XML 92 R34.htm IDEA: XBRL DOCUMENT v3.19.3
Derivatives (Tables)
 9 Months Ended
Sep. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Price Risk Derivatives
At September 30, 2019, the Company held derivatives for risk management purposes that are expected to settle in the following years:
 
(Tons in thousands)
 
2019
 
2020
 
Total
Coal sales
 
607

 
668

 
1,275

Coal purchases
 
385

 
337

 
722
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, 2019
 
 
 
December 31, 2018
 
 
Fair Value of Derivatives
 
Asset
 
Liability
 
 
 
Asset
 
Liability
 
 
(In thousands)
 
Derivative
 
Derivative
 
 
 
Derivative
 
Derivative
 
 
Derivatives Designated as Hedging Instruments
 
 

 
 

 
 

 
 

 
 

 
 

Coal
 
$
3,842

 
$
(671
)
 
 

 
$
2,342

 
$
(805
)
 
 

 
 


 


 
 
 


 


 
 

Derivatives Not Designated as Hedging Instruments
 
 

 
 

 
 

 
 

 
 

 
 

Heating oil -- diesel purchases
 
383

 
(629
)
 
 

 
532

 
—

 
 

Coal -- held for trading purposes
 
20,116

 
(20,925
)
 
 

 
10,329

 
(10,701
)
 
 

Coal -- risk management
 
18,305

 
(11,067
)
 
 

 
5,672

 
(19,579
)
 
 

Natural gas
 
—

 
—

 
 
 
4

 
(4
)
 
 
Total
 
$
38,804

 
$
(32,621
)
 
 

 
$
16,537

 
$
(30,284
)
 
 

Total derivatives
 
$
42,646

 
$
(33,292
)
 
 

 
$
18,879

 
$
(31,089
)
 
 

Effect of counterparty netting
 
(32,663
)
 
32,663

 
 

 
(17,801
)
 
17,801

 
 

Net derivatives as classified in the balance sheets
 
$
9,983

 
$
(629
)
 
$
9,354

 
$
1,078

 
$
(13,288
)
 
$
(12,210
)
 
 
 
 
 
September 30, 2019
 
December 31, 2018
Net derivatives as reflected on the balance sheets (in thousands)
 
 
 
 

Heating oil and coal
 
Other current assets
 
$
9,983

 
$
1,078

Coal
 
Accrued expenses and other current liabilities
 
(629
)
 
(13,288
)
 
 
 
 
$
9,354

 
$
(12,210
)
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
 
Gains (Losses) Reclassified from Other Comprehensive Income into Income
 
 
2019
 
2018
 
2019
 
2018
Coal sales
(1)
$
225

 
$
(4,631
)
 
$
2,963

 
$
(6,996
)
Coal purchases
(2)
(34
)
 
424

 
—

 
2,171

Totals
 
$
191

 
$
(4,207
)
 
$
2,963

 
$
(4,825
)

Derivatives Not Designated as Hedging Instruments (in thousands)
Three Months Ended September 30,
 
 
Gain (Loss) Recognized
 
 
2019
 
2018
Coal  trading — realized and unrealized
(3)
$
(127
)
 
$
(928
)
Coal risk management — unrealized
(3)
(1,417
)
 
(9,486
)
Natural gas  trading— realized and unrealized
(3)
14

 
(4
)
Change in fair value of coal derivatives and coal trading activities, net total
 
$
(1,530
)
 
$
(10,418
)
 
 
 
 
 
Coal risk management— realized
(4)
$
3,216

 
$
(2,537
)
Heating oil — diesel purchases
(4)
$
(1,670
)
 
$
719

____________________________________________________________
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
 
Gains (Losses) Reclassified from Other Comprehensive Income into Income
 
 
2019
 
2018
 
2019
 
2018
Coal sales
(1)
$
9,472

 
$
(14,862
)
 
$
5,750

 
$
(6,996
)
Coal purchases
(2)
(940
)
 
2,587

 
(686
)
 
2,171

Totals
 
$
8,532

 
$
(12,275
)
 
$
5,064

 
$
(4,825
)

Derivatives Not Designated as Hedging Instruments (in thousands)
Nine Months Ended September 30,
 
 
Gain (Loss) Recognized
 
 
2019
 
2018
Coal  trading — realized and unrealized
(3)
$
(1,228
)
 
$
14

Coal risk management — unrealized
(3)
21,145

 
(22,116
)
Natural gas  trading— realized and unrealized
(3)
(66
)
 
(40
)
Change in fair value of coal derivatives and coal trading activities, net total
 
$
19,851

 
$
(22,142
)
 
 
 
 
 
Coal risk management— realized
(4)
$
(2,076
)
 
$
(5,217
)
Heating oil — diesel purchases
(4)
$
(2,402
)
 
$
4,394

____________________________________________________________
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