Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |||
Jun. 30, 2016 | Jul. 27, 2016 | Feb. 22, 2016 | Dec. 31, 2015 | |
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 | Jun. 30, 2016 | |||
Amendment Flag | false | |||
Current Fiscal Year End Date | --12-31 | |||
Entity Well-known Seasoned Issuer | No | |||
Entity Voluntary Filers | No | |||
Entity Current Reporting Status | Yes | |||
Entity Filer Category | Large Accelerated Filer | |||
Entity Common Stock, Shares Outstanding | 76,597,669 | |||
Document Fiscal Year Focus | 2,016 | |||
Document Fiscal Period Focus | Q2 | |||
Restricted Stock | ||||
Document and Entity Information [Abstract] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 760,303 | 459,663 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 30,984 | $ 9,307 |
Short-term investments | 16,599 | 50,523 |
Accounts receivable: | ||
Trade, net | 8,986 | 9,743 |
Other receivables, net | 2,352 | 1,470 |
Inventory, net | 109,570 | 106,531 |
Prepaid expenses and other current assets | 3,070 | 18,141 |
Total current assets | 171,561 | 195,715 |
Property, plant, equipment, and mineral properties, net | 404,690 | 419,476 |
Long-term parts inventory, net | 18,389 | 17,344 |
Long-term investments | 0 | 3,799 |
Other assets, net | 4,558 | 3,635 |
Total Assets | 599,198 | 639,969 |
Accounts payable: | ||
Trade | 11,835 | 15,709 |
Related parties | 82 | 45 |
Accrued liabilities | 10,115 | 15,429 |
Accrued employee compensation and benefits | 7,895 | 7,409 |
Other current liabilities | 1,321 | 547 |
Total current liabilities | 31,248 | 39,139 |
Long-term debt, net | 147,840 | 149,485 |
Asset retirement obligation | 23,832 | 22,951 |
Other non-current liabilities | 0 | 1,868 |
Total Liabilities | 202,920 | 213,443 |
Common stock, $0.001 par value; 400,000,000 shares authorized; 75,838,782 and 75,702,700 shares outstanding at June 30,2016, and December 31, 2015, respectively | 76 | 76 |
Additional paid-in capital | 581,755 | 580,227 |
Accumulated other comprehensive loss | (3) | (52) |
Retained earnings | (185,550) | (153,725) |
Total Stockholders' Equity | 396,278 | 426,526 |
Total Liabilities and Stockholders' Equity | $ 599,198 | $ 639,969 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 400,000,000 | 100,000,000 |
Common stock, shares outstanding | 75,838,782 | 75,536,741 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Mar. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||||
Sales | $ 51,840 | $ 73,651 | $ 125,117 | $ 190,672 |
Less: | ||||
Freight costs | 8,931 | 6,898 | 19,263 | 17,810 |
Warehousing and handling costs | 2,538 | 3,437 | 5,202 | 7,184 |
Cost of goods sold | 41,850 | 55,435 | 101,627 | 138,717 |
Lower-of-cost-or-market inventory adjustments | 2,930 | 5,276 | 11,937 | 5,636 |
Costs associated with abnormal production and other | 1,057 | 0 | 1,707 | 0 |
Gross (Deficit) Margin | (5,466) | 2,605 | (14,619) | 21,325 |
Selling and administrative | 4,536 | 8,424 | 11,106 | 15,892 |
Accretion of asset retirement obligation | 442 | 424 | 884 | 848 |
Restructuring expense | 1,914 | 2,314 | 0 | |
Other operating income | (1,801) | (2,312) | (1,905) | (2,246) |
Operating (Loss) Income | (10,557) | (3,931) | (27,018) | 6,831 |
Other Income (Expense) | ||||
Interest expense, net | (3,000) | (1,602) | (5,229) | (3,246) |
Interest income | 101 | 200 | 224 | 355 |
Other income | 59 | 46 | 201 | 373 |
(Loss) Income Before Income Taxes | (13,397) | (5,287) | (31,822) | 4,313 |
Income Tax (Expense) Benefit | (1) | 350 | (3) | (2,721) |
Net (Loss) Income | $ (13,398) | $ (4,937) | $ (31,825) | $ 1,592 |
Weighted Average Shares Outstanding: | ||||
Basic (in shares) | 75,838,782 | 75,797,658 | 75,636,343 | |
Diluted (in shares) | 75,838,782 | 75,683,075 | 75,797,658 | 75,731,910 |
(Loss) Earnings Per Share: | ||||
Basic (in dollars per share) | $ (0.18) | $ (0.42) | $ 0.02 | |
Diluted (in dollars per share) | $ (0.18) | $ (0.42) | $ 0.02 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Mar. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ 13,398 | $ 4,937 | $ 31,825 | $ (1,592) |
Unrealized gain on investments available for sale, net of tax | 19 | (35) | 49 | (25) |
Other Comprehensive Income (Loss) | 19 | (35) | 49 | (25) |
Comprehensive (Loss) Income | $ (13,379) | $ (4,972) | $ (31,776) | $ 1,567 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - 6 months ended Jun. 30, 2016 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Income | Retained Earnings |
Balance (in shares) at Dec. 31, 2015 | 75,702,700 | ||||
Balance at Dec. 31, 2015 | $ 426,526 | $ 76 | $ 580,227 | $ (52) | $ (153,725) |
Increase (Decrease) in Stockholders' Equity | |||||
Unrealized gain on investments available for sale, net of tax | 49 | 49 | |||
Net (Loss) Income | (31,825) | (31,825) | |||
Stock-based compensation | 1,700 | 1,700 | |||
Vesting of restricted common stock, net of restricted common stock used to fund employee income tax withholding due upon vesting (in shares) | 136,082 | ||||
Vesting of restricted common stock, net of restricted common stock used to fund employee income tax withholding due upon vesting | (172) | $ 0 | (172) | ||
Balance (in shares) at Jun. 30, 2016 | 75,838,782 | ||||
Balance at Jun. 30, 2016 | $ 396,278 | $ 76 | $ 581,755 | $ (3) | $ (185,550) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Reconciliation of net income to net cash provided by operating activities: | ||
Net (Loss) income | $ (31,825) | $ 1,592 |
Items not affecting cash: | ||
Deferred income taxes | 0 | 2,754 |
Depreciation, depletion and accretion | 24,209 | 40,673 |
Amortization of deferred financing costs | 1,666 | 186 |
Stock-based compensation | 1,700 | 2,595 |
Lower-of-cost-or-market inventory adjustments | 11,937 | 5,636 |
Allowance for parts inventory obsolescence | 618 | 0 |
Other | 435 | 862 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable, net | 757 | 12,919 |
Other receivables, net | (726) | (3,671) |
Refundable income taxes | 91 | (174) |
Inventory, net | (16,638) | (10,903) |
Prepaid expenses and other current assets | 14,677 | 1,063 |
Accounts payable, accrued liabilities, and accrued employee compensation and benefits | (5,401) | 244 |
Other liabilities | (1,097) | 1,418 |
Net cash (used in) provided by operating activities | 403 | 55,194 |
Cash Flows from Investing Activities: | ||
Additions to property, plant, equipment, and mineral properties | (11,775) | (18,989) |
Purchases of investments | (1,500) | (72,227) |
Proceeds from sale of investments | 37,375 | 9,748 |
Net cash provided by (used in) investing activities | 24,100 | (81,468) |
Cash Flows from Financing Activities: | ||
Debt issuance costs | (2,654) | 0 |
Employee tax withholding paid for restricted stock upon vesting | (172) | (1,030) |
Net cash used in financing activities | (2,826) | (1,030) |
Net Change in Cash and Cash Equivalents | 21,677 | (27,304) |
Cash and Cash Equivalents, beginning of period | 9,307 | 67,589 |
Cash and Cash Equivalents, end of period | 30,984 | 40,285 |
Net cash paid (refunded) during the period for: | ||
Interest | 3,221 | 3,124 |
Income taxes | (88) | 41 |
Accrued purchases for property, plant, equipment, and mineral properties | $ 544 | $ 5,557 |
CONSOLIDATED STATEMENTS OF CAS8
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Cash Flows [Abstract] | ||
Interest Paid, Capitalized | $ 0.1 | $ 0 |
COMPANY BACKGROUND
COMPANY BACKGROUND | 6 Months Ended |
Jun. 30, 2016 | |
Text Block [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. During the first half of 2016, we produced potash from three solution mining facilities and two conventional underground mining facilities. 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 of potash came 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. We produce Trio ® from our underground conventional East mine. In April 2016, we converted our East facility from a mixed-ore facility that produced both potash and Trio ® to a Trio ® -only facility. We expect our commissioning activities related to that transition to continue into the second half of 2016. Subsequent to the transition, we no longer produce potash at our East facility. In May 2016, we initiated a plan to idle mining operations at our West facility and transition it into a care-and- maintenance mode due to the decline in potash prices. As we completed the transition in July 2016, all of our potash is now produced from our three solution mining facilities. Until the second quarter of 2016, we had one reporting segment; the extraction, production, and sale of potassium-related products. As a result of pricing pressure and the resulting economic factors giving rise to the conversion of our East facility to Trio ® -only and the idling of our West facility, the chief operating decision maker separately evaluates our potash and Trio ® operations. Accordingly, we reevaluated our segments and determined that, beginning in the second quarter of 2016, we have two segments: potash and Trio ® . |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2016 | |
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. The lenders under our credit facility have agreed to waive until no later than September 30, 2016, the requirements under our credit facility that we comply with certain financial covenants and that we deliver audited annual financial statements for the year ended December 31, 2015, without any going concern modification. In addition, the holders of our senior notes have agreed to waive until September 30, 2016, the requirement under the terms of the senior notes that we comply with certain financial covenants for the first and second quarters of 2016. If current market conditions continue, we anticipate that our adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization, and certain other expenses, as defined in the credit facility) will not be sufficient for us to return to compliance with these covenants through 2016. As a result, we are working with our lenders and evaluating our options, which could include additional covenant amendments, waivers, or forbearances, alternative financing arrangements, a possible further reduction in the amount of the credit facility, and a possible reduction of our outstanding debt, which may include the payment of prepayment penalties. We have reached an agreement in principle regarding revised terms of our senior notes and have received a commitment letter from a third-party lender for a new credit facility to replace our existing credit facility, subject to various conditions, including that the revised terms of the agreement between us and the holders of our senior notes be satisfactory to the third-party lender. We are working toward completing documentation to close these transactions by September 30, 2016. However, if we are unable to reach definitive agreements, our continued failure to comply with these covenants after September 30, 2016, will result in an event of default under the terms of the senior notes and the credit facility that, if not cured or waived, could result in the acceleration of all outstanding indebtedness, including the acceleration of our senior notes and any amounts outstanding under the credit facility. If the lenders were to make such a demand for repayment, we would be unable to pay the obligations as we do not have existing facilities or sufficient cash on hand to satisfy these obligations. With this material uncertainty surrounding compliance with our debt covenants, declining revenues, lower-of-cost-or-market inventory adjustments, and negative cash flows from operations, there is substantial doubt about our ability to continue as a going concern. While we will continue to work with our lenders, there can be no assurance that we will be successful. The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business. The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets or the amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern. Recently Adopted Accounting Standard —Certain prior period amounts have been reclassified in order to conform to the current period presentation. In accordance with the adoption of a new accounting standard, we have reclassified $ 515,000 of deferred financing costs associated with our outstanding debt from "Other current assets" and "Other assets" to "Long-term debt, net" as of December 31, 2015 to conform to the June 30, 2016 presentation. 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, valuation of investments, 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 after shipment and agreed to with our customer, revenue is recognized when the final sales price is fixed and determinable and the other revenue recognition criteria have been met. 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. 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 and expensed directly during the applicable period. The assessment of normal production levels is judgmental and unique to each period. 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. (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
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 Anti-dilutive shares of non-vested restricted common stock 447,661 474,481 407,186 161,675 Anti-dilutive shares of stock options outstanding 218,886 319,563 227,370 320,241 Anti-dilutive shares of non-vested performance units 126,050 194,374 127,651 131,621 The following table sets forth the calculation of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net (loss) income $ (13,398 ) $ (4,937 ) $ (31,825 ) $ 1,592 Basic weighted average common shares outstanding 75,839 75,683 75,798 75,636 Add: Dilutive effect of non-vested restricted common stock — — — 90 Add: Dilutive effect of performance units — — — 6 Diluted weighted average common shares outstanding 75,839 75,683 75,798 75,732 (Loss) earnings per share: Basic $ (0.18 ) $ (0.07 ) $ (0.42 ) $ 0.02 Diluted $ (0.18 ) $ (0.07 ) $ (0.42 ) $ 0.02 |
CASH, CASH EQUIVALENTS, AND INV
CASH, CASH EQUIVALENTS, AND INVESTMENTS | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 , and December 31, 2015 (in thousands): June 30, 2016 December 31, 2015 Cash $ 8,691 $ 9,056 Commercial paper and money market accounts 22,293 251 Total cash and cash equivalents $ 30,984 $ 9,307 Corporate bonds $ 15,592 $ 49,518 Certificates of deposit and time deposits 1,007 1,005 Total short-term investments $ 16,599 $ 50,523 Corporate bonds $ — $ 3,799 Total long-term investments $ — $ 3,799 Total cash, cash equivalents, and investments $ 47,583 $ 63,629 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 June 30, 2016 , and December 31, 2015 (in thousands): June 30, 2016 Unrealized Cost Basis Gain Loss Fair Value Corporate bonds $ 15,596 $ 2 $ (5 ) $ 15,593 Certificates of deposit and time deposits 1,007 — — 1,007 Total available-for-sale investments $ 16,603 $ 2 $ (5 ) $ 16,600 December 31, 2015 Unrealized Cost Basis Gain Loss Fair Value Corporate bonds $ 53,403 $ 6 $ (92 ) $ 53,317 Certificates of deposit and time deposits 1,005 — — 1,005 Total available-for-sale investments $ 54,408 $ 6 $ (92 ) $ 54,322 |
INVENTORY AND LONG-TERM PARTS I
INVENTORY AND LONG-TERM PARTS INVENTORY | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 , and December 31, 2015 (in thousands): June 30, 2016 December 31, 2015 Finished goods product inventory $ 64,195 $ 65,200 In-process mineral inventory 24,085 19,769 Total product inventory 88,280 84,969 Current parts inventory, net 21,290 21,562 Total current inventory, net 109,570 106,531 Long-term parts inventory, net 18,389 17,344 Total inventory, net $ 127,959 $ 123,875 Parts inventories are shown net of any required allowances. At June 30, 2016, and 2015, allowances for parts inventory obsolescence were $3.3 million and $0.5 million , respectively. During the six months ended June 30, 2016 , and 2015 , we recorded charges of approximately $11.9 million and $5.6 million , respectively, as a result of routine assessments of the lower of weighted average cost or estimated net realizable value of our finished goods product inventory. During the first half of 2016, we suspended potash production at our East facility for a total of seven days as we performed a langbeinite-only testing run and converted the East facility to a Trio ® -only facility. As a result of the suspension of production, we determined that approximately $1.1 million and $1.7 million of production costs at our East facility would have been allocated to additional tons produced, assuming we had been operating at normal production rates for the three- and six-month periods ending June 30, 2016, respectively. Accordingly, these costs were excluded from our inventory values and instead expensed in the three- and six-month periods in 2016 as period production costs. We compare actual production relative to what we estimated could have been produced if we had not incurred the production suspensions and lower operating rates in order to determine the abnormal cost adjustment. |
PROPERTY, PLANT, EQUIPMENT, AND
PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES | 6 Months Ended |
Jun. 30, 2016 | |
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): June 30, 2016 December 31, 2015 Buildings and plant $ 83,488 $ 81,208 Machinery and equipment 221,430 209,920 Vehicles 4,875 4,747 Office equipment and improvements 12,177 12,001 Ponds and land improvements 57,731 55,951 Total depreciable assets 379,701 363,827 Accumulated depreciation (101,754 ) (80,707 ) Total depreciable assets, net $ 277,947 $ 283,120 Mineral properties and development costs $ 140,250 $ 139,751 Accumulated depletion (19,235 ) (17,254 ) Total depletable assets, net $ 121,015 $ 122,497 Land $ 719 $ 719 Construction in progress $ 5,009 $ 13,140 Total property, plant, equipment, and mineral properties, net $ 404,690 $ 419,476 |
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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 Depreciation $ 8,862 $ 18,485 $ 21,344 $ 37,364 Depletion 537 488 1,981 2,461 Accretion 442 424 884 848 Total incurred $ 9,841 $ 19,397 $ 24,209 $ 40,673 |
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): June 30, 2016 December 31, 2015 Buildings and plant $ 83,488 $ 81,208 Machinery and equipment 221,430 209,920 Vehicles 4,875 4,747 Office equipment and improvements 12,177 12,001 Ponds and land improvements 57,731 55,951 Total depreciable assets 379,701 363,827 Accumulated depreciation (101,754 ) (80,707 ) Total depreciable assets, net $ 277,947 $ 283,120 Mineral properties and development costs $ 140,250 $ 139,751 Accumulated depletion (19,235 ) (17,254 ) Total depletable assets, net $ 121,015 $ 122,497 Land $ 719 $ 719 Construction in progress $ 5,009 $ 13,140 Total property, plant, equipment, and mineral properties, net $ 404,690 $ 419,476 We incurred the following expenses for depreciation, depletion, and accretion, including expenses capitalized into inventory, for the following periods (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Depreciation $ 8,862 $ 18,485 $ 21,344 $ 37,364 Depletion 537 488 1,981 2,461 Accretion 442 424 884 848 Total incurred $ 9,841 $ 19,397 $ 24,209 $ 40,673 |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2016 | |
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. Throughout the first seven months of 2016, we entered into a series of amendments that ultimately reduced the amount available to us under the credit facility to a maximum of $1 million , which amount may be used only for letters of credit. Any availability of the credit facility is subject to our compliance with financial covenants that provide that our leverage ratio may not exceed 3.5 to 1, and our fixed charge coverage ratio may not be below 1.3 to 1. We were not in compliance with these covenants as of March 31, 2016, and June 30, 2016; however, the lenders under the credit facility have agreed to waive until September 30, 2016, the requirement that we comply with these covenants for the quarters ended March 31, 2016, and June 30, 2016. Further, the lenders agreed that noncompliance with these covenants for the quarters ended March 31, 2016, and June 30, 2016, will not constitute a default or event of default under the credit facility until September 30, 2016. If current market conditions continue, we anticipate that our adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization, and certain other expenses, as defined in the credit facility) will not be sufficient for us to return to compliance with these covenants through 2016. As a result, we are working with our lenders and evaluating our options which could include additional covenant amendments, waivers, or forbearances, alternative financing arrangements, a possible further reduction in the amount of the credit facility, and a possible reduction of our outstanding debt, which may include the payment of prepayment penalties. We have reached an agreement in principle regarding revised terms of our senior notes and have received a commitment letter from a third-party lender for a new credit facility to replace our existing credit facility, subject to various conditions, including that the revised terms of the agreement between us and the holders of our senior notes be satisfactory to the third-party lender. We are working toward completing documentation to close these transactions by September 30, 2016. However, if we are unable to reach definitive agreements, our continued failure to comply with these covenants after the waiver expires, or our failure to comply with similar covenants under the terms of our senior notes after September 30, 2016, will result in an event of default that, if not cured or waived, could result in the acceleration of all outstanding indebtedness, including the acceleration of our senior notes discussed below and any amounts outstanding under the credit facility. In addition, the amount available under the credit facility would be reduced to zero. The maturity date for the credit facility is the earliest of (1) September 30, 2016, (2) any date on which the aggregate commitment under the credit facility is reduced to zero, and (3) the effective date for a new credit facility. The credit facility also has a covenant that requires us to provide to the lenders audited annual financial statements within 90 days of the end of each year. The audit report must not contain any going concern modification. The audit report accompanying our financial statements for the year ended December 31, 2015, contains a going concern modification, and therefore does not satisfy the credit facility covenant. The lenders under the facility agreed to waive until September 30, 2016, the requirement that we deliver audited annual financial statements for the year ended December 31, 2015, without any going concern modification. Further, the lenders agreed that the existence of audited annual financial statements for the year ended December 31, 2015, with a going concern modification will not constitute a default or event of default under the facility until September 30, 2016. Our continued failure to comply with this covenant after September 30, 2016, will result in an event of default that, if not cured or waived could result in the acceleration of all outstanding indebtedness, including the acceleration of our senior notes discussed below and any amounts outstanding under the credit facility. The financial covenants under the credit facility are calculated as follows: • Our maximum leverage ratio (calculated as the ratio of funded indebtedness to adjusted EBITDA for the prior four fiscal quarters) is 3.5 to 1, where funded indebtedness is calculated as total funded indebtedness minus cash and cash equivalent investments on hand up to a maximum of $ 75 million . Our leverage ratio at June 30, 2016, was 10.3 to 1. • Our minimum fixed charge coverage ratio (calculated as the ratio of adjusted EBITDA for the prior four fiscal quarters, minus maintenance capital expenditures and cash paid for income taxes, to interest expense plus scheduled principal amortization of long-term funded indebtedness) is 1.3 to 1, where annual maintenance capital expenditures is set at $20 million . Our fixed charge coverage ratio at June 30, 2016, was (1.4) to 1. These ratios and other restrictive covenants under the credit facility could limit our ability to engage in activities that we believe are in our long-term best interests. The facility is unsecured and is guaranteed by our material subsidiaries. As of June 30, 2016, we had a $0.5 million letter of credit 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. In January 2016, we amended the note purchase agreement to provide that the interest rate for the senior notes will be increased by 0.25% during any time that our leverage ratio exceeds 2.25 to 1. As we did not meet our leverage ratio and fixed charge ratio beginning as of March 31, 2016, in accordance with the terms of the note purchase agreement, the above interest rates increased by 2% beginning April 1, 2016 through July 28, 2016. As part of an amendment and waiver extension in July 2016, the above interest rates increased 3.5% above the rates indicated above beginning July 29, 2016, and will remain at that level as long as we are not meeting these ratios. As described above, these ratios and other restrictive covenants under the Notes could limit our ability to engage in activities that we believe are in our long-term best interests. Our outstanding long-term debt, net, is as follows as of June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 December 31, 2015 Unsecured Senior Notes $ 150,000 $ 150,000 Less deferred financing costs (2,160 ) (515 ) Long-term debt, net $ 147,840 $ 149,485 We were not in compliance with the financial covenants under the Notes as of March 31, 2016, and June 30, 2016; however, the noteholders have agreed to waive until September 30, 2016, the requirement that we comply with these covenants for the quarters ended March 31, 2016, and June 30, 2016. Further, the noteholders agreed that noncompliance with these covenants for the quarters ended March 31, 2016, and June 30, 2016, will not constitute a default or event of default under the Notes until September 30, 2016. If current market conditions continue, we anticipate that our adjusted EBITDA will not be sufficient for us to return to compliance with these covenants through 2016. We are working with the noteholders and evaluating our options, which could include additional covenant amendments, waivers, or forbearances, alternative financing arrangements, a possible further reduction in the amount of our credit facility, and a possible reduction of our outstanding debt, which may include the payment of prepayment penalties. We have reached an agreement in principle regarding revised terms of our senior notes and have received a commitment letter from a third-party lender for a new credit facility to replace our existing credit facility, subject to various conditions, including that the revised terms of the agreement between us and the holders of our senior notes be satisfactory to the third-party lender. We are working toward completing documentation to close these transactions by September 30, 2016. However, if we are unable to reach definitive agreements, our continued failure to comply with these covenants after September 30, 2016, will result in an event of default under the terms of the senior notes and the credit facility that, if not cured or waived, could result in the acceleration of all outstanding indebtedness, including the acceleration of the Notes and any amounts outstanding under the credit facility. The obligations under the Notes are unconditionally guaranteed by our material subsidiaries. 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 $3.1 million and $1.7 million for the three months ended June 30, 2016 , and 2015 , respectively. Included in the gross interest expense for the three months ended June 30, 2016 , is the expensing of deferred financing costs of $0.8 million related to the decrease in our unsecured credit facility as described above. We capitalized $0.1 million and an immaterial amount of interest during the three months ended June 30, 2016 , and 2015 , respectively. For the six months ended June 30, 2016, and 2015, we incurred gross interest expense of $5.4 million and $3.3 million , respectively. Included in the gross interest expense for the six months ended June 30, 2016, is the expensing of deferred financing costs of $1.5 million related to the decrease in our unsecured credit facility as described above. We capitalized $0.2 million and an immaterial amount of interest during the six months ended June 30, 2016, and 2015, respectively. |
ASSET RETIREMENT OBLIGATION
ASSET RETIREMENT OBLIGATION | 6 Months Ended |
Jun. 30, 2016 | |
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 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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 Asset retirement obligation, at beginning of period $ 23,393 $ 22,461 $ 22,951 $ 22,037 Liabilities settled (3 ) (16 ) (3 ) (16 ) Liabilities incurred — — — — Changes in estimated obligations — — — — Accretion of discount 442 424 884 848 Total asset retirement obligation, at end of period $ 23,832 $ 22,869 $ 23,832 $ 22,869 The undiscounted amount of asset retirement obligation was $58.4 million as of June 30, 2016 . |
COMPENSATION PLANS
COMPENSATION PLANS | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
COMPENSATION PLANS | COMPENSATION PLANS Cash Bonus Plans —During 2015, we had 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. In December 2015, we suspended our cash bonus programs for most employees for 2015 and have not implemented a cash bonus plan for 2016 as part of our cost savings initiatives. 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 June 30, 2016 , the following awards were outstanding under the Plan: 760,303 shares of non-vested restricted shares of common stock; non-vested performance units representing 252,100 shares of common stock; and options to purchase 218,857 shares of common stock. As of June 30, 2016 , approximately 6.4 million shares of common stock remained available for issuance under the Plan. Common Stock —In the second quarter of 2015, the Compensation Committee of the Board of Directors (the "Compensation Committee") granted shares of common stock under the Plan to our non-employee 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 —The Compensation Committee has granted restricted shares of common stock under the Plan to executive officers, other key employees, non-employee directors and consultants. The awards contain service conditions associated with continued employment or service and provide voting and regular dividend rights. Upon vesting, the restrictions on the restricted shares of common stock lapse and the shares are considered issued and outstanding. In the first quarter of 2015, the Compensation Committee granted restricted shares of common stock under the Plan 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 the second quarter of 2016, the Compensation Committee granted 562,010 restricted shares of common stock under the Plan to members of our Board of Directors, including one employee director. These restricted shares of common stock vest one year after grant. 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 $0.5 million and $0.8 million for the three months ended June 30, 2016 , and 2015 , respectively. Total compensation expense was $1.2 million and $1.7 million for the six months ended June 30, 2016 and 2015, respectively. These amounts are net of estimated forfeiture adjustments. As of June 30, 2016 , there was $2.2 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 six months ended June 30, 2016 , is presented below. Weighted Average Shares Non-vested restricted shares of common stock, beginning of period 459,663 $ 14.93 Granted 562,010 $ 1.28 Vested (211,861 ) $ 15.53 Forfeited (49,509 ) $ 14.46 Non-vested restricted shares of common stock, end of period 760,303 $ 11.09 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. No shares were earned under the first one-year performance period. A total of 252,100 shares of common stock are available for future payout under these performance units, subject to continued employment through the vesting date. 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. All outstanding stock options are 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 six months ended June 30, 2016 , is as follows: Shares Weighted Average Exercise Price Aggregate Intrinsic Value 1 Weighted Average Remaining Contractual Life Outstanding non-qualified stock options, end of period 218,857 $25.74 $— 3.1 Vested or expected to vest, end of period 218,857 $25.74 $— 3.1 Exercisable non-qualified stock options, end of period 218,857 $25.74 $— 3.1 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. |
Summary of Non-Vested Restricted Common Stock Activity | A summary of activity relating to our non-vested restricted shares of common stock for the six months ended June 30, 2016 , is presented below. Weighted Average Shares Non-vested restricted shares of common stock, beginning of period 459,663 $ 14.93 Granted 562,010 $ 1.28 Vested (211,861 ) $ 15.53 Forfeited (49,509 ) $ 14.46 Non-vested restricted shares of common stock, end of period 760,303 $ 11.09 |
Summary of Stock Option Activity | A summary of our stock option activity for the six months ended June 30, 2016 , is as follows: Shares Weighted Average Exercise Price Aggregate Intrinsic Value 1 Weighted Average Remaining Contractual Life Outstanding non-qualified stock options, end of period 218,857 $25.74 $— 3.1 Vested or expected to vest, end of period 218,857 $25.74 $— 3.1 Exercisable non-qualified stock options, end of period 218,857 $25.74 $— 3.1 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 Current portion of income tax expense (benefit) $ 1 $ (148 ) $ 3 $ (34 ) Deferred portion of income tax (benefit) expense — (202 ) — 2,755 Total income tax expense (benefit) $ 1 $ (350 ) $ 3 $ 2,721 Effective tax rate — % 6.6 % — % 63.1 % During the three- and six-month periods ended June 30, 2016 , our effective tax rate differed from the statutory rate primarily as a result of the impact of recording a valuation allowance to offset the amount of additional deferred tax asset generated during the period. For the three- and six-month periods ended June 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 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. As of June 30, 2016, we do not believe it is more likely than not that we will fully realize the benefit of the deferred tax assets. As such, we increased the valuation allowance related to our deferred tax assets by $13.8 million for the six months ended June 30, 2016. Our deferred tax asset, net of the valuation allowance, at June 30, 2016, and December 31, 2015, is zero . A summary of our valuation allowance activity is as follows (in thousands): Six Months Ended June 30, 2016 2015 Valuation allowance, beginning of period $ 300,601 $ 268 Additions 13,847 — Reversals — — Valuation allowance, end of period $ 314,448 $ 268 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Reclamation Deposits and Surety Bonds —As of June 30, 2016 , we had $19.5 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 June 30, 2016 , $2.0 million consisted of long-term restricted cash deposits reflected in "Other assets, net" on the condensed consolidated balance sheets, and $17.5 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. Legal —In February 2015, Mosaic Potash Carlsbad Inc. ("Mosaic") filed a complaint and application for preliminary injunction and permanent injunction against Steve Gamble and us in the Fifth Judicial District Court for County of Eddy in the State of New Mexico. Mr. Gamble is a current Intrepid employee and former Mosaic employee. The complaint alleges against us violations of the Uniform Trade Secrets Act and tortious interference with contract relating to alleged misappropriation of Mosaic’s trade secrets. Mosaic seeks monetary relief of an unspecified amount, including damages for actual loss and unjust enrichment, exemplary damages, attorneys' fees, and injunctive relief and has alleged that it has spent hundreds of millions of dollars to research and develop its alleged trade secrets. In August 2015, the court denied Mosaic's application for preliminary injunction. The lawsuit is currently progressing through discovery. We are vigorously defending against the lawsuit. Because this matter is at an early stage, we are unable to reasonably estimate the potential amount of loss, if any. In July 2016, Mosaic filed a complaint against Steve Gamble and us in US District Court for the District of New Mexico. The complaint alleges violations of the Computer Fraud and Abuse Act, conversion, and civil conspiracy relating to alleged misappropriation of Mosaic's confidential information. Mosaic seeks injunctive relief and compensatory and punitive damages of an unspecified amount. We are vigorously defending against the lawsuit. Because this matter is at an early stage, we are unable to reasonably estimate the potential amount of loss, if any. We are subject to other 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 other 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, offices, and railcars, with original terms ranging up to 20 years. In May 2015, we exercised an option to terminate our existing corporate office lease prior to its original expiration date. Under the provisions of the lease agreement, we incurred a termination penalty of $1.1 million , which was included in selling and administrative expense in the second quarter of 2015. In December 2015, we paid $0.5 million of this termination penalty in connection with an amendment reducing the leased square footage and extending the expiration date to May 2017. We expect to pay the remaining $0.6 million in March 2017. Our monthly lease commitment was $83,331 from January 2016 through May 2016, and increased to $85,626 for the period June 2016 through May 2017. Rental and lease expenses are shown below for the indicated periods (in thousands): 2016 For the three months ended June 30, 2016 $ 1,530 For the six months ended June 30, 2016 $ 3,078 2015 For the three months ended June 30, 2015 $ 1,977 For the six months ended June 30, 2015 $ 3,721 |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 , and December 31, 2015 (in thousands): Fair Value at Reporting Date Using June 30, 2016 Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Observable Inputs Significant Unobservable Inputs Investments Corporate bonds $ 15,593 $ — $ 15,593 $ — Fair Value at Reporting Date Using December 31, 2015 Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Observable Inputs Significant Unobservable Inputs Investments Corporate bonds $ 53,317 $ — $ 53,317 $ — 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 June 30, 2016 , and December 31, 2015 , were as follows (in thousands): June 30, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value Senior notes $ 150,000 $ 137,000 $ 150,000 $ 138,000 For cash and cash equivalents, certificates of deposit and time 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 senior notes 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 | 6 Months Ended |
Jun. 30, 2016 | |
Restructuring Charge [Abstract] | |
RESTRUCTURING CHARGE | RESTRUCTURING CHARGE In January 2016, in response to declining potash prices, 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 5% of the workforce, elimination of the bonus programs for most employees, as well as reductions in compensation. In April we converted our East facility from a mixed-ore facility to a Trio ® -only facility. In May 2016, we initiated a plan to idle mining operations at our West facility and transition it into a care-and-maintenance mode due to the decline in potash prices. For the three months ended June 30, 2016, we recognized restructuring expense of $1.9 million for severance-related payments related to the idling of the West facility, as well as the conversion of our East facility. The majority of the $1.9 million severance-related charge will be paid in the third quarter 2016. For the six months ended June 30, 2016 , we recognized restructuring expense of $2.3 million related to these events. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS As a result of pricing pressure and the resulting economic factors giving rise to the conversion of our East facility to Trio ® -only and the idling of our West facility, the chief operating decision maker separately evaluates our potash and Trio ® operations. Accordingly, we reevaluated our segments and determined that, beginning in the second quarter of 2016, we have two segments: potash and Trio ® . The reportable segments are determined by management based on a number of factors including the types of potassium based fertilizer produced, production processes, markets served and the financial information available for our chief operating decision maker. We evaluate performance based on the gross margins of the respective business segments and do not allocate corporate selling and administrative expenses, among others, to the respective segments. Information for each segment is provided in the tables below: Three Months Ended June 30, 2016 Potash Trio Corporate Consolidated Sales $ 39,196 $ 12,644 $ — $ 51,840 Less: Freight costs 6,882 2,049 — 8,931 Warehousing and handling costs 2,132 406 — 2,538 Cost of goods sold 32,502 9,348 — 41,850 Lower-of-cost-or-market inventory 2,930 — — 2,930 Costs associated with abnormal — 1,057 — 1,057 Gross (Deficit) Margin $ (5,250 ) $ (216 ) $ — $ (5,466 ) Depreciation, depletion and amortization incurred 1 $ 8,647 $ 879 $ 315 $ 9,841 Six Months Ended June 30, 2016 Potash Trio Corporate Consolidated Sales $ 92,891 $ 32,226 $ — $ 125,117 Less: Freight costs 13,433 5,830 — 19,263 Warehousing and handling costs 4,286 916 — 5,202 Cost of goods sold 79,790 21,837 — 101,627 Lower-of-cost-or-market inventory 11,937 — — 11,937 Costs associated with abnormal 650 1,057 — 1,707 Gross (Deficit) Margin $ (17,205 ) $ 2,586 $ — $ (14,619 ) Depreciation, depletion and amortization incurred 1 $ 20,880 $ 2,554 $ 775 $ 24,209 Three Months Ended June 30, 2015 Potash Trio Corporate Consolidated Sales $ 57,093 $ 16,558 $ — $ 73,651 Less: Freight costs 4,478 2,420 — 6,898 Warehousing and handling costs 2,771 666 — 3,437 Cost of goods sold 45,867 9,568 — 55,435 Lower-of-cost-or-market inventory 5,276 — — 5,276 Costs associated with abnormal — — — — Gross (Deficit) Margin $ (1,299 ) $ 3,904 $ — $ 2,605 Depreciation, depletion and amortization incurred 1 $ 15,890 $ 3,063 $ 444 $ 19,397 Six Months Ended June 30, 2015 Potash Trio Corporate Consolidated Sales $ 147,822 $ 42,850 $ — $ 190,672 Less: Freight costs 11,684 6,126 — 17,810 Warehousing and handling costs 5,779 1,405 — 7,184 Cost of goods sold 113,320 25,397 — 138,717 Lower-of-cost-or-market inventory 5,636 — — 5,636 Costs associated with abnormal — — — — Gross Margin $ 11,403 $ 9,922 $ — $ 21,325 Depreciation, depletion and amortization incurred 1 $ 33,633 $ 6,294 $ 746 $ 40,673 1 Depreciation, depletion and amortization incurred for potash and Trio ® includes depreciation, depletion and amortization amounts absorbed in or (relieved from) inventory. Total assets are not presented for each reportable segment as they are not reviewed by, nor otherwise regularly provided to, the chief operating decision maker. All sales of both segments are to external customers. During the three months ended June 30, 2016, we recorded restructuring charges of $1.9 million , all of which was attributable to the potash segment. During the six months ended June 30, 2016, we recorded restructuring charges of $2.3 million , of which $2.1 million was attributable to the potash segment and $0.2 million was attributable to corporate. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Pronouncements Issued But Not Yet Adopted —In August 2013, the FASB issued Accounting Standards Update No. 2014-15, "Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern," which describes how an entity should assess its ability to meet obligations and sets rules for how this information should be disclosed in the financial statements. The new standard applies to all entities for the first annual period in fiscal years ending after December 15, 2016, and interim periods thereafter. We are currently evaluating the requirements of this standard, and have not yet determined the impact on our consolidated financial statements and disclosures. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, as amended by Accounting Standards Update No. 2016-12, "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 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. In February 2016, the FASB issued Accounting Standards Update No. 2016-02 , "Leases (Topic 842)," which requires, among other things, lessees to recognize lease assets and liabilities on their balance sheets for those leases classified as operating leases under previous generally accepted accounting principles. These assets and liabilities must be recorded generally at the present value of the contracted lease payments, and the cost of the lease must be allocated over the lease term on a straight-line basis. This guidance is effective for us for annual and interim periods in fiscal years beginning after December 15, 2018, with a modified retrospective transition method mandated. We are currently evaluating the requirements of this standard and have not yet determined the impact on our consolidated financial statements. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." This standard changes several aspects of how we account for share-based payment award transactions, including income tax consequences, classification of awards as either equity or liabilities, classification of excess tax benefits on the statement of cash flows, forfeitures, minimum statutory tax withholding payments, and classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes. This standard is effective for us for annual and interim periods in fiscal years beginning after December 15, 2016. Early adoption, as specified in the guidance, is permitted in any interim or annual period provided that the entire standard is adopted. We are currently evaluating the requirements of this standard and have not yet determined the impact on our consolidated financial statements. Recently Adopted Accounting Standard —In April 2015, the FASB issued Accounting Standards Update No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs," which became effective for us beginning January 1, 2016, and requires retrospective adoption. In accordance with this standard, our deferred financing costs associated with outstanding debt balances have been reclassified from "Prepaid expenses and other current assets" and "Other assets, net" to "Long-term debt, net." Amortization of such costs continues to be reported as "Interest expense, net." |
FINANCIAL INFROMATION FOR SUBSI
FINANCIAL INFROMATION FOR SUBSIDIARY GUARANTORS OF POSSIBLE FUTURE PUBLIC DEBT (Notes) | 6 Months Ended |
Jun. 30, 2016 | |
Guarantees [Abstract] | |
Schedule of Guarantor Obligations [Table Text Block] | FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS OF POSSIBLE FUTURE PUBLIC DEBT Intrepid Potash, Inc., as the parent company, has no independent assets or operations, and operations are conducted solely through its subsidiaries. Cash generated from operations is held at the parent company level as cash on hand and short- and long-term investments. Cash on hand and short- and long-term investments totaled $47.6 million and $63.6 million at June 30, 2016, and December 31, 2015, respectively. In the event that one or more of our wholly-owned operating subsidiaries guarantee public debt securities in the future, those guarantees will be full and unconditional and will constitute the joint and several obligations of the subsidiary guarantors. Our other subsidiaries are minor. There are no restrictions on our ability to obtain cash dividends or other distributions of funds from the subsidiary guarantors, except those imposed by applicable law. |
SUMMARY OF SIGNIFICANT ACCOUN25
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
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. The lenders under our credit facility have agreed to waive until no later than September 30, 2016, the requirements under our credit facility that we comply with certain financial covenants and that we deliver audited annual financial statements for the year ended December 31, 2015, without any going concern modification. In addition, the holders of our senior notes have agreed to waive until September 30, 2016, the requirement under the terms of the senior notes that we comply with certain financial covenants for the first and second quarters of 2016. If current market conditions continue, we anticipate that our adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization, and certain other expenses, as defined in the credit facility) will not be sufficient for us to return to compliance with these covenants through 2016. As a result, we are working with our lenders and evaluating our options, which could include additional covenant amendments, waivers, or forbearances, alternative financing arrangements, a possible further reduction in the amount of the credit facility, and a possible reduction of our outstanding debt, which may include the payment of prepayment penalties. We have reached an agreement in principle regarding revised terms of our senior notes and have received a commitment letter from a third-party lender for a new credit facility to replace our existing credit facility, subject to various conditions, including that the revised terms of the agreement between us and the holders of our senior notes be satisfactory to the third-party lender. We are working toward completing documentation to close these transactions by September 30, 2016. However, if we are unable to reach definitive agreements, our continued failure to comply with these covenants after September 30, 2016, will result in an event of default under the terms of the senior notes and the credit facility that, if not cured or waived, could result in the acceleration of all outstanding indebtedness, including the acceleration of our senior notes and any amounts outstanding under the credit facility. If the lenders were to make such a demand for repayment, we would be unable to pay the obligations as we do not have existing facilities or sufficient cash on hand to satisfy these obligations. With this material uncertainty surrounding compliance with our debt covenants, declining revenues, lower-of-cost-or-market inventory adjustments, and negative cash flows from operations, there is substantial doubt about our ability to continue as a going concern. While we will continue to work with our lenders, there can be no assurance that we will be successful. The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business. The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets or the amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern. |
Reclassifications [Text Block] | Certain prior period amounts have been reclassified in order to conform to the current period presentation. In accordance with the adoption of a new accounting standard, we have reclassified $ 515,000 of deferred financing costs associated with our outstanding debt from "Other current assets" and "Other assets" to "Long-term debt, net" |
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, valuation of investments, 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 after shipment and agreed to with our customer, revenue is recognized when the final sales price is fixed and determinable and the other revenue recognition criteria have been met. 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. |
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 and expensed directly during the applicable period. The assessment of normal production levels is judgmental and unique to each period. 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. |
(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) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 Anti-dilutive shares of non-vested restricted common stock 447,661 474,481 407,186 161,675 Anti-dilutive shares of stock options outstanding 218,886 319,563 227,370 320,241 Anti-dilutive shares of non-vested performance units 126,050 194,374 127,651 131,621 |
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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net (loss) income $ (13,398 ) $ (4,937 ) $ (31,825 ) $ 1,592 Basic weighted average common shares outstanding 75,839 75,683 75,798 75,636 Add: Dilutive effect of non-vested restricted common stock — — — 90 Add: Dilutive effect of performance units — — — 6 Diluted weighted average common shares outstanding 75,839 75,683 75,798 75,732 (Loss) earnings per share: Basic $ (0.18 ) $ (0.07 ) $ (0.42 ) $ 0.02 Diluted $ (0.18 ) $ (0.07 ) $ (0.42 ) $ 0.02 |
CASH, CASH EQUIVALENTS, AND I27
CASH, CASH EQUIVALENTS, AND INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 , and December 31, 2015 (in thousands): June 30, 2016 December 31, 2015 Cash $ 8,691 $ 9,056 Commercial paper and money market accounts 22,293 251 Total cash and cash equivalents $ 30,984 $ 9,307 Corporate bonds $ 15,592 $ 49,518 Certificates of deposit and time deposits 1,007 1,005 Total short-term investments $ 16,599 $ 50,523 Corporate bonds $ — $ 3,799 Total long-term investments $ — $ 3,799 Total cash, cash equivalents, and investments $ 47,583 $ 63,629 |
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 June 30, 2016 , and December 31, 2015 (in thousands): June 30, 2016 Unrealized Cost Basis Gain Loss Fair Value Corporate bonds $ 15,596 $ 2 $ (5 ) $ 15,593 Certificates of deposit and time deposits 1,007 — — 1,007 Total available-for-sale investments $ 16,603 $ 2 $ (5 ) $ 16,600 December 31, 2015 Unrealized Cost Basis Gain Loss Fair Value Corporate bonds $ 53,403 $ 6 $ (92 ) $ 53,317 Certificates of deposit and time deposits 1,005 — — 1,005 Total available-for-sale investments $ 54,408 $ 6 $ (92 ) $ 54,322 |
INVENTORY AND LONG-TERM PARTS28
INVENTORY AND LONG-TERM PARTS INVENTORY (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 , and December 31, 2015 (in thousands): June 30, 2016 December 31, 2015 Finished goods product inventory $ 64,195 $ 65,200 In-process mineral inventory 24,085 19,769 Total product inventory 88,280 84,969 Current parts inventory, net 21,290 21,562 Total current inventory, net 109,570 106,531 Long-term parts inventory, net 18,389 17,344 Total inventory, net $ 127,959 $ 123,875 |
ASSET RETIREMENT OBLIGATION (Ta
ASSET RETIREMENT OBLIGATION (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 Asset retirement obligation, at beginning of period $ 23,393 $ 22,461 $ 22,951 $ 22,037 Liabilities settled (3 ) (16 ) (3 ) (16 ) Liabilities incurred — — — — Changes in estimated obligations — — — — Accretion of discount 442 424 884 848 Total asset retirement obligation, at end of period $ 23,832 $ 22,869 $ 23,832 $ 22,869 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) - USD ($) $ in Thousands | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | A summary of our valuation allowance activity is as follows (in thousands): Six Months Ended June 30, 2016 2015 Valuation allowance, beginning of period $ 300,601 $ 268 Additions 13,847 — Reversals — — Valuation allowance, end of period $ 314,448 $ 268 | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Valuation Allowances and Reserves, Balance | $ 314,448 | $ 268 | $ 300,601 | $ 268 | |
Valuation Allowances and Reserves, Charged to Other Accounts | 13,847 | $ 0 | |||
Valuation Allowances and Reserves, Recoveries | $ 0 | $ 0 | |||
Schedule of Components of Income Tax (Benefit) Expense | A summary of the provision for income taxes is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Current portion of income tax expense (benefit) $ 1 $ (148 ) $ 3 $ (34 ) Deferred portion of income tax (benefit) expense — (202 ) — 2,755 Total income tax expense (benefit) $ 1 $ (350 ) $ 3 $ 2,721 Effective tax rate — % 6.6 % — % 63.1 % |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Rental and Lease Expense | Rental and lease expenses are shown below for the indicated periods (in thousands): 2016 For the three months ended June 30, 2016 $ 1,530 For the six months ended June 30, 2016 $ 3,078 2015 For the three months ended June 30, 2015 $ 1,977 For the six months ended June 30, 2015 $ 3,721 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 , and December 31, 2015 (in thousands): Fair Value at Reporting Date Using June 30, 2016 Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Observable Inputs Significant Unobservable Inputs Investments Corporate bonds $ 15,593 $ — $ 15,593 $ — Fair Value at Reporting Date Using December 31, 2015 Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Observable Inputs Significant Unobservable Inputs Investments Corporate bonds $ 53,317 $ — $ 53,317 $ — |
Fair Value, by Balance Sheet Grouping | The carrying values and estimated fair values of our financial instruments as of June 30, 2016 , and December 31, 2015 , were as follows (in thousands): June 30, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value Senior notes $ 150,000 $ 137,000 $ 150,000 $ 138,000 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Information for each segment is provided in the tables below: Three Months Ended June 30, 2016 Potash Trio Corporate Consolidated Sales $ 39,196 $ 12,644 $ — $ 51,840 Less: Freight costs 6,882 2,049 — 8,931 Warehousing and handling costs 2,132 406 — 2,538 Cost of goods sold 32,502 9,348 — 41,850 Lower-of-cost-or-market inventory 2,930 — — 2,930 Costs associated with abnormal — 1,057 — 1,057 Gross (Deficit) Margin $ (5,250 ) $ (216 ) $ — $ (5,466 ) Depreciation, depletion and amortization incurred 1 $ 8,647 $ 879 $ 315 $ 9,841 Six Months Ended June 30, 2016 Potash Trio Corporate Consolidated Sales $ 92,891 $ 32,226 $ — $ 125,117 Less: Freight costs 13,433 5,830 — 19,263 Warehousing and handling costs 4,286 916 — 5,202 Cost of goods sold 79,790 21,837 — 101,627 Lower-of-cost-or-market inventory 11,937 — — 11,937 Costs associated with abnormal 650 1,057 — 1,707 Gross (Deficit) Margin $ (17,205 ) $ 2,586 $ — $ (14,619 ) Depreciation, depletion and amortization incurred 1 $ 20,880 $ 2,554 $ 775 $ 24,209 Three Months Ended June 30, 2015 Potash Trio Corporate Consolidated Sales $ 57,093 $ 16,558 $ — $ 73,651 Less: Freight costs 4,478 2,420 — 6,898 Warehousing and handling costs 2,771 666 — 3,437 Cost of goods sold 45,867 9,568 — 55,435 Lower-of-cost-or-market inventory 5,276 — — 5,276 Costs associated with abnormal — — — — Gross (Deficit) Margin $ (1,299 ) $ 3,904 $ — $ 2,605 Depreciation, depletion and amortization incurred 1 $ 15,890 $ 3,063 $ 444 $ 19,397 Six Months Ended June 30, 2015 Potash Trio Corporate Consolidated Sales $ 147,822 $ 42,850 $ — $ 190,672 Less: Freight costs 11,684 6,126 — 17,810 Warehousing and handling costs 5,779 1,405 — 7,184 Cost of goods sold 113,320 25,397 — 138,717 Lower-of-cost-or-market inventory 5,636 — — 5,636 Costs associated with abnormal — — — — Gross Margin $ 11,403 $ 9,922 $ — $ 21,325 Depreciation, depletion and amortization incurred 1 $ 33,633 $ 6,294 $ 746 $ 40,673 1 Depreciation, depletion and amortization incurred for potash and Trio ® includes depreciation, depletion and amortization amounts absorbed in or (relieved from) inventory. |
EARNINGS PER SHARE (Narrative)
EARNINGS PER SHARE (Narrative) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Restricted Stock | ||||
Anti-dilutive weighted average non-vested shares | ||||
Anti-dilutive weighted average non-vested shares (in shares) | 447,661 | 474,481 | 407,186 | 161,675 |
Stock Options | ||||
Anti-dilutive weighted average non-vested shares | ||||
Anti-dilutive weighted average non-vested shares (in shares) | 218,886 | 319,563 | 227,370 | 320,241 |
Performance Units | ||||
Anti-dilutive weighted average non-vested shares | ||||
Anti-dilutive weighted average non-vested shares (in shares) | 126,050 | 194,374 | 127,651 | 131,621 |
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 | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |||||
Net (Loss) Income | $ (13,398) | $ (4,937) | $ (4,937) | $ (31,825) | $ 1,592 |
Basic weighted average common shares outstanding (in shares) | 75,838,782 | 75,683,075 | 75,797,658 | 75,636,343 | |
Add: Dilutive effect of non-vested restricted common stock (in shares) | 0 | 0 | 0 | 89,840 | |
Add: Dilutive effect of performance units (in shares) | 0 | 0 | 0 | 5,727 | |
Diluted weighted average common shares outstanding (in shares) | 75,838,782 | 75,683,000 | 75,683,075 | 75,797,658 | 75,731,910 |
(Loss) Earnings per share: | |||||
Basic (in dollars per share) | $ (0.18) | $ (0.07) | $ (0.42) | $ 0.02 | |
Diluted (in dollars per share) | $ (0.18) | $ (0.07) | $ (0.42) | $ 0.02 |
CASH, CASH EQUIVALENTS, AND I36
CASH, CASH EQUIVALENTS, AND INVESTMENTS (Summary of Cash, Cash Equivalents, and Investments) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Investment [Line Items] | ||||
Cash and cash equivalents | $ 30,984 | $ 9,307 | $ 40,285 | $ 67,589 |
Short-term investments | 16,599 | 50,523 | ||
Long-term investments | 0 | 3,799 | ||
Cash, cash equivalents, and investments | 47,583 | 63,629 | ||
Cash | ||||
Investment [Line Items] | ||||
Cash and cash equivalents | 8,691 | 9,056 | ||
Commercial paper and money market accounts | ||||
Investment [Line Items] | ||||
Cash and cash equivalents | 22,293 | 251 | ||
Corporate bonds | ||||
Investment [Line Items] | ||||
Short-term investments | 15,592 | 49,518 | ||
Long-term investments | 0 | 3,799 | ||
Certificates of deposit and time deposits | ||||
Investment [Line Items] | ||||
Short-term investments | $ 1,007 | $ 1,005 |
CASH, CASH EQUIVALENTS, AND I37
CASH, CASH EQUIVALENTS, AND INVESTMENTS (Schedule of Available-for-Sale Investments) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair value of cash, cash equivalents, and investments | ||
Available-for-sale Securities, Amortized Cost Basis | $ 16,603 | $ 54,408 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 2 | 6 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | 5 | 92 |
Available-for-sale Securities, Fair Value Disclosure | 16,600 | 54,322 |
Corporate bonds | ||
Fair value of cash, cash equivalents, and investments | ||
Available-for-sale Securities, Amortized Cost Basis | 15,596 | 53,403 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 2 | 6 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | 5 | 92 |
Available-for-sale Securities, Fair Value Disclosure | 15,593 | 53,317 |
Certificates of deposit and time deposits | ||
Fair value of cash, cash equivalents, and investments | ||
Available-for-sale Securities, Amortized Cost Basis | 1,007 | 1,005 |
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 | $ 1,007 | $ 1,005 |
CASH, CASH EQUIVALENTS, AND I38
CASH, CASH EQUIVALENTS, AND INVESTMENTS (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2015USD ($) | |
Cash and Cash Equivalents [Abstract] | |
Available-for-sale Securities, Gross Realized Losses | $ 1,000 |
INVENTORY AND LONG-TERM PARTS39
INVENTORY AND LONG-TERM PARTS INVENTORY (Summary of Inventory) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Inventory [Line Items] | ||
Finished goods product inventory, net | $ 64,195 | $ 65,200 |
In-process mineral inventory | 24,085 | 19,769 |
Total product inventory, net | 88,280 | 84,969 |
Current parts inventory | 21,290 | 21,562 |
Total current inventory, net | 109,570 | 106,531 |
Long-term parts inventory | 18,389 | 17,344 |
Total inventory, net | $ 127,959 | $ 123,875 |
INVENTORY AND LONG-TERM PARTS40
INVENTORY AND LONG-TERM PARTS INVENTORY (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Inventory [Line Items] | |||||
Inventory Valuation Reserves | $ 3,300 | $ 500 | $ 3,300 | $ 500 | |
Lower-of-cost-or-market inventory adjustments | 2,930 | 5,276 | $ 5,276 | 11,937 | 5,636 |
Production Related Impairments or Charges | $ 1,057 | $ 0 | $ 0 | $ 1,707 | $ 0 |
PROPERTY, PLANT, EQUIPMENT, A41
PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES (Schedule of Property, Plant, Equipment, and Mineral Properties) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Property, plant, equipment, and mineral properties | ||
Property, Plant and Equipment, Gross | $ 379,701 | $ 363,827 |
Accumulated depreciation | (101,754) | (80,707) |
Depreciable assets, net | 277,947 | 283,120 |
Mineral properties and development costs | 140,250 | 139,751 |
Accumulated depletion | (19,235) | (17,254) |
Total depletable assets, net | 121,015 | 122,497 |
Land | 719 | 719 |
Construction in Progress, Gross | 5,009 | 13,140 |
Property, Plant, Equipment and Mineral Properties, Net | 404,690 | 419,476 |
Buildings Plant [Member] | ||
Property, plant, equipment, and mineral properties | ||
Property, Plant and Equipment, Gross | 83,488 | 81,208 |
Machinery and Equipment [Member] | ||
Property, plant, equipment, and mineral properties | ||
Property, Plant and Equipment, Gross | 221,430 | 209,920 |
Vehicles [Member] | ||
Property, plant, equipment, and mineral properties | ||
Property, Plant and Equipment, Gross | 4,875 | 4,747 |
Office Equipment and Improvements [Member] | ||
Property, plant, equipment, and mineral properties | ||
Property, Plant and Equipment, Gross | 12,177 | 12,001 |
Ponds and Land Improvements [Member] | ||
Property, plant, equipment, and mineral properties | ||
Property, Plant and Equipment, Gross | $ 57,731 | $ 55,951 |
PROPERTY, PLANT, EQUIPMENT, A42
PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES (Schedule of Depreciation, Depletion, and Accretion) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |||||
Depreciation | $ 8,862 | $ 18,485 | $ 21,344 | $ 37,364 | |
Depletion | 537 | 488 | 1,981 | 2,461 | |
Accretion | 442 | 424 | 884 | 848 | |
Total incurred | $ 9,841 | $ 19,397 | $ 19,397 | $ 24,209 | $ 40,673 |
DEBT (Narrative) (Details)
DEBT (Narrative) (Details) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2016USD ($)LeverageRatioFixedCharge | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Jun. 30, 2016USD ($)LeverageRatioFixedCharge | Jun. 30, 2015USD ($) | Mar. 31, 2016 | Dec. 31, 2015USD ($) | Sep. 30, 2014USD ($) | |
Debt | ||||||||
Long-term Line of Credit | $ 0 | $ 0 | $ 0 | |||||
Maximum allowable leverage ratio | 3.5 | |||||||
minimum fixed charge ratio | FixedCharge | 1.3 | 1.3 | ||||||
Minimum Annual Maintenance Capital Expenditures | $ 20,000,000 | $ 20,000,000 | ||||||
Actual Fixed Charge Ratio | (1.4) | (1.4) | ||||||
Cash And Investments Maximum Subtracted From Funded Indebtedness | $ 75,000,000 | $ 75,000,000 | ||||||
Actual Leverage ratio | 10.3 | 10.3 | ||||||
Letters of Credit Outstanding, Amount | $ 500,000 | $ 500,000 | ||||||
Unsecured Senior Notes | 150,000,000 | 150,000,000 | $ 150,000,000 | 150,000,000 | ||||
Deferred Finance Costs, Net | $ (2,160,000) | $ (2,160,000) | (515,000) | |||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.25% | |||||||
Leverage Ratio Exceeding 2.25 To 1 Results in An Increased Interest Rate | LeverageRatio | 2.25 | 2.25 | ||||||
Increase In Interest Rate | 0.00% | 0.00% | 0.00% | |||||
Interest Costs Incurred | $ 3,100,000 | $ 1,700,000 | $ 5,400,000 | $ 3,300,000 | ||||
Deferred Finance Costs, Write-offs | 0.8 | 1.5 | ||||||
Capitalized Interest | $ 100,000 | $ 0 | ||||||
Long-term debt, net | 147,840,000 | $ 147,840,000 | $ 149,485,000 | |||||
Series A Senior Notes | ||||||||
Debt | ||||||||
Unsecured Senior Notes | $ 60,000,000 | $ 60,000,000 | $ 60,000,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.23% | 3.23% | 3.23% | |||||
Series B Senior Notes | ||||||||
Debt | ||||||||
Unsecured Senior Notes | $ 45,000,000 | $ 45,000,000 | $ 45,000,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.13% | 4.13% | 4.13% | |||||
Series C Senior Notes | ||||||||
Debt | ||||||||
Unsecured Senior Notes | $ 45,000,000 | $ 45,000,000 | $ 45,000,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.28% | 4.28% | 4.28% | |||||
Unsecured credit facility | ||||||||
Debt | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000 | $ 1,000,000 | $ 250,000,000 | |||||
Line of Credit Facility, Borrowings | 0 | $ 0 | 0 | 0 | ||||
Line of Credit Facility, Repayments | $ 0 | $ 0 | $ 0 | $ 0 |
ASSET RETIREMENT OBLIGATION (Na
ASSET RETIREMENT OBLIGATION (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
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 | $ 0 | |
Undiscounted amount of asset retirement obligation | $ 58.4 |
ASSET RETIREMENT OBLIGATION (Sc
ASSET RETIREMENT OBLIGATION (Schedule of Changes to Asset Retirement Obligation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Mar. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | ||||
Asset retirement obligation, at beginning of period | $ 23,393 | $ 22,037 | $ 22,951 | $ 22,037 |
Liabilities settled | (3) | (16) | (3) | (16) |
Liabilities incurred | 0 | 0 | 0 | 0 |
Asset Retirement Obligation, Revision of Estimate | 0 | 0 | 0 | 0 |
Accretion of discount | 442 | 424 | 884 | 848 |
Total asset retirement obligation, at end of period | $ 23,832 | $ 22,461 | $ 23,832 | $ 22,869 |
COMPENSATION PLANS (Narrative)
COMPENSATION PLANS (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Feb. 22, 2016 | Dec. 31, 2015 | |
Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Outstanding non-vested equity-based awards, end of period (in shares) | 760,303 | 760,303 | 459,663 | |||
Period over which grants vest (in years) | 3 years | |||||
Allocated Share-based Compensation Expense | $ 474,236 | $ 816,117 | $ 1,191,727 | $ 1,717,658 | ||
Total unrecognized compensation expense | $ 2,200,000 | $ 2,200,000 | ||||
Performance Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Outstanding non-vested equity-based awards, end of period (in shares) | 252,100 | 252,100 | ||||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Outstanding non-qualified stock options, end of period (in shares) | 218,857 | 218,857 | ||||
Common Stock Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock available for issuance under the Plan (in shares) | 6,400,000 | 6,400,000 | ||||
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) | 252,100 | 252,100 |
COMPENSATION PLANS (Summary of
COMPENSATION PLANS (Summary of Non-Vested Restricted Common Stock Activity) (Details) - Restricted Stock - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 474,236 | $ 816,117 | $ 1,191,727 | $ 1,717,658 |
Shares | ||||
Non-vested restricted shares of common stock, beginning of period (in shares) | 459,663 | |||
Granted (in shares) | 562,010 | |||
Vested (in shares) | (211,861) | |||
Forfeited (in shares) | (49,509) | |||
Non-vested restricted shares of common stock, end of period (in shares) | 760,303 | 760,303 | ||
Weighted Average Grant-Date Fair Value | ||||
Non-vested restricted shares of common stock, beginning of period (in dollars per share) | $ 14.93 | |||
Granted (in dollars per share) | 1.28 | |||
Vested (in dollars per share) | 15.53 | |||
Forfeited (in dollars per share) | 14.46 | |||
Non-vested restricted shares of common stock, end of period (in dollars per share) | $ 11.09 | $ 11.09 |
COMPENSATION PLANS (Summary o48
COMPENSATION PLANS (Summary of Stock Option Activity) (Details) - Stock Options | 6 Months Ended |
Jun. 30, 2016USD ($)$ / sharesshares | |
Stock Option Activity, Number of Shares | |
Outstanding non-qualified stock options, end of period (in shares) | shares | 218,857 |
Vested or expected to vest, end of period (in shares) | shares | 218,857 |
Exercisable non-qualified stock options, end of period (in shares) | shares | 218,857 |
Stock Options, Weighted Average Exercise Price | |
Outstanding non-qualified stock options, end of period (in dollars per share) | $ / shares | $ 25.74 |
Vested or expected to vest, end of period (in dollars per share) | $ / shares | 25.74 |
Exercisable non-qualified stock options, end of period (in dollars per share) | $ / shares | $ 25.74 |
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 |
Outstanding non-qualified stock options, end of period (in years) | 3 years 1 month 6 days |
Vested or expected to vest, end of period (in years) | 3 years 1 month 6 days |
Exercisable non-qualified stock options, end of period (in years) | 3 years 1 month 6 days |
INCOME TAXES (Schedule of Compo
INCOME TAXES (Schedule of Components of Income Tax (Benefit) Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Mar. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||
Deferred Tax Assets, Net | $ 0 | $ 0 | $ 0 | ||
Current portion of income tax (benefit) expense | 1 | $ (148) | 3 | $ (34) | |
Deferred portion of income tax (benefit) expense | 0 | 202 | 0 | (2,755) | |
Total income tax (benefit) expense | $ 1 | $ (350) | $ 3 | $ 2,721 | |
Effective tax rate | 0.00% | 6.60% | 0.00% | 63.10% |
COMMITMENTS AND CONTINGENCIES50
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2016 | Mar. 31, 2016 | |
Reclamation Deposits and Surety Bonds | ||||
Security placed with the State of Utah and BLM | $ 19,500,000 | |||
Long-term restricted cash deposits | 2,000,000 | |||
Surety bonds issued by an insurer | $ 17,500,000 | |||
Future Operating Lease Commitments | ||||
Operating Lease, Contract Term, Maximum (in years) | 20 years | |||
Lease Termination Penalty | $ 1,100,000 | |||
Early Lease Termination Penalty Paid | $ 500,000 | |||
Accrued Early Termination Penalty | $ 600,000 | |||
Current Monthly Office Rent | $ 85,626 | $ 83,331 |
COMMITMENTS AND CONTINGENCIES51
COMMITMENTS AND CONTINGENCIES (Schedule of Rental and Lease Expense) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||||
Current Monthly Office Rent | $ 85,626 | $ 85,626 | $ 83,331 | ||
Rental and lease expenses | $ 1,530,000 | $ 1,977,000 | $ 3,078,000 | $ 3,721,000 |
FAIR VALUE (Schedule of Assets
FAIR VALUE (Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Investments | ||
Corporate bonds | $ 15,593 | $ 53,317 |
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 | 15,593 | 53,317 |
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 | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Face Amount | $ 150,000 | $ 150,000 |
Long-term debt, fair value | $ 137,000 | $ 138,000 |
RESTRUCTURING CHARGE (Narrative
RESTRUCTURING CHARGE (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Restructuring Charge [Abstract] | |||||
Restructuring charge, percentage of eliminated positions | 5.00% | ||||
Restructuring charge | $ 1,914 | $ 0 | $ 2,314 | $ 0 |
BUSINESS SEGMENTS (Narrative) (
BUSINESS SEGMENTS (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016USD ($)segment | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | segment | 2 | |||
Segment Reporting Information [Line Items] | ||||
Restructuring charges | $ 1,914 | $ 0 | $ 2,314 | $ 0 |
Operating Segments [Member] | Potash [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring charges | $ 1,900 | 2,100 | ||
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring charges | $ 200 |
BUSINESS SEGMENTS (Information
BUSINESS SEGMENTS (Information by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | |||||
Sales | $ 51,840 | $ 73,651 | $ 73,651 | $ 125,117 | $ 190,672 |
Less: Freight costs | 8,931 | 6,898 | 6,898 | 19,263 | 17,810 |
Warehousing and handling costs | 2,538 | 3,437 | 3,437 | 5,202 | 7,184 |
Cost of goods sold | 41,850 | 55,435 | 55,435 | 101,627 | 138,717 |
Lower-of-cost-or-market inventory adjustments | 2,930 | 5,276 | 5,276 | 11,937 | 5,636 |
Costs associated with abnormal production and other | 1,057 | 0 | 0 | 1,707 | 0 |
Gross (Deficit) Margin | (5,466) | 2,605 | 2,605 | (14,619) | 21,325 |
Depreciation, depletion and amortization expense | 9,841 | 19,397 | $ 19,397 | 24,209 | 40,673 |
Operating Segments [Member] | Potash [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 39,196 | 57,093 | 92,891 | 147,822 | |
Less: Freight costs | 6,882 | 4,478 | 13,433 | 11,684 | |
Warehousing and handling costs | 2,132 | 2,771 | 4,286 | 5,779 | |
Cost of goods sold | 32,502 | 45,867 | 79,790 | 113,320 | |
Lower-of-cost-or-market inventory adjustments | 2,930 | 5,276 | 11,937 | 5,636 | |
Costs associated with abnormal production and other | 0 | 0 | 650 | 0 | |
Gross (Deficit) Margin | (5,250) | (1,299) | (17,205) | 11,403 | |
Depreciation, depletion and amortization expense | 8,647 | 15,890 | 20,880 | 33,633 | |
Operating Segments [Member] | Trio [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 12,644 | 16,558 | 32,226 | 42,850 | |
Less: Freight costs | 2,049 | 2,420 | 5,830 | 6,126 | |
Warehousing and handling costs | 406 | 666 | 916 | 1,405 | |
Cost of goods sold | 9,348 | 9,568 | 21,837 | 25,397 | |
Lower-of-cost-or-market inventory adjustments | 0 | 0 | 0 | 0 | |
Costs associated with abnormal production and other | 1,057 | 0 | 1,057 | 0 | |
Gross (Deficit) Margin | (216) | 3,904 | 2,586 | 9,922 | |
Depreciation, depletion and amortization expense | 879 | 3,063 | 2,554 | 6,294 | |
Corporate/Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 0 | 0 | 0 | 0 | |
Less: Freight costs | 0 | 0 | 0 | 0 | |
Warehousing and handling costs | 0 | 0 | 0 | 0 | |
Cost of goods sold | 0 | 0 | 0 | 0 | |
Lower-of-cost-or-market inventory adjustments | 0 | 0 | 0 | 0 | |
Costs associated with abnormal production and other | 0 | 0 | 0 | 0 | |
Gross (Deficit) Margin | 0 | 0 | 0 | 0 | |
Depreciation, depletion and amortization expense | $ 315 | $ 444 | $ 775 | $ 746 |