Derivatives (Tables)

6 Months Ended

Jun. 30, 2019

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, all of which are cash flow hedges:

(dollars in thousands)		Fair Value of Derivative Assets
	Balance Sheet Location	June 30, 2019		December 31, 2018
Interest rate swaps	Prepaid and other current assets	$	—	$	1,425
Natural gas contracts	Prepaid and other current assets	—		226
Natural gas contracts	Other assets	—		39
Total derivative assets		$	—	$	1,690
		Fair Value of Derivative Liabilities
Interest rate swaps	Accrued liabilities	$	1,080	$	—
Interest rate swaps	Other long-term liabilities	12,363		5,713
Natural gas contracts	Accrued liabilities	854		—
Natural gas contracts	Other long-term liabilities	87		—
Total derivative liabilities		$	14,384	$	5,713

Schedule of Derivative Instruments

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

	Three months ended June 30,						Six months ended June 30,
(dollars in thousands)	2019			2018			2019		2018
Natural gas contracts	$	(65	)	$	(36	)	$	63	$	(234	)
Interest rate swaps	347			(3		)	691		(181		)
Total	$	282		$	(39	)	$	754	$	(415	)

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

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

		Three months ended June 30,						Six months ended June 30,
(dollars in thousands)	Location	2019			2018			2019			2018
Derivative gain (loss) recognized into OCI:
Natural gas contracts	OCI	$	(1,106	)	$	123		$	(1,143	)	$	334
Interest rate swaps	OCI	(4,987		)	480			(8,465		)	1,733
Total		$	(6,093	)	$	603		$	(9,608	)	$	2,067
Derivative gain (loss) reclassified from accumulated OCI to current earnings:
Natural gas contracts	Cost of Sales	$	(65	)	$	(36	)	$	63		$	(234	)
Interest rate swaps	Interest expense	335			40			690			(103		)
Total		$	270		$	4		$	753		$	(337	)

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	June 30, 2019	December 31, 2018
Natural gas contracts	Millions of British Thermal Units (MMBTUs)	3,710,000	3,150,000

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.