XML 48 R36.htm IDEA: XBRL DOCUMENT v3.4.0.3
Derivative Instruments and Hedging Activities (Tables)
 3 Months Ended
Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Outstanding commodity price swaps and options and forward foreign exchange contracts

Outstanding commodity price swaps and options and forward foreign exchange contracts are presented below:
Commodity 
 
March 31,
2016
 
December 31,
2015
Nickel (in lbs)
 
99,400

 
164,800

Natural gas (in MMBTUs)
 
31,907,500

 
36,972,500

Zinc (in lbs)
 
41,634,300

 
54,173,800

Iron ore (in metric tons)
 
2,260,000

 
2,795,000

Electricity (in MWHs)
 
1,098,000

 
1,386,400

Foreign exchange contracts (in euros)
 
€
32,125,000

 
€
55,500,000
Fair value of derivative instruments in the condensed consolidated balance sheets
The fair value of derivative instruments in the condensed consolidated balance sheets is presented below:
Asset (liability)
 
March 31,
2016
 
December 31,
2015
Derivatives designated as hedging instruments:
 
 
 
 
Other current assets—commodity contracts
 
$
1.6

 
$
0.3

Other noncurrent assets—commodity contracts
 
0.4

 
0.3

Accrued liabilities—commodity contracts
 
(34.3
)
 
(40.9
)
Other non-current liabilities—commodity contracts
 
(6.4
)
 
(9.5
)
 
 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
 
Other current assets:
 
 
 
 
Foreign exchange contracts
 
—

 
1.1

Commodity contracts
 
—

 
0.2

Accrued liabilities:
 
 
 
 
Foreign exchange contracts
 
(0.7
)
 
—

Commodity contracts
 
(0.2
)
 
(0.3
)
Gains (losses) on derivative instruments included in the condensed consolidated statements of operations
Gains (losses) on derivative instruments included in the condensed consolidated statements of operations are presented below:
 
 
Three Months Ended March 31,
Gain (loss)
 
2016
 
2015
Derivatives designated as cash flow hedges—
 
 
 
 
Commodity contracts:
 
 
 
 
Reclassified from accumulated other comprehensive income into cost of products sold (effective portion)
 
$
(13.2
)
 
$
(17.9
)
Recognized in cost of products sold (ineffective portion and amount excluded from effectiveness testing)
 
4.4

 
(13.0
)
 
 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
 
Foreign exchange contracts—recognized in other income (expense)
 
(1.8
)
 
1.4

Commodity contracts:
 
 
 
 
Recognized in net sales
 
—

 
1.3

Recognized in cost of products sold
 
(0.5
)
 
(2.4
)
Amount of gains (losses) expected to be reclassified into earnings within the next twelve months
Gains (losses) before tax expected to be reclassified into cost of products sold within the next twelve months for our existing commodity contracts that qualify for hedge accounting, as well as the period over which we are hedging our exposure to the volatility in future cash flows, are presented below:
Commodity Hedge
Settlement Dates
 
Gains (losses)
Natural gas
April 2016 to December 2017
 
$
(21.1
)
Zinc
April 2016 to December 2017
 
(5.9
)
Iron ore
April 2016 to November 2017
 
(5.5
)
Electricity
April 2016 to December 2017
 
(3.8
)