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

3 Months Ended

Mar. 31, 2012

Coal Trading [Member]



	Three Months Ended March 31,
Trading Revenues by Type of Instrument	2012		2011
	(Dollars in millions)
Commodity swaps and options	$	10.8	$	(31.8	)
Physical commodity purchase/sale contracts	9.1		21.9
Total trading revenues	$	19.9	$	(9.9	)

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:



	March 31, 2012						December 31, 2011
	Gross Basis			Net Basis			Gross Basis			Net Basis
	(Dollars in millions)
Assets from coal trading activities	$	196.0		$	43.3		$	170.4		$	44.6
Liabilities from coal trading activities	(95.7		)	(14.6		)	(84.0		)	(10.3		)
Subtotal	100.3			28.7			86.4			34.3
Net margin held ⁽¹⁾	(71.6		)	—			(52.1		)	—
Net value of coal trading positions	$	28.7		$	28.7		$	34.3		$	34.3


⁽¹⁾	Represents margin held from exchanges of $71.6 million and $52.1 million at March 31, 2012 and December 31, 2011, respectively. Of the margin held at March 31, 2012 and December 31, 2011, approximately $50 million and $23 million, respectively, 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:



	March 31, 2012
	Level 1		Level 2		Level 3		Total
	(Dollars in millions)
Commodity swaps and options	$	5.0	$	11.0	$	—	$	16.0
Physical commodity purchase/sale contracts	—		3.8		8.9		12.7
Total net financial assets	$	5.0	$	14.8	$	8.9	$	28.7



	December 31, 2011
	Level 1		Level 2			Level 3		Total
	(Dollars in millions)
Commodity swaps and options	$	21.2	$	(1.9	)	$	—	$	19.3
Physical commodity purchase/sale contracts	—		6.3			8.7		15.0
Total net financial assets	$	21.2	$	4.4		$	8.7	$	34.3

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 March 31,
	2012			2011
	(Dollars in millions)
Beginning of period	$	8.7		$	18.6
Total net gains realized/unrealized:
Included in earnings	1.5			10.1
Included in other comprehensive income	—			—
Settlements	(1.3		)	3.0
Transfers in	—			—
Transfers out	—			(19.2		)
End of period	$	8.9		$	12.5

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

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



	Three Months Ended March 31,
	2012		2011
	(Dollars in millions)
Changes in net unrealized gains ⁽¹⁾	$	1.9	$	10.0


⁽¹⁾	Within the unaudited condensed consolidated statements of income and unaudited condensed consolidated statements of comprehensive income 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 March 31, 2012, 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
2012	59	%
2013	32	%
2014	6	%
2015	3	%
	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.

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- 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.

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