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Derivatives (Tables)
 3 Months Ended
Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Price Risk Derivatives
At March 31, 2016, the Company held derivatives for risk management purposes that are expected to settle in the following years:
 
(Tons in thousands)
 
2016
Coal sales
 
325

Coal purchases
 
225
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, 2016
 
 
 
December 31, 2015
 
 
Fair Value of Derivatives
 
Asset
 
Liability
 
 
 
Asset
 
Liability
 
 
(In thousands)
 
Derivative
 
Derivative
 
 
 
Derivative
 
Derivative
 
 
Derivatives Designated as Hedging Instruments
 
 

 
 

 
 

 
 

 
 

 
 

Coal
 
$
2

 
$
—

 
 

 
$
4

 
$
(20
)
 
 

 
 


 


 
 
 


 


 
 

Derivatives Not Designated as Hedging Instruments
 
 

 
 

 
 

 
 

 
 

 
 

Heating oil -- diesel purchases
 
1,173

 
—

 
 

 
1,017

 
—

 
 

Coal -- held for trading purposes
 
76,276

 
(71,370
)
 
 

 
110,653

 
(104,814
)
 
 

Coal -- risk management
 
1,531

 
(681
)
 
 

 
3,912

 
(1,947
)
 
 

Natural gas
 
61

 
(11
)
 
 
 
494

 
(247
)
 
 
Foreign currency
 
208

 
—

 
 
 
—

 
—

 
 
Total
 
79,249

 
(72,062
)
 
 

 
116,076

 
(107,008
)
 
 

Total derivatives
 
79,251

 
(72,062
)
 
 

 
116,080

 
(107,028
)
 
 

Effect of counterparty netting
 
(72,062
)
 
72,062

 
 

 
(107,028
)
 
107,028

 
 

Net derivatives as classified in the balance sheets
 
$
7,189

 
$
—

 
$
7,189

 
$
9,052

 
$
—

 
$
9,052

 
 
 
 
 
March 31, 2016
 
December 31, 2015
Net derivatives as reflected on the balance sheets (in thousands)
 
 
 
 

Heating oil and foreign currency
 
Other current assets
 
$
1,381

 
$
1,017

Coal and natural gas
 
Coal derivative assets
 
5,808

 
8,035

 
 
Accrued expenses and other current liabilities
 
—

 
—

 
 
 
 
$
7,189

 
$
9,052
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)
 
 
2016
 
2015
 
2016
 
2015
Coal sales
(1) 
$
13

 
$
10,265

 
$
1,369

 
$
882

Coal purchases
(2) 
(11
)
 
(4,738
)
 
(1,143
)
 
(401
)
Totals
 
$
2

 
$
5,527

 
$
226

 
$
481

 
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, 2016 and 2015.  
 
Derivatives Not Designated as Hedging Instruments (in thousands)
Three Months Ended March 31,
 
 
Gain (Loss) Recognized
 
 
2016
 
2015
Coal — unrealized
(3) 
$
(1,115
)
 
$
(411
)
Coal — realized
(4) 
$
163

 
$
1,091

Natural gas  — unrealized
(3) 
$
(469
)
 
$
159

Heating oil — diesel purchases
(4) 
$
(443
)
 
$
(2,365
)
Foreign currency
(4) 
$
(171
)
 
$
—

____________________________________________________________
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