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Derivatives (Tables)
 9 Months Ended
Sep. 30, 2012
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Price Risk Derivatives
At September 30, 2012, the Company held derivatives for risk management purposes that are expected to settle in the following years:
 
(Tons in thousands)
 
2012
 
2013
 
2014
 
2015
 
Total
Coal sales
 
2,915

 
5,713

 
4,020

 
720

 
13,368

Coal purchases
 
1,851

 
1,140

 
900

 
—

 
3,891
Disclosure Of Fair Value Of Derivatives
 
 
September 30, 2012
 
 
 
December 31, 2011
 
 
Fair Value of Derivatives
 
Asset
 
Liability
 
 
 
Asset
 
Liability
 
 
(In thousands)
 
Derivative
 
Derivative
 
 
 
Derivative
 
Derivative
 
 
Derivatives Designated as Hedging Instruments
 
 

 
 

 
 

 
 

 
 

 
 

Heating oil--diesel purchases
 
$
—

 
$
—

 
 

 
$
8,997

 
$
—

 
 

Coal
 
4,509

 
(1,679
)
 
 

 
1,109

 
—

 
 

Total
 
4,509

 
(1,679
)
 
 

 
10,106

 
—

 
 

Derivatives Not Designated as Hedging Instruments
 
 

 
 

 
 

 
 

 
 

 
 

Heating oil -- diesel purchases
 
10,913

 
(57
)
 
 

 
—

 
—

 
 

Heating oil -- fuel surcharges
 
2,839

 
—

 
 

 
1,797

 
—

 
 

Coal -- held for trading purposes
 
27,190

 
(25,171
)
 
 

 
15,505

 
(19,927
)
 
 

Coal -- risk management
 
45,739

 
(13,249
)
 
 

 
14,855

 
(6,035
)
 
 

Total
 
86,681

 
(38,477
)
 
 

 
32,157

 
(25,962
)
 
 

Total derivatives
 
91,190

 
(40,156
)
 
 

 
42,263

 
(25,962
)
 
 

Effect of counterparty netting
 
(36,658
)
 
36,658

 
 

 
(18,134
)
 
18,134

 
 

Net derivatives as classified in the balance sheets
 
$
54,532

 
$
(3,498
)
 
$
51,034

 
$
24,129

 
$
(7,828
)
 
$
16,301

 
 
 
 
 
September 30, 2012
 
December 31, 2011
Net derivatives as reflected on the balance sheets
 
 
 
 

 
 

Heating oil
 
Other current assets
 
$
13,695

 
$
10,794

Coal
 
Coal derivative assets
 
40,837

 
13,335

 
 
Coal derivative liabilities
 
(3,498
)
 
(7,828
)
 
 
 
 
$
51,034

 
$
16,301
Effects Of Derivatives On Measures Of Financial Performance
Derivatives used in Cash Flow Hedging Relationships (in thousands)
For the three months ended September 30  
 
 
 
 
 
 
Gains (Losses) Reclassified
 
 
 
 
Gain (Loss) Recognized in Other Comprehensive Income(Effective Portion)
 
from Other Comprehensive Income into Income
(Effective Portion)
 
 
 
 
2012
 
2011
 
2012
 
2011
 
 
Heating oil — diesel purchases
 
$
—

 
$
(6,386
)
 
$
—

 
$
5,122

 
(2) 
Coal sales
 
259

 
1,820

 
542

 
466

 
(1) 
Coal purchases
 
(178
)
 
(1,274
)
 
—

 
—

 
(2) 
Totals
 
$
81

 
$
(5,840
)
 
$
542

 
$
5,588

 
 
 
No ineffectiveness or amounts excluded from effectiveness testing relating to the Company’s cash flow hedging relationships were recognized in the results of operations in the three month periods ended September 30, 2012 and 2011.
 
Derivatives Not Designated as Hedging Instruments (in thousands)
For the three months ended September 30
 
 
 
Gain (Loss) Recognized
 
 
 
 
2012
 
2011
 
 
Coal — unrealized
 
$
(11,328
)
 
$
(6,131
)
 
(3) 
Coal — realized
 
$
14,072

 
$
166

 
(4) 
Heating oil — diesel purchases
 
$
5,184

 
$
—

 
(4) 
Heating oil — fuel surcharges
 
$
1,092

 
$
(2,501
)
 
(4) 
 
____________________________________________________________
Location in statement of operations:
(1) — Revenues
(2) — Cost of sales
(3) — Change in fair value of coal derivatives and coal trading activities, net
(4) — Other operating income, net
 
The effects of derivatives on measures of financial performance are as follows for the nine month periods ended September 30:
 
Derivatives used in Cash Flow Hedging Relationships (in thousands)
For the nine months ended September 30
 
 
 
 
 
 
 
Gains (Losses) Reclassified from
 
 
 
 
Gain (Loss) Recognized in Other Comprehensive Income(Effective Portion)
 
from Other Comprehensive Income into Income
(Effective Portion)
 
 
 
 
2012
 
2011
 
2012
 
2011
 
 
Heating oil — diesel purchases
 
$
—

 
$
1,535

 
$
—

 
$
14,946

 
(2) 
Coal sales
 
4,983

 
4,570

 
1,552

 
790

 
(1) 
Coal purchases
 
(1,122
)
 
(2,053
)
 
—

 
—

 
(2) 
Totals
 
$
3,861

 
$
4,052

 
$
1,552

 
$
15,736

 
 
 
No ineffectiveness or amounts excluded from effectiveness testing relating to the Company’s cash flow hedging relationships were recognized in the results of operations in the nine month periods ended September 30, 2012 and 2011.
 

Derivatives Not Designated as Hedging Instruments (in thousands)
For the nine months ended September 30
 
 
Gain (Loss) Recognized
 
 
 
 
2012
 
2011
 
 
Coal — unrealized
 
$
23,670

 
$
(7,550
)
 
(3) 
Coal — realized
 
$
25,901

 
$
313

 
(4) 
Heating oil — diesel purchases
 
$
(16,902
)
 
$
—

 
(4) 
Heating oil — fuel surcharges
 
$
(1,140
)
 
$
(2,501
)
 
(4) 

____________________________________________________________
Location in statement of operations:
(1) — Revenues
(2) — Cost of sales
(3) — Change in fair value of coal derivatives and coal trading activities, net
(4) — Other operating income, net