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Derivative and hedging instruments (Tables)
 6 Months Ended
Jun. 30, 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
June 30, 2013
December 31, 2012
DERIVATIVE LIABILITIES:
 
 
 
Aluminum sales premium contracts – current portion
Accrued and other current liabilities
$
773

$
1,170

E.ON contingent obligation - net (1)
Other liabilities
—

15,369

TOTAL
 
$
773

$
16,539


(1)
Based on the LME forward market prices for primary aluminum at June 30, 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 10 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 June 30,
Six months ended June 30,
 
Location
2013
2012
2013
2012
E.ON contingent obligation - net
Net gain (loss) on forward and derivative contracts
$
353

$
—

$
16,075

$
—

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

1,970

—

(2,725
)
Aluminum sales premium contracts
Related party sales
406

328

761

532

Aluminum sales premium contracts
Net gain (loss) on forward and derivative contracts
(149
)
(520
)
(364
)
(985
)
E.ON contingent obligation - net
Interest expense - third party
(353
)
(353
)
(706
)
(706
)
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, 2013
December 31, 2012
Primary aluminum sales contract premium (metric tons) (1)
10,430

20,400

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