Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 27, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ARCH COAL INC | |
Entity Central Index Key | 1,037,676 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 25,021,079 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Costs, expenses and other operating | ||
Asset impairment and mine closure costs | $ 85,500 | |
Successor [Member] | ||
Revenues | $ 600,975 | |
Costs, expenses and other operating | ||
Cost of sales (exclusive of items shown separately below) | 461,410 | |
Depreciation, depletion and amortization | 31,921 | |
Accretion on asset retirement obligations | 7,623 | |
Amortization of sales contracts, net | 14,690 | |
Change in fair value of coal derivatives and coal trading activities, net | 854 | |
Asset impairment and mine closure costs | 0 | |
Selling, general and administrative expenses | 20,523 | |
Other operating income, net | (2,310) | |
Total operating expenses | 534,711 | |
Income (loss) from operations | 66,264 | |
Interest expense, net | ||
Interest expense | (9,425) | |
Interest and investment income | 527 | |
Interest expense, net | (8,898) | |
Income (loss) before nonoperating expenses | 57,366 | |
Nonoperating expenses | ||
Net loss resulting from early retirement of debt and debt restructuring | (2,030) | |
Reorganization items, net | (2,828) | |
Nonoperating income (expense) | (4,858) | |
Income (loss) before income taxes | 52,508 | |
Provision for (benefit from) income taxes | 840 | |
Net income (loss) | $ 51,668 | |
Net income (loss) per common share | ||
Basic earnings (loss) per common share (in dollars per share) | $ 2.07 | |
Diluted earnings (loss) per common share (in dollars per share) | $ 2.03 | |
Weighted average shares outstanding | ||
Basic weighted average shares outstanding (shares) | 25,008 | |
Diluted weighted average shares outstanding (shares) | 25,408 | |
Predecessor [Member] | ||
Revenues | 428,106 | |
Costs, expenses and other operating | ||
Cost of sales (exclusive of items shown separately below) | 411,010 | |
Depreciation, depletion and amortization | 63,699 | |
Accretion on asset retirement obligations | 8,306 | |
Amortization of sales contracts, net | (833) | |
Change in fair value of coal derivatives and coal trading activities, net | 1,210 | |
Asset impairment and mine closure costs | 85,520 | |
Selling, general and administrative expenses | 19,826 | |
Other operating income, net | (2,220) | |
Total operating expenses | 586,518 | |
Income (loss) from operations | (158,412) | |
Interest expense, net | ||
Interest expense | (44,451) | |
Interest and investment income | 1,138 | |
Interest expense, net | (43,313) | |
Income (loss) before nonoperating expenses | (201,725) | |
Nonoperating expenses | ||
Net loss resulting from early retirement of debt and debt restructuring | (2,213) | |
Reorganization items, net | (3,875) | |
Nonoperating income (expense) | (6,088) | |
Income (loss) before income taxes | (207,813) | |
Provision for (benefit from) income taxes | (1,111) | |
Net income (loss) | $ (206,702) | |
Net income (loss) per common share | ||
Basic earnings (loss) per common share (in dollars per share) | $ (9.71) | |
Diluted earnings (loss) per common share (in dollars per share) | $ (9.71) | |
Weighted average shares outstanding | ||
Basic weighted average shares outstanding (shares) | 21,293 | |
Diluted weighted average shares outstanding (shares) | 21,293 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Successor [Member] | ||
Net income (loss) | $ 51,668 | |
Derivative instruments | ||
Comprehensive income (loss) before tax | 19 | |
Income tax benefit (provision) | 0 | |
Derivatives qualifying as hedges, adjustment, net of tax | 19 | |
Pension, postretirement and other post-employment benefits | ||
Comprehensive income (loss) before tax | 0 | |
Income tax benefit (provision) | 0 | |
Pension and other postretirement benefit plans, adjustment, net of tax | 0 | |
Available-for-sale securities | ||
Comprehensive income (loss) before tax | (387) | |
Income tax benefit (provision) | 0 | |
Available-for-sale securities adjustment, net of tax | (387) | |
Total other comprehensive income (loss) | (368) | |
Total comprehensive income (loss) | $ 51,300 | |
Predecessor [Member] | ||
Net income (loss) | $ (206,702) | |
Derivative instruments | ||
Comprehensive income (loss) before tax | (224) | |
Income tax benefit (provision) | 81 | |
Derivatives qualifying as hedges, adjustment, net of tax | (143) | |
Pension, postretirement and other post-employment benefits | ||
Comprehensive income (loss) before tax | (1,338) | |
Income tax benefit (provision) | 481 | |
Pension and other postretirement benefit plans, adjustment, net of tax | (857) | |
Available-for-sale securities | ||
Comprehensive income (loss) before tax | 2,903 | |
Income tax benefit (provision) | (1,043) | |
Available-for-sale securities adjustment, net of tax | 1,860 | |
Total other comprehensive income (loss) | 860 | |
Total comprehensive income (loss) | $ (205,842) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 347,580 | $ 305,372 |
Short term investments | 122,505 | 88,072 |
Restricted cash | 68,984 | 71,050 |
Trade accounts receivable | 150,399 | 184,483 |
Other receivables | 22,482 | 19,877 |
Inventories | 125,194 | 113,462 |
Other current assets | 74,063 | 96,306 |
Total current assets | 911,207 | 878,622 |
Property, plant and equipment, net | 1,027,288 | 1,053,603 |
Other assets | ||
Equity investments | 104,144 | 96,074 |
Other noncurrent assets | 102,277 | 108,298 |
Total other assets | 206,421 | 204,372 |
Total assets | 2,144,916 | 2,136,597 |
Current Liabilities | ||
Accounts payable | 103,130 | 95,953 |
Accrued expenses and other current liabilities | 172,898 | 205,240 |
Current maturities of debt | 7,898 | 11,038 |
Total current liabilities | 283,926 | 312,231 |
Long-term debt | 318,030 | 351,841 |
Asset retirement obligations | 339,865 | 337,227 |
Accrued pension benefits | 37,510 | 38,884 |
Accrued postretirement benefits other than pension | 101,786 | 101,445 |
Accrued workers’ compensation | 184,792 | 184,568 |
Other noncurrent liabilities | 77,301 | 63,824 |
Total liabilities | 1,343,210 | 1,390,020 |
Stockholders' equity | ||
Common stock, $0.01 par value, authorized 300,000 shares, issued 25,021 shares and 25,002 shares at March 31, 2017 and December 31, 2016, respectively | 250 | 250 |
Paid-in capital | 692,253 | 688,424 |
Retained earnings | 85,117 | 33,449 |
Accumulated other comprehensive income | 24,086 | 24,454 |
Total stockholders’ equity | 801,706 | 746,577 |
Total liabilities and stockholders’ equity | $ 2,144,916 | $ 2,136,597 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 25,021,000 | 25,002,000 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Financing activities | ||
Debt financing costs | $ (2,000) | $ (2,200) |
Cash and cash equivalents, beginning of period | 305,372 | |
Cash and cash equivalents, end of period | 347,580 | |
Successor [Member] | ||
Operating activities | ||
Net income (loss) | 51,668 | |
Adjustments to reconcile net loss to cash used in operating activities: | ||
Depreciation, depletion and amortization | 31,921 | |
Accretion on asset retirement obligations | 7,623 | |
Amortization of sales contracts, net | 14,690 | |
Prepaid royalties expensed | 2,281 | |
Deferred income taxes | 5,830 | |
Employee stock-based compensation expense | 2,426 | |
Gains on disposals and divestitures, net | (347) | |
Asset impairment and non-cash mine closure costs | 0 | |
Net loss resulting from early retirement of debt and debt restructuring | 2,030 | |
Non-cash bankruptcy reorganization items | 0 | |
Amortization relating to financing activities | 535 | |
Changes in: | ||
Receivables | 37,134 | |
Inventories | (11,732) | |
Accounts payable, accrued expenses and other current liabilities | (20,529) | |
Income taxes, net | (4,965) | |
Other | 6,964 | |
Cash provided by (used in) operating activities | 125,529 | |
Investing activities | ||
Capital expenditures | (5,950) | |
Minimum royalty payments | (63) | |
Proceeds from disposals and divestitures | 420 | |
Purchases of short term investments | (78,523) | |
Proceeds from sales of short term investments | 45,886 | |
Investments in and advances to affiliates, net | (7,905) | |
Withdrawals (deposits) of restricted cash | 2,066 | |
Cash used in investing activities | (44,069) | |
Financing activities | ||
Proceeds from issuance of term loan due 2024 | 298,500 | |
Payments to extinguish term loan due 2021 | (325,684) | |
Net payments on other debt | (2,810) | |
Debt financing costs | (7,228) | |
Net loss resulting from early retirement of debt and debt restructuring | (2,030) | |
Cash used in financing activities | (39,252) | |
Increase (decrease) in cash and cash equivalents | 42,208 | |
Cash and cash equivalents, beginning of period | 305,372 | |
Cash and cash equivalents, end of period | $ 347,580 | |
Predecessor [Member] | ||
Operating activities | ||
Net income (loss) | (206,702) | |
Adjustments to reconcile net loss to cash used in operating activities: | ||
Depreciation, depletion and amortization | 63,699 | |
Accretion on asset retirement obligations | 8,306 | |
Amortization of sales contracts, net | (833) | |
Prepaid royalties expensed | 1,286 | |
Deferred income taxes | (429) | |
Employee stock-based compensation expense | 1,003 | |
Gains on disposals and divestitures, net | 1 | |
Asset impairment and non-cash mine closure costs | 77,550 | |
Net loss resulting from early retirement of debt and debt restructuring | 2,213 | |
Non-cash bankruptcy reorganization items | (13,892) | |
Amortization relating to financing activities | 3,150 | |
Changes in: | ||
Receivables | 7,815 | |
Inventories | 734 | |
Accounts payable, accrued expenses and other current liabilities | 39,441 | |
Income taxes, net | (642) | |
Other | 7,202 | |
Cash provided by (used in) operating activities | (10,098) | |
Investing activities | ||
Capital expenditures | (5,926) | |
Minimum royalty payments | (71) | |
Proceeds from disposals and divestitures | 0 | |
Purchases of short term investments | (55,132) | |
Proceeds from sales of short term investments | 56,134 | |
Investments in and advances to affiliates, net | (2,156) | |
Withdrawals (deposits) of restricted cash | (12,108) | |
Cash used in investing activities | (19,259) | |
Financing activities | ||
Net payments on other debt | (5,410) | |
Debt financing costs | (18,403) | |
Net loss resulting from early retirement of debt and debt restructuring | (2,213) | |
Cash used in financing activities | (26,026) | |
Increase (decrease) in cash and cash equivalents | (55,383) | |
Cash and cash equivalents, beginning of period | 450,781 | |
Cash and cash equivalents, end of period | $ 395,398 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Arch Coal, Inc. ("Arch Coal") and its subsidiaries (the “Company”). Unless the context indicates otherwise, the terms “Arch” and the “Company” are used interchangeably in this Quarterly Report on Form 10-Q refer to both the Predecessor and Successor Company. The Company’s 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, Kentucky, 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 months ended March 31, 2017 are not necessarily indicative of results to be expected for the year ending December 31, 2017 . 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, 2016 included in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission. On January 11, 2016 (the “Petition Date”), Arch Coal and substantially all of its wholly owned domestic subsidiaries (the “Filing Subsidiaries” and, together with Arch Coal, the “Debtors”; the Debtors, solely following the effective date of the Plan, the “Reorganized Debtors”) filed voluntary petitions for reorganization (collectively, the “Bankruptcy Petitions”) under Chapter 11 of Title 11 of the U.S. Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Eastern District of Missouri (the “Court”). The Debtors’ Chapter 11 Cases (collectively, the “Chapter 11 Cases”) were jointly administered under the caption In re Arch Coal, Inc., et al. Case No. 16-40120 (lead case). During the Chapter 11 Cases, each Debtor operated its business as a “debtor in possession” under the jurisdiction of the Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Court. Upon emergence from bankruptcy on October 5, 2016, Arch Coal applied the provisions of fresh start accounting effective October 1, 2016 which resulted in Arch becoming a new entity for financial reporting purposes. Accordingly, the consolidated financial statements and accompanying footnotes on or after October 1, 2016 are not comparable to the consolidated financial statements prior to that date. References to “Successor” in the consolidated financial statements and footnotes are in reference to reporting dates on or after October 2, 2016; references to “Predecessor” in the consolidated financial statements and footnotes are in reference to reporting dates through October 1, 2016 which includes the impact of the Plan provisions and the application of fresh start accounting. |
Accounting Policies
Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies Recently Adopted Accounting Guidance In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Compensation – Stock Compensation (Topic 718) ("ASU 2016-09"). ASU 2016-09 identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. The Company adopted all provisions of this new accounting standard in the first quarter of 2017 and changed its forfeiture policy to recognizing the impact of forfeitures when they occur from estimating expected forfeitures in determining stock-based compensation expense. There was no material impact to the Company's financial statements. Recent Accounting Guidance Issued Not Yet Effective In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 is a comprehensive revenue recognition standard that will supersede nearly all existing revenue recognition guidance under current U.S. GAAP and replace it with a principle based approach for determining revenue recognition. ASU 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also will require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted only in annual reporting periods beginning after December 15, 2016, including interim periods therein. Entities will be able to transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company’s primary source of revenue is from the sale of coal through both short-term and long-term contracts with utilities, industrial customers and steel producers whereby revenue is currently recognized when risk of loss has passed to the customer. Upon adoption of this new standard, the Company believes that the timing of revenue recognition related to our coal sales will remain consistent with our current practice. The Company is currently evaluating other revenue streams to determine the potential impact related to the adoption of the standard, as well as potential disclosures required by the standard. The Company will be adopting the standard under the modified retrospective approach. In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits (Topic 715) Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. ASU 2017-07 changes the income statement presentation of defined benefit plan expense by requiring separation between operating expense (service cost component) and non-operating expense (all other components, including interest cost, amortization of prior service cost, curtailments and settlements, etc.). The operating expense component is reported with similar compensation costs while the non-operating components are reported in Nonoperating expense. In addition, only the service cost component is eligible for capitalization as part of an asset such as inventory or property, plant and equipment. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements. The ASU is effective for public companies for fiscal years beginning after December 15, 2017, and interim periods therein; early adoption is permitted. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following items are included in accumulated other comprehensive income ("AOCI"): Pension, Postretirement and Other Accumulated Post- Other Derivative Employment Available-for- Comprehensive Instruments Benefits Sale Securities Income (In thousands) Balance at December 31, 2016 $ — $ 24,067 $ 387 $ 24,454 Unrealized gains (losses) 19 — (55 ) (36 ) Amounts reclassified from AOCI — — (332 ) (332 ) Balance at March 31, 2017 $ 19 $ 24,067 $ — $ 24,086 The following amounts were reclassified out of AOCI: Successor Predecessor Line Item in the Condensed Consolidated Statement of Operations Details About AOCI Components Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 (In thousands) Derivative instruments $ — $ 226 Revenues — (82 ) Provision for (benefit from) income taxes $ — $ 144 Net of tax Pension, postretirement and other post-employment benefits Amortization of prior service credits (1) $ — $ 2,672 Amortization of actuarial gains (losses), net (1) — (1,334 ) — 1,338 — (481 ) Provision for (benefit from) income taxes $ — $ 857 Net of tax Available-for-sale securities $ 332 $ (2,895 ) Interest and investment income — 1,038 Provision for (benefit from) income taxes $ 332 $ (1,857 ) Net of tax 1 Production-related benefits and workers’ compensation costs are included in inventoriable production costs. |
Reorganization items, net
Reorganization items, net | 3 Months Ended |
Mar. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Reorganization items, net | Reorganization items, net In accordance with Accounting Codification Standard 852, “Reorganizations,” the statement of operations shall portray the results of operations of the reporting entity while it is in Chapter 11. Revenues, expenses (including professional fees), realized gains and losses, and provisions for losses resulting from reorganization and restructuring of the business shall be reported separately as reorganization items. During the three months ended March 31, 2017 , the Company recorded a charge of $2.8 million in “Reorganization items, net” comprised of professional fee expense of $2.8 million . Net cash paid for “Reorganization items, net” totaled $3.7 million during the three months ended March 31, 2017 . During the three months ended March 31, 2016 , the Company recorded a charge of $3.9 million in “Reorganization items, net” comprised of professional fee expense of $17.8 million , partially offset by non-cash gains on rejected contracts of $13.9 million . Net cash paid for “Reorganization items, net” totaled $1.5 million during the three months ended March 31, 2016 . |
Asset Impairments and Mine Clos
Asset Impairments and Mine Closure Costs | 3 Months Ended |
Mar. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Asset Impairment and Mine Closure Costs | Asset Impairment and Mine Closure Costs During the first quarter of 2016 , the Company recorded $85.5 million of “Asset impairment and mine closure costs” in the Condensed Consolidated Statements of Operations. The amount included the following: a $74.1 million impairment of coal reserves and surface land in Kentucky that are being leased to a mining company that idled its mining operations related to those reserves during the quarter; $5.1 million of severance expense related to headcount reductions at Company operations; $3.4 million related to an impairment charge on the portion of an advance royalty balance on a reserve base mined at the Company’s Mountain Laurel operation that was no longer deemed recoupable; and $2.9 million related to an other-than-temporary-impairment charge on an available-for-sale security. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following: March 31, December 31, 2017 2016 (In thousands) Coal $ 49,066 $ 37,268 Repair parts and supplies 76,128 76,194 $ 125,194 $ 113,462 The repair parts and supplies are stated net of an allowance for slow-moving and obsolete inventories of $0.1 million at March 31, 2017 and $0.0 million at December 31, 2016 . |
Investments in Available-for-Sa
Investments in Available-for-Sale Securities | 3 Months Ended |
Mar. 31, 2017 | |
Available-for-sale Securities [Abstract] | |
Investments in Available-for-Sale Securities | Investments in Available-for-Sale Securities The Company has invested in marketable debt securities, primarily highly liquid investment grade corporate bonds. These investments are held in the custody of a major financial institution. These securities, along with the Company’s investments in marketable equity securities, are classified as available-for-sale securities and, accordingly, the unrealized gains and losses are recorded through other comprehensive income. The Company’s investments in available-for-sale marketable securities are as follows: March 31, 2017 Balance Sheet Classification Gross Unrealized Fair Short-Term Other Cost Basis Gains Losses Value Investments Assets (In thousands) Available-for-sale: U.S. treasury securities $ 18,926 $ 12 $ — $ 18,938 $ 18,938 $ — Corporate notes and bonds 103,639 21 (93 ) 103,567 103,567 — Total Investments $ 122,565 $ 33 $ (93 ) $ 122,505 $ 122,505 $ — December 31, 2016 Balance Sheet Classification Gross Unrealized Fair Short-Term Other Cost Basis Gains Losses Value Investments Assets (In thousands) Available-for-sale: Corporate notes and bonds $ 88,161 $ — $ (89 ) $ 88,072 $ 88,072 $ — Equity securities 1,749 388 — 2,137 — 2,137 Total Investments $ 89,910 $ 388 $ (89 ) $ 90,209 $ 88,072 $ 2,137 The aggregate fair value of investments with unrealized losses that were owned for less than a year was $59.4 million and $47.6 million at March 31, 2017 and December 31, 2016 , respectively. The aggregate fair value of investments with unrealized losses that were owned for over a year was $16.0 million and $40.4 million at March 31, 2017 and December 31, 2016 , respectively. The unrealized losses in the Company’s portfolio at March 31, 2017 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 March 31, 2017 have maturity dates ranging from the second quarter of 2017 through the third quarter of 2018 . 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. |
Sales Contracts
Sales Contracts | 3 Months Ended |
Mar. 31, 2017 | |
Acquired Sales Contracts [Abstract] | |
Sales Contracts | Sales Contracts The sales contracts reflected in the consolidated balance sheets are as follows: March 31, 2017 December 31, 2016 Assets Liabilities Net Total Assets Liabilities Net Total (In thousands) (In thousands) Original fair value $ 97,196 $ 31,742 $ 97,196 $ 31,742 Accumulated amortization (44,843 ) (29,356 ) (25,625 ) (24,829 ) Total $ 52,353 $ 2,386 $ 49,967 $ 71,571 $ 6,913 $ 64,658 Balance Sheet classification: Other current $ 43,238 $ 817 $ 59,702 $ 5,114 Other noncurrent $ 9,115 $ 1,569 $ 11,869 $ 1,799 The Company anticipates amortization of sales contracts, based upon expected shipments in the next five years, to be an expense of approximately $57.3 million in 2017, $11.5 million in 2018, income of $0.6 million in 2019, and income of $0.1 million in 2020 and 2021. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives 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 38 to 44 million gallons of diesel fuel for use in its operations during 2017 . To protect the Company’s cash flows from increases in the price of diesel fuel for its operations, the Company uses forward physical diesel purchase contracts and purchased heating oil call options. At March 31, 2017 , the Company had protected the price of approximately 75% of its expected diesel fuel purchases for the remainder of 2017 at an average strike price of $1.77 per gallon. Additionally, the Company has protected approximately 12% of its expected 2018 purchases with call options with an average strike price of $1.92 per gallon. At March 31, 2017 , the Company had outstanding heating oil call options for approximately 30 million gallons for the purpose of managing the price risk associated with future diesel purchases. 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 March 31, 2017 , the Company held derivatives for risk management purposes that are expected to settle in the following years: (Tons in thousands) 2017 2018 Total Coal sales 405 — 405 Coal purchases 360 — 360 The Company has also entered into a nominal 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. Additionally, the Company has also entered into a nominal quantity of foreign currency put options protecting for decreases in the Australian to United States dollar exchange rate, which could impact metallurgical 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 immaterial during the remainder of 2017 and $0.6 million of losses during the remainder of 2018 . 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 Company’s 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: March 31, 2017 December 31, 2016 Fair Value of Derivatives Asset Liability Asset Liability (In thousands) Derivative Derivative Derivative Derivative Derivatives Designated as Hedging Instruments Coal $ 9 $ — $ — $ (15 ) Derivatives Not Designated as Hedging Instruments Heating oil -- diesel purchases 1,418 — 4,646 — Coal -- held for trading purposes 43,157 (43,781 ) 68,948 (68,740 ) Coal -- risk management 193 (271 ) 475 (580 ) Natural gas — — 86 (13 ) Total 44,768 (44,052 ) 74,155 (69,333 ) Total derivatives 44,777 (44,052 ) 74,155 (69,348 ) Effect of counterparty netting (43,359 ) 43,359 (69,247 ) 69,247 Net derivatives as classified in the balance sheets $ 1,418 $ (693 ) $ 725 $ 4,908 $ (101 ) $ 4,807 March 31, 2017 December 31, 2016 Net derivatives as reflected on the balance sheets (in thousands) Heating oil and coal Other current assets $ 1,418 $ 4,908 Coal Accrued expenses and other current liabilities (693 ) (101 ) $ 725 $ 4,807 The Company had a current asset for the right to reclaim cash collateral of $4.8 million at March 31, 2017 and $2.8 million at December 31, 2016 , respectively. These amounts are not included with the derivatives presented in the table above and are included in “other current assets” 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 March 31, Gain (Loss) Recognized in Other Comprehensive Income(Effective Portion) Gains (Losses) Reclassified from Other Comprehensive Income into Income (Effective Portion) Successor Predecessor Successor Predecessor 2017 2016 2017 2016 Coal sales (1) $ 220 $ 13 $ — $ 1,369 Coal purchases (2) (201 ) (11 ) — (1,143 ) Totals $ 19 $ 2 $ — $ 226 No ineffectiveness or amounts excluded from effectiveness testing relating to the Company’s cash flow hedging relationships were recognized in the results of operations in the three month periods ended March 31, 2017 and 2016 . Derivatives Not Designated as Hedging Instruments (in thousands) Three Months Ended March 31, Gain (Loss) Recognized Successor Predecessor 2017 2016 Coal — unrealized (3) $ 26 $ (1,115 ) Coal — realized (4) $ — $ 163 Natural gas — unrealized (3) $ (469 ) $ (469 ) Heating oil — diesel purchases (4) $ (3,578 ) $ (443 ) Foreign currency (4) $ — $ (171 ) ____________________________________________________________ Location in statement of operations: (1) — Revenues (2) — Cost of sales (3) — Change in fair value of coal derivatives and coal trading activities, net (4) — Other operating (income) expense, net Based on fair values at March 31, 2017 , 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 immaterial. Related to its trading portfolio, the Company recognized net unrealized and realized losses of $0.7 million and net unrealized and realized gains of $0.1 million during the three months ended March 31, 2017 and 2016 , respectively. Gains and losses from trading activities are included in the caption “Change in fair value of coal derivatives and coal trading activities, net” in the accompanying Condensed Consolidated Statements of Operations, and are not included in the previous tables reflecting the effects of derivatives on measures of financial performance. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following: March 31, December 31, 2017 2016 (In thousands) Payroll and employee benefits $ 41,663 $ 58,468 Taxes other than income taxes 88,418 92,733 Interest 202 8,032 Acquired sales contracts 817 5,114 Workers’ compensation 16,046 15,184 Asset retirement obligations 19,340 19,515 Other 6,412 6,194 $ 172,898 $ 205,240 |
Debt and Financing Arrangements
Debt and Financing Arrangements | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt and Financing Arrangements | Debt and Financing Arrangements March 31, December 31, 2017 2016 (In thousands) Term loan due 2024 ($300.0 million face value) 298,512 — Term loan due 2021 ($325.7 million face value) — 325,684 Other 34,424 37,195 Debt issuance costs (7,008 ) — 325,928 362,879 Less: current maturities of debt 7,898 11,038 Long-term debt $ 318,030 $ 351,841 On March 7, 2017, the Company entered into a new senior secured term loan credit agreement in an aggregate principal amount of $300 million (the “New Term Loan Debt Facility) with Credit Suisse AG, Cayman Islands Branch, as administrative agent and collateral agent (in such capacities, the “Agent”), and the other financial institutions from time to time party thereto (collectively, the “Lenders”). The New Term Loan Debt Facility was issued at 99.50% of the face amount and will mature on March 7, 2024. Borrowings under the New Term Loan Debt Facility bear interest at a per annum rate equal to, at the Company’s option, either (i) a London interbank offered rate plus an applicable margin of 4% , subject to a 1% LIBOR floor (the “LIBOR Rate”), or (ii) a base rate plus an applicable margin of 3% . Interest payments will be payable in cash. The term loans provided under the New Term Loan Debt Facility (the “Term Loans”) are subject to quarterly principal amortization payments in an amount equal to $750,000 . The New Term Loan Debt Facility is guaranteed by all existing and future wholly owned domestic subsidiaries of the Company (collectively, the “Subsidiary Guarantors” and, together with Arch Coal, the “Loan Parties”), 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 therefor shall be made with reimbursement for any funding losses and redeployment costs of the Lenders resulting therefrom. The New 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 New Term Loan Debt Facility) and (ii) non-ordinary course asset sales or dispositions, subject to customary thresholds, exceptions and reinvestment rights. The New Term Loan Debt Facility contains customary affirmative covenants and representations. The New 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 New Term Loan Debt Facility does not contain any financial maintenance covenant. The New 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. On the effective date of the New Term Loan Debt Facility, all outstanding obligations under the Company’s previously existing term loan credit agreement, dated as of October 5, 2016, among the Company, as borrower, the lender party thereto and Wilmington Trust, National Association, as administrative agent and collateral agent (the “Previous First Lien Debt Facility”), other than indemnification and other contingent obligations, were paid in cash in full and the related transaction documents were terminated (other than with respect to certain provisions that customarily survive termination); there was no gain or loss recognized on the extinguishment of the previously existing term loan credit agreement. All liens on property of the Company and the guarantors thereunder arising out of or related to the Previous First Lien Debt Facility were terminated. Financing Costs The Company paid financing costs of $7.2 million during the three months ended March 31, 2017 related to the issuance of the New Term Loan Debt facility discussed above. These issuance costs were capitalized and will be amortized using the effective interest method over the term of the facility. During the three months ended March 31, 2016 , the Company paid $18.4 million primarily related to the Superpriority Secured Debtor-in-Possession Credit Agreement related to the Company’s bankruptcy filing. The Company incurred $2.0 million of legal and financial advisory fees associated with debt refinancing activities during the three months ended March 31, 2017 ; $1.0 million relates to fees associated with the extinguishment of the “Previous First Lien Debt Facility” while the remaining amount relates to financing fees incurred from our initial efforts to replace the existing accounts receivable securitization facility. The Company also incurred $2.2 million in debt restructuring costs during the three months ended March 31, 2016 related to debt restructuring activities prior to the Company’s Chapter 11 filing.. Contractual Interest Expense The Company has recorded interest expense of $9.4 million for the three months ended March 31, 2017 compared to $44.5 million for the three months ended March 31, 2016 , respectively. The reduction in interest expense in the current year is due to the Company’s bankruptcy filing during the prior year period. The contractual interest expense disclosed represents interest expense that the Company was obligated to pay prior to the bankruptcy filing. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes A reconciliation of the statutory federal income tax provision (benefit) at the statutory rate to the actual provision for (benefit from) income taxes follows: Successor Predecessor Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 (In thousands) Income tax provision (benefit) at statutory rate $ 18,378 $ (72,735 ) Percentage depletion allowance (7,039 ) (25,667 ) State taxes, net of effect of federal taxes 483 (4,490 ) Change in valuation allowance (11,902 ) 100,562 Other, net 920 1,219 $ 840 $ (1,111 ) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements 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. · Level 1 is defined as observable inputs such as quoted prices in active markets for identical assets. Level 1 assets include available-for-sale equity securities, U.S. Treasury securities, and coal futures that are submitted for clearing on the New York Mercantile Exchange. · 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 Company’s level 2 assets and liabilities include U.S. government agency securities and commodity contracts (coal and heating oil) with fair values derived from quoted prices in over-the-counter markets or from prices received from direct broker quotes. · 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 Company’s 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 March 31, 2017 . The table below sets forth, by level, the Company’s financial assets and liabilities that are recorded at fair value in the accompanying condensed consolidated balance sheet: March 31, 2017 Total Level 1 Level 2 Level 3 (In thousands) Assets: Investments in marketable securities $ 122,505 $ 18,938 $ 103,567 $ — Derivatives 1,418 — — 1,418 Total assets $ 123,923 $ 18,938 $ 103,567 $ 1,418 Liabilities: Derivatives $ 693 $ 644 $ — $ 49 The Company’s 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. Three Months Ended March 31, 2017 (In thousands) Balance, beginning of period $ 4,537 Realized and unrealized gains recognized in earnings, net (4,068 ) Purchases 1,395 Issuances (182 ) Settlements (313 ) Ending balance $ 1,369 Net unrealized losses of $2.8 million were recognized in the Condensed Consolidated Statement of Operations within Other operating income, net during the three months ended March 31, 2017 related to Level 3 financial instruments held on March 31, 2017 . Fair Value of Long-Term Debt At March 31, 2017 and December 31, 2016 , the fair value of the Company’s debt, including amounts classified as current, was $334.4 million and $362.9 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 (loss) per common shar
Earnings (loss) per common share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings (loss) per common share | Earnings (loss) per Common Share The Company computes basic net income per share using the weighted average number of common shares outstanding during the period. Diluted net income 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 following table provides the basis for basic and diluted earnings (loss) per share by reconciling the numerators and denominators of the computations: Successor Predecessor March 31, 2017 March 31, 2016 (In Thousands) Weighted average shares outstanding: Basic weighted average shares outstanding 25,008 21,293 Effect of dilutive securities 400 — Diluted weighted average shares outstanding 25,408 21,293 |
Workers' Compensation Expense
Workers' Compensation Expense | 3 Months Ended |
Mar. 31, 2017 | |
Compensation Related Costs [Abstract] | |
Workers' Compensation Expense | Workers Compensation Expense 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 workers’ compensation statutes for occupational disease benefits. The occupational disease benefit obligation represents the present value of the of the actuarially computed present and future liabilities for such benefits over the employees’ applicable years of service. In addition, the Company is liable for workers’ 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 workers’ compensation claims are insured with varying retentions/deductibles, or through state-sponsored workers’ compensation programs. Workers’ compensation expense consists of the following components: Successor Predecessor Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 (In thousands) Self-insured occupational disease benefits: Service cost $ 1,558 $ 1,105 Interest cost 1,169 1,057 Net amortization — 1,141 Total occupational disease $ 2,727 $ 3,303 Traumatic injury claims and assessments 2,878 2,967 Total workers’ compensation expense $ 5,605 $ 6,270 |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2017 | |
Pension and Other Postretirement Benefit Expense [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The following table details the components of pension benefit costs: Successor Predecessor Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 (In thousands) Interest cost 2,991 3,338 Expected return on plan assets (4,497 ) (4,538 ) Amortization of other actuarial losses — 757 Net benefit credit $ (1,506 ) $ (443 ) The following table details the components of other postretirement benefit costs (credits): Successor Predecessor Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 (In thousands) Service cost $ 170 $ 160 Interest cost 1,058 1,134 Amortization of prior service credits — (2,673 ) Amortization of other actuarial losses (gains) — (566 ) Net benefit cost (credit) $ 1,228 $ (1,945 ) |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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. As of March 31, 2017 and December 31, 2016 , the Company had accrued $1.3 million and $2.2 million , respectively, for all legal matters, of which all amounts are classified as current. The ultimate resolution of any such legal matter could result in outcomes which may be materially different from amounts the Company has accrued for such matters. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company’s 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 Company’s marketing and operations management. Mining operations are evaluated based on Adjusted EBITDAR, per-ton cash operating costs (defined as including all mining costs except depreciation, depletion, amortization, accretion on asset retirements obligations, and pass-through transportation expenses), and on other non-financial measures, such as safety and environmental performance. Adjusted EBITDAR is not a measure of financial performance in accordance with generally accepted accounting principles, and items excluded from Adjusted EBITDAR are significant in understanding and assessing our financial condition. Therefore, Adjusted EBITDAR should not be considered in isolation, nor as an alternative to net income, income 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 EBITDAR 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 Company’s operating performance. Investors should be aware that the Company’s presentation of Adjusted EBITDAR 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 Company’s primary thermal operations in Wyoming; the Metallurgical (MET) segment, containing the Company’s metallurgical operations in West Virginia, Kentucky, and Virginia, and the Other Thermal segment containing the Company’s supplementary thermal operations in Colorado, Illinois, and West Virginia. Periods presented in this note have been recast for comparability. Operating segment results for the Successor period, the three months ended March 31, 2017 , and the Predecessor period, the three months ended March 31, 2016 , are presented below. The Company measures its segments based on “adjusted earnings before interest, taxes, depreciation, depletion, amortization, accretion on asset retirements obligations, and reorganization items, net (Adjusted EBITDAR).” Adjusted EBITDAR does not reflect mine closure or impairment costs, since those are not reflected in the operating income reviewed by management. See Note 5 , “ Asset Impairment and Mine Closure Costs ” for discussion of these costs. 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. PRB MET Other Thermal Corporate, Other and Eliminations Consolidated Successor Period (in thousands) Three Months Ended March 31, 2017 Revenues $ 273,428 $ 225,582 $ 101,906 $ 59 $ 600,975 Adjusted EBITDAR 48,006 68,310 27,242 (23,060 ) 120,498 Depreciation, depletion and amortization 9,510 18,764 3,200 447 31,921 Accretion on asset retirement obligation 5,040 528 540 1,515 7,623 Capital expenditures 128 4,610 741 471 5,950 Predecessor Period Three Months Ended March 31, 2016 Revenues $ 223,122 $ 136,583 $ 56,132 $ 12,269 $ 428,106 Adjusted EBITDAR 12,728 6,352 3,151 (23,951 ) (1,720 ) Depreciation, depletion and amortization 32,760 19,345 9,891 1,703 63,699 Accretion on asset retirement obligation 5,647 588 663 1,408 8,306 Capital expenditures 10 3,604 1,945 367 5,926 A reconciliation of adjusted EBITDAR to consolidated loss before income taxes follows: Successor Predecessor Three Months Ended March 31, Three Months Ended March 31, 2017 2016 (In thousands) Adjusted EBITDAR $ 120,498 $ (1,720 ) Depreciation, depletion and amortization (31,921 ) (63,699 ) Accretion on asset retirement obligations (7,623 ) (8,306 ) Amortization of sales contracts, net (14,690 ) 833 Asset impairment and mine closure costs — (85,520 ) Interest expense, net (8,898 ) (43,313 ) Net loss resulting from early retirement of debt and debt restructuring (2,030 ) (2,213 ) Reorganization items, net (2,828 ) (3,875 ) Income (loss) before income taxes $ 52,508 $ (207,813 ) |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events New Inventory Facility On April 27, 2017, the Company and certain subsidiaries of Arch Coal entered into a new senior secured inventory-based revolving credit facility in an aggregate principal amount of $40 million (the “New Inventory Facility”) with Regions Bank (“Regions”) as administrative agent and collateral agent (in such capacities, the “Agent”), as lender and swingline lender (in such capacities, the “ Lender ”) and as letter of credit issuer. Availability under the New 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 Coal’s Eligible Cash (defined in the New Inventory Facility), subject to reduction for reserves imposed by Regions. The commitments under the New Inventory Facility will terminate on the date that is the earliest to occur of (i) the third anniversary of the Inventory Facility Closing Date, (ii) the date, if any, that is 364 days following the first day that Liquidity (defined in the New 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 (iii) 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 New Inventory Facility bear interest at a per annum rate equal to, at the option of Arch Coal, either at the base rate or the London interbank offered rate plus, in each case, a margin ranging from 2.25% to 2.50% (in the case of LIBOR loans) and 1.25% to 1.50% (in the case of base rate loans) determined using a Liquidity-based grid. Letters of credit under the New 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 Coal, subject to customary exceptions, will either constitute co-borrowers under or guarantors of the New Inventory Facility (collectively with Arch Coal, the “Loan Parties”). The New Inventory Facility is secured by first priority security interests in the ABL Priority Collateral (defined in the New 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 Coal has the right to prepay borrowings under the New 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 therefor shall be made with reimbursement for any funding losses and redeployment costs of the Lender resulting therefrom. The New 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 Coal’s term loan facility) and reinvestment rights. The New 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 New Inventory Facility also includes a requirement to maintain Liquidity equal to or exceeding $175 million at all times. Securitization Facility On April 27, 2017, 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 Coal (“Arch Receivable”) (the “Extended Securitization Facility”), which supports the issuance of letters of credit and requests for cash advances. The amendment to the Extended Securitization Facility decreases the borrowing capacity from $200 million to $160 million and extends the maturity date to the date that is three years after the Securitization Facility Closing Date. 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) three years from the Securitization Facility Closing Date, (ii) if the Liquidity (defined in the Extended Securitization Facility and consistent with the definition in the New 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 Coal and certain of Arch Coal’s 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. Share Repurchase and Common Stock Dividend On April 27, 2017, the board of directors of Arch Coal authorized a new share repurchase program for up to $300 million of its common stock, effective April 27, 2017. The timing of any purchases, and the ultimate number of shares to be purchased, will depend on market conditions. The shares will be acquired in the open market or through private transactions in accordance with Securities and Exchange Commission requirements. The Company had 25,021,079 common shares outstanding as of April 27, 2017. The purchases under the new share repurchase program may be made in the open market or through privately negotiated transactions from time to time and in accordance with applicable laws, rules and regulations. Repurchases may also be made pursuant to a Rule 10b5-1 plan, which, if adopted by Company, would permit shares to be repurchased in accordance with pre-determined criteria when the Company might otherwise be prohibited from doing so under insider trading laws or because of self-imposed trading blackout periods. The share repurchase program may be amended, suspended or discontinued at any time and does not commit the Company to repurchase shares of its common stock. The actual number and value of the shares to be purchased will depend on the performance of the Company’s stock price and other market conditions. On April 27, 2017, the board of directors also authorized a new quarterly common stock cash dividend of $0.35 per share. The dividend will be paid on June 15, 2017 to stockholders of record on May 31, 2017. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 months ended March 31, 2017 are not necessarily indicative of results to be expected for the year ending December 31, 2017 . 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, 2016 included in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission. On January 11, 2016 (the “Petition Date”), Arch Coal and substantially all of its wholly owned domestic subsidiaries (the “Filing Subsidiaries” and, together with Arch Coal, the “Debtors”; the Debtors, solely following the effective date of the Plan, the “Reorganized Debtors”) filed voluntary petitions for reorganization (collectively, the “Bankruptcy Petitions”) under Chapter 11 of Title 11 of the U.S. Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Eastern District of Missouri (the “Court”). The Debtors’ Chapter 11 Cases (collectively, the “Chapter 11 Cases”) were jointly administered under the caption In re Arch Coal, Inc., et al. Case No. 16-40120 (lead case). During the Chapter 11 Cases, each Debtor operated its business as a “debtor in possession” under the jurisdiction of the Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Court. Upon emergence from bankruptcy on October 5, 2016, Arch Coal applied the provisions of fresh start accounting effective October 1, 2016 which resulted in Arch becoming a new entity for financial reporting purposes. Accordingly, the consolidated financial statements and accompanying footnotes on or after October 1, 2016 are not comparable to the consolidated financial statements prior to that date. References to “Successor” in the consolidated financial statements and footnotes are in reference to reporting dates on or after October 2, 2016; references to “Predecessor” in the consolidated financial statements and footnotes are in reference to reporting dates through October 1, 2016 which includes the impact of the Plan provisions and the application of fresh start accounting. |
Recent Adopted Accounting Guidance and Recent Accounting Guidance Issued Not Yet Effective | Recently Adopted Accounting Guidance In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Compensation – Stock Compensation (Topic 718) ("ASU 2016-09"). ASU 2016-09 identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. The Company adopted all provisions of this new accounting standard in the first quarter of 2017 and changed its forfeiture policy to recognizing the impact of forfeitures when they occur from estimating expected forfeitures in determining stock-based compensation expense. There was no material impact to the Company's financial statements. Recent Accounting Guidance Issued Not Yet Effective In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 is a comprehensive revenue recognition standard that will supersede nearly all existing revenue recognition guidance under current U.S. GAAP and replace it with a principle based approach for determining revenue recognition. ASU 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also will require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted only in annual reporting periods beginning after December 15, 2016, including interim periods therein. Entities will be able to transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company’s primary source of revenue is from the sale of coal through both short-term and long-term contracts with utilities, industrial customers and steel producers whereby revenue is currently recognized when risk of loss has passed to the customer. Upon adoption of this new standard, the Company believes that the timing of revenue recognition related to our coal sales will remain consistent with our current practice. The Company is currently evaluating other revenue streams to determine the potential impact related to the adoption of the standard, as well as potential disclosures required by the standard. The Company will be adopting the standard under the modified retrospective approach. In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits (Topic 715) Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. ASU 2017-07 changes the income statement presentation of defined benefit plan expense by requiring separation between operating expense (service cost component) and non-operating expense (all other components, including interest cost, amortization of prior service cost, curtailments and settlements, etc.). The operating expense component is reported with similar compensation costs while the non-operating components are reported in Nonoperating expense. In addition, only the service cost component is eligible for capitalization as part of an asset such as inventory or property, plant and equipment. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements. |
Accumulated Other Comprehensi27
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following items are included in accumulated other comprehensive income ("AOCI"): Pension, Postretirement and Other Accumulated Post- Other Derivative Employment Available-for- Comprehensive Instruments Benefits Sale Securities Income (In thousands) Balance at December 31, 2016 $ — $ 24,067 $ 387 $ 24,454 Unrealized gains (losses) 19 — (55 ) (36 ) Amounts reclassified from AOCI — — (332 ) (332 ) Balance at March 31, 2017 $ 19 $ 24,067 $ — $ 24,086 |
Schedule of Comprehensive Income Reclassifications | The following amounts were reclassified out of AOCI: Successor Predecessor Line Item in the Condensed Consolidated Statement of Operations Details About AOCI Components Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 (In thousands) Derivative instruments $ — $ 226 Revenues — (82 ) Provision for (benefit from) income taxes $ — $ 144 Net of tax Pension, postretirement and other post-employment benefits Amortization of prior service credits (1) $ — $ 2,672 Amortization of actuarial gains (losses), net (1) — (1,334 ) — 1,338 — (481 ) Provision for (benefit from) income taxes $ — $ 857 Net of tax Available-for-sale securities $ 332 $ (2,895 ) Interest and investment income — 1,038 Provision for (benefit from) income taxes $ 332 $ (1,857 ) Net of tax 1 Production-related benefits and workers’ compensation costs are included in inventoriable production costs. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following: March 31, December 31, 2017 2016 (In thousands) Coal $ 49,066 $ 37,268 Repair parts and supplies 76,128 76,194 $ 125,194 $ 113,462 |
Investments in Available-for-29
Investments in Available-for-Sale Securities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Available-for-sale Securities [Abstract] | |
Available-for-sale Securities | The Company’s investments in available-for-sale marketable securities are as follows: March 31, 2017 Balance Sheet Classification Gross Unrealized Fair Short-Term Other Cost Basis Gains Losses Value Investments Assets (In thousands) Available-for-sale: U.S. treasury securities $ 18,926 $ 12 $ — $ 18,938 $ 18,938 $ — Corporate notes and bonds 103,639 21 (93 ) 103,567 103,567 — Total Investments $ 122,565 $ 33 $ (93 ) $ 122,505 $ 122,505 $ — December 31, 2016 Balance Sheet Classification Gross Unrealized Fair Short-Term Other Cost Basis Gains Losses Value Investments Assets (In thousands) Available-for-sale: Corporate notes and bonds $ 88,161 $ — $ (89 ) $ 88,072 $ 88,072 $ — Equity securities 1,749 388 — 2,137 — 2,137 Total Investments $ 89,910 $ 388 $ (89 ) $ 90,209 $ 88,072 $ 2,137 |
Sales Contracts (Tables)
Sales Contracts (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Acquired Sales Contracts [Abstract] | |
Schedule of Sales Contracts | The sales contracts reflected in the consolidated balance sheets are as follows: March 31, 2017 December 31, 2016 Assets Liabilities Net Total Assets Liabilities Net Total (In thousands) (In thousands) Original fair value $ 97,196 $ 31,742 $ 97,196 $ 31,742 Accumulated amortization (44,843 ) (29,356 ) (25,625 ) (24,829 ) Total $ 52,353 $ 2,386 $ 49,967 $ 71,571 $ 6,913 $ 64,658 Balance Sheet classification: Other current $ 43,238 $ 817 $ 59,702 $ 5,114 Other noncurrent $ 9,115 $ 1,569 $ 11,869 $ 1,799 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Price Risk Derivatives | At March 31, 2017 , the Company held derivatives for risk management purposes that are expected to settle in the following years: (Tons in thousands) 2017 2018 Total Coal sales 405 — 405 Coal purchases 360 — 360 |
Disclosure of Fair Value of Derivatives | The fair value and location of derivatives reflected in the accompanying Condensed Consolidated Balance Sheets are as follows: March 31, 2017 December 31, 2016 Fair Value of Derivatives Asset Liability Asset Liability (In thousands) Derivative Derivative Derivative Derivative Derivatives Designated as Hedging Instruments Coal $ 9 $ — $ — $ (15 ) Derivatives Not Designated as Hedging Instruments Heating oil -- diesel purchases 1,418 — 4,646 — Coal -- held for trading purposes 43,157 (43,781 ) 68,948 (68,740 ) Coal -- risk management 193 (271 ) 475 (580 ) Natural gas — — 86 (13 ) Total 44,768 (44,052 ) 74,155 (69,333 ) Total derivatives 44,777 (44,052 ) 74,155 (69,348 ) Effect of counterparty netting (43,359 ) 43,359 (69,247 ) 69,247 Net derivatives as classified in the balance sheets $ 1,418 $ (693 ) $ 725 $ 4,908 $ (101 ) $ 4,807 March 31, 2017 December 31, 2016 Net derivatives as reflected on the balance sheets (in thousands) Heating oil and coal Other current assets $ 1,418 $ 4,908 Coal Accrued expenses and other current liabilities (693 ) (101 ) $ 725 $ 4,807 |
Effects of Derivatives on Measures of Financial Performance | The effects of derivatives on measures of financial performance are as follows: Derivatives used in Cash Flow Hedging Relationships (in thousands) Three Months Ended March 31, Gain (Loss) Recognized in Other Comprehensive Income(Effective Portion) Gains (Losses) Reclassified from Other Comprehensive Income into Income (Effective Portion) Successor Predecessor Successor Predecessor 2017 2016 2017 2016 Coal sales (1) $ 220 $ 13 $ — $ 1,369 Coal purchases (2) (201 ) (11 ) — (1,143 ) Totals $ 19 $ 2 $ — $ 226 No ineffectiveness or amounts excluded from effectiveness testing relating to the Company’s cash flow hedging relationships were recognized in the results of operations in the three month periods ended March 31, 2017 and 2016 . Derivatives Not Designated as Hedging Instruments (in thousands) Three Months Ended March 31, Gain (Loss) Recognized Successor Predecessor 2017 2016 Coal — unrealized (3) $ 26 $ (1,115 ) Coal — realized (4) $ — $ 163 Natural gas — unrealized (3) $ (469 ) $ (469 ) Heating oil — diesel purchases (4) $ (3,578 ) $ (443 ) Foreign currency (4) $ — $ (171 ) ____________________________________________________________ Location in statement of operations: (1) — Revenues (2) — Cost of sales (3) — Change in fair value of coal derivatives and coal trading activities, net (4) — Other operating (income) expense, net |
Accrued Expenses and Other Cu32
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued expenses and other current liabilities consist of the following: March 31, December 31, 2017 2016 (In thousands) Payroll and employee benefits $ 41,663 $ 58,468 Taxes other than income taxes 88,418 92,733 Interest 202 8,032 Acquired sales contracts 817 5,114 Workers’ compensation 16,046 15,184 Asset retirement obligations 19,340 19,515 Other 6,412 6,194 $ 172,898 $ 205,240 |
Debt and Financing Arrangemen33
Debt and Financing Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | March 31, December 31, 2017 2016 (In thousands) Term loan due 2024 ($300.0 million face value) 298,512 — Term loan due 2021 ($325.7 million face value) — 325,684 Other 34,424 37,195 Debt issuance costs (7,008 ) — 325,928 362,879 Less: current maturities of debt 7,898 11,038 Long-term debt $ 318,030 $ 351,841 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | A reconciliation of the statutory federal income tax provision (benefit) at the statutory rate to the actual provision for (benefit from) income taxes follows: Successor Predecessor Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 (In thousands) Income tax provision (benefit) at statutory rate $ 18,378 $ (72,735 ) Percentage depletion allowance (7,039 ) (25,667 ) State taxes, net of effect of federal taxes 483 (4,490 ) Change in valuation allowance (11,902 ) 100,562 Other, net 920 1,219 $ 840 $ (1,111 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets and Liabilities Accounted for at Fair Value | The table below sets forth, by level, the Company’s financial assets and liabilities that are recorded at fair value in the accompanying condensed consolidated balance sheet: March 31, 2017 Total Level 1 Level 2 Level 3 (In thousands) Assets: Investments in marketable securities $ 122,505 $ 18,938 $ 103,567 $ — Derivatives 1,418 — — 1,418 Total assets $ 123,923 $ 18,938 $ 103,567 $ 1,418 Liabilities: Derivatives $ 693 $ 644 $ — $ 49 |
Summary of Change in the Fair Values of Financial Instruments Categorized as Level 3 | The following table summarizes the change in the fair values of financial instruments categorized as Level 3. Three Months Ended March 31, 2017 (In thousands) Balance, beginning of period $ 4,537 Realized and unrealized gains recognized in earnings, net (4,068 ) Purchases 1,395 Issuances (182 ) Settlements (313 ) Ending balance $ 1,369 |
Earnings (loss) per common sh36
Earnings (loss) per common share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | The following table provides the basis for basic and diluted earnings (loss) per share by reconciling the numerators and denominators of the computations: Successor Predecessor March 31, 2017 March 31, 2016 (In Thousands) Weighted average shares outstanding: Basic weighted average shares outstanding 25,008 21,293 Effect of dilutive securities 400 — Diluted weighted average shares outstanding 25,408 21,293 |
Workers' Compensation Expense (
Workers' Compensation Expense (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Compensation Related Costs [Abstract] | |
Workers' compensation expense | Workers’ compensation expense consists of the following components: Successor Predecessor Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 (In thousands) Self-insured occupational disease benefits: Service cost $ 1,558 $ 1,105 Interest cost 1,169 1,057 Net amortization — 1,141 Total occupational disease $ 2,727 $ 3,303 Traumatic injury claims and assessments 2,878 2,967 Total workers’ compensation expense $ 5,605 $ 6,270 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Pension and Other Postretirement Benefit Expense [Abstract] | |
Pension Benefit Costs | The following table details the components of pension benefit costs: Successor Predecessor Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 (In thousands) Interest cost 2,991 3,338 Expected return on plan assets (4,497 ) (4,538 ) Amortization of other actuarial losses — 757 Net benefit credit $ (1,506 ) $ (443 ) The following table details the components of other postretirement benefit costs (credits): Successor Predecessor Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 (In thousands) Service cost $ 170 $ 160 Interest cost 1,058 1,134 Amortization of prior service credits — (2,673 ) Amortization of other actuarial losses (gains) — (566 ) Net benefit cost (credit) $ 1,228 $ (1,945 ) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segment Results | 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. PRB MET Other Thermal Corporate, Other and Eliminations Consolidated Successor Period (in thousands) Three Months Ended March 31, 2017 Revenues $ 273,428 $ 225,582 $ 101,906 $ 59 $ 600,975 Adjusted EBITDAR 48,006 68,310 27,242 (23,060 ) 120,498 Depreciation, depletion and amortization 9,510 18,764 3,200 447 31,921 Accretion on asset retirement obligation 5,040 528 540 1,515 7,623 Capital expenditures 128 4,610 741 471 5,950 Predecessor Period Three Months Ended March 31, 2016 Revenues $ 223,122 $ 136,583 $ 56,132 $ 12,269 $ 428,106 Adjusted EBITDAR 12,728 6,352 3,151 (23,951 ) (1,720 ) Depreciation, depletion and amortization 32,760 19,345 9,891 1,703 63,699 Accretion on asset retirement obligation 5,647 588 663 1,408 8,306 Capital expenditures 10 3,604 1,945 367 5,926 |
Reconciliation Statement of Segment Income from Operations to Consolidated Income Before Income Taxes | A reconciliation of adjusted EBITDAR to consolidated loss before income taxes follows: Successor Predecessor Three Months Ended March 31, Three Months Ended March 31, 2017 2016 (In thousands) Adjusted EBITDAR $ 120,498 $ (1,720 ) Depreciation, depletion and amortization (31,921 ) (63,699 ) Accretion on asset retirement obligations (7,623 ) (8,306 ) Amortization of sales contracts, net (14,690 ) 833 Asset impairment and mine closure costs — (85,520 ) Interest expense, net (8,898 ) (43,313 ) Net loss resulting from early retirement of debt and debt restructuring (2,030 ) (2,213 ) Reorganization items, net (2,828 ) (3,875 ) Income (loss) before income taxes $ 52,508 $ (207,813 ) |
Accumulated Other Comprehensi40
Accumulated Other Comprehensive Income (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Derivative Instruments [Member] | |
Accumulated Other Comprenhensive Income (Loss) [Roll Forward] | |
Beginning Balance | $ 0 |
Unrealized gains (losses) | 19 |
Amounts reclassified from AOCI | 0 |
Ending Balance | 19 |
Pension, Postretirement and Other Postemployment Benefits [Member] | |
Accumulated Other Comprenhensive Income (Loss) [Roll Forward] | |
Beginning Balance | 24,067 |
Unrealized gains (losses) | 0 |
Amounts reclassified from AOCI | 0 |
Ending Balance | 24,067 |
Available-for-Sale Securities [Member] | |
Accumulated Other Comprenhensive Income (Loss) [Roll Forward] | |
Beginning Balance | 387 |
Unrealized gains (losses) | (55) |
Amounts reclassified from AOCI | (332) |
Ending Balance | 0 |
Accumulated Other Comprehensive Income[Member] | |
Accumulated Other Comprenhensive Income (Loss) [Roll Forward] | |
Beginning Balance | 24,454 |
Unrealized gains (losses) | (36) |
Amounts reclassified from AOCI | (332) |
Ending Balance | $ 24,086 |
Accumulated Other Comprehensi41
Accumulated Other Comprehensive Income (Schedule of Reclassifications) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Derivative Instruments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net of tax | $ 0 | |
Pension, Postretirement and Other Postemployment Benefits [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net of tax | 0 | |
Available-for-Sale Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net of tax | 332 | |
Predecessor [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Revenues | $ 428,106 | |
Provision for (benefit from) income taxes | 1,111 | |
Net income (loss) | (206,702) | |
Predecessor [Member] | Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Reclassification from AOCI before tax | 2,672 | |
Predecessor [Member] | Pension, Postretirement and Other Postemployment Benefits [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Reclassification from AOCI before tax | 1,338 | |
Provision for (benefit from) income taxes | (481) | |
Net of tax | 857 | |
Predecessor [Member] | Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Reclassification from AOCI before tax | 1,334 | |
Predecessor [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative Instruments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Revenues | 226 | |
Provision for (benefit from) income taxes | (82) | |
Net income (loss) | 144 | |
Predecessor [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Available-for-Sale Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Interest and investment income | (2,895) | |
Provision for (benefit from) income taxes | 1,038 | |
Net income (loss) | $ (1,857) | |
Successor [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Revenues | 600,975 | |
Provision for (benefit from) income taxes | (840) | |
Net income (loss) | 51,668 | |
Successor [Member] | Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Reclassification from AOCI before tax | 0 | |
Successor [Member] | Pension, Postretirement and Other Postemployment Benefits [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Reclassification from AOCI before tax | 0 | |
Provision for (benefit from) income taxes | 0 | |
Net of tax | 0 | |
Successor [Member] | Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Reclassification from AOCI before tax | 0 | |
Successor [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative Instruments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Revenues | 0 | |
Provision for (benefit from) income taxes | 0 | |
Net income (loss) | 0 | |
Successor [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Available-for-Sale Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Interest and investment income | 332 | |
Provision for (benefit from) income taxes | 0 | |
Net income (loss) | $ 332 |
Reorganization items, net (Narr
Reorganization items, net (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Successor [Member] | ||
Fresh-Start Adjustment [Line Items] | ||
Reorganization items, net | $ (2,828) | |
Professional fee expense | 2,800 | |
Payments for reorganization items | $ 3,700 | |
Predecessor [Member] | ||
Fresh-Start Adjustment [Line Items] | ||
Reorganization items, net | $ (3,875) | |
Professional fee expense | 17,800 | |
Non-cash gains on rejected contracts | (13,900) | |
Payments for reorganization items | $ 1,500 |
Asset Impairments and Mine Cl43
Asset Impairments and Mine Closure Costs (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Asset impairment and mine closure costs | $ 85.5 |
Impairment charge on investment | 2.9 |
Kentucky [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Impaired coal reserves and surface land | 74.1 |
Severance expense | 5.1 |
Royalty Agreements [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Impairment charge | $ 3.4 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Coal | $ 49,066 | $ 37,268 |
Repair parts and supplies | 76,128 | 76,194 |
Inventories | 125,194 | 113,462 |
Allowance for slow-moving and obsolete inventories | $ (100) | $ 0 |
Investments in Available-for-45
Investments in Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities, Current | $ 122,505 | $ 88,072 |
Total Investments, Cost Basis | 122,565 | 89,910 |
Total Investments, Accumulated Gross Unrealized Gains | 33 | 388 |
Total Investments, Accumulated Gross Unrealized Losses | (93) | (89) |
Total Investments | 122,505 | 90,209 |
Short-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Investments, Current | 122,505 | 88,072 |
Other Assets [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Investments, Noncurrent | 0 | 2,137 |
U.S. Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities, Cost Basis | 18,926 | |
Debt Securities, Accumulated Gross Unrealized Gains | 12 | |
Debt Securities, Accumulated Gross Unrealized Losses | 0 | |
Debt Securities | 18,938 | |
U.S. Treasury Securities [Member] | Short-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities, Current | 18,938 | |
U.S. Treasury Securities [Member] | Other Assets [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities, Noncurrent | 0 | |
Corporate Notes and Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities, Cost Basis | 103,639 | 88,161 |
Debt Securities, Accumulated Gross Unrealized Gains | 21 | 0 |
Debt Securities, Accumulated Gross Unrealized Losses | (93) | (89) |
Debt Securities | 103,567 | 88,072 |
Corporate Notes and Bonds [Member] | Short-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities, Current | 103,567 | 88,072 |
Corporate Notes and Bonds [Member] | Other Assets [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities, Noncurrent | $ 0 | 0 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity Securities, Cost Basis | 1,749 | |
Equity Securities, Accumulated Gross Unrealized Gains | 388 | |
Equity Securities, Accumulated Gross Unrealized Losses | 0 | |
Equity securities | 2,137 | |
Equity Securities [Member] | Short-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity Securities, Current | 0 | |
Equity Securities [Member] | Other Assets [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity Securities, Noncurrent | $ 2,137 |
Investments in Available-for-46
Investments in Available-for-Sale Securities (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Available-for-sale Securities [Abstract] | ||
Unrealized losses owned for less than 12 months | $ 59.4 | $ 47.6 |
Unrealized losses owned for greater than 12 months | $ 16 | $ 40.4 |
Sales Contracts (Schedule of Sa
Sales Contracts (Schedule of Sales Contracts) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Acquired Finite-Lived Intangible Assets And Liabilities By Major Class [Line Items] | ||
Acquired fair value, Assets | $ 97,196 | $ 97,196 |
Acquired fair value, Liabilities | 31,742 | 31,742 |
Accumulated amortization, Asset | (44,843) | (25,625) |
Accumulated amortization, Liabilities | (29,356) | (24,829) |
Total, Assets | 52,353 | 71,571 |
Total, Liabilities | 2,386 | 6,913 |
Net total, Liabilities | 49,967 | 64,658 |
Coal Supply Agreement, Liabilities | 817 | 5,114 |
Other Current Assets [Member] | ||
Acquired Finite-Lived Intangible Assets And Liabilities By Major Class [Line Items] | ||
Coal supply agreement, Assets | 43,238 | 59,702 |
Other Current Liabilities [Member] | ||
Acquired Finite-Lived Intangible Assets And Liabilities By Major Class [Line Items] | ||
Coal Supply Agreement, Liabilities | 817 | 5,114 |
Other Noncurrent Assets [Member] | ||
Acquired Finite-Lived Intangible Assets And Liabilities By Major Class [Line Items] | ||
Coal supply agreement, Assets | 9,115 | 11,869 |
Other Noncurrent Liabilities [Member] | ||
Acquired Finite-Lived Intangible Assets And Liabilities By Major Class [Line Items] | ||
Coal Supply Agreement, Liabilities | $ 1,569 | $ 1,799 |
Sales Contracts (Narrative) (De
Sales Contracts (Narrative) (Details) $ in Millions | Mar. 31, 2017USD ($) |
Acquired Sales Contracts [Abstract] | |
2,017 | $ 57.3 |
2,018 | 11.5 |
2,019 | (0.6) |
2,020 | (0.1) |
2,021 | $ (0.1) |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) gal in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017USD ($)gal$ / option | Mar. 31, 2016USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017$ / option | Dec. 31, 2016USD ($) | |
Derivative [Line Items] | |||||
Current liability for the obligation to return cash collateral | $ | $ 4.8 | $ 2.8 | |||
Net unrealized and realized gains (losses) related to trading portfolio | $ | $ (0.7) | $ 0.1 | |||
Scenario, Forecast [Member] | |||||
Derivative [Line Items] | |||||
Value of trading portfolio realized | $ | $ (0.6) | ||||
Not Designated as Hedging Instrument [Member] | Heating Oil [Member] | |||||
Derivative [Line Items] | |||||
Percent of expected requirements covered | 75.00% | ||||
Derivative, average price risk option strike price (in usd per gallon) | $ / option | 1.77 | ||||
Not Designated as Hedging Instrument [Member] | Diesel Purchases [Member] | Scenario, Forecast [Member] | |||||
Derivative [Line Items] | |||||
Percent of expected requirements covered | 12.00% | ||||
Derivative, average price risk option strike price (in usd per gallon) | $ / option | 1.92 | ||||
Not Designated as Hedging Instrument [Member] | Diesel Purchases [Member] | Heating Oil [Member] | |||||
Derivative [Line Items] | |||||
Quantities under derivative contracts (in gallons) | gal | 30 | ||||
Not Designated as Hedging Instrument [Member] | Diesel Purchases [Member] | Minimum [Member] | |||||
Derivative [Line Items] | |||||
Gallons of diesel fuel purchased annually | gal | 38 | ||||
Not Designated as Hedging Instrument [Member] | Diesel Purchases [Member] | Maximum [Member] | |||||
Derivative [Line Items] | |||||
Gallons of diesel fuel purchased annually | gal | 44 |
Derivatives (Schedule of Price
Derivatives (Schedule of Price Risk Derivatives) (Details) T in Thousands | Mar. 31, 2017T |
Coal sales [Member] | |
Derivative [Line Items] | |
Derivatives Held | 405 |
Coal purchases [Member] | |
Derivative [Line Items] | |
Derivatives Held | 360 |
2017 [Member] | Coal sales [Member] | |
Derivative [Line Items] | |
Derivatives Held | 405 |
2017 [Member] | Coal purchases [Member] | |
Derivative [Line Items] | |
Derivatives Held | 360 |
2018 [Member] | Coal sales [Member] | |
Derivative [Line Items] | |
Derivatives Held | 0 |
2018 [Member] | Coal purchases [Member] | |
Derivative [Line Items] | |
Derivatives Held | 0 |
Derivatives (Disclosure Of Fair
Derivatives (Disclosure Of Fair Value Of Derivatives) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Derivative Assets | $ 44,777 | $ 74,155 |
Derivative Liabilities | (44,052) | (69,348) |
Effect of counterparty netting in derivative assets | (43,359) | (69,247) |
Effect of counterparty netting in derivative liabilities | 43,359 | 69,247 |
Derivative Asset | 1,418 | 4,908 |
Derivative Liability | (693) | (101) |
Net derivatives as classified in the balance sheet | 725 | 4,807 |
Designated as Hedging Instrument [Member] | Coal Contract [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | 9 | 0 |
Derivative Liabilities | 0 | (15) |
Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | 44,768 | 74,155 |
Derivative Liabilities | (44,052) | (69,333) |
Not Designated as Hedging Instrument [Member] | Coal Contract [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | 43,157 | 68,948 |
Derivative Liabilities | (43,781) | (68,740) |
Not Designated as Hedging Instrument [Member] | Coal Contract [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | 193 | 475 |
Derivative Liabilities | (271) | (580) |
Not Designated as Hedging Instrument [Member] | Heating Oil-Diesel Purchases [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | 1,418 | 4,646 |
Derivative Liabilities | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Natural Gas [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | 0 | 86 |
Derivative Liabilities | $ 0 | $ (13) |
Derivatives (Net Derivatives As
Derivatives (Net Derivatives As Reflected On The Balance Sheets) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Net derivatives as classified in the balance sheet | $ 725 | $ 4,807 |
Accrued expenses and other current liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net derivatives as classified in the balance sheet | (693) | (101) |
Heating Oil and Foreign Currency [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net derivatives as classified in the balance sheet | $ 1,418 | $ 4,908 |
Derivatives (Effects Of Derivat
Derivatives (Effects Of Derivatives On Measures Of Financial Performance) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Successor [Member] | Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Other Comprehensive Income(Effective Portion) | $ 19 | |
Gains (Losses) Reclassified from Other Comprehensive Income into Income (Effective Portion) | 0 | |
Successor [Member] | Designated as Hedging Instrument [Member] | Coal sales [Member] | Coal Contract [Member] | Sales Revenue, Net [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Other Comprehensive Income(Effective Portion) | 220 | |
Gains (Losses) Reclassified from Other Comprehensive Income into Income (Effective Portion) | 0 | |
Successor [Member] | Designated as Hedging Instrument [Member] | Coal purchases [Member] | Coal Contract [Member] | Cost of Sales [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Other Comprehensive Income(Effective Portion) | (201) | |
Gains (Losses) Reclassified from Other Comprehensive Income into Income (Effective Portion) | 0 | |
Successor [Member] | Not Designated as Hedging Instrument [Member] | Coal Contract [Member] | Change in Fair Value of Coal Derivatives and Coal Trading Activity, Net [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized Gain (Loss) on Derivatives | 26 | |
Successor [Member] | Not Designated as Hedging Instrument [Member] | Coal Contract [Member] | Other Operating Income (Expense) [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Realized Gain (Loss) on Derivatives | 0 | |
Successor [Member] | Not Designated as Hedging Instrument [Member] | Natural Gas [Member] | Change in Fair Value of Coal Derivatives and Coal Trading Activity, Net [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized Gain (Loss) on Derivatives | (469) | |
Successor [Member] | Not Designated as Hedging Instrument [Member] | Heating Oil-Diesel Purchases [Member] | Other Operating Income (Expense) [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Heating oil realized and unrealized gains and losses | (3,578) | |
Successor [Member] | Not Designated as Hedging Instrument [Member] | Foreign Currency [Member] | Other Operating Income (Expense) [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Heating oil realized and unrealized gains and losses | $ 0 | |
Predecessor [Member] | Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Other Comprehensive Income(Effective Portion) | $ 2 | |
Gains (Losses) Reclassified from Other Comprehensive Income into Income (Effective Portion) | 226 | |
Predecessor [Member] | Designated as Hedging Instrument [Member] | Coal sales [Member] | Coal Contract [Member] | Sales Revenue, Net [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Other Comprehensive Income(Effective Portion) | 13 | |
Gains (Losses) Reclassified from Other Comprehensive Income into Income (Effective Portion) | 1,369 | |
Predecessor [Member] | Designated as Hedging Instrument [Member] | Coal purchases [Member] | Coal Contract [Member] | Cost of Sales [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Other Comprehensive Income(Effective Portion) | (11) | |
Gains (Losses) Reclassified from Other Comprehensive Income into Income (Effective Portion) | (1,143) | |
Predecessor [Member] | Not Designated as Hedging Instrument [Member] | Coal Contract [Member] | Change in Fair Value of Coal Derivatives and Coal Trading Activity, Net [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized Gain (Loss) on Derivatives | (1,115) | |
Predecessor [Member] | Not Designated as Hedging Instrument [Member] | Coal Contract [Member] | Other Operating Income (Expense) [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Realized Gain (Loss) on Derivatives | 163 | |
Predecessor [Member] | Not Designated as Hedging Instrument [Member] | Natural Gas [Member] | Change in Fair Value of Coal Derivatives and Coal Trading Activity, Net [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized Gain (Loss) on Derivatives | (469) | |
Predecessor [Member] | Not Designated as Hedging Instrument [Member] | Heating Oil-Diesel Purchases [Member] | Other Operating Income (Expense) [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Heating oil realized and unrealized gains and losses | (443) | |
Predecessor [Member] | Not Designated as Hedging Instrument [Member] | Foreign Currency [Member] | Other Operating Income (Expense) [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Heating oil realized and unrealized gains and losses | $ (171) |
Accrued Expenses and Other Cu54
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Payroll and employee benefits | $ 41,663 | $ 58,468 |
Taxes other than income taxes | 88,418 | 92,733 |
Interest | 202 | 8,032 |
Acquired sales contracts | 817 | 5,114 |
Workers’ compensation | 16,046 | 15,184 |
Asset retirement obligations | 19,340 | 19,515 |
Other | 6,412 | 6,194 |
Accrued expenses and other current liabilities | $ 172,898 | $ 205,240 |
Debt and Financing Arrangemen55
Debt and Financing Arrangements (Long term Debt) (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Other | $ 34,424,000 | $ 37,195,000 |
Debt issuance costs | (7,008,000) | 0 |
Total | 325,928,000 | 362,879,000 |
Less: current maturities of debt | 7,898,000 | 11,038,000 |
Long-term debt | 318,030,000 | 351,841,000 |
Term loan [Member] | Term Loan Due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Term loan | 298,512,000 | 0 |
Debt instrument, face amount | 300,000,000 | |
Term loan [Member] | Term Loan Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Term loan | $ 0 | 325,684,000 |
Debt instrument, face amount | $ 325,700,000 |
Debt and Financing Arrangemen56
Debt and Financing Arrangements (Narrative) (Details) - USD ($) | Mar. 07, 2017 | Mar. 31, 2017 | Mar. 31, 2016 |
Line of Credit Facility [Line Items] | |||
Debt financing costs | $ 2,000,000 | $ 2,200,000 | |
New Term Loan Debt Facility [Member] | Senior Notes [Member] | |||
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) | 100.00% | ||
Amount of voting equity interests of foreign owned subsidiaries guaranteed (percent) | 65.00% | ||
Net cash proceeds of from debt issuances and other non-ordinary sales or dispositions (percent) | 100.00% | ||
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 | ||
New Term Loan Debt Facility [Member] | Senior Notes [Member] | LIBOR [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate (percent) | 4.00% | ||
New Term Loan Debt Facility [Member] | Senior Notes [Member] | Base Rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate (percent) | 3.00% | ||
Previous First Lien Debt Facility [Member] | Senior Notes [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt financing costs | 1,000,000 | ||
Minimum [Member] | New Term Loan Debt Facility [Member] | Senior Notes [Member] | LIBOR [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate (percent) | 1.00% | ||
Successor [Member] | |||
Line of Credit Facility [Line Items] | |||
Financing costs | 2,030,000 | ||
Debt financing costs | 7,228,000 | ||
Interest expense | (9,425,000) | ||
Successor [Member] | New Term Loan Debt Facility [Member] | Senior Notes [Member] | |||
Line of Credit Facility [Line Items] | |||
Financing costs | $ 7,200,000 | ||
Predecessor [Member] | |||
Line of Credit Facility [Line Items] | |||
Financing costs | 2,213,000 | ||
Debt financing costs | 18,403,000 | ||
Interest expense | (44,451,000) | ||
Predecessor [Member] | Superpriority Debtor-in Possession Credit Agreement [Member] | Line of Credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Financing costs | $ 18,400,000 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Successor [Member] | ||
Income Tax Examination [Line Items] | ||
Income tax provision (benefit) at statutory rate | $ 18,378 | |
Percentage depletion allowance | (7,039) | |
State taxes, net of effect of federal taxes | 483 | |
Change in valuation allowance | (11,902) | |
Other, net | 920 | |
Income Tax Expense (Benefit) | $ 840 | |
Predecessor [Member] | ||
Income Tax Examination [Line Items] | ||
Income tax provision (benefit) at statutory rate | $ (72,735) | |
Percentage depletion allowance | (25,667) | |
State taxes, net of effect of federal taxes | (4,490) | |
Change in valuation allowance | 100,562 | |
Other, net | 1,219 | |
Income Tax Expense (Benefit) | $ (1,111) |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of senior notes and other long-term debt, including amounts classified as current | $ 334.4 | $ 362.9 |
Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Net unrealized gains (losses) related to level 3 financial instruments | $ (2.8) |
Fair Value Measurements (Summar
Fair Value Measurements (Summary Of Financial Assets And Liabilities Accounted For At Fair Value) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Investments in marketable securities | $ 122,505 | $ 90,209 |
Derivatives | 1,418 | 4,908 |
Total assets | 123,923 | |
Liabilities: | ||
Derivatives | 693 | $ 101 |
Level 1 [Member] | ||
Assets: | ||
Investments in marketable securities | 18,938 | |
Derivatives | 0 | |
Total assets | 18,938 | |
Liabilities: | ||
Derivatives | 644 | |
Level 2 [Member] | ||
Assets: | ||
Investments in marketable securities | 103,567 | |
Total assets | 103,567 | |
Liabilities: | ||
Derivatives | 0 | |
Level 3 [Member] | ||
Assets: | ||
Investments in marketable securities | 0 | |
Derivatives | 1,418 | |
Total assets | 1,418 | |
Liabilities: | ||
Derivatives | $ 49 |
Fair Value Measurements (Summ60
Fair Value Measurements (Summary Of Change In The Fair Values Of Financial Instruments Categorized As Level 3) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balance, beginning of period | $ 4,537 |
Realized and unrealized gains recognized in earnings, net | (4,068) |
Purchases | 1,395 |
Issuances | (182) |
Settlements | (313) |
Ending balance | $ 1,369 |
Earnings (loss) per common sh61
Earnings (loss) per common share (Weighted-Average Number of Shares) (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Successor [Member] | ||
Weighted average shares outstanding: | ||
Basic weighted average shares outstanding | 25,008 | |
Effect of dilutive securities | 400 | |
Diluted weighted average shares outstanding | 25,408 | |
Predecessor [Member] | ||
Weighted average shares outstanding: | ||
Basic weighted average shares outstanding | 21,293 | |
Effect of dilutive securities | 0 | |
Diluted weighted average shares outstanding | 21,293 |
Workers' Compensation Expense62
Workers' Compensation Expense (Worker's Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Successor [Member] | Workers' Compensation [Member] | ||
Accrued Workers' Compensation [Line Items] | ||
Total workers’ compensation expense | $ 5,605 | |
Successor [Member] | Occupational Disease [Member] | ||
Accrued Workers' Compensation [Line Items] | ||
Service cost | 1,558 | |
Interest cost | 1,169 | |
Net amortization | 0 | |
Total occupational disease | 2,727 | |
Successor [Member] | Traumatic Injury Claims and Assessments [Member] | ||
Accrued Workers' Compensation [Line Items] | ||
Traumatic injury claims and assessments | $ 2,878 | |
Predecessor [Member] | Workers' Compensation [Member] | ||
Accrued Workers' Compensation [Line Items] | ||
Total workers’ compensation expense | $ 6,270 | |
Predecessor [Member] | Occupational Disease [Member] | ||
Accrued Workers' Compensation [Line Items] | ||
Service cost | 1,105 | |
Interest cost | 1,057 | |
Net amortization | 1,141 | |
Total occupational disease | 3,303 | |
Predecessor [Member] | Traumatic Injury Claims and Assessments [Member] | ||
Accrued Workers' Compensation [Line Items] | ||
Traumatic injury claims and assessments | $ 2,967 |
Employee Benefit Plans (Pension
Employee Benefit Plans (Pension And Other Postretirement Benefit Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Successor [Member] | Pension Plans, Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 2,991 | |
Expected return on plan assets | (4,497) | |
Amortization of other actuarial losses (gains) | 0 | |
Net benefit cost (credit) | (1,506) | |
Successor [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 170 | |
Interest cost | 1,058 | |
Amortization of prior service credits | 0 | |
Amortization of other actuarial losses (gains) | 0 | |
Net benefit cost (credit) | $ 1,228 | |
Predecessor [Member] | Pension Plans, Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 3,338 | |
Expected return on plan assets | (4,538) | |
Amortization of other actuarial losses (gains) | 757 | |
Net benefit cost (credit) | (443) | |
Predecessor [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 160 | |
Interest cost | 1,134 | |
Amortization of prior service credits | (2,673) | |
Amortization of other actuarial losses (gains) | (566) | |
Net benefit cost (credit) | $ (1,945) |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Commitments and Contingencies Disclosure [Abstract] | ||
Amount accrued | $ 1.3 | $ 2.2 |
Segment Information (Schedule O
Segment Information (Schedule Of Operating Segment Results) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($)Segment | Mar. 31, 2016USD ($) | |
Segment Reporting [Abstract] | ||
Number of reportable segments | Segment | 2 | |
Successor [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 600,975 | |
Adjusted EBITDAR | 120,498 | |
Depreciation, depletion and amortization | 31,921 | |
Accretion on asset retirement obligations | 7,623 | |
Capital expenditures | 5,950 | |
Successor [Member] | Operating Segments [Member] | PRB [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 273,428 | |
Adjusted EBITDAR | 48,006 | |
Depreciation, depletion and amortization | 9,510 | |
Accretion on asset retirement obligations | 5,040 | |
Capital expenditures | 128 | |
Successor [Member] | Operating Segments [Member] | MET [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 225,582 | |
Adjusted EBITDAR | 68,310 | |
Depreciation, depletion and amortization | 18,764 | |
Accretion on asset retirement obligations | 528 | |
Capital expenditures | 4,610 | |
Successor [Member] | Operating Segments [Member] | Other Thermal [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 101,906 | |
Adjusted EBITDAR | 27,242 | |
Depreciation, depletion and amortization | 3,200 | |
Accretion on asset retirement obligations | 540 | |
Capital expenditures | 741 | |
Successor [Member] | Corporate, Other and Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 59 | |
Adjusted EBITDAR | (23,060) | |
Depreciation, depletion and amortization | 447 | |
Accretion on asset retirement obligations | 1,515 | |
Capital expenditures | $ 471 | |
Predecessor [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 428,106 | |
Adjusted EBITDAR | (1,720) | |
Depreciation, depletion and amortization | 63,699 | |
Accretion on asset retirement obligations | 8,306 | |
Capital expenditures | 5,926 | |
Predecessor [Member] | Operating Segments [Member] | PRB [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 223,122 | |
Adjusted EBITDAR | 12,728 | |
Depreciation, depletion and amortization | 32,760 | |
Accretion on asset retirement obligations | 5,647 | |
Capital expenditures | 10 | |
Predecessor [Member] | Operating Segments [Member] | MET [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 136,583 | |
Adjusted EBITDAR | 6,352 | |
Depreciation, depletion and amortization | 19,345 | |
Accretion on asset retirement obligations | 588 | |
Capital expenditures | 3,604 | |
Predecessor [Member] | Operating Segments [Member] | Other Thermal [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 56,132 | |
Adjusted EBITDAR | 3,151 | |
Depreciation, depletion and amortization | 9,891 | |
Accretion on asset retirement obligations | 663 | |
Capital expenditures | 1,945 | |
Predecessor [Member] | Corporate, Other and Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 12,269 | |
Adjusted EBITDAR | (23,951) | |
Depreciation, depletion and amortization | 1,703 | |
Accretion on asset retirement obligations | 1,408 | |
Capital expenditures | $ 367 |
Segment Information (Reconcilia
Segment Information (Reconciliation Statement Of Segment Income from Operations To Consolidated Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
Asset impairment and mine closure costs | $ (85,500) | |
Successor [Member] | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDAR | $ 120,498 | |
Depreciation, depletion and amortization | (31,921) | |
Accretion on asset retirement obligations | (7,623) | |
Amortization of sales contracts, net | (14,690) | |
Asset impairment and mine closure costs | 0 | |
Interest expense, net | (8,898) | |
Net loss resulting from early retirement of debt and debt restructuring | (2,030) | |
Reorganization items, net | (2,828) | |
Income (loss) before income taxes | $ 52,508 | |
Predecessor [Member] | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDAR | (1,720) | |
Depreciation, depletion and amortization | (63,699) | |
Accretion on asset retirement obligations | (8,306) | |
Amortization of sales contracts, net | 833 | |
Asset impairment and mine closure costs | (85,520) | |
Interest expense, net | (43,313) | |
Net loss resulting from early retirement of debt and debt restructuring | (2,213) | |
Reorganization items, net | (3,875) | |
Income (loss) before income taxes | $ (207,813) |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - USD ($) | Apr. 27, 2017 | Mar. 31, 2017 |
Subsequent Event [Line Items] | ||
Borrowing capacity of securitization agreement | $ 200,000,000 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Borrowing capacity of securitization agreement | $ 160,000,000 | |
Term of securitization agreement | 3 years | |
Amount of liquidity covenant | $ 175,000,000 | |
Liquidity covenant term | 60 days | |
Authorized amount of repurchase program | $ 300,000,000 | |
Common shares outstanding | 25,021,079 | |
Cash dividend declared (in usd per share) | $ 0.35 | |
Regions [Member] | Subsequent Event [Member] | Secured Debt [Member] | ||
Subsequent Event [Line Items] | ||
Percentage of liquidation value of coal inventory | 85.00% | |
Percentage of liquidation value of parts and supplies inventory | 85.00% | |
Percentage of clause | 35.00% | |
Percentage of eligible cash | 100.00% | |
Liquidity covenant terms | 60 days | |
Regions [Member] | Subsequent Event [Member] | Secured Debt [Member] | Maximum [Member] | ||
Subsequent Event [Line Items] | ||
Amount of liquidity covenant, minimum | $ 250,000,000 | |
Regions [Member] | Subsequent Event [Member] | Secured Debt [Member] | Minimum [Member] | ||
Subsequent Event [Line Items] | ||
Amount of liquidity covenant, minimum | $ 175,000,000 | |
Regions [Member] | Subsequent Event [Member] | Secured Debt [Member] | LIBOR [Member] | Maximum [Member] | ||
Subsequent Event [Line Items] | ||
Basis spread on variable rate (percent) | 2.50% | |
Regions [Member] | Subsequent Event [Member] | Secured Debt [Member] | LIBOR [Member] | Minimum [Member] | ||
Subsequent Event [Line Items] | ||
Basis spread on variable rate (percent) | 2.25% | |
Regions [Member] | Subsequent Event [Member] | Secured Debt [Member] | Base Rate [Member] | Maximum [Member] | ||
Subsequent Event [Line Items] | ||
Basis spread on variable rate (percent) | 1.50% | |
Regions [Member] | Subsequent Event [Member] | Secured Debt [Member] | Base Rate [Member] | Minimum [Member] | ||
Subsequent Event [Line Items] | ||
Basis spread on variable rate (percent) | 1.25% | |
Revolving Credit Facility [Member] | Subsequent Event [Member] | Secured Debt [Member] | ||
Subsequent Event [Line Items] | ||
Aggregate principal amount | $ 40,000,000 |