Derivatives, Hedges, Financial Instruments and Carbon Credits (Tables)

9 Months Ended

Sep. 30, 2016

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

Note 9: Derivatives, Hedges, Financial Instruments and Carbon Credits (continued)

The following details our assets and liabilities that are measured at fair value on a recurring basis at September 30, 2016 and December 31, 2015:

				Fair Value Measurements at September 30, 2016 Using
Description	Total Fair Value at September 30, 2016			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, 2015
	(In Thousands)
Assets - Supplies, prepaid items and other:
Commodities contracts (1)	$	2		$	—	$	2		$	—		$	195
Carbon credits		—			—		—			—			1,154
Foreign exchange contracts		1			—		1			—			—
Total	$	3		$	—	$	3		$	—		$	1,349
Liabilities - Current and noncurrent accrued and other liabilities:
Commodities contracts (1)	$	(2	)	$	—	$	(2	)	$	—		$	(202	)
Contractual obligations - carbon credits		—			—		—			—			(1,154	)
Embedded derivative		(2,605	)		—		—			(2,605	)		(3,308	)
Interest rate contracts		—			—		—			—			(126	)
Foreign exchange contracts		—			—		—			—			(6	)
Total	$	(2,607	)	$	—	$	(2	)	$	(2,605	)	$	(4,796	)

(1)

At September 30, 2016 and December 31, 2015, $2,000 and $195,000, respectively, are subject to an agreement that allows net settlement of contracts related to natural gas commitments; however, we have chosen to present the fair values of our commodities contracts under master netting agreements using a gross fair value presentation.

Note 9: Derivatives, Hedges, Financial Instruments and Carbon Credits (continued)

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						Assets						Liabilities
	Three Months Ended						Three Months Ended						Nine Months Ended						Nine Months Ended
	September 30,						September 30,						September 30,						September 30,
	2016			2015			2016			2015			2016			2015			2016			2015
	(In Thousands)
Beginning balance	$	6		$	4,049		$	(1,871	)	$	(4,049	)	$	1,154		$	2,779		$	(1,154	)	$	(2,779	)
Transfers into Level 3		—			—			—			—			—			—			(5,817	)		—
Transfers out of Level 3		—			—			—			—			—			—			—			—

Total realized and unrealized gains (losses) included in operating results		1,196			—			(3,395	)		904			1,256			1,334			754			(430	)
Purchases		—			—			—			—			—			—			—			—
Issuances		—			—			—			—			—			—			—			—
Sales		(1,202	)		(3,862	)		—			—			(2,410	)		(3,926	)		—			—
Settlements		—			—			2,661			2,958			—			—			3,612			3,022
Ending balance	$	—		$	187		$	(2,605	)	$	(187	)	$	—		$	187		$	(2,605	)	$	(187	)

Total gains (losses) for the period included in operating results attributed to the change in unrealized gains or losses on assets and liabilities still held at the reporting date	$	—		$	—		$	(2,199	)	$	—		$	—		$	177			(816	)	$	(177	)

Net Gains (Losses) Included in Continuing Operating Results and The Statement of Operations Classifications

Net gains (losses) included in continuing operating results and the statement of operations classifications are as follows:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
	(In Thousands)
Total net gains (losses) included in operating results:
Cost of sales - Undesignated commodities contracts (1)	$	18		$	(1,014	)	$	81		$	(2,657	)
Cost of sales - Undesignated foreign exchange contracts		1			2			7			(62	)
Other income - Carbon credits		1,196			904			1,513			2,645
Other expense - Contractual obligations relating to carbon credits		(922	)		—			(982	)		(1,741	)
Non-operating other expense - embedded derivative		(2,474	)		—			(1,031	)		—
Interest expense - Undesignated interest rate contracts		—			(10	)		—			(55	)
Total net losses included in operating results	$	(2,181	)	$	(118	)	$	(412	)	$	(1,870	)

(1)	Net losses of $512,000 and $917,000 have been reclassified to discontinued operations for the three and nine months ended September 30, 2015. See Note 2-Discontinued Operations.

Schedule of Carrying Values and Estimated Fair Values of Financial Instruments

Note 9: Derivatives, Hedges, Financial Instruments and Carbon Credits (continued)

We did not have any financial instruments with fair values significantly different from their carrying amounts, except for the Senior Secured Notes at December 31, 2015, as shown below.

	September 30, 2016				December 31, 2015
	Carrying		Estimated		Carrying		Estimated
	Amount		Fair Value		Amount		Fair Value
	(In Millions)
Senior Secured Notes (1)	$	425	$	430	$	425	$	355

(1)	Based on a quoted price of 101.13 at September 30, 2016 and 83.65 at December 31, 2015.