Variable Interest Entity

6 Months Ended

Jun. 30, 2025

Organization, Consolidation and Presentation of Financial Statements [Abstract]

15. Variable Interest Entity

The Company consolidates Jamalco, a bauxite mining and alumina refinery in Jamaica, under the variable interest entity ("VIE") model. Jamalco lacks sufficient equity investment at risk in accordance with relevant guidance. Based on its purpose and design, Jamalco is expected to require additional subordinated financial support, such as those in the form of equity contributions or other forms of subordinated financing, which the Company expects would require parent guarantees.

The Company owns a 55% ownership interest in Jamalco through its wholly-owned subsidiary, GAJL, which serves as the managing partner. The Company is responsible for funding 55% of Jamalco's operating costs and capital requirements and is not obligated to provide additional financial support beyond its equity interest. Upon acquisition, the Company made an immediate equity contribution to Jamalco and has provided subsequent financing of costs for Jamalco to perform its activities in the ordinary course of business.

The Company obtains direct ownership of our 55% share of Jamalco’s outputs and purchases the remaining 45% of the output from the Government of Jamaica. Through direct ownership and purchase, 100% of Jamalco’s output is either retained and utilized in the Company’s business operations or sold by the Company. The Company’s consolidated statement of cash flows reflects 100% of cash flows related to the Jamalco operations. The Company receives cash proceeds from the Government of Jamaica for its 45% interest of the Jamalco operating costs and capital requirements.

Although our partner has certain participating rights over some decisions of the entity, the Company has power over the majority of key activities at Jamalco that significantly affect its economic performance over which the counterparty does not have such participating rights; therefore, the Company is the primary beneficiary of the VIE.

The table below shows the carrying amounts and classification of the consolidated VIE's assets and liabilities included in the Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024.


	June 30, 2025	December 31, 2024
ASSETS
Cash and cash equivalents	33.0	17.4
Accounts receivable - net	0.6	1.1
Non-trade receivables	—	13.1
Due from affiliates	—	75.1
Inventories	85.5	109.8
Prepaid and other current assets	5.3	2.0
Total current assets	124.4	218.5
Property, plant and equipment - net	54.5	232.1
Other assets	10.9	23.1
TOTAL	189.8	473.7
LIABILITIES
LIABILITIES:
Accounts payable, trade	43.4	39.1
Accrued compensation and benefits	6.1	8.5
Due to affiliates	14.3	49.6
Accrued and other current liabilities	2.7	7.2
Total current liabilities	66.5	104.4
Accrued benefits costs - less current portion	—	17.7
Other liabilities	61.9	66.7
Asset retirement obligations - less current portion	10.9	35.0
Total noncurrent liabilities	72.8	119.4
TOTAL	139.3	223.8