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Business acquisitions
 3 Months Ended
Mar. 31, 2016
Business Combinations [Abstract]  
Business acquisitions
Business acquisitions
Acquisition of Mt. Holly aluminum smelter
On October 23, 2014, our wholly-owned subsidiary, Berkeley Aluminum Inc. ("Berkeley") entered into a stock purchase agreement (the "Stock Purchase Agreement") with Alumax Inc. ("Alumax"), a wholly-owned subsidiary of Alcoa Inc. ("Alcoa"), pursuant to which Berkeley acquired all of the issued and outstanding shares of Alumax of South Carolina, Inc. ("Alumax of SC") and thereby acquired Alcoa’s 50.3% stake in Mt. Holly. Berkeley had previously owned 49.7% of Mt. Holly. Immediately following the consummation of the transaction on December 1, 2014, Berkeley merged with and into Alumax of SC with Alumax of SC surviving and changing its name to Century Aluminum of South Carolina, Inc. ("CASC"). Following the consummation of the transaction, CASC owns 100% of Mt. Holly. Mt. Holly, located in Goose Creek, South Carolina, employed approximately 600 people and had an annual production capacity of 231,000 tonnes of primary aluminum as of the acquisition date.
Pursuant to the terms of the Stock Purchase Agreement, Berkeley acquired all of the issued and outstanding shares of capital stock of Alumax of SC for $67,500 in cash subject to a contingent earn-out payment, working capital and other similar adjustments. The acquisition was funded with available cash on hand.
We incurred acquisition-related costs for Mt. Holly of $1,539 which were expensed to selling, general and administrative expenses in the period that they were incurred.
The following table summarizes all of the elements of purchase consideration for the transaction as of December 1, 2014.
 
 
 
 
Purchase price
$
67,500

Contingent consideration
13,780

Economic, working capital and other closing adjustments
(13,513
)
Total consideration
$
67,767

Contingent Consideration - Earn-out provision
The Stock Purchase Agreement provided for a contingent cash payment to be made following December 31, 2015. We measured the fair value of contingent consideration and recognized a $13,780 liability at the closing date. Each period, until the end of the measurement period on December 31, 2015, we remeasured the fair value of the contingent consideration and the change in the fair value was recognized in earnings. We recognized gains, primarily related to decreases in the forward curve of the LME price of primary aluminum, of $7,943 and $18,337 during the twelve month periods ended December 31, 2014 and 2015, respectively, $6,527 of which was recognized during the three month period ended March 31, 2015. Alcoa paid us $12,500 in settlement of the contingent consideration in March 2016.
Economic Adjustment, working capital and other adjustments
The Stock Purchase Agreement provided for an economic adjustment that was established to put the parties in the same economic position as if the closing date for the acquisition had occurred on September 30, 2014. We received $11,189 from Alcoa for the economic adjustment in April 2015.
The Stock Purchase Agreement also contained provisions for a payment for working capital adjustments based on actual working capital at closing compared to established working capital targets. We received $124 from Alcoa for the working capital adjustments in April 2015.
Other adjustments include $200 due to Alcoa and amounts due to CASC for expected future post-employment benefit payments and certain other items. We received $2,400 from Alcoa for these other adjustments at closing.
Net cash consideration
The total net cash consideration paid to Alcoa after final resolution of all post-closing adjustments, including the earn-out provision, was $41,487.