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Employee Incentive Plans | 6 Months Ended
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Jun. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Employee Incentive Plans | Employee Incentive Plans Short-term Incentive Plans (“STI Plans”) The Company has a short-term incentive compensation plan for senior management and certain other employees payable at the Company’s election in cash, shares of common stock, or a combination of cash and shares of common stock. Amounts earned under the plan are based primarily on the “economic value added,” or EVA, of the Company’s Fabricated Products business, adjusted for certain safety and performance factors. EVA, as defined by the Company’s STI Plans, is the excess of the Company’s adjusted pre-tax operating income for a particular year over a pre-determined percentage of the adjusted net assets of the immediately preceding year, measured over a one-year period. Most of the Company’s production facilities have similar programs for both hourly and salaried employees. Total costs relating to STI Plans were recorded as follows, for each period presented:
| Quarter Ended |  | Six Months Ended
| June 30, |  | June 30,
| 2013 |  | 2012 |  | 2013 |  | 2012
Cost of products sold, excluding depreciation and amortization and other items | $ | 1.3 |  |  | $ | 1.1 |  |  | $ | 2.4 |  |  | $ | 2.3 |
Selling, administrative, research and development, and general | 3.5 |  |  | 2.1 |  |  | 6.5 |  |  | 4.8 |
Total costs recorded in connection with STI Plans | $ | 4.8 |  |  | $ | 3.2 |  |  | $ | 8.9 |  |  | $ | 7.1 |
The following table presents the allocation of the charges detailed above, by segment:
| Quarter Ended |  | Six Months Ended
| June 30, |  | June 30,
| 2013 |  | 2012 |  | 2013 |  | 2012
Fabricated Products | $ | 3.3 |  |  | $ | 2.3 |  |  | $ | 6.2 |  |  | $ | 5.0 |
All Other | 1.5 |  |  | 0.9 |  |  | 2.7 |  |  | 2.1 |
Total costs recorded in connection with STI Plans | $ | 4.8 |  |  | $ | 3.2 |  |  | $ | 8.9 |  |  | $ | 7.1 |
Long-term Incentive Programs (“LTI Programs”) General. Officers and other key employees of the Company or one or more of its subsidiaries, as well as directors of the Company, are eligible to participate in the Kaiser Aluminum Corporation Amended and Restated 2006 Equity and Performance Incentive Plan (as amended, the “Equity Incentive Plan”). Subject to certain adjustments that may be required from time to time to prevent dilution or enlargement of the rights of participants under the Equity Incentive Plan, a total of 2,722,222 common shares have been authorized for issuance under the Equity Incentive Plan. At June 30, 2013, 842,347 common shares were available for additional awards under the Equity Incentive Plan. Non-vested Common Shares, Restricted Stock Units and Performance Shares. The Company grants non-vested common shares to its non-employee directors, executive officers and other key employees. The Company also grants restricted stock units to certain employees. The restricted stock units have rights similar to the rights of non-vested common shares, and the employee will receive one common share for each restricted stock unit upon the vesting of the restricted stock unit. In addition to non-vested common shares and restricted stock units, the Company also grants performance shares to executive officers and other key employees. Such awards are subject to performance requirements pertaining to the Company’s EVA performance (as set forth in each year’s LTI Program), measured over a three-year performance period. EVA, as defined in the Company’s Equity Incentive Plan, is the excess of the Company’s adjusted pre-tax operating income for a particular year over a pre-determined percentage of the adjusted net assets of the immediately preceding year. The number of performance shares, if any, that will ultimately vest and result in the issuance of common shares depends on the average annual EVA achieved for the specified three-year performance period. See Note 10 of Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 for additional information with respect to the Equity Incentive Plan and the detailed vesting requirements for the different types of equity awards described above. Non-cash Compensation Expense. Compensation expense relating to all awards under the Equity Incentive Plan are included in Selling, administrative, research and development, and general. Recorded non-cash compensation expense by type of award under LTI Programs were as follows, for each period presented:
| Quarter Ended |  | Six Months Ended
| June 30, |  | June 30,
| 2013 |  | 2012 |  | 2013 |  | 2012
Service-based non-vested common shares and restricted stock units | $ | 0.8 |  |  | $ | 0.7 |  |  | $ | 2.5 |  |  | $ | 2.4 |
Performance shares | 1.1 |  |  | 0.4 |  |  | 2.0 |  |  | 1.2 |
Total non-cash compensation expense | $ | 1.9 |  |  | $ | 1.1 |  |  | $ | 4.5 |  |  | $ | 3.6 |
The following table presents the allocation of the charges detailed above, by segment:
| Quarter Ended |  | Six Months Ended
| June 30, |  | June 30,
| 2013 |  | 2012 |  | 2013 |  | 2012
Fabricated Products | $ | 0.6 |  |  | $ | 0.4 |  |  | $ | 1.2 |  |  | $ | 1.1 |
All Other | 1.3 |  |  | 0.7 |  |  | 3.3 |  |  | 2.5 |
Total non-cash compensation expense | $ | 1.9 |  |  | $ | 1.1 |  |  | $ | 4.5 |  |  | $ | 3.6 |
Unrecognized Gross Compensation Cost Data. The following table presents unrecognized gross compensation cost data as of June 30, 2013:
| Unrecognized gross compensation costs, by award type |  | Expected period (in years) over which the remaining gross compensation costs will be recognized, by award type
Service-based non-vested common shares and restricted stock units | $ | 5.4 |  |  | 1.8
Performance shares | $ | 8.6 |  |  | 2.2
Summary of Activity. A summary of the activity with respect to non-vested common shares, restricted stock units and performance shares for the six months ended June 30, 2013 is as follows:
| Non-Vested Common Shares |  | Restricted Stock Units |  | Performance Shares
| Shares |  | Weighted-Average Grant-Date Fair Value per Share |  | Units |  | Weighted-Average Grant-Date Fair Value per Unit |  | Shares |  | Weighted-Average Grant-Date Fair Value per Share
Outstanding at December 31, 2012 | 158,684 |  |  | $ | 42.47 |  |  | 5,183 |  |  | $ | 43.99 |  |  | 583,950 |  |  | $ | 41.78 |
Granted | 74,236 |  |  | 58.49 |  |  | 2,600 |  |  | 57.70 |  |  | 170,298 |  |  | 57.57 |
Vested | (81,161 | ) |  | 41.67 |  |  | (2,311 | ) |  | 42.74 |  |  | (32,312 | ) |  | 34.13 |
Forfeited | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Canceled | — |  |  | — |  |  | — |  |  | — |  |  | (157,876 | ) |  | 34.13 |
Outstanding at June 30, 2013 | 151,759 |  |  | $ | 50.74 |  |  | 5,472 |  |  | $ | 51.03 |  |  | 564,060 |  |  | $ | 49.13 |
A summary of select activity with respect to non-vested common shares, restricted stock units and performance shares for the six months ended June 30, 2012 is as follows:
| Non-Vested Common Shares |  | Restricted Stock Units |  | Performance Shares
| Shares |  | Weighted-Average Grant-Date Fair Value per Share |  | Units |  | Weighted-Average Grant-Date Fair Value per Unit |  | Shares |  | Weighted-Average Grant-Date Fair Value per Share
Granted | 92,949 |  |  | $ | 45.03 |  |  | 2,486 |  |  | $ | 44.46 |  |  | 215,579 |  |  | $ | 44.47 |
Vested | (132,913 | ) |  | $ | 24.02 |  |  | (3,375 | ) |  | $ | 25.77 |  |  | (7,952 | ) |  | $ | 18.89 |
Stock Options. The Company has fully-vested stock options from a one-time issuance in 2007. As of both June 30, 2013 and December 31, 2012, 20,791 fully-vested options were outstanding, in each case exercisable to purchase common shares at $80.01 per share and having a remaining contractual life of 3.75 and 4.25 years, respectively. The average fair value of the options granted was $39.90. No new options were granted and no existing options were forfeited or exercised during the six months ended June 30, 2013. Vested Stock. From time to time, the Company issues common shares to non-employee directors electing to receive common shares in lieu of all or a portion of their annual retainer fees. The fair value of these common shares is based on the fair value of the shares at the date of issuance and is immediately recognized in earnings as a period expense. For both six months ended June 30, 2013 and June 30, 2012, the Company recorded $0.2 relating to common shares granted to non-employee directors in lieu of all or a portion of their annual retainer fees. Under the Equity Incentive Plan, participants may elect to have the Company withhold common shares to satisfy minimum statutory tax withholding obligations arising in connection with the exercise of stock options and vesting of non-vested shares, restricted stock units and performance shares. Any such shares withheld are canceled by the Company on the applicable vesting dates, which correspond to the times at which income to the employee is recognized. When the Company withholds these common shares, the Company is required to remit to the appropriate taxing authorities the fair value of the shares withheld as of the vesting date. During the six months ended June 30, 2013 and June 30, 2012, 36,221 and 45,128 common shares, respectively, were withheld and canceled for this purpose.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 64, 65, A240 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 93-6 -Paragraph 53 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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