Condensed consolidating financial information (Tables)

6 Months Ended

Jun. 30, 2014

Condensed Consolidating Financial Information [Abstract]



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)



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 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 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 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 Cash Flows



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



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