We utilize derivative instruments to manage exposures to risks that have been identified, measured and are capable of being mitigated. The primary risks that we manage by using derivative instruments are commodity price risk associated with copper and foreign currency exchange risk associated with a number of currencies, principally the U.S. dollar, the Euro and British pounds. Swap contracts on copper are used to manage the price risk associated with forecasted purchases of materials used in our manufacturing processes. Generally, we will not hedge cash flow exposures for durations longer than 36 months and we have hedged certain volumes of copper through the end of 2022. We enter into foreign currency forward contracts to manage foreign currency risk associated with our receivable and payable balances in addition to foreign-denominated sales. Generally, we enter into master netting arrangements with the counterparties and offset net derivative positions with the same counterparties. Currently, our agreements do not require cash collateral.

ASC Topic 815-10, “Derivatives and Hedging,” requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the balance sheet. Derivative instruments’ fair value is determined using significant other observable inputs, or Level 2 in the fair value hierarchy. In accordance with ASC Topic 815-10, we designate certain of our commodity swaps as cash flow hedges of forecasted purchases of commodities. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and is reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative instruments representing hedge ineffectiveness are recognized in current earnings.

For those commodity swaps where hedge accounting is not elected, the fair value of the commodity swap is recognized as an asset or liability in the consolidated balance sheet and the related gain or loss on the derivative is reported in current earnings. These amounts are classified in cost of sales in the condensed consolidated statement of operations.

As of June 30, 2021 and December 31, 2020, we had outstanding copper swap contracts of the following amounts:

	Units Outstanding (in Pounds)				Net Fair Value - Asset
	June 30, 2021		December 31, 2020		June 30, 2021		December 31, 2020
(Amounts in millions)
Cash flow hedges		45.1		62.3	$	75.7	$	58.3
Contracts where hedge accounting was not elected		7.3		11.5		12.6		10.9
Total		52.4		73.8	$	88.3	$	69.2

As of June 30, 2021 and December 31, 2020, the fair value of the outstanding copper swap contracts is recorded in the balance sheet as follows:

	June 30, 2021		December 31, 2020
(Dollars in millions)
Derivative contracts	$	46.0	$	37.3
Non-current derivative contracts		42.3		31.9
Asset on balance sheet	$	88.3	$	69.2
Accumulated other comprehensive gain, net of tax	$	57.9	$	44.4

In the next twelve months, we estimate that $39.9 million of unrealized gains, net of tax, related to commodity price hedging will be reclassified from other comprehensive income into earnings.

See Note 6 – “Comprehensive Income and Equity”, for amounts recorded in other comprehensive income and for amounts reclassified from accumulated other comprehensive loss into net income (loss) for the periods specified below.

For the three and six months ended June 30, 2021 and 2020, the unrealized gain (loss) from contracts where hedge accounting was not elected is as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	2021			2020		2021		2020
(Dollars in millions)
Gain (loss) from contracts where hedge accounting was not elected		(0.9	)		8.3		1.7		0.3

The fair value associated with forward contracts related to foreign currency that are not designated as hedges are immediately charged to earnings. These amounts are classified in cost of sales in the condensed consolidated statement of operations and comprehensive income.

As of June 30, 2021 and December 31, 2020, the fair value of outstanding foreign currency forward contracts is recorded in the balance sheet as follows:

	June 30, 2021			December 31, 2020
(Dollars in millions)
Derivative contracts	$	0.0		$	1.2
Accrued liabilities		(0.5	)		(0.5	)
Net (liability) asset on balance sheet	$	(0.5	)	$	0.7

As of June 30, 2021 and December 31, 2020, the net currency units outstanding for these contracts were:

	June 30, 2021		December 31, 2020
(In millions)
British Pounds		GBP 14.3		GBP 2.0
United States Dollars		USD 11.0		USD 7.6
Euro		EUR 0.9		EUR 0.0