Delaware
(State or other Jurisdiction of Incorporation or Organization)
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13-3070826
(IRS Employer Identification No.)
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2511 Garden Road
Building A, Suite 200
Monterey, California
(Address of principal executive offices)
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93940
(Zip Code)
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Large Accelerated Filer
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x
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Accelerated Filer
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o
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Non-Accelerated Filer
(Do not check if a smaller reporting company)
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o
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Smaller Reporting Company
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o
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Page
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PART I – FINANCIAL INFORMATION
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1
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4
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38
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51
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53
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PART II – OTHER INFORMATION
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54
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54
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55
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56
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CENTURY ALUMINUM COMPANY
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||||||||
CONSOLIDATED BALANCE SHEETS
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||||||||
(Dollars in thousands, except share data)
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||||||||
(Unaudited)
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||||||||
June 30,
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December 31,
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|||||||
2009
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2008
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|||||||
ASSETS
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||||||||
Cash
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$ | 230,031 | $ | 129,400 | ||||
Restricted cash
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865 | 865 | ||||||
Short-term investments
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— | 13,686 | ||||||
Accounts receivable — net
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34,609 | 60,859 | ||||||
Due from affiliates
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14,063 | 39,062 | ||||||
Inventories
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126,832 | 138,111 | ||||||
Prepaid and other current assets
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19,901 | 99,861 | ||||||
Deferred taxes — current portion
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— | 32,290 | ||||||
Total current assets
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426,301 | 514,134 | ||||||
Property, plant and equipment — net
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1,319,899 | 1,340,037 | ||||||
Intangible asset — net
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24,453 | 32,527 | ||||||
Due from affiliates – less current portion
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7,599 | 7,599 | ||||||
Other assets
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89,905 | 141,061 | ||||||
TOTAL
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$ | 1,868,157 | $ | 2,035,358 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
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||||||||
LIABILITIES:
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||||||||
Accounts payable, trade
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$ | 66,344 | $ | 102,143 | ||||
Due to affiliates
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64,023 | 70,957 | ||||||
Accrued and other current liabilities
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61,262 | 58,777 | ||||||
Accrued employee benefits costs — current portion
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12,070 | 12,070 | ||||||
Convertible senior notes
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156,704 | 152,700 | ||||||
Industrial revenue bonds
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7,815 | 7,815 | ||||||
Total current liabilities
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368,218 | 404,462 | ||||||
Senior unsecured notes payable
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250,000 | 250,000 | ||||||
Revolving credit facility
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— | 25,000 | ||||||
Accrued pension benefits costs — less current portion
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45,307 | 50,008 | ||||||
Accrued postretirement benefits costs — less current portion
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161,803 | 219,539 | ||||||
Other liabilities
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41,757 | 33,464 | ||||||
Deferred taxes
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65,252 | 71,805 | ||||||
Total noncurrent liabilities
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564,119 | 649,816 | ||||||
CONTINGENCIES AND COMMITMENTS (NOTE 14)
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||||||||
SHAREHOLDERS’ EQUITY:
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||||||||
Preferred stock (one cent par value, 5,000,000 shares authorized; 153,491 and 155,787 shares issued and outstanding at June 30, 2009 and December 31, 2008, respectively)
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2 | 2 | ||||||
Common stock (one cent par value, 195,000,000 shares authorized and 74,158,900 shares issued and outstanding at June 30, 2009; 100,000,000 shares authorized and 49,052,692 shares issued and outstanding at December 31, 2008)
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742 | 491 | ||||||
Additional paid-in capital
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2,378,436 | 2,272,128 | ||||||
Accumulated other comprehensive loss
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(67,257 | ) | (137,208 | ) | ||||
Accumulated deficit
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(1,376,103 | ) | (1,154,333 | ) | ||||
Total shareholders’ equity
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935,820 | 981,080 | ||||||
TOTAL
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$ | 1,868,157 | $ | 2,035,358 |
CENTURY ALUMINUM COMPANY
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||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
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||||||||
(Dollars in thousands)
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||||||||
(Unaudited)
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||||||||
Six months ended June 30,
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||||||||
2009
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2008
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|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
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||||||||
Net loss
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$ | (221,770 | ) | $ | (237,431 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities:
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||||||||
Unrealized net loss on forward contracts
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2,514 | 536,650 | ||||||
Accrued plant curtailment costs
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21,051 | — | ||||||
Depreciation and amortization
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40,063 | 41,860 | ||||||
Debt discount amortization
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4,004 | 3,729 | ||||||
Lower of cost or market inventory adjustment
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(38,187 | ) | — | |||||
Deferred income taxes
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25,030 | (195,874 | ) | |||||
Pension and other post retirement benefits
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7,495 | 8,513 | ||||||
Stock-based compensation
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1,269 | 11,658 | ||||||
Excess tax benefits from share-based compensation
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— | (657 | ) | |||||
Equity investment impairment
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73,234 | — | ||||||
Undistributed earnings of joint ventures
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(3,601 | ) | (9,959 | ) | ||||
Changes in operating assets and liabilities:
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||||||||
Accounts receivable – net
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26,250 | (1,042 | ) | |||||
Purchase of short-term trading securities
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— | (97,532 | ) | |||||
Sale of short-term trading securities
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13,686 | 345,764 | ||||||
Due from affiliates
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24,999 | (6,595 | ) | |||||
Inventories
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31,140 | (30,212 | ) | |||||
Prepaid and other current assets
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77,891 | (20,821 | ) | |||||
Accounts payable, trade
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(24,768 | ) | 16,693 | |||||
Due to affiliates
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(11,435 | ) | 7,726 | |||||
Accrued and other current liabilities
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(7,109 | ) | (5,544 | ) | ||||
Other – net
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4,916 | (2,113 | ) | |||||
Net cash provided by operating activities
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46,672 | 364,813 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
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||||||||
Purchase of property, plant and equipment
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(11,927 | ) | (14,956 | ) | ||||
Nordural expansion
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(12,132 | ) | (32,648 | ) | ||||
Investments in and advances to joint ventures
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(1,023 | ) | (27,621 | ) | ||||
Restricted and other cash deposits
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— | (1,898 | ) | |||||
Net cash used in investing activities
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(25,082 | ) | (77,123 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES:
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||||||||
Repayments under revolving credit facility
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(25,000 | ) | — | |||||
Excess tax benefits from shared-based compensation
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— | 657 | ||||||
Issuance of common stock – net
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104,041 | 2,335 | ||||||
Net cash provided by financing activities
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79,041 | 2,992 | ||||||
NET CHANGE IN CASH
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100,631 | 290,682 | ||||||
Cash, beginning of the period
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129,400 | 60,962 | ||||||
Cash, end of the period
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$ | 230,031 | $ | 351,644 |
General
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2.
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Management’s Plans
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3.
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Equity Investment Impairment
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Beginning balance
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Impairment gain (loss)
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Ending balance
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||||||||||
Equity investments in Gramercy and SABL, equity in the earnings of Gramercy and SABL and intercompany profit elimination
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$ | 95,892 | $ | (74,783 | ) | $ | 21,109 | |||||
Pension and OPEB obligations for Gramercy and SABL
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(1,549 | ) | 1,549 | — | ||||||||
Total
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$ | 94,343 | $ | (73,234 | ) | $ | 21,109 |
4.
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FSP APB 14-1 Adoption
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June 30, 2009
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December 31, 2008
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|||||||
Principal of the liability component of 1.75% convertible senior notes
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$ | 175,000 | $ | 175,000 | ||||
Unamortized debt discount
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(18,296 | ) | (22,300 | ) | ||||
Net carrying amount of liability component of 1.75% convertible senior notes
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$ | 156,704 | $ | 152,700 | ||||
Net carrying amount of equity component of 1.75% convertible senior notes (net of $18,261 taxes and $1,799 issuance costs)
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$ | 32,114 | $ | 32,114 |
Six months ending December 31, 2009
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2010
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2011
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||||||||||
Estimated debt discount amortization expense
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$ | 4,149 | $ | 8,755 | $ | 5,392 |
CONDENSED CONSOLIDATED BALANCE SHEETS
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||||||||||||
December 31, 2008
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||||||||||||
As Reported
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Effect of change
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As Adjusted
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||||||||||
ASSETS
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||||||||||||
Total current assets
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$ | 514,134 | $ | — | $ | 514,134 | ||||||
Property, plant and equipment — net
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1,340,037 | — | 1,340,037 | |||||||||
Intangible asset — net
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32,527 | — | 32,527 | |||||||||
Due from affiliates – less current portion
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7,599 | — | 7,599 | |||||||||
Other assets
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141,802 | (741 | ) | 141,061 | ||||||||
TOTAL
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$ | 2,036,099 | $ | (741 | ) | $ | 2,035,358 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
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||||||||||||
LIABILITIES:
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||||||||||||
Accounts payable, trade
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$ | 102,143 | $ | — | $ | 102,143 | ||||||
Due to affiliates
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70,957 | — | 70,957 | |||||||||
Accrued and other current liabilities
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58,777 | — | 58,777 | |||||||||
Accrued employee benefits costs — current portion
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12,070 | — | 12,070 | |||||||||
Convertible senior notes
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175,000 | (22,300 | ) | 152,700 | ||||||||
Industrial revenue bonds
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7,815 | — | 7,815 | |||||||||
Total current liabilities
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426,762 | (22,300 | ) | 404,462 | ||||||||
Total noncurrent liabilities
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649,816 | — | 649,816 | |||||||||
SHAREHOLDERS’ EQUITY:
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||||||||||||
Preferred stock
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2 | — | 2 | |||||||||
Common stock
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491 | — | 491 | |||||||||
Additional paid-in capital
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2,240,014 | 32,114 | 2,272,128 | |||||||||
Accumulated other comprehensive loss
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(137,208 | ) | — | (137,208 | ) | |||||||
Accumulated deficit
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(1,143,778 | ) | (10,555 | ) | (1,154,333 | ) | ||||||
Total shareholders’ equity
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959,521 | 21,559 | 981,080 | |||||||||
TOTAL
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$ | 2,036,099 | $ | (741 | ) | $ | 2,035,358 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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||||||||||||
Three months ended June 30, 2008
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||||||||||||
As Reported
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Effect of change
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As Adjusted
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||||||||||
Net sales
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$ | 545,197 | $ | — | $ | 545,197 | ||||||
Cost of goods sold
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388,973 | — | 388,973 | |||||||||
Gross profit
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156,224 | — | 156,224 | |||||||||
Selling, general and administrative expenses
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13,851 | — | 13,851 | |||||||||
Operating income
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142,373 | — | 142,373 | |||||||||
Interest expense
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(6,180 | ) | (1,810 | ) | (7,990 | ) | ||||||
Interest income
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2,291 | — | 2,291 | |||||||||
Net loss on forward contracts
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(203,784 | ) | — | (203,784 | ) | |||||||
Other income - net
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306 | — | 306 | |||||||||
Loss before income taxes and equity in earnings of joint ventures
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(64,994 | ) | (1,810 | ) | (66,804 | ) | ||||||
Income tax benefit
|
57,087 | 657 | 57,744 | |||||||||
Loss before equity in earnings of joint ventures
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(7,907 | ) | (1,153 | ) | (9,060 | ) | ||||||
Equity in earnings of joint ventures
|
5,566 | — | 5,566 | |||||||||
Net loss
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$ | (2,341 | ) | $ | (1,153 | ) | $ | (3,494 | ) | |||
LOSS PER COMMON SHARE:
|
||||||||||||
Basic and Diluted
|
$ | (0.06 | ) | $ | (0.02 | ) | $ | (0.08 | ) | |||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
|
||||||||||||
Basic and Diluted (in thousands)
|
41,143 | 41,143 | 41,143 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||||||
Six months ended June 30, 2008
|
||||||||||||
As Reported
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Effect of change
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As Adjusted
|
||||||||||
Net sales
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$ | 1,016,339 | $ | — | $ | 1,016,339 | ||||||
Cost of goods sold
|
764,120 | — | 764,120 | |||||||||
Gross profit
|
252,219 | — | 252,219 | |||||||||
Selling, general and administrative expenses
|
32,717 | — | 32,717 | |||||||||
Operating income
|
219,502 | — | 219,502 | |||||||||
Interest expense
|
(12,423 | ) | (3,599 | ) | (16,022 | ) | ||||||
Interest income
|
4,814 | — | 4,814 | |||||||||
Net loss on forward contracts
|
(652,092 | ) | — | (652,092 | ) | |||||||
Other expense - net
|
(227 | ) | — | (227 | ) | |||||||
Loss before income taxes and equity in earnings of joint ventures
|
(440,426 | ) | (3,599 | ) | (444,025 | ) | ||||||
Income tax benefit
|
195,330 | 1,305 | 196,635 | |||||||||
Loss before equity in earnings of joint ventures
|
(245,096 | ) | (2,294 | ) | (247,390 | ) | ||||||
Equity in earnings of joint ventures
|
9,959 | — | 9,959 | |||||||||
Net loss
|
$ | (235,137 | ) | $ | (2,294 | ) | $ | (237,431 | ) | |||
LOSS PER COMMON SHARE:
|
||||||||||||
Basic and Diluted
|
$ | (5.72 | ) | $ | (0.06 | ) | $ | (5.78 | ) | |||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
|
||||||||||||
Basic and Diluted (in thousands)
|
41,092 | 41,092 | 41,092 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||||||
Six months ended June 30, 2008
|
||||||||||||
As Reported
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Effect of change
|
As Adjusted
|
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||
Net loss
|
$ | (235,137 | ) | $ | (2,294 | ) | $ | (237,431 | ) | |||
Adjustments to reconcile net loss to net cash provided by operating activities:
|
||||||||||||
Unrealized net loss on forward contracts
|
536,650 | — | 536,650 | |||||||||
Depreciation and amortization
|
41,860 | — | 41,860 | |||||||||
Debt discount amortization
|
— | 3,729 | 3,729 | |||||||||
Deferred income taxes
|
(194,569 | ) | (1,305 | ) | (195,874 | ) | ||||||
Pension and other post retirement benefits
|
8,513 | — | 8,513 | |||||||||
Stock-based compensation
|
11,658 | — | 11,658 | |||||||||
Excess tax benefits from share-based compensation
|
(657 | ) | — | (657 | ) | |||||||
Undistributed earnings of joint ventures
|
(9,959 | ) | — | (9,959 | ) | |||||||
Changes in operating assets and liabilities:
|
||||||||||||
Accounts receivable – net
|
(1,042 | ) | — | (1,042 | ) | |||||||
Purchase of short-term trading securities
|
(97,532 | ) | — | (97,532 | ) | |||||||
Sale of short-term trading securities
|
345,764 | — | 345,764 | |||||||||
Due from affiliates
|
(6,595 | ) | — | (6,595 | ) | |||||||
Inventories
|
(30,212 | ) | — | (30,212 | ) | |||||||
Prepaid and other current assets
|
(20,821 | ) | — | (20,821 | ) | |||||||
Accounts payable, trade
|
16,693 | — | 16,693 | |||||||||
Due to affiliates
|
7,726 | — | 7,726 | |||||||||
Accrued and other current liabilities
|
(5,544 | ) | — | (5,544 | ) | |||||||
Other – net
|
(1,983 | ) | (130 | ) | (2,113 | ) | ||||||
Net cash provided by operating activities
|
364,813 | — | 364,813 | |||||||||
Net cash used in investing activities
|
(77,123 | ) | — | (77,123 | ) | |||||||
Net cash provided by financing activities
|
2,992 | — | 2,992 | |||||||||
NET CHANGE IN CASH
|
290,682 | — | 290,682 | |||||||||
Cash, beginning of the period
|
60,962 | — | 60,962 | |||||||||
Cash, end of the period
|
$ | 351,644 | $ | — | $ | 351,644 |
5.
|
Curtailment of Operations – Ravenswood and Hawesville
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Three months ended
|
Six months ended
|
|||||||
June 30, 2009
|
June 30, 2009
|
|||||||
Severance/employee-related cost
|
$ | (127 | ) | $ | 24,463 | |||
Alumina contract – spot sales net (gains) losses
|
(2,614 | ) | 717 | |||||
Alumina contract amendment cost
|
6,000 | 6,000 | ||||||
Power/other contract termination costs
|
— | 6,332 | ||||||
Ongoing site costs
|
6,749 | 8,338 | ||||||
Gross expense
|
10,008 | 45,850 | ||||||
Pension plan curtailment adjustment
|
(5 | ) | 2,478 | |||||
OPEB plan curtailment adjustment
|
(837 | ) | (14,830 | ) | ||||
Net expense
|
$ | 9,166 | $ | 33,498 |
Total gross cash expenditure forecast
|
Approximate cash payments through June 30, 2009
|
|||||||
Curtailment of operations at Ravenswood and Kentucky (24 months)
|
$ | 33,000 | $ | 11,490 | ||||
Ongoing idling costs at Ravenswood (24 months)
|
$ | 32,000 | $ | 6,888 | ||||
Contract termination costs (1)
|
$ | 14,000 | $ | 9,972 |
(1)
|
This estimate is based on realized losses to date and $6,000 in payments to St. Ann Bauxite Ltd.
in compensation for the reduced bauxite sales
related to alumina and bauxite contract amendments (of which $1,500 has been paid as of June 30, 2009).
|
6.
|
Equity Offering
|
7.
|
Fair Value Measurements and Derivative Instruments
|
Fair Value of Derivative Assets and Liabilities
|
|||||||||
Balance sheet location
|
June 30, 2009
|
December 31, 2008
|
|||||||
DERIVATIVE ASSETS:
|
|||||||||
Power contracts
|
Prepaid and other assets
|
$ | 49 | $ | 2,202 | ||||
TOTAL DERIVATIVE ASSETS
|
$ | 49 | $ | 2,202 | |||||
DERIVATIVE LIABILITIES:
|
|||||||||
Natural gas forward financial contracts
|
Accrued and other current liabilities
|
$ | (2,051 | ) | $ | (10,130 | ) | ||
Power contracts
|
Accrued and other current liabilities
|
(480 | ) | — | |||||
Aluminum sales premium contracts – current portion
|
Accrued and other current liabilities
|
(1,069 | ) | (1,256 | ) | ||||
Aluminum sales premium contracts – less current portion
|
Other liabilities
|
(593 | ) | (503 | ) | ||||
TOTAL DERIVATIVE LIABILITIES
|
$ | (4,193 | ) | $ | (11,889 | ) |
Six months ended June 30, 2009
|
|||||||||||||||||
Amount of loss recognized in OCI on derivative, net of tax (effective portion)
|
Loss reclassified from OCI to income on derivatives (effective portion)
|
Loss recognized in income on derivative (ineffective portion)
|
|||||||||||||||
Amount
|
Location
|
Amount
|
Location
|
Amount
|
|||||||||||||
Natural gas forward financial contracts
|
$ | (2,051 | ) |
Cost of goods sold
|
$ | (13,377 | ) | — | $ | — | |||||||
Foreign currency forwards (1)
|
$ | (2,163 | ) |
Cost of goods sold
|
$ | (4,706 | ) |
Net loss on forward contracts
|
$ | (1,701 | ) |
(1)
|
We have no foreign currency forwards or options outstanding at June 30, 2009 or December 31, 2008. We settled our foreign currency forward contracts in October 2008.
|
June 30, 2009
|
December 31, 2008
|
|
Natural gas forward financial contracts (in thousands of MMBTU)
|
760
|
3,340
|
June 30, 2009
|
December 31, 2008
|
|
Power contracts (in megawatt hours ("MWH")) (1)
|
26,840
|
1,066,000
|
Aluminum sales contract premiums (metric tons) (2)
|
118,093
|
152,000
|
(1)
|
Amount includes approximately 23,000 MWH for expected usage under a Hawesville power contract that was amended in the second quarter of 2009 which required mark-to-market accounting as a result of the amendments. We mark the Ravenswood power contract to market based on our expected usage during the remaining term of the contract. This
contract term is dependent on the outcome of a pending rate case. We expect the outcome of the rate case to be completed around September 2009.
|
(2)
|
Represents the remaining physical deliveries under our Glencore Metal Agreements I and II.
|
Recurring Fair Value Measurements
|
As of June 30, 2009
|
|||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
ASSETS:
|
||||||||||||||||
Derivative assets
|
$ | — | $ | — | $ | 49 | $ | 49 | ||||||||
LIABILITIES:
|
||||||||||||||||
Derivative liabilities
|
$ | (2,051 | ) | $ | — | $ | (2,142 | ) | $ | (4,193 | ) |
Recurring Fair Value Measurements
|
As of December 31, 2008
|
|||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
ASSETS:
|
||||||||||||||||
Short-term investments
|
$ | — | $ | 13,686 | $ | — | $ | 13,686 | ||||||||
Derivative assets
|
— | — | 2,202 | 2,202 | ||||||||||||
TOTAL
|
$ | — | $ | 13,686 | $ | 2,202 | $ | 15,888 | ||||||||
LIABILITIES:
|
||||||||||||||||
Derivative liabilities
|
$ | (10,130 | ) | $ | — | $ | (1,759 | ) | $ | (11,889 | ) |
Change in Level 3 Fair Value Measurements during the three months ended June 30,
|
||||||||
Derivative liabilities/assets
|
||||||||
2009
|
2008
|
|||||||
Beginning balance April 1,
|
$ | (1,339 | ) | $ | (1,477,113 | ) | ||
Total loss (realized/unrealized) included in earnings
|
(3,159 | ) | (203,720 | ) | ||||
Settlements
|
2,405 | 66,612 | ||||||
Ending balance, June 30
|
$ | (2,093 | ) | $ | (1,614,221 | ) | ||
Amount of total loss included in earnings attributable to the change in unrealized losses relating to assets and liabilities held at June 30,
|
$ | (2,911 | ) | $ | (140,719 | ) |
Change in Level 3 Fair Value Measurements during the six months ended June 30,
|
||||||||
Derivative liabilities/assets
|
||||||||
2009
|
2008
|
|||||||
Beginning balance January 1,
|
$ | 443 | $ | (1,070,290 | ) | |||
Total loss (realized/unrealized) included in earnings
|
(5,105 | ) | (651,958 | ) | ||||
Settlements
|
2,569 | 108,027 | ||||||
Ending balance, June 30,
|
$ | (2,093 | ) | $ | (1,614,221 | ) | ||
Amount of total loss included in earnings attributable to the change in unrealized losses relating to assets and liabilities held at June 30,
|
$ | (4,681 | ) | $ | (536,725 | ) |
8.
|
Earnings Per Share
|
For the three months ended June 30,
|
||||||||||||||||||||||||
2009
|
2008
|
|||||||||||||||||||||||
Loss
|
Shares (000)
|
Per-Share
|
Loss
|
Shares (000)
|
Per-Share
|
|||||||||||||||||||
Net loss
|
$ | (107,146 | ) | 74,143 | $ | (1.45 | ) | $ | (3,494 | ) | 41,143 | $ | (0.08 | ) | ||||||||||
Amount allocated to common shareholders (1)
|
100 | % | 100 | % | ||||||||||||||||||||
Basic and Diluted EPS:
|
||||||||||||||||||||||||
Loss allocable to common shareholders
|
$ | (107,146 | ) | 74,143 | $ | (1.45 | ) | $ | (3,494 | ) | 41,143 | $ | (0.08 | ) |
For the six months ended June 30,
|
||||||||||||||||||||||||
2009
|
2008
|
|||||||||||||||||||||||
Loss
|
Shares (000)
|
Per-Share
|
Loss
|
Shares (000)
|
Per-Share
|
|||||||||||||||||||
Net loss
|
$ | (221,770 | ) | 69,402 | $ | (3.20 | ) | $ | (237,431 | ) | 41,092 | $ | (5.78 | ) | ||||||||||
Amount allocated to common shareholders (1)
|
100 | % | 100 | % | ||||||||||||||||||||
Basic and Diluted EPS:
|
||||||||||||||||||||||||
Loss allocable to common shareholders
|
$ | (221,770 | ) | 69,402 | $ | (3.20 | ) | $ | (237,431 | ) | 41,092 | $ | (5.78 | ) |
(1)
|
We have not allocated the net loss allocable to common shareholders between common and preferred shareholders, as the holders of our preferred shares do not have a contractual obligation to share in the loss. For the three and six months ended June 30, 2008, there was no preferred stock outstanding.
|
9.
|
Shareholders’ Equity
|
Series A Convertible Preferred Stock:
|
2009
|
Shares outstanding at December 31, 2008
|
155,787
|
Automatic conversions during the six months ended June 30, 2009
|
(2,296)
|
Total shares outstanding at June 30, 2009
|
153,491
|
10.
|
Income Taxes
|
11.
|
Inventories
|
June 30, 2009
|
December 31, 2008
|
|||||||
Raw materials
|
$ | 19,172 | $ | 19,664 | ||||
Work-in-process
|
15,682 | 16,133 | ||||||
Finished goods
|
17,727 | 8,203 | ||||||
Operating and other supplies
|
74,251 | 94,111 | ||||||
Inventories
|
$ | 126,832 | $ | 138,111 |
12.
|
Goodwill and Intangible Asset
|
13.
|
Debt
|
June 30, 2009
|
December 31, 2008
|
|||||||
Debt classified as current liabilities:
|
||||||||
1.75% convertible senior notes due 2024, interest payable semiannually, net of debt discount of $18,296 and $22,300, respectively (1)(2)(3)(4)
|
$ | 156,704 | $ | 152,700 | ||||
Hancock County industrial revenue bonds due 2028, interest payable quarterly (variable interest rates (not to exceed 12%))(1)
|
7,815 | 7,815 | ||||||
Debt classified as non-current liabilities:
|
||||||||
7.5% senior unsecured notes payable due 2014, interest payable semiannually (3)(5)
|
250,000 | 250,000 | ||||||
Revolving credit facility (6)
|
— | 25,000 | ||||||
Total debt
|
$ | 414,519 | $ | 435,515 |
(1)
|
The 1.75% convertible senior notes are classified as current because they are convertible at any time by the holder. 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. The IRB interest rate at June 30, 2009 was 0.65%.
|
(2)
|
The 1.75% convertible senior notes are convertible at any time by the holder at an initial conversion rate of 32.7430 shares of Century common stock per one thousand dollars of principal amount of convertible senior notes, subject to adjustments for certain events. The initial conversion rate is equivalent to a conversion price
of approximately $30.5409 per share of Century common stock. Upon conversion of a 1.75% convertible senior note, the holder of such convertible note shall receive cash up to the principal amount of the 1.75% convertible senior note and, at our election, either cash or Century common stock, or a combination thereof, for the 1.75% convertible senior notes conversion value in excess of such principal amount, if any. We may redeem some or all of the notes on or after August 6, 2009 at a price equal
to 100% of the principal amount of the notes being redeemed, plus accrued and unpaid interest, if any. Holders of the 1.75% convertible senior notes may require us to purchase for cash all or part of the notes on each of August 1, 2011, August 1, 2014 and August 1, 2019 at a price equal to 100% of the principal amount of the notes being purchased, plus accrued and unpaid interest, if any.
|
(3)
|
The obligations of Century pursuant to the notes are unconditionally guaranteed, jointly and severally, on a senior unsecured basis by all of our existing domestic restricted subsidiaries. The indentures governing these obligations contain customary covenants, including limitations on our ability to incur additional indebtedness,
pay dividends, sell assets or stock of certain subsidiaries and purchase or redeem capital stock.
|
(4)
|
Amounts reflect the adoption and retrospective application of FSP APB 14-1 as of January 1, 2009. This pronouncement changes the accounting treatment for certain convertible debt instruments requiring the segregation of these instruments into a liability and equity component. These amounts represent the fair value of
the liability component. See Note 4 Adoption of FSP APB 14-1 for additional information.
|
(5)
|
On or after August 15, 2009, we may redeem any of the senior notes, in whole or in part, at an initial redemption price equal to 103.75% of the principal amount, plus accrued and unpaid interest. The redemption price will decline each year after 2009 and will be 100% of the principal amount, plus accrued and unpaid interest, beginning
on August 15, 2012.
|
(6)
|
Borrowings under the revolving line of credit are, at our option, at the LIBOR rate or bank base rate, plus or minus in each case an applicable margin. The revolving line of credit is subject to customary covenants, including limitations on capital expenditures, additional indebtedness, affiliate transactions, liens, guarantees,
mergers and acquisitions, dividends, distributions, capital redemptions and investments.
|
14.
|
Contingencies and Commitments
|
15.
|
Forward Delivery Contracts and Financial Instruments
|
Contract
|
Customer
|
Volume
|
Term
|
Pricing
|
Alcan Metal Agreement (1)
|
Alcan
|
14 million pounds per month
|
May 1, 2009
|
Variable, based on U.S. Midwest market
|
Glencore Metal Agreement I (2)
|
Glencore
|
50,000 mtpy
|
Through December 31, 2009
|
Variable, LME-based
|
Glencore Metal Agreement II (3)
|
Glencore
|
20,400 mtpy
|
Through December 31, 2013
|
Variable, based on U.S. Midwest market
|
Southwire Metal Agreement (4)
|
Southwire
|
240 million pounds per year (high conductivity molten aluminum)
|
Through March 31, 2011
|
Variable, based on U.S. Midwest market
|
Southwire Metal Agreement
|
Southwire
|
60 million pounds per year (standard-grade molten aluminum)
|
Through December 31, 2010
|
Variable, based on U.S. Midwest market
|
(1)
|
Alcan and CAWV agreed to terminate all remaining obligations under the Alcan Metal Agreement. CAWV agreed to pay Alcan $623 to settle the remaining delivery obligations.
|
(2)
|
We account for the Glencore Metal Agreement I as a derivative instrument under SFAS No. 133. We have not designated the Glencore Metal Agreement I as “normal” because it replaced and substituted for a significant portion of a sales contract which did not qualify for this designation. Because the Glencore Metal
Agreement I is variably priced, we do not expect significant variability in its fair value, other than changes that might result from the absence of the U.S. Midwest premium.
|
(3)
|
We account for the Glencore Metal Agreement II as a derivative instrument under SFAS No. 133. Under the Glencore Metal Agreement II, pricing is based on then-current market prices, adjusted by a negotiated U.S. Midwest premium with a cap and a floor as applied to the current U.S. Midwest premium.
|
(4)
|
The Southwire Metal Agreement will automatically renew for additional five-year terms, unless either party provides 12 months notice that it has elected not to renew.
|
Contract
|
Customer
|
Volume
|
Term
|
Pricing
|
Billiton Tolling Agreement (1)
|
BHP Billiton
|
130,000 mtpy
|
Through December 31, 2013
|
LME-based
|
Glencore Toll Agreement (1)(2)
|
Glencore
|
90,000 mtpy
|
Through July 31, 2016
|
LME-based
|
Glencore Toll Agreement (1)
|
Glencore
|
40,000 mtpy
|
Through December 31, 2014
|
LME-based
|
Billiton Tolling Agreement
|
BHP Billiton
|
9,900 mtpy
|
Through December 31, 2009
|
LME-based
|
(1)
|
Grundartangi’s tolling revenues include a premium based on the European Union (“EU”) import duty for primary aluminum. In May 2007, the EU members reduced the EU import duty for primary aluminum from six percent to three percent and agreed to review the new duty after three years.
This
decrease in the EU import duty for primary aluminum negatively impacts Grundartangi’s revenues and further decreases would also have a negative impact on Grundartangi’s revenues
, but it is not expected to have a material effect on our financial position and results of operations.
|
(2)
|
Glencore assigned 50% of its tolling rights under this agreement to Hydro Aluminum through December 31, 2010.
|
16.
|
Supplemental Cash Flow Information
|
Six months ended June 30,
|
||||||||
2009
|
2008
|
|||||||
Cash paid for:
|
||||||||
Interest
|
$ | 11,085 | $ | 11,035 | ||||
Income tax
|
106 | 3,475 | ||||||
Cash received for:
|
||||||||
Interest
|
1,564 | 4,840 | ||||||
Income tax refunds (1)
|
91,041 | — |
(1)
|
See Note 10 Income Taxes for more information.
|
17.
|
Asset Retirement Obligations
|
Six months ended
June 30, 2009
|
Year ended
December 31, 2008
|
|||||||
Beginning balance, ARO liability
|
$ | 14,337 | $ | 13,586 | ||||
Additional ARO liability incurred
|
448 | 2,140 | ||||||
ARO liabilities settled
|
(559 | ) | (2,464 | ) | ||||
Accretion expense
|
558 | 1,075 | ||||||
Ending balance, ARO liability
|
$ | 14,784 | $ | 14,337 |
18.
|
Comprehensive Loss and Accumulated Other Comprehensive Loss
|
Comprehensive Loss:
|
||||||||
Six months ended June 30,
|
||||||||
2009
|
2008
|
|||||||
Net loss
|
$ | (221,770 | ) | $ | (237,431 | ) | ||
Other comprehensive income (loss):
|
||||||||
Net unrealized loss on financial instruments, net of $0 and $(670) tax of, respectively
|
(5,323 | ) | 1,394 | |||||
Net losses on cash flow hedges reclassified to income, net of tax of $0 and $(3,021), respectively
|
13,402 | 6,059 | ||||||
Net loss on foreign currency cash flow hedges reclassified to income, net of tax of $(706) and $54, respectively
|
5,701 | (246 | ) | |||||
Defined benefit pension and other postemployment benefit plans:
|
||||||||
Net curtailment gain arising during the period, net of $0 tax
|
56,124 | — | ||||||
Amortization of net loss during the period, net of $(294) and $209 tax, respectively
|
673 | (508 | ) | |||||
Amortization of prior service cost during the period, net of $949 and $(629) tax, respectively
|
(2,174 | ) | 1,530 | |||||
Change in equity investee other comprehensive income, net of $0 tax
|
1,549 | — | ||||||
Other Comprehensive Income:
|
69,952 | 8,229 | ||||||
Comprehensive loss
|
$ | (151,818 | ) | $ | (229,202 | ) |
Components of Accumulated Other Comprehensive Loss:
|
||||||||
June 30, 2009
|
December 31, 2008
|
|||||||
Unrealized loss on financial instruments, net of $409 and $784 tax benefit, respectively
|
$ | (4,213 | ) | $ | (17,506 | ) | ||
Defined benefit plan liabilities, net of $26,366 and $26,534 tax benefit, respectively
|
(55,825 | ) | (114,032 | ) | ||||
Equity in investee other comprehensive income (1)
|
(7,219 | ) | (5,670 | ) | ||||
$ | (67,257 | ) | $ | (137,208 | ) |
(1)
|
Includes our equity in the other comprehensive income of Gramercy Alumina LLC, St. Ann Bauxite Ltd and Mt. Holly Aluminum Company. Their other comprehensive income consists primarily of pension and other postretirement benefit obligations.
|
19.
|
Components of Net Periodic Benefit Cost
|
Pension Benefits
|
||||||||||||||||
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Service cost
|
$ | 650 | $ | 1,028 | $ | 1,485 | $ | 2,056 | ||||||||
Interest cost
|
1,620 | 1,550 | 3,223 | 3,101 | ||||||||||||
Expected return on plan assets
|
(1,077 | ) | (1,893 | ) | (2,181 | ) | (3,787 | ) | ||||||||
Amortization of prior service cost
|
32 | 182 | 93 | 364 | ||||||||||||
Amortization of net loss
|
501 | 129 | 1,135 | 258 | ||||||||||||
Curtailment
|
(25 | ) | — | 2,576 | — | |||||||||||
Net periodic benefit cost
|
$ | 1,701 | $ | 996 | $ | 6,331 | $ | 1,992 |
Other Postretirement Benefits
|
||||||||||||||||
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Service cost
|
$ | 728 | $ | 1,642 | $ | 2,242 | $ | 3,283 | ||||||||
Interest cost
|
2,728 | 3,104 | 5,713 | 6,208 | ||||||||||||
Expected return on plan assets
|
— | — | — | — | ||||||||||||
Amortization of prior service cost
|
(415 | ) | (540 | ) | (837 | ) | (1,081 | ) | ||||||||
Amortization of net loss
|
340 | 950 | 1,435 | 1,901 | ||||||||||||
Curtailment
|
(663 | ) | — | (14,975 | ) | — | ||||||||||
Net periodic benefit cost
|
$ | 2,718 | $ | 5,156 | $ | (6,422 | ) | $ | 10,311 |
20.
|
Recently Issued Accounting Standards
|
21.
|
Condensed Consolidating Financial Information
|
CONDENSED CONSOLIDATING BALANCE SHEET
|
||||||||||||||||||||
As of June 30, 2009
|
||||||||||||||||||||
Combined Guarantor
Subsidiaries
|
Combined Non-Guarantor
Subsidiaries
|
The Company
|
Reclassifications
and Eliminations
|
Consolidated
|
||||||||||||||||
Assets:
|
||||||||||||||||||||
Cash
|
$ | — | $ | 81,678 | $ | 148,353 | $ | — | $ | 230,031 | ||||||||||
Restricted cash
|
865 | — | — | — | 865 | |||||||||||||||
Accounts receivable — net
|
22,796 | 11,813 | — | — | 34,609 | |||||||||||||||
Due from affiliates
|
559,655 | 2,335 | 2,458,948 | (3,006,875 | ) | 14,063 | ||||||||||||||
Inventories
|
76,495 | 49,818 | — | 519 | 126,832 | |||||||||||||||
Prepaid and other assets
|
271 | 5,913 | 13,717 | — | 19,901 | |||||||||||||||
Total current assets
|
660,082 | 151,557 | 2,621,018 | (3,006,356 | ) | 426,301 | ||||||||||||||
Investment in subsidiaries
|
34,069 | — | (1,034,428 | ) | 1,000,359 | — | ||||||||||||||
Property, plant and equipment — net
|
411,788 | 906,120 | 2,022 | (31 | ) | 1,319,899 | ||||||||||||||
Intangible asset — net
|
24,453 | — | — | — | 24,453 | |||||||||||||||
Due from affiliates — less current portion
|
— | 7,599 | — | — | 7,599 | |||||||||||||||
Deferred taxes — less current portion
|
— | — | 13,755 | (13,755 | ) | — | ||||||||||||||
Other assets
|
44,559 | 28,312 | 17,034 | — | 89,905 | |||||||||||||||
Total assets
|
$ | 1,174,951 | $ | 1,093,588 | $ | 1,619,401 | $ | (2,019,783 | ) | $ | 1,868,157 | |||||||||
Liabilities and shareholders’ equity:
|
||||||||||||||||||||
Accounts payable, trade
|
$ | 28,911 | $ | 36,739 | $ | 694 | $ | — | $ | 66,344 | ||||||||||
Due to affiliates
|
1,817,603 | 44,761 | 122,980 | (1,921,321 | ) | 64,023 | ||||||||||||||
Accrued and other current liabilities
|
29,169 | 8,465 | 23,628 | — | 61,262 | |||||||||||||||
Accrued employee benefits costs — current portion
|
10,745 | — | 1,325 | — | 12,070 | |||||||||||||||
Deferred taxes — current portion
|
6,275 | — | 94,073 | (100,348 | ) | — | ||||||||||||||
Convertible senior notes
|
— | — | 156,704 | — | 156,704 | |||||||||||||||
Industrial revenue bonds
|
7,815 | — | — | — | 7,815 | |||||||||||||||
Total current liabilities
|
1,900,518 | 89,965 | 399,404 | (2,021,669 | ) | 368,218 | ||||||||||||||
Senior unsecured notes payable
|
— | — | 250,000 | — | 250,000 | |||||||||||||||
Accrued pension benefit costs — less current portion
|
26,500 | — | 18,807 | — | 45,307 | |||||||||||||||
Accrued postretirement benefit costs — less current portion
|
159,191 | — | 2,612 | — | 161,803 | |||||||||||||||
Other liabilities/intercompany loan
|
52,987 | 672,822 | 12,758 | (696,810 | ) | 41,757 | ||||||||||||||
Deferred taxes — less current portion
|
301,665 | 65,251 | — | (301,664 | ) | 65,252 | ||||||||||||||
Total noncurrent liabilities
|
540,343 | 738,073 | 284,177 | (998,474 | ) | 564,119 | ||||||||||||||
Shareholders’ equity:
|
||||||||||||||||||||
Preferred stock
|
— | — | 2 | — | 2 | |||||||||||||||
Common stock
|
60 | 12 | 742 | (72 | ) | 742 | ||||||||||||||
Additional paid-in capital
|
297,293 | 144,371 | 2,378,436 | (441,664 | ) | 2,378,436 | ||||||||||||||
Accumulated other comprehensive income (loss)
|
(83,254 | ) | (2,163 | ) | (67,257 | ) | 85,417 | (67,257 | ) | |||||||||||
Retained earnings (accumulated deficit)
|
(1,480,009 | ) | 123,330 | (1,376,103 | ) | 1,356,679 | (1,376,103 | ) | ||||||||||||
Total shareholders’ equity
|
(1,265,910 | ) | 265,550 | 935,820 | 1,000,360 | 935,820 | ||||||||||||||
Total liabilities and shareholders’ equity
|
$ | 1,174,951 | $ | 1,093,588 | $ | 1,619,401 | $ | (2,019,783 | ) | $ | 1,868,157 |
CONDENSED CONSOLIDATING BALANCE SHEET
|
||||||||||||||||||||
As of December 31, 2008
|
||||||||||||||||||||
Combined Guarantor
Subsidiaries
|
Combined Non-Guarantor
Subsidiaries
|
The Company
|
Reclassifications
and Eliminations
|
Consolidated
|
||||||||||||||||
Assets:
|
||||||||||||||||||||
Cash
|
$ | — | $ | 71,545 | $ | 57,855 | $ | — | $ | 129,400 | ||||||||||
Restricted cash
|
865 | — | — | — | 865 | |||||||||||||||
Short-term investments
|
— | — | 13,686 | — | 13,686 | |||||||||||||||
Accounts receivable — net
|
46,506 | 14,353 | — | — | 60,859 | |||||||||||||||
Due from affiliates
|
649,440 | 4,878 | 2,442,509 | (3,057,765 | ) | 39,062 | ||||||||||||||
Inventories
|
87,673 | 50,438 | — | — | 138,111 | |||||||||||||||
Prepaid and other assets
|
2,205 | 18,479 | 79,177 | — | 99,861 | |||||||||||||||
Deferred taxes — current portion
|
32,290 | — | — | — | 32,290 | |||||||||||||||
Total current assets
|
818,979 | 159,693 | 2,593,227 | (3,057,765 | ) | 514,134 | ||||||||||||||
Investment in subsidiaries
|
40,356 | — | (891,412 | ) | 851,056 | — | ||||||||||||||
Property, plant and equipment — net
|
427,532 | 911,083 | 1,422 | — | 1,340,037 | |||||||||||||||
Intangible asset — net
|
32,527 | — | — | — | 32,527 | |||||||||||||||
Due from affiliates — less current portion
|
— | 7,599 | — | — | 7,599 | |||||||||||||||
Other assets
|
62,168 | 50,649 | 16,929 | 11,315 | 141,061 | |||||||||||||||
Total assets
|
$ | 1,381,562 | $ | 1,129,024 | $ | 1,720,166 | $ | (2,195,394 | ) | $ | 2,035,358 | |||||||||
Liabilities and shareholders’ equity:
|
||||||||||||||||||||
Accounts payable, trade
|
$ | 61,094 | $ | 40,913 | $ | 136 | $ | — | $ | 102,143 | ||||||||||
Due to affiliates
|
2,157,671 | 50,860 | 251,456 | (2,389,030 | ) | 70,957 | ||||||||||||||
Accrued and other current liabilities
|
27,991 | 8,836 | 21,950 | — | 58,777 | |||||||||||||||
Accrued employee benefits costs — current portion
|
10,744 | — | 1,326 | — | 12,070 | |||||||||||||||
Convertible senior notes
|
— | — | 152,700 | — | 152,700 | |||||||||||||||
Industrial revenue bonds
|
7,815 | — | — | — | 7,815 | |||||||||||||||
Total current liabilities
|
2,265,315 | 100,609 | 427,568 | (2,389,030 | ) | 404,462 | ||||||||||||||
Senior unsecured notes payable
|
— | — | 250,000 | — | 250,000 | |||||||||||||||
Revolving credit facility
|
— | — | 25,000 | — | 25,000 | |||||||||||||||
Accrued pension benefit costs — less current portion
|
29,772 | — | 20,236 | — | 50,008 | |||||||||||||||
Accrued postretirement benefit costs — less current portion
|
216,895 | — | 2,644 | — | 219,539 | |||||||||||||||
Other liabilities/intercompany loan
|
29,434 | 647,812 | 13,638 | (657,420 | ) | 33,464 | ||||||||||||||
Deferred taxes — less current portion
|
5,767 | 66,038 | — | — | 71,805 | |||||||||||||||
Total noncurrent liabilities
|
281,868 | 713,850 | 311,518 | (657,420 | ) | 649,816 | ||||||||||||||
Shareholders’ equity:
|
||||||||||||||||||||
Preferred stock
|
— | — | 2 | — | 2 | |||||||||||||||
Common stock
|
60 | 12 | 491 | (72 | ) | 491 | ||||||||||||||
Additional paid-in capital
|
297,292 | 144,371 | 2,272,128 | (441,663 | ) | 2,272,128 | ||||||||||||||
Accumulated other comprehensive income (loss)
|
(147,979 | ) | (5,837 | ) | (137,208 | ) | 153,816 | (137,208 | ) | |||||||||||
Retained earnings (accumulated deficit)
|
(1,314,994 | ) | 176,019 | (1,154,333 | ) | 1,138,975 | (1,154,333 | ) | ||||||||||||
Total shareholders’ equity
|
(1,165,621 | ) | 314,565 | 981,080 | 851,056 | 981,080 | ||||||||||||||
Total liabilities and shareholders’ equity
|
$ | 1,381,562 | $ | 1,129,024 | $ | 1,720,166 | $ | (2,195,394 | ) | $ | 2,035,358 |
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
|
||||||||||||||||||||
For the three months ended June 30, 2009
|
||||||||||||||||||||
Combined Guarantor Subsidiaries
|
Combined Non-Guarantor Subsidiaries
|
The Company
|
Reclassifications and Eliminations
|
Consolidated
|
||||||||||||||||
Net sales:
|
||||||||||||||||||||
Third-party customers
|
$ | 91,508 | $ | 48,589 | $ | — | $ | — | $ | 140,097 | ||||||||||
Related parties
|
24,981 | 24,784 | — | (709 | ) | 49,056 | ||||||||||||||
116,489 | 73,373 | — | (709 | ) | 189,153 | |||||||||||||||
Cost of goods sold
|
123,561 | 71,445 | — | (626 | ) | 194,380 | ||||||||||||||
Gross profit (loss)
|
(7,072 | ) | 1,928 | — | (83 | ) | (5,227 | ) | ||||||||||||
Other operating expenses – curtailment costs
|
9,166 | — | — | — | 9,166 | |||||||||||||||
Selling, general and admin expenses
|
11,131 | 140 | — | — | 11,271 | |||||||||||||||
Operating income (loss)
|
(27,369 | ) | 1,788 | — | (83 | ) | (25,664 | ) | ||||||||||||
Interest expense
|
(7,976 | ) | — | — | — | (7,976 | ) | |||||||||||||
Interest expense – affiliates
|
15,187 | (15,187 | ) | — | — | — | ||||||||||||||
Interest income
|
251 | 100 | — | — | 351 | |||||||||||||||
Interest income – affiliates
|
— | 144 | — | — | 144 | |||||||||||||||
Net loss on forward contracts
|
(3,174 | ) | (94 | ) | — | — | (3,268 | ) | ||||||||||||
Other expense - net
|
113 | 473 | — | — | 586 | |||||||||||||||
Loss before taxes and equity in earnings (loss) of subsidiaries and joint ventures
|
(22,968 | ) | (12,776 | ) | — | (83 | ) | (35,827 | ) | |||||||||||
Income tax benefit (expense)
|
(2,962 | ) | 389 | — | — | (2,573 | ) | |||||||||||||
Loss before equity in earnings (loss) of subsidiaries and joint ventures
|
(25,930 | ) | (12,387 | ) | — | (83 | ) | (38,400 | ) | |||||||||||
Equity earnings (loss) of subsidiaries and joint ventures
|
(42,167 | ) | (18,627 | ) | (107,146 | ) | 99,194 | (68,746 | ) | |||||||||||
Net income (loss)
|
$ | (68,097 | ) | $ | (31,014 | ) | $ | (107,146 | ) | $ | 99,111 | $ | (107,146 | ) |
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
|
||||||||||||||||||||
For the three months ended June 30, 2008
|
||||||||||||||||||||
Combined Guarantor Subsidiaries
|
Combined Non-Guarantor Subsidiaries
|
The Company
|
Reclassifications and Eliminations
|
Consolidated
|
||||||||||||||||
Net sales:
|
||||||||||||||||||||
Third-party customers
|
$ | 321,914 | $ | 98,118 | $ | — | $ | — | $ | 420,032 | ||||||||||
Related parties
|
75,593 | 49,572 | — | — | 125,165 | |||||||||||||||
397,507 | 147,690 | — | — | 545,197 | ||||||||||||||||
Cost of goods sold
|
292,725 | 96,054 | — | 194 | 388,973 | |||||||||||||||
Gross profit
|
104,782 | 51,636 | — | (194 | ) | 156,224 | ||||||||||||||
Selling, general and admin expenses
|
13,492 | 359 | — | — | 13,851 | |||||||||||||||
Operating income
|
91,290 | 51,277 | — | (194 | ) | 142,373 | ||||||||||||||
Interest expense – third party
|
(7,990 | ) | — | — | — | (7,990 | ) | |||||||||||||
Interest expense – affiliates
|
13,561 | (13,561 | ) | — | — | — | ||||||||||||||
Interest income
|
1,821 | 470 | — | — | 2,291 | |||||||||||||||
Net loss on forward contracts
|
(203,784 | ) | — | — | — | (203,784 | ) | |||||||||||||
Other expense - net
|
(181 | ) | 487 | — | — | 306 | ||||||||||||||
Income (loss) before taxes and equity in earnings (loss) of subsidiaries and joint ventures
|
(105,283 | ) | 38,673 | — | (194 | ) | (66,804 | ) | ||||||||||||
Income tax benefit (expense)
|
61,269 | (3,617 | ) | — | 92 | 57,744 | ||||||||||||||
Net income (loss) before equity in earnings (loss) of subsidiaries and joint ventures
|
(44,014 | ) | 35,056 | — | (102 | ) | (9,060 | ) | ||||||||||||
Equity earnings (loss) of subsidiaries and joint ventures
|
7,265 | 3,212 | (3,494 | ) | (1,417 | ) | 5,566 | |||||||||||||
Net income (loss)
|
$ | (36,749 | ) | $ | 38,268 | $ | (3,494 | ) | $ | (1,519 | ) | $ | (3,494 | ) |
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
|
||||||||||||||||||||
For the six months ended June 30, 2009
|
||||||||||||||||||||
Combined Guarantor Subsidiaries
|
Combined Non-Guarantor Subsidiaries
|
The Company
|
Reclassifications and Eliminations
|
Consolidated
|
||||||||||||||||
Net sales:
|
||||||||||||||||||||
Third-party customers
|
$ | 213,417 | $ | 97,094 | $ | — | $ | — | $ | 310,511 | ||||||||||
Related parties
|
56,203 | 48,124 | — | (1,098 | ) | 103,229 | ||||||||||||||
269,620 | 145,218 | — | (1,098 | ) | 413,740 | |||||||||||||||
Cost of goods sold
|
346,451 | 147,080 | — | (2,203 | ) | 491,328 | ||||||||||||||
Gross profit (loss)
|
(76,831 | ) | (1,862 | ) | — | 1,105 | (77,588 | ) | ||||||||||||
Other operating expenses – curtailment costs
|
33,498 | — | — | — | 33,498 | |||||||||||||||
Selling, general and admin expenses
|
21,093 | 298 | — | — | 21,391 | |||||||||||||||
Operating income (loss)
|
(131,422 | ) | (2,160 | ) | — | 1,105 | (132,477 | ) | ||||||||||||
Interest expense – third party
|
(16,019 | ) | — | — | — | (16,019 | ) | |||||||||||||
Interest expense – affiliates
|
29,924 | (29,924 | ) | — | — | — | ||||||||||||||
Interest income
|
593 | 483 | — | — | 1,076 | |||||||||||||||
Interest income – affiliates
|
— | 286 | — | — | 286 | |||||||||||||||
Net loss on forward contracts
|
(5,169 | ) | (1,701 | ) | — | — | (6,870 | ) | ||||||||||||
Other expense - net
|
270 | 74 | — | — | 344 | |||||||||||||||
Income (loss) before taxes and equity in earnings (loss) of subsidiaries and joint ventures
|
(121,823 | ) | (32,942 | ) | — | 1,105 | (153,660 | ) | ||||||||||||
Income tax benefit (expense)
|
(60 | ) | 1,583 | — | — | 1,523 | ||||||||||||||
Income (loss) before equity in earnings (loss) of subsidiaries and joint ventures
|
(121,883 | ) | (31,359 | ) | — | 1,105 | (152,137 | ) | ||||||||||||
Equity earnings (loss) of subsidiaries and joint ventures
|
(43,131 | ) | (21,330 | ) | (221,770 | ) | 216,598 | (69,633 | ) | |||||||||||
Net income (loss)
|
$ | (165,014 | ) | $ | (52,689 | ) | $ | (221,770 | ) | $ | 217,703 | $ | (221,770 | ) |
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
|
||||||||||||||||||||
For the six months ended June 30, 2008
|
||||||||||||||||||||
Combined Guarantor Subsidiaries
|
Combined Non-Guarantor Subsidiaries
|
The Company
|
Reclassifications and Eliminations
|
Consolidated
|
||||||||||||||||
Net sales:
|
||||||||||||||||||||
Third-party customers
|
$ | 594,002 | $ | 182,923 | $ | — | $ | — | $ | 776,925 | ||||||||||
Related parties
|
147,063 | 92,351 | — | — | 239,414 | |||||||||||||||
741,065 | 275,274 | — | — | 1,016,339 | ||||||||||||||||
Cost of goods sold
|
577,735 | 186,829 | — | (444 | ) | 764,120 | ||||||||||||||
Gross profit
|
163,330 | 88,445 | — | 444 | 252,219 | |||||||||||||||
Selling, general and admin expenses
|
32,086 | 631 | — | — | 32,717 | |||||||||||||||
Operating income
|
131,244 | 87,814 | — | 444 | 219,502 | |||||||||||||||
Interest expense – third party
|
(16,022 | ) | — | — | — | (16,022 | ) | |||||||||||||
Interest expense – affiliates
|
26,721 | (26,721 | ) | — | — | — | ||||||||||||||
Interest income
|
4,147 | 667 | — | — | 4,814 | |||||||||||||||
Net loss on forward contracts
|
(652,092 | ) | — | — | — | (652,092 | ) | |||||||||||||
Other expense - net
|
(190 | ) | (37 | ) | — | — | (227 | ) | ||||||||||||
Income (loss) before taxes and equity in earnings (loss) of subsidiaries and joint ventures
|
(506,192 | ) | 61,723 | — | 444 | (444,025 | ) | |||||||||||||
Income tax benefit (expense)
|
201,029 | (4,252 | ) | — | (142 | ) | 196,635 | |||||||||||||
Net income (loss) before equity in earnings (loss) of subsidiaries and joint ventures
|
(305,163 | ) | 57,471 | — | 302 | (247,390 | ) | |||||||||||||
Equity earnings (loss) of subsidiaries and joint ventures
|
13,890 | 3,951 | (237,431 | ) | 229,549 | 9,959 | ||||||||||||||
Net income (loss)
|
$ | (291,273 | ) | $ | 61,422 | $ | (237,431 | ) | $ | 229,851 | $ | (237,431 | ) |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
|
||||||||||||||||
For the six months ended June 30, 2009
|
||||||||||||||||
Combined Guarantor Subsidiaries
|
Combined Non-Guarantor Subsidiaries
|
The Company
|
Consolidated
|
|||||||||||||
Net cash provided by (used in) operating activities
|
$ | 68,475 | $ | (21,803 | ) | $ | — | $ | 46,672 | |||||||
Investing activities:
|
||||||||||||||||
Purchase of property, plant and equipment
|
(7,693 | ) | (3,364 | ) | (870 | ) | (11,927 | ) | ||||||||
Nordural expansion
|
— | (12,132 | ) | — | (12,132 | ) | ||||||||||
Investments in and advances to joint ventures
|
— | — | (1,023 | ) | (1,023 | ) | ||||||||||
Net cash used in investing activities
|
(7,693 | ) | (15,496 | ) | (1,893 | ) | (25,082 | ) | ||||||||
Financing activities:
|
||||||||||||||||
Repayment under revolving credit facility
|
— | — | (25,000 | ) | (25,000 | ) | ||||||||||
Intercompany transactions
|
(60,782 | ) | 47,432 | 13,350 | — | |||||||||||
Issuance of common stock – net of issuance costs
|
— | — | 104,041 | 104,041 | ||||||||||||
Net cash provided by (used in) financing activities
|
(60,782 | ) | 47,432 | 92,391 | 79,041 | |||||||||||
Net change in cash
|
— | 10,133 | 90,498 | 100,631 | ||||||||||||
Beginning cash
|
— | 71,545 | 57,855 | 129,400 | ||||||||||||
Ending cash
|
$ | — | $ | 81,678 | $ | 148,353 | $ | 230,031 |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
|
||||||||||||||||
For the six months ended June 30, 2008
|
||||||||||||||||
Combined Guarantor Subsidiaries
|
Combined Non-Guarantor Subsidiaries
|
The Company
|
Consolidated
|
|||||||||||||
Net cash provided by operating activities
|
$ | 347,631 | $ | 17,182 | $ | — | $ | 364,813 | ||||||||
Investing activities:
|
||||||||||||||||
Purchase of property, plant and equipment
|
(4,593 | ) | (9,909 | ) | (459 | ) | (14,961 | ) | ||||||||
Nordural expansion
|
— | (32,648 | ) | — | (32,648 | ) | ||||||||||
Investments in joint ventures
|
— | — | (27,621 | ) | (27,621 | ) | ||||||||||
Proceeds from sale of property
|
— | 5 | — | 5 | ||||||||||||
Restricted cash deposits
|
— | (1,898 | ) | — | (1,898 | ) | ||||||||||
Net cash used in investing activities
|
(4,593 | ) | (44,450 | ) | (28,080 | ) | (77,123 | ) | ||||||||
Financing activities:
|
||||||||||||||||
Excess tax benefits from share-based compensation
|
— | — | 657 | 657 | ||||||||||||
Intercompany transactions
|
(343,038 | ) | 68,332 | 274,706 | — | |||||||||||
Issuance of common stock
|
— | — | 2,335 | 2,335 | ||||||||||||
Net cash provided by (used in) financing activities
|
(343,038 | ) | 68,332 | 277,698 | 2,992 | |||||||||||
Net change in cash
|
— | 41,064 | 249,618 | 290,682 | ||||||||||||
Beginning cash
|
— | 11,128 | 49,834 | 60,962 | ||||||||||||
Ending cash
|
$ | — | $ | 52,192 | $ | 299,452 | $ | 351,644 |
22.
|
Subsequent Events
|
·
|
The decline in aluminum prices has adversely affected our financial position and results of operations and could result in further additional curtailment of operations at one or more of our facilities if alternate sources of liquidity are not available or prices do not increase.
|
·
|
A continuation or worsening of global financial and economic conditions could adversely impact our financial position and results of operations and limit our ability to access the credit and capital markets on acceptable terms to obtain funding for our operations and capital projects.
|
·
|
Continued turmoil in the financial markets could have adverse effects on our pension funding obligations.
|
·
|
If economic and political conditions in Iceland deteriorate, our financial position and results of operations could be adversely impacted.
|
·
|
The market price of our common stock has declined significantly, may continue to be volatile, and may decline further.
|
·
|
Any construction and development activities which we may plan will require substantial capital. We may be unable to obtain needed capital or financing on satisfactory terms or at all, which could delay or curtail any such construction projects.
|
·
|
We may be required to write down the value of certain assets.
|
·
|
Our credit ratings have been lowered by two major credit rating agencies.
|
·
|
The cyclical nature of the aluminum industry causes variability in our earnings and cash flows.
|
·
|
Our molten aluminum sales at our Hawesville, Kentucky aluminum smelter ("Hawesville") are subject to long-term sales contracts which limit our ability to cut costs and creates dependence on one major customer.
|
·
|
We may continue to be required to incur substantial costs in order to curtail unprofitable aluminum production.
|
·
|
We may continue to be required to incur substantial costs in order to curtail unprofitable aluminum production.
|
·
|
Currently, the cost of alumina used at Hawesville is significantly higher than under our LME-based alumina contracts and impacts the results of operations at Hawesville.
|
·
|
Changes or disruptions to our raw material supply arrangements and power supply could increase our production costs and reduce the profitability of our operations.
|
·
|
Changes in the relative cost and availability of certain raw materials and energy compared to the price of primary aluminum could affect our operating results.
|
·
|
Unexpected events, including natural disasters, may increase our cost of doing business or disrupt our operations.
|
·
|
We are subject to the risk of union disputes.
|
·
|
We are subject to a variety of environmental laws and regulations that could result in unanticipated costs or liabilities.
|
·
|
International operations expose us to political, regulatory, currency and other related risks.
|
·
|
We have pending against us or may be subject to various lawsuits, claims and proceedings related primarily to employment, commercial, environmental, shareholder, safety and health matters.
|
·
|
Our historical financial information may not be comparable to our results for future periods.
|
·
|
Our level of indebtedness requires significant cash flow to meet our debt service requirements, which reduces cash available for other purposes, such as the payment of dividends, and limits our ability to pursue our growth opportunities.
|
·
|
We may be unable to refinance our outstanding debt securities when required; our senior notes mature in August 2014 and, while our convertible notes mature in 2024, the holders of the convertible notes have the right to put them to us for cash in August 2011.
|
·
|
Restrictive covenants in our credit facility and the indenture governing our senior notes limit our ability to incur additional debt and pursue our growth strategy.
|
·
|
Further consolidation within the metals industry could provide competitive advantages to our competitors.
|
·
|
Reductions in the duty on primary aluminum imports into the European Union decrease our revenues at Grundartangi.
|
·
|
We depend upon intercompany transfers from our subsidiaries to meet our debt service obligations.
|
·
|
Provisions in our charter documents and state law may make it difficult for others to obtain control of Century, even though some stockholders may consider them to be beneficial.
|
Beginning balance
|
Impairment gain (loss)
|
Ending balance
|
||||||||||
(in millions)
|
||||||||||||
Equity investments in Gramercy and SABL, equity in the earnings of Gramercy and SABL and intercompany profit elimination
|
$ | 96 | $ | (75 | ) | $ | 21 | |||||
Pension and OPEB obligations for Gramercy and SABL
|
(2 | ) | 2 | — | ||||||||
$ | 94 | $ | (73 | ) | $ | 21 |
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
(In thousands, except per share data)
|
||||||||||||||||
Net sales:
|
||||||||||||||||
Third-party customers
|
$ | 140,097 | $ | 420,032 | $ | 310,511 | $ | 776,925 | ||||||||
Related party customers
|
49,056 | 125,165 | 103,229 | 239,414 | ||||||||||||
Total
|
$ | 189,153 | $ | 545,197 | $ | 413,740 | $ | 1,016,339 | ||||||||
Gross profit (loss)
|
$ | (5,227 | ) | $ | 156,224 | $ | (77,588 | ) | $ | 252,219 | ||||||
Net loss
|
$ | (107,146 | ) | $ | (3,494 | ) | $ | (221,770 | ) | $ | (237,431 | ) | ||||
Loss per common share:
|
||||||||||||||||
Basic and Diluted
|
$ | (1.45 | ) | $ | (0.08 | ) | $ | (3.20 | ) | $ | (5.78 | ) | ||||
Shipments – primary aluminum (000 pounds):
|
||||||||||||||||
Direct
|
169,353 | 290,214 | 384,065 | 583,437 | ||||||||||||
Toll
|
151,846 | 146,681 | 301,972 | 293,767 | ||||||||||||
Total
|
321,199 | 436,895 | 686,037 | 877,204 | ||||||||||||
Shipments – primary aluminum (metric tons):
|
||||||||||||||||
Direct
|
76,817 | 131,639 | 174,209 | 264,643 | ||||||||||||
Toll
|
68,876 | 66,533 | 136,972 | 133,250 | ||||||||||||
Total
|
145,693 | 198,172 | 311,181 | 397,893 |
Net sales (in millions)
|
2009
|
2008
|
$ Difference
|
% Difference
|
||||||||||||
Three months ended June 30,
|
$ | 189.2 | $ | 545.2 | $ | (356.0 | ) | (65.3 | )% | |||||||
Six months ended June 30,
|
$ | 413.7 | $ | 1,016.3 | $ | (602.6 | ) | (59.3 | )% |
Gross profit (loss) (in millions)
|
2009
|
2008
|
$ Difference
|
% Difference
|
||||||||||||
Three months ended June 30,
|
$ | (5.2 | ) | $ | 156.2 | $ | (161.4 | ) | (103.3 | )% | ||||||
Six months ended June 30,
|
$ | (77.6 | ) | $ | 252.2 | $ | (329.8 | ) | (130.8 | )% |
Other operating expenses- curtailment costs (in millions)
|
2009
|
2008
|
$ Difference
|
% Difference
|
||||||||||||
Three months ended June 30,
|
$ | 9.2 | — | $ | 9.2 | 100 | % | |||||||||
Six months ended June 30,
|
$ | 33.5 | — | $ | 33.5 | 100 | % |
Selling, general and administrative expenses (in millions)
|
2009
|
2008
|
$ Difference
|
% Difference
|
||||||||||||
Three months ended June 30,
|
$ | 11.3 | $ | 13.9 | $ | (2.6 | ) | (18.7 | )% | |||||||
Six months ended June 30,
|
$ | 21.4 | $ | 32.7 | $ | (11.3 | ) | (34.6 | )% |
Interest income (in millions)
|
2009
|
2008
|
$ Difference
|
% Difference
|
||||||||||||
Three months ended June 30,
|
$ | 0.4 | $ | 2.3 | $ | (1.9 | ) | (82.6 | )% | |||||||
Six months ended June 30,
|
$ | 1.1 | $ | 4.8 | $ | (3.7 | ) | (77.1 | )% |
Net loss on forward contracts (in millions)
|
2009
|
2008
|
$ Difference
|
% Difference
|
||||||||||||
Three months ended June 30,
|
$ | (3.3 | ) | $ | (203.8 | ) | $ | 200.5 | (98.4 | )% | ||||||
Six months ended June 30,
|
$ | (6.9 | ) | $ | (652.1 | ) | $ | 645.2 | (98.9 | )% |
Income tax (expense) benefit (in millions)
|
2009
|
2008
|
$ Difference
|
% Difference
|
||||||||||||
Three months ended June 30,
|
$ | (2.6 | ) | $ | 57.7 | $ | (60.3 | ) | (104.5 | )% | ||||||
Six months ended June 30,
|
$ | 1.5 | $ | 196.6 | $ | (195.1 | ) | (99.2 | )% |
Equity in earnings (losses) of joint ventures (in millions)
|
2009
|
2008
|
$ Difference
|
% Difference
|
||||||||||||
Three months ended June 30,
|
$ | (68.7 | ) | $ | 5.6 | $ | (74.3 | ) | (1,326.8 | )% | ||||||
Six months ended June 30,
|
$ | (69.6 | ) | $ | 10.0 | $ | (79.6 | ) | (796.0 | )% |
Six months ended June 30,
|
||||||||
2009
|
2008
|
|||||||
(dollars in millions)
|
||||||||
Net cash provided by operating activities
|
$ | 46.7 | $ | 364.8 | ||||
Net cash used in investing activities
|
(25.1 | ) | (77.1 | ) | ||||
Net cash provided by financing activities
|
79.0 | 3.0 | ||||||
Net change in cash
|
$ | 100.6 | $ | 290.7 |
Natural Gas Forward Financial Purchase Contracts as of:
|
|
||
(Thousands of MMBTU)
|
|||
June 30, 2009
|
December 31, 2008
|
||
2009
|
760
|
3,340
|
For
|
Withheld
|
|
Logan W. Kruger
|
66,199,903
|
548,383
|
Willy R. Strothotte
|
66,226,787
|
541,499
|
Jarl Berntzen
|
66,044,822
|
703,464
|
For
|
Against
|
Abstain
|
Broker Non-votes
|
|
Increase authorized shares of the Company’s common stock
|
62,067,094
|
4,577,476
|
103,715
|
—
|
For
|
Against
|
Abstain
|
Broker Non-votes
|
|
Increase authorized shares for 1996 Plan
|
43,011,612
|
7,254,986
|
50,544
|
16,431,144
|
For
|
Against
|
Abstain
|
Broker Non-votes
|
|
Ratify Deloitte and Touche LLP
|
65,743,262
|
855,565
|
149,458
|
—
|
Century Aluminum Company
|
||||
Date:
|
August 10, 2009
|
By:
|
/s/ LOGAN W. KRUGER
|
|
Logan W. Kruger
|
||||
President and Chief Executive Officer
|
||||
Date:
|
August 10, 2009
|
By:
|
/s/ MICHAEL A. BLESS
|
|
Michael A. Bless
|
||||
Executive Vice-President and Chief Financial Officer
|
1.
|
The name of the corporation is Century Aluminum Company.
|
2.
|
That an Amended and Restated Certificate of Incorporation was filed by the Secretary of State of Delaware on May 27, 2009, and that said Amended and Restated Certificate of Incorporation requires correction as permitted by Section 103 of the General Corporation Law of the State of Delaware.
|
3.
|
The inaccuracy or defect of said Amended and Restated Certificate of Incorporation are that the typed written numbers do not match the typed numerals in paragraphs 2., on page 1 and FOURTH on page 2.
|
4.
|
The Amended and Restated Certificate of Incorporation is corrected to read as follows:
|
CENTURY ALUMINUM COMPANY
|
|
By:
|
/s/ William J. Leatherberry
|
Name:
William J. Leatherberry
|
|
Title:
Senior Vice President,
|
|
General Counsel, and Assistant
Secretary
|
CENTURY ALUMINUM COMPANY
|
|
By:
|
/s/ William J. Leatherberry
|
Name: William J. Leatherberry
|
|
Title: Senior Vice President,
|
|
General Counsel, and Assistant
Secretary
|
TABLE OF CONTENTS
|
|
Page
|
|
Purpose
|
1 |
Effective Date
|
2 |
Type of Plan
|
2 |
Eligibility
|
2
|
Amount of Supplemental Retirement Income Benefit
|
2 |
Vesting
|
4 |
Time and Form of UPB Payment
|
5 |
Time and Form of Vested ERB Payment
|
6 |
Section 409A
|
7 |
Surviving Spouse ERB Benefit
|
8 |
Source of Benefit Payments
|
8 |
Administration of the Plan
|
10 |
Claims and Review Procedure
|
10 |
Amendment or Termination of the Plan
|
13 |
General Provisions
|
14 |
Execution
|
14 |
Appendix A
|
15 |
|
1)
|
I have reviewed this quarterly report on Form 10-Q of Century Aluminum Company;
|
|
2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4)
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report the Company’s conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
|
5)
|
The registrant's other certifying officer and I have disclosed, based on the Company’s most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: August 10, 2009
|
|
/s/ LOGAN W. KRUGER
|
|
Name: Logan W. Kruger
|
|
Title: President and Chief Executive Officer
|
|
1)
|
I have reviewed this quarterly report on Form 10-Q of Century Aluminum Company;
|
|
2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4)
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report the Company’s conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
|
5)
|
The registrant's other certifying officer and I have disclosed, based on the Company’s most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: August 10, 2009
|
|
/s/ MICHAEL A. BLESS
|
|
Name: Michael A. Bless
|
|
Title: Executive Vice President and Chief Financial Officer
|
Certification of the Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(18 U.S.C. 1350)
|
|
1.
|
This Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
2.
|
The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Logan W. Kruger
|
/s/ Michael A. Bless
|
|
By: Logan W. Kruger
|
By: Michael A. Bless
|
|
Title: Chief Executive Officer
|
Title: Chief Financial Officer
|
|
Date: August 10, 2009
|
Date: August 10, 2009
|