XML 39 R31.htm IDEA: XBRL DOCUMENT v2.4.0.6
Derivatives and Fair Value Measurements (Tables) (Non Coal Trading [Member])
 3 Months Ended
Mar. 31, 2013
Non Coal Trading [Member]
  
Derivative [Line Items]  
Company's foreign currency and commodity positions
Notional Amounts and Fair Value. The following summarizes the Company’s foreign currency and commodity positions at March 31, 2013:
 
Notional Amount by Year of Maturity
 
Total
 
2013
 
2014
 
2015
 
2016
Foreign Currency
 
 
 

 
 

 
 

 
 

A$:US$ hedge contracts (A$ millions)
$
4,466.1

 
$
1,510.5

 
$
1,688.5

 
$
1,097.1

 
$
170.0

Commodity Contracts
 
 
 
 
 
 
 
 
 
Diesel fuel hedge contracts (million gallons)
194.4

 
76.7

 
73.4

 
44.3

 
—

U.S. explosives hedge contracts (million MMBtu)
3.1

 
1.9

 
1.2

 
—

 
—

 
Account Classification by
 
 
 
Cash Flow
Hedge
 
Fair Value
Hedge
 
Economic
Hedge
 
Fair Value Asset
(Liability)
 
 
 
 
 
 
 
(Dollars in millions)
Foreign Currency
 
 
 
 
 
 
 
A$:US$ hedge contracts (A$ millions)
$
4,466.1

 
$
—

 
$
—

 
$
240.5

Commodity Contracts
 
 
 
 
 
 
 
Diesel fuel hedge contracts (million gallons)
194.4

 
—

 
—

 
6.0

U.S. explosives hedge contracts (million MMBtu)
3.1

 
—

 
—

 
(3.0
)
Classification and amounts of pre-tax gains and losses related to the Company's non-trading hedges
The tables below show the classification and amounts of pre-tax gains and losses related to the Company’s non-coal trading hedges during the three months ended March 31, 2013 and 2012:        
 
 
 
 
Three Months Ended March 31, 2013
Financial Instrument
 
Income Statement
Classification Gains (Losses) -
Realized
 
Gain recognized in income
on non-designated
derivatives
 
Gain recognized in other
comprehensive
income on derivatives
(effective portion)
 
Gain reclassified from
other comprehensive
income into income
(effective portion)
 
Gain reclassified from
other comprehensive
income into income
(ineffective portion)
 
 
 
 
(Dollars in millions)
Commodity swap contracts
 
Operating costs and expenses
 
$
—

 
$
5.9

 
$
6.7

 
$
0.2

Foreign currency forward contracts
 
Operating costs and expenses
 
—

 
38.7

 
85.1

 
—

Total
 
 
 
$
—

 
$
44.6

 
$
91.8

 
$
0.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2012
Financial Instrument
 
Income Statement
Classification Gains (Losses) -
Realized
 
Gain recognized in income
on non-designated
derivatives
 
Gain recognized in other
comprehensive
income on derivatives
(effective portion)
 
Gain reclassified from
other comprehensive
income into income
(effective portion)
 
Gain reclassified from
other comprehensive
income into income
(ineffective portion)
 
 
 
 
(Dollars in millions)
Commodity swap contracts
 
Operating costs and expenses
 
$
—

 
$
58.1

 
$
17.3

 
$
4.6

Foreign currency forward contracts
 
Operating costs and expenses
 
—

 
140.3

 
113.0

 
—

Total
 
 
 
$
—

 
$
198.4

 
$
130.3

 
$
4.6
Classification and amount of derivatives, gross
The classification and amount of non-coal trading derivative financial instruments presented on a gross and net basis as of March 31, 2013 and December 31, 2012 are presented in the tables that follow.
 
 
Fair Value of Assets as of March 31, 2013
Financial Instrument
 
Gross Amounts of Recognized Assets
 
Gross Amounts Offset in the Condensed Consolidated Balance Sheet
 
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheet
 
Derivatives Not Offset in the Condensed Consolidated Balance Sheet(1)
 
Net Amount
 
 
(Dollars in millions)
Current Assets:
 
 
 
 
 
 
 
 
 
 
Commodity swap contracts
 
$
12.7

 
$
(4.4
)
 
$
8.3

 
n.a.

 
n.a.

Foreign currency forward contracts
 
204.9

 
—

 
204.9

 
n.a.

 
n.a.

Total
 
$
217.6

 
$
(4.4
)
 
$
213.2

 
$
(4.2
)
 
$
209.0

 
 
 
 
 
 
 
 
 
 
 
Noncurrent Assets:
 
 
 
 
 
 
 
 
 
 
Commodity swap contracts
 
$
3.6

 
$
(1.6
)
 
$
2.0

 
n.a.

 
n.a.

Foreign currency forward contracts
 
35.7

 
(0.1
)
 
35.6

 
n.a.

 
n.a.

Total
 
$
39.3

 
$
(1.7
)
 
$
37.6

 
$
(2.9
)
 
$
34.7

(1)  
Adjustments relate to the further netting of derivative contracts with a common counterparty across the Company's foreign currency, diesel fuel and explosives hedging strategy derivative contract portfolios that would be contractually enforceable in the event of default.
 
 
Fair Value of Liabilities as of March 31, 2013
Financial Instrument
 
Gross Amounts of Recognized Liabilities
 
Gross Amounts Offset in the Condensed Consolidated Balance Sheet
 
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheet
 
Derivatives Not Offset in the Condensed Consolidated Balance Sheet(1)
 
Net Amount
 
 
(Dollars in millions)
Current Liabilities:
 
 
 
 
 
 
 
 
 
 
Commodity swap contracts
 
$
7.0

 
$
(3.9
)
 
$
3.1

 
n.a.

 
n.a.

Foreign currency forward contracts
 
—

 
—

 
—

 
n.a.

 
n.a.

Total
 
$
7.0

 
$
(3.9
)
 
$
3.1

 
$
(2.9
)
 
$
0.2

 
 
 
 
 
 
 
 
 
 
 
Noncurrent Liabilities:
 
 
 
 
 
 
 
 
 
 
Commodity swap contracts
 
$
6.3

 
$
(2.1
)
 
$
4.2

 
n.a.

 
n.a.

Foreign currency forward contracts
 
0.1

 
(0.1
)
 
—

 
n.a.

 
n.a.

Total
 
$
6.4

 
$
(2.2
)
 
$
4.2

 
$
(4.2
)
 
$
—

(1)  
Adjustments relate to the further netting of derivative contracts with a common counterparty across the Company's foreign currency, diesel fuel and explosives hedging strategy derivative contract portfolios that would be contractually enforceable in the event of default.

 
 
Fair Value of Assets as of December 31, 2012
Financial Instrument
 
Gross Amounts of Recognized Assets
 
Gross Amounts Offset in the Condensed Consolidated Balance Sheet
 
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheet
 
Derivatives Not Offset in the Condensed Consolidated Balance Sheet(1)
 
Net Amount
 
 
(Dollars in millions)
Current Assets:
 
 
 
 
 
 
 
 
 
 
Commodity swap contracts
 
$
18.3

 
$
(3.8
)
 
$
14.5

 
n.a.

 
n.a.

Foreign currency forward contracts
 
260.1

 
—

 
260.1

 
n.a.

 
n.a.

Total
 
$
278.4

 
$
(3.8
)
 
$
274.6

 
$
(8.0
)
 
$
266.6

 
 
 
 
 
 
 
 
 
 
 
Noncurrent Assets:
 
 
 
 
 
 
 
 
 
 
Commodity swap contracts
 
$
2.5

 
$
(1.4
)
 
$
1.1

 
n.a.

 
n.a.

Foreign currency forward contracts
 
27.6

 
(0.8
)
 
26.8

 
n.a.

 
n.a.

Total
 
$
30.1

 
$
(2.2
)
 
$
27.9

 
$
(3.4
)
 
$
24.5

(1)  
Adjustments relate to the further netting of derivative contracts with a common counterparty across the Company's foreign currency, diesel fuel and explosives hedging strategy derivative contract portfolios that would be contractually enforceable in the event of default.
 
 
Fair Value of Liabilities as of December 31, 2012
Financial Instrument
 
Gross Amounts of Recognized Liabilities
 
Gross Amounts Offset in the Condensed Consolidated Balance Sheet
 
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheet
 
Derivatives Not Offset in the Condensed Consolidated Balance Sheet(1)
 
Net Amount
 
 
(Dollars in millions)
Current Liabilities:
 
 
 
 
 
 
 
 
 
 
Commodity swap contracts
 
$
8.5

 
$
(2.8
)
 
$
5.7

 
n.a.

 
n.a.

Foreign currency forward contracts
 
—

 
—

 
—

 
n.a.

 
n.a.

Total
 
$
8.5

 
$
(2.8
)
 
$
5.7

 
$
(5.7
)
 
$
—

 
 
 
 
 
 
 
 
 
 
 
Noncurrent Liabilities:
 
 
 
 
 
 
 
 
 
 
Commodity swap contracts
 
$
8.3

 
$
(2.4
)
 
$
5.9

 
n.a.

 
n.a.

Foreign currency forward contracts
 
0.8

 
(0.8
)
 
—

 
n.a.

 
n.a.

Total
 
$
9.1

 
$
(3.2
)
 
$
5.9

 
$
(5.7
)
 
$
0.2

(1)  
Adjustments relate to the further netting of derivative contracts with a common counterparty across the Company's foreign currency, diesel fuel and explosives hedging strategy derivative contract portfolios that would be contractually enforceable in the event of default.
See Note 7. "Coal Trading" for information on balance sheet offsetting related to the Company’s coal trading activities.
Fair value measured on recurring basis of financial assets and liabilities
Financial Instruments Measured on a Recurring Basis. The following tables set forth the hierarchy of the Company’s net financial asset positions for which fair value is measured on a recurring basis:
 
March 31, 2013
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(Dollars in millions)
Investments in debt and equity securities
$
59.0

 
$
10.9

 
$
—

 
$
69.9

Commodity swap contracts
—

 
3.0

 
—

 
3.0

Foreign currency forward contracts
—

 
240.5

 
—

 
240.5

Total net financial assets
$
59.0

 
$
254.4

 
$
—

 
$
313.4

 
December 31, 2012
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(Dollars in millions)
Investments in debt and equity securities
$
75.4

 
$
13.0

 
$
—

 
$
88.4

Commodity swap contracts
—

 
4.0

 
—

 
4.0

Foreign currency forward contracts
—

 
286.9

 
—

 
286.9

Total net financial assets
$
75.4

 
$
303.9

 
$
—

 
$
379.3
Carrying amounts and estimated fair values of the Company's debt
The carrying amounts and estimated fair values of the Company’s debt are summarized as follows:
 
March 31, 2013
 
December 31, 2012
 
Carrying
Amount
 
Estimated
Fair Value
 
Carrying
Amount
 
Estimated
Fair Value
 
(Dollars in millions)
Long-term debt
$
6,145.7

 
$
6,385.0

 
$
6,252.9

 
$
6,583.9