10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended September 30, 2022

☐ 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: 1-09447

KAISER ALUMINUM CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	94-3030279
(State of incorporation)	(I.R.S. Employer Identification No.)

1550 West McEwen Drive, Suite 500
Franklin, Tennessee	37067
(Address of principal executive offices)	(Zip Code)

(629) 252-7040

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol	Name of each exchange on which registered
Common stock, par value $0.01 per share	KALU	Nasdaq Global Select Market

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, and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

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

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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

As of October 19, 2022, there were 15,940,625 shares of common stock of the registrant outstanding.

TABLE OF CONTENTS

PART I
Item 1. Financial Statements	1
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3. Quantitative and Qualitative Disclosures About Market Risk	32
Item 4. Controls and Procedures	33
PART II
Item 1. Legal Proceedings	34
Item 1A. Risk Factors	34
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	34
Item 3. Defaults Upon Senior Securities	34
Item 4. Mine Safety Disclosures	34
Item 5. Other Information	34
Item 6. Exhibits	35
SIGNATURES	36

KAISER ALUMINUM CORPORATION AND SUBSIDIARY COMPANIES

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

	As of September 30, 2022			As of December 31, 2021
	(In millions of dollars, except share and per share amounts)
ASSETS
Current assets:
Cash and cash equivalents	$	129.3		$	303.2
Receivables:
Trade receivables, net		311.5			332.7
Other		56.9			53.0
Contract assets		51.0			63.2
Inventories		538.1			404.6
Prepaid expenses and other current assets		40.9			48.7
Total current assets		1,127.7			1,205.4
Property, plant and equipment, net		989.6			955.2
Operating lease assets		41.4			46.2
Deferred tax assets, net		6.6			3.4
Intangible assets, net		56.7			67.7
Goodwill		39.3			39.3
Other assets		112.3			105.2
Total	$	2,373.6		$	2,422.4
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	337.3		$	351.4
Accrued salaries, wages and related expenses		42.4			46.9
Other accrued liabilities		88.5			58.4
Total current liabilities		468.2			456.7
Long-term portion of operating lease liabilities		37.3			40.8
Pension and other postretirement benefits		91.8			92.5
Net liabilities of Salaried VEBA		19.8			20.6
Deferred tax liabilities		4.7			10.5
Long-term liabilities		72.2			72.5
Long-term debt		1,037.6			1,036.3
Total liabilities		1,731.6			1,729.9
Commitments and contingencies – Note 6
Stockholders’ equity:
Preferred stock, 5,000,000 shares authorized at both September 30, 2022 and    December 31, 2021; no shares were issued and outstanding at    September 30, 2022 and December 31, 2021		—			—
Common stock, par value $0.01, 90,000,000 shares authorized at both    September 30, 2022 and December 31, 2021; 22,775,866 shares issued and    15,940,580 shares outstanding at September 30, 2022; 22,700,404 shares    issued and 15,865,118 shares outstanding at December 31, 2021		0.2			0.2
Additional paid in capital		1,087.2			1,078.9
Retained earnings		52.2			93.0
Treasury stock, at cost, 6,835,286 shares at both September 30, 2022 and    December 31, 2021		(475.9	)		(475.9	)
Accumulated other comprehensive loss		(21.7	)		(3.7	)
Total stockholders’ equity		642.0			692.5
Total	$	2,373.6		$	2,422.4

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

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KAISER ALUMINUM CORPORATION AND SUBSIDIARY COMPANIES

STATEMENTS OF CONSOLIDATED INCOME (LOSS) (UNAUDITED)

	Quarter Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
	(In millions of dollars, except share and per share amounts)
Net sales	$	748.9		$	750.6		$	2,651.9		$	1,815.6
Costs and expenses:
Cost of products sold, excluding depreciation and amortization and other items		694.9			677.8			2,459.2			1,613.6
Depreciation and amortization		25.8			24.9			80.4			64.2
Selling, general, administrative, research and development		25.2			28.1			82.9			90.8
Restructuring costs (benefit)		—			—			—			(0.8	)
Other operating charges, net		—			—			3.2			—
Total costs and expenses		745.9			730.8			2,625.7			1,767.8
Operating income		3.0			19.8			26.2			47.8
Other expense:
Interest expense		(12.1	)		(12.5	)		(36.5	)		(37.2	)
Other income (expense), net – Note 8		12.7			(1.2	)		7.4			(38.2	)
Income (loss) before income taxes		3.6			6.1			(2.9	)		(27.6	)
Income tax (provision) benefit		(1.1	)		(8.4	)		(0.3	)		7.4
Net income (loss)	$	2.5		$	(2.3	)	$	(3.2	)	$	(20.2	)
Net income (loss) per common share:
Basic	$	0.16		$	(0.14	)	$	(0.20	)	$	(1.28	)
Diluted	$	0.16		$	(0.14	)	$	(0.20	)	$	(1.28	)
Weighted-average number of common shares outstanding (in thousands):
Basic		15,926			15,852			15,897			15,831
Diluted		16,029			15,852			15,897			15,831

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

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KAISER ALUMINUM CORPORATION AND SUBSIDIARY COMPANIES

STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

	Quarter Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
	(In millions of dollars)						(In millions of dollars)
Net income (loss)	$	2.5		$	(2.3	)	$	(3.2	)	$	(20.2	)
Other comprehensive income (loss), net of tax – Note 7:
Defined benefit pension plans and Salaried VEBA		1.0			0.8			2.8			2.2
Cash flow hedges		(1.4	)		10.0			(20.8	)		33.7
Foreign currency translation		—			—			—			(0.1	)
Other comprehensive (loss) income, net of tax		(0.4	)		10.8			(18.0	)		35.8
Comprehensive income (loss)	$	2.1		$	8.5		$	(21.2	)	$	15.6

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

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KAISER ALUMINUM CORPORATION AND SUBSIDIARY COMPANIES

STATEMENTS OF CONSOLIDATED STOCKHOLDERS’ EQUITY (UNAUDITED)

Nine Months Ended September 30, 2022

	Common Shares Outstanding1			Common Stock		Additional Paid in Capital			Retained Earnings			Treasury Stock			Accumulated Other Comprehensive (Loss) Income			Total
	(In millions of dollars, except share and per share amounts)
BALANCE, December 31, 2021		15,865,118		$	0.2	$	1,078.9		$	93.0		$	(475.9	)	$	(3.7	)	$	692.5
Net income		—			—		—			8.1			—			—			8.1
Other comprehensive income, net of tax		—			—		—			—			—			18.0			18.0
Common shares issued (including impacts from    Long-Term Incentive programs)		58,641			—		—			—			—			—			—
Cancellation of shares to cover employees' tax    withholdings upon vesting of non-vested shares		(19,643	)		—		(1.9	)		—			—			—			(1.9	)
Cash dividends declared2		—			—		—			(12.5	)		—			—			(12.5	)
Amortization of unearned equity compensation		—			—		4.0			—			—			—			4.0
BALANCE, March 31, 2022		15,904,116		$	0.2	$	1,081.0		$	88.6		$	(475.9	)	$	14.3		$	708.2
Net loss		—			—		—			(13.8	)		—			—			(13.8	)
Other comprehensive loss, net of tax		—			—		—			—			—			(35.6	)		(35.6	)
Common shares issued (including impacts from    Long-Term Incentive programs)		18,101			—		0.6			—			—			—			0.6
Cancellation of shares to cover employees' tax    withholdings upon vesting of non-vested shares		(155	)		—		—			—			—			—			—
Cash dividends declared2		—			—		—			(12.6	)		—			—			(12.6	)
Amortization of unearned equity compensation		—			—		3.2			—			—			—			3.2
BALANCE, June 30, 2022		15,922,062		$	0.2	$	1,084.8		$	62.2		$	(475.9	)	$	(21.3	)	$	650.0
Net income		—			—		—			2.5			—			—			2.5
Other comprehensive loss, net of tax		—			—		—			—			—			(0.4	)		(0.4	)
Common shares issued (including impacts from    Long-Term Incentive programs)		30,476			—		—			—			—			—			—
Cancellation of shares to cover employees' tax    withholdings upon vesting of non-vested shares		(11,958	)		—		(0.9	)		—			—			—			(0.9	)
Cash dividends declared2		—			—		—			(12.5	)		—			—			(12.5	)
Amortization of unearned equity compensation		—			—		3.3			—			—			—			3.3
BALANCE, September 30, 2022		15,940,580		$	0.2	$	1,087.2		$	52.2		$	(475.9	)	$	(21.7	)	$	642.0

1At September 30, 2022, 614,311 shares were available for awards under the Kaiser Aluminum Corporation 2021 Equity and Incentive Compensation Plan (“2021 Plan”).

2Dividends declared per common share were $0.77 for the quarters ended March 31, 2022, June 30, 2022 and September 30, 2022.

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

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KAISER ALUMINUM CORPORATION AND SUBSIDIARY COMPANIES

STATEMENTS OF CONSOLIDATED STOCKHOLDERS’ EQUITY CONTINUED (UNAUDITED)

Nine Months Ended September 30, 2021

	Common Shares Outstanding			Common Stock		Additional Paid in Capital			Retained Earnings			Treasury Stock			Accumulated Other Comprehensive (Loss) Income			Total
	(In millions of dollars, except share and per share amounts)
BALANCE, December 31, 2020		15,812,169		$	0.2	$	1,068.6		$	158.2		$	(475.9	)	$	(18.7	)	$	732.4
Net income		—			—		—			4.5			—			—			4.5
Other comprehensive income, net of tax		—			—		—			—			—			9.1			9.1
Common shares issued (including impacts from    Long-Term Incentive programs)		56,394			—		—			—			—			—			—
Cancellation of shares to cover employees' tax    withholdings upon vesting of non-vested shares		(20,625	)		—		(2.4	)		—			—			—			(2.4	)
Cash dividends declared1		—			—		—			(11.7	)		—			—			(11.7	)
Amortization of unearned equity compensation		—			—		3.1			—			—			—			3.1
BALANCE, March 31, 2021		15,847,938		$	0.2	$	1,069.3		$	151.0		$	(475.9	)	$	(9.6	)	$	735.0
Net loss		—			—		—			(22.4	)		—			—			(22.4	)
Other comprehensive income, net of tax		—			—		—			—			—			15.9			15.9
Common shares issued (including impacts from    Long-Term Incentive programs)		12,291			—		0.3			—			—			—			0.3
Cancellation of shares to cover employees' tax    withholdings upon vesting of non-vested shares		(409	)		—		—			—			—			—			—
Cash dividends declared1		—			—		—			(11.7	)		—			—			(11.7	)
Amortization of unearned equity compensation		—			—		3.6			—			—			—			3.6
BALANCE, June 30, 2021		15,859,820		$	0.2	$	1,073.2		$	116.9		$	(475.9	)	$	6.3		$	720.7
Net loss		—			—		—			(2.3	)		—			—			(2.3	)
Other comprehensive income, net of tax		—			—		—			—			—			10.8			10.8
Common shares issued (including impacts from    Long-Term Incentive programs)		3,431			—		—			—			—			—			—
Cancellation of shares to cover employees' tax    withholdings upon vesting of non-vested shares		(579	)		—		(0.1	)		—			—			—			(0.1	)
Cash dividends declared1		—			—		—			(11.6	)		—			—			(11.6	)
Amortization of unearned equity compensation		—			—		3.5			—			—			—			3.5
BALANCE, September 30, 2021		15,862,672		$	0.2	$	1,076.6		$	103.0		$	(475.9	)	$	17.1		$	721.0

1Dividends declared per common share were $0.72 for the quarters ended March 31, 2021, June 30, 2021 and September 30, 2021.

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

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KAISER ALUMINUM CORPORATION AND SUBSIDIARY COMPANIES

STATEMENTS OF CONSOLIDATED CASH FLOWS (UNAUDITED)

	Nine Months Ended September 30,
	2022			2021
	(In millions of dollars)
Cash flows from operating activities1:
Net loss	$	(3.2	)	$	(20.2	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation of property, plant and equipment		72.5			58.0
Amortization of definite-lived intangible assets		7.9			6.2
Amortization of debt premium and debt issuance costs		1.6			1.6
Deferred income taxes		(3.5	)		(9.9	)
Non-cash equity compensation		11.1			10.5
Non-cash asset impairment charge		3.2			—
Loss on extinguishment of debt		—			35.9
(Gain) loss on disposition of property, plant and equipment		(6.3	)		0.1
Changes in operating assets and liabilities, net of effects of acquisition:
Trade and other receivables		17.3			(110.7	)
Contract assets		12.2			(4.1	)
Inventories		(133.5	)		(52.5	)
Prepaid expenses and other current assets		(4.3	)		(3.9	)
Accounts payable		(40.6	)		105.8
Accrued liabilities		8.3			17.8
Annual variable cash contributions to Salaried VEBA		—			(1.7	)
Long-term assets and liabilities, net		(1.3	)		0.4
Net cash (used in) provided by operating activities		(58.6	)		33.3
Cash flows from investing activities1:
Capital expenditures		(82.4	)		(29.9	)
Cash payment for acquisition of the Warrick rolling mill, net of cash received		—			(609.2	)
Purchase of equity securities		(0.3	)		(0.4	)
Proceeds from disposition of property, plant and equipment		11.0			—
Net cash used in investing activities		(71.7	)		(639.5	)
Cash flows from financing activities1:
Repayment of principal and redemption premium of 6.50% Senior Notes		—			(380.9	)
Issuance of 4.50% Senior Notes		—			550.0
Cash paid for debt issuance costs		(1.8	)		(8.6	)
Repayment of finance lease		(1.0	)		(1.6	)
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares		(2.8	)		(2.5	)
Cash dividends and dividend equivalents paid		(37.6	)		(35.0	)
Net cash (used in) provided by financing activities		(43.2	)		121.4
Net decrease in cash, cash equivalents and restricted cash during the period		(173.5	)		(484.8	)
Cash, cash equivalents and restricted cash at beginning of period		317.0			794.3
Cash, cash equivalents and restricted cash at end of period	$	143.5		$	309.5

1See Note 11 for supplemental cash flow information.

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

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KAISER ALUMINUM CORPORATION AND SUBSIDIARY COMPANIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

NOTES INDEX

Note 1	Basis of Presentation and Recent Accounting Pronouncements	8
Note 2	Supplemental Balance Sheet Information	10
Note 3	Employee Benefits	10
Note 4	Derivatives, Hedging Programs and Other Financial Instruments	12
Note 5	Debt and Credit Facility	16
Note 6	Commitments and Contingencies	18
Note 7	Accumulated Other Comprehensive (Loss) Income	19
Note 8	Other Income (Expense), Net	20
Note 9	Income Tax Matters	20
Note 10	Net Income (Loss) Per Share	21
Note 11	Supplemental Cash Flow Information	21
Note 12	Business, Product and Geographical Area Information	22
Note 13	Subsequent Events	22

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KAISER ALUMINUM CORPORATION AND SUBSIDIARY COMPANIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

1. Basis of Presentation and Recent Accounting Pronouncements

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

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

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

Supply Chain Financing. We are party to several supply chain financing arrangements, in which we may sell certain of our customers’ trade accounts receivable to such customers’ financial institutions without recourse. We sell our undivided interests in certain of these receivables at our discretion when we determine that the cost of these arrangements is less than the cost of servicing our receivables with existing debt. Under the terms of the agreements, we retain no rights or interest, have no obligations with respect to the sold receivables and do not service the receivables after the sale. As such, these transactions are being accounted for as a sale. During the quarters ended September 30, 2022 and September 30, 2021 and the nine months ended September 30, 2022 and September 30, 2021, we sold trade accounts receivable totaling $359.2 million, $390.2 million, $1,248.6 million and $706.2 million, respectively, related to these supply chain financing arrangements, of which our customers’ financial institutions applied discount fees totaling $6.2 million, $2.1 million, $15.4 million and $4.0 million, respectively. To the extent discount fees related to the sale of trade accounts receivable under supply chain financing arrangements are not reimbursed by our customers, they are included in Other income (expense), net. As of September 30, 2022, we had been and/or expected to be fully reimbursed by our customers for the majority of these discount fees.

Government Grants. From time-to-time, we receive grants from certain governmental agencies such as states and municipalities. We recognize government grants when we have reasonable assurance that we will comply with any conditions attached to the grant and the grant will be received. Government grants related to property, plant and equipment are presented as a reduction to the related asset’s carrying amount. Grants related to compensation for expenses already incurred or for immediate financial support with no future related costs are recognized as income in the period in which it is receivable. The following table presents the total government assistance recognized during the nine months ended September 30, 2022 (in millions of dollars):

Grantor	Grant	Amount		Duration	Classification
Tennessee Department of Economic and Community Development	TN Fast Track	$	1.1	2021 - 2028	Property, plant and equipment, net
Tennessee Department of Economic and Community Development	TN Fast Track		0.2	2021 - 2028	Selling, general, administrative, research and development
Tennessee Valley Authority	Performance		0.3	2021 - 2026	Property, plant and equipment, net
Indiana Economic Development Corporation	IN EDGE Tax Credit		1.6	2021 - 2030	Cost of products sold, excluding depreciation and amortization and other items
Total		$	3.2

To be eligible to receive and keep the full amount of the TN Fast Track and Performance grants, we must achieve: (i) minimum cumulative expenditures towards developmental and/or capital expenditures; (ii) a minimum number of new full-time employees; and

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KAISER ALUMINUM CORPORATION AND SUBSIDIARY COMPANIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

(iii) a minimum average annual wage, all within seven years of our execution of the grant agreement. To be eligible to receive and keep the full amount of the IN EDGE Tax Credit, we must achieve: (i) minimum cumulative expenditures towards capital expenditures and (ii) a minimum number of full-time employees.

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

Adoption of New Accounting Pronouncements

Accounting Standard Update (“ASU”) No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance (“ASU 2021-10”) was issued in November 2021. Under ASU 2021-10, the accounting entities with transactions with a government that are accounted for by analogy to a grant or contribution accounting model are required to annually disclose certain information regarding the transaction including: (i) nature and related accounting policy used; (ii) line items on the balance sheet and income statement affected by the transactions; (iii) amounts applicable to each line item; and (iv) significant terms and conditions. Our adoption of ASU 2021-10 during the quarter ended March 31, 2022 using a prospective approach did not have a material impact on our consolidated financial statements.

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

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KAISER ALUMINUM CORPORATION AND SUBSIDIARY COMPANIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

2. Supplemental Balance Sheet Information

	As of September 30, 2022			As of December 31, 2021
	(In millions of dollars)
Trade Receivables, Net
Billed trade receivables	$	312.1		$	333.5
Allowance for doubtful receivables		(0.6	)		(0.8	)
Trade receivables, net	$	311.5		$	332.7
Inventories1
Finished products	$	88.1		$	90.3
Work-in-process		229.6			162.2
Raw materials		208.6			143.0
Operating supplies		11.8			9.1
Total	$	538.1		$	404.6
Property, Plant and Equipment, Net
Land and improvements	$	28.4		$	26.0
Buildings and leasehold improvements		184.2			179.0
Machinery and equipment		1,190.6			1,151.5
Construction in progress2		136.6			75.3
Property, plant and equipment, gross		1,539.8			1,431.8
Accumulated depreciation and amortization		(550.4	)		(480.4	)
Assets held for sale		0.2			3.8
Property, plant and equipment, net	$	989.6		$	955.2
Other Accrued Liabilities
Uncleared cash disbursements	$	19.8		$	10.9
Accrued income taxes and other taxes payable		11.0			9.5
Accrued interest		10.3			9.9
Short-term environmental accrual – Note 6		1.8			2.6
Short-term operating lease liabilities		9.3			9.0
Other – Note 4		36.3			16.5
Total	$	88.5		$	58.4
Long-Term Liabilities
Workers' compensation accrual	$	31.5		$	31.9
Long-term environmental accrual – Note 6		13.1			14.2
Other long-term liabilities		27.6			26.4
Total	$	72.2		$	72.5

1At September 30, 2022 and December 31, 2021, the current cost of our inventory exceeded its stated last-in, first-out (“LIFO”) value by $119.3 million and $137.1 million, respectively.

2Based on market conditions, we temporarily idled projects within Construction in progress totaling $19.2 million and $24.9 million as of September 30, 2022 and December 31, 2021, respectively, all of which are expected to resume at a future date.

3. Employee Benefits

Deferred Compensation Plan

Assets of our deferred compensation plan are included in Other assets, classified within Level 1 of the fair value hierarchy and are measured and recorded at fair value based on their quoted market prices. The fair value of these assets at September 30, 2022 and December 31, 2021 was $9.6 million and $10.5 million, respectively. The assets in the trust are held in various investment funds at certain registered investment companies and are accounted for as equity investments with changes in fair value recorded within

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NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

Other income (expense), net (see Note 8). Offsetting liabilities relating to the deferred compensation plan are included in Other accrued liabilities and Long-term liabilities.

Short-Term Incentive Plans (“STI Plans”)

As of September 30, 2022, we had a liability of $4.7 million recorded within Accrued salaries, wages and related expenses for estimated probable future payments relating to the nine month performance period of our 2022 STI Plan.

Postretirement Benefit Plans

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

	Quarter Ended September 30,					Nine Months Ended September 30,
	2022			2021		2022			2021
Defined contribution plans1	$	3.9		$	3.4	$	13.6		$	10.4
Deferred compensation plan2		(0.1	)		0.2		(0.9	)		0.6
Multiemployer pension plans1		1.3			1.3		3.9			3.7
Salaried VEBA2		0.9			0.6		2.8			1.7
Pension plans3		1.3			1.4		4.0			2.9
OPEB3		0.9			0.9		2.8			1.9
Total	$	8.2		$	7.8	$	26.2		$	21.2

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

2The deferred compensation plan and the current service cost component of Net periodic postretirement benefit cost relating to the voluntary employees’ beneficiary association that provides benefits for certain eligible retirees and their surviving spouses and eligible dependents (“Salaried VEBA”) are included within our Statements of Consolidated Income (Loss) in SG&A and R&D for all periods presented. All other components of Net periodic postretirement benefit cost relating to Salaried VEBA are included within Other income (expense), net, on our Statements of Consolidated Income (Loss).

3The current service cost component of Net periodic postretirement benefit cost relating to both the pension plans and the healthcare and life insurance postretirement benefit plan (“OPEB”) are included within our Statements of Consolidated Income (Loss) in COGS for all periods presented. All other components of Net periodic postretirement benefit cost relating to both the pension plans and the OPEB are included within Other income (expense), net, on our Statements of Consolidated Income (Loss).

Components of Net Periodic Postretirement Benefit Cost. Our results of operations included the following impacts associated with the Salaried VEBA, pension plans and OPEB: (i) a charge for service rendered by employees; (ii) a charge for accretion of interest; (iii) a benefit for the expected return on plan assets; (iv) amortization of prior service costs associated with plan amendments; and (v) amortization of net actuarial differences.

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

	Pension Plans						OPEB				Salaried VEBA
	Quarter Ended September 30,						Quarter Ended September 30,				Quarter Ended September 30,
	2022			2021			2022		2021		2022			2021
Service cost	$	1.5		$	1.4		$	0.4	$	0.3	$	—		$	—
Interest cost		0.1			0.1			0.5		0.6		0.5			0.4
Expected return on plan assets		(0.3	)		(0.1	)		—		—		(0.8	)		(0.8	)
Amortization of prior service cost1		—			—			—		—		1.2			0.9
Amortization of net actuarial loss		—			—			—		—		—			0.1
Total net periodic postretirement benefit cost	$	1.3		$	1.4		$	0.9	$	0.9	$	0.9		$	0.6

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NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

	Pension Plans2						OPEB2				Salaried VEBA
	Nine Months Ended September 30,						Nine Months Ended September 30,				Nine Months Ended September 30,
	2022			2021			2022		2021		2022			2021
Service cost	$	4.3		$	2.8		$	1.2	$	0.7	$	—		$	—
Interest cost		0.4			0.3			1.6		1.2		1.4			1.2
Expected return on plan assets		(0.7	)		(0.3	)		—		—		(2.3	)		(2.4	)
Amortization of prior service cost1		—			—			—		—		3.7			2.6
Amortization of net actuarial loss		—			0.1			—		—		—			0.3
Total net periodic postretirement benefit cost	$	4.0		$	2.9		$	2.8	$	1.9	$	2.8		$	1.7

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

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

4. Derivatives, Hedging Programs and Other Financial Instruments

Overview. In conducting our business, we enter into derivative transactions, including forward contracts and options, to limit our exposure to: (i) metal price risk related to our sale of fabricated aluminum products and the purchase of metal, including primary and scrap, or recycled, aluminum, our main raw material, and certain alloys used as raw material for our fabrication operations; (ii) energy price risk relating to fluctuating prices of natural gas and electricity used in our production processes; and (iii) foreign currency requirements with respect to cash commitments for equipment purchases and/or other agreements denominated in foreign currency. We do not use derivative financial instruments for trading or other speculative purposes. Hedging transactions are executed centrally on behalf of all of our operations to minimize transaction costs, monitor consolidated net exposures and allow for increased responsiveness to changes in market factors.

Our derivative activities are overseen by a committee (“Hedging Committee”), which is composed of our chief executive officer, chief financial officer, chief accounting officer, vice president of treasury, risk and procurement and other officers and employees selected by the chief executive officer. The Hedging Committee meets regularly to review commodity price exposure, derivative positions and strategy. Management reviews the scope of the Hedging Committee’s activities with our Board of Directors.

We are exposed to counterparty credit risk on all of our derivative instruments, which we manage by monitoring the credit quality of our counterparties, allocating our hedging positions among multiple counterparties to limit exposure to any single entity and using options as part of the hedging strategy. Our counterparties are major investment grade financial institutions or trading companies and our hedged transactions are governed by negotiated reciprocal credit lines, which generally require collateral to be posted above specified credit thresholds which may adjust up or down, depending on our liquidity. As a result, we believe the risk of loss is remote and contained. The aggregate fair value of our derivative instruments that were in a net liability position was $14.8 million and zero at September 30, 2022 and December 31, 2021, respectively, and we had no collateral posted as of those dates.

Additionally, our firm-price customer sales commitments create incremental customer credit risk related to metal price movements. Under certain circumstances, we mitigate this risk by periodically requiring cash collateral from them, which we classify as deferred revenue and include as a component of Other accrued liabilities. We had $1.1 million and zero cash collateral posted from our customers at September 30, 2022 and December 31, 2021, respectively.

Cash Flow Hedges

We designate as cash flow hedges forward swap contracts for aluminum, energy and, from time-to-time, zinc and copper (“Alloying Metals”) used in our fabrication operations and foreign currency forward contracts for equipment and services for which payments are due in foreign currency. Unrealized gains and losses associated with our cash flow hedges are deferred in Other comprehensive (loss) income, net of tax, and reclassified to COGS when such hedges settle or when it is probable that the original forecasted transactions will not occur by the end of the originally specified time period. See Note 7 for the total amount of gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments that was reported in Accumulated other comprehensive (loss) income (“AOCI”), as well as the related reclassifications into earnings and tax effects. Cumulative gains and

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NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

losses related to cash flow hedges are reclassified out of AOCI and recorded within COGS when the associated hedged commodity purchases impact earnings.

Aluminum Hedges. Our pricing of fabricated aluminum products is generally intended to lock in a conversion margin (representing the value added from the fabrication process) and to pass through aluminum price fluctuations to our customers. For some of our higher value added products sold on a spot basis, the pass through of aluminum price movements can sometimes lag by as much as several months, with a favorable impact to us when aluminum prices decline and an adverse impact to us when aluminum prices increase. Additionally, in certain instances, we enter into firm-price arrangements with our customers for stipulated volumes to be delivered in the future. Because we generally purchase primary and secondary aluminum on a floating price basis, the lag in passing through aluminum price movements to customers on some of our higher value added products sold on a spot basis and the volume that we have committed to sell to our customers under a firm-price arrangement create aluminum price risk for us. We use third-party hedging instruments to limit exposure to aluminum price risk related to the aluminum pass through lag on some of our products and firm-price customer sales contracts.

Alloying Metals Hedges. We are exposed to risk of fluctuating prices for alloying metals used as raw materials in our fabrication operations. We, from time-to-time, in the ordinary course of business, enter into hedging transactions and/or physical delivery commitments with third parties to mitigate our risk from fluctuations in alloying metals prices that are not passed through completely or at the time of sale pursuant to the terms of certain customer contracts.

Energy Hedges. We are exposed to risk of fluctuating prices for natural gas and electricity. We, from time-to-time, in the ordinary course of business, enter into hedging transactions and/or physical delivery commitments with third parties to mitigate our risk from fluctuations in natural gas and electricity prices that are not passed through completely or at the time of sale pursuant to the terms of certain customer contracts.

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

	Remainder of 2022	2023	2024	2025	2026
Zinc	66%	3%	—	—	—
Copper	58%	—	—	—	—
Magnesium	100%	100%	40%	—	—
Silicon	100%	—	—	—	—
Natural Gas	49%	50%	47%	26%	21%
Electricity	71%	43%	—	—	—

Foreign Currency Hedges. We are exposed to foreign currency exchange risk related to certain equipment and service agreements with vendors for which payments are due in foreign currency. We, from time-to-time, in the ordinary course of business, use foreign currency forward contracts in order to mitigate the exposure to currency exchange rate fluctuations related to these purchases.

Non-Designated Hedges of Operational Risks

From time-to-time, we enter into commodity contracts that are not designated as hedging instruments to mitigate certain short‑term commodity impacts, as identified. The gain or loss on these derivatives is recognized within COGS.

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NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

Notional Amount of Derivative Contracts

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

Aluminum	Maturity Period (month/year)	Notional Amount of Contracts (mmlbs)
Fixed price purchase contracts	October 2022 through December 2023		87.9
Fixed price sales contracts	October 2022 through December 2022		15.0
Midwest premium swap contracts1	October 2022 through December 2023		52.3

Alloying Metals	Maturity Period (month/year)	Notional Amount of Contracts (mmlbs)
Fixed price purchase contracts	October 2022 through November 2023		2.0

Natural Gas	Maturity Period (month/year)	Notional Amount of Contracts (mmbtu)
Fixed price purchase contracts	October 2022 through December 2025		3,900,000

Electricity	Maturity Period (month/year)	Notional Amount of Contracts (Mwh)
Fixed price purchase contracts	October 2022 through December 2022		55,225

Euro	Maturity Period (month/year)	Notional Amount of Contracts (euro)
Fixed price forward contracts	December 2022 through February 2024		1,126,066

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

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NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

Loss (Gain)

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

	Quarter Ended September 30,						Nine Months Ended September 30,						Statements of Consolidated
	2022			2021			2022			2021			Income (Loss) Classification
Total of income and expense line items presented in our Statements of Consolidated Income (Loss) in which the effects of hedges are recorded:
Cash flow hedges	$	694.9		$	677.8		$	2,459.2		$	1,613.6		Cost of products sold
Loss (gain) recognized in our Statements of Consolidated Income (Loss) related to cash flow hedges:
Aluminum	$	14.2		$	(13.3	)	$	1.4		$	(24.3	)	Cost of products sold
Alloying Metals		—			(0.2	)		—			0.2		Cost of products sold
Natural gas		(2.3	)		(0.6	)		(5.1	)		(0.7	)	Cost of products sold
Electricity		(3.8	)		(2.6	)		(5.2	)		(3.3	)	Cost of products sold
Total loss (gain) recognized in our Statements of Consolidated Income (Loss) related to cash flow hedges	$	8.1		$	(16.7	)	$	(8.9	)	$	(28.1	)
Loss (gain) recognized in our Statements of Consolidated Income (Loss) related to non-designated hedges:
Alloying Metals – Realized loss (gain)	$	0.3		$	(1.2	)	$	(0.8	)	$	(3.8	)	Cost of products sold
Alloying Metals – Unrealized loss		—			1.9			1.9			2.0		Cost of products sold
Total loss (gain) recognized in our Statements of Consolidated Income (Loss) related to non-designated hedges	$	0.3		$	0.7		$	1.1		$	(1.8	)

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NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

Fair Values of Derivative Contracts

The fair values of our derivative contracts are based upon trades in liquid markets. Valuation model inputs can be verified, and valuation techniques do not involve significant judgment. The fair values of such financial instruments are classified within Level 2 of the fair value hierarchy.

All of our derivative contracts with counterparties are subject to enforceable master netting arrangements. We reflect the fair value of our derivative contracts on a gross basis on our Consolidated Balance Sheets. The following table presents the fair value of our derivative financial instruments (in millions of dollars):

	As of September 30, 2022								As of December 31, 2021
	Assets		Liabilities			Net Amount			Assets		Liabilities			Net Amount
Cash Flow Hedges:
Aluminum –
Fixed price purchase contracts	$	0.6	$	(15.5	)	$	(14.9	)	$	12.2	$	(1.1	)	$	11.1
Fixed price sales contracts		1.7		—			1.7			—		—			—
Midwest premium swap contracts		1.4		(3.7	)		(2.3	)		5.5		(0.1	)		5.4
Natural gas – Fixed price purchase contracts		9.1		—			9.1			3.0		(0.1	)		2.9
Electricity – Fixed price purchase contracts		2.6		—			2.6			4.4		(0.6	)		3.8
Foreign currency – Fixed price forward contracts		—		(0.1	)		(0.1	)		—		—			—
Total cash flow hedges		15.4		(19.3	)		(3.9	)		25.1		(1.9	)		23.2
Non-Designated Hedges:
Alloying Metals – Fixed price purchase contracts		—		(0.5	)		(0.5	)		1.6		(0.1	)		1.5
Total non-designated hedges		—		(0.5	)		(0.5	)		1.6		(0.1	)		1.5
Total	$	15.4	$	(19.8	)	$	(4.4	)	$	26.7	$	(2.0	)	$	24.7

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

	As of September 30, 2022			As of December 31, 2021
Derivative assets:
Prepaid expenses and other current assets	$	11.3		$	25.0
Other assets		4.1			1.7
Total derivative assets	$	15.4		$	26.7
Derivative liabilities:
Other accrued liabilities	$	(19.5	)	$	(1.9	)
Long-term liabilities		(0.3	)		(0.1	)
Total derivative liabilities	$	(19.8	)	$	(2.0	)

Fair Value of Other Financial Instruments

All Other Financial Assets and Liabilities. We believe that the fair values of our accounts receivable, contract assets, accounts payable and accrued liabilities approximate their respective carrying values due to their short maturities and nominal credit risk.

5. Debt and Credit Facility

Senior Notes

During the years ended December 31, 2021, December 31, 2020 and December 31, 2019, we issued fixed rate unsecured notes with varying maturity dates (“Senior Notes”). The stated interest rates and aggregate principal amounts of our Senior Notes were: (i) 4.50% and $550.0 million (“4.50% Senior Notes”); (ii) 6.50% and $350.0 million (“6.50% Senior Notes”); and (iii) 4.625% and

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NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

$500.0 million (“4.625% Senior Notes”). Our Senior Notes do not require us to make any mandatory redemptions or sinking fund payments. The following table summarizes key details of our Senior Notes:

				Outstanding (in millions of dollars)
	Issuance Date	Maturity	Effective Interest Rate	As of September 30, 2022			As of December 31, 2021
4.50% Senior Notes	May 2021	June 2031	4.7%	$	550.0		$	550.0
6.50% Senior Notes1	April/May 2020	May 2025	6.8%		—			—
4.625% Senior Notes	November 2019	March 2028	4.8%		500.0			500.0
Total debt					1,050.0			1,050.0
Unamortized issuance costs					(12.4	)		(13.7	)
Total carrying amount				$	1,037.6		$	1,036.3

1In May 2021, we redeemed in full the remaining balance of our 6.50% Senior Notes at a redemption price of 108.83% of the principal amount plus $1.3 million of accrued and unpaid interest for a total net cash outflow of $382.2 million. Upon redemption of the 6.50% Senior Notes, we recorded a loss on extinguishment of debt of $35.9 million within Other income (expense), net, on our Statements of Consolidated Income (Loss), which included the premium payment of $30.9 million and a write-off of the remaining unamortized premium and debt issuance costs of $5.0 million.

The following table presents the fair value of our outstanding Senior Notes, which are Level 1 liabilities (in millions of dollars):

	As of September 30, 2022		As of December 31, 2021
4.50% Senior Notes	$	399.1	$	542.6
4.625% Senior Notes	$	410.4	$	506.9

Revolving Credit Facility

In April 2022, we entered into Amendment No. 3 to our revolving credit facility with Wells Fargo Bank, National Association, the administrative agent, and the other financial institutions party thereto (as amended, the “Revolving Credit Facility”). The Revolving Credit Facility among others: (i) increased the commitment from $375.0 million to $575.0 million (of which up to a maximum of $50.0 million may be utilized for letters of credit); (ii) extended the maturity date from the earlier of (a) February 2024 (if certain conditions were met) and (b) October 2024 to April 2027; (iii) removed eligible equipment from the borrowing base and as collateral; and (iv) updated relevant benchmark provisions to SOFR instead of LIBOR.

The following table summarizes availability and usage of our Revolving Credit Facility as determined by a borrowing base calculated as of September 30, 2022 (in millions of dollars):

Revolving Credit Facility borrowing commitment	$	575.0
Borrowing base availability	$	572.4
Less: Outstanding borrowings under Revolving Credit Facility		—
Less: Outstanding letters of credit under Revolving Credit Facility		(17.4	)
Remaining borrowing availability	$	555.0

Interest Expense

Interest expense relating to our Senior Notes and Revolving Credit Facility was as follows (in millions of dollars):

	Quarter Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Senior Notes interest expense, including debt issuance cost amortization	$	12.4		$	12.4		$	37.2		$	36.6
Revolving Credit Facility commitment fees and finance cost amortization		0.6			0.3			1.6			1.2
Interest expense capitalized as construction in progress		(0.9	)		(0.2	)		(2.3	)		(0.6	)
Total interest expense	$	12.1		$	12.5		$	36.5		$	37.2

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NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

6. Commitments and Contingencies

Commitments. We have a variety of financial commitments, including purchase agreements, forward foreign exchange and forward sales contracts, indebtedness and letters of credit (see Note 4 and Note 5).

Environmental Contingencies. We are subject to a number of environmental laws and regulations, to potential fines or penalties assessed for alleged breaches of such laws and regulations and to potential claims based upon such laws and regulations. We are also subject to legacy environmental contingencies related to activities that occurred at operating facilities prior to July 6, 2006, which represent the majority of our environmental accruals. See below for our discussion of the status of these environmental contingencies. We have established procedures for regularly evaluating environmental loss contingencies. Our environmental accruals represent our undiscounted estimate of costs reasonably expected to be incurred based on presently enacted laws and regulations, currently available facts, existing requirements, existing technology and our assessment of the likely remediation actions to be taken.

We continue to pursue remediation activities, primarily to address the historical use of oils containing polychlorinated biphenyls (“PCBs”) at our Spokane, Washington (“Trentwood”) facility. Our remediation efforts are in collaboration with the Washington State Department of Ecology (“Ecology”), to which we submitted a feasibility study in 2012 of remediation alternatives and from which we received permission to begin certain remediation activities pursuant to a signed work order. We have completed a number of sections of the work plan and have received satisfactory completion approval from Ecology on those sections. In cooperation with Ecology, we constructed an experimental treatment facility to determine the treatability and evaluate the feasibility of removing PCBs from ground water under the Trentwood facility. In 2015, we began treatment operations involving a walnut shell filtration system, which we optimized for maximum PCB capture during 2020. Furthermore, based on advancements in technology, we signed an Amended Agreed Order with Ecology in 2020 to evaluate and implement new technologies for PCB removal from groundwater on a pilot basis. The primary technology we are evaluating is Ultraviolet Light Advanced Oxidation Process. As the long-term success of the new methodology cannot be reasonably determined at this time, it is possible we may need to make upward adjustments to our related accruals and cost estimates as the long term results become available.

Pursuant to a consent agreement with the Ohio Environmental Protection Agency (“OEPA”), we initiated an investigational study of our Newark, Ohio (“Newark”) facility related to historical on-site waste disposal. During the quarter ended December 31, 2018, we submitted our remedial investigation study to the OEPA for review and approval. The final remedial investigation report was approved by the OEPA during the quarter ended December 31, 2020. We are currently preparing the required feasibility study, which we expect to submit to the OEPA for review during the quarter ending March 31, 2023. The actual and final remediation cost estimates will not be fully determinable until the feasibility study has been accepted by the OEPA and the selected remediation design work plans are completed, which we expect to occur in the next 14 to 20 months.

At September 30, 2022, our environmental accrual of $14.9 million represented our estimate of the incremental remediation cost based on: (i) proposed alternatives in the final feasibility study related to the Trentwood facility; (ii) currently available facts with respect to our Newark facility; and (iii) facts related to certain other locations owned or formerly owned by us. In accordance with approved and proposed remediation action plans, we expect that the implementation and ongoing monitoring could occur over a period of 30 or more years.

As additional facts are developed, feasibility studies are completed, remediation plans are modified, necessary regulatory approvals for the implementation of remediation are obtained, alternative technologies are developed and/or other factors change, there may be revisions to management’s estimates and actual costs may exceed the current environmental accruals. We believe at this time that it is reasonably possible that undiscounted costs associated with these environmental matters may exceed current accruals by amounts that could be, in the aggregate, up to an estimated $11.6 million over the remediation period. It is reasonably possible that our recorded estimate will change in the next 12 months.

Warrick Rolling Mill CARO Liability. During the quarter ended March 31, 2022, we identified conditional asset retirement obligations (“CAROs”) related to the future removal and disposal of asbestos that is contained within the Warrick rolling mill facility. We believe that the asbestos is appropriately contained in accordance with current environmental regulations. If the facility were demolished or subject to renovation activities that disturb the asbestos, certain environmental regulations are in place which specify the manner in which the asbestos must be handled and disposed. We are required to record the fair value of CAROs if they can be

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NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

reasonably estimated. As of September 30, 2022, our liability related to these CAROs was $2.3 million and was included within Long‑term liabilities on our Consolidated Balance Sheets.

Other Contingencies. We are party to various lawsuits, claims, investigations and administrative proceedings that arise in connection with past and current operations. We evaluate such matters on a case-by-case basis and our policy is to vigorously contest any such claims we believe are without merit. We accrue for a legal liability when it is both probable that a liability has been incurred and the amount of the loss is reasonably estimable. Quarterly, in addition to when changes in facts and circumstances require it, we review and adjust these accruals to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. While uncertainties are inherent in the final outcome of such matters and it is presently impossible to determine the actual cost that may ultimately be incurred, we believe that we have sufficiently accrued for such matters and that the ultimate resolution of pending matters will not have a material impact on our consolidated financial position, operating results or liquidity.

7. Accumulated Other Comprehensive (Loss) Income

The following table presents the changes in the accumulated balances for each component of AOCI (in millions of dollars):

	Quarter Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Defined Benefit Pension Plans and Salaried VEBA:
Beginning balance	$	(19.6	)	$	(18.4	)	$	(21.4	)	$	(19.8	)
Amortization of net actuarial loss1		—			0.1			—			0.3
Amortization of prior service cost1		1.2			0.9			3.7			2.6
Less: income tax expense2		(0.2	)		(0.2	)		(0.9	)		(0.7	)
Other comprehensive income, net of tax		1.0			0.8			2.8			2.2
Ending balance	$	(18.6	)	$	(17.6	)	$	(18.6	)	$	(17.6	)
Cash Flow Hedges:
Beginning balance	$	(1.7	)	$	24.8		$	17.7		$	1.1
Unrealized (loss) gain on cash flow hedges		(9.8	)		29.8			(18.2	)		72.1
Less: income tax benefit (expense)		2.2			(7.0	)		4.2			(17.0	)
Net unrealized (loss) gain on cash flow hedges		(7.6	)		22.8			(14.0	)		55.1
Reclassification of unrealized loss (gain) upon settlement of cash flow hedges		8.1			(16.7	)		(8.9	)		(28.1	)
Less: income tax (expense) benefit2		(1.9	)		3.9			2.1			6.7
Net loss (gain) reclassified from AOCI to Net income (loss)		6.2			(12.8	)		(6.8	)		(21.4	)
Other comprehensive (loss) income, net of tax		(1.4	)		10.0			(20.8	)		33.7
Ending balance3	$	(3.1	)	$	34.8		$	(3.1	)	$	34.8
Foreign Currency Translation:
Beginning balance	$	—		$	(0.1	)	$	—		$	—
Other comprehensive income (loss), net of tax		—			—			—			(0.1	)
Ending balance	$	—		$	(0.1	)	$	—		$	(0.1	)
Total AOCI ending balance	$	(21.7	)	$	17.1		$	(21.7	)	$	17.1

1Amounts amortized out of AOCI relating to Salaried VEBA adjustments were included within Other income (expense), net, as a component of Net periodic postretirement benefit cost relating to Salaried VEBA.

2Income tax amounts reclassified out of AOCI were included as a component of Income tax (provision) benefit.

3As of September 30, 2022, we estimate a net mark-to-market loss before tax of $7.6 million in AOCI will be reclassified into Net income (loss) upon settlement within the next 12 months.

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KAISER ALUMINUM CORPORATION AND SUBSIDIARY COMPANIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

8. Other Income (Expense), Net

Other income (expense), net consisted of the following (in millions of dollars):

	Quarter Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Interest income	$	0.4		$	0.1		$	0.6		$	0.2
Net periodic postretirement benefit cost		(1.4	)		(1.2	)		(4.3	)		(3.0	)
Unrealized (loss) gain on equity securities		(0.3	)		—			(1.4	)		—
Gain (loss) on extinguishment of debt		—			—			—			(35.9	)
Gain (loss) on disposition of property, plant and equipment		8.4			—			6.3			(0.1	)
Post-acquisition funding received from Alcoa Corporation1		6.0			—			6.0			—
All other, net		(0.4	)		(0.1	)		0.2			0.6
Other income (expense), net	$	12.7		$	(1.2	)	$	7.4		$	(38.2	)

1Reimbursement received for repairs and maintenance expenditures on certain machinery and equipment that we had purchased from Alcoa Corporation in connection with our March 31, 2021 acquisition of the Warrick rolling mill.

9. Income Tax Matters

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

	Quarter Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Domestic	$	(1.0	)	$	(8.8	)	$	0.9		$	8.5
Foreign		(0.1	)		0.4			(1.2	)		(1.1	)
Total	$	(1.1	)	$	(8.4	)	$	(0.3	)	$	7.4

The income tax (provision) benefit for the quarters ended September 30, 2022 and September 30, 2021 was $(1.1) million and $(8.4) million, respectively, reflecting an effective tax rate of 33% and 137%, respectively. The difference between the effective tax rate and the blended statutory tax rate for the quarter ended September 30, 2022 was primarily due to an increase of 13% for a change in forecasted earnings and its impact on the annual effective tax rate, partially offset by a decrease of 5% for the recognition of excess book benefits from stock-based compensation.

The difference between the effective tax rate and the projected blended statutory tax rate for the quarter ended September 30, 2021 was primarily due to an increase of 116% of taxable income for a change in forecasted earnings and its impact on the annual effective tax rate, partially offset by a decrease of 2% related to the valuation allowance for certain state net operating losses and a decrease of 1% for the recognition of excess tax benefits from stock-based compensation.

The income tax (provision) benefit for the nine months ended September 30, 2022 and September 30, 2021 was $(0.3) million and $7.4 million, respectively, reflecting an effective tax rate of (14%) and 27%, respectively. The difference between the effective tax rate and the projected blended statutory tax rate for the nine months ended September 30, 2022 was primarily due to: (i) a decrease of 42% related to a Federal Research and Development Credit; (ii) a decrease of 11% for the recognition of excess book benefits from stock-based compensation; (iii) a decrease of 4% related to the valuation allowance for certain state net operating losses; and (iv) a decrease of 2% for related to unrecognized tax benefits, including interest and penalties, partially offset by an increase related to permanent items of 21%, including non-deductible compensation expense and foreign withholding tax.

The difference between the effective tax rate and the projected blended statutory tax rate for the nine months ended September 30, 2021 was primarily due to: (i) an increase of 4% related to the valuation allowance for certain state net operating losses; (ii) an increase of 3% related to tax credits; (iii) an increase of 2% for the recognition of excess tax benefits from stock-based compensation; and (iv) an increase of 2% for a change in state tax rate due to the Warrick acquisition, partially offset by a decrease related to permanent items of 7%, including non-deductible compensation expense and foreign withholding tax.

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KAISER ALUMINUM CORPORATION AND SUBSIDIARY COMPANIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

Our gross unrecognized benefits relating to uncertain tax positions were $5.0 million and $4.1 million at September 30, 2022 and December 31, 2021, respectively, of which, $5.0 million and $4.1 million would be recorded through our income tax provision and thus, impact the effective tax rate at September 30, 2022 and December 31, 2021, respectively, if the gross unrecognized tax benefits were to be recognized.

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

10. Net Income (Loss) Per Share

Basic net income (loss) per share is computed by dividing distributed and undistributed net income (loss) allocable to common shares by the weighted-average number of common shares outstanding during the applicable period. The basic weighted-average number of common shares outstanding during the period excludes non-vested share-based payment awards. Diluted net income (loss) per share was calculated under the treasury stock method for the quarters and nine months ended September 30, 2022 and September 30, 2021, which in both periods was more dilutive than the two-class method.

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

	Quarter Ended September 30,					Nine Months Ended September 30,
	2022		2021			2022			2021
Numerator:
Net income (loss)	$	2.5	$	(2.3	)	$	(3.2	)	$	(20.2	)
Denominator – Weighted-average common shares outstanding (in thousands):
Basic		15,926		15,852			15,897			15,831
Add: dilutive effect of non-vested common shares, restricted stock units and performance shares1		103		—			—			—
Diluted		16,029		15,852			15,897			15,831
Net income (loss) per common share, Basic:	$	0.16	$	(0.14	)	$	(0.20	)	$	(1.28	)
Net income (loss) per common share, Diluted:	$	0.16	$	(0.14	)	$	(0.20	)	$	(1.28	)

1Quantities in the following discussion are denoted in whole shares. For the quarter ended September 30, 2022, approximately 36,000 shares were excluded from the weighted-average diluted shares computation as their inclusion would have been anti‑dilutive. For the quarter ended September 30, 2021 and the nine months ended September 30, 2022 and September 30, 2021, approximately 210,000, 141,000 and 198,000 shares, respectively, were excluded from the computation of net loss per share as their inclusion would have been anti‑dilutive.

11. Supplemental Cash Flow Information

	Nine Months Ended September 30,
	2022		2021
	(In millions of dollars)
Interest paid	$	34.2	$	35.9
Non-cash investing and financing activities (included in Accounts payable):
Unpaid purchases of property and equipment	$	40.6	$	10.1
Supplemental lease disclosures:
Operating lease liabilities arising from obtaining operating lease assets	$	2.7	$	24.3
Cash paid for amounts included in the measurement of operating lease liabilities	$	7.3	$	5.7
Finance lease liabilities arising from obtaining finance lease assets	$	0.4	$	2.1

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KAISER ALUMINUM CORPORATION AND SUBSIDIARY COMPANIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

	As of September 30,
	2022		2021
	(In millions of dollars)
Components of cash, cash equivalents and restricted cash:
Cash and cash equivalents	$	129.3	$	295.7
Restricted cash included in Other assets1		14.2		13.8
Total cash, cash equivalents and restricted cash presented on our Statements of Consolidated Cash Flows	$	143.5	$	309.5

1We are required to keep on deposit certain amounts that are pledged or held as collateral relating to workers’ compensation and other agreements. We account for such deposits as restricted cash. From time-to-time, such restricted funds could be returned to us or we could be required to pledge additional cash.

12. Business, Product and Geographical Area Information

Our primary line of business is the production of semi-fabricated specialty aluminum mill products, such as bare and coated coils, plate and sheet and extruded and drawn products, for the following end market applications: (i) aerospace and high strength (“Aero/HS products”); (ii) beverage and food packaging products (“Packaging”); (iii) automotive (“Automotive Extrusions”); (iv) general engineering (“GE products”); and (v) other industrial (“Other products”). We operate 13 focused production facilities in the United States and one in Canada. Our chief operating decision maker reviews and evaluates our business as a single operating segment.

The following table presents Net sales by end market applications and by timing of control transfer (in millions of dollars):

	Quarter Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Net sales:
Aero/HS products	$	140.8	$	142.0	$	492.8	$	387.6
Packaging		341.5		367.3		1,240.2		726.1
Automotive Extrusions		60.6		50.1		196.0		163.3
GE products		200.3		187.1		699.2		518.4
Other products		5.7		4.1		23.7		20.2
Total net sales	$	748.9	$	750.6	$	2,651.9	$	1,815.6
Timing of revenue recognition:
Products transferred at a point in time	$	630.2	$	613.6	$	2,165.1	$	1,419.5
Products transferred over time		118.7		137.0		486.8		396.1
Total net sales	$	748.9	$	750.6	$	2,651.9	$	1,815.6

The following table presents geographic information for income taxes paid (in millions of dollars):

	Quarter Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Income taxes paid:
Domestic	$	0.3	$	—	$	2.7	$	1.2
Foreign		1.6		0.2		2.6		0.8
Total income taxes paid	$	1.9	$	0.2	$	5.3	$	2.0

13. Subsequent Events

Dividend Declaration. On October 13, 2022, we announced that our Board of Directors declared a quarterly cash dividend of $0.77 per common share. As such, we expect to pay approximately $12.5 million (including dividend equivalents) on or about November 15, 2022 to stockholders of record and the holders of certain restricted stock units at the close of business on October 25, 2022.

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

Forward-Looking Statements

This Quarterly Report on Form 10-Q (“Report”) contains statements which constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear throughout this Report and can be identified by the use of forward-looking terminology such as “believes,” “expects,” “may,” “estimates,” “will,” “should,” “plans” or “anticipates,” or the negative of the foregoing or other variations of comparable terminology, or by discussions of strategy. Readers are cautioned that any such forward‑looking statements are not guarantees of future performance and involve significant risks and uncertainties and that actual results may vary from those in the forward-looking statements as a result of various factors. These factors include: (i) the effectiveness of management’s strategies and decisions, including strategic investments, capital spending strategies, processes and countermeasures implemented to address operational and supply chain challenges and the execution of those strategies; (ii) general economic and business conditions, including the impact of geopolitical factors and governmental and other actions taken in response, cyclicality, reshoring, labor challenges, supply interruptions, including the most recent disruptions resulting from the supply demand imbalances in the magnesium and silicon markets, and other conditions that impact demand drivers in the aerospace/high strength, packaging, general engineering, automotive and other end markets we serve; (iii) our ability to participate in mature and anticipated new automotive programs expected to launch in the future and successfully launch new automotive programs; (iv) changes or shifts in defense spending due to competing national priorities; (v) pricing, market conditions and our ability to effectively execute commercial and labor strategies, pass through cost increases, including the institution of surcharges, and flex costs in response to changing economic conditions and inflation; (vi) developments in technology; (vii) the impact of our future earnings, cash flows, financial condition, capital requirements and other factors on our financial strength and flexibility; (viii) new or modified statutory or regulatory requirements; and (ix) the successful integration of acquired operations and technologies continue to drive innovative solutions and further advance our capabilities. This Item and Part I, Item 1A. “Risk Factors” included in our Annual Report on Form 10-K for the year ended December 31, 2021 each identify other factors that could cause actual results to vary. No assurance can be given that these are all of the factors that could cause actual results to vary materially from the forward looking statements.

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with Part I, Item 1. “Financial Statements” of this Report and our consolidated financial statements and related notes included in Part II, Item 8. “Financial Statements and Supplementary Data” of our Annual Report on Form 10-K for the year ended December 31, 2021.

Non-GAAP Financial Measures

This information contains certain non-GAAP financial measures. A non-GAAP financial measure is defined as a numerical measure of a company’s financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles (“GAAP”) in the statements of income, balance sheets or statements of cash flows of the company. We have provided a reconciliation of non‑GAAP financial measures to the most directly comparable financial measure in the accompanying tables. We have also provided discussion of the reasons we believe that presentation of the non-GAAP financial measures provide useful information to investors, as well as any additional ways in which we use the non-GAAP financial measures. The non-GAAP financial measures used in the following discussions are value added revenue (“VAR”), adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) and ratios related thereto. These measures are presented because management uses this information to monitor and evaluate financial results and trends and believes this information to also be useful for investors.

In the discussion of operating results below, we refer to certain items as “non-run-rate items.” For purposes of such discussion, non-run-rate items are items that, while they may recur from period-to-period: (i) are particularly material to results; (ii) affect costs primarily as a result of external market factors; and (iii) may not recur in future periods if the same level of underlying performance were to occur. Non-run-rate items are part of our business and operating environment but are worthy of being highlighted for the benefit of readers of our financial statements. Our intent is to allow users of the financial statements to consider our results both in light of and separately from such items. For a reconciliation of Adjusted EBITDA to Net income (loss), see below in “Results of Operations - Selected Operational and Financial Information.” Reconciliations of certain forward-looking non-GAAP financial measures to comparable GAAP measures are not provided because certain items required for such reconciliations are outside of our control and/or cannot be reasonably predicted or provided without unreasonable effort.

Metal Pricing Policies

A fundamental part of our business model is to remain neutral to the impact from fluctuations in the market price for aluminum and certain alloys, thereby earning profit predominately from the conversion of aluminum into semi-fabricated mill products. We refer to this as “metal price neutrality.” We purchase primary and scrap, or recycled, aluminum, our main raw material, and alloys at prices that fluctuate on a monthly basis, and our pricing policies generally allow us to pass the underlying cost of aluminum and alloys

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through to our customers so that we remain neutral to metal pricing. However, for some of our higher VAR products sold on a spot basis, competitive dynamics may limit the amount and/or delay the timing of selling price increases to recover our increased aluminum and alloy costs, resulting in a lag up to several months during which we may be exposed to metal price risk. As a result, we can experience an adverse impact when aluminum and alloy prices increase, and a favorable impact to us when aluminum and alloy prices decline, as we and our competitors tend to defer adjusting pricing unless market dynamics require such in a declining metal cost environment. Additionally, we sometimes enter into firm-price customer sales agreements that specify a firm underlying metal price plus a conversion price. Spot sales with lagged aluminum and alloy price pass through and firm-price sales agreements create price exposure for us, which we mitigate through a hedging program with an objective to remain metal price neutral.

Our pricing policies and hedging program are intended to significantly reduce or eliminate the impact on our profitability of fluctuations in underlying price of primary and scrap, or recycled, aluminum, our main raw material, and alloys so that our earnings are predominantly associated with the conversion of aluminum to semi‑fabricated mill products. To allow users of our financial statements to consider the impact of aluminum and alloy cost on our Net sales, we disclose Net sales as well as VAR, which is Net sales less the Hedged Cost of Alloyed Metal. As used in this discussion, “Hedged Cost of Alloyed Metal” is the cost of aluminum at the average Midwest Transaction Price (“Midwest Price”) plus the cost of alloying elements and any realized gains and/or losses on settled hedges related to the metal sold in the referenced period. The average Midwest Price of aluminum reflects the primary aluminum supply/demand dynamics in North America. For a reconciliation of VAR to Net sales, see below in “Results of Operations - Selected Operational and Financial Information.”

Business Overview

We manufacture and sell semi-fabricated specialty aluminum mill products for the following end market applications: (i) aerospace and high strength (“Aero/HS products”); (ii) aluminum beverage and food packaging (“Packaging”); (iii) general engineering (“GE products”); (iv) automotive (“Automotive Extrusions”); and (v) other industrial (“Other products”). Our fabricated aluminum mill products include flat-rolled (plate, sheet and coil), extruded (rod, bar, hollows and shapes), drawn (rod, bar, pipe, tube and wire) and certain cast aluminum products. The sophistication of our products is due to the metallurgy and physical properties of the metal and the special characteristics that are required for particular end uses. We strategically choose to serve technically challenging applications for which we can deploy our core metallurgical and process technology capabilities to produce highly engineered mill products with differentiated characteristics that present opportunities for us to receive premium pricing and to create long-term profitable growth.

With respect to the global market for flat-rolled aluminum mill products, our focus is on heat treat plate and sheet for applications that require higher strength and other desired product attributes that cannot be achieved by common alloy rolled products. The primary end market applications of flat-rolled heat treat plate and sheet, which are produced at our rolling mill in Spokane, Washington (“Trentwood”), are Aero/HS products (which we sell globally) and GE products (which we predominantly sell within North America). On March 31, 2021, with the completion of our acquisition of Alcoa Warrick LLC and certain assets comprising the aluminum casting and rolling mill facility located in Warrick County, Indiana (collectively, “Warrick”), we expanded our flat-rolled aluminum products to include bare and coated aluminum coil for can stock applications in the beverage and food packaging industry in North America. Our Packaging products require demanding attributes and can be further processed to include coating and slitting depending on customer specifications.

In the areas of aluminum extrusions, we focus on demanding Aero/HS products, GE products and Automotive Extrusions that require high strength, machinability or other specific properties where we can create and maintain a defensible competitive position because of our technical expertise, strong production capability and high product quality. Our 11 extrusion/drawing facilities, 10 of which are in the United States and one of which is in Canada, serve primarily North American demand for aerospace, general engineering or automotive applications. Additionally, we have a facility in Columbia, New Jersey, that focuses on multi-material advanced manufacturing methods and techniques, which include multi-axis computer numerical control (“CNC”) machining, additive manufacturing (“3D Printing”), welding and fabrication for demanding aerospace and defense, high tech, general industrial and automotive applications. Our consolidated Net sales for the nine months ended September 30, 2022 totaled $2.7 billion on 952.4 million pounds shipped from our facilities. We employed approximately 4,000 people at September 30, 2022.

We have long-standing relationships with our customers, which consist primarily of blue-chip companies including leading aerospace and automotive manufacturers, tier one aerospace and automotive suppliers, food and beverage packaging manufacturers and metal service centers. Approximately 72% of our shipments is sold direct to manufacturers or tier one suppliers and approximately 28% is sold to metal service centers. In our served markets, we seek to be the supplier of choice by pursuing “Best in Class” customer satisfaction driven by quality, availability, service and delivery performance. We believe we differentiate our product portfolio through our broad product offering and our KaiserSelect® products, which are engineered and manufactured to deliver enhanced product characteristics with improved consistency, so as to result in better performance, lower waste and, in many cases, lower production cost for our customers.

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Molten Metal and Magnesium Supply Chain Issues

As we have previously discussed, Warrick has faced specific challenges with the September 2021 force majeure declaration of its primary magnesium supplier, US Magnesium, LLC (“US Mag”), which resulted in a significant reduction in deliveries while we were also being impacted by the operational challenges Alcoa Corporation was experiencing at its adjacent smelter, which supplies molten metal to Warrick. In June 2022, US Mag deliveries unexpectedly stopped while performance of the smelter also rapidly deteriorated, negatively impacting Warrick’s operating efficiency and financial performance. As a result of the abrupt and unexpected decline in magnesium supply, on July 7, 2022, we declared force majeure at Warrick due to the limited availability of magnesium utilized in the production of our beverage and food packaging products, reducing our ability to produce those products at the time.

After successfully securing and qualifying magnesium from additional sources, on September 6, 2022 we announced that we had lifted our force majeure declaration and have now sourced Warrick's magnesium requirements through 2023 and beyond. Our supply base is now well diversified and not reliant on any one single supplier or geographical region. In addition, the molten metal supply at Warrick has improved to an acceptable level and we have access to alternative sources of molten metal to further diversify our Warrick metal supply and mitigate the risk of any further smelter operational disruptions.

Highlights of the quarter ended September 30, 2022 include:

• Force majeure lifted early September after successfully securing and qualifying additional magnesium sources;

• Molten metal supply chain issues addressed and access to additional molten metal sources identified;

• Completion of planned major outage, which included refurbishment of the large stretcher, at our Trentwood facility;

• Strong demand for Packaging and general engineering plate;

• Increasing demand for commercial aerospace while defense and business jet applications demand remained strong; and

• Cash dividends and dividend equivalents of $0.77 per share or $12.5 million paid during the quarter ended September 30, 2022.

Results of Operations

Consolidated Results of Operations

Net Sales. Net sales totaled $748.9 million and $750.6 million for the quarters ended September 30, 2022 and September 30, 2021, respectively, reflecting a 33.3 million pound decrease in shipment volume and a $0.28/lb (12%) increase in average realized sales price per pound. The shipment volume decrease reflected: (i) a 26.1 million pound (15%) decrease in Packaging due to the operational issues discussed above in “Molten Metal and Magnesium Supply Chain Issues”; (ii) a 6.2 million pound (8%) decrease in GE products reflecting softness in demand for extruded rod and bar products shipped to service centers; (iii) a 4.1 million pound (10%) decrease in Aero/HS products reflecting the impact of the planned outage at our Trentwood facility; and (iv) a 1.4 million pound (34%) decrease in Other products, partially offset by a 4.5 million pound (23%) increase in Automotive Extrusions. The increase in average realized sales price per pound was primarily due to a $0.29/lb (30%) increase in VAR per pound reflecting higher pricing and surcharges to offset higher inflationary and commodity related costs. For further details, see the table below in “Selected Operational and Financial Information.”

Net sales totaled $2,651.9 million and $1,815.6 million for the nine months ended September 30, 2022 and September 30, 2021, respectively, reflecting a 163.7 million pound (21%) increase in shipment volume and a $0.48/lb (21%) increase in average realized sales price per pound. The shipment volume increase reflected: (i) a 142.5 million pound (40%) increase in Packaging reflecting a full nine months of shipments during 2022 as a result of our Warrick acquisition, which was completed on March 31, 2021; (ii) a 12.8 million pound (11%) increase in Aero/HS products reflecting continued strength in demand for our business jet and defense related applications, and improving demand for commercial aerospace as we continue to see the recovery in air travel and higher shipments of new aircraft from both major airframe producers; (iii) a 10.5 million pound (5%) increase in GE products reflecting continued strong underlying demand for semiconductor plate and industrial and machine tools; and (iv) a 1.0 million pound (1%) increase in Automotive Extrusions, which was relatively flat over prior year, driven by the shortage of semiconductors and other supply chain issues that has impacted the North American automotive production levels. The increase in average realized sales price per pound reflected a $0.33/lb (26%) increase in average Hedged Cost of Alloyed Metal price per pound and a $0.15/lb (15%) increase in VAR per pound reflecting higher pricing and surcharges to offset higher inflationary and commodity related costs. For further details, see the table below in “Selected Operational and Financial Information.”

Cost of Products Sold, Excluding Depreciation and Amortization and Other Items. Cost of products sold, excluding depreciation and amortization and other items for the quarter ended September 30, 2022 totaled $694.9 million, or 93% of Net sales, compared to

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$677.8 million, or 90% of Net sales, for the quarter ended September 30, 2021. The increase of $17.1 million reflected a $69.1 million increase in net manufacturing conversion and other costs, partially offset by a $52.0 million decrease in Hedged Cost of Alloyed Metal. Of the $52.0 million decrease in Hedged Cost of Alloyed Metal, $46.9 million was due to lower shipment volume and $5.1 million was due to lower hedged metal prices, see above in our “Net Sales” discussion for further details. The $69.1 million increase in net manufacturing conversion and other costs reflected: (i) a $34.9 million increase related to lower utilization of scrap, or recycled aluminum, and higher alloy input costs per unit of production, which includes the majority of the magnesium and molten metal supply chain issues as discussed above in “Molten Metal and Magnesium Supply Chain Issues”; (ii) a $26.7 million increase in manufacturing costs due to lower efficiencies and higher employee related costs; (iii) a $5.6 million increase in energy costs; and (iv) $1.0 million of higher benefits and overhead costs. For a further discussion of the comparative results of operations for the quarters ended September 30, 2022 and September 30, 2021, see below in “Selected Operational and Financial Information.”

Cost of products sold, excluding depreciation and amortization and other items for the nine months ended September 30, 2022 totaled $2,459.2 million, or 93% of Net sales, compared to $1,613.6 million, or 89% of Net sales, for the nine months ended September 30, 2021. The increase of $845.6 million reflected: (i) a $529.0 million increase in Hedged Cost of Alloyed Metal and (ii) a $316.6 million increase in net manufacturing conversion and other costs. Of the $529.0 million increase in Hedged Cost of Alloyed Metal, $317.1 million was due to higher hedged metal prices and $211.9 million was due to higher shipment volume, see above in our “Net Sales” discussion for further details. The $316.6 million increase in net manufacturing conversion and other costs reflected: (i) a $174.6 million increase related to higher sales, primarily due to a full nine months of shipments during 2022 as a result of our Warrick acquisition, which was completed on March 31, 2021; (ii) a $63.2 million increase in manufacturing costs due to lower efficiencies and higher employee related costs; (iii) $42.8 million of higher benefits and overhead costs; and (iv) $27.9 million of higher energy, freight and metal costs driven by inflation, transportation bottlenecks and supply chain inefficiencies. Principal factors contributing to our inflationary pressures include supply chain disruptions, labor shortages and geopolitical factors. For a further discussion of the comparative results of operations for the nine months ended September 30, 2022 and September 30, 2021, see below in “Selected Operational and Financial Information.”

Selling, General, Administrative, Research and Development (“SG&A and R&D”). SG&A and R&D expense totaled $25.2 million and $28.1 million for the quarters ended September 30, 2022 and September 30, 2021, respectively, and $82.9 million and $90.8 million for nine months ended September 30, 2022 and September 30, 2021, respectively. The decrease during the quarter ended September 30, 2022 was primarily due to a $3.2 million decrease in legal, consulting and outsourced services expense primarily related to the completion of Warrick integration activities. The decrease for the nine months ended September 30, 2022 compared with September 30, 2021 was due primarily to a $14.8 million decrease in legal, consulting and outsourced services expense primarily related to the completion of Warrick integration activities, partially offset by: (i) a $4.2 million increase due to the addition of Warrick operations and (ii) a $2.9 million increase in salaries and benefits.

Restructuring Cost (Benefit). Restructuring cost (benefit) was a benefit of $0.8 million for the nine months ended September 30, 2021 due to cost estimate revisions. We fulfilled all remaining obligations under this restructuring plan as of December 31, 2021.

Other Operating Charges, Net. Other operating charges, net, of $3.2 million for the nine months ended September 30, 2022 was primarily due to the impairment of our favorable commodity contract intangible asset. See Note 1 of Notes to Interim Consolidated Financial Statements included in this Report for further details.

Interest Expense. See Note 5 of Notes to Interim Consolidated Financial Statements included in this Report for a discussion of our debt and credit facilities that were in effect during the quarters and nine months ended September 30, 2022 and September 30, 2021 and interest expense capitalized as part of construction in progress.

Other Income (Expense), Net. See Note 8 of Notes to Interim Consolidated Financial Statements included in this Report for details.

Income Tax (Provision) Benefit. See Note 9 of Notes to Interim Consolidated Financial Statements included in this Report for disclosure regarding our income tax (provision) benefit.

Selected Operational and Financial Information

The following data should be read in conjunction with our consolidated financial statements and the notes thereto included in Part I, Item 1. “Financial Statements” of this Report. Interim results are not necessarily indicative of those for a full year.

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The table below provides selected operational and financial information (in millions of dollars):

	Quarter Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Net income (loss)	$	2.5		$	(2.3	)	$	(3.2	)	$	(20.2	)
Interest expense		12.1			12.5			36.5			37.2
Other (income) expense, net		(12.7	)		1.2			(7.4	)		38.2
Income tax provision (benefit)		1.1			8.4			0.3			(7.4	)
Depreciation and amortization		25.8			24.9			80.4			64.2
Non-run-rate items:
Restructuring cost (benefit)		—			—			—			(0.8	)
Adjustments to plant-level LIFO1		2.7			(0.3	)		15.3			10.9
Mark-to-market loss on derivative instruments2		—			2.0			1.9			2.1
Non-cash asset impairment charge		—			—			3.2			—
Environmental expenses3		—			0.2			0.1			0.2
Acquisition (credits) costs4		(0.1	)		3.8			0.4			22.2
Total non-run-rate items		2.6			5.7			20.9			34.6
Adjusted EBITDA	$	31.4		$	50.4		$	127.5		$	146.6

1We manage our business on a monthly last-in, first-out (“LIFO”) basis at each plant, but report inventory externally on an annual LIFO basis in accordance with GAAP on a consolidated basis. This line item represents the conversion from GAAP LIFO applied on a consolidated basis to monthly LIFO applied on a plant-by-plant basis. For the quarter and nine months ended September 30, 2021, this line item reflects a $1.4 million non-run-rate LIFO benefit and a $6.4 million non-run-rate LIFO charge, respectively, that resulted from a purchase accounting adjustment to step-up Warrick’s inventory to fair value.

2Mark-to-market loss on derivative instruments represented: (i) for 2022 and 2021, the loss on non-designated commodity hedges and (ii) for 2021, the reversal of mark-to-market loss on commodity hedges entered into prior to the adoption of Accounting Standards Update (“ASU”) No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”) and settled in the periods presented. Adjusted EBITDA reflects the realized gains and losses related to these derivatives upon settlement.

3Non-run-rate environmental expenses are related to legacy activities at operating facilities prior to July 6, 2006. See Note 6 of Notes to Interim Consolidated Financial Statements included in this Report for additional information relating to the environmental expenses.

4Acquisition (credits) costs are non-run-rate acquisition-related transaction items, which include professional fees, as well as non‑cash hedging charges recorded in connection with our Warrick acquisition.

Adjusted EBITDA for the quarter ended September 30, 2022 was $19.0 million lower than Adjusted EBITDA for the quarter ended September 30, 2021. Adjusted EBITDA for the quarter ended September 30, 2022 was impacted by approximately $24.0 million of incremental cost related to supply chain issues in connection with molten metal and magnesium supplies, see above in “Molten Metal and Magnesium Supply Chain Issues,” manufacturing inefficiencies related to the Warrick magnesium related curtailment and the Trentwood planned outage. In addition, the current quarter was impacted by higher major maintenance, manufacturing, energy and employee related cost, which were partially offset by improved pricing and commodity and freight surcharges. See above in “Consolidated Results of Operations” for further details.

Adjusted EBITDA for the nine months ended September 30, 2022 was $19.1 million lower than Adjusted EBITDA for the nine months ended September 30, 2021. Adjusted EBITDA for the nine months ended September 30, 2022 reflected the full nine months of our packaging operations, which were offset by approximately $54.0 million of incremental costs associated with magnesium and metal supply chain issues and higher transportation costs. In addition, we had inflation driven higher energy, manufacturing and employee related cost that were not fully recovered through pricing increases.

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The following table provides our shipment and VAR information (in millions of dollars, except shipments and VAR per pound) by end market applications:

	Quarter Ended September 30,												Nine Months Ended September 30,
	2022						2021						2022						2021
Aero/HS Products:
Shipments (mmlbs)	38.0						42.1						131.8						119.0
	$			$ / lb			$			$ / lb			$			$ / lb			$			$ / lb
Net sales	$	140.8		$	3.71		$	142.0		$	3.37		$	492.8		$	3.74		$	387.6		$	3.26
Less: Hedged Cost of Alloyed Metal		(55.0	)		(1.45	)		(60.5	)		(1.43	)		(215.0	)		(1.63	)		(155.2	)		(1.31	)
VAR	$	85.8		$	2.26		$	81.5		$	1.94		$	277.8		$	2.11		$	232.4		$	1.95
Packaging:
Shipments (mmlbs)	147.5						173.6						502.0						359.5
	$			$ / lb			$			$ / lb			$			$ / lb			$			$ / lb
Net sales	$	341.5		$	2.32		$	367.3		$	2.12		$	1,240.2		$	2.47		$	726.1		$	2.02
Less: Hedged Cost of Alloyed Metal		(194.4	)		(1.32	)		(241.3	)		(1.39	)		(793.2	)		(1.58	)		(468.2	)		(1.30	)
VAR	$	147.1		$	1.00		$	126.0		$	0.73		$	447.0		$	0.89		$	257.9		$	0.72
Automotive Extrusions:
Shipments (mmlbs)	24.1						19.6						71.4						70.4
	$			$ / lb			$			$ / lb			$			$ / lb			$			$ / lb
Net sales	$	60.6		$	2.51		$	50.1		$	2.56		$	196.0		$	2.75		$	163.3		$	2.32
Less: Hedged Cost of Alloyed Metal		(34.3	)		(1.42	)		(29.0	)		(1.48	)		(119.8	)		(1.68	)		(89.7	)		(1.27	)
VAR	$	26.3		$	1.09		$	21.1		$	1.08		$	76.2		$	1.07		$	73.6		$	1.05
GE Products:
Shipments (mmlbs)	69.6						75.8						237.2						226.7
	$			$ / lb			$			$ / lb			$			$ / lb			$			$ / lb
Net sales	$	200.3		$	2.88		$	187.1		$	2.47		$	699.2		$	2.95		$	518.4		$	2.29
Less: Hedged Cost of Alloyed Metal		(105.5	)		(1.52	)		(111.7	)		(1.48	)		(406.1	)		(1.71	)		(294.3	)		(1.30	)
VAR	$	94.8		$	1.36		$	75.4		$	0.99		$	293.1		$	1.24		$	224.1		$	0.99
Other Products:
Shipments (mmlbs)	2.7						4.1						10.0						13.1
	$			$ / lb			$			$ / lb			$			$ / lb			$			$ / lb
Net sales	$	5.7		$	2.11		$	4.1		$	1.00		$	23.7		$	2.37		$	20.2		$	1.54
Less: Hedged Cost of Alloyed Metal		(4.0	)		(1.48	)		(2.7	)		(0.66	)		(15.4	)		(1.54	)		(13.2	)		(1.01	)
VAR	$	1.7		$	0.63		$	1.4		$	0.34		$	8.3		$	0.83		$	7.0		$	0.53
Total:
Shipments (mmlbs)	281.9						315.2						952.4						788.7
	$			$ / lb			$			$ / lb			$			$ / lb			$			$ / lb
Net sales	$	748.9		$	2.66		$	750.6		$	2.38		$	2,651.9		$	2.78		$	1,815.6		$	2.30
Less: Hedged Cost of Alloyed Metal		(393.2	)		(1.40	)		(445.2	)		(1.41	)		(1,549.5	)		(1.62	)		(1,020.6	)		(1.29	)
VAR	$	355.7		$	1.26		$	305.4		$	0.97		$	1,102.4		$	1.16		$	795.0		$	1.01

Outlook

While our financial and operational performance for the past several quarters have been significantly impacted by the magnesium and molten metal supply chain issues at our Warrick rolling mill, we have successfully resolved these challenges and as we proceed through the remainder of the year, we are positioned to operate on a more normalized basis, albeit in a challenging environment. With these major supply chain challenges behind us, we anticipate our Adjusted EBITDA and Adjusted EBITDA margin (Adjusted EBITDA as a percentage of VAR) in the fourth quarter ended December 31, 2022 will be similar to the first half of 2022. We remain focused on continuing to address inflationary challenges through pricing and cost reduction initiatives. Although economic uncertainty persists, our end market outlook remains positive. Longer-term, our strategy remains unchanged and we are well positioned for continued long-term growth with a diversified portfolio. The fundamentals of our Aero/HS products, Packaging, GE products and Automotive Extrusions end markets continue to be solid and we look forward to continuing to execute on our strategic initiatives to deliver long-term value to all of our stakeholders.

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Liquidity and Capital Resources

Summary

The following table summarizes our liquidity (in millions of dollars):

	As of September 30, 2022		As of December 31, 2021
Available cash and cash equivalents	$	129.3	$	303.2
Borrowing availability under Revolving Credit Facility, net of letters of credit1		555.0		367.3
Total liquidity	$	684.3	$	670.5

1In April 2022, we executed Amendment No. 3 to our revolving credit facility with Wells Fargo Bank, National Association, as administrative agent, and the other financial institutions party thereto (as amended, the “Revolving Credit Facility”) to: (i) increase the commitment to $575.0 million; (ii) extend the maturity date; (iii) update our borrowing base; and (iv) update relevant benchmark provisions to reference the Secured Overnight Financing Rate (“SOFR”). See Note 5 of Notes to Interim Consolidated Financial Statements included in this Report for further details. Borrowing availability under the Revolving Credit Facility was determined by a borrowing base calculated as of September 30, 2022 and December 31, 2021 using the terms of the Revolving Credit Facility in effect as of those dates.

We place our cash in bank deposits and money market funds with high credit quality financial institutions. Cash equivalents primarily consist of money market funds, which are highly liquid.

See Note 11 of Notes to Interim Consolidated Financial Statements included in this Report for information regarding restricted cash at September 30, 2022.

There were no borrowings under our Revolving Credit Facility as of both September 30, 2022 and December 31, 2021. See Note 5 of Notes to Interim Consolidated Financial Statements included in this Report.

Cash Flows

The following table summarizes our cash flows from operating, investing and financing activities (in millions of dollars):

	Nine Months Ended September 30,
	2022			2021
Total cash (used in) provided by:
Operating activities	$	(58.6	)	$	33.3
Investing activities	$	(71.7	)	$	(639.5	)
Financing activities	$	(43.2	)	$	121.4

Cash used in operating activities for the nine months ended September 30, 2022 reflected results of business activity described above in our “Consolidated Results of Operations” discussion, as well as the following working capital changes: (i) an increase in inventory of $133.5 million due primarily to higher inventory pounds at our Warrick facility as a result of the force majeure and to satisfy the planned outage at our Trentwood facility, as well as a higher per pound inventory cost and (ii) a decrease in accounts payable of $40.6 million and a decrease in trade receivables of $17.3 million, both of which were primarily due to a decrease in metal price.

Cash provided by operating activities for the nine months ended September 30, 2021 reflected results of business activity described above within “Consolidated Results of Operations,” as well as the following working capital changes: (i) an increase in trade and other receivables of $110.7 million, the majority of which was driven by Warrick receivables added during the nine months ended September 30, 2021 and the remainder of which was due to the timing and mix of sales and an increase in metal price; (ii) an increase in accounts payable of $105.8 million, the majority of which was driven by Warrick payables added during the nine months ended September 30, 2021 and the remainder of which was driven by the volume of metal purchases; and (iii) an increase in inventory of $52.5 million due primarily to higher inventory pounds to satisfy increased demand.

See Statements of Consolidated Cash Flows included in this Report for further details on our cash flows from operating, investing and financing activities for the nine months ended September 30, 2022 and September 30, 2021.

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Sources of Liquidity

We believe our available cash and cash equivalents, borrowing availability under the Revolving Credit Facility and funds generated from operations are our most significant sources of liquidity, and that our Revolving Credit Facility and unsecured notes have covenants that allow us to operate our business with limited restrictions and significant flexibility for the foreseeable future. While we believe these sources will be sufficient to finance our working capital requirements, planned capital expenditures, investments, debt service obligations and other cash requirements for at least the next 12 months, and while we also believe that alternative sources of liquidity will remain available in the event we seek to add liquidity for opportunistic or other reasons in the future, our ability to fund such cash requirements will depend upon our future operating performance (which will be affected by prevailing economic conditions) and financial, business and other factors, some of which are beyond our control.

We do not believe that covenants contained in the Revolving Credit Facility are reasonably likely to limit our ability to raise additional debt or equity should we choose to do so during the next 12 months, nor do we believe it is likely that during the next 12 months we will trigger the availability threshold that would require measuring and maintaining a fixed charge coverage ratio. During the nine months ended September 30, 2022 and as of October 19, 2022, there were no borrowings under the Revolving Credit Facility.

See Note 9 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2021 for a description of our Revolving Credit Facility, as well as Note 5 of Notes to Interim Consolidated Financial Statements included in this Report for further details regarding Amendment No. 3 of our Revolving Credit Facility, which we executed in April 2022.

We engage in certain customer-based supply chain financing programs to accelerate the receipt of payment for outstanding accounts receivable from certain customers. Costs of these programs are typically reimbursed to us by the customer. Receivables transferred under these customer-based supply chain financing programs generally meet the requirements to be accounted for as sales resulting in the derecognition of such receivables from our consolidated balance sheets. Receivables involved with these customer‑based supply chain finance programs for the quarter ended September 30, 2022 constituted approximately 49% of our net sales. See Note 1 of Notes to Interim Consolidated Financial Statements included in this Report for further details with respect to these supply chain financing programs.

Debt

See Note 9 of Notes to Consolidated Financial Statements included in Part II, Item 8. “Financial Statements and Supplementary Data” in our Annual Report on Form 10-K for the year ended December 31, 2021 for mandatory principal and cash interest payments on the outstanding borrowings.

We do not believe that covenants in the indentures governing the 4.50% Senior Notes due 2031 (“4.50% Senior Notes”) and 4.625% Senior Notes due 2028 (“4.625% Senior Notes”) are reasonably likely to limit our ability to obtain additional debt or equity financing should we choose to do so during the next 12 months.

Capital Expenditures and Investments

We strive to strengthen our competitive position across our end markets through strategic capital investment. Significant investments over the past decade have positioned us well with increased capacity and expanded manufacturing capabilities while more recent capital projects have focused on further enhancing manufacturing cost efficiency, improving product quality and promoting operational security, which we believe are critical to maintaining and strengthening our position in an increasingly competitive market environment. A significant portion of our capital spending over the past several years related to the modernization project at our Trentwood facility, which focused on equipment upgrades throughout the process flow to reduce conversion costs, increase efficiency and further improve our competitive cost position on all products produced at our Trentwood facility. In addition, a significant portion of the investment also focused on modernizing legacy equipment and the process flow for thin gauge plate to achieve KaiserSelect® quality enhancements for these Aero/HS products and GE products. These improvements have allowed us to gain incremental manufacturing capacity to enable future sales growth.

Our capital investment plans remain focused on supporting demand growth through capacity expansion, sustaining our operations, enhancing product quality and increasing operating efficiencies. We anticipate total capital spending in 2022 of approximately $165.0 million to $175.0 million, of which approximately 60% of total spending will be focused on growth initiatives, primarily reflecting investment in the new roll coat line at Warrick and modest spending related to the Trentwood facility expansion project. We will continue to deploy capital thoughtfully to ensure that investment decisions align with demand expectations in order to maximize the earnings potential of the business and maintain financial strength and flexibility.

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Capital investments will be funded using cash generated from operations, available cash and cash equivalents, borrowings under the Revolving Credit Facility and/or other third-party financing arrangements. The level of anticipated capital expenditures may be adjusted from time-to-time depending on our business plans, our price outlook for fabricated aluminum products, our ability to maintain adequate liquidity and other factors. No assurance can be provided as to the timing of any such expenditures or the operational benefits expected therefrom.

Dividends

We have consistently paid a quarterly cash dividend since the second quarter of 2007 to holders of our common stock, including holders of restricted stock, and have increased the dividend in each year since 2011. Nevertheless, as in the past, the future declaration and payment of dividends, if any, will be at the discretion of our Board of Directors and will depend on a number of factors, including our financial and operating results, financial position and anticipated cash requirements and contractual restrictions under our Revolving Credit Facility, the indenture for our 4.50% Senior Notes and 4.625% Senior Notes or other indebtedness we may incur in the future. We can give no assurance that dividends will be declared and paid in the future. See Note 9 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2021 for additional information about restrictions on dividend payments contained in the Revolving Credit Facility and in the indenture for our unsecured senior notes.

We also pay quarterly dividend equivalents to the holders of certain restricted stock units. Holders of performance shares are not paid a quarterly dividend equivalent, but instead are entitled to receive, in connection with the issuance of underlying shares of common stock for performance shares that ultimately vest, a one-time payment equal to the dividends such holder would have received if the number of such shares of common stock so issued had been held of record by such holder from the date of grant of such performance shares through the date of such issuance.

See our Statements of Consolidated Stockholders’ Equity and Note 13 of Notes to Interim Consolidated Financial Statements included in this Report for information regarding dividends paid during the quarters ended September 30, 2022 and September 30, 2021, and declared subsequent to September 30, 2022.

Repurchases of Common Stock

We suspended share repurchases as of March 2020. We will continue to assess share repurchases as a part of our capital allocation priorities and strategic investment opportunities identified to support further growth in our business. At September 30, 2022, $93.1 million remained authorized and available for future repurchases of common stock under our stock repurchase program.

See our Statements of Consolidated Stockholders’ Equity included in this Report for information regarding: (i) repurchases of common stock during the quarters ended September 30, 2022 and September 30, 2021 and (ii) minimum statutory tax withholding obligations arising during the quarters ended September 30, 2022 and September 30, 2021 in connection with the vesting of non‑vested shares, restricted stock units and performance shares.

Environmental Commitments and Contingencies

See Note 6 of Notes to Interim Consolidated Financial Statements included in this Report for information regarding our environmental commitments and contingencies.

Contractual Obligations, Commercial Commitments and Off-Balance Sheet Arrangements

During the nine months ended September 30, 2022, we granted additional stock-based awards to executive officers and certain key employees under our equity incentive plan. Additional awards are expected to be made in future years.

Commitment fees on our Revolving Credit Facility increased due to the incremental $200.0 million of borrowing capacity associated with Amendment No. 3 of our Revolving Credit Facility. See Note 5 of Notes to Interim Consolidated Financial Statements included in this Report.

Except as otherwise disclosed in this Report, there has been no material change in our contractual obligations, commercial commitments or off-balance sheet arrangements other than in the ordinary course of business since December 31, 2021.

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Critical Accounting Estimates and Policies

Our consolidated financial statements are prepared in accordance with GAAP. In connection with the preparation of our financial statements, we are required to make assumptions and estimates about future events and apply judgments that affect the reported amounts of assets, liabilities, revenue and expenses and the related disclosures. We base our assumptions, estimates and judgments on historical experience, current trends and other factors that management believes to be relevant at the time our consolidated financial statements are prepared. On a regular basis, management reviews the accounting policies, assumptions, estimates and judgments to ensure that our financial statements are presented fairly and in accordance with GAAP. However, because future events and their effects cannot be determined with certainty, actual results could differ from our assumptions and estimates and such differences could be material.

Our significant accounting policies are discussed in Note 1 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2021. We discuss our critical accounting estimates in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10‑K for the year ended December 31, 2021.

There have been no material changes in our critical accounting estimates and policies since December 31, 2021.

New Accounting Pronouncements

For a discussion of recently adopted and recently issued but not yet adopted accounting pronouncements, see “Adoption of New Accounting Pronouncements” in Note 1 of Notes to Interim Consolidated Financial Statements included in this Report.

Available Information

Our website is located at www.kaiseraluminum.com. The website includes a section for investor relations under which we provide notifications of news or announcements regarding our financial performance, including Securities and Exchange Commission (“SEC”) filings, investor events and press and earnings releases. In addition, all Kaiser Aluminum Corporation filings submitted to the SEC, including our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and Proxy Statements for our annual meeting of stockholders, as well as other Kaiser Aluminum Corporation reports and statements, are available on the SEC’s web site at www.sec.gov. Such filings are also available for download free of charge on our website. In addition, we provide and archive on our website webcasts of our quarterly earnings calls and certain events in which management participates or hosts with members of the investment community and related investor presentations. The contents of the website are not intended to be incorporated by reference into this Report or any other report or document filed by us, and any reference to the websites are intended to be inactive textual references only.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

The following quantitative and qualitative disclosures about market risk should be read in conjunction with Note 4 and Note 7 of Notes to Interim Consolidated Financial Statements included in this Report. Our operating results are sensitive to changes in the prices of primary aluminum, certain alloying metals, natural gas, electricity and foreign currency, and also depend to a significant degree upon the volume and mix of products sold to customers. We have historically utilized hedging transactions to lock in a specified price or range of prices for certain products which we sell or consume in our production process, and to mitigate our exposure to changes in energy prices.

Aluminum

During the nine months ended September 30, 2022 and September 30, 2021, settlements of derivative contracts covering 209.8 million pounds and 122.7 million pounds, respectively, hedged shipments sold on pricing terms that created aluminum price risk for us. At September 30, 2022, we had derivative contracts with respect to approximately 48.2 million pounds and 24.7 million pounds to hedge sales to be made in the remainder of 2022 and 2023, respectively, on pricing terms that create aluminum price risk for us.

Based on the aluminum derivative positions held by us to hedge firm-price customer sales agreements, we estimate that a $0.10/lb decrease in the London Metal Exchange (“LME”) market price of aluminum as of September 30, 2022 and December 31, 2021, with all other variables held constant, would have resulted in an unrealized mark-to-market loss of $7.3 million and $8.0 million, respectively, with corresponding changes to the net fair value of our aluminum derivative positions. Additionally, we estimate that a $0.05/lb decrease in the Midwest premium for aluminum as of September 30, 2022 and December 31, 2021, with all other variables held constant, would have resulted in an unrealized mark-to-market loss of $2.6 million and $4.0 million, respectively, with corresponding changes to the net fair value of our aluminum derivative positions.

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Alloying Metals

We are exposed to the risk of fluctuating prices of certain alloying metals, especially copper, zinc and magnesium, to the extent that changes in their prices do not highly correlate with price changes for aluminum. Copper, zinc, magnesium and certain other metals are used in our remelt operations to cast rolling ingot and extrusion billet with the proper chemistry for our products. From time‑to‑time, we enter into forward contract swaps and/or physical delivery commitments with third parties to mitigate our risk from fluctuations in the prices of these alloys. As of September 30, 2022, we had forward swap contracts with settlement dates designed to align with the timing of scheduled purchases of zinc and copper (“Alloying Metals”) by our manufacturing facilities. We estimate that a $0.10/lb decrease in the market price of Alloying Metals as of September 30, 2022 and December 31, 2021, with all other variables held constant, would have resulted in an unrealized mark‑to‑market loss of $0.2 million and $0.6 million, respectively, with corresponding changes to the net fair value of our Alloying Metals derivative positions.

Energy

We are exposed to the risk of fluctuating prices for natural gas and electricity. We, from time-to-time, in the ordinary course of business, enter into hedging transactions and/or physical delivery commitments with firm prices with third parties to mitigate our risk from fluctuations in natural gas and electricity prices. We estimate that a $1.00/mmbtu decrease in natural gas prices would have resulted in an unrealized mark-to-market loss of $3.9 million and $5.2 million as of September 30, 2022 and December 31, 2021, respectively, with corresponding changes to the net fair value of our natural gas derivative positions. We estimate that a $5.00/Mwh decrease in electricity prices as of September 30, 2022 and December 31, 2021 would have resulted in an unrealized mark‑to‑market loss of $0.3 million and $1.1 million, respectively, with corresponding changes to the net fair value of our electricity derivative positions.

Foreign Currency

As of September 30, 2022, we hedged certain lease transactions and equipment purchases denominated in euros using forward swap contracts with settlement dates through February 2024. We estimate that a 10% decrease in the September 30, 2022 exchange rate of euros to U.S. dollars would have resulted in a $0.1 million unrealized mark-to-market loss with corresponding changes to the net fair value of our foreign currency derivative positions.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures. We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports under the Securities Exchange Act of 1934 is processed, recorded, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to management, including the principal executive officer and principal financial officer, to allow for timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. An evaluation of the effectiveness of the design and operation of our disclosure controls and procedures was performed as of the end of the period covered by this Report under the supervision of and with the participation of our management, including the principal executive officer and principal financial officer. Based on that evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were effective as of September 30, 2022 at the reasonable assurance level.

Changes in Internal Control Over Financial Reporting. We had no changes in our internal control over financial reporting during the nine months ended September 30, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. We are not required to include an assessment of the internal control over financial reporting of an entity acquired during the reporting period in our evaluation of internal control over financial reporting for Kaiser Aluminum Corporation. We are in the process of incorporating Warrick’s operations into our internal control over financial reporting and intend to complete this for inclusion in our annual report on internal control over financial reporting as of December 31, 2022.

33

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

Reference is made to Part I, Item 3. “Legal Proceedings” included in our Annual Report on Form 10-K for the year ended December 31, 2021 for information concerning material legal proceedings with respect to the Company. There have been no material developments since December 31, 2021.

Item 1A. Risk Factors

Reference is made to Part I, Item 1A. “Risk Factors” included in our Annual Report on Form 10-K for the year ended December 31, 2021 for information concerning risk factors. There have been no material changes in risk factors since December 31, 2021.

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

The following table provides information regarding our repurchases of our common shares during the quarter ended September 30, 2022:

	Equity Incentive Plan				Stock Repurchase Plan
	Total Number of Shares Purchased1		Average Price per Share		Total Number of Shares Purchased2		Average Price per Share		Maximum Dollar Value of Shares that May Yet Be Purchased Under the Programs (millions)2
July 1, 2022 - July 31, 2022		11,958	$	74.85		—	$	—	$	93.1
August 1, 2022 - August 31, 2022		—		—		—		—		93.1
September 1, 2022 - September 30, 2022		—		—		—		—		93.1
Total		11,958	$	74.85		—	$	—	n/a

1Under our equity incentive plan, participants may elect to have us withhold common shares to satisfy minimum statutory tax withholding obligations arising from the recognition of income and the vesting of restricted stock, restricted stock units and performance shares. When we withhold these shares, we are required to remit to the appropriate taxing authorities the market price of the shares withheld by us on the date of withholding. The withholding of common shares by us could be deemed a purchase of such common shares.

2In September 2018, our Board of Directors authorized an additional $100.0 million for us to repurchase shares of our common stock. At September 30, 2022, $93.1 million remained available to repurchase our common shares pursuant to the stock repurchase program. The September 2018 authorization does not have an expiration date.

See Note 9 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2021 for additional information about restrictions on dividend payments contained in our revolving credit facility with Wells Fargo Bank, National Association, as administrative agent, and the other financial institutions party thereto and in the indenture for our unsecured senior notes.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

34

Item 6. Exhibits

Exhibit		Provided	Incorporated by Reference
No.	Exhibit Description	Herewith	Form	File Number	Exhibit	Filing Date
31.1	Certification of Keith A. Harvey pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	X
31.2	Certification of Neal E. West pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	X
32.1	Certification of Keith A. Harvey pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	X
32.2	Certification of Neal E. West pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	X
101.INS	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH	Inline XBRL Taxonomy Extension Schema	X
101.CAL	Inline XBRL Taxonomy Extension Calculation	X
101.DEF	Inline XBRL Taxonomy Extension Definition	X
101.LAB	Inline XBRL Taxonomy Extension Label	X
101.PRE	Inline XBRL Taxonomy Extension Presentation	X
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)	X

35

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.

KAISER ALUMINUM CORPORATION

/s/ Neal E. West

Neal E. West

Executive Vice President and Chief Financial Officer

(Principal Financial Officer)

/s/ Jennifer Huey

Jennifer Huey

Vice President and Chief Accounting Officer

(Principal Accounting Officer)

Date: October 25, 2022

36

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Keith A. Harvey, certify that:

1.I have reviewed this report on Form 10-Q of Kaiser Aluminum 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.

		/s/ Keith A. Harvey
		Keith A. Harvey
		President and Chief Executive Officer
Date:	October 25, 2022	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Neal E. West, certify that:

1.I have reviewed this report on Form 10-Q of Kaiser Aluminum 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.

		/s/ Neal E. West
		Neal E. West
		Executive Vice President and Chief Financial Officer
Date:	October 25, 2022	(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

October 25, 2022

In connection with the Quarterly Report on Form 10-Q by Kaiser Aluminum Corporation, a Delaware corporation (the “Company”), for the quarter ended September 30, 2022 (the “Report”), as filed on the date hereof with the Securities and Exchange Commission, the undersigned, Keith A. Harvey, President and Chief Executive Officer of the Company, does hereby certify, pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to such officer’s knowledge:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

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

IN WITNESS WHEREOF, the undersigned has executed this certification as of the date first above written.

/s/ Keith A. Harvey

Keith A. Harvey

President and Chief Executive Officer

(Principal Executive Officer)

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

October 25, 2022

In connection with the Quarterly Report on Form 10-Q by Kaiser Aluminum Corporation, a Delaware corporation (the “Company”), for the quarter ended September 30, 2022 (the “Report”), as filed on the date hereof with the Securities and Exchange Commission, the undersigned, Neal E. West, Executive Vice President and Chief Financial Officer of the Company, does hereby certify, pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to such officer’s knowledge:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

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

IN WITNESS WHEREOF, the undersigned has executed this certification as of the date first above written.

/s/ Neal E. West

Neal E. West

Executive Vice President and Chief Financial Officer

(Principal Financial Officer)

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Oct. 19, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	1-09447
Entity Registrant Name	KAISER ALUMINUM CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	94-3030279
Entity Address, Address Line One	1550 West McEwen Drive
Entity Address, Address Line Two	Suite 500
Entity Address, City or Town	Franklin
Entity Address, State or Province	TN
Entity Address, Postal Zip Code	37067
City Area Code	629
Local Phone Number	252-7040
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	KALU
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		15,940,625
Entity Central Index Key	0000811596
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false

XML

CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 129.3	$ 303.2
Receivables:
Trade receivables, net	311.5	332.7
Other	56.9	53.0
Contract assets	51.0	63.2
Inventories	538.1	404.6
Prepaid expenses and other current assets	40.9	48.7
Total current assets	1,127.7	1,205.4
Property, plant and equipment, net	989.6	955.2
Operating lease assets	41.4	46.2
Deferred tax assets, net	6.6	3.4
Intangible assets, net	56.7	67.7
Goodwill	39.3	39.3
Other assets	112.3	105.2
Total	2,373.6	2,422.4
Current liabilities:
Accounts payable	337.3	351.4
Accrued salaries, wages and related expenses	42.4	46.9
Other accrued liabilities	88.5	58.4
Total current liabilities	468.2	456.7
Long-term portion of operating lease liabilities	37.3	40.8
Pension and other postretirement benefits	91.8	92.5
Net liabilities of Salaried VEBA	19.8	20.6
Deferred tax liabilities	4.7	10.5
Long-term liabilities	72.2	72.5
Long-term debt	1,037.6	1,036.3
Total liabilities	1,731.6	1,729.9
Commitments and contingencies
Stockholders’ equity:
Preferred stock, 5,000,000 shares authorized at both September 30, 2022 and December 31, 2021; no shares were issued and outstanding at September 30, 2022 and December 31, 2021
Common stock, par value $0.01, 90,000,000 shares authorized at both September 30, 2022 and December 31, 2021; 22,775,866 shares issued and 15,940,580 shares outstanding at September 30, 2022; 22,700,404 shares issued and 15,865,118 shares outstanding at December 31, 2021	0.2	0.2
Additional paid in capital	1,087.2	1,078.9
Retained earnings	52.2	93.0
Treasury stock, at cost, 6,835,286 shares at both September 30, 2022 and December 31, 2021	(475.9)	(475.9)
Accumulated other comprehensive loss	(21.7)	(3.7)
Total stockholders’ equity	642.0	692.5
Total	$ 2,373.6	$ 2,422.4

XML

CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	90,000,000	90,000,000
Common Stock, shares issued	22,775,866	22,700,404
Common stock, shares outstanding	15,940,580	15,865,118
Treasury stock, shares	6,835,286	6,835,286

XML

STATEMENTS OF CONSOLIDATED INCOME (LOSS) (UNAUDITED) - USD ($) shares in Thousands, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Net sales	$ 748.9	$ 750.6	$ 2,651.9	$ 1,815.6
Costs and expenses:
Cost of products sold, excluding depreciation and amortization and other items	694.9	677.8	2,459.2	1,613.6
Depreciation and amortization	25.8	24.9	80.4	64.2
Selling, general, administrative, research and development	25.2	28.1	82.9	90.8
Restructuring costs (benefit)				(0.8)
Other operating charges, net			3.2
Total costs and expenses	745.9	730.8	2,625.7	1,767.8
Operating income	3.0	19.8	26.2	47.8
Other expense:
Interest expense	(12.1)	(12.5)	(36.5)	(37.2)
Other income (expense), net - Note 8	12.7	(1.2)	7.4	(38.2)
Income (loss) before income taxes	3.6	6.1	(2.9)	(27.6)
Income tax (provision) benefit	(1.1)	(8.4)	(0.3)	7.4
Net income (loss)	$ 2.5	$ (2.3)	$ (3.2)	$ (20.2)
Net income (loss) per common share:
Basic	$ 0.16	$ (0.14)	$ (0.20)	$ (1.28)
Diluted	$ 0.16	$ (0.14)	$ (0.20)	$ (1.28)
Weighted-average number of common shares outstanding (in thousands):
Basic	15,926	15,852	15,897	15,831
Diluted	16,029	15,852	15,897	15,831

XML

STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 2.5	$ (2.3)	$ (3.2)	$ (20.2)
Other comprehensive income (loss), net of tax
Defined benefit pension plans and Salaried VEBA	1.0	0.8	2.8	2.2
Cash flow hedges	(1.4)	10.0	(20.8)	33.7
Foreign currency translation				(0.1)
Other comprehensive (loss) income, net of tax	(0.4)	10.8	(18.0)	35.8
Comprehensive income (loss)	$ 2.1	$ 8.5	$ (21.2)	$ 15.6

XML

STATEMENTS OF CONSOLIDATED STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Millions		Total	Common Stock		Additional Paid in Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive (Loss) Income
Beginning balance at Dec. 31, 2020		$ 732.4	$ 0.2		$ 1,068.6	$ 158.2	$ (475.9)	$ (18.7)
Beginning balance (shares) at Dec. 31, 2020			15,812,169
Net income (loss)		4.5				4.5
Other comprehensive income (loss), net of tax		9.1						9.1
Common shares issued (including impacts from Long-Term Incentive programs) (shares)			56,394
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares		(2.4)			(2.4)
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares (shares)			(20,625)
Cash dividends declared	[1]	(11.7)				(11.7)
Amortization of unearned equity compensation		3.1			3.1
Ending balance at Mar. 31, 2021		735.0	$ 0.2		1,069.3	151.0	(475.9)	(9.6)
Ending balance (shares) at Mar. 31, 2021			15,847,938
Beginning balance at Dec. 31, 2020		732.4	$ 0.2		1,068.6	158.2	(475.9)	(18.7)
Beginning balance (shares) at Dec. 31, 2020			15,812,169
Net income (loss)		(20.2)
Other comprehensive income (loss), net of tax		35.8
Ending balance at Sep. 30, 2021		721.0	$ 0.2		1,076.6	103.0	(475.9)	17.1
Ending balance (shares) at Sep. 30, 2021			15,862,672
Beginning balance at Mar. 31, 2021		735.0	$ 0.2		1,069.3	151.0	(475.9)	(9.6)
Beginning balance (shares) at Mar. 31, 2021			15,847,938
Net income (loss)		(22.4)				(22.4)
Other comprehensive income (loss), net of tax		15.9						15.9
Common shares issued (including impacts from Long-Term Incentive programs)		0.3			0.3
Common shares issued (including impacts from Long-Term Incentive programs) (shares)			12,291
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares (shares)			(409)
Cash dividends declared	[1]	(11.7)				(11.7)
Amortization of unearned equity compensation		3.6			3.6
Ending balance at Jun. 30, 2021		720.7	$ 0.2		1,073.2	116.9	(475.9)	6.3
Ending balance (shares) at Jun. 30, 2021			15,859,820
Net income (loss)		(2.3)				(2.3)
Other comprehensive income (loss), net of tax		10.8						10.8
Common shares issued (including impacts from Long-Term Incentive programs) (shares)			3,431
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares		(0.1)			(0.1)
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares (shares)			(579)
Cash dividends declared	[1]	(11.6)				(11.6)
Amortization of unearned equity compensation		3.5			3.5
Ending balance at Sep. 30, 2021		721.0	$ 0.2		1,076.6	103.0	(475.9)	17.1
Ending balance (shares) at Sep. 30, 2021			15,862,672
Beginning balance at Dec. 31, 2021		$ 692.5	$ 0.2		1,078.9	93.0	(475.9)	(3.7)
Beginning balance (shares) at Dec. 31, 2021		15,865,118	15,865,118	[2]
Net income (loss)		$ 8.1				8.1
Other comprehensive income (loss), net of tax		18.0						18.0
Common shares issued (including impacts from Long-Term Incentive programs) (shares)	[2]		58,641
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares		(1.9)			(1.9)
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares (shares)	[2]		(19,643)
Cash dividends declared	[3]	(12.5)				(12.5)
Amortization of unearned equity compensation		4.0			4.0
Ending balance at Mar. 31, 2022		708.2	$ 0.2		1,081.0	88.6	(475.9)	14.3
Ending balance (shares) at Mar. 31, 2022	[2]		15,904,116
Beginning balance at Dec. 31, 2021		$ 692.5	$ 0.2		1,078.9	93.0	(475.9)	(3.7)
Beginning balance (shares) at Dec. 31, 2021		15,865,118	15,865,118	[2]
Net income (loss)		$ (3.2)
Other comprehensive income (loss), net of tax		(18.0)
Ending balance at Sep. 30, 2022		$ 642.0	$ 0.2		1,087.2	52.2	(475.9)	(21.7)
Ending balance (shares) at Sep. 30, 2022		15,940,580	15,940,580	[2]
Beginning balance at Mar. 31, 2022		$ 708.2	$ 0.2		1,081.0	88.6	(475.9)	14.3
Beginning balance (shares) at Mar. 31, 2022	[2]		15,904,116
Net income (loss)		(13.8)				(13.8)
Other comprehensive income (loss), net of tax		(35.6)						(35.6)
Common shares issued (including impacts from Long-Term Incentive programs)		0.6			0.6
Common shares issued (including impacts from Long-Term Incentive programs) (shares)	[2]		18,101
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares (shares)	[2]		(155)
Cash dividends declared	[3]	(12.6)				(12.6)
Amortization of unearned equity compensation		3.2			3.2
Ending balance at Jun. 30, 2022		650.0	$ 0.2		1,084.8	62.2	(475.9)	(21.3)
Ending balance (shares) at Jun. 30, 2022	[2]		15,922,062
Net income (loss)		2.5				2.5
Other comprehensive income (loss), net of tax		(0.4)						(0.4)
Common shares issued (including impacts from Long-Term Incentive programs) (shares)	[2]		30,476
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares		(0.9)			(0.9)
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares (shares)	[2]		(11,958)
Cash dividends declared	[3]	(12.5)				(12.5)
Amortization of unearned equity compensation		3.3			3.3
Ending balance at Sep. 30, 2022		$ 642.0	$ 0.2		$ 1,087.2	$ 52.2	$ (475.9)	$ (21.7)
Ending balance (shares) at Sep. 30, 2022		15,940,580	15,940,580	[2]

[1] Dividends declared per common share were $0.72 for the quarters ended March 31, 2021, June 30, 2021 and September 30, 2021.

[2] At September 30, 2022, 614,311 shares were available for awards under the Kaiser Aluminum Corporation 2021 Equity and Incentive Compensation Plan (“2021 Plan”)

[3] Dividends declared per common share were $0.77 for the quarters ended March 31, 2022, June 30, 2022 and September 30, 2022.

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STATEMENTS OF CONSOLIDATED STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical)	3 Months Ended
	Sep. 30, 2022 $ / shares shares
Shares available for awards (shares) | shares	614,311
Cash dividends declared (in dollars per share) | $ / shares	$ 0.77

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STATEMENTS OF CONSOLIDATED CASH FLOWS (UNAUDITED) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities:
Net loss	$ (3.2)	$ (20.2)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation of property, plant and equipment	72.5	58.0
Amortization of definite-lived intangible assets	7.9	6.2
Amortization of debt premium and debt issuance costs	1.6	1.6
Deferred income taxes	(3.5)	(9.9)
Non-cash equity compensation	11.1	10.5
Non-cash asset impairment charge	3.2
Loss on extinguishment of debt		35.9
(Gain) loss on disposition of property, plant and equipment	(6.3)	0.1
Changes in operating assets and liabilities, net of effects of acquisition:
Trade and other receivables	17.3	(110.7)
Contract assets	12.2	(4.1)
Inventories	(133.5)	(52.5)
Prepaid expenses and other current assets	(4.3)	(3.9)
Accounts payable	(40.6)	105.8
Accrued liabilities	8.3	17.8
Annual variable cash contributions to Salaried VEBA		(1.7)
Long-term assets and liabilities, net	(1.3)	0.4
Net cash (used in) provided by operating activities	(58.6)	33.3
Cash flows from investing activities:
Capital expenditures	(82.4)	(29.9)
Cash payment for acquisition of the Warrick rolling mill, net of cash received		(609.2)
Purchase of equity securities	(0.3)	(0.4)
Proceeds from disposition of property, plant and equipment	11.0
Net cash used in investing activities	(71.7)	(639.5)
Cash flows from financing activities:
Cash paid for debt issuance costs	(1.8)	(8.6)
Repayment of finance lease	(1.0)	(1.6)
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares	(2.8)	(2.5)
Cash dividends and dividend equivalents paid	(37.6)	(35.0)
Net cash (used in) provided by financing activities	(43.2)	121.4
Net decrease in cash, cash equivalents and restricted cash during the period	(173.5)	(484.8)
Cash, cash equivalents and restricted cash at beginning of period	317.0	794.3
Cash, cash equivalents and restricted cash at end of period	$ 143.5	309.5
6.50% Senior Notes
Cash flows from financing activities:
Repayment of principal and redemption premium of Senior Notes		(380.9)
4.50% Senior Notes
Cash flows from financing activities:
Issuance of Senior Notes		$ 550.0

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

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Basis of Presentation and Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Basis of Presentation and Recent Accounting Pronouncements

1. Basis of Presentation and Recent Accounting Pronouncements

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

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

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

Supply Chain Financing. We are party to several supply chain financing arrangements, in which we may sell certain of our customers’ trade accounts receivable to such customers’ financial institutions without recourse. We sell our undivided interests in certain of these receivables at our discretion when we determine that the cost of these arrangements is less than the cost of servicing our receivables with existing debt. Under the terms of the agreements, we retain no rights or interest, have no obligations with respect to the sold receivables and do not service the receivables after the sale. As such, these transactions are being accounted for as a sale. During the quarters ended September 30, 2022 and September 30, 2021 and the nine months ended September 30, 2022 and September 30, 2021, we sold trade accounts receivable totaling $359.2 million, $390.2 million, $1,248.6 million and $706.2 million, respectively, related to these supply chain financing arrangements, of which our customers’ financial institutions applied discount fees totaling $6.2 million, $2.1 million, $15.4 million and $4.0 million, respectively. To the extent discount fees related to the sale of trade accounts receivable under supply chain financing arrangements are not reimbursed by our customers, they are included in Other income (expense), net. As of September 30, 2022, we had been and/or expected to be fully reimbursed by our customers for the majority of these discount fees.

Government Grants. From time-to-time, we receive grants from certain governmental agencies such as states and municipalities. We recognize government grants when we have reasonable assurance that we will comply with any conditions attached to the grant and the grant will be received. Government grants related to property, plant and equipment are presented as a reduction to the related asset’s carrying amount. Grants related to compensation for expenses already incurred or for immediate financial support with no future related costs are recognized as income in the period in which it is receivable. The following table presents the total government assistance recognized during the nine months ended September 30, 2022 (in millions of dollars):

Grantor	Grant	Amount		Duration	Classification
Tennessee Department of Economic and Community Development	TN Fast Track	$	1.1	2021 - 2028	Property, plant and equipment, net
Tennessee Department of Economic and Community Development	TN Fast Track		0.2	2021 - 2028	Selling, general, administrative, research and development
Tennessee Valley Authority	Performance		0.3	2021 - 2026	Property, plant and equipment, net
Indiana Economic Development Corporation	IN EDGE Tax Credit		1.6	2021 - 2030	Cost of products sold, excluding depreciation and amortization and other items
Total		$	3.2

To be eligible to receive and keep the full amount of the TN Fast Track and Performance grants, we must achieve: (i) minimum cumulative expenditures towards developmental and/or capital expenditures; (ii) a minimum number of new full-time employees; and

(iii) a minimum average annual wage, all within seven years of our execution of the grant agreement. To be eligible to receive and keep the full amount of the IN EDGE Tax Credit, we must achieve: (i) minimum cumulative expenditures towards capital expenditures and (ii) a minimum number of full-time employees.

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

Adoption of New Accounting Pronouncements

Accounting Standard Update (“ASU”) No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance (“ASU 2021-10”) was issued in November 2021. Under ASU 2021-10, the accounting entities with transactions with a government that are accounted for by analogy to a grant or contribution accounting model are required to annually disclose certain information regarding the transaction including: (i) nature and related accounting policy used; (ii) line items on the balance sheet and income statement affected by the transactions; (iii) amounts applicable to each line item; and (iv) significant terms and conditions. Our adoption of ASU 2021-10 during the quarter ended March 31, 2022 using a prospective approach did not have a material impact on our consolidated financial statements.

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

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Supplemental Balance Sheet Information

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental Balance Sheet Information

2. Supplemental Balance Sheet Information

	As of September 30, 2022			As of December 31, 2021
	(In millions of dollars)
Trade Receivables, Net
Billed trade receivables	$	312.1		$	333.5
Allowance for doubtful receivables		(0.6	)		(0.8	)
Trade receivables, net	$	311.5		$	332.7
Inventories1
Finished products	$	88.1		$	90.3
Work-in-process		229.6			162.2
Raw materials		208.6			143.0
Operating supplies		11.8			9.1
Total	$	538.1		$	404.6
Property, Plant and Equipment, Net
Land and improvements	$	28.4		$	26.0
Buildings and leasehold improvements		184.2			179.0
Machinery and equipment		1,190.6			1,151.5
Construction in progress2		136.6			75.3
Property, plant and equipment, gross		1,539.8			1,431.8
Accumulated depreciation and amortization		(550.4	)		(480.4	)
Assets held for sale		0.2			3.8
Property, plant and equipment, net	$	989.6		$	955.2
Other Accrued Liabilities
Uncleared cash disbursements	$	19.8		$	10.9
Accrued income taxes and other taxes payable		11.0			9.5
Accrued interest		10.3			9.9
Short-term environmental accrual – Note 6		1.8			2.6
Short-term operating lease liabilities		9.3			9.0
Other – Note 4		36.3			16.5
Total	$	88.5		$	58.4
Long-Term Liabilities
Workers' compensation accrual	$	31.5		$	31.9
Long-term environmental accrual – Note 6		13.1			14.2
Other long-term liabilities		27.6			26.4
Total	$	72.2		$	72.5

1At September 30, 2022 and December 31, 2021, the current cost of our inventory exceeded its stated last-in, first-out (“LIFO”) value by $119.3 million and $137.1 million, respectively.

2Based on market conditions, we temporarily idled projects within Construction in progress totaling $19.2 million and $24.9 million as of September 30, 2022 and December 31, 2021, respectively, all of which are expected to resume at a future date.

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Employee Benefits

9 Months Ended

Sep. 30, 2022

Retirement Benefits [Abstract]

Employee Benefits

3. Employee Benefits

Deferred Compensation Plan

Assets of our deferred compensation plan are included in Other assets, classified within Level 1 of the fair value hierarchy and are measured and recorded at fair value based on their quoted market prices. The fair value of these assets at September 30, 2022 and December 31, 2021 was $9.6 million and $10.5 million, respectively. The assets in the trust are held in various investment funds at certain registered investment companies and are accounted for as equity investments with changes in fair value recorded within

Other income (expense), net (see Note 8). Offsetting liabilities relating to the deferred compensation plan are included in Other accrued liabilities and Long-term liabilities.

Short-Term Incentive Plans (“STI Plans”)

As of September 30, 2022, we had a liability of $4.7 million recorded within Accrued salaries, wages and related expenses for estimated probable future payments relating to the nine month performance period of our 2022 STI Plan.

Postretirement Benefit Plans

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

	Quarter Ended September 30,					Nine Months Ended September 30,
	2022			2021		2022			2021
Defined contribution plans1	$	3.9		$	3.4	$	13.6		$	10.4
Deferred compensation plan2		(0.1	)		0.2		(0.9	)		0.6
Multiemployer pension plans1		1.3			1.3		3.9			3.7
Salaried VEBA2		0.9			0.6		2.8			1.7
Pension plans3		1.3			1.4		4.0			2.9
OPEB3		0.9			0.9		2.8			1.9
Total	$	8.2		$	7.8	$	26.2		$	21.2

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

2The deferred compensation plan and the current service cost component of Net periodic postretirement benefit cost relating to the voluntary employees’ beneficiary association that provides benefits for certain eligible retirees and their surviving spouses and eligible dependents (“Salaried VEBA”) are included within our Statements of Consolidated Income (Loss) in SG&A and R&D for all periods presented. All other components of Net periodic postretirement benefit cost relating to Salaried VEBA are included within Other income (expense), net, on our Statements of Consolidated Income (Loss).

3The current service cost component of Net periodic postretirement benefit cost relating to both the pension plans and the healthcare and life insurance postretirement benefit plan (“OPEB”) are included within our Statements of Consolidated Income (Loss) in COGS for all periods presented. All other components of Net periodic postretirement benefit cost relating to both the pension plans and the OPEB are included within Other income (expense), net, on our Statements of Consolidated Income (Loss).

Components of Net Periodic Postretirement Benefit Cost. Our results of operations included the following impacts associated with the Salaried VEBA, pension plans and OPEB: (i) a charge for service rendered by employees; (ii) a charge for accretion of interest; (iii) a benefit for the expected return on plan assets; (iv) amortization of prior service costs associated with plan amendments; and (v) amortization of net actuarial differences.

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

	Pension Plans						OPEB				Salaried VEBA
	Quarter Ended September 30,						Quarter Ended September 30,				Quarter Ended September 30,
	2022			2021			2022		2021		2022			2021
Service cost	$	1.5		$	1.4		$	0.4	$	0.3	$	—		$	—
Interest cost		0.1			0.1			0.5		0.6		0.5			0.4
Expected return on plan assets		(0.3	)		(0.1	)		—		—		(0.8	)		(0.8	)
Amortization of prior service cost1		—			—			—		—		1.2			0.9
Amortization of net actuarial loss		—			—			—		—		—			0.1
Total net periodic postretirement benefit cost	$	1.3		$	1.4		$	0.9	$	0.9	$	0.9		$	0.6

	Pension Plans2						OPEB2				Salaried VEBA
	Nine Months Ended September 30,						Nine Months Ended September 30,				Nine Months Ended September 30,
	2022			2021			2022		2021		2022			2021
Service cost	$	4.3		$	2.8		$	1.2	$	0.7	$	—		$	—
Interest cost		0.4			0.3			1.6		1.2		1.4			1.2
Expected return on plan assets		(0.7	)		(0.3	)		—		—		(2.3	)		(2.4	)
Amortization of prior service cost1		—			—			—		—		3.7			2.6
Amortization of net actuarial loss		—			0.1			—		—		—			0.3
Total net periodic postretirement benefit cost	$	4.0		$	2.9		$	2.8	$	1.9	$	2.8		$	1.7

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

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

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Derivatives, Hedging Programs and Other Financial Instruments

9 Months Ended

Sep. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives, Hedging Programs and Other Financial Instruments

4. Derivatives, Hedging Programs and Other Financial Instruments

Overview. In conducting our business, we enter into derivative transactions, including forward contracts and options, to limit our exposure to: (i) metal price risk related to our sale of fabricated aluminum products and the purchase of metal, including primary and scrap, or recycled, aluminum, our main raw material, and certain alloys used as raw material for our fabrication operations; (ii) energy price risk relating to fluctuating prices of natural gas and electricity used in our production processes; and (iii) foreign currency requirements with respect to cash commitments for equipment purchases and/or other agreements denominated in foreign currency. We do not use derivative financial instruments for trading or other speculative purposes. Hedging transactions are executed centrally on behalf of all of our operations to minimize transaction costs, monitor consolidated net exposures and allow for increased responsiveness to changes in market factors.

Our derivative activities are overseen by a committee (“Hedging Committee”), which is composed of our chief executive officer, chief financial officer, chief accounting officer, vice president of treasury, risk and procurement and other officers and employees selected by the chief executive officer. The Hedging Committee meets regularly to review commodity price exposure, derivative positions and strategy. Management reviews the scope of the Hedging Committee’s activities with our Board of Directors.

We are exposed to counterparty credit risk on all of our derivative instruments, which we manage by monitoring the credit quality of our counterparties, allocating our hedging positions among multiple counterparties to limit exposure to any single entity and using options as part of the hedging strategy. Our counterparties are major investment grade financial institutions or trading companies and our hedged transactions are governed by negotiated reciprocal credit lines, which generally require collateral to be posted above specified credit thresholds which may adjust up or down, depending on our liquidity. As a result, we believe the risk of loss is remote and contained. The aggregate fair value of our derivative instruments that were in a net liability position was $14.8 million and zero at September 30, 2022 and December 31, 2021, respectively, and we had no collateral posted as of those dates.

Additionally, our firm-price customer sales commitments create incremental customer credit risk related to metal price movements. Under certain circumstances, we mitigate this risk by periodically requiring cash collateral from them, which we classify as deferred revenue and include as a component of Other accrued liabilities. We had $1.1 million and zero cash collateral posted from our customers at September 30, 2022 and December 31, 2021, respectively.

Cash Flow Hedges

We designate as cash flow hedges forward swap contracts for aluminum, energy and, from time-to-time, zinc and copper (“Alloying Metals”) used in our fabrication operations and foreign currency forward contracts for equipment and services for which payments are due in foreign currency. Unrealized gains and losses associated with our cash flow hedges are deferred in Other comprehensive (loss) income, net of tax, and reclassified to COGS when such hedges settle or when it is probable that the original forecasted transactions will not occur by the end of the originally specified time period. See Note 7 for the total amount of gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments that was reported in Accumulated other comprehensive (loss) income (“AOCI”), as well as the related reclassifications into earnings and tax effects. Cumulative gains and

losses related to cash flow hedges are reclassified out of AOCI and recorded within COGS when the associated hedged commodity purchases impact earnings.

Aluminum Hedges. Our pricing of fabricated aluminum products is generally intended to lock in a conversion margin (representing the value added from the fabrication process) and to pass through aluminum price fluctuations to our customers. For some of our higher value added products sold on a spot basis, the pass through of aluminum price movements can sometimes lag by as much as several months, with a favorable impact to us when aluminum prices decline and an adverse impact to us when aluminum prices increase. Additionally, in certain instances, we enter into firm-price arrangements with our customers for stipulated volumes to be delivered in the future. Because we generally purchase primary and secondary aluminum on a floating price basis, the lag in passing through aluminum price movements to customers on some of our higher value added products sold on a spot basis and the volume that we have committed to sell to our customers under a firm-price arrangement create aluminum price risk for us. We use third-party hedging instruments to limit exposure to aluminum price risk related to the aluminum pass through lag on some of our products and firm-price customer sales contracts.

Alloying Metals Hedges. We are exposed to risk of fluctuating prices for alloying metals used as raw materials in our fabrication operations. We, from time-to-time, in the ordinary course of business, enter into hedging transactions and/or physical delivery commitments with third parties to mitigate our risk from fluctuations in alloying metals prices that are not passed through completely or at the time of sale pursuant to the terms of certain customer contracts.

Energy Hedges. We are exposed to risk of fluctuating prices for natural gas and electricity. We, from time-to-time, in the ordinary course of business, enter into hedging transactions and/or physical delivery commitments with third parties to mitigate our risk from fluctuations in natural gas and electricity prices that are not passed through completely or at the time of sale pursuant to the terms of certain customer contracts.

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

	Remainder of 2022	2023	2024	2025	2026
Zinc	66%	3%	—	—	—
Copper	58%	—	—	—	—
Magnesium	100%	100%	40%	—	—
Silicon	100%	—	—	—	—
Natural Gas	49%	50%	47%	26%	21%
Electricity	71%	43%	—	—	—

Foreign Currency Hedges. We are exposed to foreign currency exchange risk related to certain equipment and service agreements with vendors for which payments are due in foreign currency. We, from time-to-time, in the ordinary course of business, use foreign currency forward contracts in order to mitigate the exposure to currency exchange rate fluctuations related to these purchases.

Non-Designated Hedges of Operational Risks

From time-to-time, we enter into commodity contracts that are not designated as hedging instruments to mitigate certain short‑term commodity impacts, as identified. The gain or loss on these derivatives is recognized within COGS.

Notional Amount of Derivative Contracts

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

Aluminum	Maturity Period (month/year)	Notional Amount of Contracts (mmlbs)
Fixed price purchase contracts	October 2022 through December 2023		87.9
Fixed price sales contracts	October 2022 through December 2022		15.0
Midwest premium swap contracts1	October 2022 through December 2023		52.3

Alloying Metals	Maturity Period (month/year)	Notional Amount of Contracts (mmlbs)
Fixed price purchase contracts	October 2022 through November 2023		2.0

Natural Gas	Maturity Period (month/year)	Notional Amount of Contracts (mmbtu)
Fixed price purchase contracts	October 2022 through December 2025		3,900,000

Electricity	Maturity Period (month/year)	Notional Amount of Contracts (Mwh)
Fixed price purchase contracts	October 2022 through December 2022		55,225

Euro	Maturity Period (month/year)	Notional Amount of Contracts (euro)
Fixed price forward contracts	December 2022 through February 2024		1,126,066

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

Loss (Gain)

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

	Quarter Ended September 30,						Nine Months Ended September 30,						Statements of Consolidated
	2022			2021			2022			2021			Income (Loss) Classification
Total of income and expense line items presented in our Statements of Consolidated Income (Loss) in which the effects of hedges are recorded:
Cash flow hedges	$	694.9		$	677.8		$	2,459.2		$	1,613.6		Cost of products sold
Loss (gain) recognized in our Statements of Consolidated Income (Loss) related to cash flow hedges:
Aluminum	$	14.2		$	(13.3	)	$	1.4		$	(24.3	)	Cost of products sold
Alloying Metals		—			(0.2	)		—			0.2		Cost of products sold
Natural gas		(2.3	)		(0.6	)		(5.1	)		(0.7	)	Cost of products sold
Electricity		(3.8	)		(2.6	)		(5.2	)		(3.3	)	Cost of products sold
Total loss (gain) recognized in our Statements of Consolidated Income (Loss) related to cash flow hedges	$	8.1		$	(16.7	)	$	(8.9	)	$	(28.1	)
Loss (gain) recognized in our Statements of Consolidated Income (Loss) related to non-designated hedges:
Alloying Metals – Realized loss (gain)	$	0.3		$	(1.2	)	$	(0.8	)	$	(3.8	)	Cost of products sold
Alloying Metals – Unrealized loss		—			1.9			1.9			2.0		Cost of products sold
Total loss (gain) recognized in our Statements of Consolidated Income (Loss) related to non-designated hedges	$	0.3		$	0.7		$	1.1		$	(1.8	)

Fair Values of Derivative Contracts

The fair values of our derivative contracts are based upon trades in liquid markets. Valuation model inputs can be verified, and valuation techniques do not involve significant judgment. The fair values of such financial instruments are classified within Level 2 of the fair value hierarchy.

All of our derivative contracts with counterparties are subject to enforceable master netting arrangements. We reflect the fair value of our derivative contracts on a gross basis on our Consolidated Balance Sheets. The following table presents the fair value of our derivative financial instruments (in millions of dollars):

	As of September 30, 2022								As of December 31, 2021
	Assets		Liabilities			Net Amount			Assets		Liabilities			Net Amount
Cash Flow Hedges:
Aluminum –
Fixed price purchase contracts	$	0.6	$	(15.5	)	$	(14.9	)	$	12.2	$	(1.1	)	$	11.1
Fixed price sales contracts		1.7		—			1.7			—		—			—
Midwest premium swap contracts		1.4		(3.7	)		(2.3	)		5.5		(0.1	)		5.4
Natural gas – Fixed price purchase contracts		9.1		—			9.1			3.0		(0.1	)		2.9
Electricity – Fixed price purchase contracts		2.6		—			2.6			4.4		(0.6	)		3.8
Foreign currency – Fixed price forward contracts		—		(0.1	)		(0.1	)		—		—			—
Total cash flow hedges		15.4		(19.3	)		(3.9	)		25.1		(1.9	)		23.2
Non-Designated Hedges:
Alloying Metals – Fixed price purchase contracts		—		(0.5	)		(0.5	)		1.6		(0.1	)		1.5
Total non-designated hedges		—		(0.5	)		(0.5	)		1.6		(0.1	)		1.5
Total	$	15.4	$	(19.8	)	$	(4.4	)	$	26.7	$	(2.0	)	$	24.7

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

	As of September 30, 2022			As of December 31, 2021
Derivative assets:
Prepaid expenses and other current assets	$	11.3		$	25.0
Other assets		4.1			1.7
Total derivative assets	$	15.4		$	26.7
Derivative liabilities:
Other accrued liabilities	$	(19.5	)	$	(1.9	)
Long-term liabilities		(0.3	)		(0.1	)
Total derivative liabilities	$	(19.8	)	$	(2.0	)

Fair Value of Other Financial Instruments

All Other Financial Assets and Liabilities. We believe that the fair values of our accounts receivable, contract assets, accounts payable and accrued liabilities approximate their respective carrying values due to their short maturities and nominal credit risk.

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Debt and Credit Facility

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Debt and Credit Facility

5. Debt and Credit Facility

Senior Notes

During the years ended December 31, 2021, December 31, 2020 and December 31, 2019, we issued fixed rate unsecured notes with varying maturity dates (“Senior Notes”). The stated interest rates and aggregate principal amounts of our Senior Notes were: (i) 4.50% and $550.0 million (“4.50% Senior Notes”); (ii) 6.50% and $350.0 million (“6.50% Senior Notes”); and (iii) 4.625% and

$500.0 million (“4.625% Senior Notes”). Our Senior Notes do not require us to make any mandatory redemptions or sinking fund payments. The following table summarizes key details of our Senior Notes:

				Outstanding (in millions of dollars)
	Issuance Date	Maturity	Effective Interest Rate	As of September 30, 2022			As of December 31, 2021
4.50% Senior Notes	May 2021	June 2031	4.7%	$	550.0		$	550.0
6.50% Senior Notes1	April/May 2020	May 2025	6.8%		—			—
4.625% Senior Notes	November 2019	March 2028	4.8%		500.0			500.0
Total debt					1,050.0			1,050.0
Unamortized issuance costs					(12.4	)		(13.7	)
Total carrying amount				$	1,037.6		$	1,036.3

1In May 2021, we redeemed in full the remaining balance of our 6.50% Senior Notes at a redemption price of 108.83% of the principal amount plus $1.3 million of accrued and unpaid interest for a total net cash outflow of $382.2 million. Upon redemption of the 6.50% Senior Notes, we recorded a loss on extinguishment of debt of $35.9 million within Other income (expense), net, on our Statements of Consolidated Income (Loss), which included the premium payment of $30.9 million and a write-off of the remaining unamortized premium and debt issuance costs of $5.0 million.

The following table presents the fair value of our outstanding Senior Notes, which are Level 1 liabilities (in millions of dollars):

	As of September 30, 2022		As of December 31, 2021
4.50% Senior Notes	$	399.1	$	542.6
4.625% Senior Notes	$	410.4	$	506.9

Revolving Credit Facility

In April 2022, we entered into Amendment No. 3 to our revolving credit facility with Wells Fargo Bank, National Association, the administrative agent, and the other financial institutions party thereto (as amended, the “Revolving Credit Facility”). The Revolving Credit Facility among others: (i) increased the commitment from $375.0 million to $575.0 million (of which up to a maximum of $50.0 million may be utilized for letters of credit); (ii) extended the maturity date from the earlier of (a) February 2024 (if certain conditions were met) and (b) October 2024 to April 2027; (iii) removed eligible equipment from the borrowing base and as collateral; and (iv) updated relevant benchmark provisions to SOFR instead of LIBOR.

The following table summarizes availability and usage of our Revolving Credit Facility as determined by a borrowing base calculated as of September 30, 2022 (in millions of dollars):

Revolving Credit Facility borrowing commitment	$	575.0
Borrowing base availability	$	572.4
Less: Outstanding borrowings under Revolving Credit Facility		—
Less: Outstanding letters of credit under Revolving Credit Facility		(17.4	)
Remaining borrowing availability	$	555.0

Interest Expense

Interest expense relating to our Senior Notes and Revolving Credit Facility was as follows (in millions of dollars):

	Quarter Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Senior Notes interest expense, including debt issuance cost amortization	$	12.4		$	12.4		$	37.2		$	36.6
Revolving Credit Facility commitment fees and finance cost amortization		0.6			0.3			1.6			1.2
Interest expense capitalized as construction in progress		(0.9	)		(0.2	)		(2.3	)		(0.6	)
Total interest expense	$	12.1		$	12.5		$	36.5		$	37.2

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

6. Commitments and Contingencies

Commitments. We have a variety of financial commitments, including purchase agreements, forward foreign exchange and forward sales contracts, indebtedness and letters of credit (see Note 4 and Note 5).

Environmental Contingencies. We are subject to a number of environmental laws and regulations, to potential fines or penalties assessed for alleged breaches of such laws and regulations and to potential claims based upon such laws and regulations. We are also subject to legacy environmental contingencies related to activities that occurred at operating facilities prior to July 6, 2006, which represent the majority of our environmental accruals. See below for our discussion of the status of these environmental contingencies. We have established procedures for regularly evaluating environmental loss contingencies. Our environmental accruals represent our undiscounted estimate of costs reasonably expected to be incurred based on presently enacted laws and regulations, currently available facts, existing requirements, existing technology and our assessment of the likely remediation actions to be taken.

We continue to pursue remediation activities, primarily to address the historical use of oils containing polychlorinated biphenyls (“PCBs”) at our Spokane, Washington (“Trentwood”) facility. Our remediation efforts are in collaboration with the Washington State Department of Ecology (“Ecology”), to which we submitted a feasibility study in 2012 of remediation alternatives and from which we received permission to begin certain remediation activities pursuant to a signed work order. We have completed a number of sections of the work plan and have received satisfactory completion approval from Ecology on those sections. In cooperation with Ecology, we constructed an experimental treatment facility to determine the treatability and evaluate the feasibility of removing PCBs from ground water under the Trentwood facility. In 2015, we began treatment operations involving a walnut shell filtration system, which we optimized for maximum PCB capture during 2020. Furthermore, based on advancements in technology, we signed an Amended Agreed Order with Ecology in 2020 to evaluate and implement new technologies for PCB removal from groundwater on a pilot basis. The primary technology we are evaluating is Ultraviolet Light Advanced Oxidation Process. As the long-term success of the new methodology cannot be reasonably determined at this time, it is possible we may need to make upward adjustments to our related accruals and cost estimates as the long term results become available.

Pursuant to a consent agreement with the Ohio Environmental Protection Agency (“OEPA”), we initiated an investigational study of our Newark, Ohio (“Newark”) facility related to historical on-site waste disposal. During the quarter ended December 31, 2018, we submitted our remedial investigation study to the OEPA for review and approval. The final remedial investigation report was approved by the OEPA during the quarter ended December 31, 2020. We are currently preparing the required feasibility study, which we expect to submit to the OEPA for review during the quarter ending March 31, 2023. The actual and final remediation cost estimates will not be fully determinable until the feasibility study has been accepted by the OEPA and the selected remediation design work plans are completed, which we expect to occur in the next 14 to 20 months.

At September 30, 2022, our environmental accrual of $14.9 million represented our estimate of the incremental remediation cost based on: (i) proposed alternatives in the final feasibility study related to the Trentwood facility; (ii) currently available facts with respect to our Newark facility; and (iii) facts related to certain other locations owned or formerly owned by us. In accordance with approved and proposed remediation action plans, we expect that the implementation and ongoing monitoring could occur over a period of 30 or more years.

As additional facts are developed, feasibility studies are completed, remediation plans are modified, necessary regulatory approvals for the implementation of remediation are obtained, alternative technologies are developed and/or other factors change, there may be revisions to management’s estimates and actual costs may exceed the current environmental accruals. We believe at this time that it is reasonably possible that undiscounted costs associated with these environmental matters may exceed current accruals by amounts that could be, in the aggregate, up to an estimated $11.6 million over the remediation period. It is reasonably possible that our recorded estimate will change in the next 12 months.

Warrick Rolling Mill CARO Liability. During the quarter ended March 31, 2022, we identified conditional asset retirement obligations (“CAROs”) related to the future removal and disposal of asbestos that is contained within the Warrick rolling mill facility. We believe that the asbestos is appropriately contained in accordance with current environmental regulations. If the facility were demolished or subject to renovation activities that disturb the asbestos, certain environmental regulations are in place which specify the manner in which the asbestos must be handled and disposed. We are required to record the fair value of CAROs if they can be

reasonably estimated. As of September 30, 2022, our liability related to these CAROs was $2.3 million and was included within Long‑term liabilities on our Consolidated Balance Sheets.

Other Contingencies. We are party to various lawsuits, claims, investigations and administrative proceedings that arise in connection with past and current operations. We evaluate such matters on a case-by-case basis and our policy is to vigorously contest any such claims we believe are without merit. We accrue for a legal liability when it is both probable that a liability has been incurred and the amount of the loss is reasonably estimable. Quarterly, in addition to when changes in facts and circumstances require it, we review and adjust these accruals to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. While uncertainties are inherent in the final outcome of such matters and it is presently impossible to determine the actual cost that may ultimately be incurred, we believe that we have sufficiently accrued for such matters and that the ultimate resolution of pending matters will not have a material impact on our consolidated financial position, operating results or liquidity.

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Accumulated Other Comprehensive (Loss) Income

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Accumulated Other Comprehensive (Loss) Income

7. Accumulated Other Comprehensive (Loss) Income

The following table presents the changes in the accumulated balances for each component of AOCI (in millions of dollars):

	Quarter Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Defined Benefit Pension Plans and Salaried VEBA:
Beginning balance	$	(19.6	)	$	(18.4	)	$	(21.4	)	$	(19.8	)
Amortization of net actuarial loss1		—			0.1			—			0.3
Amortization of prior service cost1		1.2			0.9			3.7			2.6
Less: income tax expense2		(0.2	)		(0.2	)		(0.9	)		(0.7	)
Other comprehensive income, net of tax		1.0			0.8			2.8			2.2
Ending balance	$	(18.6	)	$	(17.6	)	$	(18.6	)	$	(17.6	)
Cash Flow Hedges:
Beginning balance	$	(1.7	)	$	24.8		$	17.7		$	1.1
Unrealized (loss) gain on cash flow hedges		(9.8	)		29.8			(18.2	)		72.1
Less: income tax benefit (expense)		2.2			(7.0	)		4.2			(17.0	)
Net unrealized (loss) gain on cash flow hedges		(7.6	)		22.8			(14.0	)		55.1
Reclassification of unrealized loss (gain) upon settlement of cash flow hedges		8.1			(16.7	)		(8.9	)		(28.1	)
Less: income tax (expense) benefit2		(1.9	)		3.9			2.1			6.7
Net loss (gain) reclassified from AOCI to Net income (loss)		6.2			(12.8	)		(6.8	)		(21.4	)
Other comprehensive (loss) income, net of tax		(1.4	)		10.0			(20.8	)		33.7
Ending balance3	$	(3.1	)	$	34.8		$	(3.1	)	$	34.8
Foreign Currency Translation:
Beginning balance	$	—		$	(0.1	)	$	—		$	—
Other comprehensive income (loss), net of tax		—			—			—			(0.1	)
Ending balance	$	—		$	(0.1	)	$	—		$	(0.1	)
Total AOCI ending balance	$	(21.7	)	$	17.1		$	(21.7	)	$	17.1

1Amounts amortized out of AOCI relating to Salaried VEBA adjustments were included within Other income (expense), net, as a component of Net periodic postretirement benefit cost relating to Salaried VEBA.

2Income tax amounts reclassified out of AOCI were included as a component of Income tax (provision) benefit.

3As of September 30, 2022, we estimate a net mark-to-market loss before tax of $7.6 million in AOCI will be reclassified into Net income (loss) upon settlement within the next 12 months.

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Other Income (Expense), Net

9 Months Ended

Sep. 30, 2022

Other Income and Expenses [Abstract]

Other Income (Expense), Net

8. Other Income (Expense), Net

Other income (expense), net consisted of the following (in millions of dollars):

	Quarter Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Interest income	$	0.4		$	0.1		$	0.6		$	0.2
Net periodic postretirement benefit cost		(1.4	)		(1.2	)		(4.3	)		(3.0	)
Unrealized (loss) gain on equity securities		(0.3	)		—			(1.4	)		—
Gain (loss) on extinguishment of debt		—			—			—			(35.9	)
Gain (loss) on disposition of property, plant and equipment		8.4			—			6.3			(0.1	)
Post-acquisition funding received from Alcoa Corporation1		6.0			—			6.0			—
All other, net		(0.4	)		(0.1	)		0.2			0.6
Other income (expense), net	$	12.7		$	(1.2	)	$	7.4		$	(38.2	)

1Reimbursement received for repairs and maintenance expenditures on certain machinery and equipment that we had purchased from Alcoa Corporation in connection with our March 31, 2021 acquisition of the Warrick rolling mill.

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Income Tax Matters

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Income Tax Matters

9. Income Tax Matters

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

	Quarter Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Domestic	$	(1.0	)	$	(8.8	)	$	0.9		$	8.5
Foreign		(0.1	)		0.4			(1.2	)		(1.1	)
Total	$	(1.1	)	$	(8.4	)	$	(0.3	)	$	7.4

The income tax (provision) benefit for the quarters ended September 30, 2022 and September 30, 2021 was $(1.1) million and $(8.4) million, respectively, reflecting an effective tax rate of 33% and 137%, respectively. The difference between the effective tax rate and the blended statutory tax rate for the quarter ended September 30, 2022 was primarily due to an increase of 13% for a change in forecasted earnings and its impact on the annual effective tax rate, partially offset by a decrease of 5% for the recognition of excess book benefits from stock-based compensation.

The difference between the effective tax rate and the projected blended statutory tax rate for the quarter ended September 30, 2021 was primarily due to an increase of 116% of taxable income for a change in forecasted earnings and its impact on the annual effective tax rate, partially offset by a decrease of 2% related to the valuation allowance for certain state net operating losses and a decrease of 1% for the recognition of excess tax benefits from stock-based compensation.

The income tax (provision) benefit for the nine months ended September 30, 2022 and September 30, 2021 was $(0.3) million and $7.4 million, respectively, reflecting an effective tax rate of (14%) and 27%, respectively. The difference between the effective tax rate and the projected blended statutory tax rate for the nine months ended September 30, 2022 was primarily due to: (i) a decrease of 42% related to a Federal Research and Development Credit; (ii) a decrease of 11% for the recognition of excess book benefits from stock-based compensation; (iii) a decrease of 4% related to the valuation allowance for certain state net operating losses; and (iv) a decrease of 2% for related to unrecognized tax benefits, including interest and penalties, partially offset by an increase related to permanent items of 21%, including non-deductible compensation expense and foreign withholding tax.

The difference between the effective tax rate and the projected blended statutory tax rate for the nine months ended September 30, 2021 was primarily due to: (i) an increase of 4% related to the valuation allowance for certain state net operating losses; (ii) an increase of 3% related to tax credits; (iii) an increase of 2% for the recognition of excess tax benefits from stock-based compensation; and (iv) an increase of 2% for a change in state tax rate due to the Warrick acquisition, partially offset by a decrease related to permanent items of 7%, including non-deductible compensation expense and foreign withholding tax.

Our gross unrecognized benefits relating to uncertain tax positions were $5.0 million and $4.1 million at September 30, 2022 and December 31, 2021, respectively, of which, $5.0 million and $4.1 million would be recorded through our income tax provision and thus, impact the effective tax rate at September 30, 2022 and December 31, 2021, respectively, if the gross unrecognized tax benefits were to be recognized.

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

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Net Income (Loss) Per Share

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Net Income (Loss) Per Share

10. Net Income (Loss) Per Share

Basic net income (loss) per share is computed by dividing distributed and undistributed net income (loss) allocable to common shares by the weighted-average number of common shares outstanding during the applicable period. The basic weighted-average number of common shares outstanding during the period excludes non-vested share-based payment awards. Diluted net income (loss) per share was calculated under the treasury stock method for the quarters and nine months ended September 30, 2022 and September 30, 2021, which in both periods was more dilutive than the two-class method.

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

	Quarter Ended September 30,					Nine Months Ended September 30,
	2022		2021			2022			2021
Numerator:
Net income (loss)	$	2.5	$	(2.3	)	$	(3.2	)	$	(20.2	)
Denominator – Weighted-average common shares outstanding (in thousands):
Basic		15,926		15,852			15,897			15,831
Add: dilutive effect of non-vested common shares, restricted stock units and performance shares1		103		—			—			—
Diluted		16,029		15,852			15,897			15,831
Net income (loss) per common share, Basic:	$	0.16	$	(0.14	)	$	(0.20	)	$	(1.28	)
Net income (loss) per common share, Diluted:	$	0.16	$	(0.14	)	$	(0.20	)	$	(1.28	)

1Quantities in the following discussion are denoted in whole shares. For the quarter ended September 30, 2022, approximately 36,000 shares were excluded from the weighted-average diluted shares computation as their inclusion would have been anti‑dilutive. For the quarter ended September 30, 2021 and the nine months ended September 30, 2022 and September 30, 2021, approximately 210,000, 141,000 and 198,000 shares, respectively, were excluded from the computation of net loss per share as their inclusion would have been anti‑dilutive.

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Supplemental Cash Flow Information

9 Months Ended

Sep. 30, 2022

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Information

11. Supplemental Cash Flow Information

	Nine Months Ended September 30,
	2022		2021
	(In millions of dollars)
Interest paid	$	34.2	$	35.9
Non-cash investing and financing activities (included in Accounts payable):
Unpaid purchases of property and equipment	$	40.6	$	10.1
Supplemental lease disclosures:
Operating lease liabilities arising from obtaining operating lease assets	$	2.7	$	24.3
Cash paid for amounts included in the measurement of operating lease liabilities	$	7.3	$	5.7
Finance lease liabilities arising from obtaining finance lease assets	$	0.4	$	2.1

	As of September 30,
	2022		2021
	(In millions of dollars)
Components of cash, cash equivalents and restricted cash:
Cash and cash equivalents	$	129.3	$	295.7
Restricted cash included in Other assets1		14.2		13.8
Total cash, cash equivalents and restricted cash presented on our Statements of Consolidated Cash Flows	$	143.5	$	309.5

1We are required to keep on deposit certain amounts that are pledged or held as collateral relating to workers’ compensation and other agreements. We account for such deposits as restricted cash. From time-to-time, such restricted funds could be returned to us or we could be required to pledge additional cash.

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Business, Product and Geographical Area Information

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Business, Product and Geographical Area Information

12. Business, Product and Geographical Area Information

Our primary line of business is the production of semi-fabricated specialty aluminum mill products, such as bare and coated coils, plate and sheet and extruded and drawn products, for the following end market applications: (i) aerospace and high strength (“Aero/HS products”); (ii) beverage and food packaging products (“Packaging”); (iii) automotive (“Automotive Extrusions”); (iv) general engineering (“GE products”); and (v) other industrial (“Other products”). We operate 13 focused production facilities in the United States and one in Canada. Our chief operating decision maker reviews and evaluates our business as a single operating segment.

The following table presents Net sales by end market applications and by timing of control transfer (in millions of dollars):

	Quarter Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Net sales:
Aero/HS products	$	140.8	$	142.0	$	492.8	$	387.6
Packaging		341.5		367.3		1,240.2		726.1
Automotive Extrusions		60.6		50.1		196.0		163.3
GE products		200.3		187.1		699.2		518.4
Other products		5.7		4.1		23.7		20.2
Total net sales	$	748.9	$	750.6	$	2,651.9	$	1,815.6
Timing of revenue recognition:
Products transferred at a point in time	$	630.2	$	613.6	$	2,165.1	$	1,419.5
Products transferred over time		118.7		137.0		486.8		396.1
Total net sales	$	748.9	$	750.6	$	2,651.9	$	1,815.6

The following table presents geographic information for income taxes paid (in millions of dollars):

	Quarter Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Income taxes paid:
Domestic	$	0.3	$	—	$	2.7	$	1.2
Foreign		1.6		0.2		2.6		0.8
Total income taxes paid	$	1.9	$	0.2	$	5.3	$	2.0

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Subsequent Events

9 Months Ended

Sep. 30, 2022

Subsequent Events [Abstract]

Subsequent Events

13. Subsequent Events

Dividend Declaration. On October 13, 2022, we announced that our Board of Directors declared a quarterly cash dividend of $0.77 per common share. As such, we expect to pay approximately $12.5 million (including dividend equivalents) on or about November 15, 2022 to stockholders of record and the holders of certain restricted stock units at the close of business on October 25, 2022.

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Basis of Presentation and Recent Accounting Pronouncements (Policies)

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Principles of Consolidation and Basis of Presentation

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

Use of Estimates in the Preparation of Financial Statements

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

Supply Chain Financing

Supply Chain Financing. We are party to several supply chain financing arrangements, in which we may sell certain of our customers’ trade accounts receivable to such customers’ financial institutions without recourse. We sell our undivided interests in certain of these receivables at our discretion when we determine that the cost of these arrangements is less than the cost of servicing our receivables with existing debt. Under the terms of the agreements, we retain no rights or interest, have no obligations with respect to the sold receivables and do not service the receivables after the sale. As such, these transactions are being accounted for as a sale. During the quarters ended September 30, 2022 and September 30, 2021 and the nine months ended September 30, 2022 and September 30, 2021, we sold trade accounts receivable totaling $359.2 million, $390.2 million, $1,248.6 million and $706.2 million, respectively, related to these supply chain financing arrangements, of which our customers’ financial institutions applied discount fees totaling $6.2 million, $2.1 million, $15.4 million and $4.0 million, respectively. To the extent discount fees related to the sale of trade accounts receivable under supply chain financing arrangements are not reimbursed by our customers, they are included in Other income (expense), net. As of September 30, 2022, we had been and/or expected to be fully reimbursed by our customers for the majority of these discount fees.

Government Grants

Government Grants. From time-to-time, we receive grants from certain governmental agencies such as states and municipalities. We recognize government grants when we have reasonable assurance that we will comply with any conditions attached to the grant and the grant will be received. Government grants related to property, plant and equipment are presented as a reduction to the related asset’s carrying amount. Grants related to compensation for expenses already incurred or for immediate financial support with no future related costs are recognized as income in the period in which it is receivable. The following table presents the total government assistance recognized during the nine months ended September 30, 2022 (in millions of dollars):

Grantor	Grant	Amount		Duration	Classification
Tennessee Department of Economic and Community Development	TN Fast Track	$	1.1	2021 - 2028	Property, plant and equipment, net
Tennessee Department of Economic and Community Development	TN Fast Track		0.2	2021 - 2028	Selling, general, administrative, research and development
Tennessee Valley Authority	Performance		0.3	2021 - 2026	Property, plant and equipment, net
Indiana Economic Development Corporation	IN EDGE Tax Credit		1.6	2021 - 2030	Cost of products sold, excluding depreciation and amortization and other items
Total		$	3.2

To be eligible to receive and keep the full amount of the TN Fast Track and Performance grants, we must achieve: (i) minimum cumulative expenditures towards developmental and/or capital expenditures; (ii) a minimum number of new full-time employees; and

(iii) a minimum average annual wage, all within seven years of our execution of the grant agreement. To be eligible to receive and keep the full amount of the IN EDGE Tax Credit, we must achieve: (i) minimum cumulative expenditures towards capital expenditures and (ii) a minimum number of full-time employees.

Favorable Commodity Contract Intangible Asset Impairment

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

New Accounting Pronouncements

Adoption of New Accounting Pronouncements

Accounting Standard Update (“ASU”) No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance (“ASU 2021-10”) was issued in November 2021. Under ASU 2021-10, the accounting entities with transactions with a government that are accounted for by analogy to a grant or contribution accounting model are required to annually disclose certain information regarding the transaction including: (i) nature and related accounting policy used; (ii) line items on the balance sheet and income statement affected by the transactions; (iii) amounts applicable to each line item; and (iv) significant terms and conditions. Our adoption of ASU 2021-10 during the quarter ended March 31, 2022 using a prospective approach did not have a material impact on our consolidated financial statements.

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

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Basis of Presentation and Recent Accounting Pronouncements (Tables)

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Schedule of Total Government Assistance Recognized

The following table presents the total government assistance recognized during the nine months ended September 30, 2022 (in millions of dollars):

Grantor	Grant	Amount		Duration	Classification
Tennessee Department of Economic and Community Development	TN Fast Track	$	1.1	2021 - 2028	Property, plant and equipment, net
Tennessee Department of Economic and Community Development	TN Fast Track		0.2	2021 - 2028	Selling, general, administrative, research and development
Tennessee Valley Authority	Performance		0.3	2021 - 2026	Property, plant and equipment, net
Indiana Economic Development Corporation	IN EDGE Tax Credit		1.6	2021 - 2030	Cost of products sold, excluding depreciation and amortization and other items
Total		$	3.2

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Supplemental Balance Sheet Information (Tables)

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Supplemental Balance Sheet Information

Supplemental Balance Sheet Information

	As of September 30, 2022			As of December 31, 2021
	(In millions of dollars)
Trade Receivables, Net
Billed trade receivables	$	312.1		$	333.5
Allowance for doubtful receivables		(0.6	)		(0.8	)
Trade receivables, net	$	311.5		$	332.7
Inventories1
Finished products	$	88.1		$	90.3
Work-in-process		229.6			162.2
Raw materials		208.6			143.0
Operating supplies		11.8			9.1
Total	$	538.1		$	404.6
Property, Plant and Equipment, Net
Land and improvements	$	28.4		$	26.0
Buildings and leasehold improvements		184.2			179.0
Machinery and equipment		1,190.6			1,151.5
Construction in progress2		136.6			75.3
Property, plant and equipment, gross		1,539.8			1,431.8
Accumulated depreciation and amortization		(550.4	)		(480.4	)
Assets held for sale		0.2			3.8
Property, plant and equipment, net	$	989.6		$	955.2
Other Accrued Liabilities
Uncleared cash disbursements	$	19.8		$	10.9
Accrued income taxes and other taxes payable		11.0			9.5
Accrued interest		10.3			9.9
Short-term environmental accrual – Note 6		1.8			2.6
Short-term operating lease liabilities		9.3			9.0
Other – Note 4		36.3			16.5
Total	$	88.5		$	58.4
Long-Term Liabilities
Workers' compensation accrual	$	31.5		$	31.9
Long-term environmental accrual – Note 6		13.1			14.2
Other long-term liabilities		27.6			26.4
Total	$	72.2		$	72.5

1At September 30, 2022 and December 31, 2021, the current cost of our inventory exceeded its stated last-in, first-out (“LIFO”) value by $119.3 million and $137.1 million, respectively.

2Based on market conditions, we temporarily idled projects within Construction in progress totaling $19.2 million and $24.9 million as of September 30, 2022 and December 31, 2021, respectively, all of which are expected to resume at a future date.

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Employee Benefits (Tables)

9 Months Ended

Sep. 30, 2022

Retirement Benefits [Abstract]

Schedule of Total Expense (Benefit) Related to Benefit Plans

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

	Quarter Ended September 30,					Nine Months Ended September 30,
	2022			2021		2022			2021
Defined contribution plans1	$	3.9		$	3.4	$	13.6		$	10.4
Deferred compensation plan2		(0.1	)		0.2		(0.9	)		0.6
Multiemployer pension plans1		1.3			1.3		3.9			3.7
Salaried VEBA2		0.9			0.6		2.8			1.7
Pension plans3		1.3			1.4		4.0			2.9
OPEB3		0.9			0.9		2.8			1.9
Total	$	8.2		$	7.8	$	26.2		$	21.2

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

2The deferred compensation plan and the current service cost component of Net periodic postretirement benefit cost relating to the voluntary employees’ beneficiary association that provides benefits for certain eligible retirees and their surviving spouses and eligible dependents (“Salaried VEBA”) are included within our Statements of Consolidated Income (Loss) in SG&A and R&D for all periods presented. All other components of Net periodic postretirement benefit cost relating to Salaried VEBA are included within Other income (expense), net, on our Statements of Consolidated Income (Loss).

3The current service cost component of Net periodic postretirement benefit cost relating to both the pension plans and the healthcare and life insurance postretirement benefit plan (“OPEB”) are included within our Statements of Consolidated Income (Loss) in COGS for all periods presented. All other components of Net periodic postretirement benefit cost relating to both the pension plans and the OPEB are included within Other income (expense), net, on our Statements of Consolidated Income (Loss).

Schedule of Net Benefit Costs

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

	Pension Plans						OPEB				Salaried VEBA
	Quarter Ended September 30,						Quarter Ended September 30,				Quarter Ended September 30,
	2022			2021			2022		2021		2022			2021
Service cost	$	1.5		$	1.4		$	0.4	$	0.3	$	—		$	—
Interest cost		0.1			0.1			0.5		0.6		0.5			0.4
Expected return on plan assets		(0.3	)		(0.1	)		—		—		(0.8	)		(0.8	)
Amortization of prior service cost1		—			—			—		—		1.2			0.9
Amortization of net actuarial loss		—			—			—		—		—			0.1
Total net periodic postretirement benefit cost	$	1.3		$	1.4		$	0.9	$	0.9	$	0.9		$	0.6

	Pension Plans2						OPEB2				Salaried VEBA
	Nine Months Ended September 30,						Nine Months Ended September 30,				Nine Months Ended September 30,
	2022			2021			2022		2021		2022			2021
Service cost	$	4.3		$	2.8		$	1.2	$	0.7	$	—		$	—
Interest cost		0.4			0.3			1.6		1.2		1.4			1.2
Expected return on plan assets		(0.7	)		(0.3	)		—		—		(2.3	)		(2.4	)
Amortization of prior service cost1		—			—			—		—		3.7			2.6
Amortization of net actuarial loss		—			0.1			—		—		—			0.3
Total net periodic postretirement benefit cost	$	4.0		$	2.9		$	2.8	$	1.9	$	2.8		$	1.7

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

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

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Derivatives, Hedging Programs and Other Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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

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

	Remainder of 2022	2023	2024	2025	2026
Zinc	66%	3%	—	—	—
Copper	58%	—	—	—	—
Magnesium	100%	100%	40%	—	—
Silicon	100%	—	—	—	—
Natural Gas	49%	50%	47%	26%	21%
Electricity	71%	43%	—	—	—

Summary of Derivative Positions

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

Aluminum	Maturity Period (month/year)	Notional Amount of Contracts (mmlbs)
Fixed price purchase contracts	October 2022 through December 2023		87.9
Fixed price sales contracts	October 2022 through December 2022		15.0
Midwest premium swap contracts1	October 2022 through December 2023		52.3

Alloying Metals	Maturity Period (month/year)	Notional Amount of Contracts (mmlbs)
Fixed price purchase contracts	October 2022 through November 2023		2.0

Natural Gas	Maturity Period (month/year)	Notional Amount of Contracts (mmbtu)
Fixed price purchase contracts	October 2022 through December 2025		3,900,000

Electricity	Maturity Period (month/year)	Notional Amount of Contracts (Mwh)
Fixed price purchase contracts	October 2022 through December 2022		55,225

Euro	Maturity Period (month/year)	Notional Amount of Contracts (euro)
Fixed price forward contracts	December 2022 through February 2024		1,126,066

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

Summary of Loss (Gain) Associated with Derivative Contracts

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

	Quarter Ended September 30,						Nine Months Ended September 30,						Statements of Consolidated
	2022			2021			2022			2021			Income (Loss) Classification
Total of income and expense line items presented in our Statements of Consolidated Income (Loss) in which the effects of hedges are recorded:
Cash flow hedges	$	694.9		$	677.8		$	2,459.2		$	1,613.6		Cost of products sold
Loss (gain) recognized in our Statements of Consolidated Income (Loss) related to cash flow hedges:
Aluminum	$	14.2		$	(13.3	)	$	1.4		$	(24.3	)	Cost of products sold
Alloying Metals		—			(0.2	)		—			0.2		Cost of products sold
Natural gas		(2.3	)		(0.6	)		(5.1	)		(0.7	)	Cost of products sold
Electricity		(3.8	)		(2.6	)		(5.2	)		(3.3	)	Cost of products sold
Total loss (gain) recognized in our Statements of Consolidated Income (Loss) related to cash flow hedges	$	8.1		$	(16.7	)	$	(8.9	)	$	(28.1	)
Loss (gain) recognized in our Statements of Consolidated Income (Loss) related to non-designated hedges:
Alloying Metals – Realized loss (gain)	$	0.3		$	(1.2	)	$	(0.8	)	$	(3.8	)	Cost of products sold
Alloying Metals – Unrealized loss		—			1.9			1.9			2.0		Cost of products sold
Total loss (gain) recognized in our Statements of Consolidated Income (Loss) related to non-designated hedges	$	0.3		$	0.7		$	1.1		$	(1.8	)

Schedule of Fair Value of Derivative Financial Instruments

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

	As of September 30, 2022								As of December 31, 2021
	Assets		Liabilities			Net Amount			Assets		Liabilities			Net Amount
Cash Flow Hedges:
Aluminum –
Fixed price purchase contracts	$	0.6	$	(15.5	)	$	(14.9	)	$	12.2	$	(1.1	)	$	11.1
Fixed price sales contracts		1.7		—			1.7			—		—			—
Midwest premium swap contracts		1.4		(3.7	)		(2.3	)		5.5		(0.1	)		5.4
Natural gas – Fixed price purchase contracts		9.1		—			9.1			3.0		(0.1	)		2.9
Electricity – Fixed price purchase contracts		2.6		—			2.6			4.4		(0.6	)		3.8
Foreign currency – Fixed price forward contracts		—		(0.1	)		(0.1	)		—		—			—
Total cash flow hedges		15.4		(19.3	)		(3.9	)		25.1		(1.9	)		23.2
Non-Designated Hedges:
Alloying Metals – Fixed price purchase contracts		—		(0.5	)		(0.5	)		1.6		(0.1	)		1.5
Total non-designated hedges		—		(0.5	)		(0.5	)		1.6		(0.1	)		1.5
Total	$	15.4	$	(19.8	)	$	(4.4	)	$	26.7	$	(2.0	)	$	24.7

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

	As of September 30, 2022			As of December 31, 2021
Derivative assets:
Prepaid expenses and other current assets	$	11.3		$	25.0
Other assets		4.1			1.7
Total derivative assets	$	15.4		$	26.7
Derivative liabilities:
Other accrued liabilities	$	(19.5	)	$	(1.9	)
Long-term liabilities		(0.3	)		(0.1	)
Total derivative liabilities	$	(19.8	)	$	(2.0	)

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Debt and Credit Facility (Tables)

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Summary of Senior Notes

The following table summarizes key details of our Senior Notes:

				Outstanding (in millions of dollars)
	Issuance Date	Maturity	Effective Interest Rate	As of September 30, 2022			As of December 31, 2021
4.50% Senior Notes	May 2021	June 2031	4.7%	$	550.0		$	550.0
6.50% Senior Notes1	April/May 2020	May 2025	6.8%		—			—
4.625% Senior Notes	November 2019	March 2028	4.8%		500.0			500.0
Total debt					1,050.0			1,050.0
Unamortized issuance costs					(12.4	)		(13.7	)
Total carrying amount				$	1,037.6		$	1,036.3

1In May 2021, we redeemed in full the remaining balance of our 6.50% Senior Notes at a redemption price of 108.83% of the principal amount plus $1.3 million of accrued and unpaid interest for a total net cash outflow of $382.2 million. Upon redemption of the 6.50% Senior Notes, we recorded a loss on extinguishment of debt of $35.9 million within Other income (expense), net, on our Statements of Consolidated Income (Loss), which included the premium payment of $30.9 million and a write-off of the remaining unamortized premium and debt issuance costs of $5.0 million.

Summary of Fair Value of Outstanding Senior Notes

The following table presents the fair value of our outstanding Senior Notes, which are Level 1 liabilities (in millions of dollars):

	As of September 30, 2022		As of December 31, 2021
4.50% Senior Notes	$	399.1	$	542.6
4.625% Senior Notes	$	410.4	$	506.9

Schedule of Availability and Usage of Revolving Credit Facility

The following table summarizes availability and usage of our Revolving Credit Facility as determined by a borrowing base calculated as of September 30, 2022 (in millions of dollars):

Revolving Credit Facility borrowing commitment	$	575.0
Borrowing base availability	$	572.4
Less: Outstanding borrowings under Revolving Credit Facility		—
Less: Outstanding letters of credit under Revolving Credit Facility		(17.4	)
Remaining borrowing availability	$	555.0

Summary of Interest Relating to Senior Notes and Revolving Credit Facility

Interest expense relating to our Senior Notes and Revolving Credit Facility was as follows (in millions of dollars):

	Quarter Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Senior Notes interest expense, including debt issuance cost amortization	$	12.4		$	12.4		$	37.2		$	36.6
Revolving Credit Facility commitment fees and finance cost amortization		0.6			0.3			1.6			1.2
Interest expense capitalized as construction in progress		(0.9	)		(0.2	)		(2.3	)		(0.6	)
Total interest expense	$	12.1		$	12.5		$	36.5		$	37.2

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Accumulated Other Comprehensive (Loss) Income (Tables)

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table presents the changes in the accumulated balances for each component of AOCI (in millions of dollars):

	Quarter Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Defined Benefit Pension Plans and Salaried VEBA:
Beginning balance	$	(19.6	)	$	(18.4	)	$	(21.4	)	$	(19.8	)
Amortization of net actuarial loss1		—			0.1			—			0.3
Amortization of prior service cost1		1.2			0.9			3.7			2.6
Less: income tax expense2		(0.2	)		(0.2	)		(0.9	)		(0.7	)
Other comprehensive income, net of tax		1.0			0.8			2.8			2.2
Ending balance	$	(18.6	)	$	(17.6	)	$	(18.6	)	$	(17.6	)
Cash Flow Hedges:
Beginning balance	$	(1.7	)	$	24.8		$	17.7		$	1.1
Unrealized (loss) gain on cash flow hedges		(9.8	)		29.8			(18.2	)		72.1
Less: income tax benefit (expense)		2.2			(7.0	)		4.2			(17.0	)
Net unrealized (loss) gain on cash flow hedges		(7.6	)		22.8			(14.0	)		55.1
Reclassification of unrealized loss (gain) upon settlement of cash flow hedges		8.1			(16.7	)		(8.9	)		(28.1	)
Less: income tax (expense) benefit2		(1.9	)		3.9			2.1			6.7
Net loss (gain) reclassified from AOCI to Net income (loss)		6.2			(12.8	)		(6.8	)		(21.4	)
Other comprehensive (loss) income, net of tax		(1.4	)		10.0			(20.8	)		33.7
Ending balance3	$	(3.1	)	$	34.8		$	(3.1	)	$	34.8
Foreign Currency Translation:
Beginning balance	$	—		$	(0.1	)	$	—		$	—
Other comprehensive income (loss), net of tax		—			—			—			(0.1	)
Ending balance	$	—		$	(0.1	)	$	—		$	(0.1	)
Total AOCI ending balance	$	(21.7	)	$	17.1		$	(21.7	)	$	17.1

1Amounts amortized out of AOCI relating to Salaried VEBA adjustments were included within Other income (expense), net, as a component of Net periodic postretirement benefit cost relating to Salaried VEBA.

2Income tax amounts reclassified out of AOCI were included as a component of Income tax (provision) benefit.

3As of September 30, 2022, we estimate a net mark-to-market loss before tax of $7.6 million in AOCI will be reclassified into Net income (loss) upon settlement within the next 12 months.

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Other Income (Expense), Net (Tables)

9 Months Ended

Sep. 30, 2022

Other Income and Expenses [Abstract]

Other Income (Expense), Net

consisted of the following (in millions of dollars):

	Quarter Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Interest income	$	0.4		$	0.1		$	0.6		$	0.2
Net periodic postretirement benefit cost		(1.4	)		(1.2	)		(4.3	)		(3.0	)
Unrealized (loss) gain on equity securities		(0.3	)		—			(1.4	)		—
Gain (loss) on extinguishment of debt		—			—			—			(35.9	)
Gain (loss) on disposition of property, plant and equipment		8.4			—			6.3			(0.1	)
Post-acquisition funding received from Alcoa Corporation1		6.0			—			6.0			—
All other, net		(0.4	)		(0.1	)		0.2			0.6
Other income (expense), net	$	12.7		$	(1.2	)	$	7.4		$	(38.2	)

1Reimbursement received for repairs and maintenance expenditures on certain machinery and equipment that we had purchased from Alcoa Corporation in connection with our March 31, 2021 acquisition of the Warrick rolling mill.

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Income Tax Matters (Tables)

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Income Tax (Provision) Benefit

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

	Quarter Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Domestic	$	(1.0	)	$	(8.8	)	$	0.9		$	8.5
Foreign		(0.1	)		0.4			(1.2	)		(1.1	)
Total	$	(1.1	)	$	(8.4	)	$	(0.3	)	$	7.4

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Net Income (Loss) Per Share (Tables)

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Schedule of Calculation of Basic and Diluted Net Income (Loss) Per Share

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

	Quarter Ended September 30,					Nine Months Ended September 30,
	2022		2021			2022			2021
Numerator:
Net income (loss)	$	2.5	$	(2.3	)	$	(3.2	)	$	(20.2	)
Denominator – Weighted-average common shares outstanding (in thousands):
Basic		15,926		15,852			15,897			15,831
Add: dilutive effect of non-vested common shares, restricted stock units and performance shares1		103		—			—			—
Diluted		16,029		15,852			15,897			15,831
Net income (loss) per common share, Basic:	$	0.16	$	(0.14	)	$	(0.20	)	$	(1.28	)
Net income (loss) per common share, Diluted:	$	0.16	$	(0.14	)	$	(0.20	)	$	(1.28	)

1Quantities in the following discussion are denoted in whole shares. For the quarter ended September 30, 2022, approximately 36,000 shares were excluded from the weighted-average diluted shares computation as their inclusion would have been anti‑dilutive. For the quarter ended September 30, 2021 and the nine months ended September 30, 2022 and September 30, 2021, approximately 210,000, 141,000 and 198,000 shares, respectively, were excluded from the computation of net loss per share as their inclusion would have been anti‑dilutive.

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Supplemental Cash Flow Information (Tables)

9 Months Ended

Sep. 30, 2022

Supplemental Cash Flow Elements [Abstract]

Schedule of Supplemental Cash Flow Information

	Nine Months Ended September 30,
	2022		2021
	(In millions of dollars)
Interest paid	$	34.2	$	35.9
Non-cash investing and financing activities (included in Accounts payable):
Unpaid purchases of property and equipment	$	40.6	$	10.1
Supplemental lease disclosures:
Operating lease liabilities arising from obtaining operating lease assets	$	2.7	$	24.3
Cash paid for amounts included in the measurement of operating lease liabilities	$	7.3	$	5.7
Finance lease liabilities arising from obtaining finance lease assets	$	0.4	$	2.1

	As of September 30,
	2022		2021
	(In millions of dollars)
Components of cash, cash equivalents and restricted cash:
Cash and cash equivalents	$	129.3	$	295.7
Restricted cash included in Other assets1		14.2		13.8
Total cash, cash equivalents and restricted cash presented on our Statements of Consolidated Cash Flows	$	143.5	$	309.5

1We are required to keep on deposit certain amounts that are pledged or held as collateral relating to workers’ compensation and other agreements. We account for such deposits as restricted cash. From time-to-time, such restricted funds could be returned to us or we could be required to pledge additional cash.

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Business, Product and Geographical Area Information (Tables)

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Schedule of Net Sales by End Market Segment Applications

The following table presents Net sales by end market applications and by timing of control transfer (in millions of dollars):

	Quarter Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Net sales:
Aero/HS products	$	140.8	$	142.0	$	492.8	$	387.6
Packaging		341.5		367.3		1,240.2		726.1
Automotive Extrusions		60.6		50.1		196.0		163.3
GE products		200.3		187.1		699.2		518.4
Other products		5.7		4.1		23.7		20.2
Total net sales	$	748.9	$	750.6	$	2,651.9	$	1,815.6
Timing of revenue recognition:
Products transferred at a point in time	$	630.2	$	613.6	$	2,165.1	$	1,419.5
Products transferred over time		118.7		137.0		486.8		396.1
Total net sales	$	748.9	$	750.6	$	2,651.9	$	1,815.6

Schedule of Income Taxes Paid by Geographical Area

The following table presents geographic information for income taxes paid (in millions of dollars):

	Quarter Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Income taxes paid:
Domestic	$	0.3	$	—	$	2.7	$	1.2
Foreign		1.6		0.2		2.6		0.8
Total income taxes paid	$	1.9	$	0.2	$	5.3	$	2.0

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Basis of Presentation and Recent Accounting Pronouncements - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Significant Accounting Policies [Line Items]
Trade accounts receivable sold	$ 359.2	$ 390.2	$ 1,248.6	$ 706.2
Net discount fees recognized	$ 6.2	$ 2.1	15.4	$ 4.0
Impairment of intangible assets			$ 3.1
TN Fast Track
Significant Accounting Policies [Line Items]
Government grants eligible conditions description			(i) minimum cumulative expenditures towards developmental and/or capital expenditures; (ii) a minimum number of new full-time employees; and
TN Performance
Significant Accounting Policies [Line Items]
Government grants eligible conditions description			(i) minimum cumulative expenditures towards developmental and/or capital expenditures; (ii) a minimum number of new full-time employees; and (iii) a minimum average annual wage, all within seven years of our execution of the grant agreement.
IN EDGE Tax Credit
Significant Accounting Policies [Line Items]
Government grants eligible conditions description			(i) minimum cumulative expenditures towards capital expenditures and (ii) a minimum number of full-time employees.
ASU No. 2021-10
Significant Accounting Policies [Line Items]
Change in Accounting Principle, Accounting Standards Update, Adopted	true		true
Change in Accounting Principle, Accounting Standards Update, Adoption Date	Mar. 31, 2022		Mar. 31, 2022
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect	true		true
ASU No. 2020-04
Significant Accounting Policies [Line Items]
Change in Accounting Principle, Accounting Standards Update, Adopted	true		true
Change in Accounting Principle, Accounting Standards Update, Adoption Date	Jun. 30, 2022		Jun. 30, 2022
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect	true		true

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Basis of Presentation and Recent Accounting Pronouncements - Schedule of Total Government Assistance Recognized (Details) $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($)
Government Grant
Significant Accounting Policies [Line Items]
Government assistance recognized amount	$ 3.2
TN Fast Track | Tennessee Department of Economic and Community Development | Selling, General, Administrative, Research and Development
Significant Accounting Policies [Line Items]
Government assistance recognized amount	$ 0.2
TN Fast Track | Tennessee Department of Economic and Community Development | Selling, General, Administrative, Research and Development | Maximum
Significant Accounting Policies [Line Items]
Government grants transaction duration	2028
TN Fast Track | Tennessee Department of Economic and Community Development | Selling, General, Administrative, Research and Development | Minimum
Significant Accounting Policies [Line Items]
Government grants transaction duration	2021
TN Fast Track | Tennessee Department of Economic and Community Development | Property, Plant and Equipment, Net
Significant Accounting Policies [Line Items]
Government assistance recognized amount	$ 1.1
TN Fast Track | Tennessee Department of Economic and Community Development | Property, Plant and Equipment, Net | Maximum
Significant Accounting Policies [Line Items]
Government grants transaction duration	2028
TN Fast Track | Tennessee Department of Economic and Community Development | Property, Plant and Equipment, Net | Minimum
Significant Accounting Policies [Line Items]
Government grants transaction duration	2021
TN Performance | Tennessee Valley Authority | Property, Plant and Equipment, Net
Significant Accounting Policies [Line Items]
Government assistance recognized amount	$ 0.3
TN Performance | Tennessee Valley Authority | Property, Plant and Equipment, Net | Maximum
Significant Accounting Policies [Line Items]
Government grants transaction duration	2026
TN Performance | Tennessee Valley Authority | Property, Plant and Equipment, Net | Minimum
Significant Accounting Policies [Line Items]
Government grants transaction duration	2021
IN EDGE Tax Credit | Indiana Economic Development Corporation | Cost of Products Sold
Significant Accounting Policies [Line Items]
Government assistance recognized amount	$ 1.6
IN EDGE Tax Credit | Indiana Economic Development Corporation | Cost of Products Sold | Maximum
Significant Accounting Policies [Line Items]
Government grants transaction duration	2030
IN EDGE Tax Credit | Indiana Economic Development Corporation | Cost of Products Sold | Minimum
Significant Accounting Policies [Line Items]
Government grants transaction duration	2021

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Supplemental Balance Sheet Information - Schedule of Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Trade Receivables, Net
Allowance for doubtful receivables	$ (0.6)	$ (0.8)
Trade receivables, net	311.5	332.7
Inventories
Finished products	88.1	90.3
Work-in-process	229.6	162.2
Raw materials	208.6	143.0
Operating supplies	11.8	9.1
Total	538.1	404.6
Property, Plant and Equipment, Net
Land and improvements	28.4	26.0
Buildings and leasehold improvements	184.2	179.0
Machinery and equipment	1,190.6	1,151.5
Construction in progress	136.6	75.3
Property, plant and equipment, gross	1,539.8	1,431.8
Accumulated depreciation and amortization	(550.4)	(480.4)
Assets held for sale	0.2	3.8
Property, plant and equipment, net	989.6	955.2
Other Accrued Liabilities
Uncleared cash disbursements	19.8	10.9
Accrued income taxes and other taxes payable	11.0	9.5
Accrued interest	10.3	9.9
Short-term environmental accrual	1.8	2.6
Short-term operating lease liabilities	9.3	9.0
Other - Note 4	36.3	16.5
Total	88.5	58.4
Long-Term Liabilities
Workers' compensation accrual	31.5	31.9
Long-term environmental accrual	13.1	14.2
Other long-term liabilities	27.6	26.4
Total	72.2	72.5
Billed
Trade Receivables, Net
Billed trade receivables	$ 312.1	$ 333.5

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Supplemental Balance Sheet Information - Schedule of Supplemental Balance Sheet Information (Parenthetical) (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Excess of Replacement or Current Costs over Stated LIFO Value	$ 119.3	$ 137.1
Construction in progress temporarily idled	$ 19.2	$ 24.9

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Employee Benefits - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Accrued salaries, wages and related expenses
Defined Benefit Plan Disclosure [Line Items]
Accrued salaries, wages and related expenses	$ 4.7
Level 1 | Fair Value, Measurements, Recurring
Defined Benefit Plan Disclosure [Line Items]
Fair value of deferred compensation assets	$ 9.6	$ 10.5

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Employee Benefits - Summary of Total Expense (Benefit) Related to All Postretirement Benefit Plans (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Defined Benefit Plan Disclosure [Line Items]
Total net periodic postretirement benefit cost	$ 1.4	$ 1.2	$ 4.3	$ 3.0
Other Postretirement Benefits Plan
Defined Benefit Plan Disclosure [Line Items]
Defined contribution plan, cost	3.9	3.4	13.6	10.4
Deferred compensation arrangement with individual, compensation expense	(0.1)	0.2	(0.9)	0.6
Multiemployer plan, contributions by employer	1.3	1.3	3.9	3.7
Total net periodic postretirement benefit cost	0.9	0.9	2.8	1.9
Total other employee benefit plans	8.2	7.8	26.2	21.2
Postretirement Health Coverage | Salaried VEBA
Defined Benefit Plan Disclosure [Line Items]
Total net periodic postretirement benefit cost	0.9	0.6	2.8	1.7
Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Total net periodic postretirement benefit cost	$ 1.3	$ 1.4	$ 4.0	$ 2.9

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Employee Benefits - Summary of Components of Net Periodic Postretirement Benefit Cost (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Defined Benefit Plan Disclosure [Line Items]
Total net periodic postretirement benefit cost	$ 1.4	$ 1.2	$ 4.3	$ 3.0
Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	1.5	1.4	4.3	2.8
Interest cost	0.1	0.1	0.4	0.3
Expected return on plan assets	(0.3)	(0.1)	(0.7)	(0.3)
Amortization of net actuarial loss				0.1
Total net periodic postretirement benefit cost	1.3	1.4	4.0	2.9
Other Postretirement Benefits Plan
Defined Benefit Plan Disclosure [Line Items]
Service cost	0.4	0.3	1.2	0.7
Interest cost	0.5	0.6	1.6	1.2
Total net periodic postretirement benefit cost	0.9	0.9	2.8	1.9
Postretirement Health Coverage | Salaried VEBA
Defined Benefit Plan Disclosure [Line Items]
Interest cost	0.5	0.4	1.4	1.2
Expected return on plan assets	(0.8)	(0.8)	(2.3)	(2.4)
Amortization of prior service cost	1.2	0.9	3.7	2.6
Amortization of net actuarial loss		0.1		0.3
Total net periodic postretirement benefit cost	$ 0.9	$ 0.6	$ 2.8	$ 1.7

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Derivatives, Hedging Programs and Other Financial Instruments - Additional Information (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Derivative [Line Items]
Collateral posted for net derivatives	$ 0	$ 0
Cash collateral posted from customers	1,100,000	0
Designated as Hedging Instrument | Purchase
Derivative [Line Items]
Derivative net liability	$ 14,800,000	$ 0

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Derivatives, Hedging Programs and Other Financial Instruments - Summary of Volume of Derivative and or Physical Delivery Commitments with Energy Companies (Details) - Scenario, Forecast	Dec. 31, 2026	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Natural Gas
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount, Percent of Required Need, Coverage	21.00%	26.00%	47.00%	50.00%	49.00%
Zinc
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount, Percent of Required Need, Coverage				3.00%	66.00%
Copper
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount, Percent of Required Need, Coverage					58.00%
Magnesium
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount, Percent of Required Need, Coverage			40.00%	100.00%	100.00%
Silicon
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount, Percent of Required Need, Coverage					100.00%
Electricity
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount, Percent of Required Need, Coverage				43.00%	71.00%

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Derivatives, Hedging Programs and Other Financial Instruments - Summary of Derivative Positions (Details) Mmlb in Millions	9 Months Ended
	Sep. 30, 2022 EUR (€) Mmlb MWh MMBTU
Purchase | Natural Gas
Derivative [Line Items]
Derivative non-monetary notional amount | MMBTU	3,900,000
Purchase | Natural Gas | Minimum
Derivative [Line Items]
Derivative maturity period	Oct. 31, 2022
Purchase | Natural Gas | Maximum
Derivative [Line Items]
Derivative maturity period	Dec. 31, 2025
Purchase | Aluminum
Derivative [Line Items]
Derivative non-monetary notional amount	87.9
Purchase | Aluminum | Minimum
Derivative [Line Items]
Derivative maturity period	Oct. 31, 2022
Purchase | Aluminum | Maximum
Derivative [Line Items]
Derivative maturity period	Dec. 31, 2023
Purchase | Midwest premium swap contracts
Derivative [Line Items]
Derivative non-monetary notional amount	52.3
Purchase | Midwest premium swap contracts | Minimum
Derivative [Line Items]
Derivative maturity period	Oct. 31, 2022
Purchase | Midwest premium swap contracts | Maximum
Derivative [Line Items]
Derivative maturity period	Dec. 31, 2023
Purchase | Alloying Metals
Derivative [Line Items]
Derivative non-monetary notional amount	2.0
Purchase | Alloying Metals | Minimum
Derivative [Line Items]
Derivative maturity period	Oct. 31, 2022
Purchase | Alloying Metals | Maximum
Derivative [Line Items]
Derivative maturity period	Nov. 30, 2023
Purchase | Foreign Exchange Contract
Derivative [Line Items]
Derivative notional amount | €	€ 1,126,066
Purchase | Foreign Exchange Contract | Minimum
Derivative [Line Items]
Derivative maturity period	Dec. 31, 2022
Purchase | Foreign Exchange Contract | Maximum
Derivative [Line Items]
Derivative maturity period	Feb. 29, 2024
Purchase | Electricity
Derivative [Line Items]
Derivative non-monetary notional amount | MWh	55,225
Purchase | Electricity | Minimum
Derivative [Line Items]
Derivative maturity period	Oct. 31, 2022
Purchase | Electricity | Maximum
Derivative [Line Items]
Derivative maturity period	Dec. 31, 2022
Sales | Aluminum
Derivative [Line Items]
Derivative non-monetary notional amount	15.0
Sales | Aluminum | Minimum
Derivative [Line Items]
Derivative maturity period	Oct. 31, 2022
Sales | Aluminum | Maximum
Derivative [Line Items]
Derivative maturity period	Dec. 31, 2022

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Derivatives, Hedging Programs and Other Financial Instruments - Summary of Loss (Gain) Associated with Derivative Contracts (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Derivative Instruments Gain Loss [Line Items]
Total of income and expense line items presented in our Statements of Consolidated Income (Loss) in which the effects of cash flow hedges are recorded	$ 694.9	$ 677.8	$ 2,459.2	$ 1,613.6
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Total of income and expense line items presented in our Statements of Consolidated Income (Loss) in which the effects of cash flow hedges are recorded	Total of income and expense line items presented in our Statements of Consolidated Income (Loss) in which the effects of cash flow hedges are recorded	Total of income and expense line items presented in our Statements of Consolidated Income (Loss) in which the effects of cash flow hedges are recorded	Total of income and expense line items presented in our Statements of Consolidated Income (Loss) in which the effects of cash flow hedges are recorded
Not Designated as Hedging Instrument
Derivative Instruments Gain Loss [Line Items]
Loss (gain) recognized in our Statements of Consolidated Income (Loss)	$ 0.3	$ 0.7	$ 1.1	$ (1.8)
Not Designated as Hedging Instrument | Alloying Metals
Derivative Instruments Gain Loss [Line Items]
Loss (gain) recognized in our Statements of Consolidated Income (Loss)	(0.3)	(1.2)	(0.8)	(3.8)
Loss (gain) recognized in our Statements of Consolidated Income (Loss) Unrealized loss		1.9	1.9	2.0
Cash Flow Hedges
Derivative Instruments Gain Loss [Line Items]
Total of income and expense line items presented in our Statements of Consolidated Income (Loss) in which the effects of cash flow hedges are recorded	694.9	677.8	2,459.2	1,613.6
Cash Flow Hedges | Designated as Hedging Instrument
Derivative Instruments Gain Loss [Line Items]
Loss (gain) recognized in our Statements of Consolidated Income (Loss)	8.1	(16.7)	(8.9)	(28.1)
Cash Flow Hedges | Designated as Hedging Instrument | Electricity
Derivative Instruments Gain Loss [Line Items]
Loss (gain) recognized in our Statements of Consolidated Income (Loss)	(3.8)	(2.6)	(5.2)	(3.3)
Cash Flow Hedges | Designated as Hedging Instrument | Natural Gas
Derivative Instruments Gain Loss [Line Items]
Loss (gain) recognized in our Statements of Consolidated Income (Loss)	(2.3)	(0.6)	(5.1)	(0.7)
Cash Flow Hedges | Designated as Hedging Instrument | Aluminum
Derivative Instruments Gain Loss [Line Items]
Loss (gain) recognized in our Statements of Consolidated Income (Loss)	$ 14.2	(13.3)	$ (1.4)	(24.3)
Cash Flow Hedges | Designated as Hedging Instrument | Alloying Metals
Derivative Instruments Gain Loss [Line Items]
Loss (gain) recognized in our Statements of Consolidated Income (Loss)		$ (0.2)		$ 0.2

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Derivatives, Hedging Programs and Other Financial Instruments - Schedule of Fair Value of Derivative Financial Instruments (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Designated as Hedging Instrument | Purchase
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative liability	$ (14.8)	$ 0.0
Fair Value, Measurements, Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset	15.4	26.7
Derivative liability	(19.8)	(2.0)
Fair Value, Measurements, Recurring | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset	15.4	26.7
Derivative liability	(19.8)	(2.0)
Net Amount	(4.4)	24.7
Fair Value, Measurements, Recurring | Level 2 | Not Designated as Hedging Instrument
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset	0.0	1.6
Derivative liability	(0.5)	(0.1)
Net Amount	(0.5)	1.5
Fair Value, Measurements, Recurring | Level 2 | Not Designated as Hedging Instrument | Purchase | Alloying Metals
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset	0.0	1.6
Derivative liability	(0.5)	(0.1)
Net Amount	(0.5)	1.5
Fair Value, Measurements, Recurring | Cash Flow Hedges | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset	15.4	25.1
Derivative liability	(19.3)	(1.9)
Net Amount	(3.9)	23.2
Fair Value, Measurements, Recurring | Cash Flow Hedges | Level 2 | Designated as Hedging Instrument | Purchase | Natural Gas
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset	9.1	3.0
Derivative liability	0.0	(0.1)
Net Amount	9.1	2.9
Fair Value, Measurements, Recurring | Cash Flow Hedges | Level 2 | Designated as Hedging Instrument | Purchase | Aluminum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset	0.6	12.2
Derivative liability	(15.5)	(1.1)
Net Amount	(14.9)	11.1
Fair Value, Measurements, Recurring | Cash Flow Hedges | Level 2 | Designated as Hedging Instrument | Purchase | Midwest premium swap contracts
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset	1.4	5.5
Derivative liability	(3.7)	(0.1)
Net Amount	(2.3)	5.4
Fair Value, Measurements, Recurring | Cash Flow Hedges | Level 2 | Designated as Hedging Instrument | Purchase | Foreign Exchange Contract
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative liability	(0.1)
Net Amount	(0.1)
Fair Value, Measurements, Recurring | Cash Flow Hedges | Level 2 | Designated as Hedging Instrument | Purchase | Electricity
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset	2.6	4.4
Derivative liability	0.0	(0.6)
Net Amount	2.6	3.8
Fair Value, Measurements, Recurring | Cash Flow Hedges | Level 2 | Designated as Hedging Instrument | Sales | Aluminum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative asset	1.7	0.0
Derivative liability	0.0	0.0
Net Amount	$ 1.7	$ 0.0

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Derivatives, Hedging Programs and Other Financial Instruments - Schedule of Total Amounts of Derivative Assets and Liabilities on Balance Sheets (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Derivative [Line Items]
Derivative asset	$ 15.4	$ 26.7
Derivative liability	(19.8)	(2.0)
Prepaid Expenses and Other Current Assets
Derivative [Line Items]
Derivative asset	11.3	25.0
Other Assets
Derivative [Line Items]
Derivative asset	4.1	1.7
Other Accrued Liabilities
Derivative [Line Items]
Derivative liability	(19.5)	(1.9)
Long-term Liabilities
Derivative [Line Items]
Derivative liability	$ (0.3)	$ (0.1)

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Debt and Credit Facility (Senior Notes) - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021	May 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Senior Notes
Debt Instrument [Line Items]
Debt instrument aggregate principal amount	$ 1,050.0	$ 1,050.0
4.50% Senior Notes
Debt Instrument [Line Items]
Debt instrument contractual rate (percent)	4.50%
4.50% Senior Notes | Senior Notes
Debt Instrument [Line Items]
Debt instrument contractual rate (percent)	4.50%	4.50%
Debt instrument aggregate principal amount	$ 550.0	$ 550.0
6.50% Senior Notes
Debt Instrument [Line Items]
Debt instrument contractual rate (percent)			6.50%
6.50% Senior Notes | Senior Notes
Debt Instrument [Line Items]
Debt instrument contractual rate (percent)			6.50%
Debt instrument aggregate principal amount				$ 350.0
4.625% Senior Notes | Senior Notes
Debt Instrument [Line Items]
Debt instrument contractual rate (percent)	4.625%				4.625%
Debt instrument aggregate principal amount	$ 500.0	$ 500.0			$ 500.0

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Debt and Credit Facility - Summary of Senior Notes (Details) - USD ($) $ in Millions	6 Months Ended	9 Months Ended
	Jun. 30, 2022	Sep. 30, 2022	Dec. 31, 2021	May 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Senior Notes
Debt Instrument [Line Items]
Total debt		$ 1,050.0	$ 1,050.0
Unamortized issuance costs		(12.4)	(13.7)
Total carrying amount		$ 1,037.6	1,036.3
4.50% Senior Notes | Senior Notes
Debt Instrument [Line Items]
Issuance Date		May 21, 2021
Debt Instrument, Maturity Date		Jun. 30, 2031
Effective interest rate (percent)		4.70%
Total debt		$ 550.0	550.0
6.50% Senior Notes
Debt Instrument [Line Items]
Unamortized issuance costs				$ (5.0)
6.50% Senior Notes | Senior Notes
Debt Instrument [Line Items]
Issuance Date, Start	2020-04	2020-04
Issuance Date, End	2020-05	2020-05
Debt Instrument, Maturity Date		May 31, 2025
Effective interest rate (percent)		6.80%
Total debt					$ 350.0
4.625% Senior Notes | Senior Notes
Debt Instrument [Line Items]
Issuance Date		Nov. 30, 2019
Debt Instrument, Maturity Date		Mar. 31, 2028
Effective interest rate (percent)		4.80%
Total debt		$ 500.0	$ 500.0			$ 500.0

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Debt and Credit Facility - Summary of Senior Notes (Parenthetical) (Details) - USD ($) $ in Millions	1 Months Ended	9 Months Ended
	May 31, 2021	Sep. 30, 2021	Sep. 30, 2022	Dec. 31, 2021	Dec. 31, 2019
Debt Instrument [Line Items]
Loss on extinguishment of debt		$ (35.9)
Senior Notes
Debt Instrument [Line Items]
Unamortized debt issuance costs			$ 12.4	$ 13.7
4.50% Senior Notes
Debt Instrument [Line Items]
Debt instrument contractual rate (percent)			4.50%
4.50% Senior Notes | Senior Notes
Debt Instrument [Line Items]
Debt instrument contractual rate (percent)			4.50%	4.50%
6.50% Senior Notes
Debt Instrument [Line Items]
Debt instrument contractual rate (percent)	6.50%
Percentage of redemption price of principal amount	108.83%
Debt accrued and unpaid interest	$ 1.3
Loss on extinguishment of debt	(35.9)
Premium payment	30.9
Repayments of senior debt	382.2
Unamortized debt issuance costs	$ 5.0
6.50% Senior Notes | Senior Notes
Debt Instrument [Line Items]
Debt instrument contractual rate (percent)	6.50%
4.625% Senior Notes | Senior Notes
Debt Instrument [Line Items]
Debt instrument contractual rate (percent)			4.625%		4.625%

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Debt and Credit Facility - Summary of Fair Value of Outstanding Senior Notes (Details) - Senior Notes - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
4.50% Senior Notes
Debt Instrument [Line Items]
Fair value of outstanding senior notes	$ 399.1	$ 542.6
4.625% Senior Notes
Debt Instrument [Line Items]
Fair value of outstanding senior notes	$ 410.4	$ 506.9

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Debt and Credit Facility (Revolving Credit Facility) - Additional Information (Details) - USD ($) $ in Millions	1 Months Ended
	Apr. 30, 2022	Sep. 30, 2022	Oct. 31, 2019
Amended Credit Agreement
Debt Instrument [Line Items]
Line of credit maturity date description	extended the maturity date from the earlier of (a) February 2024 (if certain conditions were met) and (b) October 2024 to April 2027
Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity		$ 575.0	$ 375.0
Revolving Credit Facility | Amended Credit Agreement
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 575.0
Revolving Credit Facility | Letter of Credit | Amended Credit Agreement
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 50.0

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Debt and Credit Facility - Schedule of Availability and Usage of Revolving Credit Facility (Details) - Revolving Credit Facility - USD ($) $ in Millions	Sep. 30, 2022	Oct. 31, 2019
Line Of Credit Facility [Line Items]
Revolving Credit Facility borrowing commitment	$ 575.0	$ 375.0
Borrowing base availability	572.4
Less: Outstanding borrowings under Revolving Credit Facility	0.0
Less: Outstanding letters of credit under Revolving Credit Facility	(17.4)
Remaining borrowing availability	$ 555.0

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Debt and Credit Facility - Summary of Interest Relating to Senior Notes and Revolving Credit Facility (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Debt Instrument [Line Items]
Total interest expense	$ 12.1	$ 12.5	$ 36.5	$ 37.2
Senior Notes and Revolving Credit Facility
Debt Instrument [Line Items]
Interest expense capitalized as construction in progress	(0.9)	(0.2)	(2.3)	(0.6)
Total interest expense	12.1	12.5	36.5	37.2
Revolving Credit Facility
Debt Instrument [Line Items]
Revolving Credit Facility commitment fees and finance cost amortization	0.6	0.3	1.6	1.2
Senior Notes
Debt Instrument [Line Items]
Senior Notes interest expense, including debt issuance cost amortization	$ 12.4	$ 12.4	$ 37.2	$ 36.6

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Commitments and Contingencies - Additional Information (Details) $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($)
Environmental Contingency
Environmental accrual	$ 14.9
Expected period related to remediation expenditures for environmental contingencies period	30 years
Potential increase in environmental costs	$ 11.6
Time period within which recorded estimate of its environmental obligation may change	12 months
Long-term Liabilities
Environmental Contingency
Liability for conditional asset retirement obligations	$ 2.3
Minimum
Environmental Contingency
Estimated final remediation cost feasibility study period	14 months
Maximum
Environmental Contingency
Estimated final remediation cost feasibility study period	20 months

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Accumulated Other Comprehensive (Loss) Income - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions		3 Months Ended								9 Months Ended
		Sep. 30, 2022		Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021		Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022		Sep. 30, 2021
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance		$ 650.0		$ 708.2	$ 692.5	$ 720.7		$ 735.0	$ 732.4	$ 692.5		$ 732.4
Other comprehensive (loss) income, net of tax		(0.4)		(35.6)	18.0	10.8		15.9	9.1	(18.0)		35.8
Ending balance		642.0		650.0	708.2	721.0		720.7	735.0	642.0		721.0
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance		(19.6)			(21.4)	(18.4)			(19.8)	(21.4)		(19.8)
Less: income tax (expense) benefit	[1]	(0.2)				(0.2)				(0.9)		(0.7)
Other comprehensive (loss) income, net of tax		1.0				0.8				2.8		2.2
Ending balance		(18.6)		(19.6)		(17.6)		(18.4)		(18.6)		(17.6)
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Reclassification from AOCI	[2]					0.1						0.3
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Reclassification from AOCI	[2]	1.2				0.9				3.7		2.6
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance		(1.7)			17.7	24.8			1.1	17.7		1.1
Unrealized (loss) gain on cash flow hedges		(9.8)				29.8				(18.2)		72.1
Less: income tax benefit (expense)		2.2				(7.0)				4.2		(17.0)
Net unrealized (loss) gain on cash flow hedges		(7.6)				22.8				(14.0)		55.1
Reclassification from AOCI		8.1				(16.7)				(8.9)		(28.1)
Less: income tax (expense) benefit	[1]	(1.9)				3.9				2.1		6.7
Net loss (gain) reclassified from AOCI to Net income (loss)		6.2				(12.8)				(6.8)		(21.4)
Other comprehensive (loss) income, net of tax		(1.4)				10.0				(20.8)		33.7
Ending balance		(3.1)	[3]	(1.7)		34.8	[3]	24.8		(3.1)	[3]	34.8	[3]
AOCI, Accumulated Foreign Currency Adjustment Attributable to Parent
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance						(0.1)
Other comprehensive (loss) income, net of tax												(0.1)
Ending balance						(0.1)		(0.1)				(0.1)
AOCI Attributable to Parent
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance		(21.3)		14.3	(3.7)	6.3		(9.6)	(18.7)	(3.7)		(18.7)
Other comprehensive (loss) income, net of tax		(0.4)		(35.6)	18.0	10.8		15.9	9.1
Ending balance		$ (21.7)		$ (21.3)	$ 14.3	$ 17.1		$ 6.3	$ (9.6)	$ (21.7)		$ 17.1

[1] Income tax amounts reclassified out of AOCI were included as a component of Income tax (provision) benefit.

[2] Amounts amortized out of AOCI relating to Salaried VEBA adjustments were included within Other income (expense), net, as a component of Net periodic postretirement benefit cost relating to Salaried VEBA.

[3] As of September 30, 2022, we estimate a net mark-to-market loss before tax of $7.6 million in AOCI will be reclassified into Net income (loss) upon settlement within the next 12 months.

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Accumulated Other Comprehensive (Loss) Income - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) (Parenthetical) (Details) $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($)
Equity [Abstract]
Estimated net mark-to-market loss before tax within next twelve months - cash flow hedges	$ 7.6

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Other Income (Expense), Net (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Other Income and Expenses [Abstract]
Interest income	$ 0.4	$ 0.1	$ 0.6	$ 0.2
Net periodic postretirement benefit cost	(1.4)	(1.2)	(4.3)	(3.0)
Unrealized (loss) gain on equity securities	(0.3)		(1.4)
Loss on extinguishment of debt				(35.9)
Gain (loss) on disposition of property, plant and equipment	8.4		6.3	(0.1)
Post-acquisition funding received from Alcoa Corporation	6.0		6.0
All other, net	(0.4)	(0.1)	0.2	0.6
Other income (expense), net	$ 12.7	$ (1.2)	$ 7.4	$ (38.2)

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Income Tax Matters - Income Tax (Provision) Benefit - (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Domestic	$ (1.0)	$ (8.8)	$ 0.9	$ 8.5
Foreign	(0.1)	0.4	(1.2)	(1.1)
Total	$ (1.1)	$ (8.4)	$ (0.3)	$ 7.4

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Income Tax Matters - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Income tax (provision) benefit	$ (1.1)	$ (8.4)	$ (0.3)	$ 7.4
Effective tax rate (percent)	33.00%	137.00%	(14.00%)	27.00%
Effective income tax rate reconciliation, pre-tax income, change in forecasted earnings, percent	13.00%	116.00%
Effective income tax rate reconciliation, pre-tax income, tax expense (benefit), share-based payment arrangement, percent	(5.00%)	(1.00%)	(11.00%)	2.00%
Effective income tax rate reconciliation, pre-tax income, valuation allowance for certain state net operating losses, percent		(2.00%)	(4.00%)	4.00%
Effective income tax rate reconciliation, pre-tax income, related to federal research & development credit, percent (decrease)			(42.00%)
Effective income tax rate reconciliation, pre-tax income, tax credits, percent				3.00%
Effective income tax rate reconciliation, unrecognized tax benefits, including interest and penalties			(2.00%)
Effective income tax rate reconciliation, pre-tax income,, increase (decrease) to permanent items including nondeductible compensation expense and foreign withholding tax, percent			21.00%	(7.00%)
Effective income tax rate reconciliation, change in state tax rate, percent				2.00%
Gross unrecognized tax benefits	$ 5.0		$ 5.0		$ 4.1
Gross unrecognized tax benefits that would impact effective tax rate	$ 5.0		$ 5.0		$ 4.1

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Net Income (Loss) Per Share - Schedule of Calculation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021
Numerator:
Net income (loss)	$ 2.5	$ (13.8)	$ 8.1	$ (2.3)	$ (22.4)	$ 4.5	$ (3.2)	$ (20.2)
Denominator – Weighted-average common shares outstanding (in thousands):
Basic	15,926			15,852			15,897	15,831
Add: dilutive effect of non-vested common shares, restricted stock units and performance shares	103
Diluted	16,029			15,852			15,897	15,831
Net income (loss) per common share, Basic:	$ 0.16			$ (0.14)			$ (0.20)	$ (1.28)
Net income (loss) per common share, Diluted:	$ 0.16			$ (0.14)			$ (0.20)	$ (1.28)

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Net Income (Loss) Per Share - Schedule of Calculation of Basic and Diluted Net Loss Per Share (Parenthetical) (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share, amount	36,000	210,000	141,000	198,000

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Supplemental Cash Flow Information - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Dec. 31, 2020
Supplemental Cash Flow Elements [Abstract]
Interest paid	$ 34.2	$ 35.9
Non-cash investing and financing activities (included in Accounts payable) and Supplemental lease disclosures:
Unpaid purchases of property and equipment	40.6	10.1
Operating lease liabilities arising from obtaining operating lease assets	2.7	24.3
Cash paid for amounts included in the measurement of operating lease liabilities	7.3	5.7
Finance lease liabilities arising from obtaining finance lease assets	0.4	2.1
Components of cash, cash equivalents and restricted cash:
Cash and cash equivalents	129.3	295.7	$ 303.2
Restricted cash included in Other assets	14.2	13.8
Total cash, cash equivalents and restricted cash presented on our Statements of Consolidated Cash Flows	$ 143.5	$ 309.5	$ 317.0	$ 794.3

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Business, Product and Geographical Area Information - Additional Information (Details)	9 Months Ended
	Sep. 30, 2022 Productionfacility
Domestic
Segment Reporting Information [Line Items]
Number of production facilities	13
Canada
Segment Reporting Information [Line Items]
Number of production facilities	1

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Business, Product and Geographical Area Information - Net Sales by End Market Segment Applications (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Net sales:
Net sales	$ 748.9	$ 750.6	$ 2,651.9	$ 1,815.6
Aero/HS products
Net sales:
Net sales	140.8	142.0	492.8	387.6
Packaging
Net sales:
Net sales	341.5	367.3	1,240.2	726.1
Automotive Extrusions
Net sales:
Net sales	60.6	50.1	196.0	163.3
GE products
Net sales:
Net sales	200.3	187.1	699.2	518.4
Other products
Net sales:
Net sales	5.7	4.1	23.7	20.2
Transferred at Point in Time
Net sales:
Net sales	630.2	613.6	2,165.1	1,419.5
Transferred over Time
Net sales:
Net sales	$ 118.7	$ 137.0	$ 486.8	$ 396.1

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Business, Product and Geographical Area Information - Schedule of Income Taxes Paid by Geographical Area (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Taxes Paid By Geographical Area [Line Items]
Income taxes paid	$ 1.9	$ 0.2	$ 5.3	$ 2.0
Domestic
Income Taxes Paid By Geographical Area [Line Items]
Income taxes paid	0.3		2.7	1.2
Foreign
Income Taxes Paid By Geographical Area [Line Items]
Income taxes paid	$ 1.6	$ 0.2	$ 2.6	$ 0.8

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Subsequent Events - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended
	Oct. 13, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021
Subsequent Event [Line Items]
Cash dividends declared (in dollars per share)		$ 0.77	$ 0.77	$ 0.77	$ 0.72	$ 0.72	$ 0.72
Subsequent Event
Subsequent Event [Line Items]
Cash dividends declared (in dollars per share)	$ 0.77
Cash dividends declared	$ 12.5
Cash dividends, declared date	Oct. 13, 2022
Cash dividends, payable date	Nov. 15, 2022
Cash dividends, record date	Oct. 25, 2022