Equity Investments And Membership Interests In Joint Ventures

9 Months Ended

Sep. 30, 2013

Equity Method Investments and Joint Ventures [Abstract]

Equity Investments and Membership Interests in Joint Ventures

Equity Method Investments and Membership Interests in Joint Ventures

The Company accounts for its investments and membership interests in joint ventures under the equity method of accounting if the Company has the ability to exercise significant influence, but not control, over the entity. Below are the equity method investments reflected in the condensed consolidated balance sheets: 

In thousands	Knight Hawk			DKRW			DTA			Tenaska			Millennium			Tongue River			Total
Balance at December 31, 2012	$	149,063		$	15,515		$	15,462		$	15,264		$	32,214		$	14,697		$	242,215
Advances to (distributions from) affiliates, net	(5,342		)	—			2,537			—			4,954			2,696			4,845
Equity in comprehensive income (loss)	13,362			(1,832		)	(3,855		)	—			(1,953		)	(281		)	5,441
Impairment of equity investment	—			(13,683		)	—			(15,264		)	—			—			(28,947		)
Balance at September 30, 2013	$	157,083		$	—		$	14,144		$	—		$	35,215		$	17,112		$	223,554

Equity method investments are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the investments may not be recoverable. Certain of the Company's investments are in development stage companies whose success depends on factors including receipt of permits and other regulatory environment issues, the ability of the investee companies to raise additional funds in financial markets that can be volatile, and other key business factors.

During the second quarter of 2013, Tenaska Trailblazer Partners, LLC ("Tenaska") announced that it was discontinuing its development plans for the Trailblazer Energy Center in Texas. As a result, the Company recorded a $20.5 million impairment charge, which consisted of its 35% equity investment of $15.3 million and a $5.2 million receivable balance related to reimbursements for development work.

DKRW Advanced Fuels, LLC ("DKRW") had previously entered into an Engineering, Procurement and Construction Agreement with a Chinese company to construct and commission the Medicine Bow coal-to-liquids facility. The project did not progress to the next stage of development, and the Company recorded an other-than-temporary impairment charge of $57.7 million in the third quarter of 2013, which includes the Company's 24% equity investment of $13.7 million and a $44.0 million loan receivable balance. The impairment charges are included on the line "Asset impairment and mine closure costs" in the condensed consolidated statement of operations.

The Company may be required to make future contingent payments of up to $58.5 million related to development financing for certain of its equity investees. The Company’s obligation to make these payments, as well as the timing of any payments required, is contingent upon the achievement of project development milestones, which can be affected by the factors named above.