Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | ||
Sep. 30, 2015 | Oct. 23, 2015 | Dec. 31, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Intrepid Potash, Inc. | ||
Entity Central Index Key | 1,421,461 | ||
Document Type | 10-Q | ||
Document Period End Date | Sep. 30, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 76,164,225 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | Q3 | ||
Restricted Stock | |||
Document and Entity Information [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 462,834 | 461,525 | 464,769 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and cash equivalents | $ 24,322 | $ 67,589 |
Short-term investments | 56,590 | 10,434 |
Accounts receivable: | ||
Trade, net | 21,357 | 28,561 |
Other receivables, net | 3,214 | 3,600 |
Refundable income taxes | 199 | 114 |
Inventory, net | 106,578 | 84,094 |
Prepaid expenses and other current assets | 5,940 | 4,739 |
Current deferred tax asset, net | 2,025 | 3,356 |
Total current assets | 220,225 | 202,487 |
Property, plant, equipment, and mineral properties, net | 758,059 | 785,250 |
Long-term parts inventory, net | 18,204 | 16,366 |
Long-term investments | 13,028 | 11,856 |
Other assets, net | 4,015 | 4,035 |
Non-current deferred tax asset, net | 153,198 | 146,725 |
Total Assets | 1,166,729 | 1,166,719 |
Accounts payable: | ||
Trade | 19,526 | 19,953 |
Related parties | 86 | 55 |
Accrued liabilities | 15,962 | 12,483 |
Accrued employee compensation and benefits | 10,373 | 12,069 |
Other current liabilities | 4,558 | 2,075 |
Total current liabilities | 50,505 | 46,635 |
Long-term debt | 150,000 | 150,000 |
Asset retirement obligation | 21,639 | 20,389 |
Other non-current liabilities | 1,086 | 2,410 |
Total Liabilities | 223,230 | 219,434 |
Common stock, $0.001 par value; 100,000,000 shares authorized; and 75,702,700 and 75,536,741 shares outstanding at September, 30, 2015, and December 31, 2014, respectively | 76 | 76 |
Additional paid-in capital | 578,928 | 576,186 |
Accumulated other comprehensive loss | (38) | (28) |
Retained earnings | 364,533 | 371,051 |
Total Stockholders' Equity | 943,499 | 947,285 |
Total Liabilities and Stockholders' Equity | $ 1,166,729 | $ 1,166,719 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares outstanding | 75,702,700 | 75,536,741 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Sales | $ 53,692 | $ 102,280 | $ 244,364 | $ 312,104 |
Less: | ||||
Freight costs | 5,348 | 10,925 | 23,158 | 32,616 |
Warehousing and handling costs | 3,199 | 3,270 | 10,383 | 9,070 |
Cost of goods sold | 42,151 | 77,794 | 180,868 | 235,750 |
Lower-of-cost-or-market inventory adjustments | 4,427 | 3,403 | 10,063 | 8,110 |
Costs associated with abnormal production and other | 6,910 | 0 | 6,910 | 0 |
Gross Margin | (8,343) | 6,888 | 12,982 | 26,558 |
Selling and administrative | 5,943 | 6,466 | 21,835 | 20,276 |
Accretion of asset retirement obligation | 424 | 405 | 1,272 | 1,217 |
Restructuring expense | 0 | 0 | 0 | 1,827 |
Other operating income | (23) | 2 | (2,269) | (3,249) |
Operating (Loss) Income | (14,687) | 15 | (7,856) | 6,487 |
Other Income (Expense) | ||||
Interest expense, net | (1,574) | (1,632) | (4,820) | (4,569) |
Interest income | 232 | 35 | 587 | 110 |
Other income | 67 | 343 | 440 | 803 |
(Loss) Income Before Income Taxes | (15,962) | (1,239) | (11,649) | 2,831 |
Income Tax Benefit (Expense) | 7,852 | 3 | 5,131 | 1,139 |
Net (Loss) Income | $ (8,110) | $ (1,236) | $ (6,518) | $ 3,970 |
Weighted Average Shares Outstanding: | ||||
Basic (in shares) | 75,701,490 | 75,528,235 | 75,658,297 | 75,496,365 |
Diluted (in shares) | 75,701,490 | 75,528,235 | 75,658,297 | 75,611,070 |
(Loss) Earnings Per Share: | ||||
Basic (in dollars per share) | $ (0.11) | $ (0.02) | $ (0.09) | $ 0.05 |
Diluted (in dollars per share) | $ (0.11) | $ (0.02) | $ (0.09) | $ 0.05 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - 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) Income | $ (8,110) | $ (1,236) | $ (6,518) | $ 3,970 |
Unrealized (loss) gain on investments available for sale, net of tax | 15 | 0 | (10) | 12 |
Other Comprehensive (Loss) Income | 15 | 0 | (10) | 12 |
Comprehensive (Loss) Income | $ (8,095) | $ (1,236) | $ (6,528) | $ 3,982 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - 9 months ended Sep. 30, 2015 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Income | Retained Earnings |
Balance (in shares) at Dec. 31, 2014 | 75,536,741 | ||||
Balance at Dec. 31, 2014 | $ 947,285 | $ 76 | $ 576,186 | $ (28) | $ 371,051 |
Increase (Decrease) in Stockholders' Equity | |||||
Unrealized loss on investments available for sale, net of tax | (10) | (10) | |||
Net Income (Loss) Attributable to Parent | (6,518) | (6,518) | |||
Stock-based compensation | 3,780 | 3,780 | |||
Vesting of restricted common stock, net of restricted common stock used to fund employee income tax withholding due upon vesting (in shares) | 165,959 | ||||
Vesting of restricted common stock, net of restricted common stock used to fund employee income tax withholding due upon vesting | (1,038) | $ 0 | (1,038) | ||
Balance (in shares) at Sep. 30, 2015 | 75,702,700 | ||||
Balance at Sep. 30, 2015 | $ 943,499 | $ 76 | $ 578,928 | $ (38) | $ 364,533 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Reconciliation of net income to net cash provided by operating activities: | ||
Net income | $ (6,518) | $ 3,970 |
Deferred income taxes | (5,136) | (31) |
Items not affecting cash: | ||
Depreciation, depletion, and accretion | 61,028 | 59,630 |
Stock-based compensation | 3,780 | 3,220 |
Lower-of-cost-or-market inventory adjustments | 10,063 | 8,110 |
Other | 1,593 | 172 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable, net | 7,203 | (11,722) |
Other receivables, net | 385 | 1,794 |
Refundable income taxes | (84) | 15,196 |
Inventory, net | (34,385) | 15,446 |
Prepaid expenses and other assets | (1,117) | (3) |
Accounts payable, accrued liabilities, and accrued employee compensation and benefits | 5,642 | 9,995 |
Other liabilities | 1,138 | (942) |
Net cash provided by operating activities | 43,592 | 104,835 |
Cash Flows from Investing Activities: | ||
Additions to property, plant, equipment, and mineral properties | (36,982) | (55,325) |
Purchases of investments | (78,571) | (7) |
Proceeds from sale of investments | 30,088 | 21,547 |
Net cash used in investing activities | (85,465) | (33,785) |
Cash Flows from Financing Activities: | ||
Debt issuance costs | (356) | 0 |
Employee tax withholding paid for restricted stock upon vesting | (1,038) | (611) |
Net cash used in financing activities | (1,394) | (611) |
Net Change in Cash and Cash Equivalents | (43,267) | 70,439 |
Cash and Cash Equivalents, beginning of period | 67,589 | 394 |
Cash and Cash Equivalents, end of period | 24,322 | 70,833 |
Net cash paid (refunded) during the period for: | ||
Interest, net of $0 million, and $0.4 million of capitalized interest | 3,281 | 2,946 |
Income taxes | 25 | (16,304) |
Accrued purchases for property, plant, equipment, and mineral properties | $ 710 | $ 4,129 |
CONSOLIDATED STATEMENTS OF CAS8
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Cash Flows [Abstract] | ||
Interest Paid, Capitalized | $ 0 | $ 0.4 |
COMPANY BACKGROUND
COMPANY BACKGROUND | 9 Months Ended |
Sep. 30, 2015 | |
Company Background Disclosure [Abstract] | |
COMPANY BACKGROUND | COMPANY BACKGROUND We are the only producer of muriate of potash (“potassium chloride” or “potash”) in the United States and one of two producers of langbeinite ("sulfate of potash magnesia"), which we market and sell as Trio ® . We sell potash and Trio ® primarily into the agricultural market as a fertilizer. We also sell these products into the animal feed market as a nutritional supplement and sell potash into the industrial market as a component in drilling and fracturing fluids for oil and gas wells and other industrial inputs. Our revenues are generated exclusively from the sale of potash and Trio ® . We also produce salt and magnesium chloride from our potash mining processes, the sales of which are accounted for as by-product credits to our cost of sales. These by-product credits represented approximately 2% to 3% of total cost of goods sold in each of the last three years. We own three solution mining facilities and two conventional underground mining facilities that we utilize for producing potash. Our solution mining production comes from our HB solar solution mine near Carlsbad, New Mexico, a solar solution mine near Moab, Utah, and a solar brine recovery mine in Wendover, Utah. Our conventional production comes from our underground West and East mines near Carlsbad, New Mexico. We also operate the North compaction facility near Carlsbad, New Mexico, which services the West and HB mines. Trio ® production comes from underground conventional mining of a mixed ore body that contains both potash and langbeinite, which is mined and processed at the East facility near Carlsbad, New Mexico. We manage sales and marketing operations centrally. This allows us to evaluate the product needs of our customers and then centrally determine which of our production facilities to use to fill customers’ orders in a manner designed to realize the highest average net realized sales price per ton. We calculate average net realized sales price per ton by deducting freight costs from gross revenues and then by dividing this result by tons of product sold during the period. We also monitor product inventory levels and overall production costs centrally. We have one reporting segment being the extraction, production, and sale of potassium-related products. Our extraction and production operations are conducted entirely in the continental United States. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation —Our consolidated financial statements include our accounts and those of our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation of interim financial information, have been included. Use of Estimates —The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results may differ significantly from these estimates under different assumptions or conditions. Significant estimates include, but are not limited to, those for proven and probable mineral reserves, the related present value of estimated future net cash flows, useful lives of plant assets, asset retirement obligations, normal inventory production levels, inventory valuations, the valuation of equity awards, the valuation of receivables, valuation of our deferred tax assets and estimated blended income tax rates utilized in the current and deferred income tax calculations. There are numerous uncertainties inherent in estimating quantities of proven and probable reserves, projecting future rates of production, and the timing of development expenditures. Future mineral prices may vary significantly from the prices in effect at the time the estimates are made, as may estimates of future operating costs. The estimate of proven and probable mineral reserves, the related present value of estimated future cash flows, and useful lives of plant assets can affect various other items including depletion, the net carrying value of our mineral properties, the useful lives of related property, plant, and equipment, depreciation expense, and estimates associated with recoverability of long-lived assets and asset retirement obligations. Specific to income tax items, we experience fluctuations in the valuation of the deferred tax assets and liabilities due to changing state income tax rates and the blend of state tax rates. Revenue Recognition —Revenue is recognized when evidence of an arrangement exists, risks and rewards of ownership have been transferred to customers, which is generally when title passes, the selling price is fixed and determinable, and collection is reasonably assured. Title passes at the designated shipping point for the majority of sales, but, in a few cases, title passes at the delivery destination. The shipping point may be the plant, a distribution warehouse, a customer warehouse, or a port. Title passes for some international shipments upon payment by the purchaser; however, revenue is not recognized for these transactions until shipment because the risks and rewards of ownership have not transferred pursuant to a contractual arrangement. Prices are generally set at the time of, or prior to, shipment. In cases where the final price is determined upon resale of the product by the customer, revenue is deferred until the final sales price is known. Sales are reported on a gross basis. We quote prices to customers both on a delivered basis and on the basis of pick-up at our plants and warehouses. When a sale occurs on a delivered basis, we incur and, in turn, bill the customer and record as gross revenue the product sales value, freight, packaging, and certain other distribution costs. Many customers, however, arrange and pay for these costs directly and, in these situations, only the product sales are included in gross revenues. By-Product Credits —When by-product inventories are sold, we record the sale of by-products as a credit to cost of goods sold. Inventory— Inventory consists of product and by-product stocks that are ready for sale; mined ore; potash in evaporation ponds, which is considered work-in-process; and parts and supplies inventory. Product and by-product inventory cost is determined using the lower of weighted average cost or estimated net realizable value and includes direct costs, maintenance, operational overhead, depreciation, depletion, and equipment lease costs applicable to the production process. Direct costs, maintenance, and operational overhead include labor and associated benefits. We evaluate our production levels and costs to determine if any should be deemed abnormal, and therefore excluded from inventory costs, under generally accepted accounting principles. The assessment of normal production levels is highly judgmental and is unique to each quarter. We model normal production levels and evaluate historical ranges of production by operating plant in assessing what is deemed to be normal. Property, Plant, Equipment, Mineral Properties and Development Costs —Property, plant, and equipment are stated at historical cost. Expenditures for property, plant, and equipment relating to new assets or improvements are capitalized, provided the expenditure extends the useful life of an asset or extends the asset’s functionality. Property, plant, and equipment are depreciated under the straight-line method using estimated useful lives. The estimated useful lives of property, plant, and equipment are evaluated periodically as changes in estimates occur. No depreciation is taken on assets classified as construction in progress until the asset is placed into service. Gains and losses are recorded upon retirement, sale, or disposal of assets. Maintenance and repair costs are recognized as period costs when incurred. Capitalized interest, to the extent of debt outstanding, is calculated and capitalized on assets that are being constructed, drilled, or built or that are otherwise classified as construction in progress. Mineral properties and development costs, which are referred to collectively as mineral properties, include acquisition costs, the cost of drilling production wells, and the cost of other development work, all of which are capitalized. Depletion of mineral properties is calculated using the units-of-production method over the estimated life of the relevant ore body. The lives of reserves used for accounting purposes are shorter than current reserve life determinations due to uncertainties inherent in long-term estimates. These reserve life estimates have been prepared by us and reviewed and independently determined by mine consultants. Tons of potash and langbeinite in the proven and probable reserves are expressed in terms of expected finished tons of product to be realized, net of estimated losses. Market price fluctuations of potash or Trio ® , as well as increased production costs or reduced recovery rates, could render proven and probable reserves containing relatively lower grades of mineralization uneconomic to exploit and might result in a reduction of reserves. In addition, the provisions of our mineral leases, including royalty provisions, are subject to periodic readjustment by the state and federal government, which could affect the economics of our reserve estimates. Significant changes in the estimated reserves could have a material impact on our results of operations and financial position. Recoverability of Long-Lived Assets —We evaluate our long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amount may not be recoverable. An impairment is considered to exist if an asset group's total estimated net future cash flows on an undiscounted basis are less than the carrying amount of the related asset. An impairment loss is measured and recorded based on the discounted estimated future cash flows. Changes in significant assumptions underlying future cash flow estimates or fair values of asset groups may have a material effect on our financial position and results of operations. Sales price is a significant element of any cash flow estimate, particularly for higher cost operations. Fair Value of Financial Instruments —Our financial instruments include cash and cash equivalents, short-term and long-term investments, restricted cash, accounts receivable, refundable income taxes, and accounts payable. These instruments are carried at cost, which approximates fair value due to the short-term maturities of the instruments. All available-for-sale investments are carried at fair value. Allowances for doubtful accounts are recorded against the accounts receivable balance to estimate net realizable value. The fair value of the long-term debt is estimated using discounted cash flow analysis based on current borrowing rates for debt with similar remaining maturities and ratings. Although there are no amounts currently outstanding under our unsecured credit facility, any borrowings that become outstanding would bear interest at a floating rate and therefore be recorded at their estimated fair value. Earnings per Share —Basic net income or loss per common share of stock is calculated by dividing net income or loss available to common stockholders by the weighted average basic common shares outstanding for the respective period. Diluted net income or loss per common share of stock is calculated by dividing net income or loss by the weighted average diluted common shares outstanding, which includes the effect of potentially dilutive securities. Potentially dilutive securities for the diluted earnings or loss per share calculation consist of awards of non-vested restricted shares of common stock, non-vested performance units, and non-qualified stock options. The dilutive effect of stock based compensation arrangements are computed using the treasury stock method. Following the lapse of the vesting period of restricted shares of common stock, the shares are considered issued and therefore are included in the number of issued and outstanding shares for purposes of these calculations. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Potentially dilutive securities, including non-vested restricted common stock, stock options, and performance units, are excluded from the diluted weighted average shares outstanding computation in periods in which they have an anti-dilutive effect, such as when there is a net loss. The treasury stock method is used to measure the dilutive impact of non-vested restricted common stock, stock options outstanding, and performance units. The following table shows the shares that have an anti-dilutive effect and are excluded from the diluted weighted average shares outstanding computations: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Anti-dilutive effect of non-vested restricted common stock 467,388 535,668 471,239 — Anti-dilutive effect of stock options outstanding 288,673 329,116 309,602 333,129 Anti-dilutive effect of performance units 194,375 18,372 158,367 — The following table sets forth the calculation of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net (loss) income $ (8,110 ) $ (1,236 ) $ (6,518 ) $ 3,970 Basic weighted average common shares outstanding 75,701 75,528 75,658 75,496 Add: Dilutive effect of non-vested restricted common stock — — — 102 Add: Dilutive effect of performance units — — — 13 Diluted weighted average common shares outstanding 75,701 75,528 75,658 75,611 (Loss) Earnings per share: Basic $ (0.11 ) $ (0.02 ) $ (0.09 ) $ 0.05 Diluted $ (0.11 ) $ (0.02 ) $ (0.09 ) $ 0.05 |
CASH, CASH EQUIVALENTS, AND INV
CASH, CASH EQUIVALENTS, AND INVESTMENTS | 9 Months Ended |
Sep. 30, 2015 | |
Cash, Cash Equivalents, and Investments Disclosure [Abstract] | |
CASH, CASH EQUIVALENTS, AND INVESTMENTS | CASH, CASH EQUIVALENTS, AND INVESTMENTS The following table summarizes the fair value of our cash and investments held in our portfolio, recorded as cash and cash equivalents or short-term or long-term investments as of September 30, 2015 , and December 31, 2014 (in thousands): September 30, 2015 December 31, 2014 Cash $ 19,924 $ 16,506 Commercial paper and money market accounts 4,398 51,083 Total cash and cash equivalents $ 24,322 $ 67,589 Corporate bonds $ 55,585 $ 9,432 Certificates of deposit and time deposits 1,005 1,002 Total short-term investments $ 56,590 $ 10,434 Corporate bonds $ 13,028 $ 11,856 Total long-term investments $ 13,028 $ 11,856 Total cash, cash equivalents, and investments $ 93,940 $ 89,879 The following tables summarize the cost basis, unrealized gains and losses, and fair value of our available-for-sale investments held in our portfolio as of September 30, 2015 , and December 31, 2014 (in thousands): September 30, 2015 Unrealized Cost Basis Gain Loss Fair Value Corporate bonds $ 68,676 $ 5 $ (68 ) $ 68,613 Certificates of deposit and time deposits 1,005 — — 1,005 Total available-for-sale securities $ 69,681 $ 5 $ (68 ) $ 69,618 December 31, 2014 Unrealized Cost Basis Gain Loss Fair Value Corporate bonds $ 21,335 $ 1 $ (48 ) $ 21,288 Certificates of deposit and time deposits 1,002 — — 1,002 Total available-for-sale securities $ 22,337 $ 1 $ (48 ) $ 22,290 |
INVENTORY AND LONG-TERM PARTS I
INVENTORY AND LONG-TERM PARTS INVENTORY | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
INVENTORY AND LONG-TERM PARTS INVENTORY | INVENTORY AND LONG-TERM PARTS INVENTORY The following summarizes our inventory, recorded at the lower of weighted average cost or estimated net realizable value, as of September 30, 2015 , and December 31, 2014 , respectively (in thousands): September 30, 2015 December 31, 2014 Finished goods product inventory $ 60,582 $ 44,137 In-process mineral inventory 24,231 19,584 Total product inventory 84,813 63,721 Current parts inventory, net 21,765 20,373 Total current inventory, net 106,578 84,094 Long-term parts inventory, net 18,204 16,366 Total inventory, net $ 124,782 $ 100,460 Parts inventories are shown net of any required allowances. During the nine months ended September 30, 2015 , and 2014 , we recorded charges of approximately $10.1 million and $8.1 million , respectively, as a result of routine assessments of the lower of weighted average cost or estimated net realizable value on our finished goods product inventory. During the third quarter of 2015, we received an order issued by MSHA relating to maintenance issues and salt build-up in the ore hoisting shaft at our West mine. Upon issuance of the order, we suspended production at the West mine for 15 days while we took corrective actions to resolve the issues. As a result, potash production from our West mine was abnormally low during this period. In addition, since production resumed in mid-September, we continue to perform incremental maintenance on the ore hoisting shaft, during which time production at the West mine is temporarily suspended. We expect this incremental maintenance to continue into the fourth quarter of 2015. Also during the third quarter of 2015, we temporarily suspended potash production at our East facility for a total of seven days as we performed two separate langbeinite-only testing runs. As a result of the temporary suspensions of production, we determined that approximately $4.9 million and $2.0 million of production costs at our West and East facilities, respectively, would have been allocated to additional tons produced, assuming we had been operating at normal production rates. Accordingly, these costs were excluded from our inventory values and instead expensed in the third quarter of 2015 as period production costs. We compare actual production relative to what we estimated could have been produced if we had not incurred the temporary production suspensions and lower operating rates in order to determine the abnormal cost adjustment. |
PROPERTY, PLANT, EQUIPMENT, AND
PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant, Equipment, and Mineral Properties | “Property, plant, equipment, and mineral properties, net" were comprised of the following (in thousands): September 30, 2015 December 31, 2014 Buildings and plant $ 271,354 $ 268,032 Machinery and equipment 544,491 529,358 Vehicles 13,677 13,799 Office equipment and improvements 19,857 19,260 Ponds and land improvements 74,759 73,933 Total depreciable assets 924,138 904,382 Accumulated depreciation (325,690 ) (271,294 ) Total depreciable assets, net $ 598,448 $ 633,088 Mineral properties and development costs $ 166,735 $ 163,197 Accumulated depletion (21,020 ) (17,544 ) Total depletable assets, net $ 145,715 $ 145,653 Land 909 909 Construction in progress $ 12,987 $ 5,600 Total property, plant, equipment, and mineral properties, net $ 758,059 $ 785,250 |
Depreciation, Depletion, and Amortization [Policy Text Block] | We incurred the following expenses for depreciation, depletion, and accretion, including expenses capitalized into inventory, for the following periods (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Depreciation $ 18,893 $ 18,868 $ 56,257 $ 55,764 Depletion 1,038 834 3,499 2,649 Accretion 424 405 1,272 1,217 Total incurred $ 20,355 $ 20,107 $ 61,028 $ 59,630 |
PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES | PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES “Property, plant, equipment, and mineral properties, net" were comprised of the following (in thousands): September 30, 2015 December 31, 2014 Buildings and plant $ 271,354 $ 268,032 Machinery and equipment 544,491 529,358 Vehicles 13,677 13,799 Office equipment and improvements 19,857 19,260 Ponds and land improvements 74,759 73,933 Total depreciable assets 924,138 904,382 Accumulated depreciation (325,690 ) (271,294 ) Total depreciable assets, net $ 598,448 $ 633,088 Mineral properties and development costs $ 166,735 $ 163,197 Accumulated depletion (21,020 ) (17,544 ) Total depletable assets, net $ 145,715 $ 145,653 Land 909 909 Construction in progress $ 12,987 $ 5,600 Total property, plant, equipment, and mineral properties, net $ 758,059 $ 785,250 We incurred the following expenses for depreciation, depletion, and accretion, including expenses capitalized into inventory, for the following periods (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Depreciation $ 18,893 $ 18,868 $ 56,257 $ 55,764 Depletion 1,038 834 3,499 2,649 Accretion 424 405 1,272 1,217 Total incurred $ 20,355 $ 20,107 $ 61,028 $ 59,630 |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Unsecured Credit Facility — We have an unsecured credit facility, led by U.S. Bank, as administrative agent, and Wells Fargo Bank, as syndication agent. This unsecured credit facility provides a revolving credit facility of up to $250 million . The actual amount available to us may be limited by our leverage ratio, which may not exceed 3.5 , and our fixed charge coverage ratio, which may not be below 1.3 . As of September 30, 2015 , $187 million of the facility was available to us. Under the facility, the leverage ratio is defined as the ratio of our total funded indebtedness to adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization, and certain other expenses, as defined in the credit facility) for the prior four fiscal quarters. The fixed charge coverage ratio is defined as the ratio of adjusted EBITDA (less $40 million for maintenance capital expenditures and cash paid for income taxes, as defined in the credit facility) for the prior four fiscal quarters to fixed charges. These ratios and other restricted covenants under the facility could limit our ability to engage in activities that we believe are in our long-term best interests or limit our ability to access the full amount of the facility. For example, if adjusted EBITDA remains at or below current levels with no change to indebtedness, these ratios would remain at a level where less than $250 million is available to us. Based on current market conditions, we expect that the total amount available to us under the facility will continue to be limited at or below the September 30, 2015, level (including to zero) for the foreseeable future. If current market conditions continue and with our expected EBITDA levels, we anticipate that we will not be able to maintain compliance with our fixed charge coverage ratio through 2016. As a result, we are proactively working with our lenders and evaluating options for maintaining compliance, which will likely include requesting covenant amendments, waivers or forbearances and possible reduction of our debt levels (including the payment of prepayment penalties). Our failure to comply with these ratios and covenants under the facility would result in an event of default that, if not cured or waived, could result in the acceleration of all outstanding indebtedness. In addition, the amount available under the facility would be reduced to zero. The facility was amended in August 2015 to extend the maturity date by two years to August 2020. The facility is unsecured and is guaranteed by our material subsidiaries. We are currently in compliance with the covenants under the facility. We occasionally borrow and repay amounts under the facility for near-term working capital needs and may do so in the future. As of September 30, 2015, there were no amounts outstanding under the facility. Unsecured Senior Notes —In April 2013, we issued $150 million aggregate principal amount of unsecured senior notes ("the Notes") pursuant to a note purchase agreement entered into in August 2012. The Notes consist of the following series: • $60 million of 3.23% Senior Notes, Series A, due April 16, 2020 • $45 million of 4.13% Senior Notes, Series B, due April 14, 2023 • $45 million of 4.28% Senior Notes, Series C, due April 16, 2025 The Notes are senior unsecured obligations and rank equally in right of payment with any other unsubordinated unsecured indebtedness of ours. The Notes are subject to the same leverage ratio and fixed charge coverage ratio as apply under the credit facility. As described above, these ratios and other restricted covenants under the Notes could limit our ability to engage in activities that we believe are in our long-term best interests. In addition, if current market conditions continue and with our expected EBITDA levels, we anticipate that we will not be able to maintain compliance with our fixed charge coverage ratio through 2016. As a result, we are proactively working with our lenders and evaluating options for maintaining compliance, which will likely include requesting covenant amendments, waivers or forbearances and possible reduction of our debt levels (including the payment of prepayment penalties). Our failure to comply with these ratios and covenants under the Notes would result in an event of default that, if not cured or waived, could result in the acceleration of all outstanding indebtedness. The obligations under the Notes are unconditionally guaranteed by our material subsidiaries. We were in compliance with the covenants under the Notes as of September 30, 2015 . Interest is paid semiannually on April 16 and October 16 of each year. Interest expense is recorded net of any capitalized interest associated with investments in capital projects. We incurred gross interest expense of $5.0 million for both the nine months ended September 30, 2015 , and 2014 . We capitalized $0.2 million and $0.4 million interest during the nine months ended September 30, 2015 , and 2014 , respectively. |
ASSET RETIREMENT OBLIGATION
ASSET RETIREMENT OBLIGATION | 9 Months Ended |
Sep. 30, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
ASSET RETIREMENT OBLIGATION | ASSET RETIREMENT OBLIGATION We recognize an estimated liability for future costs associated with the abandonment and reclamation of our mining properties. A liability for the fair value of an asset retirement obligation and a corresponding increase to the carrying value of the related long-lived asset are recorded as the mining operations occur or the assets are acquired. Our asset retirement obligation is based on the estimated cost to abandon and reclaim the mining operations, the economic life of the properties, and federal and state regulatory requirements. The liability is discounted using credit adjusted risk-free rate estimates at the time the liability is incurred or when there are upward revisions to estimated costs. The credit adjusted risk-free rates used to discount our abandonment liabilities range from 6.9% to 8.5% . Revisions to the liability occur due to construction of new or expanded facilities, changes in estimated abandonment costs or economic lives, or if federal or state regulators enact new requirements regarding the abandonment or reclamation of mines. Following is a table of the changes to our asset retirement obligation for the following periods (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Asset retirement obligation, at beginning of period $ 22,869 $ 21,737 $ 22,037 $ 21,047 Liabilities settled (70 ) (3 ) (86 ) (125 ) Liabilities incurred — — — — Changes in estimated obligations — — — — Accretion of discount 424 405 1,272 1,217 Total asset retirement obligation, at end of period $ 23,223 $ 22,139 $ 23,223 $ 22,139 The current portion of the asset retirement obligation of $1.6 million is included in "Other" current liabilities on the condensed consolidated balance sheets as of September 30, 2015 , and December 31, 2014 . The undiscounted amount of asset retirement obligation is $57.6 million as of September 30, 2015 . |
COMPENSATION PLANS
COMPENSATION PLANS | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
COMPENSATION PLANS | COMPENSATION PLANS Cash Bonus Plan —We have cash bonus plans that allow participants to receive varying percentages of their aggregate base salary. Any awards under the cash bonus plans are based on a variety of elements related to our performance in certain production, operational, financial, and other areas, as well as the participants’ individual performance. We accrue cash bonus expense related to the current year’s performance. Equity Incentive Compensation Plan —Our Board of Directors and stockholders adopted a long-term incentive compensation plan called the Intrepid Potash, Inc. Equity Incentive Plan, as Amended and Restated (the "Plan"). We have issued common stock, restricted shares of common stock, performance units, and non-qualified stock option awards under the Plan. As of September 30, 2015 , the following awards were outstanding under the plan: 462,834 shares of non-vested restricted shares of common stock; non-vested performance units representing 383,447 shares of common stock; and options to purchase 249,830 shares of common stock. As of September 30, 2015 , approximately 3.0 million shares of common stock remained available for issuance under the Plan. Common Stock —On an annual basis, under the Plan, the Compensation Committee of the Board of Directors (the "Compensation Committee") has approved the award of shares of common stock to the non-employee members of the Board of Directors as compensation for service for the period ending on the date of our annual stockholders’ meeting for the following year. These shares of common stock were granted without restrictions and vested immediately. Non-vested Restricted Shares of Common Stock —Under the Plan, grants of non-vested restricted shares of common stock have been awarded to executive officers, other key employees, and consultants. The awards contain service conditions associated with continued employment or service. The terms of the non-vested restricted shares of common stock provide voting and regular dividend rights to the holders of the awards. Upon vesting, the restrictions on the restricted shares of common stock lapse and the shares are considered issued and outstanding. Since 2009, the Compensation Committee has granted restricted shares of common stock under the Plan in the first quarter of each year to our executive management team and other selected employees as part of an annual equity award program. These awards vest ratably over three years . From time to time, the Compensation Committee grants restricted shares of common stock to newly hired or promoted employees or other employees or consultants who have achieved extraordinary personal performance objectives. These restricted shares of common stock generally vest over one - to four -year periods. In measuring compensation expense associated with the grant of non-vested restricted shares of common stock, we use the fair value of the award, determined as the closing stock price for our common stock on the grant date. Compensation expense is recorded monthly over the vesting period of the award. Total compensation expense related to the non-vested restricted shares of common stock awards was $0.8 million and $0.7 million for the three months ended September 30, 2015 , and 2014 , respectively. Total compensation expense related to the non-vested restricted shares of common stock awards was $2.5 million and $2.6 million for the nine months ended September 30, 2015 , and 2014 , respectively. These amounts are net of estimated forfeiture adjustments. As of September 30, 2015 , there was $4.9 million of total remaining unrecognized compensation expense related to non-vested restricted shares of common stock that will be expensed through 2018. A summary of activity relating to our non-vested restricted shares of common stock for the nine months ended September 30, 2015 , is presented below. Weighted Average Shares Non-vested restricted shares of common stock, beginning of period 464,769 $ 16.49 Granted 237,256 $ 14.28 Vested (201,261 ) $ 17.76 Forfeited (37,930 ) $ 15.13 Non-vested restricted shares of common stock, end of period 462,834 $ 14.91 Performance Units — In 2015, the Compensation Committee granted at-risk performance units under the Plan to a member of our executive team as part of their annual compensation package. The performance units vest in February 2018, and payout, if any, is based on market-based conditions relating to one-, two- and three-year performance periods beginning on the grant date. A total of 378,150 shares of common stock are available for future payout under these performance units, subject to continued employment through the vesting date. In 2013 and 2012, the Compensation Committee granted performance units under the Plan to certain members of our executive management team as part of the annual equity award program. The performance units vest ratably over three years , and payout, if any, is based on operational- and market-based conditions relating to the year of grant. The time frames for meeting both the operational- and market-based conditions of the 2013 and 2012 grants have passed, and a total of 5,297 shares of common stock are available for future payout under these performance units, subject to continued employment of the individual grantees through the vesting dates. Non-qualified Stock Options —From 2009 to 2011, the Compensation Committee issued non-qualified stock options under the Plan in the first quarter of each year to our executive management and other selected employees as part of our annual award program. These stock options generally vested ratably over three years . In measuring compensation expense for options, we estimated the fair value of the award on the grant dates using the Black‑Scholes option valuation model. Option valuation models require the input of highly subjective assumptions, including the expected volatility of the price of the underlying stock. As of March 31, 2014, all outstanding stock options were fully vested. Realized tax benefits from tax deductions for exercised options in excess of the deferred tax asset attributable to stock compensation for these options are recorded as “excess tax benefits” when the tax deductions occur. A summary of our stock option activity for the nine months ended September 30, 2015 , is as follows: Shares Weighted Average Exercise Price Aggregate Intrinsic Value (1) Weighted Average Remaining Contractual Life Weighted Average Grant-Date Fair Value Outstanding non-qualified stock options, end of period 249,830 $25.84 $— 3.7 $12.76 Vested or expected to vest, end of period 249,830 $25.84 $— 3.7 $12.76 Exercisable non-qualified stock options, end of period 249,830 $25.84 $— 3.7 $12.76 (1) The intrinsic value of a stock option is the amount by which the market value exceeds the exercise price as of the end of the period presented. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our effective tax rate is impacted primarily by the amount of taxable income associated with each jurisdiction in which our income is subject to income tax, permanent differences between the financial statement carrying amounts and tax bases of assets and liabilities. A summary of the provision for income taxes is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Current portion of income tax (benefit) expense $ 39 $ — $ 5 $ (1,108 ) Deferred portion of income tax benefit (7,891 ) (3 ) (5,136 ) (31 ) Total income tax benefit $ (7,852 ) $ (3 ) $ (5,131 ) $ (1,139 ) Effective tax rate 49.2 % 0.3 % 44.0 % (40.3 )% During the three and nine months ended September 30, 2015 , our effective tax rate differed from the statutory rate primarily as a result of the benefit from estimated depletion deductions that exceed the tax basis in the mineral reserves. The size of the estimated depletion deductions relative to pre-tax income (loss) levels had, and is expected to have, a pronounced impact on our effective tax rate in 2015. During the nine months ended September 30, 2014 , in addition to the items noted above, we also benefited from a discrete adjustment related to the reversal of a $1.7 million valuation allowance related to our New Mexico net operating loss carry forwards, as those carry forwards became realizable based on legislation passed by the State of New Mexico in the first quarter of 2014. The blended state tax rate applied to the deferred tax calculation is subject to change due to changes in state laws and changes in the mix of our business and the states in which we have a taxable relationship. This creates fluctuations in the value of our net deferred tax asset. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Marketing Agreements —We have a marketing agreement appointing PCS Sales (USA), Inc. (“PCS Sales”) as our exclusive sales representative for potash export sales, with the exception of sales to Canada and Mexico, and appointing PCS Sales as our non-exclusive sales representative for potash sales into Mexico. Trio ® is also marketed under this arrangement. This agreement is cancelable with 30 days ' written notice. Reclamation Deposits and Surety Bonds —As of September 30, 2015 , we had $18.7 million of security placed principally with the State of Utah and the Bureau of Land Management for eventual reclamation of our various facilities. Of this total requirement, as of September 30, 2015 , $0.5 million consisted of long-term restricted cash deposits reflected in “Other” long-term assets on the condensed consolidated balance sheets, and $18.3 million was secured by surety bonds issued by an insurer. The surety bonds are held in place by an annual fee paid to the issuer. We may be required to post additional security to fund future reclamation obligations as reclamation plans are updated or as governmental entities change requirements. New Mexico Employment Credits —Beginning in 2011, based on an approval and payment of an application with the State of New Mexico, we began recording an estimate of refundable employment-related credits for qualified wages paid in New Mexico, known as the New Mexico High Wage Jobs Credit. The estimated recoverable value of these credits has been, and continues to be, reflected as a reduction to production costs and amounts yet to be collected are recorded in “Other receivables, net” in the condensed consolidated balance sheets in the same period in which the credit is earned. In the third quarter of 2013, the New Mexico Taxation and Revenue Department denied our application to receive the New Mexico High Wage Jobs Credit for certain prior years' filings. Considering the uncertainty associated with collection of these credits, we recorded an additional allowance of approximately $2.8 million in the third quarter of 2013, for credits relating to the denied periods in order to reflect the denial of the claimed credits. In March 2014, as a result of our continuing efforts to collect these credits, we received notification from the New Mexico Taxation and Revenue Department that $5.9 million of credits previously denied were approved. Accordingly, during the first quarter of 2014, we reversed $2.9 million of the previously established allowance to reflect the collectability of these credits. These credits are typically considered in our product inventory calculations as they relate to the labor associated with operations. As the inventory associated with the periods during which the credits were originally earned has since been sold, we recorded the reversal of the allowance as "Other operating income" in the condensed consolidated statement of operations for the nine months ended September 30, 2014 . As of September 30, 2015 , we have a receivable of $0.1 million , net of an allowance of $0.5 million , associated with the New Mexico High Wage Jobs Credits, and we intend to continue to vigorously pursue recovery of all unpaid credits. Legal —We are subject to claims and legal actions in the ordinary course of business. While there are uncertainties in predicting the outcome of any claim or legal action, we believe that the ultimate resolution of these claims or actions is not reasonably likely to have a material adverse effect on our financial condition, results of operations or cash flows. Future Operating Lease Commitments —We have operating leases for land, mining and other operating equipment, an airplane, offices, and railcars, with original terms ranging up to 20 years. In May 2015, we exercised our option to terminate our existing corporate office lease effective May 1, 2016. Under the provisions of our existing lease, we incurred a termination penalty of $1.2 million which we expect will be payable in the first quarter of 2016. The termination penalty charge was included in selling and administrative expense in the second quarter of 2015. Rental and lease expenses follow for the indicated periods, excluding the lease termination penalty (in thousands): 2015 For the three months ended September 30, 2015 $ 2,081 For the nine months ended September 30, 2015 $ 5,802 2014 For the three months ended September 30, 2014 $ 1,776 For the nine months ended September 30, 2014 $ 4,986 |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE MEASUREMENTS We applied the provisions of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification™ (“ASC”) Topic 820, Fair Value Measurements and Disclosures, for all financial assets and liabilities measured at fair value on a recurring basis. The topic establishes a framework for measuring fair value and requires disclosures about fair value measurements. ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The topic establishes market or observable inputs as the preferred sources of values, followed by assumptions based on hypothetical transactions in the absence of market inputs. The topic also establishes a hierarchy for grouping these assets and liabilities based on the significance level of the following inputs, as follows: • Level 1—Quoted prices in active markets for identical assets and liabilities. • Level 2—Quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar instruments in markets that are not active, and model‑derived valuations whose inputs are observable or whose significant value drivers are observable. • Level 3—Significant inputs to the valuation model are unobservable. The following is a listing of our assets and liabilities required to be measured at fair value on a recurring basis and where they are classified within the hierarchy as of September 30, 2015 , and December 31, 2014 (in thousands): Fair Value at Reporting Date Using September 30, 2015 Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Observable Inputs Significant Unobservable Inputs Investments Corporate bonds $ 68,613 $ — $ 68,613 $ — Fair Value at Reporting Date Using December 31, 2014 Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Observable Inputs Significant Unobservable Inputs Investments Corporate bonds $ 21,288 $ — $ 21,288 $ — Financial assets or liabilities are categorized within the hierarchy based upon the lowest level of input that is significant to the fair value measurement. Below is a general description of our valuation methodologies for financial assets and liabilities, which are measured at fair value and are included on the condensed consolidated balance sheets. Our available-for-sale investments consist of corporate bonds that are valued using Level 2 inputs. Market pricing for these investments is obtained from an established financial markets data provider. The methods described above may result in a fair value estimate that may not be indicative of net realizable value or may not be reflective of future fair values and cash flows. While we believe that the valuation methods used are appropriate and consistent with the requirements of ASC Topic 820 and the methods used by other marketplace participants, we recognize that third parties may use different methodologies or assumptions to determine the fair value of certain financial instruments that could result in a different estimate of fair value at the reporting date. Financial Instruments —The carrying values and estimated fair values of our financial instruments as of September 30, 2015 , and December 31, 2014 , are as follows (in thousands): September 30, 2015 December 31, 2014 Carrying Value Fair Value Carrying Value Fair Value Long-term debt $ 150,000 $ 145,000 $ 150,000 $ 138,000 For cash and cash equivalents, certificate of deposit investments, accounts receivable, refundable income taxes, and accounts payable, the carrying amount approximates fair value because of the short-term maturity of these instruments. The estimated fair value of the long-term debt is estimated using a discounted cash flow analysis based on current borrowing rates for debt with similar remaining maturities and ratings (a Level 2 input) and is designed to approximate the amount at which the instruments could be exchanged in an arm's length transaction between knowledgeable willing parties. |
RESTRUCTURING CHARGE
RESTRUCTURING CHARGE | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring Charge [Abstract] | |
RESTRUCTURING CHARGE | RESTRUCTURING CHARGE In January 2014, in response to declining potash prices and completion of our major capital projects, we undertook a number of cost saving actions that were intended to better align our cost structure with the business environment. These initiatives included the elimination of approximately 7% of the workforce, reduction in the use of outside professionals, and cutbacks in other general and administrative areas. In early 2014, we also temporarily decreased executive and senior management compensation; we reinstated most executive and senior management salaries in mid-2014 and reinstated other compensation elements in 2015. For the nine months ended September 30, 2014 , we recognized a restructuring expense of $1.8 million , which is comprised primarily of severance-related payments. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which requires revenue to be recognized based on the amount an entity is expected to be entitled to for promised goods or services provided to customers. The standard also requires expanded disclosures regarding contracts with customers. The guidance in this standard supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition“, and most industry-specific guidance. This guidance is effective for us beginning January 1, 2018, with retrospective application required, subject to certain practical expedients. We are currently evaluating the requirements of this standard, and have not yet determined the impact on our results of operations or financial position. In April 2015, the FASB issued Accounting Standards Update No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” Under this standard we will present debt issuance costs in the balance sheet as a reduction from the related debt liability rather than as an asset. Amortization of such costs will continue to be reported as interest expense. This guidance is effective for us beginning January 1, 2016, but early adoption is allowed. We have not determined the period in which we will adopt the new guidance. Retrospective adoption is required. Upon adoption, our deferred financing costs will be reclassified from “Prepaid expenses and other current assets” and “Other assets, net" to “Long-term debt.” In July 2015, the FASB issued Accounting Standards Update No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory.” An entity using an inventory method other than last-in, first out or the retail inventory method should measure inventory at the lower of cost and net realizable value. The new guidance clarifies that net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation and is effective for us beginning January 1, 2017. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN23
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Our consolidated financial statements include our accounts and those of our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation of interim financial information, have been included. |
Use of Estimates | The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results may differ significantly from these estimates under different assumptions or conditions. Significant estimates include, but are not limited to, those for proven and probable mineral reserves, the related present value of estimated future net cash flows, useful lives of plant assets, asset retirement obligations, normal inventory production levels, inventory valuations, the valuation of equity awards, the valuation of receivables, valuation of our deferred tax assets and estimated blended income tax rates utilized in the current and deferred income tax calculations. There are numerous uncertainties inherent in estimating quantities of proven and probable reserves, projecting future rates of production, and the timing of development expenditures. Future mineral prices may vary significantly from the prices in effect at the time the estimates are made, as may estimates of future operating costs. The estimate of proven and probable mineral reserves, the related present value of estimated future cash flows, and useful lives of plant assets can affect various other items including depletion, the net carrying value of our mineral properties, the useful lives of related property, plant, and equipment, depreciation expense, and estimates associated with recoverability of long-lived assets and asset retirement obligations. Specific to income tax items, we experience fluctuations in the valuation of the deferred tax assets and liabilities due to changing state income tax rates and the blend of state tax rates. |
Revenue Recognition | Revenue is recognized when evidence of an arrangement exists, risks and rewards of ownership have been transferred to customers, which is generally when title passes, the selling price is fixed and determinable, and collection is reasonably assured. Title passes at the designated shipping point for the majority of sales, but, in a few cases, title passes at the delivery destination. The shipping point may be the plant, a distribution warehouse, a customer warehouse, or a port. Title passes for some international shipments upon payment by the purchaser; however, revenue is not recognized for these transactions until shipment because the risks and rewards of ownership have not transferred pursuant to a contractual arrangement. Prices are generally set at the time of, or prior to, shipment. In cases where the final price is determined upon resale of the product by the customer, revenue is deferred until the final sales price is known. Sales are reported on a gross basis. We quote prices to customers both on a delivered basis and on the basis of pick-up at our plants and warehouses. When a sale occurs on a delivered basis, we incur and, in turn, bill the customer and record as gross revenue the product sales value, freight, packaging, and certain other distribution costs. Many customers, however, arrange and pay for these costs directly and, in these situations, only the product sales are included in gross revenues. |
By-Product Credits | When by-product inventories are sold, we record the sale of by-products as a credit to cost of goods sold. |
Inventory, Policy | Inventory consists of product and by-product stocks that are ready for sale; mined ore; potash in evaporation ponds, which is considered work-in-process; and parts and supplies inventory. Product and by-product inventory cost is determined using the lower of weighted average cost or estimated net realizable value and includes direct costs, maintenance, operational overhead, depreciation, depletion, and equipment lease costs applicable to the production process. Direct costs, maintenance, and operational overhead include labor and associated benefits. We evaluate our production levels and costs to determine if any should be deemed abnormal, and therefore excluded from inventory costs, under generally accepted accounting principles. The assessment of normal production levels is highly judgmental and is unique to each quarter. We model normal production levels and evaluate historical ranges of production by operating plant in assessing what is deemed to be normal. |
Property, Plant, Equipment, Mineral Properties and Development Costs | Property, plant, and equipment are stated at historical cost. Expenditures for property, plant, and equipment relating to new assets or improvements are capitalized, provided the expenditure extends the useful life of an asset or extends the asset’s functionality. Property, plant, and equipment are depreciated under the straight-line method using estimated useful lives. The estimated useful lives of property, plant, and equipment are evaluated periodically as changes in estimates occur. No depreciation is taken on assets classified as construction in progress until the asset is placed into service. Gains and losses are recorded upon retirement, sale, or disposal of assets. Maintenance and repair costs are recognized as period costs when incurred. Capitalized interest, to the extent of debt outstanding, is calculated and capitalized on assets that are being constructed, drilled, or built or that are otherwise classified as construction in progress. Mineral properties and development costs, which are referred to collectively as mineral properties, include acquisition costs, the cost of drilling production wells, and the cost of other development work, all of which are capitalized. Depletion of mineral properties is calculated using the units-of-production method over the estimated life of the relevant ore body. The lives of reserves used for accounting purposes are shorter than current reserve life determinations due to uncertainties inherent in long-term estimates. These reserve life estimates have been prepared by us and reviewed and independently determined by mine consultants. Tons of potash and langbeinite in the proven and probable reserves are expressed in terms of expected finished tons of product to be realized, net of estimated losses. Market price fluctuations of potash or Trio ® , as well as increased production costs or reduced recovery rates, could render proven and probable reserves containing relatively lower grades of mineralization uneconomic to exploit and might result in a reduction of reserves. In addition, the provisions of our mineral leases, including royalty provisions, are subject to periodic readjustment by the state and federal government, which could affect the economics of our reserve estimates. Significant changes in the estimated reserves could have a material impact on our results of operations and financial position. |
Impairment or Disposal of Long-Lived Assets | We evaluate our long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amount may not be recoverable. An impairment is considered to exist if an asset group's total estimated net future cash flows on an undiscounted basis are less than the carrying amount of the related asset. An impairment loss is measured and recorded based on the discounted estimated future cash flows. Changes in significant assumptions underlying future cash flow estimates or fair values of asset groups may have a material effect on our financial position and results of operations. Sales price is a significant element of any cash flow estimate, particularly for higher cost operations. |
Fair Value of Financial Instruments | Our financial instruments include cash and cash equivalents, short-term and long-term investments, restricted cash, accounts receivable, refundable income taxes, and accounts payable. These instruments are carried at cost, which approximates fair value due to the short-term maturities of the instruments. All available-for-sale investments are carried at fair value. Allowances for doubtful accounts are recorded against the accounts receivable balance to estimate net realizable value. The fair value of the long-term debt is estimated using discounted cash flow analysis based on current borrowing rates for debt with similar remaining maturities and ratings. Although there are no amounts currently outstanding under our unsecured credit facility, any borrowings that become outstanding would bear interest at a floating rate and therefore be recorded at their estimated fair value. |
(Loss) Earnings per Share | Basic net income or loss per common share of stock is calculated by dividing net income or loss available to common stockholders by the weighted average basic common shares outstanding for the respective period. Diluted net income or loss per common share of stock is calculated by dividing net income or loss by the weighted average diluted common shares outstanding, which includes the effect of potentially dilutive securities. Potentially dilutive securities for the diluted earnings or loss per share calculation consist of awards of non-vested restricted shares of common stock, non-vested performance units, and non-qualified stock options. The dilutive effect of stock based compensation arrangements are computed using the treasury stock method. Following the lapse of the vesting period of restricted shares of common stock, the shares are considered issued and therefore are included in the number of issued and outstanding shares for purposes of these calculations. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Potentially dilutive securities, including non-vested restricted common stock, stock options, and performance units, are excluded from the diluted weighted average shares outstanding computation in periods in which they have an anti-dilutive effect, such as when there is a net loss. The treasury stock method is used to measure the dilutive impact of non-vested restricted common stock, stock options outstanding, and performance units. The following table shows the shares that have an anti-dilutive effect and are excluded from the diluted weighted average shares outstanding computations: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Anti-dilutive effect of non-vested restricted common stock 467,388 535,668 471,239 — Anti-dilutive effect of stock options outstanding 288,673 329,116 309,602 333,129 Anti-dilutive effect of performance units 194,375 18,372 158,367 — |
Schedule of Calculation of Basic and Diluted Loss or Earnings Per Share | The following table sets forth the calculation of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net (loss) income $ (8,110 ) $ (1,236 ) $ (6,518 ) $ 3,970 Basic weighted average common shares outstanding 75,701 75,528 75,658 75,496 Add: Dilutive effect of non-vested restricted common stock — — — 102 Add: Dilutive effect of performance units — — — 13 Diluted weighted average common shares outstanding 75,701 75,528 75,658 75,611 (Loss) Earnings per share: Basic $ (0.11 ) $ (0.02 ) $ (0.09 ) $ 0.05 Diluted $ (0.11 ) $ (0.02 ) $ (0.09 ) $ 0.05 |
CASH, CASH EQUIVALENTS, AND I25
CASH, CASH EQUIVALENTS, AND INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Cash, Cash Equivalents, and Investments Disclosure [Abstract] | |
Summary of Cash, Cash Equivalents, and Investments | The following table summarizes the fair value of our cash and investments held in our portfolio, recorded as cash and cash equivalents or short-term or long-term investments as of September 30, 2015 , and December 31, 2014 (in thousands): September 30, 2015 December 31, 2014 Cash $ 19,924 $ 16,506 Commercial paper and money market accounts 4,398 51,083 Total cash and cash equivalents $ 24,322 $ 67,589 Corporate bonds $ 55,585 $ 9,432 Certificates of deposit and time deposits 1,005 1,002 Total short-term investments $ 56,590 $ 10,434 Corporate bonds $ 13,028 $ 11,856 Total long-term investments $ 13,028 $ 11,856 Total cash, cash equivalents, and investments $ 93,940 $ 89,879 |
Schedule of Available-for-Sale Investments | The following tables summarize the cost basis, unrealized gains and losses, and fair value of our available-for-sale investments held in our portfolio as of September 30, 2015 , and December 31, 2014 (in thousands): September 30, 2015 Unrealized Cost Basis Gain Loss Fair Value Corporate bonds $ 68,676 $ 5 $ (68 ) $ 68,613 Certificates of deposit and time deposits 1,005 — — 1,005 Total available-for-sale securities $ 69,681 $ 5 $ (68 ) $ 69,618 December 31, 2014 Unrealized Cost Basis Gain Loss Fair Value Corporate bonds $ 21,335 $ 1 $ (48 ) $ 21,288 Certificates of deposit and time deposits 1,002 — — 1,002 Total available-for-sale securities $ 22,337 $ 1 $ (48 ) $ 22,290 |
INVENTORY AND LONG-TERM PARTS26
INVENTORY AND LONG-TERM PARTS INVENTORY (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Summary of Inventory | The following summarizes our inventory, recorded at the lower of weighted average cost or estimated net realizable value, as of September 30, 2015 , and December 31, 2014 , respectively (in thousands): September 30, 2015 December 31, 2014 Finished goods product inventory $ 60,582 $ 44,137 In-process mineral inventory 24,231 19,584 Total product inventory 84,813 63,721 Current parts inventory, net 21,765 20,373 Total current inventory, net 106,578 84,094 Long-term parts inventory, net 18,204 16,366 Total inventory, net $ 124,782 $ 100,460 |
ASSET RETIREMENT OBLIGATION (Ta
ASSET RETIREMENT OBLIGATION (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Changes to Asset Retirement Obligation | Following is a table of the changes to our asset retirement obligation for the following periods (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Asset retirement obligation, at beginning of period $ 22,869 $ 21,737 $ 22,037 $ 21,047 Liabilities settled (70 ) (3 ) (86 ) (125 ) Liabilities incurred — — — — Changes in estimated obligations — — — — Accretion of discount 424 405 1,272 1,217 Total asset retirement obligation, at end of period $ 23,223 $ 22,139 $ 23,223 $ 22,139 |
COMPENSATION PLANS (Tables)
COMPENSATION PLANS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Non-Vested Restricted Common Stock Activity | A summary of activity relating to our non-vested restricted shares of common stock for the nine months ended September 30, 2015 , is presented below. Weighted Average Shares Non-vested restricted shares of common stock, beginning of period 464,769 $ 16.49 Granted 237,256 $ 14.28 Vested (201,261 ) $ 17.76 Forfeited (37,930 ) $ 15.13 Non-vested restricted shares of common stock, end of period 462,834 $ 14.91 |
Summary of Stock Option Activity | A summary of our stock option activity for the nine months ended September 30, 2015 , is as follows: Shares Weighted Average Exercise Price Aggregate Intrinsic Value (1) Weighted Average Remaining Contractual Life Weighted Average Grant-Date Fair Value Outstanding non-qualified stock options, end of period 249,830 $25.84 $— 3.7 $12.76 Vested or expected to vest, end of period 249,830 $25.84 $— 3.7 $12.76 Exercisable non-qualified stock options, end of period 249,830 $25.84 $— 3.7 $12.76 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax (Benefit) Expense | A summary of the provision for income taxes is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Current portion of income tax (benefit) expense $ 39 $ — $ 5 $ (1,108 ) Deferred portion of income tax benefit (7,891 ) (3 ) (5,136 ) (31 ) Total income tax benefit $ (7,852 ) $ (3 ) $ (5,131 ) $ (1,139 ) Effective tax rate 49.2 % 0.3 % 44.0 % (40.3 )% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Rental and Lease Expense | Rental and lease expenses follow for the indicated periods, excluding the lease termination penalty (in thousands): 2015 For the three months ended September 30, 2015 $ 2,081 For the nine months ended September 30, 2015 $ 5,802 2014 For the three months ended September 30, 2014 $ 1,776 For the nine months ended September 30, 2014 $ 4,986 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following is a listing of our assets and liabilities required to be measured at fair value on a recurring basis and where they are classified within the hierarchy as of September 30, 2015 , and December 31, 2014 (in thousands): Fair Value at Reporting Date Using September 30, 2015 Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Observable Inputs Significant Unobservable Inputs Investments Corporate bonds $ 68,613 $ — $ 68,613 $ — Fair Value at Reporting Date Using December 31, 2014 Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Observable Inputs Significant Unobservable Inputs Investments Corporate bonds $ 21,288 $ — $ 21,288 $ — |
Fair Value, by Balance Sheet Grouping | The carrying values and estimated fair values of our financial instruments as of September 30, 2015 , and December 31, 2014 , are as follows (in thousands): September 30, 2015 December 31, 2014 Carrying Value Fair Value Carrying Value Fair Value Long-term debt $ 150,000 $ 145,000 $ 150,000 $ 138,000 |
COMPANY BACKGROUND (Narrative)
COMPANY BACKGROUND (Narrative) (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015Mines | Sep. 30, 2015Reporting_Segments | |
Company Background | ||
Number of solution mines | 3 | |
Number of conventional underground mines | 2 | |
Number of reporting segments | Reporting_Segments | 1 |
EARNINGS PER SHARE (Narrative)
EARNINGS PER SHARE (Narrative) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Restricted Stock | ||||
Anti-dilutive weighted average non-vested shares | ||||
Anti-dilutive weighted average non-vested shares (in shares) | 467,388 | 535,668 | 471,239 | 0 |
Stock Options | ||||
Anti-dilutive weighted average non-vested shares | ||||
Anti-dilutive weighted average non-vested shares (in shares) | 288,673 | 329,116 | 309,602 | 333,129 |
Performance Units | ||||
Anti-dilutive weighted average non-vested shares | ||||
Anti-dilutive weighted average non-vested shares (in shares) | 194,375 | 18,372 | 158,367 | 0 |
EARNINGS PER SHARE (Schedule of
EARNINGS PER SHARE (Schedule of Calculation of Basic and Diluted Loss or Earnings Per Share) (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 | |
Earnings Per Share [Abstract] | ||||
Net (loss) income | $ (8,110) | $ (1,236) | $ (6,518) | $ 3,970 |
Basic weighted average common shares outstanding (in shares) | 75,701,490 | 75,528,235 | 75,658,297 | 75,496,365 |
Add: Dilutive effect of non-vested restricted common stock (in shares) | 0 | 0 | 0 | 102,205 |
Add: Dilutive effect of performance units (in shares) | 0 | 0 | 0 | 12,500 |
Diluted weighted average common shares outstanding (in shares) | 75,701,490 | 75,528,235 | 75,658,297 | 75,611,070 |
(Loss) Earnings per share: | ||||
Basic (in dollars per share) | $ (0.11) | $ (0.02) | $ (0.09) | $ 0.05 |
Diluted (in dollars per share) | $ (0.11) | $ (0.02) | $ (0.09) | $ 0.05 |
CASH, CASH EQUIVALENTS, AND I35
CASH, CASH EQUIVALENTS, AND INVESTMENTS (Summary of Cash, Cash Equivalents, and Investments) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Investment [Line Items] | ||||
Cash and cash equivalents | $ 24,322 | $ 67,589 | $ 70,833 | $ 394 |
Short-term investments | 56,590 | 10,434 | ||
Long-term investments | 13,028 | 11,856 | ||
Cash, cash equivalents, and investments | 93,940 | 89,879 | ||
Cash | ||||
Investment [Line Items] | ||||
Cash and cash equivalents | 19,924 | 16,506 | ||
Commercial paper and money market accounts | ||||
Investment [Line Items] | ||||
Cash and cash equivalents | 4,398 | 51,083 | ||
Corporate bonds | ||||
Investment [Line Items] | ||||
Short-term investments | 55,585 | 9,432 | ||
Long-term investments | 13,028 | 11,856 | ||
Certificates of deposit and time deposits | ||||
Investment [Line Items] | ||||
Short-term investments | $ 1,005 | $ 1,002 |
CASH, CASH EQUIVALENTS, AND I36
CASH, CASH EQUIVALENTS, AND INVESTMENTS (Schedule of Available-for-Sale Investments) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair value of cash, cash equivalents, and investments | ||
Available-for-sale Securities, Amortized Cost Basis | $ 69,681 | $ 22,337 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 5 | 1 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | 68 | 48 |
Available-for-sale Securities, Fair Value Disclosure | 69,618 | 22,290 |
Corporate bonds | ||
Fair value of cash, cash equivalents, and investments | ||
Available-for-sale Securities, Amortized Cost Basis | 68,676 | 21,335 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 5 | 1 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | 68 | 48 |
Available-for-sale Securities, Fair Value Disclosure | 68,613 | 21,288 |
Certificates of deposit and time deposits | ||
Fair value of cash, cash equivalents, and investments | ||
Available-for-sale Securities, Amortized Cost Basis | 1,005 | 1,002 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Available-for-sale Securities, Fair Value Disclosure | $ 1,005 | $ 1,002 |
CASH, CASH EQUIVALENTS, AND I37
CASH, CASH EQUIVALENTS, AND INVESTMENTS (Narrative) (Details) | 3 Months Ended |
Sep. 30, 2014USD ($) | |
Cash and Cash Equivalents [Abstract] | |
Available-for-sale Securities, Gross Realized Losses | $ 0 |
INVENTORY AND LONG-TERM PARTS38
INVENTORY AND LONG-TERM PARTS INVENTORY (Summary of Inventory) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Inventory [Line Items] | ||
Finished goods product inventory, net | $ 60,582 | $ 44,137 |
In-process mineral inventory | 24,231 | 19,584 |
Total product inventory, net | 84,813 | 63,721 |
Current parts inventory | 21,765 | 20,373 |
Total current inventory, net | 106,578 | 84,094 |
Long-term parts inventory | 18,204 | 16,366 |
Total inventory, net | $ 124,782 | $ 100,460 |
INVENTORY AND LONG-TERM PARTS39
INVENTORY AND LONG-TERM PARTS INVENTORY (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Inventory [Line Items] | ||||
Lower-of-cost-or-market inventory adjustments | $ 4,427 | $ 3,403 | $ 10,063 | $ 8,110 |
Production Related Impairments or Charges | 6,910 | $ 0 | $ 6,910 | $ 0 |
West Facility | ||||
Inventory [Line Items] | ||||
Production Related Impairments or Charges | 4,900 | |||
East Facility | ||||
Inventory [Line Items] | ||||
Production Related Impairments or Charges | $ 2,000 |
PROPERTY, PLANT, EQUIPMENT, A40
PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES (Schedule of Property, Plant, Equipment, and Mineral Properties) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Property, plant, equipment, and mineral properties | ||
Property, Plant and Equipment, Gross | $ 924,138 | $ 904,382 |
Accumulated depreciation | (325,690) | (271,294) |
Depreciable assets, net | 598,448 | 633,088 |
Mineral properties and development costs | 166,735 | 163,197 |
Accumulated depletion | (21,020) | (17,544) |
Total depletable assets, net | 145,715 | 145,653 |
Land | 909 | 909 |
Construction in Progress, Gross | 12,987 | 5,600 |
Property, Plant, Equipment and Mineral Properties, Net | 758,059 | 785,250 |
Buildings Plant [Member] | ||
Property, plant, equipment, and mineral properties | ||
Property, Plant and Equipment, Gross | 271,354 | 268,032 |
Machinery and Equipment [Member] | ||
Property, plant, equipment, and mineral properties | ||
Property, Plant and Equipment, Gross | 544,491 | 529,358 |
Vehicles [Member] | ||
Property, plant, equipment, and mineral properties | ||
Property, Plant and Equipment, Gross | 13,677 | 13,799 |
Office Equipment and Improvements [Member] | ||
Property, plant, equipment, and mineral properties | ||
Property, Plant and Equipment, Gross | 19,857 | 19,260 |
Ponds and Land Improvements [Member] | ||
Property, plant, equipment, and mineral properties | ||
Property, Plant and Equipment, Gross | $ 74,759 | $ 73,933 |
PROPERTY, PLANT, EQUIPMENT, A41
PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES (Schedule of Depreciation, Depletion, and Accretion) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 18,893 | $ 18,868 | $ 56,257 | $ 55,764 |
Depletion | 1,038 | 834 | 3,499 | 2,649 |
Accretion | 424 | 405 | 1,272 | 1,217 |
Total incurred | $ 20,355 | $ 20,107 | $ 61,028 | $ 59,630 |
DEBT (Narrative) (Details)
DEBT (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Debt | ||||
Long-term Line of Credit | $ 0 | $ 0 | $ 0 | $ 0 |
Maintenance Capital Expenditure Requirements | 40,000,000 | 40,000,000 | ||
Line of Credit Facility, Current Borrowing Capacity | 187,000,000 | 187,000,000 | ||
Debt Instrument, Face Amount | 150,000,000 | 150,000,000 | 150,000,000 | 150,000,000 |
Interest Costs Incurred | 5,000,000 | 5,000,000 | ||
Capitalized Interest | 200,000 | 400,000 | ||
Series A Senior Notes | ||||
Debt | ||||
Debt Instrument, Face Amount | $ 60,000,000 | $ 60,000,000 | $ 60,000,000 | $ 60,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 3.23% | 3.23% | 3.23% | 3.23% |
Series B Senior Notes | ||||
Debt | ||||
Debt Instrument, Face Amount | $ 45,000,000 | $ 45,000,000 | $ 45,000,000 | $ 45,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 4.13% | 4.13% | 4.13% | 4.13% |
Series C Senior Notes | ||||
Debt | ||||
Debt Instrument, Face Amount | $ 45,000,000 | $ 45,000,000 | $ 45,000,000 | $ 45,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 4.28% | 4.28% | 4.28% | 4.28% |
Unsecured credit facility | ||||
Debt | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 250,000,000 | $ 250,000,000 | $ 250,000,000 | $ 250,000,000 |
Maximum allowable leverage ratio | 3.5 | |||
Minimum allowable fixed charge coverage ratio | 1.3 | |||
Line of Credit Facility, Borrowings | 0 | 0 | $ 0 | 17,000,000 |
Line of Credit Facility, Repayments | $ 0 | $ 0 | $ 0 | $ 17,000,000 |
ASSET RETIREMENT OBLIGATION (Na
ASSET RETIREMENT OBLIGATION (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Asset Retirement Obligation Disclosure [Abstract] | ||
Credit adjusted risk-free rates to discount abandonment liabilities, low end of range (as a percent) | 6.90% | |
Credit adjusted risk-free rates to discount abandonment liabilities, high end of range (as a percent) | 8.50% | |
Asset retirement obligation, current | $ 1.6 | $ 1.6 |
Undiscounted amount of asset retirement obligation | $ 57.6 |
ASSET RETIREMENT OBLIGATION (Sc
ASSET RETIREMENT OBLIGATION (Schedule of Changes to Asset Retirement Obligation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Asset Retirement Obligation Disclosure [Abstract] | ||||
Asset retirement obligation, at beginning of period | $ 22,869 | $ 21,737 | $ 22,037 | $ 21,047 |
Liabilities settled | (70) | (3) | (86) | (125) |
Liabilities incurred | 0 | 0 | 0 | 0 |
Asset Retirement Obligation, Revision of Estimate | 0 | 0 | 0 | 0 |
Accretion of discount | 424 | 405 | 1,272 | 1,217 |
Total asset retirement obligation, at end of period | $ 23,223 | $ 22,139 | $ 23,223 | $ 22,139 |
COMPENSATION PLANS (Narrative)
COMPENSATION PLANS (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Oct. 23, 2015 | Dec. 31, 2014 | |
Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Outstanding non-vested equity-based awards, end of period (in shares) | 462,834 | 462,834 | 461,525 | 464,769 | ||
Period over which grants vest (in years) | 3 years | |||||
Allocated Share-based Compensation Expense | $ 0.8 | $ 0.7 | $ 2.5 | $ 2.6 | ||
Total unrecognized compensation expense | $ 4.9 | $ 4.9 | ||||
Performance Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Outstanding non-vested equity-based awards, end of period (in shares) | 383,447 | 383,447 | ||||
Period over which grants vest (in years) | 3 years | |||||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Outstanding non-qualified stock options, end of period (in shares) | 249,830 | 249,830 | ||||
Period over which grants vest (in years) | 3 years | |||||
Common Stock Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock available for issuance under the Plan (in shares) | 3,000,000 | 3,000,000 | ||||
Restricted Stock Awards, Granted To Newly Hired Employees | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Period over which grants vest (in years) | 1 year | |||||
Restricted Stock Awards, Granted To Newly Hired Employees | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Period over which grants vest (in years) | 4 years | |||||
2015 Performance Units [Member] | Performance Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Outstanding non-vested equity-based awards, end of period (in shares) | 378,150 | 378,150 | ||||
2012-2013 Performance [Member] | Performance Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Outstanding non-vested equity-based awards, end of period (in shares) | 5,297 | 5,297 |
COMPENSATION PLANS (Summary of
COMPENSATION PLANS (Summary of Non-Vested Restricted Common Stock Activity) (Details) - Restricted Stock - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 0.8 | $ 0.7 | $ 2.5 | $ 2.6 |
Shares | ||||
Non-vested restricted shares of common stock, beginning of period (in shares) | 464,769 | |||
Granted (in shares) | 237,256 | |||
Vested (in shares) | (201,261) | |||
Forfeited (in shares) | (37,930) | |||
Non-vested restricted shares of common stock, end of period (in shares) | 462,834 | 462,834 | ||
Weighted Average Grant-Date Fair Value | ||||
Non-vested restricted shares of common stock, beginning of period (in dollars per share) | $ 16.49 | |||
Granted (in dollars per share) | 14.28 | |||
Vested (in dollars per share) | 17.76 | |||
Forfeited (in dollars per share) | 15.13 | |||
Non-vested restricted shares of common stock, end of period (in dollars per share) | $ 14.91 | $ 14.91 |
COMPENSATION PLANS (Summary o47
COMPENSATION PLANS (Summary of Stock Option Activity) (Details) - Stock Options - USD ($) | 9 Months Ended |
Sep. 30, 2015 | |
Stock Option Activity, Number of Shares | |
Outstanding non-qualified stock options, end of period (in shares) | 249,830 |
Vested or expected to vest, end of period (in shares) | 249,830 |
Exercisable non-qualified stock options, end of period (in shares) | 249,830 |
Stock Options, Weighted Average Exercise Price | |
Outstanding non-qualified stock options, end of period (in dollars per share) | $ 25.84 |
Vested or expected to vest, end of period (in dollars per share) | 25.84 |
Exercisable non-qualified stock options, end of period (in dollars per share) | $ 25.84 |
Stock Options, Aggregate Intrinsic Value | |
Outstanding non-qualified stock options, end of period (in shares) | $ 0 |
Vested or expected to vest, end of period (in shares) | 0 |
Exercisable non-qualified stock options, end of period (in shares) | $ 0 |
Stock Options, Weighted Average Remaining Contractual Life | |
Outstanding non-qualified stock options, end of period (in years) | 3 years 8 months 12 days |
Vested or expected to vest, end of period (in years) | 3 years 8 months 12 days |
Exercisable non-qualified stock options, end of period (in years) | 3 years 8 months 12 days |
Stock Options, Weighted Average Grant Date Fair Value | |
Outstanding non-qualified stock options, end of period (in dollars per share) | $ 12.76 |
Vested or expected to vest, end of period (in dollars per share) | 12.76 |
Exercisable non-qualified stock options, end of period (in dollars per share) | $ 12.76 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 49.20% | 0.30% | 44.00% | (40.30%) |
Deferred Tax Assets, Valuation Allowance | $ 1.7 |
INCOME TAXES (Schedule of Compo
INCOME TAXES (Schedule of Components of Income Tax (Benefit) Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Current portion of income tax (benefit) expense | $ 39 | $ 0 | $ 5 | $ (1,108) |
Deferred portion of income tax (benefit) expense | (7,891) | (3) | (5,136) | (31) |
Total income tax (benefit) expense | $ (7,852) | $ (3) | $ (5,131) | $ (1,139) |
Effective tax rate | 49.20% | 0.30% | 44.00% | (40.30%) |
COMMITMENTS AND CONTINGENCIES50
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2013 | |
Marketing Agreements | ||||
Period of cancellation of marketing agreement by way of written notice | 30 days | |||
Reclamation Deposits and Surety Bonds | ||||
Security placed with the State of Utah and BLM | $ 18.7 | |||
Long-term restricted cash deposits | 0.5 | |||
Surety bonds issued by an insurer | 18.3 | |||
New Mexico Employment Credits | ||||
Tax Credit Receivable | $ 5.9 | |||
Other Cost and Expense, Operating | $ 2.9 | |||
Other Receivables | 0.1 | |||
Allowance for doubtful other receivables, current | $ 0.5 | $ 2.8 | ||
Future Operating Lease Commitments | ||||
Operating Lease, Contract Term, Maximum (in years) | 20 years | |||
Lease Termination Penalty | $ 1.2 |
COMMITMENTS AND CONTINGENCIES51
COMMITMENTS AND CONTINGENCIES (Schedule of Rental and Lease Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Rental and lease expenses | $ 2,081 | $ 1,776 | $ 5,802 | $ 4,986 |
FAIR VALUE (Schedule of Assets
FAIR VALUE (Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Investments | ||
Corporate bonds | $ 68,613 | $ 21,288 |
Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | ||
Investments | ||
Corporate bonds | 0 | 0 |
Significant Observable Inputs (Level 2) | ||
Investments | ||
Corporate bonds | 68,613 | 21,288 |
Significant Unobservable Inputs (Level 3) | ||
Investments | ||
Corporate bonds | $ 0 | $ 0 |
FAIR VALUE (Fair Value, by Bala
FAIR VALUE (Fair Value, by Balance Sheet Groupings) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 150,000 | $ 150,000 |
Long-term debt, fair value | $ 145,000 | $ 138,000 |
RESTRUCTURING CHARGE (Narrative
RESTRUCTURING CHARGE (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Restructuring Charge [Abstract] | ||||
Restructuring charge, percentage of eliminated positions | 7.00% | |||
Restructuring charge | $ 0 | $ 0 | $ 0 | $ 1,827 |