Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 18, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-13105 | |
Entity Registrant Name | Arch Coal Inc | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 43-0921172 | |
Entity Address, Address Line One | One CityPlace Drive | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | St. Louis | |
Entity Address, State or Province | MO | |
Entity Address, Postal Zip Code | 63141 | |
City Area Code | 314 | |
Local Phone Number | 994-2700 | |
Title of 12(b) Security | Common stock, $.01 par value | |
Trading Symbol | ARCH | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Bankruptcy Proceedings, Reporting Current | true | |
Entity Common Stock, Shares Outstanding | 15,041,754 | |
Entity Central Index Key | 0001037676 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Income S
Condensed Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenues | $ 619,467 | $ 633,180 | $ 1,744,872 | $ 1,800,824 |
Costs, expenses and other operating | ||||
Cost of sales (exclusive of items shown separately below) | 491,004 | 482,029 | 1,380,563 | 1,411,197 |
Depreciation, depletion and amortization | 30,402 | 31,775 | 82,199 | 92,027 |
Accretion on asset retirement obligations | 5,137 | 6,992 | 15,411 | 20,977 |
Amortization of sales contracts, net | (153) | 3,241 | (77) | 9,540 |
Change in fair value of coal derivatives and coal trading activities, net | 1,530 | 10,418 | (19,851) | 22,142 |
Selling, general and administrative expenses | 24,566 | 22,909 | 73,864 | 73,613 |
Costs related to proposed joint venture with Peabody Energy | 3,754 | 0 | 6,772 | 0 |
Loss on sale of Lone Mountain Processing, LLC | 0 | 0 | (4,304) | 0 |
Preference Rights Lease Application settlement income | (39,000) | 0 | (39,000) | 0 |
Other operating income, net | (4,254) | (7,070) | (9,143) | (21,320) |
Costs, expenses and other operating | 512,986 | 550,294 | 1,495,042 | 1,608,176 |
Income from operations | 106,481 | 82,886 | 249,830 | 192,648 |
Interest expense, net | ||||
Interest expense | (4,049) | (5,179) | (12,856) | (15,624) |
Interest and investment income | 3,709 | 1,801 | 7,940 | 4,626 |
Interest expense, net | (340) | (3,378) | (4,916) | (10,998) |
Income before nonoperating expenses | 106,141 | 79,508 | 244,914 | 181,650 |
Nonoperating (expenses) income | ||||
Non-service related pension and postretirement benefit (costs) credits | 975 | (971) | (2,127) | (2,206) |
Net loss resulting from early retirement of debt and debt restructuring | 0 | 0 | 0 | (485) |
Reorganization items, net | 0 | (560) | 71 | (1,601) |
Nonoperating expenses | 975 | (1,531) | (2,056) | (4,292) |
Income before income taxes | 107,116 | 77,977 | 242,858 | 177,358 |
Provision for (benefit from) income taxes | 347 | (45,215) | 508 | (49,125) |
Net income | $ 106,769 | $ 123,192 | $ 242,350 | $ 226,483 |
Net income per common share | ||||
Basic earnings per common share (in dollars per share) | $ 6.79 | $ 6.40 | $ 14.61 | $ 11.27 |
Diluted earnings per common share (in dollars per share) | $ 6.34 | $ 6.10 | $ 13.66 | $ 10.76 |
Weighted average shares outstanding | ||||
Basic weighted average shares outstanding (in shares) | 15,736 | 19,250 | 16,591 | 20,102 |
Diluted weighted average shares outstanding (in shares) | 16,852 | 20,208 | 17,744 | 21,040 |
Dividends declared per common share (in dollars per share) | $ 0.45 | $ 0.40 | $ 1.35 | $ 1.20 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||
Net income | $ 106,769 | $ 123,192 | $ 242,350 | $ 226,483 |
Derivative instruments | ||||
Comprehensive income (loss) before tax | (2,360) | 64 | (2,421) | (5,672) |
Income tax benefit (provision) | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), derivative instruments, net of tax | (2,360) | 64 | (2,421) | (5,672) |
Pension, postretirement and other post-employment benefits | ||||
Comprehensive income (loss) before tax | (4,019) | 2,736 | (1,117) | 6,389 |
Income tax benefit (provision) | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), pension, postretirement and other post-employment benefits, net of tax | (4,019) | 2,736 | (1,117) | 6,389 |
Available-for-sale securities | ||||
Comprehensive income (loss) before tax | (98) | 102 | 553 | (379) |
Income tax benefit (provision) | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), available-for-sale securities, net of tax | (98) | 102 | 553 | (379) |
Total other comprehensive income (loss) | (6,477) | 2,902 | (2,985) | 338 |
Total comprehensive income | $ 100,292 | $ 126,094 | $ 239,365 | $ 226,821 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 175,428 | $ 264,937 |
Short term investments | 176,056 | 162,797 |
Trade accounts receivable | 206,149 | 200,904 |
Other receivables | 24,291 | 48,926 |
Inventories | 171,543 | 125,470 |
Other current assets | 113,502 | 75,749 |
Total current assets | 866,969 | 878,783 |
Property, plant and equipment, net | 889,295 | 834,828 |
Other assets | ||
Equity investments | 107,543 | 104,676 |
Other noncurrent assets | 70,793 | 68,773 |
Total other assets | 178,336 | 173,449 |
Total assets | 1,934,600 | 1,887,060 |
Current Liabilities | ||
Accounts payable | 166,129 | 128,024 |
Accrued expenses and other current liabilities | 161,939 | 183,514 |
Current maturities of debt | 11,925 | 17,797 |
Total current liabilities | 339,993 | 329,335 |
Long-term debt | 292,781 | 300,186 |
Asset retirement obligations | 238,440 | 230,304 |
Accrued pension benefits | 12,491 | 16,147 |
Accrued postretirement benefits other than pension | 78,308 | 83,163 |
Accrued workers’ compensation | 174,118 | 174,303 |
Other noncurrent liabilities | 93,033 | 48,801 |
Total liabilities | 1,229,164 | 1,182,239 |
Stockholders' equity | ||
Common stock, $0.01 par value, authorized 300,000 shares, issued 25,050 and 25,047 shares at September 30, 2019 and December 31, 2018, respectively | 250 | 250 |
Paid-in capital | 734,829 | 717,492 |
Retained earnings | 746,928 | 527,666 |
Treasury stock, 9,955 shares and 7,216 shares at September 30, 2019 and December 31, 2018, respectively, at cost | (816,882) | (583,883) |
Accumulated other comprehensive income | 40,311 | 43,296 |
Total stockholders’ equity | 705,436 | 704,821 |
Total liabilities and stockholders’ equity | $ 1,934,600 | $ 1,887,060 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 25,050,000 | 25,047,000 |
Treasury stock, shares (in shares) | 9,955,000 | 7,216,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities | ||
Net income | $ 242,350 | $ 226,483 |
Adjustments to reconcile to cash provided by operating activities: | ||
Depreciation, depletion and amortization | 82,199 | 92,027 |
Accretion on asset retirement obligations | 15,411 | 20,977 |
Amortization of sales contracts, net | (77) | 9,540 |
Deferred income taxes | 13,680 | (22,999) |
Employee stock-based compensation expense | 17,305 | 12,161 |
Gains on disposals and divestitures, net | (818) | (54) |
Net loss resulting from early retirement of debt and debt restructuring | 0 | 485 |
Amortization relating to financing activities | 2,757 | 3,300 |
Preference Rights Lease Application settlement income | (39,000) | 0 |
Changes in: | ||
Receivables | (4,622) | (5,983) |
Inventories | (46,073) | (34,918) |
Accounts payable, accrued expenses and other current liabilities | 1,569 | (24,762) |
Income taxes, net | 32,440 | (1,942) |
Other | 16,932 | (8,200) |
Cash provided by operating activities | 334,053 | 266,115 |
Investing activities | ||
Capital expenditures | (137,396) | (55,742) |
Minimum royalty payments | (1,187) | (522) |
Proceeds from disposals and divestitures | 1,799 | 512 |
Purchases of short term investments | (158,578) | (140,097) |
Proceeds from sales of short term investments | 146,170 | 133,400 |
Investments in and advances to affiliates, net | (4,810) | (1,817) |
Cash used in investing activities | (154,002) | (64,266) |
Financing activities | ||
Payments on term loan due 2024 | (2,250) | (2,250) |
Net payments on other debt | (12,077) | (10,286) |
Debt financing costs | 0 | (1,009) |
Net loss resulting from early retirement of debt and debt restructuring | 0 | (50) |
Dividends paid | (22,264) | (23,966) |
Purchases of treasury stock | (232,999) | (192,221) |
Other | 30 | 10 |
Cash used in financing activities | (269,560) | (229,772) |
Decrease in cash and cash equivalents, including restricted cash | (89,509) | (27,923) |
Cash and cash equivalents, including restricted cash, beginning of period | 264,937 | 273,602 |
Cash and cash equivalents, including restricted cash, end of period | 175,428 | 245,679 |
Cash and cash equivalents, including restricted cash, end of period | ||
Cash and cash equivalents, including restricted cash, end of period | $ 264,937 | $ 273,602 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Common Stock | Paid-in Capital | Retained Earnings | Treasury Stock, at cost | Accumulated Other Comprehensive Income |
Beginning Balance at Dec. 31, 2017 | $ 665,865 | $ 250 | $ 700,125 | $ 247,232 | $ (302,109) | $ 20,367 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends on common shares | (8,553) | (8,553) | ||||
Total comprehensive income | 65,884 | 59,985 | 5,899 | |||
Employee stock-based compensation | 3,845 | 3,845 | ||||
Purchase of common stock under share repurchase program | (38,589) | (38,589) | ||||
Warrants exercised | 10 | 10 | ||||
Ending Balance at Mar. 31, 2018 | 688,462 | 250 | 703,980 | 298,664 | (340,698) | 26,266 |
Beginning Balance at Dec. 31, 2017 | 665,865 | 250 | 700,125 | 247,232 | (302,109) | 20,367 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Total comprehensive income | 226,821 | |||||
Ending Balance at Sep. 30, 2018 | 687,140 | 250 | 712,295 | 449,122 | (495,232) | 20,705 |
Beginning Balance at Mar. 31, 2018 | 688,462 | 250 | 703,980 | 298,664 | (340,698) | 26,266 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends on common shares | (8,217) | (8,217) | ||||
Total comprehensive income | 34,843 | 43,306 | (8,463) | |||
Employee stock-based compensation | 4,147 | 4,147 | ||||
Purchase of common stock under share repurchase program | (78,287) | (78,287) | ||||
Warrants exercised | 0 | 0 | ||||
Ending Balance at Jun. 30, 2018 | 640,948 | 250 | 708,127 | 333,753 | (418,985) | 17,803 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends on common shares | (7,823) | (7,823) | ||||
Total comprehensive income | 126,094 | 123,192 | 2,902 | |||
Employee stock-based compensation | 4,168 | 4,168 | ||||
Purchase of common stock under share repurchase program | (76,247) | (76,247) | ||||
Ending Balance at Sep. 30, 2018 | 687,140 | 250 | 712,295 | 449,122 | (495,232) | 20,705 |
Beginning Balance at Dec. 31, 2018 | 704,821 | 250 | 717,492 | 527,666 | (583,883) | 43,296 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends on common shares | (8,111) | (8,111) | ||||
Total comprehensive income | 75,835 | 72,741 | 3,094 | |||
Employee stock-based compensation | 5,651 | 5,651 | ||||
Purchase of common stock under share repurchase program | (78,249) | (78,249) | ||||
Ending Balance at Mar. 31, 2019 | 699,947 | 250 | 723,143 | 592,296 | (662,132) | 46,390 |
Beginning Balance at Dec. 31, 2018 | 704,821 | 250 | 717,492 | 527,666 | (583,883) | 43,296 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Total comprehensive income | 239,365 | |||||
Ending Balance at Sep. 30, 2019 | 705,436 | 250 | 734,829 | 746,928 | (816,882) | 40,311 |
Beginning Balance at Mar. 31, 2019 | 699,947 | 250 | 723,143 | 592,296 | (662,132) | 46,390 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends on common shares | (7,696) | (7,696) | ||||
Total comprehensive income | 63,238 | 62,840 | 398 | |||
Employee stock-based compensation | 5,822 | 5,822 | ||||
Purchase of common stock under share repurchase program | (63,392) | (63,392) | ||||
Warrants exercised | 31 | 31 | ||||
Ending Balance at Jun. 30, 2019 | 697,950 | 250 | 728,996 | 647,440 | (725,524) | 46,788 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends on common shares | (7,281) | (7,281) | ||||
Total comprehensive income | 100,292 | 106,769 | (6,477) | |||
Employee stock-based compensation | 5,833 | 5,833 | ||||
Purchase of common stock under share repurchase program | (91,358) | (91,358) | ||||
Ending Balance at Sep. 30, 2019 | $ 705,436 | $ 250 | $ 734,829 | $ 746,928 | $ (816,882) | $ 40,311 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Parenthetical) - $ / shares shares in Thousands | 3 Months Ended | |||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends declared per common share (in dollars per share) | $ 0.45 | $ 0.45 | $ 0.45 | $ 0.40 | $ 0.40 | $ 0.40 |
Purchase of shares of common stock under share repurchase program (in shares) | 1,169,597 | 697,255 | 872,317 | 870,358 | 960,105 | 407,091 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
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 (“Arch” or 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 and nine months ended September 30, 2019 are not necessarily indicative of results to be expected for the year ending December 31, 2019 . 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, 2018 included in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission. |
Accounting Policies
Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies Recently Adopted Accounting Guidance In February 2016, the FASB established Topic 842, Leases, by issuing ASU 2016-02, “Leases” which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. The ASU was subsequently amended by ASU 2018-01, “Land Easements Practical Expedient for Transition to Topic 842;” ASU 2018-10, “Codification Improvements to Topic 842, Leases;” and ASU 2018-11, “Targeted Improvements.” The new standard establishes a right-of-use (“ROU”) model that requires a lessee to recognize an ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. 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. Leases of mineral reserves and related land leases have been exempted from the standard. The Company adopted ASU 2016-02 effective January 1, 2019 and elected the option to not restate comparative periods in transition and also elected the “package of practical expedients” within the standard which permits the Company not to reassess its prior conclusions about lease identification, lease classification and initial direct costs. Additionally, the Company made an election to not separate lease and non-lease components for all leases, and will not use hindsight. Finally, the Company will continue its current policy for accounting for land easements as executory contracts. The adoption of the standard had no impact on the Company’s consolidated income statement or statement of cash flows. In April 2017, the FASB issued ASU 2017-08, “Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities.” The new guidance shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. The new guidance does not change the accounting for purchased callable debt securities held at a discount. The Company adopted ASU 2017-08 effective January 1, 2019 with no impact on the Company’s financial statements. In August 2017, the FASB issued ASU 2017-12, “Targeted Improvements to Accounting for Hedging Activities.” The new guidance provides targeted improvements to the accounting for hedging activities to better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedging results. The Company adopted ASU 2017-12 effective January 1, 2019 with no impact on the Company’s 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 Company adopted ASU 2018-02 effective January 1, 2019 with no impact on the Company’s financial statements. In June 2018, the FASB issued ASU 2018-07, “Compensation-Stock Compensation (Topic 718), Improvements to Non-employee Share-Based Payment Accounting.” ASU 2018-07 aligns the measurement and classification guidance for share-based payments to non-employees with the guidance for share-based payments to employees. The Company adopted ASU 2018-07 effective January 1, 2019 with no impact on the Company’s financial statements. In October 2018, the FASB issued ASU 2018-16, “Derivatives and Hedging (Topic 815), Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate of Hedge Accounting Purposes.” The Company adopted ASU 2018-16 effective January 1, 2019 with no impact on the Company’s financial statements. |
Joint Venture with Peabody Ener
Joint Venture with Peabody Energy | 9 Months Ended |
Sep. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Joint Venture with Peabody Energy | Joint Venture with Peabody Energy On June 18, 2019, Arch Coal entered into a definitive implementation agreement (the “Implementation Agreement”) with Peabody Energy Corporation (“Peabody”), to establish a joint venture that will combine the respective Powder River Basin and Colorado mining operations of Arch Coal and Peabody. Pursuant to the terms of the Implementation Agreement, Arch Coal will hold a 33.5% economic interest, and Peabody will hold a 66.5% economic interest in the joint venture. At the closing of the joint venture transaction, certain of the respective subsidiaries of Arch Coal and Peabody will enter into an Amended and Restated Limited Liability Company Agreement (the “LLC Agreement”). Under the terms of the LLC Agreement, the governance of the joint venture will be overseen by the joint venture’s board of managers, which will initially be comprised of three representatives appointed by Peabody and two representatives appointed by Arch. Decisions of the board of managers will be determined by a majority vote subject to certain specified matters set forth in the LLC Agreement that will require a supermajority vote. Peabody, or one of its affiliates, will initially be appointed as the operator of the joint venture and will manage the day-to-day operations of the joint venture, subject to the supervision of the joint venture’s board of managers. Formation of the joint venture is subject to customary closing conditions, including the termination or expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, the receipt of certain other required regulatory approvals and the absence of injunctions or other legal restraints preventing the formation of the joint venture. Formation of the joint venture does not require approval of the respective stockholders of either Arch or Peabody. The Company has incurred expenses of $3.8 million and $6.8 million for the three and nine months ended September 30, 2019 related to the regulatory approval process related to the joint venture. |
Loss on Sale of Lone Mountain P
Loss on Sale of Lone Mountain Processing, LLC | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Loss on Sale of Lone Mountain Processing, Inc | Loss on Sale of Lone Mountain Processing, LLC On September 14, 2017, the Company sold Lone Mountain Processing, LLC and two idled mining companies, Cumberland River Coal LLC and Powell Mountain Energy LLC to Revelation Energy LLC, and recorded a gain on the transaction in that year of $21.3 million . Under the terms of the purchase agreement, Revelation assumed certain traumatic workers compensation claims and pneumoconiosis (occupational disease) benefits. On July 1, 2019, Blackjewel LLC and four affiliates, including Revelation Energy LLC, filed for Chapter 11 bankruptcy. As a result of the bankruptcy, the Company has recorded a $4.3 million charge for these claims during the second quarter of 2019. |
Preference Rights Lease Applica
Preference Rights Lease Application (PRLA) Settlement Income | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Preference Rights Lease Application (PRLA) Settlement Income | Preference Rights Lease Application Settlement Income The Company recorded a $39.0 million gain during the quarter related to a settlement with the United States Department of Interior over a long-standing dispute, dating back to the 1970’s, on the valuation and disposition of Preference Rights Lease Application that Arch controlled in northwestern New Mexico with a joint venture partner. As part of the settlement, Arch will receive $67.0 million in the form of royalty credits on its federal coal leases which will be used to settle 50% of the Company’s monthly royalty obligations. The Company expects to realize the royalty credits beginning in September 2019 through the next 18- 24 months depending on market conditions. Additionally, as part of the settlement, Arch will make a one-time payment of $27.0 million during October 2019 to its’ partner in the venture for their ownership interest in the underlying mineral reserves, as well as pay $1.0 million |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2019 | |
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, 2018 $ 3,328 $ 40,311 $ (343 ) $ 43,296 Unrealized gains 3,836 1,745 603 6,184 Amounts reclassified from AOCI (6,257 ) (2,862 ) (50 ) (9,169 ) Balance at September 30, 2019 $ 907 $ 39,194 $ 210 $ 40,311 The following amounts were reclassified out of AOCI: Three Months Ended September 30, Nine Months Ended September 30, Details About AOCI Components 2019 2018 2019 2018 Line Item in the Condensed Consolidated Statement of Operations (In thousands) Coal hedges $ 2,963 $ (4,824 ) $ 5,067 $ (4,824 ) Revenues Interest rate hedges 161 265 1,190 753 Interest expense — — — — Provision for (benefit from) income taxes $ 3,124 $ (4,559 ) $ 6,257 $ (4,071 ) Net of tax Pension, postretirement and other post-employment benefits Amortization of actuarial gains (losses), net $ 2,236 $ — $ 2,236 $ — Non-service related pension and postretirement benefit (costs) credits Pension settlement 197 613 626 1,984 Non-service related pension and postretirement benefit (costs) credits — — — — Provision for (benefit from) income taxes $ 2,433 $ 613 $ 2,862 $ 1,984 Net of tax Available-for-sale securities $ 35 $ 8 $ 50 $ 24 Interest and investment income — — — — Provision for (benefit from) income taxes $ 35 $ 8 $ 50 $ 24 Net of tax |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following: September 30, December 31, 2019 2018 (In thousands) Coal $ 79,746 $ 40,982 Repair parts and supplies 91,797 84,488 $ 171,543 $ 125,470 The repair parts and supplies are stated net of an allowance for slow-moving and obsolete inventories of $1.7 million at September 30, 2019 and $0.6 million at December 31, 2018 . |
Investments in Available-for-Sa
Investments in Available-for-Sale Securities | 9 Months Ended |
Sep. 30, 2019 | |
Debt Securities, Available-for-sale [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: September 30, 2019 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 $ 64,930 $ 52 $ (17 ) $ 64,965 $ 64,965 $ — Corporate notes and bonds 110,917 275 (101 ) 111,091 111,091 — Total Investments $ 175,847 $ 327 $ (118 ) $ 176,056 $ 176,056 $ — December 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 $ 100,003 $ 11 $ (126 ) $ 99,888 $ 99,888 $ — Corporate notes and bonds 63,137 4 (232 ) 62,909 62,909 — Total Investments $ 163,140 $ 15 $ (358 ) $ 162,797 $ 162,797 $ — The aggregate fair value of investments with unrealized losses that were owned for less than a year was $51.7 million and $115.2 million at September 30, 2019 and December 31, 2018 , respectively. The aggregate fair value of investments with unrealized losses that were owned for over a year was $0.0 million and $32.4 million at September 30, 2019 and December 31, 2018 , respectively. The unrealized losses in the Company’s portfolio at September 30, 2019 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 September 30, 2019 have maturity dates ranging from the fourth quarter of 2019 through the first quarter of 2021 . The Company classifies its investments as current based on the nature of the investments and their availability to provide cash for use in current operations. |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2019 | |
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 11 , “ 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 annually. 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, purchased heating oil call options and New York Mercantile Exchange (“NYMEX”) gulf coast diesel swaps and options. At September 30, 2019 , the Company had protected the price on the majority of its expected diesel fuel purchases for the remainder of 2019 with approximately 4 million gallons of heating oil call options with an average strike price of $2.30 per gallon and 6 million gallons of NYMEX gulf coast diesel swaps at an average price of approximately $1.92 per gallon. Additionally, the Company has protected approximately 34% of its expected 2020 purchases using gulf coast diesel call options with an average strike price of $2.24 per gallon. At September 30, 2019 , the Company had outstanding heating oil call options and NYMEX gulf coast swaps and options of 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 September 30, 2019 , the Company held derivatives for risk management purposes that are expected to settle in the following years: (Tons in thousands) 2019 2020 Total Coal sales 607 668 1,275 Coal purchases 385 337 722 The Company has also entered into a minimal quantity of natural gas put options to protect the Company from decreases in natural gas prices, which could impact thermal coal demand. These options are not designated as hedges. Coal trading positions The Company may sell or purchase forward contracts, swaps and options in the over-the-counter coal market for trading purposes. The Company is exposed to the risk of changes in coal prices on the value of its coal trading portfolio. The estimated future realization of the value of the trading portfolio is $0.2 million of losses during the remainder of 2019 and $0.6 million of losses during 2020 . 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: September 30, 2019 December 31, 2018 Fair Value of Derivatives Asset Liability Asset Liability (In thousands) Derivative Derivative Derivative Derivative Derivatives Designated as Hedging Instruments Coal $ 3,842 $ (671 ) $ 2,342 $ (805 ) Derivatives Not Designated as Hedging Instruments Heating oil -- diesel purchases 383 (629 ) 532 — Coal -- held for trading purposes 20,116 (20,925 ) 10,329 (10,701 ) Coal -- risk management 18,305 (11,067 ) 5,672 (19,579 ) Natural gas — — 4 (4 ) Total $ 38,804 $ (32,621 ) $ 16,537 $ (30,284 ) Total derivatives $ 42,646 $ (33,292 ) $ 18,879 $ (31,089 ) Effect of counterparty netting (32,663 ) 32,663 (17,801 ) 17,801 Net derivatives as classified in the balance sheets $ 9,983 $ (629 ) $ 9,354 $ 1,078 $ (13,288 ) $ (12,210 ) September 30, 2019 December 31, 2018 Net derivatives as reflected on the balance sheets (in thousands) Heating oil and coal Other current assets $ 9,983 $ 1,078 Coal Accrued expenses and other current liabilities (629 ) (13,288 ) $ 9,354 $ (12,210 ) The Company had a current asset representing cash collateral posted to a margin account for derivative positions primarily related to coal derivatives of $1.9 million and $24.7 million at September 30, 2019 and December 31, 2018 , 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 September 30, Gain (Loss) Recognized in Other Comprehensive Income Gains (Losses) Reclassified from Other Comprehensive Income into Income 2019 2018 2019 2018 Coal sales (1) $ 225 $ (4,631 ) $ 2,963 $ (6,996 ) Coal purchases (2) (34 ) 424 — 2,171 Totals $ 191 $ (4,207 ) $ 2,963 $ (4,825 ) 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 September 30, 2019 and 2018 . Derivatives Not Designated as Hedging Instruments (in thousands) Three Months Ended September 30, Gain (Loss) Recognized 2019 2018 Coal trading — realized and unrealized (3) $ (127 ) $ (928 ) Coal risk management — unrealized (3) (1,417 ) (9,486 ) Natural gas trading— realized and unrealized (3) 14 (4 ) Change in fair value of coal derivatives and coal trading activities, net total $ (1,530 ) $ (10,418 ) Coal risk management— realized (4) $ 3,216 $ (2,537 ) Heating oil — diesel purchases (4) $ (1,670 ) $ 719 ____________________________________________________________ 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 Derivatives used in Cash Flow Hedging Relationships (in thousands) Nine Months Ended September 30, Gain (Loss) Recognized in Other Comprehensive Income Gains (Losses) Reclassified from Other Comprehensive Income into Income 2019 2018 2019 2018 Coal sales (1) $ 9,472 $ (14,862 ) $ 5,750 $ (6,996 ) Coal purchases (2) (940 ) 2,587 (686 ) 2,171 Totals $ 8,532 $ (12,275 ) $ 5,064 $ (4,825 ) 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 nine month periods ended September 30, 2019 and 2018 . Derivatives Not Designated as Hedging Instruments (in thousands) Nine Months Ended September 30, Gain (Loss) Recognized 2019 2018 Coal trading — realized and unrealized (3) $ (1,228 ) $ 14 Coal risk management — unrealized (3) 21,145 (22,116 ) Natural gas trading— realized and unrealized (3) (66 ) (40 ) Change in fair value of coal derivatives and coal trading activities, net total $ 19,851 $ (22,142 ) Coal risk management— realized (4) $ (2,076 ) $ (5,217 ) Heating oil — diesel purchases (4) $ (2,402 ) $ 4,394 ____________________________________________________________ Location in statement of operations: (1) — Revenues (2) — Cost of sales (3) — Change in fair value of coal derivatives and coal trading activities, net (4) — Other operating (income) expense, net Based on fair values at September 30, 2019 , 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 $3.1 million |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
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: September 30, December 31, 2019 2018 (In thousands) Payroll and employee benefits $ 49,566 $ 57,166 Taxes other than income taxes 71,738 75,017 Interest 131 156 Acquired sales contracts 203 570 Workers’ compensation 18,053 20,044 Asset retirement obligations 12,297 13,113 Other 9,951 17,448 $ 161,939 $ 183,514 |
Debt and Financing Arrangements
Debt and Financing Arrangements | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Financing Arrangements | Debt and Financing Arrangements September 30, December 31, 2019 2018 (In thousands) Term loan due 2024 ($292.5 million face value) $ 291,524 $ 293,626 Other 18,471 30,449 Debt issuance costs (5,289 ) (6,092 ) 304,706 317,983 Less: current maturities of debt 11,925 17,797 Long-term debt $ 292,781 $ 300,186 Term Loan Facility In 2017, the Company entered into a 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 . During 2018, the Company entered into the Second Amendment (the “Second Amendment”) to its Credit Agreement. The Second Amendment reduced the interest rate on its 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 LIBOR floor remains at 1.00% . There is no change to the maturities as a result of the Second Amendment. The Term Loan Debt Facility is guaranteed by all existing and future wholly owned domestic subsidiaries of the Company (collectively, the “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 covenants. The Term Loan Debt Facility contains customary events of default, subject to customary thresholds and exceptions, including, among other things, (i) nonpayment of principal and nonpayment of interest and fees, (ii) a material inaccuracy of a representation or warranty at the time made, (iii) a failure to comply with any covenant, subject to customary grace periods in the case of certain affirmative covenants, (iv) cross-events of default to indebtedness of at least $50 million , (v) cross-events of default to surety, reclamation or similar bonds securing obligations with an aggregate face amount of at least $50 million , (vi) uninsured judgments in excess of $50 million , (vii) any loan document shall cease to be a legal, valid and binding agreement, (viii) uninsured losses or proceedings against assets with a value in excess of $50 million , (ix) certain ERISA events, (x) a change of control or (xi) bankruptcy or insolvency proceedings relating to the Company or any material subsidiary of the Company. Accounts Receivable Securitization Facility In 2018, the Company extended and amended its existing trade accounts receivable securitization facility provided to Arch Receivable Company, LLC, a special-purpose entity that is a wholly owned subsidiary of Arch 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 maintained the $160 million borrowing capacity and extended the maturity date to the date that is three years after the Securitization Facility Closing Date. Additionally, the amendment provided the Company the opportunity to use credit insurance to increase the pool of eligible receivables for borrowing. Pursuant to the Extended Securitization Facility, Arch Receivable also agreed to a revised schedule of fees payable to the administrator and the providers of the Extended Securitization Facility. The Extended Securitization Facility will terminate at the earliest of (i) 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 364 th 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 September 30, 2019 , letters of credit totaling $15.5 million were outstanding under the facility with $92.6 million available for borrowings. Inventory-Based Revolving Credit Facility In 2017, the Company and certain subsidiaries of Arch Coal entered into a 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. In 2018, the Company and certain subsidiaries of Arch Coal amended and extended the Inventory Facility by increasing the facility size by $10 million , bringing the total aggregate amount available to $50 million , subject to borrowing base calculations described above. The commitments under the Inventory Facility will terminate on the date that is the earliest to occur of (i) the date, if any, that is 364 days following the first day that Liquidity (defined in the Inventory Facility and consistent with the definition in the Extended Securitization Facility (as defined below)) is less than $250 million for a period of 60 consecutive days and (ii) the date, if any, that is 60 days following the maturity, termination or repayment in full of the Extended Securitization Facility. Revolving loan borrowings under the Inventory Facility bear interest at a per annum rate equal to, at the option of Arch Coal, either the base rate or the London interbank offered rate plus, in each case, a margin ranging from 2.00% to 2.50% (in the case of LIBOR loans) and 1.00% to 1.50% (in the case of base rate loans) determined using a Liquidity-based grid. Letters of credit under the Inventory Facility are subject to a fee in an amount equal to the applicable margin for LIBOR loans, plus customary fronting and issuance fees. All existing and future direct and indirect domestic subsidiaries of Arch 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 September 30, 2019 , letters of credit totaling $35.9 million were outstanding under the facility with $14.1 million available for borrowings. Interest Rate Swaps The Company has entered into a series of interest rate swaps to fix a portion of the LIBOR interest rate within the term loan. The interest rate swaps qualify for cash flow hedge accounting treatment and as such, the change in the fair value of the interest rate swaps is recorded on the 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 2.75% which is the spread on the revised LIBOR term loan. In the event that an interest rate swap is terminated prior to maturity, gains or losses in accumulated other comprehensive income will remain deferred and be reclassified into earnings in the periods which the hedged forecasted transaction affects earnings. Below is a summary of the Company’s outstanding interest rate swap agreements designated as hedges as of September 30, 2019 : Notional Amount (in millions) Effective Date Fixed Rate Receive Rate Expiration Date $250.0 June 28, 2019 2.025% 1-month LIBOR June 30, 2020 $200.0 June 30, 2020 2.249% 1-month LIBOR June 30, 2021 $100.0 June 30, 2021 2.315% 1-month LIBOR June 30, 2023 The fair value of the interest rate swaps at September 30, 2019 is a liability of $3.4 million , which is recorded within Other noncurrent liabilities, with the offset to accumulated other comprehensive income on the Company’s Condensed Consolidated Balance Sheet. The Company realized $0.2 million and $1.2 million of gains during the three and nine months ended September 30, 2019 , respectively, 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. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes A reconciliation of the statutory federal income tax provision at the statutory rate to the actual provision for (benefit from) income taxes follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (In thousands) Income tax provision at statutory rate $ 22,494 $ 16,375 $ 51,000 $ 37,245 Percentage depletion allowance (6,347 ) (5,964 ) (14,111 ) (13,059 ) State taxes, net of effect of federal taxes 1,825 4,528 3,668 5,865 Change in valuation allowance (19,120 ) (44,278 ) (42,925 ) (62,234 ) Current expense associated with uncertain tax positions 1,495 511 2,932 (599 ) Impact of Tax Cuts and Jobs Act of 2017 — (19,780 ) — (19,780 ) Other, net — 3,393 (56 ) 3,437 Provision for (benefit from) income taxes $ 347 $ (45,215 ) $ 508 $ (49,125 ) During the prior year quarter, the IRS completed an audit of alternative minimum tax (“AMT”) net operating loss carryback claims the Company filed in prior periods. In addition, the Company filed an amended 2016 return which changed the amount of available tax attributes and the mix used to offset its bankruptcy cancellation of indebtedness income as of January 1, 2017. As a result, the Company increased AMT credits and reduced other tax attributes as of that date that were available for attribute reduction. The AMT credits did not require a valuation allowance to be recorded against them due to the law changes enacted as part of the Tax Cut and Jobs Act of 2017 (the “Act”), while the Company’s other tax attributes are fully offset by a valuation allowance. The associated valuation allowance released related to the shift in attributes reflects what the Company believes will be realized. The Company anticipates all AMT credits will be converted to cash in the next five years as provided by the Act. In total, these changes resulted in a recorded benefit from income taxes of $45.2 million , which was net of a $24.9 million uncertain tax position charge. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 . 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: September 30, 2019 Total Level 1 Level 2 Level 3 (In thousands) Assets: Investments in marketable securities $ 176,056 $ 64,965 $ 111,091 $ — Derivatives 9,983 8,366 1,234 383 Total assets $ 186,039 $ 73,331 $ 112,325 $ 383 Liabilities: Derivatives $ 4,071 $ — $ 4,130 $ (59 ) 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 September 30, 2019 Nine Months Ende d September 30, 2019 (In thousands) Balance, beginning of period $ 755 $ 532 Realized and unrealized gains recognized in earnings, net (1,252 ) (1,794 ) Purchases 562 1,562 Issuances (45 ) (45 ) Settlements 422 187 Ending balance $ 442 $ 442 Net unrealized losses of $1.0 million and $1.9 million were recognized in the Condensed Consolidated Income Statements within Other operating income, net during the three and nine months ended September 30, 2019 , respectively, related to Level 3 financial instruments held on September 30, 2019 . Fair Value of Long-Term Debt At September 30, 2019 and December 31, 2018 , the fair value of the Company’s debt, including amounts classified as current, was $306.9 million and $318.6 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 | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings 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 per share by reconciling the denominators of the computations: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (In thousands) Weighted average shares outstanding: Basic weighted average shares outstanding 15,736 19,250 16,591 20,102 Effect of dilutive securities 1,116 958 1,153 938 Diluted weighted average shares outstanding 16,852 20,208 17,744 21,040 |
Workers Compensation Expense
Workers Compensation Expense | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (In thousands) Self-insured occupational disease benefits: Service cost $ 1,670 $ 1,860 $ 5,008 $ 5,580 Interest cost (1) 1,354 1,196 4,062 3,585 Total occupational disease $ 3,024 $ 3,056 $ 9,070 $ 9,165 Traumatic injury claims and assessments 2,088 (2,069 ) 6,642 3,130 Total workers’ compensation expense $ 5,112 $ 987 $ 15,712 $ 12,295 |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (In thousands) Interest cost (1) $ 1,922 $ 2,376 $ 6,439 $ 6,917 Expected return on plan assets (1) (2,699 ) (2,906 ) (8,146 ) (9,067 ) Pension settlement (1) (197 ) (613 ) (626 ) (1,984 ) Amortization of prior service costs (credits) 4 — 4 — Net benefit credit $ (970 ) $ (1,143 ) $ (2,329 ) $ (4,134 ) The following table details the components of other postretirement benefit costs: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (In thousands) Service cost $ 120 $ 140 $ 360 $ 419 Interest cost (1) 876 918 2,629 2,755 Amortization of other actuarial losses (gains) (2,236 ) — (2,236 ) — Net benefit cost (credit) $ (1,240 ) $ 1,058 $ 753 $ 3,174 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
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. The ultimate resolution of any such legal matter could result in outcomes that may be materially different from amounts the Company has accrued for such matters. The Company believes it has recorded adequate reserves for these matters. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
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 the Company’s 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, and the Other Thermal segment containing the Company’s supplementary thermal operations in Colorado, Illinois, and West Virginia. Operating segment results for the three and nine months ended September 30, 2019 and 2018 , 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 September 30, 2019 Revenues $ 269,967 $ 254,493 $ 94,052 $ 955 $ 619,467 Adjusted EBITDA 50,153 70,814 16,659 (31,005 ) 106,621 Depreciation, depletion and amortization 5,956 19,962 3,852 632 30,402 Accretion on asset retirement obligation 3,135 531 603 868 5,137 Total assets 236,656 609,378 148,994 939,572 1,934,600 Capital expenditures 5,402 36,475 6,837 738 49,452 Three Months Ended September 30, 2018 Revenues $ 261,927 $ 236,328 $ 130,663 $ 4,262 $ 633,180 Adjusted EBITDA 48,646 81,250 25,200 (30,202 ) 124,894 Depreciation, depletion and amortization 9,114 18,106 3,924 631 31,775 Accretion on asset retirement obligation 4,885 469 565 1,073 6,992 Total assets 374,092 561,989 127,904 933,637 1,997,622 Capital expenditures 3,458 17,827 3,332 1,076 25,693 Nine Months Ende d September 30, 2019 Revenues $ 692,845 $ 769,000 $ 278,235 $ 4,792 $ 1,744,872 Adjusted EBITDA 85,433 264,284 33,699 (63,977 ) 319,439 Depreciation, depletion and amortization 15,702 53,687 10,976 1,834 82,199 Accretion on asset retirement obligation 9,406 1,592 1,810 2,603 15,411 Total assets 236,656 609,378 148,994 939,572 1,934,600 Capital expenditures 19,026 98,849 16,299 3,222 137,396 Nine Months Ended September 30, 2018 Revenues $ 737,233 $ 733,707 $ 321,997 $ 7,887 $ 1,800,824 Adjusted EBITDA 102,639 251,649 52,710 (91,806 ) 315,192 Depreciation, depletion and amortization 25,841 53,109 11,459 1,618 92,027 Accretion on asset retirement obligation 14,656 1,406 1,696 3,219 20,977 Total assets 374,092 561,989 127,904 933,637 1,997,622 Capital expenditures 7,221 35,555 7,097 5,869 55,742 A reconciliation of net income to adjusted EBITDA follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (In thousands) Net income $ 106,769 $ 123,192 $ 242,350 $ 226,483 Provision for (benefit from) income taxes 347 (45,215 ) 508 (49,125 ) Interest expense, net 340 3,378 4,916 10,998 Depreciation, depletion and amortization 30,402 31,775 82,199 92,027 Accretion on asset retirement obligations 5,137 6,992 15,411 20,977 Amortization of sales contracts, net (153 ) 3,241 (77 ) 9,540 Loss on sale of Lone Mountain Processing, LLC — — 4,304 — Preference Rights Lease Application (PRLA) settlement income (39,000 ) — (39,000 ) — Net loss resulting from early retirement of debt and debt restructuring — — — 485 Non-service related pension and postretirement benefit costs (975 ) 971 2,127 2,206 Reorganization items, net — 560 (71 ) 1,601 Costs associated with proposed joint venture with Peabody Energy 3,754 — 6,772 — Adjusted EBITDA $ 106,621 $ 124,894 $ 319,439 $ 315,192 |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 North America revenues $ 269,967 $ 63,755 $ 47,571 $ 955 $ 382,248 Seaborne revenues — 190,738 46,481 — 237,219 Total revenues $ 269,967 $ 254,493 $ 94,052 $ 955 $ 619,467 Three Months Ended September 30, 2018 North America revenues $ 261,927 $ 49,698 $ 56,051 $ 4,262 $ 371,938 Seaborne revenues — 186,630 74,612 — 261,242 Total revenues $ 261,927 $ 236,328 $ 130,663 $ 4,262 $ 633,180 Nine Months Ende d September 30, 2019 North America revenues $ 692,845 $ 163,317 $ 141,985 $ 4,792 $ 1,002,939 Seaborne revenues — 605,683 136,250 — 741,933 Total revenues $ 692,845 $ 769,000 $ 278,235 $ 4,792 $ 1,744,872 Nine Months Ended September 30, 2018 North America revenues $ 735,322 $ 117,699 $ 140,265 $ 7,887 $ 1,001,173 Seaborne revenues 1,911 616,008 181,732 — 799,651 Total revenues $ 737,233 $ 733,707 $ 321,997 $ 7,887 $ 1,800,824 As of September 30, 2019 , the Company has outstanding performance obligations for the remainder of 2019 of 17.3 million tons of fixed price contracts and 1.8 million tons of variable price contracts. Additionally, the Company has outstanding performance obligations beyond 2019 of approximately 96.8 million tons of fixed price contracts and 6.0 million tons of variable price contracts. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases for mining equipment, office equipment and office space with remaining lease terms ranging from less than 1 year to approximately 8 years . Some of these leases include both lease and non-lease components which are accounted for as a single lease component as the Company has elected the practical expedient to combine these components for all leases. As most of the leases do not provide an implicit rate, the Company calculated the ROU assets and lease liabilities using its’ secured incremental borrowing rate at the lease commencement date. The Company currently does not have any finance leases outstanding. Information related to leases was as follows: Three Months Ended September 30, 2019 (In thousands) Operating lease information: Operating lease cost $ 1,071 Operating cash flows from operating leases 1,078 Weighted average remaining lease term in years 6.19 Weighted average discount rate 5.5 % Future minimum lease payments under non-cancellable leases as of September 30, 2019 were as follows: Year Amount (In thousands) 2019 $ 1,024 2020 3,616 2021 3,367 2022 3,292 2023 3,261 Thereafter 11,153 Total minimum lease payments $ 25,713 Less imputed interest (4,725 ) Total operating lease liability $ 20,988 As reflected on balance sheet: Accrued expenses and other current liabilities $ 2,713 Other noncurrent liabilities 18,275 Total operating lease liability $ 20,988 At September 30, 2019 , the Company had a $20.3 million ROU operating lease asset recorded within “Other noncurrent assets” on the Condensed Consolidated Balance Sheet. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events During September 2019, the Company entered into a definitive agreement to acquire 20 million tons of low-cost, high quality, High-Vol A coking coal reserves directly adjacent to its Leer mine for $52.5 million . The reserves are contiguous to the existing Leer mine reserves and accessible underground by the longwall operation without meaningful incremental capital. The reserve addition is expected to extend the life of the Leer mine approximately six years . Closing of the transaction is subject to title work and satisfaction of closing conditions and is anticipated to close during the fourth quarter of 2019. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
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 and nine months ended September 30, 2019 are not necessarily indicative of results to be expected for the year ending December 31, 2019 . 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, 2018 included in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission. |
Recently Adopted Accounting Guidance | Recently Adopted Accounting Guidance In February 2016, the FASB established Topic 842, Leases, by issuing ASU 2016-02, “Leases” which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. The ASU was subsequently amended by ASU 2018-01, “Land Easements Practical Expedient for Transition to Topic 842;” ASU 2018-10, “Codification Improvements to Topic 842, Leases;” and ASU 2018-11, “Targeted Improvements.” The new standard establishes a right-of-use (“ROU”) model that requires a lessee to recognize an ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. 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. Leases of mineral reserves and related land leases have been exempted from the standard. The Company adopted ASU 2016-02 effective January 1, 2019 and elected the option to not restate comparative periods in transition and also elected the “package of practical expedients” within the standard which permits the Company not to reassess its prior conclusions about lease identification, lease classification and initial direct costs. Additionally, the Company made an election to not separate lease and non-lease components for all leases, and will not use hindsight. Finally, the Company will continue its current policy for accounting for land easements as executory contracts. The adoption of the standard had no impact on the Company’s consolidated income statement or statement of cash flows. In April 2017, the FASB issued ASU 2017-08, “Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities.” The new guidance shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. The new guidance does not change the accounting for purchased callable debt securities held at a discount. The Company adopted ASU 2017-08 effective January 1, 2019 with no impact on the Company’s financial statements. In August 2017, the FASB issued ASU 2017-12, “Targeted Improvements to Accounting for Hedging Activities.” The new guidance provides targeted improvements to the accounting for hedging activities to better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedging results. The Company adopted ASU 2017-12 effective January 1, 2019 with no impact on the Company’s 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 Company adopted ASU 2018-02 effective January 1, 2019 with no impact on the Company’s financial statements. In June 2018, the FASB issued ASU 2018-07, “Compensation-Stock Compensation (Topic 718), Improvements to Non-employee Share-Based Payment Accounting.” ASU 2018-07 aligns the measurement and classification guidance for share-based payments to non-employees with the guidance for share-based payments to employees. The Company adopted ASU 2018-07 effective January 1, 2019 with no impact on the Company’s financial statements. In October 2018, the FASB issued ASU 2018-16, “Derivatives and Hedging (Topic 815), Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate of Hedge Accounting Purposes.” The Company adopted ASU 2018-16 effective January 1, 2019 with no impact on the Company’s financial statements. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2018 $ 3,328 $ 40,311 $ (343 ) $ 43,296 Unrealized gains 3,836 1,745 603 6,184 Amounts reclassified from AOCI (6,257 ) (2,862 ) (50 ) (9,169 ) Balance at September 30, 2019 $ 907 $ 39,194 $ 210 $ 40,311 |
Schedule of Comprehensive Income Reclassifications | The following amounts were reclassified out of AOCI: Three Months Ended September 30, Nine Months Ended September 30, Details About AOCI Components 2019 2018 2019 2018 Line Item in the Condensed Consolidated Statement of Operations (In thousands) Coal hedges $ 2,963 $ (4,824 ) $ 5,067 $ (4,824 ) Revenues Interest rate hedges 161 265 1,190 753 Interest expense — — — — Provision for (benefit from) income taxes $ 3,124 $ (4,559 ) $ 6,257 $ (4,071 ) Net of tax Pension, postretirement and other post-employment benefits Amortization of actuarial gains (losses), net $ 2,236 $ — $ 2,236 $ — Non-service related pension and postretirement benefit (costs) credits Pension settlement 197 613 626 1,984 Non-service related pension and postretirement benefit (costs) credits — — — — Provision for (benefit from) income taxes $ 2,433 $ 613 $ 2,862 $ 1,984 Net of tax Available-for-sale securities $ 35 $ 8 $ 50 $ 24 Interest and investment income — — — — Provision for (benefit from) income taxes $ 35 $ 8 $ 50 $ 24 Net of tax |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following: September 30, December 31, 2019 2018 (In thousands) Coal $ 79,746 $ 40,982 Repair parts and supplies 91,797 84,488 $ 171,543 $ 125,470 |
Investments in Available-for-_2
Investments in Available-for-Sale Securities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Securities, Available-for-sale [Abstract] | |
Available-for-sale Securities | The Company’s investments in available-for-sale marketable securities are as follows: September 30, 2019 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 $ 64,930 $ 52 $ (17 ) $ 64,965 $ 64,965 $ — Corporate notes and bonds 110,917 275 (101 ) 111,091 111,091 — Total Investments $ 175,847 $ 327 $ (118 ) $ 176,056 $ 176,056 $ — December 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 $ 100,003 $ 11 $ (126 ) $ 99,888 $ 99,888 $ — Corporate notes and bonds 63,137 4 (232 ) 62,909 62,909 — Total Investments $ 163,140 $ 15 $ (358 ) $ 162,797 $ 162,797 $ — |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Price Risk Derivatives | At September 30, 2019 , the Company held derivatives for risk management purposes that are expected to settle in the following years: (Tons in thousands) 2019 2020 Total Coal sales 607 668 1,275 Coal purchases 385 337 722 |
Disclosure of Fair Value of Derivatives | The fair value and location of derivatives reflected in the accompanying Condensed Consolidated Balance Sheets are as follows: September 30, 2019 December 31, 2018 Fair Value of Derivatives Asset Liability Asset Liability (In thousands) Derivative Derivative Derivative Derivative Derivatives Designated as Hedging Instruments Coal $ 3,842 $ (671 ) $ 2,342 $ (805 ) Derivatives Not Designated as Hedging Instruments Heating oil -- diesel purchases 383 (629 ) 532 — Coal -- held for trading purposes 20,116 (20,925 ) 10,329 (10,701 ) Coal -- risk management 18,305 (11,067 ) 5,672 (19,579 ) Natural gas — — 4 (4 ) Total $ 38,804 $ (32,621 ) $ 16,537 $ (30,284 ) Total derivatives $ 42,646 $ (33,292 ) $ 18,879 $ (31,089 ) Effect of counterparty netting (32,663 ) 32,663 (17,801 ) 17,801 Net derivatives as classified in the balance sheets $ 9,983 $ (629 ) $ 9,354 $ 1,078 $ (13,288 ) $ (12,210 ) September 30, 2019 December 31, 2018 Net derivatives as reflected on the balance sheets (in thousands) Heating oil and coal Other current assets $ 9,983 $ 1,078 Coal Accrued expenses and other current liabilities (629 ) (13,288 ) $ 9,354 $ (12,210 ) |
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 September 30, Gain (Loss) Recognized in Other Comprehensive Income Gains (Losses) Reclassified from Other Comprehensive Income into Income 2019 2018 2019 2018 Coal sales (1) $ 225 $ (4,631 ) $ 2,963 $ (6,996 ) Coal purchases (2) (34 ) 424 — 2,171 Totals $ 191 $ (4,207 ) $ 2,963 $ (4,825 ) Derivatives Not Designated as Hedging Instruments (in thousands) Three Months Ended September 30, Gain (Loss) Recognized 2019 2018 Coal trading — realized and unrealized (3) $ (127 ) $ (928 ) Coal risk management — unrealized (3) (1,417 ) (9,486 ) Natural gas trading— realized and unrealized (3) 14 (4 ) Change in fair value of coal derivatives and coal trading activities, net total $ (1,530 ) $ (10,418 ) Coal risk management— realized (4) $ 3,216 $ (2,537 ) Heating oil — diesel purchases (4) $ (1,670 ) $ 719 ____________________________________________________________ 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 Derivatives used in Cash Flow Hedging Relationships (in thousands) Nine Months Ended September 30, Gain (Loss) Recognized in Other Comprehensive Income Gains (Losses) Reclassified from Other Comprehensive Income into Income 2019 2018 2019 2018 Coal sales (1) $ 9,472 $ (14,862 ) $ 5,750 $ (6,996 ) Coal purchases (2) (940 ) 2,587 (686 ) 2,171 Totals $ 8,532 $ (12,275 ) $ 5,064 $ (4,825 ) Derivatives Not Designated as Hedging Instruments (in thousands) Nine Months Ended September 30, Gain (Loss) Recognized 2019 2018 Coal trading — realized and unrealized (3) $ (1,228 ) $ 14 Coal risk management — unrealized (3) 21,145 (22,116 ) Natural gas trading— realized and unrealized (3) (66 ) (40 ) Change in fair value of coal derivatives and coal trading activities, net total $ 19,851 $ (22,142 ) Coal risk management— realized (4) $ (2,076 ) $ (5,217 ) Heating oil — diesel purchases (4) $ (2,402 ) $ 4,394 ____________________________________________________________ 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 Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: September 30, December 31, 2019 2018 (In thousands) Payroll and employee benefits $ 49,566 $ 57,166 Taxes other than income taxes 71,738 75,017 Interest 131 156 Acquired sales contracts 203 570 Workers’ compensation 18,053 20,044 Asset retirement obligations 12,297 13,113 Other 9,951 17,448 $ 161,939 $ 183,514 |
Debt and Financing Arrangemen_2
Debt and Financing Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | September 30, December 31, 2019 2018 (In thousands) Term loan due 2024 ($292.5 million face value) $ 291,524 $ 293,626 Other 18,471 30,449 Debt issuance costs (5,289 ) (6,092 ) 304,706 317,983 Less: current maturities of debt 11,925 17,797 Long-term debt $ 292,781 $ 300,186 |
Schedule of Interest Rate Derivatives | Below is a summary of the Company’s outstanding interest rate swap agreements designated as hedges as of September 30, 2019 : Notional Amount (in millions) Effective Date Fixed Rate Receive Rate Expiration Date $250.0 June 28, 2019 2.025% 1-month LIBOR June 30, 2020 $200.0 June 30, 2020 2.249% 1-month LIBOR June 30, 2021 $100.0 June 30, 2021 2.315% 1-month LIBOR June 30, 2023 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | A reconciliation of the statutory federal income tax provision at the statutory rate to the actual provision for (benefit from) income taxes follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (In thousands) Income tax provision at statutory rate $ 22,494 $ 16,375 $ 51,000 $ 37,245 Percentage depletion allowance (6,347 ) (5,964 ) (14,111 ) (13,059 ) State taxes, net of effect of federal taxes 1,825 4,528 3,668 5,865 Change in valuation allowance (19,120 ) (44,278 ) (42,925 ) (62,234 ) Current expense associated with uncertain tax positions 1,495 511 2,932 (599 ) Impact of Tax Cuts and Jobs Act of 2017 — (19,780 ) — (19,780 ) Other, net — 3,393 (56 ) 3,437 Provision for (benefit from) income taxes $ 347 $ (45,215 ) $ 508 $ (49,125 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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: September 30, 2019 Total Level 1 Level 2 Level 3 (In thousands) Assets: Investments in marketable securities $ 176,056 $ 64,965 $ 111,091 $ — Derivatives 9,983 8,366 1,234 383 Total assets $ 186,039 $ 73,331 $ 112,325 $ 383 Liabilities: Derivatives $ 4,071 $ — $ 4,130 $ (59 ) |
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 September 30, 2019 Nine Months Ende d September 30, 2019 (In thousands) Balance, beginning of period $ 755 $ 532 Realized and unrealized gains recognized in earnings, net (1,252 ) (1,794 ) Purchases 562 1,562 Issuances (45 ) (45 ) Settlements 422 187 Ending balance $ 442 $ 442 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | The following table provides the basis for basic and diluted earnings per share by reconciling the denominators of the computations: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (In thousands) Weighted average shares outstanding: Basic weighted average shares outstanding 15,736 19,250 16,591 20,102 Effect of dilutive securities 1,116 958 1,153 938 Diluted weighted average shares outstanding 16,852 20,208 17,744 21,040 |
Workers Compensation Expense (T
Workers Compensation Expense (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Compensation Related Costs [Abstract] | |
Workers' compensation expense | Workers’ compensation expense consists of the following components: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (In thousands) Self-insured occupational disease benefits: Service cost $ 1,670 $ 1,860 $ 5,008 $ 5,580 Interest cost (1) 1,354 1,196 4,062 3,585 Total occupational disease $ 3,024 $ 3,056 $ 9,070 $ 9,165 Traumatic injury claims and assessments 2,088 (2,069 ) 6,642 3,130 Total workers’ compensation expense $ 5,112 $ 987 $ 15,712 $ 12,295 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (In thousands) Interest cost (1) $ 1,922 $ 2,376 $ 6,439 $ 6,917 Expected return on plan assets (1) (2,699 ) (2,906 ) (8,146 ) (9,067 ) Pension settlement (1) (197 ) (613 ) (626 ) (1,984 ) Amortization of prior service costs (credits) 4 — 4 — Net benefit credit $ (970 ) $ (1,143 ) $ (2,329 ) $ (4,134 ) The following table details the components of other postretirement benefit costs: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (In thousands) Service cost $ 120 $ 140 $ 360 $ 419 Interest cost (1) 876 918 2,629 2,755 Amortization of other actuarial losses (gains) (2,236 ) — (2,236 ) — Net benefit cost (credit) $ (1,240 ) $ 1,058 $ 753 $ 3,174 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segment Results | PRB MET Other Thermal Corporate, Other and Eliminations Consolidated (in thousands) Three Months Ended September 30, 2019 Revenues $ 269,967 $ 254,493 $ 94,052 $ 955 $ 619,467 Adjusted EBITDA 50,153 70,814 16,659 (31,005 ) 106,621 Depreciation, depletion and amortization 5,956 19,962 3,852 632 30,402 Accretion on asset retirement obligation 3,135 531 603 868 5,137 Total assets 236,656 609,378 148,994 939,572 1,934,600 Capital expenditures 5,402 36,475 6,837 738 49,452 Three Months Ended September 30, 2018 Revenues $ 261,927 $ 236,328 $ 130,663 $ 4,262 $ 633,180 Adjusted EBITDA 48,646 81,250 25,200 (30,202 ) 124,894 Depreciation, depletion and amortization 9,114 18,106 3,924 631 31,775 Accretion on asset retirement obligation 4,885 469 565 1,073 6,992 Total assets 374,092 561,989 127,904 933,637 1,997,622 Capital expenditures 3,458 17,827 3,332 1,076 25,693 Nine Months Ende d September 30, 2019 Revenues $ 692,845 $ 769,000 $ 278,235 $ 4,792 $ 1,744,872 Adjusted EBITDA 85,433 264,284 33,699 (63,977 ) 319,439 Depreciation, depletion and amortization 15,702 53,687 10,976 1,834 82,199 Accretion on asset retirement obligation 9,406 1,592 1,810 2,603 15,411 Total assets 236,656 609,378 148,994 939,572 1,934,600 Capital expenditures 19,026 98,849 16,299 3,222 137,396 Nine Months Ended September 30, 2018 Revenues $ 737,233 $ 733,707 $ 321,997 $ 7,887 $ 1,800,824 Adjusted EBITDA 102,639 251,649 52,710 (91,806 ) 315,192 Depreciation, depletion and amortization 25,841 53,109 11,459 1,618 92,027 Accretion on asset retirement obligation 14,656 1,406 1,696 3,219 20,977 Total assets 374,092 561,989 127,904 933,637 1,997,622 Capital expenditures 7,221 35,555 7,097 5,869 55,742 |
Reconciliation Statement of Segment Income from Operations to Consolidated Income Before Income Taxes | A reconciliation of net income to adjusted EBITDA follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (In thousands) Net income $ 106,769 $ 123,192 $ 242,350 $ 226,483 Provision for (benefit from) income taxes 347 (45,215 ) 508 (49,125 ) Interest expense, net 340 3,378 4,916 10,998 Depreciation, depletion and amortization 30,402 31,775 82,199 92,027 Accretion on asset retirement obligations 5,137 6,992 15,411 20,977 Amortization of sales contracts, net (153 ) 3,241 (77 ) 9,540 Loss on sale of Lone Mountain Processing, LLC — — 4,304 — Preference Rights Lease Application (PRLA) settlement income (39,000 ) — (39,000 ) — Net loss resulting from early retirement of debt and debt restructuring — — — 485 Non-service related pension and postretirement benefit costs (975 ) 971 2,127 2,206 Reorganization items, net — 560 (71 ) 1,601 Costs associated with proposed joint venture with Peabody Energy 3,754 — 6,772 — Adjusted EBITDA $ 106,621 $ 124,894 $ 319,439 $ 315,192 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 North America revenues $ 269,967 $ 63,755 $ 47,571 $ 955 $ 382,248 Seaborne revenues — 190,738 46,481 — 237,219 Total revenues $ 269,967 $ 254,493 $ 94,052 $ 955 $ 619,467 Three Months Ended September 30, 2018 North America revenues $ 261,927 $ 49,698 $ 56,051 $ 4,262 $ 371,938 Seaborne revenues — 186,630 74,612 — 261,242 Total revenues $ 261,927 $ 236,328 $ 130,663 $ 4,262 $ 633,180 Nine Months Ende d September 30, 2019 North America revenues $ 692,845 $ 163,317 $ 141,985 $ 4,792 $ 1,002,939 Seaborne revenues — 605,683 136,250 — 741,933 Total revenues $ 692,845 $ 769,000 $ 278,235 $ 4,792 $ 1,744,872 Nine Months Ended September 30, 2018 North America revenues $ 735,322 $ 117,699 $ 140,265 $ 7,887 $ 1,001,173 Seaborne revenues 1,911 616,008 181,732 — 799,651 Total revenues $ 737,233 $ 733,707 $ 321,997 $ 7,887 $ 1,800,824 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Information related to leases | Information related to leases was as follows: Three Months Ended September 30, 2019 (In thousands) Operating lease information: Operating lease cost $ 1,071 Operating cash flows from operating leases 1,078 Weighted average remaining lease term in years 6.19 Weighted average discount rate 5.5 % |
Schedule of future minimum lease payments | Future minimum lease payments under non-cancellable leases as of September 30, 2019 were as follows: Year Amount (In thousands) 2019 $ 1,024 2020 3,616 2021 3,367 2022 3,292 2023 3,261 Thereafter 11,153 Total minimum lease payments $ 25,713 Less imputed interest (4,725 ) Total operating lease liability $ 20,988 As reflected on balance sheet: Accrued expenses and other current liabilities $ 2,713 Other noncurrent liabilities 18,275 Total operating lease liability $ 20,988 |
Joint Venture with Peabody En_2
Joint Venture with Peabody Energy (Details) - Implementation Agreement - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Jun. 18, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Economic interest held | 33.50% | ||
Incurred expenses related to regulatory approval process | $ 3.8 | $ 6.8 | |
Peabody Energy Corporation | |||
Schedule of Equity Method Investments [Line Items] | |||
Economic interest held | 66.50% |
Loss on Sale of Lone Mountain_2
Loss on Sale of Lone Mountain Processing, LLC (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain (loss) on sale of Lone Mountain Processing, LLC | $ 0 | $ 0 | $ (4,304) | $ 0 | |
Lone Mountain Processing Inc and 2 idled mining companies | Discontinued Operations, Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain (loss) on sale of Lone Mountain Processing, LLC | $ (4,300) | $ 21,300 |
Preference Rights Lease Appli_2
Preference Rights Lease Application (PRLA) Settlement Income (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Gain Contingencies [Line Items] | |||||
Gain related to settlement | $ 39,000 | $ 0 | $ 39,000 | $ 0 | |
Preference Rights Lease Application (PRLA) | |||||
Gain Contingencies [Line Items] | |||||
Gain related to settlement | 39,000 | ||||
Royalty credits to be received due to settlement | $ 67,000 | ||||
Royalty credits to be received due to settlement, percentage of royalty obligations | 50.00% | ||||
Minimum | Preference Rights Lease Application (PRLA) | |||||
Gain Contingencies [Line Items] | |||||
Royalty credits to be received due to settlement, period of recognition | 18 months | ||||
Maximum | Preference Rights Lease Application (PRLA) | |||||
Gain Contingencies [Line Items] | |||||
Royalty credits to be received due to settlement, period of recognition | 24 months | ||||
Forecast | Preference Rights Lease Application (PRLA) | |||||
Gain Contingencies [Line Items] | |||||
One-time payment for ownership interest | $ 27,000 | ||||
Payment to acquire investment, closing fees | $ 1,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Accumulated Other Comprenhensive Income (Loss) [Roll Forward] | |
Beginning Balance | $ 704,821 |
Unrealized gains | 6,184 |
Amounts reclassified from AOCI | (9,169) |
Ending Balance | 705,436 |
Accumulated Other Comprehensive Income | |
Accumulated Other Comprenhensive Income (Loss) [Roll Forward] | |
Beginning Balance | 43,296 |
Ending Balance | 40,311 |
Derivative instruments | |
Accumulated Other Comprenhensive Income (Loss) [Roll Forward] | |
Beginning Balance | 3,328 |
Unrealized gains | 3,836 |
Amounts reclassified from AOCI | (6,257) |
Ending Balance | 907 |
Pension, postretirement and other post-employment benefits | |
Accumulated Other Comprenhensive Income (Loss) [Roll Forward] | |
Beginning Balance | 40,311 |
Unrealized gains | 1,745 |
Amounts reclassified from AOCI | (2,862) |
Ending Balance | 39,194 |
Available-for-sale securities | |
Accumulated Other Comprenhensive Income (Loss) [Roll Forward] | |
Beginning Balance | (343) |
Unrealized gains | 603 |
Amounts reclassified from AOCI | (50) |
Ending Balance | $ 210 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Schedule of Reclassifications) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Revenues | $ 619,467 | $ 633,180 | $ 1,744,872 | $ 1,800,824 |
Interest expense | (4,049) | (5,179) | (12,856) | (15,624) |
Provision for (benefit from) income taxes | (347) | 45,215 | (508) | 49,125 |
Interest and investment income | 3,709 | 1,801 | 7,940 | 4,626 |
Net income | 106,769 | 123,192 | 242,350 | 226,483 |
Reclassification out of Accumulated Other Comprehensive Income | Hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Revenues | 2,963 | (4,824) | 5,067 | (4,824) |
Interest expense | 161 | 265 | 1,190 | 753 |
Provision for (benefit from) income taxes | 0 | 0 | 0 | 0 |
Net income | 3,124 | (4,559) | 6,257 | (4,071) |
Reclassification out of Accumulated Other Comprehensive Income | Pension, postretirement and other post-employment benefits | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Provision for (benefit from) income taxes | 0 | 0 | 0 | 0 |
Amortization of actuarial gains (losses), net | 2,236 | 0 | 2,236 | 0 |
Pension settlement | 197 | 613 | 626 | 1,984 |
Net income | 2,433 | 613 | 2,862 | 1,984 |
Reclassification out of Accumulated Other Comprehensive Income | Available-for-sale securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Provision for (benefit from) income taxes | 0 | 0 | 0 | 0 |
Interest and investment income | 35 | 8 | 50 | 24 |
Net income | $ 35 | $ 8 | $ 50 | $ 24 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Coal | $ 79,746 | $ 40,982 |
Repair parts and supplies | 91,797 | 84,488 |
Inventories | 171,543 | 125,470 |
Allowance for slow-moving and obsolete inventories | $ 1,700 | $ 600 |
Investments in Available-for-_3
Investments in Available-for-Sale Securities (Schedule of Investments) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, Cost Basis | $ 175,847 | $ 163,140 |
Available-for-sale, Gains | 327 | 15 |
Available-for-sale, Losses | (118) | (358) |
Available-for-sale, Fair Value | 176,056 | 162,797 |
Available-for-sale, Short-Term Investments | 176,056 | 162,797 |
Short-term Investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, Short-Term Investments | 176,056 | 162,797 |
Other Assets | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, Other Assets | 0 | 0 |
U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, Cost Basis | 64,930 | 100,003 |
Available-for-sale, Gains | 52 | 11 |
Available-for-sale, Losses | (17) | (126) |
Available-for-sale, Fair Value | 64,965 | 99,888 |
U.S. government and agency securities | Short-term Investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, Short-Term Investments | 64,965 | 99,888 |
U.S. government and agency securities | Other Assets | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, Other Assets | 0 | 0 |
Corporate notes and bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, Cost Basis | 110,917 | 63,137 |
Available-for-sale, Gains | 275 | 4 |
Available-for-sale, Losses | (101) | (232) |
Available-for-sale, Fair Value | 111,091 | 62,909 |
Corporate notes and bonds | Short-term Investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, Short-Term Investments | 111,091 | 62,909 |
Corporate notes and bonds | Other Assets | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, Other Assets | $ 0 | $ 0 |
Investments in Available-for-_4
Investments in Available-for-Sale Securities (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Abstract] | ||
Unrealized losses owned for less than 12 months | $ 51.7 | $ 115.2 |
Unrealized losses owed for over a year | $ 0 | $ 32.4 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) gal in Millions, $ in Millions | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($)$ / optiongal | Dec. 31, 2020USD ($) | Jun. 30, 2020$ / option | Dec. 31, 2018USD ($) | |
Derivative [Line Items] | |||||
Current asset representing cash collateral posted | $ | $ 1.9 | $ 24.7 | |||
Derivative contracts expected to be reclassified from OCI into earnings | $ | $ 3.1 | ||||
Not Designated as Hedging Instrument | Heating Oil | |||||
Derivative [Line Items] | |||||
Quantities under derivative contracts (in gallons) | 4 | ||||
Derivative, average price risk option strike price (in usd per gallon) | $ / option | 2.30 | ||||
Percent of expected requirements covered | 34.00% | ||||
Not Designated as Hedging Instrument | Diesel Purchases | Minimum | |||||
Derivative [Line Items] | |||||
Diesel fuel purchased annually (in gallons) | 40 | ||||
Not Designated as Hedging Instrument | Diesel Purchases | Maximum | |||||
Derivative [Line Items] | |||||
Diesel fuel purchased annually (in gallons) | 47 | ||||
Forecast | |||||
Derivative [Line Items] | |||||
Value of trading portfolio realized - gains (losses) | $ | $ (0.2) | $ (0.6) | |||
Forecast | Not Designated as Hedging Instrument | Heating Oil | |||||
Derivative [Line Items] | |||||
Derivative, average price risk option strike price (in usd per gallon) | $ / option | 2.24 | ||||
NYMEX | Not Designated as Hedging Instrument | Diesel Purchases | |||||
Derivative [Line Items] | |||||
Quantities under derivative contracts (in gallons) | 6 | ||||
Derivative, average price risk option strike price (in usd per gallon) | $ / option | 1.92 | ||||
NYMEX | Not Designated as Hedging Instrument | Diesel Purchases | Heating Oil | |||||
Derivative [Line Items] | |||||
Quantities under derivative contracts (in gallons) | 26 |
Derivatives (Schedule of Price
Derivatives (Schedule of Price Risk Derivatives) (Details) T in Thousands | 9 Months Ended |
Sep. 30, 2019T | |
Coal sales | |
Derivative [Line Items] | |
Derivatives held (in tons) | 1,275 |
Coal purchases | |
Derivative [Line Items] | |
Derivatives held (in tons) | 722 |
2019 | Coal sales | |
Derivative [Line Items] | |
Derivatives held (in tons) | 607 |
2019 | Coal purchases | |
Derivative [Line Items] | |
Derivatives held (in tons) | 385 |
2020 | Coal sales | |
Derivative [Line Items] | |
Derivatives held (in tons) | 668 |
2020 | Coal purchases | |
Derivative [Line Items] | |
Derivatives held (in tons) | 337 |
Derivatives (Disclosure Of Fair
Derivatives (Disclosure Of Fair Value Of Derivatives) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Derivative Assets | $ 42,646 | $ 18,879 |
Derivative Liabilities | (33,292) | (31,089) |
Effect of counterparty netting in derivative assets | (32,663) | (17,801) |
Effect of counterparty netting in derivative liabilities | 32,663 | 17,801 |
Derivative Asset | 9,983 | 1,078 |
Derivative Liability | (629) | (13,288) |
Net derivatives as classified in the balance sheets | 9,354 | (12,210) |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Assets | 38,804 | 16,537 |
Derivative Liabilities | (32,621) | (30,284) |
Not Designated as Hedging Instrument | Coal Contract | ||
Derivative [Line Items] | ||
Derivative Assets | 20,116 | 10,329 |
Derivative Liabilities | (20,925) | (10,701) |
Coal Contract | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Assets | 3,842 | 2,342 |
Derivative Liabilities | (671) | (805) |
Coal Contract | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Assets | 18,305 | 5,672 |
Derivative Liabilities | (11,067) | (19,579) |
Heating oil — diesel purchases | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Assets | 383 | 532 |
Derivative Liabilities | (629) | 0 |
Natural gas | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Assets | 0 | 4 |
Derivative Liabilities | $ 0 | $ (4) |
Derivatives (Net Derivatives As
Derivatives (Net Derivatives As Reflected On The Balance Sheets) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Net derivatives as classified in the balance sheet | $ 9,354 | $ (12,210) |
Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Net derivatives as classified in the balance sheet | (629) | (13,288) |
Heating oil and coal | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Net derivatives as classified in the balance sheet | $ 9,983 | $ 1,078 |
Derivatives (Effects Of Derivat
Derivatives (Effects Of Derivatives On Measures Of Financial Performance) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in fair value of coal derivatives and coal trading activities, net | $ (1,530) | $ (10,418) | $ 19,851 | $ (22,142) |
Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Other Comprehensive Income | 191 | (4,207) | 8,532 | (12,275) |
Gains (Losses) Reclassified from Other Comprehensive Income into Income | 2,963 | (4,825) | 5,064 | (4,825) |
Designated as Hedging Instrument | Coal sales | Coal Contract | Coal sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Other Comprehensive Income | 225 | (4,631) | 9,472 | (14,862) |
Gains (Losses) Reclassified from Other Comprehensive Income into Income | 2,963 | (6,996) | 5,750 | (6,996) |
Designated as Hedging Instrument | Coal purchases | Coal Contract | Coal purchases | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Other Comprehensive Income | (34) | 424 | (940) | 2,587 |
Gains (Losses) Reclassified from Other Comprehensive Income into Income | 0 | 2,171 | (686) | 2,171 |
Not Designated as Hedging Instrument | Coal Contract | Coal and natural gas realized and unrealized | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized and Unrealized Gain (Loss) on Derivatives | (127) | (928) | (1,228) | 14 |
Unrealized Gain (Loss) on Derivatives | (1,417) | (9,486) | 21,145 | (22,116) |
Not Designated as Hedging Instrument | Coal Contract | Other operating (income) expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized Gain (Loss) on Derivatives | 3,216 | (2,537) | (2,076) | (5,217) |
Not Designated as Hedging Instrument | Natural gas | Coal and natural gas realized and unrealized | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized and Unrealized Gain (Loss) on Derivatives | 14 | (4) | (66) | (40) |
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 | $ (1,670) | $ 719 | $ (2,402) | $ 4,394 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Payroll and employee benefits | $ 49,566 | $ 57,166 |
Taxes other than income taxes | 71,738 | 75,017 |
Interest | 131 | 156 |
Acquired sales contracts | 203 | 570 |
Workers’ compensation | 18,053 | 20,044 |
Asset retirement obligations | 12,297 | 13,113 |
Other | 9,951 | 17,448 |
Accrued expenses and other current liabilities | $ 161,939 | $ 183,514 |
Debt and Financing Arrangemen_3
Debt and Financing Arrangements (Long term Debt) (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 | Mar. 07, 2017 |
Debt Instrument [Line Items] | |||
Term loan | $ 291,524,000 | $ 293,626,000 | |
Other | 18,471,000 | 30,449,000 | |
Debt issuance costs | (5,289,000) | (6,092,000) | |
Total | 304,706,000 | 317,983,000 | |
Less: current maturities of debt | 11,925,000 | 17,797,000 | |
Long-term debt | 292,781,000 | $ 300,186,000 | |
Senior Notes | New Term Loan Debt Facility | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 292,500,000 | $ 300,000,000 |
Debt and Financing Arrangemen_4
Debt and Financing Arrangements (Narrative) (Details) - USD ($) | Aug. 27, 2018 | Apr. 27, 2018 | Apr. 03, 2018 | Apr. 27, 2017 | Mar. 07, 2017 | Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Line of Credit Facility [Line Items] | ||||||||
Fair value of derivative assets | $ 42,646,000 | $ 42,646,000 | $ 18,879,000 | |||||
Interest Rate Swap | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Interest rate swaps settlements gains | 200,000 | 1,200,000 | ||||||
Other Noncurrent Assets | Interest Rate Swap | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Fair value of derivative assets | (3,400,000) | (3,400,000) | ||||||
Senior Notes | New Term Loan Debt Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Net cash proceeds of from debt issuances and other non-ordinary sales or dispositions (percent) | 100.00% | |||||||
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 | |||||||
Senior Notes | New Term Loan Debt Facility | LIBOR | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 2.75% | |||||||
Basis spread on variable rate, floor | 1.00% | |||||||
Senior Notes | New Term Loan Debt Facility | Base Rate | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 1.75% | |||||||
New Term Loan Debt Facility | Senior Notes | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt instrument, face amount | $ 300,000,000 | $ 292,500,000 | 292,500,000 | |||||
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 | 2.75% | |||||||
Line of Credit | Secured Debt | Regions Bank | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | 50,000,000 | |||||||
Facility size, increase | $ 10,000,000 | |||||||
Line of Credit | Secured Debt | Accounts Receivable Securitization Facility | Arch Receivable Company, LLC | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 160,000,000 | |||||||
Maturity date | 3 years | 3 years | ||||||
Covenant minimum amount | $ 175,000,000 | |||||||
Liquidity threshold, consecutive days | 60 days | |||||||
Liquidity threshold | 364 days | |||||||
Liquidity threshold, expiration period | 60 days | |||||||
Letters of credit outstanding | $ 15,500,000 | 15,500,000 | ||||||
Current borrowing capacity | 92,600,000 | 92,600,000 | ||||||
Line of Credit | Secured Debt | Inventory-Based Revolving Credit Facility | Regions Bank | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt instrument, face amount | 40,000,000 | |||||||
Covenant minimum amount | $ 175,000,000 | |||||||
Liquidity threshold, consecutive days | 60 days | |||||||
Liquidity threshold | 364 days | |||||||
Liquidity threshold, expiration period | 60 days | |||||||
Letters of credit outstanding | 35,900,000 | 35,900,000 | ||||||
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 | |||||||
Additional availability for borrowings | $ 14,100,000 | $ 14,100,000 | ||||||
Line of Credit | Secured Debt | Inventory-Based Revolving Credit Facility | LIBOR | Regions Bank | Minimum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 2.00% | |||||||
Line of Credit | Secured Debt | Inventory-Based Revolving Credit Facility | LIBOR | Regions Bank | Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Percentage of clause borrowing base | 2.50% | |||||||
Line of Credit | Secured Debt | Inventory-Based Revolving Credit Facility | Base Rate | Regions Bank | Minimum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 1.00% | |||||||
Line of Credit | Secured Debt | Inventory-Based Revolving Credit Facility | Base Rate | Regions Bank | Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 1.50% |
Debt and Financing Arrangemen_5
Debt and Financing Arrangements (Interest rate derivatives) (Details) $ in Millions | Sep. 30, 2019USD ($) |
Interest rate swap, effective 2019 | |
Debt Instrument [Line Items] | |
Notional Amount | $ 250 |
Fixed Rate | 2.025% |
Interest rate swap, effective 2020 | |
Debt Instrument [Line Items] | |
Notional Amount | $ 200 |
Fixed Rate | 2.249% |
Interest rate swap, effective 2021 | |
Debt Instrument [Line Items] | |
Notional Amount | $ 100 |
Fixed Rate | 2.315% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision at statutory rate | $ 22,494 | $ 16,375 | $ 51,000 | $ 37,245 |
Percentage depletion allowance | (6,347) | (5,964) | (14,111) | (13,059) |
State taxes, net of effect of federal taxes | 1,825 | 4,528 | 3,668 | 5,865 |
Change in valuation allowance | (19,120) | (44,278) | (42,925) | (62,234) |
Current expense associated with uncertain tax positions | 1,495 | 511 | 2,932 | (599) |
Impact of Tax Cuts and Jobs Act of 2017 | 0 | (19,780) | 0 | (19,780) |
Other, net | 0 | 3,393 | (56) | 3,437 |
Provision for (benefit from) income taxes | $ 347 | (45,215) | $ 508 | $ (49,125) |
Unrecognized tax benefit, change during period | $ 24,900 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary Of Financial Assets And Liabilities Accounted For At Fair Value) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Investments in marketable securities | $ 176,056 | $ 162,797 |
Liabilities: | ||
Derivatives | 629 | $ 13,288 |
Interest Rate Swap | ||
Assets: | ||
Investments in marketable securities | 176,056 | |
Derivatives | 9,983 | |
Total assets | 186,039 | |
Liabilities: | ||
Derivatives | 4,071 | |
Interest Rate Swap | Level 1 | ||
Assets: | ||
Investments in marketable securities | 64,965 | |
Derivatives | 8,366 | |
Total assets | 73,331 | |
Liabilities: | ||
Derivatives | 0 | |
Interest Rate Swap | Level 2 | ||
Assets: | ||
Investments in marketable securities | 111,091 | |
Derivatives | 1,234 | |
Total assets | 112,325 | |
Liabilities: | ||
Derivatives | 4,130 | |
Interest Rate Swap | Level 3 | ||
Assets: | ||
Investments in marketable securities | 0 | |
Derivatives | 383 | |
Total assets | 383 | |
Liabilities: | ||
Derivatives | $ (59) |
Fair Value Measurements (Summ_2
Fair Value Measurements (Summary Of Change In The Fair Values Of Financial Instruments Categorized As Level 3) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | $ 755 | $ 532 |
Realized and unrealized gains recognized in earnings, net | (1,252) | (1,794) |
Purchases | 562 | 1,562 |
Issuances | (45) | (45) |
Settlements | 422 | 187 |
Ending balance | $ 442 | $ 442 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
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 | $ 306.9 | $ 306.9 | $ 318.6 |
Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Net unrealized gains (losses) related to level 3 financial instruments | $ (1) | $ (1.9) |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Weighted average shares outstanding: | ||||
Basic weighted average shares outstanding (in shares) | 15,736 | 19,250 | 16,591 | 20,102 |
Effect of dilutive securities (in shares) | 1,116 | 958 | 1,153 | 938 |
Diluted weighted average shares outstanding (in shares) | 16,852 | 20,208 | 17,744 | 21,040 |
Workers Compensation Expense (D
Workers Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Occupational disease | ||||
Accrued Workers Compensation [Line Items] | ||||
Service cost | $ 1,670 | $ 1,860 | $ 5,008 | $ 5,580 |
Interest cost | 1,354 | 1,196 | 4,062 | 3,585 |
Net benefit credit | 3,024 | 3,056 | 9,070 | 9,165 |
Traumatic injury claims and assessments | ||||
Accrued Workers Compensation [Line Items] | ||||
Traumatic injury claims and assessments | 2,088 | (2,069) | 6,642 | 3,130 |
Total workers’ compensation expense | ||||
Accrued Workers Compensation [Line Items] | ||||
Total workers’ compensation expense | $ 5,112 | $ 987 | $ 15,712 | $ 12,295 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2015 | |
Defined benefit pension plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Interest cost | $ 1,922 | $ 2,376 | $ 6,439 | $ 6,917 | |
Expected return on plan assets | (2,699) | (2,906) | (8,146) | (9,067) | |
Pension settlement | (197) | (613) | (626) | (1,984) | |
Amortization of prior service costs (credits) | 4 | 0 | 4 | $ 0 | |
Net benefit credit | (970) | (1,143) | (2,329) | (4,134) | |
Other postretirement benefits plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 120 | 140 | 360 | 419 | |
Interest cost | 876 | 918 | 2,629 | 2,755 | |
Amortization of other actuarial losses (gains) | (2,236) | 0 | (2,236) | 0 | |
Net benefit credit | $ (1,240) | $ 1,058 | $ 753 | $ 3,174 |
Segment Information (Schedule O
Segment Information (Schedule Of Operating Segment Results) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)Segment | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting [Abstract] | |||||
Number of reportable segments | Segment | 2 | ||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 619,467 | $ 633,180 | $ 1,744,872 | $ 1,800,824 | |
Adjusted EBITDA | 106,621 | 124,894 | 319,439 | 315,192 | |
Depreciation, depletion and amortization | 30,402 | 31,775 | 82,199 | 92,027 | |
Accretion on asset retirement obligations | 5,137 | 6,992 | 15,411 | 20,977 | |
Total assets | 1,934,600 | 1,997,622 | 1,934,600 | 1,997,622 | $ 1,887,060 |
Capital expenditures | 49,452 | 25,693 | 137,396 | 55,742 | |
Operating Segments | PRB | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 269,967 | 261,927 | 692,845 | 737,233 | |
Adjusted EBITDA | 50,153 | 48,646 | 85,433 | 102,639 | |
Depreciation, depletion and amortization | 5,956 | 9,114 | 15,702 | 25,841 | |
Accretion on asset retirement obligations | 3,135 | 4,885 | 9,406 | 14,656 | |
Total assets | 236,656 | 374,092 | 236,656 | 374,092 | |
Capital expenditures | 5,402 | 3,458 | 19,026 | 7,221 | |
Operating Segments | MET | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 254,493 | 236,328 | 769,000 | 733,707 | |
Adjusted EBITDA | 70,814 | 81,250 | 264,284 | 251,649 | |
Depreciation, depletion and amortization | 19,962 | 18,106 | 53,687 | 53,109 | |
Accretion on asset retirement obligations | 531 | 469 | 1,592 | 1,406 | |
Total assets | 609,378 | 561,989 | 609,378 | 561,989 | |
Capital expenditures | 36,475 | 17,827 | 98,849 | 35,555 | |
Operating Segments | Other Thermal | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 94,052 | 130,663 | 278,235 | 321,997 | |
Adjusted EBITDA | 16,659 | 25,200 | 33,699 | 52,710 | |
Depreciation, depletion and amortization | 3,852 | 3,924 | 10,976 | 11,459 | |
Accretion on asset retirement obligations | 603 | 565 | 1,810 | 1,696 | |
Total assets | 148,994 | 127,904 | 148,994 | 127,904 | |
Capital expenditures | 6,837 | 3,332 | 16,299 | 7,097 | |
Corporate, Other and Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 955 | 4,262 | 4,792 | 7,887 | |
Adjusted EBITDA | (31,005) | (30,202) | (63,977) | (91,806) | |
Depreciation, depletion and amortization | 632 | 631 | 1,834 | 1,618 | |
Accretion on asset retirement obligations | 868 | 1,073 | 2,603 | 3,219 | |
Total assets | 939,572 | 933,637 | 939,572 | 933,637 | |
Capital expenditures | $ 738 | $ 1,076 | $ 3,222 | $ 5,869 |
Segment Information (Reconcilia
Segment Information (Reconciliation Segment Income To Consolidated Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting [Abstract] | ||||
Net income | $ 106,769 | $ 123,192 | $ 242,350 | $ 226,483 |
Provision for (benefit from) income taxes | 347 | (45,215) | 508 | (49,125) |
Interest expense, net | 340 | 3,378 | 4,916 | 10,998 |
Depreciation, depletion and amortization | 30,402 | 31,775 | 82,199 | 92,027 |
Accretion on asset retirement obligations | 5,137 | 6,992 | 15,411 | 20,977 |
Amortization of sales contracts, net | (153) | 3,241 | (77) | 9,540 |
Loss on sale of Lone Mountain Processing, Inc. | 0 | 0 | 4,304 | 0 |
Preference Rights Lease Application settlement income | (39,000) | 0 | (39,000) | 0 |
Net loss resulting from early retirement of debt and debt restructuring | 0 | 0 | 0 | 485 |
Non-service related pension and postretirement benefit costs | (975) | 971 | 2,127 | 2,206 |
Reorganization items, net | 0 | 560 | (71) | 1,601 |
Costs associated with proposed joint venture with Peabody Energy, Inc. | 3,754 | 0 | 6,772 | 0 |
Adjusted EBITDA | $ 106,621 | $ 124,894 | $ 319,439 | $ 315,192 |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 619,467 | $ 633,180 | $ 1,744,872 | $ 1,800,824 |
Corporate, Other and Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 955 | 4,262 | 4,792 | 7,887 |
North America revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 382,248 | 371,938 | 1,002,939 | 1,001,173 |
North America revenues | Corporate, Other and Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 955 | 4,262 | 4,792 | 7,887 |
Seaborne revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 237,219 | 261,242 | 741,933 | 799,651 |
Seaborne revenues | Corporate, Other and Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
PRB | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 269,967 | 261,927 | 692,845 | 737,233 |
PRB | North America revenues | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 269,967 | 261,927 | 692,845 | 735,322 |
PRB | Seaborne revenues | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 1,911 |
MET | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 254,493 | 236,328 | 769,000 | 733,707 |
MET | North America revenues | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 63,755 | 49,698 | 163,317 | 117,699 |
MET | Seaborne revenues | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 190,738 | 186,630 | 605,683 | 616,008 |
Other Thermal | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 94,052 | 130,663 | 278,235 | 321,997 |
Other Thermal | North America revenues | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 47,571 | 56,051 | 141,985 | 140,265 |
Other Thermal | Seaborne revenues | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 46,481 | $ 74,612 | $ 136,250 | $ 181,732 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) T in Millions | Sep. 30, 2019T |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations, fixed price contracts (in tons) | 17.3 |
Remaining performance obligations, variable price contracts (in tons) | 1.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations, fixed price contracts (in tons) | 96.8 |
Remaining performance obligations, variable price contracts (in tons) | 6 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Millions | Sep. 30, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |
Right-of-use operating lease asset | $ 20.3 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, remaining lease terms | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, remaining lease terms | 8 years |
Leases (Information Related to
Leases (Information Related to Leases) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Operating lease information: | |
Operating lease cost | $ 1,071 |
Operating cash flows from operating leases | $ 1,078 |
Weighted average remaining lease term in years | 6 years 2 months 9 days |
Weighted average discount rate | 5.50% |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments) (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 1,024 |
2020 | 3,616 |
2021 | 3,367 |
2022 | 3,292 |
2023 | 3,261 |
Thereafter | 11,153 |
Total minimum lease payments | 25,713 |
Less imputed interest | (4,725) |
Total operating lease liability | 20,988 |
As reflected on balance sheet: | |
Accrued expenses and other current liabilities | 2,713 |
Other noncurrent liabilities | 18,275 |
Total operating lease liability | $ 20,988 |
Subsequent Events (Details)
Subsequent Events (Details) - High-Vol A cooking coal reserve, adjacent to Leer Mine T in Millions, $ in Millions | 1 Months Ended |
Sep. 30, 2019USD ($)T | |
Subsequent Event [Line Items] | |
Reserve, mass (in tons) | T | 20 |
Payments to acquire productive assets | $ | $ 52.5 |
Productive asset, increase to useful life | 6 years |
Uncategorized Items - aci-20190
Label | Element | Value |
Restricted Cash and Cash Equivalents, Current | us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue | $ 0 |
Restricted Cash and Cash Equivalents, Current | us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue | $ 0 |