Basis of Presentation | Basis of Presentation Nature of Business Natural Resource Partners L.P. (the "Partnership") engages principally in the business of owning, operating, managing and leasing a diversified portfolio of mineral properties in the United States, including interests in coal, natural soda ash from trona, construction aggregates and other natural resources. As used in these Notes to Consolidated Financial Statements, the terms "NRP," "we," "us" and "our" refer to Natural Resource Partners L.P. and its subsidiaries, unless otherwise stated or indicated by context. Principles of Consolidation and Reporting The accompanying unaudited Consolidated Financial Statements of the Partnership have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") for interim financial information and with Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In management's opinion, all necessary adjustments to fairly present the Partnership's results of operations, financial position and cash flows for the periods presented have been made and all such adjustments were of a normal and recurring nature. Certain reclassifications have been made to prior period amounts on the Statements of Comprehensive Income and Statements of Cash Flows to conform with current period presentation. These reclassifications had no impact on previously reported net income or cash flows from operating, investing or financing activities. Recently Adopted Accounting Standards Revenue Recognition. On January 1, 2018, NRP adopted accounting standard ASC 606, Revenue from Contracts with Customers, and all the related amendments (the “new revenue standard” and "ASC 606") to all open contracts using the modified retrospective method. The adoption of the new revenue standard impacted royalty revenue from NRP's coal and aggregates royalty leases as further described below. NRP recognized the cumulative effect of adoption as an adjustment to the opening balance of partners' capital on January 1, 2018. Prior year information has not been restated and continues to be reported under the accounting standards in effect for those periods. The new revenue standard had no impact on revenues from NRP's Construction Aggregates or Soda Ash operating segments. A majority of NRP’s coal and aggregates royalty revenue continues to be recognized over the lease term based on production. For coal and aggregates royalty leases for which NRP expects consideration from minimum payments to be greater than consideration from production over the lease term, royalty revenue is now recognized straight-line over the lease term based on the minimum payment consideration amount, opposed to when the recoupment period for that minimum payment expired under the previous guidance. The cumulative effects of the changes made to our Consolidated Balance Sheet at January 1, 2018 for the adoption of the new revenue standard were as follows: (In thousands) Balance at December 31, 2017 Adjustments due to ASC 606 Balance at January 1, 2018 Assets Accounts receivable, net $ 47,026 $ 3,479 $ 50,505 Liabilities Current portion of deferred revenue $ — $ 1,973 $ 1,973 Deferred revenue 100,605 (88,747 ) 11,858 Partners’ capital Common unitholders’ interest $ 199,851 $ 88,448 $ 288,299 General partner’s interest 1,857 1,805 3,662 Total partners’ capital 265,211 90,253 355,464 The impact of adoption of the new revenue standard on NRP’s Consolidated Statement of Comprehensive Income and Consolidated Balance Sheet was as follows: For the Three Months ended March 31, 2018 (In thousands) As Reported Amounts without Adoption of ASC 606 Effect of Change Coal royalty and other revenues $ 45,973 $ 47,671 $ (1,698 ) Net income from continuing operations 26,088 27,786 (1,698 ) Net income 26,074 27,772 (1,698 ) Net income per common unit (basic) 1.49 1.63 (0.14 ) Net income per common unit (diluted) 1.15 1.23 (0.08 ) As of March 31, 2018 (In thousands) As Reported Balances without Adoption of ASC 606 Effect of Change Assets Accounts receivable, net $ 55,651 $ 48,556 $ 7,095 Total assets 1,377,206 1,370,111 7,095 Liabilities and capital Current portion of deferred revenue $ 1,554 $ — $ 1,554 Deferred revenue 14,622 97,636 (83,014 ) Total liabilities 848,367 929,827 (81,460 ) Common unitholders’ interest 301,344 214,560 86,784 General partner’s interest 3,924 2,153 1,771 Total partners’ capital 367,646 279,091 88,555 Total liabilities and capital 1,377,206 1,370,111 7,095 Recently Issued Accounting Standards Leases . In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard requires a lessee to recognize assets and liabilities on the balance sheet for the present value of the rights and obligations created by all leases with terms of more than 12 months. This standard does not apply to leases that explore for or use minerals, oil, natural gas and similar non-regenerative resources, including the intangible right to explore for those natural resources and rights to use the land in which those natural resources are contained. The guidance also requires disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. The guidance is effective for annual and interim periods beginning after December 31, 2018. The Partnership is currently evaluating the impact of the provisions of this guidance on its consolidated financial statements. |