XML 80 R38.htm IDEA: XBRL DOCUMENT v2.4.0.8
Derivative Instruments and Hedging Activities (Tables)
 6 Months Ended
Jun. 30, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Outstanding commodity price swaps and options and forward foreign exchange contracts
The Company had the following outstanding commodity price swaps and options and forward foreign exchange contracts:
Commodity
 
June 30,
2014
 
December 31, 2013
Nickel (in lbs)
 
515,500

 
763,300

Natural gas (in MMBTUs)
 
3,240,000

 
3,240,000

Zinc (in lbs)
 
6,000,000

 
12,000,000

Electricity (in MWHs)
 
342,200

 
—

Iron ore (in metric tons)
 
1,471,900

 
190,735

Hot roll carbon steel coils (in short tons)
 
156,400

 
74,147

Foreign exchange contracts (in euros)
 
€
18,970,000

 
€
17,730,000
Fair value of derivative instruments in the Condensed Consolidated Balance Sheets
The following table presents the fair value of derivative instruments in the Condensed Consolidated Balance Sheets:
Asset (liability)
 
June 30,
2014
 
December 31, 2013
Derivatives designated as hedging instruments:
 
 
 
 
Other current assets—commodity contracts
 
$
2.3

 
$
2.6

Accrued liabilities—commodity contracts
 
(6.7
)
 
—

 
 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
 
Other current assets:
 
 
 
 
Foreign exchange contracts
 
0.1

 
—

       Commodity contracts
 
0.8

 
2.3

Other noncurrent assets—commodity contracts
 
0.1

 
—

Accrued liabilities:
 
 
 
 
Foreign exchange contracts
 
—

 
(0.7
)
Commodity contracts
 
(18.4
)
 
(0.4
)
Other noncurrent liabilities—commodity contracts
 
(0.5
)
 
(0.1
)
Gains (losses) on derivative instruments included in the Condensed Consolidated Statements of Operations
The following table presents gains (losses) on derivative instruments included in the Condensed Consolidated Statements of Operations:
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
Gain (loss)
 
2014
 
2013
 
2014
 
2013
Derivatives in cash flow hedging relationships—
 
 
 
 
 
 
 
 
Commodity contracts:
 
 
 
 
 
 
 
 
Reclassified from accumulated other comprehensive income into net sales (effective portion)
 
$
—

 
$
—

 
$
—

 
$
0.4

Reclassified from accumulated other comprehensive income into cost of products sold (effective portion)
 
1.3

 
10.7

 
4.0

 
14.2

Recognized in cost of products sold (ineffective portion and amount excluded from effectiveness testing)
 
(0.7
)
 
0.6

 
(0.7
)
 
6.4

 
 
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
Foreign exchange contracts—recognized in other income (expense)
 
0.2

 
(0.1
)
 
0.9

 
0.5

Commodity contracts:
 
 
 
 
 
 
 
 
Recognized in net sales
 
(0.6
)
 
(0.3
)
 
(4.2
)
 
0.2

Recognized in cost of products sold
 
(19.4
)
 
(0.2
)
 
(19.2
)
 
(0.2
)
Amount of gains (losses) expected to be reclassified into earnings within the next twelve months

The following table lists the amount of gains (losses) before tax expected to be reclassified into cost of products sold within the next twelve months for the Company’s existing commodity contracts that qualify for hedge accounting, as well as the period of time over which the Company is hedging its exposure to the volatility in future cash flows:
Commodity Hedge
Settlement Dates
 
Gains (losses)
Natural gas
July 2014 to December 2014
 
$
0.3

Zinc
July 2014 to December 2014
 
0.7

Electricity
July 2014 to September 2014
 
1.3

Iron ore
July 2014 to November 2014
 
(10.3
)