XML 81 R34.htm IDEA: XBRL DOCUMENT v2.4.0.8
Derivatives and Fair Value Measurements (Tables) (Non Coal Trading [Member])
 9 Months Ended
Sep. 30, 2014
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 September 30, 2014:
 
Notional Amount by Year of Maturity
 
Total
 
2014
 
2015
 
2016
 
2017
Foreign Currency
 
 
 

 
 

 
 

 
 

A$:US$ hedge contracts (A$ millions)
$
3,597.4

 
$
406.3

 
$
1,661.1

 
$
1,007.0

 
$
523.0

Commodity Contracts
 
 
 
 
 
 
 
 
 
Diesel fuel hedge contracts (million gallons)
181.9

 
25.6

 
85.5

 
53.3

 
17.5

 
Instrument Classification by
 
 
 
 
Cash Flow
Hedge
 
Fair Value
Hedge
 
Economic
Hedge
 
 
Fair Value of Net Liability
 
 
 
 
 
 
 
 
(Dollars in millions)
Foreign Currency
 
 
 
 
 
 
 
 
A$:US$ hedge contracts (A$ millions)
$
3,597.4

 
$
—

 
$
—

 
 
$
(315.0
)
Commodity Contracts
 
 
 
 
 
 
 
 
Diesel fuel hedge contracts (million gallons)
181.9

 
—

 
—

 
 
(28.7
)
Classification and amounts of pre-tax gains and losses related to the Company's non coal-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 and nine months ended September 30, 2014 and 2013:
 
 
 
 
Three Months Ended September 30, 2014
Financial Instrument
 
Income Statement
Classification Gains (Losses) -
Realized
 
Gain recognized in income on non-designated derivatives
 
Loss recognized in other comprehensive income on derivatives
(effective portion)
 
(Loss) gain reclassified from other comprehensive income into income
(effective portion) (1)
 
Loss reclassified from other comprehensive income into income
(ineffective portion)
 
 
 
 
(Dollars in millions)
Commodity swap contracts
 
Operating costs and expenses
 
$
—

 
$
(47.3
)
 
$
(1.0
)
 
$
(1.8
)
Foreign currency forward contracts
 
Operating costs and expenses
 
—

 
(227.7
)
 
9.6

 
—

Total
 
 
 
$
—


$
(275.0
)

$
8.6


$
(1.8
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 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
 
$
—

 
$
15.8

 
$
4.3

 
$
0.2

Foreign currency forward contracts
 
Operating costs and expenses
 
—

 
51.7

 
9.9

 
—

Total
 
 
 
$
—


$
67.5


$
14.2


$
0.2

(1)  
Includes the reclassification from "Accumulated other comprehensive loss" into earnings of $31.9 million of previously unrecognized gains on foreign currency cash flow hedge contracts monetized in the fourth quarter of 2012.
 
 
 
 
Nine Months Ended September 30, 2014
Financial Instrument
 
Income Statement
Classification Gains (Losses) -
Realized
 
Gain recognized in income on non-designated derivatives
 
(Loss) gain recognized in other comprehensive income on derivatives
(effective portion)
 
Loss reclassified from other comprehensive income into income
(effective portion) (1)
 
Loss reclassified from other comprehensive income into income
(ineffective portion)
 
 
 
 
(Dollars in millions)
Commodity swap contracts
 
Operating costs and expenses
 
$
—

 
$
(38.1
)
 
$
(3.3
)
 
$
(1.0
)
Foreign currency forward contracts
 
Operating costs and expenses
 
—

 
48.7

 
(2.9
)
 
—

Total
 
 
 
$
—

 
$
10.6

 
$
(6.2
)
 
$
(1.0
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2013
Financial Instrument
 
Income Statement
Classification Gains (Losses) -
Realized
 
Gain recognized in income on non-designated derivatives
 
Loss 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
 
$
—

 
$
(3.3
)
 
$
11.5

 
$
0.5

Foreign currency forward contracts
 
Operating costs and expenses
 
—

 
(402.2
)
 
157.1

 
—

Total
 
 
 
$
—

 
$
(405.5
)
 
$
168.6

 
$
0.5


(1)  
Includes the reclassification from "Accumulated other comprehensive loss" into earnings of $106.7 million of previously unrecognized gains on foreign currency cash flow hedge contracts monetized in the fourth quarter of 2012.
Classification and amount of non-coal trading derivatives, gross and net basis
The classification and amount of non-coal trading derivative financial instruments presented on a gross and net basis as of September 30, 2014 and December 31, 2013 are presented in the tables that follow.
 
 
Fair Value of Assets as of September 30, 2014
Financial Instrument
 
Gross Amounts Recognized
 
Gross Amounts Offset in the Condensed Consolidated Balance Sheet
 
Net Amounts Presented in the Condensed Consolidated Balance Sheet
 
 
(Dollars in millions)
Current Assets:
 
 
 
 
 
 
Foreign currency forward contracts
 
$
0.1

 
$
(0.1
)
 
$
—

Total
 
$
0.1

 
$
(0.1
)
 
$
—

 
 
 
 
 
 
 
Noncurrent Assets:
 
 
 
 
 
 
Commodity swap contracts
 
$
0.1

 
$
(0.1
)
 
$
—

Total
 
$
0.1

 
$
(0.1
)
 
$
—


 
 
Fair Value of Liabilities as of September 30, 2014
Financial Instrument
 
Gross Amounts Recognized
 
Gross Amounts Offset in the Condensed Consolidated Balance Sheet
 
Net Amounts Presented in the Condensed Consolidated Balance Sheet
 
 
(Dollars in millions)
Current Liabilities:
 
 
 
 
 
 
Commodity swap contracts
 
$
19.9

 
$
—

 
$
19.9

Foreign currency forward contracts
 
173.7

 
—

 
173.7

Total
 
$
193.6

 
$
—

 
$
193.6

 
 
 
 
 
 
 
Noncurrent Liabilities:
 
 
 
 
 
 
Commodity swap contracts
 
$
8.9

 
$
(0.1
)
 
$
8.8

Foreign currency forward contracts
 
141.4

 
(0.1
)
 
141.3

Total
 
$
150.3

 
$
(0.2
)
 
$
150.1


 
 
Fair Value of Assets as of December 31, 2013
Financial Instrument
 
Gross Amounts Recognized
 
Gross Amounts Offset in the Condensed Consolidated Balance Sheet
 
Net Amounts 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
 
$
8.7

 
$
(2.3
)
 
$
6.4

 
n.a.

 
n.a.

Foreign currency forward contracts
 
—

 
—

 
—

 
n.a.

 
n.a.

Total
 
$
8.7

 
$
(2.3
)
 
$
6.4

 
$
(5.0
)
 
$
1.4

 
 
 
 
 
 
 
 
 
 
 
Noncurrent Assets:
 
 
 
 
 
 
 
 
 
 
Commodity swap contracts
 
$
2.8

 
$
(0.9
)
 
$
1.9

 
n.a.

 
n.a.

Foreign currency forward contracts
 
0.2

 
(0.2
)
 
—

 
n.a.

 
n.a.

Total
 
$
3.0

 
$
(1.1
)
 
$
1.9

 
$
(1.3
)
 
$
0.6


(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. Such adjustments were not applicable as of September 30, 2014 due to the consistent net liability position with common counterparties across the Company's foreign currency and diesel fuel hedging strategy derivative contract portfolios as of that date.
 
 
Fair Value of Liabilities as of December 31, 2013
Financial Instrument
 
Gross Amounts Recognized
 
Gross Amounts Offset in the Condensed Consolidated Balance Sheet
 
Net Amounts 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
 
$
3.9

 
$
(1.9
)
 
$
2.0

 
n.a.

 
n.a.

Foreign currency forward contracts
 
211.9

 
—

 
211.9

 
n.a.

 
n.a.

Total
 
$
215.8

 
$
(1.9
)
 
$
213.9

 
$
(5.4
)
 
$
208.5

 
 
 
 
 
 
 
 
 
 
 
Noncurrent Liabilities:
 
 
 
 
 
 
 
 
 
 
Commodity swap contracts
 
$
2.5

 
$
(1.3
)
 
$
1.2

 
n.a.

 
n.a.

Foreign currency forward contracts
 
261.6

 
(0.2
)
 
261.4

 
n.a.

 
n.a.

Total
 
$
264.1

 
$
(1.5
)
 
$
262.6

 
$
(0.9
)
 
$
261.7

(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. Such adjustments were not applicable as of September 30, 2014 due to the consistent net liability position with common counterparties across the Company's foreign currency and diesel fuel hedging strategy derivative contract portfolios as of that date.
Fair value measured on recurring basis of net 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 (liability) positions for which fair value is measured on a recurring basis:
 
September 30, 2014
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(Dollars in millions)
Investments in debt and equity securities
$
27.1

 
$
34.9

 
$
—

 
$
62.0

Commodity swaps and options
—

 
(28.7
)
 
—

 
(28.7
)
Foreign currency cash flow hedge contracts
—

 
(315.0
)
 
—

 
(315.0
)
Total net financial assets (liabilities)
$
27.1

 
$
(308.8
)
 
$
—

 
$
(281.7
)
 
December 31, 2013
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(Dollars in millions)
Investments in debt and equity securities
$
28.8

 
$
38.2

 
$
—

 
$
67.0

Commodity swaps and options
—

 
5.1

 
—

 
5.1

Foreign currency cash flow hedge contracts
—

 
(473.3
)
 
—

 
(473.3
)
Total net financial assets (liabilities)
$
28.8

 
$
(430.0
)
 
$
—

 
$
(401.2
)
Carrying amounts and estimated fair values of the Company's debt
The carrying amounts and estimated fair values of the Company’s long-term debt are summarized as follows:
 
September 30, 2014
 
December 31, 2013
 
Carrying
Amount
 
Estimated
Fair Value
 
Carrying
Amount
 
Estimated
Fair Value
 
(Dollars in millions)
Long-term debt
$
5,991.1

 
$
5,720.8

 
$
6,002.4

 
$
6,167.5