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Derivatives, Hedging Programs and Other Financial Instruments (Tables) | 9 Months Ended
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Sep. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Summary of Percentages of Expected Variable Priced Purchases of Metals Alloys and Energy | The following table summarizes the percentages as of September 30, 2022 of our expected variable priced purchases of metal alloys and energy for which we have executed derivative and/or physical delivery commitments to reduce price fluctuations for each of the following years:
|  | Remainder of 2022 |  | 2023 |  | 2024 |  | 2025 |  | 2026
Zinc |  | 66% |  | 3% |  | — |  | — |  | —
Copper |  | 58% |  | — |  | — |  | — |  | —
Magnesium |  | 100% |  | 100% |  | 40% |  | — |  | —
Silicon |  | 100% |  | — |  | — |  | — |  | —
Natural Gas |  | 49% |  | 50% |  | 47% |  | 26% |  | 21%
Electricity |  | 71% |  | 43% |  | — |  | — |  | —
Summary of Derivative Positions | The following table summarizes our derivative positions at September 30, 2022:
Aluminum |  | Maturity Period (month/year) |  | Notional Amount of Contracts (mmlbs) |
Fixed price purchase contracts |  | October 2022 through December 2023 |  |  | 87.9 |
Fixed price sales contracts |  | October 2022 through December 2022 |  |  | 15.0 |
Midwest premium swap contracts 1 |  | October 2022 through December 2023 |  |  | 52.3 |
Alloying Metals |  | Maturity Period (month/year) |  | Notional Amount of Contracts (mmlbs) |
Fixed price purchase contracts |  | October 2022 through November 2023 |  |  | 2.0 |
Natural Gas |  | Maturity Period (month/year) |  | Notional Amount of Contracts (mmbtu) |
Fixed price purchase contracts |  | October 2022 through December 2025 |  |  | 3,900,000 |
Electricity |  | Maturity Period (month/year) |  | Notional Amount of Contracts (Mwh) |
Fixed price purchase contracts |  | October 2022 through December 2022 |  |  | 55,225 |
Euro |  | Maturity Period (month/year) |  | Notional Amount of Contracts (euro) |
Fixed price forward contracts |  | December 2022 through February 2024 |  |  | 1,126,066 |
1 Regional premiums represent the premium over the London Metal Exchange price for primary aluminum which is incurred on our purchases of primary aluminum.
Summary of Loss (Gain) Associated with Derivative Contracts | The following table summarizes the amount of loss (gain) included on our Statements of Consolidated Income (Loss) associated with all derivative contracts (in millions of dollars):
|  | Quarter Ended September 30, |  |  | Nine Months Ended September 30, |  |  | Statements of Consolidated
|  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |  |  | Income (Loss) Classification
Total of income and expense line items presented in our Statements of Consolidated Income (Loss) in which the effects of hedges are recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash flow hedges |  | $ | 694.9 |  |  | $ | 677.8 |  |  | $ | 2,459.2 |  |  | $ | 1,613.6 |  |  | Cost of products sold
Loss (gain) recognized in our Statements of Consolidated Income (Loss) related to cash flow hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Aluminum |  | $ | 14.2 |  |  | $ | (13.3 | ) |  | $ | 1.4 |  |  | $ | (24.3 | ) |  | Cost of products sold
Alloying Metals |  |  | — |  |  |  | (0.2 | ) |  |  | — |  |  |  | 0.2 |  |  | Cost of products sold
Natural gas |  |  | (2.3 | ) |  |  | (0.6 | ) |  |  | (5.1 | ) |  |  | (0.7 | ) |  | Cost of products sold
Electricity |  |  | (3.8 | ) |  |  | (2.6 | ) |  |  | (5.2 | ) |  |  | (3.3 | ) |  | Cost of products sold
Total loss (gain) recognized in our Statements of Consolidated Income (Loss) related to cash flow hedges |  | $ | 8.1 |  |  | $ | (16.7 | ) |  | $ | (8.9 | ) |  | $ | (28.1 | ) |  |
Loss (gain) recognized in our Statements of Consolidated Income (Loss) related to non-designated hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Alloying Metals – Realized loss (gain) |  | $ | 0.3 |  |  | $ | (1.2 | ) |  | $ | (0.8 | ) |  | $ | (3.8 | ) |  | Cost of products sold
Alloying Metals – Unrealized loss |  |  | — |  |  |  | 1.9 |  |  |  | 1.9 |  |  |  | 2.0 |  |  | Cost of products sold
Total loss (gain) recognized in our Statements of Consolidated Income (Loss) related to non-designated hedges |  | $ | 0.3 |  |  | $ | 0.7 |  |  | $ | 1.1 |  |  | $ | (1.8 | ) |  |
Schedule of Fair Value of Derivative Financial Instruments | The following table presents the fair value of our derivative financial instruments (in millions of dollars):
|  | As of September 30, 2022 |  |  | As of December 31, 2021 |
|  | Assets |  |  | Liabilities |  |  | Net Amount |  |  | Assets |  |  | Liabilities |  |  | Net Amount |
Cash Flow Hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Aluminum – |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed price purchase contracts |  | $ | 0.6 |  |  | $ | (15.5 | ) |  | $ | (14.9 | ) |  | $ | 12.2 |  |  | $ | (1.1 | ) |  | $ | 11.1 |
Fixed price sales contracts |  |  | 1.7 |  |  |  | — |  |  |  | 1.7 |  |  |  | — |  |  |  | — |  |  |  | — |
Midwest premium swap contracts |  |  | 1.4 |  |  |  | (3.7 | ) |  |  | (2.3 | ) |  |  | 5.5 |  |  |  | (0.1 | ) |  |  | 5.4 |
Natural gas – Fixed price purchase contracts |  |  | 9.1 |  |  |  | — |  |  |  | 9.1 |  |  |  | 3.0 |  |  |  | (0.1 | ) |  |  | 2.9 |
Electricity – Fixed price purchase contracts |  |  | 2.6 |  |  |  | — |  |  |  | 2.6 |  |  |  | 4.4 |  |  |  | (0.6 | ) |  |  | 3.8 |
Foreign currency – Fixed price forward contracts |  |  | — |  |  |  | (0.1 | ) |  |  | (0.1 | ) |  |  | — |  |  |  | — |  |  |  | — |
Total cash flow hedges |  |  | 15.4 |  |  |  | (19.3 | ) |  |  | (3.9 | ) |  |  | 25.1 |  |  |  | (1.9 | ) |  |  | 23.2 |
Non-Designated Hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Alloying Metals – Fixed price purchase contracts |  |  | — |  |  |  | (0.5 | ) |  |  | (0.5 | ) |  |  | 1.6 |  |  |  | (0.1 | ) |  |  | 1.5 |
Total non-designated hedges |  |  | — |  |  |  | (0.5 | ) |  |  | (0.5 | ) |  |  | 1.6 |  |  |  | (0.1 | ) |  |  | 1.5 |
Total |  | $ | 15.4 |  |  | $ | (19.8 | ) |  | $ | (4.4 | ) |  | $ | 26.7 |  |  | $ | (2.0 | ) |  | $ | 24.7 |
The following table presents the total amounts of derivative assets and liabilities on our Consolidated Balance Sheets (in millions of dollars):
|  | As of September 30, 2022 |  |  | As of December 31, 2021 |
Derivative assets: |  |  |  |  |  |
Prepaid expenses and other current assets |  | $ | 11.3 |  |  | $ | 25.0 |
Other assets |  |  | 4.1 |  |  |  | 1.7 |
Total derivative assets |  | $ | 15.4 |  |  | $ | 26.7 |
Derivative liabilities: |  |  |  |  |  |
Other accrued liabilities |  | $ | (19.5 | ) |  | $ | (1.9 | )
Long-term liabilities |  |  | (0.3 | ) |  |  | (0.1 | )
Total derivative liabilities |  | $ | (19.8 | ) |  | $ | (2.0 | )

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