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Derivatives (Tables)
 6 Months Ended
Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Price Risk Derivatives
At June 30, 2017, the Company held derivatives for risk management purposes that are expected to settle in the following years:
 
(Tons in thousands)
 
2017
 
2018
 
Total
Coal sales
 
371

 
—

 
371

Coal purchases
 
363

 
—

 
363
Disclosure of Fair Value of Derivatives
The fair value and location of derivatives reflected in the accompanying Condensed Consolidated Balance Sheets are as follows:
 
 
 
June 30, 2017
 
 
 
December 31, 2016
 
 
Fair Value of Derivatives
 
Asset
 
Liability
 
 
 
Asset
 
Liability
 
 
(In thousands)
 
Derivative
 
Derivative
 
 
 
Derivative
 
Derivative
 
 
Derivatives Designated as Hedging Instruments
 
 

 
 

 
 

 
 

 
 

 
 

Coal
 
$
17

 
$
—

 
 

 
$
—

 
$
(15
)
 
 

 
 


 


 
 
 


 


 
 

Derivatives Not Designated as Hedging Instruments
 
 

 
 

 
 

 
 

 
 

 
 

Heating oil -- diesel purchases
 
661

 
—

 
 

 
4,646

 
—

 
 

Coal -- held for trading purposes
 
41,813

 
(43,157
)
 
 

 
68,948

 
(68,740
)
 
 

Coal -- risk management
 
67

 
(146
)
 
 

 
475

 
(580
)
 
 

Natural gas
 
103

 
(71
)
 
 
 
86

 
(13
)
 
 
Total
 
42,644

 
(43,374
)
 
 

 
74,155

 
(69,333
)
 
 

Total derivatives
 
42,661

 
(43,374
)
 
 

 
74,155

 
(69,348
)
 
 

Effect of counterparty netting
 
(41,947
)
 
41,947

 
 

 
(69,247
)
 
69,247

 
 

Net derivatives as classified in the balance sheets
 
$
714

 
$
(1,427
)
 
$
(713
)
 
$
4,908

 
$
(101
)
 
$
4,807

 
 
 
 
 
June 30, 2017
 
December 31, 2016
Net derivatives as reflected on the balance sheets (in thousands)
 
 
 
 

Heating oil and coal
 
Other current assets
 
$
714

 
$
4,908

Coal
 
Accrued expenses and other current liabilities
 
(1,427
)
 
(101
)
 
 
 
 
$
(713
)
 
$
4,807
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 June 30,  
 
 
Gain (Loss) Recognized in Other Comprehensive Income(Effective Portion)
 
Gains (Losses) Reclassified from Other Comprehensive Income into Income
(Effective Portion)
 
 
Successor
Predecessor
 
Successor
Predecessor
 
 
2017
2016
 
2017
2016
Coal sales
(1) 
$
49

$
(73
)
 
$
—

$
157

Coal purchases
(2) 
(34
)
6

 
—

(61
)
Totals
 
$
15

$
(67
)
 
$
—

$
96

 
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 June 30, 2017 and 2016.  
 
Derivatives Not Designated as Hedging Instruments (in thousands)
Three Months Ended June 30,
 
 
Gain (Loss) Recognized
 
 
Successor
Predecessor
 
 
2017
2016
Coal — unrealized
(3) 
$
—

$
19

Coal — realized
(4) 
$
—

$
(180
)
Natural gas  — unrealized
(3) 
$
(27
)
$
235

Heating oil — diesel purchases
(4) 
$
(1,147
)
$
2,039

Foreign currency
(4) 
$
—

$
34

____________________________________________________________
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)
Six Months Ended June 30,  
 
 
Gain (Loss) Recognized in Other Comprehensive Income(Effective Portion)
 
Gains (Losses) Reclassified from Other Comprehensive Income into Income
(Effective Portion)
 
 
Successor
Predecessor
 
Successor
Predecessor
 
 
2017
2016
 
2017
2016
Coal sales
(1) 
$
269

$
(60
)
 
$
—

$
1,526

Coal purchases
(2) 
(234
)
(5
)
 
—

(1,205
)
Totals
 
$
35

$
(65
)
 
$
—

$
321

 
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 six month periods ended June 30, 2017 and 2016.  
 
Derivatives Not Designated as Hedging Instruments (in thousands)
Six Months Ended June 30,
 
 
Gain (Loss) Recognized
 
 
Successor
Predecessor
 
 
2017
2016
Coal — unrealized
(3) 
$
26

$
(1,096
)
Coal — realized
(4) 
$
—

$
(343
)
Natural gas  — unrealized
(3) 
$
(496
)
$
(384
)
Heating oil — diesel purchases
(4) 
$
(4,725
)
$
1,596

Foreign currency
(4) 
$
—

$
(137
)
____________________________________________________________
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