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Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2015
Fair Value Disclosures [Abstract]  
Summary of assets and liabilities measured and recognized at fair value on a recurring basis
The following table presents our financial instruments, classified under the appropriate level of the fair value hierarchy, as of the period presented (in millions of dollars):
 
December 31, 2015
 
Level 1
 
Level 2
 
Level 3
 
Total
FINANCIAL ASSETS:
 
 
 
 
 
 
 
Derivative Instruments (Non-Designated Hedges):
 
 
 
 
 
 
 
Aluminum –
 
 
 
 
 
 
 
Call option purchase contracts
$
—

 
$
0.2

 
$
—

 
$
0.2

Fixed price purchase contracts
—

 
0.3

 
—

 
0.3

Fixed price sales contracts
—

 
0.2

 
—

 
0.2

Midwest premium swap contracts
—

 
—

 
0.9

 
0.9

 
 
 
 
 
 
 
 
Salaried VEBA and Canadian Pension Plan:
 
 
 
 
 
 
 
Fixed income investment funds in registered investment companies1
—

 
15.7

 
—

 
15.7

Equity investment funds in registered investment companies2
—

 
23.8

 
—

 
23.8

Cash and money market investments3
1.9

 
—

 
—

 
1.9

Diversified investment funds in registered investment companies4
14.7

 
5.7

 
—

 
20.4

 
 
 
 
 
 
 
 
All Other Financial Assets:
 
 
 
 
 
 
 
Cash and cash equivalents5
40.3

 
32.2

 
—

 
72.5

Short-term investments
—

 
30.0

 
—

 
30.0

Deferred compensation plan assets
—

 
7.3

 
—

 
7.3

Total assets
$
56.9

 
$
115.4

 
$
0.9

 
$
173.2

 
 
 
 
 
 
 
 
 
December 31, 2015
 
Level 1
 
Level 2
 
Level 3
 
Total
FINANCIAL LIABILITIES:
 
 
 
 
 
 
 
Derivative Instruments (Non-Designated Hedges):
 
 
 
 
 
 
 
Aluminum –
 
 
 
 
 
 
 
Fixed price purchase contracts
$
—

 
$
(8.9
)
 
$
—

 
$
(8.9
)
Fixed price sales contracts
—

 
(0.1
)
 
—

 
(0.1
)
Midwest premium swap contracts
—

 
—

 
(0.3
)
 
(0.3
)
Natural Gas – Fixed price purchase contracts
—

 
(6.7
)
 
—

 
(6.7
)
 
 
 
 
 
 
 
 
Derivative Instruments (Designated Hedges):
 
 
 
 
 
 
 
Foreign Currency – Euro forward purchase contracts
—

 
(0.2
)
 
—

 
(0.2
)
 
 
 
 
 
 
 
 
All Other Financial Liabilities:
 
 
 
 
 
 
 
Senior Notes
(207.3
)
 
—

 
—

 
(207.3
)
Total liabilities
$
(207.3
)
 
$
(15.9
)
 
$
(0.3
)
 
$
(223.5
)
The following table presents our financial instruments, classified under the appropriate level of the fair value hierarchy, as of the period presented (in millions of dollars):
 
December 31, 2014
 
Level 1
 
Level 2
 
Level 3
 
Total
FINANCIAL ASSETS:
 
 
 
 
 
 
 
Derivative Instruments (Non-Designated Hedges):
 
 
 
 
 
 
 
Aluminum – Midwest premium swap contracts
$
—

 
$
—

 
$
1.0

 
$
1.0

Hedges Relating to the Convertible Notes – Option Assets
—

 
84.7

 
—

 
84.7

 
 
 
 
 
 
 
 
VEBAs and Canadian Pension Plan
 
 
 
 
 
 
 
Fixed income investment funds in registered investment companies1
54.0

 
340.3

 
—

 
394.3

Mortgage-backed securities
—

 
30.1

 
—

 
30.1

Corporate debt securities6
—

 
75.4

 
—

 
75.4

Equity investment funds in registered investment companies2
—

 
191.3

 
—

 
191.3

United States Treasury securities
—

 
39.5

 
—

 
39.5

Municipal debt securities
—

 
1.8

 
—

 
1.8

Cash and money market investments3
19.3

 
—

 
—

 
19.3

Asset-backed securities
—

 
8.1

 
—

 
8.1

Diversified investment funds in registered investment companies4
20.4

 
6.2

 
—

 
26.6

 
 
 
 
 
 
 
 
All Other Financial Assets
 
 
 
 
 
 
 
Cash and cash equivalents5
29.5

 
148.2

 
—

 
177.7

Short-term investments
—

 
114.0

 
—

 
114.0

Deferred compensation plan assets
—

 
7.3

 
—

 
7.3

Total assets
$
123.2

 
$
1,046.9

 
$
1.0

 
$
1,171.1

 
 
 
 
 
 
 
 
 
December 31, 2014
 
Level 1
 
Level 2
 
Level 3
 
Total
FINANCIAL LIABILITIES:
 
 
 
 
 
 
 
Derivative Instruments (Non-Designated Hedges):
 
 
 
 
 
 
 
Aluminum – Fixed price purchase contracts
$
—

 
$
(4.2
)
 
$
—

 
$
(4.2
)
Natural Gas – Fixed price purchase contracts
—

 
(6.2
)
 
—

 
(6.2
)
Electricity – Fixed price purchase contracts
—

 
(1.7
)
 
—

 
(1.7
)
Hedges Relating to the Convertible Notes – Bifurcated Conversion Feature
—

 
(84.7
)
 
—

 
(84.7
)
 
 
 
 
 
 
 
 
All Other Financial Liabilities
 
 
 
 
 
 
 
Senior Notes
(244.5
)
 
—

 
—

 
(244.5
)
Convertible Notes, including Bifurcated Conversion Feature
(263.3
)
 
—

 
—

 
(263.3
)
Total liabilities
$
(507.8
)
 
$
(96.8
)
 
$
—

 
$
(604.6
)
_________________________
1. 
This category represents investments in various fixed income funds with multiple registered investment companies. Such funds invest in diversified portfolios, including: (i) marketable fixed income securities, such as (a) U.S. Treasury and other government and agency securities, (b) municipal bonds, (c) mortgage-backed securities, (d) asset-backed securities, (e) corporate bonds, notes and debentures in various sectors, (f) preferred and common stock, (g) investments in affiliated and other investment companies, (h) short-term investments and other net assets, and (i) repurchase agreements and reverse repurchase agreements; (ii) other commingled investments; (iii) investment grade debt; (iv) fixed income instruments which may be represented by options, future contracts or swap agreements; and (v) cash and cash equivalents. The fair value of certain assets related to the Union VEBA in this category as of December 31, 2014 was estimated using the NAV per share of the investments.
2. 
This category represents investments in equity funds that invest in portfolios comprised of: (i) equity and equity-related securities of U.S. and non-U.S. issuers across all market capitalizations; (ii) common stock in investment trust funds; and (iii) other short-term investments. The fair value of assets related to the Union VEBA presented in this category as of December 31, 2014 was estimated using the NAV per share of the equity fund investments.
3. 
This category represents cash and investments in various money market funds.
4. 
The plan assets are invested in investment funds that hold a diversified portfolio of: (i) U.S and international debt and equity securities; (ii) fixed income securities such as corporate bonds and government bonds; (iii) mortgage-related securities; and (iv) cash and cash equivalents. The fair value of certain assets related to the Union VEBA in this category as of December 31, 2014 was estimated using the NAV per share of the investments.
5. 
See Note 2 for components of cash and cash equivalents.
6. 
This category represents investments in fixed income corporate securities in various sectors. Investments in the industrial, financial and utilities sectors in 2014 represented approximately 51%, 37% and 12% of the total portfolio in this category, respectively. The fair value of certain assets related to the Union VEBA in this category as of December 31, 2014 was estimated using the NAV per share of the investments.
Schedule of quantitative information for Level 3 Midwest premiums derivative contracts
The following table presents quantitative information for Level 3 Midwest premium derivative contracts:
 
 
Fair Value at December 31, 2015 (in millions of dollars)
 
Valuation Technique
 
Unobservable Input
 
Settlement Period
 
Price Curve Range ($ in unit price)
Assets:
 
 
 
 
 
 
 
 
 
 
Midwest premium contracts
 
$
0.9

 
Discounted fair value
 
Forward price curve
 
Jan-16 through Dec-17
 
$0.084 per metric ton to $0.086 per metric ton
Liabilities:
 
 
 
 
 
 
 
 
 
 
Midwest premium contracts
 
$
(0.3
)
 
Discounted fair value
 
Forward price curve
 
Jan-16 through Dec-17
 
$0.084 per metric ton to $0.086 per metric ton
Reconciliation of activity for financial instruments classified as Level 3
The following table presents a reconciliation of activity for the Level 3 Midwest premium derivative contracts on a net basis (in millions of dollars):
 
Year Ended December 31,
 
2015
 
2014
Fair value measurement at beginning of period
$
1.0

 
$
1.1

Total realized/unrealized (loss) gain included in:
 
 
 
Cost of goods sold, excluding depreciation and amortization and other items and Unrealized loss (gain) on derivative instruments
(3.9
)
 
4.4

Transactions involving Level 3 derivative contracts:
 
 
 
Purchases
(4.0
)
 
2.8

Sales
—

 
—

Issuances
—

 
—

Settlements
7.5

 
(7.3
)
Transactions involving Level 3 derivatives - net
3.5

 
(4.5
)
Transfers in and (or) out of Level 3 valuation hierarchy
—

 
—

Fair value measurement at end of period
$
0.6

 
$
1.0

 
 
 
 
Total loss included in Unrealized loss (gain) on derivative instruments, attributable to the change in unrealized gain/loss relating to derivative contracts held at December 31:
$
0.6

 
$
1.0
Summary of activities relating to the Company's CARO liabilities
The following table summarizes the activity relating to our CARO liabilities (in millions of dollars):
 
 
Year Ended December 31,
 
 
2015
 
2014
 
2013
Beginning balance
 
$
4.8

 
$
4.4

 
$
4.1

Liabilities settled during the period
 
(0.2
)
 
—

 
(0.2
)
Accretion expense
 
0.3

 
0.4

 
0.4

Adjustment to accretion expense due to revisions to estimated cash flow and timing of expenditure1
 
—

 
—

 
0.1

Ending balance
 
$
4.9

 
$
4.8

 
$
4.4

__________________________________________ 
1. 
The adjustments in 2013 did not have a material impact on the basic and diluted net income per share for 2013.