Derivatives, Hedging Programs and Other Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Derivative Positions

The following table summarizes our derivative positions at March 31, 2023:

Aluminum	Maturity Period	Notional Amount of Contracts (mmlbs)
Fixed price purchase contracts	April 2023 through July 2024		63.4
Midwest premium purchase contracts1	April 2023 through July 2024		74.4
Midwest premium sale contracts1	July 2023 through September 2023		21.0

Alloying Metals	Maturity Period	Notional Amount of Contracts (mmlbs)
Fixed price purchase contracts	April 2023 through December 2023		0.9

Natural Gas	Maturity Period	Notional Amount of Contracts (mmbtu)
Fixed price purchase contracts	April 2023 through December 2026		3,780,000

Euro	Maturity Period	Notional Amount of Contracts (EUR)
Fixed price forward contracts	July 2023 through February 2024		690,816

British Pounds	Maturity Period	Notional Amount of Contracts (GBP)
Fixed price forward contracts	May 2023 through September 2023		202,128

1Regional premiums represent the premium over the London Metal Exchange price for primary aluminum which is incurred on our purchases of primary aluminum.

Summary of Gain Associated with Derivative Contracts

The following table summarizes the amount of loss (gain) included in our Statements of Consolidated Income associated with all derivative contracts (in millions of dollars):

	Quarter Ended March 31,						Statements of Consolidated
	2023			2022			Income Classification
Total of income and expense line items presented in our Statements of Consolidated Income in which the effects of hedges are recorded:
Cash flow hedges	$	731.1		$	865.9		Cost of products sold
Loss (gain) recognized in our Statements of Consolidated Income related to cash flow hedges:
Aluminum	$	0.5		$	(18.7	)	Cost of products sold
Natural gas		(0.3	)		(0.9	)	Cost of products sold
Electricity		—			(0.3	)	Cost of products sold
Total loss (gain) recognized in our Statements of Consolidated Income related to cash flow hedges	$	0.2		$	(19.9	)
Loss (gain) recognized in our Statements of Consolidated Income related to non-designated hedges:
Alloying Metals – Realized loss (gain)	$	—		$	(0.6	)	Cost of products sold
Alloying Metals – Unrealized gain		(0.1	)		(1.0	)	Cost of products sold
Total gain recognized in our Statements of Consolidated Income related to non-designated hedges	$	(0.1	)	$	(1.6	)

Schedule of Fair Value of Derivative Financial Instruments

The following table presents the fair value of our derivative financial instruments (in millions of dollars):

	As of March 31, 2023								As of December 31, 2022
	Assets		Liabilities			Net Amount			Assets		Liabilities			Net Amount
Cash Flow Hedges:
Aluminum –
Fixed price purchase contracts	$	0.8	$	(3.0	)	$	(2.2	)	$	0.7	$	(3.9	)	$	(3.2	)
Midwest premium purchase contracts		0.2		(1.7	)		(1.5	)		0.5		(1.4	)		(0.9	)
Midwest premium sale contracts		0.5		—			0.5			—		—			—
Natural gas – Fixed price purchase contracts		1.7		(0.3	)		1.4			4.7		—			4.7
Total cash flow hedges		3.2		(5.0	)		(1.8	)		5.9		(5.3	)		0.6
Non-Designated Hedges:
Alloying Metals – Fixed price purchase contracts		0.1		—			0.1			—		—			—
Total non-designated hedges		0.1		—			0.1			—		—			—
Total	$	3.3	$	(5.0	)	$	(1.7	)	$	5.9	$	(5.3	)	$	0.6

The following table presents the total amounts of derivative assets and liabilities on our Consolidated Balance Sheets (in millions of dollars):

	As of March 31, 2023			As of December 31, 2022
Derivative assets:
Prepaid expenses and other current assets	$	2.0		$	3.6
Other assets		1.3			2.3
Total derivative assets	$	3.3		$	5.9
Derivative liabilities:
Other accrued liabilities	$	(4.9	)	$	(5.3	)
Long-term liabilities		(0.1	)		—
Total derivative liabilities	$	(5.0	)	$	(5.3	)