Condensed Consolidating Financial Information

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements [Abstract]

Condensed Consolidating Financial Information

Our 8.0% senior secured notes due 2014 and 7.5% senior unsecured notes due 2014 are guaranteed by each of our material existing and future domestic subsidiaries, except for Nordural US LLC. Each subsidiary guarantor is 100% owned by Century. All guarantees are full and unconditional; all guarantees are joint and several. These notes are not guaranteed by our foreign subsidiaries (such subsidiaries and Nordural US LLC, collectively the “Non-Guarantor Subsidiaries”). We allocate corporate expenses or income to our subsidiaries and charge interest on certain intercompany balances.

The following summarized condensed consolidating balance sheets as of June 30, 2011 and December 31, 2010, condensed consolidating statements of operations for the three and six months ended June 30, 2011 and June 30, 2010 and the condensed consolidating statements of cash flows for the six months ended June 30, 2011 and June 30, 2010 present separate results for Century, the Guarantor Subsidiaries, the Non-Guarantor Subsidiaries, consolidating adjustments and total consolidated amounts.

This summarized condensed consolidating financial information may not necessarily be indicative of the results of operations or financial position had Century, the Guarantor Subsidiaries or the Non-Guarantor subsidiaries operated as independent entities.

CONDENSED CONSOLIDATING BALANCE SHEET
As of June 30, 2011
	Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			The Company			Reclassifications and Eliminations			Consolidated
Assets:
Cash and cash equivalents	$	573		$	193,658		$	38,170		$	—		$	232,401
Accounts receivable — net		37,934			16,904			—			—			54,838
Due from affiliates		629,572			9,721			2,529,095			(3,131,124	)		37,264
Inventories		121,632			65,756			—			—			187,388
Prepaid and other current assets		5,790			48,936			3,925			(12,500	)		46,151
Total current assets		795,501			334,975			2,571,190			(3,143,624	)		558,042
Investment in subsidiaries		35,783			—			(910,471	)		874,688			—
Property, plant and equipment — net		351,745			885,708			1,418			(220	)		1,238,651
Due from affiliates — less current portion		—			3,094			—			—			3,094
Other assets		22,132			38,430			39,493			—			100,055
Total	$	1,205,161		$	1,262,207		$	1,701,630		$	(2,269,156	)	$	1,899,842

Liabilities and shareholders’ equity:
Accounts payable, trade	$	38,030		$	49,167		$	398		$	—		$	87,595
Due to affiliates		2,108,927			74,172			226,818			(2,370,369	)		39,548
Accrued and other current liabilities		10,361			40,943			10,421			(12,500	)		49,225
Accrued employee benefits costs — current portion		13,088			—			2,821			—			15,909
Industrial revenue bonds		7,815			—			—			—			7,815
Total current liabilities		2,178,221			164,282			240,458			(2,382,869	)		200,092
Senior notes payable		—			—			249,011			—			249,011
Accrued pension benefit costs — less current portion		16,238			—			22,280			—			38,518
Accrued postretirement benefit costs — less current portion		102,315			—			4,403			—			106,718
Other liabilities/intercompany loan		62,001			732,979			7,656			(760,974	)		41,662
Deferred taxes		—			86,019			—			—			86,019
Total noncurrent liabilities		180,554			818,998			283,350			(760,974	)		521,928
Shareholders’ equity:
Preferred stock		—			—			1			—			1
Common stock		60			12			932			(72	)		932
Additional paid-in capital		297,300			144,383			2,506,435			(441,683	)		2,506,435
Accumulated other comprehensive income (loss)		(85,349	)		(1,297	)		(78,234	)		86,646			(78,234	)
Retained earnings (accumulated deficit)		(1,365,625	)		135,829			(1,251,312	)		1,229,796			(1,251,312	)
Total shareholders’ equity		(1,153,614	)		278,927			1,177,822			874,687			1,177,822
Total	$	1,205,161		$	1,262,207		$	1,701,630		$	(2,269,156	)	$	1,899,842

CONDENSED CONSOLIDATING BALANCE SHEET
As of December 31, 2010
	Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			The Company			Reclassifications and Eliminations			Consolidated
Assets:
Cash and cash equivalents	$	—		$	214,923		$	89,373		$	—		$	304,296
Restricted cash		3,673			—			—			—			3,673
Accounts receivable — net		31,779			12,124			—			—			43,903
Due from affiliates		636,511			7,148			2,537,945			(3,130,598	)		51,006
Inventories		97,422			58,486			—			—			155,908
Prepaid and other current assets		3,687			39,453			2,152			(27,000	)		18,292
Total current assets		773,072			332,134			2,629,470			(3,157,598	)		577,078
Investment in subsidiaries		33,186			—			(934,307	)		901,121			—
Property, plant and equipment — net		364,760			890,924			1,451			(165	)		1,256,970
Due from affiliates — less current portion		—			6,054			—			—			6,054
Other assets		22,197			36,735			24,022			—			82,954
Total	$	1,193,215		$	1,265,847		$	1,720,636		$	(2,256,642	)	$	1,923,056

Liabilities and shareholders’ equity:
Accounts payable, trade	$	43,072		$	44,629		$	303		$	—		$	88,004
Due to affiliates		2,094,293			70,580			222,245			(2,341,737	)		45,381
Accrued and other current liabilities		9,187			44,932			14,376			(27,000	)		41,495
Accrued employee benefits costs — current portion		23,592			—			3,090			—			26,682
Convertible senior notes		—			—			45,483			—			45,483
Industrial revenue bonds		7,815			—			—			—			7,815
Total current liabilities		2,177,959			160,141			285,497			(2,368,737	)		254,860
Senior notes payable		—			—			248,530			—			248,530
Accrued pension benefit costs — less current portion		14,096			—			23,699			—			37,795
Accrued postretirement benefit costs — less current portion		99,469			—			4,275			—			103,744
Other liabilities/intercompany loan		61,488			756,208			4,119			(784,203	)		37,612
Deferred taxes — less current portion		—			90,822			—			(4,823	)		85,999
Total noncurrent liabilities		175,053			847,030			280,623			(789,026	)		513,680
Shareholders’ equity:
Preferred stock		—			—			1			—			1
Common stock		60			12			928			(72	)		928
Additional paid-in capital		297,300			144,383			2,503,907			(441,683	)		2,503,907
Accumulated other comprehensive income (loss)		(60,220	)		(1,220	)		(49,976	)		61,440			(49,976	)
Retained earnings (accumulated deficit)		(1,396,937	)		115,501			(1,300,344	)		1,281,436			(1,300,344	)
Total shareholders’ equity		(1,159,797	)		258,676			1,154,516			901,121			1,154,516
Total	$	1,193,215		$	1,265,847		$	1,720,636		$	(2,256,642	)	$	1,923,056

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
For the three months ended June 30, 2011
	Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			The Company		Reclassifications and Eliminations			Consolidated
Net sales:
Third-party customers	$	143,052		$	64,039		$	—	$	—		$	207,091
Related parties		83,751			75,435			—		—			159,186
		226,803			139,474			—		—			366,277
Cost of goods sold		212,685			104,078			—		—			316,763
Gross profit		14,118			35,396			—		—			49,514
Other operating income - net		(5,205	)		—			—		—			(5,205	)
Selling, general and admin expenses		16,614			1,943			—		—			18,557
Operating income		2,709			33,453			—		—			36,162
Interest expense – third party		(6,386	)		—			—		—			(6,386	)
Interest expense – affiliates		17,442			(17,442	)		—		—			—
Interest income – third party		13			52			—		—			65
Interest income – affiliates		—			70			—		—			70
Net loss on forward contracts		(1,617	)		—			—		—			(1,617	)
Other expense - net		(900	)		(232	)		—		—			(1,132	)
Income before taxes and equity in earnings of subsidiaries and joint ventures		11,261			15,901			—		—			27,162
Income tax benefit (expense)		1,769			(5,405	)		—		—			(3,636	)
Income before equity in earnings of subsidiaries and joint ventures		13,030			10,496			—		—			23,526
Equity earnings of subsidiaries and joint ventures		1,406			460			23,986		(25,392	)		460
Net income (loss)	$	14,436		$	10,956		$	23,986	$	(25,392	)	$	23,986

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
For the three months ended June 30, 2010
	Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			The Company		Reclassifications and Eliminations			Consolidated
Net sales:
Third-party customers	$	109,433		$	73,612		$	—	$	—		$	183,045
Related parties		65,438			39,370			—		—			104,808
		174,871			112,982			—		—			287,853
Cost of goods sold		183,249			83,088			—		—			266,337
Gross profit (loss)		(8,378	)		29,894			—		—			21,516
Other operating expenses		4,644			—			—		—			4,644
Selling, general and admin expenses		9,772			1,192			—		—			10,964
Operating income (loss)		(22,794	)		28,702			—		—			5,908
Interest expense – third party		(6,357	)		—			—		—			(6,357	)
Interest expense – affiliates		16,408			(16,408	)		—		—			—
Interest income		37			65			—		—			102
Interest income – affiliates		—			111			—		—			111
Net gain on forward contracts		9,294			—			—		—			9,294
Other income - net		14			216			—		—			230
Income (loss) before taxes and equity in earnings (loss) of subsidiaries and joint ventures		(3,398	)		12,686			—		—			9,288
Income tax expense		261			(4,880	)		—		—			(4,619	)
Income (loss) before equity in earnings (loss) of subsidiaries and joint ventures		(3,137	)		7,806			—					4,669
Equity earnings of subsidiaries and joint ventures		1,061			477			5,146		(6,207	)		477
Net income (loss)	$	(2,076	)	$	8,283		$	5,146	$	(6,207	)	$	5,146

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
For the six months ended June 30, 2011
	Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			The Company		Reclassifications and Eliminations			Consolidated
Net sales:
Third-party customers	$	273,539		$	121,864		$	—	$	—		$	395,403
Related parties		151,063			146,148			—		—			297,211
		424,602			268,012			—		—			692,614
Cost of goods sold		399,705			201,079			—		—			600,784
Gross profit		24,897			66,933			—		—			91,830
Other operating income - net		(11,089	)		—			—		—			(11,089	)
Selling, general and admin expenses		25,714			3,452			—		—			29,166
Operating income		10,272			63,481			—		—			73,753
Interest expense – third party		(13,163	)		—			—		—			(13,163	)
Interest expense – affiliates		34,672			(34,672	)		—		—			—
Interest income – third party		43			177			—		—			220
Interest income – affiliates		—			183			—		—			183
Net loss on forward contracts		(6,426	)		—			—		—			(6,426	)
Other expense - net		(284	)		(171	)		—		—			(455	)
Income before taxes and equity in earnings of subsidiaries and joint ventures		25,114			28,998			—		—			54,112
Income tax benefit (expense)		3,590			(10,349	)		—		—			(6,759	)
Income before equity in earnings of subsidiaries and joint ventures		28,704			18,649			—		—			47,353
Equity earnings of subsidiaries and joint ventures		2,608			1,679			49,032		(51,640	)		1,679
Net income (loss)	$	31,312		$	20,328		$	49,032	$	(51,640	)	$	49,032

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
For the six months ended June 30, 2010
	Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			The Company		Reclassifications and Eliminations			Consolidated
Net sales:
Third-party customers	$	227,511		$	148,466		$	—	$	—		$	375,977
Related parties		122,419			74,846			—		—			197,265
		349,930			223,312			—		—			573,242
Cost of goods sold		351,698			166,052			—		—			517,750
Gross profit (loss)		(1,768	)		57,260			—		—			55,492
Other operating expenses – net		9,109			—			—		—			9,109
Selling, general and admin expenses		21,060			2,155			—		—			23,215
Operating income (loss)		(31,937	)		55,105			—		—			23,168
Interest expense – third party		(12,755	)		—			—		—			(12,755	)
Interest expense – affiliates		32,362			(32,362	)		—		—			—
Interest income – third party		59			144			—		—			203
Interest income – affiliates		—			220			—		—			220
Net gain on forward contracts		7,322			—			—		—			7,322
Other income - net		291			347			—		—			638
Income (loss) before taxes and equity in earnings (loss) of subsidiaries and joint ventures		(4,658	)		23,454			—		—			18,796
Income tax benefit (expense)		236			(9,136	)		—		—			(8,900	)
Income (loss) before equity in earnings (loss) of subsidiaries and joint ventures		(4,422	)		14,318			—		—			9,896
Equity earnings of subsidiaries and joint ventures		2,040			1,582			11,478		(13,518	)		1,582
Net income (loss)	$	(2,382	)	$	15,900		$	11,478	$	(13,518	)	$	11,478

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the six months ended June 30, 2011
	Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			The Company			Consolidated
Net cash provided by (used in) operating activities	$	(20,260	)	$	4,125		$	—		$	(16,135	)
Investing activities:
Purchase of property, plant and equipment		(2,860	)		(4,164	)		(329	)		(7,353	)
Nordural expansion		—			(7,968	)		—			(7,968	)
Proceeds from sale of property, plant and equipment		—			56			—			56
Payments received on advances from joint ventures		—			—			3,056			3,056
Restricted and other cash deposits		3,673			—			—			3,673
Net cash provided by (used in) investing activities		813			(12,076	)		2,727			(8,536	)
Financing activities:
Repayments of long-term debt		—			—			(47,067	)		(47,067	)
Repayments of contingent obligation		(189	)		—			—			(189	)
Intercompany transactions		20,209			(13,314	)		(6,895	)		—
Issuance of common stock – net		—			—			32			32
Net cash provided by (used in) financing activities		20,020			(13,314	)		(53,930	)		(47,224	)
Net change in cash and cash equivalents		573			(21,265	)		(51,203	)		(71,895	)
Cash and cash equivalents, beginning of the period		—			214,923			89,373			304,296
Cash and cash equivalents, end of the period	$	573		$	193,658		$	38,170		$	232,401

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the six months ended June 30, 2010
	Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			The Company			Consolidated
Net cash provided by operating activities	$	54,042		$	18,090		$	—		$	72,132
Investing activities:
Purchase of property, plant and equipment		(1,262	)		(1,743	)		(7	)		(3,012	)
Nordural expansion		—			(10,113	)		—			(10,113	)
Investments in and advances to joint ventures		—			—			(17	)		(17	)
Restricted and other cash deposits		(983	)		—			—			(983	)
Net cash used in investing activities		(2,245	)		(11,856	)		(24	)		(14,125	)
Financing activities:
Intercompany transactions		(51,797	)		56,466			(4,669	)		—
Issuance of common stock – net		—			—			23			23
Net cash provided by (used in) financing activities		(51,797	)		56,466			(4,646	)		23
Net change in cash and cash equivalents		—			62,700			(4,670	)		58,030
Cash and cash equivalents, beginning of the period		—			109,798			88,436			198,234
Cash and cash equivalents, end of the period	$	—		$	172,498		$	83,766		$	256,264

- Definition

Text block that encapsulates the detailed table comprising the condensed financial statements (balance sheet, income statement and statement of cash flows), normally using the registrant (parent) as the sole domain member. If condensed consolidating financial statements are being presented, other domain members (in addition to parent) such as guarantor subsidiaries, non-guarantor subsidiaries, and the consolidation eliminations, will be included in order that the respective monetary amounts for each of the domains will aggregate to the respective amounts on the consolidated financial statements. The line items are the various captions used to compile the condensed financial statements. Using extensions, most, if not all, of the elements representing condensed financial statement captions will be the same as those used for the consolidated financial statements captions.

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