XML 42 R30.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Derivative Financial Instruments and Related Hedging Programs (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Summary of realized and unrealized gains and losses | Realized and unrealized gain (loss) associated with all derivative contracts consisted of the following for each period presented (in millions of dollars):
| Quarter Ended |  | Six Months Ended
| June 30, |  | June 30,
| 2016 |  | 2015 |  | 2016 |  | 2015
Included in Other Comprehensive Income (Loss): |  |  |  |  |  |  |
Unrealized (loss) gain: |  |  |  |  |  |  |
Foreign Currency | $ | (0.1 | ) |  | $ | (0.2 | ) |  | $ | 0.1 |  |  | $ | (0.2 | )
Included in Statements of Consolidated Income (Loss): |  |  |  |  |  |  |
Realized loss 1: |  |  |  |  |  |  |  |
Aluminum | (1.0 | ) |  | (7.1 | ) |  | (3.7 | ) |  | (9.8 | )
Natural Gas | (1.6 | ) |  | (1.3 | ) |  | (3.3 | ) |  | (2.6 | )
Electricity | — |  |  | (0.4 | ) |  | — |  |  | (1.1 | )
Total realized loss | $ | (2.6 | ) |  | $ | (8.8 | ) |  | $ | (7.0 | ) |  | $ | (13.5 | )
Unrealized gain (loss)2: |  |  |  |  |  |  |
Non-designated hedges of operational risk: |  |  |  |  |  |  |
Aluminum | $ | 6.9 |  |  | $ | (4.3 | ) |  | $ | 10.0 |  |  | $ | (8.5 | )
Natural Gas | 4.0 |  |  | 1.5 |  |  | 4.9 |  |  | 0.8 |
Electricity | — |  |  | 1.3 |  |  | — |  |  | 1.7 |
Total non-designated hedges of operational risk | 10.9 |  |  | (1.5 | ) |  | 14.9 |  |  | (6.0 | )
Option Assets relating to the Convertible Notes 3 | — |  |  | — |  |  | — |  |  | 10.2 |
Bifurcated Conversion Feature of the Convertible Notes 3 | — |  |  | — |  |  | — |  |  | (10.2 | )
Total unrealized gain (loss) | $ | 10.9 |  |  | $ | (1.5 | ) |  | $ | 14.9 |  |  | $ | (6.0 | )
______________________
1 | Realized loss on hedges of operational risk are recorded within Cost of products sold, excluding depreciation, amortization and other items.
2 | Unrealized gain (loss) on hedges of operational risk are recorded within Unrealized (gain) loss on derivative instruments.
3 | Unrealized gain (loss) on financial derivatives related to our 4.5% unsecured cash convertible senior notes ("Convertible Notes"), which settled in April 2015.
Summary of material derivative positions | The following table summarizes our material derivative positions at June 30, 2016:
Aluminum | Maturity Period (month/year) |  | Notional Amount of contracts (mmlbs)
Fixed price purchase contracts | 7/16 through 6/18 |  | 182.5 |
Fixed price sales contracts | 7/16 through 12/16 |  | 0.9 |
Midwest premium swap contracts 1 | 7/16 through 6/18 |  | 157.1 |
Natural Gas 2 | Maturity Period (month/year) |  | Notional Amount of contracts (mmbtu)
Fixed price purchase contracts | 7/16 through 12/18 |  | 5,950,000 |
Euro | Maturity Period (month/year) |  | Notional Amount of contracts (euro)
Fixed price purchase contracts | 9/16 through 8/17 |  | 2,020,950 |
______________________
1 | Regional premiums represent the premium over the London Metal Exchange price for primary aluminum which is incurred on our purchases of primary aluminum.
2 | As of June 30, 2016, we had derivative and/or physical delivery commitments with energy companies in place to cover exposure to fluctuations in prices for approximately 81%, 74% and 72% of the expected natural gas purchases for the remainder of 2016, 2017 and 2018, respectively.
Summary of offsetting derivative assets by counterparty | The following tables present offsetting information regarding our derivatives by type of counterparty as of December 31, 2015 (in millions of dollars):
Derivative Assets and Collateral Held by Counterparty
|  |  |  |  |  |  | Gross Amounts Not Offset in the Consolidated Balance Sheets |  |
| Gross Amounts of Recognized Assets |  | Gross Amounts Offset in the Consolidated Balance Sheets |  | Net Amounts of Assets Presented in the Consolidated Balance Sheets |  | Financial Instruments |  | Cash Collateral Received |  | Net Amount
Counterparty (with netting agreements) | $ | 1.3 |  |  | $ | — |  |  | $ | 1.3 |  |  | $ | 1.3 |  |  | $ | — |  |  | $ | — |
Counterparty (with partial netting agreements) | 0.3 |  |  | — |  |  | 0.3 |  |  | 0.3 |  |  | — |  |  | — |
Total | $ | 1.6 |  |  | $ | — |  |  | $ | 1.6 |  |  | $ | 1.6 |  |  | $ | — |  |  | $ | — |
The following tables present offsetting information regarding our derivatives by type of counterparty as of June 30, 2016 (in millions of dollars):
Derivative Assets and Collateral Held by Counterparty
|  |  |  |  |  |  | Gross Amounts Not Offset in the Consolidated Balance Sheets |  |
| Gross Amounts of Recognized Assets |  | Gross Amounts Offset in the Consolidated Balance Sheets |  | Net Amounts of Assets Presented in the Consolidated Balance Sheets |  | Financial Instruments |  | Cash Collateral Received |  | Net Amount
Counterparty (with netting agreements) | $ | 2.8 |  |  | $ | — |  |  | $ | 2.8 |  |  | $ | 1.3 |  |  | $ | — |  |  | $ | 1.5 |
Counterparty (with partial netting agreements) | 2.6 |  |  | — |  |  | 2.6 |  |  | 0.9 |  |  | $ | — |  |  | $ | 1.7 |
Total | $ | 5.4 |  |  | $ | — |  |  | $ | 5.4 |  |  | $ | 2.2 |  |  | $ | — |  |  | $ | 3.2 |
Summary of offsetting derivative liabilities by counterparty |
Derivative Liabilities and Collateral Held by Counterparty
|  |  |  |  |  |  | Gross Amounts Not Offset in the Consolidated Balance Sheets |  |
| Gross Amounts of Recognized Liabilities |  | Gross Amounts Offset in the Consolidated Balance Sheets |  | Net Amounts of Liabilities Presented in the Consolidated Balance Sheets |  | Financial Instruments |  | Cash Collateral Pledged |  | Net Amount
Counterparty (with netting agreements) | $ | (3.0 | ) |  | $ | — |  |  | $ | (3.0 | ) |  | $ | (1.3 | ) |  | $ | — |  |  | $ | (1.7 | )
Counterparty (with partial netting agreements) | (2.0 | ) |  | — |  |  | (2.0 | ) |  | (0.9 | ) |  | — |  |  | (1.1 | )
Total | $ | (5.0 | ) |  | $ | — |  |  | $ | (5.0 | ) |  | $ | (2.2 | ) |  | $ | — |  |  | $ | (2.8 | )
Derivative Liabilities and Collateral Held by Counterparty
|  |  |  |  |  |  | Gross Amounts Not Offset in the Consolidated Balance Sheets |  |
| Gross Amounts of Recognized Liabilities |  | Gross Amounts Offset in the Consolidated Balance Sheets |  | Net Amounts of Liabilities Presented in the Consolidated Balance Sheets |  | Financial Instruments |  | Cash Collateral Pledged |  | Net Amount
Counterparty (with netting agreements) | $ | (8.5 | ) |  | $ | — |  |  | $ | (8.5 | ) |  | $ | (1.3 | ) |  | $ | — |  |  | $ | (7.2 | )
Counterparty (with partial netting agreements) | (7.7 | ) |  | — |  |  | (7.7 | ) |  | (0.3 | ) |  | — |  |  | (7.4 | )
Total | $ | (16.2 | ) |  | $ | — |  |  | $ | (16.2 | ) |  | $ | (1.6 | ) |  | $ | — |  |  | $ | (14.6 | )

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 Tabular disclosure of derivative and other financial assets that are subject to offsetting, including master netting arrangements. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225862-175312 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225877-175312 + Details
Name: | us-gaap_OffsettingAssetsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative and other financial liabilities that are subject to offsetting, including master netting arrangements. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225877-175312 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225862-175312 + Details
Name: | us-gaap_OffsettingLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments. + References Reference 1: 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=56946850&loc=SL5624171-113959 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5618551-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the notional amounts of outstanding derivative positions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5579245-113959 + Details
Name: | us-gaap_ScheduleOfNotionalAmountsOfOutstandingDerivativePositionsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration