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Derivative Financial Instruments and Related Hedging Programs (Tables) | 3 Months Ended
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Mar. 31, 2012
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Summary of material derivative positions | The following table summarizes the Company’s material derivative positions at March 31, 2012:
Commodity |  | Maturity Period | Notional Amount of contracts (mmlbs)
Aluminum — |  |  |
Fixed priced purchase contracts |  | 4/12 through 12/15 | 96.1
Fixed priced sales contracts |  | 4/12 through 12/12 | 2.0
Midwest premium swap contracts 1 |  | 4/12 through 12/12 | 77.2
Energy |  | Maturity Period | Notional Amount of contracts (mmbtu)
Natural gas —2 |  |  |
Call option purchase contracts |  | 4/12 through 12/13 | 3,270,000 |
Put option sales contracts |  | 4/12 through 12/13 | 3,270,000 |
Fixed priced purchase contracts |  | 4/12 through 12/14 | 2,520,000 |
Electricity |  | Maturity Period | Notional Amount of contracts (Mwh)
Fixed priced purchase contracts |  | 4/12 through 12/13 | 296,425 |
Hedges Relating to the Notes |  | Contract Period | Notional Amount of contracts (Common Shares)
Bifurcated Conversion Feature 3 |  | 3/10 through 3/15 | 3,623,113 |
Call Options 3 |  | 3/10 through 3/15 | 3,623,113 |
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1 | Regional premiums represent the premium over the London Metal Exchange price for primary aluminum which is incurred on the Company’s purchases of primary aluminum.
2 | As of March 31, 2012, the Company’s exposure to fluctuations in natural gas prices had been substantially reduced for approximately 85%, 58% and 25% of the expected natural gas purchases for the remainder of 2012, 2013 and 2014, respectively.
3 | The Bifurcated Conversion Feature represents the cash conversion feature of the Notes. To hedge against the potential cash outflows associated with the Bifurcated Conversion Feature, the Company purchased cash-settled Call Options. The Call Options have an exercise price equal to the conversion price of the Notes, subject to anti-dilution adjustments substantially similar to the anti-dilution adjustments for the Notes. The Call Options will expire upon the maturity of the Notes. Although the fair value of the Call Options is derived from a notional number of shares of the Company’s common stock, the Call Options may only be settled in cash.
Summary of realized and unrealized gains (losses) | Realized and Unrealized Gain and Losses. Realized and unrealized gains (losses) associated with all derivative contracts consisted of the following, for each period presented:
| Quarter Ended
| March 31,
| 2012 |  | 2011
Realized (losses) gains: |  |  |
Aluminum | $ | (0.2 | ) |  | $ | 4.5 |
Natural Gas | (1.8 | ) |  | (1.4 | )
Electricity | (0.7 | ) |  | — |
Total realized (losses) gains: | $ | (2.7 | ) |  | $ | 3.1 |
Unrealized gains (losses): |  |  |
Aluminum | $ | 5.2 |  |  | $ | 3.1 |
Natural Gas | (1.2 | ) |  | 1.2 |
Electricity | (0.9 | ) |  | — |
Call Options relating to the Notes | (8.8 | ) |  | (2.0 | )
Cash conversion feature of the Notes | 9.3 |  |  | 3.7 |
Total unrealized gains | $ | 3.6 |  |  | $ | 6.0 |

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- Definition Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item. + References Reference 1: 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=6935481&loc=SL5580258-113959 Reference 2: 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 3: 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=6935481&loc=SL5624163-113959 Reference 4: 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=6935481&loc=d3e41620-113959 Reference 5: 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=6935481&loc=SL5624171-113959 Reference 6: 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=6935481&loc=d3e41641-113959 Reference 7: 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=6935481&loc=SL5579245-113959 Reference 8: 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=6935481&loc=SL5579240-113959 Reference 9: 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)(2)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=6935481&loc=d3e41678-113959 Reference 11: 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=6935481&loc=d3e41638-113959 + Details
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