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Derivative Financial Instruments and Related Hedging Programs (Tables)
 9 Months Ended
Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of realized and unrealized gains and losses
Realized and unrealized gain (loss) 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,
 
2016
 
2015
 
2016
 
2015
Included in Other Comprehensive Income (Loss):
 
 
 
 
 
 
 
Unrealized gain (loss):
 
 
 
 
 
 
 
Foreign currency cash flow hedge
$
0.1

 
$
—

 
$
0.2

 
$
(0.2
)
Included in Statements of Consolidated Income (Loss):
 
 
 
 
 
 
 
Realized loss:
 

 
 
 
 
 
 
Aluminum
(0.4
)
 
(9.0
)
 
(4.1
)
 
(18.8
)
Natural gas
(0.9
)
 
(1.2
)
 
(4.2
)
 
(3.8
)
Electricity
—

 
(0.3
)
 
—

 
(1.4
)
Total realized loss1
$
(1.3
)
 
$
(10.5
)
 
$
(8.3
)
 
$
(24.0
)
Unrealized gain (loss):
 
 
 
 
 
 
 
Aluminum
$
1.7

 
$
(0.3
)
 
$
11.7

 
$
(8.8
)
Natural gas
0.3

 
(1.0
)
 
5.2

 
(0.2
)
Electricity
—

 
(0.4
)
 
—

 
1.3

Subtotal2
2.0

 
(1.7
)
 
16.9

 
(7.7
)
Hedges related to the Convertible Notes:
 
 
 
 
 
 
 
Option assets
—

 
—

 
—

 
10.2

Bifurcated conversion feature
—

 
—

 
—

 
(10.2
)
Subtotal3
$
—


$
—

 
$
—

 
$
—

Total unrealized gain (loss)
$
2.0

 
$
(1.7
)
 
$
16.9

 
$
(7.7
)

______________________
1 
Recorded within Cost of products sold, excluding depreciation, amortization and other items.
2 
Recorded within Unrealized (gain) loss on derivative instruments.
3 
Recorded within Other expense, net and relates to our 4.5% unsecured cash convertible senior notes ("Convertible Notes"), which settled in April 2015.
Summary of material derivative positions
The following table summarizes our material derivative positions at September 30, 2016:
Aluminum
Maturity Period (month/year)
 
Notional Amount of contracts (mmlbs)
Fixed price purchase contracts
10/16 through 6/18
 
158.8

Fixed price sales contracts
10/16 through 12/16
 
0.4

Midwest premium swap contracts1
10/16 through 6/18
 
147.2

Natural Gas2
Maturity Period (month/year)
 
Notional Amount of contracts (mmbtu)
Fixed price purchase contracts
10/16 through 12/19
 
5,650,000

Euro
Maturity Period (month/year)
 
Notional Amount of contracts (euro)
Fixed price purchase contracts
12/16 through 8/17
 
1,593,700

______________________
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, 2016, we had derivative and/or physical delivery commitments with energy companies in place to cover exposure to fluctuations in prices for approximately 80%, 74%, 73% and 33% of the expected natural gas purchases for the remainder of 2016, 2017, 2018 and 2019 respectively.
Summary of offsetting derivative assets by counterparty
The following tables present offsetting information regarding our derivatives by type of counterparty as of December 31, 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)
$
1.3

 
$
—

 
$
1.3

 
$
1.3

 
$
—

 
$
—

Counterparty
(with partial netting agreements)
0.3

 
—

 
0.3

 
0.3

 
—

 
—

Total
$
1.6

 
$
—

 
$
1.6

 
$
1.6

 
$
—

 
$
—

The following tables present offsetting information regarding our derivatives by type of counterparty as of September 30, 2016 (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)
$
2.9

 
$
—

 
$
2.9

 
$
1.0

 
$
—

 
$
1.9

Counterparty
(with partial netting agreements)
2.7

 
—

 
2.7

 
0.6

 
$
—

 
$
2.1

Total
$
5.6

 
$
—

 
$
5.6

 
$
1.6

 
$
—

 
$
4.0
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)
$
(1.9
)
 
$
—

 
$
(1.9
)
 
$
(1.0
)
 
$
—

 
$
(0.9
)
Counterparty
(with partial netting agreements)
(1.3
)
 
—

 
(1.3
)
 
(0.6
)
 
—

 
(0.7
)
Total
$
(3.2
)
 
$
—

 
$
(3.2
)
 
$
(1.6
)
 
$
—

 
$
(1.6
)
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)
$
(8.5
)
 
$
—

 
$
(8.5
)
 
$
(1.3
)
 
$
—

 
$
(7.2
)
Counterparty
(with partial netting agreements)
(7.7
)
 
—

 
(7.7
)
 
(0.3
)
 
—

 
(7.4
)
Total
$
(16.2
)
 
$
—

 
$
(16.2
)
 
$
(1.6
)
 
$
—

 
$
(14.6
)