Derivatives

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

As of December 31, 2019, we had an open position of 96,065 tonnes related to LME forward financial sales contracts to fix the forward LME price. These contracts are expected to settle monthly through December 2024. We also entered into Midwest premium ("MWP") forward financial sales contracts to fix the forward MWP price. These contracts are expected to settle monthly through December 2021. As of December 31, 2019, we had an open position of 150,000 tonnes.

In 2019, we entered into financial contracts to fix the forward price for power related to the expected production of line 4 at Hawesville for the period of January 2020 through December 2020 ("Hawesville L4 power price swaps") of 790,560 MWh. The Hawesville L4 power price swaps are expected to settle monthly during the term of the contract.

We have financial contracts with various counterparties to offset fixed price sales arrangements with certain of our customers (the “fixed for floating swaps”) to remain exposed to the LME price. As of December 31, 2019, we had open positions related to such arrangements of 12,611 tonnes settling at various dates through December 2020.

In 2017, we entered into financial contracts to fix the forward price of approximately 4% of Grundartangi's total power requirements for the period November 2019 through December 2020 (the “power price swaps”). As of December 31, 2019, we had an open position of 219,600 MWh related to the power price swaps. Because the power price swaps are settled in euros, in 2018 we entered into financial contracts to hedge the risk of fluctuations associated with the euro (the "FX swaps"). As of December 31, 2019, we had open positions related to the FX swaps for €4.8 million Euros that settle monthly through December 2020.

The following table sets forth the Company's derivative assets and liabilities that were accounted for at fair value and not designated as cash flow hedges as of December 31, 2019 and 2018:



	Asset Fair Value
	2019		2018
Commodity contracts⁽¹⁾	$	19.7	$	8.2
Foreign exchange contracts⁽²⁾	—		—
Total	$	19.7	$	8.2



	Liability Fair Value
	2019		2018
Commodity contracts ⁽¹⁾	$	3.6	$	2.2
Foreign exchange contracts⁽²⁾	0.6		0.3
Total	$	4.2	$	2.5

⁽¹⁾Commodity contracts reflect our outstanding LME forward financial sales contracts, MWP forward financial sales contracts, Hawesville L4 power price swaps, fixed for floating swaps, and Nord Pool power price swaps.

⁽²⁾Foreign exchange contracts reflect our outstanding FX swaps.

The following table summarizes the net gain (loss) on forward and derivative contracts for the years ended December 31, 2019, 2018, and 2017:



	Year Ended December 31,
	2019			2018			2017
Commodity contracts	$	12.9		$	6.6		$	(16.5	)
Foreign exchange contracts	(0.9		)	(0.3		)	—
Total	$	12.0		$	6.3		$	(16.5	)