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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2023
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______ to _______.
Commission file number 001-34474
centuryheaderlogoa49.jpg
Century Aluminum Company
(Exact name of registrant as specified in its charter)
Delaware
13-3070826
(State or other jurisdiction of incorporation or organization)
(IRS Employer Identification No.)
One South Wacker Drive
60606
Suite 1000
(Zip Code)
Chicago, Illinois
(Address of principal executive offices)
Registrant’s telephone number, including area code: (312) 696-3101
Securities registered pursuant to Section 12(b) of the Act:
Title of each class:Trading Symbol(s)Name of each exchange on which registered:
Common Stock, $0.01 par value per shareCENX
Nasdaq Stock Market LLC
(Nasdaq Global Select Market)
The registrant had 92,404,663 shares of common stock outstanding at November 7, 2023.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filerAccelerated filer
Non-accelerated filer Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes No




TABLE OF CONTENTS
Page
2

PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
CENTURY ALUMINUM COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share amounts)
(Unaudited)
Three months ended
September 30,
Nine months ended
September 30,
2023202220232022
NET SALES:
Related parties$400.9 $404.9 $1,240.3 $1,321.5 
Other customers144.3 232.3 432.8 925.9 
Total net sales545.2 637.2 1,673.1 2,247.4 
Cost of goods sold556.7 680.2 1,620.6 2,181.3 
Gross (loss) profit(11.5)(43.0)52.5 66.1 
Selling, general and administrative expenses10.8 8.7 36.2 26.2 
Asset impairment   159.4 
Other operating expense (income) - net1.9 (0.2)13.7 0.2 
Operating (loss) income(24.2)(51.5)2.6 (119.7)
Interest expense(9.2)(7.9)(26.6)(20.9)
Interest income0.4 0.1 1.1 0.2 
Net (loss) gain on forward and derivative contracts(25.2)112.6 (73.7)287.7 
Other income (expense) - net1.3 11.6 (2.5)16.7 
(Loss) income before income taxes(56.9)64.9 (99.1)164.0 
Income tax benefit (expense)11.0 (20.6)21.2 (64.6)
(Loss) income before equity in earnings of joint ventures(45.9)44.3 (77.9)99.4 
Equity in earnings of joint ventures0.0 0.0 0.0 0.0 
Net (loss) income(45.9)44.3 (77.9)99.4 
Net loss attributable to noncontrolling interests(3.9) (4.8) 
Net (loss) income attributable to Century stockholders(42.0)44.3 (73.1)99.4 
Less: net income allocated to participating securities 2.7  6.0 
Net (loss) income allocated to common stockholders$(42.0)$41.6 $(73.1)$93.4 
(LOSS) INCOME ATTRIBUTABLE TO CENTURY STOCKHOLDERS PER COMMON SHARE:
Basic$(0.45)$0.46 $(0.79)$1.02 
Diluted$(0.45)$0.43 $(0.79)$0.97 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic92.4 91.3 92.4 91.3 
Diluted92.4 97.3 92.4 97.6 
See Condensed Notes to the Consolidated Financial Statements
3


CENTURY ALUMINUM COMPANY
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
(in millions)
(Unaudited)
Three months ended
September 30,
Nine months ended
September 30,
2023202220232022
Comprehensive (loss) income:
Net (loss) income$(45.9)$44.3 $(77.9)$99.4 
Other comprehensive income (loss) before income tax effect:
Net income (loss) on foreign currency cash flow hedges reclassified as income0.0 0.0 (0.1)(0.1)
Defined benefit plans and other postretirement benefits:
OPEB curtailment gain, net (8.0) (8.0)
Amortization of prior service benefit (cost) during the period (0.3)0.1 (1.2)
Amortization of net loss during the period1.7 1.1 5.0 3.6 
Other comprehensive income (loss) before income tax effect1.7 (7.2)5.0 (5.7)
Income tax effect (0.1) (0.2)
Other comprehensive income (loss)1.7 (7.3)5.0 (5.9)
Comprehensive (loss) income(44.2)37.0 (72.9)93.5 
Comprehensive loss attributable to noncontrolling interests(3.9) (4.8) 
Comprehensive (loss) income attributable to Century stockholders$(40.3)$37.0 $(68.1)$93.5 
See Condensed Notes to the Consolidated Financial Statements
4

CENTURY ALUMINUM COMPANY
CONSOLIDATED BALANCE SHEETS
(in millions)
(Unaudited)
September 30, 2023December 31, 2022
ASSETS
Cash and cash equivalents$70.3 $54.3 
Restricted cash24.4 1.2 
Accounts receivable - net65.3 66.9 
Due from affiliates20.1 4.8 
Inventories465.9 398.8 
Derivative assets9.5 127.3 
Prepaid and other current assets28.9 24.5 
   Total current assets684.4 677.8 
Property, plant and equipment - net994.8 744.4 
Other assets81.8 49.8 
   TOTAL$1,761.0 $1,472.0 
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Accounts payable, trade$221.4 $167.3 
Accrued compensation and benefits42.2 33.0 
Due to affiliates60.3 17.0 
Accrued and other current liabilities61.6 37.6 
Derivative liabilities2.9 9.7 
Deferred credit - preliminary bargain purchase gain161.6  
Current maturities of long-term debt84.0 146.1 
   Total current liabilities634.0 410.7 
Long-term debt418.0 381.6 
Accrued benefits - less current portion112.6 118.0 
Other liabilities53.5 31.4 
Long-term debt due to affiliates10.0  
Due to affiliates - less current portion1.7 8.3 
Deferred tax liabilities83.9 103.1 
Asset retirement obligations60.6 19.6 
   Total noncurrent liabilities740.3 662.0 
COMMITMENTS AND CONTINGENCIES (NOTE 12)
SHAREHOLDERS’ EQUITY:
Preferred stock (Note 8)
0.0 0.0 
Common stock (Note 8)
1.0 1.0 
Additional paid-in capital2,541.8 2,539.6 
Treasury stock, at cost(86.3)(86.3)
Accumulated other comprehensive loss(89.0)(94.0)
Accumulated deficit(2,034.1)(1,961.0)
    Total Century shareholders’ equity333.4 399.3 
Noncontrolling interest53.3  
Total equity$386.7 $399.3 
    TOTAL$1,761.0 $1,472.0 
See Condensed Notes to the Consolidated Financial Statements
5

CENTURY ALUMINUM COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(Unaudited)
Nine months ended September 30,
20232022
CASH FLOWS FROM OPERATING ACTIVITIES:

Net (loss) income$(77.9)$99.4 
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Unrealized loss (gain) on derivative instruments84.2 (302.3)
Other postretirement benefits gain (8.0)
Lower of cost or NRV inventory adjustment 46.5 
Depreciation, depletion and amortization55.3 57.5 
Deferred tax (benefit) provision(23.5)52.3 
Asset impairment 159.4 
Other non-cash items - net(1.2)(12.5)
Change in operating assets and liabilities, net of acquisition:
Accounts receivable - net21.4 8.5 
Due from affiliates(13.0)(5.6)
Inventories26.3 (4.1)
Prepaid and other current assets4.8 5.6 
Accounts payable, trade(45.1)(9.6)
Due to affiliates15.8 (34.0)
Accrued and other current liabilities(2.0)12.5 
Ravenswood retiree medical settlement(2.0)(2.0)
PBGC Settlement(4.5) 
Other - net1.0 (6.4)
Net cash provided by operating activities39.6 57.2 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment(62.7)(70.2)
Proceeds from sales of property, plant and equipment25.70.1
Acquisition of subsidiary net of cash acquired19.4  
Net cash used in investing activities(17.6)(70.1)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit facilities575.2 910.2 
Repayments under revolving credit facilities(632.0)(910.4)
Debt issuance costs (1.6)
Repayment of Iceland Term Facility(9.8) 
Borrowings under Grundartangi casthouse debt facility40.0 40.0 
Borrowings under Vlissingen Facility Agreement10.0  
Carbon credit proceeds33.8  
Net cash provided by financing activities17.2 38.2 
CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH39.2 25.3 
Cash, cash equivalents and restricted cash, beginning of period55.5 40.7 
Cash, cash equivalents and restricted cash, end of period$94.7 $66.0 
6

CENTURY ALUMINUM COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(Unaudited)
Nine months ended September 30,
20232022
Supplemental Cash Flow Information:
Cash paid for:
Interest$22.3 $14.0 
Taxes, net of refunds1.0 1.9
Non-cash investing activities:
Capital expenditures10.2 1.1 
Capitalized interest4.0 3.4 
See Condensed Notes to the Consolidated Financial Statements
7


CENTURY ALUMINUM COMPANY
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(in millions, except share data)
(Unaudited)
Preferred stockCommon stockAdditional paid-in capitalTreasury stock, at costAccumulated other comprehensive lossAccumulated
deficit
Total Century EquityNoncontrolling InterestTotal equity
SharesAmountSharesAmount
Three months ended
September 30, 2023
Balance, June 30, 202353,707 $0.0 92,358,549 $1.0 $2,541.0 $(86.3)$(90.7)$(1,992.1)$372.9 $31.9 $404.8 
Net income (loss)— 0.0 — — — — — (42.0)(42.0)(3.9)(45.9)
Other comprehensive income— — — — — — 1.7 — 1.7 — 1.7 
Share-based compensation— 0.0 26,324 0.0 0.8 — — — 0.8 — 0.8 
Conversion of preferred stock to common stock(199)0.0 19,790 0.0 0.0 — — — 0.0 — 0.0 
Noncontrolling interest of business acquired— 0.0 — 0.0 — — — — — 25.3 25.3 
Balance, September 30, 202353,508 $0.0 92,404,663 $1.0 $2,541.8 $(86.3)$(89.0)$(2,034.1)$333.4 $53.3 $386.7 
Three months ended
September 30, 2022
Balance, June 30, 202258,376 $0.0 91,270,374 $1.0 $2,537.0 $(86.3)$(80.9)$(1,891.8)$479.0 $ $479.0 
Net income— 0.0 — — — — — 44.3 44.3 — 44.3 
Other comprehensive income — — — — — — (7.3)— (7.3)— (7.3)
Share-based compensation— 0.0 43,873 0.0 0.6 — — — 0.6 — 0.6 
Conversion of preferred stock to common stock(330)0.0 32,982 0.0 0.0 — — — 0.0 — 0.0 
Balance, September 30, 202258,046 $0.0 91,347,229 $1.0 $2,537.6 $(86.3)$(88.2)$(1,847.5)$516.6 $ $516.6 
See Condensed Notes to the Consolidated Financial Statements
8

CENTURY ALUMINUM COMPANY
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(in millions, except share data)
(Unaudited)
Preferred stockCommon stockAdditional paid-in capitalTreasury stock, at costAccumulated other comprehensive lossAccumulated
deficit
Total Century EquityNoncontrolling InterestTotal equity
SharesAmountSharesAmount
Nine Months Ended
September 30, 2023
Balance, December 31, 202253,855 $0.0 92,323,978 $1.0 $2,539.6 $(86.3)$(94.0)$(1,961.0)$399.3 $ $399.3 
Net loss— — — — — — — (73.1)(73.1)(4.8)(77.9)
Other comprehensive income— — — — — — 5.0 — 5.0 — 5.0 
Share-based compensation— — 46,059 0.02.2 — — — 2.2 — 2.2 
Conversion of preferred stock to common stock(347)0.034,626 0.0— — — — — — 0.0
Noncontrolling interest of business acquired— — — — — — — — — 58.1 58.1 
Balance, September 30, 202353,508 $0.0 92,404,663 $1.0 $2,541.8 $(86.3)$(89.0)$(2,034.1)$333.4 $53.3 $386.7 
Nine Months Ended
September 30, 2022
Balance, December 31, 202158,542 $0.0 91,231,611 $1.0 $2,535.5 $(86.3)$(82.3)$(1,946.9)$421.0 $ $421.0 
Net income— — — — — — — 99.4 99.4 — 99.4 
Other comprehensive income— — — — — — (5.9)— (5.9)— (5.9)
Share-based compensation— 0.0 66,001 0.0 2.1 — — — 2.1 — 2.1 
Conversion of preferred stock to common stock(496)0.0 49,617 0.0 0.0 — — — 0.0— 0.0 
Balance, September 30, 202258,046 $0.0 91,347,229 $1.0 $2,537.6 $(86.3)$(88.2)$(1,847.5)$516.6 $ $516.6 
See Condensed Notes to the Consolidated Financial Statements
9

CENTURY ALUMINUM COMPANY
Condensed Notes to the Consolidated Financial Statements
Nine months ended September 30, 2023 and 2022
(amounts in millions, except share and per share amounts)
(Unaudited)
1.General
The accompanying unaudited interim consolidated financial statements of Century Aluminum Company should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2022. 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. Operating results for the first nine months of 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. 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.
Certain prior period amounts included in the Consolidated Balance Sheets have been reclassified to conform with the current period presentation.
Our consolidated financial statements include the consolidated results of the Jamalco joint venture, an unincorporated joint venture between the Company and Clarendon Alumina Production Limited. Clarendon Alumina Production's interest in the joint venture is reflected as noncontrolling interest on the accompanying Consolidated Balance Sheet.
2.Acquisition of Jamalco
On May 2, 2023, our wholly-owned subsidiary, Century Aluminum Jamaica Holdings, Inc., completed the acquisition of all the outstanding share capital of General Alumina Holdings Limited, the holder of a 55% interest in Jamalco JV ("Jamalco"), an unincorporated joint venture engaged in bauxite mining and alumina production in Jamaica. The remaining 45% interest in Jamalco is owned by Clarendon Alumina Production Limited ("CAP"), which in turn is owned by the Government of Jamaica. Total consideration for the acquisition was approximately $8.3 million in cash, comprised of a purchase price of $1.00 and $8.3 million related to the remaining restricted cash acquired as of the completion date. The acquisition is expected to result in a bargain purchase gain in part due to the seller experiencing financial distress following curtailment of Jamalco's operations in the second half of 2021 due to a facility fire, with operations restarting in the second half of 2022.
The acquisition was accounted for as a business combination under the acquisition method of accounting. Determining the fair value of identified assets acquired, liabilities assumed and noncontrolling interest requires judgment and involves the use of significant estimates and assumptions. The Company based its fair value estimates on assumptions it believes to be reasonable but are inherently uncertain. These estimates and valuation of the property, plant and equipment, current assets, current liabilities, other long-term assets, provision for resettlement obligations included in other liabilities and asset retirement obligations acquired as well as the related deferred bargain purchase gain and noncontrolling interest are preliminary as of September 30, 2023 and are subject to change as we finalize the valuation or if additional information about the facts and circumstances that existed at the acquisition date become available. We expect to finalize the purchase price allocation as soon as practicable within the measurement period, but not later than one year following the acquisition date.
10

CENTURY ALUMINUM COMPANY
Condensed Notes to the Consolidated Financial Statements (continued)
(amounts in millions, except share and per share amounts)
(Unaudited)
The following table summarizes the consideration transferred and the estimated fair value of identified assets acquired, liabilities assumed and noncontrolling interest at the date of acquisition:
Preliminary purchase price allocationAmount
Consideration transferred
Cash paid $8.3 
Total consideration transferred$8.3 
Less: identifiable assets acquired and liabilities assumed
Cash and cash equivalents$19.4 
Restricted cash8.3 
Inventories93.4 
Accounts receivable - net8.0 
Prepaid and other current assets7.8 
Property, plant and equipment - net250.9 
Other assets
28.0 
Accounts payable, trade(92.9)
Accrued and other current liabilities(33.9)
Other liabilities(24.5)
Asset retirement obligations(36.5)
Total identifiable net assets acquired228.0 
Less: noncontrolling interest (58.1)
Deferred credit - preliminary bargain purchase gain(161.6)
Fair value allocated to net assets acquired, net of bargain purchase gain$8.3 
For the three and nine months ended September 30, 2023, Jamalco contributed $63.4 million and $107.1 million to our total revenues. In connection with the acquisition, the Company incurred approximately $0.2 million and $1.9 million of transaction costs, respectively, for the three and nine months ended September 30, 2023 which are included in selling, general and administrative expenses on the Consolidated Statements of Operations.
The following unaudited pro forma financial information reflects the results of operations of the Company for the three and nine months ended September 30, 2023 and 2022, respectively, as if the acquisition of Jamalco had been completed on January 1, 2022. This unaudited pro forma financial information has been prepared for informational purposes and is not necessarily indicative of the actual consolidated results of operations had the acquisition been completed on January 1, 2022, nor is the information indicative of future results of operations of the combined companies.
Three months ended September 30,Nine months ended September 30,
2023202220232022
Revenue$545.2 $649.5 $1,722.8 $2,259.6 
Earnings$(42.0)$40.7 $(77.0)$103.1 
3.Curtailment of Operations - Hawesville
In August 2022, we fully curtailed production at the Hawesville 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.
11

CENTURY ALUMINUM COMPANY
Condensed Notes to the Consolidated Financial Statements (continued)
(amounts in millions, except share and per share amounts)
(Unaudited)
For the three and nine months ended September 30, 2023, we incurred curtailment charges of approximately $2.0 million and $13.4 million, including $0.0 million and $9.0 million related to excess capacity charges, respectively. These charges were partially offset by income related to scrap and materials sales of $0.0 million and $1.2 million for the three and nine months ended September 30, 2023. Comparatively, for the three and nine months ended September 30, 2022 we recognized $4.5 million and $12.6 million, respectively, of expenses related to accrued wages and severance, triggered by our issuance of the WARN notice and excess capacity charges, partially offset by final plant idling activities. 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. See Note 14. Components of Net Periodic Benefit Cost for additional information.
4.Related Party Transactions
The significant related party transactions occurring during the nine months ended September 30, 2023 and 2022 are described below. We believe all of our transactions with related parties are at prices that approximate market.
Glencore Ownership
As of September 30, 2023, Glencore plc and its affiliates (together "Glencore") beneficially owned 42.9% of Century’s outstanding common stock (46.0% on 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. See Note 8. Shareholders' Equity for a description of our outstanding Series A Convertible Preferred Stock. Century and Glencore enter into various transactions from time to time such as the purchase and sale of primary aluminum, purchase and sale of alumina and other raw materials, tolling agreements as well as forward financial contracts and borrowing and other debt transactions.
Sales to Glencore
For the three months ended September 30, 2023 and 2022, we derived approximately 73.5% and 63.5% of our consolidated net sales from Glencore, respectively.
Glencore purchases aluminum produced at our U.S. smelters at prices based on the LME plus the Midwest regional delivery premium plus any additional market-based product premiums. Glencore purchases aluminum produced at our Grundartangi, Iceland smelter at prices primarily based on the LME plus the European Duty Paid premium plus any additional market-based product premiums.
We have entered into agreements with Glencore pursuant to which we sell certain amounts of alumina at market-based prices. For the three and nine months ended September 30, 2023, we recorded $50.0 million and $136.8 million of revenue related to alumina sales to Glencore, respectively. For the three and nine months ended September 30, 2022, we recorded $4.9 million and $18.8 million, respectively, of revenue related to alumina sales to Glencore.
Purchases from Glencore
We purchase a portion of our alumina and certain other raw material requirements from Glencore. Alumina purchases from Glencore during the three months ended September 30, 2023 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. See Note 15. Derivatives regarding these forward financial sales contracts.
Vlissingen Facility Agreement
On December 9, 2022, Vlissingen entered into a Facility Agreement with Glencore International AG pursuant to which Vlissingen may borrow from time to time up to $90 million (the "Vlissingen Facility Agreement") in one or more loans at a fixed interest rate equal to 8.75% per annum and payable on December 2, 2024. See Note 11. Debt for additional information. Borrowings under the Vlissingen Facility Agreement are expected to be used for general corporate and working capital purposes of Century and its subsidiaries.
12

CENTURY ALUMINUM COMPANY
Condensed Notes to the Consolidated Financial Statements (continued)
(amounts in millions, except share and per share amounts)
(Unaudited)
Carbon Credit Repurchase Agreement
On September 28, 2023, our wholly owned subsidiary Nordural Grundartangi ehf ("Grundartangi"), entered into a structured repurchase arrangement with an affiliate of Glencore pursuant to which it sold 390,000 European Union Allowances ("Carbon Credits") at a price of €82.18 per Carbon Credit, for an aggregate amount of €32.1 million. Pursuant to the terms of the transaction, Grundartangi will repurchase the same number of Carbon Credits by December 21, 2023, at a price of €83.72 per Carbon Credit, for an aggregate amount of EUR €32.7 million. Given the repurchase element of the agreement, the Company substantially retains all of the remaining benefits of the assets and has accounted for the transaction as a financing arrangement in accordance with Topic 606.
Summary
A summary of the aforementioned significant related party sales and purchases is as follows: 
 Three months ended
September 30,
Nine months ended
September 30,
 2023202220232022
Net sales to Glencore$400.9 $404.9 $1,240.3 $1,321.5 
Purchases from Glencore(1)
23.2 56.0 174.5 268.5 
(1)Includes settlements of financial contract positions.
5.    Revenue
We disaggregate our revenue by geographical region as follows:
Net SalesThree months ended
September 30,
Nine months ended
September 30,
2023202220232022
United States$273.9 $353.5 $935.7 $1,443.0 
Iceland207.9 283.7 630.3 804.4 
Jamaica63.4  107.1  
Total$545.2 $637.2 $1,673.1 $2,247.4 

Contract liabilities are recorded when cash payments are received or due in advance of performance. As of September 30, 2023, $10.1 million was recorded in Due to affiliates. There were no contract liabilities as of December 31, 2022.
6.    Fair Value Measurements
We measure certain of our assets and liabilities at fair value. Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
In general, reporting entities should apply valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. Observable inputs are developed using market data and reflect assumptions that market participants would use when pricing the asset or liability. Unobservable inputs are developed using the best information available about the assumptions that market participants would use when pricing the asset or liability.
13

CENTURY ALUMINUM COMPANY
Condensed Notes to the Consolidated Financial Statements (continued)
(amounts in millions, except share and per share amounts)
(Unaudited)
The fair value hierarchy provides transparency regarding the inputs we use to measure fair value. We categorize each fair value measurement in its entirety into the following three levels, based on the lowest level input that is significant to the entire measurement:
Level 1 Inputs - quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2 Inputs - inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 Inputs - unobservable inputs for the asset or liability.
Recurring Fair Value Measurements
As of September 30, 2023
Level 1
Level 2
Level 3
Total
ASSETS:
Cash equivalents$15.8 $ $ $15.8 
Trust assets(1)
0.6   0.6 
Derivative instruments 12.4  12.4 
TOTAL$16.4 $12.4 $ $28.8 
LIABILITIES:
Derivative instruments$ $(10.4)$ $(10.4)
TOTAL$ $(10.4)$ $(10.4)

Recurring Fair Value Measurements
As of December 31, 2022
Level 1
Level 2
Level 3
Total
ASSETS:
Cash equivalents$5.6 $ $ $5.6 
Trust assets(1)
0.1   0.1 
Derivative instruments 127.3 1.8 129.1 
TOTAL$5.7 $127.3 $1.8 $134.8 
LIABILITIES:
Derivative instruments$ $26.4 $4.6 $31.0 
TOTAL$ $26.4 $4.6 $31.0 
(1)Trust assets are currently invested in money market funds. These trust assets are held to fund the non-qualified supplemental executive pension benefit obligations for certain of our officers.
14

CENTURY ALUMINUM COMPANY
Condensed Notes to the Consolidated Financial Statements (continued)
(amounts in millions, except share and per share amounts)
(Unaudited)
The following section describes the valuation techniques and inputs for fair value measurements categorized within Level 2 or Level 3 of the fair value hierarchy:
Level 2 Fair Value Measurements:
Asset / LiabilityValuation TechniquesInputs
LME forward financial sales contractsDiscounted cash flowsQuoted LME forward market
Midwest Premium ("MWP") forward financial sales contracts Discounted cash flowsQuoted MWP forward market
Fixed for floating swapsDiscounted cash flowsQuoted LME forward market, quoted MWP forward market
Nord Pool power price swaps Discounted cash flowsQuoted Nord Pool forward market
Indiana Hub power price swapsDiscounted cash flowsQuoted Indiana Hub forward market
FX swaps Discounted cash flowsEuro/USD forward exchange rate
Casthouse currency hedgesDiscounted cash flowsEuro/USD forward exchange rate; ISK/USD forward exchange rate
NYMEX Henry Hub natural gas price swapsDiscounted cash flowsQuoted NYMEX Henry Hub forward market
Heavy Fuel Oil ("HFO") price swapsDiscounted cash flowsQuoted HFO forward market
When valuing Level 3 assets and liabilities, we use certain significant unobservable inputs. Management incorporates various inputs and assumptions including forward commodity prices, commodity price volatility and macroeconomic conditions, including interest rates and discount rates. Our estimates of significant unobservable inputs are ultimately based on our estimates of risks that market participants would consider when valuing our assets and liabilities.
The following table presents the inputs for recurring fair value measurements categorized within Level 3 of the fair value hierarchy, along with information regarding significant unobservable inputs used to value Level 3 assets and liabilities:
Recurring Level 3 Fair Value Measurements:
As of September 30, 2023
As of December 31, 2022
Asset / LiabilityValuation TechniqueObservable InputsSignificant Unobservable InputFair Value Value/Range of Unobservable InputFair ValueValue/Range of Unobservable Input
LME forward financial sales contractsDiscounted cash flowsQuoted LME forward market
Discount rate net(1)
$ 8.58%$(2.8)8.58%
(1)Represents risk adjusted discount rate.
15

CENTURY ALUMINUM COMPANY
Condensed Notes to the Consolidated Financial Statements (continued)
(amounts in millions, except share and per share amounts)
(Unaudited)
The following table presents the fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis. There was no activity related to Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended September 30, 2023.
Level 3 AssetsLevel 3 Liabilities
For the three months ended September 30, 2022
LME Forward financial sales contractsLME forward financial sales contractsCasthouse currency hedges
Balance as of July 1, 2022$1.6 $(3.8) 
Total realized/unrealized gains (losses)
     Included in Net income(1)
1.6 1.5  
Transfers into Level 3(2)
  0.0 
Balance as of September 30, 2022
$3.2 $(2.3)$0.0 
Change in unrealized gains (losses)(1)
$1.6 $1.5 $0.0 
(1)Gains and losses are presented in the Consolidated Statement of Operations within the line item "Net gain (loss) on forward and derivative contracts."
(2)Transfers into Level 3 due to period of time remaining in derivative contract.
For the nine months ended September 30, 2023
Level 3 AssetsLevel 3 Liabilities
LME forward financial sales contractsLME forward financial sales contracts
Balance as of January 1, 2023$1.8 $(4.6)
Transfers out of Level 3(1)
(1.8)4.6 
Balance as of September 30, 2023
$ $ 
Change in unrealized gains (losses)(2)
$ $ 
(1)Transfers out of Level 3 due to period of time remaining in derivative contract.
(2)Gains and losses are presented in the Consolidated Statement of Operations within the line item "Net gain (loss) on forward and derivative contracts."
16

CENTURY ALUMINUM COMPANY
Condensed Notes to the Consolidated Financial Statements (continued)
(amounts in millions, except share and per share amounts)
(Unaudited)
Level 3 AssetsLevel 3 Liabilities
For the nine months ended September 30, 2022
LME forward financial sales contractsNord Pool SwapsLME forward financial sales contractsFX SwapsCasthouse currency hedges
Balance as of January 1, 2022$ $0.2 $(5.1)$(0.2)$ 
Total realized/unrealized gains (losses)
     Included in Net income(1)
1.6  5.3   
Transfers into Level 3(2)
1.6  (2.5)  
Transfers out of Level 3(3)
 (0.2) 0.2 0.0
Balance as of September 30, 2022
$3.2 $ $(2.3)$ $ 
Change in unrealized gains (losses)(1)
$1.6 $ $5.3 $ $ 
(1)Gains and losses are presented in the Consolidated Statement of Operations within the line item "Net gain (loss) on forward and derivative contracts."
(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.
7. Earnings Per Share
Basic earnings per share ("EPS") amounts are calculated by dividing net income (loss) allocated to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS amounts assume the issuance of common stock for all potentially dilutive securities.
17

CENTURY ALUMINUM COMPANY
Condensed Notes to the Consolidated Financial Statements (continued)
(amounts in millions, except share and per share amounts)
(Unaudited)
The following table shows the basic and diluted (loss) earnings per share:
For the three months ended September 30,
20232022
Net Income (Loss)
Shares
(in millions)
Per ShareNet Income (Loss)
Shares
(in millions)
Per Share
Net (loss) income attributable to Century stockholders$(42.0)$44.3 
Less: net income allocated to participating securities 2.7 
Basic EPS:
Net (loss) income allocated to common stockholders$(42.0)92.4 $(0.45)$41.6 91.3 $0.46 
Effect of Dilutive Securities(1):
Share-based compensation  (0.4)1.4 
Convertible senior notes  0.7 4.6 
Diluted EPS:
Net income allocated to common stockholders with assumed conversion$(42.0)92.4 $(0.45)$41.9 97.3 $0.43 
For the nine months ended September 30,
2023
2022
Net Income (Loss)
Shares
(in millions)
Per ShareNet Income (Loss)
Shares
(in millions)
Per Share
Net (loss) income attributable to Century stockholders$(73.1)$99.4 
Less: net income allocated to participating securities 6.0 
Basic EPS:
Net (loss) income allocated to common stockholders$(73.1)92.4 $(0.79)$93.4 91.3 $1.02 
Effect of Dilutive Securities(1):
Share-based compensation  (1.2)1.7 
Convertible senior notes  2.1 4.6 
Diluted EPS:
Net (loss) income allocated to common stockholders with assumed conversion$(73.1)92.4 $(0.79)$94.3 97.6 $0.97 
Three months ended
September 30,
Nine months ended
September 30,
Securities excluded from the calculation of diluted EPS (in millions)(1):
2023202220232022
Share-based compensation0.8  0.9  
Convertible preferred shares5.4 5.8 5.4 5.8 
Convertible notes4.6  4.6  
(1)In periods when we report a net loss, all share-based compensation awards, convertible preferred shares and convertible senior notes are excluded from the calculation of diluted weighted average shares outstanding because of their anti-dilutive effect on earnings (loss) per share.
18

CENTURY ALUMINUM COMPANY
Condensed Notes to the Consolidated Financial Statements (continued)
(amounts in millions, except share and per share amounts)
(Unaudited)
8. Shareholders’ Equity
Common Stock
As of September 30, 2023 and December 31, 2022, we had 195,000,000 shares of common stock, $0.01 cent par value per share, authorized under our Restated Certificate of Incorporation, of which 99,591,184 shares were issued and 92,404,663 shares were outstanding at September 30, 2023, and 99,510,499 were issued and 92,323,978 shares were outstanding at December 31, 2022.
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
As of September 30, 2023 and December 31, 2022, we had 5,000,000 shares of preferred stock, $0.01 cent 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. Depending upon the terms of preferred stock established by our Board of Directors, any or all of the preferred stock could have preference over the common stock with respect to dividends and other distributions and upon the liquidation of Century. In addition, issuance of any shares of preferred stock with voting powers may dilute the voting power of the outstanding common stock.
Series A Convertible Preferred Stock
Shares Authorized and Outstanding. In 2008, we issued 160,000 shares of our Series A Convertible Preferred Stock. Glencore holds all of the issued and outstanding Series A Convertible Preferred Stock. At September 30, 2023 and December 31, 2022, 53,508 and 53,854 shares of Series A Convertible Preferred Stock were 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 of preferred to common shares is 100 shares of common stock for each share of preferred stock. Our Series A Convertible Preferred Stock has a par value of $0.01 per share.  
Stock Repurchase Program
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. 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. 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.
Shares of common stock repurchased are recorded at cost as treasury stock and result in a reduction of shareholders’ equity in the Consolidated Balance Sheets. From time to time, treasury shares may be reissued as contributions to our employee benefit plans and for the conversion of convertible preferred stock. When shares are reissued, we use an average cost method for determining cost. The difference between the cost of the shares and the reissuance price is added to or deducted from additional paid-in capital.
Through September 30, 2023 we repurchased 7,186,521 shares of common stock for an aggregate purchase price of $86.3 million. We have made no repurchases since April 2015 and have approximately $43.7 million remaining under the repurchase program authorization as of September 30, 2023.
19

CENTURY ALUMINUM COMPANY
Condensed Notes to the Consolidated Financial Statements (continued)
(amounts in millions, except share and per share amounts)
(Unaudited)
9.    Income Taxes
For the three months ended September 30, 2023 and September 30, 2022, we recorded an income tax benefit of $11.0 million and an income tax expense of $20.6 million, respectively. For the nine months ended September 30, 2023 and September 30, 2022, we recorded an income tax benefit of $21.2 million and an income tax expense of $64.6 million, respectively. The change is primarily due to changes in pretax income amounts and jurisdictional mix on a year over year basis.
Our income tax expense or benefit for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items. 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.
As of September 30, 2023, 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.
The Inflation Reduction Act of 2022 ("IRA") was signed into law on August 16, 2022, and the CHIPS and Science Act of 2022 was signed into law on August 9, 2022. These laws, effective January 1, 2023, 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. As of September 30, 2023, these provisions, which were effective January 1, 2023, have not had any material impact on the financial statements. The IRA provides several tax incentives to promote clean energy and the production of critical minerals in the U.S. We are continuing to evaluate potential tax benefits available under the acts and expect the release of additional guidance from the U.S. Department of Treasury by the end of the year.
10.    Inventories
Inventories consist of the following:
September 30, 2023December 31, 2022
Raw materials$142.7 $64.9 
Work-in-process43.0 46.0 
Finished goods36.5 58.0 
Operating and other supplies243.7 229.9 
Total inventories$465.9 $398.8 
Inventories are stated at the lower of cost or Net Realizable Value ("NRV") using the first-in, first-out or the weighted average cost method.
20

CENTURY ALUMINUM COMPANY
Condensed Notes to the Consolidated Financial Statements (continued)
(amounts in millions, except share and per share amounts)
(Unaudited)
11. Debt
September 30, 2023December 31, 2022
Debt classified as current liabilities:
Hancock County industrial revenue bonds ("IRBs") due April 1, 2028, interest payable quarterly (variable interest rates (not to exceed 12%))(1)
$7.8 $7.8 
U.S. Revolving Credit Facility(2)
68.2 90.0 
Iceland Revolving Credit Facility(3)
 35.0 
Grundartangi casthouse facility(5)
3.1  
Iceland Term Facility(4)
4.8 13.3 
Vlissingen Facility Agreement(6)
0.1 
Debt classified as non-current liabilities:
Grundartangi casthouse facility, net of financing fees of $0.7 million at September 30, 2023(4)
86.2 49.4 
Iceland Term Facility, net of financing fees of $0.0 million and current portion at September 30, 2023(5)
 1.2 
Vlissingen Facility Agreement(6)
10.0  
7.5% senior secured notes due April 1, 2028, net of financing fees of $2.8 million at September 30, 2023, interest payable semiannually
247.2