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Fair value measurements (Tables)
 6 Months Ended
Jun. 30, 2012
Fair Value Disclosures [Abstract]  
Schedule of valuation methodology used to measure assets and liabilities at fair value
The following section describes the valuation methodology used to measure our financial assets and liabilities that were accounted for at fair value.
Overview of Century’s valuation methodology
 
Level
Significant inputs
Cash equivalents
1
Quoted market prices
Trust assets (1)
1
Quoted market prices
Surety bonds
1
Quoted market prices
Primary aluminum put option contracts
2
Quoted London Metal Exchange (“LME”) forward market prices, historical volatility measurements and risk-adjusted discount rates
Natural gas forward financial contracts
2
Quoted natural gas forward market prices for primary aluminum and risk-adjusted discount rates
Ravenswood power contract
3
Quoted LME forward market prices, power tariff prices, management’s estimate of future power usage and risk-adjusted discount rates
E.ON U.S. (“E.ON”) contingent obligation
3
Quoted LME forward market prices for primary aluminum, management’s estimates of the LME forward market prices for primary aluminum for periods beyond the quoted periods and management’s estimate of future level of operations at Century Aluminum of Kentucky, our wholly owned subsidiary (“CAKY”)
Primary aluminum sales premium contracts
3
Management’s estimates of future U.S. Midwest premium and risk-adjusted discount rates
(1)
Trust assets are currently invested in money market funds. The trust has sole authority to invest the funds in secure interest producing investments consisting of short-term securities issued or guaranteed by the United States government or cash and cash equivalents.
Financial assets and liabilities at fair value on a recurring basis
Recurring Fair Value Measurements
As of June 30, 2012
 
Level 1
Level 2
Level 3
Total
ASSETS:
 
 
 
 
Cash equivalents
$
145,492

$
—

$
—

$
145,492

Trust assets
15,160

—

—

15,160

Surety bond – workers comp insurance
2,391

—

—

2,391

TOTAL
$
163,043

$
—

$
—

$
163,043

LIABILITIES:
 
 
 
 
Natural gas forward financial contracts
$
—

$
65

$
—

$
65

E.ON contingent obligation – net
—

—

14,663

14,663

Primary aluminum sales contract
—

—

1,361

1,361

TOTAL
$
—

$
65

$
16,024

$
16,089


Recurring Fair Value Measurements
As of December 31, 2011
 
Level 1
Level 2
Level 3
Total
ASSETS:
 
 
 
 
Cash equivalents
$
176,284

$
—

$
—

$
176,284

Trust assets
15,889

—

—

15,889

Surety bonds – workers comp insurance
2,391

—

—

2,391

Primary aluminum put option contracts
—

9,331

—

9,331

Power contract
—

—

106

106

TOTAL
$
194,564

$
9,331

$
106

$
204,001

LIABILITIES:
 
 
 
 
Natural gas forward financial contracts
$
—

$
281

$
—

$
281

E.ON contingent obligation – net
—

—

13,958

13,958

Primary aluminum sales contract – premium collar
—

—

908

908

TOTAL
$
—

$
281

$
14,866

$
15,147
Change in level 3 fair value measurements
Change in Level 3 Fair Value Measurements during the three months ended June 30,
 
Derivative liabilities - net
 
2012
2011
Beginning balance, April 1,
$
(15,426
)
$
(14,311
)
Total gain (realized/unrealized) included in earnings
(545
)
(758
)
Settlements
(53
)
533

Ending balance, June 30,
$
(16,024
)
$
(14,536
)
Amount of total loss included in earnings attributable to the change in unrealized losses (gains) relating to assets and liabilities held at June 30,
$
(545
)
$
(758
)
Change in Level 3 Fair Value Measurements during the six months ended June 30,
 
Derivative liabilities - net
 
2012
2011
Beginning balance, January 1,
$
(14,760
)
$
(13,802
)
Total gain (realized/unrealized) included in earnings
(1,158
)
(1,231
)
Settlements
(106
)
497

Ending balance, June 30,
$
(16,024
)
$
(14,536
)
Amount of total loss included in earnings attributable to the change in unrealized losses (gains) relating to assets and liabilities held at June 30,
$
(1,158
)
$
(1,231
)