XML 63 R29.htm IDEA: XBRL DOCUMENT

Coal Trading (Tables) (Coal Trading [Member])

9 Months Ended

Sep. 30, 2011

Coal Trading [Member]



	Three Months Ended September 30,					Nine Months Ended September 30,
Trading Revenues by Type of Instrument	2011			2010		2011			2010
	(Dollars in millions)
Commodity swaps and options	$	(0.6	)	$	38.9	$	(26.6	)	$	29.5
Physical commodity purchase/sale contracts	29.6			23.2		60.9			141.5
Total trading revenues	$	29.0		$	62.1	$	34.3		$	171.0

Fair value of assets and liabilities from coal trading activities

The fair value of assets and liabilities from coal trading activities is set forth below:



	September 30, 2011						December 31, 2010
	Gross Basis			Net Basis			Gross Basis			Net Basis
	(Dollars in millions)
Assets from coal trading activities	$	590.5		$	66.0		$	1,706.2		$	192.5
Liabilities from coal trading activities	(660.5		)	(62.6		)	(1,843.5		)	(181.7		)
Subtotal	(70.0		)	3.4			(137.3		)	10.8
Net margin posted ⁽¹⁾	73.4			—			148.1			—
Net value of coal trading positions	$	3.4		$	3.4		$	10.8		$	10.8

⁽¹⁾

Represents margin posted with counterparties and exchanges of $73.4 million at September 30, 2011; and margin posted with counterparties and exchanges of $148.2 million, net of margin held of $0.1 million, at December 31, 2010. In addition, at December 31, 2010, the Company held letters of credit of $5.0 million from counterparties in lieu of margin posted. Of the margin posted at September 30, 2011, approximately 94% related to cash flow hedges.

Fair value coal trading net assets (liabilities) measured on recurring basis

The following tables set forth the hierarchy of the Company’s net financial asset (liability) coal trading positions for which fair value is measured on a recurring basis:



	September 30, 2011
	Level 1		Level 2			Level 3		Total
	(Dollars in millions)
Commodity swaps and options	$	15.1	$	3.9		$	—	$	19.0
Physical commodity purchase/sale contracts	—		(23.8		)	8.2		(15.6		)
Total net financial assets (liabilities)	$	15.1	$	(19.9	)	$	8.2	$	3.4



	December 31, 2010
	Level 1		Level 2			Level 3		Total
	(Dollars in millions)
Commodity swaps and options	$	10.7	$	(76.2	)	$	—	$	(65.5	)
Physical commodity purchase/sale contracts	—		57.7			18.6		76.3
Total net financial assets (liabilities)	$	10.7	$	(18.5	)	$	18.6	$	10.8

Change in the Company's recurring Level 3 net financial assets

The following table summarizes the changes in the Company’s recurring Level 3 net financial assets:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
	(Dollars in millions)
Beginning of period	$	9.9		$	13.8		$	18.6		$	17.0
Total gains (losses) realized/unrealized:
Included in earnings	(1.4		)	2.1			10.7			(0.6		)
Included in other comprehensive income	—			0.2			—			0.3
Settlements	(1.3		)	(0.7		)	(3.1		)	(1.4		)
Transfers in (out)	1.0			0.8			(18.0		)	0.9
End of period	$	8.2		$	16.2		$	8.2		$	16.2

Changes in unrealized gains (losses) relating to Level 3 net financial assets

The following table summarizes the changes in unrealized gains (losses) relating to Level 3 net financial assets held both as of the beginning and the end of the period:



	Three Months Ended September 30,					Nine Months Ended September 30,
	2011			2010		2011		2010
	(Dollars in millions)
Changes in unrealized gains (losses) ⁽¹⁾	$	(1.1	)	$	1.2	$	8.7	$	3.5


⁽¹⁾	Within the unaudited condensed consolidated statements of operations for the periods presented, unrealized gains and losses from Level 3 items are combined with unrealized gains and losses on positions classified in Level 1 or 2, as well as other positions that have been realized during the applicable periods.

Schedule of future realization of the Company's trading portfolio

As of September 30, 2011, the timing of the estimated future realization of the value of the Company’s trading portfolio was as follows:



Year of		Percentage of
Expiration		Portfolio Total
2011		33%
2012		46%
2013		9%
2014		8%
2015		4%
		100%

- Definition

Tabular disclosure of the total amount of gains or losses for the period which are included in earnings or resulted in a change to net assets which gains or losses have arisen from the use of significant unobservable inputs (Level 3) to measure the fair value of assets and liabilities. Such gains or losses are attributable to the change in unrealized gains or losses relating to those assets and liabilities so valued which are still held at the reporting date and which change are also considered for disclosure; it may be expected that a description of where those unrealized gains or losses are reported in the statement of income or the statement of financial position would also be disclosed.

+ References+ Details

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income, and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issuances, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References+ Details