XML 60 R36.htm IDEA: XBRL DOCUMENT v3.3.0.814
Derivatives and Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2015
Derivative [Line Items]  
Credit and non-performance risk, level 3 [Text Block]
The following table summarizes the quantitative unobservable input utilized in the Company's internally-developed valuation models for foreign currency and commodity purchase/sale contracts classified as Level 3 as of September 30, 2015:
 
 
Range
 
Weighted
Input
 
Low
 
High
 
Average
Credit and non-performance risk
 
26
%
 
39
%
 
31
%
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
The following table summarizes the changes related to the Company’s Corporate Hedging derivative financial instruments recurring Level 3 financial liabilities:
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30, 2015
 
September 30, 2015
 
 
Commodity Contracts
 
Foreign Currency Contracts
 
Total
 
Commodity Contracts
 
Foreign Currency Contracts
 
Total
 
 
(Dollars in millions)
Beginning of period
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Transfers into Level 3
 
76.0

 
259.8

 
335.8

 
76.0

 
259.8

 
335.8

Total net losses realized/unrealized:
 
 
 
 
 
 
 
 
 
 
 
 
Included in earnings
 
(0.5
)
 
—

 
(0.5
)
 
(0.5
)
 
—

 
(0.5
)
Included in other comprehensive income
 
63.1

 
118.2

 
181.3

 
63.1

 
118.2

 
181.3

Settlements
 
(31.9
)
 
(84.5
)
 
(116.4
)
 
(31.9
)
 
(84.5
)
 
(116.4
)
End of period
 
$
106.7

 
$
293.5

 
$
400.2

 
$
106.7

 
$
293.5

 
$
400.2
Fair Value, Liabilities Measured on Recurring Basis [Table Text Block]
The following table summarizes the changes in net unrealized losses relating to Level 3 financial liabilities held both as of the beginning and the end of the period:
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30, 2015
 
September 30, 2015
 
 
Commodity Contracts
 
Foreign Currency Contracts
 
Total
 
Commodity Contracts
 
Foreign Currency Contracts
 
Total
 
 
(Dollars in millions)
Changes in net unrealized losses (1)
 
$
15.5

 
$
52.9

 
$
68.4

 
$
15.5

 
$
52.9

 
$
68.4
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, 2015:
 
Notional Amount by Year of Maturity
 
Total
 
2015
 
2016
 
2017
Foreign Currency
 
 
 

 
 

 
 

A$:US$ hedge contracts (A$ millions)
$
1,839.0

 
$
309.0

 
$
1,007.0

 
$
523.0

Commodity Contracts
 
 
 
 
 
 
 
Diesel fuel hedge contracts (million gallons)
180.3

 
31.5

 
89.5

 
59.3

 
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)
$
1,839.0

 
$
—

 
$
—

 
 
$
(293.5
)
Commodity Contracts
 
 
 
 
 
 
 
 
Diesel fuel hedge contracts (million gallons)
180.3

 
—

 
—

 
 
(106.7
)
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 Corporate Hedging derivatives during the three and nine months ended September 30, 2015 and 2014:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2015
Financial Instrument
 
Income Statement
Classification Losses - Realized
 
Gain recognized in income on non-designated derivatives
 
Loss 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
 
$
—

 
$
(63.1
)
 
$
(31.9
)
 
$
(0.5
)
Foreign currency forward contracts
 
Operating costs and expenses
 
—

 
(118.2
)
 
(84.5
)
 
—

Total
 
 
 
$
—

 
$
(181.3
)
 
$
(116.4
)
 
$
(0.5
)
(1)  
Includes the reclassification from "Accumulated other comprehensive loss" into earnings of $0.1 million of previously unrecognized gains on foreign currency cash flow hedge contracts monetized in the fourth quarter of 2012.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
)
(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, 2015
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 reclassified from other comprehensive income into income
(effective portion)(1)
 
Gain reclassified from other comprehensive income into income
(ineffective portion)
 
 
 
 
(Dollars in millions)
Commodity swap contracts
 
Operating costs and expenses
 
$
—

 
$
(27.3
)
 
$
(89.0
)
 
$
1.3

Foreign currency forward contracts
 
Operating costs and expenses
 
—

 
(137.2
)
 
(238.9
)
 
—

Total
 
 
 
$
—

 
$
(164.5
)
 
$
(327.9
)
 
$
1.3

(1)  
Includes the reclassification from "Accumulated other comprehensive loss" into earnings of $14.9 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
)
(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 Corporate Hedging derivative financial instruments presented on a gross and net basis as of September 30, 2015 and December 31, 2014 are presented in the tables that follow.
Financial Instrument
 
Fair Value of Liabilities Presented in the Condensed Consolidated Balance Sheet as of September 30, 2015 (1)

 
 
(Dollars in millions)
Current Liabilities:
 
 
Commodity swap contracts
 
$
68.4

Foreign currency forward contracts
 
203.7

Total
 
$
272.1

 
 
 
Noncurrent Liabilities:
 
 
Commodity swap contracts
 
$
38.3

Foreign currency forward contracts
 
89.8

Total
 
$
128.1


Financial Instrument
 
Fair Value of Liabilities Presented in the Condensed Consolidated Balance Sheet as of December 31, 2014 (1)
 
 
(Dollars in millions)
Current Liabilities:
 
 
Commodity swap contracts
 
$
100.1

Foreign currency forward contracts
 
241.0

Total
 
$
341.1

 
 
 
Noncurrent Liabilities:
 
 
Commodity swap contracts
 
$
67.0

Foreign currency forward contracts
 
169.0

Total
 
$
236.0

(1)  
All commodity swap contracts and foreign currency forward contracts were in a liability position as of September 30, 2015 and December 31, 2014.
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, 2015
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(Dollars in millions)
Investments in debt and equity securities
$
20.2

 
$
30.7

 
$
—

 
$
50.9

Commodity swap contracts
—

 
—

 
(106.7
)
 
(106.7
)
Foreign currency contracts
—

 
—

 
(293.5
)
 
(293.5
)
Total net financial assets (liabilities)
$
20.2

 
$
30.7

 
$
(400.2
)
 
$
(349.3
)
 
December 31, 2014
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(Dollars in millions)
Investments in debt and equity securities
$
26.1

 
$
35.7

 
$
—

 
$
61.8

Commodity swap contracts
—

 
(167.1
)
 
—

 
(167.1
)
Foreign currency contracts
—

 
(410.0
)
 
—

 
(410.0
)
Total net financial assets (liabilities)
$
26.1

 
$
(541.4
)
 
$
—

 
$
(515.3
)
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, 2015
 
December 31, 2014
 
Carrying
Amount
 
Estimated
Fair Value
 
Carrying
Amount
 
Estimated
Fair Value
 
(Dollars in millions)
Long-term debt
$
6,301.9

 
$
2,126.3

 
$
5,986.8

 
$
5,227.9