Derivatives (Tables)

9 Months Ended

Sep. 30, 2018

Derivative [Line Items]

Schedule of Derivative Assets and Liabilities at Fair Value

The following table provides the fair values of our derivative financial instruments for the periods presented:

(dollars in thousands)		Fair Value of Derivative Assets
	Balance Sheet Location	September 30, 2018		December 31, 2017
Cash flow hedges:
Interest rate swaps	Prepaid and other current assets	$	1,548	$	—
Interest rate swaps	Other assets	—		646
Natural gas contracts	Prepaid and other current assets	196		—
Total designated		1,744		646
Total derivative assets		$	1,744	$	646
		Fair Value of Derivative Liabilities
		September 30, 2018		December 31, 2017
Cash flow hedges:
Interest rate swaps	Derivative liability	$	—	$	213
Interest rate swaps	Other long-term liabilities	412		—
Natural gas contracts	Derivative liability	—		220
Natural gas contracts	Other long-term liabilities	—		7
Total designated		412		440
Derivatives not designated as hedging instruments:
Natural gas contracts	Derivative liability	—		264
Natural gas contracts	Other long-term liabilities	—		12
Total undesignated		—		276
Total derivative liabilities		$	412	$	716

Schedule of Derivative Instruments

The following table presents cash settlements (paid) received related to the below derivatives:

	Three months ended September 30,					Nine months ended September 30,
(dollars in thousands)	2018		2017			2018			2017
Natural gas contracts	$	48	$	(121	)	$	(186	)	$	177
Interest rate swaps	123		(384		)	(58		)	(1,494		)
Total	$	171	$	(505	)	$	(244	)	$	(1,317	)

Summary of the Gain (Loss) Recognized in the Statement of Operations

The following table provides a summary of the impacts of derivative gain (loss) on the Consolidated Statements of Operations and other comprehensive income (OCI):

		Three months ended September 30,						Nine months ended September 30,
(dollars in thousands)	Location	2018			2017			2018			2017
Cash flow hedges:
Effective portion of derivative gain (loss) recognized into OCI:
Natural gas contracts	OCI	$	179		$	6		$	513		$	(703	)
Interest rate swaps	OCI	(998		)	87			735			(328		)
Total		$	(819	)	$	93		$	1,248		$	(1,031	)
Effective portion of derivative gain (loss) reclassified from accumulated OCI to current earnings:
Natural gas contracts	Cost of Sales	$	48		$	(76	)	$	(186	)	$	81
Interest rate swaps	Interest expense	135			(358		)	32			(1,415		)
Total		$	183		$	(434	)	$	(154	)	$	(1,334	)
Derivatives not designated as hedging instruments:
Gain (loss) recognized in current earnings:
Natural gas contracts	Other income (expense)	$	—		$	(4	)	$	—		$	(823	)
Total		$	—		$	(4	)	$	—		$	(823	)

Natural Gas Contracts

Derivative [Line Items]

Schedule of Notional Amounts of Outstanding Derivative Positions

The following table presents the notional amount of our natural gas derivatives on the Condensed Consolidated Balance Sheets:

		Notional Amounts
Derivative Types	Unit of Measure	September 30, 2018	December 31, 2017
Natural gas contracts	Millions of British Thermal Units (MMBTUs)	3,960,000	2,480,000

Interest Rate Swaps

Derivative [Line Items]

Schedule of Notional Amounts of Outstanding Derivative Positions

The table below lists the interest rate swaps we executed as part of our risk management strategy to mitigate the risks associated with the fluctuating interest rates under our Term Loan B. The interest rate swaps effectively convert a portion of our Term Loan B debt from a variable interest rate to a fixed interest rate, thus reducing the impact of interest rate changes on future income.

Swap execution date	Effective date	Expiration date	Notional amount	Fixed swap rate
April 1, 2015	January 11, 2016	January 9, 2020	$220.0 million	4.85	%
September 24, 2018	January 9, 2020	January 9, 2025	$200.0 million	6.19	%	(1)

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⁽¹⁾  Upon refinancing our Term Loan B, the fixed interest rate will be 3.19 percent plus the new refinanced credit spread.