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This excerpt taken from the ACI 10-K filed Mar 1, 2010. Coal
risk management positions
The Company may sell or purchase forward contracts and options
in the
over-the-counter
coal market in order to manage its exposure to coal prices. The
Company has exposure to the risk of fluctuating coal prices
related to forecasted sales or purchases of coal or to the risk
of changes in the fair value of a fixed price physical sales
contract. Certain derivative contracts may be designated as
hedges of these risks.
At December 31, 2009, the Company held derivatives for risk
management purposes totaling 1.3 million tons of coal sales
that are expected to settle during the remainder of 2010 and
0.8 million tons of coal sales that are expected to settle
in 2011.
These excerpts taken from the ACI 10-K filed Feb 27, 2009. Coal
risk management positions
The Company may sell or purchase forward contracts and options
in the over-the-counter coal market in order to manage its
exposure to coal prices. The fair value of these derivative
instruments are included in coal derivative assets and coal
derivative liabilities in the accompanying consolidated balance
sheets. Certain contracts may be designated as the hedge
instrument in a hedging relationship, and the changes in value
are recorded in other comprehensive income. Losses of
$14.2 million are expected to be reclassified from other
comprehensive income into earnings in 2009, based on fair values
at December 31, 2008.
Coal risk management positions The Company may sell or purchase forward contracts and options in the over-the-counter coal market in order to manage its exposure to coal prices. The fair value of these derivative instruments are included in coal derivative assets and coal derivative liabilities in the accompanying consolidated balance sheets. Certain contracts may be designated as the hedge instrument in a hedging relationship, and the changes in value are recorded in other comprehensive income. Losses of $14.2 million are expected to be reclassified from other comprehensive income into earnings in 2009, based on fair values at December 31, 2008. | EXCERPTS ON THIS PAGE:
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