Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 20, 2018 | |
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, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 20,614,906 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Revenues | $ 575,295 | $ 600,975 |
Costs, expenses and other operating | ||
Cost of sales (exclusive of items shown separately below) | 454,780 | 460,450 |
Depreciation, depletion and amortization | 29,703 | 31,921 |
Accretion on asset retirement obligations | 6,992 | 7,623 |
Amortization of sales contracts, net | 3,051 | 14,690 |
Change in fair value of coal derivatives and coal trading activities, net | (3,414) | 854 |
Selling, general and administrative expenses | 25,948 | 20,762 |
Other operating income, net | (6,932) | (2,310) |
Total operating expenses | 510,128 | 533,990 |
Income from operations | 65,167 | 66,985 |
Interest expense, net | ||
Interest expense | (5,395) | (9,425) |
Interest and investment income | 1,273 | 527 |
Interest expense, net | (4,122) | (8,898) |
Income before nonoperating expenses | 61,045 | 58,087 |
Nonoperating expenses | ||
Non-service related pension and postretirement benefit costs | (1,303) | (721) |
Net loss resulting from early retirement of debt and debt restructuring | 0 | (2,030) |
Reorganization items, net | (301) | (2,828) |
Nonoperating income (expense) | (1,604) | (5,579) |
Income before income taxes | 59,441 | 52,508 |
Provision for (benefit from) income taxes | (544) | 840 |
Net income | $ 59,985 | $ 51,668 |
Net income per common share | ||
Basic earnings (loss) per common share (in dollars per share) | $ 2.87 | $ 2.07 |
Diluted earnings (loss) per common share (in dollars per share) | $ 2.74 | $ 2.03 |
Weighted average shares outstanding | ||
Basic weighted average shares outstanding (shares) | 20,901 | 25,008 |
Diluted weighted average shares outstanding (shares) | 21,875 | 25,408 |
Dividends declared per common share (in dollars per share) | $ 0.4 | $ 0 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Net income | $ 59,985 | $ 51,668 |
Derivative instruments | ||
Comprehensive income (loss) before tax | 6,557 | 19 |
Income tax benefit (provision) | 0 | 0 |
Derivatives qualifying as hedges, adjustment, net of tax | 6,557 | 19 |
Pension, postretirement and other post-employment benefits | ||
Comprehensive income (loss) before tax | 0 | 0 |
Income tax benefit (provision) | 0 | 0 |
Pension and other postretirement benefit plans, adjustment, net of tax | 0 | 0 |
Available-for-sale securities | ||
Comprehensive income (loss) before tax | (658) | (387) |
Income tax benefit (provision) | 0 | 0 |
Available-for-sale securities adjustment, net of tax | (658) | (387) |
Total other comprehensive income (loss) | 5,899 | (368) |
Total comprehensive income (loss) | $ 65,884 | $ 51,300 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 288,332 | $ 273,387 |
Short term investments | 144,652 | 155,846 |
Restricted cash | 2,926 | 0 |
Trade accounts receivable | 208,100 | 172,604 |
Other receivables | 11,405 | 29,771 |
Inventories | 143,831 | 128,960 |
Other current assets | 68,459 | 70,426 |
Total current assets | 867,705 | 830,994 |
Property, plant and equipment, net | 935,511 | 955,948 |
Other assets | ||
Equity investments | 104,786 | 106,107 |
Other noncurrent assets | 68,676 | 86,583 |
Total other assets | 173,462 | 192,690 |
Total assets | 1,976,678 | 1,979,632 |
Current Liabilities | ||
Accounts payable | 127,149 | 134,137 |
Accrued expenses and other current liabilities | 158,882 | 184,161 |
Current maturities of debt | 14,328 | 15,783 |
Total current liabilities | 300,359 | 334,081 |
Long-term debt | 307,742 | 310,134 |
Asset retirement obligations | 312,544 | 308,855 |
Accrued pension benefits | 13,370 | 14,036 |
Accrued postretirement benefits other than pension | 104,902 | 102,369 |
Accrued workers’ compensation | 185,159 | 184,835 |
Other noncurrent liabilities | 64,140 | 59,457 |
Total liabilities | 1,288,216 | 1,313,767 |
Stockholders' equity | ||
Common stock, $0.01 par value, authorized 300,000 shares, issued 25,047 shares at March 31, 2018 and December 31, 2017, respectively | 250 | 250 |
Paid-in capital | 703,980 | 700,125 |
Retained earnings | 298,664 | 247,232 |
Treasury stock, 4,384 shares and 3,977 shares at March 31, 2018 and December 31, 2017, respectively, at cost | (340,698) | (302,109) |
Accumulated other comprehensive income | 26,266 | 20,367 |
Total stockholders’ equity | 688,462 | 665,865 |
Total liabilities and stockholders’ equity | $ 1,976,678 | $ 1,979,632 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
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 | 25,047,000 | 25,047,000 |
Treasury stock, shares | 4,384,000 | 3,977,000 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating activities | ||
Net income | $ 59,985 | $ 51,668 |
Adjustments to reconcile to cash provided by operating activities: | ||
Depreciation, depletion and amortization | 29,703 | 31,921 |
Accretion on asset retirement obligations | 6,992 | 7,623 |
Amortization of sales contracts, net | 3,051 | 14,690 |
Prepaid royalties expensed | 0 | 2,281 |
Deferred income taxes | 12,127 | 5,830 |
Employee stock-based compensation expense | 3,845 | 2,426 |
Gains on disposals and divestitures, net | 134 | (347) |
Net loss resulting from early retirement of debt and debt restructuring | 0 | 2,030 |
Amortization relating to financing activities | 1,080 | 535 |
Changes in: | ||
Receivables | (28,728) | 37,134 |
Inventories | (14,871) | (11,732) |
Accounts payable, accrued expenses and other current liabilities | (26,052) | (20,529) |
Income taxes, net | 11,596 | (4,965) |
Other | 8,005 | 6,964 |
Cash provided by operating activities | 66,867 | 125,529 |
Investing activities | ||
Capital expenditures | (9,453) | (5,950) |
Minimum royalty payments | (62) | (63) |
Proceeds from disposals and divestitures | 54 | 420 |
Purchases of short term investments | (38,458) | (78,523) |
Proceeds from sales of short term investments | 49,400 | 45,886 |
Investments in and advances to affiliates, net | 0 | (7,905) |
Cash provided by (used in) investing activities | 1,481 | (46,135) |
Financing activities | ||
Proceeds from issuance of term loan due 2024 | 0 | 298,500 |
Payments to extinguish term loan due 2021 | 0 | (325,684) |
Payments on term loan due 2024 | (750) | 0 |
Net payments on other debt | (3,431) | (2,810) |
Debt financing costs | 0 | (7,228) |
Net loss resulting from early retirement of debt and debt restructuring | 0 | (2,030) |
Dividends paid | (8,335) | 0 |
Purchases of treasury stock | (38,186) | 0 |
Other | 10 | |
Cash used in financing activities | (50,692) | (39,252) |
Increase in cash and cash equivalents, including restricted cash | 17,656 | 40,142 |
Cash and cash equivalents, including restricted cash, beginning of period | 273,602 | 376,422 |
Cash and cash equivalents, including restricted cash, end of period | $ 291,258 | $ 416,564 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Cash and cash equivalents, including restricted cash, end of period | ||
Cash and cash equivalents | $ 288,332 | $ 347,580 |
Restricted cash | 2,926 | 68,984 |
Cash and cash equivalents, end of period | $ 291,258 | $ 416,564 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
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. 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, 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, 2018 are not necessarily indicative of results to be expected for the year ending December 31, 2018 . 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, 2017 included in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission. |
Accounting Policies
Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies Recently Adopted Accounting Guidance 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 has superseded nearly all existing revenue recognition guidance under current U.S. GAAP and replaced it with a principle based approach for determining revenue recognition. ASU 2014-09 requires that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also requires 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. 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. During the fourth quarter of 2017, the Company finalized its assessment related to the new standard by analyzing certain contracts representative of the majority of the Company’s coal sales and determined that the timing of revenue recognition related to the Company’s coal sales will remain consistent between the new standard and the previous standard. The Company also reviewed other sources of revenue, and concluded the current basis of accounting for these items is in accordance with the new standard. The Company adopted ASU 2014-09 effective January 1, 2018 using the modified retrospective method, and there was no cumulative adjustment to retained earnings. The Company also reviewed the disclosure requirements under the new standard and has compiled information needed for the expanded disclosures which are included within Note 18 , “ Revenue Recognition ” in the Condensed Consolidated Financial Statements. In August 2016, the FASB issued ASU No. 2016-15, “Classification of Certain Cash Receipts and Cash Payments.” The amendment requires the classification of certain cash receipts and cash payments in the statement of cash flows to reduce diversity in practice. The new guidance will be effective for fiscal years beginning after December 15, 2017 and the interim periods therein, with early adoption permitted. The amendments in the classification should be applied retrospectively to all periods presented, unless deemed impracticable, in which case, the prospective application is permitted. The Company adopted ASU 2016-15 effective January 1, 2018 with no impact on the Company’s financial statements. In November 2016, FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash.” The ASU applies to all entities that have restricted cash or restricted cash equivalents and are required to present a statement of cash flows. The ASU requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. As a result, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. The ASU is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The ASU should be adopted using a retrospective transition method to each period presented. The Company adopted ASU 2016-18 effective January 1, 2018 and applied the ASU retrospectively to the periods presented in the Company's Condensed Consolidated Statements of Cash Flow. As a result, net cash used in investing activities for the three months ended March 31, 2017 was adjusted to exclude the change in restricted cash as follows: (in thousands) Three Months Ended March 31, 2017 Cash used in investing activities previously reported $ (44,069 ) Less: Withdrawals of restricted cash 2,066 Cash used in investing activities $ (46,135 ) 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 ASU is effective for public companies for fiscal years beginning after December 15, 2017, and interim periods therein. The ASU should be adopted using a retrospective transition method to each period presented. The Company adopted ASU 2017-07 effective January 1, 2018 and applied the ASU retrospectively to the periods presented in the Company's Condensed Consolidated Income Statements. The retrospective application resulted in a $0.9 million reduction in cost of coal sales and a $0.2 million increase in selling, general and administrative costs with the corresponding offset to Nonoperating expense for the three months ended March 31, 2017 . Recent Accounting Guidance Issued Not Yet Effective In February 2016, the FASB issued ASU No. 2016-02, “Leases” which, for operating leases, requires a lessee to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in its balance sheet. The standard also requires a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over the term of the lease, on a generally straight line basis. The ASU is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years; early adoption is permitted. The Company has both operating and capital leases. We expect the adoption of this standard to result in the recognition of right-of-use assets and lease liabilities not currently recorded on the Company’s financial statements. The Company is currently in the process of accumulating all contractual lease arrangements in order to determine the impact on its financial statements. In February 2018, the FASB issued ASU 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” ASU 2018-02 provides an option to reclassify stranded tax effects within accumulated other comprehensive income to retained earnings due to the change in the U.S. federal tax rate in the Tax Cuts and Jobs Act of 2017. The ASU is effective for public companies for fiscal years beginning after December 15, 2018, and interim periods therein with early adoption permitted. The Company is currently in the process of analyzing the standard, but does not expect a significant impact to the Company’s financial statements. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2018 | |
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, 2017 $ 647 $ 19,720 $ — $ 20,367 Unrealized gains (losses) 6,697 — (658 ) 6,039 Amounts reclassified from AOCI (140 ) — — (140 ) Balance at March 31, 2018 $ 7,204 $ 19,720 $ (658 ) $ 26,266 The following amounts were reclassified out of AOCI: Three Months Ended March 31, Details About AOCI Components 2018 2017 Line Item in the Condensed Consolidated Statement of Operations (In thousands) Coal hedges $ — $ — Revenues Interest rate hedges 140 — Interest expense — — Provision for (benefit from) income taxes $ 140 $ — Net of tax Pension, postretirement and other post-employment benefits Amortization of prior service credits $ — $ — Amortization of actuarial gains (losses), net — — — — — — Provision for (benefit from) income taxes $ — $ — Net of tax Available-for-sale securities $ — $ 332 Interest and investment income — — Provision for (benefit from) income taxes $ — $ 332 Net of tax |
Reorganization items, net
Reorganization items, net | 3 Months Ended |
Mar. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Reorganization items, net | Reorganization items, net In accordance with Accounting Codification Standard 852, “Reorganizations,” the income statement 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, 2018 and 2017 , the Company recorded $0.3 million and $2.8 million , respectively in “Reorganization items, net” primarily comprised of professional fee expenses. Net cash paid for “Reorganization items, net” totaled $0.2 million and $3.7 million during the three months ended March 31, 2018 and 2017 , respectively. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following: March 31, December 31, 2018 2017 (In thousands) Coal $ 63,884 $ 54,692 Repair parts and supplies 79,947 74,268 $ 143,831 $ 128,960 The repair parts and supplies are stated net of an allowance for slow-moving and obsolete inventories of $0.9 million at March 31, 2018 and $0.3 million at December 31, 2017 . |
Investments in Available-for-Sa
Investments in Available-for-Sale Securities | 3 Months Ended |
Mar. 31, 2018 | |
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 U.S. Treasury securities and investment grade corporate bonds. These investments are held in the custody of a major financial institution. These securities are classified as available-for-sale securities and, accordingly, the unrealized gains and losses are recorded through other comprehensive income. The Company’s investments in available-for-sale marketable securities are as follows: March 31, 2018 Balance Sheet Classification Gross Unrealized Fair Short-Term Other Cost Basis Gains Losses Value Investments Assets (In thousands) Available-for-sale: U.S. government and agency securities $ 56,798 $ — $ (121 ) $ 56,677 $ 56,677 $ — Corporate notes and bonds 88,512 — (537 ) 87,975 87,975 — Total Investments $ 145,310 $ — $ (658 ) $ 144,652 $ 144,652 $ — December 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. government and agency securities $ 64,151 $ 22 $ (73 ) $ 64,100 $ 64,100 $ — Corporate notes and bonds 92,038 — (292 ) 91,746 91,746 — Total Investments $ 156,189 $ 22 $ (365 ) $ 155,846 $ 155,846 $ — The aggregate fair value of investments with unrealized losses that were owned for less than a year was $94.7 million and $132.0 million at March 31, 2018 and December 31, 2017 , respectively. The aggregate fair value of investments with unrealized losses that were owned for over a year was $50.0 million and $0.0 million at March 31, 2018 and December 31, 2017 , respectively. The unrealized losses in the Company’s portfolio at March 31, 2018 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, 2018 have maturity dates ranging from the second quarter of 2018 through the third quarter of 2019 . 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, 2018 | |
Acquired Sales Contracts [Abstract] | |
Sales Contracts | Sales Contracts The sales contracts reflected in the Condensed Consolidated Balance Sheets are as follows: March 31, 2018 December 31, 2017 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 (88,130 ) (30,298 ) (84,760 ) (29,979 ) Total $ 9,066 $ 1,444 $ 7,622 $ 12,436 $ 1,763 $ 10,673 Balance Sheet classification: Other current $ 9,062 $ 780 $ 12,432 $ 934 Other noncurrent $ 4 $ 664 $ 4 $ 829 The Company anticipates the majority of the remaining net book value of sale contracts to be amortized in 2018 based upon expected shipments. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives Interest rate risk management The Company has entered into interest rate swaps to reduce the variability of cash outflows associated with interest payments on its variable rate term loan. These swaps have been designated as cash flow hedges. For additional information on these arrangements, see Note 10 , “ Debt and Financing Arrangements ,” in the Condensed Consolidated Financial Statements. Diesel fuel price risk management The Company is exposed to price risk with respect to diesel fuel purchased for use in its operations. The Company anticipates purchasing approximately 40 to 47 million gallons of diesel fuel for use in its operations during 2018 . 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, 2018 , the Company had protected the price of approximately 63% of its expected diesel fuel purchases for the remainder of 2018 at an average strike price of $1.88 per gallon. Additionally, the Company has protected approximately 34% of its expected first quarter 2019 purchases with call options with an average strike price of $2.14 per gallon. At March 31, 2018 , the Company had outstanding heating oil call options for approximately 26 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, 2018 , the Company held derivatives for risk management purposes that are expected to settle in the following years: (Tons in thousands) 2018 2019 Total Coal sales 1,601 1,124 2,725 Coal purchases 780 132 912 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. Coal trading positions The Company may sell or purchase forward contracts, swaps and options in the over-the-counter coal market for trading purposes. The Company is exposed to the risk of changes in coal prices on the value of its coal trading portfolio. The estimated future realization of the value of the trading portfolio is $0.8 million of losses during the remainder of 2018 and $0.6 million of gains during 2019 . 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, 2018 December 31, 2017 Fair Value of Derivatives Asset Liability Asset Liability (In thousands) Derivative Derivative Derivative Derivative Derivatives Designated as Hedging Instruments Coal $ 4,796 $ (884 ) $ 942 $ (2,146 ) Derivatives Not Designated as Hedging Instruments Heating oil -- diesel purchases 4,927 — 5,354 — Coal -- held for trading purposes 19,899 (20,082 ) 44,088 (45,221 ) Coal -- risk management 3,140 (5,019 ) 5,139 (9,892 ) Natural gas — — 27 — Total 27,966 (25,101 ) 54,608 (55,113 ) Total derivatives 32,762 (25,985 ) 55,550 (57,259 ) Effect of counterparty netting (25,199 ) 25,199 (50,042 ) 50,042 Net derivatives as classified in the balance sheets $ 7,563 $ (786 ) $ 6,777 $ 5,508 $ (7,217 ) $ (1,709 ) March 31, 2018 December 31, 2017 Net derivatives as reflected on the balance sheets (in thousands) Heating oil and coal Other current assets $ 7,563 $ 5,508 Coal Accrued expenses and other current liabilities (786 ) (7,217 ) $ 6,777 $ (1,709 ) The Company had a current asset for the right to reclaim cash collateral of $19.1 million and $16.2 million at March 31, 2018 and December 31, 2017 , 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) 2018 2017 2018 2017 Coal sales (1) $ 5,231 $ 220 $ — $ — Coal purchases (2) (542 ) (201 ) — — Totals $ 4,689 $ 19 $ — $ — 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, 2018 and 2017 . Based on fair values at March 31, 2018 , amounts on derivative contracts designated as hedge instruments in cash flow hedges to be reclassified from other comprehensive income into earnings during the next twelve months are gains of approximately $1.8 million . Derivatives Not Designated as Hedging Instruments (in thousands) Three Months Ended March 31, Gain (Loss) Recognized 2018 2017 Coal trading — realized and unrealized (3) $ 558 $ (658 ) Coal risk management — unrealized (3) $ 2,875 $ 26 Natural gas trading— realized and unrealized (3) $ (19 ) $ (222 ) Change in fair value of coal derivatives and coal trading activities, net total $ 3,414 $ (854 ) Coal risk management— realized (4) $ (1,031 ) $ — Heating oil — diesel purchases (4) $ 18 $ (3,578 ) ____________________________________________________________ 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 Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 2017 (In thousands) Payroll and employee benefits $ 33,480 $ 53,149 Taxes other than income taxes 76,501 77,017 Interest 254 246 Acquired sales contracts 780 934 Workers’ compensation 19,291 18,782 Asset retirement obligations 19,840 19,840 Other 8,736 14,193 $ 158,882 $ 184,161 |
Debt and Financing Arrangements
Debt and Financing Arrangements | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Financing Arrangements | Debt and Financing Arrangements March 31, December 31, 2018 2017 (In thousands) Term loan due 2024 ($297.0 million face value) $ 295,732 $ 296,435 Other 33,120 36,514 Debt issuance costs (6,782 ) (7,032 ) 322,070 325,917 Less: current maturities of debt 14,328 15,783 Long-term debt $ 307,742 $ 310,134 Term Loan Facility On March 7, 2017, the Company entered into a new senior secured term loan credit agreement (the “Credit Agreement) in an aggregate principal amount of $300 million (the “Term Loan Debt Facility) with Credit Suisse AG, Cayman Islands Branch, as administrative agent and collateral agent, and the other financial institutions from time to time party thereto (collectively, the “Lenders”). The Term Loan Debt Facility was issued at 99.50% of the face amount and will mature on March 7, 2024. The term loans provided under the Term Loan Debt Facility (the “Term Loans”) are subject to quarterly principal amortization payments in an amount equal to $750,000 . On September 25, 2017, the Company entered into the First Amendment (the “First Amendment”) to its Credit Agreement. The First Amendment reduced the interest rate on the $300 million Term Loan Debt Facility to, at the option of Arch Coal, either (i) the London interbank offered rate (“LIBOR”) plus an applicable margin of 3.25% , subject to a 1.00% LIBOR floor, or (ii) a base rate plus an applicable margin of 2.25% . The First Amendment also reset the 1.00% call premium to apply to repricing events that occur on or prior to March 26, 2018. The 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 Term Loan Debt Facility is subject to certain usual and customary mandatory prepayment events, including 100% of net cash proceeds of (i) debt issuances (other than debt permitted to be incurred under the terms of the Term Loan Debt Facility) and (ii) non-ordinary course asset sales or dispositions, subject to customary thresholds, exceptions and reinvestment rights. The Term Loan Debt Facility contains customary affirmative covenants and representations. The Term Loan Debt Facility also contains customary negative covenants, which, among other things, and subject to certain exceptions, include restrictions on (i) indebtedness, (ii) liens, (iii) liquidations, mergers, consolidations and acquisitions, (iv) disposition of assets or subsidiaries, (v) affiliate transactions, (vi) creation or ownership of certain subsidiaries, partnerships and joint ventures, (vii) continuation of or change in business, (viii) restricted payments, (ix) prepayment of subordinated and junior lien indebtedness, (x) restrictions in agreements on dividends, intercompany loans and granting liens on the collateral, (xi) loans and investments, (xii) sale and leaseback transactions, (xiii) changes in organizational documents and fiscal year and (xiv) transactions with respect to bonding subsidiaries. The Term Loan Debt Facility does not contain any financial maintenance covenant. The Term Loan Debt Facility contains customary events of default, subject to customary thresholds and exceptions, including, among other things, (i) nonpayment of principal and nonpayment of interest and fees, (ii) a material inaccuracy of a representation or warranty at the time made, (iii) a failure to comply with any covenant, subject to customary grace periods in the case of certain affirmative covenants, (iv) cross-events of default to indebtedness of at least $50 million , (v) cross-events of default to surety, reclamation or similar bonds securing obligations with an aggregate face amount of at least $50 million , (vi) uninsured judgments in excess of $50 million , (vii) any loan document shall cease to be a legal, valid and binding agreement, (viii) uninsured losses or proceedings against assets with a value in excess of $50 million , (ix) certain ERISA events, (x) a change of control or (xi) bankruptcy or insolvency proceedings relating to the Company or any material subsidiary of the Company. Accounts Receivable Securitization Facility 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 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. As of March 31, 2018, letters of credit totaling $76.0 million were outstanding under the facility which had a borrowing base of $73.1 million. As a result, there was $2.9 million cash collateral required to be posted in the facility. Inventory-Based Revolving Credit 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 “Inventory Facility”) with Regions Bank (“Regions”) as administrative agent and collateral agent, as lender and swingline lender (in such capacities, the “ Lender ”) and as letter of credit issuer. Availability under the Inventory Facility is subject to a borrowing base consisting of (i) 85% of the net orderly liquidation value of eligible coal inventory, (ii) the lesser of (x) 85% of the net orderly liquidation value of eligible parts and supplies inventory and (y) 35% of the amount determined pursuant to clause (i), and (iii) 100% of Arch Coal’s Eligible Cash (defined in the Inventory Facility), subject to reduction for reserves imposed by Regions. The commitments under the 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 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 Inventory Facility bear interest at a per annum rate equal to, at the option of Arch Coal, either 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 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 Inventory Facility (collectively with Arch Coal, the “Loan Parties”). The Inventory Facility is secured by first priority security interests in the ABL Priority Collateral (defined in the Inventory Facility) of the Loan Parties and second priority security interests in substantially all other assets of the Loan Parties, subject to customary exceptions (including an exception for the collateral that secures the Extended Securitization Facility). Arch Coal has the right to prepay borrowings under the Inventory Facility at any time and from time to time in whole or in part without premium or penalty, upon written notice, except that any prepayment of such borrowings that bear interest at the LIBOR rate other than at the end of the applicable interest periods therefore shall be made with reimbursement for any funding losses and redeployment costs of the Lender resulting therefrom. The Inventory Facility is subject to certain usual and customary mandatory prepayment events, including non-ordinary course asset sales or dispositions, subject to customary thresholds, exceptions (including exceptions for required prepayments under Arch Coal’s term loan facility) and reinvestment rights. The Inventory Facility contains certain customary affirmative and negative covenants; events of default, subject to customary thresholds and exceptions; and representations, including certain cash management and reporting requirements that are customary for asset-based credit facilities. The Inventory Facility also includes a requirement to maintain Liquidity equal to or exceeding $175 million at all times. As of March 31, 2018 , letters of credit totaling $35.2 million were outstanding under the facility with $4.8 million available for borrowings. Interest Rate Swaps During the second quarter of 2017, the Company entered into a series of interest rate swaps to fix a portion of the LIBOR interest rate within the term loan. The interest rate swaps qualify for cash flow hedge accounting treatment and as such, the change in the fair value of the interest rate swaps are recorded on the Company’s Condensed Consolidated Balance Sheet as an asset or liability with the effective portion of the gains or losses reported as a component of accumulated other comprehensive income and the ineffective portion reported in earnings. As interest payments are made on the term loan, amounts in accumulated other comprehensive income will be reclassified into earnings through interest expense to reflect a net interest on the term loan equal to the effective yield of the fixed rate of the swap plus 3.25% which is the spread on the revised LIBOR term loan. In the event that an interest rate swap is terminated prior to maturity, gains or losses in accumulated other comprehensive income will remain deferred and reclassified into earnings in the periods which the hedged forecasted transaction affects earnings. Below is a summary of the Company’s outstanding interest rate swap agreements designated as hedges as of March 31, 2018 : Notional Amount (in millions) Effective Date Fixed Rate Receive Rate Expiration Date $250.0 June 30, 2017 1.372% 1-month LIBOR June 29, 2018 $250.0 June 29, 2018 1.662% 1-month LIBOR June 28, 2019 $200.0 June 28, 2019 1.952% 1-month LIBOR June 30, 2020 $100.0 June 30, 2020 2.182% 1-month LIBOR June 30, 2021 The fair value of the interest rate swaps at March 31, 2018 is an asset of $3.7 million which is recorded within Other noncurrent assets with the offset to accumulated other comprehensive income on the Company’s Condensed Consolidated Balance Sheet. The Company realized $0.1 million of gains during the three months ended March 31, 2018 related to settlements of the interest rate swaps which was recorded to interest expense on the Company’s Condensed Consolidated Income Statements. The interest rate swaps are classified as level 2 within the fair value hierarchy. Financing Costs During the three months ended March 31, 2017 , the Company paid $7.2 million primarily related to the issuance of the Term Loan Debt facility discussed above. These issuance costs were capitalized and amortized using the effective interest method over the term of the facility. 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 related to the extinguishment of the “Previous First Lien Debt Facility” and initial efforts to replace the accounts receivable securitization facility. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
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: Three Months Ended March 31, 2018 2017 (In thousands) Income tax provision (benefit) at statutory rate $ 12,483 $ 18,376 Percentage depletion allowance (4,607 ) (7,039 ) State taxes, net of effect of federal taxes 754 483 Change in valuation allowance (10,639 ) (11,900 ) Other, net 1,465 920 $ (544 ) $ 840 On December 22, 2017 the Tax Cut and Jobs Act of 2017 (“the Act”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, the elimination of the corporate alternative minimum tax regime effective for tax years beginning after December 31, 2017, implementation of a process whereby corporations with unused alternative minimum tax credits will be refunded during 2018-2022, the transition of U.S. international taxation from a worldwide tax system to a territorial system, a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017, further limitation on the deductibility of certain executive compensation, allowance for immediate capital expensing of certain qualified property, and limitations on the amount of interest expense deductible beginning in 2018. The Company has not completed its analysis for the income tax effects of the Act but has provided its best estimate of the impact of the Act for 2017 in its year-end income tax provision in accordance with the guidance and interpretations available at that time as provided under SAB 118. The Company has also recorded provisional adjustments under SAB 118 as part of the forecasted effective tax rate for 2018. The Company will finalize the analysis for the estimate by December 22, 2018, within the one year measurement period under SAB 118. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
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 U.S. Treasury securities, and coal swaps and 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, coal commodity contracts and interest rate swaps with fair values derived from quoted prices in over-the-counter markets or from prices received from direct broker quotes. · 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, 2018 . 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, 2018 Total Level 1 Level 2 Level 3 (In thousands) Assets: Investments in marketable securities $ 144,652 $ 56,677 $ 87,975 $ — Derivatives 11,262 1,882 4,411 4,969 Total assets $ 155,914 $ 58,559 $ 92,386 $ 4,969 Liabilities: Derivatives $ 786 $ — $ 786 $ — 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, 2018 (In thousands) Balance, beginning of period $ 5,426 Realized and unrealized gains recognized in earnings, net 25 Purchases 833 Issuances (74 ) Settlements (1,241 ) Ending balance $ 4,969 Net unrealized gains of $0.4 million were recognized in the Condensed Consolidated Income Statements within Other operating income, net during the three months ended March 31, 2018 related to Level 3 financial instruments held on March 31, 2018 . Fair Value of Long-Term Debt At March 31, 2018 and December 31, 2017 , the fair value of the Company’s debt, including amounts classified as current, was $332.3 million and $336.1 million , respectively. Fair values are based upon observed prices in an active market, when available, or from valuation models using market information, which fall into Level 2 in the fair value hierarchy. |
Earnings per common share
Earnings per common share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings (loss) per common share | Earnings 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: Three Months Ended March 31, 2018 2017 (In thousands) Weighted average shares outstanding: Basic weighted average shares outstanding 20,901 25,008 Effect of dilutive securities 974 400 Diluted weighted average shares outstanding 21,875 25,408 |
Workers Compensation Expense
Workers Compensation Expense | 3 Months Ended |
Mar. 31, 2018 | |
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 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: Three Months Ended March 31, 2018 2017 (In thousands) Self-insured occupational disease benefits: Service cost $ 1,860 $ 1,558 Interest cost (1) 1,195 1,169 Total occupational disease $ 3,055 $ 2,727 Traumatic injury claims and assessments 3,011 2,878 Total workers’ compensation expense $ 6,066 $ 5,605 (1) In accordance with the adoption of ASU 2017-07, “Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” these costs are recorded within Nonoperating expenses in the Condensed Consolidated Income Statements on the line item “Non-service related pension and postretirement benefit costs.” For additional information about the adoption of the standard, see Note 2 , “ Accounting Policies ” in the Condensed Consolidated Financial Statements. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2018 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The following table details the components of pension benefit costs (credits): Three Months Ended March 31, 2018 2017 (In thousands) Interest cost (1) $ 2,271 $ 2,991 Expected return on plan assets (1) (3,081 ) (4,497 ) Net benefit credit $ (810 ) $ (1,506 ) The following table details the components of other postretirement benefit costs: Three Months Ended March 31, 2018 2017 (In thousands) Service cost $ 140 $ 170 Interest cost (1) 918 1,058 Net benefit cost $ 1,058 $ 1,228 (1) In accordance with the adoption of ASU 2017-07, “Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” these costs are recorded within Nonoperating expenses in the Condensed Consolidated Income Statements on the line item “Non-service related pension and postretirement benefit costs.” For additional information about the adoption of the standard, see Note 2 , “ Accounting Policies ” in the Condensed Consolidated Financial Statements. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 and December 31, 2017 , the Company had accrued $0.3 million and $0.2 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, 2018 | |
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 EBITDA, per-ton cash operating costs (defined as including all mining costs except depreciation, depletion, amortization, accretion on asset retirement obligations, and pass-through transportation expenses), and on other non-financial measures, such as safety and environmental performance. Adjusted EBITDA is not a measure of financial performance in accordance with generally accepted accounting principles, and items excluded from Adjusted EBITDA are significant in understanding and assessing our financial condition. Therefore, Adjusted EBITDA 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 EBITDA to measure the operating performance of its segments and allocate resources to the segments. Furthermore, analogous measures are used by industry analysts and investors to evaluate the Company’s operating performance. Investors should be aware that the Company’s presentation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies. The Company reports its results of operations primarily through the following reportable segments: Powder River Basin (PRB) segment containing the 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. On September 14, 2017, the Company closed on its’ definitive agreement to sell Lone Mountain Processing LLC, an operating mine complex within the Company’s metallurgical coal segment. Through this transaction the Company divested all active operations in the states of Kentucky and Virginia. Operating segment results for the three months ended March 31, 2018 and 2017 , are presented below. The Company measures its segments based on “adjusted earnings before interest, taxes, depreciation, depletion, amortization, accretion on asset retirements obligations, and nonoperating expenses (Adjusted EBITDA).” Adjusted EBITDA does not reflect mine closure or impairment costs, since those are not reflected in the operating income reviewed by management. 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 (in thousands) Three Months Ended March 31, 2018 Revenues $ 245,428 $ 238,347 $ 91,520 $ — $ 575,295 Adjusted EBITDA 27,502 83,742 15,669 (22,000 ) 104,913 Depreciation, depletion and amortization 8,423 16,986 3,835 459 29,703 Accretion on asset retirement obligation 4,885 469 565 1,073 6,992 Total assets 383,823 548,804 130,132 913,919 1,976,678 Capital expenditures 698 5,829 1,206 1,720 9,453 Three Months Ended March 31, 2017 Revenues $ 273,428 $ 225,582 $ 101,906 $ 59 $ 600,975 Adjusted EBITDA 48,006 68,310 27,242 (22,339 ) 121,219 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 Total assets 433,370 575,789 128,529 1,007,228 2,144,916 Capital expenditures 128 4,610 741 471 5,950 A reconciliation of adjusted EBITDA to consolidated income before income taxes follows: Three Months Ended March 31, 2018 2017 (In thousands) Income before income taxes $ 59,441 $ 52,508 Interest expense, net 4,122 8,898 Depreciation, depletion and amortization 29,703 31,921 Accretion on asset retirement obligations 6,992 7,623 Amortization of sales contracts, net 3,051 14,690 Net loss resulting from early retirement of debt and debt restructuring — 2,030 Non-service related pension and postretirement benefit costs 1,303 721 Reorganization items, net 301 2,828 Adjusted EBITDA $ 104,913 $ 121,219 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition ASC 606-10-50-5 requires that entities disclose disaggregated revenue information in categories (such as type of good or service, geography, market, type of contract, etc.) that depict how the nature, amount, timing, and uncertainty of revenue and cash flow are affected by economic factors. ASC 606-10-55-89 explains that the extent to which an entity’s revenue is disaggregated depends on the facts and circumstances that pertain to the entity’s contracts with customers and that some entities may need to use more than one type of category to meet the objective for disaggregating revenue. In general, the Company’s business segmentation is aligned according to the nature and economic characteristics of its coal and customer relationships and provides meaningful disaggregation of each segment’s results. The company has further disaggregated revenue between North America and Seaborne revenues which depicts the pricing and contract differences between the two. North America revenue is characterized by contracts with a term of one year or longer and typically the pricing is fixed; whereas Seaborne revenue generally is derived by spot or short term contracts with an indexed based pricing mechanism. PRB MET Other Thermal Corporate, Other and Eliminations Consolidated (in thousands) Three Months Ended March 31, 2018 North America revenues $ 244,360 $ 29,678 $ 43,667 $ — $ 317,705 Seaborne revenues 1,068 208,669 47,853 — 257,590 Total revenues $ 245,428 $ 238,347 $ 91,520 $ — $ 575,295 Three Months Ended March 31, 2017 North America revenues $ 273,428 $ 68,734 $ 68,964 $ 59 $ 411,185 Seaborne revenues — 156,848 32,942 — 189,790 Total revenues $ 273,428 $ 225,582 $ 101,906 $ 59 $ 600,975 As of March 31, 2018 , the Company has outstanding performance obligations for the remainder of 2018 of 51.4 million tons of fixed price contracts and 4.0 million tons of variable price contracts. Additionally, the Company has outstanding performance obligations beyond 2018 of approximately 48.6 million tons of fixed price contracts and 6.4 million tons of variable price contracts. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On April 3, 2018, the Company entered into the Second Amendment (the “Second Amendment”) to its Credit Agreement. The Second Amendment further reduces the interest rate on its $300 million Term Loan Debt Facility to, at the option of Arch Coal, either (i) the London interbank offered rate (“LIBOR”) plus an applicable margin of 2.75% , subject to a 1.00% LIBOR floor, or (ii) a base rate plus an applicable margin of 1.75% . The Second Amendment also resets the 1.00% call premium to apply to repricing events that occur on or prior to October 3, 2018. senior secured term loan facility. The LIBOR floor remains at 1.0% . There is no change to the maturities as a result of the Second Amendment. The reduction in interest rate is expected to generate incremental annual cash interest savings of $1.5 million . |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 are not necessarily indicative of results to be expected for the year ending December 31, 2018 . 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, 2017 included in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission. |
Recently Adopted Accounting Guidance and Recent Accounting Guidance Issued Not Yet Effective | Recently Adopted Accounting Guidance 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 has superseded nearly all existing revenue recognition guidance under current U.S. GAAP and replaced it with a principle based approach for determining revenue recognition. ASU 2014-09 requires that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also requires 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. 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. During the fourth quarter of 2017, the Company finalized its assessment related to the new standard by analyzing certain contracts representative of the majority of the Company’s coal sales and determined that the timing of revenue recognition related to the Company’s coal sales will remain consistent between the new standard and the previous standard. The Company also reviewed other sources of revenue, and concluded the current basis of accounting for these items is in accordance with the new standard. The Company adopted ASU 2014-09 effective January 1, 2018 using the modified retrospective method, and there was no cumulative adjustment to retained earnings. The Company also reviewed the disclosure requirements under the new standard and has compiled information needed for the expanded disclosures which are included within Note 18 , “ Revenue Recognition ” in the Condensed Consolidated Financial Statements. In August 2016, the FASB issued ASU No. 2016-15, “Classification of Certain Cash Receipts and Cash Payments.” The amendment requires the classification of certain cash receipts and cash payments in the statement of cash flows to reduce diversity in practice. The new guidance will be effective for fiscal years beginning after December 15, 2017 and the interim periods therein, with early adoption permitted. The amendments in the classification should be applied retrospectively to all periods presented, unless deemed impracticable, in which case, the prospective application is permitted. The Company adopted ASU 2016-15 effective January 1, 2018 with no impact on the Company’s financial statements. In November 2016, FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash.” The ASU applies to all entities that have restricted cash or restricted cash equivalents and are required to present a statement of cash flows. The ASU requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. As a result, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. The ASU is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The ASU should be adopted using a retrospective transition method to each period presented. The Company adopted ASU 2016-18 effective January 1, 2018 and applied the ASU retrospectively to the periods presented in the Company's Condensed Consolidated Statements of Cash Flow. As a result, net cash used in investing activities for the three months ended March 31, 2017 was adjusted to exclude the change in restricted cash as follows: (in thousands) Three Months Ended March 31, 2017 Cash used in investing activities previously reported $ (44,069 ) Less: Withdrawals of restricted cash 2,066 Cash used in investing activities $ (46,135 ) 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 ASU is effective for public companies for fiscal years beginning after December 15, 2017, and interim periods therein. The ASU should be adopted using a retrospective transition method to each period presented. The Company adopted ASU 2017-07 effective January 1, 2018 and applied the ASU retrospectively to the periods presented in the Company's Condensed Consolidated Income Statements. The retrospective application resulted in a $0.9 million reduction in cost of coal sales and a $0.2 million increase in selling, general and administrative costs with the corresponding offset to Nonoperating expense for the three months ended March 31, 2017 . Recent Accounting Guidance Issued Not Yet Effective In February 2016, the FASB issued ASU No. 2016-02, “Leases” which, for operating leases, requires a lessee to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in its balance sheet. The standard also requires a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over the term of the lease, on a generally straight line basis. The ASU is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years; early adoption is permitted. The Company has both operating and capital leases. We expect the adoption of this standard to result in the recognition of right-of-use assets and lease liabilities not currently recorded on the Company’s financial statements. The Company is currently in the process of accumulating all contractual lease arrangements in order to determine the impact on its financial statements. In February 2018, the FASB issued ASU 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” ASU 2018-02 provides an option to reclassify stranded tax effects within accumulated other comprehensive income to retained earnings due to the change in the U.S. federal tax rate in the Tax Cuts and Jobs Act of 2017. The ASU is effective for public companies for fiscal years beginning after December 15, 2018, and interim periods therein with early adoption permitted. The Company is currently in the process of analyzing the standard, but does not expect a significant impact to the Company’s financial statements. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of net cash used in investing activities | As a result, net cash used in investing activities for the three months ended March 31, 2017 was adjusted to exclude the change in restricted cash as follows: (in thousands) Three Months Ended March 31, 2017 Cash used in investing activities previously reported $ (44,069 ) Less: Withdrawals of restricted cash 2,066 Cash used in investing activities $ (46,135 ) |
Accumulated Other Comprehensi29
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2017 $ 647 $ 19,720 $ — $ 20,367 Unrealized gains (losses) 6,697 — (658 ) 6,039 Amounts reclassified from AOCI (140 ) — — (140 ) Balance at March 31, 2018 $ 7,204 $ 19,720 $ (658 ) $ 26,266 |
Schedule of Comprehensive Income Reclassifications | The following amounts were reclassified out of AOCI: Three Months Ended March 31, Details About AOCI Components 2018 2017 Line Item in the Condensed Consolidated Statement of Operations (In thousands) Coal hedges $ — $ — Revenues Interest rate hedges 140 — Interest expense — — Provision for (benefit from) income taxes $ 140 $ — Net of tax Pension, postretirement and other post-employment benefits Amortization of prior service credits $ — $ — Amortization of actuarial gains (losses), net — — — — — — Provision for (benefit from) income taxes $ — $ — Net of tax Available-for-sale securities $ — $ 332 Interest and investment income — — Provision for (benefit from) income taxes $ — $ 332 Net of tax |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following: March 31, December 31, 2018 2017 (In thousands) Coal $ 63,884 $ 54,692 Repair parts and supplies 79,947 74,268 $ 143,831 $ 128,960 |
Investments in Available-for-31
Investments in Available-for-Sale Securities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Available-for-sale Securities [Abstract] | |
Available-for-sale Securities | The Company’s investments in available-for-sale marketable securities are as follows: March 31, 2018 Balance Sheet Classification Gross Unrealized Fair Short-Term Other Cost Basis Gains Losses Value Investments Assets (In thousands) Available-for-sale: U.S. government and agency securities $ 56,798 $ — $ (121 ) $ 56,677 $ 56,677 $ — Corporate notes and bonds 88,512 — (537 ) 87,975 87,975 — Total Investments $ 145,310 $ — $ (658 ) $ 144,652 $ 144,652 $ — December 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. government and agency securities $ 64,151 $ 22 $ (73 ) $ 64,100 $ 64,100 $ — Corporate notes and bonds 92,038 — (292 ) 91,746 91,746 — Total Investments $ 156,189 $ 22 $ (365 ) $ 155,846 $ 155,846 $ — |
Sales Contracts (Tables)
Sales Contracts (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Acquired Sales Contracts [Abstract] | |
Schedule of Sales Contracts | The sales contracts reflected in the Condensed Consolidated Balance Sheets are as follows: March 31, 2018 December 31, 2017 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 (88,130 ) (30,298 ) (84,760 ) (29,979 ) Total $ 9,066 $ 1,444 $ 7,622 $ 12,436 $ 1,763 $ 10,673 Balance Sheet classification: Other current $ 9,062 $ 780 $ 12,432 $ 934 Other noncurrent $ 4 $ 664 $ 4 $ 829 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Price Risk Derivatives | At March 31, 2018 , the Company held derivatives for risk management purposes that are expected to settle in the following years: (Tons in thousands) 2018 2019 Total Coal sales 1,601 1,124 2,725 Coal purchases 780 132 912 |
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, 2018 December 31, 2017 Fair Value of Derivatives Asset Liability Asset Liability (In thousands) Derivative Derivative Derivative Derivative Derivatives Designated as Hedging Instruments Coal $ 4,796 $ (884 ) $ 942 $ (2,146 ) Derivatives Not Designated as Hedging Instruments Heating oil -- diesel purchases 4,927 — 5,354 — Coal -- held for trading purposes 19,899 (20,082 ) 44,088 (45,221 ) Coal -- risk management 3,140 (5,019 ) 5,139 (9,892 ) Natural gas — — 27 — Total 27,966 (25,101 ) 54,608 (55,113 ) Total derivatives 32,762 (25,985 ) 55,550 (57,259 ) Effect of counterparty netting (25,199 ) 25,199 (50,042 ) 50,042 Net derivatives as classified in the balance sheets $ 7,563 $ (786 ) $ 6,777 $ 5,508 $ (7,217 ) $ (1,709 ) March 31, 2018 December 31, 2017 Net derivatives as reflected on the balance sheets (in thousands) Heating oil and coal Other current assets $ 7,563 $ 5,508 Coal Accrued expenses and other current liabilities (786 ) (7,217 ) $ 6,777 $ (1,709 ) |
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) 2018 2017 2018 2017 Coal sales (1) $ 5,231 $ 220 $ — $ — Coal purchases (2) (542 ) (201 ) — — Totals $ 4,689 $ 19 $ — $ — 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, 2018 and 2017 . Based on fair values at March 31, 2018 , amounts on derivative contracts designated as hedge instruments in cash flow hedges to be reclassified from other comprehensive income into earnings during the next twelve months are gains of approximately $1.8 million . Derivatives Not Designated as Hedging Instruments (in thousands) Three Months Ended March 31, Gain (Loss) Recognized 2018 2017 Coal trading — realized and unrealized (3) $ 558 $ (658 ) Coal risk management — unrealized (3) $ 2,875 $ 26 Natural gas trading— realized and unrealized (3) $ (19 ) $ (222 ) Change in fair value of coal derivatives and coal trading activities, net total $ 3,414 $ (854 ) Coal risk management— realized (4) $ (1,031 ) $ — Heating oil — diesel purchases (4) $ 18 $ (3,578 ) ____________________________________________________________ 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 Cu34
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued expenses and other current liabilities consist of the following: March 31, December 31, 2018 2017 (In thousands) Payroll and employee benefits $ 33,480 $ 53,149 Taxes other than income taxes 76,501 77,017 Interest 254 246 Acquired sales contracts 780 934 Workers’ compensation 19,291 18,782 Asset retirement obligations 19,840 19,840 Other 8,736 14,193 $ 158,882 $ 184,161 |
Debt and Financing Arrangemen35
Debt and Financing Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | March 31, December 31, 2018 2017 (In thousands) Term loan due 2024 ($297.0 million face value) $ 295,732 $ 296,435 Other 33,120 36,514 Debt issuance costs (6,782 ) (7,032 ) 322,070 325,917 Less: current maturities of debt 14,328 15,783 Long-term debt $ 307,742 $ 310,134 |
Schedule of Interest Rate Derivatives | earnings. Below is a summary of the Company’s outstanding interest rate swap agreements designated as hedges |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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: Three Months Ended March 31, 2018 2017 (In thousands) Income tax provision (benefit) at statutory rate $ 12,483 $ 18,376 Percentage depletion allowance (4,607 ) (7,039 ) State taxes, net of effect of federal taxes 754 483 Change in valuation allowance (10,639 ) (11,900 ) Other, net 1,465 920 $ (544 ) $ 840 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 Total Level 1 Level 2 Level 3 (In thousands) Assets: Investments in marketable securities $ 144,652 $ 56,677 $ 87,975 $ — Derivatives 11,262 1,882 4,411 4,969 Total assets $ 155,914 $ 58,559 $ 92,386 $ 4,969 Liabilities: Derivatives $ 786 $ — $ 786 $ — |
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, 2018 (In thousands) Balance, beginning of period $ 5,426 Realized and unrealized gains recognized in earnings, net 25 Purchases 833 Issuances (74 ) Settlements (1,241 ) Ending balance $ 4,969 |
Earnings per common share (Tabl
Earnings per common share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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: Three Months Ended March 31, 2018 2017 (In thousands) Weighted average shares outstanding: Basic weighted average shares outstanding 20,901 25,008 Effect of dilutive securities 974 400 Diluted weighted average shares outstanding 21,875 25,408 |
Workers Compensation Expense (T
Workers Compensation Expense (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Compensation Related Costs [Abstract] | |
Workers' compensation expense | Workers’ compensation expense consists of the following components: Three Months Ended March 31, 2018 2017 (In thousands) Self-insured occupational disease benefits: Service cost $ 1,860 $ 1,558 Interest cost (1) 1,195 1,169 Total occupational disease $ 3,055 $ 2,727 Traumatic injury claims and assessments 3,011 2,878 Total workers’ compensation expense $ 6,066 $ 5,605 (1) In accordance with the adoption of ASU 2017-07, “Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” these costs are recorded within Nonoperating expenses in the Condensed Consolidated Income Statements on the line item “Non-service related pension and postretirement benefit costs.” For additional information about the adoption of the standard, see Note 2 , “ Accounting Policies ” in the Condensed Consolidated Financial Statements. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Pension Benefit Costs | The following table details the components of pension benefit costs (credits): Three Months Ended March 31, 2018 2017 (In thousands) Interest cost (1) $ 2,271 $ 2,991 Expected return on plan assets (1) (3,081 ) (4,497 ) Net benefit credit $ (810 ) $ (1,506 ) The following table details the components of other postretirement benefit costs: Three Months Ended March 31, 2018 2017 (In thousands) Service cost $ 140 $ 170 Interest cost (1) 918 1,058 Net benefit cost $ 1,058 $ 1,228 (1) In accordance with the adoption of ASU 2017-07, “Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” these costs are recorded within Nonoperating expenses in the Condensed Consolidated Income Statements on the line item “Non-service related pension and postretirement benefit costs.” For additional information about the adoption of the standard, see Note 2 , “ Accounting Policies ” in the Condensed Consolidated Financial Statements. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 (in thousands) Three Months Ended March 31, 2018 Revenues $ 245,428 $ 238,347 $ 91,520 $ — $ 575,295 Adjusted EBITDA 27,502 83,742 15,669 (22,000 ) 104,913 Depreciation, depletion and amortization 8,423 16,986 3,835 459 29,703 Accretion on asset retirement obligation 4,885 469 565 1,073 6,992 Total assets 383,823 548,804 130,132 913,919 1,976,678 Capital expenditures 698 5,829 1,206 1,720 9,453 Three Months Ended March 31, 2017 Revenues $ 273,428 $ 225,582 $ 101,906 $ 59 $ 600,975 Adjusted EBITDA 48,006 68,310 27,242 (22,339 ) 121,219 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 Total assets 433,370 575,789 128,529 1,007,228 2,144,916 Capital expenditures 128 4,610 741 471 5,950 |
Reconciliation Statement of Segment Income from Operations to Consolidated Income Before Income Taxes | A reconciliation of adjusted EBITDA to consolidated income before income taxes follows: Three Months Ended March 31, 2018 2017 (In thousands) Income before income taxes $ 59,441 $ 52,508 Interest expense, net 4,122 8,898 Depreciation, depletion and amortization 29,703 31,921 Accretion on asset retirement obligations 6,992 7,623 Amortization of sales contracts, net 3,051 14,690 Net loss resulting from early retirement of debt and debt restructuring — 2,030 Non-service related pension and postretirement benefit costs 1,303 721 Reorganization items, net 301 2,828 Adjusted EBITDA $ 104,913 $ 121,219 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of effects of revenue recognition | PRB MET Other Thermal Corporate, Other and Eliminations Consolidated (in thousands) Three Months Ended March 31, 2018 North America revenues $ 244,360 $ 29,678 $ 43,667 $ — $ 317,705 Seaborne revenues 1,068 208,669 47,853 — 257,590 Total revenues $ 245,428 $ 238,347 $ 91,520 $ — $ 575,295 Three Months Ended March 31, 2017 North America revenues $ 273,428 $ 68,734 $ 68,964 $ 59 $ 411,185 Seaborne revenues — 156,848 32,942 — 189,790 Total revenues $ 273,428 $ 225,582 $ 101,906 $ 59 $ 600,975 |
Accounting Policies - Cash used
Accounting Policies - Cash used in investing activities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash used in investing activities | $ 1,481 | $ (46,135) |
Cost of sales | 454,780 | 460,450 |
Selling, general and administrative expenses | 25,948 | 20,762 |
Accounting Standards Update 2016-08 | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cost of sales | (900) | |
Selling, general and administrative expenses | $ 200 | |
Accounting Standards Update 2016-08 | Cash used in investing activities previously reported | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash used in investing activities | (44,069) | |
Accounting Standards Update 2016-08 | Less: Withdrawals of restricted cash | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash used in investing activities | $ 2,066 |
Accumulated Other Comprehensi44
Accumulated Other Comprehensive Income (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprenhensive Income (Loss) [Roll Forward] | ||
Beginning Balance | $ 665,865 | |
Unrealized gains (losses) | 6,039 | |
Amounts reclassified from AOCI | (140) | |
Ending Balance | 688,462 | |
Accumulated Other Comprehensive Income | ||
Accumulated Other Comprenhensive Income (Loss) [Roll Forward] | ||
Beginning Balance | 20,367 | |
Ending Balance | 26,266 | |
Derivative instruments | ||
Accumulated Other Comprenhensive Income (Loss) [Roll Forward] | ||
Beginning Balance | 647 | |
Unrealized gains (losses) | 6,697 | |
Amounts reclassified from AOCI | (140) | |
Ending Balance | 7,204 | |
Pension, Postretirement and Other Postemployment Benefits | ||
Accumulated Other Comprenhensive Income (Loss) [Roll Forward] | ||
Beginning Balance | 19,720 | |
Unrealized gains (losses) | 0 | |
Amounts reclassified from AOCI | 0 | $ 0 |
Ending Balance | 19,720 | |
Available-for-sale securities | ||
Accumulated Other Comprenhensive Income (Loss) [Roll Forward] | ||
Beginning Balance | 0 | |
Unrealized gains (losses) | (658) | |
Amounts reclassified from AOCI | 0 | |
Ending Balance | $ (658) |
Accumulated Other Comprehensi45
Accumulated Other Comprehensive Income (Schedule of Reclassifications) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Revenues | $ 575,295 | $ 600,975 |
Interest expense | (5,395) | (9,425) |
Provision for (benefit from) income taxes | 544 | (840) |
Net income | 59,985 | 51,668 |
Net of tax | 140 | |
Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net of tax | 140 | |
Pension, Postretirement and Other Postemployment Benefits | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Reclassification from AOCI before tax | 0 | 0 |
Provision for (benefit from) income taxes | 0 | 0 |
Net of tax | 0 | 0 |
Amortization of prior service credits | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Reclassification from AOCI before tax | 0 | 0 |
Amortization of actuarial gains (losses), net | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Reclassification from AOCI before tax | 0 | |
Available-for-sale securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net of tax | 0 | |
Reclassification out of Accumulated Other Comprehensive Income | Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Revenues | 0 | 0 |
Interest expense | 140 | 0 |
Provision for (benefit from) income taxes | 0 | 0 |
Net income | 140 | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Available-for-sale securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Provision for (benefit from) income taxes | 0 | 0 |
Interest and investment income | 0 | 332 |
Net income | $ 0 | $ 332 |
Reorganization items, net (Narr
Reorganization items, net (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Reorganization items, net | $ (301) | $ (2,828) |
Payments for reorganization items | $ 200 | $ 3,700 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Coal | $ 63,884 | $ 54,692 |
Repair parts and supplies | 79,947 | 74,268 |
Inventories | 143,831 | 128,960 |
Allowance for slow-moving and obsolete inventories | $ (900) | $ (300) |
Investments in Available-for-48
Investments in Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities, Current | $ 144,652 | $ 155,846 |
Total Investments, Cost Basis | 145,310 | 156,189 |
Total Investments, Accumulated Gross Unrealized Gains | 0 | 22 |
Total Investments, Accumulated Gross Unrealized Losses | (658) | (365) |
Total Investments | 144,652 | 155,846 |
Short-term Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Investments, Current | 144,652 | 155,846 |
Other Assets | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total Investments, Noncurrent | 0 | 0 |
U.S. government and agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities, Cost Basis | 56,798 | |
Debt Securities, Accumulated Gross Unrealized Gains | 0 | |
Debt Securities, Accumulated Gross Unrealized Losses | (121) | |
Debt Securities | 56,677 | |
U.S. government and agency securities | Short-term Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities, Current | 56,677 | |
U.S. government and agency securities | Other Assets | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities, Noncurrent | 0 | |
Corporate notes and bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities, Cost Basis | 88,512 | 64,151 |
Debt Securities, Accumulated Gross Unrealized Gains | 0 | 22 |
Debt Securities, Accumulated Gross Unrealized Losses | (537) | (73) |
Debt Securities | 87,975 | 64,100 |
Corporate notes and bonds | Short-term Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities, Current | 87,975 | 64,100 |
Corporate notes and bonds | Other Assets | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities, Noncurrent | $ 0 | 0 |
Corporate notes and bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity Securities, Cost Basis | 92,038 | |
Equity Securities, Accumulated Gross Unrealized Gains | 0 | |
Equity Securities, Accumulated Gross Unrealized Losses | (292) | |
Equity securities | 91,746 | |
Corporate notes and bonds | Short-term Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity Securities, Current | 91,746 | |
Corporate notes and bonds | Other Assets | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity Securities, Noncurrent | $ 0 |
Investments in Available-for-49
Investments in Available-for-Sale Securities (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Available-for-sale Securities [Abstract] | ||
Unrealized losses owned for less than 12 months | $ 94.7 | $ 132 |
Unrealized losses owned for greater than 12 months | $ 50 | $ 0 |
Sales Contracts (Schedule of Sa
Sales Contracts (Schedule of Sales Contracts) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
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 | (88,130) | (84,760) |
Accumulated amortization, Liabilities | (30,298) | (29,979) |
Total, Assets | 9,066 | 12,436 |
Total, Liabilities | 1,444 | 1,763 |
Net total, Liabilities | 7,622 | 10,673 |
Coal Supply Agreement, Liabilities | 780 | 934 |
Other current assets | ||
Acquired Finite-Lived Intangible Assets And Liabilities By Major Class [Line Items] | ||
Coal supply agreement, Assets | 9,062 | 12,432 |
Other Current Liabilities | ||
Acquired Finite-Lived Intangible Assets And Liabilities By Major Class [Line Items] | ||
Coal Supply Agreement, Liabilities | 780 | 934 |
Other Noncurrent Assets | ||
Acquired Finite-Lived Intangible Assets And Liabilities By Major Class [Line Items] | ||
Coal supply agreement, Assets | 4 | 4 |
Other Noncurrent Liabilities | ||
Acquired Finite-Lived Intangible Assets And Liabilities By Major Class [Line Items] | ||
Coal Supply Agreement, Liabilities | $ 664 | $ 829 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) gal in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018USD ($)$ / optiongal | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Derivative [Line Items] | ||||
Current liability for the obligation to return cash collateral | $ | $ 19.1 | $ 16.2 | ||
Derivative contracts expected to be reclassificed from OCI into earnings | $ | $ 1.8 | |||
Not Designated as Hedging Instrument | Heating Oil | ||||
Derivative [Line Items] | ||||
Percent of expected requirements covered | 63.00% | |||
Derivative, average price risk option strike price (in usd per gallon) | $ / option | 1.88 | |||
Not Designated as Hedging Instrument | Diesel Purchases | ||||
Derivative [Line Items] | ||||
Percent of expected requirements covered | 34.00% | |||
Derivative, average price risk option strike price (in usd per gallon) | $ / option | 2.14 | |||
Not Designated as Hedging Instrument | Diesel Purchases | Heating Oil | ||||
Derivative [Line Items] | ||||
Quantities under derivative contracts (in gallons) | gal | 26 | |||
Not Designated as Hedging Instrument | Diesel Purchases | Minimum | ||||
Derivative [Line Items] | ||||
Gallons of diesel fuel purchased annually | gal | 40 | |||
Not Designated as Hedging Instrument | Diesel Purchases | Maximum | ||||
Derivative [Line Items] | ||||
Gallons of diesel fuel purchased annually | gal | 47 | |||
Scenario, Forecast | ||||
Derivative [Line Items] | ||||
Value of trading portfolio realized | $ | $ 0.6 | $ (0.8) |
Derivatives (Schedule of Price
Derivatives (Schedule of Price Risk Derivatives) (Details) T in Thousands | 3 Months Ended |
Mar. 31, 2018T | |
Coal sales | |
Derivative [Line Items] | |
Derivatives held (in tons) | 2,725 |
Coal purchases | |
Derivative [Line Items] | |
Derivatives held (in tons) | 912 |
2018 | Coal sales | |
Derivative [Line Items] | |
Derivatives held (in tons) | 1,601 |
2018 | Coal purchases | |
Derivative [Line Items] | |
Derivatives held (in tons) | 780 |
2019 | Coal sales | |
Derivative [Line Items] | |
Derivatives held (in tons) | 1,124 |
2019 | Coal purchases | |
Derivative [Line Items] | |
Derivatives held (in tons) | 132 |
Derivatives (Disclosure Of Fair
Derivatives (Disclosure Of Fair Value Of Derivatives) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Derivative Assets | $ 32,762 | $ 55,550 |
Derivative Liabilities | (25,985) | (57,259) |
Effect of counterparty netting in derivative assets | (25,199) | (50,042) |
Effect of counterparty netting in derivative liabilities | 25,199 | 50,042 |
Derivative Asset | 7,563 | 5,508 |
Derivative Liability | (786) | (7,217) |
Net derivatives as classified in the balance sheet | 6,777 | (1,709) |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Assets | 27,966 | 54,608 |
Derivative Liabilities | (25,101) | (55,113) |
Not Designated as Hedging Instrument | Coal Contract | ||
Derivative [Line Items] | ||
Derivative Assets | 19,899 | 44,088 |
Derivative Liabilities | (20,082) | (45,221) |
Coal Contract | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Assets | 4,796 | 942 |
Derivative Liabilities | (884) | (2,146) |
Coal Contract | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Assets | 3,140 | 5,139 |
Derivative Liabilities | (5,019) | (9,892) |
Heating oil — diesel purchases | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Assets | 4,927 | 5,354 |
Derivative Liabilities | 0 | 0 |
Natural gas — unrealized | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Assets | 0 | 27 |
Derivative Liabilities | $ 0 | $ 0 |
Derivatives (Net Derivatives As
Derivatives (Net Derivatives As Reflected On The Balance Sheets) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Net derivatives as classified in the balance sheet | $ 6,777 | $ (1,709) |
Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Net derivatives as classified in the balance sheet | (786) | (7,217) |
Heating oil and coal | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Net derivatives as classified in the balance sheet | $ 7,563 | $ 5,508 |
Derivatives (Effects Of Derivat
Derivatives (Effects Of Derivatives On Measures Of Financial Performance) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Change in fair value of coal derivatives and coal trading activities, net | $ 3,414 | $ (854) |
Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) | 4,689 | 19 |
Gains (Losses) Reclassified from Other Comprehensive Income into Income (Effective Portion) | 0 | |
Designated as Hedging Instrument | Coal sales | Coal Contract | Coal sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) | 5,231 | 220 |
Gains (Losses) Reclassified from Other Comprehensive Income into Income (Effective Portion) | 0 | 0 |
Designated as Hedging Instrument | Coal purchases | Coal Contract | Coal purchases | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) | (542) | (201) |
Gains (Losses) Reclassified from Other Comprehensive Income into Income (Effective Portion) | 0 | |
Not Designated as Hedging Instrument | Coal Contract | Unrealized coal and natural gas | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Realized and Unrealized Gain (Loss) on Derivatives | 558 | (658) |
Unrealized Gain (Loss) on Derivatives | 2,875 | 26 |
Not Designated as Hedging Instrument | Coal Contract | Other operating (income) expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Realized Gain (Loss) on Derivatives | (1,031) | 0 |
Not Designated as Hedging Instrument | Natural gas trading— realized and unrealized | Unrealized coal and natural gas | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Realized and Unrealized Gain (Loss) on Derivatives | (19) | (222) |
Not Designated as Hedging Instrument | Heating oil — diesel purchases | Other operating (income) expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Heating oil realized and unrealized gains and losses | $ 18 | $ (3,578) |
Accrued Expenses and Other Cu56
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Payroll and employee benefits | $ 33,480 | $ 53,149 |
Taxes other than income taxes | 76,501 | 77,017 |
Interest | 254 | 246 |
Acquired sales contracts | 780 | 934 |
Workers’ compensation | 19,291 | 18,782 |
Asset retirement obligations | 19,840 | 19,840 |
Other | 8,736 | 14,193 |
Accrued expenses and other current liabilities | $ 158,882 | $ 184,161 |
Debt and Financing Arrangemen57
Debt and Financing Arrangements (Long term Debt) (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Other | $ 33,120,000 | $ 36,514,000 |
Debt issuance costs | (6,782,000) | (7,032,000) |
Total | 322,070,000 | 325,917,000 |
Less: current maturities of debt | 14,328,000 | 15,783,000 |
Long-term debt | 307,742,000 | 310,134,000 |
Term loan | Term loan due 2024 ($297.0 million face value) | ||
Debt Instrument [Line Items] | ||
Term loan | 295,732,000 | $ 296,435,000 |
Debt instrument, face amount | $ 297,000,000 |
Debt and Financing Arrangemen58
Debt and Financing Arrangements (Narrative) (Details) - USD ($) | Sep. 25, 2017 | Apr. 27, 2017 | Mar. 07, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 |
Line of Credit Facility [Line Items] | ||||||
Net loss resulting from early retirement of debt and debt restructuring | $ 0 | $ (2,030,000) | ||||
Fair value of derivative assets | 32,762,000 | $ 55,550,000 | ||||
Debt financing costs | 0 | 7,228,000 | ||||
Debt restructuring costs | 0 | 2,030,000 | ||||
Interest Rate Swap | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 100,000 | |||||
Interest Rate Swap | Other Noncurrent Assets | ||||||
Line of Credit Facility [Line Items] | ||||||
Fair value of derivative assets | $ 3,700,000 | |||||
New Term Loan Debt Facility | Senior Notes | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, face amount | $ 300,000,000 | $ 300,000,000 | ||||
Basis spread on variable rate (percent) | 3.25% | |||||
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 | |||||
Call premium rate | 1.00% | |||||
New Term Loan Debt Facility | Senior Notes | LIBOR | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate (percent) | 1.00% | |||||
Predecessor | Superpriority Debtor-in Possession Credit Agreement | Line of Credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt financing costs | $ 7,200,000 | |||||
New Term Loan Debt Facility | Senior Notes | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, face amount | $ 300,000,000 | |||||
Percentage of face amount | 99.50% | |||||
Quarterly amortization payments | $ 750,000 | |||||
Amount of voting equity interests of domestic subsidiaries guaranteed (percent) | 100.00% | |||||
Amount of voting equity interests of foreign owned subsidiaries guaranteed (percent) | 65.00% | |||||
New Term Loan Debt Facility | Senior Notes | LIBOR | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate (percent) | 3.25% | |||||
New Term Loan Debt Facility | Senior Notes | Base Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate (percent) | 2.25% | |||||
Line of Credit | Secured Debt | ||||||
Line of Credit Facility [Line Items] | ||||||
Letters of credit outstanding | $ 0 | |||||
Current borrowing capacity | 0 | |||||
Cash collateral for borrowed securities | 0 | |||||
Line of Credit | Regions Bank | Secured Debt | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, face amount | $ 40,000,000 | |||||
Percentage of coal inventory borrowing base | 85.00% | |||||
Percentage of parts and supplies inventory borrowing base | 85.00% | |||||
Percentage of clause borrowing base | 35.00% | |||||
Percent of eligible cash | 100.00% | |||||
Covenant amount (less than) | $ 250,000,000 | |||||
Covenant minimum amount | 175,000,000 | |||||
Letters of credit outstanding | 35,200,000 | |||||
Additional availability for borrowings | 4,800,000 | |||||
Maximum borrowing capacity | $ 200,000,000 | |||||
Current borrowing capacity | $ 160,000,000 | |||||
Line of Credit | Regions Bank | Minimum | Secured Debt | LIBOR | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate (percent) | 2.25% | |||||
Line of Credit | Regions Bank | Minimum | Secured Debt | Base Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate (percent) | 1.25% | |||||
Line of Credit | Regions Bank | Maximum | Secured Debt | LIBOR | ||||||
Line of Credit Facility [Line Items] | ||||||
Percentage of clause borrowing base | 2.50% | |||||
Line of Credit | Regions Bank | Maximum | Secured Debt | Base Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate (percent) | 1.50% |
Debt and Financing Arrangemen59
Debt and Financing Arrangements (Interest rate derivatives) (Details) $ in Millions | Mar. 31, 2018USD ($) |
Interest rate swap, effective 2017 | |
Debt Instrument [Line Items] | |
Notional Amount | $ 250 |
Fixed Rate | 1.372% |
Interest rate swap, effective 2018 | |
Debt Instrument [Line Items] | |
Notional Amount | $ 250 |
Fixed Rate | 1.662% |
Interest rate swap, effective 2019 | |
Debt Instrument [Line Items] | |
Notional Amount | $ 200 |
Fixed Rate | 1.952% |
Interest rate swap, effective 2020 | |
Debt Instrument [Line Items] | |
Notional Amount | $ 100 |
Fixed Rate | 2.182% |
Income Taxes (Income Tax Expens
Income Taxes (Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Income tax provision (benefit) at statutory rate | $ 12,483 | $ 18,376 |
Percentage depletion allowance | (4,607) | (7,039) |
State taxes, net of effect of federal taxes | 754 | 483 |
Change in valuation allowance | (10,639) | (11,900) |
Other, net | 1,465 | 920 |
Income Tax Expense (Benefit) | $ (544) | $ 840 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary Of Financial Assets And Liabilities Accounted For At Fair Value) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Investments in marketable securities | $ 144,652 | $ 155,846 |
Derivatives | 11,262 | |
Total assets | 155,914 | |
Liabilities: | ||
Derivatives | 786 | $ 7,217 |
Level 1 | ||
Assets: | ||
Investments in marketable securities | 56,677 | |
Derivatives | 1,882 | |
Total assets | 58,559 | |
Liabilities: | ||
Derivatives | 0 | |
Level 2 | ||
Assets: | ||
Investments in marketable securities | 87,975 | |
Derivatives | 4,411 | |
Total assets | 92,386 | |
Liabilities: | ||
Derivatives | 786 | |
Level 3 | ||
Assets: | ||
Investments in marketable securities | 0 | |
Derivatives | 4,969 | |
Total assets | 4,969 | |
Liabilities: | ||
Derivatives | $ 0 |
Fair Value Measurements (Summ62
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, 2018USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balance, beginning of period | $ 5,426 |
Realized and unrealized gains recognized in earnings, net | 25 |
Purchases | 833 |
Issuances | (74) |
Settlements | (1,241) |
Ending balance | $ 4,969 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
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 | $ 332.3 | $ 336.1 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Net unrealized gains (losses) related to level 3 financial instruments | $ 0.4 |
Earnings per common share (Weig
Earnings per common share (Weighted-Average Number of Shares) (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Weighted average shares outstanding: | ||
Basic weighted average shares outstanding (shares) | 20,901 | 25,008 |
Effect of dilutive securities (shares) | 974 | 400 |
Diluted weighted average shares outstanding (shares) | 21,875 | 25,408 |
Workers Compensation Expense (W
Workers Compensation Expense (Workers Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Occupational disease | ||
Accrued Workers Compensation [Line Items] | ||
Service cost | $ 1,860 | $ 1,558 |
Interest cost | 1,195 | 1,169 |
Net benefit credit | 3,055 | 2,727 |
Traumatic injury claims and assessments | ||
Accrued Workers Compensation [Line Items] | ||
Traumatic injury claims and assessments | 3,011 | 2,878 |
Workers compensation | ||
Accrued Workers Compensation [Line Items] | ||
Total workers’ compensation expense | $ 6,066 | $ 5,605 |
Employee Benefit Plans (Pension
Employee Benefit Plans (Pension And Other Postretirement Benefit Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Defined benefit pension plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 2,271 | $ 2,991 |
Expected return on plan assets | (3,081) | (4,497) |
Net benefit credit | (810) | (1,506) |
Other postretirement benefits plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 140 | 170 |
Interest cost | 918 | 1,058 |
Net benefit credit | $ 1,058 | $ 1,228 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||
Amount accrued | $ 0.3 | $ 0.2 |
Segment Information (Schedule O
Segment Information (Schedule Of Operating Segment Results) (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018USD ($)Segment | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | Segment | 2 | ||
Segment Reporting Information [Line Items] | |||
Revenues | $ 575,295 | $ 600,975 | |
Adjusted EBITDA | 104,913 | 121,219 | |
Depreciation, depletion and amortization | 29,703 | 31,921 | |
Accretion on asset retirement obligations | 6,992 | 7,623 | |
Assets | 1,976,678 | 2,144,916 | $ 1,979,632 |
Capital expenditures | 9,453 | 5,950 | |
PRB | |||
Segment Reporting Information [Line Items] | |||
Revenues | 245,428 | 273,428 | |
MET | |||
Segment Reporting Information [Line Items] | |||
Revenues | 238,347 | 225,582 | |
Other Thermal | |||
Segment Reporting Information [Line Items] | |||
Revenues | 91,520 | 101,906 | |
Operating Segments | PRB | |||
Segment Reporting Information [Line Items] | |||
Revenues | 245,428 | 273,428 | |
Adjusted EBITDA | 27,502 | 48,006 | |
Depreciation, depletion and amortization | 8,423 | 9,510 | |
Accretion on asset retirement obligations | 4,885 | 5,040 | |
Assets | 383,823 | 433,370 | |
Capital expenditures | 698 | 128 | |
Operating Segments | MET | |||
Segment Reporting Information [Line Items] | |||
Revenues | 238,347 | 225,582 | |
Adjusted EBITDA | 83,742 | 68,310 | |
Depreciation, depletion and amortization | 16,986 | 18,764 | |
Accretion on asset retirement obligations | 469 | 528 | |
Assets | 548,804 | 575,789 | |
Capital expenditures | 5,829 | 4,610 | |
Operating Segments | Other Thermal | |||
Segment Reporting Information [Line Items] | |||
Revenues | 91,520 | 101,906 | |
Adjusted EBITDA | 15,669 | 27,242 | |
Depreciation, depletion and amortization | 3,835 | 3,200 | |
Accretion on asset retirement obligations | 565 | 540 | |
Assets | 130,132 | 128,529 | |
Capital expenditures | 1,206 | 741 | |
Corporate, Other and Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 59 | |
Adjusted EBITDA | (22,000) | (22,339) | |
Depreciation, depletion and amortization | 459 | 447 | |
Accretion on asset retirement obligations | 1,073 | 1,515 | |
Assets | 913,919 | 1,007,228 | |
Capital expenditures | $ 1,720 | $ 471 |
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, 2018 | Mar. 31, 2017 | |
Segment Reporting [Abstract] | ||
Income before income taxes | $ 59,441 | $ 52,508 |
Interest expense, net | 4,122 | 8,898 |
Depreciation, depletion and amortization | 29,703 | 31,921 |
Accretion on asset retirement obligations | 6,992 | 7,623 |
Amortization of sales contracts, net | 3,051 | 14,690 |
Net loss resulting from early retirement of debt and debt restructuring | 0 | 2,030 |
Non-service related pension and postretirement benefit costs | 1,303 | 721 |
Reorganization items, net | 301 | 2,828 |
Adjusted EBITDA | $ 104,913 | $ 121,219 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 575,295 | $ 600,975 |
Corporate, Other and Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 59 |
North America revenues | ||
Disaggregation of Revenue [Line Items] | ||
Domestic and export revenues | 317,705 | 411,185 |
North America revenues | Corporate, Other and Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Domestic and export revenues | 0 | 59 |
Seaborne revenues | ||
Disaggregation of Revenue [Line Items] | ||
Domestic and export revenues | 257,590 | 189,790 |
Seaborne revenues | Corporate, Other and Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Domestic and export revenues | 0 | 0 |
PRB | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 245,428 | 273,428 |
PRB | North America revenues | ||
Disaggregation of Revenue [Line Items] | ||
Domestic and export revenues | 244,360 | 273,428 |
PRB | Seaborne revenues | ||
Disaggregation of Revenue [Line Items] | ||
Domestic and export revenues | 1,068 | 0 |
MET | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 238,347 | 225,582 |
MET | North America revenues | ||
Disaggregation of Revenue [Line Items] | ||
Domestic and export revenues | 29,678 | 68,734 |
MET | Seaborne revenues | ||
Disaggregation of Revenue [Line Items] | ||
Domestic and export revenues | 208,669 | 156,848 |
Other Thermal | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 91,520 | 101,906 |
Other Thermal | North America revenues | ||
Disaggregation of Revenue [Line Items] | ||
Domestic and export revenues | 43,667 | 68,964 |
Other Thermal | Seaborne revenues | ||
Disaggregation of Revenue [Line Items] | ||
Domestic and export revenues | $ 47,853 | $ 32,942 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) T in Millions | Mar. 31, 2018T |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations, fixed price contracts (in tons) | 51.4 |
Remaining performance obligations, variable price contracts (in tons) | 4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations, fixed price contracts (in tons) | 48.6 |
Remaining performance obligations, variable price contracts (in tons) | 6.4 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - New Term Loan Debt Facility - Senior Notes - USD ($) | Apr. 03, 2018 | Sep. 25, 2017 | Apr. 27, 2017 |
Subsequent Event [Line Items] | |||
Debt instrument, face amount | $ 300,000,000 | $ 300,000,000 | |
Basis spread on variable rate (percent) | 3.25% | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Basis spread on variable rate (percent) | 1.75% | ||
Savings due to reduction in interest rate | $ 1,500,000 | ||
Base Rate | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Basis spread on variable rate (percent) | 2.75% | ||
Basis spread increase (decrease) on variable rate (percent) | (0.50%) | ||
LIBOR | |||
Subsequent Event [Line Items] | |||
Basis spread on variable rate (percent) | 1.00% | ||
LIBOR | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Basis spread on variable rate (percent) | 1.00% |