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Derivatives (Tables)
 9 Months Ended
Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Price Risk Derivatives
At September 30, 2016, the Company held derivatives for risk management purposes that are expected to settle in the following years:
 
(Tons in thousands)
 
2016
 
2017
 
Total
Coal sales
 
55

 
540

 
595

Coal purchases
 
60

 
480

 
540
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, 2016
 
 
 
December 31, 2015
 
 
Fair Value of Derivatives
 
Asset
 
Liability
 
 
 
Asset
 
Liability
 
 
(In thousands)
 
Derivative
 
Derivative
 
 
 
Derivative
 
Derivative
 
 
Derivatives Designated as Hedging Instruments
 
 

 
 

 
 

 
 

 
 

 
 

Coal
 
$
—

 
$
(14
)
 
 

 
$
4

 
$
(20
)
 
 

 
 


 


 
 
 


 


 
 

Derivatives Not Designated as Hedging Instruments
 
 

 
 

 
 

 
 

 
 

 
 

Heating oil -- diesel purchases
 
3,964

 
—

 
 

 
1,017

 
—

 
 

Coal -- held for trading purposes
 
66,156

 
(64,730
)
 
 

 
110,653

 
(104,814
)
 
 

Coal -- risk management
 
879

 
(576
)
 
 

 
3,912

 
(1,947
)
 
 

Natural gas
 
110

 
—

 
 
 
494

 
(247
)
 
 
Foreign currency
 
9

 
—

 
 
 
—

 
—

 
 
Total
 
71,118

 
(65,306
)
 
 

 
116,076

 
(107,008
)
 
 

Total derivatives
 
71,118

 
(65,320
)
 
 

 
116,080

 
(107,028
)
 
 

Effect of counterparty netting
 
(64,965
)
 
64,965

 
 

 
(107,028
)
 
107,028

 
 

Net derivatives as classified in the balance sheets
 
$
6,153

 
$
(355
)
 
$
5,798

 
$
9,052

 
$
—

 
$
9,052

 
 
 
 
 
September 30, 2016
 
December 31, 2015
Net derivatives as reflected on the balance sheets (in thousands)
 
 
 
 

Heating oil and foreign currency
 
Other current assets
 
$
3,973

 
$
1,017

Coal and natural gas
 
Coal derivative assets
 
2,180

 
8,035

 
 
Accrued expenses and other current liabilities
 
(355
)
 
—

 
 
 
 
$
5,798

 
$
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 September 30,  
 
 
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) 
$
(612
)
 
$
3,636

 
$
108

 
$
6,683

Coal purchases
(2) 
541

 
(2,561
)
 
(32
)
 
(3,084
)
Totals
 
$
(71
)
 
$
1,075

 
$
76

 
$
3,599

 
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, 2016 and 2015.  
 
Derivatives Not Designated as Hedging Instruments (in thousands)
Three Months Ended September 30,
 
 
Gain (Loss) Recognized
 
 
2016
 
2015
Coal — unrealized
(3) 
$
(566
)
 
$
(809
)
Coal — realized
(4) 
$
(133
)
 
$
511

Natural gas  — unrealized
(3) 
$
(79
)
 
$
(16
)
Heating oil — diesel purchases
(4) 
$
(770
)
 
$
(5,525
)
Foreign currency
(4) 
$
(314
)
 
$
(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)
 
 
2016
 
2015
 
2016
 
2015
Coal sales
(1) 
$
(672
)
 
$
12,738

 
$
1,634

 
$
12,555

Coal purchases
(2) 
536

 
(6,612
)
 
(1,237
)
 
(5,748
)
Totals
 
$
(136
)
 
$
6,126

 
$
397

 
$
6,807

 
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, 2016 and 2015.  
 
Derivatives Not Designated as Hedging Instruments (in thousands)
Nine Months Ended September 30,
 
 
Gain (Loss) Recognized
 
 
2016
 
2015
Coal — unrealized
(3) 
$
(1,662
)
 
$
(2,095
)
Coal — realized
(4) 
$
(476
)
 
$
2,428

Natural gas  — unrealized
(3) 
$
(463
)
 
$
(78
)
Heating oil — diesel purchases
(4) 
$
826

 
$
(7,262
)
Foreign currency
(4) 
$
(451
)
 
$
(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