Condensed consolidating financial information

6 Months Ended

Jun. 30, 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 (collectively, the "Guarantor Subsidiaries"). 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 June 30, 2014 and December 31, 2013, condensed consolidating statements of comprehensive income (loss) for the three and six months ended June 30, 2014 and 2013 and the condensed consolidating statements of cash flows for the six months ended June 30, 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 June 30, 2014
	Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			The Company			Reclassifications and Eliminations			Consolidated
Assets:
Cash and cash equivalents	$	—		$	44,984		$	16,400		$	—		$	61,384
Restricted cash	2,789			242			—			—			3,031
Accounts receivable — net	51,687			566			—			—			52,253
Due from affiliates	313,628			46,875			2,321,841			(2,628,250		)	54,094
Inventories	158,398			87,129			180			(2,059		)	243,648
Prepaid and other current assets	2,200			17,588			5,224			308			25,320
Deferred taxes	—			13,614			—			—			13,614
Total current assets	528,702			210,998			2,343,645			(2,630,001		)	453,344
Investment in subsidiaries	64,904			—			(1,078,450		)	1,013,546			—
Property, plant and equipment — net	339,951			889,052			1,451			(440		)	1,230,014
Due from affiliates — less current portion	—			41,928			—			(41,928		)	—
Other assets	20,034			38,088			32,214			2,786			93,122
Total	$	953,591		$	1,180,066		$	1,298,860		$	(1,656,037	)	$	1,776,480
Liabilities and shareholders’ equity:
Accounts payable, trade	$	52,546		$	42,627		$	724		$	—		$	95,897
Due to affiliates	2,036,103			101,807			—			(2,085,554		)	52,356
Accrued and other current liabilities	18,936			16,984			10,485			(1,223		)	45,182
Accrued employee benefits costs	6,692			—			1,841			—			8,533
Industrial revenue bonds	7,815			—			—			—			7,815
Total current liabilities	2,122,092			161,418			13,050			(2,086,777		)	209,783
Senior notes payable	—			—			246,705			—			246,705
Accrued pension benefit costs — less current portion	13,177			—			28,547			—			41,724
Accrued postretirement benefit costs — less current portion	123,771			—			4,516			—			128,287
Other liabilities/intercompany loan	57,359			564,004			2,409			(586,356		)	37,416
Deferred taxes	—			108,932			—			—			108,932
Total noncurrent liabilities	194,307			672,936			282,177			(586,356		)	563,064
Shareholders’ equity:
Series A Preferred stock	—			—			1			—			1
Common stock	60			12			936			(72		)	936
Additional paid-in capital	275,467			182,943			2,509,186			(458,410		)	2,509,186
Treasury stock, at cost	—			—			(49,924		)	—			(49,924		)
Accumulated other comprehensive loss	(90,978		)	(1,754		)	(91,864		)	92,732			(91,864		)
Retained earnings (accumulated deficit)	(1,547,357		)	164,511			(1,364,702		)	1,382,846			(1,364,702		)
Total shareholders’ equity	(1,362,808		)	345,712			1,003,633			1,017,096			1,003,633
Total	$	953,591		$	1,180,066		$	1,298,860		$	(1,656,037	)	$	1,776,480



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 June 30, 2014
	Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			The Company			Reclassifications and Eliminations			Consolidated
NET SALES:
Third-party customers	$	169,747		$	4		$	—		$	—		$	169,751
Related parties	157,807			130,766			—			—			288,573
	327,554			130,770			—			—			458,324
Cost of goods sold	307,005			112,815			—			—			419,820
Gross profit	20,549			17,955			—			—			38,504
Other operating expense – net	1,874			—			—			—			1,874
Selling, general and administrative expenses	10,180			438			—			—			10,618
Operating income	8,495			17,517			—			—			26,012
Interest expense – third party	(5,500		)	(71		)	—			—			(5,571		)
Interest expense – affiliates	12,430			(12,430		)	—			—			—
Interest income – third party	2			32			—			—			34
Net gain on forward and derivative contracts	352			—			—			—			352
Other income (expense) – net	436			(54		)	—			(82		)	300
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries and joint ventures	16,215			4,994			—			(82		)	21,127
Income tax benefit (expense)	(5,743		)	3,972			—			117			(1,654		)
Income before equity in earnings (losses) of subsidiaries and joint ventures	10,472			8,966			—			35			19,473
Equity in earnings (losses) of subsidiaries and joint ventures	2,353			871			20,344			(22,697		)	871
Net income (loss)	$	12,825		$	9,837		$	20,344		$	(22,662	)	$	20,344
Other comprehensive income (loss) before income tax effect	$	466		$	(46	)	$	436		$	(420	)	$	436
Income tax effect	(558		)	9			(567		)	549			(567		)
Other comprehensive income (loss)	(92		)	(37		)	(131		)	129			(131		)
Comprehensive income (loss)	$	12,733		$	9,800		$	20,213		$	(22,533	)	$	20,213



CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
For the three months ended June 30, 2013
	Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			The Company			Reclassifications and Eliminations			Consolidated
NET SALES:
Third-party customers	$	173,986		$	46,964		$	—		$	—		$	220,950
Related parties	51,651			59,336			—			—			110,987
	225,637			106,300			—			—			331,937
Cost of goods sold	250,395			87,240			—			—			337,635
Gross profit (loss)	(24,758		)	19,060			—			—			(5,698		)
Other operating expense – net	3,018			—			—			—			3,018
Selling, general and administrative expenses	11,755			3,399			—			—			15,154
Operating income (loss)	(39,531		)	15,661			—			—			(23,870		)
Interest expense – third party	(6,224		)	—			—			—			(6,224		)
Interest expense – affiliates	14,521			(14,521		)	—			—			—
Interest income – third party	17			169			—			—			186
Net gain on forward and derivative contracts	204			—			—			—			204
Gain on bargain purchase	5,253			—			—			—			5,253
Loss on early extinguishment of debt	(3,272		)	—			—			—			(3,272		)
Other expense – net	(128		)	(1,156		)	—			—			(1,284		)
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries and joint ventures	(29,160		)	153			—			—			(29,007		)
Income tax benefit (expense)	1,318			(2,131		)	—			—			(813		)
Loss before equity in earnings (losses) of subsidiaries and joint ventures	(27,842		)	(1,978		)	—			—			(29,820		)
Equity in earnings (losses) of subsidiaries and joint ventures	(3,044		)	436			(29,384		)	32,428			436
Net income (loss)	$	(30,886	)	$	(1,542	)	$	(29,384	)	$	32,428		$	(29,384	)
Other comprehensive income (loss) before income tax effect	$	10,006		$	(46	)	$	11,517		$	(9,960	)	$	11,517
Income tax effect	(357		)	8			(383		)	349			(383		)
Other comprehensive income (loss)	9,649			(38		)	11,134			(9,611		)	11,134
Comprehensive income (loss)	$	(21,237	)	$	(1,580	)	$	(18,250	)	$	22,817		$	(18,250	)




CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
For the six months ended June 30, 2014
	Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			The Company			Reclassifications and Eliminations			Consolidated
NET SALES:
Third-party customers	$	304,999		$	16		$	—		$	—		$	305,015
Related parties	321,847			252,309			—			—			574,156
	626,846			252,325			—			—			879,171
Cost of goods sold	619,629			222,796			—			—			842,425
Gross profit	7,217			29,529			—			—			36,746
Other operating expense – net	4,288			—			—			—			4,288
Selling, general and administrative expenses	19,551			1,129			—			—			20,680
Operating income (loss)	(16,622		)	28,400			—			—			11,778
Interest expense – third party	(10,919		)	(129		)	—			—			(11,048		)
Interest expense – affiliates	24,891			(24,891		)	—			—			—
Interest income – third party	5			169			—			—			174
Net loss on forward and derivative contracts	(527		)	—			—			—			(527		)
Other income (expense) – net	216			(87		)	—			(82		)	47
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries and joint ventures	(2,956		)	3,462			—			(82		)	424
Income tax benefit (expense)	(4,296		)	3,428			—			308			(560		)
Income (loss) before equity in earnings (losses) of subsidiaries and joint ventures	(7,252		)	6,890			—			226			(136		)
Equity in earnings (losses) of subsidiaries and joint ventures	1,987			376			240			(2,227		)	376
Net income (loss)	$	(5,265	)	$	7,266		$	240		$	(2,001	)	$	240
Other comprehensive income (loss) before income tax effect	$	1,056		$	(93	)	$	1,248		$	(963	)	$	1,248
Income tax effect	(1,263		)	17			(1,280		)	1,246			(1,280		)
Other comprehensive income (loss)	(207		)	(76		)	(32		)	283			(32		)
Comprehensive income (loss)	$	(5,472	)	$	7,190		$	208		$	(1,718	)	$	208




CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
For the six months ended June 30, 2013
	Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			The Company			Reclassifications and Eliminations			Consolidated
NET SALES:
Third-party customers	$	311,084		$	98,380		$	—		$	—		$	409,464
Related parties	118,280			125,467			—			—			243,747
	429,364			223,847			—			—			653,211
Cost of goods sold	461,580			179,747			—			—			641,327
Gross profit (loss)	(32,216		)	44,100			—			—			11,884
Other operating expense – net	4,114			—			—			—			4,114
Selling, general and administrative expenses	24,644			6,809			—			—			31,453
Operating income (loss)	(60,974		)	37,291			—			—			(23,683		)
Interest expense – third party	(12,300		)	—			—			—			(12,300		)
Interest expense – affiliates	29,017			(29,017		)	—			—			—
Interest income – third party	31			286			—			—			317
Net gain on forward and derivative contracts	15,711			—			—			—			15,711
Gain on bargain purchase	5,253			—			—			—			5,253
Loss on early extinguishment of debt	(3,272		)	—			—			—			(3,272		)
Other expense – net	(9		)	(1,205		)	—			—			(1,214		)
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries and joint ventures	(26,543		)	7,355			—			—			(19,188		)
Income tax benefit (expense)	(5,784		)	2,454			—			—			(3,330		)
Income (loss) before equity in earnings (losses) of subsidiaries and joint ventures	(32,327		)	9,809			—			—			(22,518		)
Equity in earnings (losses) of subsidiaries and joint ventures	(5,266		)	1,387			(21,131		)	26,397			1,387
Net income (loss)	$	(37,593	)	$	11,196		$	(21,131	)	$	26,397		$	(21,131	)
Other comprehensive income (loss) before income tax effect	$	11,090		$	(93	)	$	12,794		$	(10,997	)	$	12,794
Income tax effect	(748		)	17			(765		)	731			(765		)
Other comprehensive income (loss)	10,342			(76		)	12,029			(10,266		)	12,029
Comprehensive income (loss)	$	(27,251	)	$	11,120		$	(9,102	)	$	16,131		$	(9,102	)



CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the six months ended June 30, 2014
	Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			The Company			Consolidated
Net cash provided by operating activities	$	4,808		$	3,820		$	—		$	8,628
Investing activities:
Purchase of property, plant and equipment	(7,210		)	(9,502		)	(46		)	(16,758		)
Nordural expansion — Helguvik	—			(186		)	—			(186		)
Purchase of carbon anode assets and improvements	—			(7,226		)	—			(7,226		)
Proceeds from sale of property, plant and equipment	—			46			—			46
Restricted and other cash deposits	(2,002		)	668			—			(1,334		)
Net cash used in investing activities	(9,212		)	(16,200		)	(46		)	(25,458		)
Financing activities:
Borrowings under revolving credit facilities	—			—			86,646			86,646
Repayments under revolving credit facilities	—			(6,000		)	(86,646		)	(92,646		)
Intercompany transactions	4,404			25,387			(29,791		)	—
Issuance of common stock	—			—			126			126
Net cash provided by (used in) financing activities	4,404			19,387			(29,665		)	(5,874		)
Change in cash and cash equivalents	—			7,007			(29,711		)	(22,704		)
Cash and cash equivalents, beginning of the period	—			37,977			46,111			84,088
Cash and cash equivalents, end of the period	$	—		$	44,984		$	16,400		$	61,384



CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the six months ended June 30, 2013
	Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			The Company			Consolidated
Net cash provided by (used in) operating activities	$	34,027		$	(11,051	)	$	—		$	22,976
Investing activities:
Purchase of property, plant and equipment	(5,240		)	(10,751		)	(574		)	(16,565		)
Nordural expansion — Helguvik	—			(2,559		)	—			(2,559		)
Purchase of carbon anode assets and improvements	—			(3,670		)	—			(3,670		)
Purchase of Sebree smelter	(48,058		)	—			—			(48,058		)
Proceeds from sale of property, plant and equipment	—			515			—			515
Restricted and other cash deposits	258			(978		)	—			(720		)
Net cash used in investing activities	(53,040		)	(17,443		)	(574		)	(71,057		)
Financing activities:
Repayment of debt	—			—			(249,604		)	(249,604		)
Proceeds from issuance of debt	—			—			246,330			246,330
Debt issuance costs	—			—			(3,926		)	(3,926		)
Debt retirement costs	—			—			(1,208		)	(1,208		)
Intercompany transactions	19,013			582			(19,595		)	—
Issuance of common stock	—			—			44			44
Net cash provided by (used in) financing activities	19,013			582			(27,959		)	(8,364		)
Change in cash and cash equivalents	—			(27,912		)	(28,533		)	(56,445		)
Cash and cash equivalents, beginning of the period	—			110,016			73,960			183,976
Cash and cash equivalents, end of the period	$	—		$	82,104		$	45,427		$	127,531