Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 24, 2020 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-13105 | |
Entity Registrant Name | Arch Resources, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 43-0921172 | |
Entity Central Index Key | 0001037676 | |
Entity Address, Address Line One | One CityPlace Drive | |
Entity Address, Address Line Two | SuiteĀ 300 | |
Entity Address, City or Town | St. Louis | |
Entity Address, State or Province | MO | |
Entity Address, Postal Zip Code | 63141 | |
City Area Code | 314 | |
Local Phone Number | 994-2700 | |
Title of 12(b) Security | Common stock, $.01 par value | |
Trading Symbol | ARCH | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business Company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 15,146,224 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 |
Condensed Consolidated Income S
Condensed Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues | $ 319,521 | $ 570,222 | $ 724,753 | $ 1,125,405 |
Costs, expenses and other operating | ||||
Cost of sales (exclusive of items shown separately below) | 316,348 | 451,088 | 691,347 | 889,559 |
Depreciation, depletion and amortization | 30,167 | 26,535 | 61,475 | 51,873 |
Accretion on asset retirement obligations | 4,986 | 5,137 | 9,992 | 10,274 |
Change in fair value of coal derivatives and coal trading activities, net | (129) | (8,400) | 614 | (21,381) |
Selling, general and administrative expenses | 19,738 | 25,209 | 42,483 | 49,298 |
Costs related to proposed joint venture with Peabody Energy | 7,851 | 3,018 | 11,515 | 3,018 |
Severance costs related to voluntary separation plan | 7,437 | 13,265 | ||
Gain on property insurance recovery related to Mountain Laurel longwall | (14,518) | (23,518) | ||
Other operating income, net | (5,704) | (3,239) | (11,874) | (4,889) |
Costs, expenses and other operating | 364,807 | 503,652 | 793,930 | 982,056 |
Income (loss) from operations | (45,286) | 66,570 | (69,177) | 143,349 |
Interest expense, net | ||||
Interest expense | (3,523) | (4,375) | (6,911) | (8,807) |
Interest and investment income | 1,793 | 2,088 | 3,052 | 4,231 |
Interest expense, net | (1,730) | (2,287) | (3,859) | (4,576) |
Income (loss) before nonoperating expenses | (47,016) | 64,283 | (73,036) | 138,773 |
Nonoperating (expenses) income | ||||
Non-service related pension and postretirement benefit costs | (1,102) | (1,336) | (2,198) | (3,102) |
Reorganization items, net | (16) | 26 | 71 | |
Nonoperating (expenses) income | (1,102) | (1,352) | (2,172) | (3,031) |
Income (loss) before income taxes | (48,118) | 62,931 | (75,208) | 135,742 |
Provision for (benefit from) income taxes | 1,206 | 91 | (585) | 161 |
Net income (loss) | $ (49,324) | $ 62,840 | $ (74,623) | $ 135,581 |
Net income (loss) per common share | ||||
Basic earnings per common share (in dollars per share) | $ (3.26) | $ 3.80 | $ (4.93) | $ 7.97 |
Diluted earnings per common share (in dollars per share) | $ (3.26) | $ 3.53 | $ (4.93) | $ 7.45 |
Weighted average shares outstanding | ||||
Basic weighted average shares outstanding (in shares) | 15,145 | 16,543 | 15,142 | 17,018 |
Diluted weighted average shares outstanding (in shares) | 15,145 | 17,781 | 15,142 | 18,190 |
Dividends declared per common share (in dollars per share) | $ 0.45 | $ 0.50 | $ 0.90 | |
Dal-Tex and Briar Branch Properties | ||||
Costs, expenses and other operating | ||||
(Gain) loss on divestitures | $ (1,369) | $ 4,304 | $ (1,369) | $ 4,304 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||
Net income (loss) | $ (49,324) | $ 62,840 | $ (74,623) | $ 135,581 |
Derivative instruments | ||||
Comprehensive income (loss) before tax | 363 | (2,778) | (2,306) | (61) |
Other comprehensive income (loss), derivative instruments, net of tax | 363 | (2,778) | (2,306) | (61) |
Pension, postretirement and other post-employment benefits | ||||
Comprehensive income (loss) before tax | (2,336) | 2,902 | (16,603) | 2,902 |
Other comprehensive income (loss), pension, postretirement and other post-employment benefits, net of tax | (2,336) | 2,902 | (16,603) | 2,902 |
Available-for-sale securities | ||||
Comprehensive income (loss) before tax | 533 | 274 | 66 | 651 |
Other comprehensive income (loss), available-for-sale securities, net of tax | 533 | 274 | 66 | 651 |
Total other comprehensive income (loss) | (1,440) | 398 | (18,843) | 3,492 |
Total comprehensive income (loss) | $ (50,764) | $ 63,238 | $ (93,466) | $ 139,073 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 150,022 | $ 153,020 |
Short term investments | 67,237 | 135,667 |
Trade accounts receivable (net of $718 allowance at June 30, 2020) | 118,835 | 168,125 |
Other receivables | 2,960 | 21,143 |
Inventories | 154,690 | 130,898 |
Other current assets | 70,758 | 97,894 |
Total current assets | 564,502 | 706,747 |
Property, plant and equipment, net | 1,066,614 | 984,509 |
Other assets | ||
Equity investments | 106,125 | 105,588 |
Other noncurrent assets | 65,148 | 70,912 |
Total other assets | 171,273 | 176,500 |
Total assets | 1,802,389 | 1,867,756 |
Current Liabilities | ||
Accounts payable | 104,464 | 133,060 |
Accrued expenses and other current liabilities | 143,304 | 157,167 |
Current maturities of debt | 25,702 | 20,753 |
Total current liabilities | 273,470 | 310,980 |
Long-term debt | 323,854 | 290,066 |
Asset retirement obligations | 238,883 | 242,432 |
Accrued pension benefits | 13,875 | 5,476 |
Accrued postretirement benefits other than pension | 86,772 | 80,567 |
Accrued workers' compensation | 219,095 | 215,599 |
Other noncurrent liabilities | 98,658 | 82,100 |
Total liabilities | 1,254,607 | 1,227,220 |
Stockholders' equity | ||
Common stock, $0.01 par value, authorized 300,000 shares, issued 25,235 and 25,220 shares at June 30, 2020 and December 31, 2019, respectively | 252 | 252 |
Paid-in capital | 739,156 | 730,551 |
Retained earnings | 648,909 | 731,425 |
Treasury stock, 10,088 shares at June 30, 2020 and December 31, 2019, respectively, at cost | (827,381) | (827,381) |
Accumulated other comprehensive income (loss) | (13,154) | 5,689 |
Total stockholders' equity | 547,782 | 640,536 |
Total liabilities and stockholders' equity | $ 1,802,389 | $ 1,867,756 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowance | $ 718 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 25,235,000 | 25,220,000 |
Treasury stock, shares (in shares) | 10,088,000 | 10,088,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Operating activities | ||
Net income (loss) | $ (74,623) | $ 135,581 |
Adjustments to reconcile to cash from operating activities: | ||
Depreciation, depletion and amortization | 61,475 | 51,873 |
Accretion on asset retirement obligations | 9,992 | 10,274 |
Deferred income taxes | 13,880 | 13,385 |
Employee stock-based compensation expense | 8,936 | 11,473 |
Gains on disposals and divestitures, net | (3,180) | (1,415) |
Amortization relating to financing activities | 1,946 | 1,826 |
Gain on property insurance recovery related to Mountain Laurel longwall | (23,518) | |
Changes in: | ||
Receivables | 55,817 | 17,871 |
Inventories | (23,792) | (47,370) |
Accounts payable, accrued expenses and other current liabilities | (42,889) | 4,497 |
Income taxes, net | 22,918 | 24,575 |
Other | 18,960 | 3,336 |
Cash provided by operating activities | 25,922 | 225,906 |
Investing activities | ||
Capital expenditures | (148,561) | (87,854) |
Minimum royalty payments | (1,124) | (1,125) |
Proceeds from disposals and divestitures | 562 | 1,591 |
Purchases of short term investments | (17,707) | (89,454) |
Proceeds from sales of short term investments | 86,079 | 90,424 |
Investments in and advances to affiliates, net | (1,059) | (3,275) |
Proceeds from property insurance recovery related to Mountain Laurel longwall | 23,518 | |
Cash used in investing activities | (58,292) | (89,693) |
Financing activities | ||
Payments on term loan due 2024 | (1,500) | (1,500) |
Proceeds from equipment financing | 53,611 | |
Net payments on other debt | (13,592) | (8,845) |
Debt financing costs | (1,171) | |
Dividends paid | (7,645) | (15,264) |
Purchases of treasury stock | (143,142) | |
Payments for taxes related to net share settlement of equity awards | (331) | |
Other | 30 | |
Cash provided by (used in) financing activities | 29,372 | (168,721) |
Decrease in cash and cash equivalents, including restricted cash | (2,998) | (32,508) |
Cash and cash equivalents, including restricted cash, beginning of period | 153,020 | 264,937 |
Cash and cash equivalents, including restricted cash, end of period | 150,022 | 232,429 |
Cash and cash equivalents, including restricted cash, end of period | ||
Cash and cash equivalents, including restricted cash | $ 150,022 | $ 232,429 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Common Stock | Paid-in Capital | Retained Earnings | Treasury Stock, at cost | Accumulated Other Comprehensive Income (Loss) | Total |
Beginning Balance at Dec. 31, 2018 | $ 250 | $ 717,492 | $ 527,666 | $ (583,883) | $ 43,296 | $ 704,821 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends on common shares | (8,111) | (8,111) | ||||
Total comprehensive income (loss) | 72,741 | 3,094 | 75,835 | |||
Employee stock-based compensation | 5,651 | 5,651 | ||||
Purchase of common stock under share repurchase program | (78,249) | (78,249) | ||||
Ending Balance at Mar. 31, 2019 | 250 | 723,143 | 592,296 | (662,132) | 46,390 | 699,947 |
Beginning Balance at Dec. 31, 2018 | 250 | 717,492 | 527,666 | (583,883) | 43,296 | 704,821 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Total comprehensive income (loss) | 139,073 | |||||
Ending Balance at Jun. 30, 2019 | 250 | 728,996 | 647,440 | (725,524) | 46,788 | 697,950 |
Beginning Balance at Mar. 31, 2019 | 250 | 723,143 | 592,296 | (662,132) | 46,390 | 699,947 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends on common shares | (7,696) | (7,696) | ||||
Total comprehensive income (loss) | 62,840 | 398 | 63,238 | |||
Employee stock-based compensation | 5,822 | 5,822 | ||||
Purchase of common stock under share repurchase program | (63,392) | (63,392) | ||||
Warrants exercised | 31 | 31 | ||||
Ending Balance at Jun. 30, 2019 | 250 | 728,996 | 647,440 | (725,524) | 46,788 | 697,950 |
Beginning Balance at Dec. 31, 2019 | 252 | 730,551 | 731,425 | (827,381) | 5,689 | 640,536 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends on common shares | (7,834) | (7,834) | ||||
Total comprehensive income (loss) | (25,299) | (17,403) | (42,702) | |||
Employee stock-based compensation | 3,962 | 3,962 | ||||
Common stock withheld related to net share settlement of equity awards | (198) | (198) | ||||
Ending Balance at Mar. 31, 2020 | 252 | 734,315 | 698,292 | (827,381) | (11,714) | 593,764 |
Beginning Balance at Dec. 31, 2019 | 252 | 730,551 | 731,425 | (827,381) | 5,689 | 640,536 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Total comprehensive income (loss) | (93,466) | |||||
Ending Balance at Jun. 30, 2020 | 252 | 739,156 | 648,909 | (827,381) | (13,154) | 547,782 |
Beginning Balance at Mar. 31, 2020 | 252 | 734,315 | 698,292 | (827,381) | (11,714) | 593,764 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Total comprehensive income (loss) | (49,324) | (1,440) | (50,764) | |||
Employee stock-based compensation | 4,891 | 4,891 | ||||
Common stock withheld related to net share settlement of equity awards | (50) | (50) | ||||
Dividend Equivalents earned on RSU grants | (59) | (59) | ||||
Ending Balance at Jun. 30, 2020 | $ 252 | $ 739,156 | $ 648,909 | $ (827,381) | $ (13,154) | $ 547,782 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Parenthetical) - $ / shares shares in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared per common share (in dollars per share) | $ 0.45 | $ 0.45 |
Purchase of shares of common stock under share repurchase program (in shares) | 697,255 | 872,317 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2020 | |
Basis of Presentation | |
Basis of Presentation | 1. The accompanying unaudited condensed consolidated financial statements include the accounts of Arch Resources, Inc. (āArch Resourcesā) and its subsidiaries (āArchā or the āCompanyā). Unless the context indicates otherwise, the terms āArchā and the āCompanyā are used interchangeably in this Quarterly Report on Form 10-Q. The Companyās primary business is the production of thermal and metallurgical coal from surface and underground mines located throughout the United States, for sale to utility, industrial and steel producers both in the United States and around the world. The Company currently operates mining complexes in West Virginia, Illinois, Wyoming and Colorado. All subsidiaries are wholly-owned. Intercompany transactions and accounts have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting and U.S. Securities and Exchange Commission regulations. In the opinion of management, all adjustments, consisting of normal, recurring accruals considered necessary for a fair presentation, have been included. Results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of results to be expected for the year ending December 31, 2020. These financial statements should be read in conjunction with the audited financial statements and related notes as of and for the year ended December 31, 2019 included in the Companyās Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission. Effective May 15, 2020, Arch Coal, Inc. announced that its name changed to Arch Resources, Inc. |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies | |
Accounting Policies | 2. Recently Adopted Accounting Guidance In June 2016, the FASB issued ASU 2016-13, āFinancial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments,ā and also issued subsequent amendments to the initial guidance under ASU 2018-19, ASU 2019-04 and ASU 2019-05. The standard modifies the measurement approach for credit losses on financial instruments, including trade receivables, from an incurred loss method to a current expected credit loss method, otherwise known as āCECL.ā The standard requires the measurement of expected credit losses to be based on relevant information, including historical experience, current conditions and a forecast that is supportable. The Company adopted the standard in the first quarter of 2020, with minimal impact to the Companyās financial results. As part of the adoption, the Company reviewed itsā portfolio of available-for-sale debt securities in an unrealized loss position, and assessed whether it intends to sell, or it is more likely than not that it will be required to sell before recovery of itsā amortized cost basis. The Company determined that is currently does not intend to sell these securities before recovery of their amortized cost basis. Additionally, the Company evaluated whether the decline in fair value has resulted from credit losses or other factors by considering the extent to which the fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the Company compares the present value of the cash flows expected to be collected against the amortized cost basis. A credit loss is recorded if the present value of the cash flows is less than the amortized cost basis, limited by the amount that the fair value is less than the amortized cost basis. Upon adoption, the Company did not record an allowance for credit losses on its available-for-sale debt securities. Additionally, the Company reviewed its open trade receivables arising from contractual coal sales. As part of its analysis, the Company performs periodic credit reviews of all active customers, reviews all trade receivables greater than 90 days past due, calculates historical loss rates and reviews current payment trends of all customers. ā Recent Accounting Guidance Issued Not Yet Effective In December 2019, the FASB issued ASU 2019- 12, āIncome Taxes (Topic 740) Simplifying the Accounting for Income Taxes.ā ASU 2019- 12 eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The ASU is effective for public companies for fiscal years beginning after December 15, 2020, and interim periods therein with early adoption permitted. The Company is reviewing the provisions of the standard but does not expect a significant impact to the Company's financial statements. In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." The amendments provide optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. We are currently evaluating our contracts and the optional expedients provided by the new standard. |
Joint Venture with Peabody Ener
Joint Venture with Peabody Energy | 6 Months Ended |
Jun. 30, 2020 | |
Joint Venture with Peabody Energy | |
Joint Venture with Peabody Energy | 3. On June 18, 2019, Arch Coal, Inc. (now Arch Resources) entered into a definitive implementation agreement (the āImplementation Agreementā) with Peabody Energy Corporation (āPeabodyā), to establish a joint venture that will combine the respective Powder River Basin and Colorado mining operations of Arch Resources and Peabody. Pursuant to the terms of the Implementation Agreement, Arch Resources will hold a 33.5% economic interest, and Peabody will hold a 66.5% economic interest in the joint venture. At the closing of the joint venture transaction, certain of the respective subsidiaries of Arch Resources and Peabody will enter into an Amended and Restated Limited Liability Company Agreement (the āLLC Agreementā). Under the terms of the LLC Agreement, the governance of the joint venture will be overseen by the joint ventureās board of managers, which will initially be comprised of three representatives appointed by Peabody and two representatives appointed by Arch. Decisions of the board of managers will be determined by a majority vote subject to certain specified matters set forth in the LLC Agreement that will require a supermajority vote. Peabody, or one of its affiliates, will initially be appointed as the operator of the joint venture and will manage the day-to-day operations of the joint venture, subject to the supervision of the joint ventureās board of managers. Formation of the joint venture is subject to customary closing conditions, including the termination or expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, the receipt of certain other required regulatory approvals and the absence of injunctions or other legal restraints preventing the formation of the joint venture. Formation of the joint venture does not require approval of the respective stockholders of either Arch or Peabody. On February 26, 2020, the Federal Trade Commission (āFTCā) filed an administrative complaint challenging the proposed joint venture alleging the transaction will eliminate competition between Arch Resources and Peabody, the two major competitors in the market for thermal coal in the Southern Powder River Basin and the two largest coal-mining companies in the United States. The FTC filed a temporary restraining order and preliminary injunction in the U.S. District Court for the Eastern District of Missouri, to maintain the status quo pending an administrative trial on the merits. Between July 14 and July 23, 2020, the federal court in St. Louis conducted an evidentiary hearing, during which both sides further presented their evidence and arguments. Closing arguments are scheduled to take place on August 10, 2020 and a ruling on the FTCās motion for preliminary injunction is expected by the end of the third quarter 2020. The Company has incurred expenses of $7.9 million and $11.5 million for the three and six months ended June 30, 2020, respectively, associated with the regulatory approval process related to the joint venture. Costs of million were incurred for both the three and six months ended June 30, 2019. |
Gain on Property Insurance Reco
Gain on Property Insurance Recovery Related to Mountain Laurel Longwall | 6 Months Ended |
Jun. 30, 2020 | |
Gain on Property Insurance Recovery Related to Mountain Laurel Longwall | |
Gain on Property Insurance Recovery Related to Mountain Laurel Longwall | 4. Gain on Property Insurance Recovery Related to Mountain Laurel Longwall The Company recorded a $14.5 million and $23.5 million gain related to a property insurance recovery on the longwall shields at its Mountain Laurel operation during the three and six months ended June 30, 2020, respectively. As a result of geologic conditions in the final longwall panel, Mountain Laurel was unable to recover 123 of the longwall systemās 176 hydraulic shields. All of the cash associated with the insurance recovery was received by the end of the quarter. |
Severance Costs Related To Volu
Severance Costs Related To Voluntary Separation Plan | 6 Months Ended |
Jun. 30, 2020 | |
Severance Costs Related To Voluntary Separation Plan | |
Severance Costs Related To Voluntary Separation Plan | 5. The Company recorded $7.4 million and $13.3 million of employee severance expense related to a voluntary separation plan during the three and six months ended June 30, 2020, respectively. During the first and second quarters of 2020, |
Divestitures
Divestitures | 6 Months Ended |
Jun. 30, 2020 | |
Divestitures | |
Divestitures | 6. Divestitures During the quarter, various Dal-Tex and Briar Branch properties in West Virginia were sold to Condor Holdings, LLC. No consideration was received for the sale and a gain of $1.4 million was recorded representing the net liabilities sold. On September 14, 2017, the Company sold Lone Mountain Processing, LLC and two idled mining companies, Cumberland River Coal LLC and Powell Mountain Energy LLC to Revelation Energy LLC, and recorded a gain on the transaction in that year of $21.3 million. Under the terms of the purchase agreement, Revelation assumed certain traumatic workers compensation claims and pneumoconiosis (occupational disease) benefits. On July 1, 2019, Blackjewel LLC and four affiliates, including Revelation Energy LLC filed for Chapter 11 bankruptcy. As a result of the bankruptcy, the Company recorded a $4.3 million charge for these claims as of June 30, 2019. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) | ā ā 7. The following items are included in accumulated other comprehensive income (loss) (āAOCIā), net of tax: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Pension, ā ā ā ā ā ā ā ā ā Postretirement ā ā ā ā Accumulated ā ā ā ā ā and Other Post- ā ā ā ā Other ā ā Derivative ā Employment ā Available-for- ā Comprehensive ā ā Instruments ā Benefits ā Sale Securities ā Income (loss) ā (In thousands) Balance at December 31, 2019 ā $ (2,564) ā $ 8,273 ā $ (20) $ 5,689 Unrealized losses ā (2,974) ā (15,953) ā 206 (18,721) Amounts reclassified from AOCI ā 668 ā (650) ā (140) (122) Balance at June 30, 2020 ā $ (4,870) ā $ (8,330) ā $ 46 $ (13,154) ā The following amounts were reclassified out of AOCI: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended June 30, ā Six Months Ended June 30, Line Item in the Details About AOCI Components 2020 2019 2020 2019 Statement of Operations ā ā (In thousands) ā ā ā Coal hedges ā $ 196 ā $ 1,743 ā $ 196 ā $ 2,104 ā Revenues Interest rate hedges ā (648) ā 514 ā (864) ā 1,029 ā Interest expense ā ā ā ā ā ā ā ā ā ā Provision for (benefit from) income taxes ā ā $ (452) ā $ 2,257 ā $ (668) ā $ 3,133 ā Net of tax ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Pension, postretirement and other post-employment benefits ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Amortization of actuarial gains (losses), net ā $ 232 ā $ ā ā $ 466 ā $ ā ā Non-service related pension and postretirement benefit (costs) credits Amortization of prior service credits ā ā 27 ā ā ā ā ā 54 ā ā ā ā ā Non-service related pension and postretirement benefit (costs) credits Pension settlement ā ā 134 ā 429 ā ā 130 ā 429 ā Non-service related pension and postretirement benefit (costs) credits ā ā ā ā ā ā ā ā ā ā Provision for (benefit from) income taxes ā ā $ 393 ā $ 429 ā $ 650 ā $ 429 ā Net of tax ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Available-for-sale securities ā $ 141 ā $ 15 ā $ 140 ā $ 15 ā Interest and investment income ā ā ā ā ā ā ā ā ā ā Provision for (benefit from) income taxes ā ā $ 141 ā $ 15 ā $ 140 ā $ 15 ā Net of tax ā |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2020 | |
Inventories | |
Inventories | 8. Inventories consist of the following: ā ā ā ā ā ā ā ā ā June 30, December 31, ā 2020 2019 ā ā (In thousands) Coal ā $ 67,702 ā $ 46,815 Repair parts and supplies ā 86,988 ā 84,083 ā ā $ 154,690 ā $ 130,898 ā The repair parts and supplies are stated net of an allowance for slow-moving and obsolete inventories of $2.4 million at June 30, 2020 and $2.2 million at December 31, 2019. |
Investments in Available-for-Sa
Investments in Available-for-Sale Securities | 6 Months Ended |
Jun. 30, 2020 | |
Investments in Available-for-Sale Securities | |
Investments in Available-for-Sale Securities | 9. The Company has invested in marketable debt securities, primarily highly liquid U.S. Treasury securities and investment grade corporate bonds. These investments are held in the custody of a major financial institution. These securities are classified as available-for-sale securities and, accordingly, the unrealized gains and losses are recorded through other comprehensive income. The Companyās investments in available-for-sale marketable securities are as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā June 30, 2020 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Gross ā ā Allowance ā ā ā ā ā ā ā ā Unrealized ā ā for Credit ā Fair ā Cost Basis Gains Losses ā ā Losses Value ā ā (In thousands) Available-for-sale: ā ā ā ā ā ā ā U.S. government and agency securities ā $ 14,030 ā $ 24 ā $ ā ā $ ā ā $ 14,054 Corporate notes and bonds ā 53,161 ā 166 ā (144) ā ā ā 53,183 Total Investments ā $ 67,191 ā $ 190 ā $ (144) ā $ ā ā $ 67,237 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2019 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Gross ā ā Allowance ā ā ā ā ā ā ā ā Unrealized ā ā for Credit ā Fair ā Cost Basis Gains ā Losses ā ā Losses Value ā (In thousands) Available-for-sale: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā U.S. government and agency securities ā $ 35,044 ā $ 1 ā $ (16) ā $ ā ā $ 35,029 Corporate notes and bonds ā 100,643 ā 200 ā (205) ā ā ā 100,638 Total Investments ā $ 135,687 ā $ 201 ā $ (221) ā $ ā ā $ 135,667 ā The aggregate fair value of investments with unrealized losses that were owned for less than a year was $12.5 million and $72.3 million at June 30, 2020 and December 31, 2019, respectively. The aggregate fair value of investments with unrealized losses that were owned for over a year was $5.1 million and $0.0 million at June 30, 2020 and December 31, 2019, respectively. The unrealized losses in the Companyās portfolio at June 30, 2020 are the result of normal market fluctuations. The Company does not currently intend to sell these investments before recovery of their amortized cost base. The debt securities outstanding at June 30, 2020 have maturity dates ranging from the third quarter of 2020 through the third quarter of 2021. The Company classifies its investments as current based on the nature of the investments and their availability to provide cash for use in current operations. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2020 | |
Derivatives | |
Derivatives | 10. Interest rate risk management The Company has entered into interest rate swaps to reduce the variability of cash outflows associated with interest payments on its variable rate term loan. These swaps have been designated as cash flow hedges. For additional information on these arrangements, see Note 12, āDebt and Financing Arrangements,ā in the Condensed Consolidated Financial Statements. Diesel fuel price risk management The Company is exposed to price risk with respect to diesel fuel purchased for use in its operations. The Company anticipates purchasing approximately 30 to 35 million gallons of diesel fuel for use in its operations annually. To protect the Companyās cash flows from increases in the price of diesel fuel for its operations, the Company uses forward physical diesel purchase contracts, purchased heating oil call options and New York Mercantile Exchange (āNYMEXā) gulf coast diesel swaps and options. At June 30, 2020, the Company had protected the price on the majority of its expected diesel fuel purchases for the remainder of 2020 with approximately 6 million gallons of heating oil call options with an average strike price of $1.74 per gallon and 4 million gallons of NYMEX gulf coast diesel swaps at an average price of approximately $1.03 per gallon. These positions are not designated as hedges for accounting purposes, and therefore, changes in the fair value are recorded immediately to earnings. Coal price risk management positions The Company may sell or purchase forward contracts, swaps 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, index-priced 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 June 30, 2020, the Company held derivatives for risk management purposes that are expected to settle in the following years: ā ā ā ā ā ā ā ā (Tons in thousands) 2020 2021 Total Coal sales 542 ā 542 Coal purchases 377 ā 377 ā The Company has also entered into a minimal quantity of natural gas put options to protect the Company from decreases in natural gas prices, which could impact thermal coal demand. These options are not designated as hedges. Coal trading positions The Company may sell or purchase forward contracts, swaps and options in the over-the-counter coal market for trading purposes. The Company is exposed to the risk of changes in coal prices on the value of its coal trading portfolio. The estimated future realization of the value of the trading portfolio is $0.3 million of losses during the remainder of 2020 and $0.3 million of gains during 2021. Tabular derivatives disclosures The Company has master netting agreements with all of its counterparties which allow for the settlement of contracts in an asset position with contracts in a liability position in the event of default or termination. Such netting arrangements reduce the Companyās credit exposure related to these counterparties. For classification purposes, the Company records the net fair value of all the positions with a given counterparty as a net asset or liability in the Condensed Consolidated Balance Sheets. The amounts shown in the table below represent the fair value position of individual contracts, and not the net position presented in the accompanying Condensed Consolidated Balance Sheets. The fair value and location of derivatives reflected in the accompanying Condensed Consolidated Balance Sheets are as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā June 30, 2020 ā ā ā December 31, 2019 ā ā Fair Value of Derivatives Asset ā Liability ā ā ā ā Asset ā Liability ā ā (In thousands) ā Derivative ā Derivative ā ā ā ā Derivative ā Derivative ā ā ā Derivatives Designated as Hedging Instruments ā ā ā ā ā ā Coal ā $ 1,047 ā $ (851) ā ā $ 1,351 ā $ (962) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Derivatives Not Designated as Hedging Instruments ā ā ā ā ā ā Heating oil -- diesel purchases ā 528 ā ā ā ā 133 ā (112) ā Coal -- held for trading purposes ā 12,910 ā (12,870) ā ā 18,467 ā (18,940) ā Coal -- risk management ā 11,554 ā (6,659) ā ā 11,662 ā (5,856) ā Natural gas ā ā ā ā ā ā 3 ā ā ā Total ā $ 24,992 ā $ (19,529) ā ā $ 30,265 ā $ (24,908) ā Total derivatives ā $ 26,039 ā $ (20,380) ā ā $ 31,616 ā $ (25,870) ā Effect of counterparty netting ā (20,380) ā 20,380 ā ā (25,759) ā 25,759 ā Net derivatives as classified in the balance sheets ā $ 5,659 ā $ ā ā $ 5,659 ā $ 5,857 ā $ (111) ā $ 5,746 ā ā ā ā ā ā ā ā ā ā ā June 30, December 31, ā ā ā ā 2020 ā 2019 Net derivatives as reflected on the balance sheets (in thousands) ā ā Heating oil and coal Other current assets ā $ 5,659 ā $ 5,857 Coal Accrued expenses and other current liabilities ā ā ā (111) ā ā ā ā $ 5,659 ā $ 5,746 ā The Company had a current liability representing cash collateral owed to a margin account for derivative positions primarily related to coal derivatives of $3.9 million and $4.4 million at June 30, 2020 and December 31, 2019, respectively. These amounts are not included with the derivatives presented in the table above and are included in āaccrued expenses and other current liabilitiesā in the accompanying Condensed Consolidated Balance Sheets. The effects of derivatives on measures of financial performance are as follows: Derivatives used in Cash Flow Hedging Relationships (in thousands) Three Months Ended June 30, ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Gain (Loss) Recognized in Other Comprehensive Income ā Gains (Losses) Reclassified from Other Comprehensive Income into Income ā ā 2020 ā 2019 ā 2020 ā 2019 Coal sales (1) $ 440 ā $ 4,010 ā $ (902) ā $ 1,743 Coal purchases (2) (439) ā (340) ā 706 ā ā Totals ā $ 1 ā $ 3,670 ā $ (196) ā $ 1,743 ā Derivatives Not Designated as Hedging Instruments (in thousands) Three Months Ended June 30, ā ā ā ā ā ā ā ā ā Gain (Loss) Recognized ā ā ā 2020 ā ā 2019 Coal trading ā realized and unrealized (3) $ ā ā $ (718) Coal risk management ā unrealized (3) ā 129 ā 9,137 Natural gas tradingā realized and unrealized (3) ā ā ā (19) Change in fair value of coal derivatives and coal trading activities, net total $ 129 ā $ 8,400 ā ā ā ā ā ā ā Coal risk managementā realized (4) $ 2,756 ā $ (881) Heating oil ā diesel purchases (4) $ 328 ā $ (1,369) Location in statement of operations: (1) ā Revenues (2) ā Cost of sales (3) ā Change in fair value of coal derivatives and coal trading activities, net (4) ā Other operating (income) expense, net ā Derivatives used in Cash Flow Hedging Relationships (in thousands) Six Months Ended June 30, ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Gain (Loss) Recognized in Other Comprehensive Income ā Gains (Losses) Reclassified from Other Comprehensive Income into Income ā ā 2020 ā 2019 ā 2020 ā 2019 Coal sales (1) $ 599 ā $ 9,247 ā $ (902) ā $ 2,787 Coal purchases (2) (595) ā (906) ā 706 ā (686) Totals ā $ 4 ā $ 8,341 ā $ (196) ā $ 2,101 ā Derivatives Not Designated as Hedging Instruments (in thousands) Six Months Ended June 30, Six Months Ended June 30,Six Months Ended June 30,Six Months Ended June 30, ā ā ā ā ā ā ā ā Gain (Loss) Recognized ā 2020 2019 Coal tradingā realized and unrealized (3) $ 221 ā $ (1,101) Coal risk managementā unrealized (3) (911) ā 22,562 Natural gas trading ā realized and unrealized (3) 76 ā (80) Change in fair value of coal derivatives and coal trading activities, net total ā $ (614) ā $ 21,381 ā ā ā ā ā ā ā Coal risk management ā realized (4) $ 4,357 ā $ (5,292) Heating oil ā diesel purchases (4) $ (705) ā $ (732) ā Location in statement of operations: (1) ā Revenues (2) ā Cost of sales (3) ā Change in fair value of coal derivatives and coal trading activities, net (4) ā Other operating (income) expense, net No ineffectiveness or amounts excluded from effectiveness testing relating to the Companyās cash flow hedging relationships were recognized in the results of operations in the three and six month periods ended June 30, 2020 and 2019 Based on fair values at June 30, 2020, amounts on derivative contracts designated as hedge instruments in cash flow hedges to be reclassified from other comprehensive income into earnings during the next twelve months are gains of approximately $0.2 million. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 6 Months Ended |
Jun. 30, 2020 | |
Accrued Expenses and Other Current Liabilities | |
Accrued Expenses and Other Current Liabilities | 11. Accrued expenses and other current liabilities consist of the following: ā ā ā ā ā ā ā ā ā June 30, December 31, ā ā 2020 ā 2019 ā ā (In thousands) Payroll and employee benefits ā $ 46,640 ā $ 50,929 Taxes other than income taxes ā 60,465 ā 69,061 Interest ā 121 ā 133 Workersā compensation ā 15,004 ā 16,119 Asset retirement obligations ā 9,827 ā 10,366 Other ā 11,247 ā 10,559 ā ā $ 143,304 ā $ 157,167 ā |
Debt and Financing Arrangements
Debt and Financing Arrangements | 6 Months Ended |
Jun. 30, 2020 | |
Debt and Financing Arrangements | |
Debt and Financing Arrangements | 12. ā ā ā ā ā ā ā ā ā June 30, December 31, ā ā 2020 ā 2019 ā (In thousands) Term loan due 2024 ($290.3 million face value) ā $ 289,427 ā $ 290,825 Other ā 65,085 ā 25,007 Debt issuance costs ā (4,956) ā (5,013) ā ā ā 349,556 ā ā 310,819 Less: current maturities of debt ā 25,702 ā 20,753 Long-term debt ā $ 323,854 ā $ 290,066 ā Term Loan Facility In 2017, the Company entered into a senior secured term loan credit agreement (the āCredit Agreementā) in an aggregate principal amount of $300 million (the āTerm Loan Debt Facilityā) with Credit Suisse AG, Cayman Islands Branch, as administrative agent and collateral agent, and the other financial institutions from time to time party thereto (collectively, the āLendersā). The Term Loan Debt Facility was issued at 99.50% of the face amount and will mature on March 7, 2024. The term loans provided under the Term Loan Debt Facility (the āTerm Loansā) are subject to quarterly principal amortization payments in an amount equal to $750,000. During 2018, the Company entered into the Second Amendment (the āSecond Amendmentā) to its Credit Agreement. The Second Amendment reduced the interest rate on its Term Loan Debt Facility to, at the option of Arch Resources, either (i) the London interbank offered rate (āLIBORā) plus an applicable margin of 2.75%, subject to a 1.00% LIBOR floor, or (ii) a base rate plus an applicable margin of 1.75%. The LIBOR floor remains at 1.00%. There is no change to the maturities as a result of the Second Amendment. The Term Loan Debt Facility is guaranteed by all existing and future wholly owned domestic subsidiaries of the Company (collectively, the āSubsidiary Guarantorsā and, together with Arch Resources, the āLoan Partiesā), subject to customary exceptions, and is secured by first priority security interests on substantially all assets of the Loan Parties, including 100% of the voting equity interests of directly owned domestic subsidiaries and 65% of the voting equity interests of directly owned foreign subsidiaries, subject to customary exceptions. The Company has the right to prepay Term Loans at any time, and from time to time, in whole or in part without premium or penalty, upon written notice, except that any prepayment of Term Loans that bear interest at the LIBOR Rate other than at the end of the applicable interest periods therefore shall be made with reimbursement for any funding losses and redeployment costs of the Lenders resulting therefrom. The Term Loan Debt Facility is subject to certain usual and customary mandatory prepayment events, including 100% of net cash proceeds of (i) debt issuances (other than debt permitted to be incurred under the terms of the Term Loan Debt Facility) and (ii) non-ordinary course asset sales or dispositions, subject to customary thresholds, exceptions and reinvestment rights. The Term Loan Debt Facility contains customary affirmative covenants and representations. The Term Loan Debt Facility also contains customary negative covenants, which, among other things, and subject to certain exceptions, include restrictions on (i) indebtedness, (ii) liens, (iii) liquidations, mergers, consolidations and acquisitions, (iv) disposition of assets or subsidiaries, (v) affiliate transactions, (vi) creation or ownership of certain subsidiaries, partnerships and joint ventures, (vii) continuation of or change in business, (viii) restricted payments, (ix) prepayment of subordinated and junior lien indebtedness, (x) restrictions in agreements on dividends, intercompany loans and granting liens on the collateral, (xi) loans and investments, (xii) sale and leaseback transactions, (xiii) changes in organizational documents and fiscal year and (xiv) transactions with respect to bonding subsidiaries. The Term Loan Debt Facility does not contain any financial maintenance covenants. The Term Loan Debt Facility contains customary events of default, subject to customary thresholds and exceptions, including, among other things, (i) nonpayment of principal and nonpayment of interest and fees, (ii) a material inaccuracy of a representation or warranty at the time made, (iii) a failure to comply with any covenant, subject to customary grace periods in the case of certain affirmative covenants, (iv) cross-events of default to indebtedness of at least $50 million, (v) cross-events of default to surety, reclamation or similar bonds securing obligations with an aggregate face amount of at least $50 million, (vi) uninsured judgments in excess of $50 million, (vii) any loan document shall cease to be a legal, valid and binding agreement, (viii) uninsured losses or proceedings against assets with a value in excess of $50 million, (ix) certain ERISA events, (x) a change of control or (xi) bankruptcy or insolvency proceedings relating to the Company or any material subsidiary of the Company. Accounts Receivable Securitization Facility In 2018, the Company extended and amended its existing trade accounts receivable securitization facility provided to Arch Receivable Company, LLC, a special-purpose entity that is a wholly owned subsidiary of Arch Resources (āArch Receivableā) (the āExtended Securitization Facilityā), which supports the issuance of letters of credit and requests for cash advances. The amendment to the Extended Securitization Facility maintained the $160 million borrowing capacity and extended the maturity date to August 27, 2021. Additionally, the amendment provided the Company the opportunity to use credit insurance to increase the pool of eligible receivables for borrowing. Pursuant to the Extended Securitization Facility, Arch Receivable also agreed to a revised schedule of fees payable to the administrator and the providers of the Extended Securitization Facility. The Extended Securitization Facility will terminate at the earliest of (i) August 27, 2021, (ii) if the Liquidity (defined in the Extended Securitization Facility and consistent with the definition in the Inventory Facility) is less than $175 million for a period of 60 consecutive days, the date that is the 364th day after the first day of such 60 consecutive day period, and (iii) the occurrence of certain predefined events substantially consistent with the existing transaction documents. Under the Extended Securitization Facility, Arch Receivable, Arch Resources and certain of Arch Resourcesās subsidiaries party to the Extended Securitization Facility have granted to the administrator of the Extended Securitization Facility a first priority security interest in eligible trade accounts receivable generated by such parties from the sale of coal and all proceeds thereof. As of June 30, 2020, letters of credit totaling $15.0 million were outstanding under the facility with $68.2 million available for borrowings. Inventory-Based Revolving Credit Facility In 2017, the Company and certain of its subsidiaries entered into a senior secured inventory-based revolving credit facility in an aggregate principal amount of $40 million (the āInventory Facilityā) with Regions Bank (āRegionsā) as administrative agent and collateral agent, as lender and swingline lender (in such capacities, the āLenderā) and as letter of credit issuer. Availability under the Inventory Facility is subject to a borrowing base consisting of (i) 85% of the net orderly liquidation value of eligible coal inventory, (ii) the lesser of (x) 85% of the net orderly liquidation value of eligible parts and supplies inventory and (y) 35% of the amount determined pursuant to clause (i), and (iii) 100% of Arch Resourcesās Eligible Cash (defined in the Inventory Facility), subject to reduction for reserves imposed by Regions. In 2018, the Company and certain subsidiaries of Arch Resources amended and extended the Inventory Facility by increasing the facility size by $10 million, bringing the total aggregate amount available to $50 million, subject to borrowing base calculations described above. The commitments under the Inventory Facility will terminate on the date that is the earliest to occur of (i) the date, if any, that is 364 days following the first day that Liquidity (defined in the Inventory Facility and consistent with the definition in the Extended Securitization Facility (as defined below)) is less than $250 million for a period of 60 consecutive days and (ii) the date, if any, that is 60 days following the maturity, termination or repayment in full of the Extended Securitization Facility. Revolving loan borrowings under the Inventory Facility bear interest at a per annum rate equal to, at the option of Arch Resources, either the base rate or the London interbank offered rate plus, in each case, a margin ranging from 2.00% to 2.50% (in the case of LIBOR loans) and 1.00% to 1.50% (in the case of base rate loans) determined using a Liquidity-based grid. Letters of credit under the Inventory Facility are subject to a fee in an amount equal to the applicable margin for LIBOR loans, plus customary fronting and issuance fees. All existing and future direct and indirect domestic subsidiaries of Arch Resources, subject to customary exceptions, will either constitute co-borrowers under or guarantors of the Inventory Facility (collectively with Arch Resources, the āLoan Partiesā). The Inventory Facility is secured by first priority security interests in the ABL Priority Collateral (defined in the Inventory Facility) of the Loan Parties and second priority security interests in substantially all other assets of the Loan Parties, subject to customary exceptions (including an exception for the collateral that secures the Extended Securitization Facility). Arch Resources has the right to prepay borrowings under the Inventory Facility at any time and from time to time in whole or in part without premium or penalty, upon written notice, except that any prepayment of such borrowings that bear interest at the LIBOR rate other than at the end of the applicable interest periods therefore shall be made with reimbursement for any funding losses and redeployment costs of the Lender resulting therefrom. The Inventory Facility is subject to certain usual and customary mandatory prepayment events, including non-ordinary course asset sales or dispositions, subject to customary thresholds, exceptions (including exceptions for required prepayments under Arch Resourcesās term loan facility) and reinvestment rights. The Inventory Facility contains certain customary affirmative and negative covenants; events of default, subject to customary thresholds and exceptions; and representations, including certain cash management and reporting requirements that are customary for asset-based credit facilities. The Inventory Facility also includes a requirement to maintain Liquidity equal to or exceeding $175 million at all times. As of June 30, 2020, letters of credit totaling $32.4 million were outstanding under the facility with $17.6 million available for borrowings. Equipment Financing On March 4, 2020, the Company entered into an equipment financing arrangement accounted for as debt. The Company received $53.6 million in exchange for conveying an interest in certain equipment in operation at its Leer Mine and entered into a master lease arrangement for that equipment. The financing arrangement contains customary terms and events of default and provides for 48 monthly payments with an average interest rate of 6.34 % maturing on March 4, 2024. Upon maturity, all interests in the subject equipment will revert back to the Company. Interest Rate Swaps The Company has entered into a series of interest rate swaps to fix a portion of the LIBOR interest rate within the term loan. The interest rate swaps qualify for cash flow hedge accounting treatment and as such, the change in the fair value of the interest rate swaps is recorded on the Companyās Condensed Consolidated Balance Sheet as an asset or liability with the effective portion of the gains or losses reported as a component of accumulated other comprehensive income and the ineffective portion reported in earnings. As interest payments are made on the term loan, amounts in accumulated other comprehensive income will be reclassified into earnings through interest expense to reflect a net interest on the term loan equal to the effective yield of the fixed rate of the swap plus 2.75% which is the spread on the revised LIBOR term loan. In the event that an interest rate swap is terminated prior to maturity, gains or losses in accumulated other comprehensive income will remain deferred and be reclassified into earnings in the periods which the hedged forecasted transaction affects earnings. Below is a summary of the Companyās outstanding interest rate swap agreements designated as hedges as of June 30, 2020: ā ā ā ā ā ā ā ā ā ā Notional Amount ā ā ā ā ā ā ā ā (in millions) Effective Date Fixed Rate Receive Rate Expiration Date ā ā ā ā ā ā ā ā ā ā $ 200.0 ā June 30, 2020 2.249 % 1-month LIBOR ā June 30, 2021 $ 100.0 ā June 30, 2021 2.315 % 1-month LIBOR ā June 30, 2023 ā The fair value of the interest rate swaps at June 30, 2020 is a liability of $5.1 million, which is recorded within Other noncurrent liabilities, with the offset to accumulated other comprehensive income on the Companyās Condensed Consolidated Balance Sheet. The Company realized $0.6 million and $0.9 million of losses during the three and six months ended June 30, 2020, respectively, related to settlements of the interest rate swaps which was recorded to interest expense on the Companyās Condensed Consolidated Statement of Operations. The interest rate swaps are classified as level 2 within the fair value hierarchy. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Taxes | |
Income Taxes | 13. A reconciliation of the federal income tax provision at the statutory rate to the actual provision for (benefit from) income taxes follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended June 30, ā Six Months Ended June 30, ā ā 2020 2019 2020 2019 ā ā (In thousands) ā Income tax provision at statutory rate ā $ (10,105) ā $ 13,216 ā $ (15,794) ā $ 28,506 ā Percentage depletion allowance ā (11,768) ā (3,457) ā (5,600) ā (7,764) ā State taxes, net of effect of federal taxes ā (1,584) ā 831 ā (1,502) ā 1,843 ā Change in valuation allowance ā 19,531 ā (11,292) ā 20,381 ā (23,805) ā Current expense associated with uncertain tax positions ā ā 5,132 ā ā 844 ā ā 3,101 ā ā 1,437 ā AMT sequestration refund ā ā ā ā ā (1,171) ā ā ā Other, net ā ā ā (51) ā ā ā (56) ā Provision for (benefit from) income taxes ā $ 1,206 ā $ 91 ā $ (585) ā $ 161 ā ā During the quarter ended June 30, 2020, the Company received a $37.4 million refund from the Internal Revenue Service consisting of all the remaining refundable alternative minimum tax (AMT) credits and related interest. A FIN48 reserve has been established for ā |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures Measurements | |
Fair Value Measurements | 14. The hierarchy of fair value measurements assigns a level to fair value measurements based on the inputs used in the respective valuation techniques. The levels of the hierarchy, as defined below, give the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. ā Level 1 is defined as observable inputs such as quoted prices in active markets for identical assets. Level 1 assets include U.S. Treasury securities, and coal swaps and futures that are submitted for clearing on the New York Mercantile Exchange. ā Level 2 is defined as observable inputs other than Level 1 prices. These include quoted prices for similar assets or liabilities in an active market, quoted prices for identical assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. The Companyās level 2 assets and liabilities include U.S. government agency securities, coal commodity contracts and interest rate swaps with fair values derived from quoted prices in over-the-counter markets or from prices received from direct broker quotes. ā Level 3 is defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. These include the Companyās commodity option contracts (coal, natural gas and heating oil) valued using modeling techniques, such as Black-Scholes, that require the use of inputs, particularly volatility, that are rarely observable. Changes in the unobservable inputs would not have a significant impact on the reported Level 3 fair values at June 30, 2020. The table below sets forth, by level, the Companyās financial assets and liabilities that are recorded at fair value in the accompanying Condensed Consolidated Balance Sheet: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā June 30, 2020 ā Total Level 1 Level 2 Level 3 ā ā (In thousands) Assets: ā ā ā ā Investments in marketable securities ā $ 67,237 ā $ 14,054 ā $ 53,183 ā $ ā Derivatives ā 5,659 ā 5,131 ā 495 ā 33 Total assets ā $ 72,896 ā $ 19,185 ā $ 53,678 ā $ 33 Liabilities: ā ā ā ā ā ā ā ā Derivatives ā $ 5,066 ā $ ā ā $ 5,066 ā $ ā ā The Companyās contracts with its counterparties allow for the settlement of contracts in an asset position with contracts in a liability position in the event of default or termination. For classification purposes, the Company records the net fair value of all the positions with these counterparties as a net asset or liability. Each level in the table above displays the underlying contracts according to their classification in the accompanying Condensed Consolidated Balance Sheet, based on this counterparty netting. The following table summarizes the change in the fair values of financial instruments categorized as Level 3. ā ā ā ā ā ā ā ā Three Months Ended Six Months Ended ā ā June 30, 2020 ā June 30, 2020 ā ā (In thousands) Balance, beginning of period $ 89 $ 61 Realized and unrealized losses recognized in earnings, net ā (56) ā (1,125) Purchases ā ā ā 1,235 Issuances ā ā ā (138) Settlements ā ā ā ā Ending balance ā $ 33 ā $ 33 ā Net unrealized losses of $0.1 million and $0.6 million were recognized in the Condensed Consolidated Statement of Operations within Other operating income, net during the three and six months ended June 30, 2020, respectively, related to Level 3 financial instruments held on June 30, 2020. Fair Value of Long-Term Debt At June 30, 2020 and December 31, 2019, the fair value of the Companyās debt, including amounts classified as current, was $308.9 million and $308.0 million, respectively. Fair values are based upon observed prices in an active market, when available, or from valuation models using market information, which fall into Level 2 in the fair value hierarchy. |
Earnings per Common Share
Earnings per Common Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Common Share | |
Earnings per Common Share | 15. The Company computes basic net income (loss) per share using the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed using the weighted average number of common shares and the effect of potentially dilutive securities outstanding during the period. Potentially dilutive securities may consist of warrants, restricted stock units or other contingently issuable shares. The dilutive effect of outstanding warrants, restricted stock units and other contingently issuable shares is reflected in diluted earnings per share by application of the treasury stock method. The weighted average share impact of warrants and restricted stock units that were excluded from the calculation of diluted shares due to the Company incurring a net loss for the three and six month periods ending June 30, 2020 were The following table provides the basis for basic and diluted earnings per share by reconciling the denominators of the computations: ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended June 30, ā Six Months Ended June 30, ā ā 2020 2019 2020 2019 ā (In Thousands) ā ā ā Weighted average shares outstanding: Basic weighted average shares outstanding 15,145 16,543 15,142 17,018 Effect of dilutive securities ā 1,238 ā 1,172 Diluted weighted average shares outstanding 15,145 17,781 15,142 18,190 ā |
Workers Compensation Expense
Workers Compensation Expense | 6 Months Ended |
Jun. 30, 2020 | |
Workers Compensation Expense | |
Workers Compensation Expense | 16. The Company is liable under the Federal Mine Safety and Health Act of 1969, as subsequently amended, to provide for pneumoconiosis (occupational disease) benefits to eligible employees, former employees and dependents. The Company currently provides for federal claims principally through a self-insurance program. The Company is also liable under various state workersā compensation statutes for occupational disease benefits. The occupational disease benefit obligation represents the present value of the actuarially computed present and future liabilities for such benefits over the employeesā applicable years of service. In October 2019, the Company filed an application with the Office of Workersā Compensation Programs (āOWCPā) within the Department of Labor for reauthorization to self-insure federal black lung benefits. In February 2020, the Company received a reply from the OWCP confirming Archās status to remain self-insured contingent upon posting additional collateral of of receipt of the letter. The Company is currently appealing the ruling from the OWCP and has received an extension to self-insure during the appeal process. The Company is evaluating alternatives to self-insurance, including the purchase of commercial insurance to cover these claims. In addition, the Company is liable for workersā compensation benefits for traumatic injuries which are calculated using actuarially-based loss rates, loss development factors and discounted based on a risk free rate. Traumatic workersā compensation claims are insured with varying retentions/deductibles, or through state-sponsored workersā compensation programs. Workersā compensation expense consists of the following components: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended June 30, ā Six Months Ended June 30, ā ā 2020 2019 2020 2019 ā ā ā (In thousands) ā Self-insured occupational disease benefits: ā ā ā ā Service cost ā $ 1,891 ā $ 1,669 ā $ 3,782 ā $ 3,338 ā Interest cost (1) ā 1,399 ā 1,354 ā 2,798 ā 2,708 ā Net amortization (1) ā 298 ā ā ā 595 ā ā ā Total occupational disease ā $ 3,588 ā $ 3,023 ā $ 7,175 ā $ 6,046 ā Traumatic injury claims and assessments ā 2,100 ā 2,410 ā 4,282 ā 4,554 ā Total workersā compensation expense ā $ 5,688 ā $ 5,433 ā $ 11,457 ā $ 10,600 ā (1) In accordance with the adoption of ASU 2017-07, āCompensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,ā these costs are recorded within Nonoperating expenses in the Condensed Consolidated Statement of Operations on the line item āNon-service related pension and postretirement benefit costs.ā ā |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2020 | |
Employee Benefit Plans | |
Employee Benefit Plans | 17. Employee Benefit Plans The following table details the components of pension benefit costs (credits): ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended June 30, ā Six Months Ended June 30, ā 2020 2019 2020 2019 ā ā (In thousands) Interest cost (1) ā $ 1,483 ā $ 2,259 ā $ 3,087 ā $ 4,517 Expected return on plan assets (1) ā (2,023) ā (2,724) ā (4,311) ā (5,447) Pension settlement (1) ā ā (134) ā ā (429) ā ā (130) ā ā (429) Amortization of prior service costs (credits) (1) ā (27) ā ā ā (54) ā ā Net benefit credit ā $ (701) ā $ (894) ā $ (1,408) ā $ (1,359) ā The following table details the components of other postretirement benefit costs: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended June 30, ā Six Months Ended June 30, ā 2020 2019 2020 2019 ā ā (In thousands) Service cost ā $ 106 ā $ 120 ā $ 212 ā $ 240 Interest cost (1) ā 653 ā 877 ā 1,306 ā 1,753 Amortization of other actuarial losses (gains) (1) ā (529) ā ā ā (1,059) ā ā Net benefit cost (credit) ā $ 230 ā $ 997 ā $ 459 ā $ 1,993 (1) In accordance with the adoption of ASU 2017-07, āCompensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,ā these costs are recorded within Nonoperating expenses in the Condensed Consolidated Statement of Operations on the line item āNon-service related pension and postretirement benefit costs.ā (1) |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | 18. Commitments and Contingencies The Company accrues for costs related to contingencies when a loss is probable and the amount is reasonably determinable. Disclosure of contingencies is included in the financial statements when it is at least reasonably possible that a material loss or an additional material loss in excess of amounts already accrued may be incurred. In addition, the Company is a party to numerous other claims and lawsuits with respect to various matters. The ultimate resolution of any such legal matter could result in outcomes that may be materially different from amounts the Company has accrued for such matters. The Company believes it has recorded adequate reserves for these matters. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2020 | |
Segment Information | |
Segment Information | 19. The Companyās reportable business segments are based on two distinct lines of business, metallurgical and thermal, and may include a number of mine complexes. The Company manages its coal sales by market, not by individual mining complex. Geology, coal transportation routes to customers, and regulatory environments also have a significant impact on the Companyās marketing and operations management. Mining operations are evaluated based on Adjusted EBITDA, per-ton cash operating costs (defined as including all mining costs except depreciation, depletion, amortization, accretion on asset retirement obligations, and pass-through transportation expenses), and on other non-financial measures, such as safety and environmental performance. Adjusted EBITDA is not a measure of financial performance in accordance with generally accepted accounting principles, and items excluded from Adjusted EBITDA are significant in understanding and assessing the Companyās financial condition. Therefore, Adjusted EBITDA should not be considered in isolation, nor as an alternative to net income (loss), income (loss) from operations, cash flows from operations or as a measure of our profitability, liquidity or performance under generally accepted accounting principles. The Company uses Adjusted EBITDA to measure the operating performance of its segments and allocate resources to the segments. Furthermore, analogous measures are used by industry analysts and investors to evaluate the Companyās operating performance. Investors should be aware that the Companyās presentation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies. The Company reports its results of operations primarily through the following reportable segments: Powder River Basin (PRB) segment containing the Companyās primary thermal operations in Wyoming; the Metallurgical (MET) segment, containing the Companyās metallurgical operations in West Virginia, and the Other Thermal segment containing the Companyās supplementary thermal operations in Colorado and Illinois. On December 13, 2019, the Company closed on its definitive agreement to sell Coal-Mac LLC, an operating mine complex within the Companyās Other Thermal coal segment. Coal-Mac is included in the Other Thermal segment results below up to the date of the divestiture. ā Operating segment results for the three and six months ended June 30, 2020 and 2019, are presented below. The Corporate, Other and Eliminations grouping includes these charges, as well as the change in fair value of coal derivatives and coal trading activities, net; corporate overhead; land management activities; other support functions; and the elimination of intercompany transactions. ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Corporate, ā ā ā ā ā ā ā ā ā ā Other ā Other and ā ā ā (In thousands) ā PRB ā MET ā Thermal ā Eliminations ā Consolidated Three Months Ended June 30, 2020 ā ā ā ā ā Revenues ā $ 133,096 ā $ 138,951 ā $ 41,297 $ 6,177 ā $ 319,521 Adjusted EBITDA ā (5,362) ā 20,910 ā (4,752) ā (21,528) ā (10,732) Depreciation, depletion and amortization ā 5,283 ā 22,289 ā 2,333 ā 262 ā 30,167 Accretion on asset retirement obligation ā 3,495 ā 486 ā 347 ā 658 ā 4,986 Total assets ā 247,990 ā 740,451 ā 108,238 ā 705,710 ā 1,802,389 Capital expenditures ā 1,145 ā 57,514 ā 955 ā 1,258 ā 60,872 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended June 30, 2019 ā ā ā ā ā ā ā ā ā ā Revenues ā $ 210,149 ā $ 261,245 ā $ 98,205 ā $ 623 ā $ 570,222 Adjusted EBITDA ā 14,696 ā 101,936 ā 10,922 ā (21,990) ā 105,564 Depreciation, depletion and amortization ā 4,880 ā 17,343 ā 3,689 ā 623 ā 26,535 Accretion on asset retirement obligation ā 3,135 ā 531 ā 603 ā 868 ā 5,137 Total assets ā 236,527 ā 605,657 ā 136,899 ā 910,447 ā 1,889,530 Capital expenditures ā 13,209 ā 31,150 ā 3,211 ā 1,138 ā 48,708 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Six Months Ended June 30, 2020 ā ā ā ā ā ā ā ā ā ā Revenues ā $ 311,556 ā $ 321,605 ā $ 73,033 $ 18,559 ā $ 724,753 Adjusted EBITDA ā (5,944) ā 63,630 ā (6,072) ā (49,431) ā 2,183 Depreciation, depletion and amortization ā 10,491 ā 44,807 ā 4,670 ā 1,507 ā 61,475 Accretion on asset retirement obligation ā 6,990 ā 972 ā 695 ā 1,335 ā 9,992 Total assets ā 247,990 ā 740,451 ā 108,238 ā 705,710 ā 1,802,389 Capital expenditures ā 4,242 ā 136,162 ā 4,571 ā 3,586 ā 148,561 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Six Months Ended June 30, 2019 ā ā ā ā ā ā ā ā ā ā Revenues ā $ 422,878 ā $ 514,507 ā $ 184,183 ā $ 3,837 ā $ 1,125,405 Adjusted EBITDA ā 35,279 ā 193,470 ā 17,041 ā (32,972) ā 212,818 Depreciation, depletion and amortization ā 9,745 ā 33,725 ā 7,124 ā 1,279 ā 51,873 Accretion on asset retirement obligation ā 6,271 ā 1,061 ā 1,207 ā 1,735 ā 10,274 Total assets ā 236,527 ā 605,657 ā 136,899 ā 910,447 ā 1,889,530 Capital expenditures ā 13,623 ā 62,374 ā 9,461 ā 2,396 ā 87,854 ā A reconciliation of net income (loss) to adjusted EBITDA follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended June 30, ā Six Months Ended June 30, ā (In thousands) ā 2020 ā 2019 ā 2020 ā 2019 ā Net income (loss) ā $ (49,324) ā $ 62,840 ā $ (74,623) ā $ 135,581 ā Provision for (benefit from) income taxes ā ā 1,206 ā ā 91 ā ā (585) ā ā 161 ā Interest expense, net ā 1,730 ā 2,287 ā 3,859 ā 4,576 ā Depreciation, depletion and amortization ā 30,167 ā 26,535 ā 61,475 ā 51,873 ā Accretion on asset retirement obligations ā 4,986 ā 5,137 ā 9,992 ā 10,274 ā Costs related to proposed joint venture with Peabody Energy ā 7,851 ā 3,018 ā 11,515 ā 3,018 ā Severance costs related to voluntary separation plan ā 7,437 ā ā ā 13,265 ā ā ā Gain on property insurance recovery related to Mountain Laurel longwall ā (14,518) ā ā ā (23,518) ā ā ā (Gain) loss on divestitures ā ā (1,369) ā ā 4,304 ā ā (1,369) ā ā 4,304 ā Non-service related pension and postretirement benefit costs ā 1,102 ā 1,336 ā 2,198 ā 3,102 ā Reorganization items, net ā ā ā 16 ā (26) ā (71) ā Adjusted EBITDA ā $ (10,732) ā $ 105,564 ā $ 2,183 ā $ 212,818 ā ā |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2020 | |
Revenue Recognition | |
Revenue Recognition | 20. ASC 606-10-50-5 requires that entities disclose disaggregated revenue information in categories (such as type of good or service, geography, market, type of contract, etc.) that depict how the nature, amount, timing, and uncertainty of revenue and cash flow are affected by economic factors. ASC 606-10-55-89 explains that the extent to which an entityās revenue is disaggregated depends on the facts and circumstances that pertain to the entityās contracts with customers and that some entities may need to use more than one type of category to meet the objective for disaggregating revenue. In general, the Companyās business segmentation is aligned according to the nature and economic characteristics of its coal and customer relationships and provides meaningful disaggregation of each segmentās results. The Company has further disaggregated revenue between North America and Seaborne revenues which depicts the pricing and contract differences between the two. North America revenue is characterized by contracts that typically have a term of one year or longer and typically the pricing is fixed; whereas Seaborne revenue generally is derived by spot or short term contracts with pricing determined at the time of shipment or based on a market index. ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Corporate, ā ā ā ā ā ā ā ā ā ā Other ā Other and ā ā ā ā ā PRB ā MET ā Thermal ā Eliminations ā Consolidated ā (in thousands) Three Months Ended June 30, 2020 ā ā ā ā ā North America revenues ā $ 133,096 ā $ 40,137 ā $ 31,149 ā $ 6,177 ā $ 210,559 Seaborne revenues ā ā ā 98,814 ā 10,148 ā ā ā 108,962 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Total revenues ā $ 133,096 ā $ 138,951 ā $ 41,297 ā $ 6,177 ā $ 319,521 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended June 30, 2019 ā ā ā ā ā ā ā ā ā ā North America revenues ā $ 210,149 ā $ 54,896 ā $ 47,885 ā $ 623 ā $ 313,553 Seaborne revenues ā ā ā 206,349 ā 50,320 ā ā ā 256,669 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Total revenues ā $ 210,149 ā $ 261,245 ā $ 98,205 ā $ 623 ā $ 570,222 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Six Months Ended June 30, 2020 ā ā ā ā ā ā ā ā ā ā North America revenues ā $ 311,375 ā $ 69,860 ā $ 59,733 ā $ 18,559 ā $ 459,527 Seaborne revenues ā 181 ā 251,745 ā 13,300 ā ā ā 265,226 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Total revenues ā $ 311,556 ā $ 321,605 ā $ 73,033 ā $ 18,559 ā $ 724,753 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Six Months Ended June 30, 2019 ā ā ā ā ā ā ā ā ā ā North America revenues ā $ 422,878 ā $ 99,562 ā $ 94,414 ā $ 3,837 ā $ 620,691 Seaborne revenues ā ā ā 414,945 ā 89,769 ā ā ā 504,714 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Total revenues ā $ 422,878 ā $ 514,507 ā $ 184,183 ā $ 3,837 ā $ 1,125,405 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā As of June 30, 2020, the Company has outstanding performance obligations for the remainder of 2020 of 36.2 million tons of fixed price contracts and 2.5 million tons of variable price contracts. Additionally, the Company has outstanding performance obligations beyond 2020 of approximately 69.0 million tons of fixed price contracts and 4.5 million tons of variable price contracts. ā |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases | |
Leases | 21. The Company has operating and financing leases for mining equipment, office equipment, office space and transloading terminals with remaining lease terms ranging from less than 1 year to approximately 7 years. Some of these leases include both lease and non-lease components which are accounted for as a single lease component as the Company has elected the practical expedient to combine these components for all leases. As most of the leases do not provide an implicit rate, the Company calculated the ROU assets and lease liabilities using its secured incremental borrowing rate at the lease commencement date. Information related to leases was as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Six Months Ended June 30, ā ā ā 2020 ā ā 2019 Operating lease information: ā (In thousands) Operating lease cost ā $ 905 ā ā ā $ 917 ā Operating cash flows from operating leases ā 885 ā ā ā ā 871 ā Weighted average remaining lease term in years ā 5.38 ā ā ā ā 5.06 ā Weighted average discount rate ā 5.5 % ā ā ā 5.6 % ā ā ā ā ā ā ā ā ā ā Financing lease information: ā ā ā ā ā ā ā Financing lease cost ā $ 393 ā ā ā $ ā ā Operating cash flows from financing leases ā 303 ā ā ā ā ā ā Weighted average remaining lease term in years ā 4.75 ā ā ā ā ā ā Weighted average discount rate ā 6.4 % ā ā ā ā % ā Future minimum lease payments under non-cancellable leases as of June 30, 2020 were as follows: ā ā ā ā ā ā ā ā ā Operating ā ā Finance Year ā Leases ā ā Leases ā (In thousands) 2020 ā $ 1,683 ā ā $ 605 2021 ā 3,367 ā ā 1,210 2022 ā 3,317 ā ā 1,210 2023 ā 3,285 ā ā 1,210 2024 ā 3,200 ā ā 1,210 Thereafter ā 7,798 ā ā 2,111 Total minimum lease payments ā $ 22,650 ā ā $ 7,556 Less imputed interest ā (3,742) ā ā (1,273) ā ā ā ā ā ā ā ā Total lease liabilities ā $ 18,908 ā ā $ 6,283 ā ā ā ā ā ā ā ā As reflected on balance sheet: ā ā ā ā ā Accrued expenses and other current liabilities ā $ 2,382 ā ā $ 833 Other noncurrent liabilities ā 16,526 ā ā 5,450 ā ā ā ā ā ā ā ā Total lease liability ā $ 18,908 ā ā $ 6,283 ā At June 30, 2020, the Company had an $18.2 million ROU operating lease asset and a $6.2 million finance lease asset recorded within ā Other noncurrent assets |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events | |
Subsequent Events | 22. On July 2, 2020 the Company issued $53.1 million of bonds in the U.S. tax-exempt market through the West Virginia Economic Development Authority at a fixed interest rate of 5.00%. The bonds are subject to a mandatory tender for purchase by the company on July 1, 2025. In keeping with the requirements of the tax-exempt issuance, proceeds from the offering will be used to fund the construction of the Leer South mineās preparation plant and other facilities associated with waste management. The Company received approximately $30 million of cash upon closing, reflecting the amount of qualified expenditures already completed, and will receive the remainder over the next several quarters as work continues. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Basis of Presentation | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting and U.S. Securities and Exchange Commission regulations. In the opinion of management, all adjustments, consisting of normal, recurring accruals considered necessary for a fair presentation, have been included. Results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of results to be expected for the year ending December 31, 2020. These financial statements should be read in conjunction with the audited financial statements and related notes as of and for the year ended December 31, 2019 included in the Companyās Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission. Effective May 15, 2020, Arch Coal, Inc. announced that its name changed to Arch Resources, Inc. |
Recently Adopted Accounting Guidance | Recently Adopted Accounting Guidance In June 2016, the FASB issued ASU 2016-13, āFinancial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments,ā and also issued subsequent amendments to the initial guidance under ASU 2018-19, ASU 2019-04 and ASU 2019-05. The standard modifies the measurement approach for credit losses on financial instruments, including trade receivables, from an incurred loss method to a current expected credit loss method, otherwise known as āCECL.ā The standard requires the measurement of expected credit losses to be based on relevant information, including historical experience, current conditions and a forecast that is supportable. The Company adopted the standard in the first quarter of 2020, with minimal impact to the Companyās financial results. As part of the adoption, the Company reviewed itsā portfolio of available-for-sale debt securities in an unrealized loss position, and assessed whether it intends to sell, or it is more likely than not that it will be required to sell before recovery of itsā amortized cost basis. The Company determined that is currently does not intend to sell these securities before recovery of their amortized cost basis. Additionally, the Company evaluated whether the decline in fair value has resulted from credit losses or other factors by considering the extent to which the fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the Company compares the present value of the cash flows expected to be collected against the amortized cost basis. A credit loss is recorded if the present value of the cash flows is less than the amortized cost basis, limited by the amount that the fair value is less than the amortized cost basis. Upon adoption, the Company did not record an allowance for credit losses on its available-for-sale debt securities. Additionally, the Company reviewed its open trade receivables arising from contractual coal sales. As part of its analysis, the Company performs periodic credit reviews of all active customers, reviews all trade receivables greater than 90 days past due, calculates historical loss rates and reviews current payment trends of all customers. ā Recent Accounting Guidance Issued Not Yet Effective In December 2019, the FASB issued ASU 2019- 12, āIncome Taxes (Topic 740) Simplifying the Accounting for Income Taxes.ā ASU 2019- 12 eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The ASU is effective for public companies for fiscal years beginning after December 15, 2020, and interim periods therein with early adoption permitted. The Company is reviewing the provisions of the standard but does not expect a significant impact to the Company's financial statements. In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." The amendments provide optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. We are currently evaluating our contracts and the optional expedients provided by the new standard. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) | |
Schedule of Accumulated Other Comprehensive Income (Loss) | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Pension, ā ā ā ā ā ā ā ā ā Postretirement ā ā ā ā Accumulated ā ā ā ā ā and Other Post- ā ā ā ā Other ā ā Derivative ā Employment ā Available-for- ā Comprehensive ā ā Instruments ā Benefits ā Sale Securities ā Income (loss) ā (In thousands) Balance at December 31, 2019 ā $ (2,564) ā $ 8,273 ā $ (20) $ 5,689 Unrealized losses ā (2,974) ā (15,953) ā 206 (18,721) Amounts reclassified from AOCI ā 668 ā (650) ā (140) (122) Balance at June 30, 2020 ā $ (4,870) ā $ (8,330) ā $ 46 $ (13,154) |
Schedule of Comprehensive Income Reclassifications | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended June 30, ā Six Months Ended June 30, Line Item in the Details About AOCI Components 2020 2019 2020 2019 Statement of Operations ā ā (In thousands) ā ā ā Coal hedges ā $ 196 ā $ 1,743 ā $ 196 ā $ 2,104 ā Revenues Interest rate hedges ā (648) ā 514 ā (864) ā 1,029 ā Interest expense ā ā ā ā ā ā ā ā ā ā Provision for (benefit from) income taxes ā ā $ (452) ā $ 2,257 ā $ (668) ā $ 3,133 ā Net of tax ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Pension, postretirement and other post-employment benefits ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Amortization of actuarial gains (losses), net ā $ 232 ā $ ā ā $ 466 ā $ ā ā Non-service related pension and postretirement benefit (costs) credits Amortization of prior service credits ā ā 27 ā ā ā ā ā 54 ā ā ā ā ā Non-service related pension and postretirement benefit (costs) credits Pension settlement ā ā 134 ā 429 ā ā 130 ā 429 ā Non-service related pension and postretirement benefit (costs) credits ā ā ā ā ā ā ā ā ā ā Provision for (benefit from) income taxes ā ā $ 393 ā $ 429 ā $ 650 ā $ 429 ā Net of tax ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Available-for-sale securities ā $ 141 ā $ 15 ā $ 140 ā $ 15 ā Interest and investment income ā ā ā ā ā ā ā ā ā ā Provision for (benefit from) income taxes ā ā $ 141 ā $ 15 ā $ 140 ā $ 15 ā Net of tax |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Inventories | |
Inventories | ā ā ā ā ā ā ā ā ā June 30, December 31, ā 2020 2019 ā ā (In thousands) Coal ā $ 67,702 ā $ 46,815 Repair parts and supplies ā 86,988 ā 84,083 ā ā $ 154,690 ā $ 130,898 |
Investments in Available-for-_2
Investments in Available-for-Sale Securities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investments in Available-for-Sale Securities | |
Available-for-sale Securities | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā June 30, 2020 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Gross ā ā Allowance ā ā ā ā ā ā ā ā Unrealized ā ā for Credit ā Fair ā Cost Basis Gains Losses ā ā Losses Value ā ā (In thousands) Available-for-sale: ā ā ā ā ā ā ā U.S. government and agency securities ā $ 14,030 ā $ 24 ā $ ā ā $ ā ā $ 14,054 Corporate notes and bonds ā 53,161 ā 166 ā (144) ā ā ā 53,183 Total Investments ā $ 67,191 ā $ 190 ā $ (144) ā $ ā ā $ 67,237 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2019 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Gross ā ā Allowance ā ā ā ā ā ā ā ā Unrealized ā ā for Credit ā Fair ā Cost Basis Gains ā Losses ā ā Losses Value ā (In thousands) Available-for-sale: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā U.S. government and agency securities ā $ 35,044 ā $ 1 ā $ (16) ā $ ā ā $ 35,029 Corporate notes and bonds ā 100,643 ā 200 ā (205) ā ā ā 100,638 Total Investments ā $ 135,687 ā $ 201 ā $ (221) ā $ ā ā $ 135,667 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivatives | |
Schedule of Price Risk Derivatives | ā ā ā ā ā ā ā ā (Tons in thousands) 2020 2021 Total Coal sales 542 ā 542 Coal purchases 377 ā 377 |
Disclosure of Fair Value of Derivatives | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā June 30, 2020 ā ā ā December 31, 2019 ā ā Fair Value of Derivatives Asset ā Liability ā ā ā ā Asset ā Liability ā ā (In thousands) ā Derivative ā Derivative ā ā ā ā Derivative ā Derivative ā ā ā Derivatives Designated as Hedging Instruments ā ā ā ā ā ā Coal ā $ 1,047 ā $ (851) ā ā $ 1,351 ā $ (962) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Derivatives Not Designated as Hedging Instruments ā ā ā ā ā ā Heating oil -- diesel purchases ā 528 ā ā ā ā 133 ā (112) ā Coal -- held for trading purposes ā 12,910 ā (12,870) ā ā 18,467 ā (18,940) ā Coal -- risk management ā 11,554 ā (6,659) ā ā 11,662 ā (5,856) ā Natural gas ā ā ā ā ā ā 3 ā ā ā Total ā $ 24,992 ā $ (19,529) ā ā $ 30,265 ā $ (24,908) ā Total derivatives ā $ 26,039 ā $ (20,380) ā ā $ 31,616 ā $ (25,870) ā Effect of counterparty netting ā (20,380) ā 20,380 ā ā (25,759) ā 25,759 ā Net derivatives as classified in the balance sheets ā $ 5,659 ā $ ā ā $ 5,659 ā $ 5,857 ā $ (111) ā $ 5,746 ā ā ā ā ā ā ā ā ā ā ā June 30, December 31, ā ā ā ā 2020 ā 2019 Net derivatives as reflected on the balance sheets (in thousands) ā ā Heating oil and coal Other current assets ā $ 5,659 ā $ 5,857 Coal Accrued expenses and other current liabilities ā ā ā (111) ā ā ā ā $ 5,659 ā $ 5,746 |
Effects of Derivatives on Measures of Financial Performance | Derivatives used in Cash Flow Hedging Relationships (in thousands) Three Months Ended June 30, ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Gain (Loss) Recognized in Other Comprehensive Income ā Gains (Losses) Reclassified from Other Comprehensive Income into Income ā ā 2020 ā 2019 ā 2020 ā 2019 Coal sales (1) $ 440 ā $ 4,010 ā $ (902) ā $ 1,743 Coal purchases (2) (439) ā (340) ā 706 ā ā Totals ā $ 1 ā $ 3,670 ā $ (196) ā $ 1,743 ā Derivatives Not Designated as Hedging Instruments (in thousands) Three Months Ended June 30, ā ā ā ā ā ā ā ā ā Gain (Loss) Recognized ā ā ā 2020 ā ā 2019 Coal trading ā realized and unrealized (3) $ ā ā $ (718) Coal risk management ā unrealized (3) ā 129 ā 9,137 Natural gas tradingā realized and unrealized (3) ā ā ā (19) Change in fair value of coal derivatives and coal trading activities, net total $ 129 ā $ 8,400 ā ā ā ā ā ā ā Coal risk managementā realized (4) $ 2,756 ā $ (881) Heating oil ā diesel purchases (4) $ 328 ā $ (1,369) Location in statement of operations: (1) ā Revenues (2) ā Cost of sales (3) ā Change in fair value of coal derivatives and coal trading activities, net (4) ā Other operating (income) expense, net ā Derivatives used in Cash Flow Hedging Relationships (in thousands) Six Months Ended June 30, ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Gain (Loss) Recognized in Other Comprehensive Income ā Gains (Losses) Reclassified from Other Comprehensive Income into Income ā ā 2020 ā 2019 ā 2020 ā 2019 Coal sales (1) $ 599 ā $ 9,247 ā $ (902) ā $ 2,787 Coal purchases (2) (595) ā (906) ā 706 ā (686) Totals ā $ 4 ā $ 8,341 ā $ (196) ā $ 2,101 ā Derivatives Not Designated as Hedging Instruments (in thousands) Six Months Ended June 30, Six Months Ended June 30,Six Months Ended June 30,Six Months Ended June 30, ā ā ā ā ā ā ā ā Gain (Loss) Recognized ā 2020 2019 Coal tradingā realized and unrealized (3) $ 221 ā $ (1,101) Coal risk managementā unrealized (3) (911) ā 22,562 Natural gas trading ā realized and unrealized (3) 76 ā (80) Change in fair value of coal derivatives and coal trading activities, net total ā $ (614) ā $ 21,381 ā ā ā ā ā ā ā Coal risk management ā realized (4) $ 4,357 ā $ (5,292) Heating oil ā diesel purchases (4) $ (705) ā $ (732) ā Location in statement of operations: (1) ā Revenues (2) ā Cost of sales (3) ā Change in fair value of coal derivatives and coal trading activities, net (4) ā Other operating (income) expense, net |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accrued Expenses and Other Current Liabilities | |
Schedule of Accrued Expenses and Other Current Liabilities | ā ā ā ā ā ā ā ā ā June 30, December 31, ā ā 2020 ā 2019 ā ā (In thousands) Payroll and employee benefits ā $ 46,640 ā $ 50,929 Taxes other than income taxes ā 60,465 ā 69,061 Interest ā 121 ā 133 Workersā compensation ā 15,004 ā 16,119 Asset retirement obligations ā 9,827 ā 10,366 Other ā 11,247 ā 10,559 ā ā $ 143,304 ā $ 157,167 |
Debt and Financing Arrangemen_2
Debt and Financing Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt and Financing Arrangements | |
Schedule of Long-term debt | ā ā ā ā ā ā ā ā ā June 30, December 31, ā ā 2020 ā 2019 ā (In thousands) Term loan due 2024 ($290.3 million face value) ā $ 289,427 ā $ 290,825 Other ā 65,085 ā 25,007 Debt issuance costs ā (4,956) ā (5,013) ā ā ā 349,556 ā ā 310,819 Less: current maturities of debt ā 25,702 ā 20,753 Long-term debt ā $ 323,854 ā $ 290,066 |
Schedule of Interest Rate Derivatives | Below is a summary of the Companyās outstanding interest rate swap agreements designated as hedges as of June 30, 2020: ā ā ā ā ā ā ā ā ā ā Notional Amount ā ā ā ā ā ā ā ā (in millions) Effective Date Fixed Rate Receive Rate Expiration Date ā ā ā ā ā ā ā ā ā ā $ 200.0 ā June 30, 2020 2.249 % 1-month LIBOR ā June 30, 2021 $ 100.0 ā June 30, 2021 2.315 % 1-month LIBOR ā June 30, 2023 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Income Taxes | |
Schedule of Components of Income Tax Expense (Benefit) | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended June 30, ā Six Months Ended June 30, ā ā 2020 2019 2020 2019 ā ā (In thousands) ā Income tax provision at statutory rate ā $ (10,105) ā $ 13,216 ā $ (15,794) ā $ 28,506 ā Percentage depletion allowance ā (11,768) ā (3,457) ā (5,600) ā (7,764) ā State taxes, net of effect of federal taxes ā (1,584) ā 831 ā (1,502) ā 1,843 ā Change in valuation allowance ā 19,531 ā (11,292) ā 20,381 ā (23,805) ā Current expense associated with uncertain tax positions ā ā 5,132 ā ā 844 ā ā 3,101 ā ā 1,437 ā AMT sequestration refund ā ā ā ā ā (1,171) ā ā ā Other, net ā ā ā (51) ā ā ā (56) ā Provision for (benefit from) income taxes ā $ 1,206 ā $ 91 ā $ (585) ā $ 161 ā |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures Measurements | |
Summary of Financial Assets and Liabilities Accounted for at Fair Value | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā June 30, 2020 ā Total Level 1 Level 2 Level 3 ā ā (In thousands) Assets: ā ā ā ā Investments in marketable securities ā $ 67,237 ā $ 14,054 ā $ 53,183 ā $ ā Derivatives ā 5,659 ā 5,131 ā 495 ā 33 Total assets ā $ 72,896 ā $ 19,185 ā $ 53,678 ā $ 33 Liabilities: ā ā ā ā ā ā ā ā Derivatives ā $ 5,066 ā $ ā ā $ 5,066 ā $ ā |
Summary of Change in the Fair Values of Financial Instruments Categorized as Level 3 | ā ā ā ā ā ā ā ā Three Months Ended Six Months Ended ā ā June 30, 2020 ā June 30, 2020 ā ā (In thousands) Balance, beginning of period $ 89 $ 61 Realized and unrealized losses recognized in earnings, net ā (56) ā (1,125) Purchases ā ā ā 1,235 Issuances ā ā ā (138) Settlements ā ā ā ā Ending balance ā $ 33 ā $ 33 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Common Share | |
Schedule of Weighted Average Number of Shares | ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended June 30, ā Six Months Ended June 30, ā ā 2020 2019 2020 2019 ā (In Thousands) ā ā ā Weighted average shares outstanding: Basic weighted average shares outstanding 15,145 16,543 15,142 17,018 Effect of dilutive securities ā 1,238 ā 1,172 Diluted weighted average shares outstanding 15,145 17,781 15,142 18,190 |
Workers Compensation Expense (T
Workers Compensation Expense (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Workers Compensation Expense | |
Workers' compensation expense | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended June 30, ā Six Months Ended June 30, ā ā 2020 2019 2020 2019 ā ā ā (In thousands) ā Self-insured occupational disease benefits: ā ā ā ā Service cost ā $ 1,891 ā $ 1,669 ā $ 3,782 ā $ 3,338 ā Interest cost (1) ā 1,399 ā 1,354 ā 2,798 ā 2,708 ā Net amortization (1) ā 298 ā ā ā 595 ā ā ā Total occupational disease ā $ 3,588 ā $ 3,023 ā $ 7,175 ā $ 6,046 ā Traumatic injury claims and assessments ā 2,100 ā 2,410 ā 4,282 ā 4,554 ā Total workersā compensation expense ā $ 5,688 ā $ 5,433 ā $ 11,457 ā $ 10,600 ā (1) In accordance with the adoption of ASU 2017-07, āCompensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,ā these costs are recorded within Nonoperating expenses in the Condensed Consolidated Statement of Operations on the line item āNon-service related pension and postretirement benefit costs.ā |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Employee Benefit Plans | |
Schedule of Pension Benefit Costs (Credits) | The following table details the components of pension benefit costs (credits): ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended June 30, ā Six Months Ended June 30, ā 2020 2019 2020 2019 ā ā (In thousands) Interest cost (1) ā $ 1,483 ā $ 2,259 ā $ 3,087 ā $ 4,517 Expected return on plan assets (1) ā (2,023) ā (2,724) ā (4,311) ā (5,447) Pension settlement (1) ā ā (134) ā ā (429) ā ā (130) ā ā (429) Amortization of prior service costs (credits) (1) ā (27) ā ā ā (54) ā ā Net benefit credit ā $ (701) ā $ (894) ā $ (1,408) ā $ (1,359) ā The following table details the components of other postretirement benefit costs: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended June 30, ā Six Months Ended June 30, ā 2020 2019 2020 2019 ā ā (In thousands) Service cost ā $ 106 ā $ 120 ā $ 212 ā $ 240 Interest cost (1) ā 653 ā 877 ā 1,306 ā 1,753 Amortization of other actuarial losses (gains) (1) ā (529) ā ā ā (1,059) ā ā Net benefit cost (credit) ā $ 230 ā $ 997 ā $ 459 ā $ 1,993 (1) In accordance with the adoption of ASU 2017-07, āCompensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,ā these costs are recorded within Nonoperating expenses in the Condensed Consolidated Statement of Operations on the line item āNon-service related pension and postretirement benefit costs.ā (1) |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Information | |
Schedule of Operating Segment Results | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Corporate, ā ā ā ā ā ā ā ā ā ā Other ā Other and ā ā ā (In thousands) ā PRB ā MET ā Thermal ā Eliminations ā Consolidated Three Months Ended June 30, 2020 ā ā ā ā ā Revenues ā $ 133,096 ā $ 138,951 ā $ 41,297 $ 6,177 ā $ 319,521 Adjusted EBITDA ā (5,362) ā 20,910 ā (4,752) ā (21,528) ā (10,732) Depreciation, depletion and amortization ā 5,283 ā 22,289 ā 2,333 ā 262 ā 30,167 Accretion on asset retirement obligation ā 3,495 ā 486 ā 347 ā 658 ā 4,986 Total assets ā 247,990 ā 740,451 ā 108,238 ā 705,710 ā 1,802,389 Capital expenditures ā 1,145 ā 57,514 ā 955 ā 1,258 ā 60,872 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended June 30, 2019 ā ā ā ā ā ā ā ā ā ā Revenues ā $ 210,149 ā $ 261,245 ā $ 98,205 ā $ 623 ā $ 570,222 Adjusted EBITDA ā 14,696 ā 101,936 ā 10,922 ā (21,990) ā 105,564 Depreciation, depletion and amortization ā 4,880 ā 17,343 ā 3,689 ā 623 ā 26,535 Accretion on asset retirement obligation ā 3,135 ā 531 ā 603 ā 868 ā 5,137 Total assets ā 236,527 ā 605,657 ā 136,899 ā 910,447 ā 1,889,530 Capital expenditures ā 13,209 ā 31,150 ā 3,211 ā 1,138 ā 48,708 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Six Months Ended June 30, 2020 ā ā ā ā ā ā ā ā ā ā Revenues ā $ 311,556 ā $ 321,605 ā $ 73,033 $ 18,559 ā $ 724,753 Adjusted EBITDA ā (5,944) ā 63,630 ā (6,072) ā (49,431) ā 2,183 Depreciation, depletion and amortization ā 10,491 ā 44,807 ā 4,670 ā 1,507 ā 61,475 Accretion on asset retirement obligation ā 6,990 ā 972 ā 695 ā 1,335 ā 9,992 Total assets ā 247,990 ā 740,451 ā 108,238 ā 705,710 ā 1,802,389 Capital expenditures ā 4,242 ā 136,162 ā 4,571 ā 3,586 ā 148,561 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Six Months Ended June 30, 2019 ā ā ā ā ā ā ā ā ā ā Revenues ā $ 422,878 ā $ 514,507 ā $ 184,183 ā $ 3,837 ā $ 1,125,405 Adjusted EBITDA ā 35,279 ā 193,470 ā 17,041 ā (32,972) ā 212,818 Depreciation, depletion and amortization ā 9,745 ā 33,725 ā 7,124 ā 1,279 ā 51,873 Accretion on asset retirement obligation ā 6,271 ā 1,061 ā 1,207 ā 1,735 ā 10,274 Total assets ā 236,527 ā 605,657 ā 136,899 ā 910,447 ā 1,889,530 Capital expenditures ā 13,623 ā 62,374 ā 9,461 ā 2,396 ā 87,854 |
Schedule of Reconciliation of Net Income (Loss) to Adjusted EBITDA | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended June 30, ā Six Months Ended June 30, ā (In thousands) ā 2020 ā 2019 ā 2020 ā 2019 ā Net income (loss) ā $ (49,324) ā $ 62,840 ā $ (74,623) ā $ 135,581 ā Provision for (benefit from) income taxes ā ā 1,206 ā ā 91 ā ā (585) ā ā 161 ā Interest expense, net ā 1,730 ā 2,287 ā 3,859 ā 4,576 ā Depreciation, depletion and amortization ā 30,167 ā 26,535 ā 61,475 ā 51,873 ā Accretion on asset retirement obligations ā 4,986 ā 5,137 ā 9,992 ā 10,274 ā Costs related to proposed joint venture with Peabody Energy ā 7,851 ā 3,018 ā 11,515 ā 3,018 ā Severance costs related to voluntary separation plan ā 7,437 ā ā ā 13,265 ā ā ā Gain on property insurance recovery related to Mountain Laurel longwall ā (14,518) ā ā ā (23,518) ā ā ā (Gain) loss on divestitures ā ā (1,369) ā ā 4,304 ā ā (1,369) ā ā 4,304 ā Non-service related pension and postretirement benefit costs ā 1,102 ā 1,336 ā 2,198 ā 3,102 ā Reorganization items, net ā ā ā 16 ā (26) ā (71) ā Adjusted EBITDA ā $ (10,732) ā $ 105,564 ā $ 2,183 ā $ 212,818 ā |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue Recognition | |
Schedule of effects of revenue recognition | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Corporate, ā ā ā ā ā ā ā ā ā ā Other ā Other and ā ā ā ā ā PRB ā MET ā Thermal ā Eliminations ā Consolidated ā (in thousands) Three Months Ended June 30, 2020 ā ā ā ā ā North America revenues ā $ 133,096 ā $ 40,137 ā $ 31,149 ā $ 6,177 ā $ 210,559 Seaborne revenues ā ā ā 98,814 ā 10,148 ā ā ā 108,962 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Total revenues ā $ 133,096 ā $ 138,951 ā $ 41,297 ā $ 6,177 ā $ 319,521 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended June 30, 2019 ā ā ā ā ā ā ā ā ā ā North America revenues ā $ 210,149 ā $ 54,896 ā $ 47,885 ā $ 623 ā $ 313,553 Seaborne revenues ā ā ā 206,349 ā 50,320 ā ā ā 256,669 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Total revenues ā $ 210,149 ā $ 261,245 ā $ 98,205 ā $ 623 ā $ 570,222 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Six Months Ended June 30, 2020 ā ā ā ā ā ā ā ā ā ā North America revenues ā $ 311,375 ā $ 69,860 ā $ 59,733 ā $ 18,559 ā $ 459,527 Seaborne revenues ā 181 ā 251,745 ā 13,300 ā ā ā 265,226 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Total revenues ā $ 311,556 ā $ 321,605 ā $ 73,033 ā $ 18,559 ā $ 724,753 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Six Months Ended June 30, 2019 ā ā ā ā ā ā ā ā ā ā North America revenues ā $ 422,878 ā $ 99,562 ā $ 94,414 ā $ 3,837 ā $ 620,691 Seaborne revenues ā ā ā 414,945 ā 89,769 ā ā ā 504,714 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Total revenues ā $ 422,878 ā $ 514,507 ā $ 184,183 ā $ 3,837 ā $ 1,125,405 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases | |
Schedule of Information Related to Leases | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Six Months Ended June 30, ā ā ā 2020 ā ā 2019 Operating lease information: ā (In thousands) Operating lease cost ā $ 905 ā ā ā $ 917 ā Operating cash flows from operating leases ā 885 ā ā ā ā 871 ā Weighted average remaining lease term in years ā 5.38 ā ā ā ā 5.06 ā Weighted average discount rate ā 5.5 % ā ā ā 5.6 % ā ā ā ā ā ā ā ā ā ā Financing lease information: ā ā ā ā ā ā ā Financing lease cost ā $ 393 ā ā ā $ ā ā Operating cash flows from financing leases ā 303 ā ā ā ā ā ā Weighted average remaining lease term in years ā 4.75 ā ā ā ā ā ā Weighted average discount rate ā 6.4 % ā ā ā ā % |
Schedule of Future Minimum Lease Payments | Future minimum lease payments under non-cancellable leases as of June 30, 2020 were as follows: ā ā ā ā ā ā ā ā ā Operating ā ā Finance Year ā Leases ā ā Leases ā (In thousands) 2020 ā $ 1,683 ā ā $ 605 2021 ā 3,367 ā ā 1,210 2022 ā 3,317 ā ā 1,210 2023 ā 3,285 ā ā 1,210 2024 ā 3,200 ā ā 1,210 Thereafter ā 7,798 ā ā 2,111 Total minimum lease payments ā $ 22,650 ā ā $ 7,556 Less imputed interest ā (3,742) ā ā (1,273) ā ā ā ā ā ā ā ā Total lease liabilities ā $ 18,908 ā ā $ 6,283 ā ā ā ā ā ā ā ā As reflected on balance sheet: ā ā ā ā ā Accrued expenses and other current liabilities ā $ 2,382 ā ā $ 833 Other noncurrent liabilities ā 16,526 ā ā 5,450 ā ā ā ā ā ā ā ā Total lease liability ā $ 18,908 ā ā $ 6,283 |
Joint Venture with Peabody En_2
Joint Venture with Peabody Energy (Details) - Implementation Agreement - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 18, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||
Economic interest held | 33.50% | |||
Incurred expenses related to regulatory approval process | $ 7.9 | $ 11.5 | $ 3 | |
Peabody Energy Corporation | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Economic interest held | 66.50% |
Gain on Property Insurance Re_2
Gain on Property Insurance Recovery Related to Mountain Laurel Longwall (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020USD ($)item | Jun. 30, 2020USD ($)item | |
Business Interruption Loss [Line Items] | ||
Gain on Business Interruption Insurance Recovery | $ | $ 23,518 | |
Longwall system's not recoverable | item | 123 | 123 |
Mountain Laurel Longwall Operations | ||
Business Interruption Loss [Line Items] | ||
Gain on Business Interruption Insurance Recovery | $ | $ 14,500 | $ 23,500 |
Hydraulic Shields not recoverable | item | 176 | 176 |
Severance Costs Related To Vo_2
Severance Costs Related To Voluntary Separation Plan (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020USD ($)employee | Jun. 30, 2020USD ($)employee | |
Severance Costs Related To Voluntary Separation Plan | ||
Severance Costs | $ | $ 7,437 | $ 13,265 |
Number of corporate staff accepted voluntary separation package | 53 | |
Number of Employees accepted voluntary separation package | 201 | 201 |
Divestitures (Details)
Divestitures (Details) | Sep. 14, 2017USD ($)company | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Charge for bankruptcy claims | $ 4,300,000 | ||||
Lone Mountain Processing LLC | Discontinued Operations, Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of mining companies | company | 2 | ||||
(Gain) loss on divestitures | $ (21,300,000) | ||||
Dal-Tex and Briar Branch Properties | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
(Gain) loss on divestitures | $ (1,369,000) | $ 4,304,000 | $ (1,369,000) | $ 4,304,000 | |
Dal-Tex and Briar Branch Properties | Discontinued Operations, Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from Divestiture of Interest in Subsidiaries and Affiliates, Total | 0 | ||||
Gain on disposal | $ 1,400,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning Balance | $ 640,536 |
Unrealized gains | (18,721) |
Amounts reclassified from AOCI | (122) |
Ending Balance | 547,782 |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning Balance | 5,689 |
Ending Balance | (13,154) |
Derivative instruments | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning Balance | (2,564) |
Unrealized gains | (2,974) |
Amounts reclassified from AOCI | 668 |
Ending Balance | (4,870) |
Pension, postretirement and other post-employment benefits | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning Balance | 8,273 |
Unrealized gains | (15,953) |
Amounts reclassified from AOCI | (650) |
Ending Balance | (8,330) |
Available-for-sale securities | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning Balance | (20) |
Unrealized gains | 206 |
Amounts reclassified from AOCI | (140) |
Ending Balance | $ 46 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Schedule of Reclassifications) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Revenues | $ 319,521 | $ 570,222 | $ 724,753 | $ 1,125,405 |
Interest expense | (3,523) | (4,375) | (6,911) | (8,807) |
Provision for (benefit from) income taxes | (1,206) | (91) | 585 | (161) |
Interest and investment income | 1,793 | 2,088 | 3,052 | 4,231 |
Net income (loss) | (49,324) | 62,840 | (74,623) | 135,581 |
Reclassification out of Accumulated Other Comprehensive Income | Derivative instruments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Revenues | 196 | 1,743 | 196 | 2,104 |
Interest expense | (648) | 514 | (864) | 1,029 |
Provision for (benefit from) income taxes | 0 | 0 | 0 | 0 |
Net income (loss) | (452) | 2,257 | (668) | 3,133 |
Reclassification out of Accumulated Other Comprehensive Income | Pension, postretirement and other post-employment benefits | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Provision for (benefit from) income taxes | 0 | 0 | 0 | 0 |
Amortization of actuarial gains (losses), net | 232 | 0 | 466 | 0 |
Amortization of prior service credits | 27 | 54 | ||
Pension settlement | 134 | 429 | 130 | 429 |
Net income (loss) | 393 | 429 | 650 | 429 |
Reclassification out of Accumulated Other Comprehensive Income | Available-for-sale securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Provision for (benefit from) income taxes | 0 | 0 | 0 | 0 |
Interest and investment income | 141 | 15 | 140 | 15 |
Net income (loss) | $ 141 | $ 15 | $ 140 | $ 15 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Inventories | ||
Coal | $ 67,702 | $ 46,815 |
Repair parts and supplies | 86,988 | 84,083 |
Inventories | 154,690 | 130,898 |
Allowance for slow-moving and obsolete inventories | $ 2,400 | $ 2,200 |
Investments in Available-for-_3
Investments in Available-for-Sale Securities (Schedule of Investments) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, Cost Basis | $ 67,191 | $ 135,687 |
Available-for-sale, Gains | 190 | 201 |
Available-for-sale, Losses | (144) | (221) |
Available-for-sale, Fair Value | 67,237 | 135,667 |
Available-for-sale, Short-Term Investments | 67,237 | 135,667 |
U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, Cost Basis | 14,030 | 35,044 |
Available-for-sale, Gains | 24 | 1 |
Available-for-sale, Losses | (16) | |
Available-for-sale, Fair Value | 14,054 | 35,029 |
Corporate notes and bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, Cost Basis | 53,161 | 100,643 |
Available-for-sale, Gains | 166 | 200 |
Available-for-sale, Losses | (144) | (205) |
Available-for-sale, Fair Value | $ 53,183 | $ 100,638 |
Investments in Available-for-_4
Investments in Available-for-Sale Securities (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Investments in Available-for-Sale Securities | ||
Unrealized losses owned for less than 12 months | $ 12.5 | $ 72.3 |
Unrealized losses owed for over a year | $ 5.1 | $ 0 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) gal in Millions, $ in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($)$ / Optiongal | Dec. 31, 2021USD ($) | Dec. 31, 2019USD ($) | |
Derivative [Line Items] | ||||
Value of trading portfolio realized - gains (losses) | $ | $ (0.3) | |||
Current asset representing cash collateral posted | $ | $ 3.9 | $ 4.4 | ||
Derivative contracts expected to be reclassified from OCI into earnings | $ | $ 0.2 | |||
Not Designated as Hedging Instrument | Heating Oil | ||||
Derivative [Line Items] | ||||
Quantities under derivative contracts (in gallons) | gal | 6 | |||
Derivative, average price risk option strike price (in used per gallon) | $ / Option | 1.74 | |||
Not Designated as Hedging Instrument | Diesel Purchases | Minimum | ||||
Derivative [Line Items] | ||||
Diesel fuel purchased annually (in gallons) | gal | 30 | |||
Not Designated as Hedging Instrument | Diesel Purchases | Maximum | ||||
Derivative [Line Items] | ||||
Diesel fuel purchased annually (in gallons) | gal | 35 | |||
Forecast | ||||
Derivative [Line Items] | ||||
Value of trading portfolio realized - gains (losses) | $ | $ 0.3 | |||
NYMEX | Not Designated as Hedging Instrument | Diesel Purchases | ||||
Derivative [Line Items] | ||||
Quantities under derivative contracts (in gallons) | gal | 4 | |||
Derivative, average price risk option strike price (in used per gallon) | $ / Option | 1.03 |
Derivatives (Schedule of Price
Derivatives (Schedule of Price Risk Derivatives) (Details) T in Thousands | 6 Months Ended |
Jun. 30, 2020T | |
Coal sales | |
Derivative [Line Items] | |
Derivatives held (in tons) | 542 |
Coal purchases | |
Derivative [Line Items] | |
Derivatives held (in tons) | 377 |
2020 | Coal sales | |
Derivative [Line Items] | |
Derivatives held (in tons) | 542 |
2020 | Coal purchases | |
Derivative [Line Items] | |
Derivatives held (in tons) | 377 |
Derivatives (Disclosure Of Fair
Derivatives (Disclosure Of Fair Value Of Derivatives) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Derivative Assets | $ 26,039 | $ 31,616 |
Derivative Liabilities | (20,380) | (25,870) |
Effect of counterparty netting in derivative assets | (20,380) | (25,759) |
Effect of counterparty netting in derivative liabilities | 20,380 | 25,759 |
Derivative Asset | 5,659 | 5,857 |
Derivative Liability | (111) | |
Net derivatives as classified in the balance sheets | 5,659 | 5,746 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Assets | 24,992 | 30,265 |
Derivative Liabilities | (19,529) | (24,908) |
Not Designated as Hedging Instrument | Coal Contract | ||
Derivative [Line Items] | ||
Derivative Assets | 12,910 | 18,467 |
Derivative Liabilities | (12,870) | (18,940) |
Coal Contract | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Assets | 1,047 | 1,351 |
Derivative Liabilities | (851) | (962) |
Coal Contract | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Assets | 11,554 | 11,662 |
Derivative Liabilities | (6,659) | (5,856) |
Heating oil - diesel purchases | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Assets | 528 | 133 |
Derivative Liabilities | (112) | |
Natural gas | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Assets | 0 | 3 |
Derivative Liabilities | $ 0 | $ 0 |
Derivatives (Net Derivatives As
Derivatives (Net Derivatives As Reflected On The Balance Sheets) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Net derivatives as classified in the balance sheet | $ 5,659 | $ 5,746 |
Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Net derivatives as classified in the balance sheet | (111) | |
Heating oil and coal | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Net derivatives as classified in the balance sheet | $ 5,659 | $ 5,857 |
Derivatives (Effects Of Derivat
Derivatives (Effects Of Derivatives On Measures Of Financial Performance) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in fair value of coal derivatives and coal trading activities, net | $ 129 | $ 8,400 | $ (614) | $ 21,381 |
Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Other Comprehensive Income | 1 | 3,670 | 4 | 8,341 |
Gains (Losses) Reclassified from Other Comprehensive Income into Income | (196) | 1,743 | (196) | 2,101 |
Designated as Hedging Instrument | Coal sales | Coal Contract | Coal sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Other Comprehensive Income | 440 | 4,010 | 599 | 9,247 |
Gains (Losses) Reclassified from Other Comprehensive Income into Income | (902) | 1,743 | (902) | 2,787 |
Designated as Hedging Instrument | Coal purchases | Coal Contract | Coal purchases | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Other Comprehensive Income | (439) | (340) | (595) | (906) |
Gains (Losses) Reclassified from Other Comprehensive Income into Income | 706 | 0 | 706 | (686) |
Not Designated as Hedging Instrument | Coal Contract | Coal and natural gas realized and unrealized | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized and Unrealized Gain (Loss) on Derivatives | (718) | 221 | (1,101) | |
Unrealized Gain (Loss) on Derivatives | 129 | 9,137 | (911) | 22,562 |
Not Designated as Hedging Instrument | Coal Contract | Other operating (income) expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized Gain (Loss) on Derivatives | 2,756 | (881) | 4,357 | (5,292) |
Not Designated as Hedging Instrument | Natural gas | Coal and natural gas realized and unrealized | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized and Unrealized Gain (Loss) on Derivatives | (19) | 76 | (80) | |
Not Designated as Hedging Instrument | Heating oil - diesel purchases | Other operating (income) expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Heating oil realized and unrealized gains and losses | $ 328 | $ (1,369) | $ (705) | $ (732) |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Accrued Expenses and Other Current Liabilities | ||
Payroll and employee benefits | $ 46,640 | $ 50,929 |
Taxes other than income taxes | 60,465 | 69,061 |
Interest | 121 | 133 |
Workers' compensation | 15,004 | 16,119 |
Asset retirement obligations | 9,827 | 10,366 |
Other | 11,247 | 10,559 |
Accrued expenses and other current liabilities | $ 143,304 | $ 157,167 |
Debt and Financing Arrangemen_3
Debt and Financing Arrangements (Long term Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Term loan | $ 289,427 | $ 290,825 |
Other | 65,085 | 25,007 |
Debt issuance costs | (4,956) | (5,013) |
Total | 349,556 | 310,819 |
Less: current maturities of debt | 25,702 | 20,753 |
Long-term debt | 323,854 | $ 290,066 |
Term loan due 2024 ($291.0 million face value) | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 290,300 |
Debt and Financing Arrangemen_4
Debt and Financing Arrangements (Narrative) (Details) | Mar. 04, 2020USD ($)installment | Apr. 27, 2018 | Mar. 07, 2017USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($) | Apr. 27, 2017USD ($) |
Line of Credit Facility [Line Items] | |||||||||
Additional availability for borrowings | $ 17,600,000 | ||||||||
Fair value of derivative assets | $ 26,039,000 | 26,039,000 | $ 31,616,000 | ||||||
Interest Rate Swap | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Fair value of derivative assets | (5,100,000) | (5,100,000) | |||||||
Interest rate swaps settlements gains | 600,000 | $ 900,000 | |||||||
Equipment financing arrangement | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Interest rate | 6.34% | ||||||||
Senior Notes | New Term Loan Debt Facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Net cash proceeds of from debt issuances and other non-ordinary sales or dispositions (percent) | 100 | ||||||||
Default to indebtedness | $ 50,000,000 | ||||||||
Default to surety, reclamation or similar bond | 50,000,000 | ||||||||
Default to uninsured judgment | 50,000,000 | ||||||||
Uninsured losses or proceedings against | 50,000,000 | ||||||||
Senior Notes | New Term Loan Debt Facility | LIBOR | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Basis spread on variable rate | 2.75% | ||||||||
Senior Notes | New Term Loan Debt Facility | LIBOR | Minimum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Basis spread on variable rate | 1.00% | ||||||||
Secured Debt | Equipment financing arrangement | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument, face amount | $ 53,600,000 | ||||||||
Number of monthly payments | installment | 48 | ||||||||
Line of Credit | New Term Loan Debt Facility | Base Rate | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Basis spread on variable rate | 1.75% | ||||||||
New Term Loan Debt Facility | Senior Notes | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument, face amount | $ 300,000,000 | ||||||||
Percentage of face amount | 99.50 | ||||||||
Quarterly amortization payments | $ 750,000 | ||||||||
Amount of voting equity interests of domestic subsidiaries guaranteed (percent) | 100 | ||||||||
Amount of voting equity interests of foreign owned subsidiaries guaranteed (percent) | 65 | ||||||||
New Term Loan Debt Facility | Senior Notes | LIBOR | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Basis spread on variable rate | 2.75% | ||||||||
Line of Credit | Secured Debt | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Letters of credit outstanding | 15,000,000 | $ 15,000,000 | |||||||
Line of Credit | Secured Debt | Regions Bank | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument, face amount | $ 40,000,000 | ||||||||
Maximum borrowing capacity | $ 50,000,000 | ||||||||
Covenant minimum amount | $ 175,000,000 | $ 175,000,000 | |||||||
Letters of credit outstanding | 32,400,000 | 32,400,000 | |||||||
Current borrowing capacity | 160,000,000 | ||||||||
Percentage of coal inventory borrowing base | 85 | ||||||||
Percentage of parts and supplies inventory borrowing base | 85 | ||||||||
Percentage of clause borrowing base | 35 | ||||||||
Percent of eligible cash | 100.00% | ||||||||
Facility size, increase | $ 10,000,000 | ||||||||
Covenant amount (less than) | $ 250,000,000 | ||||||||
Line of Credit | Secured Debt | LIBOR | Regions Bank | Minimum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Basis spread on variable rate | 2.00% | ||||||||
Line of Credit | Secured Debt | LIBOR | Regions Bank | Maximum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Percentage of clause borrowing base | 2.50 | ||||||||
Line of Credit | Secured Debt | Base Rate | Regions Bank | Minimum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Basis spread on variable rate | 1.00% | ||||||||
Line of Credit | Secured Debt | Base Rate | Regions Bank | Maximum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Basis spread on variable rate | 1.50% | ||||||||
Line of Credit | Secured Debt | Accounts Receivable Securitization Facility | Arch Receivable Company, LLC | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Liquidity threshold, consecutive days | 60 days | ||||||||
Liquidity threshold | 364 days | ||||||||
Liquidity threshold, expiration period | 60 days | ||||||||
Current borrowing capacity | $ 68,200,000 | $ 68,200,000 |
Debt and Financing Arrangemen_5
Debt and Financing Arrangements (Interest rate derivatives) (Details) $ in Millions | Jun. 30, 2020USD ($) |
June 30, 2020 | |
Debt Instrument [Line Items] | |
Notional Amount | $ 200 |
Fixed Rate | 2.249% |
June 30, 2021 | |
Debt Instrument [Line Items] | |
Notional Amount | $ 100 |
Fixed Rate | 2.315% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Taxes | ||||
Income tax provision at statutory rate | $ (10,105) | $ 13,216 | $ (15,794) | $ 28,506 |
Percentage depletion allowance | (11,768) | (3,457) | (5,600) | (7,764) |
State taxes, net of effect of federal taxes | (1,584) | 831 | (1,502) | 1,843 |
Change in valuation allowance | 19,531 | (11,292) | 20,381 | (23,805) |
Current expense associated with uncertain tax positions | 5,132 | 844 | 3,101 | 1,437 |
AMT sequestration refund | (1,171) | |||
Other, net | (51) | 0 | (56) | |
Provision for (benefit from) income taxes | 1,206 | $ 91 | (585) | $ 161 |
Refund, AMT credits | 37,400 | 37,400 | ||
Tax reserve for portion of refund subject to audit | $ 13,300 | $ 13,300 | ||
Percentage of the total income tax refund amount subject to audit | 40.00% |
Fair Value Measurements (Summar
Fair Value Measurements (Summary Of Financial Assets And Liabilities Accounted For At Fair Value) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Investments in marketable securities | $ 67,237 | $ 135,667 |
Derivatives | 5,659 | |
Total assets | 72,896 | |
Liabilities: | ||
Derivatives | 5,066 | |
Level 1 | ||
Assets: | ||
Investments in marketable securities | 14,054 | |
Derivatives | 5,131 | |
Total assets | 19,185 | |
Liabilities: | ||
Derivatives | 0 | |
Level 2 | ||
Assets: | ||
Investments in marketable securities | 53,183 | |
Derivatives | 495 | |
Total assets | 53,678 | |
Liabilities: | ||
Derivatives | 5,066 | |
Level 3 | ||
Assets: | ||
Investments in marketable securities | 0 | |
Derivatives | 33 | |
Total assets | 33 | |
Liabilities: | ||
Derivatives | $ 0 |
Fair Value Measurements (Summ_2
Fair Value Measurements (Summary Of Change In The Fair Values Of Financial Instruments Categorized As Level 3) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | $ 89 | $ 61 |
Realized and unrealized gains recognized in earnings, net | (56) | (1,125) |
Purchases | 1,235 | |
Issuances | (138) | |
Ending balance | $ 33 | $ 33 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of debt, including amounts classified as current | $ 308.9 | $ 308.9 | $ 308 |
Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Net unrealized losses related to level 3 financial instruments | $ (0.1) | $ (0.6) |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Weighted average shares outstanding: | ||||
Basic weighted average shares outstanding (in shares) | 15,145,000 | 16,543,000 | 15,142,000 | 17,018,000 |
Effect of dilutive securities (in shares) | 1,238,000 | 1,172,000 | ||
Diluted weighted average shares outstanding (in shares) | 15,145,000 | 17,781,000 | 15,142,000 | 18,190,000 |
Warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities excluded | 94,333 | |||
Restricted Stock Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities excluded | 165,167 |
Workers Compensation Expense (D
Workers Compensation Expense (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Accrued Workers Compensation [Line Items] | |||||
Additional collateral amount | $ 71,100 | ||||
Number of days required to submit additional collateral to retain self-insurance status | 30 days | ||||
Occupational disease | |||||
Accrued Workers Compensation [Line Items] | |||||
Service cost | $ 1,891 | $ 1,669 | $ 3,782 | $ 3,338 | |
Interest cost | 1,399 | 1,354 | 2,798 | 2,708 | |
Net amortization(1) | 298 | 0 | 595 | 0 | |
Net benefit credit | 3,588 | 3,023 | 7,175 | 6,046 | |
Traumatic injury claims and assessments | |||||
Accrued Workers Compensation [Line Items] | |||||
Traumatic injury claims and assessments | 2,100 | 2,410 | 4,282 | 4,554 | |
Total workers' compensation expense | |||||
Accrued Workers Compensation [Line Items] | |||||
Total workers' compensation expense | $ 5,688 | $ 5,433 | $ 11,457 | $ 10,600 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Defined benefit pension plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | $ 1,483 | $ 2,259 | $ 3,087 | $ 4,517 |
Expected return on plan assets | (2,023) | (2,724) | (4,311) | (5,447) |
Pension settlement | (134) | (429) | (130) | (429) |
Amortization of prior service costs (credits) | (27) | (54) | 0 | |
Net benefit credit | (701) | (894) | (1,408) | (1,359) |
Other postretirement benefits plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 106 | 120 | 212 | 240 |
Interest cost | 653 | 877 | 1,306 | 1,753 |
Amortization of other actuarial losses (gains) | (529) | (1,059) | 0 | |
Net benefit credit | $ 230 | $ 997 | $ 459 | $ 1,993 |
Segment Information (Schedule O
Segment Information (Schedule Of Operating Segment Results) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)segment | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | segment | 2 | ||||
Revenues | $ 319,521 | $ 570,222 | $ 724,753 | $ 1,125,405 | |
Adjusted EBITDA | (10,732) | 105,564 | 2,183 | 212,818 | |
Depreciation, depletion and amortization | 30,167 | 26,535 | 61,475 | 51,873 | |
Accretion on asset retirement obligations | 4,986 | 5,137 | 9,992 | 10,274 | |
Total assets | 1,802,389 | 1,889,530 | 1,802,389 | 1,889,530 | $ 1,867,756 |
Capital expenditures | 60,872 | 48,708 | 148,561 | 87,854 | |
Operating Segments | PRB | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 133,096 | 210,149 | 311,556 | 422,878 | |
Adjusted EBITDA | (5,362) | 14,696 | (5,944) | 35,279 | |
Depreciation, depletion and amortization | 5,283 | 4,880 | 10,491 | 9,745 | |
Accretion on asset retirement obligations | 3,495 | 3,135 | 6,990 | 6,271 | |
Total assets | 247,990 | 236,527 | 247,990 | 236,527 | |
Capital expenditures | 1,145 | 13,209 | 4,242 | 13,623 | |
Operating Segments | MET | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 138,951 | 261,245 | 321,605 | 514,507 | |
Adjusted EBITDA | 20,910 | 101,936 | 63,630 | 193,470 | |
Depreciation, depletion and amortization | 22,289 | 17,343 | 44,807 | 33,725 | |
Accretion on asset retirement obligations | 486 | 531 | 972 | 1,061 | |
Total assets | 740,451 | 605,657 | 740,451 | 605,657 | |
Capital expenditures | 57,514 | 31,150 | 136,162 | 62,374 | |
Operating Segments | Other Thermal | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 41,297 | 98,205 | 73,033 | 184,183 | |
Adjusted EBITDA | (4,752) | 10,922 | (6,072) | 17,041 | |
Depreciation, depletion and amortization | 2,333 | 3,689 | 4,670 | 7,124 | |
Accretion on asset retirement obligations | 347 | 603 | 695 | 1,207 | |
Total assets | 108,238 | 136,899 | 108,238 | 136,899 | |
Capital expenditures | 955 | 3,211 | 4,571 | 9,461 | |
Corporate, Other and Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 6,177 | 623 | 18,559 | 3,837 | |
Adjusted EBITDA | (21,528) | (21,990) | (49,431) | (32,972) | |
Depreciation, depletion and amortization | 262 | 623 | 1,507 | 1,279 | |
Accretion on asset retirement obligations | 658 | 868 | 1,335 | 1,735 | |
Total assets | 705,710 | 910,447 | 705,710 | 910,447 | |
Capital expenditures | $ 1,258 | $ 1,138 | $ 3,586 | $ 2,396 |
Segment Information (Reconcilia
Segment Information (Reconciliation Segment Income To Consolidated Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Net income (loss) | $ (49,324) | $ 62,840 | $ (74,623) | $ 135,581 |
Provision for (benefit from) income taxes | 1,206 | 91 | (585) | 161 |
Interest expense, net | 1,730 | 2,287 | 3,859 | 4,576 |
Depreciation, depletion and amortization | 30,167 | 26,535 | 61,475 | 51,873 |
Accretion on asset retirement obligations | 4,986 | 5,137 | 9,992 | 10,274 |
Costs related to proposed joint venture with Peabody Energy | 7,851 | 3,018 | 11,515 | 3,018 |
Severance costs related to voluntary separation plan | 7,437 | 13,265 | ||
Gain on property insurance recovery related to Mountain Laurel longwall | 14,518 | 23,518 | ||
Non-service related pension and postretirement benefit costs | 1,102 | 1,336 | 2,198 | 3,102 |
Reorganization items, net | 16 | (26) | (71) | |
Adjusted EBITDA | (10,732) | 105,564 | 2,183 | 212,818 |
Dal-Tex and Briar Branch Properties | ||||
Segment Reporting Information [Line Items] | ||||
(Gain) loss on divestitures | $ (1,369) | $ 4,304 | $ (1,369) | $ 4,304 |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 319,521 | $ 570,222 | $ 724,753 | $ 1,125,405 |
Corporate, Other and Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,177 | 623 | 18,559 | 3,837 |
North America revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 210,559 | 313,553 | 459,527 | 620,691 |
North America revenues | Corporate, Other and Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,177 | 623 | 18,559 | 3,837 |
Seaborne revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 108,962 | 256,669 | 265,226 | 504,714 |
Seaborne revenues | Corporate, Other and Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
PRB | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 133,096 | 210,149 | 311,556 | 422,878 |
PRB | North America revenues | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 133,096 | 210,149 | 311,375 | 422,878 |
PRB | Seaborne revenues | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 181 | 0 |
MET | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 138,951 | 261,245 | 321,605 | 514,507 |
MET | North America revenues | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 40,137 | 54,896 | 69,860 | 99,562 |
MET | Seaborne revenues | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 98,814 | 206,349 | 251,745 | 414,945 |
Other Thermal | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 41,297 | 98,205 | 73,033 | 184,183 |
Other Thermal | North America revenues | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 31,149 | 47,885 | 59,733 | 94,414 |
Other Thermal | Seaborne revenues | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 10,148 | $ 50,320 | $ 13,300 | $ 89,769 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) T in Millions | Jun. 30, 2020T |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations, fixed price contracts (in tons) | 36.2 |
Remaining performance obligations, variable price contracts (in tons) | 2.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations, fixed price contracts (in tons) | 69 |
Remaining performance obligations, variable price contracts (in tons) | 4.5 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Millions | Jun. 30, 2020USD ($) |
Lessee, Lease, Description [Line Items] | |
Right-of-use operating lease asset | $ 18.2 |
Finance Lease, Right-of-Use Asset | $ 6.2 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets, Noncurrent |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, remaining lease terms | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, remaining lease terms | 7 years |
Leases (Information Related to
Leases (Information Related to Leases) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Lease information: | ||
Operating lease cost | $ 905 | $ 917 |
Operating cash flows from operating leases | $ 885 | $ 871 |
Weighted average remaining lease term in years | 5 years 4 months 17 days | 5 years 21 days |
Weighted average discount rate | 5.50% | 5.60% |
Financing lease cost | $ 393 | |
Operating cash flows from financing leases | $ 303 | |
Weighted average discount rate | 6.40% |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments) (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Operating Leases | |
2020 | $ 1,683 |
2021 | 3,367 |
2022 | 3,317 |
2023 | 3,285 |
2024 | 3,200 |
Thereafter | 7,798 |
Total minimum lease payments | 22,650 |
Less imputed interest | (3,742) |
Total operating lease liability | 18,908 |
As reflected on balance sheet: | |
Accrued expenses and other current liabilities | 2,382 |
Other noncurrent liabilities | 16,526 |
Total operating lease liability | 18,908 |
Finance Leases | |
2020 | 605 |
2021 | 1,210 |
2022 | 1,210 |
2023 | 1,210 |
2024 | 1,210 |
Thereafter | 2,111 |
Total minimum lease payments | 7,556 |
Less imputed interest | (1,273) |
Total finance lease liability | 6,283 |
As reflected on balance sheet: | |
Accrued expenses and other current liabilities | 833 |
Other noncurrent liabilities | 5,450 |
Finance Lease, Liability | $ 6,283 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - Bonds $ in Millions | Jul. 02, 2020USD ($) |
Subsequent Event [Line Items] | |
Term loan, face value | $ 53.1 |
Fixed interest rate | 5.00% |
Cash proceed | $ 30 |