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Derivative and hedging instruments (Tables)
 3 Months Ended
Mar. 31, 2012
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Fair value of derivative assets and liabilities by balance sheet location
The following table provides the fair value and balance sheet classification of our derivatives:

Fair Value of Derivative Assets and Liabilities
 
Balance sheet location
March 31, 2012
December 31, 2011
DERIVATIVE ASSETS:
 
 
 
Primary aluminum put option contracts
Due from affiliates
$
1,801

$
5,439

Primary aluminum put option contracts
Prepaid and other current assets
1,180

3,892

Power contract
Prepaid and other current assets
53

106

TOTAL
 
$
3,034

$
9,437

DERIVATIVE LIABILITIES:
 
 
 
E.ON contingent obligation
Other liabilities
$
14,310

$
13,958

Aluminum sales premium contracts – current portion
Accrued and other current liabilities
819

607

Natural gas forward financial contracts
Accrued and other current liabilities
236

281

Aluminum sales premium contracts – less current portion
Other liabilities
350

301

TOTAL
 
$
15,715

$
15,147
Derivatives not designated as hedging instruments
Derivatives not designated as hedging instruments:
 
Gain (loss) recognized in income from derivatives
 
 
Three months ended March 31,
 
 
2012
2011
Primary aluminum put option contracts
Net loss on forward contracts
$
(4,695
)
$
(4,606
)
E.ON contingent obligation
Interest expense – third party
353

364

Aluminum sales premium contracts
Related party sales
204

94

Power contract
Net loss on forward contracts
1

(5
)
Aluminum sales premium contracts
Net loss on forward contracts
(465
)
(198
)
Outstanding forward contracts not designated as hedging instruments
We had the following outstanding forward contracts that were entered into that were not designated as hedging instruments:

 
March 31, 2012
December 31, 2011
Power contracts (in megawatt hours (“MWH”)) (1)
1,886

3,772

Primary aluminum sales contract premium (metric tons) (2)
35,700

40,870

Primary aluminum put option contracts (metric tons)
7,500

15,000

Primary aluminum put option contracts (metric tons) – related party
9,000

18,000

(1)
Represents our expected usage during the remaining term of the Ravenswood power contract. In June 2011, the West Virginia PSC extended the term of this contract for an additional year.
(2)
Represents the remaining physical deliveries under our 2013 Glencore Metal Agreement.