XML 86 R39.htm IDEA: XBRL DOCUMENT

Derivatives and Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2022

The fair value of derivatives reflected in the accompanying consolidated balance sheets are set forth in the table below.


	December 31, 2022				December 31, 2021
	Asset Derivative		Liability Derivative		Asset Derivative		Liability Derivative
	(Dollars in millions)
Foreign currency option contracts	$	3.0	$	—	$	1.4	$	—
Derivative contracts related to forecasted sales	100.6		(310.3)		59.5		(184.2)
Financial trading contracts	11.7		—		3.4		—
Total derivatives	115.3		(310.3)		64.3		(184.2)
Effect of counterparty netting	(100.6)		100.6		(59.5)		59.5
Variation margin (received) posted	(11.7)		209.7		(3.4)		95.2
Net derivatives and variation margin as classified in the balance sheets	$	3.0	$	—	$	1.4	$	(29.5)

Derivative Instruments, Gain (Loss)

The tables below show the amounts of pretax gains and losses related to the Company’s derivatives and their classification within the accompanying consolidated statements of operations.


		Year Ended December 31, 2022
		Total (loss) gain recognized in income		(Loss) gain realized in income on derivatives		Unrealized (loss) gain recognized in income on derivatives
Derivative Instrument	Classification
		(Dollars in millions)
Foreign currency option contracts	Operating costs and expenses	$	(8.4)	$	(6.1)	$	(2.3)
Derivative contracts related to forecasted sales	Revenue	(490.9)		(455.1)		(35.8)
Financial trading contracts	Revenue	10.7		1.1		9.6
Total		$	(488.6)	$	(460.1)	$	(28.5)


		Year Ended December 31, 2021
		Total (loss) gain recognized in income		Gain (loss) realized in income on derivatives		Unrealized (loss) gain recognized in income on derivatives
Derivative Instrument	Classification
		(Dollars in millions)
Foreign currency option contracts	Operating costs and expenses	$	(5.7)	$	1.8	$	(7.5)
Derivative contracts related to forecasted sales	Revenue	(160.7)		(45.6)		(115.1)
Financial trading contracts	Revenue	6.1		4.6		1.5
Total		$	(160.3)	$	(39.2)	$	(121.1)


		Year Ended December 31, 2020
		Total gain (loss) recognized in income		Gain realized in income on derivatives		Unrealized gain (loss) recognized in income on derivatives
Derivative Instrument	Classification
		(Dollars in millions)
Foreign currency option contracts	Operating costs and expenses	$	12.9	$	5.8	$	7.1
Derivative contracts related to forecasted sales	Revenue	4.7		34.3		(29.6)
Financial trading contracts	Revenue	(0.7)		4.2		(4.9)
Total		$	16.9	$	44.3	$	(27.4)

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables set forth the hierarchy of the Company’s net asset (liability) positions for which fair value is measured on a recurring basis. Variation margin cash associated with the derivative balances is excluded from this table.


	December 31, 2022
	Level 1		Level 2		Level 3		Total
	(Dollars in millions)
Foreign currency option contracts	$	—	$	3.0	$	—	$	3.0
Derivative contracts related to forecasted sales	—		(209.7)		—		(209.7)
Financial trading contracts	—		11.7		—		11.7
Equity securities	—		—		2.5		2.5
Total net (liabilities) assets	$	—	$	(195.0)	$	2.5	$	(192.5)

	December 31, 2021
	Level 1		Level 2		Level 3		Total
	(Dollars in millions)
Foreign currency option contracts	$	—	$	1.4	$	—	$	1.4
Derivative contracts related to forecasted sales	—		(124.7)		—		(124.7)
Financial trading contracts	—		3.4		—		3.4
Equity securities	—		—		4.0		4.0
Total net (liabilities) assets	$	—	$	(119.9)	$	4.0	$	(115.9)

Carrying Amounts And Estimated Fair Values Of Company's Debt

The fair value of debt, shown below, is principally based on reported market values and estimates based on interest rates, maturities, credit risk, underlying collateral and completed market transactions.


	December 31,
	2022		2021
	(Dollars in millions)
Total debt at par value	$	343.6	$	1,173.2
Less: Unamortized debt issuance costs and original issue discount	(9.8)		(35.4)
Net carrying amount	$	333.8	$	1,137.8

Estimated fair value	$	560.0	$	1,136.5

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following table summarizes the changes in the Company’s recurring Level 3 net financial assets:


	Year Ended December 31,
	2022		2021		2020
	(Dollars in millions)
Beginning of period	$	4.0	$	4.0	$	4.0



Impairment loss included in earnings	(1.7)		—		—

Purchases	0.2		—		—


End of period	$	2.5	$	4.0	$	4.0