Derivatives and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Fair Value, by Balance Sheet Grouping

The fair value of derivatives reflected in the accompanying condensed consolidated balance sheets are set forth in the table below.

	September 30, 2020				December 31, 2019
	Asset Derivative		Liability Derivative		Asset Derivative		Liability Derivative
	(Dollars in millions)
Foreign currency option contracts	$	6.1	$	—	$	1.1	$	—
Coal contracts related to forecasted sales	10.0		(1.9)		20.1		(0.1)
Coal trading contracts	35.3		(30.3)		81.1		(74.2)
Total derivatives	51.4		(32.2)		102.3		(74.3)
Effect of counterparty netting	(32.0)		32.0		(74.3)		74.3
Variation margin held	(11.1)		—		(22.1)		—
Net derivatives and margin as classified in the balance sheets	$	8.3	$	(0.2)	$	5.9	$	—

Derivative Instruments, Gain (Loss)

The tables below show the amounts of pre-tax gains and losses related to the Company’s derivatives.

	Three Months Ended September 30, 2020
	Total gain (loss) recognized in income		Gain (loss) realized in income on derivatives		Unrealized gain (loss) recognized in income on derivatives
Financial Instrument
	(Dollars in millions)
Foreign currency option contracts	$	3.9	$	3.2	$	0.7
Coal contracts related to forecasted sales	(16.7)		(0.6)		(16.1)
Coal trading contracts	(0.2)		(0.2)		—
Total	$	(13.0)	$	2.4	$	(15.4)
	Three Months Ended September 30, 2019
	Total (loss) gain recognized in income		Loss realized in income on derivatives		Unrealized gain (loss) recognized in income on derivatives
Financial Instrument
	(Dollars in millions)
Foreign currency option contracts	$	(1.0)	$	(1.3)	$	0.3
Coal contracts related to forecasted sales	(22.7)		(4.7)		(18.0)
Coal trading contracts	0.7		(1.3)		2.0
Total	$	(23.0)	$	(7.3)	$	(15.7)

	Nine Months Ended September 30, 2020
	Total gain (loss) recognized in income		Gain (loss) realized in income on derivatives		Unrealized gain (loss) recognized in income on derivatives
Financial Instrument
	(Dollars in millions)
Foreign currency option contracts	$	5.2	$	1.6	$	3.6
Coal contracts related to forecasted sales	(12.5)		(1.2)		(11.3)
Coal trading contracts	(0.5)		1.9		(2.4)
Total	$	(7.8)	$	2.3	$	(10.1)
	Nine Months Ended September 30, 2019
	Total (loss) gain recognized in income		(Loss) gain realized in income on derivatives		Unrealized gain recognized in income on derivatives
Financial Instrument
	(Dollars in millions)
Foreign currency option contracts	$	(3.5)	$	(3.7)	$	0.2
Coal contracts related to forecasted sales	70.5		26.3		44.2
Coal trading contracts	(0.5)		(12.0)		11.5
Total	$	66.5	$	10.6	$	55.9

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 positions for which fair value is measured on a recurring basis:

	September 30, 2020
	Level 1		Level 2		Level 3		Total
	(Dollars in millions)
Foreign currency option contracts	$	—	$	6.1	$	—	$	6.1
Coal contracts related to forecasted sales	—		10.2		—		10.2
Coal trading contracts	—		(8.2)		—		(8.2)
Equity securities	—		—		4.0		4.0
Total net financial assets	$	—	$	8.1	$	4.0	$	12.1
	December 31, 2019
	Level 1		Level 2		Level 3		Total
	(Dollars in millions)
Foreign currency option contracts	$	—	$	1.1	$	—	$	1.1
Coal contracts related to forecasted sales	—		21.2		—		21.2
Coal trading contracts	—		(16.4)		—		(16.4)
Equity securities	—		—		4.0		4.0
Total net financial assets	$	—	$	5.9	$	4.0	$	9.9

Carrying Amounts And Estimated Fair Values Of Companys Debt

The fair value of debt, shown below, is principally based on reported market values and estimates based on interest rates, maturities, credit risk, underlying collateral and completed market transactions, which have been limited in recent history.

	September 30, 2020		December 31, 2019
	(Dollars in millions)
Total debt at par value	$	1,646.9	$	1,367.2
Less: Unamortized debt issuance costs and original issue discount	(46.8)		(56.4)
Net carrying amount	$	1,600.1	$	1,310.8
Estimated fair value	$	886.9	$	1,271.1