Derivative and hedging instruments (Tables)

9 Months Ended

Sep. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair value of derivative assets and liabilities by balance sheet location

The following table provides the fair value and balance sheet classification of our derivatives:

Fair Value of Derivatives
	Balance sheet location	September 30, 2013		December 31, 2012
DERIVATIVE ASSETS:
Midwest premium contracts (1)	Prepaid and other current assets	$	363	$	—
TOTAL		$	363	$	—
DERIVATIVE LIABILITIES:
Aluminum sales premium contracts	Accrued and other current liabilities	$	771	$	1,170
E.ON contingent obligation – net (2)	Other liabilities	—		15,369
TOTAL		$	771	$	16,539

(1) We entered into a fixed-price forward contract that settles monthly from January 2014 to March 2014 based on the Midwest Premium price published in the Platts Metals Week for the applicable period.

(2) Based on the LME forward market prices for primary aluminum at September 30, 2013 and management's estimate of the LME forward market for periods beyond the quoted periods, we believe that we will not have any payment obligations for the E.ON contingent obligation through the term of the agreement which expires in 2028. See Note 10 Debt for additional information about the E.ON contingent obligation fair value.

Derivatives not designated as hedging instruments

Derivatives not designated as hedging instruments:
	Gain (loss) recognized in income from derivatives
		Three months ended September 30,						Nine months ended September 30,
	Location	2013			2012			2013			2012
E.ON contingent obligation – net	Net gain (loss) on forward and derivative contracts	$	353		$	—		$	16,428		$	—
Midwest premium contracts	Net gain (loss) on forward and derivative contracts	363			—			363			—
Primary aluminum put option contracts	Net gain (loss) on forward and derivative contracts	—			—			—			(2,725		)
Aluminum sales premium contracts	Related party sales	278			386			1,039			917
Aluminum sales premium contracts	Net gain (loss) on forward and derivative contracts	(276		)	(404		)	(640		)	(1,389		)
E.ON contingent obligation – net	Interest expense - third party	(353		)	(353		)	(1,059		)	(1,059		)

Outstanding forward contracts not designated as hedging instruments

We had the following outstanding forward contracts that were entered into that were not designated as hedging instruments:

	September 30, 2013	December 31, 2012
Primary aluminum sales contract premium (metric tons) (1)	5,993	20,400
Midwest premium contracts (metric tons)	6,000	—

(1) Represents the remaining physical deliveries under the Glencore Metal Agreement.