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Derivatives, Hedging Programs and Other Financial Instruments (Tables) | 6 Months Ended
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Jun. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Summary of material derivative positions | The following table summarizes our derivative positions at June 30, 2019:
Aluminum |  | Maturity Period (month/year) |  | Notional Amount of Contracts (mmlbs)
Fixed price purchase contracts |  | 7/19 through 12/21 |  | 100.4 |
Fixed price sales contracts |  | 11/19 through 11/19 |  | 0.4 |
Midwest premium swap contracts 1 |  | 7/19 through 12/21 |  | 73.6 |
Alloying Metals |  | Maturity Period (month/year) |  | Notional Amount of Contracts (mmlbs)
Fixed price purchase contracts |  | 7/19 through 12/20 |  | 13.5 |
Natural Gas 2 |  | Maturity Period (month/year) |  | Notional Amount of Contracts (mmbtu)
Fixed price purchase contracts |  | 7/19 through 12/24 |  | 8,230,000 |
Electricity 3 |  | Maturity Period (month/year) |  | Notional Amount of Contracts (Mwh)
Fixed price purchase contracts |  | 1/20 through 12/21 |  | 350,880 |
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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, 2019, we had derivative and/or physical delivery commitments with energy companies in place to cover exposure to fluctuations in prices for approximately 68% o f the expected natural gas purchases for the remainder of 2019, 66% of the expected natural gas purchases for both 2020 and 2021, 80% of the expected natural gas purchases for both 2022 and 2023 and 75% of the expected natural gas purchases for 2024.
3 As of June 30, 2019, we had derivative and/or physical delivery commitments with energy companies in place to cover exposure to fluctuations in prices for approximately 54% of our expected electricity purchases for the remainder of 2019, 55% of our expected electricity purchases for 2020 and 36% of our expected electricity purchases for 2021.
Summary of realized and unrealized gains and losses | The amount of loss (gain) included on our Statements of Consolidated Income (all within COGS) associated with all derivative contracts consisted of the following for each period presented (in millions of dollars):
| Quarter Ended June 30, |  | Six Months Ended June 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
Total amounts of income and expense line items presented in our Statements of Consolidated Income in which the effects of hedges are recorded | $ | 303.5 |  |  | $ | 343.4 |  |  | $ | 618.6 |  |  | $ | 660.1 |
Loss (gain) recognized in income related to cash flow hedges: |  |  |  |  |  |  |
Aluminum | $ | 4.5 |  |  | $ | (3.6 | ) |  | $ | 8.7 |  |  | $ | (3.3 | )
Alloying metals | 0.1 |  |  | (0.2 | ) |  | 0.2 |  |  | (0.6 | )
Natural gas | 0.1 |  |  | (0.1 | ) |  | — |  |  | (0.1 | )
Total loss (gain) recognized in income | $ | 4.7 |  |  | $ | (3.9 | ) |  | $ | 8.9 |  |  | $ | (4.0 | )
Fair Value of Derivative Assets and Liabilities Measured on Recurring Basis | The following table presents the fair value of our derivative financial instruments as of the periods presented (in millions of dollars):
| June 30, 2019 |  | December 31, 2018
| Derivative Assets |  | Derivative Liabilities |  | Net Amount |  | Derivative Assets |  | Derivative Liabilities |  | Net Amount
Cash Flow Hedges: |  |  |  |  |  |  |  |  |  |  |
Aluminum – |  |  |  |  |  |  |  |  |  |  |
Fixed price purchase contracts | $ | 0.1 |  |  | $ | (10.4 | ) |  | $ | (10.3 | ) |  | $ | 0.1 |  |  | $ | (13.2 | ) |  | $ | (13.1 | )
Fixed price sales contracts | — |  |  | — |  |  | — |  |  | 0.1 |  |  | — |  |  | 0.1 |
Midwest premium swap contracts | 1.8 |  |  | (0.1 | ) |  | 1.7 |  |  | 3.2 |  |  | (0.5 | ) |  | 2.7 |
Alloying Metals – Fixed price purchase contracts | — |  |  | (1.5 | ) |  | (1.5 | ) |  | — |  |  | (1.7 | ) |  | (1.7 | )
Natural gas – Fixed price purchase contracts | 0.2 |  |  | (1.5 | ) |  | (1.3 | ) |  | 0.2 |  |  | (0.5 | ) |  | (0.3 | )
Electricity – Fixed price purchase contracts | 1.9 |  |  | — |  |  | 1.9 |  |  | 0.7 |  |  | — |  |  | 0.7 |
Total | $ | 4.0 |  |  | $ | (13.5 | ) |  | $ | (9.5 | ) |  | $ | 4.3 |  |  | $ | (15.9 | ) |  | $ | (11.6 | )
The following table presents the balance sheet location of derivative assets and liabilities as of the periods presented (in millions of dollars):
| June 30, 2019 |  | December 31, 2018
Assets: |  |  |
Prepaid expenses and other current assets | $ | 1.8 |  |  | $ | 3.4 |
Other assets | 2.2 |  |  | 0.9 |
Total assets | $ | 4.0 |  |  | $ | 4.3 |
Liabilities: |  |  |
Other accrued liabilities | $ | (12.0 | ) |  | $ | (13.2 | )
Long-term liabilities | (1.5 | ) |  | (2.7 | )
Total liabilities | $ | (13.5 | ) |  | $ | (15.9 | )
Fair Value, Non-Derivative Assets Measured on Recurring Basis | The following table presents our other financial assets, classified under the appropriate level of the fair value hierarchy, as of June 30, 2019 (in millions of dollars):
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Cash and cash equivalents | $ | 32.2 |  |  | $ | 90.2 |  |  | $ | — |  |  | $ | 122.4 |
Short-term investments | — |  |  | 24.4 |  |  | — |  |  | 24.4 |
Total | $ | 32.2 |  |  | $ | 114.6 |  |  | $ | — |  |  | $ | 146.8 |
The following table presents our other financial assets, classified under the appropriate level of the fair value hierarchy, as of December 31, 2018 (in millions of dollars):
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Cash and cash equivalents | $ | 22.9 |  |  | $ | 102.7 |  |  | $ | — |  |  | $ | 125.6 |
Short-term investments | — |  |  | 36.7 |  |  | — |  |  | 36.7 |
Total | $ | 22.9 |  |  | $ | 139.4 |  |  | $ | — |  |  | $ | 162.3 |

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