XML 24 R13.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Business Combinations, Goodwill and Intangible Assets | 12 Months Ended
--- | ---
Dec. 31, 2023
Business Combinations Goodwill And Intangible Assets Disclosure [Abstract] |
Business Combinations, Goodwill and Intangible Assets | 4. Business Combinations, Goodwill and Intangible Assets Business Combinations. On March 31, 2021, we acquired Warrick for a final aggregate purchase consideration, after giving effect to working capital adjustments and indebtedness related to postretirement benefits, of $609.2 million. Warrick is a leading producer of bare and coated aluminum coil used for can stock applications in the beverage and food packaging industry in North America. The transaction provided us with non-cyclical end market diversification and re-entry into the packaging end market. Goodwill. In conjunction with our acquisition of Warrick, we added $20.5 million of goodwill after allocating the consideration paid, net of cash received to all other identifiable assets. The goodwill reflected the value we expected from our re-entry into the Packaging end market and our assembled workforce. In conjunction with our annual testing and due to downward revisions in forecasted operating margins as a result of supply chain challenges, inflationary cost pressures and manufacturing inefficiencies, we determined that the carrying value of Warrick exceeded its fair value, and we recognized an impairment charge of $20.5 million for the year ended December 31, 2022 within Operating income in the Statements of Consolidated Income (Loss). We estimated the fair value of Warrick using a combination of an income approach and a market-based approach. The income approach incorporated the use of cash flow projections and a discount rate that is developed using market participant-based assumptions. The cash flow projections are based on our best estimates of the long-term forecasts of the business, market prices, projected cash flows, and the rate used in the discounting of those cash flows. As goodwill is deductible for tax purposes, the deferred tax effects were included in the impairment charge and income tax provision. The following table presents the changes in the carrying value of our goodwill (in millions of dollars):
|  | As of December 31, |
|  | 2023 |  |  | 2022 |
Gross carrying value 1: |  |  |  |  |  |
Beginning balance |  | $ | 57.7 |  |  | $ | 57.7 |
Warrick impairment |  |  | — |  |  |  | (20.5 | )
Ending balance |  |  | 57.7 |  |  |  | 37.2 |
Accumulated impairment loss 1 |  |  | (38.9 | ) |  |  | (18.4 | )
Net carrying value |  | $ | 18.8 |  |  | $ | 18.8 |
1. The gross carrying value and accumulated impairment loss excludes $25.2 million of goodwill recorded in conjunction with our acquisition of IMT. Intangible Assets. The following table presents the gross carrying amount and accumulated amortization by major intangible asset class (in millions of dollars, except amortization periods):
|  | Weighted- Average Amortization Period (in years) |  |  | Gross Amount |  |  | Accumulated Amortization |  |  | Intangible Assets, Net |
As of December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships |  |  | 19 |  |  | $ | 68.1 |  |  | $ | (26.1 | ) |  | $ | 42.0 |
Trade name |  |  | 10 |  |  |  | 2.4 |  |  |  | (1.2 | ) |  |  | 1.2 |
Non-compete agreement |  |  | 5 |  |  |  | 5.4 |  |  |  | (5.4 | ) |  |  | — |
Favorable lease contracts |  |  | 120 |  |  |  | 7.0 |  |  |  | (0.2 | ) |  |  | 6.8 |
Total |  |  |  |  | $ | 82.9 |  |  | $ | (32.9 | ) |  | $ | 50.0 |
As of December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships |  |  | 19 |  |  | $ | 68.1 |  |  | $ | (21.9 | ) |  | $ | 46.2 |
Trade name |  |  | 10 |  |  |  | 2.4 |  |  |  | (1.0 | ) |  |  | 1.4 |
Non-compete agreement |  |  | 5 |  |  |  | 5.4 |  |  |  | (4.6 | ) |  |  | 0.8 |
Favorable lease contracts |  |  | 120 |  |  |  | 7.0 |  |  |  | (0.1 | ) |  |  | 6.9 |
Total |  |  |  |  | $ | 82.9 |  |  | $ | (27.6 | ) |  | $ | 55.3 |
During the year ended December 31, 2022, we impaired the remaining book value of our favorable commodity contracts 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 remainder of the contract. The impairment charge of $3.1 million was included within Other operating charges, net, in our Statements of Consolidated Income (Loss). We identified no indicators of impairment associated with our intangible assets during the years ended December 31, 2023 and December 31, 2021. Amortization expense relating to definite-lived intangible assets was $5.3 million, $9.3 million and $9.0 million for 2023, 2022, and 2021, respectively. The following table presents the expected amortization of intangible assets for each of the next five calendar years and thereafter as of December 31, 2023 (in millions of dollars):
2024 |  | $ | 4.5 |
2025 |  |  | 4.5 |
2026 |  |  | 4.5 |
2027 |  |  | 4.5 |
2028 |  |  | 4.4 |
Thereafter |  |  | 27.6 |
Total |  | $ | 50.0 |

X
- Definition Business combinations goodwill and intangible assets disclosure. + References No definition available. + Details
Name: | kalu_BusinessCombinationsGoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | kalu_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Business combinations goodwill and intangible assets disclosure. + References No definition available. + Details
Name: | kalu_BusinessCombinationsGoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | kalu_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration