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Derivative Financial Instruments and Related Hedging Programs (Tables)
 6 Months Ended
Jun. 30, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of realized and unrealized gains and losses
Realized and unrealized (losses) gains associated with all derivative contracts consisted of the following, for each period presented:
 
Quarter Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2013
 
2012
 
2013
 
2012
Realized losses:
 
 
 
 
 
 
 
Aluminum
$
(1.6
)
 
$
(4.2
)
 
$
(1.6
)
 
$
(4.4
)
Natural Gas
(0.1
)
 
(2.1
)
 
(0.8
)
 
(3.9
)
Electricity
(0.1
)
 
(1.5
)
 
(0.1
)
 
(2.2
)
Total realized losses
$
(1.8
)
 
$
(7.8
)
 
$
(2.5
)
 
$
(10.5
)
Unrealized (losses) gains:
 
 
 
 
 
 
 
Aluminum
$
(1.8
)
 
$
(4.7
)
 
$
(6.2
)
 
$
0.5

Natural Gas
(1.9
)
 
3.0

 
0.8

 
1.8

Electricity
(0.6
)
 
1.6

 
0.6

 
0.7

Foreign Currency
0.1

 
—

 
(0.1
)
 
—

Call Options relating to the Convertible Notes
(9.1
)
 
4.4

 
(3.1
)
 
(4.4
)
Bifurcated Conversion Feature of the Convertible Notes
8.2

 
(3.7
)
 
2.6

 
5.6

Total unrealized (losses) gains
$
(5.1
)
 
$
0.6

 
$
(5.4
)
 
$
4.2
Summary of material derivative positions
The following table summarizes the Company’s material derivative positions at June 30, 2013:
Commodity
 
Maturity Period (month/year)
Notional Amount of contracts (mmlbs)
Aluminum —
 
 
 
Fixed priced purchase contracts
 
7/13 through 12/15
56.3
Fixed priced sales contracts
 
7/13 through 12/13
1.0
Midwest premium swap contracts1
 
7/13 through 12/15
54.6
Energy
 
Maturity Period (month/year)
Notional Amount of contracts (mmbtu)
Natural gas —2
 
 
 
Call option purchase contracts
 
7/13 through 12/13
480,000

Put option sales contracts
 
7/13 through 12/13
480,000

Fixed priced purchase contracts
 
7/13 through 12/15
6,690,000

Electricity
 
Maturity Period (month/year)
Notional Amount of contracts (Mwh)
Fixed priced purchase contracts
 
7/13 through 12/15
417,025

Foreign Currency
 
Maturity Period (month/year)
Notional Amount of contracts (as shown)
Euro —
 
 
 
Fixed priced purchase contracts
 
8/13 through 1/14
€
2,580,202

GBP —
 
 
 
Fixed priced purchase contracts
 
9/13 through 5/14
£
198,475

Hedges Relating to the Convertible Notes
 
Contract Period (month/year)
Notional Amount of contracts (Common Shares)
Bifurcated Conversion Feature3
 
3/10 through 3/15
3,631,635

Call Options3
 
3/10 through 3/15
3,631,635

______________________
1 
Regional premiums represent the premium over the London Metal Exchange price for primary aluminum which is incurred on the Company’s purchases of primary aluminum.
2 
As of June 30, 2013, the Company’s exposure to fluctuations in natural gas prices had been substantially reduced for approximately 85%, 84% and 54% of the expected natural gas purchases for the remainder of 2013, 2014 and 2015, respectively.
3 
The Bifurcated Conversion Feature represents the cash conversion feature of the Convertible Notes. The Call Options expire on the maturity of the Convertible Notes and have an exercise price equal to the conversion price of the Convertible Notes, subject to anti-dilution adjustments substantially similar to the anti-dilution adjustments for the Convertible Notes. Although the fair value of the Call Options is derived from a notional number of shares of the Company’s common stock, the Call Options may only be settled in cash.
Summary of offsetting derivative instruments by counterparty
The following tables present offsetting information regarding the Company’s derivatives by type of counterparty as of June 30, 2013:
Derivative Assets and Collateral Held by Counterparty
 
 
 
 
 
 
 
Gross Amounts Not Offset in the Consolidated Balance Sheets
 
 
 
Gross Amounts of Recognized Assets
 
Gross Amounts Offset in the Consolidated Balance Sheets
 
Net Amounts of Assets Presented in the Consolidated Balance Sheets
 
Financial Instruments
 
Cash Collateral Received
 
Net Amount
Counterparty (with Netting Agreements)
$
1.0

 
$
—

 
$
1.0

 
$
1.0

 
$
—

 
$
—

Counterparty (without Netting Agreements)1
52.2

 
—

 
52.2

 
—

 
—

 
52.2

Counterparty (with partial Netting Agreements)
0.6

 
—

 
0.6

 
0.4

 
—

 
0.2

Total
$
53.8

 
$
—

 
$
53.8

 
$
1.4

 
$
—

 
$
52.4

Derivative Liabilities and Collateral Held by Counterparty
 
 
 
 
 
 
 
Gross Amounts Not Offset in the Consolidated Balance Sheets
 
 
 
Gross Amounts of Recognized Liabilities
 
Gross Amounts Offset in the Consolidated Balance Sheets
 
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets
 
Financial Instruments
 
Cash Collateral Pledged
 
Net Amount
Counterparty (with Netting Agreements)
$
(4.1
)
 
$
—

 
$
(4.1
)
 
$
(1.0
)
 
$
—

 
$
(3.1
)
Counterparty (without Netting Agreements)1
(60.9
)
 
—

 
(60.9
)
 
—

 
—

 
(60.9
)
Counterparty (with partial Netting Agreements)
(2.3
)
 
—

 
(2.3
)
 
(0.4
)
 
—

 
(1.9
)
Total
$
(67.3
)
 
$
—

 
$
(67.3
)
 
$
(1.4
)
 
$
—

 
$
(65.9
)
_________________
1 
Such amounts include the fair value of the Company’s Call Options and Bifurcated Conversion Feature at June 30, 2013 (see Note 10).
The following tables present offsetting information regarding the Company’s derivatives by type of counterparty as of December 31, 2012:
Derivative Assets and Collateral Held by Counterparty
 
 
 
 
 
 
 
Gross Amounts Not Offset in the Consolidated Balance Sheets
 
 
 
Gross Amounts of Recognized Assets
 
Gross Amounts Offset in the Consolidated Balance Sheets
 
Net Amounts of Assets Presented in the Consolidated Balance Sheets
 
Financial Instruments
 
Cash Collateral Received
 
Net Amount
Counterparty (with Netting Agreements)
$
2.3

 
$
—

 
$
2.3

 
$
1.0

 
$
—

 
$
1.3

Counterparty (without Netting Agreements)1
55.9

 
—

 
55.9

 
—

 
—

 
55.9

Counterparty (with partial Netting Agreements)
0.3

 
—

 
0.3

 
0.2

 
—

 
0.1

Total
$
58.5

 
$
—

 
$
58.5

 
$
1.2

 
$
—

 
$
57.3

Derivative Liabilities and Collateral Held by Counterparty
 
 
 
 
 
 
 
Gross Amounts Not Offset in the Consolidated Balance Sheets
 
 
 
Gross Amounts of Recognized Liabilities
 
Gross Amounts Offset in the Consolidated Balance Sheets
 
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets
 
Financial Instruments
 
Cash Collateral Pledged
 
Net Amount
Counterparty (with Netting Agreements)
$
(1.7
)
 
$
—

 
$
(1.7
)
 
$
(1.0
)
 
$
—

 
$
(0.7
)
Counterparty (without Netting Agreements)1
(63.8
)
 
—

 
(63.8
)
 
—

 
—

 
(63.8
)
Counterparty (with partial Netting Agreements)
(1.2
)
 
—

 
(1.2
)
 
(0.2
)
 
—

 
(1.0
)
Total
$
(66.7
)
 
$
—

 
$
(66.7
)
 
$
(1.2
)
 
$
—

 
$
(65.5
)
_________________
1 
Such amounts include the fair value of the Company’s Call Options and Bifurcated Conversion Feature at December 31, 2012 (see Note 10).