Derivatives and Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2011

Derivatives and Fair Value Measurements [Abstract]

Company's foreign currency and commodity positions


	Notional Amount by Year of Maturity
													2016 and
	Total		2011		2012		2013		2014		2015		thereafter
Foreign Currency
A$:US$ hedge contracts (A $ millions)	$	3,902.7	$	755.6	$	1,485.0	$	1,083.6	$	578.5	$	—	$	—

Commodity Contracts
Diesel fuel hedge contracts (million gallons)		187.0		43.8		78.1		49.8		15.3		—		—
U.S. explosives hedge contracts (million MMBtu)		7.9		2.0		3.5		2.1		0.3		—		—


	Account Classification by
	Cash Flow		Fair Value		Economic		Fair Value Asset
	Hedge		Hedge		Hedge		(Liability)
							(Dollars in millions)
Foreign Currency
A$:US$ hedge contracts (A $ millions)	$	3,902.7	$	—	$	—	$	773.6

Commodity Contracts
Diesel fuel hedge contracts (million gallons)		187.0		—		—	$	95.3
U.S. explosives hedge contracts (million MMBtu)		7.9		—		—	$	(1.3	)

Classification and amounts of pre-tax gains and losses related to the Company's non-trading hedges


		Three Months Ended June 30, 2011
				Gain (loss)			Gain (loss)			Gain (loss)
		Gain (loss)		recognized in other			reclassified from			reclassified from
	Statement of Operations	recognized in income		comprehensive			other comprehensive			other comprehensive
	Classification Gains (Losses) -	on non-designated		income on derivative			income into income			income into income
Financial Instrument	Realized	derivatives		(effective portion)			(effective portion)			(ineffective portion)
		(Dollars in millions)
Diesel fuel hedge contracts:
— Cash flow hedges	Operating costs and expenses	$	—	$	(26.0	)	$	11.9		$	(0.3	)
Explosives cash flow hedge contracts:
— Cash flow hedges	Operating costs and expenses		—		(0.9	)		(0.1	)		(0.4	)
Foreign currency cash flow hedge contracts:
— Operating costs	Operating costs and expenses		—		183.1			96.2			—
— Capital expenditures	Depreciation, depletion and amortization		—		(0.2	)		—			—

Total		$	—	$	156.0		$	108.0		$	(0.7	)


		Three Months Ended June 30, 2010
					Gain (loss)			Gain (loss)			Gain (loss)
		Gain (loss)			recognized in other			reclassified from			reclassified from
	Statement of Operations	recognized in income			comprehensive			other comprehensive			other comprehensive
	Classification Gains (Losses) -	on non-designated			income on derivative			income into income			income into income
Financial Instrument	Realized	derivatives ⁽¹⁾			(effective portion)			(effective portion)			(ineffective portion)
					(Dollars in millions)
Interest rate swaps:
— Cash flow hedges	Interest expense	$	(8.5	)	$	(0.1	)	$	0.7		$	—
Diesel fuel hedge contracts:
— Cash flow hedges	Operating costs and expenses		—			(40.2	)		(9.3	)		(1.7	)
Explosives cash flow hedge contracts:
— Cash flow hedges	Operating costs and expenses		—			0.2			(2.6	)		—
Foreign currency cash flow hedge contracts	Operating costs and expenses		—			(161.4	)		27.1			—

Total		$	(8.5	)	$	(201.5	)	$	15.9		$	(1.7	)


⁽¹⁾		Amounts relate to swaps that were de-designated and terminated in conjunction with the refinancing of the Company’s previous credit facility.


		Six Months Ended June 30, 2011
				Gain (loss)			Gain (loss)			Gain (loss)
		Gain (loss)		recognized in other			reclassified from			reclassified from
	Statement of Operations	recognized in income		comprehensive			other comprehensive			other comprehensive
	Classification Gains (Losses) -	on non-designated		income on derivative			income into income			income into income
Financial Instrument	Realized	derivatives		(effective portion)			(effective portion)			(ineffective portion)
				(Dollars in millions)
Diesel fuel hedge contracts:
— Cash flow hedges	Operating costs and expenses	$	—	$	72.9		$	20.0		$	2.1
Explosives cash flow hedge contracts:
— Cash flow hedges	Operating costs and expenses		—		(0.8	)		(0.1	)		(0.5	)
Foreign currency cash flow hedge contracts:
— Operating costs	Operating costs and expenses		—		302.9			168.9			—
— Capital expenditures	Depreciation, depletion and amortization		—		(0.2	)		—			—

Total		$	—	$	374.8		$	188.8		$	1.6


		Six Months Ended June 30, 2010
					Gain (loss)			Gain (loss)			Gain (loss)
		Gain (loss)			recognized in other			reclassified from			reclassified from
	Statement of Operations	recognized in income			comprehensive			other comprehensive			other comprehensive
	Classification Gains (Losses) -	on non-designated			income on derivative			income into income			income into income
Financial Instrument	Realized	derivatives ⁽¹⁾			(effective portion)			(effective portion)			(ineffective portion)
					(Dollars in millions)
Interest rate swaps:
— Cash flow hedges	Interest expense	$	(8.5	)	$	0.8		$	(0.5	)	$	—
Diesel fuel hedge contracts:
— Cash flow hedges	Operating costs and expenses		—			(29.8	)		(16.4	)		(0.7	)
Explosives cash flow hedge contracts:
— Cash flow hedges	Operating costs and expenses		—			(3.6	)		(4.9	)		—
Foreign currency cash flow hedge contracts	Operating costs and expenses		—			(79.4	)		65.9			—

Total		$	(8.5	)	$	(112.0	)	$	44.1		$	(0.7	)


⁽¹⁾		Amounts relate to swaps that were de-designated and terminated in conjunction with the refinancing of the Company’s previous credit facility.

Classification and amount of derivatives, gross


	Fair Value as of June 30, 2011
	Current		Noncurrent		Current		Noncurrent
Financial Instrument	Assets		Assets		Liabilities		Liabilities
	(Dollars in millions)
Diesel fuel cash flow hedge contracts	$	58.8	$	42.7	$	4.3	$	1.9
Explosives cash flow hedge contracts		0.3		—		0.7		0.9
Foreign currency cash flow hedge contracts		387.7		386.4		0.4		0.1

Total	$	446.8	$	429.1	$	5.4	$	2.9


	Fair Value as of December 31, 2010
	Current		Noncurrent		Current		Noncurrent
Financial Instrument	Assets		Assets		Liabilities		Liabilities
	(Dollars in millions)
Diesel fuel cash flow hedge contracts	$	25.3	$	26.9	$	11.9	$	—
Explosives cash flow hedge contracts		0.5		0.1		0.1		0.6
Foreign currency cash flow hedge contracts		273.5		366.6		—		—

Total	$	299.3	$	393.6	$	12.0	$	0.6

Fair value measured on recurring basis of financial assets and liabilities


	June 30, 2011
	Level 1		Level 2			Level 3		Total
	(Dollars in millions)
Investment in debt and equity securities	$	41.4	$	—		$	—	$	41.4
Commodity swaps and options — diesel fuel		—		95.3			—		95.3
Commodity swaps and options — explosives		—		(1.3	)		—		(1.3	)
Foreign currency hedge contracts		—		773.6			—		773.6

Total net financial assets	$	41.4	$	867.6		$	—	$	909.0


	December 31, 2010
	Level 1		Level 2			Level 3		Total
	(Dollars in millions)
Investment in debt securities	$	17.9	$	—		$	—	$	17.9
Commodity swaps and options — diesel fuel		—		40.3			—		40.3
Commodity swaps and options — explosives		—		(0.1	)		—		(0.1	)
Foreign currency hedge contracts		—		640.1			—		640.1

Total net financial assets	$	17.9	$	680.3		$	—	$	698.2

Carrying amounts and estimated fair values of the Company's debt


	June 30, 2011				December 31, 2010
	Carrying		Estimated		Carrying		Estimated
	Amount		Fair Value		Amount		Fair Value
	(Dollars in millions)
Long-term debt	$	2,512.0	$	2,696.7	$	2,750.0	$	2,960.0

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

+ References+ Details

- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References+ Details