Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2019

Derivative Financial Instruments

Schedule of Notional Amounts of Outstanding Derivative Positions

Commodity Futures	Long/Short	Metric Tons
Aluminum	Long	575
Aluminum	Short	4,100
Copper	Long	10,036
Copper	Short	21,704

Schedule of Derivative Instruments Statements of Financial Performance and Financial Position

The following summarizes the location and amounts of the fair values reported on the company’s consolidated balance sheets as of September 30, 2019, and December 31, 2018, and gains and losses related to derivatives included in the company’s statement of income for the three and nine-month periods ended September 30, 2019 and 2018 (in thousands):

		Asset Derivatives				Liability Derivatives
	Balance sheet	Fair Value				Fair Value
	location	September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018
Derivative instruments designated as hedges
Commodity futures	Other current assets	$	1,063	$	2,999	$	805	$	1,837
Derivative instruments not designated as hedges
Commodity futures	Other current assets		313		1,559		3,100		2,053
Total derivative instruments		$	1,376	$	4,558	$	3,905	$	3,890

The fair value of the above derivative instruments along with required margin deposit amounts with the same counterparty under master netting arrangements totaled $4.3 million at September 30, 2019, and $4.9 million at December 31, 2018, and are reflected in other current assets in the consolidated balance sheets.

		Amount of gain (loss)						Amount of gain (loss)
		recognized in income					Location of gain	recognized in income
	Location of gain	on derivatives for the					(loss) recognized	on derivatives for the
	(loss) recognized	three months ended				Hedged items in	in income on	three months ended
	in income on	September 30,				fair value hedge	related hedged	September 30,
	derivatives	2019		2018		relationships	items	2019		2018
Derivatives in fair value
hedging relationships
Commodity futures	Costs of goods sold	$	302	$	(8,943)	Firm commitments	Costs of goods sold	$	(519)	$	5,111
						Inventory	Costs of goods sold		(182)		1,753
Derivatives not designated								$	(701)	$	6,864
as hedging instruments
Commodity futures	Costs of goods sold	$	4,536	$	13,803

		Amount of gain (loss)						Amount of gain (loss)
		recognized in income					Location of gain	recognized in income
	Location of gain	on derivatives for the					(loss) recognized	on derivatives for the
	(loss) recognized	three months ended				Hedged items in	in income on	three months ended
	in income on	September 30,				fair value hedge	related hedged	September 30,
	derivatives	2019		2018		relationships	items	2019		2018
Derivatives in fair value
hedging relationships
Commodity futures	Costs of goods sold	$	(560)	$	1,113	Firm commitments	Costs of goods sold	$	(603)	$	1,718
						Inventory	Costs of goods sold		245		(1,659)
Derivatives not designated								$	(358)	$	59
as hedging instruments
Commodity futures	Costs of goods sold	$	5,946	$	19,523