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Derivatives (Tables)
 6 Months Ended
Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Price Risk Derivatives
At June 30, 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
 
1,089

 
1,587

 
2,676

Coal purchases
 
433

 
79

 
512
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, 2018
 
 
 
December 31, 2017
 
 
Fair Value of Derivatives
 
Asset
 
Liability
 
 
 
Asset
 
Liability
 
 
(In thousands)
 
Derivative
 
Derivative
 
 
 
Derivative
 
Derivative
 
 
Derivatives Designated as Hedging Instruments
 
 

 
 

 
 

 
 

 
 

 
 

Coal
 
$
1,763

 
$
(9,388
)
 
 

 
$
942

 
$
(2,146
)
 
 

 
 


 


 
 
 


 


 
 

Derivatives Not Designated as Hedging Instruments
 
 

 
 

 
 

 
 

 
 

 
 

Heating oil -- diesel purchases
 
6,652

 
—

 
 

 
5,354

 
—

 
 

Coal -- held for trading purposes
 
35,894

 
(36,323
)
 
 

 
44,088

 
(45,221
)
 
 

Coal -- risk management
 
6,058

 
(22,900
)
 
 

 
5,139

 
(9,892
)
 
 

Natural gas
 
42

 
—

 
 
 
27

 
—

 
 
Total
 
48,646

 
(59,223
)
 
 

 
54,608

 
(55,113
)
 
 

Total derivatives
 
50,409

 
(68,611
)
 
 

 
55,550

 
(57,259
)
 
 

Effect of counterparty netting
 
(42,542
)
 
42,542

 
 

 
(50,042
)
 
50,042

 
 

Net derivatives as classified in the balance sheets
 
$
7,867

 
$
(26,069
)
 
$
(18,202
)
 
$
5,508

 
$
(7,217
)
 
$
(1,709
)
 
 
 
 
 
June 30, 2018
 
December 31, 2017
Net derivatives as reflected on the balance sheets (in thousands)
 
 
 
 

Heating oil and coal
 
Other current assets
 
$
7,867

 
$
5,508

Coal
 
Accrued expenses and other current liabilities
 
(26,069
)
 
(7,217
)
 
 
 
 
$
(18,202
)
 
$
(1,709
)
Effects of Derivatives on Measures of Financial Performance
Derivatives Not Designated as Hedging Instruments (in thousands)
Six Months Ended June 30,
 
 
Gain (Loss) Recognized
 
 
2018
 
2017
Coal  trading — realized and unrealized
(3)
$
942

 
$
(1,494
)
Coal risk management — unrealized
(3)
$
(12,630
)
 
$
26

Natural gas  trading— realized and unrealized
(3)
$
(36
)
 
$
(249
)
Change in fair value of coal derivatives and coal trading activities, net total
 
$
(11,724
)
 
$
(1,717
)
 
 
 
 
 
Coal risk management— realized
(4)
$
(2,680
)
 
$
—

Heating oil — diesel purchases
(4)
$
3,675

 
$
(4,725
)
____________________________________________________________
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 Not Designated as Hedging Instruments (in thousands)
Three Months Ended June 30,
 
 
Gain (Loss) Recognized
 
 
2018
 
2017
Coal  trading — realized and unrealized
(3)
$
384

 
$
(836
)
Coal risk management — unrealized
(3)
$
(15,505
)
 
$
—

Natural gas  trading— realized and unrealized
(3)
$
(17
)
 
$
(27
)
Change in fair value of coal derivatives and coal trading activities, net total
 
$
(15,138
)
 
$
(863
)
 
 
 
 
 
Coal risk management— realized
(4)
$
(1,649
)
 
$
—

Heating oil — diesel purchases
(4)
$
3,657

 
$
(1,147
)
____________________________________________________________
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)
 
 
2018
 
2017
 
2018
 
2017
Coal sales
(1)
$
(10,231
)
 
$
269

 
$
—

 
$
—

Coal purchases
(2)
2,163

 
(234
)
 
—

 
—

Totals
 
$
(8,068
)
 
$
35

 
$
—

 
$
—

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)
 
 
2018
 
2017
 
2018
 
2017
Coal sales
(1)
$
(15,462
)
 
$
49

 
$
—

 
$
—

Coal purchases
(2)
2,705

 
(34
)
 
—

 
—

Totals
 
$
(12,757
)
 
$
15

 
$
—

 
$
—