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Derivatives (Tables)
9 Months Ended
Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Price Risk Derivatives
At September 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
 
267

 
546

 
813

Coal purchases
 
252

 
185

 
437

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, 2017
 
 
 
December 31, 2016
 
 
Fair Value of Derivatives
 
Asset
 
Liability
 
 
 
Asset
 
Liability
 
 
(In thousands)
 
Derivative
 
Derivative
 
 
 
Derivative
 
Derivative
 
 
Derivatives Designated as Hedging Instruments
 
 

 
 

 
 

 
 

 
 

 
 

Coal
 
$
3

 
$

 
 

 
$

 
$
(15
)
 
 

 
 


 


 
 
 


 


 
 

Derivatives Not Designated as Hedging Instruments
 
 

 
 

 
 

 
 

 
 

 
 

Heating oil -- diesel purchases
 
2,006

 

 
 

 
4,646

 

 
 

Coal -- held for trading purposes
 
42,203

 
(44,211
)
 
 

 
68,948

 
(68,740
)
 
 

Coal -- risk management
 
1,624

 
(1,915
)
 
 

 
475

 
(580
)
 
 

Natural gas
 
25

 

 
 
 
86

 
(13
)
 
 
Total
 
45,858

 
(46,126
)
 
 

 
74,155

 
(69,333
)
 
 

Total derivatives
 
45,861

 
(46,126
)
 
 

 
74,155

 
(69,348
)
 
 

Effect of counterparty netting
 
(43,830
)
 
43,830

 
 

 
(69,247
)
 
69,247

 
 

Net derivatives as classified in the balance sheets
 
$
2,031

 
$
(2,296
)
 
$
(265
)
 
$
4,908

 
$
(101
)
 
$
4,807

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

Heating oil and coal
 
Other current assets
 
$
2,031

 
$
4,908

Coal
 
Accrued expenses and other current liabilities
 
(2,296
)
 
(101
)
 
 
 
 
$
(265
)
 
$
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 September 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) 
$
(169
)
$
(612
)
 
$

$
108

Coal purchases
(2) 
152

541

 

(32
)
Totals
 
$
(17
)
$
(71
)
 
$

$
76

 
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, 2017 and 2016.  
 
Derivatives Not Designated as Hedging Instruments (in thousands)
Three Months Ended September 30,
 
 
Gain (Loss) Recognized
 
 
Successor
Predecessor
 
 
2017
2016
Coal — unrealized
(3) 
$
(212
)
$
(566
)
Coal — realized
(4) 
$

$
(133
)
Natural gas  — unrealized
(3) 
$
(120
)
$
(79
)
Heating oil — diesel purchases
(4) 
$
822

$
(770
)
Foreign currency
(4) 
$

$
(314
)
____________________________________________________________
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)
 
 
Successor
Predecessor
 
Successor
Predecessor
 
 
2017
2016
 
2017
2016
Coal sales
(1) 
$
100

$
(672
)
 
$

$
1,634

Coal purchases
(2) 
(82
)
536

 

(1,237
)
Totals
 
$
18

$
(136
)
 
$

$
397

 
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, 2017 and 2016.  
 
Derivatives Not Designated as Hedging Instruments (in thousands)
Nine Months Ended September 30,
 
 
Gain (Loss) Recognized
 
 
Successor
Predecessor
 
 
2017
2016
Coal — unrealized
(3) 
$
(186
)
$
(1,662
)
Coal — realized
(4) 
$

$
(476
)
Natural gas  — unrealized
(3) 
$
(616
)
$
(463
)
Heating oil — diesel purchases
(4) 
$
(3,903
)
$
826

Foreign currency
(4) 
$

$
(451
)
____________________________________________________________
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