Condensed consolidating financial information

3 Months Ended

Mar. 31, 2014

Condensed Consolidating Financial Information [Abstract]

Condensed consolidating financial information

Our 7.5% Notes due 2014 are guaranteed by each of our material existing and future domestic subsidiaries, except for Nordural US LLC. The Guarantor Subsidiaries are 100% owned by Century Aluminum Company (the "Company"). All guarantees are full and unconditional; all guarantees are joint and several. These notes are not guaranteed by our foreign subsidiaries (such subsidiaries and Nordural US LLC, collectively the "Non-Guarantor Subsidiaries"). We allocate corporate expenses or income to our subsidiaries and charge interest on certain intercompany balances.

The following summarized condensed consolidating balance sheets as of March 31, 2014 and December 31, 2013, condensed consolidating statements of comprehensive income (loss) for the three months ended March 31, 2014 and 2013 and the condensed consolidating statements of cash flows for the three months ended March 31, 2014 and 2013 present separate results for Century, the Guarantor Subsidiaries, the Non-Guarantor Subsidiaries, consolidating adjustments and total consolidated amounts.

This summarized condensed consolidating financial information may not necessarily be indicative of the results of operations, financial position or cash flows had the Company, the Guarantor Subsidiaries or the Non-Guarantor Subsidiaries operated as independent entities.



CONDENSED CONSOLIDATING BALANCE SHEET
As of March 31, 2014
	Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			The Company			Reclassifications and Eliminations			Consolidated
Assets:
Cash and cash equivalents	$	—		$	48,605		$	3,893		$	—		$	52,498
Restricted cash	787			245			—			—			1,032
Accounts receivable — net	45,193			426			—			—			45,619
Due from affiliates	282,130			33,567			2,340,716			(2,600,282		)	56,131
Inventories	168,081			85,390			—			(1,372		)	252,099
Prepaid and other current assets	6,210			17,702			5,627			5,662			35,201
Deferred taxes	—			13,614			—			—			13,614
Total current assets	502,401			199,549			2,350,236			(2,595,992		)	456,194
Investment in subsidiaries	55,558			—			(1,106,964		)	1,051,406			—
Property, plant and equipment — net	344,755			894,052			1,523			(437		)	1,239,893
Due from affiliates — less current portion	—			32,730			—			(32,730		)	—
Other assets	21,372			35,375			32,052			1,969			90,768
Total	$	924,086		$	1,161,706		$	1,276,847		$	(1,575,784	)	$	1,786,855
Liabilities and shareholders’ equity:
Accounts payable, trade	$	52,467		$	39,795		$	2,242		$	5,471		$	99,975
Due to affiliates	2,025,679			115,888			—			(2,067,188		)	74,379
Accrued and other current liabilities	18,486			25,833			8,548			(1,223		)	51,644
Accrued employee benefits costs	6,589			—			1,840			—			8,429
Industrial revenue bonds	7,815			—			—			—			7,815
Total current liabilities	2,111,036			181,516			12,630			(2,062,940		)	242,242
Senior notes payable	—			—			246,615			—			246,615
Accrued pension benefit costs — less current portion	12,603			—			27,378			—			39,981
Accrued postretirement benefit costs — less current portion	126,123			—			5,073			—			131,196
Other liabilities/intercompany loan	58,196			544,554			2,035			(567,801		)	36,984
Deferred taxes	—			106,721			—			—			106,721
Total noncurrent liabilities	196,922			651,275			281,101			(567,801		)	561,497
Shareholders’ equity:
Series A Preferred stock	—			—			1			—			1
Common stock	60			12			936			(72		)	936
Additional paid-in capital	268,468			175,943			2,508,882			(444,411		)	2,508,882
Treasury stock, at cost	—			—			(49,924		)	—			(49,924		)
Accumulated other comprehensive loss	(92,217		)	(1,716		)	(91,733		)	93,933			(91,733		)
Retained earnings (accumulated deficit)	(1,560,183		)	154,676			(1,385,046		)	1,405,507			(1,385,046		)
Total shareholders’ equity	(1,383,872		)	328,915			983,116			1,054,957			983,116
Total	$	924,086		$	1,161,706		$	1,276,847		$	(1,575,784	)	$	1,786,855



CONDENSED CONSOLIDATING BALANCE SHEET
As of December 31, 2013
	Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			The Company			Reclassifications and Eliminations			Consolidated
Assets:
Cash and cash equivalents	$	—		$	37,977		$	46,111		$	—		$	84,088
Restricted cash	787			910			—			—			1,697
Accounts receivable — net	45,205			10,979			—			—			56,184
Due from affiliates	303,031			36,995			2,304,874			(2,601,313		)	43,587
Inventories	166,137			73,478			—			—			239,615
Prepaid and other current assets	6,350			20,531			5,395			—			32,276
Deferred taxes	—			14,540			—			(926		)	13,614
Total current assets	521,510			195,410			2,356,380			(2,602,239		)	471,061
Investment in subsidiaries	55,929			—			(1,087,216		)	1,031,287			—
Property, plant and equipment — net	351,096			895,381			1,621			(437		)	1,247,661
Due from affiliates — less current portion	—			32,066			—			(32,066		)	—
Other assets	21,163			33,132			32,431			4,748			91,474
Total	$	949,698		$	1,155,989		$	1,303,216		$	(1,598,707	)	$	1,810,196
Liabilities and shareholders’ equity:
Accounts payable, trade	$	65,384		$	42,351		$	755		$	—		$	108,490
Due to affiliates	2,015,550			97,351			—			(2,059,319		)	53,582
Accrued and other current liabilities	25,419			26,005			16,486			1,556			69,466
Accrued employee benefits costs	12,880			—			2,737			(7,207		)	8,410
Industrial revenue bonds	7,815			—			—			—			7,815
Total current liabilities	2,127,048			165,707			19,978			(2,064,970		)	247,763
Senior notes payable	—			—			246,528			—			246,528
Accrued pension benefit costs — less current portion	6,183			—			26,458			7,207			39,848
Accrued postretirement benefit costs — less current portion	124,466			—			4,818			—			129,284
Other liabilities/intercompany loan	58,367			548,985			2,622			(572,231		)	37,743
Deferred taxes	—			106,218			—			—			106,218
Total noncurrent liabilities	189,016			655,203			280,426			(565,024		)	559,621
Shareholders’ equity:
Series A Preferred stock	—			—			1			—			1
Common stock	60			12			935			(72		)	935
Additional paid-in capital	268,467			179,493			2,508,574			(447,960		)	2,508,574
Treasury stock, at cost	—			—			(49,924		)	—			(49,924		)
Accumulated other comprehensive loss	(92,803		)	(1,678		)	(91,832		)	94,481			(91,832		)
Retained earnings (accumulated deficit)	(1,542,090		)	157,252			(1,364,942		)	1,384,838			(1,364,942		)
Total shareholders’ equity	(1,366,366		)	335,079			1,002,812			1,031,287			1,002,812
Total	$	949,698		$	1,155,989		$	1,303,216		$	(1,598,707	)	$	1,810,196



CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
For the three months ended March 31, 2014
	Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			The Company			Reclassifications and Eliminations			Consolidated
NET SALES:
Third-party customers	$	135,252		$	12		$	—		$	—		$	135,264
Related parties	164,040			121,543			—			—			285,583
	299,292			121,555			—			—			420,847
Cost of goods sold	312,624			109,981			—			—			422,605
Gross profit (loss)	(13,332		)	11,574			—			—			(1,758		)
Other operating expense – net	2,414			—			—			—			2,414
Selling, general and administrative expenses	9,371			691			—			—			10,062
Operating income (loss)	(25,117		)	10,883			—			—			(14,234		)
Interest expense – third party	(5,419		)	(58		)	—			—			(5,477		)
Interest expense – affiliates	12,461			(12,461		)	—			—			—
Interest income – third party	3			137			—			—			140
Net loss on forward and derivative contracts	(879		)	—			—			—			(879		)
Other expense – net	(220		)	(33		)	—			—			(253		)
Loss before income taxes and equity in earnings (losses) of subsidiaries and joint ventures	(19,171		)	(1,532		)	—			—			(20,703		)
Income tax benefit (expense)	1,447			(544		)	—			191			1,094
Income (loss) before equity in earnings (losses) of subsidiaries and joint ventures	(17,724		)	(2,076		)	—			191			(19,609		)
Equity in earnings (losses) of subsidiaries and joint ventures	(366		)	(495		)	(20,104		)	20,470			(495		)
Net income (loss)	$	(18,090	)	$	(2,571	)	$	(20,104	)	$	20,661		$	(20,104	)
Other comprehensive income (loss) before income tax effect	$	590		$	(47	)	$	812		$	(543	)	$	812
Income tax effect	(705		)	8			(713		)	697			(713		)
Other comprehensive income (loss)	(115		)	(39		)	99			154			99
Comprehensive income (loss)	$	(18,205	)	$	(2,610	)	$	(20,005	)	$	20,815		$	(20,005	)



CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
For the three months ended March 31, 2013
	Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			The Company			Reclassifications and Eliminations			Consolidated
NET SALES:
Third-party customers	$	137,098		$	51,416		$	—		$	—		$	188,514
Related parties	66,629			66,131			—			—			132,760
	203,727			117,547			—			—			321,274
Cost of goods sold	211,185			92,507			—			—			303,692
Gross profit (loss)	(7,458		)	25,040			—			—			17,582
Other operating expense – net	1,096			—			—			—			1,096
Selling, general and administrative expenses	12,889			3,410			—			—			16,299
Operating income (loss)	(21,443		)	21,630			—			—			187
Interest expense – third party	(6,076		)	—			—			—			(6,076		)
Interest expense – affiliates	14,496			(14,496		)	—			—			—
Interest income – third party	14			117			—			—			131
Net gain on forward and derivative contracts	15,507			—			—			—			15,507
Other income (expense) – net	119			(49		)	—			—			70
Income before income taxes and equity in earnings (losses) of subsidiaries and joint ventures	2,617			7,202			—			—			9,819
Income tax benefit (expense)	(7,102		)	4,585			—			—			(2,517		)
Income (loss) before equity in earnings (losses) of subsidiaries and joint ventures	(4,485		)	11,787			—			—			7,302
Equity in earnings (losses) of subsidiaries and joint ventures	(2,222		)	951			8,253			(6,031		)	951
Net income (loss)	$	(6,707	)	$	12,738		$	8,253		$	(6,031	)	$	8,253
Other comprehensive income (loss) before income tax effect	$	1,084		$	(47	)	$	1,277		$	(1,037	)	$	1,277
Income tax effect	(391		)	9			(382		)	382			(382		)
Other comprehensive income (loss)	693			(38		)	895			(655		)	895
Comprehensive income (loss)	$	(6,014	)	$	12,700		$	9,148		$	(6,686	)	$	9,148



CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the three months ended March 31, 2014
	Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			The Company			Consolidated
Net cash provided by (used in) operating activities	$	(42,154	)	$	31,413		$	—		$	(10,741	)
Investing activities:
Purchase of property, plant and equipment	(2,525		)	(7,149		)	(26		)	(9,700		)
Nordural expansion — Helguvik	—			(93		)	—			(93		)
Purchase of carbon anode assets and improvements	—			(5,724		)	—			(5,724		)
Restricted and other cash deposits	—			665			—			665
Net cash used in investing activities	(2,525		)	(12,301		)	(26		)	(14,852		)
Financing activities:
Borrowings under revolving credit facilities	—			—			18,870			18,870
Repayments under revolving credit facilities	—			(6,000		)	(18,870		)	(24,870		)
Intercompany transactions	44,679			(2,484		)	(42,195		)	—
Issuance of common stock	—			—			3			3
Net cash provided by (used in) financing activities	44,679			(8,484		)	(42,192		)	(5,997		)
Change in cash and cash equivalents	—			10,628			(42,218		)	(31,590		)
Cash and cash equivalents, beginning of the period	—			37,977			46,111			84,088
Cash and cash equivalents, end of the period	$	—		$	48,605		$	3,893		$	52,498



CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the three months ended March 31, 2013
	Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			The Company			Consolidated
Net cash provided by (used in) operating activities	$	27,968		$	(5,567	)	$	—		$	22,401
Investing activities:
Purchase of property, plant and equipment	(1,723		)	(7,494		)	(147		)	(9,364		)
Nordural expansion — Helguvik	—			(1,745		)	—			(1,745		)
Purchase of carbon anode assets and improvements	—			(150		)	—			(150		)
Proceeds from sale of property, plant and equipment	—			353			—			353
Net cash used in investing activities	(1,723		)	(9,036		)	(147		)	(10,906		)
Financing activities:
Intercompany transactions	(26,245		)	26,247			(2		)	—
Net cash provided by (used in) financing activities	(26,245		)	26,247			(2		)	—
Change in cash and cash equivalents	—			11,644			(149		)	11,495
Cash and cash equivalents, beginning of the period	—			110,016			73,960			183,976
Cash and cash equivalents, end of the period	$	—		$	121,660		$	73,811		$	195,471