volume/Mix	(42.0		)	(13	)	15.0			4		8.0			9		(4.0		)	(1	)	(12.0		)	(8	)	(35.0		)	(3	)
Currency	—			—		10.0			3		3.0			4		—			—		5.0			3		18.0			2
Other	—			*		0.6			*		0.3			*		(0.2		)	*		0.6			*		1.3			—
Total	$	(53.0	)	(17	)%	$	(14.4	)	(4	)%	$	4.3		5	%	$	(3.2	)	(1	)%	$	(12.4	)	(8	)%	$	(78.7	)	(7	)%
RPAP and intersegment revenues																										22.8			2
Total																										$	(55.9	)	(5	)%

* Result is not meaningful.

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Rolled Products North America Revenues

RPNA revenues for the three months endedMarch 31, 2014 decreased $53.0 million compared to the three months endedMarch 31, 2013. This decrease was primarily due to the following:

▪ a 9% decrease in shipments and an unfavorable change in the mix of products sold decreased revenues by approximately $42.0 million. The decrease in volume was primarily due to an 18% and 11% reduction in building and construction and distribution volume, respectively, caused by adverse customer reaction to the high Midwest Premium and harsh winter weather in North America in 2014; and

▪ lower LME aluminum prices, partially offset by the higher Midwest Premium, which reduced the average price of aluminum included in our invoiced prices, accounted for approximately $11.0 million of the decrease in revenues.

Rolled Products Europe Revenues

RPEU revenues for the three months endedMarch 31, 2014 decreased $14.4 million compared to the three months endedMarch 31, 2013. This decrease was due to lower LME aluminum prices, which reduced the average price of aluminum included in our invoiced prices and reduced revenues by approximately $42.0 million.

This decrease was partially offset by the following:

▪ an increase of approximately $15.0 million from an improved mix of products sold which more than offset a 4% decrease in volume. Volumes decreased as a result of reduced shipments of semi-finished plate and sheet to our Zhenjiang rolling mill and shipments from our Voerde, Germany cast house. Excluding these shipments, RPEU volume increased 5% as automotive and heat exchanger demand increased 43% and 11%, respectively, more than offsetting a 7% reduction in aerospace shipments and lower regional plate and sheet demand;

▪ a weaker U.S. dollar, which increased revenues by approximately $10.0 million; and

▪ improved pricing for regional plate and sheet products.

Extrusions Revenues

Revenues from our Extrusions segment for the three months endedMarch 31, 2014 increased $4.3 million compared to the three months endedMarch 31, 2013. This increase was primarily due to a 10% increase in shipments, which increased revenues by approximately $8.0 million, and a weaker U.S. dollar, which increased revenues by approximately $3.0 million. These increases were partially offset by lower LME aluminum prices, which reduced the average price of aluminum included in our invoiced prices and reduced revenues by approximately $7.0 million.

Recycling and Specification Alloys North America Revenues

RSAA revenues for the three months endedMarch 31, 2014 decreased $3.2 million compared to the three months endedMarch 31, 2013. This decrease was primarily due to a 5% reduction in volume resulting from the harsh winter weather and the idling of our Saginaw, Michigan facility in the fourth quarter of 2013, partially offset by improved automotive demand.

Recycling and Specification Alloys Europe Revenues

RSEU revenues for the three months endedMarch 31, 2014 decreased $12.4 million as compared to the three months endedMarch 31, 2013. This decrease was primarily due to the following:

▪ a decreased percentage of buy/sell volume partially offset by a 1% increase in overall volume, resulted in decreased revenues of approximately $12.0 million. The increase in volume was primarily driven by stronger automotive demand, which more than offset a decline in demand from the packaging industry; and

▪ lower selling prices for our products resulting from lower aluminum and specification alloy prices, which decreased revenues by approximately $6.0 million.

These decreases were partially offset by a weaker U.S. dollar, which increased revenues by approximately $5.0 million.

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Segment Income (Loss) and Gross Profit

For the three months endedMarch 31, 2014 and 2013, segment income or loss and our reconciliation of segment income to gross profit are presented below:

	For the three months ended
	March 31, 2014			March 31, 2013			Change			% Change
Segment income (loss):	(in millions)
RPNA	$	26.9		$	23.5		$	3.4		14	%
RPEU	38.1			38.5			(0.4		)	(1	)
RPAP	—			(0.3		)	0.3			*
Extrusions	3.0			3.0			—			—
RSAA	9.0			10.4			(1.4		)	(13	)
RSEU	4.3			3.3			1.0			30
Total segment income	81.3			78.4			2.9			4
Items excluded from segment income and included in gross profit:
Depreciation	(28.4		)	(23.2		)	(5.2		)	22
Start-up expenses	(6.8		)	(4.4		)	(2.4		)	*
Items included in segment income and excluded from gross profit:
Segment selling, general and administrative expenses	39.5			39.7			(0.2		)	(1	)
Realized (gains) losses on derivative financial instruments	(9.8		)	1.1			(10.9		)	*
Other income, net	(0.7		)	(2.6		)	1.9			(73	)
Gross profit	$	75.1		$	89.0		$	(13.9	)	(16	)%

* Result is not meaningful.

Rolled Products North America Segment Income

RPNA segment income for the three months endedMarch 31, 2014 increased by $3.4 million compared to the three months endedMarch 31, 2013. This increase was primarily due to the following:

▪ lower priced inventory was sold in a rising Midwest Premium environment, while scrap spreads tightened as a result of lower LME prices. The net result of these factors increased segment income by approximately $3.0 million; and

▪ favorable metal price lag in 2014 compared to the prior year period, which increased segment income by an estimated $3.6 million.

These increases were partially offset by a 9% reduction in volume and an unfavorable change in the mix of products sold, which resulted in a reduction of segment income of approximately $4.0 million. In addition, higher costs associated with inflation in employee, energy and paint costs were partially offset by productivity related savings primarily related to lower scrap processing costs and improved casting throughput.

Rolled Products Europe Segment Income

RPEU segment income for the three months endedMarch 31, 2014 decreased by $0.4 million compared to the three months endedMarch 31, 2013. This decrease was primarily due to the following:

▪ higher costs for purchased aluminum slabs, which decreased segment income by approximately $3.0 million;

▪ unfavorable currency movements, which decreased segment income by approximately $3.0 million. A weaker U.S. dollar during the first quarter of 2014 reduced margins on the segment’s U.S. dollar-based aerospace and heat exchanger business and decreased the value of the segment's dollar-based working capital. This more than offset the positive impact on the translation of the segment’s results; and

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▪ higher costs associated with inflation in employee and other conversion costs were partially offset by productivity related savings and lower SG&A costs.

These decreases were partially offset by the following:

▪ an improved mix of products sold, resulting from a 43% increase in auto body sheet demand which more than offset a 7% decrease in aerospace demand, which increased segment income by approximately $1.0 million;

▪ stronger European economic activity, which led to the stabilization of regional plate and sheet pricing in the second half of 2013, and increased segment income by approximately $2.0 million; and

▪ favorable metal price lag in 2014 compared to the prior year period, which increased segment income by an estimated $3.1 million.

Extrusions Segment Income

Extrusions segment income for the three months endedMarch 31, 2014 was consistent with the prior year period as a 10% increase in shipments was driven by improved automotive volumes. Productivity-related savings offset inflation in employee and other cash conversion costs.

Recycling and Specification Alloys North America Segment Income

RSAA segment income for the three months endedMarch 31, 2014 decreased by $1.4 million compared to the prior year period. The decrease was primarily due to the following:

▪ lower volumes resulting from the harsh winter weather and idling of production at our Saginaw, Michigan facility in the fourth quarter of 2013 reduced segment income by approximately $1.0 million; and

▪ inflation of $3.0 million was not offset by productivity-related savings as the region's harsh winter weather resulted in higher natural gas commodity and delivery prices and also led to operational inefficiencies and lost shipping days in a number of Midwest states.

These decreases were partially offset by continued improvement in metal spreads which increased segment income by approximately $3.0 million.

Recycling and Specification Alloys Europe Segment Income

RSEU segment income for the three months endedMarch 31, 2014 increased by $1.0 million compared to the prior year period. Slightly higher volumes and improved metal spreads increased segment income by approximately $1.0 million, while productivity related savings were offset by inflation in employee costs.

Selling, General and Administrative Expenses

Consolidated SG&A expenses during the three months endedMarch 31, 2014 were consistent with the prior year period. The primary offsetting factors were a $3.2 million reduction in SG&A related start-up expenses associated with the Zhenjiang rolling mill, a $1.6 million increase in stock-based compensation expense associated with stock options and restricted stock units granted in January 2014, a $0.7 million increase in depreciation expense and a $0.6 million increase in business development costs, primarily associated with the acquisition of Nichols.

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Gains and Losses on Derivative Financial Instruments

During the three months endedMarch 31, 2014 and 2013, we recorded the following realized (gains) losses and unrealized losses (gains) on derivative financial instruments:

	For the three months ended
	March 31, 2014			March 31, 2013
Realized (gains) losses	(in millions)
Metal	$	(8.3	)	$	0.9
Natural gas	(1.5		)	0.2
Unrealized losses (gains)
Metal	9.5			(8.8		)
Natural gas	(0.2		)	(1.4		)
Total gains	$	(0.5	)	$	(9.1	)

During the three months endedMarch 31, 2014, we estimate that metal price lag favorably impacted gross profit by approximately $3.7 million while we experienced metal hedge gains of $8.3 million. The resulting $12.0 million of net metal price lag improved our consolidated operating results for the three months endedMarch 31, 2014. During the three months endedMarch 31, 2013, we estimate that metal price lag favorably impacted gross profit by approximately $6.5 million while we experienced metal hedge losses of $0.9 million. The resulting $5.6 million of net metal price lag improved our consolidated operating results for the three months endedMarch 31, 2013.

Interest Expense, net

Interest expense, net for the three months endedMarch 31, 2014 increased $5.3 million from the comparable period of 2013. The increase in interest expense is due to decreased capitalized interest when compared to the prior year period as the completion of our major capital investments resulted in less interest being capitalized.

Provision for Income Taxes

Our effective tax rates were (33.1)% and 36.2% for the three months endedMarch 31, 2014 and 2013, respectively. The effective tax rates for the three months endedMarch 31, 2014 and 2013 differed from the federal statutory rate applied to income and losses before income taxes primarily as a result of the mix of income, losses and tax rates between tax jurisdictions and valuation allowances.

We have valuation allowances recorded to reduce certain deferred tax assets to amounts that are more likely than not to be realized. The valuation allowances relate to the potential inability to realize our deferred tax assets associated with amortization and net operating loss carryforwards in the U.S. and depreciations and net operating loss carryforwards in non-U.S. jurisdictions. We intend to maintain our valuation allowances until sufficient positive evidence exists (such as cumulative positive earnings and estimated future taxable income) to support their reversal.

As of March 31, 2014, we had $2.8 million of unrecognized tax benefits. The majority of the gross unrecognized tax benefits, if recognized, would affect the annual effective tax rate. We recognize interest and penalties related to uncertain tax positions within the “Provision for income taxes” in the Consolidated Statements of Comprehensive Loss. As of March 31, 2014, we had approximately $0.2 million of accrued interest related to uncertain tax positions.

The 2009 through 2013 tax years remain open to examination.

Liquidity and Capital Resources

Based on our current and anticipated levels of operations and the condition in our markets and industry, we believe that our cash on hand, cash flows from operations and availability under the ABL Facility and China Loan Facility (each as defined below) will enable us to meet our working capital, capital expenditures, debt service and other funding requirements for the foreseeable future. However, our ability to fund our working capital needs, debt payments and other obligations, and to comply with the financial covenants under our indebtedness, including borrowing base limitations under the ABL Facility, depends on

36

our future operating performance and cash flows and many factors outside of our control, including the costs of raw materials, the state of the overall industry and financial and economic conditions and other factors, including those described under “Risk Factors” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission, as updated in our quarterly and periodic filings. Any future acquisitions, joint ventures or other similar transactions will likely require additional capital and there can be no assurance that any such capital will be available to us on acceptable terms, if at all.

The following discussion provides a summary description of the significant components of our sources of liquidity and long-term debt:

Cash Flows

The following table summarizes our net cash provided (used) by operating, investing and financing activities for the three months endedMarch 31, 2014 and 2013:

	For the three months ended
	March 31, 2014			March 31, 2013
Net cash provided (used) by:	(in millions)
Operating activities	$	27.8		$	(55.6	)
Investing activities	(47.0		)	(95.3		)
Financing activities	10.4			(1.5		)

Cash Flows from Operating Activities

Cash flows provided by operating activities were $27.8 million for the three months endedMarch 31, 2014, which resulted from $33.2 million of cash from earnings, partially offset by a $5.4 million increase in net operating assets. The significant components of the change in net operating assets included increases of $83.5 million, $11.1 million and $90.3 million in accounts receivable, inventories and accounts payable, respectively, as a result of increased seasonal sales volume across most segments when compared to December 2013. Our average days sales outstanding (“DSO”) at March 31, 2014 remained consistent with the DSO at December 31, 2013. However, revenues in the month of March 2014 were approximately $96.5 million higher than the month of December 2013, leading to an increase in accounts receivable. Our average days inventory outstanding ("DIO") and average days payables outstanding (“DPO”) at March 31, 2014 remained consistent with the DIO and DPO at December 31, 2013. The increase in accounts payables resulted from the timing of purchases in the fourth quarter of 2013.

Cash flows used by operating activities were $55.6 million for the three months endedMarch 31, 2013, which resulted from an $87.6 million increase in net operating assets, partially offset by $32.0 million of cash from earnings. The significant components of the change in net operating assets included increases of $105.5 million, $14.1 million and $52.2 million in accounts receivable, inventories and accounts payable, respectively, as a result of increased seasonal sales volume across most segments when compared to December 2012. Our DSO at March 31, 2013 remained consistent with the DSO at December 31, 2012, however, revenues in the month of March 2013 were approximately $115.0 million higher than the month of December 2012, leading to an increase in accounts receivable. The commencement of operations at the Zhenjiang rolling mill during the quarter led to increased inventory levels and drove a $14.1 million use of operating cash. Our DPO at March 31, 2013 remained consistent with the DPO at December 31, 2012. The increase in payables resulted from increased average inventory levels in connection with the additional sales volume during the first quarter of 2013.

Cash Flows from Investing Activities

Cash flows used by investing activities were $47.0 million for the three months endedMarch 31, 2014 and included $47.5 million of capital expenditures.

Cash flows used by investing activities were $95.3 million for the three months endedMarch 31, 2013 and included $96.9 million of capital expenditures, primarily on the Zhenjiang rolling mill and the wide auto body sheet expansion project in

Duffel, Belgium.

Cash Flows from Financing Activities

Cash flows provided by financing activities for the three months endedMarch 31, 2014 included $10.0 million of net proceeds from the ABL facility (as defined below).

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Cash flows used by financing activities were $1.5 million for the three months endedMarch 31, 2013.

Acquisition of Nichols Aluminum, LLC

On April 1, 2014, we acquired Nichols, a wholly owned subsidiary of Quanex Building Products Corporation, and a producer of aluminum sheet for the transportation, building and construction, machinery and equipment, consumer durables and electrical industries in North America for $110.0 million. The acquisition includes casting and finishing operations at two facilities in Davenport, Iowa, as well as finishing operations in Decatur, Alabama, and Lincolnshire, Illinois.

The acquisition will be accounted for as a business combination, with the purchase price being allocated on a preliminary basis using information available in the second quarter of 2014. The operating results of Nichols will be reported within our RPNA segment from the date of acquisition.

ABL Facility

The amended and restated ABL Facility is a $600.0 million revolving credit facility which permits multi-currency borrowings up to $600.0 million by our U.S. subsidiaries, up to $240.0 million by Aleris Switzerland GmbH (a wholly owned Swiss subsidiary) and up to $15.0 million by Aleris Specification Alloy Products Canada Company (a wholly owned Canadian subsidiary) (the “ABL Facility”). The availability of funds to the borrowers located in each jurisdiction is subject to a borrowing base for that jurisdiction and the jurisdictions in which certain subsidiaries of such borrowers are located. The ABL Facility provides for the issuance of up to $75.0 million of letters of credit as well as borrowings on same-day notice, referred to as swingline loans. As of March 31, 2014, we estimate that the borrowing base would have supported borrowings of $495.7 million. As of March 31, 2014, Aleris International had $10.0 million outstanding under the ABL Facility. After giving effect to the outstanding borrowings and outstanding letters of credit of $40.5 million, Aleris International had $445.2 million available for borrowing as of March 31, 2014.

Borrowings under the ABL Facility bear interest at a rate equal to the following, plus an applicable margin ranging from 0.75% to 2.50%:

▪ in the case of borrowings in U.S. dollars, a LIBOR rate or a base rate determined by reference to the higher of (1) Bank of America’s prime lending rate, (2) the overnight federal funds rate plus 0.5% or (3) a eurodollar rate determined by Bank of America plus 1.0%;

▪ in the case of borrowings in euros, a euro LIBOR rate determined by Bank of America; and

▪ in the case of borrowings in Canadian dollars, a Canadian prime rate.

There is no scheduled amortization under the ABL Facility. The principal amount outstanding will be due and payable in full at maturity, on June 29, 2016, unless extended pursuant to the credit agreement.

The ABL Facility is secured, subject to certain exceptions, by a first-priority security interest in substantially all of Aleris International’s current assets and related intangible assets located in the U.S., substantially all of the current assets and related intangible assets of substantially all of our wholly owned domestic subsidiaries, substantially all of the current assets and related intangible assets of the borrower located in Canada and substantially all of the current assets (other than inventory located outside of the United Kingdom) and related intangibles of Aleris Recycling (Swansea) Ltd., and Aleris Switzerland GmbH and certain of its subsidiaries. The borrowers’ obligations under the ABL Facility are guaranteed by certain of our existing and future direct and indirect subsidiaries.

The credit agreement governing the ABL Facility contains a number of covenants that, subject to certain exceptions, impose restrictions on Aleris International and certain of our subsidiaries, including without limitation restrictions on its ability to incur additional debt, pay dividends and make certain payments, create liens, merge, consolidate or sell assets, or enter into affiliate transactions, among other things.

Although the credit agreement governing the ABL Facility generally does not require us to comply with any financial ratio maintenance covenants, if the amount available under the ABL Facility is less than the greater of (x) $45.0 million or (y) 12.5% of the lesser of (i) the total commitments or (ii) the borrowing base under the ABL Facility at any time, a minimum fixed charge coverage ratio (as defined in the credit agreement) of at least 1.0 to 1.0 will apply. The credit agreement also contains certain customary affirmative covenants and events of default. Aleris International was in compliance with all of the covenants set forth in the credit agreement as of March 31, 2014.

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Senior Notes

On February 9, 2011, Aleris International issued $500.0 million aggregate original principal amount of 7⁵/8% Senior Notes due 2018, and on October 14, 2011, Aleris International exchanged the $500.0 million aggregate original principal amount of 7⁵/8% Senior Notes due 2018 for its new $500.0 million aggregate original principal amount of 7⁵/8% Senior Notes due 2018 that have been registered under the Securities Act of 1933, as amended (the “7⁵/8% Senior Notes”). The 7⁵/8% Senior Notes mature on February 15, 2018.

On October 23, 2012, Aleris International issued $500.0 million aggregate original principal amount of 7⁷/8% Senior Notes due 2020, and on January 31, 2013, Aleris International exchanged the $500.0 million aggregate original principal amount of 7⁷/8% Senior Notes due 2020 for $500.0 million of its new 7⁷/8% Senior Notes due 2020 that have been registered under the Securities Act of 1933, as amended (the “7⁷/8% Senior Notes” and, together with the 7⁵/8% Senior Notes, the “Senior Notes”). The 7⁷/8% Senior Notes mature on November 1, 2020.

The Senior Notes are unconditionally guaranteed on a senior unsecured basis by us and each of our subsidiaries that guarantees Aleris International’s obligations under the ABL Facility. The indentures governing the Senior Notes contain a number of customary covenants that, subject to certain exceptions, impose restrictions on Aleris International and certain of our subsidiaries, including without limitation restrictions on its ability to incur additional debt, pay dividends and make certain payments, create liens, merge, consolidate or sell assets, or enter into affiliate transactions, among other things.

Exchangeable Notes

In connection with Aleris International’s emergence from bankruptcy, it issued $45.0 million aggregate principal amount of 6% senior subordinated exchangeable notes (the “Exchangeable Notes”). The Exchangeable Notes are the unsecured, senior subordinated obligations of Aleris International and are scheduled to mature on June 1, 2020. Since June 1, 2013, the Exchangeable Notes are exchangeable (at each holder’s option) for our common stock at a rate equivalent to 59.63 shares of our common stock per $1,000 principal amount of the Exchangeable Notes (after adjustment for the payments of three dividends in 2011 and one dividend in 2013). The Exchangeable Notes may currently be redeemed at Aleris International’s option.

China Loan Facility

Our wholly-owned subsidiary, Aleris Aluminum (Zhenjiang) Co., Ltd. ("Aleris Zhenjiang") maintains a loan agreement comprised of non-recourse multi-currency secured term loan facilities and a revolving facility (collectively, the “China Loan Facility”). The China Loan Facility consists of a $30.6 million U.S. dollar term loan facility, an RMB 993.5 million (or equivalent to approximately $161.2 million) term loan facility (collectively referred to as the “Zhenjiang Term Loans”) and an RMB 410.0 million (or equivalent to approximately $66.5 million) revolving facility that provides Aleris Zhenjiang with a working capital line of credit (referred to as the “Zhenjiang Revolver”). In March 2013, the Zhenjiang Revolver was amended to, among other things, increase the borrowing capacity from RMB 232.8 million (or equivalent to $37.8 million) to RMB 410.0 million (or equivalent to $66.5 million). The interest rate on the term U.S. dollar facility is six month U.S. dollar LIBOR plus 5.0% and the interest rate on the term RMB facility and the Zhenjiang Revolver is 110% of the base rate applicable to any loan denominated in RMB of the same tenor, as announced by the People’s Bank of China. As of December 31, 2013, the full amount of the Zhenjiang Term Loans was drawn. The final maturity date for all borrowings under the China Loan Facility is May 18, 2021.

The China Loan Facility contains certain customary covenants and events of default. The China Loan Facility requires Aleris Zhenjiang to, among other things, maintain a certain ratio of outstanding term loans to invested equity capital. In addition, Aleris Zhenjiang is restricted from, subject to certain exceptions, repaying loans or distributing dividends to stockholders, disposing of assets, providing third party guarantees, or entering into additional financing to expand the capacity of the project, among other things.

Aleris Zhenjiang was in compliance with all of the covenants set forth in the China Loan Facility as of March 31, 2014. Aleris Zhenjiang has had delays in its ability to make timely draws of amounts committed under the China Loan Facility in the past and we cannot be certain that Aleris Zhenjiang will be able to draw all amounts committed under the Zhenjiang Revolver in the future or as to the timing or cost of any such draws.

Non-GAAP Financial Measures

We report our financial results in accordance with GAAP. However, our management believes that certain non-GAAP performance measures, which we use in managing the business, may provide investors with additional meaningful comparisons

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between current results and results in prior periods. EBITDA, Adjusted EBITDA, segment Adjusted EBITDA, commercial margin and segment commercial margin are examples of non-GAAP financial measures that we believe provide investors and other users of our financial information with useful information.

Management uses EBITDA, Adjusted EBITDA, segment Adjusted EBITDA, commercial margin and segment commercial margin, as performance metrics and believes these measures provide additional information commonly used by holders of the Senior Notes and parties to the ABL Facility with respect to the ongoing performance of our underlying business activities, as well as our ability to meet our future debt service, capital expenditures and working capital needs. In addition, EBITDA with certain adjustments is a component of certain covenants under the indentures governing the Senior Notes. Adjusted EBITDA, including the impacts of metal price lag, is a component of certain financial covenants under the credit agreement governing the ABL Facility. Management also uses commercial margin, including segment commercial margin, as a performance metric and believes that it provides useful information regarding the performance of our segments because it measures the price at which we sell our aluminum products above the hedged cost of the metal and the effects of metal price lag, thereby reflecting the value-added components of our commercial activities independent of aluminum prices which we cannot control.

Our EBITDA calculations represent net income and loss attributable to Aleris Corporation before interest income and expense, provision for and benefit from income taxes and depreciation and amortization. Adjusted EBITDA is defined as EBITDA excluding metal price lag, reorganization items, unrealized gains and losses on derivative financial instruments, restructuring items, the impact of recording inventory and other items at fair value through purchase accounting, currency exchange gains and losses on debt, stock-based compensation expense, start-up expenses, and certain other gains and losses. Segment Adjusted EBITDA represents Adjusted EBITDA on a per segment basis. EBITDA as defined in the indentures governing the Senior Notes also limits the amount of adjustments for cost savings, operational improvement and synergies for the purpose of determining our compliance with such covenants. Adjusted EBITDA as defined under the ABL Facility also limits the amount of adjustments for restructuring charges incurred after the Emergence Date and requires additional adjustments be made if certain annual pension funding levels are exceeded. Commercial margin represents revenues less the hedged cost of metal and the effects of metal price lag. Segment commercial margin represents commercial margin on a per segment basis.

EBITDA, Adjusted EBITDA, segment Adjusted EBITDA, commercial margin and segment commercial margin, as we use them may not be comparable to similarly titled measures used by other companies. We calculate EBITDA, Adjusted EBITDA and segment Adjusted EBITDA by eliminating the impact of a number of items we do not consider indicative of our ongoing operating performance and certain other items. You are encouraged to evaluate each adjustment and the reasons we consider it appropriate for supplemental analysis. However, EBITDA, Adjusted EBITDA, segment Adjusted EBITDA, commercial margin and segment commercial margin are not financial measurements recognized under GAAP, and when analyzing our operating performance, investors should use EBITDA, Adjusted EBITDA, segment Adjusted EBITDA, commercial margin and segment commercial margin in addition to, and not as an alternative for, net income and loss attributable to Aleris Corporation, operating income and loss, or any other performance measure derived in accordance with GAAP, or in addition to, and not as an alternative for, cash flow from operating activities as a measure of our liquidity. EBITDA, Adjusted EBITDA, segment Adjusted EBITDA, commercial margin and segment commercial margin have limitations as analytical tools, and they should not be considered in isolation, or as a substitute for, or superior to, our measures of financial performance prepared in accordance with GAAP. These limitations include:

▪ They do not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;

▪ They do not reflect changes in, or cash requirements for, working capital needs;

▪ They do not reflect interest expense or cash requirements necessary to service interest expense or principal payments under the ABL Facility, the Senior Notes or the Exchangeable Notes;

▪ They do not reflect certain tax payments that may represent a reduction in cash available to us;

▪ Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and EBITDA and Adjusted EBITDA, including segment Adjusted EBITDA, do not reflect cash requirements for such replacements; and

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▪ Other companies, including companies in our industry, may calculate these measures differently and, as the number of differences in the way companies calculate these measures increases, the degree of their usefulness as a comparative measure correspondingly decreases.

In addition, in evaluating Adjusted EBITDA, including segment Adjusted EBITDA, it should be noted that in the future we may incur expenses similar to the adjustments in the below presentation. Our presentation of Adjusted EBITDA, including segment Adjusted EBITDA, should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.

For reconciliations of EBITDA and Adjusted EBITDA and commercial margin to their most directly comparable financial measures presented in accordance with GAAP, see the tables below. For a reconciliation of segment Adjusted EBITDA to segment income and a reconciliation of segment commercial margin to segment revenues, which are the most directly comparable financial measures presented in accordance with GAAP, for each of the Rolled Products North America, Rolled Products Europe, Rolled Products Asia Pacific, Extrusions, Recycling and Specification Alloys North America and Recycling and Specification Alloys Europe segments, see the reconciliations in “– Our Segments.”

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For the three months endedMarch 31, 2014 and 2013, our reconciliation of Adjusted EBITDA to net (loss) income attributable to Aleris Corporation and net cash provided (used) by operating activities is presented below.

		For the three months ended
		March 31, 2014			March 31, 2013
	(in millions)
Adjusted EBITDA		$	59.2		$	64.5
Unrealized (losses) gains on derivative financial instruments		(9.3		)	10.3
Restructuring charges		(0.5		)	(0.9		)
Unallocated currency exchange losses on debt		—			(0.5		)
Stock-based compensation expense		(4.2		)	(2.7		)
Start-up expenses		(8.4		)	(11.4		)
Favorable metal price lag		12.0			5.6
Other		(2.6		)	0.5
EBITDA		46.2			65.4
Interest expense, net		(26.3		)	(21.0		)
Provision for income taxes		(4.3		)	(6.3		)
Depreciation and amortization		(33.2		)	(27.2		)
Net (loss) income attributable to Aleris Corporation		(17.6		)	10.9
Net income attributable to noncontrolling interest		0.3			0.4
Net (loss) income		(17.3		)	11.3
Depreciation and amortization		33.2			27.2
Provision for deferred income taxes		0.5			1.0
Stock-based compensation expense		4.2			2.7
Unrealized losses (gains) on derivative financial instruments		9.3			(10.3		)
Currency exchange losses on debt		0.3			0.4
Amortization of debt issuance costs		2.0			1.9
Other		1.1			(2.1		)
Change in operating assets and liabilities:
Change in accounts receivable		(83.5		)	(105.5		)
Change in inventories		(11.1		)	(14.1		)
Change in other assets		2.3			(12.0		)
Change in accounts payable		90.3			52.2
Change in accrued liabilities		(3.5		)	(8.3		)
Net cash provided (used) by operating activities		$	27.8		$	(55.6	)

For the three months endedMarch 31, 2014 and 2013, our reconciliation of revenues to commercial margin is as follows:

		For the three months ended
		March 31, 2014			March 31, 2013
	(in millions)
Revenues		$	1,054.2		$	1,110.1
Hedged cost of metal		(621.6		)	(683.9		)
Favorable metal price lag		(12.0		)	(5.6		)
Commercial margin		$	420.6		$	420.6

Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with GAAP requires our management to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date

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of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to the valuation of inventory, property and equipment and intangible assets, allowances related to doubtful accounts, income taxes, pensions and other postretirement benefits and environmental liabilities. Our management bases its estimates on historical experience, actuarial valuations and other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates.

A summary of our significant accounting policies and estimates is included in our Form 10-K filed with the Securities and Exchange Commission on March 14, 2014 for the year ended December 31, 2013. There have been no significant changes to our critical accounting policies or estimates during the three months endedMarch 31, 2014.

Off-Balance Sheet Transactions

We had no off-balance sheet arrangements at March 31, 2014.

Forward-Looking Statements

This Form 10-Q contains forward-looking statements that are based on current expectations, estimates, forecasts and projections about us and the industry in which we operate and beliefs and assumptions made by our management. Statements contained in this document that are not historical in nature are considered to be forward-looking statements. They include statements regarding our expectations, hopes, beliefs, estimates, intentions or strategies regarding the future. The words “may,” “could,” “would,” “should,” “will,” “believe,” “expect,” “anticipate,” “plan,” “estimate,” “target,” “project,” “look forward to,” “intend” and similar expressions are intended to identify forward-looking statements. Our expectations, beliefs and projections are expressed in good faith, and we believe we have a reasonable basis to make these statements through our management’s examination of historical operating trends, data contained in our records and other data available from third parties, but there can be no assurance that our management’s expectations, beliefs or projections will result or be achieved.

The forward-looking statements set forth in this document regarding, among other things, future costs and prices of commodities, production volume, industry trends, anticipated cost savings, demand for our products and services, anticipated benefits from new products or facilities, projected results of operations, achievement of production efficiencies, capacity expansions, estimates of volume, revenues, profitability and net income in future quarters, future prices and demand for our products, and estimated cash flows and sufficiency of cash flows to fund capital expenditures, reflect only our expectations regarding these matters. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in or implied by any forward-looking statement. Important factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to:

▪ our ability to successfully implement our business strategy;

▪ the cyclical nature of the aluminum industry, material adverse changes in the aluminum industry or our end-use segments, such as global and regional supply and demand conditions for aluminum and aluminum products, and changes in our customers’ industries;

▪ our ability to fulfill our substantial capital investment requirements;

▪ variability in general economic conditions on a global or regional basis;

▪ our ability to retain the services of certain members of our management;

▪ our ability to enter into effective metal, natural gas and other commodity derivatives or arrangements with customers to manage effectively our exposure to commodity price fluctuations and changes in the pricing of metals, especially London Metal Exchange-based aluminum prices;

▪ our internal controls over financial reporting and our disclosure controls and procedures may not prevent all possible errors that could occur;

▪ increases in the cost of raw materials and energy;

▪ the loss of order volumes from any of our largest customers;

▪ our ability to retain customers, a substantial number of whom do not have long-term contractual arrangements with us;

▪ our ability to generate sufficient cash flows to fund our capital expenditure requirements and to meet our debt service obligations;

▪ competitor pricing activity, competition of aluminum with alternative materials and the general impact of competition in the industry segments we serve;

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▪ risks of investing in and conducting operations on a global basis, including political, social, economic, currency and regulatory factors;

▪ current environmental liabilities and the cost of compliance with and liabilities under health and safety laws;

▪ labor relations (i.e., disruptions, strikes or work stoppages) and labor costs;

▪ our levels of indebtedness and debt service obligations, including changes in our credit ratings, material increases in our cost of borrowing or the failure of financial institutions to fulfill their commitments to us under committed credit facilities;

▪ our ability to access credit or capital markets;

▪ the possibility that we may incur additional indebtedness in the future; and

▪ limitations on operating our business as a result of covenant restrictions under our indebtedness and our ability to pay amounts due under the Senior Notes.

The above list is not exhaustive. Some of these factors and additional risks, uncertainties and other factors that may cause our actual results, performance or achievements to be different from those expressed or implied in our written or oral forward-looking statements may be found in our public filings with the Securities and Exchange Commission, including the sections entitled “Risk Factors” included therein.

These factors and such other risk factors are not necessarily all of the important factors that could cause our actual results to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors could also harm our results. Consequently, there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, us. Given these uncertainties, you are cautioned not to place undue reliance on such forward-looking statements.

The forward-looking statements included in this document are made only as of the date of this document. Except to the extent required by law, we do not undertake, and specifically decline any obligation, to update any forward-looking statements or to publicly announce the results of any revisions to any of such statements to reflect future events or developments.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

In the ordinary course of our business, we are exposed to earnings and cash flow volatility resulting from changes in the prices of aluminum, and, to a lesser extent, hardeners such as zinc and copper, and natural gas, as well as changes in currency and interest rates. For metal hedges, we use derivative instruments, such as forwards, futures, options, collars and swaps to manage the effect, both favorable and unfavorable, of such changes. For electricity and some natural gas price exposures, fixed price commitments are used.

Derivative contracts are used primarily to reduce uncertainty and volatility and cover underlying exposures and are held for purposes other than trading. Our commodity and derivative activities are subject to the management, direction and control of our Risk Management Committee, which is composed of our Chief Financial Officer and other officers and employees that the Chief Executive Officer designates. The Risk Management Committee reports to the Audit Committee of our Board of Directors, which has supervisory authority over all of its activities.

We are exposed to losses in the event of non-performance by the counterparties to the derivative contracts discussed below. Although non-performance by counterparties is possible, we do not currently anticipate any nonperformance by any of these parties. Counterparties are evaluated for creditworthiness and risk assessment prior to our initiating contract activities. The counterparties’ creditworthiness is then monitored on an ongoing basis, and credit levels are reviewed to ensure that there is not an inappropriate concentration of credit outstanding to any particular counterparty.

Metal Hedging

Aluminum ingots, copper and zinc are internationally produced, priced and traded commodities, with the LME being the primary exchange. As part of our efforts to preserve margins, we enter into forward, futures and options contracts. For accounting purposes, we do not consider our metal derivative instruments as hedges and, as a result, changes in the fair value of these derivatives are recorded immediately in our consolidated operating results.

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The selling prices of the majority of the orders for our rolled and extruded products are established at the time of order entry or, for certain customers, under long-term contracts. As the related raw materials used to produce these orders can be purchased several months or years after the selling prices are fixed, margins are subject to the risk of changes in the purchase price of the raw materials used for these fixed price sales. In order to manage this transactional exposure, LME future or forward purchase contracts are purchased at the time the selling prices are fixed. As metal is purchased to fill these fixed price sales orders, LME futures or forwards contracts are then sold.

We also maintain a significant amount of inventory on-hand to meet anticipated and unpriced future sales. In order to preserve the value of this inventory, LME future or forward contracts are sold at the time inventory is purchased. As sales orders are priced, LME futures or forwards contracts are purchased. These derivatives generally settle within three months.

We can also use call option contracts, which function in a manner similar to the natural gas call option contracts discussed below, and put option contracts for managing metal price exposures. Option contracts require the payment of a premium which is recorded as a realized loss upon settlement or expiration of the option contract. Upon settlement of a put option contract, we receive cash and recognize a related gain if the LME closing price is less than the strike price of the put option. If the put option strike price is less than the LME closing price, no amount is paid and the option expires. As of March 31, 2014 and December 31, 2013, we had 0.2 million metric tons and 0.2 million metric tons of metal buy and sell forward contracts, respectively.

Natural Gas Hedging

To manage the price exposure for natural gas purchases, we can fix the future price of a portion or all of our natural gas requirements by entering into financial hedge contracts.

We do not consider our natural gas derivative instruments as hedges for accounting purposes and as a result, changes in the fair value of these derivatives are recorded immediately in our consolidated operating results. Under these contracts, payments are made or received based on the differential between the monthly closing price on the New York Mercantile Exchange (“NYMEX”) and the contractual hedge contract price. We can use a combination of call option contracts and put option contracts for managing the exposure to increasing natural gas prices while maintaining the benefit from declining prices. Upon settlement of call option contracts, we receive cash and recognize a related gain if the NYMEX closing price exceeds the strike price of the call option. If the call option strike price exceeds the NYMEX closing price, no amount is received and the option expires. Upon settlement of a put option contract, we pay cash and recognize a related loss if the NYMEX closing price is lower than the strike price of the put option. If the put option strike price is less than the NYMEX closing price, no amount is paid and the option expires unexercised. Option contracts require the payment of a premium which is recorded as a realized loss upon settlement or expiration of the option contract.

Natural gas cost can also be managed through the use of cost escalators included in some of our long-term supply contracts with customers, which limits exposure to natural gas price risk. As of March 31, 2014 and December 31, 2013, we had 1.9 trillion and 2.9 trillion, respectively, of British thermal unit forward buy contracts.

Fair Values and Sensitivity Analysis

The following table shows the fair values of outstanding derivative contracts at March 31, 2014 and the effect on the fair value of a hypothetical adverse change in the market prices that existed at March 31, 2014:

				Impact of
(in millions)	Fair			10% Adverse
Derivative	Value			Price Change
Metal	$	(13.3	)	$	3.1
Natural gas	0.6			(0.8		)

The disclosures above do not take into account the underlying commitments or anticipated transactions. If the underlying items were included in the analysis, the gains or losses on our derivative instruments would be offset by gains and losses realized on the purchase of the physical commodities. Actual results will be determined by a number of factors outside of our control and could vary significantly from the amounts disclosed. For additional information on derivative financial instruments, see Note 11, “Derivative and Other Financial Instruments,” to our unaudited consolidated financial statements included elsewhere in this report on Form 10-Q.

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Currency Exchange Risks

The financial condition and results of operations of some of our operating entities are reported in various currencies and then translated into U.S. dollars at the applicable exchange rate for inclusion in our consolidated financial statements. As a result, appreciation of the U.S. dollar against these currencies will have a negative impact on reported revenues and operating profit, while depreciation of the U.S. dollar against these currencies will generally have a positive effect on reported revenues and operating profit. In addition, a portion of the revenues generated by our international operations are denominated in U.S. dollars, while the majority of costs incurred are denominated in local currencies. As a result, appreciation in the U.S. dollar will have a positive impact on earnings while depreciation of the U.S. dollar will have a negative impact on earnings.

Interest Rate Risks

As of March 31, 2014, approximately 85% of our debt obligations were at fixed rates. We are subject to interest rate risk related to the ABL Facility and China Loan Facility, to the extent borrowings are outstanding under these facilities. As of March 31, 2014, Aleris International had $10.0 million of borrowings under the ABL Facility and Aleris Zhenjiang had $191.8 million of borrowings under the China Loan Facility. Due to the fixed-rate nature of the majority of our debt, there would not be a significant impact on our interest expense or cash flows from either a 10% increase or decrease in market rates of interest.

Item 4. Controls and Procedures.

Disclosure Controls and Procedures

During the fiscal period covered by this report, the Company’s management, with the participation of the Chief Executive Officer and Chief Financial Officer, completed an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”)). Based upon this evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the fiscal period covered by this report, the disclosure controls and procedures were effective to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the Securities and Exchange Commission’s rules and forms and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures.

Changes in Internal Control Over Financial Reporting

There were no changes in internal control over financial reporting during the fiscal first quarter ended March 31, 2014, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings.

We are a party from time to time to what we believe are routine litigation and proceedings considered part of the ordinary course of our business. We believe that the outcome of such existing proceedings would not have a material adverse effect on our financial position, results of operations or cash flows. 

Item 1A. Risk Factors.

There have been no material changes to the risk factors included in the Risk Factors section in our Annual Report on Form 10-K for the fiscal year ended December 31, 2013.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3. Defaults Upon Senior Securities.

None.

46

Item 4. Mine Safety Disclosures.

  None.

Item 5. Other Information.

None.

Item 6. Exhibits.

Exhibit Number	Description
10.1	Amendment to Aleris Holding Company (n/k/a Aleris Corporation) 2010 Equity Incentive Plan, effective as of January 15, 2014 (filed as Exhibit 10.1 to Aleris Corporation’s Current Report on Form 8-K (File No. 333-173721), filed January 22, 2014, and incorporated herein by reference).
10.2	Amendment to Aleris Holding Company (n/k/a Aleris Corporation) 2010 Equity Incentive Plan, effective as of January 21, 2014 (filed as Exhibit 10.2 to Aleris Corporation’s Current Report on Form 8-K (File No. 333-173721), filed January 22, 2014, and incorporated herein by reference).
10.3	Form of Amendment to Employment Agreement by and among Aleris International, Inc. (with respect to Messrs. Stack, Clegg and Weidenkopf), Aleris Switzerland GmbH (with respect to Mr. Baan), Aleris Corporation and each of Sean M. Stack, Christopher R. Clegg, Thomas W. Weidenkopf and Roeloff IJ. Baan (filed as Exhibit 10.6 to Aleris Corporation’s Current Report on Form 8-K (File No. 333-173721), filed January 22, 2014, and incorporated herein by reference).
10.4	Aleris Corporation 2010 Equity Incentive Plan 2014 Stock Option Award Agreement, dated January 15, 2014, between Aleris Corporation and Steven Demetriou (filed as Exhibit 10.3 to Aleris Corporation’s Current Report on Form 8-K (File No. 333-173721), filed January 22, 2014, and incorporated herein by reference).
10.5	Form of Aleris Corporation 2010 Equity Incentive Plan Executive Stock Option Award Agreement (filed as Exhibit 10.4 to Aleris Corporation’s Current Report on Form 8-K (File No. 333-173721), filed January 22, 2014, and incorporated herein by reference).
10.6	Form of Aleris Corporation 2010 Equity Incentive Plan Executive Restricted Stock Unit Award Agreement (filed as Exhibit 10.5 to Aleris Corporation’s Current Report on Form 8-K (File No. 333-173721), filed January 22, 2014, and incorporated herein by reference).
10.7	Form of Aleris Corporation 2010 Equity Incentive Plan Non-Employee Director Restricted Stock Unit Award Agreement (filed as Exhibit 10.7 to Aleris Corporation’s Current Report on Form 8-K (File No. 333-173721), filed January 22, 2014, and incorporated herein by reference).
10.8	Form of Aleris Corporation 2010 Equity Incentive Plan Management Restricted Stock Unit Award Agreement (filed as Exhibit 10.1 to Aleris Corporation's Amendment to the Current Report on Form 8-K (File No 333-173721), filed on April 21, 2014 and incorporated herein by reference).
10.9	Form of Aleris Corporation 2010 Equity Incentive Plan Management Option Award Agreement (filed as Exhibit 10.2 to Aleris Corporation's Amendment to the Current Report on Form 8-K (File No. 333-173721), filed on April 21, 2014 and incorporated herein by reference).
31.1	Rule 13a-14(a)/15d-14(a) Certification of Aleris Corporation’s Chief Executive Officer.
31.2	Rule 13a-14(a)/15d-14(a) Certification of Aleris Corporation’s Chief Financial Officer.
32.1	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
*101.INS	XBRL Instance Document
*101.SCH	XBRL Taxonomy Extension Schema
*101.CAL	XBRL Taxonomy Extension Calculation Linkbase
*101.DEF	XBRL Taxonomy Extension Definition Linkbase
*101.LAB	XBRL Taxonomy Extension Label Linkbase
*101.PRE	XBRL Taxonomy Extension Presentation Linkbase

47

* Filed herewith, XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

48

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		ALERIS CORPORATION
Date:	May 15, 2014	By:	/s/    ERIC M. RYCHEL
		Name:	Eric M. Rychel
		Title:	Senior Vice President and Chief Financial Officer (Principal Financial Officer)

49

EX-31.1

Exhibit 31.1

CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Steven J. Demetriou, certify that:

1.  I have reviewed this Quarterly Report on Form 10-Q for the period ended March 31, 2014 of Aleris Corporation;

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.  The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)  Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)  Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)  Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)  Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.  The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)  All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)  Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	May 15, 2014		/s/ Steven J. Demetriou
		Name:	Steven J. Demetriou
		Title:	Chairman and Chief Executive Officer (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Eric M. Rychel, certify that:

1.  I have reviewed this Quarterly Report on Form 10-Q for the period ended March 31, 2014 of Aleris Corporation;

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.  The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)  Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)  Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)  Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)  Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.  The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)  All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)  Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	May 15, 2014		/s/ Eric M. Rychel
		Name:	Eric M. Rychel
		Title:	Senior Vice President and Chief Financial Officer (Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

AND CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Aleris Corporation (the “Company”) on Form 10-Q for the period ended March 31, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Steven J. Demetriou, Chairman of the Board of Directors and Chief Executive Officer of the Company, and Eric M. Rychel, Senior Vice President and Chief Financial Officer of the Company, each hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to his knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	May 15, 2014	/s/ Steven J. Demetriou
		Steven J. Demetriou
		Chairman and Chief Executive Officer (Principal Executive Officer)
Date:	May 15, 2014	/s/ Eric M. Rychel
		Eric M. Rychel
		Senior Vice President and Chief Financial Officer (Principal Financial Officer)

XML

Income Taxes (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Income Tax Disclosure [Abstract]
Effective tax rate (percent)	(33.10%)	36.20%
Unrecognized tax benefits	$ 2.8
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	$ 0.2

XML

Condensed Consolidating Financial Statements (Condensed Cash Flow Statement) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Condensed Financial Statements, Captions [Line Items]
Net cash provided (used) by operating activities	$ 27.8	$ (55.6)
Investing activities
Payments for property, plant and equipment	(47.5)	(96.9)
Disbursements of intercompany loans	0	0
Repayments from intercompany loans	0	0
Equity contributions in subsidiaries		0
Other	0.5	1.6
Net cash used by investing activities	(47.0)	(95.3)
Financing activities
Proceeds from the ABL facility	40.0	0
Payments on the ABL facility	(30.0)	0
Proceeds from the Zhenjiang term loans	0	0.2
Net (payments on) proceeds from other long-term debt	0.7	0.6
Proceeds from intercompany loans	0	0
Repayments of intercompany loans	0	0
Proceeds from intercompany equity contributions		0
Other	(0.3)	(2.3)
Net cash (used) provided by financing activities	10.4	(1.5)
Effect of exchange rate differences on cash and cash equivalents	0	(1.2)
Net decrease in cash and cash equivalents	(8.8)	(153.6)
Cash and cash equivalents at beginning of period	60.1	592.9
Cash and cash equivalents at end of period	51.3	439.3
Aleris Corporation (Parent)
Condensed Financial Statements, Captions [Line Items]
Net cash provided (used) by operating activities	0.2	2.0
Investing activities
Payments for property, plant and equipment	0	0
Disbursements of intercompany loans	0	0
Repayments from intercompany loans	0	0
Equity contributions in subsidiaries		0
Other	0	0
Net cash used by investing activities	0	0
Financing activities
Proceeds from the ABL facility	0
Payments on the ABL facility	0
Proceeds from the Zhenjiang term loans		0
Net (payments on) proceeds from other long-term debt	0	0
Proceeds from intercompany loans	0	0
Repayments of intercompany loans	0	0
Proceeds from intercompany equity contributions		0
Other	(0.2)	(2.0)
Net cash (used) provided by financing activities	(0.2)	(2.0)
Effect of exchange rate differences on cash and cash equivalents	0	0
Net decrease in cash and cash equivalents	0	0
Cash and cash equivalents at beginning of period	0	0
Cash and cash equivalents at end of period	0	0
Aleris International, Inc.
Condensed Financial Statements, Captions [Line Items]
Net cash provided (used) by operating activities	(18.6)	(38.2)
Investing activities
Payments for property, plant and equipment	0	0
Disbursements of intercompany loans	(15.0)	0
Repayments from intercompany loans	(5.0)	0
Equity contributions in subsidiaries		(60.0)
Other	0	0
Net cash used by investing activities	(10.0)	(60.0)
Financing activities
Proceeds from the ABL facility	25.0
Payments on the ABL facility	(15.0)
Proceeds from the Zhenjiang term loans		0
Net (payments on) proceeds from other long-term debt	0	0
Proceeds from intercompany loans	(15.0)	0
Repayments of intercompany loans	0	0
Proceeds from intercompany equity contributions		0
Other	(0.1)	(0.3)
Net cash (used) provided by financing activities	24.9	(0.3)
Effect of exchange rate differences on cash and cash equivalents	0	0
Net decrease in cash and cash equivalents	(3.7)	(98.5)
Cash and cash equivalents at beginning of period	3.7	472.4
Cash and cash equivalents at end of period	0	373.9
Guarantors
Condensed Financial Statements, Captions [Line Items]
Net cash provided (used) by operating activities	19.2	38.6
Investing activities
Payments for property, plant and equipment	(19.0)	(19.6)
Disbursements of intercompany loans	(2.2)	(24.6)
Repayments from intercompany loans	(2.5)	(5.5)
Equity contributions in subsidiaries		(3.1)
Other	(0.3)	0.1
Net cash used by investing activities	(19.0)	(41.7)
Financing activities
Proceeds from the ABL facility	0
Payments on the ABL facility	0
Proceeds from the Zhenjiang term loans		0
Net (payments on) proceeds from other long-term debt	(0.2)	0
Proceeds from intercompany loans	0	0
Repayments of intercompany loans	0	0
Proceeds from intercompany equity contributions		3.1
Other	0	0
Net cash (used) provided by financing activities	(0.2)	3.1
Effect of exchange rate differences on cash and cash equivalents	0	0
Net decrease in cash and cash equivalents	0	0
Cash and cash equivalents at beginning of period	0	0
Cash and cash equivalents at end of period	0	0
Non-Guarantors
Condensed Financial Statements, Captions [Line Items]
Net cash provided (used) by operating activities	24.6	(57.5)
Investing activities
Payments for property, plant and equipment	(28.5)	(77.3)
Disbursements of intercompany loans	(15.0)	0
Repayments from intercompany loans	0	0
Equity contributions in subsidiaries		0
Other	0.8	1.5
Net cash used by investing activities	(42.7)	(75.8)
Financing activities
Proceeds from the ABL facility	15.0
Payments on the ABL facility	(15.0)
Proceeds from the Zhenjiang term loans		0.2
Net (payments on) proceeds from other long-term debt	0.9	0.6
Proceeds from intercompany loans	(17.2)	(24.6)
Repayments of intercompany loans	(7.5)	(5.5)
Proceeds from intercompany equity contributions		60.0
Other	0	0
Net cash (used) provided by financing activities	10.6	79.9
Effect of exchange rate differences on cash and cash equivalents	0	(1.2)
Net decrease in cash and cash equivalents	(7.5)	(54.6)
Cash and cash equivalents at beginning of period	58.9	121.6
Cash and cash equivalents at end of period	51.4	67.0
Eliminations
Condensed Financial Statements, Captions [Line Items]
Net cash provided (used) by operating activities	2.4	(0.5)
Investing activities
Payments for property, plant and equipment	0	0
Disbursements of intercompany loans	32.2	24.6
Repayments from intercompany loans	7.5	5.5
Equity contributions in subsidiaries		63.1
Other	0	0
Net cash used by investing activities	24.7	82.2
Financing activities
Proceeds from the ABL facility	0
Payments on the ABL facility	0
Proceeds from the Zhenjiang term loans		0
Net (payments on) proceeds from other long-term debt	0	0
Proceeds from intercompany loans	32.2	24.6
Repayments of intercompany loans	7.5	5.5
Proceeds from intercompany equity contributions		(63.1)
Other	0	0
Net cash (used) provided by financing activities	(24.7)	(82.2)
Effect of exchange rate differences on cash and cash equivalents	0	0
Net decrease in cash and cash equivalents	2.4	(0.5)
Cash and cash equivalents at beginning of period	(2.5)	(1.1)
Cash and cash equivalents at end of period	$ (0.1)	$ (1.6)

XML

Condensed Consolidating Financial Statements (Condensed Balance Sheet) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013	Dec. 31, 2012
Current Assets
Cash and cash equivalents	$ 51.3	$ 60.1	$ 439.3	$ 592.9
Accounts receivable, net	460.1	376.9
Inventories	693.7	683.4
Deferred income taxes	7.1	7.1
Prepaid expense and other assets, current	28.6	31.5
Due from Affiliate, Current	0	0
Total Current Assets	1,240.8	1,159.0
Property, plant and equipment, net	1,144.5	1,157.7
Intangible assets, net	43.0	43.5
Deferred income taxes	45.2	45.2
Other long-term assets	65.9	67.5
Due from Affiliate, Noncurrent	0	0
Investments in subsidiaries/intercompany receivables, net	0	0
Total Assets	2,539.4	2,472.9
Current Liabilities
Accounts payable	381.3	303.2
Accrued liabilities	197.2	200.9
Deferred income taxes	3.9	3.9
Current portion of long-term debt	10.1	8.3
Due to Affiliate, Current	0	0
Total Current Liabilities	592.5	516.3
Long-term debt	1,238.2	1,229.1
Deferred income taxes	4.8	4.4
Accrued pension benefits	226.8	228.5
Accrued postretirement benefits	40.7	40.9
Other long-term liabilities	77.6	79.3
Due to Affiliate, Noncurrent	0	0
Total Long-Term Liabilities	1,588.1	1,582.2
Redeemable noncontrolling interest	5.6	5.7
Total Aleris Corporation Equity	352.6	368.4
Noncontrolling interest	0.6	0.3
Total Liabilities and Equity	2,539.4	2,472.9
Aleris Corporation (Parent)
Current Assets
Cash and cash equivalents	0	0	0	0
Accounts receivable, net	0	0
Inventories	0	0
Deferred income taxes	0	0
Prepaid expense and other assets, current	0	0
Due from Affiliate, Current	0	0
Total Current Assets	0	0
Property, plant and equipment, net	0	0
Intangible assets, net	0	0
Deferred income taxes	0	0
Other long-term assets	0	0
Due from Affiliate, Noncurrent	0	0
Investments in subsidiaries/intercompany receivables, net	356.2	371.8
Total Assets	356.2	371.8
Current Liabilities
Accounts payable	0	0
Accrued liabilities	0	0
Deferred income taxes	0	0
Current portion of long-term debt	0	0
Due to Affiliate, Current	0	0
Total Current Liabilities	0	0
Long-term debt	0	0
Deferred income taxes	0	0
Accrued pension benefits	0	0
Accrued postretirement benefits	0	0
Other long-term liabilities	0	0
Due to Affiliate, Noncurrent	3.6	3.4
Total Long-Term Liabilities	3.6	3.4
Redeemable noncontrolling interest	0	0
Total Aleris Corporation Equity	352.6	368.4
Noncontrolling interest	0	0
Total Liabilities and Equity	356.2	371.8
Aleris International, Inc.
Current Assets
Cash and cash equivalents	0	3.7	373.9	472.4
Accounts receivable, net	0	0
Inventories	0	0
Deferred income taxes	0	0
Prepaid expense and other assets, current	0.5	0.5
Due from Affiliate, Current	481.7	362.4
Total Current Assets	482.2	366.6
Property, plant and equipment, net	0	0
Intangible assets, net	0	0
Deferred income taxes	0	0
Other long-term assets	11.4	12.3
Due from Affiliate, Noncurrent	3.6	3.4
Investments in subsidiaries/intercompany receivables, net	1,491.0	1,510.6
Total Assets	1,988.2	1,892.9
Current Liabilities
Accounts payable	2.0	0.4
Accrued liabilities	21.3	21.7
Deferred income taxes	0	0
Current portion of long-term debt	0	0
Due to Affiliate, Current	561.6	462.4
Total Current Liabilities	584.9	484.5
Long-term debt	1,041.5	1,030.9
Deferred income taxes	0	0
Accrued pension benefits	0	0
Accrued postretirement benefits	0	0
Other long-term liabilities	0	0
Due to Affiliate, Noncurrent	0	0
Total Long-Term Liabilities	1,041.5	1,030.9
Redeemable noncontrolling interest	5.6	5.7
Total Aleris Corporation Equity	356.2	371.8
Noncontrolling interest	0	0
Total Liabilities and Equity	1,988.2	1,892.9
Guarantors
Current Assets
Cash and cash equivalents	0	0	0	0
Accounts receivable, net	149.7	125.7
Inventories	263.6	245.1
Deferred income taxes	0.2	0.2
Prepaid expense and other assets, current	13.9	16.1
Due from Affiliate, Current	463.0	378.3
Total Current Assets	890.4	765.4
Property, plant and equipment, net	370.9	377.8
Intangible assets, net	27.1	27.6
Deferred income taxes	0	0
Other long-term assets	4.2	3.3
Due from Affiliate, Noncurrent	0	0
Investments in subsidiaries/intercompany receivables, net	118.3	117.7
Total Assets	1,410.9	1,291.8
Current Liabilities
Accounts payable	147.2	117.1
Accrued liabilities	65.2	67.0
Deferred income taxes	0	0
Current portion of long-term debt	0.5	0.5
Due to Affiliate, Current	488.0	371.7
Total Current Liabilities	700.9	556.3
Long-term debt	0.7	0.8
Deferred income taxes	0.2	0.2
Accrued pension benefits	31.5	33.8
Accrued postretirement benefits	40.7	40.9
Other long-term liabilities	32.8	32.7
Due to Affiliate, Noncurrent	0	0
Total Long-Term Liabilities	105.9	108.4
Redeemable noncontrolling interest	0	0
Total Aleris Corporation Equity	604.1	627.1
Noncontrolling interest	0	0
Total Liabilities and Equity	1,410.9	1,291.8
Non-Guarantors
Current Assets
Cash and cash equivalents	51.4	58.9	67.0	121.6
Accounts receivable, net	310.4	251.2
Inventories	430.1	438.3
Deferred income taxes	6.9	6.9
Prepaid expense and other assets, current	14.2	14.9
Due from Affiliate, Current	215.6	192.4
Total Current Assets	1,028.6	962.6
Property, plant and equipment, net	773.6	779.9
Intangible assets, net	15.9	15.9
Deferred income taxes	45.2	45.2
Other long-term assets	50.3	51.9
Due from Affiliate, Noncurrent	0	0
Investments in subsidiaries/intercompany receivables, net	0	0
Total Assets	1,913.6	1,855.5
Current Liabilities
Accounts payable	232.2	188.2
Accrued liabilities	110.7	112.2
Deferred income taxes	3.9	3.9
Current portion of long-term debt	9.6	7.8
Due to Affiliate, Current	110.7	99.0
Total Current Liabilities	467.1	411.1
Long-term debt	196.0	197.4
Deferred income taxes	4.6	4.2
Accrued pension benefits	195.3	194.7
Accrued postretirement benefits	0	0
Other long-term liabilities	44.8	46.6
Due to Affiliate, Noncurrent	0	0
Total Long-Term Liabilities	440.7	442.9
Redeemable noncontrolling interest	0	0
Total Aleris Corporation Equity	1,005.2	1,001.2
Noncontrolling interest	0.6	0.3
Total Liabilities and Equity	1,913.6	1,855.5
Eliminations
Current Assets
Cash and cash equivalents	(0.1)	(2.5)	(1.6)	(1.1)
Accounts receivable, net	0	0
Inventories	0	0
Deferred income taxes	0	0
Prepaid expense and other assets, current	0	0
Due from Affiliate, Current	(1,160.3)	(933.1)
Total Current Assets	(1,160.4)	(935.6)
Property, plant and equipment, net	0	0
Intangible assets, net	0	0
Deferred income taxes	0	0
Other long-term assets	0	0
Due from Affiliate, Noncurrent	(3.6)	(3.4)
Investments in subsidiaries/intercompany receivables, net	(1,965.5)	(2,000.1)
Total Assets	(3,129.5)	(2,939.1)
Current Liabilities
Accounts payable	(0.1)	(2.5)
Accrued liabilities	0	0
Deferred income taxes	0	0
Current portion of long-term debt	0	0
Due to Affiliate, Current	(1,160.3)	(933.1)
Total Current Liabilities	(1,160.4)	(935.6)
Long-term debt	0	0
Deferred income taxes	0	0
Accrued pension benefits	0	0
Accrued postretirement benefits	0	0
Other long-term liabilities	0	0
Due to Affiliate, Noncurrent	(3.6)	(3.4)
Total Long-Term Liabilities	(3.6)	(3.4)
Redeemable noncontrolling interest	0	0
Total Aleris Corporation Equity	(1,965.5)	(2,000.1)
Noncontrolling interest	0	0
Total Liabilities and Equity	$ (3,129.5)	$ (2,939.1)

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Accumulated Other Comprehensive Income (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended								3 Months Ended
	Mar. 31, 2014		Mar. 31, 2014 Accumulated Translation Adjustment	Dec. 31, 2013 Accumulated Translation Adjustment	Mar. 31, 2014 Defined Benefit Plans and Other Postretirement Benefit Plans [Member]	Dec. 31, 2013 Defined Benefit Plans and Other Postretirement Benefit Plans [Member]	Mar. 31, 2014 Accumulated Net Adjustment	Dec. 31, 2013 Accumulated Net Adjustment	Mar. 31, 2014 Foreign Currency Gain (Loss) Accumulated Translation Adjustment	Mar. 31, 2014 Foreign Currency Gain (Loss) Defined Benefit Plans and Other Postretirement Benefit Plans [Member]	Mar. 31, 2014 Foreign Currency Gain (Loss) Accumulated Net Adjustment	Mar. 31, 2014 Pension Plan, Defined Benefit Accumulated Translation Adjustment	Mar. 31, 2014 Pension Plan, Defined Benefit Defined Benefit Plans and Other Postretirement Benefit Plans [Member]	Mar. 31, 2014 Pension Plan, Defined Benefit Accumulated Net Adjustment
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated other comprehensive income at January 1, 2014	$ 13.8		$ 43.5	$ 45.8	$ (31.8)	$ (32.0)	$ 11.7	$ 13.8
Current period currency translation adjustments									(2.3)	0	(2.3)
Amortization of net actuarial loss												0	0.2	0.2
Accumulated other comprehensive income at March 31, 2014	11.7		43.5	45.8	(31.8)	(32.0)	11.7	13.8
Amortization of net actuarial losses before tax	(0.2)	[1]
Losses reclassified into earnings, net of tax	$ (0.2)

[1] This component of accumulated other comprehensive income is included in the computation of net periodic benefit expense and net postretirement benefit expense (see Note 10, “Employee Benefit Plans,” for additional detail).

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Employee Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2014

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

Schedule of Net Benefit Costs

Defined Benefit Pension Plans

The components of the net periodic benefit expense are as follows:

	U.S. pension benefits						Non-U.S. pension benefits
	for the three months ended						for the three months ended
	March 31, 2014			March 31, 2013			March 31, 2014		March 31, 2013
Service cost	$	0.8		$	0.9		$	1.0	$	1.0
Interest cost	1.8			1.6			1.9		1.7
Amortization of net actuarial losses	—			0.4			0.3		0.4
Expected return on plan assets	(2.6		)	(2.3		)	—		—
Net periodic benefit expense	$	—		$	0.6		$	3.2	$	3.1

Other Postretirement Benefit Plans

The components of net postretirement benefit expense are as follows:

	For the three months ended
	March 31, 2014			March 31, 2013
Service cost	$	—		$	0.1
Interest cost	0.5			0.4
Amortization of net actuarial (gains) losses	(0.1		)	0.1
Net postretirement benefit expense	$	0.4		$	0.6

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Derivative And Other Financial Instruments (Schedule of Derivative Instruments) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Fair Value of Derivative Assets
Fair value	$ 7.6	$ 13.7
Effect of counterparty netting	(6.9)	(12.3)
Net derivatives as classified in the balance sheet	0.7	1.4
Fair Value of Derivative Liabilities
Fair value	(20.3)	(17.0)
Effect of counterparty netting	6.9	12.3
Net derivatives as classified in the balance sheet	(13.4)	(4.7)
Metal
Fair Value of Derivative Assets
Fair value	7.0	13.3
Fair Value of Derivative Liabilities
Fair value	(20.3)	(17.0)
Natural Gas
Fair Value of Derivative Assets
Fair value	0.6	0.4
Fair Value of Derivative Liabilities
Fair value	$ 0	$ 0

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Segment Information (Reconciliation of Reportable Segment Assets) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	$ 2,539.4	$ 2,472.9
RPNA
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	553.0	524.7
RPEU
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	719.6	699.2
RPAP
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	428.9	439.4
Extrusions
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	153.7	141.8
RSAA
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	310.4	294.5
RSEU
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	198.1	183.7
Unallocated Amounts
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	$ 175.7	$ 189.6

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Condensed Consolidating Financial Statements (Condensed Income Statement) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Condensed Financial Statements, Captions [Line Items]
Revenues	$ 1,054.2	$ 1,110.1
Cost of sales	979.1	1,021.1
Gross profit	75.1	89.0
Selling, general and administrative expenses	61.9	61.6
Restructuring charges (gains)	0.5	0.9
Losses (gains) on derivative financial instruments	(0.5)	(9.1)
Other operating expense (income), net	0.3	(1.1)
Operating (loss) income	12.9	36.7
Interest expense, net	26.3	21.0
Other (income) expense, net	(0.4)	(1.9)
Equity in net loss (earnings) of affiliates	0	0
(Loss) income before income taxes	(13.0)	17.6
Provision for income taxes	4.3	6.3
Net (loss) income	(17.3)	11.3
Net income attributable to noncontrolling interest	0.3	0.4
Net (loss) income attributable to Aleris Corporation	(17.6)	10.9
Comprehensive (loss) income	(19.3)	(5.4)
Comprehensive income attributable to noncontrolling interest	0.3	0.4
Comprehensive (loss) income attributable to Aleris Corporation	(19.6)	(5.8)
Aleris Corporation (Parent)
Condensed Financial Statements, Captions [Line Items]
Revenues	0	0
Cost of sales	0	0
Gross profit	0	0
Selling, general and administrative expenses	0	0
Restructuring charges (gains)	0	0
Losses (gains) on derivative financial instruments	0	0
Other operating expense (income), net	0	0
Operating (loss) income	0	0
Interest expense, net	0	0
Other (income) expense, net	0	0
Equity in net loss (earnings) of affiliates	17.6	(10.9)
(Loss) income before income taxes	(17.6)	10.9
Provision for income taxes	0	0
Net (loss) income	(17.6)	10.9
Net income attributable to noncontrolling interest	0	0
Net (loss) income attributable to Aleris Corporation	(17.6)	10.9
Comprehensive (loss) income	(19.6)	(5.8)
Comprehensive income attributable to noncontrolling interest	0	0
Comprehensive (loss) income attributable to Aleris Corporation	(19.6)	(5.8)
Aleris International, Inc.
Condensed Financial Statements, Captions [Line Items]
Revenues	0	0
Cost of sales	0	0
Gross profit	0	0
Selling, general and administrative expenses	0	0
Restructuring charges (gains)	0	0
Losses (gains) on derivative financial instruments	0	0
Other operating expense (income), net	0	0
Operating (loss) income	0	0
Interest expense, net	0	0
Other (income) expense, net	0	0
Equity in net loss (earnings) of affiliates	17.6	(10.9)
(Loss) income before income taxes	(17.6)	10.9
Provision for income taxes	0	0
Net (loss) income	(17.6)	10.9
Net income attributable to noncontrolling interest	0	0
Net (loss) income attributable to Aleris Corporation	(17.6)	10.9
Comprehensive (loss) income	(19.6)	(5.8)
Comprehensive income attributable to noncontrolling interest	0	0
Comprehensive (loss) income attributable to Aleris Corporation	(19.6)	(5.8)
Guarantors
Condensed Financial Statements, Captions [Line Items]
Revenues	439.7	507.9
Cost of sales	416.9	475.4
Gross profit	22.8	32.5
Selling, general and administrative expenses	30.2	27.9
Restructuring charges (gains)	0.7	1.2
Losses (gains) on derivative financial instruments	(3.7)	(8.5)
Other operating expense (income), net	0.5	0
Operating (loss) income	(4.9)	11.9
Interest expense, net	22.3	22.1
Other (income) expense, net	(3.7)	(0.8)
Equity in net loss (earnings) of affiliates	(0.6)	(0.5)
(Loss) income before income taxes	(22.9)	(8.9)
Provision for income taxes	0	0
Net (loss) income	(22.9)	(8.9)
Net income attributable to noncontrolling interest	0	0
Net (loss) income attributable to Aleris Corporation	(22.9)	(8.9)
Comprehensive (loss) income	(23.0)	(7.9)
Comprehensive income attributable to noncontrolling interest	0	0
Comprehensive (loss) income attributable to Aleris Corporation	(23.0)	(7.9)
Non-Guarantors
Condensed Financial Statements, Captions [Line Items]
Revenues	617.5	603.9
Cost of sales	565.2	547.4
Gross profit	52.3	56.5
Selling, general and administrative expenses	31.7	33.7
Restructuring charges (gains)	(0.2)	(0.3)
Losses (gains) on derivative financial instruments	3.2	(0.6)
Other operating expense (income), net	(0.2)	(1.1)
Operating (loss) income	17.8	24.8
Interest expense, net	4.0	(1.1)
Other (income) expense, net	3.3	(1.1)
Equity in net loss (earnings) of affiliates	0	0
(Loss) income before income taxes	10.5	27.0
Provision for income taxes	4.3	6.3
Net (loss) income	6.2	20.7
Net income attributable to noncontrolling interest	0.3	0.4
Net (loss) income attributable to Aleris Corporation	5.9	20.3
Comprehensive (loss) income	4.3	3.6
Comprehensive income attributable to noncontrolling interest	0.3	0.4
Comprehensive (loss) income attributable to Aleris Corporation	4.0	3.2
Eliminations
Condensed Financial Statements, Captions [Line Items]
Revenues	(3.0)	(1.7)
Cost of sales	(3.0)	(1.7)
Gross profit	0	0
Selling, general and administrative expenses	0	0
Restructuring charges (gains)	0	0
Losses (gains) on derivative financial instruments	0	0
Other operating expense (income), net	0	0
Operating (loss) income	0	0
Interest expense, net	0	0
Other (income) expense, net	0	0
Equity in net loss (earnings) of affiliates	(34.6)	22.3
(Loss) income before income taxes	34.6	(22.3)
Provision for income taxes	0	0
Net (loss) income	34.6	(22.3)
Net income attributable to noncontrolling interest	0	0
Net (loss) income attributable to Aleris Corporation	34.6	(22.3)
Comprehensive (loss) income	38.6	10.5
Comprehensive income attributable to noncontrolling interest	0	0
Comprehensive (loss) income attributable to Aleris Corporation	$ 38.6	$ 10.5

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Commitments And Contingencies (Notes)

3 Months Ended

Mar. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

4. COMMITMENTS AND CONTINGENCIES

Environmental Proceedings

Our operations are subject to environmental laws and regulations governing air emissions, wastewater discharges, the handling, disposal and remediation of hazardous substances and wastes and employee health and safety. These laws can impose joint and several liabilities for releases or threatened releases of hazardous substances upon statutorily defined parties, including us, regardless of fault or the lawfulness of the original activity or disposal. Given the changing nature of environmental legal requirements, we may be required, from time to time, to take environmental control measures at some of our facilities to meet future requirements.

We have been named as a potentially responsible party in certain proceedings initiated pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act and similar stated statutes and may be named a potentially responsible party in other similar proceedings in the future. It is not anticipated that the costs incurred in connection with the presently pending proceedings will, individually or in the aggregate, have a material adverse effect on our financial position, results of operations or cash flows.

We are performing operations and maintenance at two Superfund sites for matters arising out of past waste disposal activity associated with closed facilities. We are also under orders to perform environmental remediation by agencies in four states and one non-U.S. country at seven sites.

Our reserves for environmental remediation liabilities totaled $35.0 and $35.3 at March 31, 2014 and December 31, 2013, respectively, and have been classified as “Other long-term liabilities” and “Accrued liabilities” in the Consolidated Balance Sheet. Of the environmental liabilities recorded at March 31, 2014 and December 31, 2013, $6.0 and $6.3, respectively, are indemnified by Corus Group Ltd.

In addition to environmental liabilities, we have recorded asset retirement obligations associated with legal requirements related primarily to the normal operation of our landfills and the retirement of the related assets. Our total asset retirement obligations were $12.4 at March 31, 2014 and December 31, 2013. The amounts represent the most probable costs of remedial actions. We estimate the costs related to currently identified remedial actions will be paid out primarily over the next 10 years.

Legal Proceedings

We are party to routine litigation and proceedings as part of the ordinary course of business and do not believe that the outcome of any existing proceedings would have a material adverse effect on our financial position, results of operations or cash flows. We have established accruals for those loss contingencies, including litigation and environmental contingencies, for which it has been determined that a loss is probable; none of such loss contingencies is material. For those loss contingencies, including litigation and environmental contingencies, which have been determined to be reasonably possible, an estimate of the possible loss or range of loss cannot be determined because the claims, amount claimed, facts or legal status are not sufficiently developed or advanced in order to make such a determination. While we cannot estimate the loss or range of loss at this time, we do not believe that the outcome of any of these existing proceedings would be material to our financial position, results of operations or cash flows.

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Derivative And Other Financial Instruments (Schedule of Derivative Instruments in Balance Sheet by Contract Type) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Derivatives, Fair Value [Line Items]
Prepaid expense and other assets, current	$ 28.6	$ 31.5
Other long-term assets	65.9	67.5
Total Asset Derivatives	0.7	1.4
Accrued liabilities	197.2	200.9
Other long-term liabilities	77.6	79.3
Total Liability Derivatives	13.4	4.7
Metal
Derivatives, Fair Value [Line Items]
Prepaid expense and other assets, current	0	1.0
Other long-term assets	0.1	0
Accrued liabilities	9.9	1.7
Other long-term liabilities	3.5	3.0
Natural Gas
Derivatives, Fair Value [Line Items]
Prepaid expense and other assets, current	$ 0.6	$ 0.4

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Long-Term Debt (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Other Long-term Debt	$ 16.0	$ 14.4
Long-term debt	1,248.3	1,237.4
Current portion of long-term debt	10.1	8.3
Total long-term debt	1,238.2	1,229.1
Line of Credit | ABL Facility
Debt Instrument [Line Items]
Long-term Line of Credit	10.0	0
Senior Notes | 7 5/8% Senior Notes
Debt Instrument [Line Items]
Senior Notes	494.5	494.1
Debt discount	5.5	5.9
Stated interest rate	7.625%
Senior Notes | 7 7/8% Senior Notes
Debt Instrument [Line Items]
Senior Notes	492.8	492.5
Debt discount	7.2	7.5
Stated interest rate	7.875%
Senior Subordinated Notes | Senior Subordinated Exchangeable Notes
Debt Instrument [Line Items]
Debt discount	0.6	0.7
Convertible Subordinated Debt	44.2	44.2
Notes Payable to Banks | Zhenjiang term loans
Debt Instrument [Line Items]
Debt discount	1.0	1.0
Notes Payable to Bank, Noncurrent	$ 190.8	$ 192.2

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Inventories (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Inventory Disclosure [Abstract]
Finished goods	$ 196.1	$ 185.6
Raw materials	248.5	265.9
Work in process	218.4	203.0
Supplies	30.7	28.9
Total inventories	$ 693.7	$ 683.4

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Derivative And Other Financial Instruments (Schedule of Realized (Gains) Losses on Derivatives) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Metal
Derivative Instruments, Loss [Line Items]
Realized (gains) losses on derivative financial instruments	$ (8.3)	$ 0.9
Natural Gas
Derivative Instruments, Loss [Line Items]
Realized (gains) losses on derivative financial instruments	$ (1.5)	$ 0.2

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Commitments And Contingencies (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014 Site Foreign_Countries States	Dec. 31, 2013
Loss Contingencies [Line Items]
Site Contingency, Number of Superfund Sites with Operations and Maintenance	2
Number of States in which Entity Performs Environmental Remediation	4
Number of Foreign Countries with Environmental Remediations	1
Number of Sites with Environmental Remediations	7
Portion of environmental liabilities indemnified by Corus Group Ltd.	$ 6.0	$ 6.3
Asset retirement obligations	12.4	12.4
Asset Retirement Obligation, Description, Estimated Timeframe of Disbursements	10 years
Other Long-Term Liabilities and Accrued Liabilities
Loss Contingencies [Line Items]
Accrual for Environmental Loss Contingencies	$ 35.0	$ 35.3

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Stockholders' Equity and Redeemable Noncontrolling Interest (Schedule of Stockholders' Equity) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Increase (Decrease) in Stockholders' Equity Disclosure [Roll Forward]
Aleris Corporation equity	$ 368.4
Noncontrolling interest	0.3
Total Equity at January 1, 2014	368.7
Net (loss) income attributable to Aleris Corporation	(17.6)	10.9
Net income attributable to noncontrolling interest	0.3	0.4
Net (loss) income	(17.3)	11.3
Other Comprehensive Loss, Net of Tax	(2.1)
Stock-based compensation activity	3.9
Stockholders' Equity, Other	0
Aleris Corporation equity	352.6
Noncontrolling interest	0.6
Total Equity at March 31, 2014	353.2
Aleris Corporation
Increase (Decrease) in Stockholders' Equity Disclosure [Roll Forward]
Aleris Corporation equity	368.4
Net (loss) income attributable to Aleris Corporation	(17.6)
Other Comprehensive Loss, Net of Tax	(2.1)
Stock-based compensation activity	3.9
Stockholders' Equity, Other	0
Aleris Corporation equity	352.6
Noncontrolling Interest
Increase (Decrease) in Stockholders' Equity Disclosure [Roll Forward]
Noncontrolling interest	0.3
Net income attributable to noncontrolling interest	0.3
Other Comprehensive Loss, Net of Tax	0
Stock-based compensation activity	0
Stockholders' Equity, Other	0
Noncontrolling interest	0.6
Redeemable Noncontrolling Interest
Increase (Decrease) in Stockholders' Equity Disclosure [Roll Forward]
Redeemable Noncontrolling Interest, Equity, Carrying Amount	5.7
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest	0
Other Comprehensive Loss, Net of Tax	0
Stock-based compensation activity	0
Stockholders' Equity, Other	(0.1)
Redeemable Noncontrolling Interest, Equity, Carrying Amount	$ 5.6

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Long-Term Debt (Notes)

3 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

Long-Term Debt

3. LONG-TERM DEBT

Our debt as of March 31, 2014 and December 31, 2013 is summarized as follows:

	March 31, 2014		December 31, 2013
ABL facility	$	10.0	$	—
7 5/8% senior notes due 2018, net of discount of $5.5 and $5.9 at March 31, 2014 and December 31, 2013, respectively	494.5		494.1
7 7/8% senior notes due 2020, net of discount of $7.2 and $7.5 at March 31, 2014 and December 31, 2013, respectively	492.8		492.5
Exchangeable notes, net of discount of $0.6 and $0.7 at March 31, 2014 and December 31, 2013, respectively	44.2		44.2
Zhenjiang term loans, net of discount of $1.0 at March 31, 2014 and December 31, 2013	190.8		192.2
Other	16.0		14.4
Total debt	1,248.3		1,237.4
Less: Current portion of long-term debt	10.1		8.3
Total long-term debt	$	1,238.2	$	1,229.1

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Stockholders' Equity and Redeemable Noncontrolling Interest (Changes in the Number of Outstanding Common Stock) (Details)	3 Months Ended
	Mar. 31, 2014
Outstanding Shares of Common Stock [Roll Forward]
Common Stock, Shares, Outstanding at beginning of period	31,229,064
Stock Issued During Period, Shares, Conversion of Convertible Securities	1,207
Common Stock, Shares, Outstanding at end of period	31,245,325
Stock Options
Outstanding Shares of Common Stock [Roll Forward]
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures	3,434
Restricted Stock
Outstanding Shares of Common Stock [Roll Forward]
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures	11,620

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Employee Benefit Plans (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
U.S. Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 0.8	$ 0.9
Interest cost	1.8	1.6
Amortization of net actuarial loss (gain)	0	0.4
Expected return on plan assets	(2.6)	(2.3)
Net periodic benefit expense	0	0.6
European Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	1.0	1.0
Interest cost	1.9	1.7
Amortization of net actuarial loss (gain)	0.3	0.4
Expected return on plan assets	0	0
Net periodic benefit expense	3.2	3.1
Other Postretirement Benefit Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	0	0.1
Interest cost	0.5	0.4
Amortization of net actuarial loss (gain)	(0.1)	0.1
Net periodic benefit expense	$ 0.4	$ 0.6

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Consolidated Balance Sheet (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Current Assets
Cash and cash equivalents	$ 51.3	$ 60.1
Accounts receivable, net	460.1	376.9
Inventories	693.7	683.4
Deferred income taxes	7.1	7.1
Prepaid expense and other assets, current	28.6	31.5
Total Current Assets	1,240.8	1,159.0
Property, plant and equipment, net	1,144.5	1,157.7
Intangible assets, net	43.0	43.5
Deferred income taxes	45.2	45.2
Other long-term assets	65.9	67.5
Total Assets	2,539.4	2,472.9
Current Liabilities
Accounts payable	381.3	303.2
Accrued liabilities	197.2	200.9
Deferred income taxes	3.9	3.9
Current portion of long-term debt	10.1	8.3
Total Current Liabilities	592.5	516.3
Long-term debt	1,238.2	1,229.1
Deferred income taxes	4.8	4.4
Accrued pension benefits	226.8	228.5
Accrued postretirement benefits	40.7	40.9
Other long-term liabilities	77.6	79.3
Total Long-Term Liabilities	1,588.1	1,582.2
Redeemable noncontrolling interest	5.6	5.7
Common stock; par value $.01; 45,000,000 shares authorized and 31,245,325 and 31,229,064 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively	0.3	0.3
Preferred stock; par value $.01; 1,000,000 shares authorized; none issued	0	0
Additional paid-in capital	405.9	401.9
Retained deficit	(65.3)	(47.6)
Accumulated other comprehensive income	11.7	13.8
Total Aleris Corporation Equity	352.6	368.4
Noncontrolling interest	0.6	0.3
Total Equity	353.2	368.7
Total Liabilities and Equity	$ 2,539.4	$ 2,472.9

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Derivative And Other Financial Instruments (Schedule of Fair Value for Assets and Liabilities Measured on Recurring Basis) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	$ 7.6	$ 13.7
Derivative Liability, Fair Value, Gross Liability	20.3	17.0
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	51.3	60.1
Lines of Credit	10.0	193.2
Exchangeable Notes	72.7	72.7
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	51.3	60.1
Lines of Credit	0
Exchangeable Notes	0	0
Zhenjiang term loan		0
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	0	0
Lines of Credit	10.0
Exchangeable Notes	0	0
Zhenjiang term loan		0
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	0	0
Lines of Credit	0
Exchangeable Notes	72.7	72.7
Zhenjiang term loan		193.2
Recurring Basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	7.6	13.7
Derivative Liability, Fair Value, Gross Liability	20.3	17.0
Derivative, Fair Value, Net	(12.7)	(3.3)
Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	0	0
Derivative Liability, Fair Value, Gross Liability	0	0
Derivative, Fair Value, Net	0	0
Recurring Basis | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	7.6	13.7
Derivative Liability, Fair Value, Gross Liability	20.3	17.0
Derivative, Fair Value, Net	(12.7)	(3.3)
Recurring Basis | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	0	0
Derivative Liability, Fair Value, Gross Liability	0	0
Derivative, Fair Value, Net	0	0
7 5/8% Senior Notes | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes Payable, Fair Value Disclosure	516.2	530.0
7 5/8% Senior Notes | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes Payable, Fair Value Disclosure	516.2	530.0
7 5/8% Senior Notes | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes Payable, Fair Value Disclosure	0	0
7 5/8% Senior Notes | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes Payable, Fair Value Disclosure	0	0
7 7/8% Senior Notes | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes Payable, Fair Value Disclosure	515.0	531.3
7 7/8% Senior Notes | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes Payable, Fair Value Disclosure	515.0	531.3
7 7/8% Senior Notes | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes Payable, Fair Value Disclosure	0	0
7 7/8% Senior Notes | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes Payable, Fair Value Disclosure	0	0
Zhenjiang term loans | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Zhenjiang term loan	191.8
Zhenjiang term loans | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Zhenjiang term loan	0
Zhenjiang term loans | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Zhenjiang term loan	0
Zhenjiang term loans | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Zhenjiang term loan	191.8
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	51.3	60.1
Lines of Credit	10.0	0
Exchangeable Notes	72.7	72.7
Fair Value | 7 5/8% Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes Payable, Fair Value Disclosure	516.2	530.0
Fair Value | 7 7/8% Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes Payable, Fair Value Disclosure	515.0	531.3
Fair Value | Zhenjiang term loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Zhenjiang term loan	191.8	193.2
Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	51.3	60.1
Lines of Credit	10.0	0
Exchangeable Notes	44.2	44.2
Carrying Amount | 7 5/8% Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes Payable, Fair Value Disclosure	494.5	494.1
Carrying Amount | 7 7/8% Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes Payable, Fair Value Disclosure	492.8	492.5
Carrying Amount | Zhenjiang term loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Zhenjiang term loan	$ 190.8	$ 192.2

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Basis Of Presentation (Notes)

3 Months Ended

Mar. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis Of Presentation

1. BASIS OF PRESENTATION

The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The operating results for interim periods contained herein are not necessarily indicative of the results that may be expected for any other interim period or for the full year. The accompanying Consolidated Financial Statements include the accounts of Aleris Corporation and all of its subsidiaries (collectively, except where the context otherwise requires, referred to as “Aleris,” “we,” “us,” “our,” “Company” or similar terms). Aleris Corporation is a holding company and currently conducts its business and operations through its direct wholly owned subsidiary, Aleris International, Inc. and its consolidated subsidiaries. Aleris International, Inc. is referred to herein as “Aleris International.”

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Segment Information (Schedule of Revenues and Segment Income) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Revenue to external customers	$ 1,054.2	$ 1,110.1
Segment income	81.3	78.4
RPNA
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Revenue to external customers	261.3	314.3
Segment income	26.9	23.5
RPEU
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Revenue to external customers	354.8	369.2
Segment income	38.1	38.5
RPAP
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Revenue to external customers	10.0	0.7
Segment income	0	(0.3)
Extrusions
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Revenue to external customers	93.3	89.0
Segment income	3.0	3.0
RSAA
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Revenue to external customers	235.2	238.4
Segment income	9.0	10.4
RSEU
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Revenue to external customers	143.3	155.7
Segment income	4.3	3.3
External Customers [Member]
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Revenue to external customers	1,054.2	1,110.1
External Customers [Member] | RPNA
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Revenue to external customers	260.9	313.7
External Customers [Member] | RPEU
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Revenue to external customers	323.2	327.0
External Customers [Member] | RPAP
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Revenue to external customers	6.9	0.7
External Customers [Member] | Extrusions
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Revenue to external customers	91.4	86.7
External Customers [Member] | RSAA
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Revenue to external customers	233.7	236.2
External Customers [Member] | RSEU
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Revenue to external customers	138.1	145.8
Intersegment Eliminations
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Revenue to external customers	0	0
Intersegment Eliminations | RPNA
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Revenue to external customers	0.4	0.6
Intersegment Eliminations | RPEU
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Revenue to external customers	31.6	42.2
Intersegment Eliminations | RPAP
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Revenue to external customers	3.1	0
Intersegment Eliminations | Extrusions
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Revenue to external customers	1.9	2.3
Intersegment Eliminations | RSAA
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Revenue to external customers	1.5	2.2
Intersegment Eliminations | RSEU
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Revenue to external customers	5.2	9.9
Intersegment Eliminations | Intersegment Eliminations
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Revenue to external customers	$ (43.7)	$ (57.2)

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Stockholders' Equity and Redeemable Noncontrolling Interest (Tables)

3 Months Ended

Mar. 31, 2014

Stockholders' Equity Note [Abstract]

Schedule of Stockholders Equity

The following table summarizes the activity within stockholders’ equity and redeemable noncontrolling interest for the three months endedMarch 31, 2014:

	Aleris Corporation equity			Noncontrolling interest		Total equity			Redeemable noncontrolling interest
Total equity at January 1, 2014	$	368.4		$	0.3	$	368.7		$	5.7
Net (loss) income	(17.6		)	0.3		(17.3		)	—
Other comprehensive loss	(2.1		)	—		(2.1		)	—
Stock-based compensation activity	3.9			—		3.9			—
Other	—			—		—			(0.1		)
Total equity at March 31, 2014	$	352.6		$	0.6	$	353.2		$	5.6

Changes in the Number of Outstanding Common Shares

The following table shows changes in the number of our outstanding shares of common stock:

	Outstanding shares of common stock
Balance at January 1, 2014	31,229,064
Issuance associated with options exercised	3,434
Issuance associated with vested restricted stock units	11,620
Issuance upon conversion of exchangeable notes	1,207
Balance at March 31, 2014	31,245,325

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Segment Information (Reconciliation of Segment Income to Consolidated Statements of Comprehensive Income) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Segment Reporting Information [Line Items]
Total segment income	$ 81.3	$ 78.4
Depreciation and amortization	(33.2)	(27.2)
Restructuring charges	(0.5)	(0.9)
Interest expense, net	26.3	21.0
Unallocated (losses) gains on derivative financial instruments	0.5	9.1
(Loss) income before income taxes	(13.0)	17.6
Unallocated Amounts
Segment Reporting Information [Line Items]
Depreciation and amortization	(33.2)	(27.2)
Corporate general and administrative expense, excluding depreciation, amortization and start-up expenses	(15.0)	(11.3)
Restructuring charges	(0.5)	(0.9)
Interest expense, net	(26.3)	(21.0)
Unallocated (losses) gains on derivative financial instruments	(9.3)	10.2
Unallocated currency exchange losses	(1.5)	0
Start-up expenses	(8.4)	(11.4)
Other (expense) income, net	$ (0.1)	$ 0.8

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Reconciliation of Revenue from Segments to Consolidated

The following table shows our revenues and segment income (loss) for the periods presented in our Consolidated Statements of Comprehensive Loss:

Three months ended March 31, 2014	RPNA		RPEU		RPAP			Extrusions		RSAA		RSEU		Intersegment Revenues			Total
Revenues to external customers	$	260.9	$	323.2	$	6.9		$	91.4	$	233.7	$	138.1				$	1,054.2
Intersegment revenues	0.4		31.6		3.1			1.9		1.5		5.2		$	(43.7	)	—
Total revenues	$	261.3	$	354.8	$	10.0		$	93.3	$	235.2	$	143.3	$	(43.7	)	$	1,054.2
Segment income	$	26.9	$	38.1	$	—		$	3.0	$	9.0	$	4.3				$	81.3
Three months ended March 31, 2013	RPNA		RPEU		RPAP			Extrusions		RSAA		RSEU		Intersegment Revenues			Total
Revenues to external customers	$	313.7	$	327.0	$	0.7		$	86.7	$	236.2	$	145.8				$	1,110.1
Intersegment revenues	0.6		42.2		—			2.3		2.2		9.9		$	(57.2	)	—
Total revenues	$	314.3	$	369.2	$	0.7		$	89.0	$	238.4	$	155.7	$	(57.2	)	$	1,110.1
Segment income (loss)	$	23.5	$	38.5	$	(0.3	)	$	3.0	$	10.4	$	3.3				$	78.4

Schedule of Segment Reporting Information, by Segment

The following table reconciles total segment income to “(Loss) income before income taxes” as reported in our Consolidated Statements of Comprehensive Loss:

	For the three months ended
	March 31, 2014			March 31, 2013
Total segment income	$	81.3		$	78.4
Unallocated amounts:
Depreciation and amortization	(33.2		)	(27.2		)
Corporate general and administrative expenses, excluding depreciation, amortization, start-up expenses and other expenses	(15.0		)	(11.3		)
Restructuring charges	(0.5		)	(0.9		)
Interest expense, net	(26.3		)	(21.0		)
Unallocated (losses) gains on derivative financial instruments	(9.3		)	10.2
Unallocated currency exchange losses	(1.5		)	—
Start-up expenses	(8.4		)	(11.4		)
Other (expense) income, net	(0.1		)	0.8
(Loss) income before income taxes	$	(13.0	)	$	17.6

Reconciliation of Assets from Segment to Consolidated

The following table shows our reportable segment assets as of March 31, 2014 and December 31, 2013:

	March 31, 2014		December 31, 2013
Assets
RPNA	$	553.0	$	524.7
RPEU	719.6		699.2
RPAP	428.9		439.4
Extrusions	153.7		141.8
RSAA	310.4		294.5
RSEU	198.1		183.7
Unallocated assets	175.7		189.6
Total consolidated assets	$	2,539.4	$	2,472.9

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Inventories (Notes)

3 Months Ended

Mar. 31, 2014

Inventory Disclosure [Abstract]

Inventories

2. INVENTORIES

The components of our “Inventories” as of March 31, 2014 and December 31, 2013 are as follows:

	March 31, 2014		December 31, 2013
Finished goods	$	196.1	$	185.6
Raw materials	248.5		265.9
Work in process	218.4		203.0
Supplies	30.7		28.9
Total inventories	$	693.7	$	683.4

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Consolidated Balance Sheet (Parenthetical) (USD $) In Millions, except Share data, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 9.8	$ 7.7
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	45,000,000	45,000,000
Common stock, shares issued	31,245,325	31,229,064
Redeemable preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Redeemable preferred stock, shares authorized	1,000,000	1,000,000
Redeemable preferred stock, shares issued	0	0

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Condensed Consolidating Financial Statements (Notes)

3 Months Ended

Mar. 31, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Financial Statements

12. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

On February 9, 2011 and October 23, 2012, Aleris International issued the 7 ⁵/8% senior notes and the 7 ⁷/8% senior notes (collectively, the “Senior Notes”), respectively. Aleris Corporation, the direct parent of Aleris International, and certain of its subsidiaries (collectively, the “Guarantor Subsidiaries”) are guarantors of the indebtedness under the Senior Notes. Aleris Corporation and each of the Guarantor Subsidiaries have fully and unconditionally guaranteed (subject, in the case of the Guarantor Subsidiaries, to customary release provisions as described below), on a joint and several basis, to pay principal and interest related to the Senior Notes and Aleris International and each of the Guarantor Subsidiaries are directly or indirectly 100% owned subsidiaries of Aleris Corporation. For purposes of complying with the reporting requirements of Aleris International and the Guarantor Subsidiaries, presented below are condensed consolidating financial statements of Aleris Corporation, Aleris International, the Guarantor Subsidiaries, and those other subsidiaries of Aleris Corporation that are not guaranteeing the indebtedness under the Senior Notes (the “Non-Guarantor Subsidiaries”). The condensed consolidating balance sheets are presented as of March 31, 2014 and December 31, 2013. The condensed consolidating statements of comprehensive (loss) income are presented for the three months endedMarch 31, 2014 and 2013. The condensed consolidating statements of cash flows are presented for the three months endedMarch 31, 2014 and 2013.

The guarantee of a Guarantor Subsidiary will be automatically and unconditionally released and discharged in the event of:

▪ any sale of the Guarantor Subsidiary or of all or substantially all of its assets;

▪ a Guarantor Subsidiary being designated as an “unrestricted subsidiary” in accordance with the indentures governing the Senior Notes;

▪ the release or discharge of a Guarantor Subsidiary from its guarantee under the ABL facility or other indebtedness that resulted in the obligation of the Guarantor Subsidiary under the indentures governing the Senior Notes; and

▪ the requirements for legal defeasance or covenant defeasance or discharge of the indentures governing the Senior Notes having been satisfied.

The condensed consolidating statements of cash flows for the three months endedMarch 31, 2013 have been restated to revise the presentation of cash flows related to intercompany loans. The revisions significantly changed the classification of certain intercompany cash flows as operating, investing and financing activities; however, there was no change in the total net cash flows of Aleris Corporation, Aleris International, Inc. or the Guarantor Subsidiaries. There was no impact to the condensed consolidating statements of comprehensive (loss) income or to the consolidated financial statements for the three months endedMarch 31, 2013 as a result of these presentation changes.

	As of March 31, 2014
	Aleris Corporation (Parent)		Aleris International, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current Assets
Cash and cash equivalents	$	—	$	—	$	—	$	51.4	$	(0.1	)	$	51.3
Accounts receivable, net	—		—		149.7		310.4		—			460.1
Inventories	—		—		263.6		430.1		—			693.7
Deferred income taxes	—		—		0.2		6.9		—			7.1
Prepaid expenses and other current assets	—		0.5		13.9		14.2		—			28.6
Intercompany receivables	—		481.7		463.0		215.6		(1,160.3		)	—
Total Current Assets	—		482.2		890.4		1,028.6		(1,160.4		)	1,240.8
Property, plant and equipment, net	—		—		370.9		773.6		—			1,144.5
Intangible assets, net	—		—		27.1		15.9		—			43.0
Deferred income taxes	—		—		—		45.2		—			45.2
Other long-term assets	—		11.4		4.2		50.3		—			65.9
Intercompany receivables	—		3.6		—		—		(3.6		)	—
Investments in subsidiaries	356.2		1,491.0		118.3		—		(1,965.5		)	—
Total Assets	$	356.2	$	1,988.2	$	1,410.9	$	1,913.6	$	(3,129.5	)	$	2,539.4
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	—	$	2.0	$	147.2	$	232.2	$	(0.1	)	$	381.3
Accrued liabilities	—		21.3		65.2		110.7		—			197.2
Deferred income taxes	—		—		—		3.9		—			3.9
Current portion of long-term debt	—		—		0.5		9.6		—			10.1
Intercompany payables	—		561.6		488.0		110.7		(1,160.3		)	—
Total Current Liabilities	—		584.9		700.9		467.1		(1,160.4		)	592.5
Long-term debt	—		1,041.5		0.7		196.0		—			1,238.2
Deferred income taxes	—		—		0.2		4.6		—			4.8
Accrued pension benefits	—		—		31.5		195.3		—			226.8
Accrued postretirement benefits	—		—		40.7		—		—			40.7
Other long-term liabilities	—		—		32.8		44.8		—			77.6
Intercompany payables	3.6		—		—		—		(3.6		)	—
Total Long-Term Liabilities	3.6		1,041.5		105.9		440.7		(3.6		)	1,588.1
Redeemable noncontrolling interest	—		5.6		—		—		—			5.6
Total equity	352.6		356.2		604.1		1,005.2		(1,965.5		)	352.6
Noncontrolling interest	—		—		—		0.6		—			0.6
Total Liabilities and Equity	$	356.2	$	1,988.2	$	1,410.9	$	1,913.6	$	(3,129.5	)	$	2,539.4

	As of December 31, 2013
	Aleris Corporation (Parent)		Aleris International, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current Assets
Cash and cash equivalents	$	—	$	3.7	$	—	$	58.9	$	(2.5	)	$	60.1
Accounts receivable, net	—		—		125.7		251.2		—			376.9
Inventories	—		—		245.1		438.3		—			683.4
Deferred income taxes	—		—		0.2		6.9		—			7.1
Prepaid expenses and other current assets	—		0.5		16.1		14.9		—			31.5
Intercompany receivables	—		362.4		378.3		192.4		(933.1		)	—
Total Current Assets	—		366.6		765.4		962.6		(935.6		)	1,159.0
Property, plant and equipment, net	—		—		377.8		779.9		—			1,157.7
Intangible assets, net	—		—		27.6		15.9		—			43.5
Deferred income taxes	—		—		—		45.2		—			45.2
Other long-term assets	—		12.3		3.3		51.9		—			67.5
Intercompany receivables	—		3.4		—		—		(3.4		)	—
Investments in subsidiaries	371.8		1,510.6		117.7		—		(2,000.1		)	—
Total Assets	$	371.8	$	1,892.9	$	1,291.8	$	1,855.5	$	(2,939.1	)	$	2,472.9
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	—	$	0.4	$	117.1	$	188.2	$	(2.5	)	$	303.2
Accrued liabilities	—		21.7		67.0		112.2		—			200.9
Deferred income taxes	—		—		—		3.9		—			3.9
Current portion of long-term debt	—		—		0.5		7.8		—			8.3
Intercompany payables	—		462.4		371.7		99.0		(933.1		)	—
Total Current Liabilities	—		484.5		556.3		411.1		(935.6		)	516.3
Long-term debt	—		1,030.9		0.8		197.4		—			1,229.1
Deferred income taxes	—		—		0.2		4.2		—			4.4
Accrued pension benefits	—		—		33.8		194.7		—			228.5
Accrued postretirement benefits	—		—		40.9		—		—			40.9
Other long-term liabilities	—		—		32.7		46.6		—			79.3
Intercompany payables	3.4		—		—		—		(3.4		)	—
Total Long-Term Liabilities	3.4		1,030.9		108.4		442.9		(3.4		)	1,582.2
Redeemable noncontrolling interest	—		5.7		—		—		—			5.7
Total equity	368.4		371.8		627.1		1,001.2		(2,000.1		)	368.4
Noncontrolling interest	—		—		—		0.3		—			0.3
Total Liabilities and Equity	$	371.8	$	1,892.9	$	1,291.8	$	1,855.5	$	(2,939.1	)	$	2,472.9

	For the three months ended March 31, 2014
	Aleris Corporation (Parent)			Aleris International, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	—		$	439.7		$	617.5		$	(3.0	)	$	1,054.2
Cost of sales	—			—			416.9			565.2			(3.0		)	979.1
Gross profit	—			—			22.8			52.3			—			75.1
Selling, general and administrative expenses	—			—			30.2			31.7			—			61.9
Restructuring charges (gains)	—			—			0.7			(0.2		)	—			0.5
(Gains) losses on derivative financial instruments	—			—			(3.7		)	3.2			—			(0.5		)
Other operating expense (income), net	—			—			0.5			(0.2		)	—			0.3
Operating (loss) income	—			—			(4.9		)	17.8			—			12.9
Interest expense, net	—			—			22.3			4.0			—			26.3
Other (income) expense, net	—			—			(3.7		)	3.3			—			(0.4		)
Equity in net loss (earnings) of affiliates	17.6			17.6			(0.6		)	—			(34.6		)	—
(Loss) income before income taxes	(17.6		)	(17.6		)	(22.9		)	10.5			34.6			(13.0		)
Provision for income taxes	—			—			—			4.3			—			4.3
Net (loss) income	(17.6		)	(17.6		)	(22.9		)	6.2			34.6			(17.3		)
Net income attributable to noncontrolling interest	—			—			—			0.3			—			0.3
Net (loss) income attributable to Aleris Corporation	$	(17.6	)	$	(17.6	)	$	(22.9	)	$	5.9		$	34.6		$	(17.6	)
Comprehensive (loss) income	$	(19.6	)	$	(19.6	)	$	(23.0	)	$	4.3		$	38.6		$	(19.3	)
Comprehensive income attributable to noncontrolling interest	—			—			—			0.3			—			0.3
Comprehensive (loss) income attributable to Aleris Corporation	$	(19.6	)	$	(19.6	)	$	(23.0	)	$	4.0		$	38.6		$	(19.6	)

	For the three months ended March 31, 2013
	Aleris Corporation (Parent)			Aleris International, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	—		$	507.9		$	603.9		$	(1.7	)	$	1,110.1
Cost of sales	—			—			475.4			547.4			(1.7		)	1,021.1
Gross profit	—			—			32.5			56.5			—			89.0
Selling, general and administrative expenses	—			—			27.9			33.7			—			61.6
Restructuring charges (gains)	—			—			1.2			(0.3		)	—			0.9
Gains on derivative financial instruments	—			—			(8.5		)	(0.6		)	—			(9.1		)
Other operating expense, net	—			—			—			(1.1		)	—			(1.1		)
Operating income	—			—			11.9			24.8			—			36.7
Interest expense (income), net	—			—			22.1			(1.1		)	—			21.0
Other income, net	—			—			(0.8		)	(1.1		)	—			(1.9		)
Equity in net earnings of affiliates	(10.9		)	(10.9		)	(0.5		)	—			22.3			—
Income (loss) before income taxes	10.9			10.9			(8.9		)	27.0			(22.3		)	17.6
Provision for income taxes	—			—			—			6.3			—			6.3
Net income (loss)	10.9			10.9			(8.9		)	20.7			(22.3		)	11.3
Net income attributable to noncontrolling interest	—			—			—			0.4			—			0.4
Net income (loss) attributable to Aleris Corporation	$	10.9		$	10.9		$	(8.9	)	$	20.3		$	(22.3	)	$	10.9
Comprehensive (loss) income	$	(5.8	)	$	(5.8	)	$	(7.9	)	$	3.6		$	10.5		$	(5.4	)
Comprehensive income attributable to noncontrolling interest	—			—			—			0.4			—			0.4
Comprehensive (loss) income attributable to Aleris Corporation	$	(5.8	)	$	(5.8	)	$	(7.9	)	$	3.2		$	10.5		$	(5.8	)

	For the three months ended March 31, 2014
	Aleris Corporation (Parent)			Aleris International, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided (used) by operating activities	$	0.2		$	(18.6	)	$	19.2		$	24.6		$	2.4		$	27.8
Investing activities
Payments for property, plant and equipment	—			—			(19.0		)	(28.5		)	—			(47.5		)
Disbursements of intercompany loans	—			(15.0		)	(2.2		)	(15.0		)	32.2			—
Repayments from intercompany loans	—			5.0			2.5			—			(7.5		)	—
Other	—			—			(0.3		)	0.8			—			0.5
Net cash used by investing activities	—			(10.0		)	(19.0		)	(42.7		)	24.7			(47.0		)
Financing activities
Proceeds from the ABL facility	—			25.0			—			15.0			—			40.0
Payments on the ABL facility	—			(15.0		)	—			(15.0		)	—			(30.0		)
Net (payments on) proceeds from other long-term debt	—			—			(0.2		)	0.9			—			0.7
Proceeds from intercompany loans	—			15.0			—			17.2			(32.2		)	—
Repayments on intercompany loans	—			—			—			(7.5		)	7.5			—
Other	(0.2		)	(0.1		)	—			—			—			(0.3		)
Net cash (used) provided by financing activities	(0.2		)	24.9			(0.2		)	10.6			(24.7		)	10.4
Effect of exchange rate differences on cash and cash equivalents	—			—			—			—			—			—
Net decrease in cash and cash equivalents	—			(3.7		)	—			(7.5		)	2.4			(8.8		)
Cash and cash equivalents at beginning of period	—			3.7			—			58.9			(2.5		)	60.1
Cash and cash equivalents at end of period	$	—		$	—		$	—		$	51.4		$	(0.1	)	$	51.3

	For the three months ended March 31, 2013
	Aleris Corporation (Parent)			Aleris International, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided (used) by operating activities	$	2.0		$	(38.2	)	$	38.6		$	(57.5	)	$	(0.5	)	$	(55.6	)
Investing activities
Payments for property, plant and equipment	—			—			(19.6		)	(77.3		)	—			(96.9		)
Disbursements of intercompany loans	—			—			(24.6		)	—			24.6			—
Repayments from intercompany loans	—			—			5.5			—			(5.5		)	—
Equity contributions in subsidiaries	—			(60.0		)	(3.1		)	—			63.1			—
Other	—			—			0.1			1.5			—			1.6
Net cash used by investing activities	—			(60.0		)	(41.7		)	(75.8		)	82.2			(95.3		)
Financing activities
Proceeds from Zhenjiang term loans	—			—			—			0.2			—			0.2
Net proceeds from other long-term debt	—			—			—			0.6			—			0.6
Proceeds from intercompany loans	—			—			—			24.6			(24.6		)	—
Repayments on intercompany loans	—			—			—			(5.5		)	5.5			—
Proceeds from intercompany equity contributions	—			—			3.1			60.0			(63.1		)	—
Other	(2.0		)	(0.3		)	—			—			—			(2.3		)
Net cash (used) provided by financing activities	(2.0		)	(0.3		)	3.1			79.9			(82.2		)	(1.5		)
Effect of exchange rate differences on cash and cash equivalents	—			—			—			(1.2		)	—			(1.2		)
Net decrease in cash and cash equivalents	—			(98.5		)	—			(54.6		)	(0.5		)	(153.6		)
Cash and cash equivalents at beginning of period	—			472.4			—			121.6			(1.1		)	592.9
Cash and cash equivalents at end of period	$	—		$	373.9		$	—		$	67.0		$	(1.6	)	$	439.3

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Document And Entity Information	3 Months Ended
	Mar. 31, 2014
Document And Entity Information [Abstract]
Entity Registrant Name	Aleris Corporation
Entity Central Index Key	0001518587
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding	31,245,325

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Subsequent Events (Notes)

3 Months Ended

Mar. 31, 2014

Subsequent Events [Abstract]

Subsequent Event

13. SUBSEQUENT EVENT

On April 1, 2014, we acquired Nichols Aluminum, LLC (“Nichols”), a wholly owned subsidiary of Quanex Building Products Corporation, and a producer of aluminum sheet for the transportation, building and construction, machinery and equipment, consumer durables and electrical industries in North America for $110.0. The acquisition includes casting and finishing operations at two facilities in Davenport, Iowa, as well as finishing operations in Decatur, Alabama and Lincolnshire, Illinois.

The acquisition will be accounted for as a business combination, with the purchase price being allocated on a preliminary basis using information available in the second quarter of 2014. The operating results of Nichols will be reported within our RPNA segment from the date of acquisition.

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Consolidated Statements of Comprehensive Loss (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Income Statement [Abstract]
Revenues	$ 1,054.2	$ 1,110.1
Cost of sales	979.1	1,021.1
Gross profit	75.1	89.0
Selling, general and administrative expenses	61.9	61.6
Restructuring charges	0.5	0.9
Gains on derivative financial instruments	(0.5)	(9.1)
Other operating expense (income), net	0.3	(1.1)
Operating income	12.9	36.7
Interest expense, net	26.3	21.0
Other income, net	(0.4)	(1.9)
(Loss) income before income taxes	(13.0)	17.6
Provision for income taxes	4.3	6.3
Net (loss) income	(17.3)	11.3
Net income attributable to noncontrolling interest	0.3	0.4
Net (loss) income attributable to Aleris Corporation	(17.6)	10.9
Comprehensive loss	(19.3)	(5.4)
Comprehensive income attributable to noncontrolling interest	0.3	0.4
Comprehensive loss attributable to Aleris Corporation	$ (19.6)	$ (5.8)

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Segment Information (Notes)

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Segment Information

7. SEGMENT INFORMATION

We report six operating segments based on the organizational structure that is used by the chief operating decision maker to evaluate performance, make decisions on resource allocation and for which discrete financial information is available.

The Company’s operating segments are:

▪ Rolled Products North America (“RPNA”);

▪ Rolled Products Europe (“RPEU”);

▪ Rolled Products Asia Pacific (“RPAP”);

▪ Extrusions;

▪ Recycling and Specification Alloys North America (“RSAA”); and

▪ Recycling and Specification Alloys Europe (“RSEU”).

Measurement of Segment Income or Loss and Segment Assets

The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies in the Consolidated Financial Statements for the year ended December 31, 2013. Our measure of profitability for our operating segments is referred to as segment income and loss. Segment income and loss includes gross profits, segment specific realized gains and losses on derivative financial instruments, segment specific other income and expense, segment specific selling, general and administrative (“SG&A”) expense and an allocation of certain regional and global functional SG&A expenses. Segment income and loss excludes provisions for and benefits from income taxes, restructuring items, interest, depreciation and amortization, unrealized and certain realized gains and losses on derivative financial instruments, corporate general and administrative costs, start-up expenses, gains and losses on asset sales, currency exchange gains and losses on debt and certain other gains and losses. Intersegment sales and transfers are recorded at market value. Consolidated cash, net capitalized debt costs, deferred tax assets and assets related to our headquarters offices are not allocated to the segments.

Reportable Segment Information

The following table shows our revenues and segment income (loss) for the periods presented in our Consolidated Statements of Comprehensive Loss:

Three months ended March 31, 2014	RPNA		RPEU		RPAP			Extrusions		RSAA		RSEU		Intersegment Revenues			Total
Revenues to external customers	$	260.9	$	323.2	$	6.9		$	91.4	$	233.7	$	138.1				$	1,054.2
Intersegment revenues	0.4		31.6		3.1			1.9		1.5		5.2		$	(43.7	)	—
Total revenues	$	261.3	$	354.8	$	10.0		$	93.3	$	235.2	$	143.3	$	(43.7	)	$	1,054.2
Segment income	$	26.9	$	38.1	$	—		$	3.0	$	9.0	$	4.3				$	81.3
Three months ended March 31, 2013	RPNA		RPEU		RPAP			Extrusions		RSAA		RSEU		Intersegment Revenues			Total
Revenues to external customers	$	313.7	$	327.0	$	0.7		$	86.7	$	236.2	$	145.8				$	1,110.1
Intersegment revenues	0.6		42.2		—			2.3		2.2		9.9		$	(57.2	)	—
Total revenues	$	314.3	$	369.2	$	0.7		$	89.0	$	238.4	$	155.7	$	(57.2	)	$	1,110.1
Segment income (loss)	$	23.5	$	38.5	$	(0.3	)	$	3.0	$	10.4	$	3.3				$	78.4

The following table reconciles total segment income to “(Loss) income before income taxes” as reported in our Consolidated Statements of Comprehensive Loss:

	For the three months ended
	March 31, 2014			March 31, 2013
Total segment income	$	81.3		$	78.4
Unallocated amounts:
Depreciation and amortization	(33.2		)	(27.2		)
Corporate general and administrative expenses, excluding depreciation, amortization, start-up expenses and other expenses	(15.0		)	(11.3		)
Restructuring charges	(0.5		)	(0.9		)
Interest expense, net	(26.3		)	(21.0		)
Unallocated (losses) gains on derivative financial instruments	(9.3		)	10.2
Unallocated currency exchange losses	(1.5		)	—
Start-up expenses	(8.4		)	(11.4		)
Other (expense) income, net	(0.1		)	0.8
(Loss) income before income taxes	$	(13.0	)	$	17.6

The following table shows our reportable segment assets as of March 31, 2014 and December 31, 2013:

	March 31, 2014		December 31, 2013
Assets
RPNA	$	553.0	$	524.7
RPEU	719.6		699.2
RPAP	428.9		439.4
Extrusions	153.7		141.8
RSAA	310.4		294.5
RSEU	198.1		183.7
Unallocated assets	175.7		189.6
Total consolidated assets	$	2,539.4	$	2,472.9

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Accumulated Other Comprehensive Income (Notes)

3 Months Ended

Mar. 31, 2014

Accumulated Other Comprehesive Income [Abstract]

Accumulated Other Comprehensive Loss

6. ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table summarizes the activity within accumulated other comprehensive income for the three months endedMarch 31, 2014:

	Currency translation			Pension and other postretirement			Total
Balance at January 1, 2014	$	45.8		$	(32.0	)	$	13.8
Current period currency translation adjustments	(2.3		)	—			(2.3		)
Amortization of net actuarial losses	—			0.2			0.2
Balance at March 31, 2014	$	43.5		$	(31.8	)	$	11.7

A summary of reclassifications out of accumulated other comprehensive income for the three months endedMarch 31, 2014 is provided below:

Description of reclassifications out of accumulated other comprehensive income	Amount reclassified
Amortization of defined benefit pension and other postretirement benefit items:
Amortization of net actuarial losses before tax	$	(0.2	)	(a)
Losses reclassified into earnings, net of tax	$	(0.2	)

(a) This component of accumulated other comprehensive income is included in the computation of net periodic benefit expense and net postretirement benefit expense (see Note 10, “Employee Benefit Plans,” for additional detail).

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Accumulated Other Comprehensive Income (Tables)

3 Months Ended

Mar. 31, 2014

Accumulated Other Comprehesive Income [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table summarizes the activity within accumulated other comprehensive income for the three months endedMarch 31, 2014:

	Currency translation			Pension and other postretirement			Total
Balance at January 1, 2014	$	45.8		$	(32.0	)	$	13.8
Current period currency translation adjustments	(2.3		)	—			(2.3		)
Amortization of net actuarial losses	—			0.2			0.2
Balance at March 31, 2014	$	43.5		$	(31.8	)	$	11.7

Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

A summary of reclassifications out of accumulated other comprehensive income for the three months endedMarch 31, 2014 is provided below:

Description of reclassifications out of accumulated other comprehensive income	Amount reclassified
Amortization of defined benefit pension and other postretirement benefit items:
Amortization of net actuarial losses before tax	$	(0.2	)	(a)
Losses reclassified into earnings, net of tax	$	(0.2	)

(a) This component of accumulated other comprehensive income is included in the computation of net periodic benefit expense and net postretirement benefit expense (see Note 10, “Employee Benefit Plans,” for additional detail).

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Basis Of Presentation (Policies)

3 Months Ended

Mar. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.

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Employee Benefit Plans (Notes)

3 Months Ended

Mar. 31, 2014

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

Employee Benefit Plans

10. EMPLOYEE BENEFIT PLANS

Defined Benefit Pension Plans

The components of the net periodic benefit expense are as follows:

	U.S. pension benefits						Non-U.S. pension benefits
	for the three months ended						for the three months ended
	March 31, 2014			March 31, 2013			March 31, 2014		March 31, 2013
Service cost	$	0.8		$	0.9		$	1.0	$	1.0
Interest cost	1.8			1.6			1.9		1.7
Amortization of net actuarial losses	—			0.4			0.3		0.4
Expected return on plan assets	(2.6		)	(2.3		)	—		—
Net periodic benefit expense	$	—		$	0.6		$	3.2	$	3.1

Other Postretirement Benefit Plans

The components of net postretirement benefit expense are as follows:

	For the three months ended
	March 31, 2014			March 31, 2013
Service cost	$	—		$	0.1
Interest cost	0.5			0.4
Amortization of net actuarial (gains) losses	(0.1		)	0.1
Net postretirement benefit expense	$	0.4		$	0.6

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Stock-Based Compensation (Notes)

3 Months Ended

Mar. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

8. STOCK-BASED COMPENSATION

On June 1, 2010, the Board of Directors of Aleris Corporation (the “Board”) approved the Aleris Corporation 2010 Equity Incentive Plan, which has been amended from time to time (the “2010 Equity Plan”). Stock options, restricted stock units and restricted shares have been granted under the 2010 Equity Plan to certain members of management of the Company and non-employee directors. All stock options granted have a life not to exceed ten years and generally vest over a period not to exceed four years. Shares of common stock are issued upon stock option exercises from available shares. The restricted stock units and restricted shares also vest over a period not to exceed four years. A portion of the stock options, as well as a portion of the restricted stock units and restricted shares, may vest upon a change in control event should the event occur prior to full vesting of these awards, depending on the amount of vesting that has already occurred at the time of the event in comparison to the change in our largest stockholders’ overall level of beneficial ownership that results from the event.

During the three months endedMarch 31, 2014, we granted 992,533 stock options and 334,456 restricted stock units to certain members of our senior management and non-employee directors. We recorded compensation expense associated with stock options, restricted stock units and restricted shares of $4.2 and $2.7 during the three months endedMarch 31, 2014 and 2013, respectively.

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Income Taxes (Notes)

3 Months Ended

Mar. 31, 2014

Income Tax Disclosure [Abstract]

Income Taxes

9. INCOME TAXES

Our effective tax rates were (33.1)% and 36.2% for the three months endedMarch 31, 2014 and 2013, respectively. The effective tax rates for the three months endedMarch 31, 2014 and 2013 differed from the federal statutory rate applied to income and losses before income taxes primarily as a result of the mix of income, losses and tax rates between tax jurisdictions and valuation allowances.

We have valuation allowances recorded to reduce certain deferred tax assets to amounts that are more likely than not to be realized. The valuation allowances relate to the potential inability to realize our deferred tax assets associated with amortization and net operating loss carryforwards in the U.S. and depreciation and net operating loss carryforwards in non-U.S. jurisdictions. We intend to maintain our valuation allowances until sufficient positive evidence exists (such as cumulative positive earnings and estimated future taxable income) to support their reversal.

As of March 31, 2014, we had $2.8 of unrecognized tax benefits. The majority of the gross unrecognized tax benefits, if recognized, would affect our annual effective tax rate. We recognize interest and penalties related to uncertain tax positions within the “Provision for income taxes” in the Consolidated Statements of Comprehensive Loss. As of March 31, 2014, we had approximately $0.2 of accrued interest related to uncertain tax positions.

The 2009 through 2013 tax years remain open to examination. During the first quarter of 2013, the IRS commenced an examination of our tax returns for the years ended December 31, 2011 and 2010 that is anticipated to be completed within three months of the reporting date. During the fourth quarter of 2013, a non-U.S. taxing jurisdiction commenced an examination of our tax returns for the tax years ended December 31, 2012, 2011, 2010 and 2009 that is anticipated to be completed within nine months of the reporting date.

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Derivative And Other Financial Instruments (Notes)

3 Months Ended

Mar. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative and Other Financial Instruments

11. DERIVATIVE AND OTHER FINANCIAL INSTRUMENTS

We use forward contracts and options, as well as contractual price escalators, to reduce the risks associated with our metal, natural gas and other supply requirements and certain currency exposures. Generally, we enter into master netting arrangements with our counterparties and offset net derivative positions with the same counterparties against amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral under those arrangements in our Consolidated Balance Sheet. For classification purposes, we record the net fair value of each type of derivative position that is expected to settle in less than one year with each counterparty as a net current asset or liability and each type of long-term position as a net long-term asset or liability. At March 31, 2014 and December 31, 2013, no cash collateral was posted. The amounts shown in the table below represent the gross amounts of recognized assets and liabilities, the amounts offset in the Consolidated Balance Sheet and the net amounts of assets and liabilities presented therein. As of March 31, 2014 and December 31, 2013, there were no amounts subject to an enforceable master netting arrangement or similar agreement that have not been offset in the Consolidated Balance Sheet.

	Fair Value of Derivatives as of
	March 31, 2014						December 31, 2013
Derivatives by Type	Asset			Liability			Asset			Liability
Metal	$	7.0		$	(20.3	)	$	13.3		$	(17.0	)
Natural gas	0.6			—			0.4			—
Total	7.6			(20.3		)	13.7			(17.0		)
Effect of counterparty netting	(6.9		)	6.9			(12.3		)	12.3
Net derivatives as classified in the balance sheet	$	0.7		$	(13.4	)	$	1.4		$	(4.7	)

The fair value of our derivative financial instruments at March 31, 2014 and December 31, 2013 are recorded in the Consolidated Balance Sheet as follows:

Asset Derivatives	Balance Sheet Location	March 31, 2014		December 31, 2013
Metal	Prepaid expenses and other current assets	$	—	$	1.0
	Other long-term assets	0.1		—
Natural gas	Prepaid expenses and other current assets	0.6		0.4
Total		$	0.7	$	1.4
Liability Derivatives	Balance Sheet Location	March 31, 2014		December 31, 2013
Metal	Accrued liabilities	$	9.9	$	1.7
	Other long-term liabilities	3.5		3.0
Total		$	13.4	$	4.7

Derivative contracts are recorded at fair value under Financial Accounting Standards Board Accounting Standards Codification 820, “Fair Value Measurements and Disclosures,” using quoted market prices and significant other observable inputs. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

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

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

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

We endeavor to utilize the best available information in measuring fair value. Where appropriate, valuations are adjusted for various factors such as liquidity, bid/offer spreads, and credit considerations. Such adjustments are generally based on available market evidence and unobservable inputs. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following tables set forth our financial assets and liabilities that are accounted for at fair value on a recurring basis as of March 31, 2014 and December 31, 2013 and the level in the fair value hierarchy:

	Fair value measurements at March 31, 2014 using:
Description	Total carrying value in the Consolidated Balance Sheet			Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)
Derivative assets	$	7.6		$	—	$	7.6		$	—
Derivative liabilities	(20.3		)	—		(20.3		)	—
Net derivative liabilities	$	(12.7	)	$	—	$	(12.7	)	$	—

	Fair value measurements at December 31, 2013 using:
Description	Total carrying value in the Consolidated Balance Sheet			Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)
Derivative assets	$	13.7		$	—	$	13.7		$	—
Derivative liabilities	(17.0		)	—		(17.0		)	—
Net derivative liabilities	$	(3.3	)	$	—	$	(3.3	)	$	—

Both realized and unrealized gains and losses on derivative financial instruments are included within “Gains on derivative financial instruments” in the Consolidated Statements of Comprehensive Loss. Realized (gains) losses on derivative financial instruments totaled the following:

	For the three months ended
	March 31, 2014			March 31, 2013
Metal	$	(8.3	)	$	0.9
Natural gas	(1.5		)	0.2

Metal Hedging

The selling prices of the majority of the orders for our rolled and extruded products are established at the time of order entry or, for certain customers, under long-term contracts. As the related raw materials used to produce these orders are purchased several months or years after the selling prices are fixed, margins are subject to the risk of changes in the purchase price of the raw materials used for these fixed price sales. In order to manage this transactional exposure, LME future or forward purchase contracts are purchased at the time the selling prices are fixed. As metal is purchased to fill these fixed price sales orders, LME future or forward contracts are then sold. We also maintain a significant amount of inventory on-hand to meet anticipated and unpriced future sales. In order to preserve the value of this inventory, LME future or forward contracts are sold at the time inventory is purchased. As sales orders are priced, LME future or forward contracts are purchased. These derivatives generally settle within three months. We can also use call option contracts, which function in a manner similar to the natural gas call option contracts discussed below and put option contracts for managing metal price exposures. Option contracts require the payment of a premium which is recorded as a realized loss upon settlement or expiration of the option contract. Upon settlement of a put option contract, we receive cash and recognize a related gain if the LME closing price is less than the strike price of the put option. If the put option strike price is less than the LME closing price, no amount is paid and the option expires. As of March 31, 2014 and December 31, 2013, we had 0.2 metric tons and 0.2 metric tons of metal buy and sell forward contracts, respectively.

Natural Gas Hedging

To manage our price exposure for natural gas purchases, we fix the future price of a portion of our natural gas requirements by entering into financial hedge agreements. Under these agreements, payments are made or received based on the differential between the monthly closing price on the New York Mercantile Exchange (“NYMEX”) and the contractual hedge price. We can use a combination of call option contracts and put option contracts for managing the exposure to increasing prices while maintaining our ability to benefit from declining prices. Upon settlement of call option contracts, we receive cash and recognize a related gain if the NYMEX closing price exceeds the strike price of the call option. If the call option strike price exceeds the NYMEX closing price, no amount is received and the option expires unexercised. Upon settlement of a put option contract, we pay cash and recognize a related loss if the NYMEX closing price is lower than the strike price of the put option. If the put option strike price is less than the NYMEX closing price, no amount is paid and the option expires unexercised. Option contracts require the payment of a premium which is recorded as a realized loss upon settlement or expiration of the option contract. Natural gas cost can also be managed through the use of cost escalators included in some of our long-term supply contracts with customers, which limits exposure to natural gas price risk. As of March 31, 2014 and December 31, 2013, we had 1.9 trillion and 2.9 trillion of British thermal unit forward buy contracts, respectively.

Currency Exchange Hedging

From time to time, we may enter into currency forwards, futures, call options and similar derivative financial instruments to limit our exposure to fluctuations in currency exchange rates. As of March 31, 2014 and December 31, 2013, no currency call option contracts were outstanding.

Credit Risk

We are exposed to losses in the event of non-performance by the counterparties to the derivative financial instruments discussed above; however, we do not anticipate any non-performance by the counterparties. The counterparties are evaluated for creditworthiness and risk assessment prior to initiating trading activities with the brokers and periodically throughout each year while actively trading.

Other Financial Instruments

The carrying amount and fair values of our other financial instruments at March 31, 2014 and December 31, 2013 are as follows:

	March 31, 2014				December 31, 2013
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents	$	51.3	$	51.3	$	60.1	$	60.1
ABL facility	10.0		10.0		—		—
Exchangeable notes	44.2		72.7		44.2		72.7
7 5/8% senior notes	494.5		516.2		494.1		530.0
7 7/8% senior notes	492.8		515.0		492.5		531.3
Zhenjiang term loans	190.8		191.8		192.2		193.2

The following tables set forth our other financial instruments for which fair value is disclosed and the level in the fair value hierarchy within which the fair value measurements are categorized as of March 31, 2014 and December 31, 2013:

	Fair value measurements at March 31, 2014 using:
Description	Total estimated fair value		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Cash and cash equivalents	$	51.3	$	51.3	$	—	$	—
ABL facility	10.0		—		10.0		—
Exchangeable notes	72.7		—		—		72.7
7 5/8% senior notes	516.2		516.2		—		—
7 7/8% senior notes	515.0		515.0		—		—
Zhenjiang term loans	191.8		—		—		191.8

	Fair value measurements at December 31, 2013 using:
Description	Total estimated fair value		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Cash and cash equivalents	$	60.1	$	60.1	$	—	$	—
Exchangeable notes	72.7		—		—		72.7
7 5/8% senior notes	530.0		530.0		—		—
7 7/8% senior notes	531.3		531.3		—		—
Zhenjiang term loans	193.2		—		—		193.2

The principal amount of the ABL facility approximates fair value because the interest rate paid is variable and there have been no significant changes in the credit risk of Aleris International subsequent to the borrowings. The fair value of Aleris International’s exchangeable notes was estimated using a binomial lattice pricing model based on the fair value of our common stock, a risk-free interest rate of 2.0% as of March 31, 2014 and 2.3% as of December 31, 2013 and expected equity volatility of 55%. Expected equity volatility was determined based on historical stock prices and implied and stated volatilities of our peer companies. The fair values of the 7 ⁵/₈% senior notes and the 7 ⁷/₈% senior notes were estimated using market quotations. The principal amount of the Zhenjiang term loans approximates fair value because the interest rate paid is variable, is set for periods of six months or less and there have been no significant changes in the credit risk of Aleris Zhenjiang subsequent to the inception of the China loan facility.

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Segment Information (Narratives) (Details)	3 Months Ended
	Mar. 31, 2014 Operating_Segment
Segment Reporting [Abstract]
Number of Operating Segments (in segments)	6

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Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

Schedule of Debt

Our debt as of March 31, 2014 and December 31, 2013 is summarized as follows:

	March 31, 2014		December 31, 2013
ABL facility	$	10.0	$	—
7 5/8% senior notes due 2018, net of discount of $5.5 and $5.9 at March 31, 2014 and December 31, 2013, respectively	494.5		494.1
7 7/8% senior notes due 2020, net of discount of $7.2 and $7.5 at March 31, 2014 and December 31, 2013, respectively	492.8		492.5
Exchangeable notes, net of discount of $0.6 and $0.7 at March 31, 2014 and December 31, 2013, respectively	44.2		44.2
Zhenjiang term loans, net of discount of $1.0 at March 31, 2014 and December 31, 2013	190.8		192.2
Other	16.0		14.4
Total debt	1,248.3		1,237.4
Less: Current portion of long-term debt	10.1		8.3
Total long-term debt	$	1,238.2	$	1,229.1

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Derivative And Other Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

The amounts shown in the table below represent the gross amounts of recognized assets and liabilities, the amounts offset in the Consolidated Balance Sheet and the net amounts of assets and liabilities presented therein. As of March 31, 2014 and December 31, 2013, there were no amounts subject to an enforceable master netting arrangement or similar agreement that have not been offset in the Consolidated Balance Sheet.

	Fair Value of Derivatives as of
	March 31, 2014						December 31, 2013
Derivatives by Type	Asset			Liability			Asset			Liability
Metal	$	7.0		$	(20.3	)	$	13.3		$	(17.0	)
Natural gas	0.6			—			0.4			—
Total	7.6			(20.3		)	13.7			(17.0		)
Effect of counterparty netting	(6.9		)	6.9			(12.3		)	12.3
Net derivatives as classified in the balance sheet	$	0.7		$	(13.4	)	$	1.4		$	(4.7	)

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The fair value of our derivative financial instruments at March 31, 2014 and December 31, 2013 are recorded in the Consolidated Balance Sheet as follows:

Asset Derivatives	Balance Sheet Location	March 31, 2014		December 31, 2013
Metal	Prepaid expenses and other current assets	$	—	$	1.0
	Other long-term assets	0.1		—
Natural gas	Prepaid expenses and other current assets	0.6		0.4
Total		$	0.7	$	1.4
Liability Derivatives	Balance Sheet Location	March 31, 2014		December 31, 2013
Metal	Accrued liabilities	$	9.9	$	1.7
	Other long-term liabilities	3.5		3.0
Total		$	13.4	$	4.7

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The carrying amount and fair values of our other financial instruments at March 31, 2014 and December 31, 2013 are as follows:

	March 31, 2014				December 31, 2013
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents	$	51.3	$	51.3	$	60.1	$	60.1
ABL facility	10.0		10.0		—		—
Exchangeable notes	44.2		72.7		44.2		72.7
7 5/8% senior notes	494.5		516.2		494.1		530.0
7 7/8% senior notes	492.8		515.0		492.5		531.3
Zhenjiang term loans	190.8		191.8		192.2		193.2

The following tables set forth our financial assets and liabilities that are accounted for at fair value on a recurring basis as of March 31, 2014 and December 31, 2013 and the level in the fair value hierarchy:

	Fair value measurements at March 31, 2014 using:
Description	Total carrying value in the Consolidated Balance Sheet			Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)
Derivative assets	$	7.6		$	—	$	7.6		$	—
Derivative liabilities	(20.3		)	—		(20.3		)	—
Net derivative liabilities	$	(12.7	)	$	—	$	(12.7	)	$	—

	Fair value measurements at December 31, 2013 using:
Description	Total carrying value in the Consolidated Balance Sheet			Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)
Derivative assets	$	13.7		$	—	$	13.7		$	—
Derivative liabilities	(17.0		)	—		(17.0		)	—
Net derivative liabilities	$	(3.3	)	$	—	$	(3.3	)	$	—

The following tables set forth our other financial instruments for which fair value is disclosed and the level in the fair value hierarchy within which the fair value measurements are categorized as of March 31, 2014 and December 31, 2013:

	Fair value measurements at March 31, 2014 using:
Description	Total estimated fair value		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Cash and cash equivalents	$	51.3	$	51.3	$	—	$	—
ABL facility	10.0		—		10.0		—
Exchangeable notes	72.7		—		—		72.7
7 5/8% senior notes	516.2		516.2		—		—
7 7/8% senior notes	515.0		515.0		—		—
Zhenjiang term loans	191.8		—		—		191.8

	Fair value measurements at December 31, 2013 using:
Description	Total estimated fair value		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Cash and cash equivalents	$	60.1	$	60.1	$	—	$	—
Exchangeable notes	72.7		—		—		72.7
7 5/8% senior notes	530.0		530.0		—		—
7 7/8% senior notes	531.3		531.3		—		—
Zhenjiang term loans	193.2		—		—		193.2

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

Realized (gains) losses on derivative financial instruments totaled the following:

	For the three months ended
	March 31, 2014			March 31, 2013
Metal	$	(8.3	)	$	0.9
Natural gas	(1.5		)	0.2

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Subsequent Events (Details) (Nichols Aluminum, LLC, Subsequent Event, USD $) In Millions, unless otherwise specified	Apr. 01, 2014
Nichols Aluminum, LLC | Subsequent Event
Subsequent Event [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net	$ 110.0

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Derivative And Other Financial Instruments (Narratives) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Derivative [Line Items]
Collateral Already Posted, Aggregate Fair Value	$ 0	$ 0
Metal
Derivative [Line Items]
Maximum settlement period of derivatives (in months)	3 months
Tons of metal in forward contracts with the right to buy (in tons)	200,000	200,000
Tons of metal in forward contracts with the right to sell (in tons)	200,000	200,000
Natural Gas
Derivative [Line Items]
British thermal units in forward buy contracts (in British thermal units)	1,900,000,000,000	2,900,000,000,000
Currency
Derivative [Line Items]
Derivative, Notional Amount	$ 0
Convertible Notes Payable
Derivative [Line Items]
Risk-free interest rate (percent)	2.00%	2.30%
Expected equity volatility rate (percent)	55.00%
Zhenjiang term loans
Derivative [Line Items]
Maximum period for variable interest rate paid (in months)	6 months
Senior Notes | 7 5/8% Senior Notes
Derivative [Line Items]
Stated interest rate	7.625%
Senior Notes | 7 7/8% Senior Notes
Derivative [Line Items]
Stated interest rate	7.875%

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Consolidated Statements Of Cash Flows (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Operating activities
Net (loss) income	$ (17.3)	$ 11.3
Depreciation and amortization	33.2	27.2
Provision for deferred income taxes	0.5	1.0
Stock-based compensation expense	4.2	2.7
Unrealized losses (gains) on derivative financial instruments	9.3	(10.3)
Currency exchange losses on debt	0.3	0.4
Amortization of debt issuance costs	2.0	1.9
Other	1.1	(2.1)
Change in accounts receivable	(83.5)	(105.5)
Change in inventories	(11.1)	(14.1)
Change in other assets	2.3	(12.0)
Change in accounts payable	90.3	52.2
Change in accrued liabilities	(3.5)	(8.3)
Net cash used (provided) by operating activities	27.8	(55.6)
Investing activities
Payments for property, plant and equipment	(47.5)	(96.9)
Other	0.5	1.6
Net cash used by investing activities	(47.0)	(95.3)
Financing activities
Proceeds from the ABL facility	40.0	0
Payments on the ABL facility	(30.0)	0
Proceeds from the Zhenjiang term loans	0	0.2
Net proceeds from other long-term debt	0.7	0.6
Other	(0.3)	(2.3)
Net cash provided (used) by financing activities	10.4	(1.5)
Effect of exchange rate differences on cash and cash equivalents	0	(1.2)
Net decrease in cash and cash equivalents	(8.8)	(153.6)
Cash and cash equivalents at beginning of period	60.1	592.9
Cash and cash equivalents at end of period	$ 51.3	$ 439.3

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Stockholders' Equity and Redeemable Noncontrolling Interest (Notes)

3 Months Ended

Mar. 31, 2014

Stockholders' Equity Note [Abstract]

Stockholders' Equity and Redeemable Noncontrolling Interest

5. STOCKHOLDERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTEREST

The following table summarizes the activity within stockholders’ equity and redeemable noncontrolling interest for the three months endedMarch 31, 2014:

	Aleris Corporation equity			Noncontrolling interest		Total equity			Redeemable noncontrolling interest
Total equity at January 1, 2014	$	368.4		$	0.3	$	368.7		$	5.7
Net (loss) income	(17.6		)	0.3		(17.3		)	—
Other comprehensive loss	(2.1		)	—		(2.1		)	—
Stock-based compensation activity	3.9			—		3.9			—
Other	—			—		—			(0.1		)
Total equity at March 31, 2014	$	352.6		$	0.6	$	353.2		$	5.6

The following table shows changes in the number of our outstanding shares of common stock:

	Outstanding shares of common stock
Balance at January 1, 2014	31,229,064
Issuance associated with options exercised	3,434
Issuance associated with vested restricted stock units	11,620
Issuance upon conversion of exchangeable notes	1,207
Balance at March 31, 2014	31,245,325

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Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Mar. 31, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule of Condensed Balance Sheet

	As of March 31, 2014
	Aleris Corporation (Parent)		Aleris International, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current Assets
Cash and cash equivalents	$	—	$	—	$	—	$	51.4	$	(0.1	)	$	51.3
Accounts receivable, net	—		—		149.7		310.4		—			460.1
Inventories	—		—		263.6		430.1		—			693.7
Deferred income taxes	—		—		0.2		6.9		—			7.1
Prepaid expenses and other current assets	—		0.5		13.9		14.2		—			28.6
Intercompany receivables	—		481.7		463.0		215.6		(1,160.3		)	—
Total Current Assets	—		482.2		890.4		1,028.6		(1,160.4		)	1,240.8
Property, plant and equipment, net	—		—		370.9		773.6		—			1,144.5
Intangible assets, net	—		—		27.1		15.9		—			43.0
Deferred income taxes	—		—		—		45.2		—			45.2
Other long-term assets	—		11.4		4.2		50.3		—			65.9
Intercompany receivables	—		3.6		—		—		(3.6		)	—
Investments in subsidiaries	356.2		1,491.0		118.3		—		(1,965.5		)	—
Total Assets	$	356.2	$	1,988.2	$	1,410.9	$	1,913.6	$	(3,129.5	)	$	2,539.4
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	—	$	2.0	$	147.2	$	232.2	$	(0.1	)	$	381.3
Accrued liabilities	—		21.3		65.2		110.7		—			197.2
Deferred income taxes	—		—		—		3.9		—			3.9
Current portion of long-term debt	—		—		0.5		9.6		—			10.1
Intercompany payables	—		561.6		488.0		110.7		(1,160.3		)	—
Total Current Liabilities	—		584.9		700.9		467.1		(1,160.4		)	592.5
Long-term debt	—		1,041.5		0.7		196.0		—			1,238.2
Deferred income taxes	—		—		0.2		4.6		—			4.8
Accrued pension benefits	—		—		31.5		195.3		—			226.8
Accrued postretirement benefits	—		—		40.7		—		—			40.7
Other long-term liabilities	—		—		32.8		44.8		—			77.6
Intercompany payables	3.6		—		—		—		(3.6		)	—
Total Long-Term Liabilities	3.6		1,041.5		105.9		440.7		(3.6		)	1,588.1
Redeemable noncontrolling interest	—		5.6		—		—		—			5.6
Total equity	352.6		356.2		604.1		1,005.2		(1,965.5		)	352.6
Noncontrolling interest	—		—		—		0.6		—			0.6
Total Liabilities and Equity	$	356.2	$	1,988.2	$	1,410.9	$	1,913.6	$	(3,129.5	)	$	2,539.4

	As of December 31, 2013
	Aleris Corporation (Parent)		Aleris International, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current Assets
Cash and cash equivalents	$	—	$	3.7	$	—	$	58.9	$	(2.5	)	$	60.1
Accounts receivable, net	—		—		125.7		251.2		—			376.9
Inventories	—		—		245.1		438.3		—			683.4
Deferred income taxes	—		—		0.2		6.9		—			7.1
Prepaid expenses and other current assets	—		0.5		16.1		14.9		—			31.5
Intercompany receivables	—		362.4		378.3		192.4		(933.1		)	—
Total Current Assets	—		366.6		765.4		962.6		(935.6		)	1,159.0
Property, plant and equipment, net	—		—		377.8		779.9		—			1,157.7
Intangible assets, net	—		—		27.6		15.9		—			43.5
Deferred income taxes	—		—		—		45.2		—			45.2
Other long-term assets	—		12.3		3.3		51.9		—			67.5
Intercompany receivables	—		3.4		—		—		(3.4		)	—
Investments in subsidiaries	371.8		1,510.6		117.7		—		(2,000.1		)	—
Total Assets	$	371.8	$	1,892.9	$	1,291.8	$	1,855.5	$	(2,939.1	)	$	2,472.9
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	—	$	0.4	$	117.1	$	188.2	$	(2.5	)	$	303.2
Accrued liabilities	—		21.7		67.0		112.2		—			200.9
Deferred income taxes	—		—		—		3.9		—			3.9
Current portion of long-term debt	—		—		0.5		7.8		—			8.3
Intercompany payables	—		462.4		371.7		99.0		(933.1		)	—
Total Current Liabilities	—		484.5		556.3		411.1		(935.6		)	516.3
Long-term debt	—		1,030.9		0.8		197.4		—			1,229.1
Deferred income taxes	—		—		0.2		4.2		—			4.4
Accrued pension benefits	—		—		33.8		194.7		—			228.5
Accrued postretirement benefits	—		—		40.9		—		—			40.9
Other long-term liabilities	—		—		32.7		46.6		—			79.3
Intercompany payables	3.4		—		—		—		(3.4		)	—
Total Long-Term Liabilities	3.4		1,030.9		108.4		442.9		(3.4		)	1,582.2
Redeemable noncontrolling interest	—		5.7		—		—		—			5.7
Total equity	368.4		371.8		627.1		1,001.2		(2,000.1		)	368.4
Noncontrolling interest	—		—		—		0.3		—			0.3
Total Liabilities and Equity	$	371.8	$	1,892.9	$	1,291.8	$	1,855.5	$	(2,939.1	)	$	2,472.9

Schedule of Condensed Income Statement

	For the three months ended March 31, 2014
	Aleris Corporation (Parent)			Aleris International, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	—		$	439.7		$	617.5		$	(3.0	)	$	1,054.2
Cost of sales	—			—			416.9			565.2			(3.0		)	979.1
Gross profit	—			—			22.8			52.3			—			75.1
Selling, general and administrative expenses	—			—			30.2			31.7			—			61.9
Restructuring charges (gains)	—			—			0.7			(0.2		)	—			0.5
(Gains) losses on derivative financial instruments	—			—			(3.7		)	3.2			—			(0.5		)
Other operating expense (income), net	—			—			0.5			(0.2		)	—			0.3
Operating (loss) income	—			—			(4.9		)	17.8			—			12.9
Interest expense, net	—			—			22.3			4.0			—			26.3
Other (income) expense, net	—			—			(3.7		)	3.3			—			(0.4		)
Equity in net loss (earnings) of affiliates	17.6			17.6			(0.6		)	—			(34.6		)	—
(Loss) income before income taxes	(17.6		)	(17.6		)	(22.9		)	10.5			34.6			(13.0		)
Provision for income taxes	—			—			—			4.3			—			4.3
Net (loss) income	(17.6		)	(17.6		)	(22.9		)	6.2			34.6			(17.3		)
Net income attributable to noncontrolling interest	—			—			—			0.3			—			0.3
Net (loss) income attributable to Aleris Corporation	$	(17.6	)	$	(17.6	)	$	(22.9	)	$	5.9		$	34.6		$	(17.6	)
Comprehensive (loss) income	$	(19.6	)	$	(19.6	)	$	(23.0	)	$	4.3		$	38.6		$	(19.3	)
Comprehensive income attributable to noncontrolling interest	—			—			—			0.3			—			0.3
Comprehensive (loss) income attributable to Aleris Corporation	$	(19.6	)	$	(19.6	)	$	(23.0	)	$	4.0		$	38.6		$	(19.6	)

	For the three months ended March 31, 2013
	Aleris Corporation (Parent)			Aleris International, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	—		$	507.9		$	603.9		$	(1.7	)	$	1,110.1
Cost of sales	—			—			475.4			547.4			(1.7		)	1,021.1
Gross profit	—			—			32.5			56.5			—			89.0
Selling, general and administrative expenses	—			—			27.9			33.7			—			61.6
Restructuring charges (gains)	—			—			1.2			(0.3		)	—			0.9
Gains on derivative financial instruments	—			—			(8.5		)	(0.6		)	—			(9.1		)
Other operating expense, net	—			—			—			(1.1		)	—			(1.1		)
Operating income	—			—			11.9			24.8			—			36.7
Interest expense (income), net	—			—			22.1			(1.1		)	—			21.0
Other income, net	—			—			(0.8		)	(1.1		)	—			(1.9		)
Equity in net earnings of affiliates	(10.9		)	(10.9		)	(0.5		)	—			22.3			—
Income (loss) before income taxes	10.9			10.9			(8.9		)	27.0			(22.3		)	17.6
Provision for income taxes	—			—			—			6.3			—			6.3
Net income (loss)	10.9			10.9			(8.9		)	20.7			(22.3		)	11.3
Net income attributable to noncontrolling interest	—			—			—			0.4			—			0.4
Net income (loss) attributable to Aleris Corporation	$	10.9		$	10.9		$	(8.9	)	$	20.3		$	(22.3	)	$	10.9
Comprehensive (loss) income	$	(5.8	)	$	(5.8	)	$	(7.9	)	$	3.6		$	10.5		$	(5.4	)
Comprehensive income attributable to noncontrolling interest	—			—			—			0.4			—			0.4
Comprehensive (loss) income attributable to Aleris Corporation	$	(5.8	)	$	(5.8	)	$	(7.9	)	$	3.2		$	10.5		$	(5.8	)

Schedule of Condensed Cash Flow Statement

	For the three months ended March 31, 2014
	Aleris Corporation (Parent)			Aleris International, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided (used) by operating activities	$	0.2		$	(18.6	)	$	19.2		$	24.6		$	2.4		$	27.8
Investing activities
Payments for property, plant and equipment	—			—			(19.0		)	(28.5		)	—			(47.5		)
Disbursements of intercompany loans	—			(15.0		)	(2.2		)	(15.0		)	32.2			—
Repayments from intercompany loans	—			5.0			2.5			—			(7.5		)	—
Other	—			—			(0.3		)	0.8			—			0.5
Net cash used by investing activities	—			(10.0		)	(19.0		)	(42.7		)	24.7			(47.0		)
Financing activities
Proceeds from the ABL facility	—			25.0			—			15.0			—			40.0
Payments on the ABL facility	—			(15.0		)	—			(15.0		)	—			(30.0		)
Net (payments on) proceeds from other long-term debt	—			—			(0.2		)	0.9			—			0.7
Proceeds from intercompany loans	—			15.0			—			17.2			(32.2		)	—
Repayments on intercompany loans	—			—			—			(7.5		)	7.5			—
Other	(0.2		)	(0.1		)	—			—			—			(0.3		)
Net cash (used) provided by financing activities	(0.2		)	24.9			(0.2		)	10.6			(24.7		)	10.4
Effect of exchange rate differences on cash and cash equivalents	—			—			—			—			—			—
Net decrease in cash and cash equivalents	—			(3.7		)	—			(7.5		)	2.4			(8.8		)
Cash and cash equivalents at beginning of period	—			3.7			—			58.9			(2.5		)	60.1
Cash and cash equivalents at end of period	$	—		$	—		$	—		$	51.4		$	(0.1	)	$	51.3

	For the three months ended March 31, 2013
	Aleris Corporation (Parent)			Aleris International, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided (used) by operating activities	$	2.0		$	(38.2	)	$	38.6		$	(57.5	)	$	(0.5	)	$	(55.6	)
Investing activities
Payments for property, plant and equipment	—			—			(19.6		)	(77.3		)	—			(96.9		)
Disbursements of intercompany loans	—			—			(24.6		)	—			24.6			—
Repayments from intercompany loans	—			—			5.5			—			(5.5		)	—
Equity contributions in subsidiaries	—			(60.0		)	(3.1		)	—			63.1			—
Other	—			—			0.1			1.5			—			1.6
Net cash used by investing activities	—			(60.0		)	(41.7		)	(75.8		)	82.2			(95.3		)
Financing activities
Proceeds from Zhenjiang term loans	—			—			—			0.2			—			0.2
Net proceeds from other long-term debt	—			—			—			0.6			—			0.6
Proceeds from intercompany loans	—			—			—			24.6			(24.6		)	—
Repayments on intercompany loans	—			—			—			(5.5		)	5.5			—
Proceeds from intercompany equity contributions	—			—			3.1			60.0			(63.1		)	—
Other	(2.0		)	(0.3		)	—			—			—			(2.3		)
Net cash (used) provided by financing activities	(2.0		)	(0.3		)	3.1			79.9			(82.2		)	(1.5		)
Effect of exchange rate differences on cash and cash equivalents	—			—			—			(1.2		)	—			(1.2		)
Net decrease in cash and cash equivalents	—			(98.5		)	—			(54.6		)	(0.5		)	(153.6		)
Cash and cash equivalents at beginning of period	—			472.4			—			121.6			(1.1		)	592.9
Cash and cash equivalents at end of period	$	—		$	373.9		$	—		$	67.0		$	(1.6	)	$	439.3

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Stock-Based Compensation (Details) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Life of award (in years)	10 years
Award vesting period (in years)	4 years
2010 Equity Incentive Plan | Senior Management and Nonemployee Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (in shares)	992,533
Stock-based compensation expense	$ 4.2	$ 2.7
2010 Equity Incentive Plan | Restricted Stock Units (RSUs) | Senior Management and Nonemployee Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted (in shares)	334,456

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Inventories (Tables)

3 Months Ended

Mar. 31, 2014

Inventory Disclosure [Abstract]

Schedule of Inventory, Current

The components of our “Inventories” as of March 31, 2014 and December 31, 2013 are as follows:

	March 31, 2014		December 31, 2013
Finished goods	$	196.1	$	185.6
Raw materials	248.5		265.9
Work in process	218.4		203.0
Supplies	30.7		28.9
Total inventories	$	693.7	$	683.4