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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, 2020
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
cenx-20200930_g1.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 89,484,834 shares of common stock outstanding at October 29, 2020.

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

3

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,
2020
2019
2020
2019
NET SALES:
Related parties$235.8 $282.3 $792.4 $898.7 
Other customers157.1 155.7 423.6 502.5 
Total net sales392.9 438.0 1,216.0 1,401.2 
Cost of goods sold420.0 451.7 1,251.3 1,431.8 
Gross profit (loss)(27.1)(13.7)(35.3)(30.6)
Selling, general and administrative expenses11.0 11.6 31.7 38.2 
Other operating (income) expense - net(0.2)(0.1)0.3 0.4 
Operating income (loss)(37.9)(25.2)(67.3)(69.2)
Interest expense - Hawesville term loan(0.4)(0.8)(1.6)(1.3)
Interest expense(9.1)(5.6)(21.0)(17.3)
Interest income 0.1 0.2 0.6 0.6 
Net gain (loss) on forward and derivative contracts(9.4)10.3 (1.9)10.7 
Loss on early extinguishment of debt(1.2) (1.2) 
Other income (expense) - net0.0 (0.9)3.0 (1.6)
Income (loss) before income taxes and equity in earnings of joint ventures(57.9)(22.0)(89.4)(78.1)
Income tax benefit (expense)(0.3)1.3 1.6 5.7 
Income (loss) before equity in earnings of joint ventures(58.2)(20.7)(87.8)(72.4)
Loss on sale of BHH   (4.3)
Equity in earnings of joint ventures  0.0 0.7 
Net income (loss)$(58.2)$(20.7)$(87.8)$(76.0)
Net income (loss) allocated to common stockholders$(58.2)$(20.7)$(87.8)$(76.0)
EARNINGS (LOSS) PER COMMON SHARE:
Basic and diluted$(0.65)$(0.23)$(0.98)$(0.86)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic and diluted89.5 88.9 89.4 88.6 
See condensed notes to consolidated financial statements
4


CENTURY ALUMINUM COMPANY
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(in millions)
(Unaudited)
Three months ended September 30,
Nine months ended September 30,
2020
2019
2020
2019
Comprehensive income (loss):
Net income (loss)$(58.2)$(20.7)$(87.8)$(76.0)
Other comprehensive income before income tax effect:
Net income (loss) on foreign currency cash flow hedges reclassified as income(0.1)(0.0)(0.1)(0.1)
Defined benefit plans and other postretirement benefits:
Amortization of prior service benefit (cost) during the period(0.7)(1.2)(2.3)(3.8)
Amortization of net gain (loss) during the period2.1 2.2 6.5 6.7 
Other comprehensive income (loss) before income tax effect1.3 1.0 4.1 2.8 
Income tax effect(0.2)(0.3)(0.8)(0.8)
Other comprehensive income (loss)1.1 0.7 3.3 2.0 
Total comprehensive income (loss)$(57.1)$(20.0)$(84.5)$(74.0)
See condensed notes to consolidated financial statements












5

CENTURY ALUMINUM COMPANY
CONSOLIDATED BALANCE SHEETS
(in millions)
(Unaudited)
September 30, 2020
December 31, 2019
ASSETS
Cash and cash equivalents$81.4 $38.9 
Restricted cash3.7 0.8 
Accounts receivable - net50.6 70.1 
Due from affiliates15.0 30.1 
Inventories267.5 320.6 
Derivative assets10.6 14.6 
Prepaid and other current assets14.5 12.2 
   Total current assets443.3 487.3 
Property, plant and equipment - net899.7 949.2 
Due from affiliates - less current portion1.3 0.5 
Other assets61.1 62.7 
   TOTAL$1,405.4 $1,499.7 
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Accounts payable, trade$85.6 $97.1 
Due to affiliates2.9 32.9 
Accrued and other current liabilities69.5 61.5 
Accrued employee benefits costs10.4 10.4 
Hawesville term loan20.0 20.0 
U.S. revolving credit facility5.0 4.0 
Industrial revenue bonds7.8 7.8 
   Total current liabilities201.2 233.7 
Senior notes payable242.8 249.2 
Hawesville term loan - less current portion5.0 20.0 
Iceland revolving credit facility45.0  
Accrued pension benefits costs - less current portion56.0 60.8 
Accrued postretirement benefits costs - less current portion98.8 100.7 
Other liabilities46.2 42.4 
Leases - right of use liabilities23.4 22.8 
Deferred taxes94.6 95.1 
   Total noncurrent liabilities611.8 591.0 
COMMITMENTS AND CONTINGENCIES (NOTE 10)  
SHAREHOLDERS’ EQUITY:
Preferred stock (Note 6)
0.0 0.0 
Common stock (Note 6)
1.0 1.0 
Additional paid-in capital2,528.4 2,526.5 
Treasury stock, at cost(86.3)(86.3)
Accumulated other comprehensive loss(106.5)(109.8)
Accumulated deficit(1,744.2)(1,656.4)
Total shareholders’ equity
592.4 675.0 
TOTAL
$1,405.4 $1,499.7 
See condensed notes to consolidated financial statements
6


CENTURY ALUMINUM COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(Unaudited)
Nine months ended September 30,
2020
2019
CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss)$(87.8)$(76.0)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Loss on sale of BHH 4.3 
Unrealized (gain) loss on derivative instruments2.3 (10.9)
Lower of cost or NRV inventory adjustment40.8 15.8 
Depreciation and amortization61.7 63.0 
Loss on early extinguishment of debt1.0  
Other non-cash items - net1.5 (5.9)
Change in operating assets and liabilities:
Accounts receivable - net19.5 10.7 
Due from affiliates14.9 (0.2)
Inventories12.3 5.7 
Prepaid and other current assets(1.0)3.8 
Accounts payable, trade(12.0)(11.3)
Due to affiliates(29.9)(10.3)
Accrued and other current liabilities6.7 8.4 
Ravenswood retiree medical settlement(2.0)(2.0)
Other - net5.3 0.5 
Net cash provided by (used in) operating activities33.3 (4.4)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment(11.5)(39.9)
Proceeds from sales of property, plant & equipment0.1  
Proceeds from sale of joint venture 10.5 
Net cash provided by (used in) investing activities(11.4)(29.4)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of debt(250.0) 
Proceeds from issuance of debt243.8  
Borrowing under Hawesville term loan 40.0 
Repayments on Hawesville term loan(15.0) 
Borrowings under revolving credit facilities173.6 314.6 
Repayments under revolving credit facilities(127.6)(337.5)
Debt issuance costs(1.1) 
Debt retirement costs(0.2) 
Other short-term borrowings 3.4 
Repayment on other short-term borrowings (3.4)
Issuance of common stock 0.3 
Net cash provided by (used in) financing activities23.5 17.4 
CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH45.4 (16.4)
Cash, cash equivalents and restricted cash, beginning of period39.7 39.7 
Cash, cash equivalents and restricted cash, end of period$85.1 $23.3 
7

CENTURY ALUMINUM COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(Unaudited)
Nine months ended September 30,
2020
2019
Supplemental Cash Flow Information:
Cash paid for:
Interest$14.1 $11.6 
Taxes0.1 0.3 
Non-cash investing activities:
Capital expenditures0.4 3.9 
See condensed notes to consolidated financial statements
8


CENTURY ALUMINUM COMPANY
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(in millions)
(Unaudited)
Preferred stockCommon stockAdditional paid-in capitalTreasury stock, at costAccumulated other comprehensive lossAccumulated
deficit
Total shareholders’ equity
Three months ended September 30, 2020
Balance, June 30, 2020$0.0 $1.0 $2,527.6 $(86.3)$(107.6)$(1,686.0)$648.7 
Net income (loss)— — — — — (58.2)(58.2)
Other comprehensive income (loss)— — — — 1.1 — 1.1 
Share-based compensation— — 0.8 — — — 0.8 
Conversion of preferred stock to common stock   — — —  
Balance, September 30, 2020
$0.0 $1.0 $2,528.4 $(86.3)$(106.5)$(1,744.2)$592.4 
Three months ended September 30, 2019
Balance, June 30, 2019$0.0 $1.0 $2,524.3 $(86.3)$(98.7)$(1,630.9)$709.4 
Net income (loss)— — — — — (20.7)(20.7)
Other comprehensive income (loss)— — — — 0.7 — 0.7 
Share-based compensation— — 0.5 — — — 0.5 
Conversion of preferred stock to common stock   — — —  
Balance, September 30, 2019
$0.0 $1.0 $2,524.8 $(86.3)$(98.0)$(1,651.6)$689.9 
 Preferred stockCommon stockAdditional paid-in capitalTreasury stock, at costAccumulated other comprehensive lossAccumulated
deficit
Total shareholders’ equity
Nine months ended September 30, 2020
Balance, December 31, 2019$0.0 $1.0 $2,526.5 $(86.3)$(109.8)$(1,656.4)$675.0 
Net income (loss)— — — — — (87.8)(87.8)
Other comprehensive income (loss)— — — — 3.3 — 3.3 
Share-based compensation— 0.0 1.9 — — — 1.9 
Conversion of preferred stock to common stock0.0 0.0 0.0 — — — 0.0 
Balance, September 30, 2020
$0.0 $1.0 $2,528.4 $(86.3)$(106.5)$(1,744.2)$592.4 
Nine months ended September 30, 2019
Balance, December 31, 2018$ $1.0 $2,523.0 $(86.3)$(98.7)$(1,576.8)$762.2 
9

Impact of ASU 2018-02*
— — — — (1.3)1.3  
Net income (loss)— — — — — (76.0)(76.0)
Other comprehensive income (loss)— — — — 2.0 — 2.0 
Share-based compensation— 0.0 1.8 — — — 1.8 
Conversion of preferred stock to common stock0.0 0.0 (0.0)— — — 0.0 
Balance, September 30, 2019
$0.0 $1.0 $2,524.8 $(86.3)$(98.0)$(1,651.6)$689.9 

* ASU 2018-02. See Note 7. Income Taxes for further information regarding our adoption of ASU 2018-02.

10

CENTURY ALUMINUM COMPANY
Condensed Notes to the Consolidated Financial Statements
Three and nine months ended September 30, 2020 and 2019
(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, 2019. 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 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. 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.
Recently Issued Accounting Standards
In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes." Amendments include the removal of certain exceptions to the general principles of ASC 740 and to improve and simplify accounting for income taxes by clarifying and amending existing guidance. Updates are related to intraperiod tax allocation, interim period tax calculations, tax laws or rate changes in interim periods, and income taxes related to employee stock ownership plans. The ASU is effective for fiscal years beginning after December 15, 2020, including interim periods therein and early adoption is permitted. The Company is currently evaluating the impacts of ASU 2019-12 and we do not expect the adoption to have a material effect on the consolidated financial statements.
In March 2020, the Securities and Exchange Commission (“SEC”) issued a final rule that amends the disclosure requirements related issuers and guarantors of certain registered securities under SEC Regulation S-X Rule 3-10. The final rule allows registrants to provide alternative financial disclosures in either the registrant’s MD&A or financial statements, rather than the previous requirement under Rule 3-10, which required condensed consolidating financial information within the financial statements. It also simplifies the requirements in Rule 3-10 that currently must be met for a parent company to qualify for exceptions allowing it to provide alternative disclosures rather than full audited financial statements. The ruling also reduces the periods for which summarized financial information is required to be presented to the most recent (1) annual period and (2) year-to-date interim period. The final rule applies to annual reports on Form 10-K for fiscal years ending after January 4, 2021 and quarterly reports on Form 10-Q for quarterly periods ending after January 4, 2021 and registrants may voluntarily comply with the final rule before the effective date. The Company does not expect the future adoption, which is limited to disclosures only, to have a material effect on the Company’s consolidated financial statements.

2.Related Party Transactions
The significant related party transactions occurring during the nine months ended September 30, 2020 and 2019 are described below. We believe all of our transactions with related parties are at prices that approximate market.
Glencore ownership
As of September 30, 2020, Glencore plc and its affiliates (together "Glencore") beneficially owned 42.9% of Century’s outstanding common stock (46.8% 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 6. Shareholders' Equity for a description of our outstanding Series A Convertible Preferred Stock. From time to time, Century and Glencore enter into various transactions for the purchase and sale of primary aluminum, purchase and sale of alumina, tolling agreements, certain forward financial contracts and loan agreements.
11

CENTURY ALUMINUM COMPANY
Condensed Notes to the Consolidated Financial Statements (continued)
(amounts in millions, except share and per share amounts)
(Unaudited)
Sales to Glencore
For the three months ended September 30, 2020 and 2019, approximately 60.0% and 64.5%, respectively, of our consolidated net sales were made to Glencore, while for the nine months ended September 30, 2020 and 2019, we derived 65.2% and 64.1%, respectively, of our consolidated net sales from sales to Glencore.
Glencore purchases aluminum produced at our U.S smelters at prices based on the London Metal Exchange (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 based on the LME plus the European Duty Paid premium plus any additional market-based product premiums.
We have also entered into agreements with Glencore pursuant to which we sell certain amounts of alumina at market-based prices. For the three months and nine months ended September 30, 2020, we recorded $16.4 million and $17.6 million of revenue related to alumina sales to Glencore, respectively. For the three months and nine months ended September 30, 2019, we recorded $4.5 million and $26.2 million of revenue related to alumina sales to Glencore, respectively.
Purchases from Glencore
We purchase a portion of our alumina requirements from Glencore. Alumina purchases from Glencore during the nine months ended September 30, 2020 were priced based on published alumina and aluminum indices.
Financial contracts with Glencore
We have certain financial contracts with Glencore. See Note 13. Derivatives regarding these forward financial sales contracts.
Hawesville Term Loan

On April 29, 2019, we entered into a loan agreement with Glencore Ltd. pursuant to which the Company borrowed $40.0 million (the "Hawesville Term Loan”).  See Note 9. Debt for additional information. Borrowings under the Hawesville Term Loan were used to partially finance the second phase of the Hawesville restart project.
Summary
A summary of the aforementioned significant related party transactions is as follows: 
 
Three months ended September 30,
Nine months ended September 30,
 
2020
2019
2020
2019
Net sales to Glencore$235.8 $282.3 $792.4 $898.7 
Purchases from Glencore63.7 43.6 137.3 249.8 
Purchases from BHH (1)
 2.2  16.8 
(1) We previously owned a 40% interest in Baise Haohai Carbon Co. Ltd. ("BHH") and purchased carbon anodes from them for use in our operations. Purchases represented herein were prior to the divestiture of our interest in BHH in May 2019.

3.Revenue

We disaggregate our revenue by geographical region as follows:
Net Sales
Three months ended September 30,
Nine months ended September 30,
2020
2019
2020
2019
United States$242.0 $277.1 $764.0 $911.9 
Iceland150.9 160.9 452.0 489.3 
Total$392.9 $438.0 $1,216.0 $1,401.2 
12

CENTURY ALUMINUM COMPANY
Condensed Notes to the Consolidated Financial Statements (continued)
(amounts in millions, except share and per share amounts)
(Unaudited)

4.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.
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 - significant unobservable inputs for the asset or liability.

Recurring Fair Value Measurements
As of September 30, 2020
Level 1
Level 2
Level 3
Total
ASSETS:
Cash equivalents$71.2 $ $ $71.2 
Trust assets (1)
0.2   0.2 
Derivative instruments 11.4 6.6 18.0 
TOTAL$71.4 $11.4 $6.6 $89.4 
LIABILITIES:
Contingent obligation – net$ $ $ $ 
Derivative instruments 4.9 0.8 5.7 
TOTAL$ $4.9 $0.8 $5.7 
(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.

Recurring Fair Value Measurements
As of December 31, 2019
Level 1
Level 2
Level 3
Total
ASSETS:
Cash equivalents$23.3 $ $ $23.3 
Trust assets (1)
0.2   0.2 
Surety bonds (2)
1.8   1.8 
Derivative instruments 9.1 10.6 19.7 
TOTAL$25.3 $9.1 $10.6 $45.0 
LIABILITIES:
Contingent obligation – net $ $ $ $ 
Derivative instruments 1.3 2.9 4.2 
TOTAL$ $1.3 $2.9 $4.2 
13

CENTURY ALUMINUM COMPANY
Condensed Notes to the Consolidated Financial Statements (continued)
(amounts in millions, except share and per share amounts)
(Unaudited)
(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.
(2) Surety bonds were invested in U.S. treasury bills and represent collateral against our workers' compensation insurance policy.
We use the following valuation techniques and inputs for fair value measurements categorized within Level 2 of the fair value hierarchy:
Level 2 Fair Value Measurements:
Asset / LiabilityLevelValuation TechniquesInputs
LME forward financial sales contracts2Discounted cash flowsQuoted LME forward market
MWP forward financial sales contracts 2Discounted cash flowsQuoted MWP forward market
Fixed for floating swaps2Discounted cash flowsQuoted LME forward market, quoted MWP forward market
Nord Pool power price swaps 2Discounted cash flowsQuoted Nord Pool forward market
MISO Indiana Hub power price swaps2Discounted cash flowsQuoted Indy Hub forward market
FX swaps 2Discounted cash flowsEuro/USD forward exchange rate
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 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:
Level 3 Fair Value Measurements:
Asset / LiabilityFair Value at September 30, 2020Valuation TechniqueObservable InputsSignificant Unobservable InputValue/Range of Unobservable Input
LME forward financial sales contracts$6.6 Discounted cash flowsQuoted LME forward market prices
Discount rate (1)
10.00%
Contingent obligation $ Discounted cash flowsQuoted LME forward market prices
Management's estimates of the LME forward market price beyond the quoted periods (2)
$1,754/T-$2,312/T
Hawesville L4 power price swaps$(0.8)Discounted cash flowsQuoted Indy Hub forward market prices
Estimates of locational margin prices during contract term in megawatt hours (MWh) (3)
$0.45/MWh
(1) Represents risk adjusted discount rate.
(2) Represents the range of estimated forward LME prices of primary aluminum through the term of the agreement in December 2028.
14

CENTURY ALUMINUM COMPANY
Condensed Notes to the Consolidated Financial Statements (continued)
(amounts in millions, except share and per share amounts)
(Unaudited)
(3) Represents historical average of locational margin prices from January 2017-September 2020
The following table presents the fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis.
Level 3 AssetsLevel 3 Liabilities
For the three months ended September 30, 2020
LME forward financial sales contractsHawesville L4 power price swaps
Balance as of July 1, 2020
$6.1 $(1.5)
Total realized/unrealized gains (losses)
     Included in net income (loss) (1)
(4.2)(0.2)
Purchases, sales, settlements
     Purchases  
     Sales  
     Settlements 0.9 
Transfers into Level 3 (2)
4.7  
Transfers out of Level 3   
Balance as of September 30, 2020
$6.6 $(0.8)
Change in unrealized gains (losses) (1)
$(4.2)$0.7 
(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 during the third quarter of 2020.

For the three months ended September 30, 2019
Level 3 AssetsLevel 3 Liabilities
U.S. LME forward financial sales contracts Hawesville L4 Power Price Swaps
Balance as of July 1, 2019$6.9 $(2.7)
Total realized/unrealized gains (losses)
     Included in Net Income (1)
8.8 1.2 
Purchases, sales, settlements
     Purchases  
     Sales  
     Settlements  
Transfers into Level 3  
Transfers out of Level 3  
Balance as of September 30, 2019
$15.7 $(1.5)
Change in unrealized gains (losses) (1)
$8.8 $1.2 
(1) Gains and losses are presented in the Consolidated Statement of Operations within the line item "Net gain (loss) on forward and derivative contracts."

15

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, 2020
LME forward financial sales contractsHawesville L4 power price swaps
Balance as of January 1, 2020
$10.6 $(2.9)
Total realized/unrealized gains (losses)
     Included in net income (loss) (1)
0.8 (1.6)
Purchases, sales, settlements
     Purchases  
     Sales  
     Settlements 3.7 
Transfers into Level 3 (2)
4.7  
Transfers out of Level 3 (3)
(9.5) 
Balance as of September 30, 2020
$6.6 $(0.8)
Change in unrealized gains (losses) (1)
$0.8 $2.1 
(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 during the third quarter of 2020.
(3) Transfer out of Level 3 due to period of time remaining in derivative contract.

For the nine months ended September 30, 2019
Level 3 AssetsLevel 3 Liabilities
Nord Pool power price swapsUS LME forward financial sales contracts Hawesville L4 Power Price SwapsIceland LME forward financial sales contractsFX Swaps
Balance as of January 1, 2019
$4.7 $0.3 $ $(0.2)$(0.3)
Total realized/unrealized gains (losses)
     Included in Net Income (1)
(1.0)15.6 1.2 (0.1)(0.3)
Purchases, sales, settlements
     Purchases     
     Sales     
     Settlements     
Transfers into Level 3 (2)
 (0.2)(2.7)  
Transfers out of Level 3(3.7)  0.3 0.6 
Balance as of September 30, 2019
$ $15.7 $(1.5)$ $ 
Change in unrealized gains (losses) (1)
$(1.0)$