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Fair Value Measurements (Tables) | 9 Months Ended
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Sep. 30, 2022
Fair Value Disclosures [Abstract] |
Financial assets and liabilities at fair value on a recurring basis |
Recurring Fair Value Measurements |  | As of September 30, 2022
|  | Level 1 |  | Level 2 |  | Level 3 |  | Total
ASSETS: |  |  |  |  |  |  |  |
Cash equivalents |  | $ | 9.3 |  |  | $ | — |  |  | $ | — |  |  | $ | 9.3 |
Trust assets (1) |  | 0.6 |  |  | — |  |  | — |  |  | 0.6 |
Derivative instruments |  | — |  |  | 225.7 |  |  | 3.3 |  |  | 229.0 |
TOTAL |  | $ | 9.9 |  |  | $ | 225.7 |  |  | $ | 3.3 |  |  | $ | 238.9 |
LIABILITIES: |  |  |  |  |  |  |  |
Contingent obligation – net |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Derivative instruments |  | — |  |  | 27.8 |  |  | 2.3 |  |  | 30.1 |
TOTAL |  | $ | — |  |  | $ | 27.8 |  |  | $ | 2.3 |  |  | $ | 30.1 |
Recurring Fair Value Measurements |  | As of December 31, 2021
|  | Level 1 |  | Level 2 |  | Level 3 |  | Total
ASSETS: |  |  |  |  |  |  |  |
Cash equivalents |  | $ | 14.2 |  |  | $ | — |  |  | $ | — |  |  | $ | 14.2 |
Trust assets (1) |  | 0.1 |  | — |  |  | — |  |  | 0.1
Derivative instruments |  | — |  |  | 42.6 |  |  | 0.2 |  |  | 42.8 |
TOTAL |  | $ | 14.3 |  |  | $ | 42.6 |  |  | $ | 0.2 |  |  | $ | 57.1 |
LIABILITIES: |  |  |  |  |  |  |  |
Contingent obligation – net |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Derivative instruments |  | — |  |  | 140.9 |  |  | 5.3 |  | 146.2 |
TOTAL |  | $ | — |  |  | $ | 140.9 |  |  | 5.3 |  | $ | 146.2 |
(1) Trust assets are currently invested in money market funds. These trust assets are held to fund the non-qualified supplemental executive pension benefit obligations for certain of our officers.
Schedule of valuation methodology for assets and liabilities at fair value | The following section describes the valuation techniques and inputs for fair value measurements categorized within Level 2 or Level 3 of the fair value hierarchy:
Level 2 Fair Value Measurements:
Asset / Liability |  | Valuation Techniques |  | Inputs
LME forward financial sales contracts |  | Discounted cash flows |  | Quoted LME forward market
Midwest Premium ("MWP") forward financial sales contracts |  | Discounted cash flows |  | Quoted MWP forward market
Fixed for floating swaps |  | Discounted cash flows |  | Quoted LME forward market, quoted MWP forward market
Nord Pool power price swaps |  | Discounted cash flows |  | Quoted Nord Pool forward market
Indiana Hub power price swaps |  | Discounted cash flows |  | Quoted Indiana Hub forward market
FX swaps |  | Discounted cash flows |  | Euro/USD forward exchange rate
Casthouse currency hedges |  | Discounted cash flows |  | Euro/USD forward exchange rate; ISK/USD forward exchange rate
The following table presents the inputs for recurring fair value measurements categorized within Level 3 of the fair value hierarchy, along with information regarding significant unobservable inputs used to value Level 3 assets and liabilities:
Recurring Level 3 Fair Value Measurements: |  | As of September 30, 2022 |  | As of December 31, 2021
Asset / Liability |  | Valuation Technique |  | Observable Inputs |  | Significant Unobservable Input |  | Fair Value |  | Value/Range of Unobservable Input |  | Fair Value |  | Value/Range of Unobservable Input
LME forward financial sales contracts |  | Discounted cash flows |  | Quoted LME forward market |  | Discount rate net (1) |  | $ | 0.9 |  |  | 8.58% |  | $ | (5.1) |  |  | 8.58%
FX swaps |  | Discounted cash flows |  | Euro/USD forward exchange rate |  | Discount rate net (1) |  | $ | — |  |  | 8.58% |  | $ | (0.2) |  |  | 8.58%
Casthouse currency hedges |  | Discounted cash flows |  | Euro/USD forward exchange rate; ISK/USD forward exchange rate |  | Discount rate net (1) |  | $ | — |  |  | 8.58% |  | $ | — |  |  | —%
Nord Pool swaps |  | Discounted cash flows |  | Quoted Nord Pool forward market |  | Discount rate net (1) |  | $ | — |  |  | 8.58% |  | $ | 0.2 |  |  | 8.58%
Contingent obligation |  | Discounted cash flows |  | Quoted LME forward market |  | Expected monthly Hawesville production level (2) |  | $ | — |  |  | 0 MT/month |  | $ | — |  |  | 14,000 - 15,000 MT/month
(1) Represents risk adjusted discount rate. (2) Represents management's estimate of expected monthly Hawesville production levels through the term of the agreement in December 2028. The following table presents the inputs for this non-recurring fair value measurements categorized within Level 3 of the fair value hierarchy, along with information regarding the significant unobservable inputs used:
Non-Recurring Level 3 Fair Value Measurements: |  | As of September 30, 2022 |
Asset / Liability |  | Valuation Technique |  | Significant Unobservable Input |  | Fair Value |  | Value/Range of Unobservable Input |
Hawesville asset group |  | Market approach |  | Comparable transaction |  | $15.0 |  | $15.0 |
Schedule of fair value reconciliation of Level 3 assets and liabilities measured at fair value | The following table presents the fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis.
For the three months ended September 30, 2022 | Level 3 Assets |  | Level 3 Liabilities
| LME forward financial sales contracts |  |  | LME forward financial sales contracts |  |  | Casthouse currency hedges
Balance as of July 1, 2022 |  | $ | 1.6 |  |  |  | $ | (3.8) |  |  |  | $ | 0.0 |
Total realized/unrealized gains (losses) |  |  |  |  |  |  |  |
Included in Net Income (1) |  | 1.6 |  |  |  | 1.5 |  |  |  | — |
Purchases, sales, settlements |  |  |  |  |  |  |  |
Purchases |  | — |  |  |  | — |  |  |  | — |
Sales |  | — |  |  |  | — |  |  |  | — |
Settlements |  | — |  |  |  | — |  |  |  | — |
Transfers into Level 3 (2) |  | — |  |  |  | — |  |  |  | — |
Transfers out of Level 3 (3) |  | — |  |  |  | — |  |  |  | 0.0 |
Balance as of September 30, 2022 |  | $ | 3.2 |  |  |  | $ | (2.3) |  |  |  | $ | 0.0 |
Change in unrealized gains (losses) (1) |  | $ | 1.6 |  |  |  | $ | 1.5 |  |  |  | $ | — |
(1) Gains and losses are presented in the Consolidated Statement of Operations within the line item "Net gain (loss) on forward and derivative contracts." (2) Transfers into Level 3 due to contracts with applied discount rate entered into during the third quarter of 2022. (3) Transfers out of Level 3 due to period of time remaining in derivative contract.
|  | Level 3 Assets |  | Level 3 Liabilities
For the three months ended September 30, 2021 |  | Nord Pool swaps |  | LME forward financial sales contracts |  | FX swaps
Balance as of July 1, 2021 |  | $ | 1.5 |  |  | $ | (17.9) |  |  | $ | (0.4) |
Total realized/unrealized gains (losses) |  |  |  |  |  |
Included in net income (loss) (1) |  | — |  |  | (7.7) |  |  | (0.5) |
Purchases, sales, settlements |  |  |  |  |  |
Purchases |  | — |  |  | — |  |  | — |
Sales |  | — |  |  | — |  |  | — |
Settlements |  | — |  |  | — |  |  | — |
Transfers into Level 3 (2) |  | — |  |  | — |  |  | — |
Transfers out of Level 3(3) |  | (1.5) |  |  | 11.0 |  |  | — |
Balance as of September 30, 2021 |  | $ | — |  |  | (14.6) |  |  | $ | (0.9) |
Change in unrealized gains (losses) (1) |  | $ | — |  |  | $ | (7.7) |  |  | $ | (0.5) |
(1) Gains and losses are presented in the Consolidated Statement of Operations within the line item "Net gain (loss) on forward and derivative contracts." (2) Transfers into Level 3 due to contracts with applied discount rate entered into during the third quarter of 2021. (3) Transfers out of Level 3 due to period of time remaining in derivative contract.
For the nine months ended September 30, 2022 |  | Level 3 Assets |  | Level 3 Liabilities
|  | LME forward financial sales contracts |  | Nord Pool swaps |  | LME forward financial sales contracts |  | FX swaps |  | Casthouse currency hedges
Balance as of January 1, 2022 |  |  | $ | — |  |  | $ | 0.2 |  |  | $ | (5.1) |  |  | $ | (0.2) |  |  | $ | — |
Total realized/unrealized gains (losses) |  |  |  |  |  |  |  |  |  |  |
Included in Net Income (1) |  |  | 1.6 |  |  | — |  |  | 5.3 |  |  | — |  |  | — |
Purchases, sales, settlements |  |  |  |  |  |  |  |  |  |  |
Purchases |  |  |  |  |  |  |  |  |  |  | — |
Sales |  |  |  |  |  |  |  |  |  |  | — |
Settlements |  |  |  |  |  |  |  |  |  |  | — |
Transfers into Level 3 (2) |  |  | 1.6 |  |  | — |  |  | (2.5) |  |  | — |  |  | 0.0 |
Transfers out of Level 3 (3) |  |  | — |  |  | (0.2) |  |  | — |  |  | 0.2 |  |  | — |
Balance as of September 30, 2022 |  |  | $ | 3.2 |  |  | $ | — |  |  | $ | (2.3) |  |  | $ | — |  |  | $ | 0.0 |
Change in unrealized gains (losses) (1) |  |  | $ | 1.6 |  |  | $ | — |  |  | $ | 5.3 |  |  | $ | — |  |  | $ | — |
(1) Gains and losses are presented in the Consolidated Statement of Operations within the line item "Net gain (loss) on forward and derivative contracts." (2) Transfers into Level 3 due to contracts with applied discount rate entered into during the nine months ended September 30, 2022. (3) Transfers out of Level 3 due to period of time remaining in derivative contract.
|  | Level 3 Assets |  | Level 3 Liabilities
For the nine months ended September 30, 2021 |  | Nord Pool swaps |  | LME forward financial sales contracts |  | FX swaps
Balance as of January 1, 2021 |  | $ | — |  |  | $ | 2.9 |  |  | $ | 0.1 |
Total realized/unrealized gains (losses) |  |  |  |  |  |
Included in net income (loss) (1) |  | — |  |  | (28.0) |  |  | (0.5) |
Purchases, sales, settlements |  |  |  |  |  |
Purchases |  | — |  |  | — |  |  | — |
Sales |  | — |  |  | — |  |  | — |
Settlements |  | — |  |  | — |  |  | — |
Transfers into Level 3 (2) |  | 1.5 |  |  | (1.0) |  |  | (0.4) |
Transfers out of Level 3(3) |  | (1.5) |  |  | 11.5 |  |  | (0.1) |
Balance as of September 30, 2021 |  | $ | — |  |  | (14.6) |  |  | $ | (0.9) |
Change in unrealized gains (losses) (1) |  | $ | — |  |  | $ | (28.0) |  |  | $ | (0.5) |
(1) Gains and losses are presented in the Consolidated Statement of Operations within the line item "Net gain (loss) on forward and derivative contracts." (2) Transfers into Level 3 due to contracts with applied discount rate entered into during the nine months ended September 30, 2021. (3) Transfers out of Level 3 due to period of time remaining in derivative contract.

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- Definition Tabular disclosure of financial instrument classified as a derivative asset (liability) after deduction of derivative liability (asset) using recurring unobservable inputs that reflect the entity's own assumption about the assumptions market participants would use in pricing. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19279-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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