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Derivatives | 12 Months Ended
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Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives | Derivatives: Objectives and Strategies for Using Derivative Instruments Commodity Price Risk. We utilize a cash flow hedging program to mitigate our exposure to volatility in the prices of metal commodities used in our production processes. Our hedging program includes the use of futures contracts to lock in prices, and as a result, we are subject to derivative losses should the metal commodity prices decrease and gains should the prices increase. We utilize a dollar cost averaging strategy so that a higher percentage of commodity price exposures are hedged near-term with lower percentages hedged at future dates. This strategy allows for protection against near-term price volatility while allowing us to adjust to market price movements over time. Interest Rate Risk. A portion of our debt bears interest at variable interest rates, and as a result, we are subject to variability in the cash paid for interest. To mitigate a portion of that risk, we may choose to engage in an interest rate swap hedging strategy to eliminate the variability of interest payment cash flows. We are not currently hedged against interest rate risk. Foreign Currency Risk. Foreign currency exchange rate movements create a degree of risk by affecting the U.S. dollar value of assets and liabilities arising in foreign currencies. We seek to mitigate the impact of currency exchange rate movements on certain short-term transactions by periodically entering into foreign currency forward contracts. Cash Flow Hedges We have commodity futures contracts and foreign exchange forward contracts designated as cash flows hedges that are scheduled to mature through May 2018 and December 2017, respectively. Unrealized gains or losses from our cash flow hedges are included in AOCI and are expected to be reclassified into earnings within the next 17 months based on the prices of the commodities at the settlement dates. We recorded the following amounts related to our cash flow hedges in AOCI (in millions):
| As of December 31,
| 2016 |  | 2015
Unrealized (gains) losses on unsettled contracts | $ | (8.9 | ) |  | $ | 13.2 |
Income tax expense (benefit) | 3.3 |  |  | (4.8 | )
(Gains) losses included in AOCI, net of tax (1) | $ | (5.6 | ) |  | $ | 8.4 |
(1) Assuming commodity and foreign currency prices remain constant, we expect to reclassify $4.5 million of derivative gains into earnings within the next 12 months. We had the following outstanding commodity futures contracts designated as cash flow hedges (in millions of pounds):
| As of December 31,
Notional Amounts | 2016 |  | 2015
Copper | 30.4 |  |  | 34.7 |
We had the following outstanding foreign exchange forward contracts designated as cash flow hedges (in millions):
| As of December 31,
Notional Amounts (in local currency): | 2016 |  | 2015
Mexican Peso | 310.1 |  |  | 201.4 |
Canadian Dollar | 24.9 |  | — |
Derivatives not Designated as Cash Flow Hedges For commodity derivatives not designated as cash flow hedges, we follow the same hedging strategy as derivatives designated as cash flow hedges, except that we elect not to designate them as cash flow hedges at the inception of the arrangement. We had the following outstanding commodity futures contracts not designated as cash flow hedges (in millions of pounds):
| As of December 31,
| 2016 |  | 2015
Copper | 2.4 |  |  | 3.3 |
Aluminum | 2.6 |  |  | 3.2 |
We had the following outstanding foreign currency forward contracts not designated as cash flow hedges (in millions):
| As of December 31,
Notional amounts (in local currency): | 2016 |  | 2015
Chinese Yuan | 10.5 |  |  | — |
Mexican Peso | 64.5 |  |  | 53.0 |
Euro | 46.9 |  |  | 3.2 |
British Pound | 1.3 |  |  | — |
Indian Rupee | 584.6 |  |  | 30.8 |
Polish Zloty | — |  |  | 25.4 |
Information About the Locations and Amounts of Derivative Instruments The following tables provide the locations and amounts of derivative fair values in the Consolidated Balance Sheets and derivative gains and losses in the Consolidated Statements of Operations (in millions):
| Fair Values of Derivative Instruments as of December 31 (1)
| Derivatives Designated as Hedging Instruments |  | Derivatives Not Designated as Hedging Instruments
| 2016 |  | 2015 |  | 2016 |  | 2015
Current Assets: |  |  |  |  |  |  |
Other assets |  |  |  |  |  |  |
Commodity futures contracts | $ | 8.7 |  |  | $ | — |  |  | $ | 0.7 |  |  | $ | — |
Foreign currency forward contracts | 0.5 |  |  | — |  |  | 0.2 |  |  | 0.2 |
Non-Current Assets: |  |  |  |  |  |  |
Other assets, net |  |  |  |  |  |  |
Commodity futures contracts | 1.9 |  |  | — |  |  | 0.2 |  |  | — |
Foreign currency forward contracts | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Total Assets | $ | 11.1 |  |  | $ | — |  |  | $ | 1.1 |  |  | $ | 0.2 |
Current Liabilities: |  |  |  |  |  |  |
Accrued expenses |  |  |  |  |  |  |
Commodity futures contracts | $ | — |  |  | $ | 12.5 |  |  | $ | — |  |  | $ | 1.5 |
Foreign currency forward contracts | 0.8 |  |  | 0.4 |  |  | 3.2 |  |  | — |
Non-Current Liabilities: |  |  |  |  |  |  |
Other liabilities |  |  |  |  |  |  |
Commodity futures contracts | — |  |  | 0.4 |  |  | — |  |  | — |
Foreign currency forward contracts | — |  |  | — |  |  | — |  |  | — |
Total Liabilities | $ | 0.8 |  |  | $ | 13.3 |  |  | $ | 3.2 |  |  | $ | 1.5 |
(1) All derivative instruments are classified as Level 2 within the fair value hierarchy. See Note 19 for more information on fair value measurements.
Derivatives in Cash Flow Hedging Relationships
| For the Years Ended December 31,
| 2016 |  | 2015 |  | 2014
Amount of Loss Reclassified from AOCI into Income (Effective Portion): |  |  |  |  |
Commodity futures contracts (1) | $ | 12.3 |  |  | $ | 12.5 |  |  | $ | 5.8 |
Amount of (Gain) Loss Recognized in Income on Derivatives (Ineffective Portion): |  |  |  |  |
Commodity futures contracts (2) | $ | (1.6 | ) |  | $ | 0.1 |  |  | $ | 0.1 |
Derivatives Not Designated as Hedging Instruments
| For the Years Ended December 31,
| 2016 |  | 2015 |  | 2014
Amount of (Gain) Loss Recognized in Income on Derivatives: |  |  |  |  |
Commodity futures contracts (2) | $ | (0.9 | ) |  | $ | 2.5 |  |  | $ | 1.2 |
Foreign currency forward contracts (2) | 4.3 |  |  | 0.3 |  |  | (0.8 | )
| $ | 3.4 |  |  | $ | 2.8 |  |  | $ | 0.4 |
(1) The loss was recorded in Cost of goods sold in the accompanying Consolidated Statements of Operations. (2) The (gain) loss was recorded in Losses and other expenses, net in the accompanying Consolidated Statements of Operations.

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624171-113959 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41620-113959 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624163-113959 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5579240-113959 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4D -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624177-113959 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80784-113994 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41641-113959 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5579245-113959 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4H -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624258-113959 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80748-113994 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4K -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5708775-113959 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4J -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5708773-113959 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5618551-113959 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5580258-113959 Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4E -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624181-113959 Reference 17: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 25 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986 Reference 18: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41638-113959 Reference 19: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(n)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
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