10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended September 30, 2017

OR

¨ 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: 333-185443

________________________________________________________________________

Aleris Corporation

(Exact name of registrant as specified in its charter)

________________________________________________________________________

Delaware	27-1539594
(State or other jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
25825 Science Park Drive, Suite 400 Cleveland, Ohio 44122-7392
(Address of principal executive offices) (Zip Code)

(216) 910-3400

(Registrant’s telephone number, including area code)

________________________________________________________________________

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 (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ¨  No  þ

(Note: Registrant is a voluntary filer of reports required to be filed by certain companies under Sections 13 and 15(d) of the Securities Exchange Act of 1934 and has filed all reports that would have been required during the preceding 12 months, had it been subject to such filing requirements.)

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes þ    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	þ	(Do not check if smaller reporting company)	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  þ

There were 31,998,284 shares of the registrant’s common stock, par value $0.01 per share, outstanding as of September 30, 2017.

1

ALERIS CORPORATION

QUARTERLY REPORT ON FORM 10-Q

September 30, 2017

TABLE OF CONTENTS

		Page No.
PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements:
	Consolidated Balance Sheet (Unaudited) as of September 30, 2017 and December 31, 2016	3
	Consolidated Statements of Comprehensive Loss (Unaudited) for the Three and Nine Months Ended September 30, 2017 and 2016	4
	Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended September 30, 2017 and 2016	5
	Notes to Consolidated Financial Statements (Unaudited)	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	46
Item 4.	Controls and Procedures	48
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	49
Item 1A.	Risk Factors	49
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	49
Item 3.	Defaults Upon Senior Securities	49
Item 4.	Mine Safety Disclosures	49
Item 5.	Other Information	49
Item 6.	Exhibits	49
Signatures		50

2

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

ALERIS CORPORATION

CONSOLIDATED BALANCE SHEET

(UNAUDITED)

(in millions, except share and per share data)

ASSETS	September 30, 2017			December 31, 2016
Current Assets
Cash and cash equivalents	$	71.9		$	55.6
Accounts receivable (net of allowances of $6.6 and $7.6 at September 30, 2017 and December 31, 2016, respectively)	297.7			218.7
Inventories	620.7			538.9
Prepaid expenses and other current assets	39.5			33.4
Total Current Assets	1,029.8			846.6
Property, plant and equipment, net	1,467.0			1,346.0
Intangible assets, net	35.2			36.8
Deferred income taxes	91.9			88.3
Other long-term assets	69.9			72.2
Total Assets	$	2,693.8		$	2,389.9
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	297.1		$	246.6
Accrued liabilities	215.4			201.4
Current portion of long-term debt	15.6			27.7
Total Current Liabilities	528.1			475.7
Long-term debt	1,694.4			1,438.5
Deferred income taxes	17.1			2.8
Accrued pension benefits	171.6			158.4
Accrued postretirement benefits	32.9			34.2
Other long-term liabilities	66.5			63.7
Total Long-Term Liabilities	1,982.5			1,697.6
Stockholders’ Equity
Common stock; par value $.01; 45,000,000 shares authorized and 31,998,284 and 31,904,250 shares issued at September 30, 2017 and December 31, 2016, respectively	0.3			0.3
Preferred stock; par value $.01; 1,000,000 shares authorized; none issued	—			—
Additional paid-in capital	428.2			428.0
Retained (deficit) earnings	(96.1		)	11.8
Accumulated other comprehensive loss	(149.2		)	(223.5		)
Total Equity	183.2			216.6
Total Liabilities and Equity	$	2,693.8		$	2,389.9

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

3

ALERIS CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(UNAUDITED)

(in millions)

	For the three months ended						For the nine months ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
Revenues	$	712.8		$	683.4		$	2,163.2		$	2,050.9
Cost of sales	675.2			610.6			1,954.9			1,826.0
Gross profit	37.6			72.8			208.3			224.9
Selling, general and administrative expenses	49.5			58.8			153.6			159.3
Restructuring charges	0.9			0.3			2.1			1.8
Losses on derivative financial instruments	14.9			0.2			30.6			2.8
Other operating expense, net	2.0			1.0			4.0			2.5
Operating (loss) income	(29.7		)	12.5			18.0			58.5
Interest expense, net	32.0			19.2			90.4			58.4
Other expense (income), net	2.4			(2.0		)	5.8			6.0
Loss before income taxes	(64.1		)	(4.7		)	(78.2		)	(5.9		)
Provision for income taxes	1.6			12.3			25.1			30.5
Loss from continuing operations	(65.7		)	(17.0		)	(103.3		)	(36.4		)
Loss from discontinued operations, net of tax	—			(4.6		)	—			(4.6		)
Net loss	$	(65.7	)	$	(21.6	)	$	(103.3	)	$	(41.0	)
Comprehensive loss	$	(40.9	)	$	(15.8	)	$	(29.0	)	$	(29.0	)

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

4

ALERIS CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(in millions)

	For the nine months ended
	September 30, 2017			September 30, 2016
Operating activities
Net loss	$	(103.3	)	$	(41.0	)
Adjustments to reconcile net loss to net cash (used) provided by operating activities:
Depreciation and amortization	82.0			78.8
Provision for deferred income taxes	13.9			15.3
Stock-based compensation expense	1.5			5.2
Unrealized losses (gains) on derivative financial instruments	1.5			(23.6		)
Amortization of debt issuance costs	2.1			4.3
Loss on extinguishment of debt	—			12.6
Net loss on sale of discontinued operations	—			4.6
Other	9.1			4.4
Changes in operating assets and liabilities:
Change in accounts receivable	(60.2		)	(60.2		)
Change in inventories	(53.0		)	(9.5		)
Change in other assets	6.2			0.7
Change in accounts payable	35.8			47.2
Change in accrued liabilities	31.9			7.8
Net cash (used) provided by operating activities	(32.5		)	46.6
Investing activities
Payments for property, plant and equipment	(174.9		)	(295.7		)
Other	(2.5		)	(1.2		)
Net cash used by investing activities	(177.4		)	(296.9		)
Financing activities
Proceeds from revolving credit facilities	401.7			200.1
Payments on revolving credit facilities	(429.2		)	(61.7		)
Proceeds from senior secured notes, inclusive of premiums and discounts	263.8			540.4
Payments on senior notes, including premiums	—			(443.8		)
Net payments on other long-term debt	(5.5		)	(6.7		)
Debt issuance costs	(2.5		)	(3.5		)
Other	(1.5		)	(0.7		)
Net cash provided by financing activities	226.8			224.1
Effect of exchange rate differences on cash, cash equivalents and restricted cash	3.0			0.5
Net increase (decrease) in cash, cash equivalents and restricted cash	19.9			(25.7		)
Cash, cash equivalents and restricted cash at beginning of period	55.6			62.2
Cash, cash equivalents and restricted cash at end of period	$	75.5		$	36.5
Cash and cash equivalents	$	71.9		$	36.5
Restricted cash (included in “Other current assets”)	3.6			—
Cash, cash equivalents and restricted cash	$	75.5		$	36.5

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

5

ALERIS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in millions)

1. BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS

Basis of Presentation

The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The operating results for interim periods contained herein are not necessarily indicative of the results that may be expected for any other interim period or for the full year. The accompanying Consolidated Financial Statements include the accounts of Aleris Corporation and all of its subsidiaries (collectively, except where the context otherwise requires, referred to as “Aleris,” “we,” “us,” “our,” “Company” or similar terms). Aleris Corporation is a holding company and currently conducts its business and operations through its direct wholly owned subsidiary, Aleris International, Inc. and its consolidated subsidiaries. Aleris International, Inc. is referred to herein as “Aleris International.”

Recent Accounting Pronouncements

In March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” (“ASU 2017-07”). This guidance requires the presentation of all components of net periodic benefit cost other than service costs outside of operating income. Only the service cost component will be included in operating income and eligible for capitalization in assets. The guidance is effective for the Company for fiscal years beginning after December 15, 2017, and will be applied retrospectively. We estimate that upon adoption, approximately $3.2 and $2.8 of pension and postretirement benefit expense will be reclassified from operating income to non-operating income for the years ended December 31, 2017 and 2016, respectively.    

In November 2016, the FASB issued ASU No. 2016-18, “Restricted Cash” (“ASU 2016-18”). This guidance requires companies to show the changes in the total cash, cash equivalents and restricted cash in the statement of cash flows. We adopted ASU 2016-18 in the first quarter of 2017. The adoption of this guidance resulted in the updated presentation of restricted cash in our current period Consolidated Statements of Cash Flows. As there was no restricted cash in the prior year, the adoption of this guidance had no effect on the prior year presentation of cash flows.

In October 2016, the FASB issued ASU No. 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory” (“ASU 2016-16”). This guidance requires companies to account for the income tax effects of intercompany transfers of assets other than inventory when the transfer occurs. The income tax effects of intercompany inventory transactions will continue to be deferred. We early adopted ASU 2016-16 in the first quarter of 2017. The impact of adopting this guidance on the Company’s Consolidated Financial Statements resulted in credits to prepaid expenses and other current assets and other comprehensive income of approximately $8.2 and $0.1, respectively, and debits to deferred income tax assets and retained earnings of approximately $3.6 and $4.7, respectively, as of the date of adoption.

In March 2016, the FASB issued ASU No. 2016-09, “Compensation-Stock Compensation-Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). This guidance makes several modifications to the accounting for stock-based compensation, including forfeitures, employer tax withholding on stock-based compensation and the financial statement presentation of excess tax benefits or deficiencies. ASU 2016-09 also clarifies the statement of cash flows presentation for certain components of stock-based awards. We adopted ASU 2016-09 in the first quarter of 2017. The tax effects associated with stock-based compensation are now recorded through the income statement. Additionally, forfeitures will now be recognized as they occur. Prior periods have not been adjusted.

In February 2016, the FASB issued ASU No. 2016-02, “Leases” (“ASU 2016-02”). This guidance requires lessees to put most leases on their balance sheets but recognize expense on the income statement in a manner similar to current guidance. The guidance is effective for the Company for fiscal years beginning after December 15, 2018, and a modified retrospective approach is required for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. We are currently evaluating the impact the application of ASU 2016-02 will have on the Company’s Consolidated Financial Statements. We expect that the adoption will result in an increase to our long-term assets and long-term

6

ALERIS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in millions)

liabilities as a result of substantially all operating leases existing as of the adoption date being capitalized along with the associated obligations.

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which was the result of a joint project by the FASB and International Accounting Standards Board to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards. Subsequent accounting standard updates have been issued which amend and/or clarify the application of ASU 2014-09. The issuance of a comprehensive and converged standard on revenue recognition is expected to enable financial statement users to better understand and consistently analyze an entity’s revenue across industries, transactions and geographies. The standard will require additional disclosures to help financial statement users better understand the nature, amount, timing, and potential uncertainty of the revenue that is recognized. ASU 2014-09 will be effective for the Company on January 1, 2018, and will require either retrospective application to each prior reporting period presented or retrospective application with the cumulative effect of initially applying the standard recognized at the date of adoption (the “modified retrospective approach”). The Company has developed a project plan to guide the implementation of the standard. The project plan includes analyzing the Company’s customer contracts, identifying revenue streams, drafting an updated accounting policy and evaluating new disclosure requirements. In addition, the Company is identifying and implementing appropriate changes to its business processes and controls to support recognition and disclosure under the new guidance. In evaluating the impact of the standard, management has concluded that control may have transferred on some of the inventory held on consignment at customer locations or in third party warehouses. Subsequent to adoption of the standard, revenue may be recognized when such inventory is delivered into consignment. We held $29.3 of inventory in consignment at September 30, 2017, and revenue on a portion of such inventory may be included in the transition adjustment recorded upon adoption of the standard. We continue to evaluate other impacts this guidance will have on the Company’s Consolidated Financial Statements. We expect to adopt this standard using the modified retrospective approach and anticipate that the adoption will result in an increase to the revenue disclosures in our financial statements.

2. INVENTORIES

The components of our “Inventories” as of September 30, 2017 and December 31, 2016 are as follows:

	September 30, 2017		December 31, 2016
Raw materials	$	189.1	$	181.7
Work in process	232.8		195.4
Finished goods	167.3		134.0
Supplies	31.5		27.8
Total inventories	$	620.7	$	538.9

3. LONG-TERM DEBT

Our debt as of September 30, 2017 and December 31, 2016 is summarized as follows:

	September 30, 2017		December 31, 2016
2015 ABL Facility	$	245.0	$	255.3
7 7/8% Senior Notes due 2020, net of discount and deferred issuance costs of $3.6 and $4.5 at September 30, 2017 and December 31, 2016, respectively	436.4		435.5
9 1/2% Senior Secured Notes due 2021, inclusive of net premiums and deferred issuance costs of $0.8 at September 30, 2017 and net of discount and deferred issuance costs of $11.6 at December 31, 2016	800.8		538.4
Exchangeable Notes, net of discount of $0.3 and $0.4 at September 30, 2017 and December 31, 2016, respectively	44.5		44.4
Zhenjiang Term Loans, net of discount of $0.5 at September 30, 2017 and December 31, 2016	166.8		164.5
Zhenjiang Revolver, net of discount of $0.1 at September 30, 2017 and December 31, 2016	6.6		22.0
Other	9.9		6.1
Total debt	1,710.0		1,466.2
Less: Current portion of long-term debt	15.6		27.7
Total long-term debt	$	1,694.4	$	1,438.5

9 ½% Senior Secured Notes due 2021

On February 14, 2017, Aleris International issued an additional $250.0 aggregate principal amount of its 9½% Senior Secured Notes due 2021. The Company initially issued $550.0 aggregate principal amount of 9½% Senior Secured Notes due 2021 on April 4, 2016, which remain outstanding. The additional notes were issued under the indenture governing the previously issued 9½% Senior Secured Notes. The Company received net proceeds of approximately $263.8, after deducting the initial purchasers’ discount, from the issuance of the additional notes. These proceeds are being used for general corporate purposes, which may include working capital and/or capital expenditures.

7

ALERIS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in millions)

4. COMMITMENTS AND CONTINGENCIES

Environmental Proceedings

Our operations are subject to environmental laws and regulations governing air emissions, wastewater discharges, the handling, storage, disposal and remediation of hazardous substances and wastes and employee health and safety. These laws can impose joint and several liability for releases or threatened releases of hazardous substances upon statutorily defined parties, including us, regardless of fault or the lawfulness of the original activity or disposal. Given the changing nature of environmental legal requirements, we may be required, from time to time, to take environmental control measures at some of our facilities to meet future requirements.

We have been named as a potentially responsible party in certain proceedings initiated pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act and similar state statutes and may be named a potentially responsible party in other similar proceedings in the future. It is not anticipated that the costs incurred in connection with the presently pending proceedings will, individually or in the aggregate, have a material adverse effect on our financial position, results of operations or cash flows.

We are performing operations and maintenance at two Superfund sites for matters arising out of past waste disposal activity associated with closed facilities. We are also under orders to perform environmental remediation by agencies in four states and one non-U.S. country at seven sites.

Our reserves for environmental remediation liabilities totaled $23.5 and $23.8 at September 30, 2017 and December 31, 2016, respectively, and have been classified as “Other long-term liabilities” and “Accrued liabilities” in the Consolidated Balance Sheet. Of the environmental liabilities recorded at September 30, 2017 and December 31, 2016, $11.4 and $11.5, respectively, are subject to indemnification by third parties.

In addition to environmental liabilities, we have recorded asset retirement obligations associated with legal requirements related to the retirement of certain assets. Our total asset retirement obligations were $5.6 and $4.7 at September 30, 2017 and December 31, 2016, respectively. The amounts represent the most probable costs of remedial actions. We estimate the costs related to currently identified remedial actions will be paid out primarily over the next 10 years.

Legal Proceedings

We are party to routine litigation and proceedings as part of the ordinary course of business and do not believe that the outcome of any existing proceedings would have a material adverse effect on our financial position, results of operations or cash flows. We have established accruals for those loss contingencies, including litigation and environmental contingencies, for which it has been determined that a loss is probable; none of such loss contingencies is material. For those loss contingencies, including litigation and environmental contingencies, which have been determined to be reasonably possible, an estimate of the possible loss or range of loss cannot be determined because the claims, amount claimed, facts or legal status are not sufficiently developed or advanced in order to make such a determination. While we cannot estimate the loss or range of loss at this time, we do not believe that the outcome of any of these existing proceedings would be material to our financial position, results of operations or cash flows.

5. STOCKHOLDERS’ EQUITY

The following table summarizes the activity within stockholders’ equity for the nine months endedSeptember 30, 2017:

	Total Equity
Total equity at January 1, 2017	$	216.6
Net loss	(103.3		)
Other comprehensive income	74.3
Stock-based compensation activity	0.3
Adoption of new accounting standard	(4.7		)
Total equity at September 30, 2017	$	183.2

8

ALERIS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in millions)

The following table shows changes in the number of our issued and outstanding shares of common stock:

	Issued and outstanding shares of common stock
Balance at January 1, 2017	31,904,250
Issuance associated with vested restricted stock units	94,034
Balance at September 30, 2017	31,998,284

6. ACCUMULATED OTHER COMPREHENSIVE LOSS

The following table summarizes the activity within accumulated other comprehensive loss for the nine months endedSeptember 30, 2017:

	Currency translation			Pension and other postretirement			Total
Balance at January 1, 2017	$	(150.9	)	$	(72.6	)	$	(223.5	)
Current period currency translation adjustments	76.0			(4.0		)	72.0
Amortization of net actuarial losses and prior service costs, net of tax	—			2.3			2.3
Balance at September 30, 2017	$	(74.9	)	$	(74.3	)	$	(149.2	)

A summary of reclassifications out of accumulated other comprehensive loss for the nine months endedSeptember 30, 2017 is provided below:

Description of reclassifications out of accumulated other comprehensive loss	Amount reclassified
Amortization of net actuarial losses and prior service costs	$	(3.4	)	(a)
Deferred tax benefit on pension and other postretirement liability adjustments	1.1
Losses reclassified into earnings, net of tax	$	(2.3	)

(a) This component of accumulated other comprehensive loss is included in the computation of net periodic benefit expense and net postretirement benefit expense (see Note 10, “Employee Benefit Plans,” for additional detail).

7. SEGMENT INFORMATION

We report three operating segments based on the organizational structure that is used by the chief operating decision maker to evaluate performance, make decisions on resource allocation and for which discrete financial information is available. The Company’s operating segments are North America, Europe and Asia Pacific.

Measurement of Segment Income or Loss and Segment Assets

The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies in the Consolidated Financial Statements for the year ended December 31, 2016. Our measure of profitability for our operating segments is referred to as segment income and loss. Segment income and loss includes gross profits, segment specific realized gains and losses on derivative financial instruments, segment specific other income and expense, segment specific selling, general and administrative (“SG&A”) expense and an allocation of certain functional SG&A expenses. Segment income and loss excludes provisions for and benefits from income taxes, restructuring items, interest, depreciation and amortization, unrealized and certain realized gains and losses on derivative financial instruments, corporate general and administrative costs, start-up costs, gains and losses on asset sales, currency exchange gains and losses on debt and certain other gains and losses. Intra-entity sales and transfers are recorded at market value. Consolidated cash, restricted cash, net capitalized debt costs, deferred tax assets and assets related to our headquarters offices are not allocated to the segments.

9

ALERIS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in millions)

Reportable Segment Information

The following table shows our revenues and segment income for the periods presented in our Consolidated Statements of Comprehensive Loss:

Three months ended September 30, 2017	North America		Europe		Asia Pacific		Intra-entity Revenues			Total
Revenues to external customers	$	364.4	$	318.4	$	30.0				$	712.8
Intra-entity revenues	—		5.9		2.2		$	(8.1	)	—
Total revenues	$	364.4	$	324.3	$	32.2	$	(8.1	)	$	712.8
Segment income	$	19.9	$	28.4	$	4.3				$	52.6
Three months ended September 30, 2016	North America		Europe		Asia Pacific		Intra-entity Revenues			Total
Revenues to external customers	$	358.1	$	297.6	$	27.7				$	683.4
Intra-entity revenues	0.5		7.2		1.5		$	(9.2	)	—
Total revenues	$	358.6	$	304.8	$	29.2	$	(9.2	)	$	683.4
Segment income	$	18.1	$	40.7	$	2.8				$	61.6
Nine months ended September 30, 2017	North America		Europe		Asia Pacific		Intra-entity Revenues			Total
Revenues to external customers	$	1,129.0	$	951.9	$	82.3				$	2,163.2
Intra-entity revenues	—		17.3		4.8		$	(22.1	)	—
Total revenues	$	1,129.0	$	969.2	$	87.1	$	(22.1	)	$	2,163.2
Segment income	$	75.2	$	101.7	$	10.0				$	186.9
Nine months ended September 30, 2016	North America		Europe		Asia Pacific		Intra-entity Revenues			Total
Revenues to external customers	$	1,053.2	$	927.0	$	70.7				$	2,050.9
Intra-entity revenues	1.1		13.9		5.0		$	(20.0	)	—
Total revenues	$	1,054.3	$	940.9	$	75.7	$	(20.0	)	$	2,050.9
Segment income	$	69.8	$	113.8	$	6.2				$	189.8

The following table reconciles total segment income to “Loss before income taxes” as reported in our Consolidated Statements of Comprehensive Loss:

	For the three months ended						For the nine months ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
Total segment income	$	52.6		$	61.6		$	186.9		$	189.8
Unallocated amounts:
Depreciation and amortization	(30.5		)	(26.2		)	(82.0		)	(78.8		)
Other corporate general and administrative expenses	(8.9		)	(14.8		)	(32.1		)	(39.5		)
Restructuring charges	(0.9		)	(0.3		)	(2.1		)	(1.8		)
Interest expense, net	(32.0		)	(19.2		)	(90.4		)	(58.4		)
Unallocated (losses) gains on derivative financial instruments	(18.4		)	8.8			(1.0		)	23.7
Unallocated currency exchange losses	(2.0		)	(0.5		)	(3.7		)	(1.2		)
Start-up costs	(22.8		)	(14.1		)	(52.6		)	(30.4		)
Loss on extinguishment of debt	—			—			—			(12.6		)
Other (expense) income, net	(1.2		)	—			(1.2		)	3.3
Loss before income taxes	$	(64.1	)	$	(4.7	)	$	(78.2	)	$	(5.9	)

10

ALERIS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in millions)

The following table shows our reportable segment assets as of September 30, 2017 and December 31, 2016:

	September 30, 2017		December 31, 2016
Assets
North America	$	1,327.7	$	1,180.2
Europe	772.5		645.3
Asia Pacific	363.5		358.6
Unallocated assets	230.1		205.8
Total consolidated assets	$	2,693.8	$	2,389.9

8. STOCK-BASED COMPENSATION

On June 1, 2010, the Board of Directors of Aleris Corporation approved the Aleris Corporation 2010 Equity Incentive Plan, which has been amended from time to time (the “2010 Equity Plan”). Stock options, restricted stock units and restricted shares have been granted under the 2010 Equity Plan to certain members of management of the Company and directors. All stock options granted have a life not to exceed ten years and generally vest over a period not to exceed four years. Shares of common stock are issued upon stock option exercises from available shares. The restricted stock units also vest over a period not to exceed four years. A portion of the stock options, as well as a portion of the restricted stock units, may vest upon a change in control event should the event occur prior to full vesting of these awards, depending on the amount of vesting that has already occurred at the time of the event in comparison to the change in our largest stockholders’ overall level of beneficial ownership that results from the event.

During the nine months endedSeptember 30, 2017, no stock options or restricted stock units were granted and 33,157 stock options were forfeited. We recorded stock-based compensation expense of $0.4 and $1.5 for the three and nine months endedSeptember 30, 2017, respectively, and $1.8 and $5.2 for the three and nine months endedSeptember 30, 2016, respectively.

9. INCOME TAXES

The effective tax rates for the three and nine months endedSeptember 30, 2017 and 2016 differed from the federal statutory rate applied to income and losses before income taxes primarily as a result of the mix of income, losses and tax rates between tax jurisdictions and valuation allowances.

We have valuation allowances recorded to reduce certain deferred tax assets to amounts that are more likely than not to be realized. The valuation allowances relate to the potential inability to realize our deferred tax assets associated with amortization and net operating loss carryforwards in the U.S. and net operating loss carryforwards in non-U.S. jurisdictions. We intend to maintain our valuation allowances until sufficient positive evidence exists (such as cumulative positive earnings and estimated future taxable income) to support their reversal.

As of September 30, 2017, we had $2.7 of unrecognized tax benefits. The majority of the gross unrecognized tax benefits, if recognized, would affect the annual effective tax rate. We recognize interest and penalties related to uncertain tax positions within “Provision for income taxes” in the Consolidated Statements of Comprehensive Loss. As of September 30, 2017, we had approximately $0.8 of accrued interest related to uncertain tax positions.

The 2009 through 2016 tax years remain open to examination. During the fourth quarter of 2013, a non-U.S. taxing jurisdiction commenced an examination of our tax returns for the tax years ended December 31, 2012, 2011, 2010 and 2009 that is anticipated to be completed within six months of the reporting date.

11

ALERIS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in millions)

10. EMPLOYEE BENEFIT PLANS

Defined Benefit Pension Plans

The components of the net periodic benefit expense are as follows:

	U.S. pension benefits
	For the three months ended						For the nine months ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
Service cost	$	1.0		$	0.9		$	2.9		$	2.7
Interest cost	1.4			1.5			4.4			4.5
Amortization of net actuarial losses	0.5			0.5			1.4			1.4
Amortization of prior service cost	0.1			0.1			0.2			0.2
Expected return on plan assets	(2.6		)	(2.5		)	(7.7		)	(7.5		)
Net periodic benefit expense	$	0.4		$	0.5		$	1.2		$	1.3

	Non U.S. pension benefits
	For the three months ended				For the nine months ended
	September 30, 2017		September 30, 2016		September 30, 2017		September 30, 2016
Service cost	$	0.9	$	0.5	$	2.7	$	1.5
Interest cost	0.4		0.5		1.3		1.5
Amortization of net actuarial losses	0.7		0.4		2.1		1.2
Net periodic benefit expense	$	2.0	$	1.4	$	6.1	$	4.2

Other Postretirement Benefit Plans

The components of net postretirement benefit expense are as follows:

	For the three months ended					For the nine months ended
	September 30, 2017			September 30, 2016		September 30, 2017			September 30, 2016
Service cost	$	—		$	—	$	0.1		$	0.1
Interest cost	0.3			0.3		0.9			1.0
Amortization of net actuarial gains	(0.1		)	—		(0.4		)	(0.1		)
Net postretirement benefit expense	$	0.2		$	0.3	$	0.6		$	1.0

11. DERIVATIVE AND OTHER FINANCIAL INSTRUMENTS

We use forward contracts and options, as well as contractual price escalators, to reduce the risks associated with our metal, natural gas and other supply requirements, as well as fuel costs and certain currency exposures. Generally, we enter into master netting arrangements with our counterparties and offset net derivative positions with the same counterparties against amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral under those arrangements in our Consolidated Balance Sheet. For classification purposes, we record the net fair value of each type of derivative position that is expected to settle in less than one year with each counterparty as a net current asset or liability and each type of long-term position as a net long-term asset or liability. There was no cash collateral posted at September 30, 2017 or December 31, 2016. The amounts shown in the table below represent the gross amounts of recognized assets and liabilities, the amounts offset in the Consolidated Balance Sheet and the net amounts of assets and liabilities presented therein. As of September 30, 2017 and December 31, 2016, there were no amounts subject to an enforceable master netting arrangement or similar agreement that have not been offset in the Consolidated Balance Sheet.

12

ALERIS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in millions)

	Fair Value of Derivatives as of
	September 30, 2017						December 31, 2016
Derivatives by Type	Asset			Liability			Asset			Liability
Metal	$	15.3		$	(21.6	)	$	8.9		$	(12.3	)
Energy	0.2			(0.1		)	0.7			—
Currency	1.2			(0.5		)	—			(2.3		)
Total	16.7			(22.2		)	9.6			(14.6		)
Effect of counterparty netting	(11.7		)	11.7			(6.6		)	6.6
Net derivatives as classified in the balance sheet	$	5.0		$	(10.5	)	$	3.0		$	(8.0	)

The fair value of our derivative financial instruments at September 30, 2017 and December 31, 2016 are recorded in the Consolidated Balance Sheet as follows:

Asset Derivatives	Balance Sheet Location	September 30, 2017		December 31, 2016
Metal	Prepaid expenses and other current assets	$	0.1	$	2.3
	Other long-term assets	3.8		—
Energy	Prepaid expenses and other current assets	0.2		0.7
Currency	Prepaid expenses and other current assets	0.9		—
Total		$	5.0	$	3.0
Liability Derivatives	Balance Sheet Location	September 30, 2017		December 31, 2016
Metal	Accrued liabilities	$	10.3	$	5.1
	Other long-term liabilities	—		0.6
Energy	Accrued liabilities	0.1		—
Currency	Accrued liabilities	—		1.8
	Other long-term liabilities	0.1		0.5
Total		$	10.5	$	8.0

Both realized and unrealized gains and losses on derivative financial instruments are included within “Losses on derivative financial instruments” in the Consolidated Statements of Comprehensive Loss. Realized (gains) and losses on derivative financial instruments totaled the following:

	For the three months ended						For the nine months ended
	September 30, 2017			September 30, 2016			September 30, 2017		September 30, 2016
Metal	$	(3.6	)	$	9.1		$	28.2	$	25.4
Energy	0.3			(0.3		)	0.8		0.6
Currency	(0.6		)	0.2			—		0.4

Metal Hedging

The selling prices of the majority of the orders for our products are established at the time of order entry or, for certain customers, under long-term contracts. As the related raw materials used to produce these orders can be purchased several months or years after the selling prices are fixed, margins are subject to the risk of changes in the purchase price of the raw materials used for these fixed price sales. In order to manage this transactional exposure, future, swaps or forward purchase contracts are purchased at the time the selling prices are fixed. As metal is purchased to fill these fixed price sales orders, future, swaps or forward contracts are then sold. We also maintain a significant amount of inventory on-hand to meet anticipated and unpriced future sales. In order to preserve the value of this inventory, future or forward contracts are sold at the time inventory is purchased. As sales orders are priced, future or forward contracts are purchased. These derivatives generally settle within three months. We can also use call option contracts, which function in a manner similar to the natural gas call option contracts discussed below, and put option contracts for managing metal price exposures. Option contracts require the payment of a

13

ALERIS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in millions)

premium which is recorded as a realized loss upon settlement or expiration of the option contract. Upon settlement of a put option contract, we receive cash and recognize a related gain if the closing price is less than the strike price of the put option. If the put option strike price is less than the closing price, no amount is paid and the option expires. As of September 30, 2017 we had 0.1 million metric tons and 0.2 million metric tons of metal buy and metal sell derivative contracts, respectively. As of December 31, 2016, we had 0.1 million metric tons of metal buy derivatives contracts and 0.2 million metric tons of metal sell derivative contracts.

Energy Hedging

To manage our price exposure for natural gas purchases, we fix the future price of a portion of our natural gas requirements by entering into financial hedge contracts. Under these contracts, payments are made or received based on the differential between the monthly closing price on the New York Mercantile Exchange (“NYMEX”) and the contractual hedge price. We can also use a combination of call option contracts and put option contracts for managing the exposure to increasing natural gas prices while maintaining our ability to benefit from declining prices. Upon settlement of call option contracts, we receive cash and recognize a related gain if the NYMEX closing price exceeds the strike price of the call option. If the call option strike price exceeds the NYMEX closing price, no amount is received and the option expires unexercised. Upon settlement of a put option contract, we pay cash and recognize a related loss if the NYMEX closing price is lower than the strike price of the put option. If the put option strike price is less than the NYMEX closing price, no amount is paid and the option expires unexercised. Option contracts require the payment of a premium which is recorded as a realized loss upon settlement or expiration of the option contract. Natural gas cost can also be managed through the use of cost escalators included in some of our long-term supply contracts with customers, which limits exposure to natural gas price risk. As of September 30, 2017 and December 31, 2016, we had 0.5 trillion and 2.1 trillion of British thermal unit forward buy contracts, respectively.

We use independent freight carriers to deliver our products. As part of the total freight charge, these carriers include a per mile diesel surcharge based on the Department of Energy, Energy Information Administration’s (“DOE”) Weekly Retail Automotive Diesel National Average Price. From time to time we may enter into over-the-counter DOE diesel fuel swaps with financial counterparties to mitigate the impact of the volatility of diesel fuel prices on our freight costs. Under these swap agreements, we pay a fixed price per gallon of diesel fuel determined at the time the agreements were executed and receive a floating rate payment that is determined on a monthly basis based on the average price of the DOE Diesel Fuel Index during the applicable month. The swaps are designed to offset increases or decreases in fuel surcharges that we pay to our carriers. All swaps are financially settled. There is no possibility of physical settlement. As of September 30, 2017 we had 1.0 million gallons of diesel swap contracts. We had no diesel swap contracts as of December 31, 2016.

Currency Hedging

Our aerospace and heat exchanger businesses expose the U.S. dollar operating results of our European operations to fluctuations in the euro as the sales contracts are generally in U.S. dollars while the costs of production are in euros. In order to mitigate the risk that fluctuations in the euro may have on our business, we have entered into forward currency contracts. As of September 30, 2017 and December 31, 2016, we had euro forward contracts covering a notional amount of €54.8 million and €34.6 million, respectively.

Credit Risk

We are exposed to losses in the event of non-performance by the counterparties to the derivative financial instruments discussed above; however, we do not anticipate any non-performance by the counterparties. The counterparties are evaluated for creditworthiness and risk assessment prior to initiating trading activities with the brokers and periodically throughout each year while actively trading.

Recurring Fair Value Measurements

Derivative contracts are recorded at fair value using quoted market prices and significant other observable inputs. Fair value is defined by FASB Accounting Standards Codification 820, “Fair Value Measurements and Disclosures,” as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for

14

ALERIS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in millions)

identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3—Inputs that are both significant to the fair value measurement and unobservable.

We endeavor to use the best available information in measuring fair value. Where appropriate, valuations are adjusted for various factors such as liquidity, bid/offer spreads, and credit considerations. Such adjustments are generally based on available market evidence and unobservable inputs. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. As of September 30, 2017 and December 31, 2016, all of our derivative assets and liabilities represent Level 2 fair value measurements.

Other Financial Instruments

The carrying amount, fair values and level in the fair value hierarchy of our other financial instruments at September 30, 2017 and December 31, 2016 are as follows:

	September 30, 2017					December 31, 2016
	Carrying Amount		Fair Value		Level in the Fair Value Hierarchy	Carrying Amount		Fair Value		Level in the Fair Value Hierarchy
Cash and cash equivalents	$	71.9	$	71.9	Level 1	$	55.6	$	55.6	Level 1
Restricted cash	3.6		3.6		Level 1	—		—		N/A
Receivables held in escrow	17.0		18.9		Level 2	17.0		20.6		Level 2
2015 ABL Facility	245.0		245.0		Level 2	255.3		255.3		Level 2
7 7/8% Senior Notes	436.4		439.8		Level 1	435.5		441.7		Level 1
9 ½ % Senior Secured Notes	800.8		853.7		Level 1	538.4		594.0		Level 1
Exchangeable Notes	44.5		81.4		Level 3	44.4		81.4		Level 3
Zhenjiang Term Loans	166.8		167.3		Level 3	164.5		165.0		Level 3
Zhenjiang Revolver	6.6		6.7		Level 3	22.0		22.1		Level 3

The receivables held in escrow include shares of Real Industry, Inc.’s Series B non-participating preferred stock issued to the Company in connection with the 2015 sale of our former North American and European recycling and specification alloys businesses and which have been held in escrow to secure our indemnification obligations under the sale agreement. The fair value was estimated using a lattice model based on the expected time to maturity, cash flows of the preferred stock and an estimated yield using available market data. The principal amount of the 2015 ABL Facility approximates fair value because the interest rate paid is variable and there have been no significant changes in the credit risk of Aleris International subsequent to the borrowings. The fair value of Aleris International’s exchangeable notes was estimated using a binomial lattice pricing model based on the fair value of our common stock, a risk-free interest rate of 1.6% as of September 30, 2017 and December 31, 2016, and expected equity volatility of 43% as of September 30, 2017 and 45% as of December 31, 2016. Expected equity volatility was determined based on historical stock prices and implied and stated volatilities of our peer companies. The fair values of the 7⁷/8% Senior Notes due 2020 (the “7⁷/8% Senior Notes”) and 9 ½% Senior Secured Notes were estimated using market quotations. The principal amount of the Zhenjiang Term Loans and Zhenjiang Revolver approximates fair value because the interest rate paid is variable, is set for periods of six months or less and there have been no significant changes in the credit risk of Aleris Zhenjiang subsequent to the inception of the Zhenjiang Term Loans and Zhenjiang Revolver.

12. POTENTIAL ACQUISITION OF ALERIS CORPORATION

On August 29, 2016, we entered into a definitive agreement to be acquired by Zhongwang USA LLC (“Zhongwang USA”) (the “Merger”). Under the terms of the Merger, Zhongwang USA has agreed to pay approximately $1,110.0 in cash, subject to adjustment, for the equity of Aleris Corporation, and to assume certain of the Company’s outstanding indebtedness. The Merger was unanimously approved by the Board of Directors of Aleris Corporation and is subject to customary regulatory approvals and closing conditions. The Merger is not subject to a financing condition. There can be no assurance that the Merger will be consummated at all. For additional information, see “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Basis of Presentation” in this report.

13. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

Aleris Corporation, the direct parent of Aleris International, and certain of its subsidiaries (collectively, the “Guarantor Subsidiaries”) are guarantors of the indebtedness under the 7 ⁷/8% Senior Notes. Aleris Corporation and each of the Guarantor Subsidiaries have fully and unconditionally guaranteed (subject, in the case of the Guarantor Subsidiaries, to customary release provisions as described below), on a joint and several basis, to pay principal and interest related to the 7 ⁷/8% Senior Notes and Aleris International and each of the Guarantor Subsidiaries are directly or indirectly 100% owned subsidiaries of Aleris Corporation. For purposes of complying with the reporting requirements of Aleris International and the Guarantor Subsidiaries, presented below are condensed consolidating financial statements of Aleris Corporation, Aleris International, the Guarantor Subsidiaries, and those other subsidiaries of Aleris Corporation that are not guaranteeing the indebtedness under the 7 ⁷/8% Senior Notes (the “Non-Guarantor Subsidiaries”). Aleris Corporation and the Guarantor Subsidiaries are also guarantors under the 9 ½% Senior Secured Notes. The condensed consolidating balance sheets are presented as of September 30, 2017 and December 31, 2016. The condensed consolidating statements of comprehensive income (loss) are presented for the three and nine months endedSeptember 30, 2017 and 2016. The condensed consolidating statements of cash flows are presented for the nine months endedSeptember 30, 2017 and 2016.

The guarantee of a Guarantor Subsidiary will be automatically and unconditionally released and discharged in the event of:

▪ any sale of the Guarantor Subsidiary or of all or substantially all of its assets and if applicable, the release or discharge from its guarantee of, and all pledges and security granted by it in connection with, the 2015 ABL Facility;

▪ a Guarantor Subsidiary being designated as an “unrestricted subsidiary” in accordance with the indentures governing the applicable Senior Notes;

▪ the release or discharge of a Guarantor Subsidiary from its guarantee under the 2015 ABL Facility or other indebtedness that resulted in the obligation of the Guarantor Subsidiary under the indentures governing the applicable Senior Notes; and

▪ the requirements for legal defeasance or covenant defeasance or discharge of the indentures governing the applicable Senior Notes having been satisfied.

Upon the completion of the sale of the recycling and specification alloys business on February 27, 2015, the guarantees of 7 ⁷/8% Senior Notes of the Guarantor Subsidiaries that were sold were automatically and unconditionally released.

15

ALERIS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in millions)

	As of September 30, 2017
	Aleris Corporation (Parent)		Aleris International, Inc.		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current Assets
Cash and cash equivalents	$	—	$	42.7	$	—		$	32.8	$	(3.6	)	$	71.9
Accounts receivable, net	—		—		111.8			185.9		—			297.7
Inventories	—		—		271.4			349.3		—			620.7
Prepaid expenses and other current assets	—		2.1		11.8			25.6		—			39.5
Intercompany receivables	—		666.0		227.4			32.9		(926.3		)	—
Total Current Assets	—		710.8		622.4			626.5		(929.9		)	1,029.8
Property, plant and equipment, net	—		—		908.6			558.4		—			1,467.0
Intangible assets, net	—		—		19.3			15.9		—			35.2
Deferred income taxes	—		—		—			91.9		—			91.9
Other long-term assets	—		11.5		6.2			52.2		—			69.9
Investments in subsidiaries	185.3		1,339.3		(10.5		)	—		(1,514.1		)	—
Total Assets	$	185.3	$	2,061.6	$	1,546.0		$	1,344.9	$	(2,444.0	)	$	2,693.8
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	—	$	4.2	$	144.4		$	152.1	$	(3.6	)	$	297.1
Accrued liabilities	—		64.2		77.4			73.8		—			215.4
Current portion of long-term debt	—		—		1.0			14.6		—			15.6
Intercompany payables	2.1		366.2		530.3			27.7		(926.3		)	—
Total Current Liabilities	2.1		434.6		753.1			268.2		(929.9		)	528.1
Long-term debt	—		1,441.7		1.3			251.4		—			1,694.4
Deferred income taxes	—		—		0.5			16.6		—			17.1
Accrued pension benefits	—		—		42.8			128.8		—			171.6
Accrued postretirement benefits	—		—		32.9			—		—			32.9
Other long-term liabilities	—		—		37.1			29.4		—			66.5
Total Long-Term Liabilities	—		1,441.7		114.6			426.2		—			1,982.5
Total equity	183.2		185.3		678.3			650.5		(1,514.1		)	183.2
Total Liabilities and Equity	$	185.3	$	2,061.6	$	1,546.0		$	1,344.9	$	(2,444.0	)	$	2,693.8

16

ALERIS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in millions)

	As of December 31, 2016
	Aleris Corporation (Parent)		Aleris International, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current Assets
Cash and cash equivalents	$	—	$	5.5	$	—	$	53.3	$	(3.2	)	$	55.6
Accounts receivable, net	—		—		81.0		137.7		—			218.7
Inventories	—		—		240.8		298.1		—			538.9
Prepaid expenses and other current assets	—		—		15.2		18.2		—			33.4
Intercompany receivables	—		897.9		296.5		164.2		(1,358.6		)	—
Total Current Assets	—		903.4		633.5		671.5		(1,361.8		)	846.6
Property, plant and equipment, net	—		—		819.1		526.9		—			1,346.0
Intangible assets, net	—		—		20.9		15.9		—			36.8
Deferred income taxes	—		—		—		88.3		—			88.3
Other long-term assets	—		10.8		6.1		55.3		—			72.2
Investments in subsidiaries	217.6		1,089.6		2.8		—		(1,310.0		)	—
Total Assets	$	217.6	$	2,003.8	$	1,482.4	$	1,357.9	$	(2,671.8	)	$	2,389.9
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	—	$	1.8	$	126.1	$	121.9	$	(3.2	)	$	246.6
Accrued liabilities	—		19.8		109.3		72.3		—			201.4
Current portion of long-term debt	—		—		0.5		27.2		—			27.7
Intercompany payables	1.0		616.2		719.6		21.8		(1,358.6		)	—
Total Current Liabilities	1.0		637.8		955.5		243.2		(1,361.8		)	475.7
Long-term debt	—		1,148.4		0.6		289.5		—			1,438.5
Deferred income taxes	—		—		0.2		2.6		—			2.8
Accrued pension benefits	—		—		44.1		114.3		—			158.4
Accrued postretirement benefits	—		—		34.2		—		—			34.2
Other long-term liabilities	—		—		36.5		27.2		—			63.7
Total Long-Term Liabilities	—		1,148.4		115.6		433.6		—			1,697.6
Total equity	216.6		217.6		411.3		681.1		(1,310.0		)	216.6
Total Liabilities and Equity	$	217.6	$	2,003.8	$	1,482.4	$	1,357.9	$	(2,671.8	)	$	2,389.9

17

ALERIS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in millions)

	For the three months ended September 30, 2017
	Aleris Corporation (Parent)			Aleris International, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	—		$	364.4		$	354.2		$	(5.8	)	$	712.8
Cost of sales	—			—			360.8			320.2			(5.8		)	675.2
Gross profit	—			—			3.6			34.0			—			37.6
Selling, general and administrative expenses	—			5.6			22.6			21.3			—			49.5
Restructuring charges	—			—			0.2			0.7						0.9
Losses on derivative financial instruments	—			—			13.7			1.2			—			14.9
Other operating expense, net	—			—			2.0			—			—			2.0
Operating (loss) income	—			(5.6		)	(34.9		)	10.8			—			(29.7		)
Interest expense, net	—			—			24.9			7.1			—			32.0
Other (income) expense, net	—			(1.2		)	(0.1		)	3.7			—			2.4
Equity in net loss of affiliates	65.7			61.2			0.3			—			(127.2		)	—
(Loss) income before income taxes	(65.7		)	(65.6		)	(60.0		)	—			127.2			(64.1		)
Provision for income taxes	—			0.1			0.1			1.4			—			1.6
Net loss	$	(65.7	)	$	(65.7	)	$	(60.1	)	$	(1.4	)	$	127.2		$	(65.7	)
Comprehensive (loss) income	$	(40.9	)	$	(40.9	)	$	(59.3	)	$	22.6		$	77.6		$	(40.9	)

	For the nine months ended September 30, 2017
	Aleris Corporation (Parent)			Aleris International, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Revenues	$	—		$	—		$	1,129.0		$	1,051.3	$	(17.1	)	$	2,163.2
Cost of sales	—			—			1,072.4			899.6		(17.1		)	1,954.9
Gross profit	—			—			56.6			151.7		—			208.3
Selling, general and administrative expenses	—			5.7			84.1			63.8		—			153.6
Restructuring charges	—			—			1.3			0.8					2.1
Losses on derivative financial instruments	—			—			30.5			0.1		—			30.6
Other operating expense, net	—			—			3.9			0.1		—			4.0
Operating (loss) income	—			(5.7		)	(63.2		)	86.9		—			18.0
Interest expense, net	—			—			70.2			20.2		—			90.4
Other (income) expense, net	—			(2.0		)	(2.2		)	10.0		—			5.8
Equity in net loss of affiliates	103.3			99.5			0.7			—		(203.5		)	—
(Loss) income before income taxes	(103.3		)	(103.2		)	(131.9		)	56.7		203.5			(78.2		)
Provision for income taxes	—			0.1			—			25.0		—			25.1
Net (loss) income	$	(103.3	)	$	(103.3	)	$	(131.9	)	$	31.7	$	203.5		$	(103.3	)
Comprehensive (loss) income	$	(29.0	)	$	(29.0	)	$	(129.5	)	$	103.7	$	54.8		$	(29.0	)

18

ALERIS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in millions)

	For the three months ended September 30, 2016
	Aleris Corporation (Parent)			Aleris International, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	—		$	358.6		$	332.3		$	(7.5	)	$	683.4
Cost of sales	—			—			341.1			277.0			(7.5		)	610.6
Gross profit	—			—			17.5			55.3			—			72.8
Selling, general and administrative expenses	—			0.4			39.9			18.5			—			58.8
Restructuring charges	—			—			0.3			—			—			0.3
Losses (gains) on derivative financial instruments	—			—			1.1			(0.9		)	—			0.2
Other operating expense, net	—			—			0.9			0.1			—			1.0
Operating (loss) income	—			(0.4		)	(24.7		)	37.6			—			12.5
Interest expense, net	—			—			11.8			7.4			—			19.2
Other income, net	—			(0.2		)	(1.1		)	(0.7		)	—			(2.0		)
Equity in net loss (earnings) of affiliates	21.6			16.6			(0.3		)	—			(37.9		)	—
(Loss) income before income taxes	(21.6		)	(16.8		)	(35.1		)	30.9			37.9			(4.7		)
Provision for income taxes	—			0.2			0.5			11.6			—			12.3
(Loss) income from continuing operations	(21.6		)	(17.0		)	(35.6		)	19.3			37.9			(17.0		)
Loss from discontinued operations, net of tax	—			(4.6		)	—			—			—			(4.6		)
Net (loss) income	$	(21.6	)	$	(21.6	)	$	(35.6	)	$	19.3		$	37.9		$	(21.6	)
Comprehensive (loss) income	$	(15.8	)	$	(15.8	)	$	(34.6	)	$	24.1		$	26.3		$	(15.8	)

	For the nine months ended September 30, 2016
	Aleris Corporation (Parent)			Aleris International, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Revenues	$	—		$	—		$	1,054.3		$	1,011.4	$	(14.8	)	$	2,050.9
Cost of sales	—			—			981.0			859.8		(14.8		)	1,826.0
Gross profit	—			—			73.3			151.6		—			224.9
Selling, general and administrative expenses	—			1.7			99.0			58.6		—			159.3
Restructuring charges	—			—			0.9			0.9					1.8
Losses on derivative financial instruments	—			—			1.7			1.1		—			2.8
Other operating expense, net	—			—			2.3			0.2		—			2.5
Operating (loss) income	—			(1.7		)	(30.6		)	90.8		—			58.5
Interest expense, net	—			—			34.1			24.3		—			58.4
Other expense (income), net	—			8.5			(3.1		)	0.6		—			6.0
Equity in net loss (earnings) of affiliates	41.0			25.9			(0.7		)	—		(66.2		)	—
(Loss) income before income taxes	(41.0		)	(36.1		)	(60.9		)	65.9		66.2			(5.9		)
Provision for income taxes	—			0.3			0.1			30.1		—			30.5
(Loss) income from continuing operations	(41.0		)	(36.4		)	(61.0		)	35.8		66.2			(36.4		)
Loss from discontinued operations, net of tax	—			(4.6		)	—			—		—			(4.6		)
Net (loss) income	(41.0		)	(41.0		)	(61.0		)	35.8		66.2			(41.0		)
Comprehensive (loss) income	$	(29.0	)	$	(29.0	)	$	(59.1	)	$	45.8	$	42.3		$	(29.0	)

19

ALERIS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in millions)

	For the nine months ended September 30, 2017
	Aleris Corporation (Parent)			Aleris International, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided (used) by operating activities	$	1.3		$	299.2		$	(247.8	)	$	61.8		$	(147.0	)	$	(32.5	)
Investing activities
Payments for property, plant and equipment	—			—			(150.9		)	(24.0		)	—			(174.9		)
Repayments from intercompany loans	—			—			—			135.0			(135.0		)	—
Equity contributions in subsidiaries	—			(426.6		)	(1.0		)	—			427.6			—
Return of investment in subsidiaries	—			8.3			5.8			—			(14.1		)	—
Other	—			—			(2.5		)	—			—			(2.5		)
Net cash (used) provided by investing activities	—			(418.3		)	(148.6		)	111.0			278.5			(177.4		)
Financing activities
Proceeds from the revolving credit facilities	—			215.0			—			186.7			—			401.7
Payments on the revolving credit facilities	—			(185.0		)	—			(244.2		)	—			(429.2		)
Proceeds from senior secured notes, inclusive of premiums				263.8			—			—						263.8
Payments on other long-term debt	—			—			(0.5		)	(5.0		)	—			(5.5		)
Debt issuance costs				(2.5		)	—			—			—			(2.5		)
Repayments on intercompany loans	—			(135.0		)	—			—			135.0			—
Proceeds from intercompany equity contributions	—			—			403.6			24.0			(427.6		)	—
Dividends paid	—			—			(7.1		)	(153.6		)	160.7			—
Other	(1.3		)	—			0.4			(0.6		)	—			(1.5		)
Net cash (used) provided by financing activities	(1.3		)	156.3			396.4			(192.7		)	(131.9		)	226.8
Effect of exchange rate differences on cash, cash equivalents and restricted cash	—			—			—			3.0			—			3.0
Net increase (decrease) in cash, cash equivalents and restricted cash	—			37.2			—			(16.9		)	(0.4		)	19.9
Cash, cash equivalents and restricted cash at beginning of period	—			5.5			—			53.3			(3.2		)	55.6
Cash, cash equivalents and restricted cash at end of period	$	—		$	42.7		$	—		$	36.4		$	(3.6	)	$	75.5
Cash and cash equivalents	$	—		$	42.7		$	—		$	32.8		$	(3.6	)	$	71.9
Restricted cash (included in “Other current assets”)	—			—			—			3.6			—			3.6
Cash, cash equivalents and restricted cash	$	—		$	42.7		$	—		$	36.4		$	(3.6	)	$	75.5

20

ALERIS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in millions)

	For the nine months ended September 30, 2016
	Aleris Corporation (Parent)			Aleris International, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided (used) by operating activities	$	0.6		$	(273.6	)	$	253.5		$	67.7		$	(1.6	)	$	46.6
Investing activities
Payments for property, plant and equipment	—			—			(251.0		)	(44.7		)	—			(295.7		)
Disbursements of intercompany loans	—			—			—			(50.0		)	50.0			—
Return of investments in subsidiaries	—			15.2			0.2			—			(15.4		)	—
Other	—			—			(1.2		)	—			—			(1.2		)
Net cash provided (used) by investing activities	—			15.2			(252.0		)	(94.7		)	34.6			(296.9		)
Financing activities
Proceeds from revolving credit facilities	—			175.0			—			25.1			—			200.1
Payments on revolving credit facilities	—			(60.0		)	—			(1.7		)	—			(61.7		)
Proceeds from senior secured notes, net of discount	—			540.4			—			—			—			540.4
Payments on senior notes, including premiums	—			(443.8		)	—			—			—			(443.8		)
Payments on other long-term debt	—			(0.5		)	(0.4		)	(5.8		)	—			(6.7		)
Debt issuance costs				(3.5		)	—			—			—			(3.5		)
Proceeds from intercompany loans	—			50.0			—			—			(50.0		)	—
Dividends paid	—			—			(0.9		)	(16.1		)	17.0			—
Other	(0.6		)	0.8			(0.2		)	(0.7		)	—			(0.7		)
Net cash (used) provided by financing activities	(0.6		)	258.4			(1.5		)	0.8			(33.0		)	224.1
Effect of exchange rate differences on cash, cash equivalents and restricted cash	—			—			—			0.5			—			0.5
Net decrease in cash, cash equivalents and restricted cash	—			—			—			(25.7		)	—			(25.7		)
Cash, cash equivalents and restricted cash at beginning of period	—			—			—			62.2			—			62.2
Cash, cash equivalents and restricted cash at end of period	$	—		$	—		$	—		$	36.5		$	—		$	36.5

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

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to help you understand our operations as well as the industry in which we operate. Our MD&A is designed to provide a narrative from the perspective of our management on our financial condition, results of operations, liquidity and certain other factors that may affect our future results.

Basis of Presentation

The financial information included in this quarterly report on Form 10-Q represents our consolidated financial position as of September 30, 2017 and December 31, 2016, our consolidated results of operations for the three and nine months endedSeptember 30, 2017 and 2016 and our consolidated cash flows for the nine months endedSeptember 30, 2017 and 2016.

Our MD&A includes the following sections:

▪ Our Business - a general description of our operations, our critical measures of financial performance, our segments, and the aluminum industry;

▪ Seasonality and Management Outlook - a brief discussion of the material trends and uncertainties that may impact our business in the future;

▪ Results of Operations - an analysis and discussion of our consolidated and segment operating results for the three and nine months ended September 30, 2017 and 2016 presented in our unaudited consolidated financial statements;

▪ Liquidity and Capital Resources - an analysis and discussion of our cash flows for the nine months endedSeptember 30, 2017 and 2016, as well as a brief discussion of our current sources of capital;

▪ Non-GAAP Financial Measures - an analysis and discussion of key financial performance measures, including EBITDA, Adjusted EBITDA and commercial margin (all defined below), as well as reconciliations to the applicable generally accepted accounting principles in the United States (“GAAP”) performance measures;

▪ Critical Accounting Policies and Estimates - a discussion of the accounting policies that require us to make estimates and judgments; and

▪ Off-Balance Sheet Transactions.

This discussion should be read in conjunction with our unaudited consolidated financial statements and notes included elsewhere in this report. The discussions of our financial condition and results of operations also include various forward-looking statements about our industry, the demand for our products and services and our projected results. These statements are based on certain assumptions that we consider reasonable. Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to these differences include, but are not limited to, those discussed below, particularly under the caption “–Forward-Looking Statements.”

On August 29, 2016, Aleris Corporation entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Zhongwang USA LLC (“Zhongwang USA”), Zhongwang Aluminum Corporation, a direct, wholly owned subsidiary of Zhongwang USA (“Merger Sub”), and the stockholders representative party thereto, pursuant to which Merger Sub will be merged with and into Aleris Corporation, on the terms and subject to the conditions set forth in the Merger Agreement, with Aleris Corporation as the surviving entity (the “Merger”). Upon consummation of the Merger, Aleris Corporation is expected to be a direct, wholly owned subsidiary of Zhongwang USA, which is expected to be indirectly beneficially owned by entities affiliated with Mr. Liu Zhongtian and other investors and financial institutions. Zhongwang USA has agreed to pay approximately $1.1 billion in cash, subject to adjustment, for the equity of Aleris Corporation and to assume certain of the Company’s outstanding indebtedness.

21

The Merger is subject to customary regulatory approvals, including the receipt of approval from the Committee on Foreign Investment in the United States (“CFIUS”), and other customary closing conditions. The Merger is not subject to a financing condition. As previously disclosed, following the initial filing of the CFIUS voluntary notice by Aleris Corporation and Zhongwang USA, CFIUS identified national security concerns with the Merger and invited Aleris Corporation and Zhongwang USA to withdraw and refile their notice in order to obtain additional time to provide additional information, including possible measures to mitigate these concerns. In February 2017, Aleris Corporation and Zhongwang USA withdrew their notice and refiled in the second quarter of 2017. CFIUS continues to raise national security concerns with the Merger and, as a result, Aleris Corporation and Zhongwang USA have withdrawn their most recent notice seeking approval of the transaction from CFIUS and continue discussions concerning the transaction. However, there can be no assurance that the Merger will be consummated. By its terms, the Merger Agreement would have automatically terminated on August 31, 2017. Through a series of extensions, the parties have currently agreed to extend the termination date of the Merger Agreement so that the Merger Agreement automatically terminates on November 12, 2017.

Our Business

We are a global leader in the manufacture and sale of aluminum rolled products, with 13 production facilities located throughout North America, Europe and China. Our product portfolio ranges from the most technically demanding heat treated plate and sheet used in mission-critical applications to sheet produced through our low-cost continuous cast process. We possess a combination of technically advanced, flexible and low-cost manufacturing operations supported by an industry-leading research and development (“R&D”) platform. Our facilities are strategically located to serve our customers globally, which include a diversified customer base that includes a number of industry-leading companies in the aerospace, automotive, truck trailer and building and construction end-uses. Our technological and R&D capabilities allow us to produce the most technically demanding products, many of which require close collaboration and, in some cases, joint development with our customers.

London Metal Exchange (“LME”) aluminum prices and regional premium differentials (referred to as “Midwest Premium” in the U.S. and “Rotterdam Premium” in Europe) serve as the pricing mechanisms for both the aluminum we purchase and the products we sell. Aluminum and other metal costs represented approximately 70% of our costs of sales for the nine months endedSeptember 30, 2017. Aluminum prices are determined by worldwide forces of supply and demand and, as a result, aluminum prices are volatile. Average LME aluminum prices per ton for the three months ended September 30, 2017 and 2016 were $2,011 and $1,620, respectively, which represents an increase of approximately 24%. Average LME aluminum prices per ton for the nine months ended September 30, 2017 and 2016 were $1,924 and $1,569, respectively, which represents an increase of approximately 23%. As our invoiced prices are, in most cases, established months prior to physical delivery, the impact of aluminum price changes on our quarterly and year-to-date revenues may not correspond to LME and regional premium price changes for those same periods.

Our business model strives to reduce the impact of aluminum price fluctuations on our financial results and protect and stabilize our margins, principally through pass-through pricing (market-based aluminum price plus a conversion fee) and derivative financial instruments.

As a result of using LME aluminum prices and regional premium differentials to both buy our raw materials and to sell our products, we are able to pass through aluminum price changes in the majority of our commercial transactions. Consequently, while our revenues can fluctuate significantly as aluminum prices change, we would expect the impact of these price changes on our profitability to be less significant. Approximately 87% of our sales for the year ended December 31, 2016 were generated from aluminum pass-through arrangements. In addition to using LME prices and regional premiums to establish our invoice prices to customers, we use derivative financial instruments to further reduce the impacts of changing aluminum prices. Derivative financial instruments are entered into at the time fixed prices are established for aluminum purchases or sales, on a net basis, and allow us to fix the margin to be realized on our long-term contracts and on short-term contracts where selling prices are not established at the same time as the physical purchase price of aluminum. However, as we have elected not to account for our derivative financial instruments as hedges for accounting purposes, changes in the fair value of our derivative financial instruments are included in our results of operations immediately. These changes in fair value (referred to as “unrealized gains and losses”) can have a significant impact on our pre-tax income in the same way LME aluminum and regional premium prices can have a significant impact on our revenues. In assessing the performance of our operating segments, we exclude these unrealized gains and losses, electing to include them only at the time of settlement to better match the period in which the underlying physical purchases and sales affect earnings.

Although our business model strives to reduce the impact of aluminum price fluctuations on our financial results, it cannot eliminate the impact completely. For example, at times the profitability of our North America segment is impacted by changes in scrap aluminum prices whose movement may not be correlated to movements in LME prices. Furthermore,

22

certain segments are exposed to variability in the previously mentioned regional premium differentials charged by industry participants to deliver aluminum from the smelter to the manufacturing facility. This premium differential fluctuates in relation to several conditions, including the extent of warehouse financing transactions, which limit the amount of physical metal flowing to consumers and increases the price differential as a result. In addition to impacting the price we pay for the raw materials we purchase, our customers may be reluctant to place orders with us during times of uncertainty in the pricing of the Midwest Premium or Rotterdam Premium.

For additional information on the key factors impacting our profitability, see “–Critical Measures of Our Financial Performance” and “–Our Segments,” below.

Critical Measures of Our Financial Performance

The financial performance of our operating segments is the result of several factors, the most critical of which are as follows:

▪ volumes;

▪ commercial margins; and

▪ cash conversion costs.

The financial performance of our business is determined, in part, by the volume of metric tons shipped and processed. Increased production volume will result in lower per unit costs, while higher shipped volumes will result in additional revenue and associated margins. As a significant component of our revenue is derived from aluminum prices that we generally pass through to our customers, we measure the performance of our segments based upon a percentage of commercial margin and commercial margin per ton in addition to a percentage of revenue and revenue per ton. Commercial margin removes the hedged cost of the metal we purchase and metal price lag (defined below) from our revenue. Commercial margins capture the value-added components of our business and are impacted by factors, including rolling margins (the fee we charge to convert aluminum), product yields from our manufacturing process, the value-added mix of products sold and scrap spreads, which management are able to influence more readily than aluminum prices and, therefore, provide another basis upon which certain elements of our segments’ performance can be measured.

Although our conversion fee-based pricing model is designed to reduce the impact of changing primary aluminum prices, we remain susceptible to the impact of these changes and changes in regional premium differentials on our operating results. This exposure exists because we value our aluminum inventories primarily under the first-in, first-out method, which leads to the purchase price of inventory typically impacting our cost of sales in periods subsequent to when the related sales price impacts our revenues. This lag will, generally, increase our earnings in times of rising aluminum prices and decrease our earnings in times of declining aluminum prices.

Our exposure to changing primary aluminum prices and premium differentials, both in terms of liquidity and operating results, is greater for fixed price sales contracts and other sales contracts where aluminum price changes are not able to be passed along to our customers. In addition, our operations require that a significant amount of inventory be kept on hand to meet future production requirements. This base level of inventory is also susceptible to changing primary aluminum prices and regional premium differentials to the extent it is not committed to fixed price sales orders.

In order to reduce these exposures, we focus on reducing working capital and offsetting future physical purchases and sales. We also use various derivative financial instruments designed to reduce the impact of changing primary aluminum prices on these net physical purchases and sales and on inventory for which a fixed sale price has not yet been determined. Our risk management practices reduce but do not eliminate our exposure to changing primary aluminum prices. In addition, exchanges have only recently begun to offer derivative financial instruments to hedge premium differentials. These markets are becoming more liquid and we are beginning to use these markets in our risk management practices. While we have limited our exposure to unfavorable aluminum price changes, we have also limited our ability to benefit from favorable price changes. Further, our counterparties may require that we post cash collateral if the fair value of our derivative liabilities exceed the amount of credit granted by each counterparty, thereby reducing our liquidity. As of September 30, 2017 and December 31, 2016, no cash collateral had been posted.

We refer to the difference between the price of primary aluminum included in our revenues and the estimated price of aluminum impacting our cost of sales, net of realized gains and losses from our hedging activities, as “metal price lag.” The primary aluminum price used in the metal price lag calculation for all segments includes the regional premium. Metal price lag will, generally, increase our earnings and net income and loss attributable to Aleris Corporation before interest, taxes, depreciation and amortization and income from discontinued operations, net of tax (“EBITDA”) in times of rising aluminum prices and decrease our earnings and EBITDA in times of declining aluminum prices. We seek to reduce this impact through the use of derivative financial instruments. We exclude metal price lag from our determination of Adjusted EBITDA because it is not an indicator of the performance of our underlying operations. We also exclude the impact of

23

metal price lag from our measurement of commercial margin to more closely align the metal prices inherent in our sales prices to those included in our cost of sales.

In addition to rolling margins and product mix, commercial margins are impacted by the differences between changes in the prices of primary and scrap aluminum, as well as the availability of scrap aluminum, particularly in our North America segment where aluminum scrap is used more frequently than in our European and Asia Pacific operations. As we price our product using the prevailing price of primary aluminum but purchase large amounts of scrap aluminum to produce our products, we benefit when primary aluminum price increases exceed scrap price increases. Conversely, when scrap price increases exceed primary aluminum price increases, our commercial margin will be negatively impacted. The difference between the price of primary aluminum and scrap prices is referred to as the “scrap spread” and is impacted by the effectiveness of our scrap purchasing activities, the supply of scrap available and movements in the terminal commodity markets, such as the price of aluminum.

Our operations are labor intensive and also require a significant amount of energy (primarily natural gas and electricity) be consumed to melt scrap or primary aluminum and to re-heat and roll aluminum slabs into rolled products. As a result, we incur a significant amount of fixed and variable labor and overhead costs which we refer to as conversion costs. Conversion costs excluding depreciation expense, or cash conversion costs, on a per ton basis, are a critical measure of the effectiveness of our operations.

Commercial margin, EBITDA and Adjusted EBITDA are non-GAAP financial measures that have limitations as analytical tools and should be considered in addition to, and not in isolation, or as a substitute for, or as superior to, our measures of financial performance prepared in accordance with GAAP. For additional information regarding non-GAAP financial measures, see “–Non-GAAP Financial Measures.”

Our Segments

We report three operating segments based on the organizational structure that we use to evaluate performance, make decisions on resource allocations and perform business reviews of financial results. The Company’s operating segments (each of which is considered a reportable segment) are North America, Europe and Asia Pacific.

In addition to analyzing our consolidated operating performance based upon revenues and Adjusted EBITDA, we measure the performance of our operating segments using segment income, segment Adjusted EBITDA and commercial margin. Segment income includes gross profits, segment specific realized gains and losses on derivative financial instruments, segment specific other income and expense, segment specific selling, general and administrative (“SG&A”) expenses and an allocation of certain functional SG&A expenses. Segment income excludes provisions for and benefits from income taxes, restructuring items, interest, depreciation and amortization, unrealized and certain realized gains and losses on derivative financial instruments, corporate general and administrative costs, start-up costs, gains and losses on asset sales, currency exchange gains and losses on debt and certain other gains and losses. Intra-entity sales and transfers are recorded at market value. Consolidated cash, restricted cash, net capitalized debt costs, deferred tax assets and assets related to our headquarters offices are not allocated to the segments.

Segment Adjusted EBITDA eliminates from segment income the impact of metal price lag and recording inventory and other items at fair value through purchase accounting. Commercial margin represents revenues less the hedged cost of metal, or the raw material costs included in our cost of sales, net of the impact of our hedging activities and the effects of metal price lag. Segment Adjusted EBITDA and commercial margin are non-GAAP financial measures that have limitations as analytical tools and should be considered in addition to, and not in isolation, or as a substitute for, or as superior to, our measures of financial performance prepared in accordance with GAAP. Management uses segment Adjusted EBITDA in managing and assessing the performance of our business segments and overall business and believes that segment Adjusted EBITDA provides investors and other users of our financial information with additional useful information regarding the ongoing performance of the underlying business activities of our segments, as well as comparisons between our current results and results in prior periods. Management also uses commercial margin as a performance metric and believes that it provides useful information regarding the performance of our segments because it measures the estimated price at which we sell our aluminum products above the hedged cost of the metal and the effects of metal price lag, thereby reflecting the value-added components of our commercial activities independent of aluminum prices which we cannot control.

For additional information regarding non-GAAP financial measures, see “–Non-GAAP Financial Measures.”

North America

Our North America segment consists of nine manufacturing facilities located throughout the United States that produce rolled aluminum and coated products for the building and construction, truck trailer, automotive, consumer durables, other general industrial and distribution end-uses. Substantially all of our North America segment’s products are

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manufactured to specific customer requirements using continuous cast and direct-chill technologies that provide us with significant flexibility to produce a wide range of products. Specifically, those products are integrated into, among other applications, building products, truck trailers, appliances, cars and recreational vehicles.

We are continuing to implement our previously announced project to add autobody sheet (“ABS”) capabilities at our aluminum rolling mill in Lewisport, Kentucky (the “North America ABS Project”). We are investing over $400 million to build a new wide cold mill, two continuous annealing lines and an automotive innovation center at this facility. We are also investing in upgrades to other key non-ABS equipment at the facility, including widening the hot mill, to capture additional opportunities. The investment positions us to meet significant growth in demand for ABS in North America as the automotive industry pursues broader aluminum use for the production of lighter, more fuel-efficient vehicles. We commenced delivery of ABS product from this facility in the fourth quarter of 2017. We are currently a leading supplier of ABS to the European premium automotive industry, which has led the light-weighting transition to aluminum in an effort to meet tighter emissions standards.

In connection with the North America ABS Project, the segment has been incurring costs associated with start-up activities, including the design and development of new products and processes. These start-up costs have been excluded from segment Adjusted EBITDA and segment income.

Key operating and financial information for the segment is presented below:

	For the three months ended						For the nine months ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
North America	(dollars in millions, except per ton measures, volume in thousands of tons)
Metric tons of finished product shipped	115.3			127.5			361.9			376.7
Revenues	$	364.4		$	358.6		$	1,129.0		$	1,054.3
Hedged cost of metal	(224.1		)	(212.9		)	(685.3		)	(616.7		)
Unfavorable (favorable) metal price lag	1.6			0.1			5.9			(2.6		)
Commercial margin	$	141.9		$	145.8		$	449.6		$	435.0
Commercial margin per metric ton shipped	$	1,231.0		$	1,143.4		$	1,242.4		$	1,154.7
Segment income	$	19.9		$	18.1		$	75.2		$	69.8
Unfavorable (favorable) metal price lag	1.6			0.1			5.9			(2.6		)
Segment Adjusted EBITDA (1)	$	21.4		$	18.2		$	81.1		$	67.2
Segment Adjusted EBITDA per metric ton shipped	$	185.8		$	142.7		$	224.1		$	178.4
Start-up costs	$	21.2		$	13.6		$	48.1		$	28.3

(1) Amounts may not foot as they represent the calculated totals based on actual amounts and not the rounded amounts presented in this table.

Europe

Our Europe segment consists of two world-class aluminum rolling mills, one in Germany and the other in Belgium, and an aluminum cast house in Germany. The segment produces aerospace plate and sheet, ABS, clad brazing sheet (clad aluminum material used for, among other applications, vehicle radiators and HVAC systems) and heat-treated plate for engineered product applications. Substantially all of our Europe segment’s products are manufactured to specific customer requirements using direct-chill ingot cast technologies that allow us to use and offer a variety of alloys and products for a number of technically demanding end-uses.

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Key operating and financial information for the segment is presented below:

	For the three months ended						For the nine months ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
Europe	(dollars in millions, except per ton measures, volume in thousands of tons)
Metric tons of finished product shipped	78.2			81.5			240.4			250.9
Revenues	$	324.3		$	304.8		$	969.2		$	940.9
Hedged cost of metal	(192.6		)	(163.2		)	(550.4		)	(506.6		)
Unfavorable (favorable) metal price lag	0.1			1.1			(0.5		)	3.1
Commercial margin	$	131.8		$	142.7		$	418.3		$	437.4
Commercial margin per metric ton shipped	$	1,686.4		$	1,749.5		$	1,740.2		$	1,743.4
Segment income	$	28.4		$	40.7		$	101.7		$	113.8
Unfavorable (favorable) metal price lag	0.1			1.1			(0.5		)	3.1
Segment Adjusted EBITDA (1)	$	28.5		$	41.7		$	101.2		$	116.9
Segment Adjusted EBITDA per metric ton shipped	$	364.7		$	511.7		$	420.8		$	466.0

(1) Amounts may not foot as they represent the calculated totals based on actual amounts and not the rounded amounts presented in this table.

Asia Pacific

Our Asia Pacific segment consists of the Zhenjiang rolling mill that produces technically demanding and value-added plate products for the aerospace, engineering, distribution and other transportation end-uses worldwide. Substantially all of our Asia Pacific segment’s products are manufactured to specific customer requirements using direct-chill ingot cast technologies that allow us to use and offer a variety of alloys and products principally for aerospace and also for a number of other technically demanding end-uses.

Key operating and financial information for the segment is presented below:

	For the three months ended						For the nine months ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
Asia Pacific	(dollars in millions, except per ton measures, volume in thousands of tons)
Metric tons of finished product shipped	7.1			6.6			19.4			16.9
Revenues	$	32.2		$	29.2		$	87.1		$	75.7
Hedged cost of metal	(17.0		)	(15.1		)	(45.5		)	(38.7		)
Favorable metal price lag	(0.6		)	—			(1.8		)	—
Commercial margin	$	14.6		$	14.1		$	39.8		$	37.0
Commercial margin per metric ton shipped	$	2,061.4		$	2,123.0		$	2,050.0		$	2,188.3
Segment income	$	4.3		$	2.8		$	10.0		$	6.2
Favorable metal price lag	(0.6		)	—			(1.8		)	—
Segment Adjusted EBITDA (1)	$	3.7		$	2.8		$	8.3		$	6.2
Segment Adjusted EBITDA per metric ton shipped	$	525.5		$	422.8		$	425.0		$	367.9

(1) Amounts may not foot as they represent the calculated totals based on actual amounts and not the rounded amounts presented in this table.

The Aluminum Industry

Aluminum is a widely-used, attractive industrial material. Compared to several alternative metals such as steel and copper, aluminum is lightweight, has a high strength-to-weight ratio and is resistant to corrosion. Aluminum can be recycled repeatedly without any material decline in performance or quality. The recycling of aluminum delivers energy and capital investment savings relative to both the cost of producing primary aluminum and many other competing materials. The penetration of aluminum into a wide variety of applications continues to grow. We believe several factors support fundamental long-term growth in aluminum consumption in the end-uses we serve.

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The global aluminum industry consists of primary aluminum producers with bauxite mining, alumina refining and aluminum smelting capabilities; aluminum semi-fabricated products manufacturers, including aluminum casters, recyclers, extruders and flat rolled products producers; and integrated companies that are present across multiple stages of the aluminum production chain. The industry is cyclical and is affected by global economic conditions, industry competition and product development.

Primary aluminum prices are determined by worldwide forces of supply and demand and, as a result, are volatile. This volatility has a significant impact on the profitability of primary aluminum producers whose selling prices are typically based upon prevailing LME prices while their costs to manufacture are not highly correlated to LME prices. We participate in select segments of the aluminum fabricated products industry, focusing on aluminum rolled products. We do not smelt aluminum, nor do we participate in other upstream activities, including mining bauxite or refining alumina. Since the majority of our products are sold on a market-based aluminum price plus conversion fee basis, we are less exposed to aluminum price volatility.

Seasonality and Management Outlook

Demand for certain end-uses we serve, particularly building and construction, is seasonal. This typically results in higher operating income in our second and third quarters, followed by our first and fourth quarters.

We estimate that segment income and Adjusted EBITDA for the fourth quarter of 2017 will be lower than the fourth quarter of 2016 based on continuation of current trends. Factors influencing anticipated fourth quarter performance include:

▪ commercial shipments from the first Lewisport CALP line have recently commenced and will show meaningful ramp up in 2018 based on contracted volumes. Residual outage effect complete in the fourth quarter;

▪ improved metal spreads are expected to continue to benefit North America;

▪ we expect building and construction fundamentals to remain healthy; fourth quarter volumes are expected to be lower due to delinquency reductions in the prior year;

▪ aerospace softness, due to continued supply chain destocking, and automotive model launch delays will continue to impact Europe volumes in the fourth quarter; trends reversing sequentially going into 2018;

▪ weaker U.S. dollar will negatively impact Europe results in the fourth quarter;

▪ strengthening long-term global aerospace presence;

▪ we expect liquidity to benefit from customer capacity reservation fees in the fourth quarter or early in 2018; and

▪ segment income in the fourth quarter will be dependent, in part, upon changing aluminum prices and the resulting metal price lag.

In addition, pre-tax income will be unfavorably impacted by increased start-up costs and depreciation expense associated with the North America ABS Project and higher interest expense associated with the additional $250 million of 9½% Senior Secured Notes issued in February 2017.

Capital expenditures during the fourth quarter of 2017 are expected to be lower than the fourth quarter of 2016. We expect 2017 capital spending of approximately $230.0 million to $240.0 million before capitalized interest, including the amounts spent in the first three quarters of 2017 of $174.9 million. We expect 2018 capital spending of approximately $125 million before capitalized interest.

In 2018, we expect a significant increase in shipments from our Lewisport facility as the production outage described above was a one-time event. Lewisport’s ABS products are expected to generate higher margins than the facility’s traditional distribution products. As a result, we expect improved margins and increased revenues from Lewisport in 2018. A large portion of the production capacity from that facility has been committed via long-term customer contracts. We expect that the slowdown in aerospace will reverse in 2018 driven by higher aircraft production rates and benefits from our global, long-term customer relationships. Additionally, European automotive demand should benefit from new model launches and less Europe capacity used to support Lewisport’s ramp up in 2018. Also, we expect the conditions in North America building and construction should continue into 2018.

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Results of Operations

Three Months Ended September 30, 2017 Compared to the Three Months Ended September 30, 2016

Revenues for the three months ended September 30, 2017 increased $29.4 million when compared to the prior year period. The higher average price of aluminum included in our invoiced prices increased revenues approximately $69.0 million and improved rolling margins increased revenues approximately $3.0 million. In addition, a weaker average U.S. dollar favorably impacted the translation of our euro-based revenues, increasing revenues approximately $11.0 million. These increases were partially offset by lower volumes that decreased revenues approximately $53.0 million. In Europe, aerospace volumes decreased 16% as a result of continued supply chain destocking and automotive volumes decreased 5% as a result of model launch delays. In North America, building and construction volumes decreased 13%, as prior year volumes benefited from the reduction of delinquencies that resulted from unexpected outages in 2016, and distribution volumes decreased 9% as a result of an extended scheduled outage at the Lewisport hot mill in connection with the North America ABS project.

The following table presents the estimated impact of key factors that resulted in the 4% increase in our consolidated third quarter revenues from 2016 to 2017:

	North America					Europe					Asia Pacific					Consolidated
	$			%		$			%		$			%		$			%
	(dollars in millions)
LME / aluminum pass-through	$	31.0		9	%	$	36.0		12	%	$	2.0		7	%	$	69.0		10	%
Commercial price	3.0			1		1.0			—		(1.0		)	(3	)	3.0			—
Volume / mix	(27.0		)	(8	)	(28.0		)	(9	)	2.0			7		(53.0		)	(8	)
Currency	—			—		11.0			4		—			—		11.0			2
Other	(1.2		)	—		(0.5		)	—		—			—		(1.7		)	—
Total	$	5.8		2	%	$	19.5		6	%	$	3.0		10	%	$	28.3		5	%
Intra-entity revenues																1.1			—
Total																$	29.4		4	%

Gross profit for the three months ended September 30, 2017 was $37.6 million compared to $72.8 million for the three months ended September 30, 2016. Metal price lag had an estimated $12.5 million unfavorable impact on gross profit for the three months ended September 30, 2017 when compared to the three months ended September 30, 2016. The unfavorable impact from metal price lag excludes the realized gains and losses on metal derivative financial instruments, which are classified separately on the Consolidated Statements of Comprehensive Loss. The following table presents the estimated impact of metal price lag on our Consolidated Statements of Comprehensive Loss for the three months ended September 30, 2017 and 2016:

		For the three months ended
		September 30, 2017			September 30, 2016			Change
Location in consolidated statements of comprehensive loss		(dollars in millions)
Gross profit	(Unfavorable) favorable metal price lag	$	(4.6	)	$	7.9		$	(12.5	)
Losses on derivative financial instruments	Realized gains (losses) on metal derivatives	3.6			(9.1		)	12.7
	Unfavorable metal price lag net of realized derivative losses	$	(1.0	)	$	(1.2	)	$	0.2

In addition to the impact of metal price lag, lower volumes decreased gross profit approximately $8.0 million and increased hardener costs and externally purchased slab in Europe decreased gross profit approximately $3.0 million. Gross margin was also affected by a $13.3 million increase in start-up costs, primarily attributable to the North America ABS Project, and a $4.8 million increase in depreciation expense, as assets related to the North America ABS Project were placed in service. These decreases to gross margin were partially offset by favorable metal spreads, resulting from higher aluminum prices and improved scrap availability, that increased gross profit approximately $4.0 million and improved rolling margins that increased gross profit $2.0 million.

Selling, general and administrative expenses were $49.5 million for the three months ended September 30, 2017 compared to $58.8 million for the three months ended September 30, 2016. The $9.3 million decrease included:

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▪ a $4.6 million decrease in SG&A start-up costs associated with the North America ABS Project;

▪ a $4.0 million decrease in professional fees; and

▪ a $1.4 million decrease in stock-based compensation expense as certain equity awards become fully expensed.

These decreases were partially offset by higher labor costs of $1.4 million related primarily to increased incentive compensation expense and wage inflation.

During the three months ended September 30, 2017 and 2016, we recorded realized (gains) losses on derivative financial instruments of $(3.9) million and $9.0 million, respectively, and unrealized losses (gains) of $18.8 million and $(8.8) million, respectively. Generally, our realized gains or losses represent the cash paid or received upon settlement of our derivative financial instruments. Unrealized gains or losses reflect the change in the fair value of derivative financial instruments from the later of the end of the prior period or our entering into the derivative instrument as well as the reversal of previously recorded unrealized gains or losses for derivatives that settled during the period.

Net interest expense increased $12.8 million resulting from the issuance of $250.0 million of 9½% Senior Secured Notes (defined below) in the first quarter of 2017 and a decrease in capitalized interest.

An unfavorable change of $4.4 million in other expense (income) was due in part to a $2.7 million gain recorded in the third quarter of 2016 resulting from the resolution of a vendor dispute. In addition, currency exchange rate changes resulted in $1.1 million of losses in the prior year compared to $3.2 million of losses in the current year. These currency exchange rate losses are primarily related to the remeasurement of U.S. dollar working capital and debt balances in Europe.

Our effective tax rates were (2.5)% and (262.0)% for the three months ended September 30, 2017 and 2016, respectively. The effective tax rates for the three months ended September 30, 2017 and 2016 differed from the federal statutory rate applied to income and losses before income taxes primarily as a result of the mix of income, losses and tax rates between tax jurisdictions and valuation allowances.

Loss from discontinued operations, net of tax for the three months ended September 30, 2016 included an incremental loss on sale of $4.6 million related to our estimate of costs related to the indemnification of the buyer of the recycling and specification alloys business for certain potential future damages.

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The following table presents key financial and operating data on a consolidated basis for the three months ended September 30, 2017 and 2016:

	For the three months ended
	September 30, 2017			September 30, 2016			Change			% Change
	(dollars in millions)
Revenues	$	712.8		$	683.4		$	29.4		4	%
Cost of sales	675.2			610.6			64.6			11
Gross profit	37.6			72.8			(35.2		)	(48	)
Gross profit as a percentage of revenues	5.3		%	10.7		%	(5.4		)%	(50	)
Selling, general and administrative expenses	49.5			58.8			(9.3		)	(16	)
Restructuring charges	0.9			0.3			0.6			200
Losses on derivative financial instruments	14.9			0.2			14.7			7,350
Other operating expense, net	2.0			1.0			1.0			100
Operating (loss) income	(29.7		)	12.5			(42.2		)	(338	)
Interest expense, net	32.0			19.2			12.8			67
Other expense (income), net	2.4			(2.0		)	4.4			(220	)
Loss before income taxes	(64.1		)	(4.7		)	(59.4		)	1,264
Provision for income taxes	1.6			12.3			(10.7		)	(87	)
Loss from continuing operations	(65.7		)	(17.0		)	(48.7		)	286
Loss from discontinued operations, net of tax	—			(4.6		)	4.6			*
Net loss	$	(65.7	)	$	(21.6	)	$	(44.1	)	204	%
Total segment income	$	52.6		$	61.6		$	(9.0	)	(15	)%
Depreciation and amortization	(30.5		)	(26.2		)	(4.3		)	16
Other corporate general and administrative expenses	(8.9		)	(14.8		)	5.9			(40	)
Restructuring charges	(0.9		)	(0.3		)	(0.6		)	200
Interest expense, net	(32.0		)	(19.2		)	(12.8		)	67
Unallocated (losses) gains on derivative financial instruments	(18.4		)	8.8			(27.2		)	(309	)
Unallocated currency exchange losses	(2.0		)	(0.5		)	(1.5		)	300
Start-up costs	(22.8		)	(14.1		)	(8.7		)	62
Other expense, net	(1.2		)	—			(1.2		)	*
Loss before income taxes	$	(64.1	)	$	(4.7	)	$	(59.4	)	1,264	%

Segment Revenues and Shipments

The following tables present revenues and metric tons of finished product shipped by segment:

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	For the three months ended
	September 30, 2017			September 30, 2016			Change			% Change
Revenues:	(dollars in millions, metric tons in thousands)
North America	$	364.4		$	358.6		$	5.8		2	%
Europe	324.3			304.8			19.5			6
Asia Pacific	32.2			29.2			3.0			10
Intra-entity revenues	(8.1		)	(9.2		)	1.1			(12	)
Consolidated revenues	$	712.8		$	683.4		$	29.4		4	%
Metric tons of finished product shipped:
North America	115.3			127.5			(12.2		)	(10	)%
Europe	78.2			81.5			(3.3		)	(4	)
Asia Pacific	7.1			6.6			0.5			8
Intra-entity shipments	(1.8		)	(1.9		)	0.1			(5	)
Total metric tons of finished product shipped	198.8			213.7			(14.9		)	(7	)%

North America Revenues

North America revenues for the three months ended September 30, 2017 increased $5.8 million compared to the three months ended September 30, 2016. This increase was primarily due to the following:

▪ higher aluminum prices included in the invoiced price of products sold increased revenues approximately $31.0 million; and

▪ improved rolling margins increased revenues approximately $3.0 million.

These increases were partially offset by a 10% reduction in volumes that decreased revenues approximately $27.0 million. Building and construction volumes decreased 13%, resulting from uneven demand and because prior year volumes benefited from the shipment of delinquent orders following unexpected outages earlier in 2016. Distribution volumes decreased 9% resulting from the extended outage at our Lewisport facility. Subsequent to the outage, which included an unprecedented 60 day standstill of the facility’s hot mill, the Lewisport facility has begun to ship autobody sheet and wide non-autobody sheet to customers using the re-engineered hot mill as well as the new wide cold mill and the first of two continuous annealing lines.

Europe Revenues

Europe revenues for the three months ended September 30, 2017 increased $19.5 million compared to the three months ended September 30, 2016. This increase was primarily due to the following:

▪ higher aluminum prices included in the invoiced price of products sold increased revenues approximately $36.0 million;

▪ a weaker average U.S. dollar favorably impacted the translation of euro-based revenues approximately $11.0 million; and

▪ improved rolling margins increased revenue approximately $1.0 million.

These increases were partially offset by a 4% reduction in volumes that reduced revenues approximately $28.0 million. Continued supply chain destocking resulted in a 16% decrease in aerospace volumes and a shift in program timing led to a 5% decrease in automotive volumes. These decreases were partially offset by a 6% increase in heat exchanger volumes.

Asia Pacific Revenues

Asia Pacific revenues for the three months ended September 30, 2017 increased $3.0 million compared to the three months ended September 30, 2016 primarily due to an increase in volumes and higher aluminum prices included in the invoiced price of products sold, partially offset by lower rolling margins.

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Segment Income and Gross Profit

For the three months ended September 30, 2017 and 2016, segment income and our reconciliation of segment income to gross profit are presented below:

	For the three months ended
	September 30, 2017			September 30, 2016			Change			% Change
Segment income:	(dollars in millions)
North America	$	19.9		$	18.1		$	1.8		10	%
Europe	28.4			40.7			(12.3		)	(30	)
Asia Pacific	4.3			2.8			1.5			54
Total segment income	52.6			61.6			(9.0		)	(15	)
Items excluded from segment income and included in gross profit:
Depreciation	(27.8		)	(23.1		)	(4.7		)	20
Start-up costs	(13.3		)	—			(13.3		)	*
Items included in segment income and excluded from gross profit:
Segment selling, general and administrative expenses	28.5			26.8			1.7			6
Realized (losses) gains on derivative financial instruments	(3.6		)	9.0			(12.6		)	(140	)
Other	1.2			(1.5		)	2.7			(180	)
Gross profit	$	37.6		$	72.8		$	(35.2	)	(48	)%

* Result is not meaningful.

North America Segment Income

North America segment income for the three months ended September 30, 2017 increased $1.8 million compared to the three months ended September 30, 2016. The increase was primarily due to the following:

▪ favorable scrap spreads resulting from rising aluminum prices and improved scrap availability increased segment income approximately $4.0 million;

▪ improved rolling margins increased segment income approximately $3.0 million; and

▪ productivity gains resulting from improved operating performance offset $4.0 million of wage inflation and higher natural gas costs.

These increases were offset by the following:

▪ lower volumes decreased segment income approximately $4.0 million; and    

▪ an unfavorable change in metal price lag compared to the prior year period decreased segment income approximately $1.5 million.

Europe Segment Income

Europe segment income for the three months ended September 30, 2017 decreased $12.3 million compared to the three months ended September 30, 2016. The decrease was primarily due to the following:

▪ lower volumes decreased segment income approximately $5.0 million;

▪ higher costs for hardeners used in the production of aluminum alloys and an increase in externally purchased aluminum slab decreased segment income approximately $3.0 million;

▪ productivity gains, which were limited due to lower volumes, were unable to offset wage inflation, resulting in decreased segment income of approximately $2.0 million; and

▪ unfavorable currency translation decreased segment income approximately $1.0 million.

These decreases were partially offset by the following:

▪ improved rolling margins increased segment income approximately $1.0 million; and

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▪ a favorable change in metal price lag compared to the prior year period increased segment income approximately $1.0 million.

Asia Pacific Segment Income

Asia Pacific segment income for the three months ended September 30, 2017 increased $1.5 million compared to the three months ended September 30, 2016. This increase was primarily due to the higher volumes and productivity gains from continued strong operational performance partially offset by lower rolling margins.

Nine Months Ended September 30, 2017 Compared to the Nine Months Ended September 30, 2016

Revenues for the nine months ended September 30, 2017 increased $112.3 million when compared to the prior year period. The higher average aluminum prices included in our invoiced prices increased revenues approximately $175.0 million and improved rolling margins increased revenue approximately $5.0 million. These increases were partially offset by lower volumes that decreased revenue by approximately $71.0 million. In Europe, aerospace, automotive and regional plate and sheet volume decreases of 11%, 5% and 5%, respectively, were partially offset by an improved mix of plate and sheet products sold. In North America, distribution and building and construction volume decreases of 10% and 2%, respectively, were partially offset by an improved mix of painted products sold. North America distribution volumes were significantly impacted by the extended Lewisport outage. In addition, a stronger average U.S. dollar negatively impacted the translation of our euro-based revenues, reducing revenues by approximately $3.0 million.

The following table presents the estimated impact of key factors that resulted in the 5% increase in our consolidated revenues from the first nine months of 2016 to the first nine months of 2017:

	North America					Europe					Asia Pacific					Consolidated
	$			%		$			%		$			%		$			%
	(dollars in millions)
LME / aluminum pass-through	$	96.0		9	%	$	74.0		8	%	$	5.0		7	%	$	175.0		9	%
Commercial price	9.0			1		—			—		(4.0		)	(5	)	5.0			—
Volume / mix	(35.0		)	(3	)	(45.0		)	(5	)	9.0			12		(71.0		)	(3	)
Currency	—			—		(2.0		)	—		(1.0		)	(1	)	(3.0		)	—
Other	4.7			—		1.3			—		2.4			3		8.4			—
Total	$	74.7		7	%	$	28.3		3	%	$	11.4		15	%	$	114.4		6
Intra-entity revenues																(2.1		)	(1	)
Total																$	112.3		5

Gross profit for the nine months endedSeptember 30, 2017 was $208.3 million compared to $224.9 million for the nine months endedSeptember 30, 2016. Metal price lag had an estimated $0.2 million unfavorable impact on gross profit for the nine months endedSeptember 30, 2017 compared to the nine months endedSeptember 30, 2016. The unfavorable impact from metal price lag excludes the realized gains and losses on metal derivative financial instruments, which are classified separately on the Consolidated Statements of Comprehensive Loss.

The following table presents the estimated impact of metal price lag on our Consolidated Statements of Comprehensive Loss for the nine months ended September 30, 2017 and 2016:

		For the nine months ended
		September 30, 2017			September 30, 2016			Change
Location in consolidated statements of comprehensive loss		(dollars in millions)
Gross profit	Favorable metal price lag	$	24.6		$	24.8		$	(0.2	)
Losses on derivative financial instruments	Realized losses on metal derivatives	(28.2		)	(25.4		)	(2.8		)
	Unfavorable metal price lag net of realized derivative losses	$	(3.6	)	$	(0.6	)	$	(3.0	)

In addition, gross profit was impacted by increased start-up costs, primarily attributable to the North America ABS Project, of $23.0 million as well as wage inflation, higher natural gas and repair and maintenance costs, and increased investment in research and development, that decreased gross profit approximately $6.0 million. Lower volumes also decreased

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gross profit approximately $2.0 million and depreciation expense increased $4.5 million, as assets related to the North America ABS Project were placed in service. These decreases to gross profit were partially offset by favorable metal spreads, resulting from higher aluminum prices and improved scrap availability that increased gross profit approximately $12.0 million and improved rolling margins that increased gross profit approximately $5.0 million.

Selling, general and administrative expenses were $153.6 million for the nine months endedSeptember 30, 2017 as compared to $159.3 million for the nine months endedSeptember 30, 2016. The $5.7 million decrease included:

• a $6.6 million decrease in professional fees and travel expenses;

• a $3.7 million decrease in stock-based compensation expense as certain equity awards became fully expensed; and

• a $1.5 million decrease in depreciation and amortization expense resulting from certain assets becoming fully depreciated.

These decreases were partially offset by higher labor costs of $6.9 million related to increased incentive compensation expense and wage inflation.

During the nine months endedSeptember 30, 2017 and 2016, we recorded realized losses on derivative financial instruments of $29.0 million and $26.4 million, respectively, and unrealized losses (gains) of $1.5 million and $(23.6) million, respectively. Generally, our realized gains or losses represent the cash paid or received upon settlement of our derivative financial instruments. Unrealized gains or losses reflect the change in the fair value of derivative financial instruments from the later of the end of the prior period or our entering into the derivative instrument as well as the reversal of previously recorded unrealized gains or losses for derivatives that settled during the period.

Net interest expense increased $32.0 million resulting from the issuance of $550.0 million of 9½% Senior Secured Notes in the second quarter of 2016 and $250.0 million of 9½% Senior Secured Notes in the first quarter of 2017 and a decrease in capitalized interest.

Other expense decreased $0.2 million from the prior year period. In 2016, a $12.6 million loss on extinguishment of debt was partially offset by $8.7 million of gains resulting from the resolution of vendor disputes. In addition, currency exchange rate changes resulted in $3.3 million of losses in the prior year and $8.3 million of losses in the current year. These currency exchange rate losses are primarily related to the remeasurement of U.S. dollar working capital and debt balances in Europe.

Our effective tax rates were (32.1)% and (515.1)% for the nine months endedSeptember 30, 2017 and 2016, respectively. The effective tax rate for the nine months endedSeptember 30, 2017 and 2016 differed from the federal statutory rate applied to income and losses before income taxes primarily as a result of the mix of income, losses and tax rates between tax jurisdictions and valuation allowances.

Loss from discontinued operations, net of tax for the nine months ended September 30, 2016 included an incremental loss on sale of $4.6 million related to our estimate of costs related to the indemnification of the buyer of the recycling and specification alloys business for certain potential future damages.

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The following table presents key financial and operating data on a consolidated basis for the nine months endedSeptember 30, 2017 and 2016:

	For the nine months ended
	September 30, 2017			September 30, 2016			Change			% Change
	(dollars in millions)
Revenues	$	2,163.2		$	2,050.9		$	112.3		5	%
Cost of sales	1,954.9			1,826.0			128.9			7
Gross profit	208.3			224.9			(16.6		)	(7	)
Gross profit as a percentage of revenues	9.6		%	11.0		%	(1.4		)%	(13	)
Selling, general and administrative expenses	153.6			159.3			(5.7		)	(4	)
Restructuring charges	2.1			1.8			0.3			17
Losses on derivative financial instruments	30.6			2.8			27.8			993
Other operating expense, net	4.0			2.5			1.5			60
Operating income	18.0			58.5			(40.5		)	(69	)
Interest expense, net	90.4			58.4			32.0			55
Other expense, net	5.8			6.0			(0.2		)	(3	)
Loss before income taxes	(78.2		)	(5.9		)	(72.3		)	1,225
Provision for income taxes	25.1			30.5			(5.4		)	(18	)
Loss from continuing operations	(103.3		)	(36.4		)	(66.9		)	184
Loss from discontinued operations, net of tax	—			(4.6		)	4.6			*
Net loss	$	(103.3	)	$	(41.0	)	$	(62.3	)	152	%
Total segment income	$	186.9		$	189.8		$	(2.9	)	(2	)%
Depreciation and amortization	(82.0		)	(78.8		)	(3.2		)	4
Other corporate general and administrative expenses	(32.1		)	(39.5		)	7.4			(19	)
Restructuring charges	(2.1		)	(1.8		)	(0.3		)	17
Interest expense, net	(90.4		)	(58.4		)	(32.0		)	55
Unallocated (losses) gains on derivative financial instruments	(1.0		)	23.7			(24.7		)	(104	)
Unallocated currency exchange losses	(3.7		)	(1.2		)	(2.5		)	208
Start-up costs	(52.6		)	(30.4		)	(22.2		)	73
Loss on extinguishment of debt	—			(12.6		)	12.6			*
Other (expense) income, net	(1.2		)	3.3			(4.5		)	(136	)
Loss before income taxes	$	(78.2	)	$	(5.9	)	$	(72.3	)	1,225	%

Segment Revenues and Shipments

The following tables present revenues and metric tons of finished product shipped by segment:

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	For the nine months ended
	September 30, 2017			September 30, 2016			Change			% Change
Revenues:	(dollars in millions, metric tons in thousands)
North America	$	1,129.0		$	1,054.3		$	74.7		7	%
Europe	969.2			940.9			28.3			3
Asia Pacific	87.1			75.7			11.4			15
Intra-entity revenues	(22.1		)	(20.0		)	(2.1		)	11
Consolidated revenues	$	2,163.2		$	2,050.9		$	112.3		5	%
Metric tons of finished product shipped:
North America	361.9			376.7			(14.8		)	(4	)%
Europe	240.4			250.9			(10.5		)	(4	)
Asia Pacific	19.4			16.9			2.5			15
Intra-entity shipments	(4.5		)	(4.5		)	—			—
Total metric tons of finished product shipped	617.2			640.0			(22.8		)	(4	)%

North America Revenues

North America revenues for the nine months endedSeptember 30, 2017 increased $74.7 million compared to the nine months endedSeptember 30, 2016. This increase was primarily due to the following:

• higher aluminum prices included in the invoiced price of products sold increased revenues approximately $96.0 million; and

• improved rolling margins increased revenues approximately $9.0 million.

These increases were partially offset by lower volumes that decreased revenues approximately $35.0 million. Distribution volumes decreased 10% as a result of the extended outage at our Lewisport facility. In addition, the impact of a 2% decrease in building and construction volumes was partially offset by an improved mix of painted products sold.

Europe Revenues

Europe revenues for the nine months endedSeptember 30, 2017 increased $28.3 million compared to the nine months endedSeptember 30, 2016. This increase was primarily due to higher aluminum prices included in the invoiced price of products sold that increased revenues approximately $74.0 million.

This increase was partially offset by the following:

▪ lower volumes decreased revenue approximately $45.0 million. Supply chain destocking resulted in an 11% decrease in aerospace volumes, a shift in program timing led to a 5% decrease in automotive volumes and uncertainty due to rising aluminum prices led to a 5% decrease in regional plate and sheet volumes; and

▪ a weaker average U.S. dollar decreased revenues approximately $2.0 million.

Asia Pacific Revenues

Asia Pacific revenues for the nine months endedSeptember 30, 2017 increased $11.4 million compared to the nine months endedSeptember 30, 2016 primarily due to an increase in volumes and higher aluminum prices included in the invoiced price of products sold, partially offset by lower rolling margins.

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Segment Income and Gross Profit

For the nine months endedSeptember 30, 2017 and 2016, segment income and our reconciliation of segment income to gross profit are presented below:

	For the nine months ended
	September 30, 2017			September 30, 2016			Change			% Change
Segment income:	(dollars in millions)
North America	$	75.2		$	69.8		$	5.4		8	%
Europe	101.7			113.8			(12.1		)	(11	)
Asia Pacific	10.0			6.2			3.8			61
Total segment income	186.9			189.8			(2.9		)	(2	)
Items excluded from segment income and included in gross profit:
Depreciation	(74.5		)	(69.9		)	(4.6		)	7
Start-up costs	(23.8		)	(1.0		)	(22.8		)	2,280
Other	0.9			0.2			0.7			350
Items included in segment income and excluded from gross profit:
Segment selling, general and administrative expenses	85.2			81.2			4.0			5
Realized losses on derivative financial instruments	29.5			26.5			3.0			11
Other	4.1			(1.9		)	6.0			(316	)
Gross profit	$	208.3		$	224.9		$	(16.6	)	(7	)%

* Result is not meaningful.

North America Segment Income

North America segment income for the nine months endedSeptember 30, 2017 increased $5.4 million compared to the nine months endedSeptember 30, 2016. This increase was primarily due to the following:

• favorable scrap spreads resulting from rising aluminum prices and improved scrap availability increased segment income approximately $14.0 million; and

• improved rolling margins increased segment income approximately $9.0 million.

These increases were partially offset by the following:

▪ an unfavorable change in metal price lag compared to the prior year period decreased segment income approximately $8.5 million;

▪ increased labor, natural gas and repair and maintenance costs, partially offset by favorable productivity, decreased segment income approximately $7.0 million; and

▪ a decrease in volumes decreased segment income approximately $3.0 million.

Europe Segment Income

Europe segment income for the nine months endedSeptember 30, 2017 decreased $12.1 million compared to the nine months endedSeptember 30, 2016. This decrease was primarily due to the following:

▪ increased labor and natural gas costs as well as additional investments in research and development activities, partially offset by favorable productivity, decreased segment income approximately $7.0 million;

▪ lower volumes decreased segment income approximately $3.0 million;

▪ higher costs for hardeners and an increase in externally purchased slab decreased segment income approximately $2.0 million; and

▪ unfavorable currency translation decreased segment income approximately $1.0 million.

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These decreases were partially offset by a favorable change in metal price lag compared to the prior year period that increased segment income approximately $3.6 million.

Asia Pacific Segment Income

Asia Pacific segment income for the nine months endedSeptember 30, 2017 increased $3.8 million compared to the nine months endedSeptember 30, 2016. This increase was primarily due to the ongoing improvement in the mix of products sold toward higher aerospace volumes and productivity improvements offset by lower rolling margins.

Liquidity and Capital Resources

Based on our current and anticipated levels of operations and the condition in the industries we serve, we believe that our cash on hand, cash flows from operations and availability under the 2015 ABL Facility will enable us to meet our working capital, capital expenditures, debt service and other funding requirements for the foreseeable future. However, our ability to fund our working capital needs, debt payments and other obligations, and to comply with the covenants under our indebtedness, including borrowing base limitations under the 2015 ABL Facility and borrowing restrictions under the Senior Notes (as defined below), depends on our future operating performance and cash flows and many factors outside of our control, including the costs of raw materials, our ability to access the capital and credit markets, the state of the overall industry and financial and economic conditions and other factors, including those described under Item 1A. – “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016. Any future investments, acquisitions, joint ventures or other similar transactions will likely require additional capital and there can be no assurance that any such capital will be available to us on acceptable terms, if at all.

On February 14, 2017, Aleris International issued an additional $250.0 million aggregate principal amount of its 9½% Senior Secured Notes due 2021. The Company initially issued $550.0 million aggregate principal amount of 9½% Senior Secured Notes due 2021 on April 4, 2016, which remain outstanding. The additional notes were issued under the 9½% Senior Secured Notes Indenture (as defined below). The Company received net proceeds of approximately $263.8 million from the issuance of the additional notes. These proceeds are being used for general corporate purposes, which may include working capital and/or capital expenditures.

The following discussion provides a summary description of the significant components of our sources of liquidity and long-term debt:

Cash Flows

The following table summarizes our net cash (used) provided by operating, investing and financing activities for the nine months endedSeptember 30, 2017 and 2016.

	For the nine months ended
	September 30, 2017			September 30, 2016
Net cash (used) provided by:	(in millions)
Operating activities	$	(32.5	)	$	46.6
Investing activities	(177.4		)	(296.9		)
Financing activities	226.8			224.1

Cash Flows from Operating Activities

Cash flows used by operating activities were $32.5 million for the nine months endedSeptember 30, 2017, which resulted from $6.8 million of cash from earnings and a $39.3 million use of cash related to an increase in net operating assets. The significant components of the change in net operating assets included increases of $60.2 million, $53.0 million, $35.8 million and $31.9 million in accounts receivable, inventory, accounts payable and accrued liabilities, respectively. The increases in accounts receivable and accounts payable were due primarily to increased seasonal sales volume. While our average days sales outstanding (“DSO”) for the twelve months ended September 30, 2017 remained consistent with the average DSO for the year ended December 31, 2016, revenues in the month of September 2017 were approximately $73.9 million higher than the month of December 2016, leading to an increase in accounts receivable. Our average days payables outstanding (“DPO”) for the twelve months ended September 30, 2017 remained consistent with the average DPO for the year ended December 31, 2016. The increase in inventory was primarily due to an increase in aluminum prices. Our average days inventory outstanding (“DIO”) for the twelve months ended September 30, 2017 increased from the average DIO for the year ended December 31, 2016 due to the rising aluminum prices as well as lower shipment volumes and the strategic build of inventory in North America in preparation for the production outage at our Lewisport facility. The increase in accrued liabilities was primarily due

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to increased accrued interest, resulting from the additional 9½% Senior Secured Notes issued during the year as well as the timing of interest payments.

Cash flows provided by operating activities were $46.6 million for the nine months ended September 30, 2016, which resulted from $60.6 million of cash from earnings and a $14.0 million use of cash related to an increase in net operating assets. The significant components of the change in net operating assets included increases of $60.2 million, $9.5 million, $47.2 million and $7.8 million in accounts receivable, inventory, accounts payable and accrued liabilities, respectively. The increases in accounts receivable and accounts payable were due primarily to increased seasonal sales volume. While our average DSO for the twelve months ended September 30, 2016 remained consistent with the average DSO for the year ended December 31, 2015, revenues in the month of September 2016 were approximately $60.8 million higher than the month of December 2015, leading to an increase in accounts receivable. Our average DPO for the twelve months ended September 30, 2016 remained consistent with the average DPO for the year ended December 31, 2015. While our average DIO for the twelve months ended September 30, 2016 remained consistent with the average DIO for the year ended December 31, 2015, higher aluminum prices and seasonal increase in production resulted in the increase in inventory. The increase in accrued liabilities is due primarily to accrued interest on the 9 ½% Senior Secured Notes.

Cash Flows from Investing Activities

Cash flows used by investing activities were $177.4 million for the nine months endedSeptember 30, 2017, and included $174.9 million of capital expenditures, primarily resulting from the North America ABS Project and related non-ABS equipment upgrades at our Lewisport facility.

Cash flows used by investing activities were $296.9 million for the nine months endedSeptember 30, 2016, and included $295.7 million of capital expenditures, primarily resulting from capital expenditures on the North America ABS Project and related non-ABS equipment upgrades at our Lewisport facility.

Cash Flows from Financing Activities

Cash flows provided by financing activities were $226.8 million for the nine months endedSeptember 30, 2017, which resulted from net cash proceeds of $263.8 million from the issuance of additional 9½% Senior Secured Notes. These proceeds were partially offset by $19.5 million of payments on the China Loan Facility (as defined below), net cash repayments of $11.5 million on borrowings against the 2015 ABL Facility and $2.5 million of debt issuance costs related to the issuance of the additional 9½% Senior Secured Notes.

Cash flows provided by financing activities were $224.1 million for the nine months ended September 30, 2016, which resulted from cash proceeds of $540.4 million from the 9 ½% Senior Secured Notes, net of discount and net cash proceeds of $140.1 million from borrowings on the 2015 ABL Facility. These cash proceeds were partially offset by the completion of the Tender Offer and Redemption for the 7 ⁵/8% Senior Notes, which totaled $443.8 million, including the payment of accrued interest, applicable premiums and related fees and expenses, and $3.5 million of debt issuance costs related to the 9 ½% Senior Secured Notes.

Description of Indebtedness

2015 ABL Facility

On June 15, 2015, Aleris International entered into a credit agreement, as amended and supplemented from time to time, providing for a $600.0 million asset-based revolving credit facility (the “2015 ABL Facility”) which permits multi-currency borrowings up to $600.0 million by Aleris International and its U.S. subsidiaries and up to a combined $300.0 million by Aleris Switzerland GmbH, a wholly owned Swiss subsidiary, Aleris Aluminum Duffel BVBA, a wholly owned Belgian subsidiary, Aleris Rolled Products Germany GmbH, a wholly owned German subsidiary and, upon its accession to the credit agreement, Aleris Casthouse Germany GmbH, a wholly owned German subsidiary (but limited to $600.0 million in total). The availability of funds to the borrowers located in each jurisdiction is subject to a borrowing base for that jurisdiction and the jurisdictions in which certain subsidiaries of such borrowers are located. Both the borrowing base and the 2015 ABL Facility utilization may fluctuate on a monthly basis. Our borrowing base may also fluctuate due to, in part, seasonal working capital increases and increased aluminum prices. The 2015 ABL Facility contains, in the aggregate, a $45.0 million sublimit for swingline loans and also provides for the issuance of up to $125.0 million of letters of credit. The credit agreement provides that commitments under the 2015 ABL Facility may be increased at any time by an additional $300.0 million, subject to certain conditions.

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As of September 30, 2017, we estimate that Aleris International had $205.5 million available for borrowing under the 2015 ABL Facility.

9½% Senior Secured Notes due 2021

On April 4, 2016, Aleris International issued $550.0 million aggregate principal amount of its 9½% Senior Secured Notes and related guarantees in a private offering under Rule 144A and Regulation S of the Securities Act of 1933, as amended. The 9½% Senior Secured Notes were issued under an indenture (as amended and supplemented from time to time, the “9½% Senior Secured Notes Indenture”), dated as of April 4, 2016, among Aleris International, the guarantors named therein and U.S. Bank National Association, as trustee and collateral agent. The 9½% Senior Secured Notes are unconditionally guaranteed on a senior secured basis by us and each of our restricted subsidiaries that are domestic subsidiaries and that guarantees Aleris International’s obligations under the 2015 ABL Facility.

On February 14, 2017, Aleris International issued an additional $250.0 million aggregate principal amount of its 9½% Senior Secured Notes pursuant to the 9½% Senior Secured Notes Indenture. These additional notes, together with the initial notes, are treated as a single series of debt securities for all purposes under the 9½% Senior Secured Notes Indenture, including, without limitation, waivers, amendments, redemptions and offers to purchase.

As of September 30, 2017, Aleris International had $800.0 million aggregate principal amount of 9½% Senior Secured Notes outstanding.

The 9½% Senior Secured Notes are secured by a first-priority lien on substantially all of Aleris International’s and the guarantors’ owned and material U.S. real property, equipment and intellectual property and stock of Aleris International and the guarantors (other than Aleris Corporation) and other subsidiaries (including 100% of the outstanding non-voting stock (if any) and 65% of the outstanding voting stock of certain “first-tier” foreign subsidiaries and certain “first-tier” foreign subsidiary holding companies), but subject to permitted liens and excluding (i) inventory, accounts receivable, deposit accounts and related assets, which assets secure the 2015 ABL Facility on a first-priority basis, (ii) the assets associated with our Lewisport, Kentucky facility and (iii) certain other excluded assets.

Subject to certain limitations and exceptions, the 9½% Senior Secured Notes Indenture contains covenants limiting the ability of Aleris International and its restricted subsidiaries to, among other things: incur additional debt; pay dividends or distributions on Aleris International’s capital stock or redeem, repurchase or retire Aleris International’s capital stock or subordinated debt; issue preferred stock of restricted subsidiaries; make certain investments; create liens on Aleris International’s or its subsidiary guarantors’ assets to secure debt; enter into sale and leaseback transactions; create restrictions on the payment of dividends or other amounts to Aleris International from Aleris International’s restricted subsidiaries that are not guarantors of the 9½% Senior Secured Notes; enter into transactions with affiliates; merge or consolidate with another company; and sell assets, including capital stock of Aleris International’s subsidiaries. The 9½% Senior Secured Notes Indenture also contains customary events of default. Aleris International was in compliance with all covenants set forth in the 9½ % Senior Secured Notes Indenture as of September 30, 2017.

7⁷/8% Senior Notes due 2020

On October 23, 2012, Aleris International issued $500.0 million of its 7⁷/8% Senior Notes and related guarantees under an indenture (as amended and supplemented from time to time, the “7⁷/8% Senior Notes Indenture”), dated as of October 23, 2012, among Aleris International, the guarantors named therein and U.S. Bank National Association, as trustee. On January 31, 2013, Aleris International exchanged the $500.0 million aggregate original principal amount of its 7⁷/8% Senior Notes for $500.0 million of its new 7⁷/8% Senior Notes that have been registered under the Securities Act of 1933, as amended (the “7⁷/8% Senior Notes” and, together with the 9 ½% Senior Secured Notes, the “Senior Notes”). The 7⁷/8% Senior Notes are unconditionally guaranteed on a senior unsecured basis by us and each of our restricted subsidiaries that are domestic subsidiaries and that guarantees Aleris International’s obligations under the 2015 ABL Facility. On September 8, 2015, Aleris International purchased $59.9 million aggregate principal amount of the 7⁷/8% Senior Notes pursuant to an asset sale offer. As of September 30, 2017, Aleris International had $440.1 million aggregate principal amount of 7⁷/8% Senior Notes outstanding.

Subject to certain limitations and exceptions, the 7⁷/8% Senior Notes Indenture contains covenants limiting the ability of Aleris International and its restricted subsidiaries to, among other things: incur additional debt; pay dividends or distributions on Aleris International’s capital stock or redeem, repurchase or retire Aleris International’s capital stock or subordinated debt; issue preferred stock of restricted subsidiaries; make certain investments; create liens on Aleris International’s or its subsidiary

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guarantors’ assets to secure debt; enter into sale and leaseback transactions; create restrictions on the payment of dividends or other amounts to Aleris International from Aleris International’s restricted subsidiaries that are not guarantors of the 7⁷/8% Senior Notes; enter into transactions with affiliates; merge or consolidate with another company; and sell assets, including capital stock of Aleris International’s subsidiaries. The 7⁷/8% Senior Notes Indenture also contains customary events of default. Aleris International was in compliance with all covenants set forth in the 7⁷/8% Senior Notes Indenture as of September 30, 2017.

Exchangeable Notes

Aleris International issued $45.0 million aggregate principal amount of 6% senior subordinated exchangeable notes (the “Exchangeable Notes”) in June 2010. The Exchangeable Notes are scheduled to mature on June 1, 2020. The Exchangeable Notes have exchange rights at the holder’s option and are exchangeable at any time for our common stock at a rate equivalent to 59.63 shares of our common stock per $1,000 principal amount of the Exchangeable Notes (after adjustment for the payments of dividends in 2011 and 2013), subject to further adjustment. The Exchangeable Notes may currently be redeemed at Aleris International’s option at specified redemption prices.

China Loan Facility

Our wholly owned subsidiary, Aleris Aluminum (Zhenjiang) Co., Ltd. (“Aleris Zhenjiang”) maintains a loan agreement comprised of non-recourse multi-currency secured term loan facilities and a revolving facility (collectively, as amended and supplemented from time to time, the “China Loan Facility”). The China Loan Facility consists of a $30.6 million U.S. dollar term loan facility, an RMB 909.8 million (or equivalent to approximately $136.7 million as of September 30, 2017) term loan facility (collectively referred to as the “Zhenjiang Term Loans”) and an RMB 410.0 million (or equivalent to approximately $61.6 million as of September 30, 2017) revolving facility that provides Aleris Zhenjiang with a working capital line of credit (referred to as the “Zhenjiang Revolver”). The Zhenjiang Revolver has certain restrictions that impact the term and the source of repayment for amounts drawn which have limited our ability to borrow funds on the Zhenjiang Revolver and will continue to limit our ability to borrow funds in the future. Although the final maturity date for all borrowings under the Zhenjiang Revolver is May 18, 2021, we expect to repay the amounts outstanding under the Zhenjiang Revolver in 2017. The interest rate on the U.S. term dollar facility is six month U.S. dollar LIBOR plus 5.0% and the interest rate on the RMB term facility and the Zhenjiang Revolver is 110% of the base rate applicable to any loan denominated in RMB of the same tenor, as announced by the People’s Bank of China. As of September 30, 2017, $167.3 million was outstanding on the Zhenjiang Term Loans and $6.7 million was drawn on the Zhenjiang Revolver. After giving effect to amendments to the Zhenjiang Term Loans, the final maturity date for all borrowings under the Zhenjiang Term Loans is May 16, 2024. The repayment of borrowings under the Zhenjiang Term Loans are due semi-annually. The semi-annual repayment in 2017 will be RMB 11.9 million (equivalent to approximately $1.8 million as of September 30, 2017) and will increase to RMB 252.5 million (equivalent to approximately $38.0 million as of September 30, 2017) by 2024.

The China Loan Facility contains certain customary covenants and events of default. The China Loan Facility requires Aleris Zhenjiang to, among other things, maintain a certain ratio of outstanding term loans to invested equity capital. In addition, Aleris Zhenjiang is restricted from, subject to certain exceptions, repaying loans or distributing dividends to stockholders, disposing of assets, providing third party guarantees, or entering into additional financing to expand the capacity of the project, among other things.

Aleris Zhenjiang was in compliance with all of the covenants set forth in the China Loan Facility as of September 30, 2017. Aleris Zhenjiang has had delays in its ability to make timely draws of amounts committed under the China Loan Facility in the past and we cannot be certain that Aleris Zhenjiang will be able to draw all amounts committed under the Zhenjiang Revolver in the future or as to the timing or cost of any such draws.

Non-GAAP Financial Measures

We report our financial results in accordance with GAAP. However, our management believes that certain non-GAAP performance measures, which we use in managing the business, may provide investors with additional meaningful comparisons between current results and results in prior periods. EBITDA, Adjusted EBITDA, segment Adjusted EBITDA and commercial margin are examples of non-GAAP financial measures that we believe provide investors and other users of our financial information with useful information.

Management uses EBITDA, Adjusted EBITDA, segment Adjusted EBITDA and commercial margin as performance metrics and believes these measures provide additional information commonly used by holders of the Senior Notes and parties

41

to the 2015 ABL Facility with respect to the ongoing performance of our underlying business activities, as well as our ability to meet our future debt service, capital expenditures and working capital needs. In addition, EBITDA with certain adjustments is a component of certain covenants under the indentures governing the Senior Notes. Adjusted EBITDA, including the impacts of metal price lag, is a component of certain financial covenants under the credit agreement governing the 2015 ABL Facility. Management also uses commercial margin as a performance metric and believes that it provides useful information regarding the performance of our segments because it measures the price at which we sell our aluminum products above the hedged cost of the metal and the effects of metal price lag, thereby reflecting the value-added components of our commercial activities independent of aluminum prices which we cannot control.

Our EBITDA calculations represent net income and loss attributable to Aleris Corporation before interest income and expense, provision for and benefit from income taxes, depreciation and amortization and income from discontinued operations, net of tax. Adjusted EBITDA is defined as EBITDA excluding metal price lag, unrealized gains and losses on derivative financial instruments, restructuring charges, the impact of recording assets at fair value through purchase accounting, currency exchange gains and losses on debt, stock-based compensation expense, start-up costs, and certain other gains and losses. Segment Adjusted EBITDA represents Adjusted EBITDA on a per segment basis. EBITDA as defined in the indentures governing the Senior Notes also limits the amount of adjustments for cost savings, operational improvement and synergies for the purpose of determining our compliance with such covenants. Adjusted EBITDA as defined under the 2015 ABL Facility also limits the amount of adjustments for restructuring charges and requires additional adjustments be made if certain annual pension funding levels are exceeded. Commercial margin represents revenues less the hedged cost of metal and the effects of metal price lag.

EBITDA, Adjusted EBITDA, segment Adjusted EBITDA and commercial margin (collectively, the “Non-GAAP Financial Measures”), as we use them may not be comparable to similarly titled measures used by other companies. We calculate the Non-GAAP Financial Measures by eliminating the impact of a number of items we do not consider indicative of our ongoing operating performance and certain other items. You are encouraged to evaluate each adjustment and the reasons we consider it appropriate for supplemental analysis. However, the Non-GAAP Financial Measures are not financial measurements recognized under GAAP, and when analyzing our operating performance, investors should use the Non-GAAP Financial Measures in addition to, and not as an alternative for, net income and loss attributable to Aleris Corporation, operating income and loss, or any other performance measure derived in accordance with GAAP, or in addition to, and not as an alternative for, cash flow from operating activities as a measure of our liquidity. The Non-GAAP Financial Measures have limitations as analytical tools, and they should not be considered in isolation, or as a substitute for, or superior to, our measures of financial performance prepared in accordance with GAAP. These limitations include:

▪ They do not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;

▪ They do not reflect changes in, or cash requirements for, working capital needs;

▪ They do not reflect interest expense or cash requirements necessary to service interest expense or principal payments under the 2015 ABL Facility, the Senior Notes or the Exchangeable Notes;

▪ They do not reflect certain tax payments that may represent a reduction in cash available to us;

▪ Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and EBITDA and Adjusted EBITDA, including segment Adjusted EBITDA, do not reflect cash requirements for such replacements; and

▪ Other companies, including companies in our industry, may calculate these measures differently and, as the number of differences in the way companies calculate these measures increases, the degree of their usefulness as a comparative measure correspondingly decreases.

In addition, in evaluating Adjusted EBITDA, including segment Adjusted EBITDA, we may incur expenses in the future that are similar to the adjustments in the below presentation. Our presentation of Adjusted EBITDA, including segment Adjusted EBITDA, should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.

For reconciliations of EBITDA, Adjusted EBITDA and commercial margin to their most directly comparable financial measures presented in accordance with GAAP, see the tables below. For a reconciliation of segment Adjusted EBITDA to segment income and a reconciliation of commercial margin to revenues, which are the most directly comparable financial

42

measures presented in accordance with GAAP, for the North America, Europe and Asia Pacific segments, see the reconciliations in “–Our Segments.”

For the three and nine months endedSeptember 30, 2017 and 2016, our reconciliation of Adjusted EBITDA to net loss and net cash provided (used) by operating activities is presented below.

	For the three months ended						For the nine months ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
	(in millions)
Adjusted EBITDA	$	45.5		$	53.3		$	163.7		$	162.3
Unrealized (losses) gains on derivative financial instruments	(18.8		)	8.8			(1.5		)	23.6
Restructuring charges	(0.9		)	(0.3		)	(2.1		)	(1.8		)
Unallocated currency exchange losses on debt	(1.8		)	(0.4		)	(3.1		)	(1.0		)
Stock-based compensation expense	(0.4		)	(1.8		)	(1.5		)	(5.2		)
Start-up costs	(22.8		)	(14.1		)	(52.6		)	(30.4		)
Unfavorable metal price lag	(1.0		)	(1.2		)	(3.6		)	(0.6		)
Loss on extinguishment of debt	—			—			—			(12.6		)
Other	(1.4		)	(3.6		)	(5.1		)	(3.0		)
EBITDA	(1.6		)	40.7			94.2			131.3
Interest expense, net	(32.0		)	(19.2		)	(90.4		)	(58.4		)
Provision for income taxes	(1.6		)	(12.3		)	(25.1		)	(30.5		)
Depreciation and amortization	(30.5		)	(26.2		)	(82.0		)	(78.8		)
Loss from discontinued operations, net of tax	—			(4.6		)	—			(4.6		)
Net loss	(65.7		)	(21.6		)	(103.3		)	(41.0		)
Depreciation and amortization	30.5			26.2			82.0			78.8
(Benefit from) provision for deferred income taxes	(0.5		)	7.3			13.9			15.3
Stock-based compensation expense	0.4			1.8			1.5			5.2
Unrealized losses (gains) on derivative financial instruments	18.8			(8.8		)	1.5			(23.6		)
Amortization of debt issuance costs	0.7			1.4			2.1			4.3
Loss on extinguishment of debt	—			—			—			12.6
Net loss on sale of discontinued operations	—			4.6			—			4.6
Other	4.2			1.7			9.1			4.4
Change in operating assets and liabilities:
Change in accounts receivable	7.6			(6.9		)	(60.2		)	(60.2		)
Change in inventories	5.3			(13.3		)	(53.0		)	(9.5		)
Change in other assets	0.2			(2.7		)	6.2			0.7
Change in accounts payable	11.5			1.1			35.8			47.2
Change in accrued liabilities	29.5			11.3			31.9			7.8
Net cash provided (used) by operating activities	$	42.5		$	2.1		$	(32.5	)	$	46.6

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For the three and nine months endedSeptember 30, 2017 and 2016, our reconciliation of revenues to commercial margin is as follows:

	For the three months ended						For the nine months ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
	(in millions)
Revenues	$	712.8		$	683.4		$	2,163.2		$	2,050.9
Hedged cost of metal	(425.2		)	(382.1		)	(1,258.7		)	(1,142.0		)
Unfavorable metal price lag	1.0			1.2			3.6			0.6
Commercial margin	$	288.6		$	302.5		$	908.1		$	909.5

Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with GAAP requires our management to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including, among others, those related to the valuation of inventory, property and equipment and intangible assets, allowances related to doubtful accounts, income taxes, pensions and other postretirement benefits and environmental liabilities. Our management bases its estimates on historical experience, actuarial valuations and other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates.

A summary of our significant accounting policies and estimates is included in our Form 10-K filed with the Securities and Exchange Commission on March 3, 2017 for the year ended December 31, 2016. There have been no significant changes to our critical accounting policies or estimates during the nine months endedSeptember 30, 2017.

Off-Balance Sheet Transactions

We had no off-balance sheet arrangements at September 30, 2017.

Forward-Looking Statements

This Form 10-Q contains forward-looking statements that are based on current expectations, estimates, forecasts and projections about us and the industry in which we operate and beliefs and assumptions made by our management. Statements contained in this document that are not historical in nature are considered to be forward-looking statements. They include statements regarding our expectations, hopes, beliefs, estimates, intentions or strategies regarding the future. Statements regarding the Merger, future costs and prices of commodities, production volumes, industry trends, anticipated cost savings, anticipated benefits from new products, facilities, acquisitions or divestitures, projected results of operations, achievement of production efficiencies, capacity expansions, future prices and demand for our products, and estimated cash flows and sufficiency of cash flows to fund capital expenditures and debt obligations are forward-looking statements. The words “may,” “could,” “would,” “should,” “will,” “believe,” “expect,” “anticipate,” “plan,” “estimate,” “target,” “project,” “look forward to,” “intend” and similar expressions are intended to identify forward-looking statements.

Forward-looking statements should be read in conjunction with the cautionary statements and other important factors included in this document under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” which include descriptions of important factors which could cause actual results to differ materially from those contained in the forward-looking statements. Our expectations, beliefs and projections are expressed in good faith, and we believe we have a reasonable basis to make these statements through our management’s examination of historical operating trends, data contained in our records and other data available from third parties, but there can be no assurance that our management’s expectations, beliefs or projections will result or be achieved.

Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in or implied by any forward-looking statement. Important factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to:

• our ability to successfully implement our business strategy;

• the success of past and future acquisitions or divestitures;

44

• the cyclical nature of the aluminum industry, material adverse changes in the aluminum industry or our end-uses, such as global and regional supply and demand conditions for aluminum and aluminum products, and changes in our customers’ industries;

• increases in the cost, or limited availability, of raw materials and energy;

• our ability to enter into effective metal, energy and other commodity derivatives or arrangements with customers to manage effectively our exposure to commodity price fluctuations and changes in the pricing of metals, especially LME-based aluminum prices;

• our ability to generate sufficient cash flows to fund our capital expenditure requirements and to meet our debt obligations;

• competitor pricing activity, competition of aluminum with alternative materials and the general impact of competition in the industry end-uses we serve;

• our ability to retain the services of certain members of our management;

• the loss of order volumes from any of our largest customers;

• our ability to retain customers, a substantial number of whom do not have long-term contractual arrangements with us;

• our ability to fulfill our substantial capital investment requirements;

• risks of investing in and conducting operations on a global basis, including political, social, economic, currency and regulatory factors;

• variability in general economic conditions on a global or regional basis;

• current environmental liabilities and the cost of compliance with and liabilities under health and safety laws;

• labor relations (i.e., disruptions, strikes or work stoppages) and labor costs;

• our internal controls over financial reporting and our disclosure controls and procedures may not prevent all possible errors that could occur;

• our levels of indebtedness and debt service obligations, including changes in our credit ratings, material increases in our cost of borrowing or the failure of financial institutions to fulfill their commitments to us under committed facilities;

• our ability to access credit or capital markets;

• the possibility that we may incur additional indebtedness in the future;

• limitations on operating our business as a result of covenant restrictions under our indebtedness, and our ability to pay amounts due under the Senior Notes; and

• risks related to the Merger, including the possibility that the Merger may not be consummated or that, if the Merger does close, our stockholders may not realize the anticipated benefits from the Merger.

The above list is not exhaustive. Some of these factors and additional risks, uncertainties and other factors that may cause our actual results, performance or achievements to be different from those expressed or implied in our written or oral forward-looking statements may be found in our public filings with the Securities and Exchange Commission, including the sections entitled “Risk Factors” included therein and herein.

These factors and such other risk factors are not necessarily all of the important factors that could cause our actual results to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors could also harm our results. Consequently, there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, us. Given these uncertainties, you are cautioned not to place undue reliance on such forward-looking statements.

The forward-looking statements included in this document are made only as of the date of this document. Except to the extent required by law, we do not undertake, and specifically decline any obligation, to update any forward-looking statements or to publicly announce the results of any revisions to any of such statements to reflect future events or developments.

Website Posting

We use our investor website (investor.aleris.com) as a channel of distribution of Company information. The information we post through this channel may be deemed material. Accordingly, investors should monitor this channel, in addition to following our press releases, Securities and Exchange Commission ("SEC") filings, and public conference calls and webcasts. The content of our website is not, however, a part of this report.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk.

In the ordinary course of our business, we are exposed to earnings and cash flow volatility resulting from changes in the prices of aluminum, and, to a lesser extent, hardeners, such as zinc and copper, and natural gas and other fuels, as well as changes in currency and interest rates. For metal hedges, we use derivative instruments, such as forwards, futures, options, collars and swaps to manage the effect, both favorable and unfavorable, of such changes. For electricity and some natural gas price exposures, fixed price commitments are used.

Derivative contracts are used primarily to reduce uncertainty and volatility and cover underlying exposures and are held for purposes other than trading. Our commodity and derivative activities are subject to the management, direction and control of our Risk Management Committee, which is composed of our Chief Financial Officer and other officers and employees that the Chief Executive Officer designates. The Risk Management Committee reports to the Audit Committee of our Board of Directors, which has supervisory authority over all of its activities.

We are exposed to losses in the event of non-performance by the counterparties to the derivative contracts discussed below. Although non-performance by counterparties is possible, we do not currently anticipate any nonperformance by any of these parties. Counterparties are evaluated for creditworthiness and risk assessment prior to our initiating contract activities. The counterparties’ creditworthiness is then monitored on an ongoing basis, and credit levels are reviewed to ensure that there is not an inappropriate concentration of credit outstanding to any particular counterparty.

Metal Hedging

Aluminum ingots, copper and zinc are internationally produced, priced and traded commodities, with the LME being the primary exchange. As part of our efforts to preserve margins, we enter into forward, futures and options contracts. For accounting purposes, we do not consider our metal derivative instruments as hedges and, as a result, changes in the fair value of these derivatives are recorded immediately in our consolidated operating results.

The selling prices of the majority of the orders for our products are established at the time of order entry or, for certain customers, under long-term contracts. As the related raw materials used to produce these orders can be purchased several months or years after the selling prices are fixed, margins are subject to the risk of changes in the purchase price of the raw materials used for these fixed price sales. In order to manage this transactional exposure, futures, swaps or forward purchase contracts are purchased at the time the selling prices are fixed. As metal is purchased to fill these fixed price sales orders, futures, swaps or forward contracts are then sold.

We also maintain a significant amount of inventory on-hand to meet anticipated and unpriced future sales. In order to preserve the value of this inventory, futures or forward contracts are sold at the time inventory is purchased. As sales orders are priced, futures or forwards contracts are purchased. These derivatives generally settle within three months.

We can also use call option contracts, which function in a manner similar to the natural gas call option contracts discussed below, and put option contracts for managing metal price exposures. Option contracts require the payment of a premium which is recorded as a realized loss upon settlement or expiration of the option contract. Upon settlement of a put option contract, we receive cash and recognize a related gain if the closing price is less than the strike price of the put option. If the put option strike price is less than the closing price, no amount is paid and the option expires. As of September 30, 2017 we had 0.1 million metric tons and 0.2 million metric tons of metal buy and metal sell derivative contracts, respectively. As of December 31, 2016, we had 0.1 million metric tons of metal buy derivatives contracts and 0.2 million metric tons of metal sell derivative contracts.

Energy Hedging

To manage the price exposure for natural gas purchases, we can fix the future price of a portion or all of our natural gas requirements by entering into financial hedge contracts. Additionally, to mitigate the impact of the volatility of diesel fuel prices on our freight costs, we can enter into diesel fuel swaps with financial counterparties. We do not consider our natural gas or diesel fuel derivative instruments as hedges for accounting purposes and as a result, changes in the fair value of these derivatives are recorded immediately in our consolidated operating results.

Under our natural gas derivative contracts, payments are made or received based on the differential between the monthly closing price on the New York Mercantile Exchange (“NYMEX”) and the contractual hedge price. We can also use a combination of call option contracts and put option contracts for managing the exposure to increasing natural gas prices while

46

maintaining the benefit from declining prices. Upon settlement of call option contracts, we receive cash and recognize a related gain if the NYMEX closing price exceeds the strike price of the call option. If the call option strike price exceeds the NYMEX closing price, no amount is received and the option expires unexercised. Upon settlement of a put option contract, we pay cash and recognize a related loss if the NYMEX closing price is lower than the strike price of the put option. If the put option strike price is less than the NYMEX closing price, no amount is paid and the option expires unexercised. Option contracts require the payment of a premium which is recorded as a realized loss upon settlement or expiration of the option contract. Natural gas cost can also be managed through the use of cost escalators included in some of our long-term supply contracts with customers, which limits exposure to natural gas price risk. As of September 30, 2017 and December 31, 2016, we had 0.5 trillion and 2.1 trillion of British thermal unit forward buy contracts, respectively.

Under our over-the-counter DOE (as defined below) diesel fuel swaps, we pay a fixed price per gallon of diesel fuel determined at the time the agreements are executed and receive a floating rate payment that is determined on a monthly basis based on the Department of Energy, Energy Information Administration’s (“DOE”) Weekly Retail Automotive Diesel National Average Price during the applicable month. The swaps are designed to offset increases or decreases in fuel surcharges that we pay to our carriers. All swaps are financially settled. There is no possibility of physical settlement. As of September 30, 2017 we had 1.0 million diesel swap contracts outstanding. We had no diesel swap contracts outstanding as of December 31, 2016.

Currency Hedging and Exchange Risks

The financial condition and results of operations of some of our operating entities are reported in various currencies and then translated into U.S. dollars at the applicable exchange rate for inclusion in our unaudited consolidated financial statements. As a result, appreciation of the U.S. dollar against these currencies will have a negative impact on reported revenues and operating profit, while depreciation of the U.S. dollar against these currencies will generally have a positive effect on reported revenues and operating profit. In addition, our aerospace and heat exchanger businesses expose the U.S. dollar operating results of our European operations to fluctuations in the euro as sales contracts are generally in U.S. dollars while the costs of production are in euros. As a result, appreciation in the U.S. dollar will have a positive impact on earnings while depreciation of the U.S. dollar will have a negative impact on earnings. In order to mitigate the risk that fluctuations in the euro may have on our business we have entered into forward currency contracts. As of September 30, 2017 and December 31, 2016, we had euro forward contracts covering a notional amount of €54.8 million and €34.6 million, respectively.

Interest Rate Risks

As of September 30, 2017, approximately 76% of our debt obligations were at fixed rates. We are subject to interest rate risk related to the 2015 ABL Facility and China Loan Facility, to the extent borrowings are outstanding under these facilities. As of September 30, 2017, Aleris International had $245.0 million of borrowings under the 2015 ABL Facility and Aleris Zhenjiang had $167.3 million of borrowings under the Zhenjiang Term Loans and $6.7 million of borrowings under the Zhenjiang Revolver. Due to the fixed-rate nature of the majority of our debt, there would not be a significant impact on our interest expense or cash flows from either a 10% increase or decrease in market rates of interest.

Fair Values and Sensitivity Analysis

The following table shows the fair values of outstanding derivative contracts at September 30, 2017 and the effect on the fair value of a hypothetical adverse change in the market prices that existed at September 30, 2017:

				Impact of
(in millions)	Fair			10% Adverse
Derivative	Value			Price Change
Metal	$	(6.3	)	$	(25.5	)
Energy	0.1			(0.4		)
Currency	0.7			(6.6		)

The disclosures above do not take into account the underlying commitments or anticipated transactions. If the underlying items were included in the analysis, the gains or losses on our derivative instruments would be offset by gains and losses realized on the purchase of the physical commodities. Actual results will be determined by a number of factors outside of our control and could vary significantly from the amounts disclosed. For additional information on derivative financial instruments,

47

see Note 11, “Derivative and Other Financial Instruments,” to our unaudited consolidated financial statements included elsewhere in this report on Form 10-Q.

Item 4. Controls and Procedures.

Disclosure Controls and Procedures

During the fiscal period covered by this report, the Company’s management, with the participation of the Chief Executive Officer and Chief Financial Officer, completed an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”)). Based upon this evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the fiscal period covered by this report, the disclosure controls and procedures were effective to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the Securities and Exchange Commission’s rules and forms and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures.

Changes in Internal Control Over Financial Reporting

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There were no changes in internal control over financial reporting during the fiscal third quarter ended September 30, 2017 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings.

We are party from time to time to what we believe are routine litigation and proceedings considered part of the ordinary course of our business. We believe that the outcome of such existing proceedings would not have a material adverse effect on our financial position, results of operations or cash flows. 

Item 1A. Risk Factors.

There have been no material changes to the risk factors included in the Risk Factors section in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016.

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

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

  None.

Item 5. Other Information.

None.

Item 6. Exhibits.

Exhibit Number	Description
31.1*	Rule 13a-14(a)/15d-14(a) Certification of Aleris Corporation’s Chief Executive Officer.
31.2*	Rule 13a-14(a)/15d-14(a) Certification of Aleris Corporation’s Chief Financial Officer.
32.1*	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
*101.INS	XBRL Instance Document
*101.SCH	XBRL Taxonomy Extension Schema
*101.CAL	XBRL Taxonomy Extension Calculation Linkbase
*101.DEF	XBRL Taxonomy Extension Definition Linkbase
*101.LAB	XBRL Taxonomy Extension Label Linkbase
*101.PRE	XBRL Taxonomy Extension Presentation Linkbase

* Filed herewith

49

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.

		ALERIS CORPORATION
Date:	November 9, 2017	By:	/s/    ERIC M. RYCHEL
		Name:	Eric M. Rychel
		Title:	Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer)

50

EX-31.1

Exhibit 31.1

CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Sean M. Stack, certify that:

1.  I have reviewed this Quarterly Report on Form 10-Q for the period ended September 30, 2017 of Aleris 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.

Date:	November 9, 2017		/s/ Sean M. Stack
		Name:	Sean M. Stack
		Title:	Chairman and Chief Executive Officer (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Eric M. Rychel, certify that:

1.  I have reviewed this Quarterly Report on Form 10-Q for the period ended September 30, 2017 of Aleris 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.

Date:	November 9, 2017		/s/ Eric M. Rychel
		Name:	Eric M. Rychel
		Title:	Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

AND CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Aleris Corporation (the “Company”) on Form 10-Q for the period ended September 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Sean M. Stack, Chairman and Chief Executive Officer of the Company, and Eric M. Rychel, Executive Vice President, Chief Financial Officer and Treasurer of the Company, each hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to his knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

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

Date:	November 9, 2017	/s/ Sean M. Stack
		Sean M. Stack
		Chairman and Chief Executive Officer (Principal Executive Officer)
Date:	November 9, 2017	/s/ Eric M. Rychel
		Eric M. Rychel
		Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer)

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Document And Entity Information	9 Months Ended
	Sep. 30, 2017 shares
Document And Entity Information [Abstract]
Entity Registrant Name	Aleris Corporation
Entity Central Index Key	0001518587
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding	31,998,284

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Consolidated Balance Sheet - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Current Assets
Cash and cash equivalents	$ 71.9	$ 55.6
Accounts receivable (net of allowances of $6.6 and $7.6 at September 30, 2017 and December 31, 2016, respectively)	297.7	218.7
Inventories	620.7	538.9
Prepaid expenses and other current assets	39.5	33.4
Total Current Assets	1,029.8	846.6
Property, plant and equipment, net	1,467.0	1,346.0
Intangible assets, net	35.2	36.8
Deferred income taxes	91.9	88.3
Other long-term assets	69.9	72.2
Total Assets	2,693.8	2,389.9
Current Liabilities
Accounts payable	297.1	246.6
Accrued liabilities	215.4	201.4
Current portion of long-term debt	15.6	27.7
Total Current Liabilities	528.1	475.7
Long-term debt	1,694.4	1,438.5
Deferred income taxes	17.1	2.8
Accrued pension benefits	171.6	158.4
Accrued postretirement benefits	32.9	34.2
Other long-term liabilities	66.5	63.7
Total Long-Term Liabilities	1,982.5	1,697.6
Stockholders’ Equity
Common stock; par value $.01; 45,000,000 shares authorized and 31,998,284 and 31,904,250 shares issued at September 30, 2017 and December 31, 2016, respectively	0.3	0.3
Preferred stock; par value $.01; 1,000,000 shares authorized; none issued	0.0	0.0
Additional paid-in capital	428.2	428.0
Retained (deficit) earnings	(96.1)	11.8
Accumulated other comprehensive loss	(149.2)	(223.5)
Total Equity	183.2	216.6
Total Liabilities and Equity	$ 2,693.8	$ 2,389.9

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Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 6.6	$ 7.6
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	45,000,000	45,000,000
Common stock, shares issued	31,998,284	31,904,250
Common stock, shares outstanding	31,998,284	31,904,250
Redeemable preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Redeemable preferred stock, shares authorized	1,000,000	1,000,000
Redeemable preferred stock, shares issued	0	0

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Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Revenues	$ 712.8	$ 683.4	$ 2,163.2	$ 2,050.9
Cost of sales	675.2	610.6	1,954.9	1,826.0
Gross profit	37.6	72.8	208.3	224.9
Selling, general and administrative expenses	49.5	58.8	153.6	159.3
Restructuring charges	0.9	0.3	2.1	1.8
Losses on derivative financial instruments	14.9	0.2	30.6	2.8
Other operating expense, net	2.0	1.0	4.0	2.5
Operating (loss) income	(29.7)	12.5	18.0	58.5
Interest expense, net	32.0	19.2	90.4	58.4
Other expense (income), net	2.4	(2.0)	5.8	6.0
Loss before income taxes	(64.1)	(4.7)	(78.2)	(5.9)
Provision for income taxes	1.6	12.3	25.1	30.5
(Loss) income from continuing operations	(65.7)	(17.0)	(103.3)	(36.4)
Loss from discontinued operations, net of tax	0.0	(4.6)	0.0	(4.6)
Net loss	(65.7)	(21.6)	(103.3)	(41.0)
Comprehensive loss	$ (40.9)	$ (15.8)	$ (29.0)	$ (29.0)

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Consolidated Statements Of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Operating activities
Net loss	$ (103.3)	$ (41.0)
Adjustments to reconcile net loss to net cash (used) provided by operating activities:
Depreciation and amortization	82.0	78.8
Provision for deferred income taxes	13.9	15.3
Stock-based compensation expense	1.5	5.2
Unrealized losses (gains) on derivative financial instruments	1.5	(23.6)
Amortization of debt issuance costs	2.1	4.3
Loss on extinguishment of debt	0.0	12.6
Gain (Loss) on Disposition of Business	0.0	(4.6)
Other	9.1	4.4
Changes in operating assets and liabilities:
Change in accounts receivable	(60.2)	(60.2)
Change in inventories	(53.0)	(9.5)
Change in other assets	6.2	0.7
Change in accounts payable	35.8	47.2
Change in accrued liabilities	31.9	7.8
Net cash (used) provided by operating activities	(32.5)	46.6
Investing activities
Payments for property, plant and equipment	(174.9)	(295.7)
Other	(2.5)	(1.2)
Net cash used by investing activities	(177.4)	(296.9)
Financing activities
Proceeds from revolving credit facilities	401.7	200.1
Payments on revolving credit facilities	(429.2)	(61.7)
Proceeds from senior secured notes, inclusive of premiums and discounts	263.8	540.4
Payments on senior notes, including premiums	0.0	(443.8)
Net payments on other long-term debt	(5.5)	(6.7)
Debt issuance costs	(2.5)	(3.5)
Other	(1.5)	(0.7)
Net cash provided by financing activities	226.8	224.1
Effect of exchange rate differences on cash, cash equivalents and restricted cash	3.0	0.5
Net increase (decrease) in cash, cash equivalents and restricted cash	19.9	(25.7)
Cash, cash equivalents and restricted cash at beginning of period	55.6	62.2
Cash, cash equivalents and restricted cash at end of period	75.5	36.5
Cash and cash equivalents	71.9	36.5
Cash, cash equivalents and restricted cash	$ 55.6	$ 62.2

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Basis Of Presentation and Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis Of Presentation and Recent Accounting Pronouncements

BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS

Basis of Presentation

The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The operating results for interim periods contained herein are not necessarily indicative of the results that may be expected for any other interim period or for the full year. The accompanying Consolidated Financial Statements include the accounts of Aleris Corporation and all of its subsidiaries (collectively, except where the context otherwise requires, referred to as “Aleris,” “we,” “us,” “our,” “Company” or similar terms). Aleris Corporation is a holding company and currently conducts its business and operations through its direct wholly owned subsidiary, Aleris International, Inc. and its consolidated subsidiaries. Aleris International, Inc. is referred to herein as “Aleris International.”

Recent Accounting Pronouncements

In March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” (“ASU 2017-07”). This guidance requires the presentation of all components of net periodic benefit cost other than service costs outside of operating income. Only the service cost component will be included in operating income and eligible for capitalization in assets. The guidance is effective for the Company for fiscal years beginning after December 15, 2017, and will be applied retrospectively. We estimate that upon adoption, approximately $3.2 and $2.8 of pension and postretirement benefit expense will be reclassified from operating income to non-operating income for the years ended December 31, 2017 and 2016, respectively.    

In November 2016, the FASB issued ASU No. 2016-18, “Restricted Cash” (“ASU 2016-18”). This guidance requires companies to show the changes in the total cash, cash equivalents and restricted cash in the statement of cash flows. We adopted ASU 2016-18 in the first quarter of 2017. The adoption of this guidance resulted in the updated presentation of restricted cash in our current period Consolidated Statements of Cash Flows. As there was no restricted cash in the prior year, the adoption of this guidance had no effect on the prior year presentation of cash flows.

In October 2016, the FASB issued ASU No. 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory” (“ASU 2016-16”). This guidance requires companies to account for the income tax effects of intercompany transfers of assets other than inventory when the transfer occurs. The income tax effects of intercompany inventory transactions will continue to be deferred. We early adopted ASU 2016-16 in the first quarter of 2017. The impact of adopting this guidance on the Company’s Consolidated Financial Statements resulted in credits to prepaid expenses and other current assets and other comprehensive income of approximately $8.2 and $0.1, respectively, and debits to deferred income tax assets and retained earnings of approximately $3.6 and $4.7, respectively, as of the date of adoption.

In March 2016, the FASB issued ASU No. 2016-09, “Compensation-Stock Compensation-Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). This guidance makes several modifications to the accounting for stock-based compensation, including forfeitures, employer tax withholding on stock-based compensation and the financial statement presentation of excess tax benefits or deficiencies. ASU 2016-09 also clarifies the statement of cash flows presentation for certain components of stock-based awards. We adopted ASU 2016-09 in the first quarter of 2017. The tax effects associated with stock-based compensation are now recorded through the income statement. Additionally, forfeitures will now be recognized as they occur. Prior periods have not been adjusted.

In February 2016, the FASB issued ASU No. 2016-02, “Leases” (“ASU 2016-02”). This guidance requires lessees to put most leases on their balance sheets but recognize expense on the income statement in a manner similar to current guidance. The guidance is effective for the Company for fiscal years beginning after December 15, 2018, and a modified retrospective approach is required for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. We are currently evaluating the impact the application of ASU 2016-02 will have on the Company’s Consolidated Financial Statements. We expect that the adoption will result in an increase to our long-term assets and long-term liabilities as a result of substantially all operating leases existing as of the adoption date being capitalized along with the associated obligations.

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which was the result of a joint project by the FASB and International Accounting Standards Board to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards. Subsequent accounting standard updates have been issued which amend and/or clarify the application of ASU 2014-09. The issuance of a comprehensive and converged standard on revenue recognition is expected to enable financial statement users to better understand and consistently analyze an entity’s revenue across industries, transactions and geographies. The standard will require additional disclosures to help financial statement users better understand the nature, amount, timing, and potential uncertainty of the revenue that is recognized. ASU 2014-09 will be effective for the Company on January 1, 2018, and will require either retrospective application to each prior reporting period presented or retrospective application with the cumulative effect of initially applying the standard recognized at the date of adoption (the “modified retrospective approach”). The Company has developed a project plan to guide the implementation of the standard. The project plan includes analyzing the Company’s customer contracts, identifying revenue streams, drafting an updated accounting policy and evaluating new disclosure requirements. In addition, the Company is identifying and implementing appropriate changes to its business processes and controls to support recognition and disclosure under the new guidance. In evaluating the impact of the standard, management has concluded that control may have transferred on some of the inventory held on consignment at customer locations or in third party warehouses. Subsequent to adoption of the standard, revenue may be recognized when such inventory is delivered into consignment. We held $29.3 of inventory in consignment at September 30, 2017, and revenue on a portion of such inventory may be included in the transition adjustment recorded upon adoption of the standard. We continue to evaluate other impacts this guidance will have on the Company’s Consolidated Financial Statements. We expect to adopt this standard using the modified retrospective approach and anticipate that the adoption will result in an increase to the revenue disclosures in our financial statements.

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Inventories

9 Months Ended

Sep. 30, 2017

Inventory Disclosure [Abstract]

Inventories

INVENTORIES

The components of our “Inventories” as of September 30, 2017 and December 31, 2016 are as follows:

	September 30, 2017		December 31, 2016
Raw materials	$	189.1	$	181.7
Work in process	232.8		195.4
Finished goods	167.3		134.0
Supplies	31.5		27.8
Total inventories	$	620.7	$	538.9

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Long-Term Debt

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Long-Term Debt

LONG-TERM DEBT

Our debt as of September 30, 2017 and December 31, 2016 is summarized as follows:

	September 30, 2017		December 31, 2016
2015 ABL Facility	$	245.0	$	255.3
7 7/8% Senior Notes due 2020, net of discount and deferred issuance costs of $3.6 and $4.5 at September 30, 2017 and December 31, 2016, respectively	436.4		435.5
9 1/2% Senior Secured Notes due 2021, inclusive of net premiums and deferred issuance costs of $0.8 at September 30, 2017 and net of discount and deferred issuance costs of $11.6 at December 31, 2016	800.8		538.4
Exchangeable Notes, net of discount of $0.3 and $0.4 at September 30, 2017 and December 31, 2016, respectively	44.5		44.4
Zhenjiang Term Loans, net of discount of $0.5 at September 30, 2017 and December 31, 2016	166.8		164.5
Zhenjiang Revolver, net of discount of $0.1 at September 30, 2017 and December 31, 2016	6.6		22.0
Other	9.9		6.1
Total debt	1,710.0		1,466.2
Less: Current portion of long-term debt	15.6		27.7
Total long-term debt	$	1,694.4	$	1,438.5

9 ½% Senior Secured Notes due 2021

On February 14, 2017, Aleris International issued an additional $250.0 aggregate principal amount of its 9½% Senior Secured Notes due 2021. The Company initially issued $550.0 aggregate principal amount of 9½% Senior Secured Notes due 2021 on April 4, 2016, which remain outstanding. The additional notes were issued under the indenture governing the previously issued 9½% Senior Secured Notes. The Company received net proceeds of approximately $263.8, after deducting the initial purchasers’ discount, from the issuance of the additional notes. These proceeds are being used for general corporate purposes, which may include working capital and/or capital expenditures.

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Commitments And Contingencies

9 Months Ended

Sep. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

Environmental Proceedings

Our operations are subject to environmental laws and regulations governing air emissions, wastewater discharges, the handling, storage, disposal and remediation of hazardous substances and wastes and employee health and safety. These laws can impose joint and several liability for releases or threatened releases of hazardous substances upon statutorily defined parties, including us, regardless of fault or the lawfulness of the original activity or disposal. Given the changing nature of environmental legal requirements, we may be required, from time to time, to take environmental control measures at some of our facilities to meet future requirements.

We have been named as a potentially responsible party in certain proceedings initiated pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act and similar state statutes and may be named a potentially responsible party in other similar proceedings in the future. It is not anticipated that the costs incurred in connection with the presently pending proceedings will, individually or in the aggregate, have a material adverse effect on our financial position, results of operations or cash flows.

We are performing operations and maintenance at two Superfund sites for matters arising out of past waste disposal activity associated with closed facilities. We are also under orders to perform environmental remediation by agencies in four states and one non-U.S. country at seven sites.

Our reserves for environmental remediation liabilities totaled $23.5 and $23.8 at September 30, 2017 and December 31, 2016, respectively, and have been classified as “Other long-term liabilities” and “Accrued liabilities” in the Consolidated Balance Sheet. Of the environmental liabilities recorded at September 30, 2017 and December 31, 2016, $11.4 and $11.5, respectively, are subject to indemnification by third parties.

In addition to environmental liabilities, we have recorded asset retirement obligations associated with legal requirements related to the retirement of certain assets. Our total asset retirement obligations were $5.6 and $4.7 at September 30, 2017 and December 31, 2016, respectively. The amounts represent the most probable costs of remedial actions. We estimate the costs related to currently identified remedial actions will be paid out primarily over the next 10 years.

Legal Proceedings

We are party to routine litigation and proceedings as part of the ordinary course of business and do not believe that the outcome of any existing proceedings would have a material adverse effect on our financial position, results of operations or cash flows. We have established accruals for those loss contingencies, including litigation and environmental contingencies, for which it has been determined that a loss is probable; none of such loss contingencies is material. For those loss contingencies, including litigation and environmental contingencies, which have been determined to be reasonably possible, an estimate of the possible loss or range of loss cannot be determined because the claims, amount claimed, facts or legal status are not sufficiently developed or advanced in order to make such a determination. While we cannot estimate the loss or range of loss at this time, we do not believe that the outcome of any of these existing proceedings would be material to our financial position, results of operations or cash flows.

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Stockholders' Equity

9 Months Ended

Sep. 30, 2017

Stockholders' Equity Note [Abstract]

Stockholders' Equity

STOCKHOLDERS’ EQUITY

The following table summarizes the activity within stockholders’ equity for the nine months endedSeptember 30, 2017:

	Total Equity
Total equity at January 1, 2017	$	216.6
Net loss	(103.3		)
Other comprehensive income	74.3
Stock-based compensation activity	0.3
Adoption of new accounting standard	(4.7		)
Total equity at September 30, 2017	$	183.2

The following table shows changes in the number of our issued and outstanding shares of common stock:

	Issued and outstanding shares of common stock
Balance at January 1, 2017	31,904,250
Issuance associated with vested restricted stock units	94,034
Balance at September 30, 2017	31,998,284

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Accumulated Other Comprehensive Loss

9 Months Ended

Sep. 30, 2017

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Loss

ACCUMULATED OTHER COMPREHENSIVE LOSS

The following table summarizes the activity within accumulated other comprehensive loss for the nine months endedSeptember 30, 2017:

	Currency translation			Pension and other postretirement			Total
Balance at January 1, 2017	$	(150.9	)	$	(72.6	)	$	(223.5	)
Current period currency translation adjustments	76.0			(4.0		)	72.0
Amortization of net actuarial losses and prior service costs, net of tax	—			2.3			2.3
Balance at September 30, 2017	$	(74.9	)	$	(74.3	)	$	(149.2	)

A summary of reclassifications out of accumulated other comprehensive loss for the nine months endedSeptember 30, 2017 is provided below:

Description of reclassifications out of accumulated other comprehensive loss	Amount reclassified
Amortization of net actuarial losses and prior service costs	$	(3.4	)	(a)
Deferred tax benefit on pension and other postretirement liability adjustments	1.1
Losses reclassified into earnings, net of tax	$	(2.3	)

(a) This component of accumulated other comprehensive loss is included in the computation of net periodic benefit expense and net postretirement benefit expense (see Note 10, “Employee Benefit Plans,” for additional detail).

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Segment Information

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

We report three operating segments based on the organizational structure that is used by the chief operating decision maker to evaluate performance, make decisions on resource allocation and for which discrete financial information is available. The Company’s operating segments are North America, Europe and Asia Pacific.

Measurement of Segment Income or Loss and Segment Assets

The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies in the Consolidated Financial Statements for the year ended December 31, 2016. Our measure of profitability for our operating segments is referred to as segment income and loss. Segment income and loss includes gross profits, segment specific realized gains and losses on derivative financial instruments, segment specific other income and expense, segment specific selling, general and administrative (“SG&A”) expense and an allocation of certain functional SG&A expenses. Segment income and loss excludes provisions for and benefits from income taxes, restructuring items, interest, depreciation and amortization, unrealized and certain realized gains and losses on derivative financial instruments, corporate general and administrative costs, start-up costs, gains and losses on asset sales, currency exchange gains and losses on debt and certain other gains and losses. Intra-entity sales and transfers are recorded at market value. Consolidated cash, restricted cash, net capitalized debt costs, deferred tax assets and assets related to our headquarters offices are not allocated to the segments.

Reportable Segment Information

The following table shows our revenues and segment income for the periods presented in our Consolidated Statements of Comprehensive Loss:

Three months ended September 30, 2017	North America		Europe		Asia Pacific		Intra-entity Revenues			Total
Revenues to external customers	$	364.4	$	318.4	$	30.0				$	712.8
Intra-entity revenues	—		5.9		2.2		$	(8.1	)	—
Total revenues	$	364.4	$	324.3	$	32.2	$	(8.1	)	$	712.8
Segment income	$	19.9	$	28.4	$	4.3				$	52.6
Three months ended September 30, 2016	North America		Europe		Asia Pacific		Intra-entity Revenues			Total
Revenues to external customers	$	358.1	$	297.6	$	27.7				$	683.4
Intra-entity revenues	0.5		7.2		1.5		$	(9.2	)	—
Total revenues	$	358.6	$	304.8	$	29.2	$	(9.2	)	$	683.4
Segment income	$	18.1	$	40.7	$	2.8				$	61.6
Nine months ended September 30, 2017	North America		Europe		Asia Pacific		Intra-entity Revenues			Total
Revenues to external customers	$	1,129.0	$	951.9	$	82.3				$	2,163.2
Intra-entity revenues	—		17.3		4.8		$	(22.1	)	—
Total revenues	$	1,129.0	$	969.2	$	87.1	$	(22.1	)	$	2,163.2
Segment income	$	75.2	$	101.7	$	10.0				$	186.9
Nine months ended September 30, 2016	North America		Europe		Asia Pacific		Intra-entity Revenues			Total
Revenues to external customers	$	1,053.2	$	927.0	$	70.7				$	2,050.9
Intra-entity revenues	1.1		13.9		5.0		$	(20.0	)	—
Total revenues	$	1,054.3	$	940.9	$	75.7	$	(20.0	)	$	2,050.9
Segment income	$	69.8	$	113.8	$	6.2				$	189.8

The following table reconciles total segment income to “Loss before income taxes” as reported in our Consolidated Statements of Comprehensive Loss:

	For the three months ended						For the nine months ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
Total segment income	$	52.6		$	61.6		$	186.9		$	189.8
Unallocated amounts:
Depreciation and amortization	(30.5		)	(26.2		)	(82.0		)	(78.8		)
Other corporate general and administrative expenses	(8.9		)	(14.8		)	(32.1		)	(39.5		)
Restructuring charges	(0.9		)	(0.3		)	(2.1		)	(1.8		)
Interest expense, net	(32.0		)	(19.2		)	(90.4		)	(58.4		)
Unallocated (losses) gains on derivative financial instruments	(18.4		)	8.8			(1.0		)	23.7
Unallocated currency exchange losses	(2.0		)	(0.5		)	(3.7		)	(1.2		)
Start-up costs	(22.8		)	(14.1		)	(52.6		)	(30.4		)
Loss on extinguishment of debt	—			—			—			(12.6		)
Other (expense) income, net	(1.2		)	—			(1.2		)	3.3
Loss before income taxes	$	(64.1	)	$	(4.7	)	$	(78.2	)	$	(5.9	)

The following table shows our reportable segment assets as of September 30, 2017 and December 31, 2016:

	September 30, 2017		December 31, 2016
Assets
North America	$	1,327.7	$	1,180.2
Europe	772.5		645.3
Asia Pacific	363.5		358.6
Unallocated assets	230.1		205.8
Total consolidated assets	$	2,693.8	$	2,389.9

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Stock-Based Compensation

9 Months Ended

Sep. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

STOCK-BASED COMPENSATION

On June 1, 2010, the Board of Directors of Aleris Corporation approved the Aleris Corporation 2010 Equity Incentive Plan, which has been amended from time to time (the “2010 Equity Plan”). Stock options, restricted stock units and restricted shares have been granted under the 2010 Equity Plan to certain members of management of the Company and directors. All stock options granted have a life not to exceed ten years and generally vest over a period not to exceed four years. Shares of common stock are issued upon stock option exercises from available shares. The restricted stock units also vest over a period not to exceed four years. A portion of the stock options, as well as a portion of the restricted stock units, may vest upon a change in control event should the event occur prior to full vesting of these awards, depending on the amount of vesting that has already occurred at the time of the event in comparison to the change in our largest stockholders’ overall level of beneficial ownership that results from the event.

During the nine months endedSeptember 30, 2017, no stock options or restricted stock units were granted and 33,157 stock options were forfeited. We recorded stock-based compensation expense of $0.4 and $1.5 for the three and nine months endedSeptember 30, 2017, respectively, and $1.8 and $5.2 for the three and nine months endedSeptember 30, 2016, respectively.

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Income Taxes

9 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The effective tax rates for the three and nine months endedSeptember 30, 2017 and 2016 differed from the federal statutory rate applied to income and losses before income taxes primarily as a result of the mix of income, losses and tax rates between tax jurisdictions and valuation allowances.

We have valuation allowances recorded to reduce certain deferred tax assets to amounts that are more likely than not to be realized. The valuation allowances relate to the potential inability to realize our deferred tax assets associated with amortization and net operating loss carryforwards in the U.S. and net operating loss carryforwards in non-U.S. jurisdictions. We intend to maintain our valuation allowances until sufficient positive evidence exists (such as cumulative positive earnings and estimated future taxable income) to support their reversal.

As of September 30, 2017, we had $2.7 of unrecognized tax benefits. The majority of the gross unrecognized tax benefits, if recognized, would affect the annual effective tax rate. We recognize interest and penalties related to uncertain tax positions within “Provision for income taxes” in the Consolidated Statements of Comprehensive Loss. As of September 30, 2017, we had approximately $0.8 of accrued interest related to uncertain tax positions.

The 2009 through 2016 tax years remain open to examination. During the fourth quarter of 2013, a non-U.S. taxing jurisdiction commenced an examination of our tax returns for the tax years ended December 31, 2012, 2011, 2010 and 2009 that is anticipated to be completed within six months of the reporting date.

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Employee Benefit Plans

9 Months Ended

Sep. 30, 2017

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

Employee Benefit Plans

EMPLOYEE BENEFIT PLANS

Defined Benefit Pension Plans

The components of the net periodic benefit expense are as follows:

	U.S. pension benefits
	For the three months ended						For the nine months ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
Service cost	$	1.0		$	0.9		$	2.9		$	2.7
Interest cost	1.4			1.5			4.4			4.5
Amortization of net actuarial losses	0.5			0.5			1.4			1.4
Amortization of prior service cost	0.1			0.1			0.2			0.2
Expected return on plan assets	(2.6		)	(2.5		)	(7.7		)	(7.5		)
Net periodic benefit expense	$	0.4		$	0.5		$	1.2		$	1.3

	Non U.S. pension benefits
	For the three months ended				For the nine months ended
	September 30, 2017		September 30, 2016		September 30, 2017		September 30, 2016
Service cost	$	0.9	$	0.5	$	2.7	$	1.5
Interest cost	0.4		0.5		1.3		1.5
Amortization of net actuarial losses	0.7		0.4		2.1		1.2
Net periodic benefit expense	$	2.0	$	1.4	$	6.1	$	4.2

Other Postretirement Benefit Plans

The components of net postretirement benefit expense are as follows:

	For the three months ended					For the nine months ended
	September 30, 2017			September 30, 2016		September 30, 2017			September 30, 2016
Service cost	$	—		$	—	$	0.1		$	0.1
Interest cost	0.3			0.3		0.9			1.0
Amortization of net actuarial gains	(0.1		)	—		(0.4		)	(0.1		)
Net postretirement benefit expense	$	0.2		$	0.3	$	0.6		$	1.0

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Derivative And Other Financial Instruments

9 Months Ended

Sep. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative and Other Financial Instruments

DERIVATIVE AND OTHER FINANCIAL INSTRUMENTS

We use forward contracts and options, as well as contractual price escalators, to reduce the risks associated with our metal, natural gas and other supply requirements, as well as fuel costs and certain currency exposures. Generally, we enter into master netting arrangements with our counterparties and offset net derivative positions with the same counterparties against amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral under those arrangements in our Consolidated Balance Sheet. For classification purposes, we record the net fair value of each type of derivative position that is expected to settle in less than one year with each counterparty as a net current asset or liability and each type of long-term position as a net long-term asset or liability. There was no cash collateral posted at September 30, 2017 or December 31, 2016. The amounts shown in the table below represent the gross amounts of recognized assets and liabilities, the amounts offset in the Consolidated Balance Sheet and the net amounts of assets and liabilities presented therein. As of September 30, 2017 and December 31, 2016, there were no amounts subject to an enforceable master netting arrangement or similar agreement that have not been offset in the Consolidated Balance Sheet.

	Fair Value of Derivatives as of
	September 30, 2017						December 31, 2016
Derivatives by Type	Asset			Liability			Asset			Liability
Metal	$	15.3		$	(21.6	)	$	8.9		$	(12.3	)
Energy	0.2			(0.1		)	0.7			—
Currency	1.2			(0.5		)	—			(2.3		)
Total	16.7			(22.2		)	9.6			(14.6		)
Effect of counterparty netting	(11.7		)	11.7			(6.6		)	6.6
Net derivatives as classified in the balance sheet	$	5.0		$	(10.5	)	$	3.0		$	(8.0	)

The fair value of our derivative financial instruments at September 30, 2017 and December 31, 2016 are recorded in the Consolidated Balance Sheet as follows:

Asset Derivatives	Balance Sheet Location	September 30, 2017		December 31, 2016
Metal	Prepaid expenses and other current assets	$	0.1	$	2.3
	Other long-term assets	3.8		—
Energy	Prepaid expenses and other current assets	0.2		0.7
Currency	Prepaid expenses and other current assets	0.9		—
Total		$	5.0	$	3.0
Liability Derivatives	Balance Sheet Location	September 30, 2017		December 31, 2016
Metal	Accrued liabilities	$	10.3	$	5.1
	Other long-term liabilities	—		0.6
Energy	Accrued liabilities	0.1		—
Currency	Accrued liabilities	—		1.8
	Other long-term liabilities	0.1		0.5
Total		$	10.5	$	8.0

Both realized and unrealized gains and losses on derivative financial instruments are included within “Losses on derivative financial instruments” in the Consolidated Statements of Comprehensive Loss. Realized (gains) and losses on derivative financial instruments totaled the following:

	For the three months ended						For the nine months ended
	September 30, 2017			September 30, 2016			September 30, 2017		September 30, 2016
Metal	$	(3.6	)	$	9.1		$	28.2	$	25.4
Energy	0.3			(0.3		)	0.8		0.6
Currency	(0.6		)	0.2			—		0.4

Metal Hedging

The selling prices of the majority of the orders for our products are established at the time of order entry or, for certain customers, under long-term contracts. As the related raw materials used to produce these orders can be purchased several months or years after the selling prices are fixed, margins are subject to the risk of changes in the purchase price of the raw materials used for these fixed price sales. In order to manage this transactional exposure, future, swaps or forward purchase contracts are purchased at the time the selling prices are fixed. As metal is purchased to fill these fixed price sales orders, future, swaps or forward contracts are then sold. We also maintain a significant amount of inventory on-hand to meet anticipated and unpriced future sales. In order to preserve the value of this inventory, future or forward contracts are sold at the time inventory is purchased. As sales orders are priced, future or forward contracts are purchased. These derivatives generally settle within three months. We can also use call option contracts, which function in a manner similar to the natural gas call option contracts discussed below, and put option contracts for managing metal price exposures. Option contracts require the payment of a premium which is recorded as a realized loss upon settlement or expiration of the option contract. Upon settlement of a put option contract, we receive cash and recognize a related gain if the closing price is less than the strike price of the put option. If the put option strike price is less than the closing price, no amount is paid and the option expires. As of September 30, 2017 we had 0.1 million metric tons and 0.2 million metric tons of metal buy and metal sell derivative contracts, respectively. As of December 31, 2016, we had 0.1 million metric tons of metal buy derivatives contracts and 0.2 million metric tons of metal sell derivative contracts.

Energy Hedging

To manage our price exposure for natural gas purchases, we fix the future price of a portion of our natural gas requirements by entering into financial hedge contracts. Under these contracts, payments are made or received based on the differential between the monthly closing price on the New York Mercantile Exchange (“NYMEX”) and the contractual hedge price. We can also use a combination of call option contracts and put option contracts for managing the exposure to increasing natural gas prices while maintaining our ability to benefit from declining prices. Upon settlement of call option contracts, we receive cash and recognize a related gain if the NYMEX closing price exceeds the strike price of the call option. If the call option strike price exceeds the NYMEX closing price, no amount is received and the option expires unexercised. Upon settlement of a put option contract, we pay cash and recognize a related loss if the NYMEX closing price is lower than the strike price of the put option. If the put option strike price is less than the NYMEX closing price, no amount is paid and the option expires unexercised. Option contracts require the payment of a premium which is recorded as a realized loss upon settlement or expiration of the option contract. Natural gas cost can also be managed through the use of cost escalators included in some of our long-term supply contracts with customers, which limits exposure to natural gas price risk. As of September 30, 2017 and December 31, 2016, we had 0.5 trillion and 2.1 trillion of British thermal unit forward buy contracts, respectively.

We use independent freight carriers to deliver our products. As part of the total freight charge, these carriers include a per mile diesel surcharge based on the Department of Energy, Energy Information Administration’s (“DOE”) Weekly Retail Automotive Diesel National Average Price. From time to time we may enter into over-the-counter DOE diesel fuel swaps with financial counterparties to mitigate the impact of the volatility of diesel fuel prices on our freight costs. Under these swap agreements, we pay a fixed price per gallon of diesel fuel determined at the time the agreements were executed and receive a floating rate payment that is determined on a monthly basis based on the average price of the DOE Diesel Fuel Index during the applicable month. The swaps are designed to offset increases or decreases in fuel surcharges that we pay to our carriers. All swaps are financially settled. There is no possibility of physical settlement. As of September 30, 2017 we had 1.0 million gallons of diesel swap contracts. We had no diesel swap contracts as of December 31, 2016.

Currency Hedging

Our aerospace and heat exchanger businesses expose the U.S. dollar operating results of our European operations to fluctuations in the euro as the sales contracts are generally in U.S. dollars while the costs of production are in euros. In order to mitigate the risk that fluctuations in the euro may have on our business, we have entered into forward currency contracts. As of September 30, 2017 and December 31, 2016, we had euro forward contracts covering a notional amount of €54.8 million and €34.6 million, respectively.

Credit Risk

We are exposed to losses in the event of non-performance by the counterparties to the derivative financial instruments discussed above; however, we do not anticipate any non-performance by the counterparties. The counterparties are evaluated for creditworthiness and risk assessment prior to initiating trading activities with the brokers and periodically throughout each year while actively trading.

Recurring Fair Value Measurements

Derivative contracts are recorded at fair value using quoted market prices and significant other observable inputs. Fair value is defined by FASB Accounting Standards Codification 820, “Fair Value Measurements and Disclosures,” as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3—Inputs that are both significant to the fair value measurement and unobservable.

We endeavor to use the best available information in measuring fair value. Where appropriate, valuations are adjusted for various factors such as liquidity, bid/offer spreads, and credit considerations. Such adjustments are generally based on available market evidence and unobservable inputs. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. As of September 30, 2017 and December 31, 2016, all of our derivative assets and liabilities represent Level 2 fair value measurements.

Other Financial Instruments

The carrying amount, fair values and level in the fair value hierarchy of our other financial instruments at September 30, 2017 and December 31, 2016 are as follows:

	September 30, 2017					December 31, 2016
	Carrying Amount		Fair Value		Level in the Fair Value Hierarchy	Carrying Amount		Fair Value		Level in the Fair Value Hierarchy
Cash and cash equivalents	$	71.9	$	71.9	Level 1	$	55.6	$	55.6	Level 1
Restricted cash	3.6		3.6		Level 1	—		—		N/A
Receivables held in escrow	17.0		18.9		Level 2	17.0		20.6		Level 2
2015 ABL Facility	245.0		245.0		Level 2	255.3		255.3		Level 2
7 7/8% Senior Notes	436.4		439.8		Level 1	435.5		441.7		Level 1
9 ½ % Senior Secured Notes	800.8		853.7		Level 1	538.4		594.0		Level 1
Exchangeable Notes	44.5		81.4		Level 3	44.4		81.4		Level 3
Zhenjiang Term Loans	166.8		167.3		Level 3	164.5		165.0		Level 3
Zhenjiang Revolver	6.6		6.7		Level 3	22.0		22.1		Level 3

The receivables held in escrow include shares of Real Industry, Inc.’s Series B non-participating preferred stock issued to the Company in connection with the 2015 sale of our former North American and European recycling and specification alloys businesses and which have been held in escrow to secure our indemnification obligations under the sale agreement. The fair value was estimated using a lattice model based on the expected time to maturity, cash flows of the preferred stock and an estimated yield using available market data. The principal amount of the 2015 ABL Facility approximates fair value because the interest rate paid is variable and there have been no significant changes in the credit risk of Aleris International subsequent to the borrowings. The fair value of Aleris International’s exchangeable notes was estimated using a binomial lattice pricing model based on the fair value of our common stock, a risk-free interest rate of 1.6% as of September 30, 2017 and December 31, 2016, and expected equity volatility of 43% as of September 30, 2017 and 45% as of December 31, 2016. Expected equity volatility was determined based on historical stock prices and implied and stated volatilities of our peer companies. The fair values of the 7⁷/8% Senior Notes due 2020 (the “7⁷/8% Senior Notes”) and 9 ½% Senior Secured Notes were estimated using market quotations. The principal amount of the Zhenjiang Term Loans and Zhenjiang Revolver approximates fair value because the interest rate paid is variable, is set for periods of six months or less and there have been no significant changes in the credit risk of Aleris Zhenjiang subsequent to the inception of the Zhenjiang Term Loans and Zhenjiang Revolver.

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Potential Acquisition Of Aleris Corporation

9 Months Ended

Sep. 30, 2017

Business Combinations [Abstract]

Potential Acquisition Of Aleris Corporation

POTENTIAL ACQUISITION OF ALERIS CORPORATION

On August 29, 2016, we entered into a definitive agreement to be acquired by Zhongwang USA LLC (“Zhongwang USA”) (the “Merger”). Under the terms of the Merger, Zhongwang USA has agreed to pay approximately $1,110.0 in cash, subject to adjustment, for the equity of Aleris Corporation, and to assume certain of the Company’s outstanding indebtedness. The Merger was unanimously approved by the Board of Directors of Aleris Corporation and is subject to customary regulatory approvals and closing conditions. The Merger is not subject to a financing condition. There can be no assurance that the Merger will be consummated at all. For additional information, see “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Basis of Presentation” in this report.

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Condensed Consolidating Financial Statements

9 Months Ended

Sep. 30, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Financial Statements

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

Aleris Corporation, the direct parent of Aleris International, and certain of its subsidiaries (collectively, the “Guarantor Subsidiaries”) are guarantors of the indebtedness under the 7 ⁷/8% Senior Notes. Aleris Corporation and each of the Guarantor Subsidiaries have fully and unconditionally guaranteed (subject, in the case of the Guarantor Subsidiaries, to customary release provisions as described below), on a joint and several basis, to pay principal and interest related to the 7 ⁷/8% Senior Notes and Aleris International and each of the Guarantor Subsidiaries are directly or indirectly 100% owned subsidiaries of Aleris Corporation. For purposes of complying with the reporting requirements of Aleris International and the Guarantor Subsidiaries, presented below are condensed consolidating financial statements of Aleris Corporation, Aleris International, the Guarantor Subsidiaries, and those other subsidiaries of Aleris Corporation that are not guaranteeing the indebtedness under the 7 ⁷/8% Senior Notes (the “Non-Guarantor Subsidiaries”). Aleris Corporation and the Guarantor Subsidiaries are also guarantors under the 9 ½% Senior Secured Notes. The condensed consolidating balance sheets are presented as of September 30, 2017 and December 31, 2016. The condensed consolidating statements of comprehensive income (loss) are presented for the three and nine months endedSeptember 30, 2017 and 2016. The condensed consolidating statements of cash flows are presented for the nine months endedSeptember 30, 2017 and 2016.

The guarantee of a Guarantor Subsidiary will be automatically and unconditionally released and discharged in the event of:

▪ any sale of the Guarantor Subsidiary or of all or substantially all of its assets and if applicable, the release or discharge from its guarantee of, and all pledges and security granted by it in connection with, the 2015 ABL Facility;

▪ a Guarantor Subsidiary being designated as an “unrestricted subsidiary” in accordance with the indentures governing the applicable Senior Notes;

▪ the release or discharge of a Guarantor Subsidiary from its guarantee under the 2015 ABL Facility or other indebtedness that resulted in the obligation of the Guarantor Subsidiary under the indentures governing the applicable Senior Notes; and

▪ the requirements for legal defeasance or covenant defeasance or discharge of the indentures governing the applicable Senior Notes having been satisfied.

Upon the completion of the sale of the recycling and specification alloys business on February 27, 2015, the guarantees of 7 ⁷/8% Senior Notes of the Guarantor Subsidiaries that were sold were automatically and unconditionally released.

	As of September 30, 2017
	Aleris Corporation (Parent)		Aleris International, Inc.		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current Assets
Cash and cash equivalents	$	—	$	42.7	$	—		$	32.8	$	(3.6	)	$	71.9
Accounts receivable, net	—		—		111.8			185.9		—			297.7
Inventories	—		—		271.4			349.3		—			620.7
Prepaid expenses and other current assets	—		2.1		11.8			25.6		—			39.5
Intercompany receivables	—		666.0		227.4			32.9		(926.3		)	—
Total Current Assets	—		710.8		622.4			626.5		(929.9		)	1,029.8
Property, plant and equipment, net	—		—		908.6			558.4		—			1,467.0
Intangible assets, net	—		—		19.3			15.9		—			35.2
Deferred income taxes	—		—		—			91.9		—			91.9
Other long-term assets	—		11.5		6.2			52.2		—			69.9
Investments in subsidiaries	185.3		1,339.3		(10.5		)	—		(1,514.1		)	—
Total Assets	$	185.3	$	2,061.6	$	1,546.0		$	1,344.9	$	(2,444.0	)	$	2,693.8
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	—	$	4.2	$	144.4		$	152.1	$	(3.6	)	$	297.1
Accrued liabilities	—		64.2		77.4			73.8		—			215.4
Current portion of long-term debt	—		—		1.0			14.6		—			15.6
Intercompany payables	2.1		366.2		530.3			27.7		(926.3		)	—
Total Current Liabilities	2.1		434.6		753.1			268.2		(929.9		)	528.1
Long-term debt	—		1,441.7		1.3			251.4		—			1,694.4
Deferred income taxes	—		—		0.5			16.6		—			17.1
Accrued pension benefits	—		—		42.8			128.8		—			171.6
Accrued postretirement benefits	—		—		32.9			—		—			32.9
Other long-term liabilities	—		—		37.1			29.4		—			66.5
Total Long-Term Liabilities	—		1,441.7		114.6			426.2		—			1,982.5
Total equity	183.2		185.3		678.3			650.5		(1,514.1		)	183.2
Total Liabilities and Equity	$	185.3	$	2,061.6	$	1,546.0		$	1,344.9	$	(2,444.0	)	$	2,693.8

	As of December 31, 2016
	Aleris Corporation (Parent)		Aleris International, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current Assets
Cash and cash equivalents	$	—	$	5.5	$	—	$	53.3	$	(3.2	)	$	55.6
Accounts receivable, net	—		—		81.0		137.7		—			218.7
Inventories	—		—		240.8		298.1		—			538.9
Prepaid expenses and other current assets	—		—		15.2		18.2		—			33.4
Intercompany receivables	—		897.9		296.5		164.2		(1,358.6		)	—
Total Current Assets	—		903.4		633.5		671.5		(1,361.8		)	846.6
Property, plant and equipment, net	—		—		819.1		526.9		—			1,346.0
Intangible assets, net	—		—		20.9		15.9		—			36.8
Deferred income taxes	—		—		—		88.3		—			88.3
Other long-term assets	—		10.8		6.1		55.3		—			72.2
Investments in subsidiaries	217.6		1,089.6		2.8		—		(1,310.0		)	—
Total Assets	$	217.6	$	2,003.8	$	1,482.4	$	1,357.9	$	(2,671.8	)	$	2,389.9
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	—	$	1.8	$	126.1	$	121.9	$	(3.2	)	$	246.6
Accrued liabilities	—		19.8		109.3		72.3		—			201.4
Current portion of long-term debt	—		—		0.5		27.2		—			27.7
Intercompany payables	1.0		616.2		719.6		21.8		(1,358.6		)	—
Total Current Liabilities	1.0		637.8		955.5		243.2		(1,361.8		)	475.7
Long-term debt	—		1,148.4		0.6		289.5		—			1,438.5
Deferred income taxes	—		—		0.2		2.6		—			2.8
Accrued pension benefits	—		—		44.1		114.3		—			158.4
Accrued postretirement benefits	—		—		34.2		—		—			34.2
Other long-term liabilities	—		—		36.5		27.2		—			63.7
Total Long-Term Liabilities	—		1,148.4		115.6		433.6		—			1,697.6
Total equity	216.6		217.6		411.3		681.1		(1,310.0		)	216.6
Total Liabilities and Equity	$	217.6	$	2,003.8	$	1,482.4	$	1,357.9	$	(2,671.8	)	$	2,389.9

	For the three months ended September 30, 2017
	Aleris Corporation (Parent)			Aleris International, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	—		$	364.4		$	354.2		$	(5.8	)	$	712.8
Cost of sales	—			—			360.8			320.2			(5.8		)	675.2
Gross profit	—			—			3.6			34.0			—			37.6
Selling, general and administrative expenses	—			5.6			22.6			21.3			—			49.5
Restructuring charges	—			—			0.2			0.7						0.9
Losses on derivative financial instruments	—			—			13.7			1.2			—			14.9
Other operating expense, net	—			—			2.0			—			—			2.0
Operating (loss) income	—			(5.6		)	(34.9		)	10.8			—			(29.7		)
Interest expense, net	—			—			24.9			7.1			—			32.0
Other (income) expense, net	—			(1.2		)	(0.1		)	3.7			—			2.4
Equity in net loss of affiliates	65.7			61.2			0.3			—			(127.2		)	—
(Loss) income before income taxes	(65.7		)	(65.6		)	(60.0		)	—			127.2			(64.1		)
Provision for income taxes	—			0.1			0.1			1.4			—			1.6
Net loss	$	(65.7	)	$	(65.7	)	$	(60.1	)	$	(1.4	)	$	127.2		$	(65.7	)
Comprehensive (loss) income	$	(40.9	)	$	(40.9	)	$	(59.3	)	$	22.6		$	77.6		$	(40.9	)

	For the nine months ended September 30, 2017
	Aleris Corporation (Parent)			Aleris International, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Revenues	$	—		$	—		$	1,129.0		$	1,051.3	$	(17.1	)	$	2,163.2
Cost of sales	—			—			1,072.4			899.6		(17.1		)	1,954.9
Gross profit	—			—			56.6			151.7		—			208.3
Selling, general and administrative expenses	—			5.7			84.1			63.8		—			153.6
Restructuring charges	—			—			1.3			0.8					2.1
Losses on derivative financial instruments	—			—			30.5			0.1		—			30.6
Other operating expense, net	—			—			3.9			0.1		—			4.0
Operating (loss) income	—			(5.7		)	(63.2		)	86.9		—			18.0
Interest expense, net	—			—			70.2			20.2		—			90.4
Other (income) expense, net	—			(2.0		)	(2.2		)	10.0		—			5.8
Equity in net loss of affiliates	103.3			99.5			0.7			—		(203.5		)	—
(Loss) income before income taxes	(103.3		)	(103.2		)	(131.9		)	56.7		203.5			(78.2		)
Provision for income taxes	—			0.1			—			25.0		—			25.1
Net (loss) income	$	(103.3	)	$	(103.3	)	$	(131.9	)	$	31.7	$	203.5		$	(103.3	)
Comprehensive (loss) income	$	(29.0	)	$	(29.0	)	$	(129.5	)	$	103.7	$	54.8		$	(29.0	)

	For the three months ended September 30, 2016
	Aleris Corporation (Parent)			Aleris International, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	—		$	358.6		$	332.3		$	(7.5	)	$	683.4
Cost of sales	—			—			341.1			277.0			(7.5		)	610.6
Gross profit	—			—			17.5			55.3			—			72.8
Selling, general and administrative expenses	—			0.4			39.9			18.5			—			58.8
Restructuring charges	—			—			0.3			—			—			0.3
Losses (gains) on derivative financial instruments	—			—			1.1			(0.9		)	—			0.2
Other operating expense, net	—			—			0.9			0.1			—			1.0
Operating (loss) income	—			(0.4		)	(24.7		)	37.6			—			12.5
Interest expense, net	—			—			11.8			7.4			—			19.2
Other income, net	—			(0.2		)	(1.1		)	(0.7		)	—			(2.0		)
Equity in net loss (earnings) of affiliates	21.6			16.6			(0.3		)	—			(37.9		)	—
(Loss) income before income taxes	(21.6		)	(16.8		)	(35.1		)	30.9			37.9			(4.7		)
Provision for income taxes	—			0.2			0.5			11.6			—			12.3
(Loss) income from continuing operations	(21.6		)	(17.0		)	(35.6		)	19.3			37.9			(17.0		)
Loss from discontinued operations, net of tax	—			(4.6		)	—			—			—			(4.6		)
Net (loss) income	$	(21.6	)	$	(21.6	)	$	(35.6	)	$	19.3		$	37.9		$	(21.6	)
Comprehensive (loss) income	$	(15.8	)	$	(15.8	)	$	(34.6	)	$	24.1		$	26.3		$	(15.8	)

	For the nine months ended September 30, 2016
	Aleris Corporation (Parent)			Aleris International, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Revenues	$	—		$	—		$	1,054.3		$	1,011.4	$	(14.8	)	$	2,050.9
Cost of sales	—			—			981.0			859.8		(14.8		)	1,826.0
Gross profit	—			—			73.3			151.6		—			224.9
Selling, general and administrative expenses	—			1.7			99.0			58.6		—			159.3
Restructuring charges	—			—			0.9			0.9					1.8
Losses on derivative financial instruments	—			—			1.7			1.1		—			2.8
Other operating expense, net	—			—			2.3			0.2		—			2.5
Operating (loss) income	—			(1.7		)	(30.6		)	90.8		—			58.5
Interest expense, net	—			—			34.1			24.3		—			58.4
Other expense (income), net	—			8.5			(3.1		)	0.6		—			6.0
Equity in net loss (earnings) of affiliates	41.0			25.9			(0.7		)	—		(66.2		)	—
(Loss) income before income taxes	(41.0		)	(36.1		)	(60.9		)	65.9		66.2			(5.9		)
Provision for income taxes	—			0.3			0.1			30.1		—			30.5
(Loss) income from continuing operations	(41.0		)	(36.4		)	(61.0		)	35.8		66.2			(36.4		)
Loss from discontinued operations, net of tax	—			(4.6		)	—			—		—			(4.6		)
Net (loss) income	(41.0		)	(41.0		)	(61.0		)	35.8		66.2			(41.0		)
Comprehensive (loss) income	$	(29.0	)	$	(29.0	)	$	(59.1	)	$	45.8	$	42.3		$	(29.0	)

	For the nine months ended September 30, 2017
	Aleris Corporation (Parent)			Aleris International, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided (used) by operating activities	$	1.3		$	299.2		$	(247.8	)	$	61.8		$	(147.0	)	$	(32.5	)
Investing activities
Payments for property, plant and equipment	—			—			(150.9		)	(24.0		)	—			(174.9		)
Repayments from intercompany loans	—			—			—			135.0			(135.0		)	—
Equity contributions in subsidiaries	—			(426.6		)	(1.0		)	—			427.6			—
Return of investment in subsidiaries	—			8.3			5.8			—			(14.1		)	—
Other	—			—			(2.5		)	—			—			(2.5		)
Net cash (used) provided by investing activities	—			(418.3		)	(148.6		)	111.0			278.5			(177.4		)
Financing activities
Proceeds from the revolving credit facilities	—			215.0			—			186.7			—			401.7
Payments on the revolving credit facilities	—			(185.0		)	—			(244.2		)	—			(429.2		)
Proceeds from senior secured notes, inclusive of premiums				263.8			—			—						263.8
Payments on other long-term debt	—			—			(0.5		)	(5.0		)	—			(5.5		)
Debt issuance costs				(2.5		)	—			—			—			(2.5		)
Repayments on intercompany loans	—			(135.0		)	—			—			135.0			—
Proceeds from intercompany equity contributions	—			—			403.6			24.0			(427.6		)	—
Dividends paid	—			—			(7.1		)	(153.6		)	160.7			—
Other	(1.3		)	—			0.4			(0.6		)	—			(1.5		)
Net cash (used) provided by financing activities	(1.3		)	156.3			396.4			(192.7		)	(131.9		)	226.8
Effect of exchange rate differences on cash, cash equivalents and restricted cash	—			—			—			3.0			—			3.0
Net increase (decrease) in cash, cash equivalents and restricted cash	—			37.2			—			(16.9		)	(0.4		)	19.9
Cash, cash equivalents and restricted cash at beginning of period	—			5.5			—			53.3			(3.2		)	55.6
Cash, cash equivalents and restricted cash at end of period	$	—		$	42.7		$	—		$	36.4		$	(3.6	)	$	75.5
Cash and cash equivalents	$	—		$	42.7		$	—		$	32.8		$	(3.6	)	$	71.9
Restricted cash (included in “Other current assets”)	—			—			—			3.6			—			3.6
Cash, cash equivalents and restricted cash	$	—		$	42.7		$	—		$	36.4		$	(3.6	)	$	75.5

	For the nine months ended September 30, 2016
	Aleris Corporation (Parent)			Aleris International, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided (used) by operating activities	$	0.6		$	(273.6	)	$	253.5		$	67.7		$	(1.6	)	$	46.6
Investing activities
Payments for property, plant and equipment	—			—			(251.0		)	(44.7		)	—			(295.7		)
Disbursements of intercompany loans	—			—			—			(50.0		)	50.0			—
Return of investments in subsidiaries	—			15.2			0.2			—			(15.4		)	—
Other	—			—			(1.2		)	—			—			(1.2		)
Net cash provided (used) by investing activities	—			15.2			(252.0		)	(94.7		)	34.6			(296.9		)
Financing activities
Proceeds from revolving credit facilities	—			175.0			—			25.1			—			200.1
Payments on revolving credit facilities	—			(60.0		)	—			(1.7		)	—			(61.7		)
Proceeds from senior secured notes, net of discount	—			540.4			—			—			—			540.4
Payments on senior notes, including premiums	—			(443.8		)	—			—			—			(443.8		)
Payments on other long-term debt	—			(0.5		)	(0.4		)	(5.8		)	—			(6.7		)
Debt issuance costs				(3.5		)	—			—			—			(3.5		)
Proceeds from intercompany loans	—			50.0			—			—			(50.0		)	—
Dividends paid	—			—			(0.9		)	(16.1		)	17.0			—
Other	(0.6		)	0.8			(0.2		)	(0.7		)	—			(0.7		)
Net cash (used) provided by financing activities	(0.6		)	258.4			(1.5		)	0.8			(33.0		)	224.1
Effect of exchange rate differences on cash, cash equivalents and restricted cash	—			—			—			0.5			—			0.5
Net decrease in cash, cash equivalents and restricted cash	—			—			—			(25.7		)	—			(25.7		)
Cash, cash equivalents and restricted cash at beginning of period	—			—			—			62.2			—			62.2
Cash, cash equivalents and restricted cash at end of period	$	—		$	—		$	—		$	36.5		$	—		$	36.5

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Basis Of Presentation and Recent Accounting Pronouncements (Policies)

9 Months Ended

Sep. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” (“ASU 2017-07”). This guidance requires the presentation of all components of net periodic benefit cost other than service costs outside of operating income. Only the service cost component will be included in operating income and eligible for capitalization in assets. The guidance is effective for the Company for fiscal years beginning after December 15, 2017, and will be applied retrospectively. We estimate that upon adoption, approximately $3.2 and $2.8 of pension and postretirement benefit expense will be reclassified from operating income to non-operating income for the years ended December 31, 2017 and 2016, respectively.    

In November 2016, the FASB issued ASU No. 2016-18, “Restricted Cash” (“ASU 2016-18”). This guidance requires companies to show the changes in the total cash, cash equivalents and restricted cash in the statement of cash flows. We adopted ASU 2016-18 in the first quarter of 2017. The adoption of this guidance resulted in the updated presentation of restricted cash in our current period Consolidated Statements of Cash Flows. As there was no restricted cash in the prior year, the adoption of this guidance had no effect on the prior year presentation of cash flows.

In October 2016, the FASB issued ASU No. 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory” (“ASU 2016-16”). This guidance requires companies to account for the income tax effects of intercompany transfers of assets other than inventory when the transfer occurs. The income tax effects of intercompany inventory transactions will continue to be deferred. We early adopted ASU 2016-16 in the first quarter of 2017. The impact of adopting this guidance on the Company’s Consolidated Financial Statements resulted in credits to prepaid expenses and other current assets and other comprehensive income of approximately $8.2 and $0.1, respectively, and debits to deferred income tax assets and retained earnings of approximately $3.6 and $4.7, respectively, as of the date of adoption.

In March 2016, the FASB issued ASU No. 2016-09, “Compensation-Stock Compensation-Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). This guidance makes several modifications to the accounting for stock-based compensation, including forfeitures, employer tax withholding on stock-based compensation and the financial statement presentation of excess tax benefits or deficiencies. ASU 2016-09 also clarifies the statement of cash flows presentation for certain components of stock-based awards. We adopted ASU 2016-09 in the first quarter of 2017. The tax effects associated with stock-based compensation are now recorded through the income statement. Additionally, forfeitures will now be recognized as they occur. Prior periods have not been adjusted.

In February 2016, the FASB issued ASU No. 2016-02, “Leases” (“ASU 2016-02”). This guidance requires lessees to put most leases on their balance sheets but recognize expense on the income statement in a manner similar to current guidance. The guidance is effective for the Company for fiscal years beginning after December 15, 2018, and a modified retrospective approach is required for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. We are currently evaluating the impact the application of ASU 2016-02 will have on the Company’s Consolidated Financial Statements. We expect that the adoption will result in an increase to our long-term assets and long-term liabilities as a result of substantially all operating leases existing as of the adoption date being capitalized along with the associated obligations.

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which was the result of a joint project by the FASB and International Accounting Standards Board to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards. Subsequent accounting standard updates have been issued which amend and/or clarify the application of ASU 2014-09. The issuance of a comprehensive and converged standard on revenue recognition is expected to enable financial statement users to better understand and consistently analyze an entity’s revenue across industries, transactions and geographies. The standard will require additional disclosures to help financial statement users better understand the nature, amount, timing, and potential uncertainty of the revenue that is recognized. ASU 2014-09 will be effective for the Company on January 1, 2018, and will require either retrospective application to each prior reporting period presented or retrospective application with the cumulative effect of initially applying the standard recognized at the date of adoption (the “modified retrospective approach”). The Company has developed a project plan to guide the implementation of the standard. The project plan includes analyzing the Company’s customer contracts, identifying revenue streams, drafting an updated accounting policy and evaluating new disclosure requirements. In addition, the Company is identifying and implementing appropriate changes to its business processes and controls to support recognition and disclosure under the new guidance. In evaluating the impact of the standard, management has concluded that control may have transferred on some of the inventory held on consignment at customer locations or in third party warehouses. Subsequent to adoption of the standard, revenue may be recognized when such inventory is delivered into consignment. We held $29.3 of inventory in consignment at September 30, 2017, and revenue on a portion of such inventory may be included in the transition adjustment recorded upon adoption of the standard. We continue to evaluate other impacts this guidance will have on the Company’s Consolidated Financial Statements. We expect to adopt this standard using the modified retrospective approach and anticipate that the adoption will result in an increase to the revenue disclosures in our financial statements.

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Inventories (Tables)

9 Months Ended

Sep. 30, 2017

Inventory Disclosure [Abstract]

Components of Inventory

The components of our “Inventories” as of September 30, 2017 and December 31, 2016 are as follows:

	September 30, 2017		December 31, 2016
Raw materials	$	189.1	$	181.7
Work in process	232.8		195.4
Finished goods	167.3		134.0
Supplies	31.5		27.8
Total inventories	$	620.7	$	538.9

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Long-Term Debt (Tables)

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Schedule of Debt

Our debt as of September 30, 2017 and December 31, 2016 is summarized as follows:

	September 30, 2017		December 31, 2016
2015 ABL Facility	$	245.0	$	255.3
7 7/8% Senior Notes due 2020, net of discount and deferred issuance costs of $3.6 and $4.5 at September 30, 2017 and December 31, 2016, respectively	436.4		435.5
9 1/2% Senior Secured Notes due 2021, inclusive of net premiums and deferred issuance costs of $0.8 at September 30, 2017 and net of discount and deferred issuance costs of $11.6 at December 31, 2016	800.8		538.4
Exchangeable Notes, net of discount of $0.3 and $0.4 at September 30, 2017 and December 31, 2016, respectively	44.5		44.4
Zhenjiang Term Loans, net of discount of $0.5 at September 30, 2017 and December 31, 2016	166.8		164.5
Zhenjiang Revolver, net of discount of $0.1 at September 30, 2017 and December 31, 2016	6.6		22.0
Other	9.9		6.1
Total debt	1,710.0		1,466.2
Less: Current portion of long-term debt	15.6		27.7
Total long-term debt	$	1,694.4	$	1,438.5

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Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2017

Stockholders' Equity Note [Abstract]

Schedule of Stockholders Equity

The following table summarizes the activity within stockholders’ equity for the nine months endedSeptember 30, 2017:

	Total Equity
Total equity at January 1, 2017	$	216.6
Net loss	(103.3		)
Other comprehensive income	74.3
Stock-based compensation activity	0.3
Adoption of new accounting standard	(4.7		)
Total equity at September 30, 2017	$	183.2

Changes in the Number of Outstanding Common Shares

The following table shows changes in the number of our issued and outstanding shares of common stock:

	Issued and outstanding shares of common stock
Balance at January 1, 2017	31,904,250
Issuance associated with vested restricted stock units	94,034
Balance at September 30, 2017	31,998,284

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Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Sep. 30, 2017

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income

The following table summarizes the activity within accumulated other comprehensive loss for the nine months endedSeptember 30, 2017:

	Currency translation			Pension and other postretirement			Total
Balance at January 1, 2017	$	(150.9	)	$	(72.6	)	$	(223.5	)
Current period currency translation adjustments	76.0			(4.0		)	72.0
Amortization of net actuarial losses and prior service costs, net of tax	—			2.3			2.3
Balance at September 30, 2017	$	(74.9	)	$	(74.3	)	$	(149.2	)

Schedule of Amounts Recognized in Other Comprehensive Income

A summary of reclassifications out of accumulated other comprehensive loss for the nine months endedSeptember 30, 2017 is provided below:

Description of reclassifications out of accumulated other comprehensive loss	Amount reclassified
Amortization of net actuarial losses and prior service costs	$	(3.4	)	(a)
Deferred tax benefit on pension and other postretirement liability adjustments	1.1
Losses reclassified into earnings, net of tax	$	(2.3	)

(a) This component of accumulated other comprehensive loss is included in the computation of net periodic benefit expense and net postretirement benefit expense (see Note 10, “Employee Benefit Plans,” for additional detail).

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Reconciliation of Revenue from Segments to Consolidated

The following table shows our revenues and segment income for the periods presented in our Consolidated Statements of Comprehensive Loss:

Three months ended September 30, 2017	North America		Europe		Asia Pacific		Intra-entity Revenues			Total
Revenues to external customers	$	364.4	$	318.4	$	30.0				$	712.8
Intra-entity revenues	—		5.9		2.2		$	(8.1	)	—
Total revenues	$	364.4	$	324.3	$	32.2	$	(8.1	)	$	712.8
Segment income	$	19.9	$	28.4	$	4.3				$	52.6
Three months ended September 30, 2016	North America		Europe		Asia Pacific		Intra-entity Revenues			Total
Revenues to external customers	$	358.1	$	297.6	$	27.7				$	683.4
Intra-entity revenues	0.5		7.2		1.5		$	(9.2	)	—
Total revenues	$	358.6	$	304.8	$	29.2	$	(9.2	)	$	683.4
Segment income	$	18.1	$	40.7	$	2.8				$	61.6
Nine months ended September 30, 2017	North America		Europe		Asia Pacific		Intra-entity Revenues			Total
Revenues to external customers	$	1,129.0	$	951.9	$	82.3				$	2,163.2
Intra-entity revenues	—		17.3		4.8		$	(22.1	)	—
Total revenues	$	1,129.0	$	969.2	$	87.1	$	(22.1	)	$	2,163.2
Segment income	$	75.2	$	101.7	$	10.0				$	186.9
Nine months ended September 30, 2016	North America		Europe		Asia Pacific		Intra-entity Revenues			Total
Revenues to external customers	$	1,053.2	$	927.0	$	70.7				$	2,050.9
Intra-entity revenues	1.1		13.9		5.0		$	(20.0	)	—
Total revenues	$	1,054.3	$	940.9	$	75.7	$	(20.0	)	$	2,050.9
Segment income	$	69.8	$	113.8	$	6.2				$	189.8

Schedule of Segment Reporting Information, by Segment

The following table reconciles total segment income to “Loss before income taxes” as reported in our Consolidated Statements of Comprehensive Loss:

	For the three months ended						For the nine months ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
Total segment income	$	52.6		$	61.6		$	186.9		$	189.8
Unallocated amounts:
Depreciation and amortization	(30.5		)	(26.2		)	(82.0		)	(78.8		)
Other corporate general and administrative expenses	(8.9		)	(14.8		)	(32.1		)	(39.5		)
Restructuring charges	(0.9		)	(0.3		)	(2.1		)	(1.8		)
Interest expense, net	(32.0		)	(19.2		)	(90.4		)	(58.4		)
Unallocated (losses) gains on derivative financial instruments	(18.4		)	8.8			(1.0		)	23.7
Unallocated currency exchange losses	(2.0		)	(0.5		)	(3.7		)	(1.2		)
Start-up costs	(22.8		)	(14.1		)	(52.6		)	(30.4		)
Loss on extinguishment of debt	—			—			—			(12.6		)
Other (expense) income, net	(1.2		)	—			(1.2		)	3.3
Loss before income taxes	$	(64.1	)	$	(4.7	)	$	(78.2	)	$	(5.9	)

Reconciliation of Assets from Segment to Consolidated

The following table shows our reportable segment assets as of September 30, 2017 and December 31, 2016:

	September 30, 2017		December 31, 2016
Assets
North America	$	1,327.7	$	1,180.2
Europe	772.5		645.3
Asia Pacific	363.5		358.6
Unallocated assets	230.1		205.8
Total consolidated assets	$	2,693.8	$	2,389.9

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Employee Benefit Plans (Tables)

9 Months Ended

Sep. 30, 2017

Other Postretirement Benefit Plans

Defined Benefit Plan Disclosure [Line Items]

Schedule of Defined Benefit Plans Disclosures

The components of net postretirement benefit expense are as follows:

	For the three months ended					For the nine months ended
	September 30, 2017			September 30, 2016		September 30, 2017			September 30, 2016
Service cost	$	—		$	—	$	0.1		$	0.1
Interest cost	0.3			0.3		0.9			1.0
Amortization of net actuarial gains	(0.1		)	—		(0.4		)	(0.1		)
Net postretirement benefit expense	$	0.2		$	0.3	$	0.6		$	1.0

U.S. Pension Benefits

Defined Benefit Plan Disclosure [Line Items]

Schedule of Defined Benefit Plans Disclosures

The components of the net periodic benefit expense are as follows:

	U.S. pension benefits
	For the three months ended						For the nine months ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
Service cost	$	1.0		$	0.9		$	2.9		$	2.7
Interest cost	1.4			1.5			4.4			4.5
Amortization of net actuarial losses	0.5			0.5			1.4			1.4
Amortization of prior service cost	0.1			0.1			0.2			0.2
Expected return on plan assets	(2.6		)	(2.5		)	(7.7		)	(7.5		)
Net periodic benefit expense	$	0.4		$	0.5		$	1.2		$	1.3

Non U.S. Pension Benefits

Defined Benefit Plan Disclosure [Line Items]

Schedule of Defined Benefit Plans Disclosures

	Non U.S. pension benefits
	For the three months ended				For the nine months ended
	September 30, 2017		September 30, 2016		September 30, 2017		September 30, 2016
Service cost	$	0.9	$	0.5	$	2.7	$	1.5
Interest cost	0.4		0.5		1.3		1.5
Amortization of net actuarial losses	0.7		0.4		2.1		1.2
Net periodic benefit expense	$	2.0	$	1.4	$	6.1	$	4.2

XML

Derivative And Other Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

The amounts shown in the table below represent the gross amounts of recognized assets and liabilities, the amounts offset in the Consolidated Balance Sheet and the net amounts of assets and liabilities presented therein. As of September 30, 2017 and December 31, 2016, there were no amounts subject to an enforceable master netting arrangement or similar agreement that have not been offset in the Consolidated Balance Sheet.

	Fair Value of Derivatives as of
	September 30, 2017						December 31, 2016
Derivatives by Type	Asset			Liability			Asset			Liability
Metal	$	15.3		$	(21.6	)	$	8.9		$	(12.3	)
Energy	0.2			(0.1		)	0.7			—
Currency	1.2			(0.5		)	—			(2.3		)
Total	16.7			(22.2		)	9.6			(14.6		)
Effect of counterparty netting	(11.7		)	11.7			(6.6		)	6.6
Net derivatives as classified in the balance sheet	$	5.0		$	(10.5	)	$	3.0		$	(8.0	)

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The fair value of our derivative financial instruments at September 30, 2017 and December 31, 2016 are recorded in the Consolidated Balance Sheet as follows:

Asset Derivatives	Balance Sheet Location	September 30, 2017		December 31, 2016
Metal	Prepaid expenses and other current assets	$	0.1	$	2.3
	Other long-term assets	3.8		—
Energy	Prepaid expenses and other current assets	0.2		0.7
Currency	Prepaid expenses and other current assets	0.9		—
Total		$	5.0	$	3.0
Liability Derivatives	Balance Sheet Location	September 30, 2017		December 31, 2016
Metal	Accrued liabilities	$	10.3	$	5.1
	Other long-term liabilities	—		0.6
Energy	Accrued liabilities	0.1		—
Currency	Accrued liabilities	—		1.8
	Other long-term liabilities	0.1		0.5
Total		$	10.5	$	8.0

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

Realized (gains) and losses on derivative financial instruments totaled the following:

	For the three months ended						For the nine months ended
	September 30, 2017			September 30, 2016			September 30, 2017		September 30, 2016
Metal	$	(3.6	)	$	9.1		$	28.2	$	25.4
Energy	0.3			(0.3		)	0.8		0.6
Currency	(0.6		)	0.2			—		0.4

Schedule of Fair Value Measurements, Nonrecurring

The carrying amount, fair values and level in the fair value hierarchy of our other financial instruments at September 30, 2017 and December 31, 2016 are as follows:

	September 30, 2017					December 31, 2016
	Carrying Amount		Fair Value		Level in the Fair Value Hierarchy	Carrying Amount		Fair Value		Level in the Fair Value Hierarchy
Cash and cash equivalents	$	71.9	$	71.9	Level 1	$	55.6	$	55.6	Level 1
Restricted cash	3.6		3.6		Level 1	—		—		N/A
Receivables held in escrow	17.0		18.9		Level 2	17.0		20.6		Level 2
2015 ABL Facility	245.0		245.0		Level 2	255.3		255.3		Level 2
7 7/8% Senior Notes	436.4		439.8		Level 1	435.5		441.7		Level 1
9 ½ % Senior Secured Notes	800.8		853.7		Level 1	538.4		594.0		Level 1
Exchangeable Notes	44.5		81.4		Level 3	44.4		81.4		Level 3
Zhenjiang Term Loans	166.8		167.3		Level 3	164.5		165.0		Level 3
Zhenjiang Revolver	6.6		6.7		Level 3	22.0		22.1		Level 3

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Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 30, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule of Condensed Balance Sheet

	As of September 30, 2017
	Aleris Corporation (Parent)		Aleris International, Inc.		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current Assets
Cash and cash equivalents	$	—	$	42.7	$	—		$	32.8	$	(3.6	)	$	71.9
Accounts receivable, net	—		—		111.8			185.9		—			297.7
Inventories	—		—		271.4			349.3		—			620.7
Prepaid expenses and other current assets	—		2.1		11.8			25.6		—			39.5
Intercompany receivables	—		666.0		227.4			32.9		(926.3		)	—
Total Current Assets	—		710.8		622.4			626.5		(929.9		)	1,029.8
Property, plant and equipment, net	—		—		908.6			558.4		—			1,467.0
Intangible assets, net	—		—		19.3			15.9		—			35.2
Deferred income taxes	—		—		—			91.9		—			91.9
Other long-term assets	—		11.5		6.2			52.2		—			69.9
Investments in subsidiaries	185.3		1,339.3		(10.5		)	—		(1,514.1		)	—
Total Assets	$	185.3	$	2,061.6	$	1,546.0		$	1,344.9	$	(2,444.0	)	$	2,693.8
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	—	$	4.2	$	144.4		$	152.1	$	(3.6	)	$	297.1
Accrued liabilities	—		64.2		77.4			73.8		—			215.4
Current portion of long-term debt	—		—		1.0			14.6		—			15.6
Intercompany payables	2.1		366.2		530.3			27.7		(926.3		)	—
Total Current Liabilities	2.1		434.6		753.1			268.2		(929.9		)	528.1
Long-term debt	—		1,441.7		1.3			251.4		—			1,694.4
Deferred income taxes	—		—		0.5			16.6		—			17.1
Accrued pension benefits	—		—		42.8			128.8		—			171.6
Accrued postretirement benefits	—		—		32.9			—		—			32.9
Other long-term liabilities	—		—		37.1			29.4		—			66.5
Total Long-Term Liabilities	—		1,441.7		114.6			426.2		—			1,982.5
Total equity	183.2		185.3		678.3			650.5		(1,514.1		)	183.2
Total Liabilities and Equity	$	185.3	$	2,061.6	$	1,546.0		$	1,344.9	$	(2,444.0	)	$	2,693.8

	As of December 31, 2016
	Aleris Corporation (Parent)		Aleris International, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current Assets
Cash and cash equivalents	$	—	$	5.5	$	—	$	53.3	$	(3.2	)	$	55.6
Accounts receivable, net	—		—		81.0		137.7		—			218.7
Inventories	—		—		240.8		298.1		—			538.9
Prepaid expenses and other current assets	—		—		15.2		18.2		—			33.4
Intercompany receivables	—		897.9		296.5		164.2		(1,358.6		)	—
Total Current Assets	—		903.4		633.5		671.5		(1,361.8		)	846.6
Property, plant and equipment, net	—		—		819.1		526.9		—			1,346.0
Intangible assets, net	—		—		20.9		15.9		—			36.8
Deferred income taxes	—		—		—		88.3		—			88.3
Other long-term assets	—		10.8		6.1		55.3		—			72.2
Investments in subsidiaries	217.6		1,089.6		2.8		—		(1,310.0		)	—
Total Assets	$	217.6	$	2,003.8	$	1,482.4	$	1,357.9	$	(2,671.8	)	$	2,389.9
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	—	$	1.8	$	126.1	$	121.9	$	(3.2	)	$	246.6
Accrued liabilities	—		19.8		109.3		72.3		—			201.4
Current portion of long-term debt	—		—		0.5		27.2		—			27.7
Intercompany payables	1.0		616.2		719.6		21.8		(1,358.6		)	—
Total Current Liabilities	1.0		637.8		955.5		243.2		(1,361.8		)	475.7
Long-term debt	—		1,148.4		0.6		289.5		—			1,438.5
Deferred income taxes	—		—		0.2		2.6		—			2.8
Accrued pension benefits	—		—		44.1		114.3		—			158.4
Accrued postretirement benefits	—		—		34.2		—		—			34.2
Other long-term liabilities	—		—		36.5		27.2		—			63.7
Total Long-Term Liabilities	—		1,148.4		115.6		433.6		—			1,697.6
Total equity	216.6		217.6		411.3		681.1		(1,310.0		)	216.6
Total Liabilities and Equity	$	217.6	$	2,003.8	$	1,482.4	$	1,357.9	$	(2,671.8	)	$	2,389.9

Schedule of Condensed Income Statement

	For the three months ended September 30, 2017
	Aleris Corporation (Parent)			Aleris International, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	—		$	364.4		$	354.2		$	(5.8	)	$	712.8
Cost of sales	—			—			360.8			320.2			(5.8		)	675.2
Gross profit	—			—			3.6			34.0			—			37.6
Selling, general and administrative expenses	—			5.6			22.6			21.3			—			49.5
Restructuring charges	—			—			0.2			0.7						0.9
Losses on derivative financial instruments	—			—			13.7			1.2			—			14.9
Other operating expense, net	—			—			2.0			—			—			2.0
Operating (loss) income	—			(5.6		)	(34.9		)	10.8			—			(29.7		)
Interest expense, net	—			—			24.9			7.1			—			32.0
Other (income) expense, net	—			(1.2		)	(0.1		)	3.7			—			2.4
Equity in net loss of affiliates	65.7			61.2			0.3			—			(127.2		)	—
(Loss) income before income taxes	(65.7		)	(65.6		)	(60.0		)	—			127.2			(64.1		)
Provision for income taxes	—			0.1			0.1			1.4			—			1.6
Net loss	$	(65.7	)	$	(65.7	)	$	(60.1	)	$	(1.4	)	$	127.2		$	(65.7	)
Comprehensive (loss) income	$	(40.9	)	$	(40.9	)	$	(59.3	)	$	22.6		$	77.6		$	(40.9	)

	For the nine months ended September 30, 2017
	Aleris Corporation (Parent)			Aleris International, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Revenues	$	—		$	—		$	1,129.0		$	1,051.3	$	(17.1	)	$	2,163.2
Cost of sales	—			—			1,072.4			899.6		(17.1		)	1,954.9
Gross profit	—			—			56.6			151.7		—			208.3
Selling, general and administrative expenses	—			5.7			84.1			63.8		—			153.6
Restructuring charges	—			—			1.3			0.8					2.1
Losses on derivative financial instruments	—			—			30.5			0.1		—			30.6
Other operating expense, net	—			—			3.9			0.1		—			4.0
Operating (loss) income	—			(5.7		)	(63.2		)	86.9		—			18.0
Interest expense, net	—			—			70.2			20.2		—			90.4
Other (income) expense, net	—			(2.0		)	(2.2		)	10.0		—			5.8
Equity in net loss of affiliates	103.3			99.5			0.7			—		(203.5		)	—
(Loss) income before income taxes	(103.3		)	(103.2		)	(131.9		)	56.7		203.5			(78.2		)
Provision for income taxes	—			0.1			—			25.0		—			25.1
Net (loss) income	$	(103.3	)	$	(103.3	)	$	(131.9	)	$	31.7	$	203.5		$	(103.3	)
Comprehensive (loss) income	$	(29.0	)	$	(29.0	)	$	(129.5	)	$	103.7	$	54.8		$	(29.0	)

	For the three months ended September 30, 2016
	Aleris Corporation (Parent)			Aleris International, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	—		$	358.6		$	332.3		$	(7.5	)	$	683.4
Cost of sales	—			—			341.1			277.0			(7.5		)	610.6
Gross profit	—			—			17.5			55.3			—			72.8
Selling, general and administrative expenses	—			0.4			39.9			18.5			—			58.8
Restructuring charges	—			—			0.3			—			—			0.3
Losses (gains) on derivative financial instruments	—			—			1.1			(0.9		)	—			0.2
Other operating expense, net	—			—			0.9			0.1			—			1.0
Operating (loss) income	—			(0.4		)	(24.7		)	37.6			—			12.5
Interest expense, net	—			—			11.8			7.4			—			19.2
Other income, net	—			(0.2		)	(1.1		)	(0.7		)	—			(2.0		)
Equity in net loss (earnings) of affiliates	21.6			16.6			(0.3		)	—			(37.9		)	—
(Loss) income before income taxes	(21.6		)	(16.8		)	(35.1		)	30.9			37.9			(4.7		)
Provision for income taxes	—			0.2			0.5			11.6			—			12.3
(Loss) income from continuing operations	(21.6		)	(17.0		)	(35.6		)	19.3			37.9			(17.0		)
Loss from discontinued operations, net of tax	—			(4.6		)	—			—			—			(4.6		)
Net (loss) income	$	(21.6	)	$	(21.6	)	$	(35.6	)	$	19.3		$	37.9		$	(21.6	)
Comprehensive (loss) income	$	(15.8	)	$	(15.8	)	$	(34.6	)	$	24.1		$	26.3		$	(15.8	)

Schedule of Condensed Cash Flow Statement

	For the nine months ended September 30, 2017
	Aleris Corporation (Parent)			Aleris International, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided (used) by operating activities	$	1.3		$	299.2		$	(247.8	)	$	61.8		$	(147.0	)	$	(32.5	)
Investing activities
Payments for property, plant and equipment	—			—			(150.9		)	(24.0		)	—			(174.9		)
Repayments from intercompany loans	—			—			—			135.0			(135.0		)	—
Equity contributions in subsidiaries	—			(426.6		)	(1.0		)	—			427.6			—
Return of investment in subsidiaries	—			8.3			5.8			—			(14.1		)	—
Other	—			—			(2.5		)	—			—			(2.5		)
Net cash (used) provided by investing activities	—			(418.3		)	(148.6		)	111.0			278.5			(177.4		)
Financing activities
Proceeds from the revolving credit facilities	—			215.0			—			186.7			—			401.7
Payments on the revolving credit facilities	—			(185.0		)	—			(244.2		)	—			(429.2		)
Proceeds from senior secured notes, inclusive of premiums				263.8			—			—						263.8
Payments on other long-term debt	—			—			(0.5		)	(5.0		)	—			(5.5		)
Debt issuance costs				(2.5		)	—			—			—			(2.5		)
Repayments on intercompany loans	—			(135.0		)	—			—			135.0			—
Proceeds from intercompany equity contributions	—			—			403.6			24.0			(427.6		)	—
Dividends paid	—			—			(7.1		)	(153.6		)	160.7			—
Other	(1.3		)	—			0.4			(0.6		)	—			(1.5		)
Net cash (used) provided by financing activities	(1.3		)	156.3			396.4			(192.7		)	(131.9		)	226.8
Effect of exchange rate differences on cash, cash equivalents and restricted cash	—			—			—			3.0			—			3.0
Net increase (decrease) in cash, cash equivalents and restricted cash	—			37.2			—			(16.9		)	(0.4		)	19.9
Cash, cash equivalents and restricted cash at beginning of period	—			5.5			—			53.3			(3.2		)	55.6
Cash, cash equivalents and restricted cash at end of period	$	—		$	42.7		$	—		$	36.4		$	(3.6	)	$	75.5
Cash and cash equivalents	$	—		$	42.7		$	—		$	32.8		$	(3.6	)	$	71.9
Restricted cash (included in “Other current assets”)	—			—			—			3.6			—			3.6
Cash, cash equivalents and restricted cash	$	—		$	42.7		$	—		$	36.4		$	(3.6	)	$	75.5

	For the nine months ended September 30, 2016
	Aleris Corporation (Parent)			Aleris International, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided (used) by operating activities	$	0.6		$	(273.6	)	$	253.5		$	67.7		$	(1.6	)	$	46.6
Investing activities
Payments for property, plant and equipment	—			—			(251.0		)	(44.7		)	—			(295.7		)
Disbursements of intercompany loans	—			—			—			(50.0		)	50.0			—
Return of investments in subsidiaries	—			15.2			0.2			—			(15.4		)	—
Other	—			—			(1.2		)	—			—			(1.2		)
Net cash provided (used) by investing activities	—			15.2			(252.0		)	(94.7		)	34.6			(296.9		)
Financing activities
Proceeds from revolving credit facilities	—			175.0			—			25.1			—			200.1
Payments on revolving credit facilities	—			(60.0		)	—			(1.7		)	—			(61.7		)
Proceeds from senior secured notes, net of discount	—			540.4			—			—			—			540.4
Payments on senior notes, including premiums	—			(443.8		)	—			—			—			(443.8		)
Payments on other long-term debt	—			(0.5		)	(0.4		)	(5.8		)	—			(6.7		)
Debt issuance costs				(3.5		)	—			—			—			(3.5		)
Proceeds from intercompany loans	—			50.0			—			—			(50.0		)	—
Dividends paid	—			—			(0.9		)	(16.1		)	17.0			—
Other	(0.6		)	0.8			(0.2		)	(0.7		)	—			(0.7		)
Net cash (used) provided by financing activities	(0.6		)	258.4			(1.5		)	0.8			(33.0		)	224.1
Effect of exchange rate differences on cash, cash equivalents and restricted cash	—			—			—			0.5			—			0.5
Net decrease in cash, cash equivalents and restricted cash	—			—			—			(25.7		)	—			(25.7		)
Cash, cash equivalents and restricted cash at beginning of period	—			—			—			62.2			—			62.2
Cash, cash equivalents and restricted cash at end of period	$	—		$	—		$	—		$	36.5		$	—		$	36.5

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Basis Of Presentation and Recent Accounting Pronouncements (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Line Items]
Other Inventory, Materials, Supplies and Merchandise under Consignment, Gross			$ 29.3
Accounting Standards Update 2017-07 [Member]
Organization, Consolidation and Presentation of Financial Statements [Line Items]
Operating (loss) income		$ (2.8)
Nonoperating income (expense)		2.8
Accounting Standards Update 2016-16 [Member] | Prepaid Expenses and Other Current Assets [Member]
Organization, Consolidation and Presentation of Financial Statements [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption		(8.2)
Accounting Standards Update 2016-16 [Member] | Deferred Tax Asset [Domain]
Organization, Consolidation and Presentation of Financial Statements [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption		3.6
Other Comprehensive Income [Member] | Accounting Standards Update 2016-16 [Member]
Organization, Consolidation and Presentation of Financial Statements [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption		0.1
Retained Earnings [Member] | Accounting Standards Update 2016-16 [Member]
Organization, Consolidation and Presentation of Financial Statements [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption		$ (4.7)
Scenario, Forecast [Member] | Accounting Standards Update 2017-07 [Member]
Organization, Consolidation and Presentation of Financial Statements [Line Items]
Operating (loss) income	$ (3.2)
Nonoperating income (expense)	$ 3.2

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Inventories (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 189.1	$ 181.7
Work in process	232.8	195.4
Finished goods	167.3	134.0
Supplies	31.5	27.8
Total inventories	$ 620.7	$ 538.9

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Long-Term Debt (Details) - USD ($)		9 Months Ended
	Feb. 14, 2017	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016	Apr. 04, 2016
Debt Instrument [Line Items]
Total debt		$ 1,710,000,000		$ 1,466,200,000
Less: Current portion of long-term debt		15,600,000		27,700,000
Total long-term debt		1,694,400,000		1,438,500,000
Proceeds from senior secured notes, inclusive of premiums		263,800,000	$ 540,400,000
Line of Credit | ABL Facility
Debt Instrument [Line Items]
Total debt		245,000,000		255,300,000
Senior Notes | 7 7/8% Senior Notes
Debt Instrument [Line Items]
Total debt		436,400,000		435,500,000
Debt discount (premium) and deferred issuance costs		$ 3,600,000		4,500,000
Stated interest rate		7.875%
Senior Notes | 9 1/2% Senior Notes
Debt Instrument [Line Items]
Total debt		$ 800,800,000		538,400,000
Debt discount (premium) and deferred issuance costs		$ 800,000		11,600,000
Stated interest rate		9.50%
Senior Notes | 9 1/2% Senior Notes, Issued February 2017
Debt Instrument [Line Items]
Stated interest rate	9.50%
Debt instrument, face amount	$ 250,000,000
Proceeds from senior secured notes, inclusive of premiums	$ 263,800,000
Senior Notes | 9 1/2% Senior Notes, Issued April 2016
Debt Instrument [Line Items]
Stated interest rate					9.50%
Debt instrument, face amount					$ 550.0
Senior Subordinated Notes | Senior Subordinated Exchangeable Notes
Debt Instrument [Line Items]
Total debt		$ 44,500,000		44,400,000
Debt discount		300,000		400,000
Notes Payable to Banks | Zhenjiang term loans
Debt Instrument [Line Items]
Total debt		166,800,000		164,500,000
Debt discount		500,000		500,000
Foreign Line of Credit | Zhenjiang revolver
Debt Instrument [Line Items]
Total debt		6,600,000		22,000,000
Debt discount		100,000		100,000
Other Long-term Debt
Debt Instrument [Line Items]
Total debt		$ 9,900,000		$ 6,100,000

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Commitments And Contingencies (Details) $ in Millions	9 Months Ended
	Sep. 30, 2017 USD ($) Foreign_Countries States Site	Dec. 31, 2016 USD ($)
Loss Contingencies [Line Items]
Number of Superfund sites with operations and maintenance | Site	2
Number of states in which company performs environmental remediation | States	4
Number of foreign countries with environmental remediations | Foreign_Countries	1
Number of sites with environmental remediations | Site	7
Portion of environmental liabilities indemnified by Corus Group Ltd.	$ 11.4	$ 11.5
Asset retirement obligation	$ 5.6	4.7
Estimated time frame of disbursements	10 years
Other Long-Term Liabilities and Accrued Liabilities
Loss Contingencies [Line Items]
Reserves for environmental remediation liabilities	$ 23.5	$ 23.8

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Stockholders' Equity (Schedule of Stockholders' Equity) (Details) $ in Millions	9 Months Ended
	Sep. 30, 2017 USD ($)
Increase (Decrease) in Stockholders' Equity Disclosure [Roll Forward]
Total Equity at beginning of period	$ 216.6
Total Equity at end of period	183.2
Aleris Corporation
Increase (Decrease) in Stockholders' Equity Disclosure [Roll Forward]
Total Equity at beginning of period	216.6
Net income attributable to Aleris Corporation	(103.3)
Other comprehensive income	74.3
Stock-based compensation activity	0.3
Adoption of new accounting standard	(4.7)
Total Equity at end of period	$ 183.2

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Stockholders' Equity (Changes in the Number of Outstanding Common Stock) (Details)	9 Months Ended
	Sep. 30, 2017 shares
Outstanding Shares of Common Stock [Roll Forward]
Balance at January 1, 2017 (in shares)	31,904,250
Balance at June 30, 2017 (in shares)	31,998,284
Restricted Stock
Outstanding Shares of Common Stock [Roll Forward]
Issuance associated with vested restricted stock units (in shares)	94,034

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Accumulated Other Comprehensive Loss (Details) $ in Millions	9 Months Ended
	Sep. 30, 2017 USD ($)
Accumulated Other Comprehensive Income [Roll Forward]
Balance at January 1, 2017	$ (223.5)
Current period currency translation adjustments	72.0
Amortization of net actuarial losses and prior service costs, net of tax	2.3
Balance at September 30, 2017	(149.2)
Currency translation
Accumulated Other Comprehensive Income [Roll Forward]
Balance at January 1, 2017	(150.9)
Current period currency translation adjustments	76.0
Amortization of net actuarial losses and prior service costs, net of tax	0.0
Balance at September 30, 2017	(74.9)
Pension and other postretirement
Accumulated Other Comprehensive Income [Roll Forward]
Balance at January 1, 2017	(72.6)
Current period currency translation adjustments	(4.0)
Amortization of net actuarial losses and prior service costs, net of tax	2.3
Balance at September 30, 2017	(74.3)
Reclassification out of Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income [Roll Forward]
Amortization of net actuarial losses and prior service costs	(3.4)	[1]
Deferred tax benefit on pension and other postretirement liability adjustments	1.1
Losses reclassified into earnings, net of tax	$ (2.3)

[1] This component of accumulated other comprehensive loss is included in the computation of net periodic benefit expense and net postretirement benefit expense (see Note 10, “Employee Benefit Plans,” for additional detail).

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Segment Information (Schedule of Revenues and Segment Income) (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($) Operating_Segment	Sep. 30, 2016 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments | Operating_Segment			3
Revenue for Reportable Segments
Revenues	$ 712.8	$ 683.4	$ 2,163.2	$ 2,050.9
Segment income	52.6	61.6	186.9	189.8
External Customers
Revenue for Reportable Segments
Revenues	712.8	683.4	2,163.2	2,050.9
Intra-entity
Revenue for Reportable Segments
Revenues	0.0	0.0	0.0	0.0
Operating segments | North America
Revenue for Reportable Segments
Revenues	364.4	358.6	1,129.0	1,054.3
Segment income	19.9	18.1	75.2	69.8
Operating segments | Europe
Revenue for Reportable Segments
Revenues	324.3	304.8	969.2	940.9
Segment income	28.4	40.7	101.7	113.8
Operating segments | Asia Pacific
Revenue for Reportable Segments
Revenues	32.2	29.2	87.1	75.7
Segment income	4.3	2.8	10.0	6.2
Operating segments | External Customers | North America
Revenue for Reportable Segments
Revenues	364.4	358.1	1,129.0	1,053.2
Operating segments | External Customers | Europe
Revenue for Reportable Segments
Revenues	318.4	297.6	951.9	927.0
Operating segments | External Customers | Asia Pacific
Revenue for Reportable Segments
Revenues	30.0	27.7	82.3	70.7
Operating segments | Intra-entity | North America
Revenue for Reportable Segments
Revenues	0.0	0.5	0.0	1.1
Operating segments | Intra-entity | Europe
Revenue for Reportable Segments
Revenues	5.9	7.2	17.3	13.9
Operating segments | Intra-entity | Asia Pacific
Revenue for Reportable Segments
Revenues	2.2	1.5	4.8	5.0
Intra-entity Eliminations | Intra-entity
Revenue for Reportable Segments
Revenues	$ (8.1)	$ (9.2)	$ (22.1)	$ (20.0)

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Segment Information (Reconciliation of Segment Income to Consolidated Statements of Comprehensive Loss) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Depreciation and amortization			$ (82.0)	$ (78.8)
Restructuring charges	$ (0.9)	$ (0.3)	(2.1)	(1.8)
Interest expense, net	(32.0)	(19.2)	(90.4)	(58.4)
Unallocated (losses) gains on derivative financial instruments	(14.9)	(0.2)	(30.6)	(2.8)
Loss on extinguishment of debt			0.0	(12.6)
Loss before income taxes	(64.1)	(4.7)	(78.2)	(5.9)
Operating segments
Segment Reporting Information [Line Items]
Net income attributable to Aleris Corporation	52.6	61.6	186.9	189.8
Unallocated Amounts
Segment Reporting Information [Line Items]
Depreciation and amortization	(30.5)	(26.2)	(82.0)	(78.8)
Other corporate general and administrative expenses	(8.9)	(14.8)	(32.1)	(39.5)
Restructuring charges	(0.9)	(0.3)	(2.1)	(1.8)
Interest expense, net	(32.0)	(19.2)	(90.4)	(58.4)
Unallocated (losses) gains on derivative financial instruments	(18.4)	8.8	(1.0)	23.7
Unallocated currency exchange losses	(2.0)	(0.5)	(3.7)	(1.2)
Start-up costs	(22.8)	(14.1)	(52.6)	(30.4)
Loss on extinguishment of debt	0.0	0.0	0.0	(12.6)
Other (expense) income, net	$ (1.2)	$ 0.0	$ (1.2)	$ 3.3

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Segment Information (Reconciliation of Reportable Segment Assets) (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	$ 2,693.8	$ 2,389.9
Operating segments | North America
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	1,327.7	1,180.2
Operating segments | Europe
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	772.5	645.3
Operating segments | Asia Pacific
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	363.5	358.6
Unallocated Amounts
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	$ 230.1	$ 205.8

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Stock-Based Compensation (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
	Jun. 01, 2010	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Life of award	10 years
Award vesting period	4 years
Stock options granted (in shares)				0
Restricted stock units granted (in shares)				0
Stock options forfeited (in shares)				33,157
Stock-based compensation expense		$ 0.4	$ 1.8	$ 1.5	$ 5.2

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Income Taxes (Details) $ in Millions	Sep. 30, 2017 USD ($)
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 2.7
Accrued interest related to uncertain tax positions	$ 0.8

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Employee Benefit Plans (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Defined Benefit Plan Disclosure [Line Items]
Amortization of net actuarial losses (gains)			$ (2.3)
Other Postretirement Benefit Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 0.0	$ 0.0	0.1	$ 0.1
Interest cost	0.3	0.3	0.9	1.0
Amortization of net actuarial losses (gains)	(0.1)	0.0	(0.4)	(0.1)
Net periodic benefit expense	0.2	0.3	0.6	1.0
U.S. | Pension Plan
Defined Benefit Plan Disclosure [Line Items]
Service cost	1.0	0.9	2.9	2.7
Interest cost	1.4	1.5	4.4	4.5
Amortization of net actuarial losses (gains)	0.5	0.5	1.4	1.4
Amortization of prior service cost	0.1	0.1	0.2	0.2
Expected return on plan assets	(2.6)	(2.5)	(7.7)	(7.5)
Net periodic benefit expense	0.4	0.5	1.2	1.3
Non U.S. Pension Benefits | Pension Plan
Defined Benefit Plan Disclosure [Line Items]
Service cost	0.9	0.5	2.7	1.5
Interest cost	0.4	0.5	1.3	1.5
Amortization of net actuarial losses (gains)	0.7	0.4	2.1	1.2
Net periodic benefit expense	$ 2.0	$ 1.4	$ 6.1	$ 4.2

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Derivative And Other Financial Instruments (Narratives) (Details) gal in Millions, T in Millions, BTU in Trillions	9 Months Ended	12 Months Ended
	Sep. 30, 2017 EUR (€) BTU gal T	Dec. 31, 2016 EUR (€) BTU gal T	Sep. 30, 2017 USD ($) BTU gal T	Dec. 31, 2016 USD ($) BTU gal T
Derivative [Line Items]
Cash collateral posted | $			$ 0	$ 0
Metal
Derivative [Line Items]
Maximum settlement period of derivatives (in months)	3 months
Tons of metal in forward contracts with the right to buy (in tons)	0.1	0.1	0.1	0.1
Tons of metal in forward contracts with the right to sell (in tons)	0.2	0.2	0.2	0.2
Energy Related Derivative
Derivative [Line Items]
British thermal units in forward buy contracts (in British thermal units) | BTU	0.5	2.1	0.5	2.1
Gallons in diesel swap contracts (in gallons) | gal	1.0	0.0	1.0	0.0
Currency
Derivative [Line Items]
Euros in forward contracts | €	€ 54,800,000	€ 34,600,000.0
Convertible Notes Payable
Derivative [Line Items]
Risk-free interest rate (percent)	1.60%	1.60%
Expected equity volatility rate (percent)	43.00%	45.00%
Zhenjiang term loans
Derivative [Line Items]
Maximum period for variable interest rate paid (in months)	6 months
Senior Notes | 7 7/8% Senior Notes
Derivative [Line Items]
Stated interest rate	7.875%		7.875%
Senior Notes | 9 1/2% Senior Notes
Derivative [Line Items]
Stated interest rate	9.50%		9.50%

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Derivative And Other Financial Instruments (Schedule of Derivative Instruments) (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Asset
Fair value	$ 16.7	$ 9.6
Effect of counterparty netting	(11.7)	(6.6)
Net derivatives as classified in the balance sheet	5.0	3.0
Liability
Fair value	(22.2)	(14.6)
Effect of counterparty netting	11.7	6.6
Net derivatives as classified in the balance sheet	(10.5)	(8.0)
Metal
Asset
Fair value	15.3	8.9
Liability
Fair value	(21.6)	(12.3)
Energy Related Derivative
Asset
Fair value	0.2	0.7
Liability
Fair value	(0.1)	0.0
Currency
Asset
Fair value	1.2	0.0
Liability
Fair value	$ (0.5)	$ (2.3)

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Derivative And Other Financial Instruments (Schedule of Derivative Instruments in Balance Sheet by Contract Type) (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Derivatives, Fair Value [Line Items]
Prepaid expenses and other current assets	$ 39.5	$ 33.4
Other long-term assets	69.9	72.2
Total Asset Derivatives	5.0	3.0
Accrued liabilities	215.4	201.4
Other long-term liabilities	66.5	63.7
Total Liability Derivatives	10.5	8.0
Metal
Derivatives, Fair Value [Line Items]
Prepaid expenses and other current assets	0.1	2.3
Other long-term assets	3.8	0.0
Accrued liabilities	10.3	5.1
Other long-term liabilities	0.0	0.6
Energy Related Derivative
Derivatives, Fair Value [Line Items]
Prepaid expenses and other current assets	0.2	0.7
Accrued liabilities	0.1	0.0
Currency
Derivatives, Fair Value [Line Items]
Prepaid expenses and other current assets	0.9	0.0
Accrued liabilities	0.0	1.8
Other long-term liabilities	$ 0.1	$ 0.5

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Derivative And Other Financial Instruments (Schedule of Realized (Gains) Losses on Derivatives) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Metal
Derivative Instruments, Loss [Line Items]
Realized losses on derivative financial instruments	$ (3.6)	$ 9.1	$ 28.2	$ 25.4
Energy Related Derivative
Derivative Instruments, Loss [Line Items]
Realized losses on derivative financial instruments	0.3	(0.3)	0.8	0.6
Currency
Derivative Instruments, Loss [Line Items]
Realized losses on derivative financial instruments	$ (0.6)	$ 0.2	$ 0.0	$ 0.4

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Derivative And Other Financial Instruments (Schedule of Fair Value for Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Quoted prices in active markets for identical assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 71.9	$ 55.6
Restricted cash	3.6	0.0
Significant other observable inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Receivables held in escrow	18.9	20.6
Lines of credit	245.0	255.3
Significant unobservable inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Exchangeable Notes	81.4	81.4
7 7/8% Senior Notes | Quoted prices in active markets for identical assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior notes	439.8	441.7
9 1/2% Senior Notes | Quoted prices in active markets for identical assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior notes	853.7	594.0
Zhenjiang term loans | Significant unobservable inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Zhenjiang Term Loans	167.3	165.0
Zhenjiang revolver | Significant unobservable inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Lines of credit	6.7	22.1
Carrying Amount | Quoted prices in active markets for identical assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	71.9	55.6
Restricted cash	3.6	0.0
Carrying Amount | Significant other observable inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Receivables held in escrow	17.0	17.0
Lines of credit	245.0	255.3
Carrying Amount | Significant unobservable inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Exchangeable Notes	44.5	44.4
Carrying Amount | 7 7/8% Senior Notes | Quoted prices in active markets for identical assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior notes	436.4	435.5
Carrying Amount | 9 1/2% Senior Notes | Quoted prices in active markets for identical assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior notes	800.8	538.4
Carrying Amount | Zhenjiang term loans | Significant unobservable inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Zhenjiang Term Loans	166.8	164.5
Carrying Amount | Zhenjiang revolver | Significant unobservable inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Lines of credit	$ 6.6	$ 22.0

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Potential Acquisition Of Aleris Corporation (Details) $ in Millions	Aug. 29, 2016 USD ($)
Zhongwang USA LLC
Business Acquisition [Line Items]
Agreed upon payment	$ 1,110.0

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Condensed Consolidating Financial Statements (Condensed Balance Sheet) (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016
Current Assets
Cash and cash equivalents	$ 71.9	$ 55.6	$ 36.5
Accounts receivable, net	297.7	218.7
Inventories	620.7	538.9
Prepaid expenses and other current assets	39.5	33.4
Intercompany receivables	0.0	0.0
Total Current Assets	1,029.8	846.6
Property, plant and equipment, net	1,467.0	1,346.0
Intangible assets, net	35.2	36.8
Deferred income taxes	91.9	88.3
Other long-term assets	69.9	72.2
Investments in subsidiaries	0.0	0.0
Total Assets	2,693.8	2,389.9
Current Liabilities
Accounts payable	297.1	246.6
Accrued liabilities	215.4	201.4
Current portion of long-term debt	15.6	27.7
Intercompany payables	0.0	0.0
Total Current Liabilities	528.1	475.7
Long-term debt	1,694.4	1,438.5
Deferred income taxes	17.1	2.8
Accrued pension benefits	171.6	158.4
Accrued postretirement benefits	32.9	34.2
Other long-term liabilities	66.5	63.7
Total Long-Term Liabilities	1,982.5	1,697.6
Total equity	183.2	216.6
Total Liabilities and Equity	2,693.8	2,389.9
Eliminations
Current Assets
Cash and cash equivalents	(3.6)	(3.2)
Accounts receivable, net	0.0	0.0
Inventories	0.0	0.0
Prepaid expenses and other current assets	0.0	0.0
Intercompany receivables	(926.3)	(1,358.6)
Total Current Assets	(929.9)	(1,361.8)
Property, plant and equipment, net	0.0	0.0
Intangible assets, net	0.0	0.0
Deferred income taxes	0.0	0.0
Other long-term assets	0.0	0.0
Investments in subsidiaries	(1,514.1)	(1,310.0)
Total Assets	(2,444.0)	(2,671.8)
Current Liabilities
Accounts payable	(3.6)	(3.2)
Accrued liabilities	0.0	0.0
Current portion of long-term debt	0.0	0.0
Intercompany payables	(926.3)	(1,358.6)
Total Current Liabilities	(929.9)	(1,361.8)
Long-term debt	0.0	0.0
Deferred income taxes	0.0	0.0
Accrued pension benefits	0.0	0.0
Accrued postretirement benefits	0.0	0.0
Other long-term liabilities	0.0	0.0
Total Long-Term Liabilities	0.0	0.0
Total equity	(1,514.1)	(1,310.0)
Total Liabilities and Equity	(2,444.0)	(2,671.8)
Aleris Corporation (Parent) | Reportable Legal Entities
Current Assets
Cash and cash equivalents	0.0	0.0
Accounts receivable, net	0.0	0.0
Inventories	0.0	0.0
Prepaid expenses and other current assets	0.0	0.0
Intercompany receivables	0.0	0.0
Total Current Assets	0.0	0.0
Property, plant and equipment, net	0.0	0.0
Intangible assets, net	0.0	0.0
Deferred income taxes	0.0	0.0
Other long-term assets	0.0	0.0
Investments in subsidiaries	185.3	217.6
Total Assets	185.3	217.6
Current Liabilities
Accounts payable	0.0	0.0
Accrued liabilities	0.0	0.0
Current portion of long-term debt	0.0	0.0
Intercompany payables	2.1	1.0
Total Current Liabilities	2.1	1.0
Long-term debt	0.0	0.0
Deferred income taxes	0.0	0.0
Accrued pension benefits	0.0	0.0
Accrued postretirement benefits	0.0	0.0
Other long-term liabilities	0.0	0.0
Total Long-Term Liabilities	0.0	0.0
Total equity	183.2	216.6
Total Liabilities and Equity	185.3	217.6
Aleris International, Inc. | Reportable Legal Entities
Current Assets
Cash and cash equivalents	42.7	5.5
Accounts receivable, net	0.0	0.0
Inventories	0.0	0.0
Prepaid expenses and other current assets	2.1	0.0
Intercompany receivables	666.0	897.9
Total Current Assets	710.8	903.4
Property, plant and equipment, net	0.0	0.0
Intangible assets, net	0.0	0.0
Deferred income taxes	0.0	0.0
Other long-term assets	11.5	10.8
Investments in subsidiaries	1,339.3	1,089.6
Total Assets	2,061.6	2,003.8
Current Liabilities
Accounts payable	4.2	1.8
Accrued liabilities	64.2	19.8
Current portion of long-term debt	0.0	0.0
Intercompany payables	366.2	616.2
Total Current Liabilities	434.6	637.8
Long-term debt	1,441.7	1,148.4
Deferred income taxes	0.0	0.0
Accrued pension benefits	0.0	0.0
Accrued postretirement benefits	0.0	0.0
Other long-term liabilities	0.0	0.0
Total Long-Term Liabilities	1,441.7	1,148.4
Total equity	185.3	217.6
Total Liabilities and Equity	2,061.6	2,003.8
Guarantor Subsidiaries | Reportable Legal Entities
Current Assets
Cash and cash equivalents	0.0	0.0
Accounts receivable, net	111.8	81.0
Inventories	271.4	240.8
Prepaid expenses and other current assets	11.8	15.2
Intercompany receivables	227.4	296.5
Total Current Assets	622.4	633.5
Property, plant and equipment, net	908.6	819.1
Intangible assets, net	19.3	20.9
Deferred income taxes	0.0	0.0
Other long-term assets	6.2	6.1
Investments in subsidiaries	(10.5)	2.8
Total Assets	1,546.0	1,482.4
Current Liabilities
Accounts payable	144.4	126.1
Accrued liabilities	77.4	109.3
Current portion of long-term debt	1.0	0.5
Intercompany payables	530.3	719.6
Total Current Liabilities	753.1	955.5
Long-term debt	1.3	0.6
Deferred income taxes	0.5	0.2
Accrued pension benefits	42.8	44.1
Accrued postretirement benefits	32.9	34.2
Other long-term liabilities	37.1	36.5
Total Long-Term Liabilities	114.6	115.6
Total equity	678.3	411.3
Total Liabilities and Equity	1,546.0	1,482.4
Non-Guarantor Subsidiaries | Reportable Legal Entities
Current Assets
Cash and cash equivalents	32.8	53.3
Accounts receivable, net	185.9	137.7
Inventories	349.3	298.1
Prepaid expenses and other current assets	25.6	18.2
Intercompany receivables	32.9	164.2
Total Current Assets	626.5	671.5
Property, plant and equipment, net	558.4	526.9
Intangible assets, net	15.9	15.9
Deferred income taxes	91.9	88.3
Other long-term assets	52.2	55.3
Investments in subsidiaries	0.0	0.0
Total Assets	1,344.9	1,357.9
Current Liabilities
Accounts payable	152.1	121.9
Accrued liabilities	73.8	72.3
Current portion of long-term debt	14.6	27.2
Intercompany payables	27.7	21.8
Total Current Liabilities	268.2	243.2
Long-term debt	251.4	289.5
Deferred income taxes	16.6	2.6
Accrued pension benefits	128.8	114.3
Accrued postretirement benefits	0.0	0.0
Other long-term liabilities	29.4	27.2
Total Long-Term Liabilities	426.2	433.6
Total equity	650.5	681.1
Total Liabilities and Equity	$ 1,344.9	$ 1,357.9
7 7/8% Senior Notes | Senior Notes
Condensed Financial Statements, Captions [Line Items]
Stated interest rate	7.875%
9 1/2% Senior Notes | Senior Notes
Condensed Financial Statements, Captions [Line Items]
Stated interest rate	9.50%

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Condensed Consolidating Financial Statements (Condensed Income Statement) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Condensed Financial Statements, Captions [Line Items]
Revenues	$ 712.8	$ 683.4	$ 2,163.2	$ 2,050.9
Cost of sales	675.2	610.6	1,954.9	1,826.0
Gross profit	37.6	72.8	208.3	224.9
Selling, general and administrative expenses	49.5	58.8	153.6	159.3
Restructuring charges	0.9	0.3	2.1	1.8
(Gains) losses on derivative financial instruments	14.9	0.2	30.6	2.8
Other operating expense, net	2.0	1.0	4.0	2.5
Operating (loss) income	(29.7)	12.5	18.0	58.5
Interest expense, net	32.0	19.2	90.4	58.4
Other (income) expense, net	2.4	(2.0)	5.8	6.0
Equity in net loss of affiliates	0.0	0.0	0.0	0.0
Loss before income taxes	(64.1)	(4.7)	(78.2)	(5.9)
Provision for income taxes	1.6	12.3	25.1	30.5
(Loss) income from continuing operations	(65.7)	(17.0)	(103.3)	(36.4)
Loss from discontinued operations, net of tax	0.0	(4.6)	0.0	(4.6)
Net loss	(65.7)	(21.6)	(103.3)	(41.0)
Comprehensive (loss) income	(40.9)	(15.8)	(29.0)	(29.0)
Eliminations
Condensed Financial Statements, Captions [Line Items]
Revenues	(5.8)	(7.5)	(17.1)	(14.8)
Cost of sales	(5.8)	(7.5)	(17.1)	(14.8)
Gross profit	0.0	0.0	0.0	0.0
Selling, general and administrative expenses	0.0	0.0	0.0	0.0
Restructuring charges		0.0
(Gains) losses on derivative financial instruments	0.0	0.0	0.0	0.0
Other operating expense, net	0.0	0.0	0.0	0.0
Operating (loss) income	0.0	0.0	0.0	0.0
Interest expense, net	0.0	0.0	0.0	0.0
Other (income) expense, net	0.0	0.0	0.0	0.0
Equity in net loss of affiliates	(127.2)	(37.9)	(203.5)	(66.2)
Loss before income taxes	127.2	37.9	203.5	66.2
Provision for income taxes	0.0	0.0	0.0	0.0
(Loss) income from continuing operations		37.9		66.2
Loss from discontinued operations, net of tax		0.0		0.0
Net loss	127.2	37.9	203.5	66.2
Comprehensive (loss) income	77.6	26.3	54.8	42.3
Aleris Corporation (Parent) | Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Revenues	0.0	0.0	0.0	0.0
Cost of sales	0.0	0.0	0.0	0.0
Gross profit	0.0	0.0	0.0	0.0
Selling, general and administrative expenses	0.0	0.0	0.0	0.0
Restructuring charges	0.0	0.0	0.0	0.0
(Gains) losses on derivative financial instruments	0.0	0.0	0.0	0.0
Other operating expense, net	0.0	0.0	0.0	0.0
Operating (loss) income	0.0	0.0	0.0	0.0
Interest expense, net	0.0	0.0	0.0	0.0
Other (income) expense, net	0.0	0.0	0.0	0.0
Equity in net loss of affiliates	65.7	21.6	103.3	41.0
Loss before income taxes	(65.7)	(21.6)	(103.3)	(41.0)
Provision for income taxes	0.0	0.0	0.0	0.0
(Loss) income from continuing operations		(21.6)		(41.0)
Loss from discontinued operations, net of tax		0.0		0.0
Net loss	(65.7)	(21.6)	(103.3)	(41.0)
Comprehensive (loss) income	(40.9)	(15.8)	(29.0)	(29.0)
Aleris International, Inc. | Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Revenues	0.0	0.0	0.0	0.0
Cost of sales	0.0	0.0	0.0	0.0
Gross profit	0.0	0.0	0.0	0.0
Selling, general and administrative expenses	5.6	0.4	5.7	1.7
Restructuring charges	0.0	0.0	0.0	0.0
(Gains) losses on derivative financial instruments	0.0	0.0	0.0	0.0
Other operating expense, net	0.0	0.0	0.0	0.0
Operating (loss) income	(5.6)	(0.4)	(5.7)	(1.7)
Interest expense, net	0.0	0.0	0.0	0.0
Other (income) expense, net	(1.2)	(0.2)	(2.0)	8.5
Equity in net loss of affiliates	61.2	16.6	99.5	25.9
Loss before income taxes	(65.6)	(16.8)	(103.2)	(36.1)
Provision for income taxes	0.1	0.2	0.1	0.3
(Loss) income from continuing operations		(17.0)		(36.4)
Loss from discontinued operations, net of tax		(4.6)		(4.6)
Net loss	(65.7)	(21.6)	(103.3)	(41.0)
Comprehensive (loss) income	(40.9)	(15.8)	(29.0)	(29.0)
Guarantor Subsidiaries | Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Revenues	364.4	358.6	1,129.0	1,054.3
Cost of sales	360.8	341.1	1,072.4	981.0
Gross profit	3.6	17.5	56.6	73.3
Selling, general and administrative expenses	22.6	39.9	84.1	99.0
Restructuring charges	0.2	0.3	1.3	0.9
(Gains) losses on derivative financial instruments	13.7	1.1	30.5	1.7
Other operating expense, net	2.0	0.9	3.9	2.3
Operating (loss) income	(34.9)	(24.7)	(63.2)	(30.6)
Interest expense, net	24.9	11.8	70.2	34.1
Other (income) expense, net	(0.1)	(1.1)	(2.2)	(3.1)
Equity in net loss of affiliates	0.3	(0.3)	0.7	(0.7)
Loss before income taxes	(60.0)	(35.1)	(131.9)	(60.9)
Provision for income taxes	0.1	0.5	0.0	0.1
(Loss) income from continuing operations		(35.6)		(61.0)
Loss from discontinued operations, net of tax		0.0		0.0
Net loss	(60.1)	(35.6)	(131.9)	(61.0)
Comprehensive (loss) income	(59.3)	(34.6)	(129.5)	(59.1)
Non-Guarantor Subsidiaries | Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Revenues	354.2	332.3	1,051.3	1,011.4
Cost of sales	320.2	277.0	899.6	859.8
Gross profit	34.0	55.3	151.7	151.6
Selling, general and administrative expenses	21.3	18.5	63.8	58.6
Restructuring charges	0.7	0.0	0.8	0.9
(Gains) losses on derivative financial instruments	1.2	(0.9)	0.1	1.1
Other operating expense, net	0.0	0.1	0.1	0.2
Operating (loss) income	10.8	37.6	86.9	90.8
Interest expense, net	7.1	7.4	20.2	24.3
Other (income) expense, net	3.7	(0.7)	10.0	0.6
Equity in net loss of affiliates	0.0	0.0	0.0	0.0
Loss before income taxes	0.0	30.9	56.7	65.9
Provision for income taxes	1.4	11.6	25.0	30.1
(Loss) income from continuing operations		19.3		35.8
Loss from discontinued operations, net of tax		0.0		0.0
Net loss	(1.4)	19.3	31.7	35.8
Comprehensive (loss) income	$ 22.6	$ 24.1	$ 103.7	$ 45.8

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Condensed Consolidating Financial Statements (Condensed Cash Flow Statement) (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016
Condensed Financial Statements, Captions [Line Items]
Net cash provided (used) by operating activities	$ (32.5)	$ 46.6
Investing activities
Payments for property, plant and equipment	(174.9)	(295.7)
Proceeds from Collection of Advance to Affiliate	0.0
Payments for Advance to Affiliate		0.0
Equity contributions in subsidiaries	0.0
Return of investment in subsidiaries	0.0	0.0
Other	(2.5)	(1.2)
Net cash used by investing activities	(177.4)	(296.9)
Financing activities
Proceeds from revolving credit facilities	401.7	200.1
Payments on revolving credit facilities	(429.2)	(61.7)
Proceeds from senior secured notes, inclusive of premiums	263.8	540.4
Payments on senior notes, including premiums	0.0	(443.8)
Payments on other long-term debt	(5.5)	(6.7)
Debt issuance costs	(2.5)	(3.5)
Repayments of Other Debt	0.0
Proceeds from Contributions from Affiliates	0.0
Proceeds from (Repayments of) Related Party Debt		0.0
Dividends paid	0.0	0.0
Other	(1.5)	(0.7)
Net cash provided by financing activities	226.8	224.1
Effect of exchange rate differences on cash, cash equivalents and restricted cash	3.0	0.5
Net increase (decrease) in cash, cash equivalents and restricted cash	19.9	(25.7)
Cash, cash equivalents and restricted cash at beginning of period	55.6	62.2
Cash, cash equivalents and restricted cash at end of period	75.5	36.5
Cash and cash equivalents			$ 71.9	$ 55.6	$ 36.5
Restricted cash (included in “Other current assets”)			3.6		0.0
Cash, cash equivalents and restricted cash	55.6	62.2	75.5	55.6	$ 36.5	$ 36.5
Reportable Legal Entities | Aleris Corporation (Parent)
Condensed Financial Statements, Captions [Line Items]
Net cash provided (used) by operating activities	1.3	0.6
Investing activities
Payments for property, plant and equipment	0.0	0.0
Proceeds from Collection of Advance to Affiliate	0.0
Payments for Advance to Affiliate		0.0
Equity contributions in subsidiaries	0.0
Return of investment in subsidiaries	0.0	0.0
Other	0.0	0.0
Net cash used by investing activities	0.0	0.0
Financing activities
Proceeds from revolving credit facilities	0.0	0.0
Payments on revolving credit facilities	0.0	0.0
Proceeds from senior secured notes, inclusive of premiums		0.0
Payments on senior notes, including premiums		0.0
Payments on other long-term debt	0.0	0.0
Debt issuance costs
Repayments of Other Debt	0.0
Proceeds from Contributions from Affiliates	0.0
Proceeds from (Repayments of) Related Party Debt		0.0
Dividends paid	0.0	0.0
Other	(1.3)	(0.6)
Net cash provided by financing activities	(1.3)	(0.6)
Effect of exchange rate differences on cash, cash equivalents and restricted cash	0.0	0.0
Net increase (decrease) in cash, cash equivalents and restricted cash	0.0	0.0
Cash, cash equivalents and restricted cash at beginning of period	0.0	0.0
Cash, cash equivalents and restricted cash at end of period	0.0
Cash and cash equivalents			0.0	0.0
Restricted cash (included in “Other current assets”)			0.0
Cash, cash equivalents and restricted cash	0.0	0.0	0.0	0.0		0.0
Reportable Legal Entities | Aleris International, Inc.
Condensed Financial Statements, Captions [Line Items]
Net cash provided (used) by operating activities	299.2	(273.6)
Investing activities
Payments for property, plant and equipment	0.0	0.0
Proceeds from Collection of Advance to Affiliate	0.0
Payments for Advance to Affiliate		0.0
Equity contributions in subsidiaries	(426.6)
Return of investment in subsidiaries	8.3	15.2
Other	0.0	0.0
Net cash used by investing activities	(418.3)	15.2
Financing activities
Proceeds from revolving credit facilities	215.0	175.0
Payments on revolving credit facilities	(185.0)	(60.0)
Proceeds from senior secured notes, inclusive of premiums	263.8	540.4
Payments on senior notes, including premiums		(443.8)
Payments on other long-term debt	0.0	(0.5)
Debt issuance costs	(2.5)	(3.5)
Repayments of Other Debt	(135.0)
Proceeds from Contributions from Affiliates	0.0
Proceeds from (Repayments of) Related Party Debt		50.0
Dividends paid	0.0	0.0
Other	0.0	0.8
Net cash provided by financing activities	156.3	258.4
Effect of exchange rate differences on cash, cash equivalents and restricted cash	0.0	0.0
Net increase (decrease) in cash, cash equivalents and restricted cash	37.2	0.0
Cash, cash equivalents and restricted cash at beginning of period	5.5	0.0
Cash, cash equivalents and restricted cash at end of period	42.7
Cash and cash equivalents			42.7	5.5
Restricted cash (included in “Other current assets”)			0.0
Cash, cash equivalents and restricted cash	5.5	0.0	42.7	5.5		0.0
Reportable Legal Entities | Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Net cash provided (used) by operating activities	(247.8)	253.5
Investing activities
Payments for property, plant and equipment	(150.9)	(251.0)
Proceeds from Collection of Advance to Affiliate	0.0
Payments for Advance to Affiliate		0.0
Equity contributions in subsidiaries	(1.0)
Return of investment in subsidiaries	5.8	0.2
Other	(2.5)	(1.2)
Net cash used by investing activities	(148.6)	(252.0)
Financing activities
Proceeds from revolving credit facilities	0.0	0.0
Payments on revolving credit facilities	0.0	0.0
Proceeds from senior secured notes, inclusive of premiums	0.0	0.0
Payments on senior notes, including premiums		0.0
Payments on other long-term debt	(0.5)	(0.4)
Debt issuance costs	0.0	0.0
Repayments of Other Debt	0.0
Proceeds from Contributions from Affiliates	403.6
Proceeds from (Repayments of) Related Party Debt		0.0
Dividends paid	(7.1)	(0.9)
Other	0.4	(0.2)
Net cash provided by financing activities	396.4	(1.5)
Effect of exchange rate differences on cash, cash equivalents and restricted cash	0.0	0.0
Net increase (decrease) in cash, cash equivalents and restricted cash	0.0	0.0
Cash, cash equivalents and restricted cash at beginning of period	0.0	0.0
Cash, cash equivalents and restricted cash at end of period	0.0
Cash and cash equivalents			0.0	0.0
Restricted cash (included in “Other current assets”)			0.0
Cash, cash equivalents and restricted cash	0.0	0.0	0.0	0.0		0.0
Reportable Legal Entities | Non-Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Net cash provided (used) by operating activities	61.8	67.7
Investing activities
Payments for property, plant and equipment	(24.0)	(44.7)
Proceeds from Collection of Advance to Affiliate	135.0
Payments for Advance to Affiliate		50.0
Equity contributions in subsidiaries	0.0
Return of investment in subsidiaries	0.0	0.0
Other	0.0	0.0
Net cash used by investing activities	111.0	(94.7)
Financing activities
Proceeds from revolving credit facilities	186.7	25.1
Payments on revolving credit facilities	(244.2)	(1.7)
Proceeds from senior secured notes, inclusive of premiums	0.0	0.0
Payments on senior notes, including premiums		0.0
Payments on other long-term debt	(5.0)	(5.8)
Debt issuance costs	0.0	0.0
Repayments of Other Debt	0.0
Proceeds from Contributions from Affiliates	24.0
Proceeds from (Repayments of) Related Party Debt		0.0
Dividends paid	(153.6)	(16.1)
Other	(0.6)	(0.7)
Net cash provided by financing activities	(192.7)	0.8
Effect of exchange rate differences on cash, cash equivalents and restricted cash	3.0	0.5
Net increase (decrease) in cash, cash equivalents and restricted cash	(16.9)	(25.7)
Cash, cash equivalents and restricted cash at beginning of period	53.3	62.2
Cash, cash equivalents and restricted cash at end of period	36.4
Cash and cash equivalents			32.8	53.3
Restricted cash (included in “Other current assets”)			3.6
Cash, cash equivalents and restricted cash	53.3	62.2	36.4	53.3		36.5
Eliminations
Condensed Financial Statements, Captions [Line Items]
Net cash provided (used) by operating activities	(147.0)	(1.6)
Investing activities
Payments for property, plant and equipment	0.0	0.0
Proceeds from Collection of Advance to Affiliate	(135.0)
Payments for Advance to Affiliate		(50.0)
Equity contributions in subsidiaries	427.6
Return of investment in subsidiaries	(14.1)	(15.4)
Other	0.0	0.0
Net cash used by investing activities	278.5	34.6
Financing activities
Proceeds from revolving credit facilities	0.0	0.0
Payments on revolving credit facilities	0.0	0.0
Proceeds from senior secured notes, inclusive of premiums		0.0
Payments on senior notes, including premiums		0.0
Payments on other long-term debt	0.0	0.0
Debt issuance costs	0.0	0.0
Repayments of Other Debt	135.0
Proceeds from Contributions from Affiliates	(427.6)
Proceeds from (Repayments of) Related Party Debt		(50.0)
Dividends paid	160.7	17.0
Other	0.0	0.0
Net cash provided by financing activities	(131.9)	(33.0)
Effect of exchange rate differences on cash, cash equivalents and restricted cash	0.0	0.0
Net increase (decrease) in cash, cash equivalents and restricted cash	(0.4)	0.0
Cash, cash equivalents and restricted cash at beginning of period	(3.2)	0.0
Cash, cash equivalents and restricted cash at end of period	(3.6)
Cash and cash equivalents			(3.6)	(3.2)
Restricted cash (included in “Other current assets”)			0.0
Cash, cash equivalents and restricted cash	$ (3.2)	$ 0.0	$ (3.6)	$ (3.2)		$ 0.0