XML 33 R21.htm IDEA: XBRL DOCUMENT
v3.24.1.u1

Derivatives | 3 Months Ended
--- | ---
Mar. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives | Derivatives As of March 31, 2024, we had an open position of 26,181 tonnes re lated to LME forward financial sales contracts to fix the forward LME aluminum price. These contracts are expected to settle monthly through December 2024. We also enter into financial contracts with various counterparties to offset fixed price sales arrangements with certain of our customers ("fixed for floating swaps") to remain exposed to the LME and MWP aluminum prices. As of March 31, 2024, we had no open fixed for floating swaps. We have entered into forward contracts to hedge the risk of fluctuations associated with the Icelandic Krona (ISK) and Euro for contracts related to the construction of the Grundartangi casthouse and the Sebree casthouse project denominated in these currencies ("casthouse currency hedges"). As of March 31, 2024, we had no open casthouse currency hedges. We have entered into financial contracts to hedge a portion of our exposure at our operations to Heavy Fuel Oil (“HFO price swaps”). The HFO volume is measured per barrel. As of March 31, 2024, we had an open position of 245,000 barrels. The HFO price swaps are expected to settle monthly through February 2025. Our agreements with derivative counterparties contain certain provisions requiring collateral to be posted in the event the market value of our position exceeds the margin threshold limit of our master agreement with the counterparty. As of March 31, 2024 and December 31, 2023, the Company had not recorded restricted cash as collateral related to open derivative contracts under the master arrangements with our counterparties. The following tables set forth the Company's derivative assets and liabilities that were accounted for at fair value and not designated as cash flow hedges as of March 31, 2024 and December 31, 2023, respectively:
|  | Asset Fair Value
|  | March 31, 2024 |  | December 31, 2023
Commodity contracts(1) |  | $ | 5.3 |  |  | $ | 2.9 |
|  | Liability Fair Value
|  | March 31, 2024 |  | December 31, 2023
Commodity contracts(1) |  | $ | 3.8 |  |  | $ | 7.8 |
Foreign exchange contracts(2) |  | — |  |  | 0.1 |
Total |  | $ | 3.8 |  |  | $ | 7.9 |
(1)Commodity contracts reflect our outstanding LME forward financial sales contracts and HFO price swaps. At March 31, 2024, $3.4 million of Due to affiliates was related to commodity contracts with Glencore. At December 31, 2023, $6.4 million of Due to affiliates was related to commodity contract liab ilities with Glencore. (2)Foreign exchange contracts reflect our outstanding FX swaps and the casthouse currency hedges. The following table summarizes the net (loss) gain on forward and derivative contracts:
|  | Three months ended March 31, |  |
|  | 2024 |  | 2023 |  |  |  |
Commodity contracts(1) |  | $ | 7.3 |  |  | $ | (59.1) |  |  |  |  |
Foreign exchange contracts |  | 0.1 |  |  | 1.6 |  |  |  |  |
Total |  | $ | 7.4 |  |  | $ | (57.5) |  |  |  |  |
(1)For the three months ended March 31, 2024, $4.0 million of the net gain was with Glencore, and for the three months ended March 31, 2023, $14.9 million of the net loss was with Glencore.

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//815/tableOfContent + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration