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v3.23.1

Derivatives, Hedging Programs and Other Financial Instruments (Tables) | 3 Months Ended
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Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Summary of Derivative Positions | The following table summarizes our derivative positions at March 31, 2023:
Aluminum |  | Maturity Period |  | Notional Amount of Contracts (mmlbs) |
Fixed price purchase contracts |  | April 2023 through July 2024 |  |  | 63.4 |
Midwest premium purchase contracts 1 |  | April 2023 through July 2024 |  |  | 74.4 |
Midwest premium sale contracts 1 |  | July 2023 through September 2023 |  |  | 21.0 |
Alloying Metals |  | Maturity Period |  | Notional Amount of Contracts (mmlbs) |
Fixed price purchase contracts |  | April 2023 through December 2023 |  |  | 0.9 |
Natural Gas |  | Maturity Period |  | Notional Amount of Contracts (mmbtu) |
Fixed price purchase contracts |  | April 2023 through December 2026 |  |  | 3,780,000 |
Euro |  | Maturity Period |  | Notional Amount of Contracts (EUR) |
Fixed price forward contracts |  | July 2023 through February 2024 |  |  | 690,816 |
British Pounds |  | Maturity Period |  | Notional Amount of Contracts (GBP) |
Fixed price forward contracts |  | May 2023 through September 2023 |  |  | 202,128 |
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 Gain Associated with Derivative Contracts | The following table summarizes the amount of loss (gain) included in our Statements of Consolidated Income associated with all derivative contracts (in millions of dollars):
|  | Quarter Ended March 31, |  |  | Statements of Consolidated
|  | 2023 |  |  | 2022 |  |  | Income Classification
Total of income and expense line items presented in our Statements of Consolidated Income in which the effects of hedges are recorded: |  |  |  |  |  |  |  |
Cash flow hedges |  | $ | 731.1 |  |  | $ | 865.9 |  |  | Cost of products sold
Loss (gain) recognized in our Statements of Consolidated Income related to cash flow hedges: |  |  |  |  |  |  |  |
Aluminum |  | $ | 0.5 |  |  | $ | (18.7 | ) |  | Cost of products sold
Natural gas |  |  | (0.3 | ) |  |  | (0.9 | ) |  | Cost of products sold
Electricity |  |  | — |  |  |  | (0.3 | ) |  | Cost of products sold
Total loss (gain) recognized in our Statements of Consolidated Income related to cash flow hedges |  | $ | 0.2 |  |  | $ | (19.9 | ) |  |
Loss (gain) recognized in our Statements of Consolidated Income related to non-designated hedges: |  |  |  |  |  |  |  |
Alloying Metals – Realized loss (gain) |  | $ | — |  |  | $ | (0.6 | ) |  | Cost of products sold
Alloying Metals – Unrealized gain |  |  | (0.1 | ) |  |  | (1.0 | ) |  | Cost of products sold
Total gain recognized in our Statements of Consolidated Income related to non-designated hedges |  | $ | (0.1 | ) |  | $ | (1.6 | ) |  |
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 March 31, 2023 |  |  | As of December 31, 2022 |
|  | Assets |  |  | Liabilities |  |  | Net Amount |  |  | Assets |  |  | Liabilities |  |  | Net Amount |
Cash Flow Hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Aluminum – |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed price purchase contracts |  | $ | 0.8 |  |  | $ | (3.0 | ) |  | $ | (2.2 | ) |  | $ | 0.7 |  |  | $ | (3.9 | ) |  | $ | (3.2 | )
Midwest premium purchase contracts |  |  | 0.2 |  |  |  | (1.7 | ) |  |  | (1.5 | ) |  |  | 0.5 |  |  |  | (1.4 | ) |  |  | (0.9 | )
Midwest premium sale contracts |  |  | 0.5 |  |  |  | — |  |  |  | 0.5 |  |  |  | — |  |  |  | — |  |  |  | — |
Natural gas – Fixed price purchase contracts |  |  | 1.7 |  |  |  | (0.3 | ) |  |  | 1.4 |  |  |  | 4.7 |  |  |  | — |  |  |  | 4.7 |
Total cash flow hedges |  |  | 3.2 |  |  |  | (5.0 | ) |  |  | (1.8 | ) |  |  | 5.9 |  |  |  | (5.3 | ) |  |  | 0.6 |
Non-Designated Hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Alloying Metals – Fixed price purchase contracts |  |  | 0.1 |  |  |  | — |  |  |  | 0.1 |  |  |  | — |  |  |  | — |  |  |  | — |
Total non-designated hedges |  |  | 0.1 |  |  |  | — |  |  |  | 0.1 |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  | $ | 3.3 |  |  | $ | (5.0 | ) |  | $ | (1.7 | ) |  | $ | 5.9 |  |  | $ | (5.3 | ) |  | $ | 0.6 |
The following table presents the total amounts of derivative assets and liabilities on our Consolidated Balance Sheets (in millions of dollars):
|  | As of March 31, 2023 |  |  | As of December 31, 2022 |
Derivative assets: |  |  |  |  |  |
Prepaid expenses and other current assets |  | $ | 2.0 |  |  | $ | 3.6 |
Other assets |  |  | 1.3 |  |  |  | 2.3 |
Total derivative assets |  | $ | 3.3 |  |  | $ | 5.9 |
Derivative liabilities: |  |  |  |  |  |
Other accrued liabilities |  | $ | (4.9 | ) |  | $ | (5.3 | )
Long-term liabilities |  |  | (0.1 | ) |  |  | — |
Total derivative liabilities |  | $ | (5.0 | ) |  | $ | (5.3 | )

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