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Derivative and hedging instruments (Tables)
 6 Months Ended
Jun. 30, 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
June 30, 2012
December 31, 2011
DERIVATIVE ASSETS:
 
 
 
Primary aluminum put option contracts
Due from affiliates
$
—

$
5,439

Primary aluminum put option contracts
Prepaid and other current assets
—

3,892

Power contract
Prepaid and other current assets
—

106

TOTAL
 
$
—

$
9,437

DERIVATIVE LIABILITIES:
 
 
 
E.ON contingent obligation
Other liabilities
$
14,663

$
13,958

Aluminum sales premium contracts – current portion
Accrued and other current liabilities
1,048

607

Natural gas forward financial contracts
Accrued and other current liabilities
65

281

Aluminum sales premium contracts – less current portion
Other liabilities
313

301

TOTAL
 
$
16,089

$
15,147
Derivatives not designated as hedging instruments
Derivatives not designated as hedging instruments:
 
 
 
Gain (loss) recognized in income from derivatives
 
 
Three months ended June 30,
Six months ended June 30,
 
Location
2012
2011
2012
2011
Primary aluminum put option contracts
Net gain (loss) on forward contracts
$
1,970

$
(1,060
)
$
(2,725
)
$
(5,666
)
Aluminum sales premium contracts
Related party sales
328

162

532

256

Aluminum sales premium contracts
Net gain (loss) on forward contracts
(520
)
(668
)
(985
)
(866
)
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:
 
June 30, 2012
December 31, 2011
Power contracts (in megawatt hours (“MWH”)) (1)
—

3,772

Primary aluminum sales contract premium (metric tons) (2)
30,600

40,870

Primary aluminum put option contracts (metric tons)
—

15,000

Primary aluminum put option contracts (metric tons) – related party
—

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.