XML 22 R14.htm IDEA: XBRL DOCUMENT
v3.24.2

Employee Benefits | 6 Months Ended
--- | ---
Jun. 30, 2024
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 June 30, 2024 and December 31, 2023 was $11.5 million and $11.1 million, respectively. 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 (expense) income, net (see Note 9). Offsetting liabilities relating to the deferred compensation plan are included in Other accrued liabilities and Long-term liabilities. Short-Term Incentive Plans As of June 30, 2024, we had a liability of $8.7 million recorded within Accrued salaries, wages and related expenses for estimated probable future payments under the 2024 short-term incentive plans. Postretirement Benefit Plans The following table presents the total expense related to all postretirement benefit plans (in millions of dollars):
|  | Quarter Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Defined contribution plans 1 |  | $ | 4.2 |  |  | $ | 4.3 |  |  | $ | 10.0 |  |  | $ | 10.1 |
Deferred compensation plan 2 |  |  | — |  |  |  | 0.4 |  |  |  | 0.7 |  |  |  | 0.6 |
Multiemployer pension plans 1 |  |  | 1.5 |  |  |  | 1.4 |  |  |  | 3.0 |  |  |  | 2.8 |
Net periodic postretirement benefit cost relating to defined benefit plans 2,3 |  |  | 2.8 |  |  |  | 3.3 |  |  |  | 4.3 |  |  |  | 6.4 |
Total |  | $ | 8.5 |  |  | $ | 9.4 |  |  | $ | 18.0 |  |  | $ | 19.9 |
1. Substantially all of these charges related to employee benefits are in COGS with the remaining balance in Selling, general, administrative, research, and development (“SG&A and R&D”) within our Statements of Consolidated Income. 2. Deferred compensation plan expense and the current service cost component of Net periodic postretirement benefit cost relating to Salaried VEBA are included within our Statements of Consolidated Income 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 (expense) income, net, on our Statements of Consolidated Income. 3. The current service cost component of Net periodic postretirement benefit cost relating to both the pension plans and the OPEB plan are included within our Statements of Consolidated Income in COGS for all periods presented. All other components of Net periodic postretirement benefit cost relating to both the pension plans and the OPEB plan are included within Other (expense) income, net, on our Statements of Consolidated Income. Warrick Pension Amendment. During the quarter ended June 30, 2024, we amended the Kaiser Aluminum Warrick pension plan (“Warrick Pension Plan”) to clarify certain plan provisions going back to the date of our acquisition of Warrick, which resulted in an interim remeasurement of the Warrick Pension Plan as of June 30, 2024. The remeasurement decreased the Warrick Pension Plan’s net funded status by $0.8 million, driven by: (i) a $2.2 million increase in pre-tax prior service cost, which we recorded to AOCI and is expected to be amortized on a straight-line basis over approximately 10 years, and (ii) an actuarial gain of $1.4 million, reflecting an increase in the assumed discount rate. The discount rate assumption used to determine the Warrick Pension Plan benefit obligation was 5.51% at June 30, 2024 compared to 5.04% at December 31, 2023. There was no change to the expected long-term rate of return on plan assets assumption at June 30, 2024 compared to December 31, 2023. The Warrick Pension Plan amendment had no effect on our expected contributions for 2024. During the six months ended June 30, 2024, we contributed $3.6 million to the pension plans. We expect to make further contributions of approximately $2.2 million to the pension plans during the remainder of 2024. Components of Net Periodic Postretirement Benefit Cost. Our results of operations included the following impacts associated with the defined benefit plans: (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 relating to the defined benefit plans (in millions of dollars):
|  | Pension Plans |  |  | OPEB |  |  | Salaried VEBA |
|  | Quarter Ended June 30, |  |  | Quarter Ended June 30, |  |  | Quarter Ended June 30, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Service cost |  | $ | 1.1 |  |  | $ | 0.8 |  |  | $ | 0.2 |  |  | $ | 0.2 |  |  | $ | — |  |  | $ | — |
Interest cost |  |  | 0.4 |  |  |  | 0.3 |  |  |  | 0.9 |  |  |  | 0.9 |  |  |  | 0.6 |  |  |  | 0.7 |
Expected return on plan assets |  |  | (0.4 | ) |  |  | (0.2 | ) |  |  | — |  |  |  | — |  |  |  | (0.6 | ) |  |  | (0.5 | )
Amortization of prior service cost 1 |  |  | 0.1 |  |  |  | 0.1 |  |  |  | — |  |  |  | — |  |  |  | 0.7 |  |  |  | 1.3 |
Amortization of net actuarial gain |  |  | — |  |  |  | — |  |  |  | (0.2 | ) |  |  | (0.3 | ) |  |  | — |  |  |  | — |
Total net periodic postretirement benefit cost |  | $ | 1.2 |  |  | $ | 1.0 |  |  | $ | 0.9 |  |  | $ | 0.8 |  |  | $ | 0.7 |  |  | $ | 1.5 |
|  | Pension Plans |  |  | OPEB |  |  | Salaried VEBA |
|  | Six Months Ended June 30, |  |  | Six Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Service cost |  | $ | 2.0 |  |  | $ | 1.8 |  |  | $ | 0.5 |  |  | $ | 0.5 |  |  | $ | — |  |  | $ | — |
Interest cost |  |  | 0.8 |  |  |  | 0.6 |  |  |  | 1.7 |  |  |  | 1.7 |  |  |  | 1.1 |  |  |  | 1.4 |
Expected return on plan assets |  |  | (0.7 | ) |  |  | (0.5 | ) |  |  | — |  |  |  | — |  |  |  | (1.1 | ) |  |  | (1.1 | )
Amortization of prior service cost 1 |  |  | 0.3 |  |  |  | 0.1 |  |  |  | — |  |  |  | — |  |  |  | 0.2 |  |  |  | 2.5 |
Amortization of net actuarial gain |  |  | — |  |  |  | — |  |  |  | (0.5 | ) |  |  | (0.6 | ) |  |  | — |  |  |  | — |
Total net periodic postretirement benefit cost |  | $ | 2.4 |  |  | $ | 2.0 |  |  | $ | 1.7 |  |  | $ | 1.6 |  |  | $ | 0.2 |  |  | $ | 2.8 |
1. We amortize prior service cost on a straight-line basis over the average remaining years of service of the active plan participants.

X
- References No definition available. + Details
Name: | us-gaap_CompensationAndRetirementDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for retirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 70 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480794/715-70-50-1 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 55 -Paragraph 17 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480482/715-20-55-17 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (d)(iv)(03) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (d)(i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (q) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (l) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//715/tableOfContent Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (d)(iii) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (o) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (p) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (r)(1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (r)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480126/715-20-S99-2 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 60 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480266/715-60-50-3 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration