Derivatives and Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2020

Investments All Other Investments [Abstract]

Location and Fair Value Amount of Derivative Instruments

The following table summarizes the location and fair value amount of our derivative instruments reported in our Condensed Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019:

	Asset Derivatives					Liability Derivatives
	Balance Sheet Location	March 31, 2020		December 31, 2019		Balance Sheet Location		March 31, 2020			December 31, 2019
Derivatives not designated as hedging instruments under ASC 815	(In millions)
Metal commodity contracts	Prepaid expenses and other current assets	$	1.0	$	5.0	Other accrued liabilities	(a)	$	8.2	(b)	$	9.4
Crude oil contracts	Prepaid expenses and other current assets		—		0.1	Other accrued liabilities			—			—
Foreign exchange contracts	Prepaid expenses and other current assets		0.2		—	Other accrued liabilities			—			—
Derivatives designated as hedging instruments under ASC 815
Interest rate swaps	Deferred charges and other assets		—		—	Other noncurrent liabilities			4.9			0.2
Total derivatives		$	1.2	$	5.1		(a)	$	13.1	(b)	$	9.6
(a) The offsetting cash collateral balance of $0.5 million held by the derivative counterparty brings the net metal commodity contract liability to $7.7 million and the net total derivative liability balance to $12.6 million as of March 31, 2020.
(b) The offsetting cash collateral balance of $2.7 million held by the derivative counterparty brought the net metal commodity contract liability to $6.7 million and the net total derivative liability balance to $6.9 million as of December 31, 2019.

Volume of Company 's Activity in Derivative Instruments

The following table presents the volume of the Company’s activity in derivative instruments as of March 31, 2020 and December 31, 2019:

	Notional Amount
Derivative Instruments	At March 31, 2020		At December 31, 2019		Unit of Measurement
Iron ore swap contracts		240,000		420,000	Tons
Hot roll coil swap contracts		30,553		47,155	Tons
Crude oil swap contracts		—		38,000	Barrels
Aluminum swap contracts		14,915		23,949	Tons
Nickel swap contracts		338		3,164	Tons
Foreign currency exchange contracts	2.8 million		2.0 million		U.S. dollars
Interest rate swaps	160 million		310 million		U.S. dollars

Location and Amount of Gains and Losses on Derivatives Not Designated as Hedging Instruments Reported in Condensed Consolidated Statements of Comprehensive Income

The following table summarizes the location and amount of gains and losses on derivatives not designated as hedging instruments reported in our Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2020 and 2019:

		Amount of Gain/(Loss) Recognized in Income on Derivatives
Derivatives not designated as hedging instruments	Location of Gain/(Loss) Recognized in Income	Three Months Ended March 31,
under ASC 815	on Derivatives	2020			2019
Metal commodity contracts	Cost of materials sold	$	(2.0	)	$	1.6
Crude oil commodity contracts	Warehousing, delivery, selling, general, and administrative		—			0.9
Foreign exchange contracts	Other income and (expense), net		0.2			(0.1	)
Total		$	(1.8	)	$	2.4

Location and Amount of Gains and Losses on Derivatives Designated as Hedging Instruments Reported in Condensed Consolidated Statements of Comprehensive Income

The following table summarizes the location and amount of gains and losses on derivatives designated as hedging instruments reported in our Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2020 and 2019:

		Amount of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Income into Income
Derivatives designated as hedging instruments	Location of Gain/(Loss) Recognized in Income	Three Months Ended March 31,
under ASC 815	on Derivatives	2020			2019
		(In millions)
Interest rate swaps	Interest and other expense on debt	$	(0.1	)	$	0.3

Assets and Liabilities Measured and Recorded at Fair Value

The following table presents assets and liabilities measured and recorded at fair value on our Condensed Consolidated Balance Sheet on a recurring basis and their level within the fair value hierarchy as of March 31, 2020:

	At March 31, 2020
	Level 1		Level 2			Level 3
	(In millions)
Assets
Derivatives:
Derivatives not designated as hedging instruments under ASC 815:
Metal commodity contracts	$	—	$	1.0		$	—
Foreign exchange contracts		—		0.2			—
Total derivatives	$	—	$	1.2		$	—
Liabilities
Derivatives:
Derivatives not designated as hedging instruments under ASC 815:
Metal commodity contracts	$	—	$	8.2	(a)	$	—
Derivatives designated as hedging instruments under ASC 815:
Interest rate swaps		—		4.9			—
Total derivatives	$	—	$	13.1	(a)	$	—
(a) The offsetting cash collateral balance of $0.5 million held by the derivative counterparty brings the net metal commodity contract liability to $7.7 million and the net total derivative liability balance to $12.6 million.

The following table presents assets and liabilities measured and recorded at fair value on our Condensed Consolidated Balance Sheet on a recurring basis and their level within the fair value hierarchy as of December 31, 2019:

	At December 31, 2019
	Level 1		Level 2			Level 3
	(In millions)
Assets
Derivatives:
Derivatives not designated as hedging instruments under ASC 815:
Metal commodity contracts	$	—	$	5.0		$	—
Foreign exchange contracts		—		0.1			—
Total derivatives	$	—	$	5.1		$	—
Liabilities
Derivatives:
Derivatives not designated as hedging instruments under ASC 815:
Metal commodity contracts	$	—	$	9.4	(b)	$	—
Derivatives designated as hedging instruments under ASC 815:
Interest rate swaps		—		0.2			—
Total derivatives	$	—	$	9.6	(b)	$	—
(b) The offsetting cash collateral balance of $2.7 million held by the derivative counterparty brought the net metal commodity contract liability to $6.7 million and the net total derivative liability balance to $6.9 million.

Carrying and Estimated Fair Values of Financial Instruments

The carrying and estimated fair values of our financial instruments at March 31, 2020 and December 31, 2019 were as follows:

	At March 31, 2020				At December 31, 2019
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(In millions)
Cash and cash equivalents	$	188.3	$	188.3	$	11.0	$	11.0
Restricted cash		16.4		16.4		48.8		48.8
Receivables less provisions		490.7		490.7		425.1		425.1
Accounts payable		377.5		377.5		311.5		311.5
Long-term debt, including current portion		1,096.1		1,058.8		981.8		1,014.4

Assets and Liabilities Measured and Recorded at Fair Value on Non-Recurring Basis

The following tables present assets and liabilities measured and recorded at the lower of its carry value or fair value less cost to sell on the Condensed Consolidated Balance Sheets on a non-recurring basis and their level within the fair value hierarchy as of March 31, 2020 and December 31, 2019:

	At March 31, 2020
	Level 1		Level 2		Level 3
	(In millions)
Assets
Prepaid expenses and other current assets – assets held for sale	$	—	$	1.5	$	—
	At December 31, 2019
	Level 1		Level 2		Level 3
	(In millions)
Assets
Prepaid expenses and other current assets – assets held for sale	$	—	$	1.5	$	—