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Derivative Financial Instruments and Related Hedging Programs (Tables)
 9 Months Ended
Sep. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of realized and unrealized gains and losses
Realized and unrealized (losses) gains associated with all derivative contracts consisted of the following for each period presented (in millions of dollars):
 
Quarter Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2015
 
2014
 
2015
 
2014
Included in Other Comprehensive Income (Loss):
 
 
 
 
 
 
 
Unrealized (losses):
 
 
 
 
 
 
 
Foreign Currency
$
—

 
$
—

 
$
(0.2
)
 
$
—

Included in Statements of Consolidated Income (Loss):
 
 
 
 
 
 
 
Realized (losses) gains1:
 
 
 
 
 
 
 
Aluminum
(9.0
)
 
3.1

 
(18.8
)
 
5.2

Natural Gas
(1.2
)
 
(0.1
)
 
(3.8
)
 
1.1

Electricity
(0.3
)
 
0.1

 
(1.4
)
 
0.1

Total realized (losses) gains
$
(10.5
)
 
$
3.1

 
$
(24.0
)
 
$
6.4

Unrealized (losses)2:
 
 
 
 
 
 
 
Non-designated hedges of operational risk:
 
 
 
 
 
 
 
Aluminum
$
(0.3
)
 
$
(1.0
)
 
$
(8.8
)
 
$
1.3

Natural Gas
(1.0
)
 
(1.6
)
 
(0.2
)
 
(1.0
)
Electricity
(0.4
)
 
(1.0
)
 
1.3

 
(0.3
)
Foreign Currency
—

 
0.1

 
—

 
—

Total non-designated hedges of operational risk
(1.7
)
 
(3.5
)
 
(7.7
)
 
—

Option Assets relating to the Convertible Notes3
—

 
12.9

 
10.2

 
19.8

Bifurcated Conversion Feature of the Convertible Notes3
—

 
(10.7
)
 
(10.2
)
 
(16.2
)
Total unrealized (losses) gains
$
(1.7
)
 
$
(1.3
)
 
$
(7.7
)
 
$
3.6


______________________
1 
Realized (losses) gains on hedges of operational risk are recorded within Cost of products sold, excluding depreciation, amortization and other items.
2 
Unrealized (losses) on hedges of operational risk are recorded within Unrealized losses on derivative instruments.
3 
Unrealized (losses) gains on financial derivatives are recorded within Other income, net.
Summary of material derivative positions
The following table summarizes our material derivative positions at September 30, 2015:
Aluminum
Maturity Period (month/year)
 
Notional Amount of contracts (mmlbs)
Fixed price purchase contracts
10/15 through 12/16
 
148.9

Fixed price sales contracts
10/15 through 10/16
 
2.4

Midwest premium swap contracts1
10/15 through 12/16
 
87.8

Natural Gas2
Maturity Period (month/year)
 
Notional Amount of contracts (mmbtu)
Fixed price purchase contracts
10/15 through 12/18
 
6,820,000

Electricity3
Maturity Period (month/year)
 
Notional Amount of contracts (Mwh)
Fixed price purchase contracts
10/15 through 12/15
 
44,180

Euro
Maturity Period (month/year)
 
Notional Amount of contracts (euro)
Fixed price purchase contracts
11/15 through 12/16
 
7,315,000


______________________
1 
Regional premiums represent the premium over the London Metal Exchange price for primary aluminum which is incurred on our purchases of primary aluminum.
2 
As of September 30, 2015, we had Henry Hub NYMEX-based hedge positions in place to cover exposure to fluctuations in prices for approximately 76%, 75%, 57% and 11% of the expected natural gas purchases for the remainder of 2015, 2016, 2017 and 2018, respectively.
3 
As of September 30, 2015, we had Mid-C International Commodity Exchange-based hedge positions, as well as physical delivery commitments with energy companies, in place to cover our exposure to fluctuations in electricity prices for approximately 54% of the expected electricity purchases for the remainder of 2015 and each of 2016 and 2017.
Summary of offsetting derivative assets by counterparty
The following tables present offsetting information regarding our derivatives by type of counterparty as of December 31, 2014 (in millions of dollars):
Derivative Assets and Collateral Held by Counterparty
 
 
 
 
 
 
 
Gross Amounts Not Offset in the Consolidated Balance Sheets
 
 
 
Gross Amounts of Recognized Assets
 
Gross Amounts Offset in the Consolidated Balance Sheets
 
Net Amounts of Assets Presented in the Consolidated Balance Sheets
 
Financial Instruments
 
Cash Collateral Received
 
Net Amount
Counterparty
(with netting agreements)
$
0.9

 
$
—

 
$
0.9

 
$
0.8

 
$
—

 
$
0.1

Counterparty
(without netting agreements)1
84.8

 
—

 
84.8

 
—

 
—

 
84.8

Total
$
85.7

 
$
—

 
$
85.7

 
$
0.8

 
$
—

 
$
84.9

The following tables present offsetting information regarding our derivatives by type of counterparty as of September 30, 2015 (in millions of dollars):
Derivative Assets and Collateral Held by Counterparty
 
 
 
 
 
 
 
Gross Amounts Not Offset in the Consolidated Balance Sheets
 
 
 
Gross Amounts of Recognized Assets
 
Gross Amounts Offset in the Consolidated Balance Sheets
 
Net Amounts of Assets Presented in the Consolidated Balance Sheets
 
Financial Instruments
 
Cash Collateral Received
 
Net Amount
Counterparty
(with netting agreements)
$
0.3

 
$
—

 
$
0.3

 
$
0.3

 
$
—

 
$
—

Total
$
0.3

 
$
—

 
$
0.3

 
$
0.3

 
$
—

 
$
—
Summary of offsetting derivative liabilities by counterparty
Derivative Liabilities and Collateral Held by Counterparty
 
 
 
 
 
 
 
Gross Amounts Not Offset in the Consolidated Balance Sheets
 
 
 
Gross Amounts of Recognized Liabilities
 
Gross Amounts Offset in the Consolidated Balance Sheets
 
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets
 
Financial Instruments
 
Cash Collateral Pledged
 
Net Amount
Counterparty
(with netting agreements)
$
(10.9
)
 
$
—

 
$
(10.9
)
 
$
(0.3
)
 
$
—

 
$
(10.6
)
Counterparty
(without netting agreements)
(0.5
)
 
—

 
(0.5
)
 
—

 
—

 
(0.5
)
Counterparty
(with partial netting agreements)
(7.9
)
 
—

 
(7.9
)
 
—

 
—

 
(7.9
)
Total
$
(19.3
)
 
$
—

 
$
(19.3
)
 
$
(0.3
)
 
$
—

 
$
(19.0
)
Derivative Liabilities and Collateral Held by Counterparty
 
 
 
 
 
 
 
Gross Amounts Not Offset in the Consolidated Balance Sheets
 
 
 
Gross Amounts of Recognized Liabilities
 
Gross Amounts Offset in the Consolidated Balance Sheets
 
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets
 
Financial Instruments
 
Cash Collateral Pledged
 
Net Amount
Counterparty
(with netting agreements)
$
(8.0
)
 
$
—

 
$
(8.0
)
 
$
(0.8
)
 
$
—

 
$
(7.2
)
Counterparty
(without netting agreements)1
(85.0
)
 
—

 
(85.0
)
 
—

 
—

 
(85.0
)
Counterparty
(with partial netting agreements)
(3.8
)
 
—

 
(3.8
)
 
—

 
—

 
(3.8
)
Total
$
(96.8
)
 
$
—

 
$
(96.8
)
 
$
(0.8
)
 
$
—

 
$
(96.0
)
_________________
1 
Such amounts include the fair value of the Bifurcated Conversion Feature and Option Assets at December 31, 2014 (see Note 9).