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Derivatives (Tables)
 3 Months Ended
Mar. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Price Risk Derivatives
At March 31, 2015, the Company held derivatives for risk management purposes that are expected to settle in the following years:
 
(Tons in thousands)
 
2015
 
2016
 
Total
Coal sales
 
3,595

 
280

 
3,875

Coal purchases
 
1,672

 
60

 
1,732
Disclosure of Fair Value of Derivatives
The fair value and location of derivatives reflected in the accompanying condensed consolidated balance sheets are as follows:
 
 
 
March 31, 2015
 
 
 
December 31, 2014
 
 
Fair Value of Derivatives
 
Asset
 
Liability
 
 
 
Asset
 
Liability
 
 
(In thousands)
 
Derivative
 
Derivative
 
 
 
Derivative
 
Derivative
 
 
Derivatives Designated as Hedging Instruments
 
 

 
 

 
 

 
 

 
 

 
 

Coal
 
$
6,896

 
$
(107
)
 
 

 
$
6,535

 
$
(2,492
)
 
 

 
 


 


 
 
 


 


 
 

Derivatives Not Designated as Hedging Instruments
 
 

 
 

 
 

 
 

 
 

 
 

Heating oil -- diesel purchases
 
4,079

 
—

 
 

 
300

 
—

 
 

Coal -- held for trading purposes
 
126,397

 
(125,204
)
 
 

 
96,898

 
(93,272
)
 
 

Coal -- risk management
 
16,484

 
(11,094
)
 
 

 
8,510

 
(3,688
)
 
 

Natural gas
 
1,148

 
(753
)
 
 
 
—

 
—

 
 
Total
 
148,108

 
(137,051
)
 
 

 
105,708

 
(96,960
)
 
 

Total derivatives
 
155,004

 
(137,158
)
 
 

 
112,243

 
(99,452
)
 
 

Effect of counterparty netting
 
(136,148
)
 
136,148

 
 

 
(98,686
)
 
98,686

 
 

Net derivatives as classified in the balance sheets
 
$
18,856

 
$
(1,010
)
 
$
17,846

 
$
13,557

 
$
(766
)
 
$
12,791

 
 
 
 
 
March 31, 2015
 
December 31, 2014
Net derivatives as reflected on the balance sheets (in thousands)
 
2835

 
 

Heating oil
 
Other current assets
 
$
4,079

 
$
300

Coal
 
Coal derivative assets
 
14,777

 
13,257

 
 
Accrued expenses and other current liabilities
 
(1,010
)
 
(766
)
 
 
 
 
$
17,846

 
$
12,791
Effects of Derivatives on Measures of Financial Performance
The effects of derivatives on measures of financial performance are as follows:
 
Derivatives used in Cash Flow Hedging Relationships (in thousands)
Three Months Ended March 31,  
 
 
Gain (Loss) Recognized in Other Comprehensive Income(Effective Portion)
 
Gains (Losses) Reclassified from Other Comprehensive Income into Income
(Effective Portion)
 
 
2015
 
2014
 
2015
 
2014
Coal sales
(1) 
$
10,265

 
$
(515
)
 
$
882

 
$
706

Coal purchases
(2) 
(4,738
)
 
589

 
(401
)
 
(404
)
Totals
 
$
5,527

 
$
74

 
$
481

 
$
302

 
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 March 31, 2015 and 2014.  
 
Derivatives Not Designated as Hedging Instruments (in thousands)
Three Months Ended March 31,
 
 
Gain (Loss) Recognized
 
 
2015
 
2014
Coal — unrealized
(3) 
$
(411
)
 
$
(1,302
)
Coal — realized
(4) 
$
1,091

 
$
2,879

Natural gas  — unrealized
(3) 
$
159

 
$
8

Heating oil — diesel purchases
(4) 
$
(2,365
)
 
$
(2,963
)
Heating oil — fuel surcharges
(4) 
$
—

 
$
(254
)
 
 
 
 
 
____________________________________________________________
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