Derivatives (Tables)

12 Months Ended

Dec. 31, 2018

Derivative [Line Items]

Fair Values of Derivative Instruments

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

December 31, (dollars in thousands)		Fair Value of Derivative Assets
	Balance Sheet Location	2018		2017
Cash flow hedges:
Interest rate swaps	Prepaid and other current assets	$	1,425	$	—
Interest rate swaps	Other assets	—		646
Natural gas contracts	Prepaid and other current assets	226		—
Natural gas contracts	Other assets	39		—
Total designated		1,690		646
Derivatives not designated as hedging instruments:
Total undesignated		—		—
Total derivative assets		$	1,690	$	646
December 31, (dollars in thousands)		Fair Value of Derivative Liabilities
	Balance Sheet Location	2018		2017
Cash flow hedges:
Interest rate swaps	Accrued liabilities	$	—	$	213
Interest rate swaps	Other long-term liabilities	5,713		—
Natural gas contracts	Accrued liabilities	—		220
Natural gas contracts	Other long-term liabilities	—		7
Total designated		5,713		440
Derivatives not designated as hedging instruments:
Natural gas contracts	Accrued liabilities	—		264
Natural gas contracts	Other long-term liabilities	—		12
Total undesignated		—		276
Total derivative liabilities		$	5,713	$	716

Cash Settlements

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

Year ended December 31, (dollars in thousands)	2018		2017
Natural gas contracts	$	426	$	(47	)
Interest rate swaps	159		(1,836		)
Total	$	585	$	(1,883	)

Summary of the gain (loss) recognized in the Statement of Operations and AOCI

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

Year ended December 31, (dollars in thousands)	Location	2018			2017
Cash flow hedges:
Effective portion of derivative gain (loss) recognized in OCI:
Natural gas contracts	OCI	$	1,194		$	(1,019	)
Interest rate swaps	OCI	(4,436		)	733
Total		$	(3,242	)	$	(286	)
Effective portion of derivative gain (loss) reclassified from accumulated OCI to current earnings:
Natural gas contracts	Cost of Sales	$	426		$	(45	)
Interest rate swaps	Interest expense	285			(1,735		)
Total		$	711		$	(1,780	)
Derivatives not designated as hedging instruments:
Gain (loss) recognized in current earnings:
Natural gas contracts	Other income (expense)	—			(1,036		)
Total		$	—		$	(1,036	)

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 Consolidated Balance Sheets:

		Notional Amounts
Derivative Types	Unit of Measure	December 31, 2018	December 31, 2017
Natural gas contracts	Millions of British Thermal Units (MMBTUs)	3,150,000	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.