Derivative Financial Instruments

12 Months Ended

Dec. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

Interest Rate Swaps

On June 27, 2011, the Company entered into an interest rate swap agreement with a notional value of $450.0 million. The objective of the swap was to protect against the variability in expected future cash flows attributable to changes in the benchmark interest rate related to interest payments required under term loan A in the 2011 Credit Agreement. The interest rate on the debt is subject to change due to fluctuations in the benchmark interest rate of 3-month LIBOR. The structure of the hedge was a three year amortizing interest rate swap based on a 1.17% fixed rate with quarterly fixed rate and floating rate payment dates beginning on July 18, 2011. The hedge was settled upon maturity in July 2014 and was accounted for as a cash flow hedge. Changes in the fair value of the effective portion of the hedge were reported in accumulated other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transactions affected earnings. The Company recognized income of $1.1 million related to the effective portion of the hedge for the year ended December 31, 2014 in interest expense, net. Upon the prepayment of term loan A in the first quarter of 2014, the interest rate swap became fully ineffective. The ineffective portion of the change in the fair value of the hedge is recognized directly in earnings. The Company recognized income of approximately $0.3 million for the year ended December 31, 2014 related to the ineffective portion of the hedge and the mark-to-market gain from the settlement in other income (loss) in the Consolidated Statements of Operations.

On December 30, 2008, the Company entered into an interest rate hedge agreement with a notional value of $31.5 million. The objective of the hedge was to protect against the variability in expected future cash flows attributable to changes in the benchmark interest rate related to 62 of the 64 monthly interest payments required under an equipment financing arrangement for a new longwall shield system entered into on October 21, 2008. The interest rate on the debt was subject to change due to fluctuations in the benchmark interest rate of 1-month LIBOR. The structure of the hedge was a 62 month amortizing interest rate swap based on a 1.84% fixed rate with monthly fixed rate and floating rate payment dates beginning on February 1, 2009. The hedge was settled upon maturity in the first quarter of 2014 and was being accounted for as a cash flow hedge. Changes in the fair value of the hedge were reported in accumulated other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affected earnings.

Interest Rate Cap

On June 27, 2011, the Company entered into an interest rate cap agreement related to interest payments required under term loan B in the 2011 Credit Agreement with a notional value of $255.0 million. The objective of the cap was to protect against the variability in expected future cash flows attributable to changes in the benchmark interest rate above 2.00%. The interest rate on the debt was subject to change due to fluctuations in the benchmark interest rate of 3-month LIBOR. The structure of the hedge was a three year amortizing interest rate cap based on a strike price of 2.00% with quarterly fixed rate and floating rate payment dates beginning on July 7, 2011. The hedge was settled upon maturity in July 2014 and was accounted for as a cash flow hedge. Changes in the fair value of the hedge were reported in accumulated other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affected earnings.

The following table presents the fair values of the Company's derivative instruments as well as their classification within the Consolidated Balance Sheets as of December 31, 2013 (in thousands, except amounts in the footnotes to the table). There were no outstanding derivative instruments as of December 31, 2014. See Note 19 for additional information related to the fair values of the Company's derivative instruments.

	December 31,   2013
Asset derivatives designated as cash flow hedging instruments:
Interest rate cap(1)	$	1
Liability derivatives designated as cash flow hedging instruments:
Interest rate swaps(2)	$	3,080

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(1) $1 thousand was included within other current assets in the Consolidated Balance Sheet as of December 31, 2013.

(2) $3.1 million was included within other current liabilities in the Consolidated Balance Sheet as of December 31, 2013.

The following tables present the gains and losses from derivative instruments for the years ended December 31, 2014 and 2013 and their location within the consolidated financial statements (in thousands).

	Gain (loss), net of tax, recognized in accumulated other comprehensive income (loss)					Gain, net of tax, reclassified from accumulated other comprehensive income (loss) to earnings(1)						Loss, net of tax, reclassified from accumulated other comprehensive income (loss) to earnings (ineffective portion) (2)
	For the years ended December 31,					For the years ended December 31,						For the years ended December 31,
Derivatives designated as cash flow hedging instruments	2014		2013			2014			2013			2014		2013
Interest rate swaps	$	1,303	$	4,894		$	(677	)	$	(2,546	)	$	1,053	$	184
Interest rate cap	—		(8		)	—			—			—		—
Total	$	1,303	$	4,886		$	(677	)	$	(2,546	)	$	1,053	$	184

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(1) Interest rate swap amounts are recorded within interest expense in the Consolidated Statements of Operations.

(2) The ineffective portion of the interest rate swap is recorded within other income (loss) in the Consolidated Statements of Operations.