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Derivatives, Hedging Programs and Other Financial Instruments (Tables) | 6 Months Ended
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Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Summary of Derivative Positions | The following table summarizes our derivative positions at June 30, 2024:
Aluminum |  | Maturity Period |  | Notional Amount of Contracts (mmlbs) |
Fixed price purchase contracts for LME |  | July 2024 through December 2025 |  |  | 62.4 |
Fixed price purchase contracts for MWTP |  | July 2024 through December 2025 |  |  | 48.9 |
Fixed price sale contracts for MWTP |  | July 2024 through September 2024 |  |  | 15.5 |
Alloying Metals |  | Maturity Period |  | Notional Amount of Contracts (mmlbs) |
Fixed price purchase contracts |  | July 2024 through December 2026 |  |  | 10.0 |
Natural Gas |  | Maturity Period |  | Notional Amount of Contracts (mmbtu) |
Fixed price purchase contracts |  | July 2024 through December 2026 |  |  | 3,240,000 |
Electricity |  | Maturity Period |  | Notional Amount of Contracts (Mwh) |
Fixed price purchase contracts |  | July 2024 through December 2024 |  |  | 110,425 |
Euro |  | Maturity Period |  | Notional Amount of Contracts (EUR) |
Fixed price forward purchase contracts |  | August 2024 through January 2026 |  |  | 10,856,964 |
British Pounds |  | Maturity Period |  | Notional Amount of Contracts (GBP) |
Fixed price forward purchase contracts |  | July 2024 |  |  | 72,266 |
(Gain)
Summary of (Gain) Loss Associated with Derivative Contracts | The following table summarizes the amount of (gain) loss on derivative contracts recorded within our Statements of Consolidated Income in COGS (in millions of dollars):
|  | Quarter Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
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 |  | $ | 690.5 |  |  | $ | 718.4 |  |  | $ | 1,333.4 |  |  | $ | 1,449.5 |
(Gain) loss recognized in our Statements of Consolidated Income related to cash flow hedges: |  |  |  |  |  |  |  |  |  |  |  |
Aluminum |  | $ | (2.7 | ) |  | $ | 5.2 |  |  | $ | (0.7 | ) |  | $ | 5.7 |
Alloying Metals |  |  | (0.5 | ) |  |  | — |  |  |  | (0.5 | ) |  |  | — |
Natural gas |  |  | 0.4 |  |  |  | 0.3 |  |  |  | 0.7 |  |  |  | — |
Electricity |  |  | 0.8 |  |  |  | — |  |  |  | 0.6 |  |  |  | — |
Total (gain) loss recognized in our Statements of Consolidated Income related to cash flow hedges |  | $ | (2.0 | ) |  | $ | 5.5 |  |  | $ | 0.1 |  |  | $ | 5.7 |
Loss recognized in our Statements of Consolidated Income related to non-designated derivatives: |  |  |  |  |  |  |  |  |  |  |  |
Alloying Metals – Unrealized mark-to-market loss |  | $ | — |  |  | $ | 0.2 |  |  | $ | — |  |  | $ | 0.1 |
Electricity – Unrealized mark-to-market loss |  |  | 2.0 |  |  |  | — |  |  |  | 2.0 |  |  |  | — |
Electricity (reclassification from AOCI due to forecasted transactions probable of not occurring) |  |  | 0.2 |  |  |  | — |  |  |  | 0.2 |  |  |  | — |
Total loss recognized in our Statements of Consolidated Income related to non-designated derivatives |  | $ | 2.2 |  |  | $ | 0.2 |  |  | $ | 2.2 |  |  | $ | 0.1 |
Schedule of Fair Value of Derivative Assets and Liabilities | The following table presents the fair value of our derivative assets and liabilities (in millions of dollars):
|  | As of June 30, 2024 |  |  | As of December 31, 2023 |
|  | Assets |  |  | Liabilities |  |  | Net Amount |  |  | Assets |  |  | Liabilities |  |  | Net Amount |
Aluminum – |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed price purchase contracts for LME |  | $ | 3.4 |  |  | $ | (0.7 | ) |  | $ | 2.7 |  |  | $ | 3.4 |  |  | $ | (0.6 | ) |  | $ | 2.8 |
Fixed price sale contracts for LME |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (0.2 | ) |  |  | (0.2 | )
Fixed price purchase contracts for MWTP |  |  | 0.3 |  |  |  | (0.3 | ) |  |  | — |  |  |  | 0.4 |  |  |  | (0.3 | ) |  |  | 0.1 |
Fixed price sale contracts for MWTP |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 0.1 |  |  |  | (0.2 | ) |  |  | (0.1 | )
Alloying Metals – Fixed price purchase contracts |  |  | 2.6 |  |  |  | — |  |  |  | 2.6 |  |  |  | 0.7 |  |  |  | (0.1 | ) |  |  | 0.6 |
Natural gas – Fixed price purchase contracts |  |  | 0.5 |  |  |  | (0.7 | ) |  |  | (0.2 | ) |  |  | 0.3 |  |  |  | (0.9 | ) |  |  | (0.6 | )
Electricity – Fixed price purchase contracts |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 0.5 |  |  |  | (0.6 | ) |  |  | (0.1 | )
Foreign currency – Fixed price forward contracts |  |  | — |  |  |  | (0.1 | ) |  |  | (0.1 | ) |  |  | 0.5 |  |  |  | — |  |  |  | 0.5 |
Total cash flow hedges |  |  | 6.8 |  |  |  | (1.8 | ) |  |  | 5.0 |  |  |  | 5.9 |  |  |  | (2.9 | ) |  |  | 3.0 |
Non-Designated Derivatives: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Electricity – Fixed price purchase contracts |  |  | 0.1 |  |  |  | (2.3 | ) |  |  | (2.2 | ) |  |  | — |  |  |  | — |  |  |  | — |
Total non-designated derivatives |  |  | 0.1 |  |  |  | (2.3 | ) |  |  | (2.2 | ) |  |  | — |  |  |  | — |  |  |  | — |
Total |  | $ | 6.9 |  |  | $ | (4.1 | ) |  | $ | 2.8 |  |  | $ | 5.9 |  |  | $ | (2.9 | ) |  | $ | 3.0 |
The following table presents the total amounts of derivative assets and liabilities on our Consolidated Balance Sheets (in millions of dollars):
|  | As of June 30, 2024 |  |  | As of December 31, 2023 |
Derivative assets: |  |  |  |  |  |
Prepaid expenses and other current assets |  | $ | 5.4 |  |  | $ | 4.8 |
Other assets |  |  | 1.5 |  |  |  | 1.1 |
Total derivative assets |  | $ | 6.9 |  |  | $ | 5.9 |
Derivative liabilities: |  |  |  |  |  |
Other accrued liabilities |  | $ | (3.7 | ) |  | $ | (2.4 | )
Long-term liabilities |  |  | (0.4 | ) |  |  | (0.5 | )
Total derivative liabilities |  | $ | (4.1 | ) |  | $ | (2.9 | )

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