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Derivatives (Tables)
 3 Months Ended
Mar. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Price Risk Derivatives
At March 31, 2018, the Company held derivatives for risk management purposes that are expected to settle in the following years:
 
(Tons in thousands)
 
2018
 
2019
 
Total
Coal sales
 
1,601

 
1,124

 
2,725

Coal purchases
 
780

 
132

 
912
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, 2018
 
 
 
December 31, 2017
 
 
Fair Value of Derivatives
 
Asset
 
Liability
 
 
 
Asset
 
Liability
 
 
(In thousands)
 
Derivative
 
Derivative
 
 
 
Derivative
 
Derivative
 
 
Derivatives Designated as Hedging Instruments
 
 

 
 

 
 

 
 

 
 

 
 

Coal
 
$
4,796

 
$
(884
)
 
 

 
$
942

 
$
(2,146
)
 
 

 
 


 


 
 
 


 


 
 

Derivatives Not Designated as Hedging Instruments
 
 

 
 

 
 

 
 

 
 

 
 

Heating oil -- diesel purchases
 
4,927

 
—

 
 

 
5,354

 
—

 
 

Coal -- held for trading purposes
 
19,899

 
(20,082
)
 
 

 
44,088

 
(45,221
)
 
 

Coal -- risk management
 
3,140

 
(5,019
)
 
 

 
5,139

 
(9,892
)
 
 

Natural gas
 
—

 
—

 
 
 
27

 
—

 
 
Total
 
27,966

 
(25,101
)
 
 

 
54,608

 
(55,113
)
 
 

Total derivatives
 
32,762

 
(25,985
)
 
 

 
55,550

 
(57,259
)
 
 

Effect of counterparty netting
 
(25,199
)
 
25,199

 
 

 
(50,042
)
 
50,042

 
 

Net derivatives as classified in the balance sheets
 
$
7,563

 
$
(786
)
 
$
6,777

 
$
5,508

 
$
(7,217
)
 
$
(1,709
)
 
 
 
 
 
March 31, 2018
 
December 31, 2017
Net derivatives as reflected on the balance sheets (in thousands)
 
 
 
 

Heating oil and coal
 
Other current assets
 
$
7,563

 
$
5,508

Coal
 
Accrued expenses and other current liabilities
 
(786
)
 
(7,217
)
 
 
 
 
$
6,777

 
$
(1,709
)
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)
 
 
2018
2017
 
2018
2017
Coal sales
(1)
$
5,231

$
220

 
$
—

$
—

Coal purchases
(2)
(542
)
(201
)
 
—

—

Totals
 
$
4,689

$
19

 
$
—

$
—

 
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, 2018 and 2017.  
 
Based on fair values at March 31, 2018, amounts on derivative contracts designated as hedge instruments in cash flow hedges to be reclassified from other comprehensive income into earnings during the next twelve months are gains of approximately $1.8 million. 

Derivatives Not Designated as Hedging Instruments (in thousands)
Three Months Ended March 31,
 
 
Gain (Loss) Recognized
 
 
2018
2017
Coal  trading — realized and unrealized
(3)
$
558

$
(658
)
Coal risk management — unrealized
(3)
$
2,875

$
26

Natural gas  trading— realized and unrealized
(3)
$
(19
)
$
(222
)
Change in fair value of coal derivatives and coal trading activities, net total
 
$
3,414

$
(854
)
 
 
 
 
Coal risk management— realized
(4)
$
(1,031
)
$
—

Heating oil — diesel purchases
(4)
$
18

$
(3,578
)
____________________________________________________________
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