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Derivative and hedging instruments (Tables)
 3 Months Ended
Mar. 31, 2013
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 Liabilities
 
Balance sheet location
March 31, 2013
December 31, 2012
DERIVATIVE LIABILITIES:
 
 
 
E.ON contingent obligation - net (1)
Other liabilities
$
—

$
15,369

Aluminum sales premium contracts – current portion
Accrued and other current liabilities
1,030

1,170

TOTAL
 
$
1,030

$
16,539


(1)
Based on the LME forward market prices for primary aluminum at March 31, 2013 and management's estimate of the LME forward market for periods beyond the quoted periods, we believe that we will not have any payment obligations for the E.ON contingent obligation through the term of the agreement which expires in 2028. See Note 9 Debt for additional information about the E.ON contingent obligation fair value.
Derivatives not designated as hedging instruments
Derivatives not designated as hedging instruments:
 
 
 
Gain (loss) recognized in income from derivatives
 
 
Three months ended March 31,
 
Location
2013
2012
E.ON contingent obligation - net
Net gain (loss) on forward and derivative contracts
$
15,722

$
—

Primary aluminum put option contracts
Net gain (loss) on forward and derivative contracts
—

(4,695
)
Aluminum sales premium contracts
Related party sales
355

204

Aluminum sales premium contracts
Net gain (loss) on forward and derivative contracts
(215
)
(465
)
E.ON contingent obligation - net
Interest expense - third party
(353
)
(353
)
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, 2013
December 31, 2012
Primary aluminum sales contract premium (metric tons) (1)
15,300

20,400

(1)
Represents the remaining physical deliveries under the Glencore Metal Agreement.