4 unchanged sentences
Three months ended
−Removed: Six months ended
+Added: September 30,
+Added: Nine months ended September 30,
2022 2021 2022 2021
6 unchanged sentences
Asset impairment — — 159.4 —
−Removed: Other operating expense - net 0.2 0.1 0.4 0.2
+Added: Other operating (income) expense - net ( 0.2 ) 0.1 0.2 0.3
Operating income (loss) ( 51.5 ) 40.3 ( 119.7 ) 15.5
4 unchanged sentences
Loss on early extinguishment of debt — — — ( 24.7 )
−Removed: Other income - net 3.1 1.2 5.1 3.1
+Added: Other income (expense) - net 11.6 ( 2.5 ) 16.7 0.6
Income (loss) before income taxes 64.9 ( 45.6 ) 164.0 ( 271.3 )
1 unchanged sentence
Income (loss) before equity in earnings of joint ventures 44.3 ( 52.4 ) 99.4 ( 227.5 )
−Removed: Equity in earnings of joint ventures — 0.0 $ — 0.0
+Added: Equity in earnings (losses) of joint ventures ( 0.0 ) 0.0 ( 0.0 ) 0.0
Net income (loss) $ 44.3 $ ( 52.4 ) $ 99.4 $ ( 227.5 )
11 unchanged sentences
(in millions)
−Removed: Three months ended June 30,
−Removed: Six months ended June 30,
+Added: Three months ended September 30,
+Added: Nine months ended September 30,
2022 2021 2022 2021
1 unchanged sentence
Net income (loss) $ 44.3 $ ( 52.4 ) $ 99.4 $ ( 227.5 )
−Removed: Other comprehensive income before income tax effect:
+Added: Other comprehensive income (loss) before income tax effect:
Net income (loss) on foreign currency cash flow hedges reclassified as income 0.0 0.0 ( 0.1 ) ( 0.1 )
Defined benefit plans and other postretirement benefits:
−Removed: Amortization of prior service benefit (cost) during the period ( 0.5 ) ( 0.8 ) ( 0.9 ) ( 1.6 )
−Removed: Amortization of net gain (loss) during the period 1.4 2.1 2.5 4.2
+Added: OPEB curtailment gain, net ( 8.0 ) — ( 8.0 ) —
+Added: Amortization of prior service benefit during the period ( 0.3 ) ( 0.8 ) ( 1.2 ) ( 2.4 )
+Added: Amortization of net loss during the period 1.1 2.1 3.6 6.3
Other comprehensive income (loss) before income tax effect ( 7.2 ) 1.3 ( 5.7 ) 3.8
6 unchanged sentences
(in millions)
−Removed: June 30, 2022 December 31, 2021
+Added: September 30, 2022 December 31, 2021
Cash and cash equivalents $ 64.8 $ 29.0
3 unchanged sentences
Inventories 383.2 425.6
−Removed: Derivative assets 140.4 34.8
+Added: Derivative assets, current 198.1 34.8
Prepaid and other current assets 24.5 28.2
1 unchanged sentence
Property, plant and equipment - net 740.9 892.5
+Added: Due from affiliates - less current portion 0.2 —
+Added: Derivative assets - less current portion 29.9 8.1
Other assets 54.0 51.1
34 unchanged sentences
(in millions)
−Removed: Six months ended June 30,
+Added: Nine months ended September 30,
CASH FLOWS FROM OPERATING ACTIVITIES:
1 unchanged sentence
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
−Removed: Unrealized (gain) loss on derivative instruments ( 217.5 ) 127.5
+Added: (Gain) loss on derivative instruments ( 302.3 ) 160.6
+Added: OPEB curtailment gain, net ( 8.0 ) —
Lower of cost or NRV inventory adjustment 46.5 —
12 unchanged sentences
Accrued and other current liabilities 12.5 3.5
+Added: Ravenswood retiree medical settlement ( 2.0 ) ( 2.0 )
Other -- net ( 6.4 ) 1.0
15 unchanged sentences
Borrowings under Grundartangi casthouse debt facility 40.0 —
−Removed: Net cash provided by (used in) financing activities ( 25.1 ) 39.7
+Added: Net cash provided by financing activities 38.2 42.4
CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 25.3 ( 15.4 )
Cash, cash equivalents and restricted cash, beginning of period 40.7 84.3
−Removed: Cash, cash equivalents and restricted cash, end of period $ 32.5 $ 10.2
CENTURY ALUMINUM COMPANY
1 unchanged sentence
(in millions)
−Removed: Six months ended June 30,
+Added: Nine months ended September 30,
+Added: Cash, cash equivalents and restricted cash, end of period $ 66.0 $ 68.9
Supplemental Cash Flow Information:
12 unchanged sentences
Three months ended
−Removed: June 30, 2022
−Removed: Balance, March 31, 2022 $ 0.0 $ 1.0 $ 2,536.0 $ ( 86.3 ) $ ( 81.7 ) $ ( 1,929.2 ) $ 439.8
+Added: September 30, 2022
+Added: Balance, June 30, 2022 $ 0.0 $ 1.0 $ 2,537.0 $ ( 86.3 ) $ ( 80.9 ) $ ( 1,891.8 ) $ 479.0
Net income (loss) 0.0 — — — — 44.3 44.3
2 unchanged sentences
Conversion of preferred stock to common stock 0.0 0.0 0.0 — — — 0.0
−Removed: Balance, June 30, 2022 $ 0.0 $ 1.0 $ 2,537.0 $ ( 86.3 ) $ ( 80.9 ) $ ( 1,891.8 ) $ 479.0
+Added: Balance, September 30, 2022 $ 0.0 $ 1.0 $ 2,537.6 $ ( 86.3 ) $ ( 88.2 ) $ ( 1,847.5 ) $ 516.6
Three months ended
−Removed: June 30, 2021
−Removed: Balance, March 31, 2021 $ 0.0 $ 1.0 $ 2,530.9 $ ( 86.3 ) $ ( 117.5 ) $ ( 1,919.8 ) $ 408.3
+Added: September 30, 2021
+Added: Balance, June 30, 2021 $ 0.0 $ 1.0 $ 2,527.0 $ ( 86.3 ) $ ( 116.4 ) $ ( 1,954.9 ) $ 370.4
Net income (loss) — — — — — ( 52.4 ) ( 52.4 )
2 unchanged sentences
Conversion of preferred stock to common stock 0.0 0.0 0.0 — — — 0.0
−Removed: Capped call premiums — — ( 4.6 ) — — — ( 4.6 )
−Removed: Balance, June 30, 2021 $ 0.0 $ 1.0 $ 2,527.0 $ ( 86.3 ) $ ( 116.4 ) $ ( 1,954.9 ) $ 370.4
+Added: Balance, September 30, 2021 $ 0.0 $ 1.0 $ 2,528.0 $ ( 86.3 ) $ ( 115.2 ) $ ( 2,007.3 ) $ 320.2
Preferred stock Common stock Additional paid-in capital Treasury stock, at cost Accumulated other comprehensive loss Accumulated
deficit Total shareholders’ equity
−Removed: Six months ended
−Removed: June 30, 2022
+Added: Nine Months Ended
+Added: September 30, 2022
Balance, December 31, 2021 $ 0.0 $ 1.0 $ 2,535.5 $ ( 86.3 ) $ ( 82.3 ) $ ( 1,946.9 ) $ 421.0
3 unchanged sentences
Conversion of preferred stock to common stock 0.0 0.0 0.0 — — — 0.0
−Removed: Balance, June 30, 2022 $ 0.0 $ 1.0 $ 2,537.0 $ ( 86.3 ) $ ( 80.9 ) $ ( 1,891.8 ) $ 479.0
−Removed: Six months ended June 30, 2021
+Added: Balance, September 30, 2022 $ 0.0 $ 1.0 $ 2,537.6 $ ( 86.3 ) $ ( 88.2 ) $ ( 1,847.5 ) $ 516.6
+Added: Nine Months Ended September 30, 2021
Balance, December 31, 2020 $ 0.0 $ 1.0 $ 2,530.0 $ ( 86.3 ) $ ( 118.8 ) $ ( 1,779.8 ) $ 546.1
4 unchanged sentences
Capped call premiums — — ( 4.6 ) — — — ( 4.6 )
−Removed: Balance, June 30, 2021 $ 0.0 $ 1.0 $ 2,527.0 $ ( 86.3 ) $ ( 116.4 ) $ ( 1,954.9 ) $ 370.4
+Added: Balance, September 30, 2021 $ 0.0 $ 1.0 $ 2,528.0 $ ( 86.3 ) $ ( 115.2 ) $ ( 2,007.3 ) $ 320.2
CENTURY ALUMINUM COMPANY
Condensed Notes to the Consolidated Financial Statements
−Removed: Six months ended June 30, 2022 and 2021
+Added: Nine months ended September 30, 2022 and 2021
(amounts in millions, except share and per share amounts)
1 unchanged sentence
In management’s opinion, the unaudited interim consolidated financial statements reflect all adjustments, which are of a normal and recurring nature, that are necessary for a fair presentation of financial results for the interim periods presented.
−Removed: Operating results for the first six months of 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022.
+Added: Operating results for the first nine months of 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022.
Throughout this Form 10-Q, and unless expressly stated otherwise or as the context otherwise requires, "Century Aluminum," "Century," the "Company," "we," "us," "our" and "ours" refer to Century Aluminum Company and its consolidated subsidiaries.
1 unchanged sentence
On June 22, 2022, our subsidiary, Century Aluminum of Kentucky ("CAKY"), issued a Worker Adjustment and Retraining Notification Act ("WARN") notice at its Hawesville, Kentucky aluminum smelter related to a temporary curtailment of plant operations within 60 days as a result of current market conditions, including historically high energy costs and declining London Metal Exchange ("LME") prices.
−Removed: We have since fully curtailed production at the facility and expect to continue to maintain the plant with the intention of restarting operations when markets permit, including energy prices returning to more normalized levels and aluminum prices maintaining levels that can support the on-going costs and capital expenditures necessary to restart and operate the plant.
+Added: We have since fully curtailed production at the facility and expect to continue to maintain the plant with the intention of restarting operations when market conditions permit, including energy prices returning to more normalized levels and aluminum prices maintaining levels that can support the on-going costs and capital expenditures necessary to restart and operate the plant.
As the curtailment represents a significant adverse change in the extent and manner in which the Hawesville smelter will be used, we accordingly evaluated the Hawesville asset group for recoverability.
1 unchanged sentence
We classified the estimated remaining fair value of the long lived assets within Level 3 of the fair value hierarchy as its fair value was determined based on recent comparable transactions with inputs that are not readily observable in the market.
−Removed: We also recognized $ 8.2 million of expense during the second quarter related to accrued wages and severance, triggered by our issuance of the WARN notice.
−Removed: These costs are included in cost of goods sold and expected to be paid by the end of the third quarter of 2022.
+Added: We recognized $ 12.6 million of expense through the third quarter related to wages and severance triggered by our issuance of the WARN notice and excess capacity charges, partially offset by final plant idling activities.
+Added: We also recognized a non-cash other postretirement benefits ("OPEB") curtailment gain, net totaling $ 8.0 million for the three and nine months ended September 30, 2022.
+Added: Components of net periodic benefit cost to the consolidated financial statements included herein for additional information.
Related Party Transactions
−Removed: The significant related party transactions occurring during the six months ended June 30, 2022 and 2021 are described below.
+Added: The significant related party transactions occurring during the nine months ended September 30, 2022 and 2021 are described below.
We believe all of our transactions with related parties are at prices that approximate market.
Glencore Ownership
−Removed: As of June 30, 2022 , Glencore plc and its affiliates (together "Glencore") beneficially owned 42.9 % of Century’s outstanding common stock ( 46.3 % o n a fully-diluted basis assuming the conversion of all of the Series A Convertible Preferred Stock) and all of our outstanding Series A Convertible Preferred Stock.
+Added: As of September 30, 2022 , Glencore plc and its affiliates (together "Glencore") beneficially owned 42.9 % of Century’s outstanding common stock ( 46.3 % o n a fully-diluted basis assuming the conversion of all of the Series A Convertible Preferred Stock) and all of our outstanding Series A Convertible Preferred Stock.
Shareholders' Equity for a description of our outstanding Series A Convertible Preferred Stock.
4 unchanged sentences
Sales to Glencore
−Removed: For the three months ended June 30, 2022 and 2021, we derived approximately 57 % and 58 %, respectively, of our consolidated net sales from Glencore.
+Added: For the three months ended September 30, 2022 and 2021, we derived approximately 63.5 % and 60.3 %, respectively, of our consolidated net sales from Glencore.
Glencore purchases aluminum produced at our U.S.
2 unchanged sentences
We have entered into agreements with Glencore pursuant to which we sell certain amounts of alumina at market-based prices.
−Removed: For the three and six months ended June 30, 2022, we recorded $ 13.9 million and $ 13.9 million of revenue related to alumina sales to Glencore, respectively.
−Removed: For the three and six months ended June 30, 2021, we recorded $ 11.4 million and $ 11.4 million of revenue related to alumina sales to Glencore, respectively.
+Added: For the three and nine months ended September 30, 2022, we recorded $ 4.9 million and $ 18.8 million of revenue related to alumina sales to Glencore, respectively.
+Added: For the three and nine months ended September 30, 2021, we recorded $ 5.5 million and $ 16.9 million of revenue related to alumina sales to Glencore, respectively.
Purchases from Glencore
We purchase a portion of our alumina and certain other raw material requirements from Glencore.
−Removed: Alumina purchases from Glencore during the three months ended June 30, 2022 were priced based on published alumina and aluminum indices as well as fixed prices.
+Added: Alumina purchases from Glencore during the three months ended September 30, 2022 were priced based on published alumina and aluminum indices as well as fixed prices.
Financial Contracts with Glencore
We have certain financial contracts with Glencore.
−Removed: See Note 1 4 .
Derivatives regarding these forward financial sales contracts.
A summary of the aforementioned significant related party transactions is as follows:
−Removed: Three months ended June 30, Six months ended June 30,
+Added: Three months ended September 30, Nine months ended September 30,
2022 2021 2022 2021
4 unchanged sentences
We disaggregate our revenue by geographical region as follows:
−Removed: Net Sales Three months ended June 30, Six months ended June 30,
+Added: Net Sales Three months ended September 30, Nine months ended September 30,
2022 2021 2022 2021
16 unchanged sentences
• Level 3 Inputs - significant unobservable inputs for the asset or liability.
−Removed: Recurring Fair Value Measurements As of June 30, 2022
+Added: Recurring Fair Value Measurements As of September 30, 2022
Cash equivalents $ 9.3 $ — $ — $ 9.3
34 unchanged sentences
Recurring Level 3 Fair Value Measurements:
−Removed: As of June 30, 2022
+Added: As of September 30, 2022
As of December 31, 2021
6 unchanged sentences
ISK/USD forward exchange rate Discount rate net (1)
+Added: $ — 8.58 % $ — — %
Nord Pool swaps Discounted cash flows Quoted Nord Pool forward market Discount rate net (1)
9 unchanged sentences
The following table presents the fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis.
−Removed: For the three months ended June 30, 2022
+Added: For the three months ended September 30, 2022
Level 3 Assets Level 3 Liabilities
−Removed: LME forward financial sales contracts Nord Pool swaps LME forward financial sales contracts FX swaps Casthouse currency hedges
−Removed: Balance as of April 1, 2022 $ — $ — $ ( 16.7 ) $ — $ —
+Added: LME forward financial sales contracts LME forward financial sales contracts Casthouse currency hedges
+Added: Balance as of July 1, 2022 $ 1.6 $ ( 3.8 ) $ 0.0
Total realized/unrealized gains (losses)
2 unchanged sentences
Purchases — — —
−Removed: Sales — — — — —
Settlements — — —
Transfers into Level 3 (2)
−Removed: 1.6 — — — 0.0
Transfers out of Level 3 (3)
−Removed: Balance as of June 30, 2022
+Added: Balance as of September 30, 2022
$ 3.2 $ ( 2.3 ) $ 0.0
2 unchanged sentences
(1) Gains and losses are presented in the Consolidated Statement of Operations within the line item "Net gain (loss) on forward and derivative contracts."
−Removed: (2) Transfers into Level 3 due to contracts with applied discount rate entered into during the second quarter of 2022.
+Added: (2) Transfers into Level 3 due to contracts with applied discount rate entered into during the third quarter of 2022.
(3) Transfers out of Level 3 due to period of time remaining in derivative contract.
Level 3 Assets Level 3 Liabilities
−Removed: For the three months ended June 30, 2021
+Added: For the three months ended September 30, 2021
Nord Pool swaps LME forward financial sales contracts FX swaps
−Removed: Balance as of April 1, 2021 $ — $ ( 6.0 ) $ ( 0.2 )
+Added: Balance as of July 1, 2021 $ 1.5 $ ( 17.9 ) $ ( 0.4 )
Total realized/unrealized gains (losses)
5 unchanged sentences
Transfers into Level 3 (2)
−Removed: 1.5 ( 0.3 ) ( 0.2 )
Transfers out of Level 3 (3)
−Removed: Balance as of June 30, 2021
( 1.5 ) 11.0 —
+Added: Balance as of September 30, 2021
+Added: $ — ( 14.6 ) $ ( 0.9 )
Change in unrealized gains (losses) (1)
1 unchanged sentence
(1) Gains and losses are presented in the Consolidated Statement of Operations within the line item "Net gain (loss) on forward and derivative contracts."
−Removed: (2) Transfers into Level 3 due to contracts with applied discount rate entered into during the second quarter of 2021.
+Added: (2) Transfers into Level 3 due to contracts with applied discount rate entered into during the third quarter of 2021.
(3) Transfers out of Level 3 due to period of time remaining in derivative contract.
2 unchanged sentences
(amounts in millions, except share and per share amounts)
−Removed: For the six months ended June 30, 2022
+Added: For the nine months ended September 30, 2022
Level 3 Assets Level 3 Liabilities
3 unchanged sentences
Included in Net Income (1)
+Added: 1.6 — 5.3 — —
Purchases, sales, settlements
4 unchanged sentences
— ( 0.2 ) — 0.2 —
−Removed: Balance as of June 30, 2022
+Added: Balance as of September 30, 2022
$ 3.2 $ — $ ( 2.3 ) $ — $ 0.0
2 unchanged sentences
(1) Gains and losses are presented in the Consolidated Statement of Operations within the line item "Net gain (loss) on forward and derivative contracts."
−Removed: (2) Transfers into Level 3 due to contracts with applied discount rate entered into during the six months ended June 30, 2022.
+Added: (2) Transfers into Level 3 due to contracts with applied discount rate entered into during the nine months ended September 30, 2022.
(3) Transfers out of Level 3 due to period of time remaining in derivative contract.
Level 3 Assets Level 3 Liabilities
−Removed: For the six months ended June 30, 2021
+Added: For the nine months ended September 30, 2021
Nord Pool swaps LME forward financial sales contracts FX swaps
10 unchanged sentences
( 1.5 ) 11.5 ( 0.1 )
−Removed: Balance as of June 30, 2021
+Added: Balance as of September 30, 2021
$ — ( 14.6 ) $ ( 0.9 )
2 unchanged sentences
(1) Gains and losses are presented in the Consolidated Statement of Operations within the line item "Net gain (loss) on forward and derivative contracts."
−Removed: (2) Transfers into Level 3 due to contracts with applied discount rate entered into during the six months ended June 30, 2021.
+Added: (2) Transfers into Level 3 due to contracts with applied discount rate entered into during the nine months ended September 30, 2021.
(3) Transfers out of Level 3 due to period of time remaining in derivative contract.
−Removed: Our announcement on June 22, 2022 to curtail operations of the Hawesville smelter represented a significant adverse change in the extent and manner in which this smelter will be used, and we accordingly evaluated the Hawesville asset group for recoverability.
−Removed: As the carrying value of the Hawesville asset group was determined to not be recoverable based on the estimated undiscounted cash flows expected to be generated over the life of the asset group, we wrote the asset group down to its estimated fair value of $ 15.0 million.
CENTURY ALUMINUM COMPANY
1 unchanged sentence
(amounts in millions, except share and per share amounts)
+Added: Our announcement on June 22, 2022 to curtail operations of the Hawesville smelter represented a significant adverse change in the extent and manner in which this smelter will be used, and we accordingly evaluated the Hawesville asset group for recoverability.
+Added: As the carrying value of the Hawesville asset group was determined to not be recoverable based on the estimated undiscounted cash flows expected to be generated over the life of the asset group, we wrote the asset group down to its estimated fair value of $ 15.0 million.
The following table presents the inputs for this non-recurring fair value measurements categorized within Level 3 of the fair value hierarchy, along with information regarding the significant unobservable inputs used:
Non-Recurring Level 3 Fair Value Measurements:
−Removed: As of June 30, 2022
+Added: As of September 30, 2022
Asset / Liability Valuation Technique Significant Unobservable Input Fair Value Value/Range of Unobservable Input
7 unchanged sentences
(amounts in millions, except share and per share amounts)
−Removed: For the three months ended June 30,
+Added: For the three months ended September 30,
Net Income (Loss) Shares (in millions)
7 unchanged sentences
Net income (loss) allocated to common stockholders with assumed conversion $ 41.9 97.3 $ 0.43 $ ( 52.4 ) 90.1 $ ( 0.58 )
−Removed: For the six months ended June 30,
+Added: For the nine months ended September 30,
Net Income (Loss) Shares (in millions)
9 unchanged sentences
Three months ended
−Removed: June 30, Six months ended June 30,
+Added: September 30, Nine months ended September 30,
Securities excluded from the calculation of diluted EPS (in millions) (1) :
8 unchanged sentences
Shareholders’ Equity
−Removed: As of June 30, 2022 and December 31, 2021, we had 195,000,000 shares of common stock, $ 0.01 par value per share, authorized under our Restated Certificate of Incorporation, of which 98,456,895 shares were issued and 91,270,374 shares were outstanding at June 30, 2022, and 98,418,132 shares were issued and 91,231,611 shares were outstanding at December 31, 2021.
+Added: As of September 30, 2022 and December 31, 2021, we had 195,000,000 shares of common stock, $ 0.01 par value per share, authorized under our Restated Certificate of Incorporation, of which 98,533,750 shares were issued and 91,347,229 shares were outstanding at September 30, 2022, and 98,418,132 shares were issued and 91,231,611 shares were outstanding at December 31, 2021.
The rights, preferences and privileges of holders of our common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of our preferred stock which are currently outstanding, including our Series A Convertible Preferred Stock, or which we may designate and issue in the future.
Preferred Stock
−Removed: As of June 30, 2022 and December 31, 2021, we had 5,000,000 shares of preferred stock, $ 0.01 par value per share, authorized under our Restated Certificate of Incorporation.
+Added: As of September 30, 2022 and December 31, 2021, we had 5,000,000 shares of preferred stock, $ 0.01 par value per share, authorized under our Restated Certificate of Incorporation.
Our Board of Directors may issue preferred stock in one or more series and determine for each series the dividend rights, conversion rights, voting rights, redemption rights, liquidating preferences, sinking fund terms and the number of shares constituting that series, as well as the designation thereof.
5 unchanged sentences
Glencore holds all of the issued and outstanding Series A Convertible Preferred Stock.
−Removed: At June 30, 2022 and December 31, 2021, there were 58,376 shares and 58,542 shares of Series A Convertible Preferred Stock outstanding, respectively.
+Added: At September 30, 2022 and December 31, 2021, there were 58,046 shares and 58,542 shares of Series A Convertible Preferred Stock outstanding, respectively.
The issuance of common stock under our stock incentive programs, debt exchange transactions and any stock offering that excludes Glencore participation triggers anti-dilution provisions of the preferred stock agreement and results in the automatic conversion of Series A Convertible Preferred Stock shares into shares of common stock.
The conversion ratio of preferred to common shares is 100 shares of common stock for each share of preferred stock.
−Removed: The Common and Preferred Stock table below contains additional information about preferred stock conversions during the six months ended June 30, 2022 and June 30, 2021.
+Added: The Common and Preferred Stock table below contains additional information about preferred stock conversions during the nine months ended September 30, 2022 and September 30, 2021.
Preferred stock Common stock
5 unchanged sentences
Issuance for share-based compensation plans — — 66,001
−Removed: Ending balance as of June 30, 2022
+Added: Ending balance as of September 30, 2022
58,046 7,186,521 91,347,229
3 unchanged sentences
Issuance for share-based compensation plans — — 41,856
−Removed: Ending balance as of June 30, 2021
+Added: Ending balance as of September 30, 2021
63,274 7,186,521 90,129,118
1 unchanged sentence
In 2011, our Board of Directors authorized a $ 60.0 million common stock repurchase program and during the first quarter of 2015, our Board of Directors increased the size of the program by $ 70.0 million.
−Removed: Under the program, Century is authorized to repurchase up to $ 130.0 million of our outstanding shares of common stock, from time to time, on the open market at prevailing market prices, in block trades or otherwise.
−Removed: The timing and amount of any shares repurchased will be determined by
+Added: Under the program, Century is authorized to repurchase up to $ 130.0 million of our outstanding shares of common stock, from time to time, on the open market at
CENTURY ALUMINUM COMPANY
1 unchanged sentence
(amounts in millions, except share and per share amounts)
−Removed: our management based on its evaluation of market conditions, the trading price of our common stock and other factors.
+Added: prevailing market prices, in block trades or otherwise.
+Added: The timing and amount of any shares repurchased will be determined by our management based on its evaluation of market conditions, the trading price of our common stock and other factors.
The stock repurchase program may be suspended or discontinued at any time.
4 unchanged sentences
We have repurchased 7,186,521 shares of common stock under the program for an aggregate purchase price of $ 86.3 million.
−Removed: We have made no repurchases since April 2015 and we have $ 43.7 million remaining under the repurchase program authorization as of June 30, 2022.
−Removed: For the three months ended June 30, 2022 and June 30, 2021, we recorded an income tax expense of $ 42.3 million a nd an income tax benefit of $ 48.3 million, respectively, and for the six months ended June 30, 2022 and June 30, 2021, we recorded an income tax expense of $ 44.0 million and an income tax benefit of $ 50.6 million, respectively.
+Added: We have made no repurchases since April 2015 and we have $ 43.7 million remaining under the repurchase program authorization as of September 30, 2022.
+Added: For the three months ended September 30, 2022 and September 30, 2021, we recorded an income tax expense of $ 20.6 million a nd $ 6.8 million, respectively, and for the nine months ended September 30, 2022 and September 30, 2021, we recorded an income tax expense of $ 64.6 million and an income tax benefit of $ 43.8 million, respectively.
The change is primarily due to improved operational results over the comparison period.
1 unchanged sentence
The application of the accounting requirements for income taxes in interim periods, after consideration of our valuation allowance on domestic losses, causes a significant variation in the typical relationship between income tax expense/benefit and pre-tax accounting income/loss as reported on the consolidated statement of operations.
−Removed: As of June 30, 2022, all of Century's U.S.
+Added: As of September 30, 2022, all of Century's U.S.
and certain foreign deferred tax assets, net of deferred tax liabilities, continue to be subject to a valuation allowance.
+Added: The Inflation Reduction Act of 2022 was signed into law on August 16, 2022, and the CHIPS and Science Act of 2022 was signed into law on August 9, 2022.
+Added: These laws implement new tax provisions, primarily a 15% corporate alternative minimum tax and a nondeductible 1% excise tax on the fair market value of stock repurchased by publicly traded corporations.
+Added: As of September 30, 2022, we do not anticipate any material impact of these provisions which are effective January 1, 2023.
+Added: The two acts also provide various tax credits, several of which are transferable or refundable, for the investment in or production of clean-energy effective January 1, 2023.
+Added: Century will continue to evaluate potential tax benefits available under the acts as additional guidance is issued in future periods.
Inventories consist of the following:
−Removed: June 30, 2022 December 31, 2021
+Added: September 30, 2022 December 31, 2021
Raw materials $ 62.7 $ 132.9
7 unchanged sentences
(amounts in millions, except share and per share amounts)
−Removed: June 30, 2022 December 31, 2021
+Added: September 30, 2022 December 31, 2021
Debt classified as current liabilities:
3 unchanged sentences
Debt classified as non-current liabilities:
−Removed: Grundartangi casthouse facility, net of financing fees of $ 0.6 million at June 30, 2022 (4)
−Removed: 7.5 % senior secured notes due April 1, 2028, net of financing fees of $ 3.8 million at June 30, 2022, interest payable semiannually
−Removed: 2.75 % convertible senior notes due May 1, 2028, net of financing fees of $ 2.1 million at June 30, 2022, interest payable semiannually
+Added: Grundartangi casthouse facility, net of financing fees of $ 0.6 million at September 30, 2022 (4)
+Added: 7.5 % senior secured notes due April 1, 2028, net of financing fees of $ 3.6 million at September 30, 2022, interest payable semiannually
+Added: 2.75 % convertible senior notes due May 1, 2028, net of financing fees of $ 2.0 million at September 30, 2022, interest payable semiannually
Total $ 491.4 $ 451.2
(1) The IRBs are classified as current liabilities because they are remarketed weekly and could be required to be repaid upon demand if there is a failed remarketing.
−Removed: The IRBs interest rate at June 30, 2022 was 1.05 %.
−Removed: (2) We have elected to incur interest at a base rate plus applicable margin as defined within the agreement.
−Removed: The interest rate at June 30, 2022 was 5.50 %.
−Removed: (3) We have elected to incur interest at LIBOR plus applicable margin as defined within the agreement.
−Removed: The interest rate at June 30, 2022 was 4.68 %.
+Added: The IRBs interest rate at September 30, 2022 was 2.60 %.
(2) We incur interest at a base rate plus applicable margin as defined within the agreement.
−Removed: The interest rate at June 30, 2022 was 4.53 %.
+Added: The interest rate at September 30, 2022 was 6.75 %.
+Added: (3) We incur interest at LIBOR plus applicable margin as defined within the agreement.
+Added: The interest rate at September 30, 2022 wa s 6.62 %.
+Added: (4) We incur interest at a base rate plus applicable margin as defined within the agreement.
+Added: The interest rate at September 30, 2022 was 6.03 %.
7.5 % Senior Secured Notes due 2028
3 unchanged sentences
The 2028 Notes are senior secured obligations of Century, ranking equally in right of payment with all existing and future senior indebtedness of Century, but effectively senior to unsecured debt to the extent of the value of collateral.
−Removed: As of June 30, 2022, the total estimated fair value of the 2028 Notes was $ 225.7 million.
+Added: As of September 30, 2022, the total estimated fair value of the 2028 Notes was $ 223.8 million.
Although we use quoted market prices for identical debt instruments, the markets on which they trade are not considered to be active and are therefore considered Level 2 fair value measurements.
6 unchanged sentences
The conversion rate and conversion price are subject to customary adjustments under certain circumstances in accordance with the terms of the indenture.
−Removed: As of June 30, 2022, the conversion rate remains unchanged.
+Added: As of September 30, 2022, the conversion rate remains unchanged.
The Convertible Notes are the Company’s senior unsecured obligations and rank senior in right of payment to any of the Company’s indebtedness that is expressly subordinated in right of payment to the Convertible Notes;
6 unchanged sentences
and structurally junior to all indebtedness and other liabilities (including trade payables) of the Company’s subsidiaries.
−Removed: As of June 30, 2022, the if-converted value of the Convertible Notes does not exceed the outstanding principal amount.
−Removed: As of June 30, 2022, the total estimated fair value of the Convertible Notes was $ 66.2 million.
+Added: As of September 30, 2022, the if-converted value of the Convertible Notes does not exceed the outstanding principal amount.
+Added: As of September 30, 2022, the total estimated fair value of the Convertible Notes was $ 54.3 million.
Although we use quoted market prices for identical debt instruments, the markets on which they trade are not considered to be active and are therefore considered Level 2 fair value measurements.
7 unchanged sentences
revolving credit facility reduce our borrowing availability on a dollar-for-dollar basis.
−Removed: At June 30, 2022, there were $ 15.0 million in outstanding borrowings and $ 84.4 million of outstanding letters of credit issued under our U.S.
+Added: At September 30, 2022, there were $ 63.5 million in outstanding borrowings and $ 39.9 million of outstanding letters of credit issued under our U.S.
revolving credit facility.
3 unchanged sentences
revolving credit facility:
−Removed: June 30, 2022
+Added: September 30, 2022
Credit facility maximum amount $ 250.0
5 unchanged sentences
Our wholly-owned subsidiary, Nordural Grundartangi ehf ("Grundartangi"), has entered into a $ 80.0 million revolving credit facility agreement with Landsbankinn hf., dated November 2013, as amended (the "Iceland revolving credit facility").
+Added: On September 28, 2022, we further amended the Iceland revolving credit facility and increased the facility amount to $ 100.0 million in the aggregate.
Under the terms of the Iceland revolving credit facility, when Grundartangi borrows funds it will designate a repayment date, which may be any date prior to the maturity of the Iceland revolving credit facility.
−Removed: At June 30, 2022, there were $ 35.0 million in outstanding borrowings under our Iceland revolving credit facility.
+Added: At September 30, 2022, there were $ 50.0 million in outstanding borrowings under our Iceland revolving credit facility.
The Iceland revolving credit facility has a term through November 2024.
Status of our Iceland revolving credit facility:
−Removed: June 30, 2022
+Added: September 30, 2022
Credit facility maximum amount $ 100.0
6 unchanged sentences
Under the Casthouse Facility, repayments of principal amounts will be made in equal quarterly installments equal to 1.739 % of the principal amount, the first payment occurring in July 2024, with the remaining 60 % of the principal amount to be paid no later than the termination date in December 2029.
−Removed: As of June 30, 2022, there were $ 40.0 million in outstanding borrowings under this Casthouse Facility.
−Removed: Surety Bond Facility
+Added: As of September 30, 2022, there were $ 40.0 million in outstanding borrowings under the Casthouse Facility.
CENTURY ALUMINUM COMPANY
1 unchanged sentence
(amounts in millions, except share and per share amounts)
+Added: Surety Bond Facility
As part of our normal business operations, we are required to provide surety bonds or issue letters of credit in certain states in which we do business as collateral for certain workers' compensation obligations.
In June 2022, we entered into a surety bond facility with an insurance company to provide such bonds when applicable.
−Removed: As of June 30, 2022, we had issued surety bonds totaling $ 6.6 million.
+Added: As of September 30, 2022, we had issued surety bonds totaling $ 6.6 million.
As we had previously guaranteed our workers' compensation obligations through issuance of letters of credit against our revolving credit facility, the surety bond issuance increases credit facility availability.
+Added: Iceland Term Facility
+Added: Our wholly-owned subsidiary, Grundartangi, has entered into a Term Facility Agreement with Arion Bank hf, dated September 2022, (the "Iceland Term Facility") to provide for borrowings up to € 13.6 million.
+Added: Repayments of principal amounts will be made in equal monthly installments, the first payment occurring in February 2023, with the remainder of the principal amount to be paid no later than the termination date in January 2024.
+Added: Borrowings under the Iceland Term Facility will bear interest at a rate equal to 3.2 % plus EUR EURIBOR 1 month as published at any time by the European Money Markets Institute.
+Added: As of September 30, 2022, there were no outstanding borrowings under the Iceland Term Facility.
Commitments and Contingencies
13 unchanged sentences
CAWV has agreed to pay the remaining amounts under the settlement agreement in annual increments of $ 2.0 million for nine years .
−Removed: As of June 30, 2022, $ 2.0 million is recorded in other current liabilities and $ 6.5 million is recorded in other liabilities.
+Added: As of September 30, 2022, $ 2.0 million is recorded in other current liabilities and $ 4.7 million is recorded in other liabilities.
+Added: CENTURY ALUMINUM COMPANY
+Added: Condensed Notes to the Consolidated Financial Statements (continued)
+Added: (amounts in millions, except share and per share amounts)
PBGC Settlement
−Removed: In 2013, we entered into a settlement agreement with the Pension Benefit Guarantee Corporation (the "PBGC") regarding an alleged "cessation of operations" at our Ravenswood f acility (the "PBGC Settlement Agreement").
+Added: In 2013, we entered into a settlement agreement with the Pension Benefit Guaranty Corporation (the "PBGC") regarding an alleged "cessation of operations" at our Ravenswood f acility (the "PBGC Settlement Agreement").
Pursuant to the terms of the PBGC Settlement Agreement, we agreed to make additional contributions (above any minimum required contributions) to our defined benefit pension plans totaling approximately $ 17.4 million.
Under certain circumstances, in periods of lower primary aluminum prices relative to our cost of operations, we were able to defer one or more of these payments, provided that we provide the PBGC with acceptable security for such deferred payments.
−Removed: We did no t make any contributions for the three month periods ended June 30, 2022, or 2021.
+Added: We did no t make any contributions for the three month periods ended September 30, 2022, or 2021.
We historically elected to defer certain payments under the PBGC Settlement Agreement and provided the PBGC with the appropri ate security.
In October 2021, we amended the PBGC Settlement Agreement such that we removed the deferral mechanism and agreed to contribute approximately $ 2.4 million per year to our defined benefit pension plans for a total of approximately $ 9.6 million, over the next four years beginning on November 30, 2022 and ending on November 30, 2025, subject to acceleration if certain terms and conditions are met in such amendment.
−Removed: CENTURY ALUMINUM COMPANY
−Removed: Condensed Notes to the Consolidated Financial Statements (continued)
−Removed: (amounts in millions, except share and per share amounts)
Power Commitments and Contingencies
6 unchanged sentences
Century is in discussions with other companies, currently authorized as MISO Market Participants, to replace EDF and expects to have a replacement Market Participant in place prior to the expiration of the contract with EDF.
+Added: In connection with the temporary curtailment of production at Hawesville, energy use at the smelter has been significantly reduced.
+Added: However, such reduction in energy use does not reduce Hawesville’s capacity payment obligation to MISO which extends through May 2023.
Sebree has a power supply arrangement with Kenergy and EDF which provides market-based power to the Sebree smelter.
6 unchanged sentences
Century Aluminum of South Carolina, Inc.
−Removed: has a power supply agreement with Santee Cooper that has an effective term from April 1, 2021 and runs through December 2023.
+Added: has a power supply agreement with Santee Cooper that has an effective term from April 1, 2021 through December 2023.
Under this power supply agreement, 100 % of Mt.
Holly’s electrical power requirements are supplied from Santee Cooper’s generation at cost of service based rates.
−Removed: The contract is expected to provide sufficient energy to allow Mt.
−Removed: Holly to increase its production to 75 % of full production capacity.
+Added: The contract provides sufficient energy to allow Mt.
+Added: Holly to produce at 75 % of full production capacity.
+Added: CENTURY ALUMINUM COMPANY
+Added: Condensed Notes to the Consolidated Financial Statements (continued)
+Added: (amounts in millions, except share and per share amounts)
Grundartangi has power purchase agreements for approximately 545 MW with HS Orka hf ("HS"), Landsvirkjun and Orkuveita Reykjavikur ("OR") to provide power to its Grundartangi smelter.
3 unchanged sentences
Under the terms of the extension, Landsvirkjun will continue to supply power to Grundartangi from January 1, 2024 through December 31, 2026 and will increase the existing contract from 161 MW to 182 MW over time to provide the necessary flexibility to support the most recent capacity creep requirements and future growth opportunities for value-added products at the Grundartangi plant, including the Grundartangi casthouse project.
−Removed: Under the terms of this extension, the majority of power supplied by Landsvirkjun will be priced at rates linked to the Nord Pool power market through December 2023 and a small portion of power at a fixed price.
−Removed: Thereafter, beginning January 1, 2024 through December 31, 2026 this agreement provides for only fixed rates.
+Added: In September 2022, this agreement was amended to provide for 42 MW at a fixed price and 119 MW at rates linked to Nord Pool plus transmission through 2023 and beginning January 1, 2024 through December 31, 2026, this agreement allows for fixed rates plus a small variable rate portion of the full 182 MW.
Grundartangi also has a 25 MW power purchase agreement with Landsvirkjun at LME-based variable rates.
7 unchanged sentences
The current labor agreement is effective through November 30, 2022.
−Removed: CENTURY ALUMINUM COMPANY
−Removed: Condensed Notes to the Consolidated Financial Statements (continued)
−Removed: (amounts in millions, except share and per share amounts)
+Added: On September 22, 2022, a new labor agreement was reached which will go into effect on December 1, 2022, and expire on May 31, 2024.
Approximately 42 % of our U.S.
−Removed: based work force is represented by USW.
+Added: based work force is represented by USW through separately negotiated labor agreements for each facility.
The labor agreement for Hawesville employees is effective through April 1, 2026.
6 unchanged sentences
This contingent obligation consists of the aggregate payments made to Big Rivers by the third party on CAKY’s behalf in excess of the agreed upon base amount under the long-term cost-based power contract with Kenergy.
−Removed: As of June 30, 2022, the principal and accrued interest for the contingent obligation was $ 28.8 million, which was fully offset by a derivative asset.
+Added: As of September 30, 2022, the principal and accrued interest for the contingent obligation was $ 29.1 million, which was fully offset by a derivative asset.
We may be required to make installment payments for the contingent obligation in the future.
These payments are contingent based on the LME price of primary aluminum and the level of Hawesville’s operations.
−Removed: As of June 30, 2022, the LME forward market prices do not exceed the threshold for payment.
+Added: As of September 30, 2022, the LME forward market prices do not exceed the threshold for payment.
In addition, based on the current level of Hawesville's operations, including the temporary curtailment, we believe that we will not be required to make payments on the contingent obligation during the term of the agreement, which expires in 2028.
There can be no assurance that circumstances will not change thus accelerating the timing of such payments.
+Added: CENTURY ALUMINUM COMPANY
+Added: Condensed Notes to the Consolidated Financial Statements (continued)
+Added: (amounts in millions, except share and per share amounts)
Components of Accumulated Other Comprehensive Loss
Components of AOCL:
−Removed: June 30, 2022
+Added: September 30, 2022
December 31, 2021
8 unchanged sentences
(1) The allocation of the income tax effect to the components of other comprehensive loss is as follows:
−Removed: June 30, 2022
+Added: September 30, 2022
December 31, 2021
6 unchanged sentences
Defined benefit plan and other postretirement liabilities Unrealized gain (loss) on financial instruments Total, net of tax
−Removed: Balance, April 1, 2022 $ ( 83.4 ) $ 1.7 $ ( 81.7 )
+Added: Balance, July 1, 2022 $ ( 82.6 ) $ 1.7 $ ( 80.9 )
Net amount reclassified to net income (loss) ( 7.3 ) 0.0 ( 7.3 )
−Removed: Balance, June 30, 2022
+Added: Balance, September 30, 2022
$ ( 89.9 ) $ 1.7 $ ( 88.2 )
−Removed: Balance, April 1, 2021 $ ( 119.3 ) $ 1.8 $ ( 117.5 )
−Removed: Net amount reclassified to net income 1.2 ( 0.1 ) 1.1
−Removed: Balance, June 30, 2021
+Added: Balance, July 1, 2021 $ ( 118.1 ) $ 1.7 $ ( 116.4 )
+Added: Net amount reclassified to net income (loss) 1.2 0.0 1.2
+Added: Balance, September 30, 2021
$ ( 116.9 ) $ 1.7 $ ( 115.2 )
Balance, December 31, 2021 $ ( 84.0 ) $ 1.7 $ ( 82.3 )
−Removed: Net amount reclassified to net loss 1.4 0.0 1.4
−Removed: Balance, June 30, 2022
+Added: Net amount reclassified to net income (loss) ( 5.9 ) 0.0 ( 5.9 )
+Added: Balance, September 30, 2022
$ ( 89.9 ) $ 1.7 $ ( 88.2 )
1 unchanged sentence
Net amount reclassified to net income (loss) 3.7 ( 0.1 ) 3.6
−Removed: Balance, June 30, 2021
+Added: Balance, September 30, 2021
$ ( 116.9 ) $ 1.7 $ ( 115.2 )
Reclassifications out of AOCL were included in the consolidated statements of operations as follows:
−Removed: Three months ended June 30,
−Removed: Six months ended June 30,
+Added: Three months ended September 30,
+Added: Nine months ended
+Added: September 30,
AOCL Components Location 2022 2021 2022 2021
Defined benefit plan and other postretirement liabilities Cost of goods sold $ 0.4 $ 0.7 $ 1.3 $ 2.2
+Added: Other income (expense) - net ( 8.0 ) — ( 8.0 ) —
Selling, general and administrative expenses 0.2 0.2 0.5 0.6
−Removed: Other operating expense, net 0.3 0.4 0.5 0.8
+Added: Other operating (income) expense - net 0.2 0.4 0.7 1.2
Income tax effect ( 0.1 ) ( 0.1 ) ( 0.3 ) ( 0.3 )
8 unchanged sentences
Pension Benefits
−Removed: Three months ended June 30, Six months ended June 30,
+Added: Three months ended September 30, Nine months ended September 30,
2022 2021 2022 2021
4 unchanged sentences
Amortization of net loss 0.9 1.5 2.6 4.5
−Removed: Net periodic benefit cost $ ( 1.2 ) $ ( 0.7 ) $ ( 2.7 ) $ ( 0.9 )
+Added: Net periodic benefit cost (income) $ ( 1.3 ) $ ( 0.5 ) $ ( 4.0 ) $ ( 1.4 )
Other Postretirement Benefits
−Removed: Three months ended June 30, Six months ended June 30,
+Added: Three months ended September 30, Nine months ended September 30,
2022 2021 2022 2021
3 unchanged sentences
Amortization of net loss 0.2 0.6 1.0 1.7
−Removed: Net periodic benefit cost $ 0.4 $ 0.3 $ 1.2 $ 0.8
−Removed: As of June 30, 2022, we had an open position of 109,566 tonnes related to LME forward financial sales contracts to fix the forward LME aluminum price.
+Added: Curtailment gain, net ( 8.0 ) — ( 8.0 ) —
+Added: Net periodic benefit cost (income) $ ( 7.2 ) $ 0.5 $ ( 6.0 ) $ 1.3
+Added: We measure our obligations under our defined benefit plan and other post retirement benefits annually or more frequently at interim periods when a significant event occurs.
+Added: ASC 715, Compensation-Retirement Benefits, defines a curtailment as an event that significantly reduces the expected years of future service of present employees or eliminates defined benefits for some or all of a significant number of employees.
+Added: In the third quarter, we took actions to re-measure certain other postretirement benefits triggered by the Hawesville smelter curtailment, leading to a non-cash OPEB curtailment gain, net totaling $ 8.0 million for the three and nine months ended September 30, 2022.
+Added: As of September 30, 2022, we had an open position of 148,416 tonnes related to LME forward financial sales contracts to fix the forward LME aluminum price.
These contracts are expected to settle monthly through December 2024.
2 unchanged sentences
We have also entered into financial contracts with various counterparties to offset fixed price sales arrangements with certain of our customers ("fixed for floating swaps") to remain exposed to the LME and MWP aluminum prices.
−Removed: As of June 30, 2022, we had 3,277 tonnes related to fixed for floating swaps that will settle monthly through February 2023.
+Added: As of September 30, 2022, we had 1,014 tonnes related to fixed for floating swaps that will settle monthly through February 2023.
We have entered into financial contracts to hedge a portion of Grundartangi's exposure to the Nord Pool power market (“Nord Pool power price swaps”).
−Removed: As of June 30, 2022, we had an open position of 1,536,700 MWh related to the Nord Pool power price swaps.
−Removed: The Nord Pool power price swaps are expected to settle monthly through December 2023.
+Added: All of our Nord Pool power price swaps will cash settle monthly through December 2023.
Because the Nord Pool power price swaps are settled in Euros, we have entered into financial contracts to hedge the risk of fluctuations associated with the Euro ("FX swaps").
−Removed: As of June 30, 2022, we had an open position related to the FX swaps of € 43.1 million that will settle monthly through December 2023.
−Removed: We have entered into financial contracts to fix a portion of our exposure to the Indiana Hub power market at our Kentucky plants ("Indiana Hub power price swaps").
−Removed: As of June 30, 2022, we had an open position of 263,520 MWh.
−Removed: The Indiana Hub power price swaps are expected to settle monthly through December 2023.
−Removed: During the second quarter of 2022, we entered into forward contracts to hedge the risk of fluctuations associated with the Icelandic Krona (ISK) and Euro for contracts related to the construction of the Grundartangi casthouse denominated in these currencies ("casthouse currency hedges").
−Removed: As of June 30, 2022, we had an open position related to the ISK casthouse swaps of $ 58.0 million that will settle monthly through July 2023.
−Removed: As of June 30, 2022, we had an open position related to the Euro casthouse swaps of $ 14.8 million that will settle monthly through February 2024.
−Removed: Our agreements with derivative counterparties contain certain provisions requiring collateral to be posted in the event the market value of our position exceeds the margin threshold limit of our master agreement with the counterparty.
−Removed: As of June 30,
+Added: As of September 30, 2022, we had an open position related to the FX swaps of € 37.9 million that will settle monthly through December 2023.
+Added: During the third quarter of 2022, we entered certain floating Nord Pool financial contracts to unwind a portion of our fixed contract position as a result of the recent power agreement amendment, making us predominantly hedged against Nord Pool power price fluctuations during 2023.
+Added: As of September 30, 2022, we had an open net position of 1,239,497 MWh related to the Nord Pool power price swaps.
+Added: The pricing relationship between the fixed and floating Nord Pool contracts created a realized gain of $ 16.0 million, which we recognized for the three and nine months ended September 30, 2022.
CENTURY ALUMINUM COMPANY
1 unchanged sentence
(amounts in millions, except share and per share amounts)
−Removed: 2022, and December 31, 2021, the Company had recorded restricted cash of $ 1.3 million and $ 8.6 million, respectively, as collateral related to open derivative contracts under the master arrangements with our counterparties.
−Removed: The following table sets forth the Company's derivative assets and liabilities that were accounted for at fair value and not designated as cash flow hedges as of June 30, 2022 and December 31, 2021, respectively:
+Added: We have entered into financial contracts to fix a portion of our exposure to the Indiana Hub power market at our Kentucky plants ("Indiana Hub power price swaps").
+Added: As of September 30, 2022, we had an open position of 219,360 MWh.
+Added: The Indiana Hub power price swaps are expected to settle monthly through December 2023.
+Added: We have entered into forward contracts to hedge the risk of fluctuations associated with the Icelandic Krona (ISK) and Euro for contracts related to the construction of the Grundartangi casthouse denominated in these currencies ("casthouse currency hedges").
+Added: As of September 30, 2022, we had an open position related to the ISK casthouse swaps of $ 52.0 million that will settle monthly through July 2023.
+Added: As of September 30, 2022, we had an open position related to the Euro casthouse swaps of $ 13.8 million that will settle monthly through February 2024.
+Added: Our agreements with derivative counterparties contain certain provisions requiring collateral to be posted in the event the market value of our position exceeds the margin threshold limit of our master agreement with the counterparty.
+Added: As of September 30, 2022 and December 31, 2021, the Company had recorded restricted cash of $ 0.0 million and $ 8.6 million, respectively, as collateral related to open derivative contracts under the master arrangements with our counterparties.
+Added: The following table sets forth the Company's derivative assets and liabilities that were accounted for at fair value and not designated as cash flow hedges as of September 30, 2022 and December 31, 2021, respectively:
Asset Fair Value
−Removed: June 30, 2022 December 31, 2021
+Added: September 30, 2022 December 31, 2021
Commodity contracts (1)
3 unchanged sentences
Liability Fair Value
−Removed: June 30, 2022 December 31, 2021
+Added: September 30, 2022 December 31, 2021
Commodity contracts (1)
3 unchanged sentences
(1) Commodity contracts reflect our outstanding LME forward financial sales contracts, MWP forward financial sales contracts, fixed for floating swaps, Nord Pool power price swaps, and Indiana Hub power price swaps.
−Removed: At June 30, 2022, $ 6.8 million of Due to affiliates and $ 9.4 million of Due to affiliates - less current portion was related to commodity contract liabilities with Glencore.
−Removed: At December 31, 2021, $ 17.1 million of Due to affiliates, and $ 21.9 million of Due to affiliates - less current portion was related to commodity contract assets and liabilities with Glencore.
+Added: At September 30, 2022, $ 0.5 million of Due to affiliates, $ 4.5 million of Due to affiliates - less current portion, $ 0.8 million of Due from affiliates, and $ 0.2 million of Due from affiliates - less current portion were related to commodity contracts with Glencore.
+Added: At December 31, 2021, $ 17.1 million of Due to affiliates, and $ 21.9 million of Due to affiliates - less current portion were related to commodity contract liabilities with Glencore.
(2) Foreign exchange contracts reflect our outstanding FX swaps and the casthouse currency hedges.
The following table summarizes the net gain (loss) on forward and derivative contracts:
−Removed: Three months ended June 30,
−Removed: Six months ended June 30,
+Added: Three months ended September 30,
+Added: Nine months ended September 30,
2022 2021 2022 2021
3 unchanged sentences
Total $ 112.6 $ ( 77.0 ) $ 287.7 $ ( 238.4 )
−Removed: (1) For the three months ended June 30, 2022, $ 65.2 million of the net gain was with Glencore, and for the three months ended June 30, 2021, $ 28.7 million of the net loss was with Glencore.
−Removed: For the six months ended June 30, 2022, $ 6.3 million of the net gain was with Glencore, and for the six months ended June 30, 2021, $ 53.5 million of the net loss was with Glencore.
+Added: (1) For the three months ended September 30, 2022, $ 13.1 million of the net gain was with Glencore, and for the three months ended September 30, 2021, $ 26.3 million of the net loss was with Glencore.
+Added: For the nine months ended
+Added: CENTURY ALUMINUM COMPANY
+Added: Condensed Notes to the Consolidated Financial Statements (continued)
+Added: (amounts in millions, except share and per share amounts)
+Added: September 30, 2022, $ 19.4 million of the net gain was with Glencore, and for the nine months ended September 30, 2021, $ 79.8 million of the net loss was with Glencore.
Subsequent Events
−Removed: On August 3, 2022, our wholly owned subsidiary, Mt.
−Removed: Holly Commerce Park LLC, entered into a binding agreement, subject to ordinary course conditions, to sell approximately 133 acres of land for $ 30.0 million.
−Removed: We previously formed the commerce park, located near our Mt.
−Removed: Holly smelter, to develop excess land at the site and to assist the county with bringing additional business and commerce to the area.
+Added: On October 10, 2022, Grundartangi borrowed € 13.6 million on the Iceland Term Facility.
+Added: As previously disclosed, our wholly owned subsidiary, Mt.
+Added: Holly Commerce Park LLC, entered into a binding agreement on August 3, 2022, subject to ordinary course conditions, to sell approximately 133 acres of land.
+Added: This agreement was terminated on October 28, 2022.
FORWARD-LOOKING STATEMENTS
5 unchanged sentences
• Our assessment of the alum inum market and aluminum prices (including premiums);
−Removed: • Our assessment of alumina pricing, the outlook for when energy prices, both in the United States and Europe, may return to more normalized levels, costs associated with our other key raw materials, including supply and availability of key raw materials, including natural gas;
+Added: • Our assessment of alumina pricing, the outlook on when energy prices, both in the United States and Europe, may return to more normalized levels, costs associated with our other key raw materials and supply and availability of those key raw materials, including power (and related natural gas and coal), and the likelihood and extent of any power curtailments;
+Added: • Our assessment of power prices and availability for our U.S.
+Added: and Vlissingen operations;
• The impact of the COVID-19 pandemic, and governmental guidance and regulations aimed at addressing the pandemic, including any possible impact on our b usiness, operations, financial condition, results of operation, global supply chains or workforce;
6 unchanged sentences
Holly, including the timing, costs and benefits associated with this restart project;
−Removed: • Our plans with regards to the timing of any restart of our Hawesville production, including costs associated with any such restart;
−Removed: • Our plans and expectations with regards to the Grundartangi casthouse project, including our expectations as to the costs and benefits associated with the Grundartangi casthouse project;
−Removed: • Our ability to successfully obtain and retain competitive power arrangements for our operations;
+Added: • Our plans with regards to future operations of our Hawesville smelter, including our expectations as to the timing, costs and benefits associated with restarting curtailed production;
+Added: • Our plans and expectations with regards to the Grundartangi casthouse project, including our expectations as to the timing, costs and benefits associated with the Grundartangi casthouse project;
+Added: • Our ability to successfully obtain and/or retain competitive power arrangements for our operations;
• The impact of Section 232 relief, including tariffs or other trade remedies, the extent to which any such remedies may be changed, including through exclusions or exemptions, and the duration of any trade remedy;
11 unchanged sentences
Where we express an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis.
−Removed: However, our forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from future results expressed, projected or implied by those forward-looking statements.
−Removed: Important factors that could cause actual results and
−Removed: events to differ from those described in such forward-looking statements can be found in the risk factors and forward-looking statements cautionary language contained in our Annual Report on Form 10-K, quarterly reports on Form 10-Q and in other filings made with the SEC.
+Added: However, our forward-looking statements are based on current expectations and
+Added: assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from future results expressed, projected or implied by those forward-looking statements.
+Added: Important factors that could cause actual results and events to differ from those described in such forward-looking statements can be found in the risk factors and forward-looking statements cautionary language contained in our Annual Report on Form 10-K, quarterly reports on Form 10-Q and in other filings made with the SEC.
Although we have attempted to identify those material factors that could cause actual results or events to differ from those described in such forward-looking statements, there may be other factors that could cause actual results or events to differ from those anticipated, estimated or intended.
3 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.