CENTURY ALUMINUM COCENX

CENTURY ALUMINUM CO Fair Value Disclosure

10-KFiled Mar 3, 20263 min read
7.    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 and estimates that market participants would use when pricing the asset or liability.
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 December 31, 2025
Level 1Level 2Level 3Total
ASSETS:    
Cash equivalents$122.3 $— $— $122.3 
Trust assets(1)
0.1 — — 0.1 
Derivative instruments— 1.9 — 1.9 
TOTAL$122.4 $1.9 $— $124.3 
LIABILITIES:    
Derivative instruments— 66.0 — 66.0 
TOTAL$— $66.0 $— $66.0 
Recurring Fair Value Measurements
As of December 31, 2024
Level 1Level 2Level 3Total
ASSETS:    
Cash equivalents$7.9 $— $— $7.9 
Trust assets(1)
0.3— — 0.3 
Derivative instruments— 4.5 — 4.5 
TOTAL$8.2 $4.5 $— $12.7 
LIABILITIES:    
Derivative instruments— 4.4 — 4.4 
TOTAL$— $4.4 $— $4.4 
(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.
The following section describes the valuation techniques and inputs used for fair value measurements categorized within Level 2 of the fair value hierarchy:
Level 2 Fair Value Measurements:
Asset / LiabilityValuation TechniquesInputs
LME forward financial sales contractsDiscounted cash flowsQuoted LME forward market, Secured Overnight Financing Rate ("SOFR") discount rate
Midwest Premium ("MWP") forward financial sales contractsDiscounted cash flowsQuoted MWP forward market, SOFR discount rate
Fixed for floating swapsDiscounted cash flowsQuoted LME forward market, quoted MWP forward market
Indiana Hub power price swapsDiscounted cash flowsQuoted Indiana Hub forward market, SOFR discount rate
FX swaps Discounted cash flowsEuro/USD forward exchange rate
Casthouse currency hedgesDiscounted cash flowsEuro/USD forward exchange rate; ISK/USD forward exchange rate
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.
As of the years ending December 31, 2025, and December 31, 2024, there were no Level 3 assets and liabilities.

Historical Timeline

Fiscal YearFiled
2025Mar 3, 2026Showing above
2024Mar 3, 2025
2023Mar 15, 2024
2022Feb 27, 2023
2021Feb 25, 2022
2020Mar 4, 2021
2019Feb 27, 2020
2018Feb 28, 2019
2017Feb 28, 2018
2016Mar 14, 2017
2015Mar 7, 2016

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.

Other Available Disclosures

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