Derivatives and Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2022

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, 2022 and December 31, 2021:

	Asset Derivatives					Liability Derivatives
	Balance Sheet Location	March 31, 2022		December 31, 2021		Balance Sheet Location	March 31, 2022		December 31, 2021
Derivatives not designated as hedging instruments under ASC 815	(In millions)
Metal commodity contracts	Prepaid expenses and other current assets	$	20.4	$	13.0	Other accrued liabilities	$	33.1	$	35.1
Diesel fuel commodity contracts	Prepaid expenses and other current assets		0.7		—	Other accrued liabilities		—		—
2028 Notes embedded derivative	Prepaid expenses and other current assets		—		0.2	Other accrued liabilities		—		—
Interest rate swaps	Prepaid expenses and other current assets		—		—	Other accrued liabilities		0.3		1.4
Total derivatives		$	21.1	$	13.2		$	33.4	$	36.5

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, 2022 and December 31, 2021:

	Notional Amount
Derivative Instruments	At March 31, 2022		At December 31, 2021		Unit of Measurement
Hot roll coil swap contracts		152,076		176,859	Tons
Aluminum swap contracts		15,396		20,949	Tons
Nickel swap contracts		534		857	Tons
Diesel fuel swap contracts		700,000		840,000	Gallons
Foreign currency exchange contracts	3.5 million		4.5 million		U.S. dollars
Interest rate swap contracts	160 million		160 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, 2022 and 2021:

Derivatives not designated as	Location of Gain/(Loss)	Amount of Gain/(Loss) Recognized in Income on Derivatives						Amount of Gain/(Loss) Reclassified from Other Comprehensive Income into Income
hedging instruments	Recognized in Income	Three Months Ended March 31,						Three Months Ended March 31,
under ASC 815	on Derivatives	2022			2021			2022			2021
		(In millions)
Metal commodity contracts	Cost of materials sold	$	(2.6	)	$	(10.7	)	$	—		$	—
Diesel fuel commodity contracts	Warehousing, delivery, selling, general, and administrative		0.7			—			—			—
2028 Notes embedded derivative	Other income and (expense), net		(0.2	)		0.3			—			—
Foreign exchange contracts	Other income and (expense), net		—			0.1			—			—
Interest rate swaps	Interest and other expense on debt		0.6			—			(0.7	)		(0.5	)
Total		$	(1.5	)	$	(10.3	)	$	(0.7	)	$	(0.5	)

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, 2022:

	At March 31, 2022
	Level 1		Level 2		Level 3
	(In millions)
Assets
Derivatives:
Derivatives not designated as hedging instruments under ASC 815:
Metal commodity contracts	$	—	$	20.4	$	—
Diesel fuel commodity contracts		—		0.7		—
Total derivatives	$	—	$	21.1	$	—
Liabilities
Derivatives:
Derivatives not designated as hedging instruments under ASC 815:
Metal commodity contracts	$	—	$	33.1	$	—
Interest rate swaps		—		0.3		—
Total derivatives	$	—	$	33.4	$	—

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, 2021:

	At December 31, 2021
	Level 1		Level 2		Level 3
	(In millions)
Assets
Derivatives:
Derivatives not designated as hedging instruments under ASC 815:
Metal commodity contracts	$	—	$	13.0	$	—
2028 Notes embedded derivative		—		—		0.2
Total derivatives	$	—	$	13.0	$	0.2
Liabilities
Derivatives:
Derivatives not designated as hedging instruments under ASC 815:
Metal commodity contracts	$	—	$	35.1	$	—
Interest rate swaps		—		1.4		—
Total derivatives	$	—	$	36.5	$	—

Financial Instruments Measured at Fair Value

The changes in financial instruments measured at fair value for which the Company has used Level 3 inputs to determine fair value are as follows:

	2028 Notes Embedded Derivative
	(In millions)
Balance at January 1, 2022	$	0.2
Unrealized loss recorded in other income and (expense), net		(0.2	)
Balance at March 31, 2022	$	—
	2028 Notes Embedded Derivative
	(In millions)
Balance at January 1, 2021	$	2.3
Unrealized gain recorded in other income and (expense), net		0.3
Balance at March 31, 2021	$	2.6

Carrying and Estimated Fair Values of Financial Instruments

The carrying and estimated fair values of our financial instruments at March 31, 2022 and December 31, 2021 were as follows:

	At March 31, 2022				At December 31, 2021
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(In millions)
Cash and cash equivalents	$	44.7	$	44.7	$	51.2	$	51.2
Restricted cash		1.1		1.1		1.2		1.2
Receivables less provisions		778.7		778.7		630.8		630.8
Accounts payable		602.6		602.6		481.2		481.2
Long-term debt, including current portion		551.3		571.3		639.3		666.8