Derivatives, Hedging Programs and Other Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Derivative Positions

The following table summarizes our derivative positions at March 31, 2024:

Aluminum	Maturity Period	Notional Amount of Contracts (mmlbs)
Fixed price purchase contracts for LME	April 2024 through December 2025		74.5
Fixed price sale contracts for LME	April 2024		7.0
Fixed price purchase contracts for MWTP	April 2024 through December 2025		60.5
Fixed price sale contracts for MWTP	April 2024 through September 2024		26.7

Alloying Metals	Maturity Period	Notional Amount of Contracts (mmlbs)
Fixed price purchase contracts	April 2024 through December 2025		10.0

Natural Gas	Maturity Period	Notional Amount of Contracts (mmbtu)
Fixed price purchase contracts	April 2024 through December 2026		3,880,000

Electricity	Maturity Period	Notional Amount of Contracts (Mwh)
Fixed price purchase contracts	April 2024 through December 2024		39,606

Euro	Maturity Period	Notional Amount of Contracts (EUR)
Fixed price forward purchase contracts	April 2024 through January 2026		17,485,138

British Pounds	Maturity Period	Notional Amount of Contracts (GBP)
Fixed price forward purchase contracts	May 2024 through July 2024		216,799

Summary of Loss (Gain) Associated with Derivative Contracts

The following table summarizes the amount of loss (gain) on derivative contracts recorded within our Statements of Consolidated Income in COGS (in millions of dollars):

	Quarter Ended March 31,
	2024			2023
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	$	642.9		$	731.1
Loss (gain) recognized in our Statements of Consolidated Income related to cash flow hedges:
Aluminum	$	2.0		$	0.5
Natural gas		0.3			(0.3	)
Electricity		(0.2	)		—
Total loss recognized in our Statements of Consolidated Income related to cash flow hedges	$	2.1		$	0.2
Gain recognized in our Statements of Consolidated Income related to non-designated hedges:
Alloying Metals – Unrealized gain	$	—		$	(0.1	)

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, 2024								As of December 31, 2023
	Assets		Liabilities			Net Amount			Assets		Liabilities			Net Amount
Aluminum –
Fixed price purchase contracts for LME	$	2.1	$	(0.4	)	$	1.7		$	3.4	$	(0.6	)	$	2.8
Fixed price sale contracts for LME		—		—			—			—		(0.2	)		(0.2	)
Fixed price purchase contracts for MWTP		0.7		(0.1	)		0.6			0.4		(0.3	)		0.1
Fixed price sale contracts for MWTP		—		(0.4	)		(0.4	)		0.1		(0.2	)		(0.1	)
Alloying Metals – Fixed price purchase contracts		0.7		(0.2	)		0.5			0.7		(0.1	)		0.6
Natural gas – Fixed price purchase contracts		0.4		(1.2	)		(0.8	)		0.3		(0.9	)		(0.6	)
Electricity – Fixed price purchase contracts		0.2		(0.9	)		(0.7	)		0.5		(0.6	)		(0.1	)
Foreign currency – Fixed price forward contracts		—		—			—			0.5		—			0.5
Total	$	4.1	$	(3.2	)	$	0.9		$	5.9	$	(2.9	)	$	3.0

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, 2024			As of December 31, 2023
Derivative assets:
Prepaid expenses and other current assets	$	3.3		$	4.8
Other assets		0.8			1.1
Total derivative assets	$	4.1		$	5.9
Derivative liabilities:
Other accrued liabilities	$	(2.6	)	$	(2.4	)
Long-term liabilities		(0.6	)		(0.5	)
Total derivative liabilities	$	(3.2	)	$	(2.9	)