Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2023

Derivative Financial Instruments

Schedule of Notional Amounts of Outstanding Derivative Positions

The following summarizes the company’s significant futures contract commitments as of June 30, 2023:

Commodity Futures	Long/Short	Metric Tons
Aluminum	Long	8,150
Aluminum	Short	12,500
Copper	Long	55,905
Copper	Short	74,877

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 June 30, 2023, and December 31, 2022, and gains and losses related to derivatives included in the company’s statement of income for the three and six-month periods ended June 30, 2023, and 2022 (in thousands):

		Asset Derivatives				Liability Derivatives
	Balance sheet	Fair Value				Fair Value
	location	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Derivative instruments designated as hedges
Commodity futures	Other current assets	$	4,485	$	2,169	$	1,979	$	2,119
Derivative instruments not designated as hedges
Commodity futures	Other current assets		26,915		2,102		14,398		5,269
Total derivative instruments		$	31,400	$	4,271	$	16,377	$	7,388

		Amount of gain						Amount of loss
		recognized in income					Location of loss	recognized in income
	Location of gain	on derivatives for the					recognized	on derivatives for the
	recognized	three-month periods				Hedged items in	in income on	three-month periods
	in income on	ended June 30,				fair value hedge	related hedged	ended June 30,
	derivatives	2023		2022		relationships	items	2023		2022
Derivatives in fair value hedging relationships
Commodity futures	Costs of goods sold	$	2,430	$	11,956	Firm commitments	Costs of goods sold	$	(264)	$	(4,343)
						Inventory	Costs of goods sold		(368)		(5,996)
								$	(632)	$	(10,339)
Derivatives not designated as hedging instruments
Commodity futures	Costs of goods sold	$	18,639	$	27,391

Note 5. Derivative Financial Instruments (Continued)

		Amount of gain						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
	recognized	six-month periods				Hedged items in	in income on	six-month periods
	in income on	ended June 30,				fair value hedge	related hedged	ended June 30,
	derivatives	2023		2022		relationships	items	2023		2022
Derivatives in fair value hedging relationships
Commodity futures	Costs of goods sold	$	2,275	$	13,281	Firm commitments	Costs of goods sold	$	113	$	(5,535)
						Inventory	Costs of goods sold		(129)		(6,380)
								$	(16)	$	(11,915)
Derivatives not designated as hedging instruments
Commodity futures	Costs of goods sold	$	7,249	$	16,170