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Derivatives (Tables)
 9 Months Ended
Sep. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Price Risk Derivatives
At September 30, 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
 
1,205

 
280

 
1,485

Coal purchases
 
696

 
240

 
936
Disclosure of Fair Value of Derivatives
The fair value and location of derivatives reflected in the accompanying Condensed Consolidated Balance Sheets are as follows:
 
 
 
September 30, 2015
 
 
 
December 31, 2014
 
 
Fair Value of Derivatives
 
Asset
 
Liability
 
 
 
Asset
 
Liability
 
 
(In thousands)
 
Derivative
 
Derivative
 
 
 
Derivative
 
Derivative
 
 
Derivatives Designated as Hedging Instruments
 
 

 
 

 
 

 
 

 
 

 
 

Coal
 
$
1,608

 
$
—

 
 

 
$
6,535

 
$
(2,492
)
 
 

 
 


 


 
 
 


 


 
 

Derivatives Not Designated as Hedging Instruments
 
 

 
 

 
 

 
 

 
 

 
 

Heating oil -- diesel purchases
 
600

 
—

 
 

 
300

 
—

 
 

Coal -- held for trading purposes
 
121,312

 
(114,636
)
 
 

 
96,898

 
(93,272
)
 
 

Coal -- risk management
 
9,965

 
(6,257
)
 
 

 
8,510

 
(3,688
)
 
 

Natural gas
 
1,215

 
—

 
 
 
—

 
—

 
 
Foreign currency
 
285

 
—

 
 
 
 
 
 
 
 
Total
 
133,377

 
(120,893
)
 
 

 
105,708

 
(96,960
)
 
 

Total derivatives
 
134,985

 
(120,893
)
 
 

 
112,243

 
(99,452
)
 
 

Effect of counterparty netting
 
(120,357
)
 
120,357

 
 

 
(98,686
)
 
98,686

 
 

Net derivatives as classified in the balance sheets
 
$
14,628

 
$
(536
)
 
$
14,092

 
$
13,557

 
$
(766
)
 
$
12,791

 
 
 
 
 
September 30, 2015
 
December 31, 2014
Net derivatives as reflected on the balance sheets (in thousands)
 
 
 
 

Heating oil and foreign currency
 
Other current assets
 
$
885

 
$
300

Coal and natural gas
 
Coal derivative assets
 
13,743

 
13,257

 
 
Accrued expenses and other current liabilities
 
(536
)
 
(766
)
 
 
 
 
$
14,092

 
$
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 September 30,  
 
 
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) 
$
3,636

 
$
3,449

 
$
6,683

 
$
1,639

Coal purchases
(2) 
(2,561
)
 
(2,041
)
 
(3,084
)
 
(747
)
Totals
 
$
1,075

 
$
1,408

 
$
3,599

 
$
892

 
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, 2015 and 2014.  
 
Derivatives Not Designated as Hedging Instruments (in thousands)
Three Months Ended September 30,
 
 
Gain (Loss) Recognized
 
 
2015
 
2014
Coal — unrealized
(3) 
$
(809
)
 
$
1,610

Coal — realized
(4) 
$
511

 
$
502

Natural gas  — unrealized
(3) 
$
(16
)
 
$
238

Heating oil — diesel purchases
(4) 
$
(5,525
)
 
$
(3,746
)
Heating oil — fuel surcharges
(4) 
$
—

 
$
(104
)
Foreign currency
(4) 
$
(602
)
 
$
—

____________________________________________________________
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) expense, net


Derivatives used in Cash Flow Hedging Relationships (in thousands)
Nine Months Ended September 30,  
 
 
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) 
12,738

 
$
4,806

 
$
12,555

 
$
2,568

Coal purchases
(2) 
(6,612
)
 
(2,162
)
 
(5,748
)
 
(1,222
)
Totals
 
$
6,126

 
$
2,644

 
$
6,807

 
$
1,346

 
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, 2015 and 2014.  
 
Derivatives Not Designated as Hedging Instruments (in thousands)
Nine Months Ended September 30,
 
 
Gain (Loss) Recognized
 
 
2015
 
2014
Coal — unrealized
(3) 
$
(2,095
)
 
$
455

Coal — realized
(4) 
$
2,428

 
$
4,699

Natural gas  — unrealized
(3) 
$
(78
)
 
$
(21
)
Heating oil — diesel purchases
(4) 
$
(7,262
)
 
$
(6,709
)
Heating oil — fuel surcharges
(4) 
$
—

 
$
(405
)
Foreign currency
(4) 
$
(602
)
 
$
—

____________________________________________________________
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) expense, net