Derivatives, Hedging Programs and Other Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Derivative Positions

The following table summarizes our derivative positions at September 30, 2024:

Aluminum	Maturity Period	Notional Amount of Contracts (mmlbs)
Fixed price purchase contracts for LME	October 2024 through February 2026		61.2
Fixed price sale contracts for LME	October 2024		9.4
Fixed price purchase contracts for MWTP	October 2024 through February 2026		50.2
Fixed price sale contracts for MWTP	October 2024		9.3

Alloying Metals	Maturity Period	Notional Amount of Contracts (mmlbs)
Fixed price purchase contracts	October 2024 through December 2026		9.7

Natural Gas	Maturity Period	Notional Amount of Contracts (mmbtu)
Fixed price purchase contracts	October 2024 through December 2026		3,080,000

Electricity	Maturity Period	Notional Amount of Contracts (Mwh)
Fixed price purchase contracts	October 2024 through December 2024		55,225
Fixed price sale contracts	October 2024 through December 2024		28,717

Euro	Maturity Period	Notional Amount of Contracts (EUR)
Fixed price forward purchase contracts	October 2024 through July 2027		10,482,824

British Pounds	Maturity Period	Notional Amount of Contracts (GBP)
Fixed price forward purchase contracts	October 2024		72,266

Loss (Gain)

Summary of (Gain) Loss Associated with Derivative Contracts

The following table summarizes the amount of loss (gain) on derivative contracts recorded within our Statements of Consolidated Income in COGS (in millions of dollars):

	Quarter Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Total of income and expense line items presented in our Statements of Consolidated Income in which the effects of hedges are recorded:
Cash flow hedges	$	671.8		$	665.2		$	2,005.2		$	2,114.7
Loss (gain) recognized in our Statements of Consolidated Income related to cash flow hedges:
Aluminum	$	1.6		$	4.4		$	0.9		$	10.1
Alloying Metals		(0.3	)		—			(0.8	)		—
Natural gas		0.3			0.1			1.0			0.1
Electricity		—			—			0.6			—
Foreign exchange contracts		(0.1	)		—			(0.1	)		—
Total loss recognized in our Statements of Consolidated Income related to cash flow hedges	$	1.5		$	4.5		$	1.6		$	10.2
Loss (gain) recognized in our Statements of Consolidated Income related to non-designated derivatives:
Alloying Metals – Realized loss	$	—		$	0.1		$	—		$	0.1
Alloying Metals – Unrealized mark-to-market gain		—			(0.3	)		—			(0.2	)
Electricity – Realized loss		2.0			—			2.0			—
Electricity – Unrealized mark-to-market loss		—			—			2.0			—
Electricity (reclassification from AOCI due to forecasted transactions probable of not occurring)		—			—			0.2			—
Total loss (gain) recognized in our Statements of Consolidated Income related to non-designated derivatives	$	2.0		$	(0.2	)	$	4.2		$	(0.1	)

Schedule of Fair Value of Derivative Assets and Liabilities

The following table presents the fair value of our derivative assets and liabilities (in millions of dollars):

	As of September 30, 2024								As of December 31, 2023
	Assets		Liabilities			Net Amount			Assets		Liabilities			Net Amount
Cash Flow Hedges:
Aluminum –
Fixed price purchase contracts for LME	$	4.3	$	(0.2	)	$	4.1		$	3.4	$	(0.6	)	$	2.8
Fixed price sale contracts for LME		—		—			—			—		(0.2	)		(0.2	)
Fixed price purchase contracts for MWTP		0.3		(0.1	)		0.2			0.4		(0.3	)		0.1
Fixed price sale contracts for MWTP		—		—			—			0.1		(0.2	)		(0.1	)
Alloying Metals – Fixed price purchase contracts		3.0		—			3.0			0.7		(0.1	)		0.6
Natural gas – Fixed price purchase contracts		0.3		(0.7	)		(0.4	)		0.3		(0.9	)		(0.6	)
Electricity – Fixed price purchase contracts		—		—			—			0.5		(0.6	)		(0.1	)
Foreign currency – Fixed price forward contracts		0.2		—			0.2			0.5		—			0.5
Total cash flow hedges		8.1		(1.0	)		7.1			5.9		(2.9	)		3.0
Non-Designated Derivatives:
Electricity – Fixed price purchase contracts		—		(1.9	)		(1.9	)		—		—			—
Electricity – Fixed price sale contracts		—		(0.3	)		(0.3	)		—		—			—
Total non-designated derivatives		—		(2.2	)		(2.2	)		—		—			—
Total	$	8.1	$	(3.2	)	$	4.9		$	5.9	$	(2.9	)	$	3.0

The following table presents the total amounts of derivative assets and liabilities on our Consolidated Balance Sheets (in millions of dollars):

	As of September 30, 2024			As of December 31, 2023
Derivative assets:
Prepaid expenses and other current assets	$	6.9		$	4.8
Other assets		1.2			1.1
Total derivative assets	$	8.1		$	5.9
Derivative liabilities:
Other accrued liabilities	$	(2.9	)	$	(2.4	)
Long-term liabilities		(0.3	)		(0.5	)
Total derivative liabilities	$	(3.2	)	$	(2.9	)