Company: CENX
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000949157-25-000035
Chunk: 23

Company: CENTURY ALUMINUM CO
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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. 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 Statements of Operations.As of March 31, 2025, all of Century's U.S. and certain foreign deferred tax assets, net of deferred tax liabilities, continue to be subject to a full valuation allowance.

Section 45X of the Inflation Reduction Act of 2022 ("IRA") contains a production tax credit equal to 10% of certain eligible production costs, including, without limitation, labor, energy, depreciation and amortization and overhead expenses. On October 24, 2024, the U.S. Department of the Treasury and the Internal Revenue Service issued final regulations on the production tax credit requirements under Internal Revenue Code Section 45X (the "IRA Regulations"). The IRA Regulations provide guidance on rules that taxpayers must satisfy to qualify for the IRA Section 45X tax credit. For the three months ended March 31, 2025 and 2024, the Company recognized a reduction of $19.9 million and $11.9 million in Cost of goods sold and a reduction of $0.8 million and $0.7 million in Selling, general and administrative expenses, respectively, within the Consolidated Statements of Operations. As of March 31, 2025 and December 31, 2024, the Company recognized a current manufacturing credit receivable of $81.5 million. As of March 31, 2025, and December 31, 2024, the Company recognized a non-current manufacturing credit receivable of $91.1 million and $70.4 million, respectively. 

5.    Earnings Per ShareBasic earnings per share ("EPS") amounts are calculated by dividing earnings available to common stockholders by the 

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Table of ContentsCENTURY ALUMINUM COMPANYCondensed Notes to the Consolidated Financial Statements (continued)(amounts in millions, except share and per share amounts)(Unaudited)

weighted average number of common shares outstanding using the two-class method. Diluted EPS is calculated by dividing net income attributable to common