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Derivative Financial Instruments and Related Hedging Programs (Tables)
 3 Months Ended
Mar. 31, 2012
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of material derivative positions
The following table summarizes the Company’s material derivative positions at March 31, 2012:
Commodity
 
Maturity Period
Notional Amount of contracts (mmlbs)
Aluminum —
 
 
 
Fixed priced purchase contracts
 
4/12 through 12/15
96.1
Fixed priced sales contracts
 
4/12 through 12/12
2.0
Midwest premium swap contracts1
 
4/12 through 12/12
77.2
Energy
 
Maturity Period
Notional Amount of contracts (mmbtu)
Natural gas —2
 
 
 
Call option purchase contracts
 
4/12 through 12/13
3,270,000

Put option sales contracts
 
4/12 through 12/13
3,270,000

Fixed priced purchase contracts
 
4/12 through 12/14
2,520,000

Electricity
 
Maturity Period
Notional Amount of contracts (Mwh)
Fixed priced purchase contracts
 
4/12 through 12/13
296,425


Hedges Relating to the Notes
 
Contract Period
Notional Amount of contracts (Common Shares)
Bifurcated Conversion Feature3
 
3/10 through 3/15
3,623,113

Call Options3
 
3/10 through 3/15
3,623,113

______________________
1 
Regional premiums represent the premium over the London Metal Exchange price for primary aluminum which is incurred on the Company’s purchases of primary aluminum.
2 
As of March 31, 2012, the Company’s exposure to fluctuations in natural gas prices had been substantially reduced for approximately 85%, 58% and 25% of the expected natural gas purchases for the remainder of 2012, 2013 and 2014, respectively.
3 
The Bifurcated Conversion Feature represents the cash conversion feature of the Notes. To hedge against the potential cash outflows associated with the Bifurcated Conversion Feature, the Company purchased cash-settled Call Options. The Call Options have an exercise price equal to the conversion price of the Notes, subject to anti-dilution adjustments substantially similar to the anti-dilution adjustments for the Notes. The Call Options will expire upon the maturity of the Notes. Although the fair value of the Call Options is derived from a notional number of shares of the Company’s common stock, the Call Options may only be settled in cash.
Summary of realized and unrealized gains (losses)
Realized and Unrealized Gain and Losses. Realized and unrealized gains (losses) associated with all derivative contracts consisted of the following, for each period presented:
 
Quarter Ended
 
March 31,
 
2012
 
2011
Realized (losses) gains:
 
 
 
Aluminum
$
(0.2
)
 
$
4.5

Natural Gas
(1.8
)
 
(1.4
)
Electricity
(0.7
)
 
—

Total realized (losses) gains:
$
(2.7
)
 
$
3.1

Unrealized gains (losses):
 
 
 
Aluminum
$
5.2

 
$
3.1

Natural Gas
(1.2
)
 
1.2

Electricity
(0.9
)
 
—

Call Options relating to the Notes
(8.8
)
 
(2.0
)
Cash conversion feature of the Notes
9.3

 
3.7

Total unrealized gains
$
3.6

 
$
6.0