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Derivatives, Hedging Programs and Other Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Derivative Positions

The following table summarizes our derivative positions at June 30, 2024:

 

Aluminum

 

Maturity Period

 

Notional Amount of Contracts (mmlbs)

 

Fixed price purchase contracts for LME

 

July 2024 through December 2025

 

 

62.4

 

Fixed price purchase contracts for MWTP

 

July 2024 through December 2025

 

 

48.9

 

Fixed price sale contracts for MWTP

 

July 2024 through September 2024

 

 

15.5

 

 

Alloying Metals

 

Maturity Period

 

Notional Amount of Contracts (mmlbs)

 

Fixed price purchase contracts

 

July 2024 through December 2026

 

 

10.0

 

 

Natural Gas

 

Maturity Period

 

Notional Amount of Contracts (mmbtu)

 

Fixed price purchase contracts

 

July 2024 through December 2026

 

 

3,240,000

 

 

Electricity

 

Maturity Period

 

Notional Amount of Contracts (Mwh)

 

Fixed price purchase contracts

 

July 2024 through December 2024

 

 

110,425

 

 

Euro

 

Maturity Period

 

Notional Amount of Contracts (EUR)

 

Fixed price forward purchase contracts

 

August 2024 through January 2026

 

 

10,856,964

 

 

 

British Pounds

 

Maturity Period

 

Notional Amount of Contracts (GBP)

 

Fixed price forward purchase contracts

 

July 2024

 

 

72,266

 
(Gain)
Summary of (Gain) Loss Associated with Derivative Contracts

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

 

 

 

Quarter Ended June 30,

 

 

Six Months Ended June 30,

 

 

2024

 

 

2023

 

 

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

 

$

690.5

 

 

$

718.4

 

 

$

1,333.4

 

 

$

1,449.5

 

 

 

 

 

 

 

 

 

 

 

 

 

(Gain) loss recognized in our Statements of Consolidated Income related to cash flow hedges:

 

 

 

 

 

 

 

 

 

 

 

 

Aluminum

 

$

(2.7

)

 

$

5.2

 

 

$

(0.7

)

 

$

5.7

 

Alloying Metals

 

 

(0.5

)

 

 

—

 

 

 

(0.5

)

 

 

—

 

Natural gas

 

 

0.4

 

 

 

0.3

 

 

 

0.7

 

 

 

—

 

Electricity

 

 

0.8

 

 

 

—

 

 

 

0.6

 

 

 

—

 

Total (gain) loss recognized in our Statements of Consolidated Income related to cash flow hedges

 

$

(2.0

)

 

$

5.5

 

 

$

0.1

 

 

$

5.7

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss recognized in our Statements of Consolidated Income related to non-designated derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

Alloying Metals – Unrealized mark-to-market loss

 

$

—

 

 

$

0.2

 

 

$

—

 

 

$

0.1

 

Electricity – Unrealized mark-to-market loss

 

 

2.0

 

 

 

—

 

 

 

2.0

 

 

 

—

 

Electricity (reclassification from AOCI due to forecasted transactions probable of not occurring)

 

 

0.2

 

 

 

—

 

 

 

0.2

 

 

 

—

 

Total loss recognized in our Statements of Consolidated Income related to non-designated derivatives

 

$

2.2

 

 

$

0.2

 

 

$

2.2

 

 

$

0.1

 

 
Schedule of Fair Value of Derivative Assets and Liabilities The following table presents the fair value of our derivative assets and liabilities (in millions of dollars):

 

 

 

As of June 30, 2024

 

 

As of December 31, 2023

 

 

 

Assets

 

 

Liabilities

 

 

Net Amount

 

 

Assets

 

 

Liabilities

 

 

Net Amount

 

Aluminum –

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed price purchase contracts for LME

 

$

3.4

 

 

$

(0.7

)

 

$

2.7

 

 

$

3.4

 

 

$

(0.6

)

 

$

2.8

 

Fixed price sale contracts for LME

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(0.2

)

 

 

(0.2

)

Fixed price purchase contracts for MWTP

 

 

0.3

 

 

 

(0.3

)

 

 

—

 

 

 

0.4

 

 

 

(0.3

)

 

 

0.1

 

Fixed price sale contracts for MWTP

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.1

 

 

 

(0.2

)

 

 

(0.1

)

Alloying Metals – Fixed price purchase contracts

 

 

2.6

 

 

 

—

 

 

 

2.6

 

 

 

0.7

 

 

 

(0.1

)

 

 

0.6

 

Natural gas – Fixed price purchase contracts

 

 

0.5

 

 

 

(0.7

)

 

 

(0.2

)

 

 

0.3

 

 

 

(0.9

)

 

 

(0.6

)

Electricity – Fixed price purchase contracts

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.5

 

 

 

(0.6

)

 

 

(0.1

)

Foreign currency – Fixed price forward contracts

 

 

—

 

 

 

(0.1

)

 

 

(0.1

)

 

 

0.5

 

 

 

—

 

 

 

0.5

 

Total cash flow hedges

 

 

6.8

 

 

 

(1.8

)

 

 

5.0

 

 

 

5.9

 

 

 

(2.9

)

 

 

3.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Designated Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Electricity – Fixed price purchase contracts

 

 

0.1

 

 

 

(2.3

)

 

 

(2.2

)

 

 

—

 

 

 

—

 

 

 

—

 

Total non-designated derivatives

 

 

0.1

 

 

 

(2.3

)

 

 

(2.2

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

6.9

 

 

$

(4.1

)

 

$

2.8

 

 

$

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 June 30, 2024

 

 

As of December 31, 2023

 

Derivative assets:

 

 

 

 

 

 

Prepaid expenses and other current assets

 

$

5.4

 

 

$

4.8

 

Other assets

 

 

1.5

 

 

 

1.1

 

Total derivative assets

 

$

6.9

 

 

$

5.9

 

Derivative liabilities:

 

 

 

 

 

 

Other accrued liabilities

 

$

(3.7

)

 

$

(2.4

)

Long-term liabilities

 

 

(0.4

)

 

 

(0.5

)

Total derivative liabilities

 

$

(4.1

)

 

$

(2.9

)