Condensed Guarantor and Non-Guarantor Financial Information

The Company issued $225.0 aggregate principal amount of its Senior Notes pursuant to an indenture dated May 23, 2012 (“Indenture”), among Kaiser Aluminum Corporation ("Parent"), the subsidiary guarantors party thereto (“Guarantor Subsidiaries”) and Wells Fargo Bank, National Association, as trustee (“Trustee”). The Guarantor Subsidiaries currently include Kaiser Aluminum Investments Company, Kaiser Aluminum Fabricated Products, LLC, Kaiser Aluminum Mill Products, Inc., Kaiser Aluminum Washington, LLC and Kaiser Aluminum Alexco, LLC, all of which are 100% owned by the Parent. The guarantees are full and unconditional and joint and several but have customary releases in the following situations: (i) the sale of the Guarantor Subsidiary or all of its assets; (ii) the declaration of a Guarantor Subsidiary as an unrestricted subsidiary under the Indenture; (iii) the termination or release of the Guarantor Subsidiary’s guarantee of certain other indebtedness; or (iv) the exercise of legal defeasance or covenant defeasance by the Company or the discharge of the Company’s obligations under the Indenture.

The following condensed consolidating financial information as of December 31, 2014 and December 31, 2013, and for the years ended December 31, 2014, December 31, 2013 and December 31, 2012 present (i) the financial position, results of operation and cash flows for each of (a) Parent, (b) the Guarantor Subsidiaries on a combined basis and (c) the Non-Guarantor Subsidiaries (as defined below) on a combined basis; (ii) the adjustments necessary to eliminate investments in subsidiaries and intercompany balances and transactions among Parent, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries; and (iii) the resulting totals, reflecting information for the Company on a consolidated basis, as reported. In the following tables, "Non- Guarantor Subsidiaries" refers to Kaiser Aluminum Canada Limited, Trochus Insurance Company, DCO Management, LLC, Kaiser Aluminum France, S.A.S. and Kaiser Aluminum Beijing Trading Company; and "Consolidating Adjustments" represent the adjustments necessary to eliminate the investments in the Company's subsidiaries and other intercompany sales and cost of sales transactions. The condensed consolidating financial information should be read in conjunction with the consolidated financial statements herein.

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2014



	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	175.3	$	2.4	$	—		$	177.7
Short-term investments	—		114.0		—		—			114.0
Receivables:
Trade receivables — net	—		126.1		3.2		—			129.3
Intercompany receivables	204.2		4.0		0.9		(209.1		)	—
Other	—		5.6		5.3		—			10.9
Inventories	—		208.0		7.6		(0.9		)	214.7
Prepaid expenses and other current assets	85.1		93.1		0.4		—			178.6
Total current assets	289.3		726.1		19.8		(210.0		)	825.2
Investments in and advances to subsidiaries	1,209.2		32.5		—		(1,241.7		)	—
Property, plant and equipment — net	—		437.4		17.5		—			454.9
Long-term intercompany receivables	—		—		15.9		(15.9		)	—
Net assets of VEBAs	—		340.1		—		—			340.1
Deferred tax assets — net	—		23.8		—		7.1			30.9
Intangible assets — net	—		32.1		—		—			32.1
Goodwill	—		37.2		—		—			37.2
Other assets	4.4		18.8		0.1		—			23.3
Total	$	1,502.9	$	1,648.0	$	53.3	$	(1,460.5	)	$	1,743.7
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1.3	$	73.8	$	6.3	$	—		$	81.4
Intercompany payable	—		221.3		3.3		(224.6		)	—
Accrued salaries, wages and related expenses	—		36.5		3.1		—			39.6
Other accrued liabilities	88.2		43.8		0.8		—			132.8
Current portion of long-term debt	172.5		—		—		—			172.5
Short-term capital lease	—		0.1		—		—			0.1
Total current liabilities	262.0		375.5		13.5		(224.6		)	426.4
Net liability in respect of VEBA	—		17.2		—		—			17.2
Deferred tax liabilities	—		—		0.9		—			0.9
Long-term intercompany payable	—		15.9		—		(15.9		)	—
Long-term liabilities	—		50.3		8.0		—			58.3
Long-term debt	225.0		—		—		—			225.0
Total liabilities	487.0		458.9		22.4		(240.5		)	727.8

Total stockholders’ equity	1,015.9		1,189.1		30.9		(1,220.0		)	1,015.9
Total	$	1,502.9	$	1,648.0	$	53.3	$	(1,460.5	)	$	1,743.7

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2013



	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	5.0	$	157.7	$	6.8	$	—		$	169.5
Short-term investments	—		129.5		—		—			129.5
Receivables:
Trade receivables — net	—		117.7		2.1		—			119.8
Intercompany receivables	—		0.1		0.2		(0.3		)	—
Other	—		5.3		8.1		—			13.4
Inventories	—		208.6		6.4		(0.6		)	214.4
Prepaid expenses and other current assets	0.1		43.7		0.4		—			44.2
Total current assets	5.1		662.6		24.0		(0.9		)	690.8
Investments in and advances to subsidiaries	1,437.9		26.5		—		(1,464.4		)	—
Property, plant and equipment — net	—		414.0		15.3		—			429.3
Long-term intercompany receivables	31.3		1.6		9.5		(42.4		)	—
Net assets of VEBAs	—		406.0		—		—			406.0
Deferred tax assets — net	—		60.2		—		8.9			69.1
Intangible assets — net	—		33.7		—		—			33.7
Goodwill	—		37.2		—		—			37.2
Other assets	86.2		18.5		0.1		—			104.8
Total	$	1,560.5	$	1,660.3	$	48.9	$	(1,498.8	)	$	1,770.9
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1.1	$	56.3	$	5.5	$	—		$	62.9
Intercompany payable	—		13.9		0.1		(14.0		)	—
Accrued salaries, wages and related expenses	—		39.3		3.4		—			42.7
Other accrued liabilities	3.5		39.9		1.4		—			44.8
Short-term capital lease	—		0.2		—		—			0.2
Total current liabilities	4.6		149.6		10.4		(14.0		)	150.6
Deferred tax liabilities	—		—		1.2		—			1.2
Long-term intercompany payable	—		40.7		1.7		(42.4		)	—
Long-term liabilities	83.2		52.0		11.2		—			146.4
Long-term debt	388.5		—		—		—			388.5
Total liabilities	476.3		242.3		24.5		(56.4		)	686.7

Total stockholders’ equity	1,084.2		1,418.0		24.4		(1,442.4		)	1,084.2
Total	$	1,560.5	$	1,660.3	$	48.9	$	(1,498.8	)	$	1,770.9

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

Year Ended December 31, 2014



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
Net sales	$	—		$	1,323.4		$	133.9	$	(101.2	)	$	1,356.1
Costs and expenses:
Cost of products sold:
Cost of products sold, excluding depreciation and amortization and other items	—			1,098.3			117.8		(98.6		)	1,117.5
Unrealized loss on derivative instruments	—			10.4			—		—			10.4
Depreciation and amortization	—			30.0			1.1		—			31.1
Selling, administrative, research and development and general:
Selling, administrative, research and development and general	4.1			69.7			9.9		(2.3		)	81.4
Net periodic pension benefit income relating to VEBAs	—			(23.7		)	—		—			(23.7		)
Total selling, administrative, research and development and general	4.1			46.0			9.9		(2.3		)	57.7
Other operating charges, net	—			1.5			—		—			1.5
Total costs and expenses	4.1			1,186.2			128.8		(100.9		)	1,218.2
Operating (loss) income	(4.1		)	137.2			5.1		(0.3		)	137.9
Other (expense) income:
Interest expense	(37.5		)	(0.6		)	—		0.6			(37.5		)
Other income (expense), net	3.7			3.2			0.4		(0.6		)	6.7
(Loss) income before income taxes	(37.9		)	139.8			5.5		(0.3		)	107.1
Income tax (provision) benefit	—			(50.2		)	0.8		14.1			(35.3		)
Earnings in equity of subsidiaries	109.7			6.0			—		(115.7		)	—
Net income	$	71.8		$	95.6		$	6.3	$	(101.9	)	$	71.8

Comprehensive (loss) income	$	(3.6	)	$	19.9		$	6.6	$	(26.5	)	$	(3.6	)

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

Year Ended December 31, 2013



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
Net sales	$	—		$	1,275.2		$	118.0	$	(95.7	)	$	1,297.5
Costs and expenses:
Cost of products sold:
Cost of products sold, excluding depreciation and amortization and other items	—			1,026.0			105.7		(92.8		)	1,038.9
Unrealized gains on derivative instruments	—			(0.7		)	—		—			(0.7		)
Depreciation and amortization	—			27.0			1.1		—			28.1
Selling, administrative, research and development and general:
Selling, administrative, research and development and general	3.8			70.1			8.9		(2.4		)	80.4
Net periodic pension benefit income relating to VEBAs	—			(22.5		)	—		—			(22.5		)
Total selling, administrative, research and development and general	3.8			47.6			8.9		(2.4		)	57.9
Total costs and expenses	3.8			1,099.9			115.7		(95.2		)	1,124.2
Operating (loss) income	(3.8		)	175.3			2.3		(0.5		)	173.3
Other (expense) income:
Interest expense	(36.6		)	0.5			—		0.4			(35.7		)
Other income (expense), net	3.9			2.0			—		(0.3		)	5.6
(Loss) income before income taxes	(36.5		)	177.8			2.3		(0.4		)	143.2
Income tax (provision) benefit	—			(68.1		)	15.7		14.0			(38.4		)
Earnings in equity of subsidiaries	141.3			17.6			—		(158.9		)	—
Net income	$	104.8		$	127.3		$	18.0	$	(145.3	)	$	104.8

Comprehensive income	$	110.1		$	131.6		$	19.0	$	(150.6	)	$	110.1

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

Year Ended December 31, 2012



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	1,326.0		$	124.0		$	(89.9	)	$	1,360.1
Costs and expenses:
Cost of products sold:
Cost of products sold, excluding depreciation and amortization and other items	—			1,090.0			110.2			(84.0		)	1,116.2
Unrealized loss on derivative instruments	—			(15.2		)	—			—			(15.2		)
Depreciation and amortization	—			25.5			1.0			—			26.5
Selling, administrative, research and development and general:
Selling, administrative, research and development and general	2.0			69.6			8.2			(5.7		)	74.1
Net periodic pension benefit income relating to VEBAs	—			(11.9		)	—			—			(11.9		)
Total selling, administrative, research and development and general	2.0			57.7			8.2			(5.7		)	62.2
Other operating charges, net	—			4.5			—			—			4.5
Total costs and expenses	2.0			1,162.5			119.4			(89.7		)	1,194.2
Operating (loss) income	(2.0		)	163.5			4.6			(0.2		)	165.9
Other (expense) income:
Interest expense	(28.2		)	(1.0		)	—			0.1			(29.1		)
Other income, net	0.8			1.5			0.6			(0.1		)	2.8
(Loss) income before income taxes	(29.4		)	164.0			5.2			(0.2		)	139.6
Income tax provision	—			(62.6		)	(2.3		)	11.1			(53.8		)
Earnings in equity of subsidiaries	115.2			2.6			—			(117.8		)	—
Net income	$	85.8		$	104.0		$	2.9		$	(106.9	)	$	85.8

Comprehensive income	$	144.8		$	164.0		$	1.9		$	(165.9	)	$	144.8

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2014



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments		Consolidated
Cash flows from operating activities:
Net cash provided by operating activities	$	35.6		$	81.8		$	6.7		$	—	$	124.1
Cash flows from investing activities:
Capital expenditures	—			(56.4		)	(3.0		)	—		(59.4		)
Purchase of available for sale securities	—			(93.5		)	—			—		(93.5		)
Proceeds from disposition of available for sale securities	—			108.2			—			—		108.2
Net cash used in investing activities	—			(41.7		)	(3.0		)	—		(44.7		)
Cash flows from financing activities:
Payment of capital lease liability	—			(0.1		)	—			—		(0.1		)
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest	—			0.8			—			—		0.8
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares	(2.4		)	—			—			—		(2.4		)
Repurchase of common stock	(44.1		)	—			—			—		(44.1		)
Cash dividend paid to stockholders	(25.4		)	—			—			—		(25.4		)
Intercompany loan	31.3			(23.2		)	(8.1		)	—		—
Net cash used in financing activities	(40.6		)	(22.5		)	(8.1		)	—		(71.2		)
Net (decrease) increase in cash and cash equivalents during the period	(5.0		)	17.6			(4.4		)	—		8.2
Cash and cash equivalents at beginning of period	5.0			157.7			6.8			—		169.5
Cash and cash equivalents at end of period	$	—		$	175.3		$	2.4		$	—	$	177.7

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2013



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments		Consolidated
Cash flows from operating activities:
Net cash (used in) provided by operating activities¹	$	(29.2	)	$	131.7		$	9.2		$	—	$	111.7
Cash flows from investing activities:
Capital expenditures	—			(66.5		)	(3.9		)	—		(70.4		)
Purchase of available for sale securities	—			(227.8		)	—			—		(227.8		)
Proceeds from disposition of available for sale securities	—			183.1			—			—		183.1
Change in restricted cash	—			0.7			1.0			—		1.7
Net cash used in investing activities	—			(110.5		)	(2.9		)	—		(113.4		)
Cash flows from financing activities:
Payment of capital lease liability	—			(0.1		)	—			—		(0.1		)
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest	—			1.1			—			—		1.1
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares	(2.5		)	—			—			—		(2.5		)
Repurchase of common stock	(78.3		)	—			—			—		(78.3		)
Cash dividend paid to stockholders	(23.0		)	—			—			—		(23.0		)
Cash dividend returned to the Company	0.6			—			—			—		0.6
Intercompany loan	132.4			(130.5		)	(1.9		)	—		—
Net cash provided by (used in) financing activities	29.2			(129.5		)	(1.9		)	—		(102.2		)
Net (decrease) increase in cash and cash equivalents during the period	—			(108.3		)	4.4			—		(103.9		)
Cash and cash equivalents at beginning of period	5.0			266.0			2.4			—		273.4
Cash and cash equivalents at end of period	$	5.0		$	157.7		$	6.8		$	—	$	169.5

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2012



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments		Consolidated
Cash flows from operating activities:
Net cash (used in) provided by operating activities	$	(17.8	)	$	164.3		$	5.9		$	—	$	152.4
Cash flows from investing activities:
Capital expenditures	—			(42.6		)	(1.5		)	—		(44.1		)
Purchase of available for sale securities	—			(85.0		)	—			—		(85.0		)
Proceeds from disposal of property, plant and equipment	—			0.3			—			—		0.3
Change in restricted cash	6.9			0.4			(0.4		)	—		6.9
Net cash provided by (used in) investing activities	6.9			(126.9		)	(1.9		)	—		(121.9		)
Cash flows from financing activities:
Proceeds from issuance of Senior Notes	225.0			—			—			—		225.0
Payment of capital lease liability	—			(0.1		)	—			—		(0.1		)
Repayment of promissory notes	—			(4.7		)	—			—		(4.7		)
Cash paid for financing costs	(6.6		)	—			—			—		(6.6		)
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest	—			1.3			—			—		1.3
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares	(2.2		)	—			—			—		(2.2		)
Cash dividend paid to stockholders	(19.6		)	—			—			—		(19.6		)
Intercompany loan	(185.7		)	189.1			(3.4		)	—		—
Net cash provided by (used in) financing activities	10.9			185.6			(3.4		)	—		193.1
Net increase in cash and cash equivalents during the period	—			223.0			0.6			—		223.6
Cash and cash equivalents at beginning of period	5.0			43.0			1.8			—		49.8
Cash and cash equivalents at end of period	$	5.0		$	266.0		$	2.4		$	—	$	273.4