Risk Concentrations

12 Months Ended

Dec. 31, 2014

Risks Concentrations [Abstract]

Risk Concentrations

Risk Concentrations

Credit Risk and Major Customers

The Company has a formal written credit policy that establishes procedures to determine creditworthiness and credit limits for trade customers and counterparties in the over-the-counter coal market. Generally, credit is extended based on an evaluation of the customer's financial condition. Collateral is not generally required, unless credit cannot be established. Credit losses are provided for in the financial statements and historically have been minimal.

The Company markets its steam coal principally to domestic and foreign electric utilities and its metallurgical coal to domestic and foreign steel producers. As of December 31, 2014 and 2013, accounts receivable from electric utilities of $134.7 million and $125.7 million, respectively, represented 64% of total trade receivables at each date. As of December 31, 2014 and 2013, accounts receivable from sales of metallurgical-quality coal of $76.0 million and $70.5 million, respectively, represented 36% of total trade receivables at each date.

The Company uses shipping destination as the basis for attributing revenue to individual countries. Because title may transfer on brokered transactions at a point that does not reflect the end usage point, they are reflected as exports, and attributed to an end delivery point if that knowledge is known to the Company. The Company's foreign revenues by geographical location are as follows:

	Year Ended December 31,
	2014		2013		2012
	(In thousands)
Europe	$	277,565	$	371,363	$	674,754
Asia	156,057		160,404		203,193
North America	78,445		80,322		72,542
Central and South America	20,496		55,493		57,184
Brokered Sales	79,354		154,442		145,438
Total	$	611,917	$	822,024	$	1,153,111

The Company is committed under long-term contracts to supply steam coal that meets certain quality requirements at specified prices. These prices are generally adjusted based on market indices. Quantities sold under some of these contracts may vary from year to year within certain limits at the option of the customer. The Company sold approximately 134.4 million tons of coal in 2014. Approximately 60% of this tonnage (representing approximately 48% of the Company's revenues) was sold under long-term contracts (contracts having a term of greater than one year). Long-term contracts range in remaining life from one to six years.

Third-party sources of coal

The Company uses independent contractors to mine coal at certain mining complexes. The Company also purchases coal from third parties that it sells to customers. Factors beyond the Company's control could affect the availability of coal produced for or purchased by the Company. Disruptions in the quantities of coal produced for or purchased by the Company could impair its ability to fill customer orders or require it to purchase coal from other sources at prevailing market prices in order to satisfy those orders.

Transportation

The Company depends upon barge, rail, truck and belt transportation systems to deliver coal to its customers. Disruption of these transportation services due to weather-related problems, mechanical difficulties, strikes, lockouts, bottlenecks, and other events could temporarily impair the Company's ability to supply coal to its customers In the past, disruptions in rail service have resulted in missed shipments and production interruptions.