Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 02, 2015 | |
Document Documentand Entity Information [Abstract] | ||
Entity Registrant Name | WESTMORELAND COAL Co | |
Entity Central Index Key | 106,455 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 18,064,956 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 29,336 | $ 14,258 |
Receivables: | ||
Trade | 146,522 | 143,052 |
Loan and lease receivables | 6,304 | 10,493 |
Contractual third-party reclamation receivables | 19,310 | 12,462 |
Other | 15,081 | 19,923 |
Total receivables | 187,217 | 185,930 |
Inventories | 124,438 | 133,855 |
Deferred income taxes | 14,451 | 13,083 |
Other current assets | 15,795 | 13,645 |
Total current assets | 371,237 | 360,771 |
Property, plant and equipment: | ||
Land and mineral rights | 494,950 | 500,226 |
Plant and equipment | 1,012,900 | 956,112 |
Gross property, plant and equipment | 1,507,850 | 1,456,338 |
Less accumulated depreciation, depletion and amortization | 625,940 | 528,676 |
Net property, plant and equipment | 881,910 | 927,662 |
Loan and lease receivables | 51,099 | 73,180 |
Advanced coal royalties | 17,958 | 17,508 |
Reclamation deposits | 77,425 | 77,907 |
Restricted investments and bond collateral | 137,672 | 164,389 |
Contractual third-party reclamation receivables, less current portion | 96,086 | 104,021 |
Investment in joint venture | 28,664 | 33,409 |
Intangible assets, net of accumulated amortization of $16.9 million and $15.3 million at September 30, 2015 and December 31, 2014, respectively | 29,720 | 31,315 |
Other assets | 36,451 | 39,416 |
Total Assets | 1,728,222 | 1,829,578 |
Current liabilities: | ||
Current installments of long-term debt | 38,879 | 43,136 |
Revolving lines of credit | 0 | 9,576 |
Accounts payable and accrued expenses: | ||
Trade and other accrued liabilities | 129,084 | 149,514 |
Interest payable | 7,869 | 2,699 |
Production taxes | 53,437 | 45,747 |
Workers' compensation | 656 | 671 |
Postretirement medical benefits | 13,263 | 13,263 |
SERP | 368 | 368 |
Deferred revenue | 13,170 | 13,175 |
Asset retirement obligations | 47,462 | 43,289 |
Other current liabilities | 25,895 | 52,459 |
Total current liabilities | 330,083 | 373,897 |
Long-term debt, less current installments | 1,014,075 | 932,075 |
Workers' compensation, less current portion | 6,081 | 6,315 |
Excess of black lung benefit obligation over trust assets | 11,919 | 11,252 |
Postretirement medical benefits, less current portion | 293,268 | 293,156 |
Pension and SERP obligations, less current portion | 44,256 | 49,779 |
Deferred revenue, less current portion | 27,425 | 35,255 |
Asset retirement obligations, less current portion | 402,145 | 409,456 |
Intangible liabilities, net of accumulated amortization of $14.3 million and $13.5 million at September 30, 2015 and December 31, 2014, respectively | 3,737 | 4,538 |
Deferred income taxes | 47,435 | 34,852 |
Other liabilities | 37,014 | 28,448 |
Total liabilities | 2,217,438 | 2,179,023 |
Shareholders' deficit: | ||
Preferred stock of $1.00 par value Authorized 5,000,000 shares; issued and outstanding nil shares at September 30, 2015 and 91,669 at December 31, 2014 | 0 | 92 |
Common stock of $0.01 par value as of September 30, 2015 and $2.50 par value as of December 31, 2014, Authorized 30,000,000 shares; Issued and outstanding 18,021,061 shares at September 30, 2015 and 17,102,777 shares at December 31, 2014 | 180 | 42,756 |
Other paid-in capital | 238,705 | 185,644 |
Accumulated other comprehensive loss | (165,811) | (124,296) |
Accumulated deficit | (563,804) | (468,902) |
Total Westmoreland Coal Company shareholders’ deficit | (490,730) | (364,706) |
Noncontrolling interest | 1,514 | 15,261 |
Total deficit | (489,216) | (349,445) |
Total Liabilities and Shareholders' Deficit | $ 1,728,222 | $ 1,829,578 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Intangible assets, accumulated amortization | $ 16.9 | $ 15.3 |
Intangible liabilities, accumulated amortization | $ 14.3 | $ 13.5 |
Preferred stock, par value (in USD per share) | $ 1 | $ 1 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 91,669 |
Preferred stock, shares outstanding | 0 | 91,669 |
Common stock, par value (in USD per share) | $ 0.01 | $ 2.50 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 18,021,061 | 17,102,777 |
Common stock, shares outstanding | 18,021,061 | 17,102,777 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Revenues | $ 349,796 | $ 337,830 | $ 1,070,240 | $ 805,989 |
Costs, expenses and other: | ||||
Cost of sales | 292,973 | 285,524 | 880,162 | 670,467 |
Depreciation, depletion and amortization | 34,459 | 28,175 | 106,781 | 68,713 |
Selling and administrative | 29,383 | 24,434 | 84,611 | 68,551 |
Heritage health benefit expenses | 2,801 | 3,315 | 8,022 | 10,246 |
Loss on sale/disposal of assets | 1,135 | 119 | 2,148 | 114 |
Restructuring charges | 0 | 3,265 | 656 | 11,207 |
Derivative loss | 5,815 | 23,691 | 6,717 | 29,621 |
Income from equity affiliates | (463) | (1,261) | (4,141) | (2,060) |
Other operating loss (income) | (1,000) | 0 | (1,000) | 151 |
Total costs, expenses and other | 365,103 | 367,262 | 1,083,956 | 857,010 |
Operating loss | (15,307) | (29,432) | (13,716) | (51,021) |
Other income (expense): | ||||
Interest expense | (26,831) | (21,251) | (76,870) | (63,835) |
Loss on extinguishment of debt | (5,385) | (13) | (5,385) | (12,648) |
Interest income | 1,555 | 2,468 | 6,262 | 4,351 |
Gain (loss) on foreign exchange | 1,679 | (1,742) | 2,474 | (5,883) |
Other income | 356 | 118 | 1,082 | 697 |
Total other income (expense) | (28,626) | (20,420) | (72,437) | (77,318) |
Loss before income taxes | (43,933) | (49,852) | (86,153) | (128,339) |
Income tax expense (benefit) | 4,087 | (718) | 13,596 | 2,979 |
Net loss | (48,020) | (49,134) | (99,749) | (131,318) |
Less net loss attributable to noncontrolling interest | (1,458) | 0 | (4,850) | 0 |
Net loss attributable to Westmoreland Coal Company | (46,562) | (49,134) | (94,899) | (131,318) |
Less preferred stock dividend requirements | 0 | 195 | 0 | 664 |
Net loss applicable to common shareholders | $ (46,562) | $ (49,329) | $ (94,899) | $ (131,982) |
Net loss per share applicable to common shareholders: | ||||
Basic and diluted (in dollars per share) | $ (2.59) | $ (2.95) | $ (5.32) | $ (8.49) |
Weighted average number of common shares outstanding: | ||||
Basic and diluted (shares) | 17,986 | 16,729 | 17,846 | 15,554 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (48,020) | $ (49,134) | $ (99,749) | $ (131,318) |
Other comprehensive income (loss): | ||||
Amortization of accumulated actuarial gains or losses, pension | 996 | 361 | 3,263 | 1,078 |
Adjustments to accumulated actuarial losses and transition obligations, pension | (253) | (371) | (538) | (172) |
Amortization of accumulated actuarial gains or losses, transition obligations, and prior service costs, postretirement medical benefit | 327 | 3 | 981 | 13 |
Tax effect of other comprehensive income gains | (558) | (487) | (908) | (711) |
Change in foreign currency translation adjustment | (20,802) | (14,642) | (43,018) | (5,364) |
Unrealized and realized gains and losses on available-for-sale securities | 165 | 1,231 | (1,295) | 1,231 |
Other comprehensive loss | (20,125) | (13,905) | (41,515) | (3,925) |
Comprehensive loss attributable to the Parent company | $ (68,145) | $ (63,039) | $ (141,264) | $ (135,243) |
Consolidated Statements of Defi
Consolidated Statements of Deficit (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | $ (349,445) | |
Preferred dividends declared | (3) | |
WMLP distributions | (535) | |
Common stock issued as compensation | 5,588 | |
Conversion of convertible notes and securities | (319) | |
Issuance of restricted stock | (3,238) | |
Net loss | $ (48,020) | (99,749) |
Other comprehensive loss | (20,125) | (41,515) |
Ending balance | (489,216) | (489,216) |
Preferred Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | $ 92 | |
Beginning balance, shares | 91,669 | |
Conversion of convertible notes and securities | $ (92) | |
Conversion of convertible notes and securities (shares) | (91,669) | |
Ending balance | $ 0 | $ 0 |
Ending balance, shares | 0 | 0 |
Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | $ 42,756 | |
Beginning balance, shares | 17,102,777 | |
Common stock issued as compensation | $ 97 | |
Common stock options exercised, shares | 128,480 | |
Conversion of convertible notes and securities | $ 1,511 | |
Conversion of convertible notes and securities (shares) | 604,557 | |
Issuance of restricted stock | $ 406 | |
Issuance of restricted stock, shares | 185,247 | |
Change in par value of common stock from $2.50 to $0.01 | $ (44,590) | |
Ending balance | $ 180 | $ 180 |
Ending balance, shares | 18,021,061 | 18,021,061 |
Other Paid-in Capital | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | $ 185,644 | |
Common stock issued as compensation | 5,491 | |
Conversion of convertible notes and securities | (1,738) | |
Issuance of restricted stock | (3,644) | |
Change in WMLP Ownership Percentage | 8,362 | |
Change in par value of common stock from $2.50 to $0.01 | 44,590 | |
Ending balance | $ 238,705 | 238,705 |
Accumulated Other Comprehensive Loss | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (124,296) | |
Other comprehensive loss | (41,515) | |
Ending balance | (165,811) | (165,811) |
Accumulated Deficit | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (468,902) | |
Preferred dividends declared | (3) | |
Net loss | (94,899) | |
Ending balance | (563,804) | (563,804) |
Noncontrolling Interest | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 15,261 | |
WMLP distributions | (535) | |
Change in WMLP Ownership Percentage | 8,362 | (8,362) |
Net loss | (4,850) | |
Ending balance | $ 1,514 | $ 1,514 |
Consolidated Statements of Def7
Consolidated Statements of Deficit (Unaudited) Consolidated Statements of Deficit (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Stockholders' Equity [Abstract] | ||
Common stock, par value (in USD per share) | $ 0.01 | $ 2.50 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net loss | $ (99,749) | $ (131,318) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 106,781 | 68,713 |
Accretion of asset retirement obligation and receivable | 21,251 | 16,257 |
Share-based compensation | 5,588 | 3,456 |
Loss on sale/disposal of assets | 2,148 | 114 |
Non-cash interest expense | 4,617 | 0 |
Amortization of deferred financing costs | 7,849 | 2,365 |
Loss on extinguishment of debt | 4,445 | 12,648 |
Loss on derivatives | 6,717 | 29,621 |
Loss (gain) on foreign exchange | (2,474) | 5,883 |
Income from equity affiliates | (4,141) | (2,060) |
Distributions from equity affiliates | 4,328 | 2,948 |
Deferred income tax | 14,887 | 3,344 |
Other | (2,625) | 524 |
Changes in operating assets and liabilities: | ||
Receivables | (14,327) | (24,520) |
Inventories | 494 | 55,399 |
Accounts payable and accrued expenses | 4,826 | 6,377 |
Deferred revenue | (8,297) | (9,140) |
Accrual for workers' compensation | (1,240) | (178) |
Asset retirement obligation | (9,908) | (5,881) |
Other assets and liabilities | (20,288) | 3,659 |
Net cash provided by operating activities | 20,882 | 38,211 |
Cash flows from investing activities: | ||
Additions to property, plant and equipment | (57,971) | (35,646) |
Change in restricted investments and bond collateral and reclamation deposits | (22,392) | (41,795) |
Cash released from escrow for acquisition | 34,000 | 0 |
Cash payments related to acquisitions and other | (35,887) | (322,637) |
Cash acquired related to acquisitions | 2,780 | 8,103 |
Proceeds from sale of restricted investments | 14,404 | 7,279 |
Payments related to loan and lease receivables | (3,981) | (2,514) |
Receipts from loan and lease receivables | 20,192 | 5,057 |
Net proceeds from sales of assets and other | 1,404 | 37,538 |
Net cash used in investing activities | (47,451) | (344,615) |
Cash flows from financing activities: | ||
Change in book overdrafts | 950 | (317) |
Borrowings from long-term debt, net of debt discount | 199,363 | 454,219 |
Repayments of long-term debt | (138,185) | (110,792) |
Borrowings on revolving lines of credit | 142,823 | 15,000 |
Repayments of revolving lines of credit | (152,412) | (15,000) |
Debt issuance costs and other refinancing costs | (7,431) | (27,827) |
Proceeds from issuance of common shares | 0 | 56,473 |
Other | (860) | (247) |
Net cash provided by financing activities | 44,248 | 371,509 |
Effect of foreign exchange rates on cash | (2,601) | (2,525) |
Net increase in cash and cash equivalents | 15,078 | 62,580 |
Cash and cash equivalents, beginning of period | 14,258 | 61,110 |
Cash and cash equivalents, end of period | 29,336 | 123,690 |
Non-cash transactions: | ||
Accrued purchases of property and equipment | 2,718 | 9,555 |
Capital leases and other financing sources | $ 14,967 | $ 15,484 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements include accounts of Westmoreland Coal Company, or the Company, or Parent, and its subsidiaries and controlled entities. The Company’s principal activities are conducted in the United States and Canada. U.S. activities include the production and sale of coal from mines in Montana, Wyoming, North Dakota, Texas, and Ohio and the operation of the Roanoke Valley power plants, or ROVA, in North Carolina. Canadian activities include production and sale of coal from six surface mines in Alberta and Saskatchewan, selling char to the barbecue briquette industry, and a 50% interest in a joint venture which produces activated carbon. The Company’s activities are primarily conducted through wholly owned subsidiaries. See Item 1 - Business of the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 (the “ 2014 Form 10-K”) for additional information. All intercompany transactions and accounts have been eliminated in consolidation. The consolidated financial statements of the Company have been prepared in accordance with United States generally accepted accounting principles and require use of management’s estimates. The financial information contained in this Quarterly Report on Form 10-Q (this “Form 10-Q”) is unaudited, but reflects all adjustments, which are, in the opinion of management, necessary for a fair presentation of the financial information for the periods shown. Such adjustments are of a normal recurring nature. Certain prior amounts have been reclassified to conform to current period presentation. The results of operations for the nine months ended September 30, 2015 are not necessarily indicative of results to be expected for the year ending December 31, 2015 . These unaudited quarterly consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the 2014 Form 10-K. The accounting principles followed by the Company are set forth in the Notes to the Company’s consolidated financial statements in its 2014 Form 10-K. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers , issued as a new Topic, Accounting Standards Codification (ASC) Topic 606. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle of the guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2015-14, issued in August 2015, deferred the effective date of ASU 2014-09 to fiscal years beginning after December 15, 2017. The Company can either adopt these standards retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company is currently evaluating the effect that adopting this new accounting guidance will have on its consolidated results of operations, cash flows and financial position. In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs , which requires that debt issuance costs related to a recognized liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The new guidance should be applied on a retrospective basis. The new guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years, with early adoption permitted. Management projects the impact to the financial statements resulting in balance sheet reclassification for which the Deferred financing costs, net account is recharacterized as a contra-liability reducing the Long-term debt, less current installments balance for each of the respective periods upon adoption. In April 2015, the FASB issued ASU 2015-05, Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement , which provides guidance for determining whether a cloud computing arrangement (also referred to as a hosting arrangement) related to internal-use software has a software license element and provides guidance on the appropriate accounting treatment. The new guidance should be applied on a retrospective basis. The new guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the effect that adopting this new accounting guidance will have on its consolidated results of operations, cash flows and financial position. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330):Simplifying the Measurement of Inventory , which changes the requirement to measure inventory at the lower of cost or market for non last-in, first-out (LIFO) and non retail methods of measuring inventory, to requiring inventory measured at lower of cost or net realizable value. The new guidance is effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years, with early adoption permitted. The Company does not foresee a material effect on its consolidated results of operations, cash flows, and financial position. |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
ACQUISITION | ACQUISITIONS Acquisition of Buckingham Coal Company, LLC On January 1, 2015, Westmoreland completed the acquisition of Buckingham Coal Company, LLC, an Ohio-based coal supplier (“Buckingham”), pursuant to an agreement dated January 1, 2015 among WCC Land Holding Company, Inc., an affiliate of the Company, for an initial cash purchase price of $34.0 million , reduced by a working capital adjustment of $1.6 million (the “Buckingham Acquisition”). The Buckingham operations are included in the Company’s Coal - U.S. segment. The Buckingham Acquisition has been accounted for under the acquisition method of accounting that requires the total purchase consideration to be allocated to the assets acquired and liabilities assumed based on estimates of fair value. The allocation of the purchase price is preliminary pending the completion of various analyses and the finalization of estimates. During the measurement period (which is not to exceed one year from the acquisition date), additional assets or liabilities may be recognized if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in the recognition of those assets or liabilities as of that date. The preliminary allocation may be adjusted after obtaining additional information regarding, among other things, asset valuations, liabilities assumed and revisions of previous estimates, and these adjustments may be significant. A summary of the purchase consideration and a preliminary allocation of the purchase consideration follows (in millions): Provisional as of September 30, 2015 Purchase Price: Cash paid - Initial payment $ 34.0 Cash received - Working capital adjustment (1.6 ) Net cash consideration $ 32.4 Preliminary allocation of purchase price: Assets: Cash and cash equivalents $ 2.8 Inventories - materials and supplies 2.5 Other current assets 0.1 Total current assets 5.4 Land and mineral rights 13.2 Plant and equipment 24.6 Total Assets 43.2 Liabilities: Trade payables and other accrued liabilities (5.2 ) Asset retirement obligations (1.0 ) Total current liabilities (6.2 ) Asset retirement obligations, less current portion (2.8 ) Other liabilities (1.8 ) Total Liabilities (10.8 ) Net fair value $ 32.4 Acquisition of General Partner of Westmoreland Resource Partners, LP On December 31, 2014, the Company completed the acquisition of Westmoreland Resources GP, LLC (the “GP”), the general partner of Westmoreland Resource Partners, LP (“WMLP”), referred to as the “GP Acquisition.” Concurrent with the GP Acquisition, Westmoreland contributed certain royalty-bearing coal reserves to WMLP in return for WMLP common units (the “Contribution” and together with the GP Acquisition, the “WMLP Transactions”). Westmoreland paid $30.0 million in December 2014 and $3.5 million in January 2015 to acquire the GP; and received 4,512,500 common units of WMLP (on a post-split basis following a 12 -to-1 reverse split of WMLP’s common and general partner units) as consideration for the Contribution. In connection with the closing, WMLP’s name was changed to Westmoreland Resource Partners, LP from Oxford Resource Partners, LP and the name of the GP was changed to Westmoreland Resources GP, LLC from Oxford Resources GP, LLC. The common units of WMLP trade on the NYSE under the symbol “WMLP”. The GP Acquisition has been accounted for under the acquisition method of accounting that requires the total purchase consideration to be allocated to the assets acquired and liabilities assumed based on estimates of fair value. The allocation of the purchase price is preliminary pending the completion of various analyses and the finalization of estimates. During the measurement period (which is not to exceed one year from the acquisition date), additional assets or liabilities may be recognized if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in the recognition of those assets or liabilities as of that date. The preliminary allocation may be adjusted after obtaining additional information regarding, among other things, asset valuations, liabilities assumed and revisions of previous estimates, and these adjustments may be significant. A summary of the purchase consideration and a preliminary allocation of the purchase consideration follows (in millions): Provisional as of September 30, 2015 Purchase Price: Cash paid at closing $ 30.0 Contingent consideration 3.5 Fair value of outstanding WMLP units (1) 10.8 Total purchase consideration $ 44.3 Preliminary allocation of purchase price: Assets: Trade receivables and other $ 22.5 Inventories - materials and supplies 7.4 Inventories - coal 6.6 Other current assets 1.3 Total current assets 37.8 Land and mineral rights 39.5 Plant and equipment 134.0 Advanced coal royalties 9.2 Restricted investments and bond collateral 10.6 Intangible assets 31.0 Other assets 0.2 Total Assets 262.3 Liabilities: Trade payables and other accrued liabilities (19.1 ) Asset retirement obligations (7.8 ) Other current liabilities (4.0 ) Total current liabilities (30.9 ) Long-term debt, less current installments (160.1 ) Asset retirement obligations, less current portion (23.9 ) Warrants (2.0 ) Other liabilities (1.1 ) Total Liabilities (218.0 ) Net Assets 44.3 Non-controlling Interest (10.8 ) Invested Equity $ 33.5 (1) Represents the market price of WMLP units outstanding using the December 31, 2014 closing price. No goodwill was recorded in the GP Acquisition and $31.0 million of intangible assets to be amortized over a fifteen -year period were identified. The intangible asset identified in the GP Acquisition is a terminal lease at a dock in Ohio which was fair valued based on contract prices which were favorable to market prices. Canadian Acquisition On April 28, 2014, Westmoreland Coal Company acquired Prairie Mines & Royalty ULC (“PMRU”) and Coal Valley Resources Inc. (“CVRI”), collectively referred to as the “Canadian Subsidiaries.” The operations of the Canadian Subsidiaries (the “Canadian Operations”) include six producing thermal coal mines in the Canadian provinces of Alberta and Saskatchewan, a char production facility, and a 50% interest in an activated carbon plant. The purchase consideration included a $282.8 million initial cash payment made on April 28, 2014, a cash payment for a working capital adjustment of $39.8 million made on June 25, 2014, and assumed liabilities of $421.3 million . Acquisition related costs of $33.1 million were expensed for the nine months ended September 30, 2014; which included a $14.2 million charge to Cost of sales related to the sale of inventory written up to fair value in the acquisition, $7.8 million of expenses included in Selling and administrative costs, $6.2 million of loss on foreign exchange as described in Note 11, and $4.9 million included in Interest expense related to a bridge facility commitment fee. The Canadian Acquisition has been accounted for under the acquisition method of accounting that requires the total purchase consideration to be allocated to the assets acquired and liabilities assumed based on estimates of fair value. The Company finalized the purchase price allocation for the Canadian Acquisition as of December 31, 2014. No goodwill was recorded in the acquisition and $37.0 million of intangible assets were identified in the acquisition. A summary of the purchase consideration and allocation of the purchase consideration follows (in millions): Final as of December 31, 2014 Purchase Price: Cash paid - Initial payment $ 282.8 Cash paid - Working capital adjustment 39.8 Total cash consideration $ 322.6 Allocation of purchase price: Assets: Cash and cash equivalents $ 26.2 Receivables 78.1 Inventories - materials and supplies 52.0 Inventories - coal 79.8 Loan and lease receivables 11.2 Deferred tax assets 8.2 Other current assets 3.4 Total current assets 258.9 Land and mineral rights 202.6 Plant and equipment 114.8 Loan and lease receivables 79.1 Contractual third-party reclamation receivables, less current portion 6.8 Investment in joint venture 36.0 Intangible assets 37.0 Other assets 8.7 Total Assets 743.9 Liabilities: Current installments of long-term debt (36.3 ) Trade payables and other accrued liabilities (136.1 ) Asset retirement obligations (7.8 ) Total current liabilities (180.2 ) Long-term debt, less current installments (86.3 ) Asset retirement obligations, less current portion (122.9 ) Deferred tax liabilities (31.9 ) Total Liabilities (421.3 ) Net fair value $ 322.6 The Company became responsible for remediation work for a breach on a containment pond at a currently inactive mine that occurred on October 31, 2013. The prior owner, Sherritt International Corporation, has indemnified Westmoreland against past and future liability stemming from the incident. Accordingly, an indemnification asset of $27.9 million and a corresponding liability was recorded at April 28, 2014. Unaudited Pro Forma Information The following unaudited pro forma information has been prepared for illustrative purposes only and assumes the acquisitions occurred on January 1, 2013, in the case of the Canadian Acquisition and the WMLP Transactions, and on January 1, 2014, in the case of the Buckingham Acquisition. The unaudited pro forma results have been prepared based on estimates and assumptions, which the Company believes are reasonable, however, they are not necessarily indicative of the consolidated results of operations had the acquisitions occurred on the dates indicated above, or of future results of operations. (In thousands, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2014 2014 Total Revenues As reported $ 337,830 $ 805,989 Pro forma (unaudited) $ 465,094 $ 1,366,820 Operating Income As reported $ (29,432 ) $ (51,021 ) Pro forma (unaudited) $ (7,339 ) $ (14,678 ) Net loss applicable to common shareholders As reported $ (49,329 ) $ (131,982 ) Pro forma (unaudited) $ (31,034 ) $ (95,373 ) Net loss per share applicable to common shareholders As reported $ (2.95 ) $ (8.49 ) Pro forma (unaudited) $ (1.86 ) $ (6.13 ) |
KEMMERER DROP
KEMMERER DROP | 9 Months Ended |
Sep. 30, 2015 | |
Noncontrolling Interest [Abstract] | |
KEMMERER DROP | KEMMERER DROP On August 1, 2015, we contributed 100% of the outstanding equity interests in Westmoreland Kemmerer, LLC (“Kemmerer”) to WMLP, a controlled and consolidated subsidiary, in exchange for $230 million in aggregate consideration, composed of $115 million of cash and $115 million in newly issued WMLP Series A Convertible Units (the "Series A Units" and such transaction, the “Kemmerer Drop”). In connection with the Kemmerer Drop, all employees of Kemmerer and related employee liabilities, including but not limited to post-retirement pension obligations and post-retirement health benefits, were transferred to us. The Series A Units are convertible into common units representing limited partner interests of WMLP (“Common Units”), on a one -for-one basis, upon the earlier of (i) the date on which WMLP first makes a regular quarterly cash distribution to holders of Common Units in an amount equal to at least $0.22 per Common Unit, or (ii) a change of control of WMLP. Following the Kemmerer Drop, we hold an approximately 93.8% controlling interest in WMLP (on a fully diluted basis). The Kemmerer Drop represents a reorganization of entities under common control. Accordingly, the net assets transferred are deemed to have transferred at the $99.6 million carrying value as of the date of transfer. No gain or loss was recognized. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consisted of the following: September 30, 2015 December 31, 2014 (In thousands) Coal stockpiles $ 37,313 $ 41,795 Coal fuel inventories 8,769 6,531 Materials and supplies 81,032 88,584 Reserve for obsolete inventory (2,676 ) (3,055 ) Total $ 124,438 $ 133,855 |
RESTRICTED INVESTMENTS AND BOND
RESTRICTED INVESTMENTS AND BOND COLLATERAL | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure Restricted Investments and Bond Collateral [Abstract] | |
RESTRICTED INVESTMENTS AND BOND COLLATERAL | RESTRICTED INVESTMENTS AND BOND COLLATERAL The Company’s restricted investments and bond collateral consist of the following: September 30, 2015 December 31, 2014 (In thousands) Coal - U.S. Segment: Reclamation bond collateral: Absaloka Mine $ 11,807 $ 11,781 Rosebud Mine 3,145 3,145 Beulah Mine 1,270 1,270 Buckingham acquisition escrow — 34,000 Coal - Canada Segment: Reclamation bond collateral - PMRU 18,220 18,199 Reclamation bond collateral - CVRI 33,870 31,866 Coal - WMLP Segment: Reclamation bond collateral - Ohio 8,255 10,634 Reclamation bond collateral - Kemmerer Mine 27,655 25,282 Power Segment: Power contract collateral 17,700 12,600 Corporate Segment: Postretirement medical benefit bonds 8,891 8,780 Workers’ compensation bonds 6,859 6,832 Total restricted investments and bond collateral $ 137,672 $ 164,389 The Company invests its restricted investments and bond collateral accounts in a limited selection of fixed-income investment options and receives the investment returns on these investments. Funds in the restricted investments and bond collateral accounts are not available to meet the Company’s general cash needs. These accounts include available-for-sale securities. Available-for-sale securities are reported at fair value with unrealized gains and losses excluded from earnings and reported in Accumulated other comprehensive loss . The Company’s carrying value and estimated fair value of its restricted investments and bond collateral at September 30, 2015 were as follows: Carrying Value Fair Value Fair Value Hierarchy (In thousands) Cash and cash equivalents $ 100,363 $ 100,363 Level 1 Time deposits 2,455 2,455 Level 1 Available-for-sale 34,854 34,854 Level 1 $ 137,672 $ 137,672 Available-for-Sale Restricted Investments and Bond Collateral The cost basis, gross unrealized holding gains and losses, and fair value of available-for-sale securities at September 30, 2015 were as follows (in thousands): Cost basis $ 35,475 Gross unrealized holding gains 206 Gross unrealized holding losses (827 ) Fair value $ 34,854 Maturities of available-for-sale securities were as follows at September 30, 2015 : Cost Basis Fair Value (In thousands) Due within one year $ 1,258 $ 1,189 Due in five years or less 15,015 14,640 Due after five years to ten years 4,356 4,110 Due in more than ten years 14,846 14,915 $ 35,475 $ 34,854 |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES In 2013, the Company entered into an agreement with Virginia Electric Power Company, to restructure the remaining five years of the ROVA contract (the "ROVA Restructuring Plan"). Total restructuring charges related to the ROVA Restructuring Plan were $5.5 million and all were recorded to the restructuring expense line item within our consolidated statements of operations as they were incurred. Restructuring expenses related to the ROVA Restructuring Plan impacted our Power Segment and all actions related to this restructuring plan have been completed. During 2014, the Company initiated strategic changes related to the Canadian Acquisition and the GP Acquisition (collectively, the "Acquisition Restructuring Plans"). Total expected restructuring charges related to the Acquisition Restructuring Plans of $15.2 million have been recorded to the restructuring expense line item within our consolidated statements of operations as they were incurred. Charges related to the Acquisition Restructuring Plans were comprised of one-time employee termination benefits and impacted all segments except for our Power Segment. The restructuring actions were completed in 2014 for the Canadian Acquisition and are expected to be completed in 2015 for the GP Acquisition. The table below represents the restructuring provision activity related to the restructuring plans: ROVA Restructuring Plan Acquisition Restructuring Plans Total (In millions) Balance, December 31, 2013 $ 5.1 $ — $ 5.1 Restructuring Charges 0.5 14.5 15.0 Cash Payments (5.2 ) (5.7 ) (10.9 ) Balance, December 31, 2014 0.4 8.8 9.2 Restructuring Charges — 0.7 0.7 Cash Payments (0.4 ) (8.1 ) (8.5 ) Balance, September 30, 2015 $ — $ 1.4 $ 1.4 |
LINES OF CREDIT AND DEBT
LINES OF CREDIT AND DEBT | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
LINES OF CREDIT AND LONG-TERM DEBT | LINES OF CREDIT AND DEBT As of September 30, 2015 , the Company and its subsidiaries are subject to the following debt arrangements: Total Debt Outstanding September 30, 2015 December 31, 2014 (In thousands) 8.75% Notes due 2022 $ 350,000 $ 350,000 WCC Term Loan Facility due 2020 327,994 350,000 WMLP Term Loan Facility due 2018 297,414 175,000 Capital lease obligations 81,077 109,351 Revolving line of credit — 9,576 Other 7,988 4,062 Debt discount (11,519 ) (13,202 ) Total debt outstanding 1,052,954 984,787 Less current installments (38,879 ) (52,712 ) Total debt outstanding, less current installments $ 1,014,075 $ 932,075 The following table presents aggregate contractual debt maturities of all debt: As of September 30, 2015 (In thousands) 2015 $ 11,594 2016 39,451 2017 31,213 2018 308,458 2019 8,450 Thereafter 665,307 Total 1,064,473 Less: debt discount (11,519 ) Total debt $ 1,052,954 8.75% Notes due 2022 (the "8.75% Notes") The 8.75% Notes were issued by the Parent and are guaranteed by Westmoreland Energy LLC, Westmoreland Mining LLC and Westmoreland Resources, Inc. and their respective subsidiaries (other than Absaloka Coal, LLC, Westmoreland Risk Management, Inc. and certain other immaterial subsidiaries). The 8.75% Notes are not guaranteed by Westmoreland Canada LLC or any of its subsidiaries, nor are they guaranteed by Westmoreland Resources GP, LLC or Westmoreland Resource Partners, LP, referred to as the "Non-guarantors." WCC Term Loan Facility due 2020 (the "WCC Term Loan Facility") The WCC Term Loan Facility is a primary obligation of the Parent and is guaranteed by Westmoreland Energy LLC, Westmoreland Mining LLC, Westmoreland Resources, Inc. and certain other direct and indirect subsidiaries of the Company (other than Absaloka Coal, LLC, Westmoreland Risk Management, Inc., certain other immaterial subsidiaries, and the Non-guarantors). On January 22, 2015, the Company amended the WCC Term Loan Facility to increase the borrowings by $75.0 million , for an aggregate principal amount of $425.0 million as of that date (the "Term Loan Facility Add-on"). The amendments to the WCC Term Loan Facility were made in connection with the Buckingham Acquisition and for working capital purposes. Net proceeds were $71.0 million after a 2.5% discount, 1.5% broker fee, a consent fee of 1.17% , and $0.1 million of additional debt issuance costs. In conjunction with the Kemmerer Drop, the Company amended the WCC Term Loan Facility to remove Kemmerer as a guarantor. In addition, $94.1 million of the proceeds received from WMLP related to the Kemmerer Drop were used to pay down the WCC Term Loan Facility. WMLP Term Loan Facility due 2018 (the "WMLP Term Loan Facility") The WMLP Term Loan Facility is a primary obligation of Oxford Mining Company, LLC, a wholly owned subsidiary of WMLP, is guaranteed by WMLP and its subsidiaries, and is secured by substantially all of WMLP's and its subsidiaries' assets. Revolving Line of Credit (the "Revolving Credit Facility") Pursuant to a June 2, 2015 amendment to the Revolving Credit Facility, Westmoreland has a total aggregate borrowing capacity of $75.0 million between June 15th and August 15th of each year, with an aggregate borrowing capacity of $50.0 million outside of these periods. As of September 30, 2015 , the Company had no borrowings under the Revolving Credit Facility and had outstanding letters of credit in the amount of $21.1 million . During the nine months ended September 30, 2015 , the Company entered into $15.0 million of new capital leases. |
POSTRETIREMENT MEDICAL BENEFITS
POSTRETIREMENT MEDICAL BENEFITS AND PENSION | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
POSTRETIREMENT MEDICAL BENEFITS AND PENSION | POSTRETIREMENT MEDICAL BENEFITS AND PENSION Postretirement Medical Benefits The Company provides postretirement medical benefits to retired employees and their dependents as mandated by the Coal Industry Retiree Health Benefit Act of 1992 and pursuant to collective bargaining agreements. The Company also provides these benefits to qualified full-time employees pursuant to collective bargaining agreements. The components of net periodic postretirement medical benefit cost are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands) (In thousands) Components of net periodic benefit cost: Service cost $ 1,054 $ 822 $ 3,163 $ 2,467 Interest cost 2,907 3,203 8,722 9,610 Amortization of deferred items 327 4 981 13 Total net periodic benefit cost $ 4,288 $ 4,029 $ 12,866 $ 12,090 The following table shows the net periodic postretirement medical benefit costs that relate to current and former mining operations: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands) (In thousands) Former mining operations $ 2,034 $ 2,402 $ 6,103 $ 7,210 Current operations 2,254 1,627 6,763 4,880 Total net periodic benefit cost $ 4,288 $ 4,029 $ 12,866 $ 12,090 The costs for the former mining operations are included in Heritage health benefit expenses and costs for current operations are included in Cost of sales and Selling and administrative expenses. Pension The Company provides pension benefits to qualified full-time employees pursuant to collective bargaining agreements. The Company incurred net periodic benefit costs of providing these pension benefits as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands) (In thousands) Components of net periodic benefit cost: Service cost $ 436 $ 500 $ 1,318 $ 1,500 Interest cost 1,831 1,747 5,780 5,240 Expected return on plan assets (2,435 ) (2,154 ) (7,744 ) (6,461 ) Settlements (1,529 ) — (1,874 ) — Amortization of deferred items 1,059 359 3,301 1,078 Total net periodic pension cost $ (638 ) $ 452 $ 781 $ 1,357 These costs are included in Cost of sales and Selling and administrative expenses. The Company made $3.5 million of contributions to its pension plans in the nine months ended September 30, 2015 . The Company expects to make $0.3 million of contributions to its pension plans during the remainder of 2015 . |
HERITAGE HEALTH BENEFIT EXPENSE
HERITAGE HEALTH BENEFIT EXPENSES | 9 Months Ended |
Sep. 30, 2015 | |
Heritage Health Benefit Expenses [Abstract] | |
HERITAGE HEALTH BENEFIT EXPENSES | HERITAGE HEALTH BENEFIT EXPENSES The caption Heritage health benefit expenses used in the unaudited consolidated statements of operations refers to costs of benefits the Company provides to its former mining operation employees. The components of these expenses are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands) (In thousands) Health care benefits $ 2,041 $ 2,404 $ 6,138 $ 7,054 Combined benefit fund payments 462 342 1,387 1,366 Workers’ compensation benefits 102 120 324 380 Black lung benefits 196 449 173 1,446 Total $ 2,801 $ 3,315 $ 8,022 $ 10,246 |
ASSET RETIREMENT OBLIGATIONS, C
ASSET RETIREMENT OBLIGATIONS, CONTRACTUAL THIRD-PARTY RECLAMATION RECEIVABLES, AND RECLAMATION DEPOSITS | 9 Months Ended |
Sep. 30, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
ASSET RETIREMENT OBLIGATIONS, CONTRACTUAL THIRD-PARTY RECLAMATION RECEIVABLES, AND RECLAMATION DEPOSITS | ASSET RETIREMENT OBLIGATIONS , CONTRACTUAL THIRD-PARTY RECLAMATION RECEIVABLE AND RECLAMATION DEPOSITS The asset retirement obligation ("ARO"), contractual third-party reclamation receivable, and reclamation deposits for each of the Company’s operating segments at September 30, 2015 are summarized below: Asset Retirement Obligation Contractual Third-Party Reclamation Receivable Reclamation Deposits (In thousands) Coal - U.S. $ 279,864 $ 109,758 $ 77,425 Coal - Canada 116,061 5,638 — Coal - WMLP 52,666 — — Power 1,016 — — Total $ 449,607 $ 115,396 $ 77,425 Asset Retirement Obligations Changes in the Company’s asset retirement obligations were as follows: Nine Months Ended September 30, 2015 2014 (In thousands) Asset retirement obligations, beginning of year (including current portion) $ 452,745 $ 279,864 Accretion 29,265 23,329 Liabilities settled (23,421 ) (18,759 ) Changes due to amount and timing of reclamation 4,612 — Asset retirement obligations acquired 3,769 102,075 Changes due to foreign currency translation (17,363 ) (1,702 ) Asset retirement obligations, end of period 449,607 384,807 Less current portion (47,462 ) (29,529 ) Asset retirement obligations, less current portion $ 402,145 $ 355,278 Contractual Third-Party Reclamation Receivables At September 30, 2015 , the Company recognized an asset of $115.4 million as contractual third-party reclamation receivables, representing the present value of customer obligations to reimburse the Company for future reclamation expenditures. Reclamation Deposits The Company’s reclamation deposits will be used to fund final reclamation activities. The Company’s carrying value and estimated fair value of its reclamation deposits at September 30, 2015 were as follows: Carrying Value Fair Value Fair Value Hierarchy (In thousands) Cash and cash equivalents $ 46,544 $ 46,544 Level 1 Available-for-sale securities 30,881 30,881 Level 1 $ 77,425 $ 77,425 These accounts include available-for-sale securities. Available-for-sale securities are reported at fair value with unrealized gains and losses excluded from earnings and reported in Accumulated other comprehensive loss . Available-for-Sale Reclamation Deposits The cost basis, gross unrealized holding gains and losses, and fair value of available-for-sale securities at September 30, 2015 were as follows (in thousands): Cost basis $ 31,141 Gross unrealized holding gains 573 Gross unrealized holding losses (833 ) Fair value $ 30,881 Maturities of available-for-sale securities were as follows at September 30, 2015 : Cost Basis Fair Value (In thousands) Within one year $ — $ — Due in five years or less 16,804 16,601 Due after five years to ten years 5,424 5,262 Due in more than ten years 8,913 9,018 $ 31,141 $ 30,881 |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS The Company evaluates all of its financial instruments to determine if such instruments are derivatives, derivatives that qualify for the normal purchase normal sale exception, or contain features that qualify as embedded derivatives. All derivative financial instruments, except for derivatives that qualify for the normal purchase normal sale exception, are recognized on the balance sheet at fair value. Changes in fair value are recognized in earnings if they are not eligible for hedge accounting or in other comprehensive income if they qualify for cash flow hedge accounting. In the first quarter of 2014, the Company entered into two foreign currency exchange forward contracts to purchase Canadian Dollars to manage a portion of its exposure to fluctuating rates of exchange on anticipated Canadian Dollar-denominated Canadian Acquisition cash flows. These two foreign currency contracts had a total notional amount of $348.3 million and were settled in April 2014. During 2014, the Company entered into contracts to purchase power at its ROVA facility to manage exposure to power price fluctuations. These contracts cover the period from April 2014 to March 2019 and contracted power prices range from $41.05 to $56.33 per megawatt hour, with a weighted average contract price of $43.72 over the remaining contract lives. The fair value of these power price derivatives are based on comparing contracted prices to projected future prices. The fair value of outstanding derivative instruments not designated as hedging instruments on the accompanying unaudited Consolidated Balance Sheets was as follows (in thousands): Derivative Instruments Balance Sheet Location September 30, 2015 December 31, 2014 Contracts to purchase power Other current liabilities $ 10,138 $ 8,265 Contracts to purchase power Other liabilities 30,175 21,103 The effect of derivative instruments not designated as hedging instruments on the accompanying unaudited Consolidated Statements of Operations was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Derivative Instruments Statement of Operations Location 2015 2014 2015 2014 Canadian dollar foreign exchange forward contracts Gain (loss) on foreign exchange $ — $ — $ — $ (6,209 ) Contracts to purchase power Derivative loss (5,815 ) (23,691 ) (6,717 ) (29,621 ) |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. See Notes 5, 10 and 11 for additional disclosures related to fair value measurements. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy, as defined below, gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. • Level 1, defined as observable inputs such as quoted prices in active markets for identical assets. • Level 2, 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. • Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The table below sets forth, by level, the Company’s financial assets that are accounted for at fair value at September 30, 2015 : Level 1 (In thousands) Assets: Available-for-sale investments included in Restricted investments and bond collateral $ 34,854 Available-for-sale investments included in Reclamation deposits 30,881 Total assets $ 65,735 Long-term debt fair value estimates are based on observed prices for securities with an active trading market when available (Level 2) and otherwise using discount rate estimates based on interest rates (Level 3). As of September 30, 2015 , the Company had no long-term debt with Level 3 fair values. The estimated fair values of the Company’s debt with fixed and variable interest rates are as follows: Fixed Interest Rate Variable Interest Rate Carrying Value Fair Value Carrying Value Fair Value (In thousands) (In thousands) December 31, 2014 $ 345,498 $ 348,250 $ 341,300 $ 344,750 September 30, 2015 $ 345,860 $ 305,375 $ 320,615 $ 264,507 The Company uses derivative financial instruments, primarily foreign exchange contracts and forward contracts to purchase power, to reduce its exposure to market risks from changes in foreign exchange rates and changes in prices for power, respectively. The foreign exchange contracts are measured at fair value using quoted forward foreign exchange prices from counterparties corroborated by market-based pricing (Level 2). The contracts to purchase power are measured at fair value using forward pricing curves for power from counterparties corroborated by market-based pricing (Level 2). Additional information related to the Company’s derivative financial instruments is disclosed in Note 11 to the unaudited consolidated financial statements. The Company’s non-recurring fair value measurements include asset retirement obligations (refer to Note 10). The Company determines the estimated fair value of its asset retirement obligations by calculating the present value of estimated cash flows related to reclamation liabilities using Level 3 inputs. The significant inputs used to calculate such liabilities includes estimates of costs to be incurred, the Company’s credit adjusted discount rate, inflation rates and estimated dates of reclamation. The asset retirement liability is accreted to its present value each period and the capitalized asset retirement cost is depleted using the units-of-production method. The fair value of assets and liabilities acquired through business combinations is calculated using a discounted-cash flow approach using Level 3 inputs. Cash flow estimates require forecasts and assumptions for many years into the future for a variety of factors. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES For interim income tax reporting the Company estimates its annual effective tax rate and applies this effective tax rate to its year to date pre-tax (loss) income. For the nine months ended September 30, 2015 , the effective tax rate differed from the statutory rate primarily as a result of the U.S. and Canadian valuation allowances and the impact of the statutory rate change in Alberta, Canada. For the nine months ended September 30, 2014 , the effective tax rate differed from the statutory rate primarily due to the U.S. valuation allowance and foreign operations. |
SHAREHOLDERS' DEFICIT AND ACCUM
SHAREHOLDERS' DEFICIT AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
SHAREHOLDERS' DEFICIT AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | SHAREHOLDERS’ DEFICIT AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Noncontrolling Interest Following the WMLP Transactions, WMLP is a consolidated subsidiary and we recorded a noncontrolling interest totaling $15.3 million , which represents the equity attributable to the noncontrolling unitholders, who owned approximately 21% of the outstanding Common Unitsof WMLP at December 31, 2014. The Kemmerer Drop resulted in our acquisition of an additional 15% interest in WMLP (on a fully diluted basis) with a corresponding decrease in noncontrolling interest ownership. Accordingly, we recorded a decrease to noncontrolling interest of $8.4 million during the three months ended September 30, 2015. Activity in the noncontrolling interest is summarized as follows: (in millions) Beginning Balance as of December 31, 2014 $ 15,261 Change in Parent's ownership (8,362 ) Net loss allocated to noncontrolling interest (4,850 ) Distributions to noncontrolling interest (535 ) Ending Balance as of September 30, 2015 $ 1,514 Preferred Stock The Company paid less than $0.1 million of preferred stock dividends for the nine months ended September 30, 2015 . During the first quarter of 2015, all of the Company’s outstanding shares of preferred stock were converted or redeemed, consisting of 88,494 shares of preferred stock being converted into 604,557 shares of common stock and 3,175 shares of preferred stock being redeemed under a mandatory redemption for $0.3 million . At September 30, 2015 , there were no outstanding shares of preferred stock. Changes in Accumulated Other Comprehensive Income (Loss) The following table reflects the changes in accumulated other comprehensive income (loss) by component: Pension Postretirement Unrealized gains and losses on available-for-sale Foreign currency translation adjustment Tax effect of other comprehensive income gains Accumulated other comprehensive income (loss) (In thousands) Balance at December 31, 2014 $ (36,065 ) $ (39,716 ) $ 413 $ (17,880 ) $ (31,048 ) $ (124,296 ) Other comprehensive income (loss) before reclassifications (576 ) — (1,438 ) (43,018 ) (908 ) (45,940 ) Amounts reclassified from accumulated other comprehensive income (loss) 3,301 981 143 — — 4,425 Balance at September 30, 2015 $ (33,340 ) $ (38,735 ) $ (882 ) $ (60,898 ) $ (31,956 ) $ (165,811 ) The following table reflects the reclassifications out of accumulated other comprehensive loss for the three and nine months ended months ended September 30, 2015 (in thousands): Details about accumulated other comprehensive loss components Amount reclassified from accumulated other comprehensive loss (1) Affected line item in the statement where net loss is presented Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Available-for sale securities Realized gains and losses on available-for sale securities $ 19 $ 143 Other income (loss) Amortization of defined benefit pension items Prior service costs $ 2 $ 6 Actuarial losses 1,032 3,295 (2) Total $ 1,034 $ 3,301 Amortization of postretirement medical items Prior service costs $ (159 ) $ (477 ) (3) Actuarial losses 486 1,458 (3) Total $ 327 $ 981 ____________________ (1) Amounts in parentheses indicate amounts recognized as income. Amounts with no parenthesis were recognized as expenses or losses. (2) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. (See Note 8 - Pension for additional details) (3) These accumulated other comprehensive loss components are included in the computation of net periodic postretirement medical cost. (See Note 8 - Postretirement Medical Benefits for additional details) |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION The Company grants employees and non-employee directors restricted stock units. Non-employee directors receive equity awards with a value of $90,000 after each annual meeting. The Company recognized compensation expense from share-based arrangements shown in the following table: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands) Recognition of fair value of restricted stock units, stock options and SARs over vesting period; and issuance of stock $ 1,100 $ 334 $ 2,924 $ 2,450 Contributions of stock to the Company’s 401(k) plan 842 677 2,664 1,006 Total share-based compensation expense $ 1,942 $ 1,011 $ 5,588 $ 3,456 Restricted Stock Units A summary of restricted stock award activity for the nine months ended September 30, 2015 is as follows: Units Weighted Average Grant-Date Fair Value Unamortized Compensation Expense (In thousands) Non-vested at December 31, 2014 409,362 $ 13.87 Granted 262,555 28.26 Vested (247,528 ) 10.53 Forfeited (60,241 ) 10.57 Non-vested at September 30, 2015 364,148 $ 28.57 $ 8,053 (1) ____________________ (1) Expected to be recognized over the next three years . Stock Options A summary of stock option activity for the nine months ended September 30, 2015 is as follows: Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (In years) Aggregate Intrinsic Value (In thousands) Unamortized Compensation Expense (In thousands) Outstanding at December 31, 2014 110,806 $ 22.15 Exercised — — Expired (1,500 ) 21.40 Outstanding and exercisable at September 30, 2015 109,306 $ 22.16 2.4 $ — $ — There were no stock options granted during the nine months ended September 30, 2015 . SARs A summary of SARs activity for the nine months ended September 30, 2015 is as follows: SARs Weighted Average Exercise Price Weighted Average Remaining Contractual Life (In years) Aggregate Intrinsic Value (In thousands) Unamortized Compensation Expense (In thousands) Outstanding at December 31, 2014 16,943 $ 25.44 Exercised — — Expired — — Outstanding and exercisable at September 30, 2015 16,943 $ 25.44 0.6 $ — $ — There were no SARs granted during the nine months ended September 30, 2015 . |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings (loss) per share has been computed by dividing the net income (loss) applicable to common shareholders by the weighted average number of shares of common stock outstanding during each period. Net income (loss) applicable to common shareholders includes the adjustment for net income or loss attributable to noncontrolling interest. Diluted earnings (loss) per share is computed by including the dilutive effect of common stock that would be issued assuming conversion or exercise of outstanding convertible notes and securities, stock options, stock appreciation rights, and restricted stock units. No such items were included in the computations of diluted loss per share in the three and nine months ended September 30, 2015 and 2014 because the Company incurred a net loss applicable to common shareholders in these periods and the effect of inclusion would have been anti-dilutive. The table below shows the number of shares that were excluded from the calculation of diluted loss per share because their inclusion would be anti-dilutive to the calculation: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands) Convertible securities — 626 — 626 Restricted stock units, stock options and SARs 490 568 490 568 Total shares excluded from diluted shares calculation 490 1,194 490 1,194 |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION Segment information is based on a management approach, which requires segmentation based upon the Company’s internal organization, reporting of revenue, and operating income. The Company’s operations are classified into six reporting segments: Coal - U.S., Coal - Canada, Coal - WMLP, Power, Heritage, and Corporate and Eliminations. During the third quarter of 2015, we completed the Kemmerer Drop into WMLP. Accordingly, to enable comparability, all segment disclosures have been restated to remove Kemmerer from the Coal-US segment and place it in the Coal - WMLP segment. Summarized financial information by segment is as follows: Coal - U.S. (1) Coal - Canada (2) Coal - WMLP (3)(4) Power Heritage Corporate and Eliminations Consolidated (In thousands) Three Months Ended September 30, 2015 Revenues $ 132,018 $ 107,752 $ 94,785 $ 22,017 $ — $ (6,776 ) $ 349,796 Restructuring charges — — — — — — — Depreciation, depletion, and amortization 9,524 7,023 15,471 2,470 — (29 ) 34,459 Operating income (loss) 482 4,009 (4,845 ) (7,976 ) (2,950 ) (4,027 ) (15,307 ) Total assets 557,643 547,368 440,004 172,182 16,152 (5,127 ) 1,728,222 Capital expenditures 7,047 7,485 4,691 198 — (4 ) 19,417 Three Months Ended September 30, 2014 Revenues $ 123,134 $ 151,340 $ 41,917 $ 21,439 $ — $ — $ 337,830 Restructuring charges 292 2,411 — (40 ) — 602 3,265 Depreciation, depletion, and amortization 9,464 11,862 4,307 2,504 — 38 28,175 Operating income (loss) (349 ) (1,453 ) 5,142 (26,413 ) (3,915 ) (2,444 ) (29,432 ) Total assets 477,946 607,565 187,346 163,528 15,996 126,127 1,578,508 Capital expenditures 7,981 5,280 4,860 164 — — 18,285 Nine Months Ended September 30, 2015 Revenues $ 419,505 $ 317,157 $ 300,908 $ 64,001 $ — $ (31,331 ) $ 1,070,240 Restructuring charges — — 656 — — — 656 Depreciation, depletion, and amortization 28,199 26,899 44,282 7,430 — (29 ) 106,781 Operating income (loss) 8,403 23,397 (6,151 ) (16,594 ) (8,699 ) (14,072 ) (13,716 ) Total assets 557,643 547,368 440,004 172,182 16,152 (5,127 ) 1,728,222 Capital expenditures 18,908 21,413 19,918 1,305 — (3,573 ) 57,971 Nine Months Ended September 30, 2014 Revenues $ 348,417 $ 267,387 $ 124,933 $ 65,252 $ — $ — $ 805,989 Restructuring charges 783 9,058 — 459 — 907 11,207 Depreciation, depletion, and amortization 28,029 20,533 12,523 7,512 — 116 68,713 Operating income (loss) (3,356 ) (14,162 ) 20,425 (34,147 ) (11,303 ) (8,478 ) (51,021 ) Total assets 477,946 607,565 187,346 163,528 15,996 126,127 1,578,508 Capital expenditures 17,898 12,775 4,529 419 — 25 35,646 ____________________ (1) The Buckingham Acquisition was completed on January 1, 2015. For the three and nine months ended September 30, 2015 , revenues for Buckingham were $15.9 million and $61.4 million and operating losses were $2.0 million and $3.4 million , respectively. (2) The Canadian Operations were acquired on April 28, 2014, therefore, information for the nine months ended September 30, 2014 includes approximately five months of operations. (3) The operations reported under the segment Coal - WMLP were acquired on December 31, 2014, therefore, there is no activity for the three and nine months ended September 30, 2014 . (4) The Coal - WMLP segment recorded revenues of $5.9 million and $24.6 million for intersegment revenues to the Coal - U.S. segment for the three and nine months ended September 30, 2015 . A reconciliation of segment income from operations to loss before income taxes follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands) Income (loss) from operations $ (15,307 ) $ (29,432 ) $ (13,716 ) $ (51,021 ) Loss on extinguishment of debt (5,385 ) (13 ) (5,385 ) (12,648 ) Interest expense (26,831 ) (21,251 ) (76,870 ) (63,835 ) Interest income 1,555 2,468 6,262 4,351 Gain (loss) on foreign exchange 1,679 (1,742 ) 2,474 (5,883 ) Other income 356 118 1,082 697 Loss before income taxes $ (43,933 ) $ (49,852 ) $ (86,153 ) $ (128,339 ) |
CONTINGENCIES
CONTINGENCIES | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES The Company is a party to routine claims and lawsuits with respect to various matters. The Company provides for costs related to contingencies when a loss is probable and the amount is reasonably estimable. After conferring with counsel, it is the opinion of management that the ultimate resolution of pending claims will not have a material adverse effect on the consolidated financial condition, results of operations, or liquidity of the Company. |
BASIS OF PRESENTATION Basis of
BASIS OF PRESENTATION Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Consolidation Policy | The consolidated financial statements of the Company have been prepared in accordance with United States generally accepted accounting principles and require use of management’s estimates. The financial information contained in this Quarterly Report on Form 10-Q (this “Form 10-Q”) is unaudited, but reflects all adjustments, which are, in the opinion of management, necessary for a fair presentation of the financial information for the periods shown. Such adjustments are of a normal recurring nature. Certain prior amounts have been reclassified to conform to current period presentation. The results of operations for the nine months ended September 30, 2015 are not necessarily indicative of results to be expected for the year ending December 31, 2015 . These unaudited quarterly consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the 2014 Form 10-K. The accounting principles followed by the Company are set forth in the Notes to the Company’s consolidated financial statements in its 2014 Form 10-K. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers , issued as a new Topic, Accounting Standards Codification (ASC) Topic 606. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle of the guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2015-14, issued in August 2015, deferred the effective date of ASU 2014-09 to fiscal years beginning after December 15, 2017. The Company can either adopt these standards retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company is currently evaluating the effect that adopting this new accounting guidance will have on its consolidated results of operations, cash flows and financial position. In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs , which requires that debt issuance costs related to a recognized liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The new guidance should be applied on a retrospective basis. The new guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years, with early adoption permitted. Management projects the impact to the financial statements resulting in balance sheet reclassification for which the Deferred financing costs, net account is recharacterized as a contra-liability reducing the Long-term debt, less current installments balance for each of the respective periods upon adoption. In April 2015, the FASB issued ASU 2015-05, Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement , which provides guidance for determining whether a cloud computing arrangement (also referred to as a hosting arrangement) related to internal-use software has a software license element and provides guidance on the appropriate accounting treatment. The new guidance should be applied on a retrospective basis. The new guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the effect that adopting this new accounting guidance will have on its consolidated results of operations, cash flows and financial position. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330):Simplifying the Measurement of Inventory , which changes the requirement to measure inventory at the lower of cost or market for non last-in, first-out (LIFO) and non retail methods of measuring inventory, to requiring inventory measured at lower of cost or net realizable value. The new guidance is effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years, with early adoption permitted. The Company does not foresee a material effect on its consolidated results of operations, cash flows, and financial position. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Business Acquisition [Line Items] | |
Summary of pro forma information | The following unaudited pro forma information has been prepared for illustrative purposes only and assumes the acquisitions occurred on January 1, 2013, in the case of the Canadian Acquisition and the WMLP Transactions, and on January 1, 2014, in the case of the Buckingham Acquisition. The unaudited pro forma results have been prepared based on estimates and assumptions, which the Company believes are reasonable, however, they are not necessarily indicative of the consolidated results of operations had the acquisitions occurred on the dates indicated above, or of future results of operations. (In thousands, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2014 2014 Total Revenues As reported $ 337,830 $ 805,989 Pro forma (unaudited) $ 465,094 $ 1,366,820 Operating Income As reported $ (29,432 ) $ (51,021 ) Pro forma (unaudited) $ (7,339 ) $ (14,678 ) Net loss applicable to common shareholders As reported $ (49,329 ) $ (131,982 ) Pro forma (unaudited) $ (31,034 ) $ (95,373 ) Net loss per share applicable to common shareholders As reported $ (2.95 ) $ (8.49 ) Pro forma (unaudited) $ (1.86 ) $ (6.13 ) |
Buckingham Coal Company, LLC | |
Business Acquisition [Line Items] | |
Summary of purchase consideration and allocation of purchase consideration | A summary of the purchase consideration and a preliminary allocation of the purchase consideration follows (in millions): Provisional as of September 30, 2015 Purchase Price: Cash paid - Initial payment $ 34.0 Cash received - Working capital adjustment (1.6 ) Net cash consideration $ 32.4 Preliminary allocation of purchase price: Assets: Cash and cash equivalents $ 2.8 Inventories - materials and supplies 2.5 Other current assets 0.1 Total current assets 5.4 Land and mineral rights 13.2 Plant and equipment 24.6 Total Assets 43.2 Liabilities: Trade payables and other accrued liabilities (5.2 ) Asset retirement obligations (1.0 ) Total current liabilities (6.2 ) Asset retirement obligations, less current portion (2.8 ) Other liabilities (1.8 ) Total Liabilities (10.8 ) Net fair value $ 32.4 |
Westmoreland Resources GP, LLC | |
Business Acquisition [Line Items] | |
Summary of purchase consideration and allocation of purchase consideration | A summary of the purchase consideration and a preliminary allocation of the purchase consideration follows (in millions): Provisional as of September 30, 2015 Purchase Price: Cash paid at closing $ 30.0 Contingent consideration 3.5 Fair value of outstanding WMLP units (1) 10.8 Total purchase consideration $ 44.3 Preliminary allocation of purchase price: Assets: Trade receivables and other $ 22.5 Inventories - materials and supplies 7.4 Inventories - coal 6.6 Other current assets 1.3 Total current assets 37.8 Land and mineral rights 39.5 Plant and equipment 134.0 Advanced coal royalties 9.2 Restricted investments and bond collateral 10.6 Intangible assets 31.0 Other assets 0.2 Total Assets 262.3 Liabilities: Trade payables and other accrued liabilities (19.1 ) Asset retirement obligations (7.8 ) Other current liabilities (4.0 ) Total current liabilities (30.9 ) Long-term debt, less current installments (160.1 ) Asset retirement obligations, less current portion (23.9 ) Warrants (2.0 ) Other liabilities (1.1 ) Total Liabilities (218.0 ) Net Assets 44.3 Non-controlling Interest (10.8 ) Invested Equity $ 33.5 (1) Represents the market price of WMLP units outstanding using the December 31, 2014 closing price. No go |
Canadian Subsidiaries | |
Business Acquisition [Line Items] | |
Summary of purchase consideration and allocation of purchase consideration | A summary of the purchase consideration and allocation of the purchase consideration follows (in millions): Final as of December 31, 2014 Purchase Price: Cash paid - Initial payment $ 282.8 Cash paid - Working capital adjustment 39.8 Total cash consideration $ 322.6 Allocation of purchase price: Assets: Cash and cash equivalents $ 26.2 Receivables 78.1 Inventories - materials and supplies 52.0 Inventories - coal 79.8 Loan and lease receivables 11.2 Deferred tax assets 8.2 Other current assets 3.4 Total current assets 258.9 Land and mineral rights 202.6 Plant and equipment 114.8 Loan and lease receivables 79.1 Contractual third-party reclamation receivables, less current portion 6.8 Investment in joint venture 36.0 Intangible assets 37.0 Other assets 8.7 Total Assets 743.9 Liabilities: Current installments of long-term debt (36.3 ) Trade payables and other accrued liabilities (136.1 ) Asset retirement obligations (7.8 ) Total current liabilities (180.2 ) Long-term debt, less current installments (86.3 ) Asset retirement obligations, less current portion (122.9 ) Deferred tax liabilities (31.9 ) Total Liabilities (421.3 ) Net fair value $ 322.6 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: September 30, 2015 December 31, 2014 (In thousands) Coal stockpiles $ 37,313 $ 41,795 Coal fuel inventories 8,769 6,531 Materials and supplies 81,032 88,584 Reserve for obsolete inventory (2,676 ) (3,055 ) Total $ 124,438 $ 133,855 |
RESTRICTED INVESTMENTS AND BO30
RESTRICTED INVESTMENTS AND BOND COLLATERAL (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |
Components of restricted investments and bond collateral | The Company’s restricted investments and bond collateral consist of the following: September 30, 2015 December 31, 2014 (In thousands) Coal - U.S. Segment: Reclamation bond collateral: Absaloka Mine $ 11,807 $ 11,781 Rosebud Mine 3,145 3,145 Beulah Mine 1,270 1,270 Buckingham acquisition escrow — 34,000 Coal - Canada Segment: Reclamation bond collateral - PMRU 18,220 18,199 Reclamation bond collateral - CVRI 33,870 31,866 Coal - WMLP Segment: Reclamation bond collateral - Ohio 8,255 10,634 Reclamation bond collateral - Kemmerer Mine 27,655 25,282 Power Segment: Power contract collateral 17,700 12,600 Corporate Segment: Postretirement medical benefit bonds 8,891 8,780 Workers’ compensation bonds 6,859 6,832 Total restricted investments and bond collateral $ 137,672 $ 164,389 |
Carrying value and estimated fair value of restricted investments and bond collateral | The Company’s carrying value and estimated fair value of its restricted investments and bond collateral at September 30, 2015 were as follows: Carrying Value Fair Value Fair Value Hierarchy (In thousands) Cash and cash equivalents $ 100,363 $ 100,363 Level 1 Time deposits 2,455 2,455 Level 1 Available-for-sale 34,854 34,854 Level 1 $ 137,672 $ 137,672 |
Amortized cost, gross unrealized holding gains and losses and fair value of available-for-sale securities | The cost basis, gross unrealized holding gains and losses, and fair value of available-for-sale securities at September 30, 2015 were as follows (in thousands): Cost basis $ 35,475 Gross unrealized holding gains 206 Gross unrealized holding losses (827 ) Fair value $ 34,854 |
Restricted Investments and Bond Collateral | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments Classified by Contractual Maturity Date | Maturities of available-for-sale securities were as follows at September 30, 2015 : Cost Basis Fair Value (In thousands) Due within one year $ 1,258 $ 1,189 Due in five years or less 15,015 14,640 Due after five years to ten years 4,356 4,110 Due in more than ten years 14,846 14,915 $ 35,475 $ 34,854 |
RESTRUCTURING CHARGES (Tables)
RESTRUCTURING CHARGES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The table below represents the restructuring provision activity related to the restructuring plans: ROVA Restructuring Plan Acquisition Restructuring Plans Total (In millions) Balance, December 31, 2013 $ 5.1 $ — $ 5.1 Restructuring Charges 0.5 14.5 15.0 Cash Payments (5.2 ) (5.7 ) (10.9 ) Balance, December 31, 2014 0.4 8.8 9.2 Restructuring Charges — 0.7 0.7 Cash Payments (0.4 ) (8.1 ) (8.5 ) Balance, September 30, 2015 $ — $ 1.4 $ 1.4 |
LINES OF CREDIT AND DEBT (Table
LINES OF CREDIT AND DEBT (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Outstanding lines of credit and long-term debt | Total Debt Outstanding September 30, 2015 December 31, 2014 (In thousands) 8.75% Notes due 2022 $ 350,000 $ 350,000 WCC Term Loan Facility due 2020 327,994 350,000 WMLP Term Loan Facility due 2018 297,414 175,000 Capital lease obligations 81,077 109,351 Revolving line of credit — 9,576 Other 7,988 4,062 Debt discount (11,519 ) (13,202 ) Total debt outstanding 1,052,954 984,787 Less current installments (38,879 ) (52,712 ) Total debt outstanding, less current installments $ 1,014,075 $ 932,075 |
Contractual maturities of all long-term debt | The following table presents aggregate contractual debt maturities of all debt: As of September 30, 2015 (In thousands) 2015 $ 11,594 2016 39,451 2017 31,213 2018 308,458 2019 8,450 Thereafter 665,307 Total 1,064,473 Less: debt discount (11,519 ) Total debt $ 1,052,954 |
POSTRETIREMENT MEDICAL BENEFI33
POSTRETIREMENT MEDICAL BENEFITS AND PENSION (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Postretirement Medical Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Components of net periodic benefit cost | The components of net periodic postretirement medical benefit cost are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands) (In thousands) Components of net periodic benefit cost: Service cost $ 1,054 $ 822 $ 3,163 $ 2,467 Interest cost 2,907 3,203 8,722 9,610 Amortization of deferred items 327 4 981 13 Total net periodic benefit cost $ 4,288 $ 4,029 $ 12,866 $ 12,090 The following table shows the net periodic postretirement medical benefit costs that relate to current and former mining operations: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands) (In thousands) Former mining operations $ 2,034 $ 2,402 $ 6,103 $ 7,210 Current operations 2,254 1,627 6,763 4,880 Total net periodic benefit cost $ 4,288 $ 4,029 $ 12,866 $ 12,090 |
Pension | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Components of net periodic benefit cost | The Company incurred net periodic benefit costs of providing these pension benefits as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands) (In thousands) Components of net periodic benefit cost: Service cost $ 436 $ 500 $ 1,318 $ 1,500 Interest cost 1,831 1,747 5,780 5,240 Expected return on plan assets (2,435 ) (2,154 ) (7,744 ) (6,461 ) Settlements (1,529 ) — (1,874 ) — Amortization of deferred items 1,059 359 3,301 1,078 Total net periodic pension cost $ (638 ) $ 452 $ 781 $ 1,357 |
HERITAGE HEALTH BENEFIT EXPEN34
HERITAGE HEALTH BENEFIT EXPENSES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Heritage Health Benefit Expenses [Abstract] | |
Components of costs of benefits to former mining operation employees | The components of these expenses are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands) (In thousands) Health care benefits $ 2,041 $ 2,404 $ 6,138 $ 7,054 Combined benefit fund payments 462 342 1,387 1,366 Workers’ compensation benefits 102 120 324 380 Black lung benefits 196 449 173 1,446 Total $ 2,801 $ 3,315 $ 8,022 $ 10,246 |
ASSET RETIREMENT OBLIGATIONS,35
ASSET RETIREMENT OBLIGATIONS, CONTRACTUAL THIRD-PARTY RECLAMATION RECEIVABLES, AND RECLAMATION DEPOSITS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |
Summary of asset retirement obligations, contractual third-party reclamation receivables and reclamation deposits | The asset retirement obligation ("ARO"), contractual third-party reclamation receivable, and reclamation deposits for each of the Company’s operating segments at September 30, 2015 are summarized below: Asset Retirement Obligation Contractual Third-Party Reclamation Receivable Reclamation Deposits (In thousands) Coal - U.S. $ 279,864 $ 109,758 $ 77,425 Coal - Canada 116,061 5,638 — Coal - WMLP 52,666 — — Power 1,016 — — Total $ 449,607 $ 115,396 $ 77,425 |
Changes in Company's asset retirement obligations | Changes in the Company’s asset retirement obligations were as follows: Nine Months Ended September 30, 2015 2014 (In thousands) Asset retirement obligations, beginning of year (including current portion) $ 452,745 $ 279,864 Accretion 29,265 23,329 Liabilities settled (23,421 ) (18,759 ) Changes due to amount and timing of reclamation 4,612 — Asset retirement obligations acquired 3,769 102,075 Changes due to foreign currency translation (17,363 ) (1,702 ) Asset retirement obligations, end of period 449,607 384,807 Less current portion (47,462 ) (29,529 ) Asset retirement obligations, less current portion $ 402,145 $ 355,278 |
Carrying value and estimated fair value of reclamation deposits | The Company’s carrying value and estimated fair value of its reclamation deposits at September 30, 2015 were as follows: Carrying Value Fair Value Fair Value Hierarchy (In thousands) Cash and cash equivalents $ 46,544 $ 46,544 Level 1 Available-for-sale securities 30,881 30,881 Level 1 $ 77,425 $ 77,425 |
Available for sale reclamation deposits | The cost basis, gross unrealized holding gains and losses, and fair value of available-for-sale securities at September 30, 2015 were as follows (in thousands): Cost basis $ 31,141 Gross unrealized holding gains 573 Gross unrealized holding losses (833 ) Fair value $ 30,881 |
Reclamation Deposits | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments Classified by Contractual Maturity Date | Maturities of available-for-sale securities were as follows at September 30, 2015 : Cost Basis Fair Value (In thousands) Within one year $ — $ — Due in five years or less 16,804 16,601 Due after five years to ten years 5,424 5,262 Due in more than ten years 8,913 9,018 $ 31,141 $ 30,881 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The fair value of outstanding derivative instruments not designated as hedging instruments on the accompanying unaudited Consolidated Balance Sheets was as follows (in thousands): Derivative Instruments Balance Sheet Location September 30, 2015 December 31, 2014 Contracts to purchase power Other current liabilities $ 10,138 $ 8,265 Contracts to purchase power Other liabilities 30,175 21,103 The effect of derivative instruments not designated as hedging instruments on the accompanying unaudited Consolidated Statements of Operations was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Derivative Instruments Statement of Operations Location 2015 2014 2015 2014 Canadian dollar foreign exchange forward contracts Gain (loss) on foreign exchange $ — $ — $ — $ (6,209 ) Contracts to purchase power Derivative loss (5,815 ) (23,691 ) (6,717 ) (29,621 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Summary of financial assets at fair value | The table below sets forth, by level, the Company’s financial assets that are accounted for at fair value at September 30, 2015 : Level 1 (In thousands) Assets: Available-for-sale investments included in Restricted investments and bond collateral $ 34,854 Available-for-sale investments included in Reclamation deposits 30,881 Total assets $ 65,735 |
Estimated fair values of Company's debt | The estimated fair values of the Company’s debt with fixed and variable interest rates are as follows: Fixed Interest Rate Variable Interest Rate Carrying Value Fair Value Carrying Value Fair Value (In thousands) (In thousands) December 31, 2014 $ 345,498 $ 348,250 $ 341,300 $ 344,750 September 30, 2015 $ 345,860 $ 305,375 $ 320,615 $ 264,507 |
SHAREHOLDERS' DEFICIT AND ACC38
SHAREHOLDERS' DEFICIT AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Schedule of Noncontrolling Interest Activity | Activity in the noncontrolling interest is summarized as follows: (in millions) Beginning Balance as of December 31, 2014 $ 15,261 Change in Parent's ownership (8,362 ) Net loss allocated to noncontrolling interest (4,850 ) Distributions to noncontrolling interest (535 ) Ending Balance as of September 30, 2015 $ 1,514 |
Changes in Accumulated Other Comprehensive Income by component | The following table reflects the changes in accumulated other comprehensive income (loss) by component: Pension Postretirement Unrealized gains and losses on available-for-sale Foreign currency translation adjustment Tax effect of other comprehensive income gains Accumulated other comprehensive income (loss) (In thousands) Balance at December 31, 2014 $ (36,065 ) $ (39,716 ) $ 413 $ (17,880 ) $ (31,048 ) $ (124,296 ) Other comprehensive income (loss) before reclassifications (576 ) — (1,438 ) (43,018 ) (908 ) (45,940 ) Amounts reclassified from accumulated other comprehensive income (loss) 3,301 981 143 — — 4,425 Balance at September 30, 2015 $ (33,340 ) $ (38,735 ) $ (882 ) $ (60,898 ) $ (31,956 ) $ (165,811 ) |
Reclassifications out of Accumulated Other Comprehensive Income for the period | The following table reflects the reclassifications out of accumulated other comprehensive loss for the three and nine months ended months ended September 30, 2015 (in thousands): Details about accumulated other comprehensive loss components Amount reclassified from accumulated other comprehensive loss (1) Affected line item in the statement where net loss is presented Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Available-for sale securities Realized gains and losses on available-for sale securities $ 19 $ 143 Other income (loss) Amortization of defined benefit pension items Prior service costs $ 2 $ 6 Actuarial losses 1,032 3,295 (2) Total $ 1,034 $ 3,301 Amortization of postretirement medical items Prior service costs $ (159 ) $ (477 ) (3) Actuarial losses 486 1,458 (3) Total $ 327 $ 981 ____________________ (1) Amounts in parentheses indicate amounts recognized as income. Amounts with no parenthesis were recognized as expenses or losses. (2) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. (See Note 8 - Pension for additional details) (3) These accumulated other comprehensive loss components are included in the computation of net periodic postretirement medical cost. (See Note 8 - Postretirement Medical Benefits for additional details) |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Compensation cost arising from share-based arrangements | The Company recognized compensation expense from share-based arrangements shown in the following table: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands) Recognition of fair value of restricted stock units, stock options and SARs over vesting period; and issuance of stock $ 1,100 $ 334 $ 2,924 $ 2,450 Contributions of stock to the Company’s 401(k) plan 842 677 2,664 1,006 Total share-based compensation expense $ 1,942 $ 1,011 $ 5,588 $ 3,456 |
Summary of Restricted Stock Unit activity | A summary of restricted stock award activity for the nine months ended September 30, 2015 is as follows: Units Weighted Average Grant-Date Fair Value Unamortized Compensation Expense (In thousands) Non-vested at December 31, 2014 409,362 $ 13.87 Granted 262,555 28.26 Vested (247,528 ) 10.53 Forfeited (60,241 ) 10.57 Non-vested at September 30, 2015 364,148 $ 28.57 $ 8,053 (1) ____________________ (1) Expected to be recognized over the next three years . |
Summary of Stock Option Activity | A summary of stock option activity for the nine months ended September 30, 2015 is as follows: Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (In years) Aggregate Intrinsic Value (In thousands) Unamortized Compensation Expense (In thousands) Outstanding at December 31, 2014 110,806 $ 22.15 Exercised — — Expired (1,500 ) 21.40 Outstanding and exercisable at September 30, 2015 109,306 $ 22.16 2.4 $ — $ — |
Summary of Stock Appreciation Rights | A summary of SARs activity for the nine months ended September 30, 2015 is as follows: SARs Weighted Average Exercise Price Weighted Average Remaining Contractual Life (In years) Aggregate Intrinsic Value (In thousands) Unamortized Compensation Expense (In thousands) Outstanding at December 31, 2014 16,943 $ 25.44 Exercised — — Expired — — Outstanding and exercisable at September 30, 2015 16,943 $ 25.44 0.6 $ — $ — |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | The table below shows the number of shares that were excluded from the calculation of diluted loss per share because their inclusion would be anti-dilutive to the calculation: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands) Convertible securities — 626 — 626 Restricted stock units, stock options and SARs 490 568 490 568 Total shares excluded from diluted shares calculation 490 1,194 490 1,194 |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Summarized financial information by segment | Summarized financial information by segment is as follows: Coal - U.S. (1) Coal - Canada (2) Coal - WMLP (3)(4) Power Heritage Corporate and Eliminations Consolidated (In thousands) Three Months Ended September 30, 2015 Revenues $ 132,018 $ 107,752 $ 94,785 $ 22,017 $ — $ (6,776 ) $ 349,796 Restructuring charges — — — — — — — Depreciation, depletion, and amortization 9,524 7,023 15,471 2,470 — (29 ) 34,459 Operating income (loss) 482 4,009 (4,845 ) (7,976 ) (2,950 ) (4,027 ) (15,307 ) Total assets 557,643 547,368 440,004 172,182 16,152 (5,127 ) 1,728,222 Capital expenditures 7,047 7,485 4,691 198 — (4 ) 19,417 Three Months Ended September 30, 2014 Revenues $ 123,134 $ 151,340 $ 41,917 $ 21,439 $ — $ — $ 337,830 Restructuring charges 292 2,411 — (40 ) — 602 3,265 Depreciation, depletion, and amortization 9,464 11,862 4,307 2,504 — 38 28,175 Operating income (loss) (349 ) (1,453 ) 5,142 (26,413 ) (3,915 ) (2,444 ) (29,432 ) Total assets 477,946 607,565 187,346 163,528 15,996 126,127 1,578,508 Capital expenditures 7,981 5,280 4,860 164 — — 18,285 Nine Months Ended September 30, 2015 Revenues $ 419,505 $ 317,157 $ 300,908 $ 64,001 $ — $ (31,331 ) $ 1,070,240 Restructuring charges — — 656 — — — 656 Depreciation, depletion, and amortization 28,199 26,899 44,282 7,430 — (29 ) 106,781 Operating income (loss) 8,403 23,397 (6,151 ) (16,594 ) (8,699 ) (14,072 ) (13,716 ) Total assets 557,643 547,368 440,004 172,182 16,152 (5,127 ) 1,728,222 Capital expenditures 18,908 21,413 19,918 1,305 — (3,573 ) 57,971 Nine Months Ended September 30, 2014 Revenues $ 348,417 $ 267,387 $ 124,933 $ 65,252 $ — $ — $ 805,989 Restructuring charges 783 9,058 — 459 — 907 11,207 Depreciation, depletion, and amortization 28,029 20,533 12,523 7,512 — 116 68,713 Operating income (loss) (3,356 ) (14,162 ) 20,425 (34,147 ) (11,303 ) (8,478 ) (51,021 ) Total assets 477,946 607,565 187,346 163,528 15,996 126,127 1,578,508 Capital expenditures 17,898 12,775 4,529 419 — 25 35,646 ____________________ (1) The Buckingham Acquisition was completed on January 1, 2015. For the three and nine months ended September 30, 2015 , revenues for Buckingham were $15.9 million and $61.4 million and operating losses were $2.0 million and $3.4 million , respectively. (2) The Canadian Operations were acquired on April 28, 2014, therefore, information for the nine months ended September 30, 2014 includes approximately five months of operations. (3) The operations reported under the segment Coal - WMLP were acquired on December 31, 2014, therefore, there is no activity for the three and nine months ended September 30, 2014 . (4) The Coal - WMLP segment recorded revenues of $5.9 million and $24.6 million for intersegment revenues to the Coal - U.S. segment for the three and nine months ended September 30, 2015 . |
Reconciliation of segment operating income to income (loss) | A reconciliation of segment income from operations to loss before income taxes follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands) Income (loss) from operations $ (15,307 ) $ (29,432 ) $ (13,716 ) $ (51,021 ) Loss on extinguishment of debt (5,385 ) (13 ) (5,385 ) (12,648 ) Interest expense (26,831 ) (21,251 ) (76,870 ) (63,835 ) Interest income 1,555 2,468 6,262 4,351 Gain (loss) on foreign exchange 1,679 (1,742 ) 2,474 (5,883 ) Other income 356 118 1,082 697 Loss before income taxes $ (43,933 ) $ (49,852 ) $ (86,153 ) $ (128,339 ) |
BASIS OF PRESENTATION - Busines
BASIS OF PRESENTATION - Business Operations (Details) - Canadian Acquisition | 9 Months Ended |
Sep. 30, 2015mines | |
Business Acquisition [Line Items] | |
Number of mines | 6 |
Corporate Joint Venture | |
Business Acquisition [Line Items] | |
Ownership percentage in joint venture (percent) | 50.00% |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) | Jan. 01, 2015USD ($) | Dec. 31, 2014USD ($)shares | Jun. 25, 2014USD ($) | Apr. 28, 2014USD ($)mines | Jan. 31, 2015USD ($) | Dec. 31, 2014USD ($)shares | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) |
Business Acquisition [Line Items] | ||||||||
Cash paid | $ 35,887,000 | $ 322,637,000 | ||||||
Buckingham Coal Company, LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash paid - Initial payment | $ 34,000,000 | |||||||
Cash received - working capital adjustment | 1,600,000 | |||||||
Cash paid | 32,400,000 | |||||||
Liabilities assumed | $ 10,800,000 | |||||||
Westmoreland Resource Partners LP | ||||||||
Business Acquisition [Line Items] | ||||||||
Units of partnership interest acquired (shares) | shares | 4,512,500 | 4,512,500 | ||||||
Partnership interest, reverse split, conversion ratio | 12 | |||||||
Westmoreland Resources GP, LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash paid | $ 30,000,000 | $ 3,500,000 | ||||||
Goodwill | 0 | $ 0 | ||||||
Intangible assets | $ 31,000,000 | 31,000,000 | ||||||
Finite-Lived Intangible Asset, Useful Life | 15 years | |||||||
Liabilities assumed | $ 218,000,000 | 218,000,000 | ||||||
Canadian Subsidiaries | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash paid - Initial payment | $ 282,800,000 | 282,800,000 | ||||||
Cash paid - working capital adjustment | $ 39,800,000 | 39,800,000 | ||||||
Cash paid | 322,600,000 | |||||||
Goodwill | 0 | 0 | ||||||
Intangible assets | 37,000,000 | 37,000,000 | ||||||
Number of mines | mines | 6 | |||||||
Voting interests acquired (percent) | 50.00% | |||||||
Liabilities assumed | $ 421,300,000 | $ 421,300,000 | $ 421,300,000 | |||||
Acquisition-related costs | 33,100,000 | |||||||
Indemnification asset | $ 27,900,000 | |||||||
Cost of Sales | Canadian Subsidiaries | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition-related costs | 14,200,000 | |||||||
Selling and Administrative Costs | Canadian Subsidiaries | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition-related costs | 7,800,000 | |||||||
Gain (Loss) on Foreign Exchange | Canadian Subsidiaries | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition-related costs | 6,200,000 | |||||||
Interest Expense | Canadian Subsidiaries | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition-related costs | $ 4,900,000 |
ACQUISITIONS - Summary of purch
ACQUISITIONS - Summary of purchase consideration and allocation of purchase consideration (Details) - USD ($) $ in Thousands | Jan. 01, 2015 | Dec. 31, 2014 | Jun. 25, 2014 | Apr. 28, 2014 | Jan. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Purchase Price: | |||||||||
Cash paid | $ 35,887 | $ 322,637 | |||||||
Buckingham Coal Company, LLC | |||||||||
Purchase Price: | |||||||||
Cash paid - Initial payment | $ 34,000 | ||||||||
Cash received - Working capital adjustment | (1,600) | ||||||||
Cash paid | 32,400 | ||||||||
Assets: | |||||||||
Cash and cash equivalents | 2,800 | ||||||||
Inventories - materials and supplies | 2,500 | ||||||||
Other current assets | 100 | ||||||||
Total current assets | 5,400 | ||||||||
Land and mineral rights | 13,200 | ||||||||
Plant and equipment | 24,600 | ||||||||
Total Assets | 43,200 | ||||||||
Liabilities: | |||||||||
Trade payables and other accrued liabilities | (5,200) | ||||||||
Asset retirement obligations | (1,000) | ||||||||
Total current liabilities | (6,200) | ||||||||
Asset retirement obligations, less current portion | (2,800) | ||||||||
Other liabilities | (1,800) | ||||||||
Total Liabilities | (10,800) | ||||||||
Net fair value | $ 32,400 | ||||||||
Westmoreland Resources GP, LLC | |||||||||
Purchase Price: | |||||||||
Cash paid | $ 30,000 | $ 3,500 | |||||||
Contingent consideration | 3,500 | $ 3,500 | |||||||
Fair value of outstanding WMLP units | [1] | 10,800 | 10,800 | ||||||
Total purchase consideration | 44,300 | ||||||||
Assets: | |||||||||
Trade receivables and other | 22,500 | 22,500 | |||||||
Inventories - materials and supplies | 7,400 | 7,400 | |||||||
Inventories - coal | 6,600 | 6,600 | |||||||
Other current assets | 1,300 | 1,300 | |||||||
Total current assets | 37,800 | 37,800 | |||||||
Land and mineral rights | 39,500 | 39,500 | |||||||
Plant and equipment | 134,000 | 134,000 | |||||||
Advanced coal royalties | 9,200 | 9,200 | |||||||
Restricted investments and bond collateral | 10,600 | 10,600 | |||||||
Intangible assets | 31,000 | 31,000 | |||||||
Other assets | 200 | 200 | |||||||
Total Assets | 262,300 | 262,300 | |||||||
Liabilities: | |||||||||
Trade payables and other accrued liabilities | (19,100) | (19,100) | |||||||
Asset retirement obligations | (7,800) | (7,800) | |||||||
Other current liabilities | (4,000) | (4,000) | |||||||
Total current liabilities | (30,900) | (30,900) | |||||||
Long-term debt, less current installments | (160,100) | (160,100) | |||||||
Asset retirement obligations, less current portion | (23,900) | (23,900) | |||||||
Warrants | (2,000) | (2,000) | |||||||
Other liabilities | (1,100) | (1,100) | |||||||
Total Liabilities | (218,000) | (218,000) | |||||||
Net fair value | 44,300 | 44,300 | |||||||
Non-controlling Interest | (10,800) | (10,800) | |||||||
Invested Equity | 33,500 | 33,500 | |||||||
Canadian Subsidiaries | |||||||||
Purchase Price: | |||||||||
Cash paid - Initial payment | $ 282,800 | 282,800 | |||||||
Cash paid - working capital adjustment | $ 39,800 | 39,800 | |||||||
Cash paid | 322,600 | ||||||||
Assets: | |||||||||
Cash and cash equivalents | 26,200 | 26,200 | |||||||
Trade receivables and other | 78,100 | 78,100 | |||||||
Inventories - materials and supplies | 52,000 | 52,000 | |||||||
Inventories - coal | 79,800 | 79,800 | |||||||
Loan and lease receivables | 11,200 | 11,200 | |||||||
Deferred tax assets | 8,200 | 8,200 | |||||||
Other current assets | 3,400 | 3,400 | |||||||
Total current assets | 258,900 | 258,900 | |||||||
Land and mineral rights | 202,600 | 202,600 | |||||||
Plant and equipment | 114,800 | 114,800 | |||||||
Loan and lease receivables | 79,100 | 79,100 | |||||||
Contractual third-party reclamation receivables, less current portion | 6,800 | 6,800 | |||||||
Investment in joint venture | 36,000 | 36,000 | |||||||
Intangible assets | 37,000 | 37,000 | |||||||
Other assets | 8,700 | 8,700 | |||||||
Total Assets | 743,900 | 743,900 | |||||||
Liabilities: | |||||||||
Current installments of long-term debt | (36,300) | (36,300) | |||||||
Trade payables and other accrued liabilities | (136,100) | (136,100) | |||||||
Asset retirement obligations | (7,800) | (7,800) | |||||||
Total current liabilities | (180,200) | (180,200) | |||||||
Long-term debt, less current installments | (86,300) | (86,300) | |||||||
Asset retirement obligations, less current portion | (122,900) | (122,900) | |||||||
Deferred tax liabilities | (31,900) | (31,900) | |||||||
Total Liabilities | (421,300) | $ (421,300) | (421,300) | ||||||
Net fair value | $ 322,600 | $ 322,600 | |||||||
[1] | Represents the market price of WMLP units outstanding using the December 31, 2014 closing price. |
ACQUISITIONS - Summary of Pro F
ACQUISITIONS - Summary of Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Total Revenues | ||||
As reported | $ 349,796 | $ 337,830 | $ 1,070,240 | $ 805,989 |
Pro forma (unaudited) | 465,094 | 1,366,820 | ||
Operating Income | ||||
As reported | (15,307) | (29,432) | (13,716) | (51,021) |
Pro forma (unaudited) | (7,339) | (14,678) | ||
Net loss applicable to common shareholders | ||||
As reported | $ (46,562) | (49,329) | $ (94,899) | (131,982) |
Pro forma (unaudited) | $ (31,034) | $ (95,373) | ||
Net loss per share applicable to common shareholders | ||||
As reported, (in dollars per share) | $ (2.59) | $ (2.95) | $ (5.32) | $ (8.49) |
Pro forma (unaudited) (in dollars per share) | $ (1.86) | $ (6.13) |
KEMMERER DROP (Details)
KEMMERER DROP (Details) $ / shares in Units, $ in Millions | Aug. 01, 2015USD ($)$ / shares | Sep. 30, 2015 |
Westmoreland Kemmerer, LLC | ||
Noncontrolling Interest [Line Items] | ||
Contribution of outstanding equity interests | 100.00% | |
Aggregate consideration | $ 230 | |
Cash received | 115 | |
WMLP Series A Convertible Partnership Units received | $ 115 | |
Conversion ratio of Series A Units to limited partner interests of WMLP | 1 | |
Cash distribution to holders of Common Units, minimum | $ / shares | $ 0.22 | |
Net assets transferred | $ 99.6 | |
Westmoreland Resource Partners LP | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling Interest, Ownership Percentage by Parent | 93.80% |
INVENTORIES (Detail)
INVENTORIES (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Coal stockpiles | $ 37,313 | $ 41,795 |
Coal fuel inventories | 8,769 | 6,531 |
Materials and supplies | 81,032 | 88,584 |
Reserve for obsolete inventory | (2,676) | (3,055) |
Total | $ 124,438 | $ 133,855 |
RESTRICTED INVESTMENTS AND BO48
RESTRICTED INVESTMENTS AND BOND COLLATERAL - Components of Restricted Investments and Bond Collateral (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Restricted Investments and Bond Collateral [Line Items] | ||
Total restricted investments and bond collateral | $ 137,672 | $ 164,389 |
Coal - Canada Segment | PMRU | ||
Restricted Investments and Bond Collateral [Line Items] | ||
Total restricted investments and bond collateral | 18,220 | 18,199 |
Coal - Canada Segment | CVRI | ||
Restricted Investments and Bond Collateral [Line Items] | ||
Total restricted investments and bond collateral | 33,870 | 31,866 |
Coal - WMLP Segment | OHIO | ||
Restricted Investments and Bond Collateral [Line Items] | ||
Total restricted investments and bond collateral | 8,255 | 10,634 |
Coal - WMLP Segment | Kemmerer Mine | ||
Restricted Investments and Bond Collateral [Line Items] | ||
Total restricted investments and bond collateral | 27,655 | 25,282 |
Reclamation Bond Collateral | Coal - U.S. Segment | Absaloka Mine | ||
Restricted Investments and Bond Collateral [Line Items] | ||
Total restricted investments and bond collateral | 11,807 | 11,781 |
Reclamation Bond Collateral | Coal - U.S. Segment | Rosebud Mine | ||
Restricted Investments and Bond Collateral [Line Items] | ||
Total restricted investments and bond collateral | 3,145 | 3,145 |
Reclamation Bond Collateral | Coal - U.S. Segment | Beulah Mine | ||
Restricted Investments and Bond Collateral [Line Items] | ||
Total restricted investments and bond collateral | 1,270 | 1,270 |
Power Contract Collateral | Power Segment | ||
Restricted Investments and Bond Collateral [Line Items] | ||
Total restricted investments and bond collateral | 17,700 | 12,600 |
Postretirement Medical Benefit Bonds | Corporate Segment | ||
Restricted Investments and Bond Collateral [Line Items] | ||
Total restricted investments and bond collateral | 8,891 | 8,780 |
Workers' Compensation Bonds | Corporate Segment | ||
Restricted Investments and Bond Collateral [Line Items] | ||
Total restricted investments and bond collateral | 6,859 | 6,832 |
Buckingham acquisition escrow | Reclamation Bond Collateral | Coal - U.S. Segment | ||
Restricted Investments and Bond Collateral [Line Items] | ||
Total restricted investments and bond collateral | $ 0 | $ 34,000 |
RESTRICTED INVESTMENTS AND BO49
RESTRICTED INVESTMENTS AND BOND COLLATERAL - Carrying Value and Estimated Fair Value of Restricted Investments and Bond Collateral (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Investment [Line Items] | ||
Restricted investments and bond collateral | $ 137,672 | $ 164,389 |
Carrying Value | ||
Investment [Line Items] | ||
Cash and cash equivalents | 100,363 | |
Time deposits | 2,455 | |
Available-for-sale | 34,854 | |
Restricted investments and bond collateral | 137,672 | |
Fair Value | ||
Investment [Line Items] | ||
Restricted investments and bond collateral | 137,672 | |
Level 1 | Fair Value | ||
Investment [Line Items] | ||
Cash and cash equivalents | 100,363 | |
Time deposits | 2,455 | |
Available-for-sale | $ 34,854 |
RESTRICTED INVESTMENTS AND BO50
RESTRICTED INVESTMENTS AND BOND COLLATERAL - Amortized Cost, Gross Unrealized Holding Gains and Losses and Fair Value of Held-to-Maturity Securities (Detail) - Restricted Investments and Bond Collateral $ in Thousands | Sep. 30, 2015USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Cost basis | $ 35,475 |
Gross unrealized holding gains | 206 |
Gross unrealized holding losses | (827) |
Fair value | $ 34,854 |
RESTRICTED INVESTMENTS AND BO51
RESTRICTED INVESTMENTS AND BOND COLLATERAL - Maturities of Available-for-Sale Securities (Details) - Restricted Investments and Bond Collateral $ in Thousands | Sep. 30, 2015USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Due within one year, Amortized Cost Basis | $ 1,258 |
Due in five years or less, Amortized Cost Basis | 15,015 |
Due after five years to ten years, Amortized Cost Basis | 4,356 |
Due in more than ten years, Amortized Cost Basis | 14,846 |
Cost basis | 35,475 |
Due within one year, Fair Value | 1,189 |
Due in five years or less, Fair Value | 14,640 |
Due after five years to ten years, Fair Value | 4,110 |
Due in more than ten years, Fair Value | 14,915 |
Available-for-sale Securities, Fair Value | $ 34,854 |
RESTRUCTURING CHARGES (Details)
RESTRUCTURING CHARGES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | $ 9,200 | $ 5,100 | $ 5,100 | |||
Restructuring charges | $ 0 | $ 3,265 | 656 | 11,207 | 15,000 | |
Cash Payments | (8,500) | (10,900) | ||||
Ending balance | 1,400 | 1,400 | 9,200 | $ 5,100 | ||
ROVA Contract | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | 400 | 5,100 | 5,100 | |||
Restructuring charges | 0 | 500 | ||||
Cash Payments | (400) | (5,200) | ||||
Ending balance | 0 | 0 | 400 | $ 5,100 | ||
Remaining period of contract | 5 years | |||||
Restructuring charges incurred | 5,500 | 5,500 | ||||
Acquisition Restructuring Plans | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | 8,800 | $ 0 | 0 | |||
Restructuring charges | 700 | 14,500 | ||||
Cash Payments | (8,100) | (5,700) | ||||
Ending balance | 1,400 | 1,400 | $ 8,800 | $ 0 | ||
Restructuring charges expected | $ 15,200 | $ 15,200 |
LINES OF CREDIT AND DEBT - Outs
LINES OF CREDIT AND DEBT - Outstanding Lines of Credit and Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Total debt outstanding | $ 1,052,954 | $ 984,787 |
Less current portion | (38,879) | (52,712) |
Total debt outstanding, less current installments | 1,014,075 | 932,075 |
Capital lease obligations | ||
Debt Instrument [Line Items] | ||
Total debt outstanding | 81,077 | 109,351 |
Other | ||
Debt Instrument [Line Items] | ||
Total debt outstanding | 7,988 | 4,062 |
Debt discount | ||
Debt Instrument [Line Items] | ||
Total debt outstanding | (11,519) | (13,202) |
Senior secured notes due 2022 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Total debt outstanding | $ 350,000 | 350,000 |
Stated interest rate (percent) | 8.75% | |
Term loan facility due 2020 | Term Notes | ||
Debt Instrument [Line Items] | ||
Total debt outstanding | $ 327,994 | 350,000 |
WMLP term loan facility due 2018 | Term Notes | ||
Debt Instrument [Line Items] | ||
Total debt outstanding | 297,414 | 175,000 |
Revolving line of credit | Revolving line of credit | ||
Debt Instrument [Line Items] | ||
Total debt outstanding | $ 0 | $ 9,576 |
LINES OF CREDIT AND DEBT - Cont
LINES OF CREDIT AND DEBT - Contractual Maturities of Long Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | ||
2,015 | $ 11,594 | |
2,016 | 39,451 | |
2,017 | 31,213 | |
2,018 | 308,458 | |
2,019 | 8,450 | |
Thereafter | 665,307 | |
Total | 1,064,473 | |
Less: debt premium (discount), net | (11,519) | |
Total debt outstanding | $ 1,052,954 | $ 984,787 |
LINES OF CREDIT AND DEBT - Addi
LINES OF CREDIT AND DEBT - Additional Information (Detail) - USD ($) | Aug. 01, 2015 | Jan. 22, 2015 | Sep. 30, 2015 | Jun. 02, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | |||||
Debt outstanding | $ 1,052,954,000 | $ 984,787,000 | |||
Aggregate principal amount | 1,064,473,000 | ||||
Revolving lines of credit | 0 | 9,576,000 | |||
Capital lease obligations incurred | 15,000,000 | ||||
Revolving line of credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 50,000,000 | ||||
Revolving lines of credit | 0 | ||||
Outstanding letters of credit | 21,100,000 | ||||
Senior secured notes due 2022 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt outstanding | $ 350,000,000 | 350,000,000 | |||
Stated interest rate (percent) | 8.75% | ||||
Term loan facility due 2020 | Term Notes | |||||
Debt Instrument [Line Items] | |||||
Debt outstanding | $ 327,994,000 | 350,000,000 | |||
Additional financing obtained per the Amended Financing Agreement | $ 75,000,000 | ||||
Aggregate principal amount | 425,000,000 | ||||
Proceeds from term loan | $ 71,000,000 | ||||
Discount rate used for issuance of add-on term loan (percent) | 2.50% | ||||
Broker fee (percent) | 1.50% | ||||
Consent fee (percent) | 1.17% | ||||
Additional debt issuance cost | $ 100,000 | ||||
WMLP term loan facility due 2018 | Term Notes | |||||
Debt Instrument [Line Items] | |||||
Debt outstanding | $ 297,414,000 | $ 175,000,000 | |||
Seasonal Increase to Borrowing Capacity [Member] | Revolving line of credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 75,000,000 | ||||
Westmoreland Kemmerer, LLC | Term loan facility due 2020 | Term Notes | |||||
Debt Instrument [Line Items] | |||||
Repayments of debt | $ 94,100,000 |
POSTRETIREMENT MEDICAL BENEFI56
POSTRETIREMENT MEDICAL BENEFITS AND PENSION - Postretirement Medicial Benefit Obligations Balance Sheet Disclosures (Details) - Postretirement Medical Benefits - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Components of net periodic benefit cost: | ||||
Service cost | $ 1,054 | $ 822 | $ 3,163 | $ 2,467 |
Interest cost | 2,907 | 3,203 | 8,722 | 9,610 |
Amortization of deferred items | 327 | 4 | 981 | 13 |
Total net periodic benefit cost | $ 4,288 | $ 4,029 | $ 12,866 | $ 12,090 |
POSTRETIREMENT MEDICAL BENEFI57
POSTRETIREMENT MEDICAL BENEFITS AND PENSION - Postretirement Medical Benefit Obligations Income Statement Disclosures (Details) - Postretirement Medical Benefits - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net periodic postretirement medical benefit costs relating to current and former mining operations: | ||||
Total net periodic benefit cost | $ 4,288 | $ 4,029 | $ 12,866 | $ 12,090 |
Former Mining Operations | ||||
Net periodic postretirement medical benefit costs relating to current and former mining operations: | ||||
Total net periodic benefit cost | 2,034 | 2,402 | 6,103 | 7,210 |
Current Operations | ||||
Net periodic postretirement medical benefit costs relating to current and former mining operations: | ||||
Total net periodic benefit cost | $ 2,254 | $ 1,627 | $ 6,763 | $ 4,880 |
POSTRETIREMENT MEDICAL BENEFI58
POSTRETIREMENT MEDICAL BENEFITS AND PENSION - Pension Benefit Disclosures (Details) - Pension - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 436 | $ 500 | $ 1,318 | $ 1,500 |
Interest cost | 1,831 | 1,747 | 5,780 | 5,240 |
Expected return on plan assets | (2,435) | (2,154) | (7,744) | (6,461) |
Pension settlement accounting | (1,529) | 0 | (1,874) | 0 |
Amortization of deferred items | 1,059 | 359 | 3,301 | 1,078 |
Total net periodic benefit cost | $ (638) | $ 452 | 781 | $ 1,357 |
Employer contributions during the period | 3,500 | |||
Expected employer contributions to pension plans during the remainder of the year | $ 300 |
HERITAGE HEALTH BENEFIT EXPEN59
HERITAGE HEALTH BENEFIT EXPENSES - Components of Costs of Benefits to Former Mining Operation Employees (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Heritage Health Benefit Expenses [Abstract] | ||||
Health care benefits | $ 2,041 | $ 2,404 | $ 6,138 | $ 7,054 |
Combined benefit fund payments | 462 | 342 | 1,387 | 1,366 |
Workers' compensation benefits | 102 | 120 | 324 | 380 |
Black lung benefits | 196 | 449 | 173 | 1,446 |
Total | $ 2,801 | $ 3,315 | $ 8,022 | $ 10,246 |
ASSET RETIREMENT OBLIGATIONS,60
ASSET RETIREMENT OBLIGATIONS, CONTRACTUAL THIRD-PARTY RECLAMATION RECEIVABLES, AND RECLAMATION DEPOSITS - Summary of Asset Retirement Obligations, Contractual Third-Party Reclamation Receivables, and Reclamation Deposits (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Asset Retirement Obligation [Line Items] | ||||
Asset Retirement Obligation | $ 449,607 | $ 452,745 | $ 384,807 | $ 279,864 |
Contractual Third- Party Reclamation Receivable | 115,396 | |||
Reclamation deposits | 77,425 | |||
Coal - U.S. Segment | ||||
Asset Retirement Obligation [Line Items] | ||||
Asset Retirement Obligation | 279,864 | |||
Contractual Third- Party Reclamation Receivable | 109,758 | |||
Reclamation deposits | 77,425 | |||
Coal - Canada Segment | ||||
Asset Retirement Obligation [Line Items] | ||||
Asset Retirement Obligation | 116,061 | |||
Contractual Third- Party Reclamation Receivable | 5,638 | |||
Reclamation deposits | 0 | |||
Coal - WMLP Segment | ||||
Asset Retirement Obligation [Line Items] | ||||
Asset Retirement Obligation | 52,666 | |||
Contractual Third- Party Reclamation Receivable | 0 | |||
Reclamation deposits | 0 | |||
Power Segment | ||||
Asset Retirement Obligation [Line Items] | ||||
Asset Retirement Obligation | 1,016 | |||
Contractual Third- Party Reclamation Receivable | 0 | |||
Reclamation deposits | $ 0 |
ASSET RETIREMENT OBLIGATIONS,61
ASSET RETIREMENT OBLIGATIONS, CONTRACTUAL THIRD-PARTY RECLAMATION RECEIVABLES, AND RECLAMATION DEPOSITS - Changes in Company's Asset Retirement Obligations (Detail) - USD ($) $ in Thousands | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | |
Asset Retirement Obligation Disclosure [Abstract] | |||||
Asset retirement obligations, beginning of period (including current portion) | $ 452,745 | $ 279,864 | |||
Accretion | 29,265 | 23,329 | |||
Liabilities settled | (23,421) | (18,759) | |||
Changes due to amount and timing of reclamation | 4,612 | 0 | |||
Asset retirement obligations acquired | 3,769 | 102,075 | |||
Changes due to foreign currency translation | (17,363) | (1,702) | |||
Asset retirement obligations, end of period | $ 452,745 | $ 279,864 | $ 449,607 | $ 452,745 | $ 384,807 |
Less current portion | (47,462) | (43,289) | (29,529) | ||
Asset retirement obligations, less current portion | $ 402,145 | $ 409,456 | $ 355,278 |
ASSET RETIREMENT OBLIGATIONS,62
ASSET RETIREMENT OBLIGATIONS, CONTRACTUAL THIRD-PARTY RECLAMATION RECEIVABLES, AND RECLAMATION DEPOSITS - Carrying Value and Estimated Fair Value of Reclamation Deposits (Detail) $ in Thousands | Sep. 30, 2015USD ($) |
Asset Retirement Obligation [Line Items] | |
Reclamation deposits | $ 77,425 |
Carrying Value | |
Asset Retirement Obligation [Line Items] | |
Reclamation deposits | 77,425 |
Carrying Value | Cash and cash equivalents | |
Asset Retirement Obligation [Line Items] | |
Reclamation deposits | 46,544 |
Carrying Value | Available-for-sale Securities | |
Asset Retirement Obligation [Line Items] | |
Reclamation deposits | 30,881 |
Fair Value | |
Asset Retirement Obligation [Line Items] | |
Reclamation deposits | 77,425 |
Fair Value | Cash and cash equivalents | Level 1 | |
Asset Retirement Obligation [Line Items] | |
Reclamation deposits | 46,544 |
Fair Value | Available-for-sale Securities | Level 1 | |
Asset Retirement Obligation [Line Items] | |
Reclamation deposits | $ 30,881 |
ASSET RETIREMENT OBLIGATIONS,63
ASSET RETIREMENT OBLIGATIONS, CONTRACTUAL THIRD-PARTY RECLAMATION RECEIVABLES, AND RECLAMATION DEPOSITS - Amortized Cost, Gross Unrealized Holding Gains and Losses and Fair Value of Available for Sale Securities (Details) - Reclamation Deposits $ in Thousands | Sep. 30, 2015USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Cost basis | $ 31,141 |
Gross unrealized holding gains | 573 |
Gross unrealized holding losses | (833) |
Fair value | $ 30,881 |
ASSET RETIREMENT OBLIGATIONS,64
ASSET RETIREMENT OBLIGATIONS, CONTRACTUAL THIRD-PARTY RECLAMATION RECEIVABLES, AND RECLAMATION DEPOSITS Maturities of Available for Sale Maturities (Details) - Reclamation Deposits $ in Thousands | Sep. 30, 2015USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Due within one year, Amortized Cost Basis | $ 0 |
Due in five years or less, Amortized Cost Basis | 16,804 |
Due after five years to ten years, Amortized Cost Basis | 5,424 |
Due in more than ten years, Amortized Cost Basis | 8,913 |
Cost basis | 31,141 |
Due within one year, Fair Value | 0 |
Due in five years or less, Fair Value | 16,601 |
Due after five years to ten years, Fair Value | 5,262 |
Due in more than ten years, Fair Value | 9,018 |
Available-for-sale Securities, Fair Value | $ 30,881 |
DERIVATIVE INSTRUMENTS (Details
DERIVATIVE INSTRUMENTS (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)$ / MWh | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Mar. 31, 2014USD ($)contracts | |
Derivative [Line Items] | ||||||
Gain (loss) on derivative, net | $ (5,815) | $ (23,691) | $ (6,717) | $ (29,621) | ||
Not Designated as Hedging Instrument | Foreign Exchange Forward | ||||||
Derivative [Line Items] | ||||||
Number of foreign currency exchange forward contracts | contracts | 2 | |||||
Notional amount | $ 348,300 | |||||
Not Designated as Hedging Instrument | Foreign Exchange Forward | Gain (loss) on foreign exchange | ||||||
Derivative [Line Items] | ||||||
Gain (loss) on derivative, net | 0 | 0 | 0 | (6,209) | ||
Not Designated as Hedging Instrument | Power Contract | Derivative loss | ||||||
Derivative [Line Items] | ||||||
Gain (loss) on derivative, net | (5,815) | $ (23,691) | (6,717) | $ (29,621) | ||
Not Designated as Hedging Instrument | Power Contract | Other current liabilities | ||||||
Derivative [Line Items] | ||||||
Derivative Liability | 10,138 | 10,138 | $ 8,265 | |||
Not Designated as Hedging Instrument | Power Contract | Other liabilities | ||||||
Derivative [Line Items] | ||||||
Derivative Liability | $ 30,175 | $ 30,175 | $ 21,103 | |||
Minimum | Power Contract | ||||||
Derivative [Line Items] | ||||||
Contracted power price notional amount | $ / MWh | 41.05 | |||||
Maximum | Power Contract | ||||||
Derivative [Line Items] | ||||||
Contracted power price notional amount | $ / MWh | 56.33 | |||||
Weighted Average | Power Contract | ||||||
Derivative [Line Items] | ||||||
Contracted power price notional amount | $ / MWh | 43.72 |
FAIR VALUE MEASUREMENTS Summary
FAIR VALUE MEASUREMENTS Summary of Financial Assets at Fair Value (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Available-for-sale investments included in Reclamation deposits | $ 77,425 |
Fair Value | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Available-for-sale investments included in Reclamation deposits | 77,425 |
Fair Value | Level 1 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Available-for-sale investments included in Restricted investments and bond collateral | 34,854 |
Available-for-sale investments | 65,735 |
Available-for-sale Securities | Fair Value | Level 1 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Available-for-sale investments included in Reclamation deposits | $ 30,881 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Significant unobservable inputs, Level 3 - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt at fixed interest rate | $ 345,860 | $ 345,498 |
Debt at variable interest rate | 320,615 | 341,300 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt at fixed interest rate | 305,375 | 348,250 |
Debt at variable interest rate | $ 264,507 | $ 344,750 |
SHAREHOLDERS' DEFICIT AND ACC68
SHAREHOLDERS' DEFICIT AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Schedule of Noncontrolling Interest Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||||
Beginning balance | $ (349,445) | ||||
Net loss allocated to noncontrolling interest | $ (48,020) | $ (49,134) | (99,749) | $ (131,318) | |
Distributions to noncontrolling interest | (535) | ||||
Ending balance | $ (489,216) | (489,216) | |||
Noncontrolling Interest | |||||
Noncontrolling Interest [Line Items] | |||||
Ownership percentage by noncontrolling owners (percent) | 21.00% | ||||
Increase in ownership percentage by parent (percent) | 15.00% | ||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||||
Beginning balance | 15,261 | ||||
Change in Parent's ownership | $ 8,362 | (8,362) | |||
Net loss allocated to noncontrolling interest | (4,850) | ||||
Distributions to noncontrolling interest | (535) | ||||
Ending balance | $ 1,514 | $ 1,514 |
SHAREHOLDERS' DEFICIT AND ACC69
SHAREHOLDERS' DEFICIT AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Class of Stock [Line Items] | ||
Preferred stock, shares outstanding | 0 | 91,669 |
Preferred Stock | ||
Class of Stock [Line Items] | ||
Shares converted (shares) | 88,494 | |
Shares redeemed (shares) | 3,175 | |
Redemption of preferred stock | $ 0.3 | |
Common Stock | ||
Class of Stock [Line Items] | ||
Conversion of convertible notes and securities (shares) | 604,557 | |
Maximum | ||
Class of Stock [Line Items] | ||
Preferred dividends paid (less than) | $ (0.1) |
SHAREHOLDERS' DEFICIT AND ACC70
SHAREHOLDERS' DEFICIT AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Changes in Accumulated Other Comprehensive Income by component (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance at beginning of period | $ (124,296) |
Other comprehensive income before reclassifications | (45,940) |
Amounts reclassified from accumulated other comprehensive income (loss) | 4,425 |
Balance at end of period | (165,811) |
Defined benefit plans adjustment | Pension | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance at beginning of period | (36,065) |
Other comprehensive income before reclassifications | (576) |
Amounts reclassified from accumulated other comprehensive income (loss) | 3,301 |
Balance at end of period | (33,340) |
Defined benefit plans adjustment | Postretirement Medical Benefits | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance at beginning of period | (39,716) |
Amounts reclassified from accumulated other comprehensive income (loss) | 981 |
Balance at end of period | (38,735) |
Available for sale securities | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance at beginning of period | 413 |
Other comprehensive income before reclassifications | (1,438) |
Amounts reclassified from accumulated other comprehensive income (loss) | 143 |
Balance at end of period | (882) |
Foreign currency translation adjustment | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance at beginning of period | (17,880) |
Other comprehensive income before reclassifications | (43,018) |
Balance at end of period | (60,898) |
Tax effect of other comprehensive income gains | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance at beginning of period | (31,048) |
Other comprehensive income before reclassifications | (908) |
Balance at end of period | $ (31,956) |
SHAREHOLDERS' DEFICIT AND ACC71
SHAREHOLDERS' DEFICIT AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Reclassifications out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2015 | ||
Defined benefit plans adjustment | Pension | |||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||
Prior service costs | [1] | $ 2 | $ 6 |
Actuarial losses | [1],[2] | 1,032 | 3,295 |
Amortization of defined benefit pension and postretirement medical benefits | [1] | 1,034 | 3,301 |
Defined benefit plans adjustment | Postretirement Medical Benefits | |||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||
Prior service costs | [1],[3] | (159) | (477) |
Actuarial losses | [1],[3] | 486 | 1,458 |
Amortization of defined benefit pension and postretirement medical benefits | [1] | 327 | 981 |
Other income (loss) | Unrealized Gains and Losses on Available-for-sale Securities, Net | |||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||
Realized gains and losses on available-for sale securities | [1] | $ 19 | $ 143 |
[1] | Amounts in parentheses indicate amounts recognized as income. Amounts with no parenthesis were recognized as expenses or losses. | ||
[2] | These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. (See Note 8 - Pension for additional details) | ||
[3] | These accumulated other comprehensive loss components are included in the computation of net periodic postretirement medical cost. (See Note 8 - Postretirement Medical Benefits for additional details) |
SHARE-BASED COMPENSATION - Comp
SHARE-BASED COMPENSATION - Compensation Expense from Share-Based Arrangements (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Recognition of fair value of restricted stock units, stock options, and SARs over vesting period; and issuance of common stock | $ 1,100 | $ 334 | $ 2,924 | $ 2,450 |
Contributions of stock to the Company's 401(k) plan | 842 | 677 | 2,664 | 1,006 |
Total share-based compensation expense | $ 1,942 | $ 1,011 | $ 5,588 | $ 3,456 |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summary of Restricted Stock Unit Activity (Detail) - Restricted Stock Units (RSUs) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2015 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Balance beginning of period (units) | 409,362 | ||
Granted (units) | 262,555 | ||
Vested (units) | (247,528) | ||
Forfeited (units) | (60,241) | ||
Balance end of period (units) | 409,362 | 364,148 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Weighted Average Grant Date Fair Value, beginning of period (in USD per share) | $ 13.87 | ||
Weighted Average Grant Date Fair Value, Awards Granted (in USD per share) | 28.26 | ||
Weighted Average Grant Date Fair Value, Awards Vested (in USD per share) | 10.53 | ||
Weighted Average Grant Date Fair Value, Awards Forfeited (in USD per share) | 10.57 | ||
Weighted Average Grant Date Fair Value, end of period (in USD per share) | $ 28.57 | ||
Unamortized Compensation Expense | [1] | $ 8,053 | |
[1] | Expected to be recognized over the next three years. |
SHARE-BASED COMPENSATION - Su74
SHARE-BASED COMPENSATION - Summary of Stock Options and SARs (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($)$ / sharesshares | |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Balance, beginning of period, shares | 110,806 |
Exercised, shares | 0 |
Expired, shares | (1,500) |
Balance, end of period, shares | 109,306 |
Balance, beginning of period, weighted average exercise price | $ / shares | $ 22.15 |
Exercised, weighted average exercise price | $ / shares | 0 |
Expired, weighted average exercise price | $ / shares | 21.40 |
Balance, end of period, weighted average exercise price | $ / shares | $ 22.16 |
Outstanding - Weighted Average Remaining Contractual Life (In years) | 2 years 4 months 24 days |
Exercisable - Weighted Average Remaining Contractual Life (In years) | 2 years 4 months 24 days |
Aggregate Intrinsic Value | $ | $ 0 |
Unamortized Compensation Expense | $ | $ 0 |
Granted, shares | 0 |
Stock Appreciation Rights (SARs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Balance, beginning of period, shares | 16,943 |
Exercised, shares | 0 |
Expired, shares | 0 |
Balance, end of period, shares | 16,943 |
Balance, beginning of period, weighted average exercise price | $ / shares | $ 25.44 |
Exercised, weighted average exercise price | $ / shares | 0 |
Expired, weighted average exercise price | $ / shares | 0 |
Balance, end of period, weighted average exercise price | $ / shares | $ 25.44 |
Outstanding - Weighted Average Remaining Contractual Life (In years) | 7 months 6 days |
Exercisable - Weighted Average Remaining Contractual Life (In years) | 7 months 6 days |
Aggregate Intrinsic Value | $ | $ 0 |
Unamortized Compensation Expense | $ | $ 0 |
Granted, shares | 0 |
SHARE-BASED COMPENSATION - Narr
SHARE-BASED COMPENSATION - Narrative (Details) | 9 Months Ended |
Sep. 30, 2015USD ($)shares | |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Period for recognition of unamortized compensation expense | 3 years |
Granted (units) | 262,555 |
Amended And Restated Equity Incentive Stock Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non Employee Directors Annual Equity Awards Amount | $ | $ 90,000 |
EARNINGS PER SHARE - Antidiluti
EARNINGS PER SHARE - Antidilutive securities excluded from the computation of earnings per share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Class of Stock [Line Items] | ||||
Shares excluded from diluted shares calculation | 490 | 1,194 | 490 | 1,194 |
Convertible securities | ||||
Class of Stock [Line Items] | ||||
Shares excluded from diluted shares calculation | 0 | 626 | 0 | 626 |
Restricted stock units, stock options and SARs | ||||
Class of Stock [Line Items] | ||||
Shares excluded from diluted shares calculation | 490 | 568 | 490 | 568 |
BUSINESS SEGMENT INFORMATION -
BUSINESS SEGMENT INFORMATION - Summarized Financial Information by Segment (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)segments | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | ||
Segment Reporting Information [Line Items] | ||||||
Number of Reportable Segments | segments | 6 | |||||
Revenues | $ 349,796 | $ 337,830 | $ 1,070,240 | $ 805,989 | ||
Restructuring charges | 0 | 3,265 | 656 | 11,207 | $ 15,000 | |
Depreciation, depletion and amortization | 34,459 | 28,175 | 106,781 | 68,713 | ||
Operating income (loss) | (15,307) | (29,432) | (13,716) | (51,021) | ||
Total assets | 1,728,222 | 1,578,508 | 1,728,222 | 1,578,508 | $ 1,829,578 | |
Capital expenditures | 19,417 | 18,285 | 57,971 | 35,646 | ||
Coal - U.S. Segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | [1] | 132,018 | 123,134 | 419,505 | 348,417 | |
Restructuring charges | [1] | 0 | 292 | 0 | 783 | |
Depreciation, depletion and amortization | [1] | 9,524 | 9,464 | 28,199 | 28,029 | |
Operating income (loss) | [1] | 482 | (349) | 8,403 | (3,356) | |
Total assets | [1] | 557,643 | 477,946 | 557,643 | 477,946 | |
Capital expenditures | [1] | 7,047 | 7,981 | 18,908 | 17,898 | |
Coal - Canada Segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | [2] | 107,752 | 151,340 | 317,157 | 267,387 | |
Restructuring charges | [2] | 0 | 2,411 | 0 | 9,058 | |
Depreciation, depletion and amortization | [2] | 7,023 | 11,862 | 26,899 | 20,533 | |
Operating income (loss) | [2] | 4,009 | (1,453) | 23,397 | (14,162) | |
Total assets | [2] | 547,368 | 607,565 | 547,368 | 607,565 | |
Capital expenditures | [2] | 7,485 | 5,280 | 21,413 | 12,775 | |
Coal - WMLP Segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | [3] | 94,785 | 41,917 | 300,908 | 124,933 | |
Restructuring charges | [3] | 0 | 0 | 656 | 0 | |
Depreciation, depletion and amortization | [3] | 15,471 | 4,307 | 44,282 | 12,523 | |
Operating income (loss) | [3] | (4,845) | 5,142 | (6,151) | 20,425 | |
Total assets | [3] | 440,004 | 187,346 | 440,004 | 187,346 | |
Capital expenditures | [3] | 4,691 | 4,860 | 19,918 | 4,529 | |
Power Segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 22,017 | 21,439 | 64,001 | 65,252 | ||
Restructuring charges | 0 | (40) | 0 | 459 | ||
Depreciation, depletion and amortization | 2,470 | 2,504 | 7,430 | 7,512 | ||
Operating income (loss) | (7,976) | (26,413) | (16,594) | (34,147) | ||
Total assets | 172,182 | 163,528 | 172,182 | 163,528 | ||
Capital expenditures | 198 | 164 | 1,305 | 419 | ||
Heritage Segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 0 | 0 | 0 | 0 | ||
Restructuring charges | 0 | 0 | 0 | 0 | ||
Depreciation, depletion and amortization | 0 | 0 | 0 | 0 | ||
Operating income (loss) | (2,950) | (3,915) | (8,699) | (11,303) | ||
Total assets | 16,152 | 15,996 | 16,152 | 15,996 | ||
Capital expenditures | 0 | 0 | 0 | 0 | ||
Corporate and Eliminations | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | [4] | (6,776) | 0 | (31,331) | 0 | |
Restructuring charges | [4] | 0 | 602 | 0 | 907 | |
Depreciation, depletion and amortization | [4] | (29) | 38 | (29) | 116 | |
Operating income (loss) | [4] | (4,027) | (2,444) | (14,072) | (8,478) | |
Total assets | [4] | (5,127) | 126,127 | (5,127) | 126,127 | |
Capital expenditures | [4] | (4) | $ 0 | (3,573) | $ 25 | |
Buckingham Coal Company, LLC | Coal - U.S. Segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 15,900 | 61,400 | ||||
Operating income (loss) | 2,000 | 3,400 | ||||
Revenues to the Coal - U.S. segment | Coal - WMLP Segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | $ 5,900 | $ 24,600 | ||||
[1] | The Buckingham Acquisition was completed on January 1, 2015. For the three and nine months ended September 30, 2015, revenues for Buckingham were $15.9 million and $61.4 million and operating losses were $2.0 million and $3.4 million, respectively. | |||||
[2] | The Canadian Operations were acquired on April 28, 2014, therefore, information for the nine months ended September 30, 2014 includes approximately five months of operations. | |||||
[3] | The operations reported under the segment Coal - WMLP were acquired on December 31, 2014, therefore, there is no activity for the three and nine months ended September 30, 2014. | |||||
[4] | The Coal - WMLP segment recorded revenues of $5.9 million and $24.6 million for intersegment revenues to the Coal - U.S. segment for the three and nine months ended September 30, 2015. |
BUSINESS SEGMENT INFORMATION 78
BUSINESS SEGMENT INFORMATION - Reconciliation of Segment Operating Income to Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting [Abstract] | ||||
Income from operations | $ (15,307) | $ (29,432) | $ (13,716) | $ (51,021) |
Loss on extinguishment of debt | (5,385) | (13) | (5,385) | (12,648) |
Interest expense | (26,831) | (21,251) | (76,870) | (63,835) |
Interest income | 1,555 | 2,468 | 6,262 | 4,351 |
Gain (loss) on foreign exchange | 1,679 | (1,742) | 2,474 | (5,883) |
Other income | 356 | 118 | 1,082 | 697 |
Loss before income taxes | $ (43,933) | $ (49,852) | $ (86,153) | $ (128,339) |