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Derivatives, Hedges, Financial Instruments and Carbon Credits (Tables)
12 Months Ended
Dec. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Assets and Liabilities Measured at Fair Value on Recurring Basis

The following details our assets and liabilities that are measured at fair value on a recurring basis at December 31, 2014 and 2013:

 

            Fair Value Measurements at
December 31, 2014 Using
        

Description

   Total Fair
Value at
December 31,
2014
     Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
     Significant
Other
Observable
Inputs (Level
2)
     Significant
Unobservable
Inputs
(Level 3)
     Total Fair
Value at
December 31,
2013
 
                   (In Thousands)                

Assets - Supplies, prepaid items and other:

              

Commodities contracts

   $ —         $ —         $ —         $ —         $ 31   

Carbon credits

     2,779         —           —           2,779         1,284   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

$ 2,779    $ —      $ —      $ 2,779    $ 1,315   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities - Current and noncurrent accrued and other liabilities:

Commodities contracts

$ 2,440    $ 316    $ 2,124    $ —      $ —     

Contractual obligations - carbon credits

  2,779      —        —        2,779      1,284   

Interest rate contracts

  671      —        671      —        1,240   

Foreign exchange contracts

  44      —        44      —        —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

$ 5,934    $ 316    $ 2,839    $ 2,779    $ 2,524   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Reconciliation of Beginning and Ending Balances for Assets and Liabilities Measured at Fair Value on Recurring Basis

the following is a reconciliation of the beginning and ending balances for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

 

     Assets     Liabilities  
     2014     2013     2012     2014     2013     2012  
     (In Thousands)  

Beginning balance

   $ 1,284      $ 91      $ 42      $ (1,284   $ (91   $ (42

Transfers into Level 3

     —          —          —          —          —          —     

Transfers out of Level 3

     —          —          —          —          —          —     

Total realized and unrealized gains (losses) included in earnings

     3,089        1,233        876        (2,799     (1,233     (721

Purchases

     —          —          —          —          —          —     

Issuances

     —          —          —          —          —          —     

Sales

     (1,594     (40     (827     —          —          —     

Settlements

     —          —          —          1,304        40        672   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending balance

$ 2,779    $ 1,284    $ 91    $ (2,779 $ (1,284 $ (91
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total gains (losses) for the period included in earnings attributed to the change in unrealized gains or losses on assets and liabilities still held at the reporting date

$ 2,110    $ 1,193    $ 78    $ (2,110 $ (1,193 $ (78
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Net Gains (Losses) Included in Earnings and Income Statement Classifications

Net gains (losses) included in earnings and the income statement classifications are as follows:

 

     2014      2013      2012  
     (In Thousands)  

Total net gains (losses) included in earnings:

        

Cost of sales - Undesignated commodities contracts

   $ (1,198    $ (244    $ 14   

Cost of sales - Undesignated foreign exchange contracts

     (49      —           (19

Other income - Carbon credits

     3,089         1,233         876   

Other expense - Contractual obligations relating to carbon credits

     (2,799      (1,233      (721

Interest expense - Undesignated interest rate contracts

     (71      (33      (523
  

 

 

    

 

 

    

 

 

 

Total net losses included in earnings

$ (1,028 $ (277 $ (373