Derivatives, Hedging Programs and Other Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Derivative Positions

The following table summarizes our derivative positions at March 31, 2025:

Aluminum	Maturity Period	Notional Amount of Contracts (mmlbs)
Fixed price purchase contracts for LME	April 2025 through August 2026		61.0
Fixed price sale contracts for LME	April 2025 through December 2025		11.0
Fixed price purchase contracts for MWTP	April 2025 through August 2026		56.5
Fixed price sale contracts for MWTP	April 2025		10.9

Alloying Metals	Maturity Period	Notional Amount of Contracts (mmlbs)
Fixed price purchase contracts	April 2025 through December 2026		7.4

Natural Gas	Maturity Period	Notional Amount of Contracts (mmbtu)
Fixed price purchase contracts	April 2025 through December 2027		2,700,000

Euro	Maturity Period	Notional Amount of Contracts (EUR)
Fixed price forward purchase contracts	April 2025 through July 2027		5,812,634

British Pounds	Maturity Period	Notional Amount of Contracts (GBP)
Fixed price forward purchase contracts	April 2025 through May 2025		20,000

Summary of (Gain) Loss Associated with Derivative Contracts

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

	Quarter Ended March 31,
	2025			2024 As Adjusted1
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	$	673.4		$	651.3
(Gain) loss recognized in our Statements of Consolidated Income related to cash flow hedges:
Aluminum	$	(5.2	)	$	2.0
Alloying Metals		(0.4	)		—
Natural gas		—			0.3
Electricity		—			(0.2	)
Foreign exchange contracts		0.1			—
Total (gain) loss recognized in our Statements of Consolidated Income related to cash flow hedges	$	(5.5	)	$	2.1

1.Adjusted to reflect the retrospective change in inventory valuation methodology from LIFO to WAC. See Note 14 for further discussion.

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 March 31, 2025								As of December 31, 2024
	Assets		Liabilities			Net Amount			Assets		Liabilities			Net Amount
Cash Flow Hedges:
Aluminum –
Fixed price purchase contracts for LME	$	0.4	$	(2.2	)	$	(1.8	)	$	1.1	$	(0.8	)	$	0.3
Fixed price sale contracts for LME		0.1		—			0.1			—		—			—
Fixed price purchase contracts for MWTP		3.3		(0.1	)		3.2			1.1		—			1.1
Fixed price sale contracts for MWTP		—		(0.2	)		(0.2	)		—		—			—
Alloying Metals – Fixed price purchase contracts		2.5		—			2.5			1.3		(0.1	)		1.2
Natural gas – Fixed price purchase contracts		1.7		(0.3	)		1.4			0.5		(0.8	)		(0.3	)
Foreign currency – Fixed price forward contracts		—		(0.1	)		(0.1	)		—		(0.4	)		(0.4	)
Total	$	8.0	$	(2.9	)	$	5.1		$	4.0	$	(2.1	)	$	1.9

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

	As of March 31, 2025			As of December 31, 2024
Derivative assets:
Prepaid expenses and other current assets	$	7.2		$	3.7
Other assets		0.8			0.3
Total derivative assets	$	8.0		$	4.0
Derivative liabilities:
Other accrued liabilities	$	(2.8	)	$	(1.8	)
Long-term liabilities		(0.1	)		(0.3	)
Total derivative liabilities	$	(2.9	)	$	(2.1	)