XML 74 R50.htm IDEA: XBRL DOCUMENT v3.10.0.1
Derivatives and Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2018
Fair Value Disclosures [Abstract]  
Fair Value, by Balance Sheet Grouping
The fair value of derivatives reflected in the accompanying balance sheets are set forth in the table below.
 
December 31, 2018
 
December 31, 2017
 
Asset Derivative
 
Liability Derivative
 
Asset Derivative
 
Liability Derivative
 
(Dollars in millions)
Foreign currency option contracts
$
1.2

 
$
—

 
$
4.2

 
$
—

Coal contracts related to forecasted sales
6.6

 
(23.1
)
 
8.4

 
(46.1
)
Coal trading contracts
59.7

 
(64.4
)
 
119.4

 
(126.7
)
Total derivatives
67.5

 
(87.5
)
 
132.0

 
(172.8
)
Effect of counterparty netting
(64.5
)
 
64.5

 
(125.2
)
 
125.2

Variation margin posted
—

 
21.8

 
—

 
35.8

Net derivatives and margin as classified in the balance sheets
$
3.0

 
$
(1.2
)
 
$
6.8

 
$
(11.8
)
Derivative Instruments, Gain (Loss)
The tables below show the amounts of pre-tax gains and losses related to the Company’s derivatives.
 
 
Successor
 
 
Year Ended December 31, 2018
 
 
Total (loss) gain recognized in income
 
(Loss) gain realized in income on derivatives
 
Unrealized (loss) gain recognized in income on derivatives
Financial Instrument
 
 
 
 
 
(Dollars in millions)
Foreign currency option contracts
 
$
(9.1
)
 
$
(8.4
)
 
$
(0.7
)
Coal contracts related to forecasted sales
 
115.7

 
97.4

 
18.3

Coal trading contracts
 
(2.9
)
 
(5.3
)
 
2.4

Total
 
$
103.7

 
$
83.7

 
$
20.0

 
 
Successor
 
 
April 2 through December 31, 2017
 
 
Total gain (loss) recognized in income
 
Gain (loss) realized in income on derivatives
 
Unrealized (loss) gain recognized in income on derivatives
Financial Instrument
 
 
 
 
 
(Dollars in millions)
Foreign currency option contracts
 
$
1.8

 
$
3.3

 
$
(1.5
)
Coal contracts related to forecasted sales
 
12.1

 
35.1

 
(23.0
)
Coal trading contracts
 
(1.6
)
 
(8.3
)
 
6.7

Total
 
$
12.3

 
$
30.1

 
$
(17.8
)
 
 
Predecessor
 
 
January 1 through April 1, 2017
 
 
Total (loss) gain recognized in income
 
Gain (loss) realized in income on derivatives
 
Unrealized gain recognized in income on derivatives
 
Loss reclassified from other comprehensive loss into income
Financial Instrument
 
 
 
 
(Dollars in millions)
Commodity swap contracts
 
$
(11.0
)
 
$
—

 
$
—

 
$
(11.0
)
Foreign currency forward contracts
 
(16.6
)
 
—

 
—

 
(16.6
)
Financial coal contracts - Company production
 
29.2

 
12.7

 
16.5

 
—

Coal trading contracts
 
2.2

 
(11.3
)
 
13.5

 
—

Total
 
$
3.8

 
$
1.4

 
$
30.0

 
$
(27.6
)
 
 
Predecessor
 
 
Year Ended December 31, 2016
Financial Instrument
 
Total realized (loss) gain recognized in income
 
Gain realized in income on derivatives
 
Unrealized loss recognized in income on derivatives
 
Loss
reclassified
from other
comprehensive
income into
income
(effective
portion)
 
Loss
reclassified
from other
comprehensive
income into
income
(ineffective
portion)
 
 
(Dollars in millions)
Commodity swap contracts
 
$
(136.8
)
 
$
—

 
$
—

 
$
(86.1
)
 
$
(50.7
)
Foreign currency forward contracts
 
(179.3
)
 
—

 
—

 
(145.6
)
 
(33.7
)
Coal contracts related to forecasted sales
 
5.6

 
45.4

 
(39.8
)
 
—

 
—

Coal trading contracts
 
(16.5
)
 
22.1

 
(38.6
)
 
—

 
—

Total
 
$
(327.0
)
 
$
67.5

 
$
(78.4
)
 
$
(231.7
)
 
$
(84.4
)
Schedule of Fair Value, Assets and Liabilities Measured on 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:
 
December 31, 2018
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(Dollars in millions)
Foreign currency option contracts
$
—

 
$
1.2

 
$
—

 
$
1.2

Coal contracts related to forecasted sales
—

 
(21.2
)
 
—

 
(21.2
)
Coal trading contracts
—

 
21.8

 
—

 
21.8

Equity securities
—

 
—

 
10.0

 
10.0

Total net financial assets
$
—

 
$
1.8

 
$
10.0

 
$
11.8

 
 
 
 
 
 
 
 
 
December 31, 2017
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(Dollars in millions)
Foreign currency option contracts
$
—

 
$
4.2

 
$
—

 
$
4.2

Coal contracts related to forecasted sales
—

 
(40.2
)
 
—

 
(40.2
)
Coal trading contracts
(3.0
)
 
34.0

 
—

 
31.0

Total net financial liabilities
$
(3.0
)
 
$
(2.0
)
 
$
—

 
$
(5.0
)
Carrying Amounts And Estimated Fair Values Of Company's Debt
The carrying amount and estimated fair values of the Company’s current and long-term debt as of December 31, 2018 and 2017 are summarized as follows:
 
December 31, 2018
 
December 31, 2017
 
Carrying
Amount
 
Estimated
Fair Value
 
Carrying
Amount
 
Estimated
Fair Value
 
(Dollars in millions)
Current and Long-term debt
$
1,367.0

 
$
1,366.2

 
$
1,460.8

 
$
1,547.4
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
The following table summarizes the changes in the Company’s recurring Level 3 net financial assets (liabilities):
 
Successor
Predecessor
 
Year Ended December 31, 2018
 
April 2 through December 31, 2017
January 1 through April 1, 2017
 
Year Ended December 31, 2016
 
(Dollars in millions)
Beginning of period
$
—

 
$
(0.7
)
$
(1.1
)
 
$
(15.6
)
Transfers into Level 3
—

 
—

—

 
5.3

Transfers out of Level 3
—

 
0.7

0.2

 
(0.4
)
Total gains realized/unrealized:
 
 
 
 
 
 
Included in earnings
(1.7
)
 
—

0.2

 
(2.4
)
Purchases
10.0

 
—

—

 
—

Sales
—

 
—

—

 
—

Settlements
1.7

 
—

—

 
12.0

End of period
$
10.0

 
$
—

$
(0.7
)
 
$
(1.1
)
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Table Text Block]
The following table summarizes the changes in net unrealized gains relating to Level 3 net financial liabilities held both as of the beginning and the end of the period:
 
Successor
Predecessor
 
Year Ended December 31, 2018
 
April 2 through December 31, 2017
January 1 through April 1, 2017
 
Year Ended December 31, 2016
 
(Dollars in millions)
Changes in unrealized gains (1)
$
—

 
$
—

$
0.3

 
$
—

(1) 
Within the consolidated statements of operations and consolidated statements of comprehensive income for the periods presented, unrealized gains from Level 3 items are combined with unrealized gains and losses on positions classified in Level 1 or 2, as well as other positions that have been realized during the applicable periods.