Derivative and Other Financial Instruments and Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2016

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Schedule of Derivative Assets Liabilities, Net offset in Balance Sheet

The table below presents gross amounts of recognized assets and liabilities, the amounts offset in the consolidated balance sheets and the net amounts of assets and liabilities presented as of December 31, 2016 and 2015. As of December 31, 2016 and 2015, there were no amounts subject to enforceable master netting arrangements or similar agreements that have not been offset in the consolidated balance sheets.

	December 31, 2016					December 31, 2015
(In millions)	Asset		Liability			Asset			Liability
Metal	$	—	$	(0.4	)	$	0.2		$	(0.3	)
Natural gas		0.6		—			—			(0.6	)
Total		0.6		(0.4	)		0.2			(0.9	)
Effect of counterparty netting arrangements		—		—			(0.2	)		0.2
Net derivatives assets (liabilities) as    classified in the consolidated balance sheets	$	0.6	$	(0.4	)	$	—		$	(0.7	)

Fair Value of Derivative Financial Instruments

The following table presents details of the fair value of Real Alloy’s derivative financial instruments as of December 31, 2016 and 2015, as recorded in the consolidated balance sheets:  

		December 31,
(In millions)	Balance Sheet Classification	2016			2015
Derivative assets:
Natural Gas	Prepaid expenses, supplies and other current assets	$	0.6		$	—
Derivative liabilities:
Metal	Accrued liabilities	$	(0.4	)	$	(0.1	)
Natural Gas	Accrued liabilities		—			(0.6	)
Total derivative liabilities		$	(0.4	)	$	(0.7	)

Changes in Fair Value of Common Stock Warrant Liability

The following table presents changes in the fair value of the common stock warrant liability during the years ended December 31, 2016, 2015 and 2014:

	Year Ended December 31,
(In millions)		2016			2015			2014
Balance, beginning of period	$	6.9		$	5.6		$	9.3
Warrants exercised		(0.1	)		(0.2	)		—
Change in fair value of common stock warrant liability		(2.4	)		1.5			(3.7	)
Balance, end of period	$	4.4		$	6.9		$	5.6

Assets and Liabilities Measured at Fair Value on Recurring Basis Based on Fair Value Hierarchy

The following tables set forth financial assets and liabilities and their level in the fair value hierarchy that are accounted for at fair value on a recurring basis as of December 31, 2016 and 2015:

		Estimated Fair Value
	Fair Value	December 31,
(In millions)	Hierarchy	2016			2015
Derivative assets	Level 2	$	0.6		$	0.2
Derivative liabilities	Level 2		(0.4	)		(0.9	)
Net derivative assets (liabilities)		$	0.2		$	(0.7	)
Common stock warrant liability	Level 3	$	(4.4	)	$	(6.9	)

Schedule of Losses on Derivative Financial Instruments

The following table presents losses on derivative financial instruments during the years ended December 31, 2016 and 2015 (there were no derivative instruments held in the year ended December 31, 2014):

	Year Ended December 31,
(In millions)		2016			2015
Realized losses:
Metal	$	0.6		$	2.9
Natural gas		0.6			0.5
Total realized losses		1.2			3.4
Unrealized losses (gains):
Metal		0.3			—
Natural gas		(1.3	)		0.8
Total unrealized losses (gains)		(1.0	)		0.8
Losses on derivative financial instruments	$	0.2		$	4.2

Summary of Assets Measured at Estimated Fair Value on Nonrecurring Basis Based on Fair Value Hierarchy

The following table presents the Company’s assets measured at estimated fair value on a nonrecurring basis as of December 31, 2016 based on the fair value hierarchy:

(In millions)	Fair Value Hierarchy	Estimated Fair Value on Measurement Date
Goodwill - RANA	Level 3	$	33.6
Identifiable intangible assets - Cosmedicine	Level 3		—
Inventories - Cosmedicine (Prepaid expenses, supplies and other current assets)	Level 3	0.1

Summary of Losses on Assets Recorded at Fair Value on Nonrecurring Basis

The following table summarizes losses on assets recorded at fair value on a nonrecurring basis for the year ended December 31, 2016:

	Year Ended December 31,
(In millions)	2016
Goodwill impairment - RANA	$	61.8
Identifiable intangible assets impairment - Cosmedicine		0.1
Inventories impairment - Cosmedicine		0.7

Fair Value Hierarchy, Carrying Value and Estimated Fair Value of Financial Instruments

The following tables present the fair value hierarchy, carrying values and fair value estimates of other financial instruments as of December 31, 2016 and 2015:

		December 31, 2016
(In millions)	Fair Value Hierarchy	Carrying Value		Estimated Fair Value
Assets
Cash and cash equivalents	Level 1	$	27.2	$	27.2
Restricted cash and restricted cash equivalents	Level 1		5.5		5.5
Financing receivable	Level 2		28.4		28.4
Loans receivable, net (other noncurrent assets)	Level 3		0.8		0.8
Liabilities
Long-term debt:
Senior Secured Notes	Level 1	$	294.9	$	307.5
Asset-Based Facility	Level 2		55.5		57.0
Term Loan	Level 2		1.5		1.5
Redeemable Preferred Stock	Level 3	$	24.9	$	26.8

		December 31, 2015
(In millions)	Fair Value Hierarchy	Carrying Value		Estimated Fair Value
Assets
Cash and cash equivalents	Level 1	$	35.7	$	35.7
Restricted cash and restricted cash equivalents	Level 1		7.5		7.5
Financing receivable	Level 2		32.7		32.7
Loans receivable, net (other noncurrent assets)	Level 3		1.1		1.1
Liabilities
Long-term debt:
Senior Secured Notes	Level 1	$	290.7	$	310.9
Asset-Based Facility	Level 2		19.6		22.0
Redeemable Preferred Stock	Level 3	$	21.9	$	18.7

Valuation Techniques and Unobservable Inputs Applied to Level Three Fair Value Measurements

The Company’s Level 3 assets and liabilities are determined using valuation techniques that incorporate unobservable inputs that require significant judgment or estimation. The following tables present quantitative information about the valuation techniques and unobservable inputs applied to Level 3 fair value measurements as of December 31, 2016 and 2015:

	December 31, 2016
(In millions)	Estimated Fair Value		Valuation Technique	Unobservable Input	Input Value
Common stock warrant liability	$	4.4	Monte Carlo    Simulation	Volatility		47.1	%
				Expected term	3.4
				Equity raise probability		60	%
				Issue price discount    to fair value		25	%
Redeemable Preferred Stock	$	26.8	Discounted    cash flow	Credit spread		15.0	%
				Redemption period	44 months

	December 31, 2015
(In millions)	Estimated Fair Value		Valuation Technique	Unobservable Input	Input Value
Common stock warrant liability	$	6.9	Monte Carlo    Simulation	Volatility		49.9	%
				Expected term	4.4 years
				Equity raise probability		60	%
				Issue price discount    to fair value		15	%
Redeemable Preferred Stock	$	18.7	Discounted    cash flow	Credit spread		17.5	%
				Redemption period	56 months