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Derivatives, Hedging Programs and Other Financial Instruments (Tables) | 9 Months Ended
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Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Summary of Derivative Positions | The following table summarizes our derivative positions at September 30, 2023:
Aluminum |  | Maturity Period |  | Notional Amount of Contracts (mmlbs) |
Fixed price purchase contracts for LME 1 |  | October 2023 through December 2025 |  |  | 101.4 |
Fixed price sale contracts for LME 1 |  | October 2023 through April 2024 |  |  | 29.7 |
Fixed price purchase contracts for Midwest premium 2 |  | October 2023 through December 2025 |  |  | 85.4 |
Fixed price sale contracts for Midwest premium 2 |  | October 2023 through May 2024 |  |  | 48.9 |
Alloying Metals |  | Maturity Period |  | Notional Amount of Contracts (mmlbs) |
Fixed price purchase contracts |  | October 2023 through December 2025 |  |  | 3.7 |
Natural Gas |  | Maturity Period |  | Notional Amount of Contracts (mmbtu) |
Fixed price purchase contracts |  | October 2023 through December 2026 |  |  | 3,130,000 |
Electricity |  | Maturity Period |  | Notional Amount of Contracts (Mwh) |
Fixed price purchase contracts |  | January 2024 through December 2024 |  |  | 35,136 |
Euro |  | Maturity Period |  | Notional Amount of Contracts (EUR) |
Fixed price forward contracts |  | October 2023 through June 2024 |  |  | 3,047,291 |
British Pounds |  | Maturity Period |  | Notional Amount of Contracts (GBP) |
Fixed price forward purchase contract |  | November 2023 through May 2024 |  |  | 393,693 |
1 LME stands for: London Metal Exchange 2 The Midwest premium represents 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) on derivative contracts recorded within our Statements of Consolidated Income (Loss) in Cost of products sold, excluding depreciation and amortization (in millions of dollars):
|  | Quarter Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
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 |  | $ | 665.2 |  |  | $ | 694.9 |  |  | $ | 2,114.7 |  |  | $ | 2,459.2 |
Loss (gain) recognized in our Statements of Consolidated Income (Loss) related to cash flow hedges: |  |  |  |  |  |  |  |  |  |  |  |
Aluminum |  | $ | 4.4 |  |  | $ | 14.2 |  |  | $ | 10.1 |  |  | $ | 1.4 |
Natural gas |  |  | 0.1 |  |  |  | (2.3 | ) |  |  | 0.1 |  |  |  | (5.1 | )
Electricity |  |  | — |  |  |  | (3.8 | ) |  |  | — |  |  |  | (5.2 | )
Total loss (gain) recognized in our Statements of Consolidated Income (Loss) related to cash flow hedges |  | $ | 4.5 |  |  | $ | 8.1 |  |  | $ | 10.2 |  |  | $ | (8.9 | )
Loss (gain) recognized in our Statements of Consolidated Income (Loss) related to non-designated hedges: |  |  |  |  |  |  |  |  |  |  |  |
Alloying Metals – Realized loss (gain) |  | $ | 0.1 |  |  | $ | 0.3 |  |  | $ | 0.1 |  |  | $ | (0.8 | )
Alloying Metals – Unrealized (gain) loss |  |  | (0.3 | ) |  |  | — |  |  |  | (0.2 | ) |  |  | 1.9 |
Total (gain) loss recognized in our Statements of Consolidated Income (Loss) related to non-designated hedges |  | $ | (0.2 | ) |  | $ | 0.3 |  |  | $ | (0.1 | ) |  | $ | 1.1 |
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, 2023 |  |  | As of December 31, 2022 |
|  | Assets |  |  | Liabilities |  |  | Net Amount |  |  | Assets |  |  | Liabilities |  |  | Net Amount |
Cash Flow Hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Aluminum – |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed price purchase contracts |  | $ | 4.8 |  |  | $ | (1.2 | ) |  | $ | 3.6 |  |  | $ | 0.7 |  |  | $ | (3.9 | ) |  | $ | (3.2 | )
Fixed price sale contracts |  |  | — |  |  |  | (1.4 | ) |  |  | (1.4 | ) |  |  | — |  |  |  | — |  |  |  | — |
Midwest premium purchase contracts |  |  | — |  |  |  | (1.8 | ) |  |  | (1.8 | ) |  |  | 0.5 |  |  |  | (1.4 | ) |  |  | (0.9 | )
Midwest premium sale contracts |  |  | 0.6 |  |  |  | — |  |  |  | 0.6 |  |  |  | — |  |  |  | — |  |  |  | — |
Natural gas – Fixed price purchase contracts |  |  | 1.2 |  |  |  | (0.2 | ) |  |  | 1.0 |  |  |  | 4.7 |  |  |  | — |  |  |  | 4.7 |
Electricity – Fixed price purchase contracts |  |  | 0.4 |  |  |  | (0.4 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Foreign currency – Fixed price forward contracts |  |  | — |  |  |  | (0.1 | ) |  |  | (0.1 | ) |  |  | — |  |  |  | — |  |  |  | — |
Total cash flow hedges |  |  | 7.0 |  |  |  | (5.1 | ) |  |  | 1.9 |  |  |  | 5.9 |  |  |  | (5.3 | ) |  |  | 0.6 |
Non-Designated Hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Alloying Metals – Fixed price purchase contracts |  |  | 0.2 |  |  |  | — |  |  |  | 0.2 |  |  |  | — |  |  |  | — |  |  |  | — |
Total non-designated hedges |  |  | 0.2 |  |  |  | — |  |  |  | 0.2 |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  | $ | 7.2 |  |  | $ | (5.1 | ) |  | $ | 2.1 |  |  | $ | 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 September 30, 2023 |  |  | As of December 31, 2022 |
Derivative assets: |  |  |  |  |  |
Prepaid expenses and other current assets |  | $ | 5.9 |  |  | $ | 3.6 |
Other assets |  |  | 1.3 |  |  |  | 2.3 |
Total derivative assets |  | $ | 7.2 |  |  | $ | 5.9 |
Derivative liabilities: |  |  |  |  |  |
Other accrued liabilities |  | $ | (4.8 | ) |  | $ | (5.3 | )
Long-term liabilities |  |  | (0.3 | ) |  |  | — |
Total derivative liabilities |  | $ | (5.1 | ) |  | $ | (5.3 | )

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