Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 16, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Intrepid Potash, Inc. | ||
Entity Central Index Key | 1,421,461 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
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 | Accelerated Filer | ||
Entity Public Float | $ 210 | ||
Entity Common Stock, Shares Outstanding | 130,512,751 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 1,068 | $ 4,464 |
Accounts receivable: | ||
Trade, net | 15,076 | 10,343 |
Other receivables, net | 762 | 492 |
Refundable income taxes | 2,663 | 1,379 |
Inventory, net | 83,126 | 94,355 |
Other current assets | 9,251 | 12,710 |
Total current assets | 111,946 | 123,743 |
Property, plant, equipment, and mineral properties, net | 364,542 | 388,490 |
Long-term parts inventory, net | 30,611 | 21,037 |
Other assets, net | 3,955 | 7,631 |
Total Assets | 511,054 | 540,901 |
Accounts payable: | ||
Trade | 11,103 | 10,210 |
Related parties | 28 | 31 |
Accrued liabilities | 8,074 | 8,690 |
Accrued employee compensation and benefits | 4,317 | 4,225 |
Other current liabilities | 64 | 964 |
Advances on credit facility | 3,900 | |
Current portion of long-term debt | 10,000 | |
Total current liabilities | 37,486 | 24,120 |
Long-term debt, net | 49,437 | 133,434 |
Asset retirement obligation | 21,476 | 19,976 |
Other non-current liabilities | 102 | |
Total Liabilities | 108,501 | 177,530 |
Commitments and Contingencies | ||
Common stock, $0.001 par value; 400,000,000 shares authorized; and 127,646,530 and 75,839,998 shares outstanding at December 31, 2017, and 2016, respectively | 128 | 76 |
Additional paid-in capital | 645,813 | 583,653 |
Retained earnings | (243,388) | (220,358) |
Total Stockholders' Equity | 402,553 | 363,371 |
Total Liabilities and Stockholders' Equity | $ 511,054 | $ 540,901 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares outstanding | 127,646,530 | 75,839,998 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Income Statement [Abstract] | ||||
Sales | $ 157,607 | $ 210,948 | $ 287,183 | |
Less: | ||||
Freight costs | 29,039 | 36,256 | 28,723 | |
Warehousing and handling costs | 9,670 | 11,006 | 13,939 | |
Cost of goods sold | [1] | 105,795 | 170,852 | 217,821 |
Lower-of-cost-or-market inventory adjustments | 7,324 | 20,374 | 31,772 | |
Costs associated with abnormal production and other | 0 | 1,707 | 10,405 | |
Gross Margin (Deficit) | 5,779 | (29,247) | (15,477) | |
Selling and administrative | 19,461 | 20,034 | 27,486 | |
Debt restructuring expense | 3,072 | 0 | ||
Accretion of asset retirement obligation | 1,558 | 1,768 | 1,696 | |
Restructuring expense | 266 | 2,723 | ||
Impairment of long-lived assets | 323,796 | |||
Care and maintenance expense | 1,687 | 2,603 | 0 | |
Other operating (income) expense | (2,789) | (1,666) | 1,335 | |
Operating Loss | (14,404) | (57,781) | (369,790) | |
Other Income (Expense) | ||||
Interest expense, net | (11,692) | (11,622) | (6,351) | |
Interest income | 6 | 286 | 763 | |
Other income | 397 | 1,122 | 575 | |
Loss Before Income Taxes | (25,693) | (67,995) | (374,803) | |
Income Tax Benefit (Expense) | 2,783 | 1,362 | (149,973) | |
Net Loss | $ (22,910) | $ (66,633) | $ (524,776) | |
Weighted Average Shares Outstanding: | ||||
Basic and diluted (in shares) | 115,708,859 | 75,818,735 | 75,669,489 | |
(Loss) Earnings Per Share: | ||||
Basic and diluted (in dollars per share) | $ (0.20) | $ (0.88) | $ (6.94) | |
[1] | Cost of goods sold for Potash is presented net of by-product credits, which were $10.6 million, $9.0 million and $7.9 million for the years ended December 31, 2017, 2016, and 2015, respectively. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net Loss | $ (22,910) | $ (66,633) | $ (524,776) |
Net change in unrealized gains (losses) on investments available for sale | 0 | 52 | (24) |
Other Comprehensive Loss | 0 | 52 | (24) |
Comprehensive (Loss) | $ (22,910) | $ (66,581) | $ (524,800) |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings (Deficit) [Member] |
Balance (in shares) at Dec. 31, 2014 | 75,536,741 | ||||
Balance at Dec. 31, 2014 | $ 947,285 | $ 76 | $ 576,186 | $ (28) | $ 371,051 |
Increase (Decrease) in Stockholders' Equity | |||||
Net change in other comprehensive loss | (24) | (24) | |||
Net Loss | (524,776) | (524,776) | |||
Stock-based compensation | 5,080 | 5,080 | |||
Vesting of restricted common stock, net of restricted common stock used to fund employee income tax withholding due upon vesting | (1,039) | (1,039) | |||
Vesting of restricted common stock, net of restricted common stock used to fund employee income tax withholding due upon vesting (shares) | 165,959 | ||||
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 | |||||
Net change in other comprehensive loss | 52 | 52 | |||
Net Loss | (66,633) | (66,633) | |||
Stock-based compensation | 3,599 | 3,599 | |||
Vesting of restricted common stock, net of restricted common stock used to fund employee income tax withholding due upon vesting | (173) | (173) | |||
Vesting of restricted common stock, net of restricted common stock used to fund employee income tax withholding due upon vesting (shares) | 137,298 | ||||
Balance (in shares) at Dec. 31, 2016 | 75,839,998 | ||||
Balance at Dec. 31, 2016 | 363,371 | $ 76 | 583,653 | (220,358) | |
Adjustment to opening balance | 120 | (120) | |||
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock (shares) | 50,612,027 | ||||
Issuance of common stock | 59,130 | $ 51 | 59,079 | ||
Net change in other comprehensive loss | 0 | ||||
Net Loss | (22,910) | (22,910) | |||
Stock-based compensation | 3,622 | 3,622 | |||
Vesting of restricted common stock, net of restricted common stock used to fund employee income tax withholding due upon vesting | (781) | (782) | |||
Vesting of restricted common stock, net of restricted common stock used to fund employee income tax withholding due upon vesting | $ 1 | ||||
Vesting of restricted common stock, net of restricted common stock used to fund employee income tax withholding due upon vesting (shares) | 1,077,292 | ||||
Exercise of stock options (in shares) | 117,213 | ||||
Exercise of stock option | 121 | 121 | |||
Balance (in shares) at Dec. 31, 2017 | 127,646,530 | ||||
Balance at Dec. 31, 2017 | $ 402,553 | $ 128 | $ 645,813 | $ 0 | $ (243,388) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Reconciliation of net income to net cash provided by operating activities: | ||||
Net Loss | $ (22,910) | $ (66,633) | $ (524,776) | |
Impairment of long-lived assets | 323,796 | |||
Deferred income taxes | 150,096 | |||
Depreciation, depletion, and accretion | [1] | 34,767 | 42,681 | 87,676 |
Amortization of deferred financing costs | 1,778 | 2,113 | 352 | |
Stock-based compensation | 3,622 | 3,599 | 5,080 | |
Reserve for obsolescence | 1,072 | 349 | 2,260 | |
Allowance for doubtful accounts | 865 | |||
Loss on disposal of assets | 1,830 | 262 | 679 | |
Lower-of-cost-or-market inventory adjustments | 7,324 | 20,374 | 31,772 | |
Other | 3,008 | 480 | 1,495 | |
Changes in operating assets and liabilities: | ||||
Trade accounts receivable, net | (5,599) | (600) | 18,818 | |
Other receivables, net | (270) | 977 | 2,126 | |
Refundable income taxes | (1,284) | (1,163) | (201) | |
Inventory, net | (6,740) | (12,239) | (57,448) | |
Other current assets | 3,459 | 5,370 | (13,227) | |
Accounts payable, accrued liabilities and accrued employee compensation and benefits | (3,809) | (12,387) | (5,553) | |
Other liabilities | 102 | (1,453) | (255) | |
Net cash provided by (used in) operating activities | 17,215 | (18,270) | 22,690 | |
Cash Flows from Investing Activities: | ||||
Additions to property, plant, equipment, and mineral properties | (13,505) | (17,892) | (46,016) | |
Proceeds from sale of property, plant, equipment, and mineral properties | 5,652 | |||
Purchases of investments | (10,325) | (78,568) | ||
Proceeds from sale of investments | 1 | 60,727 | 45,007 | |
Net cash (used in) provided by investing activities | (7,852) | 32,510 | (79,577) | |
Cash Flows from Financing Activities: | ||||
Issuance of common stock, net of transaction expense | 59,130 | |||
Repayments of long-term debt | (75,000) | (15,000) | ||
Proceeds from from short-term borrowings on credit facility | 22,000 | |||
Repayments of short-term borrowings on credit facility | (18,100) | |||
Debt issuance costs | (129) | (3,910) | (356) | |
Employee tax withholding paid for restricted stock upon vesting | (781) | (173) | (1,039) | |
Proceeds from exercise of stock options | 121 | |||
Net cash used in financing activities | (12,759) | (19,083) | (1,395) | |
Net Change in Cash and Cash Equivalents | (3,396) | (4,843) | (58,282) | |
Cash and Cash Equivalents, beginning of period | 4,464 | 9,307 | 67,589 | |
Cash and Cash Equivalents, end of period | 1,068 | 4,464 | 9,307 | |
Supplemental disclosure of cash flow information | ||||
Interest, net of $0.1 million, $0.4 million, and $0.3 million of capitalized interest | 11,639 | 8,966 | 6,080 | |
Income taxes | (1,499) | (100) | 13 | |
Accrued purchases for property, plant, equipment, mineral properties, and development costs | $ 4,068 | $ 793 | $ 3,778 | |
[1] | Depreciation, depletion and amortization incurred for potash and Trio® excludes depreciation, depletion and amortization amounts absorbed in or (relieved from) inventory. |
CONSOLIDATED STATEMENTS OF CAS8
CONSOLIDATED STATEMENTS OF CASH FLOWS CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest Costs Capitalized Adjustment | $ 130 | $ 449 | $ 293 |
COMPANY BACKGROUND
COMPANY BACKGROUND | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [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 global 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. In addition, we sell by-products including salt, magnesium chloride, and brine and other products such as water. Our extraction and production operations are conducted entirely in the continental United States. We produce potash from three solution mining facilities: our HB solution mine in Carlsbad, New Mexico, our solution mine in Moab, Utah and our brine recovery mine in Wendover, Utah. We also operate our North compaction facility in Carlsbad, New Mexico, which compacts and granulates product from the HB mine. We produce Trio ® from our conventional underground East mine in Carlsbad, New Mexico. Until mid-2016, we also produced potash from our East and West mines in Carlsbad, New Mexico. In April 2016, we converted our East facility from a mixed-ore facility that produced both potash and Trio ® to a Trio ® ‑only facility. In addition, in early July 2016, we idled mining operations at our West facility and transitioned the facility into care and maintenance. These changes were designed to increase our production of Trio ® , a product that had traditionally shown more resilience to pricing pressure than potash, and to lower costs in a time of declining potash prices. We manage sales and marketing operations centrally. This allows us to evaluate the product needs of our customers and then centrally determine which of our production facilities to use to fill customer orders in a manner designed to realize the highest average net realized sales price per ton. Average net realized sales price per ton is a non-GAAP measure that we calculate by deducting freight costs from total sales and then by dividing this result by tons of product sold during the period. We also monitor product inventory levels and overall production costs centrally. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation —Our consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates —The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results may differ significantly from these estimates under different assumptions or conditions. Significant estimates include, but are not limited to, those for proven and probable mineral reserves, the related present value of estimated future net cash flows, useful lives of plant assets, asset retirement obligations, normal inventory production levels, inventory valuations, the valuation of equity awards, the valuation of receivables, estimated future net cash flows used in long-lived assets impairment analysis, the related valuation of our long-lived assets, 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 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. 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. By-Product Credits —When by-product inventories are sold, we record the sale of by-products as a credit to cost of goods sold. Inventory and Long-Term Parts 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. Parts inventory, including critical spares, that is not expected to be used within a period of one year is classified as non-current. Parts and supply inventory cost is determined using the lower of average acquisition cost or estimated replacement cost. Detailed reviews are performed related to the net realizable value of parts inventory, giving consideration to quality, slow-moving items, obsolescence, excessive levels, and other factors. Parts inventories that have not turned over in more than a year, excluding parts classified as critical spares, are reviewed for obsolescence and, if deemed appropriate, are included in the determination of an allowance for obsolescence. Property, Plant, Equipment, Mineral Properties, and Development Costs —Property, plant, and equipment are stated at historical cost. Expenditures for property, plant, and equipment relating to new assets or improvements are capitalized, provided the expenditure extends the useful life of an asset or extends the asset's functionality. Property, plant, and equipment are depreciated under the straight-line method using estimated useful lives. The estimated useful lives of property, plant, and equipment are evaluated periodically as changes in estimates occur. No depreciation is taken on assets classified as construction in progress until the asset is placed into service. Gains and losses are recorded upon retirement, sale, or disposal of assets. Maintenance and repair costs are recognized as period costs when incurred. Capitalized interest, to the extent of debt outstanding, is calculated and capitalized on assets that are being constructed, drilled, or built or that are otherwise classified as construction in progress. Mineral properties and development costs, which are referred to collectively as mineral properties, include acquisition costs, the cost of drilling production wells, and the cost of other development work, all of which are capitalized. Depletion of mineral properties is calculated using the units-of-production method over the estimated life of the relevant ore body. The lives of reserves used for accounting purposes are shorter than current reserve life determinations due to uncertainties inherent in long-term estimates. These reserve life estimates have been prepared by us and reviewed and independently determined by mine consultants. Tons of potash and langbeinite in the proven and probable reserves are expressed in terms of expected finished tons of product to be realized, net of estimated losses. Market price fluctuations of potash or Trio ® , as well as increased production costs or reduced recovery rates, could render proven and probable reserves containing relatively lower grades of mineralization uneconomic to exploit and might result in a reduction of reserves. In addition, the provisions of our mineral leases, including royalty provisions, are subject to periodic readjustment by the state and federal government, which could affect the economics of our reserve estimates. Significant changes in the estimated reserves could have a material impact on our results of operations and financial position. Recoverability of Long-Lived Assets —We evaluate our long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amount may not be recoverable. An impairment is potentially considered to exist if an asset group's total estimated net future cash flows on an undiscounted basis are less than the carrying amount of the related asset. An impairment loss is measured and recorded based on the excess of the carrying amount of long-lived assets over its estimated fair value. Changes in significant assumptions underlying future cash flow estimates or fair values of asset groups may have a material effect on our financial position and results of operations. Sales price is a significant element of any cash flow estimate, particularly for higher cost operations. Other assumptions we estimate include, among other things, the economic life of the asset, sales volume, inflation, raw materials costs, cost of capital, tax rates, and capital spending. Factors we generally will consider important and which could trigger an impairment review of the carrying value of long-lived assets include the following: • significant underperformance relative to expected operating results or operating losses • significant changes in the manner of use of assets or the strategy for our overall business • the denial or delay of necessary permits or approvals that would affect the utilization of our tangible assets • underutilization of our tangible assets • discontinuance of certain products by us or our customers • a decrease in estimated mineral reserves • significant negative industry or economic trends Exploration Costs —Exploration costs include geological and geophysical work performed on areas that do not yet have proven and probable reserves declared. These costs are expensed as incurred. Asset Retirement Obligation —Reclamation costs are initially recorded as a liability associated with the asset to be reclaimed or abandoned, based on applicable inflation assumptions and discount rates. The accretion of this discounted liability is recognized as expense over the life of the related assets, and the liability is periodically adjusted to reflect changes in the estimates of either the timing or amount of the reclamation and abandonment costs. Planned Turnaround Maintenance —Each production operation typically shuts down periodically for planned maintenance activities. The costs of maintenance turnarounds at our facilities are considered part of production costs and are absorbed into inventory in the period incurred. Leases —Upon entering into leases, we evaluate whether leases are operating or capital leases. Operating lease expense is recognized as incurred. If lease payments change over the contractual term or involve contingent amounts, the total estimated cost over the term is recognized on a straight-line basis. Income Taxes —We are a subchapter C corporation and, therefore, are subject to U.S. federal and state income taxes. We recognize income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the periods in which the deferred tax liability or asset is expected to be settled or realized. We record a valuation allowance if it is deemed more likely than not that our deferred income tax assets will not be realized in full. These determinations are subject to ongoing assessment. Cash and Cash Equivalents —Cash and cash equivalents consist of cash and liquid investments with an original maturity of three months or less. Fair Value of Financial Instruments —Our financial instruments include cash and cash equivalents, restricted cash, accounts receivable, refundable income taxes, accounts payable and current accrued liabilities. These instruments are carried at cost, which approximates fair value due to the short-term maturities of the instruments. Allowances for doubtful accounts are recorded against the accounts receivable balance to estimate net realizable value. The fair value of the long-term debt is estimated using discounted cash flow analysis based on current borrowing rates for debt with similar remaining maturities and ratings. Amounts outstanding under our secured credit facility are carried at cost, which approximates fair value, due to the short-term nature of the borrowings. 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 per common share of stock is calculated by dividing net income 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 restricted shares, performance units, and non‑qualified stock options. The dilutive effect of stock based compensation arrangements is computed using the treasury‑stock method. Following the lapse of the vesting period of restricted shares, the shares are considered issued and therefore are included in the number of issued and outstanding shares for purposes of these calculations. When we report a net loss, all potentially dilutive securities are considered anti-dilutive and are excluded from the dilutive loss per share calculation. Stock‑Based Compensation —We account for stock-based compensation by recording expense using the fair value of the awards at the time of grant. We have recorded compensation expense associated with the issuance of restricted shares, performance units, and non-qualified stock options, all of which are subject to service conditions and in some cases subject to operational performance or market-based conditions. The expense associated with such awards is recognized over the service period associated with each grant. Expense associated with awards with service only conditions is recognized using the straight-line recognition method over the requisite service period of the award, which is generally the vesting period of the award. Expense associated with awards that contain both a service condition and a market condition are recognized using the accelerated recognition method over the requisite service period of the award, which is generally the longest of the explicit service period or the derived service period (expected date the market condition is estimated to be achieved). Recently Adopted Accounting Standards —In August 2013, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 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, with early application permitted. We adopted this guidance in 2016 and it did not have a material impact on the disclosures included in our consolidated financial statements. In April 2015, the FASB issued ASU 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" and "Current portion of long-term debt, net." Amortization of such costs continues to be reported as "Interest expense, net." In accordance with the adoption of this new accounting standard, we have reclassified $1.6 million of deferred financing costs associated with our outstanding debt from "Prepaid expenses and other current assets" and "Other assets" to "Long-term debt, net" as of December 31, 2015 to conform to the December 31, 2016, presentation. In July 2015, the FASB issued ASU 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. This standard 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 was effective for us beginning January 1, 2017. The adoption of this standard did not have a material impact on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting," which became effective for us beginning January 1, 2017. 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. In accordance with adoption of this standard share-based payment award forfeiture expense will no longer be estimated and will be recorded as forfeitures occur and we have recorded a $0.1 million adjustment to beginning retained earnings for the impact of this cumulative change. Pronouncements Issued But Not Yet Adopted —In May 2014, the FASB issued ASU No. 2014-09, as amended by ASU 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. Adoption of the standard may be applied retrospectively to each prior period presented (full retrospective method) or retrospectively with the cumulative effect recognized as of the date of initial application (modified retrospective method). This guidance is effective for us beginning January 1, 2018 and we will apply the full retrospective method. Accordingly, for our public filings beginning with our Quarterly Report on Form 10-Q for the quarter ending March 31, 2018, we will present prior periods as if revenue were recognized under Topic 606. Our revenue is primarily generated from the sale of Potash and Trio ® to customers. These sales predominantly contain a single delivery element and revenue is recognized at a single point in time when ownership, risk and rewards transfer to the buyer. During the fourth quarter of 2017, we finalized our assessment of the impact that the new standard will have on our consolidated results of operations, financial position, and disclosures. As the adoption of the new guidance will not result in a significant shift in the timing of revenue recognition for our sales, we do not expect the new guidance to have a material impact on our Consolidated Financial Statements. In February 2016, the FASB issued ASU 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. As our mineral leases are exempt from the new standard and our current operating leases are generally less than twelve months in term, we do not believe the adoption of this new standard will have a material impact on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows (Topic 230)" which is intended to clarify and align how certain cash receipts and cash payments are presented and classified in the statement of cash flows where there is currently diversity in practice. ASU 2016-15 specifically addresses eight classification issues within the statement of cash flows including debt prepayments or debt extinguishment costs; proceeds from the settlement of insurance claims; and separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective for annual and interim periods in fiscal years beginning after December 15, 2017. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, "Income Taxes (Topic 740)" which requires entities to recognize at the transaction date the income tax consequences of intercompany asset transfers other than inventory. ASU No. 2016-16 is effective for annual and interim periods in fiscal years beginning after December 15, 2017. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In November 2016, the FASB issued ASU Updated 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash" which will require entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows and will no longer require transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. This standard is effective for us in annual and interim periods in fiscal years beginning after December 15, 2017. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | PER SHARE Basic earnings or loss per share is computed by dividing net income or loss by the weighted-average number of shares of common stock outstanding during the period. For purposes of determining diluted earnings per share, basic weighted-average common shares outstanding are adjusted to include potentially dilutive securities, including restricted shares, stock options, and performance units. The treasury-stock method is used to measure the dilutive impact of potentially dilutive shares. Potentially dilutive shares 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. Because we have net losses for each of the three years ended December 31, 2017, 2016, and 2015, all potentially dilutive shares are excluded from the diluted weighted-average common shares outstanding for each of those years. The following table shows anti-dilutive shares excluded from the calculation of diluted loss per share: Year Ended December 31, 2017 2016 2015 Anti-dilutive effect of restricted shares 3,327,789 992,751 468,737 Anti-dilutive effect of stock options outstanding 1,711,288 468,724 294,318 Anti-dilutive effect of performance units 63,025 126,846 167,443 The following table sets forth the calculation of basic and diluted earnings per share (in thousands, except per share amounts): Year Ended December 31, 2017 2016 2015 Net loss $ (22,910 ) $ (66,633 ) $ (524,776 ) Basic and diluted weighted average common shares outstanding 115,709 75,819 75,669 Basic and diluted loss per share $ (0.20 ) $ (0.88 ) $ (6.94 ) |
INVENTORY AND LONG-TERM PARTS I
INVENTORY AND LONG-TERM PARTS INVENTORY | 12 Months Ended |
Dec. 31, 2017 | |
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 December 31, 2017 , and 2016 , respectively (in thousands): December 31, 2017 2016 Finished goods product inventory $ 54,577 $ 52,571 In-process mineral inventory 19,822 22,126 Total product inventory 74,399 74,697 Current parts inventory, net 8,727 19,658 Total current inventory, net 83,126 94,355 Long-term parts inventory, net 30,611 21,037 Total inventory, net $ 113,737 $ 115,392 Parts inventories are shown net of any required allowances. During the years ended December 31, 2017 , 2016 , and 2015 , we recorded charges of approximately $7.3 million , $20.4 million , and $31.8 million , respectively, as a result of routine assessments of the lower of weighted average cost or estimated net realizable value on our finished goods product inventory. During the conversion of the East plant to a Trio ® -only facility in 2016, we suspended potash production at our East facility for a total of seven days. As a result, approximately $1.7 million of production costs at our East facility that would have been allocated to additional tons produced, were excluded from our inventory values and instead expensed as period production costs in the year ended December 31, 2016. During the third quarter of 2015, we received an order issued by MSHA relating to maintenance issues and salt build‑up in the ore hoisting shaft at our West mine. Upon issuance of the order, we suspended production at the West mine for 15 days while we took corrective actions to resolve the issues. As a result, potash production from our West mine was abnormally low during this period. In addition, although production resumed in mid-September 2015, we continued to perform incremental maintenance on the ore hoisting shaft into the fourth quarter of 2015, during which time production at the West mine was temporarily suspended. As a result of the temporary suspensions of production during 2015, we determined that approximately $ 7.5 million and $ 2.9 million of production costs at our West and East facilities, respectively, would have been allocated to additional tons produced, assuming we had been operating at normal production rates. Accordingly, these costs were excluded from our inventory values and instead expensed as period production costs in the year ended December 31, 2015. We compare actual production relative to what we estimated could have been produced if we had not incurred the temporary production suspensions and lower operating rates in order to determine the abnormal cost adjustment. |
PROPERTY, PLANT, EQUIPMENT AND
PROPERTY, PLANT, EQUIPMENT AND MINERAL PROPERTIES | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
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): December 31, Range of remaining useful 2017 2016 Lower Limit Upper Limit Buildings and plant $ 79,757 $ 82,457 1 25 Machinery and equipment 234,861 227,987 1 25 Vehicles 4,835 4,750 3 10 Office equipment and improvements 12,637 12,505 1 20 Ponds and land improvements 56,194 57,474 1 25 Total depreciable assets 388,284 385,173 Accumulated depreciation $ (141,818 ) $ (116,194 ) Total depreciable assets, net $ 246,466 $ 268,979 Mineral properties and development costs 138,841 138,578 Accumulated depletion (26,840 ) (21,974 ) Total depletable assets, net 112,001 116,604 Land $ 519 $ 719 Construction in progress 5,556 2,188 Total property, plant, equipment, and mineral properties, net $ 364,542 $ 388,490 We incurred the following expenses for depreciation, depletion, and accretion, including expenses capitalized into inventory, for the following periods (in thousands): Year Ended December 31, 2017 2016 2015 Depreciation $ 28,323 $ 36,169 $ 79,999 Depletion 4,886 4,744 5,981 Accretion 1,558 1,768 1,696 Total incurred $ 34,767 $ 42,681 $ 87,676 We recorded approximately $4.8 million of additional depreciation in 2015, as a result of the accelerated depreciation of assets that were taken out of service as a result of the transitioning of our East facility to Trio ® -only. This accelerated depreciation increased our operating loss and our net loss by $4.8 million for the year ended December 31, 2015 and increased our basic and diluted loss per share by $0.07 . In the fourth quarter of 2015, due to the decline in potash prices, we recognized $323.8 million of impairment charges related to our East and West conventional mining facilities, and our North facility in New Mexico. Our estimated fair values were determined primarily using the market values in exchange method. As such, we have determined that the non-recurring fair value measurements of long-lived assets fall into Level 3 of the fair value hierarchy. |
OTHER FINANCIAL STATEMENT DATA
OTHER FINANCIAL STATEMENT DATA | 12 Months Ended |
Dec. 31, 2017 | |
Other Financial Statement Data [Abstract] | |
Other Financial Statement Data | OTHER FINANCIAL STATEMENT DATA Other operating (income) expense consisted of the following amounts: Year Ended December 31, 2017 2016 2015 (in thousands) Water sales $ (6,312 ) $ — $ — Loss on disposal of assets 1,830 262 679 Reserve for inventory obsolescence 1,107 496 — Accrual for land issues 600 — — Property damage insurance reimbursement — (1,211 ) — Property damage — — 2,453 Compensating tax adjustment — (1,086 ) — Property tax refund — — (2,504 ) Other (income) expense (14 ) (127 ) 707 Other operating (income) expense $ (2,789 ) $ (1,666 ) $ 1,335 The following tables provide additional information concerning selected balance sheet accounts: December 31, 2017 2016 (in thousands) Final price deferred 1 $ 5,989 $ 7,814 Prepaid expenses 3,051 4,063 Other current assets 211 833 Total Other current assets $ 9,251 $ 12,710 1 Final price deferred is product that has shipped to customers, but the price has not yet been agreed upon. This has not been included in inventory as it is not held for sale. Revenue has not been recognized as the amount is not fixed or determinable. December 31, 2017 2016 (in thousands) Accrued property taxes $ 854 $ 1,539 Accrued utility expenses 823 955 Accrued interest expense 717 2,312 Accrued construction in progress 662 581 Customer pre-payments 513 — Other 1 4,505 3,303 Total Accrued liabilities $ 8,074 $ 8,690 1 None of the individual amounts included in "Other" in the above table represent more than five percent of total current liabilities at December 31, 2017 and 2016. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Senior Notes —As of December 31, 2017, we had outstanding $60 million of senior notes (the "Notes") consisting of the following series: • $24 million of Senior Notes, Series A, due April 16, 2020 • $18 million of Senior Notes, Series B, due April 14, 2023 • $18 million of Senior Notes, Series C, due April 16, 2025 We originally issued $150 million of the Notes in 2013. Since the beginning of the fourth quarter of 2016, we have repaid an aggregate principal amount of $90 million of the Notes, including $75 million paid in the year ended December 31, 2017. In June 2017, we entered into an amendment with the holders of the Notes that requires us to prepay an additional $10 million of the Notes, together with accrued interest and a make-whole amount, on or before December 31, 2018, of which none had been paid as of December 31, 2017. The June 2017 amendment also altered the methodology for determining the variable interest rate for the Notes, though the interest rates will continue to be based on our financial performance as measured by certain financial covenant levels, and modified certain terms regarding the mandatory redemptions or offers of prepayment to the holders of the Notes. The agreement governing the Notes provides for the following: • We granted to the collateral agent for the noteholders a first lien on substantially all of our non-current assets and second lien on substantially all of our current assets. • The agreement requires us to maintain a minimum trailing twelve-month adjusted EBITDA, which is measured quarterly through March 2018, of negative $7.5 million . Adjusted EBITDA is a non-GAAP measure that is calculated as adjusted earnings before interest, income taxes, depreciation, amortization, and certain other expenses for the prior four quarters, as defined under the agreement. Our adjusted EBITDA as calculated under the agreement was $25.9 million for the four quarters ended December 31, 2017, satisfying the adjusted EBITDA covenant. • The agreement requires us to maintain minimum liquidity of $15 million as of the last day of any month ending on or prior to March 31, 2018, and monthly thereafter if we do not meet certain financial covenants. Liquidity is calculated as unencumbered cash and unused availability under our credit facility. Our liquidity as calculated under the agreement was $23.1 million as of December 31, 2017, satisfying the liquidity covenant. • The agreement requires us to maintain a minimum fixed charge coverage amount of negative $15 million and negative $10 million for the quarters ending June 30, 2018, and September 30, 2018, respectively. The agreement also includes requirements relating to a leverage ratio and a fixed charge coverage ratio to be tested on a quarterly basis commencing with the quarter ending June 30, 2018, with respect to the leverage ratio, and December 31, 2018, with respect to the fixed charge coverage ratio. The maximum leverage ratio will be 11.5 to 1.0 for the quarter ending June 30, 2018, and decreases to 3.5 to 1.0 for the quarter ending September 30, 2019, and each quarter thereafter. The minimum fixed charge coverage ratio will be 0.25 to 1.0 for the quarter ending December 31, 2018, and increases to 1.3 to 1.0 for the quarter ending September 30, 2019, and each quarter thereafter. In general, our fixed charge coverage amount is calculated as adjusted EBITDA for the prior four quarters, minus capital expenditures, cash paid for income taxes, and interest expense plus scheduled principal amortization of long-term funded indebtedness; our leverage ratio is calculated as the ratio of funded indebtedness to adjusted EBITDA for the prior four quarters; and our fixed charge coverage ratio is calculated as the ratio of adjusted EBITDA for the prior four quarters, minus capital expenditures and cash paid for income taxes, to interest expense plus scheduled principal amortization of long-term funded indebtedness. As of December 31, 2017, our fixed charge coverage amount was a negative $0.5 million , our leverage ratio was 2.5 to 1.0 and our fixed charge coverage ratio was 0.9 to 1.0. • The interest rates on the Notes may adjust quarterly based on our leverage ratio and an adjusted fixed charge coverage ratio. As our financial position improves as measured by these ratios, we pay lower interest rates under the Notes. For the ten months ended October 31, 2017, the interest rates on the Notes were 7.73% for the Series A Notes, 8.63% for the Series B Notes and 8.78% for the Series C Notes. Beginning November 1, 2017, the interest rates on the Notes were reduced to 3.73% for the Series A Notes, 4.63% for the Series B Notes and 4.78% for the Series C Notes. These rates represent the lowest interest rates available under the Notes. In addition, additional interest of 2% , which may be paid in kind, will begin to accrue on April 1, 2018, unless we satisfy certain financial covenant tests. We currently expect to satisfy these tests. • We are required to offer to prepay the Notes with the proceeds of dispositions of certain specified property and with the proceeds of certain equity issuances, as set forth in the agreement. • The obligations under the Notes are unconditionally guaranteed by several of our subsidiaries. We were in compliance with the applicable covenants under the agreement governing the Notes as of December 31, 2017. Our outstanding long-term debt, net, was as follows (in thousands): December 31, 2017 December 31, 2016 Notes, at carrying value $ 60,000 $ 135,000 Less current portion of Notes (10,000 ) — Less deferred financing costs (563 ) (1,566 ) Long-term portion of Notes, net $ 49,437 $ 133,434 Credit Facility —In 2016, we entered into a credit agreement with Bank of Montreal that provides an asset-based revolving credit facility of up to $35 million in aggregate principal amount. In June 2017, we amended the agreement to extend the maturity date to October 31, 2019, and to permit up to $10 million of borrowings under the agreement to be used to make payments on the Notes. The credit facility allows us to borrow up to $35 million , subject to monthly borrowing base limits based upon our inventory and receivables. If our total remaining availability under the credit facility was to fall below $6 million , we would be subject to a minimum fixed charge coverage ratio of 1 to 1, which we would not currently meet. Any borrowings on the credit facility bear interest at 1.75% to 2.25% above LIBOR (London Interbank Offered Rate), based on average availability under the credit facility. We have granted to Bank of Montreal a first lien on substantially all of our current assets and a second lien on substantially all of our non-current assets. We regularly borrow and repay amounts under the facility for near-term working capital needs and may do so in the future. For the year ended December 31, 2017, we borrowed $22.0 million and repaid $18.1 million under the facility. As of December 31, 2017, we had $3.9 million of borrowings outstanding and $3.1 million in outstanding letters of credit under the facility. Considering the outstanding borrowings and letters of credit, and the fixed charge coverage ratio requirement described above, we have $22.0 million available under the facility as of December 31, 2017. We were in compliance with the applicable covenants under the facility as of December 31, 2017. Previous Credit Facility —Until September 30, 2016, we had an unsecured credit facility in place. Pursuant to a series of amendments during 2016, the amount available to us under our previous unsecured credit facility was reduced from $250 million to $1 million , which amount could be used only for letters of credit. The credit facility matured according to its terms on September 30, 2016, and therefore is no longer outstanding. Additional Letter of Credit —In addition to the letters of credit referred to above, as of December 31, 2016, we also had a $0.5 million letter of credit outstanding secured by a restricted cash account reflected in "Prepaid expenses and other current assets" on the condensed consolidated balance sheets. In 2017, this letter of credit was canceled and the $0.5 million restricted cash account was released. Interest Expense —Interest expense is recorded net of any capitalized interest associated with investments in capital projects. We incurred gross interest expense of $11.8 million , $12.1 million , and $6.6 million for the years ended December 31, 2017, 2016, and 2015, respectively. Amounts included in interest expense for the years ended December 31, 2017, 2016, and 2015 (in thousands) are as follows: Year ended December 31, 2017 2016 2015 Interest on notes and credit facility $ 7,043 $ 9,152 $ 6,292 Make-whole payments 3,001 806 — Amortization of deferred financing costs 1,778 2,113 352 Gross interest expense 11,822 12,071 6,644 Less capitalized interest 130 449 293 Interest expense, net $ 11,692 $ 11,622 $ 6,351 |
ASSET RETIREMENT OBLIGATION
ASSET RETIREMENT OBLIGATION | 12 Months Ended |
Dec. 31, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
ASSET RETIREMENT OBLIGATION | ASSET RETIREMENT OBLIGATION We recognize an estimated liability for future costs associated with the abandonment and reclamation of our mining properties. A liability for the fair value of an asset retirement obligation and a corresponding increase to the carrying value of the related long-lived asset are recorded as the mining operations occur or the assets are acquired. Our asset retirement obligation is based on the estimated cost to abandon and reclaim the mining operations, the economic life of the properties, and federal and state regulatory requirements. The liability is discounted using credit adjusted risk-free rate estimates at the time the liability is incurred or when there are upward revisions to estimated costs. The credit adjusted risk-free rates used to discount our abandonment liabilities range from 6.9% to 9.7% . Revisions to the liability occur due to construction of new or expanded facilities, changes in estimated abandonment costs or economic lives, changes in the estimated timing of the reclamation activities or if federal or state regulators enact new requirements regarding the abandonment or reclamation of mines. In the fourth quarter of 2016, we extended our estimate of when the majority of our reclamation activities would occur by five years. This longer period of time resulted in a decrease in our asset retirement obligation. Following is a table of the changes to our asset retirement obligations for the following periods (in thousands): Year Ended December 31, 2017 2016 2015 Asset retirement obligation, at beginning of period $ 19,976 $ 22,951 $ 22,037 Liabilities settled — (3 ) (86 ) Liabilities incurred 29 — — Changes in estimated obligations (87 ) (4,740 ) (696 ) Accretion of discount 1,558 1,768 1,696 Total asset retirement obligation, at end of period $ 21,476 $ 19,976 $ 22,951 The undiscounted amount of asset retirement obligation is $59.5 million as of December 31, 2017 , of which we estimate approximately $5.3 million in payments may occur in the next five years. |
COMMON STOCK
COMMON STOCK | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
COMMON STOCK | COMMON STOCK In March 2017, we completed an underwritten public offering of our common stock and issued 50.1 million shares of common stock for net cash proceeds of $57.2 million . The net proceeds from the offering were used to partially repay indebtedness. In May 2017, we established an at-the-market offering program, which gives us the capacity to issue up to $40 million of our common stock. In September 2017, we issued 0.5 million shares of common stock for net cash proceeds of $1.9 million . The net proceeds were used for general corporate purposes. We may offer additional shares under the at-the-market offering program and we intend to use the net proceeds from any additional offerings under this program for general corporate purposes, which may include, among other things, the repayment of indebtedness under our senior notes or revolving credit facility, acquisitions, and funding capital expenditures. |
COMPENSATION PLANS
COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
COMPENSATION PLANS | COMPENSATION PLANS Cash Bonus Programs —At times, we use cash bonus programs under which employees may receive cash bonuses based on corporate, department, location, or individual performance or other events or accomplishments. We accrue cash bonus expense related to the current year's performance. In December 2015, we suspended most of our cash bonus programs for 2015 as part of our cost saving initiatives at that time. We did not implement a cash bonus program for 2017 or 2016. Equity Incentive Compensation Plan —Our Board of Directors and stockholders adopted a long-term incentive compensation plan called the Intrepid Potash, Inc. Amended and Restated Equity Incentive Plan (the "Plan"). We have issued restricted shares, common stock, performance units, and non-qualified stock option awards under the Plan. As of December 31, 2017 , the following awards were outstanding under the Plan: 3,163,903 restricted shares; options to purchase 2,075,821 shares of common stock; and performance units representing a maximum of 126,050 shares of common stock. As of December 31, 2017 , approximately 4.0 million shares of common stock remained available for issuance under the Plan. Total compensation expense related to the Plan was $3.6 million , $3.6 million , and $5.1 million , for the years ended December 31, 2017 , 2016 , and 2015 , respectively. As of December 31, 2017 , there was $5.0 million of total remaining unrecognized compensation expense that is expected to be recognized through 2020 related to share-based awards. When restricted shares and performance units vest and when stock options are exercised, new shares are issued and considered outstanding for financial statement purposes. Restricted Shares • Restricted Shares with Service-Based Vesting —Under the Plan, the Compensation Committee of the Board of Directors (the "Compensation Committee") has granted restricted shares of common stock to members of the Board of Directors, executive officers, and other key employees. The restricted shares contain service conditions associated with continued employment or service. The restricted shares provide voting and regular dividend rights to the holders of the awards. Upon vesting, the restrictions on the restricted shares lapse and the shares are considered issued and outstanding for accounting purposes. In 2017, the Compensation Committee granted 993,517 restricted shares to executives and key employees under the Plan as part of our annual equity award program. The awards vest over three years subject to continued employment or service. In 2017, the Compensation Committee granted 198,595 restricted shares to non-employee members of the Board of Directors and one employee member of the Board of Directors under the Plan for their annual service as directors. The restricted shares vest one year after the date of grant, subject to continued service. The estimated fair value on the grant date of restricted shares that contain only a service condition is determined using the closing price of our common stock on the grant date. Compensation expense is recorded monthly using the straight-line recognition method over the vesting period of the award. The weighted-average grant date fair value per share for restricted shares with service-based vesting issued in 2017, 2016, and 2015 was $2.27 , $1.07 , and $14.28 , respectively. • Restricted Shares with Service- and Market-Condition-Based Vesting —In 2017, the Compensation Committee granted 213,753 restricted shares of common stock to a member of our executive team as part of his annual compensation package. The restricted shares vest in three equal installments, subject to his continued employment; provided however, that no vesting would occur unless and until the volume-weighted average closing market price of our common stock equaled or exceeded $3.44 , for 20 consecutive trading days, on or before the five -year anniversary of the grant date. The market condition for this award was met in 2017. The estimated fair value of the award on the grant date was determined using a Monte Carlo simulation valuation model. Compensation expense is recorded monthly using the accelerated recognition method over the vesting period of the award. The weighted-average grant date fair value per share of restricted shares with service- and market-condition-based vesting issued in 2017, and 2016, was $2.10 , and $0.91 , respectively. A summary of all activity relating to our restricted shares for the year ended December 31, 2017 , is presented below: Weighted Average Shares Restricted shares of common stock, beginning of period 3,531,418 $ 1.78 Granted with service only condition 1,192,112 $ 2.27 Granted with service and market conditions 213,753 $ 2.10 Vested (1,306,766 ) $ 2.48 Forfeited (466,614 ) $ 1.41 Restricted shares of common stock, end of period 3,163,903 $ 1.73 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 his 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 or the second two-year performance period. As of December 31, 2017, a total of 126,050 shares of common stock were available for future payout under these performance units, subject to the third, three -year performance measure being met and continued employment through the vesting date. Compensation cost is recognized monthly using the accelerated recognition method over the vesting period of the award. The estimated fair value of the award was determined using a Monte Carlo simulation valuation model. Compensation cost is recognized monthly using the accelerated recognition method over the vesting period of the award. The weighted-average fair value per performance unit issued in 2015 was $13.84 . Non-qualified Stock Options • Non-qualified Stock Options with Service-Based Vesting —In 2017, the Compensation Committee granted 117,878 non-qualified stock options under the Plan to our executives and other key employees as part of our annual award program. The stock options have a ten -year term from the grant date and vest over three years. In measuring compensation expense for options, we estimated the fair value of the award on the grant dates using the Black‑Scholes option valuation model. Option valuation models require the input of highly subjective assumptions, including the expected volatility of the price of the underlying stock. Compensation expense is recorded monthly using the straight-line recognition method over the vesting period of the award. The following assumptions were used to compute the weighted average fair market value of options with service-based vesting granted in 2017 and 2016: 2017 2016 Risk free interest rate 1.6 % 1.8 % Dividend yield — % — % Estimated volatility 71.5 % 63.8 % Expected option life 6.00 years 6.25 years We granted no options in 2015. Our estimate of volatility was based on the historic volatility of our common stock over a period comparable to the expected life of the option. The estimate of expected option life was determined based on the "simplified method," giving consideration to the overall vesting period and the contractual terms of the award. This method was used because we have very little option exercise history for options issued prior to 2017. The risk-free interest rate for the period that matched the option awards' expected life was based on the U.S. Treasury constant maturity yield at the time of grant. • Non-qualified Stock Options with Service- and Market-Condition-Based Vesting —In 2017, the Compensation Committee granted 513,698 non-qualified stock options with service- and market-condition-based vesting requirements under the Plan to a member of our executive team as part of his annual compensation package. The stock options vest in three equal annual installments, subject to continued employment: provided, however, that no vesting would occur unless and until the volume-weighted average closing market price of our common stock equals or exceeds $3.44 for 20 consecutive trading days on or before the five -year anniversary of the grant date. The market condition for the award was met in 2017. The estimated fair value of the award on the grant date was determined using a Monte Carlo simulation valuation model. Compensation cost is recognized monthly using the accelerated recognition method over the vesting period of the award. Non-Qualified Stock Option Activity A summary of all stock option activity for the year ended December 31, 2017 , is as follows: Shares Weighted Average Exercise Price Aggregate Intrinsic Value 1 Weighted Average Remaining Contractual Life Outstanding non-qualified stock 1,883,706 $3.90 Granted 631,576 $2.29 Exercised (117,213 ) $1.03 Forfeited (302,562 ) $1.14 Expired (19,686 ) $28.73 Outstanding non-qualified stock 2,075,821 $3.74 $6,238,639 8.3 Vested or expected to vest, 2,075,821 $3.74 $6,238,639 8.3 Exercisable non-qualified 455,622 $11.70 $956,562 5.7 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. The weighted-average fair value per share of options to purchase stock granted during 2017 and 2016 was $1.38 and $0.61 per share, respectively. There were no options to purchase stock granted in 2015. The total intrinsic value of options to purchase stock exercised during 2017 was $0.3 million . There were no options to purchase stock exercised in 2016, and 2015. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES We account for income taxes in accordance with Accounting Standard Codification 740, Income Taxes. This standard requires the recognition of deferred tax assets and liabilities for the tax effect of temporary differences between the financial statement and tax basis of recorded assets and liabilities at enacted tax rates in effect when the related taxes are expected to be settled or realized. We recognize income taxes in each of the tax jurisdictions where we conduct business. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A summary of the provision for income taxes is as follows (in thousands): Year Ended December 31, 2017 2016 2015 Current portion of income tax expense (benefit): Federal $ (2,793 ) $ (1,365 ) $ — State 10 3 (123 ) Deferred portion of income tax expense: Federal — — 116,128 State — — 33,968 Total income tax (benefit) expense $ (2,783 ) $ (1,362 ) $ 149,973 A reconciliation of the federal statutory income tax rate of 35% to our effective rate is as follows (in thousands, except percentages): Year Ended December 31, 2017 2016 2015 Federal taxes at statutory rate $ (8,992 ) $ (23,793 ) $ (131,181 ) Add: State taxes, net of federal benefit (1,414 ) (4,982 ) (18,639 ) Change in valuation allowance (104,507 ) 25,496 300,333 Change in federal and state tax rates 115,545 — — Percentage depletion (598 ) (552 ) (1,285 ) Other (2,817 ) 2,469 745 Net (benefit) expense as calculated $ (2,783 ) $ (1,362 ) $ 149,973 Effective tax rate 10.8 % 2.0 % (40.0 )% During the year ended December 31, 2017, our effective tax rate was impacted by the decrease in our expected future rate at which our deferred tax assets will reverse due to newly enacted federal tax legislation, which reduced the value of our deferred tax assets by $115.5 million . Since we have a full valuation allowance against our deferred tax assets, a corresponding decrease in our valuation allowance was also required. Additionally, our valuation allowance increased due to increases in our deferred tax asset related to current year activity. The net decrease in our valuation allowance was $104.5 million for the year ended December 31, 2017. Finally, our effective tax rate was impacted by a benefit of $2.7 million related to our ability to monetize existing alternative minimum tax credits through a carryback as well as an election available to taxpayers in 2017. During the year ended December 31, 2016, our effective tax rate was impacted by the increase in our valuation allowance of $25.5 million , as well as an election to monetize a portion of our existing alternative minimum tax credits in the amount of $1.4 million . During the year ended December 31, 2015, our effective tax rate was impacted by the increase in our valuation allowance of $300.3 million . As of December 31, 2017 , and 2016 , we had gross deferred tax assets of $221.6 million and $326.1 million , respectively. During the year ended December 31, 2017, our deferred tax assets decreased primarily due to a decrease in our expected future tax rate at which our deferred tax assets will be recovered because of federal tax legislation enacted in December 2017. Included in gross deferred tax assets as of December 31, 2017, were approximately $247.8 million of federal net operating loss carryforwards, which expire beginning in 2033, and approximately $314.4 million of state net operating loss carry forwards, the majority of which begin to expire in 2033. Also included are $1.9 million of federal research and development credits which begin to expire in 2031. The federal loss carryforward could be subject to examination by the tax authorities within three years after the carryforward is utilized, while the state net operating loss carryforwards could be subject to examination by the tax authorities generally within three and four years after the carryforward is utilized, depending on jurisdiction. Significant components of our deferred tax assets and liabilities were as follows (in thousands): December 31, 2017 2016 Deferred tax assets (liabilities): Property, plant, equipment and mineral properties, net $ 136,543 $ 212,049 Federal and state net operating loss carryforwards 68,733 85,695 Other 7,225 9,665 Asset retirement obligation 5,472 10,934 R&D credits 1,896 1,896 Equity compensation 1,529 3,542 Inventory 947 1,285 Accrued employee compensation and benefits 24 (239 ) AMT credits — 2,861 Prepaid expenses $ (779 ) $ (1,591 ) Total deferred tax assets 221,590 326,097 Valuation allowance (221,590 ) (326,097 ) Deferred tax asset, net $ — $ — In assessing the need for a valuation allowance, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. We evaluate our ability to realize the tax benefits associated with deferred tax assets by analyzing the relative impact of all the available positive and negative evidence regarding our forecasted taxable income using both historical and projected future operating results, the reversal of existing taxable temporary differences, taxable income in prior carryback years, as permitted by regulation, and the availability of tax planning strategies. The ultimate realization of deferred tax assets is dependent upon the generation of certain types of future taxable income during the periods in which those temporary differences become deductible. In making this assessment, we consider the scheduled reversal of deferred tax liabilities, our ability to carry back the deferred tax asset, projected future taxable income, and tax planning strategies. As of December 31, 2017, and 2016, we have a full valuation allowance against our deferred tax assets because we do not believe it is more likely than not that we will fully realize the benefit of the deferred tax assets. During 2017, our valuation allowance decreased $104.5 million due to the decrease in our deferred tax assets related to a decrease in our expected future rate at which our deferred tax assets will reverse, due to federal and state tax legislation enacted in late 2017, and the change in our deferred tax assets due to current year activity. The net change in our valuation allowance is reflected in income tax benefit for the year ended December 31, 2017. Our deferred tax asset, net of the valuation allowance, at both December 31, 2017, and 2016, is zero . The estimated statutory income tax rates that are applied to our current and deferred income tax calculations are impacted most significantly by the tax jurisdictions in which we conduct business. Changing business conditions for normal business transactions and operations, as well as changes to state tax rates and apportionment laws, potentially alter the apportionment of income among the states for income tax purposes. These changes to apportionment laws result in changes in the calculation of our current and deferred income taxes, including the valuation of our deferred tax assets and liabilities. The effects of any such changes are recorded in the period of the adjustment. Such adjustments can increase or decrease the net deferred tax asset on the balance sheet and impact the corresponding deferred tax benefit or deferred tax expense on the statement of operations. A decrease of our state tax rate decreases the value of its deferred tax asset, resulting in additional deferred tax expense being recorded in the income statement. Conversely, an increase in our state income tax rate would increase the value of the deferred tax asset, resulting in an increase in our deferred tax benefit. Because of the magnitude of the temporary differences between our book and tax basis in the assets, relatively small changes in the state tax rate may have a pronounced impact on the value of our net deferred tax asset. Each quarter we evaluate the need for a liability for uncertain tax positions. At December 31, 2017, and 2016, there were no items that required disclosure in accordance with FASB guidance on accounting for uncertainty in income taxes. We operate, and accordingly file income tax returns, in the U.S. federal jurisdiction and various U.S. state jurisdictions. With few exceptions, we are no longer subject to income tax examinations for years prior to 2014. The Tax Cuts and Jobs Act was enacted on December 22, 2017. Significant changes to the Internal Revenue Code including reducing the U.S. corporate tax rate were included in the legislation. As a result, the reduced tax rate caused a $115.5 million decrease to our deferred tax asset and related valuation allowance. As the deferred tax asset is subject to a full valuation allowance, the change in rates had no financial statement impact. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Reclamation Deposits and Surety Bonds —As of December 31, 2017 , and 2016 , we had $18.8 million and $21.4 million , respectively, of security placed principally with the State of Utah and the Bureau of Land Management for eventual reclamation of its various facilities. Of this total requirement, as of December 31, 2017 , and 2016 , $0.5 million and $3.5 million , respectively, consisted of long-term restricted cash deposits reflected in "Other" long-term assets on the balance sheet, and $18.3 million and $17.9 million , respectively, 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 Intrepid Potash, Inc., in the Fifth Judicial District Court for the County of Eddy in the State of New Mexico (the “State Court Matter”). Mosaic subsequently amended its complaint to add Intrepid Potash - New Mexico, LLC, as a second defendant. Mr. Gamble is a former employee of both Intrepid and Mosaic. The complaint alleged violations of law relating to alleged misappropriation of Mosaic’s trade secrets and other issues. In August 2015, the court in the State Court Matter denied Mosaic’s application for preliminary injunction. In July 2016, Mosaic filed a complaint against Mr. Gamble and both Intrepid Potash, Inc., and Intrepid Potash - New Mexico, LLC, in US District Court for the District of New Mexico (the “Federal Court Matter”). The complaint alleged violations of law relating to alleged misappropriation of Mosaic’s confidential information, including a Computer Fraud and Abuse Act and additional claims. In a series of filings in December 2017 and January 2018, the parties removed the State Court Matter to federal court and consolidated it with the Federal Court Matter, resulting in one consolidated lawsuit pending in the US District Court for the District of New Mexico. Mosaic alleges against Intrepid Potash, Inc., and Intrepid Potash - New Mexico, LLC, violations of the New Mexico Uniform Trade Secrets Act, tortious interference with contract relating to Mr. Gamble’s separation of employment from Mosaic, violations of the Computer Fraud and Abuse Act, conversion, and civil conspiracy relating to the alleged misappropriation of Mosaic’s confidential information and related actions. 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. The lawsuit is progressing through discovery. We are vigorously defending against the lawsuit. We are subject to other claims and legal actions in the ordinary course of business. Legal costs are expensed as incurred. 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 certain operating leases for land, mining and other operating equipment, offices, and railcars, with original terms ranging up to 20 years. The annual minimum lease payments for the next five years and thereafter are presented below (in thousands): Years Ending December 31, 2018 $ 2,400 2019 1,369 2020 977 2021 661 2022 442 Thereafter 814 Total $ 6,663 Rental and lease expenses follow for the indicated periods (in thousands): For the year ended December 31, 2017 $ 5,693 For the year ended December 31, 2016 $ 6,591 For the year ended December 31, 2015 $ 7,216 |
RESTRUCTURING EXPENSE
RESTRUCTURING EXPENSE | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Expense | RESTRUCTURING EXPENSE During 2016, in response to declining potash prices, we undertook several cost saving actions that were intended to better align our cost structure with the business environment. These initiatives included workforce reductions, bonus plan curtailments, and temporary salary decreases for most employees. For the year ended December 31, 2016, we recorded restructuring expense of $2.7 million related to these initiatives. For the year ended December 31, 2017, we recorded restructuring expense of $0.3 million as a result of our decision to reduce Trio ® production based on expected demand and product inventory levels. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS We measure our financial assets and liabilities in accordance with Accounting Standards Codification™ ("ASC") Topic 820, Fair Value Measurements and Disclosures. 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 upon the lowest level of input that is significant to the fair value measurement. The definition of each input is described below: • 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 As of December 31, 2017, and 2016, our cash consisted of bank deposits. Other financial assets and liabilities including, accounts receivable, refundable income taxes, accounts payable, accrued liabilities, and advances on credit facility are carried at cost which approximates fair value because of the short-term nature of these instruments. As of December 31, 2017, and 2016, the estimated fair value of our outstanding Notes was $58.8 million and $131.0 million , respectively. The fair value of our 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. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFITS | EMPLOYEE BENEFITS 401(k) Plan We maintain a savings plan qualified under Internal Revenue Code Sections 401(a) and 401(k). The 401(k) Plan is available to eligible employees of our consolidated entities. Employees may contribute amounts as allowed by the U.S. Internal Revenue Service to the 401(k) Plan (subject to certain restrictions) in before-tax contributions. In the past, we have matched employee contributions on a dollar-for-dollar basis up to a maximum of 5% of the employee's base compensation. In January 2016, we elected to suspend matching employee contributions to the 401(k) Plan and resumed contributions to the 401(k) Plan in August 2016, matching employee contributions on a dollar-for-dollar basis up to a maximum of 2% of the employee's base compensation. Our contributions to the 401(k) Plan in the following periods were (in thousands): Contributions Year Ended December 31, 2017 $ 685 Year Ended December 31, 2016 $ 176 Year Ended December 31, 2015 $ 2,277 |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS Our operations are organized into two segments: potash and Trio ® . The reportable segments are determined by management based on a several 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 that follow (in thousands). Year Ended December 31, 2017 Potash Trio ® Corporate Consolidated Sales $ 95,540 $ 62,067 $ — $ 157,607 Less: Freight costs 11,818 17,221 — 29,039 Warehousing and handling costs 5,555 4,115 — 9,670 Cost of goods sold 1 61,948 43,847 — 105,795 Lower-of-cost-or-market inventory adjustments 550 6,774 — 7,324 Costs associated with abnormal production and other — — — — Gross Margin (Deficit) $ 15,669 $ (9,890 ) $ — $ 5,779 Depreciation, depletion and amortization incurred 2 $ 27,839 $ 6,783 $ 145 $ 34,767 Year Ended December 31, 2016 Potash Trio ® Corporate Consolidated Sales $ 159,494 $ 51,454 $ — $ 210,948 Less: Freight costs 26,661 9,595 — 36,256 Warehousing and handling costs 8,439 2,567 — 11,006 Cost of goods sold 1 134,017 36,835 — 170,852 Lower-of-cost-or-market inventory adjustments 18,380 1,994 — 20,374 Costs associated with abnormal production and other 649 1,058 — 1,707 Gross Deficit $ (28,652 ) $ (595 ) $ — $ (29,247 ) Depreciation, depletion and amortization incurred 2 $ 37,936 $ 3,836 $ 909 $ 42,681 Year Ended December 31, 2015 Potash Trio ® Corporate Consolidated Sales $ 217,467 $ 69,716 $ — $ 287,183 Less: Freight costs 18,262 10,461 — 28,723 Warehousing and handling costs 11,213 2,726 — 13,939 Cost of goods sold 1 172,355 45,466 — 217,821 Lower-of-cost-or-market inventory adjustments 31,772 — — 31,772 Costs associated with abnormal production and other 10,405 — — 10,405 Gross (Deficit) Margin $ (26,540 ) $ 11,063 $ — $ (15,477 ) Depreciation, depletion and amortization incurred 2 $ 68,562 $ 16,993 $ 2,121 $ 87,676 1 Cost of goods sold for Potash is presented net of by-product credits, which were $10.6 million , $9.0 million and $7.9 million for the years ended December 31, 2017, 2016, and 2015, respectively. 2 Depreciation, depletion and amortization incurred for potash and Trio ® excludes 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 year ended December 31, 2017, we recorded restructuring charges of $0.3 million , all of which was attributable to Trio ® . During the year ended December 31, 2016, we recorded restructuring charges of $2.7 million , of which $2.1 million was attributable to the potash segment, $0.4 million was attributable to Trio ® , and $0.2 million was attributable to corporate. |
CONCENTRATION OF CREDIT RISK
CONCENTRATION OF CREDIT RISK | 12 Months Ended |
Dec. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF CREDIT RISK | CONCENTRATION OF CREDIT RISK Credit risk represents the loss that would be recognized at the reporting date if counterparties failed completely to perform as contracted. Concentrations of credit risk, whether on- or off-balance sheet, that arise from financial instruments exist for counterparties when they have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions. Our products are marketed for sale into three primary markets. These markets are the agricultural market as a fertilizer, the industrial market as a component in drilling fluids for oil and gas exploration, and the animal feed market as a nutrient. Credit risks associated with the collection of accounts receivable are primarily related to the impact of external factors on our customers. Our customers are distributors and end-users whose credit worthiness and ability to meet their payment obligations will be affected by factors in their industries and markets. Those factors include soil nutrient levels, crop prices, weather, the type of crops planted, changes in diets, growth in population, the amount of land under cultivation, fuel prices and consumption, oil and gas drilling and completion activity, the demand for biofuels, government policy, and the relative value of currencies. Our industrial sales are significantly influenced by oil and gas drilling activity. In 2017 , 2016 and 2015, no customer accounted for more than 10% of our sales. Because of the size of our company compared to the overall size of the North American market and the regional demands for our products, we believe that a decline in a specific customer's purchases would not have a material adverse long-term effect on our financial results. In each of the last three years ended December 31, 2017 , 2016 , and 2015 , 87% , 98% , and 97% , respectively, of our total sales were sold to customers located in the United States. We maintain cash accounts with several financial institutions. At times, the balances in the accounts may exceed the $250,000 balance insured by the Federal Deposit Insurance Corporation. |
FINANCIAL INFORMATION FOR SUBSI
FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS OF POSSIBLE FUTURE PUBLIC DEBT | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS OF POSSIBLE FUTURE PUBLIC DEBT | 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 totaled $1.1 million and $4.5 million at December 31, 2017, and 2016, 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. |
QUARTERLY FINANCIAL DATA
QUARTERLY FINANCIAL DATA | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | QUARTERLY FINANCIAL DATA (UNAUDITED) (in thousands, except per share amounts) Three Months Ended December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 Sales $ 33,305 $ 32,060 $ 43,910 $ 48,332 Cost of Goods Sold $ 20,813 $ 19,395 $ 29,714 $ 35,873 Lower-of-cost-or-market inventory adjustments $ 2,516 $ 667 $ 317 $ 3,824 Gross Margin (Deficit) $ 1,146 $ 3,792 $ 3,697 $ (2,856 ) Net Loss $ (1,389 ) $ (1,908 ) $ (5,935 ) $ (13,678 ) Basic and Diluted $ (0.01 ) $ (0.02 ) $ (0.05 ) $ (0.17 ) Three Months Ended December 31, 2016 September 30, 2016 June 30, 2016 March 31, 2016 Sales $ 42,188 $ 43,643 $ 51,840 $ 73,277 Cost of Goods Sold $ 33,953 $ 35,272 $ 41,850 $ 59,777 Lower-of-cost-or-market inventory adjustments $ 3,245 $ 5,192 $ 2,930 $ 9,007 Costs Associated with $ — $ — $ 1,057 $ 650 Gross Deficit $ (7,004 ) $ (7,624 ) $ (5,466 ) $ (9,153 ) Net Loss $ (16,567 ) $ (18,241 ) $ (13,398 ) $ (18,427 ) Basic and Diluted $ (0.22 ) $ (0.24 ) $ (0.18 ) $ (0.24 ) |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (In thousands) Description Balance at Beginning of Year Charged to Costs and Expenses Deductions Balance at End of Year For the Year Ended December 31, 2015 Allowances deducted from assets Deferred tax assets - valuation allowance $ 268 $ 300,333 $ — $ 300,601 Reserve for parts inventory obsolescence 500 2,260 — 2,760 Allowance for doubtful accounts and other receivables 845 — (438 ) 407 Total allowances deducted from assets $ 1,613 $ 302,593 $ (438 ) $ 303,768 For the Year Ended December 31, 2016 Allowances deducted from assets Deferred tax assets - valuation allowance $ 300,601 $ 25,496 $ — $ 326,097 Reserve for parts inventory obsolescence 2,760 349 — 3,109 Allowance for doubtful accounts and other receivables 407 — (407 ) — Total allowances deducted from assets $ 303,768 $ 25,845 $ (407 ) $ 329,206 For the Year Ended December 31, 2017 Allowances deducted from assets Deferred tax assets - valuation allowance $ 326,097 $ — $ (104,507 ) $ 221,590 Reserve for parts inventory obsolescence 3,109 1,073 — 4,182 Allowance for doubtful accounts and other receivables — 865 — 865 Total allowances deducted from assets $ 329,206 $ 1,938 $ (104,507 ) $ 226,637 |
SUMMARY OF SIGNIFICANT ACCOUN29
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Our consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results may differ significantly from these estimates under different assumptions or conditions. Significant estimates include, but are not limited to, those for proven and probable mineral reserves, the related present value of estimated future net cash flows, useful lives of plant assets, asset retirement obligations, normal inventory production levels, inventory valuations, the valuation of equity awards, the valuation of receivables, estimated future net cash flows used in long-lived assets impairment analysis, the related valuation of our long-lived assets, 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 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. 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. |
By-product Credits | When by-product inventories are sold, we record the sale of by-products as a credit to cost of goods sold. |
Inventory and Long-Term Parts 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. Parts inventory, including critical spares, that is not expected to be used within a period of one year is classified as non-current. Parts and supply inventory cost is determined using the lower of average acquisition cost or estimated replacement cost. Detailed reviews are performed related to the net realizable value of parts inventory, giving consideration to quality, slow-moving items, obsolescence, excessive levels, and other factors. Parts inventories that have not turned over in more than a year, excluding parts classified as critical spares, are reviewed for obsolescence and, if deemed appropriate, are included in the determination of an allowance for obsolescence. |
Property, Plant, Equipment, Mineral Properties and Development Costs | Property, plant, and equipment are stated at historical cost. Expenditures for property, plant, and equipment relating to new assets or improvements are capitalized, provided the expenditure extends the useful life of an asset or extends the asset's functionality. Property, plant, and equipment are depreciated under the straight-line method using estimated useful lives. The estimated useful lives of property, plant, and equipment are evaluated periodically as changes in estimates occur. No depreciation is taken on assets classified as construction in progress until the asset is placed into service. Gains and losses are recorded upon retirement, sale, or disposal of assets. Maintenance and repair costs are recognized as period costs when incurred. Capitalized interest, to the extent of debt outstanding, is calculated and capitalized on assets that are being constructed, drilled, or built or that are otherwise classified as construction in progress. Mineral properties and development costs, which are referred to collectively as mineral properties, include acquisition costs, the cost of drilling production wells, and the cost of other development work, all of which are capitalized. Depletion of mineral properties is calculated using the units-of-production method over the estimated life of the relevant ore body. The lives of reserves used for accounting purposes are shorter than current reserve life determinations due to uncertainties inherent in long-term estimates. These reserve life estimates have been prepared by us and reviewed and independently determined by mine consultants. Tons of potash and langbeinite in the proven and probable reserves are expressed in terms of expected finished tons of product to be realized, net of estimated losses. Market price fluctuations of potash or Trio ® , as well as increased production costs or reduced recovery rates, could render proven and probable reserves containing relatively lower grades of mineralization uneconomic to exploit and might result in a reduction of reserves. In addition, the provisions of our mineral leases, including royalty provisions, are subject to periodic readjustment by the state and federal government, which could affect the economics of our reserve estimates. Significant changes in the estimated reserves could have a material impact on our results of operations and financial position. |
Recoverability of Long-Lived Assets | We evaluate our long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amount may not be recoverable. An impairment is potentially considered to exist if an asset group's total estimated net future cash flows on an undiscounted basis are less than the carrying amount of the related asset. An impairment loss is measured and recorded based on the excess of the carrying amount of long-lived assets over its estimated fair value. Changes in significant assumptions underlying future cash flow estimates or fair values of asset groups may have a material effect on our financial position and results of operations. Sales price is a significant element of any cash flow estimate, particularly for higher cost operations. Other assumptions we estimate include, among other things, the economic life of the asset, sales volume, inflation, raw materials costs, cost of capital, tax rates, and capital spending. Factors we generally will consider important and which could trigger an impairment review of the carrying value of long-lived assets include the following: • significant underperformance relative to expected operating results or operating losses • significant changes in the manner of use of assets or the strategy for our overall business • the denial or delay of necessary permits or approvals that would affect the utilization of our tangible assets • underutilization of our tangible assets • discontinuance of certain products by us or our customers • a decrease in estimated mineral reserves • significant negative industry or economic trends |
Exploration Costs | Exploration costs include geological and geophysical work performed on areas that do not yet have proven and probable reserves declared. These costs are expensed as incurred. |
Asset Retirement Obligation | Reclamation costs are initially recorded as a liability associated with the asset to be reclaimed or abandoned, based on applicable inflation assumptions and discount rates. The accretion of this discounted liability is recognized as expense over the life of the related assets, and the liability is periodically adjusted to reflect changes in the estimates of either the timing or amount of the reclamation and abandonment costs. |
Planned Turnaround Maintenance | Each production operation typically shuts down periodically for planned maintenance activities. The costs of maintenance turnarounds at our facilities are considered part of production costs and are absorbed into inventory in the period incurred. |
Leases | Upon entering into leases, we evaluate whether leases are operating or capital leases. Operating lease expense is recognized as incurred. If lease payments change over the contractual term or involve contingent amounts, the total estimated cost over the term is recognized on a straight-line basis. |
Income Taxes | We are a subchapter C corporation and, therefore, are subject to U.S. federal and state income taxes. We recognize income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the periods in which the deferred tax liability or asset is expected to be settled or realized. We record a valuation allowance if it is deemed more likely than not that our deferred income tax assets will not be realized in full. These determinations are subject to ongoing assessment. |
Cash and Cash Equivalents | Cash and cash equivalents consist of cash and liquid investments with an original maturity of three months or less. |
Fair Value of Financial Instruments | Our financial instruments include cash and cash equivalents, restricted cash, accounts receivable, refundable income taxes, accounts payable and current accrued liabilities. These instruments are carried at cost, which approximates fair value due to the short-term maturities of the instruments. Allowances for doubtful accounts are recorded against the accounts receivable balance to estimate net realizable value. The fair value of the long-term debt is estimated using discounted cash flow analysis based on current borrowing rates for debt with similar remaining maturities and ratings. Amounts outstanding under our secured credit facility are carried at cost, which approximates fair value, due to the short-term nature of the borrowings. |
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 per common share of stock is calculated by dividing net income 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 restricted shares, performance units, and non‑qualified stock options. The dilutive effect of stock based compensation arrangements is computed using the treasury‑stock method. Following the lapse of the vesting period of restricted shares, the shares are considered issued and therefore are included in the number of issued and outstanding shares for purposes of these calculations. |
Stock-Based Compensation | We account for stock-based compensation by recording expense using the fair value of the awards at the time of grant. We have recorded compensation expense associated with the issuance of restricted shares, performance units, and non-qualified stock options, all of which are subject to service conditions and in some cases subject to operational performance or market-based conditions. The expense associated with such awards is recognized over the service period associated with each grant. Expense associated with awards with service only conditions is recognized using the straight-line recognition method over the requisite service period of the award, which is generally the vesting period of the award. Expense associated with awards that contain both a service condition and a market condition are recognized using the accelerated recognition method over the requisite service period of the award, which is generally the longest of the explicit service period or the derived service period (expected date the market condition is estimated to be achieved). |
Recently Adopted Accounting Standard | In August 2013, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 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, with early application permitted. We adopted this guidance in 2016 and it did not have a material impact on the disclosures included in our consolidated financial statements. In April 2015, the FASB issued ASU 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" and "Current portion of long-term debt, net." Amortization of such costs continues to be reported as "Interest expense, net." In accordance with the adoption of this new accounting standard, we have reclassified $1.6 million of deferred financing costs associated with our outstanding debt from "Prepaid expenses and other current assets" and "Other assets" to "Long-term debt, net" as of December 31, 2015 to conform to the December 31, 2016, presentation. In July 2015, the FASB issued ASU 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. This standard 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 was effective for us beginning January 1, 2017. The adoption of this standard did not have a material impact on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting," which became effective for us beginning January 1, 2017. 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. In accordance with adoption of this standard share-based payment award forfeiture expense will no longer be estimated and will be recorded as forfeitures occur and we have recorded a $0.1 million adjustment to beginning retained earnings for the impact of this cumulative change. Pronouncements Issued But Not Yet Adopted —In May 2014, the FASB issued ASU No. 2014-09, as amended by ASU 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. Adoption of the standard may be applied retrospectively to each prior period presented (full retrospective method) or retrospectively with the cumulative effect recognized as of the date of initial application (modified retrospective method). This guidance is effective for us beginning January 1, 2018 and we will apply the full retrospective method. Accordingly, for our public filings beginning with our Quarterly Report on Form 10-Q for the quarter ending March 31, 2018, we will present prior periods as if revenue were recognized under Topic 606. Our revenue is primarily generated from the sale of Potash and Trio ® to customers. These sales predominantly contain a single delivery element and revenue is recognized at a single point in time when ownership, risk and rewards transfer to the buyer. During the fourth quarter of 2017, we finalized our assessment of the impact that the new standard will have on our consolidated results of operations, financial position, and disclosures. As the adoption of the new guidance will not result in a significant shift in the timing of revenue recognition for our sales, we do not expect the new guidance to have a material impact on our Consolidated Financial Statements. In February 2016, the FASB issued ASU 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. As our mineral leases are exempt from the new standard and our current operating leases are generally less than twelve months in term, we do not believe the adoption of this new standard will have a material impact on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows (Topic 230)" which is intended to clarify and align how certain cash receipts and cash payments are presented and classified in the statement of cash flows where there is currently diversity in practice. ASU 2016-15 specifically addresses eight classification issues within the statement of cash flows including debt prepayments or debt extinguishment costs; proceeds from the settlement of insurance claims; and separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective for annual and interim periods in fiscal years beginning after December 15, 2017. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, "Income Taxes (Topic 740)" which requires entities to recognize at the transaction date the income tax consequences of intercompany asset transfers other than inventory. ASU No. 2016-16 is effective for annual and interim periods in fiscal years beginning after December 15, 2017. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In November 2016, the FASB issued ASU Updated 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash" which will require entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows and will no longer require transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. This standard is effective for us in annual and interim periods in fiscal years beginning after December 15, 2017. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Anti-Dilutive Shares Excluded From The Calculation of Diluted Loss Per Share | Basic earnings or loss per share is computed by dividing net income or loss by the weighted-average number of shares of common stock outstanding during the period. For purposes of determining diluted earnings per share, basic weighted-average common shares outstanding are adjusted to include potentially dilutive securities, including restricted shares, stock options, and performance units. The treasury-stock method is used to measure the dilutive impact of potentially dilutive shares. Potentially dilutive shares 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. Because we have net losses for each of the three years ended December 31, 2017, 2016, and 2015, all potentially dilutive shares are excluded from the diluted weighted-average common shares outstanding for each of those years. The following table shows anti-dilutive shares excluded from the calculation of diluted loss per share: Year Ended December 31, 2017 2016 2015 Anti-dilutive effect of restricted shares 3,327,789 992,751 468,737 Anti-dilutive effect of stock options outstanding 1,711,288 468,724 294,318 Anti-dilutive effect of performance units 63,025 126,846 167,443 |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the calculation of basic and diluted earnings per share (in thousands, except per share amounts): Year Ended December 31, 2017 2016 2015 Net loss $ (22,910 ) $ (66,633 ) $ (524,776 ) Basic and diluted weighted average common shares outstanding 115,709 75,819 75,669 Basic and diluted loss per share $ (0.20 ) $ (0.88 ) $ (6.94 ) |
INVENTORY AND LONG-TERM PARTS31
INVENTORY AND LONG-TERM PARTS INVENTORY (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 December 31, 2017 , and 2016 , respectively (in thousands): December 31, 2017 2016 Finished goods product inventory $ 54,577 $ 52,571 In-process mineral inventory 19,822 22,126 Total product inventory 74,399 74,697 Current parts inventory, net 8,727 19,658 Total current inventory, net 83,126 94,355 Long-term parts inventory, net 30,611 21,037 Total inventory, net $ 113,737 $ 115,392 |
PROPERTY, PLANT, EQUIPMENT AN32
PROPERTY, PLANT, EQUIPMENT AND MINERAL PROPERTIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |
Schedule of Property, Plant, Equipment, And Mineral Properties | Property, plant, equipment, and mineral properties, net" were comprised of the following (in thousands): December 31, Range of remaining useful 2017 2016 Lower Limit Upper Limit Buildings and plant $ 79,757 $ 82,457 1 25 Machinery and equipment 234,861 227,987 1 25 Vehicles 4,835 4,750 3 10 Office equipment and improvements 12,637 12,505 1 20 Ponds and land improvements 56,194 57,474 1 25 Total depreciable assets 388,284 385,173 Accumulated depreciation $ (141,818 ) $ (116,194 ) Total depreciable assets, net $ 246,466 $ 268,979 Mineral properties and development costs 138,841 138,578 Accumulated depletion (26,840 ) (21,974 ) Total depletable assets, net 112,001 116,604 Land $ 519 $ 719 Construction in progress 5,556 2,188 Total property, plant, equipment, and mineral properties, net $ 364,542 $ 388,490 |
Schedule of Depreciation, Depletion Amortization and Accretion | We incurred the following expenses for depreciation, depletion, and accretion, including expenses capitalized into inventory, for the following periods (in thousands): Year Ended December 31, 2017 2016 2015 Depreciation $ 28,323 $ 36,169 $ 79,999 Depletion 4,886 4,744 5,981 Accretion 1,558 1,768 1,696 Total incurred $ 34,767 $ 42,681 $ 87,676 |
OTHER FINANCIAL STATEMENT DATA
OTHER FINANCIAL STATEMENT DATA OTHER FINANCIAL STATEMENT DATA (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Schedule Of Other Operating Income Expense | Other operating (income) expense consisted of the following amounts: Year Ended December 31, 2017 2016 2015 (in thousands) Water sales $ (6,312 ) $ — $ — Loss on disposal of assets 1,830 262 679 Reserve for inventory obsolescence 1,107 496 — Accrual for land issues 600 — — Property damage insurance reimbursement — (1,211 ) — Property damage — — 2,453 Compensating tax adjustment — (1,086 ) — Property tax refund — — (2,504 ) Other (income) expense (14 ) (127 ) 707 Other operating (income) expense $ (2,789 ) $ (1,666 ) $ 1,335 |
Schedule of Other Assets | December 31, 2017 2016 (in thousands) Final price deferred 1 $ 5,989 $ 7,814 Prepaid expenses 3,051 4,063 Other current assets 211 833 Total Other current assets $ 9,251 $ 12,710 1 Final price deferred is product that has shipped to customers, but the price has not yet been agreed upon. This has not been included in inventory as it is not held for sale. Revenue has not been recognized as the amount is not fixed or determinable. |
Schedule of Accrued Liabilities | December 31, 2017 2016 (in thousands) Accrued property taxes $ 854 $ 1,539 Accrued utility expenses 823 955 Accrued interest expense 717 2,312 Accrued construction in progress 662 581 Customer pre-payments 513 — Other 1 4,505 3,303 Total Accrued liabilities $ 8,074 $ 8,690 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term Debt | Our outstanding long-term debt, net, was as follows (in thousands): December 31, 2017 December 31, 2016 Notes, at carrying value $ 60,000 $ 135,000 Less current portion of Notes (10,000 ) — Less deferred financing costs (563 ) (1,566 ) Long-term portion of Notes, net $ 49,437 $ 133,434 |
Schedule Of Interest Expense Debt | Amounts included in interest expense for the years ended December 31, 2017, 2016, and 2015 (in thousands) are as follows: Year ended December 31, 2017 2016 2015 Interest on notes and credit facility $ 7,043 $ 9,152 $ 6,292 Make-whole payments 3,001 806 — Amortization of deferred financing costs 1,778 2,113 352 Gross interest expense 11,822 12,071 6,644 Less capitalized interest 130 449 293 Interest expense, net $ 11,692 $ 11,622 $ 6,351 |
ASSET RETIREMENT OBLIGATION (Ta
ASSET RETIREMENT OBLIGATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of changes to asset retirement obligations | Following is a table of the changes to our asset retirement obligations for the following periods (in thousands): Year Ended December 31, 2017 2016 2015 Asset retirement obligation, at beginning of period $ 19,976 $ 22,951 $ 22,037 Liabilities settled — (3 ) (86 ) Liabilities incurred 29 — — Changes in estimated obligations (87 ) (4,740 ) (696 ) Accretion of discount 1,558 1,768 1,696 Total asset retirement obligation, at end of period $ 21,476 $ 19,976 $ 22,951 |
COMPENSATION PLANS (Tables)
COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of non-vested restricted shares of common stock | A summary of all activity relating to our restricted shares for the year ended December 31, 2017 , is presented below: Weighted Average Shares Restricted shares of common stock, beginning of period 3,531,418 $ 1.78 Granted with service only condition 1,192,112 $ 2.27 Granted with service and market conditions 213,753 $ 2.10 Vested (1,306,766 ) $ 2.48 Forfeited (466,614 ) $ 1.41 Restricted shares of common stock, end of period 3,163,903 $ 1.73 |
Schedule of stock options, valuation assumptions | The following assumptions were used to compute the weighted average fair market value of options with service-based vesting granted in 2017 and 2016: 2017 2016 Risk free interest rate 1.6 % 1.8 % Dividend yield — % — % Estimated volatility 71.5 % 63.8 % Expected option life 6.00 years 6.25 years |
Summary of stock option activity | A summary of all stock option activity for the year ended December 31, 2017 , is as follows: Shares Weighted Average Exercise Price Aggregate Intrinsic Value 1 Weighted Average Remaining Contractual Life Outstanding non-qualified stock 1,883,706 $3.90 Granted 631,576 $2.29 Exercised (117,213 ) $1.03 Forfeited (302,562 ) $1.14 Expired (19,686 ) $28.73 Outstanding non-qualified stock 2,075,821 $3.74 $6,238,639 8.3 Vested or expected to vest, 2,075,821 $3.74 $6,238,639 8.3 Exercisable non-qualified 455,622 $11.70 $956,562 5.7 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Provision | A summary of the provision for income taxes is as follows (in thousands): Year Ended December 31, 2017 2016 2015 Current portion of income tax expense (benefit): Federal $ (2,793 ) $ (1,365 ) $ — State 10 3 (123 ) Deferred portion of income tax expense: Federal — — 116,128 State — — 33,968 Total income tax (benefit) expense $ (2,783 ) $ (1,362 ) $ 149,973 |
Reconciliation of The Statutory Rate to The Effective Rate | A reconciliation of the federal statutory income tax rate of 35% to our effective rate is as follows (in thousands, except percentages): Year Ended December 31, 2017 2016 2015 Federal taxes at statutory rate $ (8,992 ) $ (23,793 ) $ (131,181 ) Add: State taxes, net of federal benefit (1,414 ) (4,982 ) (18,639 ) Change in valuation allowance (104,507 ) 25,496 300,333 Change in federal and state tax rates 115,545 — — Percentage depletion (598 ) (552 ) (1,285 ) Other (2,817 ) 2,469 745 Net (benefit) expense as calculated $ (2,783 ) $ (1,362 ) $ 149,973 Effective tax rate 10.8 % 2.0 % (40.0 )% |
Schedule of Net Deferred Tax Assets | Significant components of our deferred tax assets and liabilities were as follows (in thousands): December 31, 2017 2016 Deferred tax assets (liabilities): Property, plant, equipment and mineral properties, net $ 136,543 $ 212,049 Federal and state net operating loss carryforwards 68,733 85,695 Other 7,225 9,665 Asset retirement obligation 5,472 10,934 R&D credits 1,896 1,896 Equity compensation 1,529 3,542 Inventory 947 1,285 Accrued employee compensation and benefits 24 (239 ) AMT credits — 2,861 Prepaid expenses $ (779 ) $ (1,591 ) Total deferred tax assets 221,590 326,097 Valuation allowance (221,590 ) (326,097 ) Deferred tax asset, net $ — $ — |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments | The annual minimum lease payments for the next five years and thereafter are presented below (in thousands): Years Ending December 31, 2018 $ 2,400 2019 1,369 2020 977 2021 661 2022 442 Thereafter 814 Total $ 6,663 |
Schedule of rental and lease expense | Rental and lease expenses follow for the indicated periods (in thousands): For the year ended December 31, 2017 $ 5,693 For the year ended December 31, 2016 $ 6,591 For the year ended December 31, 2015 $ 7,216 |
EMPLOYEE BENEFITS (Tables)
EMPLOYEE BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Contributions to the 401K Plan | We maintain a savings plan qualified under Internal Revenue Code Sections 401(a) and 401(k). The 401(k) Plan is available to eligible employees of our consolidated entities. Employees may contribute amounts as allowed by the U.S. Internal Revenue Service to the 401(k) Plan (subject to certain restrictions) in before-tax contributions. In the past, we have matched employee contributions on a dollar-for-dollar basis up to a maximum of 5% of the employee's base compensation. In January 2016, we elected to suspend matching employee contributions to the 401(k) Plan and resumed contributions to the 401(k) Plan in August 2016, matching employee contributions on a dollar-for-dollar basis up to a maximum of 2% of the employee's base compensation. Our contributions to the 401(k) Plan in the following periods were (in thousands): Contributions Year Ended December 31, 2017 $ 685 Year Ended December 31, 2016 $ 176 Year Ended December 31, 2015 $ 2,277 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Year Ended December 31, 2017 Potash Trio ® Corporate Consolidated Sales $ 95,540 $ 62,067 $ — $ 157,607 Less: Freight costs 11,818 17,221 — 29,039 Warehousing and handling costs 5,555 4,115 — 9,670 Cost of goods sold 1 61,948 43,847 — 105,795 Lower-of-cost-or-market inventory adjustments 550 6,774 — 7,324 Costs associated with abnormal production and other — — — — Gross Margin (Deficit) $ 15,669 $ (9,890 ) $ — $ 5,779 Depreciation, depletion and amortization incurred 2 $ 27,839 $ 6,783 $ 145 $ 34,767 Year Ended December 31, 2016 Potash Trio ® Corporate Consolidated Sales $ 159,494 $ 51,454 $ — $ 210,948 Less: Freight costs 26,661 9,595 — 36,256 Warehousing and handling costs 8,439 2,567 — 11,006 Cost of goods sold 1 134,017 36,835 — 170,852 Lower-of-cost-or-market inventory adjustments 18,380 1,994 — 20,374 Costs associated with abnormal production and other 649 1,058 — 1,707 Gross Deficit $ (28,652 ) $ (595 ) $ — $ (29,247 ) Depreciation, depletion and amortization incurred 2 $ 37,936 $ 3,836 $ 909 $ 42,681 Year Ended December 31, 2015 Potash Trio ® Corporate Consolidated Sales $ 217,467 $ 69,716 $ — $ 287,183 Less: Freight costs 18,262 10,461 — 28,723 Warehousing and handling costs 11,213 2,726 — 13,939 Cost of goods sold 1 172,355 45,466 — 217,821 Lower-of-cost-or-market inventory adjustments 31,772 — — 31,772 Costs associated with abnormal production and other 10,405 — — 10,405 Gross (Deficit) Margin $ (26,540 ) $ 11,063 $ — $ (15,477 ) Depreciation, depletion and amortization incurred 2 $ 68,562 $ 16,993 $ 2,121 $ 87,676 1 Cost of goods sold for Potash is presented net of by-product credits, which were $10.6 million , $9.0 million and $7.9 million for the years ended December 31, 2017, 2016, and 2015, respectively. 2 Depreciation, depletion and amortization incurred for potash and Trio ® excludes depreciation, depletion and amortization amounts absorbed in or (relieved from) inventory. |
QUARTERLY FINANCIAL DATA (Table
QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | QUARTERLY FINANCIAL DATA (UNAUDITED) (in thousands, except per share amounts) Three Months Ended December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 Sales $ 33,305 $ 32,060 $ 43,910 $ 48,332 Cost of Goods Sold $ 20,813 $ 19,395 $ 29,714 $ 35,873 Lower-of-cost-or-market inventory adjustments $ 2,516 $ 667 $ 317 $ 3,824 Gross Margin (Deficit) $ 1,146 $ 3,792 $ 3,697 $ (2,856 ) Net Loss $ (1,389 ) $ (1,908 ) $ (5,935 ) $ (13,678 ) Basic and Diluted $ (0.01 ) $ (0.02 ) $ (0.05 ) $ (0.17 ) Three Months Ended December 31, 2016 September 30, 2016 June 30, 2016 March 31, 2016 Sales $ 42,188 $ 43,643 $ 51,840 $ 73,277 Cost of Goods Sold $ 33,953 $ 35,272 $ 41,850 $ 59,777 Lower-of-cost-or-market inventory adjustments $ 3,245 $ 5,192 $ 2,930 $ 9,007 Costs Associated with $ — $ — $ 1,057 $ 650 Gross Deficit $ (7,004 ) $ (7,624 ) $ (5,466 ) $ (9,153 ) Net Loss $ (16,567 ) $ (18,241 ) $ (13,398 ) $ (18,427 ) Basic and Diluted $ (0.22 ) $ (0.24 ) $ (0.18 ) $ (0.24 ) |
COMPANY BACKGROUND (Narrative)
COMPANY BACKGROUND (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2017Facility | |
Company Background [Abstract] | |
Number of mining facilities | 3 |
SUMMARY OF SIGNIFICANT ACCOUN43
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Senior Notes [Member] | ||
Deferred financing costs | $ 563 | $ 1,566 |
Additional Paid-in Capital [Member] | ||
Adjustment to opening balance | $ 120 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Calculation of basic and diluted earnings per share | |||||||||||
Net Loss | $ (1,389) | $ (1,908) | $ (5,935) | $ (13,678) | $ (16,567) | $ (18,241) | $ (13,398) | $ (18,427) | $ (22,910) | $ (66,633) | $ (524,776) |
Basic and diluted weighted average common shares outstanding | 115,708,859 | 75,818,735 | 75,669,489 | ||||||||
Basic and diluted loss per share | $ (0.01) | $ (0.02) | $ (0.05) | $ (0.17) | $ (0.22) | $ (0.24) | $ (0.18) | $ (0.24) | $ (0.20) | $ (0.88) | $ (6.94) |
Restricted Shares [Member] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive shares | 3,327,789 | 992,751 | 468,737 | ||||||||
Stock Options [Member] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive shares | 1,711,288 | 468,724 | 294,318 | ||||||||
Performance Shares [Member] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive shares | 63,025 | 126,846 | 167,443 |
INVENTORY AND LONG-TERM PARTS45
INVENTORY AND LONG-TERM PARTS INVENTORY (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Inventory [Line Items] | |||||||||||
Lower-of-cost-or-market inventory adjustments | $ 2,516 | $ 667 | $ 317 | $ 3,824 | $ 3,245 | $ 5,192 | $ 2,930 | $ 9,007 | $ 7,324 | $ 20,374 | $ 31,772 |
Costs associated with abnormal production and other | $ 1,057 | $ 650 | $ 0 | $ 1,707 | 10,405 | ||||||
West Facility[Member] [Member] [Member] | |||||||||||
Inventory [Line Items] | |||||||||||
Costs associated with abnormal production and other | 7,500 | ||||||||||
East Facility [Member] | |||||||||||
Inventory [Line Items] | |||||||||||
Costs associated with abnormal production and other | $ 2,900 |
INVENTORY AND LONG-TERM PARTS46
INVENTORY AND LONG-TERM PARTS INVENTORY (Summary of Inventory) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Finished goods product inventory | $ 54,577 | $ 52,571 |
In-process mineral inventory | 19,822 | 22,126 |
Total product inventory | 74,399 | 74,697 |
Current parts inventory | 8,727 | 19,658 |
Total current inventory, net | 83,126 | 94,355 |
Long-term parts inventory | 30,611 | 21,037 |
Total inventory, net | $ 113,737 | $ 115,392 |
PROPERTY, PLANT, EQUIPMENT AN47
PROPERTY, PLANT, EQUIPMENT AND MINERAL PROPERTIES (Schedule of Property, Plant, Equipment and Mineral Properties) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Total depreciable assets | $ 388,284 | $ 385,173 |
Accumulated depreciation | (141,818) | (116,194) |
Total depreciable assets, net | 246,466 | 268,979 |
Mineral properties and development costs | 138,841 | 138,578 |
Accumulated Depletion | (26,840) | (21,974) |
Total depletable assets, net | 112,001 | 116,604 |
Total property, plant, equipment, and mineral properties, net | 364,542 | 388,490 |
Buildings and Plant [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total depreciable assets | 79,757 | 82,457 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total depreciable assets | 234,861 | 227,987 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total depreciable assets | 4,835 | 4,750 |
Office equipment and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total depreciable assets | 12,637 | 12,505 |
Ponds and land improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total depreciable assets | 56,194 | 57,474 |
Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total depreciable assets | 5,556 | 2,188 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total depreciable assets | $ 519 | $ 719 |
Minimum [Member] | Buildings and Plant [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 1 year | |
Minimum [Member] | Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 1 year | |
Minimum [Member] | Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 3 years | |
Minimum [Member] | Office equipment and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 1 year | |
Minimum [Member] | Ponds and land improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 1 year | |
Minimum [Member] | Mineral properties and development costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | ||
Maximum [Member] | Buildings and Plant [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 25 years | |
Maximum [Member] | Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 25 years | |
Maximum [Member] | Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 10 years | |
Maximum [Member] | Office equipment and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 20 years | |
Maximum [Member] | Ponds and land improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 25 years | |
Maximum [Member] | Mineral properties and development costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life |
PROPERTY, PLANT, EQUIPMENT AN48
PROPERTY, PLANT, EQUIPMENT AND MINERAL PROPERTIES (Schedule of Depreciation, Depletion, and Accretion) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Property, Plant and Equipment [Abstract] | ||||
Accelerated Depreciation | $ 4,800 | |||
Depreciation | $ 28,323 | $ 36,169 | 79,999 | |
Depletion | 4,886 | 4,744 | 5,981 | |
Accretion | 1,558 | 1,768 | 1,696 | |
Total | [1] | $ 34,767 | $ 42,681 | 87,676 |
Accelerated depreciation impact on net income loss | $ 4,800 | |||
Accelerated depreciation impact on income per share basic and diluted | $ (0.07) | |||
Impairment of long-lived assets | $ 323,796 | |||
[1] | Depreciation, depletion and amortization incurred for potash and Trio® excludes depreciation, depletion and amortization amounts absorbed in or (relieved from) inventory. |
OTHER FINANCIAL STATEMENT DAT49
OTHER FINANCIAL STATEMENT DATA OTHER FINANCIAL STATEMENT DATA (Other Operating Inccome Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |||
Water sales | $ (6,312) | $ 0 | |
Loss on disposal of assets | 1,830 | 262 | $ 679 |
Reserve for inventory obsolescence | 1,107 | 496 | |
Accrual for land issues | 600 | ||
Property damage insurance reimbursement | (1,211) | ||
Property damage | 2,453 | ||
Compensating tax adjustment | (1,086) | ||
Property tax refund | (2,504) | ||
Other (income) expense | (14) | (127) | 707 |
Other operating (income) expense | $ 2,789 | $ 1,666 | $ (1,335) |
OTHER FINANCIAL STATEMENT DAT50
OTHER FINANCIAL STATEMENT DATA OTHER FINANCIAL STATEMENT DATA (Other Current Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Final price deferred | [1] | $ 5,989 | $ 7,814 |
Prepaid expense | 3,051 | 4,063 | |
Other current assets | 211 | 833 | |
Total other current assets | $ 9,251 | $ 12,710 | |
[1] | Final price deferred is product that has shipped to customers, but the price has not yet been agreed upon. This has not been included in inventory as it is not held for sale. Revenue has not been recognized as the amount is not fixed or determinable. |
OTHER FINANCIAL STATEMENT DAT51
OTHER FINANCIAL STATEMENT DATA (Components of Accrued Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Accrued Liabilities [Abstract] | |||
Accrued property taxes | $ 854 | $ 1,539 | |
Accrued utilities expense | 823 | 955 | |
Accrued interest expense | 717 | 2,312 | |
Accrued construction in progress | 662 | 581 | |
Customer pre-payments | 513 | 0 | |
Other | [1] | 4,505 | 3,303 |
Total Accrued Liabilities | $ 8,074 | $ 8,690 | |
[1] | None of the individual amounts included in "Other" in the above table represent more than five percent of total current liabilities at December 31, 2017 and 2016. |
DEBT (Narrative) (Details)
DEBT (Narrative) (Details) - USD ($) | 12 Months Ended | 15 Months Ended | ||||||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Oct. 31, 2017 | Oct. 31, 2016 | Sep. 30, 2016 | Aug. 01, 2016 | Jul. 30, 2016 | Apr. 30, 2013 | |
Debt Instrument [Line Items] | ||||||||||
Fixed charge coverage amount | $ (500,000) | $ (500,000) | ||||||||
Credit facility, borrowing capacity | $ 0 | $ 1,000,000 | $ 250,000,000 | |||||||
Proceeds from from short-term borrowings on credit facility | 22,000,000 | |||||||||
Repayments of short-term borrowings on credit facility | 18,100,000 | |||||||||
Restricted cash account released | 500,000 | |||||||||
Letters of credit | $ 500,000 | |||||||||
Interest costs incurred | 11,822,000 | 12,071,000 | $ 6,644,000 | |||||||
Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior notes | 60,000,000 | $ 135,000,000 | 60,000,000 | |||||||
Long term debt, face value | $ 150,000,000 | |||||||||
Repayments of notes | 75,000,000 | 90,000,000 | ||||||||
Additional required principal payment by December 31, 2018 | 10,000,000 | 10,000,000 | ||||||||
Additional payment required for Senior Notes, payment to date | 0 | 0 | ||||||||
Adjusted EBITDA | 25,900,000 | |||||||||
Minimum liquidity requirement | 15,000,000 | 15,000,000 | ||||||||
Debt instrument Liquidity | $ 23,100,000 | 23,100,000 | ||||||||
Fixed charge coverage ratio | 0.9 | |||||||||
Leverage ratio | 2.5 | |||||||||
Additional interest rate paid in-kind | 2.00% | |||||||||
Bank Of Montreal [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Minimum fixed charge ratio | 1 | |||||||||
Line of credit | $ 3,900,000 | 3,900,000 | ||||||||
Line of credit facility, threshold, fixed charge coverage ratio | 6,000,000 | 6,000,000 | ||||||||
Credit facility, borrowing capacity | $ 35,000,000 | |||||||||
Line of credit, capacity available for notes repayment | 10,000,000 | 10,000,000 | ||||||||
Proceeds from from short-term borrowings on credit facility | 22,000,000 | |||||||||
Repayments of short-term borrowings on credit facility | 18,100,000 | |||||||||
Line of credit, current borrowing capacity | 22,000,000 | 22,000,000 | ||||||||
Letters of credit | 3,100,000 | 3,100,000 | ||||||||
Minimum [Member] | Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
EBITDA covenant compliance | 7,500,000 | 7,500,000 | ||||||||
Minimum fixed charge coverage amount | $ (10,000,000) | |||||||||
Maximum leverage ratio | 3.5 | |||||||||
Minimum fixed charge ratio | 0.25 | |||||||||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread credit facility | 1.75% | |||||||||
Maximum [Member] | Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Minimum fixed charge coverage amount | $ (15,000,000) | |||||||||
Maximum leverage ratio | 11.5 | |||||||||
Minimum fixed charge ratio | 1.3 | |||||||||
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread credit facility | 2.25% | |||||||||
Series A Senior Notes [Member] | Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior notes | $ 24,000,000 | $ 24,000,000 | ||||||||
Interest rate | 3.73% | 3.73% | 7.73% | |||||||
Series B Senior Notes [Member] | Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior notes | $ 18,000,000 | $ 18,000,000 | ||||||||
Interest rate | 4.63% | 4.63% | 8.63% | |||||||
Series C Senior Notes [Member] | Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior notes | $ 18,000,000 | $ 18,000,000 | ||||||||
Interest rate | 4.78% | 4.78% | 8.78% |
SCHEDULE OF LONG TERM DEBT (Det
SCHEDULE OF LONG TERM DEBT (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Less current portion of notes | $ (10,000) | |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Notes, at carrying value | 60,000 | $ 135,000 |
Less current portion of notes | (10,000) | |
Less deferred financing costs | (563) | (1,566) |
Long-term portion of Notes, net | $ 49,437 | $ 133,434 |
SCHEDULE OF INTEREST EXPENSE (D
SCHEDULE OF INTEREST EXPENSE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |||
Interest on notes and credit facility | $ 7,043 | $ 9,152 | $ 6,292 |
Make-whole payment | 3,001 | 806 | |
Amortization of deferred financing costs | 1,778 | 2,113 | 352 |
Gross interest expense | 11,822 | 12,071 | 6,644 |
Capitalized interest | 130 | 449 | 293 |
Interest expense, net | $ 11,692 | $ 11,622 | $ 6,351 |
ASSET RETIREMENT OBLIGATION (Na
ASSET RETIREMENT OBLIGATION (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Undiscounted amount of asset retirement obligation | $ 59.5 |
Asset retirement obligation payments expected to be made | $ 5.3 |
Period in which no significant payments related to asset retirement obligation are expected (in years) | 5 years |
Minimum [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Credit adjusted risk-free rates | 6.90% |
Maximum [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Credit adjusted risk-free rates | 9.70% |
ASSET RETIREMENT OBLIGATION (Sc
ASSET RETIREMENT OBLIGATION (Schedule of Changes to Asset Retirement Obligations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes to asset retirement obligations | |||
Asset retirement obligation, at beginning of period | $ 19,976 | $ 22,951 | $ 22,037 |
Liabilities settled | (3) | (86) | |
Liabilities incurred | 29 | ||
Changes in estimated obligations | (87) | (4,740) | (696) |
Accretion | 1,558 | 1,768 | 1,696 |
Total asset retirement obligation, at end of period | $ 21,476 | $ 19,976 | $ 22,951 |
COMMON STOCK (Details)
COMMON STOCK (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | May 31, 2017 | |
Issuance of common stock, net of transaction expense | $ 1,900 | $ 57,200 | $ 59,130 | |
At the market offering common stock offering capacity | $ 40,000 | |||
Common Stock [Member] | ||||
Issuance of common stock (shares) | 500,000 | 50,100,000 | 50,612,027 |
COMPENSATION PLANS (Narrative)
COMPENSATION PLANS (Narrative) (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)Installments$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock available for issuance | 4,000,000 | ||
Total compensation expense | $ | $ 3.6 | $ 3.6 | $ 5.1 |
Total unrecognized compensation expense | $ | $ 5 | ||
Non Qualified Stock Options [Abstract] | |||
Options granted in the period | 0 | ||
Restricted Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, earned | 1,306,766 | ||
Awards, outstanding | 3,163,903 | 3,531,418 | |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards, outstanding | 126,050 | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise in the period | 117,213 | 0 | 0 |
Awards, outstanding | 2,075,821 | 1,883,706 | |
Non Qualified Stock Options [Abstract] | |||
Options granted in the period | 0 | ||
Options granted, weighted average fair value | $ / shares | $ 1.38 | $ 0.61 | |
Options exercised, intrinsic value | $ | $ 0.3 | ||
2015 [Member] | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, earned | 0 | ||
Common stock available for issuance | 126,050 | ||
Restricted Stock [Abstract] | |||
Granted in period, weighted average fair value | $ / shares | $ 13.84 | ||
Performance Period | 3 years | ||
Service Based Vesting [Member] | Restricted Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,192,112 | ||
Restricted Stock [Abstract] | |||
Granted in period, weighted average fair value | $ / shares | $ 2.27 | 1.07 | $ 14.28 |
Service Based Vesting [Member] | Key Employees [Member] | Restricted Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 993,517 | ||
Restricted Stock [Abstract] | |||
Vesting period | 3 years | ||
Service Based Vesting [Member] | Key Employees [Member] | Stock Options [Member] | |||
Restricted Stock [Abstract] | |||
Vesting period | 3 years | ||
Non Qualified Stock Options [Abstract] | |||
Options granted in the period | 117,878 | ||
Grant term | 10 years | ||
Service Based Vesting [Member] | Director [Member] | Restricted Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 198,595 | ||
Restricted Stock [Abstract] | |||
Vesting period | 1 year | ||
Service And Market Condition Based Vesting [Member] | Restricted Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 213,753 | ||
Restricted Stock [Abstract] | |||
Granted in period, weighted average fair value | $ / shares | $ 2.10 | $ 0.91 | |
Service And Market Condition Based Vesting [Member] | Executive Officer [Member] | Restricted Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 213,753 | ||
Restricted Stock [Abstract] | |||
Vesting installment | Installments | 3 | ||
Vesting, stock price | $ / shares | $ 3.44 | ||
Vesting stock price consecutive trading days | 20 days | ||
Vesting, anniversary period | 5 years | ||
Service And Market Condition Based Vesting [Member] | Executive Officer [Member] | Stock Options [Member] | |||
Restricted Stock [Abstract] | |||
Vesting installment | Installments | 3 | ||
Vesting, stock price | $ / shares | $ 3.44 | ||
Vesting stock price consecutive trading days | 20 years | ||
Vesting, anniversary period | 5 years | ||
Non Qualified Stock Options [Abstract] | |||
Options granted in the period | 513,698 |
COMPENSATION PLANS (Schedule of
COMPENSATION PLANS (Schedule of Restricted Shares) (Details) - Restricted Shares [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted common stock, at beginning of period (in shares) | 3,531,418 | ||
Restricted common stock, at beginning of period (in dollars per share) | $ 1.78 | ||
Vested (in shares) | (1,306,766) | ||
Vested (in dollars per share) | $ 2.48 | ||
Forfeited (in shares) | (466,614) | ||
Forfeited (in dollars per share) | $ 1.41 | ||
Restricted common stock, at end of period (in shares) | 3,163,903 | 3,531,418 | |
Restricted common stock, at end of period (in dollars per share) | $ 1.73 | $ 1.78 | |
Service Based Vesting [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 1,192,112 | ||
Granted (in dollars per share) | $ 2.27 | 1.07 | $ 14.28 |
Service And Market Condition Based Vesting [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 213,753 | ||
Granted (in dollars per share) | $ 2.10 | $ 0.91 |
COMPENSATION PLANS (Schedule 60
COMPENSATION PLANS (Schedule of Fair Value Assumptions)(Details) - Stock Options [Member] | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk free interest rate | 1.60% | 1.80% |
Dividend yield | 0.00% | 0.00% |
Expected volatility | 71.50% | 63.80% |
Expected option life | 6 years | 6 years 3 months |
COMPENSATION PLANS (Summary of
COMPENSATION PLANS (Summary of Stock Option Activity) (Details) - Stock Options [Member] - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Stock option activity, number of shares | ||||
Outstanding non-qualified stock options, at beginning of period (in shares) | 1,883,706 | |||
Granted (in shares) | 631,576 | |||
Exercised (in shares) | (117,213) | 0 | 0 | |
Forfeited (in shares) | (302,562) | |||
Expired (in Shares) | (19,686) | |||
Outstanding non-qualified stock options, at end of period (in shares) | 2,075,821 | 1,883,706 | ||
Vested or expected to vest, end of period (in shares) | 2,075,821 | |||
Exercisable non-qualified stock options, at end of period (in shares) | 455,622 | |||
Stock Options, Weighted Average Exercise Price | ||||
Outstanding non-qualified stock options, at beginning of period (in dollars per share) | $ 3.90 | |||
Granted (in dollars per share) | 2.29 | |||
Exercised (in dollars per share) | 1.03 | |||
Forfeited (in dollars per share) | 1.14 | |||
Expired (in dollars per share) | 28.73 | |||
Outstanding non-qualified stock options, at end of period (in dollars per share) | 3.74 | $ 3.90 | ||
Vested or expected to vest, weighted average exercise price end of period (in dollars per share) | 3.74 | |||
Exercisable non-qualified stock options, at end of period (in dollars per share) | $ 11.70 | |||
Outstanding non-qualified stock options, aggregate intrinsic value at end of period (in dollars per share) | [1] | $ 6,238,639 | ||
Vested or expected to vest, aggregate intrinsic value at end of period (in dollars per share) | [1] | 6,238,639 | ||
Exercisable non-qualified stock options, aggregate intrinsic value at end of period (in dollars per share) | [1] | $ 956,562 | ||
Outstanding non-qualified stock options, weighted average contractual life | 8 years 3 months 29 days | |||
Vested or expected to vest, end of period, weighted average contractual life | 8 years 3 months 29 days | |||
Exercisable non-qualified stock options, aggregate intrinsic value at end of period, weighted average contractual life | 5 years 8 months 23 days | |||
[1] | The intrinsic value of a stock option is the amount by which the market value exceeds the exercise price as of the end of the period presented. |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Valuation allowance, charged to costs and expenses | $ (104,507) | $ (407) | $ (438) | |
Change in enacted tax rate | 115,545 | |||
Change in valuation allowance | (104,507) | 25,496 | $ 300,333 | |
Benefit to tax rate | $ 1,400 | 2,700 | ||
Deferred tax assets, gross | 326,097 | 221,590 | 326,097 | |
Deferred tax assets, operating loss carry forwards, federal | 247,800 | |||
Deferred tax assets, 0perating loss carry forwards, state | 314,400 | |||
Deferred tax assets, federal research and development credits | 1,896 | 1,896 | 1,896 | |
Deferred tax assets, net | $ 0 | $ 0 | $ 0 |
INCOME TAXES (Components of Inc
INCOME TAXES (Components of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current portion of income tax expense (benefit): | |||
Federal | $ (2,793) | $ (1,365) | |
State | 10 | 3 | $ (123) |
Deferred portion of income tax expense: | |||
Federal | 116,128 | ||
State | 33,968 | ||
Total income tax expense | $ (2,783) | $ (1,362) | $ 149,973 |
INCOME TAXES (Reconciliation of
INCOME TAXES (Reconciliation of Statutory Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Federal taxes at statutory rate | $ (8,992) | $ (23,793) | $ (131,181) |
State taxes, net of federal benefit | (1,414) | (4,982) | (18,639) |
Change in valuation allowance | (104,507) | 25,496 | 300,333 |
Change in federal and state tax rate | 115,545 | ||
Percentage depletion | (598) | (552) | (1,285) |
Other | (2,817) | 2,469 | 745 |
Total income tax expense | $ (2,783) | $ (1,362) | $ 149,973 |
Effective tax rate | 10.80% | 2.00% | (40.00%) |
INCOME TAXES (Deferred Tax Asse
INCOME TAXES (Deferred Tax Assets Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets (liabilities): | ||
Property, plant, equipment and mineral properties, net | $ 136,543 | $ 212,049 |
Federal and state net operating loss carryforwards | 68,733 | 85,695 |
Other | 7,225 | 9,665 |
Asset retirement obligation | 5,472 | 10,934 |
R&D Credits | 1,896 | 1,896 |
Equity compensation | 1,529 | 3,542 |
Inventory | 947 | 1,285 |
Accrued employee compensation and benefits | 24 | |
Accrued employee compensation and benefits | (239) | |
AMT Credits | 2,861 | |
Prepaid Expenses | (779) | (1,591) |
Total Deferred Tax Assets | 221,590 | 326,097 |
Deferred Tax Assets, Valuation Allowance | (221,590) | (326,097) |
Deferred tax asset, net | $ 0 | $ 0 |
COMMITMENTS AND CONTINGENCIES66
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reclamation Deposits and Surety Bonds | ||
Security placed with the State of Utah and the BLM | $ 18.8 | $ 21.4 |
Long-term restricted cash deposits | 0.5 | 3.5 |
Surety bonds issued by an insurer | $ 18.3 | $ 17.9 |
Future Operating Lease Commitments | ||
Operating Lease, Contract Term, Maximum (in years) | 20 years |
COMMITMENTS AND CONTINGENCIES67
COMMITMENTS AND CONTINGENCIES (Annual Minimum Lease Payments) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Future Operating Lease Commitments | |
2,018 | $ 2,400 |
2,019 | 1,369 |
2,020 | 977 |
2,021 | 661 |
2,022 | 442 |
Thereafter | 814 |
Total | $ 6,663 |
COMMITMENTS AND CONTINGENCIES68
COMMITMENTS AND CONTINGENCIES (Schedule of Rental and Lease Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rental and lease expenses | $ 5,693 | $ 6,591 | $ 7,216 |
RESTRUCTURING EXPENSE (Narrativ
RESTRUCTURING EXPENSE (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | ||
Restructuring charge | $ 266 | $ 2,723 |
FAIR VALUE MEASUREMENTS FAIR VA
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | ||
Estimated fair value of outstanding notes | $ 58.8 | $ 131 |
EMPLOYEE BENEFITS (Details)
EMPLOYEE BENEFITS (Details) - USD ($) $ in Thousands | 12 Months Ended | 17 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Employer matching contribution, percent of employees' gross pay | 5.00% | 2.00% | ||
Contributions to 401K Plan | $ 685 | $ 176 | $ 2,277 |
BUSINESS SEGMENTS (Narrative) (
BUSINESS SEGMENTS (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)Reporting_Segments | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | Reporting_Segments | 2 | ||
Segment Reporting Information [Line Items] | |||
Cost of goods sold, by-product credits | $ 10,600 | $ 9,000 | $ 7,900 |
Restructuring charges | $ 266 | 2,723 | |
Operating Segments [Member] | Potash [Member] | |||
Segment Reporting Information [Line Items] | |||
Restructuring charges | 2,100 | ||
Operating Segments [Member] | Trio [Member] | |||
Segment Reporting Information [Line Items] | |||
Restructuring charges | 400 | ||
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 | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | $ 33,305 | $ 32,060 | $ 43,910 | $ 48,332 | $ 42,188 | $ 43,643 | $ 51,840 | $ 73,277 | $ 157,607 | $ 210,948 | $ 287,183 | |
Less: Freight costs | 29,039 | 36,256 | 28,723 | |||||||||
Warehousing and handling costs | 9,670 | 11,006 | 13,939 | |||||||||
Cost of goods sold | [1] | 105,795 | 170,852 | 217,821 | ||||||||
Lower-of-cost-or-market inventory adjustments | 2,516 | 667 | 317 | 3,824 | 3,245 | 5,192 | 2,930 | 9,007 | 7,324 | 20,374 | 31,772 | |
Costs associated with abnormal production and other | 1,057 | 650 | 0 | 1,707 | 10,405 | |||||||
Gross (Deficit) Margin | $ 1,146 | $ 3,792 | $ 3,697 | $ (2,856) | $ (7,004) | $ (7,624) | $ (5,466) | $ (9,153) | 5,779 | (29,247) | (15,477) | |
Depreciation, depletion and amortization expense | [2] | 34,767 | 42,681 | 87,676 | ||||||||
Potash [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 95,540 | 159,494 | 217,467 | |||||||||
Less: Freight costs | 11,818 | 26,661 | 18,262 | |||||||||
Warehousing and handling costs | 5,555 | 8,439 | 11,213 | |||||||||
Cost of goods sold | [1] | 61,948 | 134,017 | 172,355 | ||||||||
Lower-of-cost-or-market inventory adjustments | 550 | 18,380 | 31,772 | |||||||||
Costs associated with abnormal production and other | 649 | 10,405 | ||||||||||
Gross (Deficit) Margin | 15,669 | (28,652) | (26,540) | |||||||||
Depreciation, depletion and amortization expense | [2] | 27,839 | 37,936 | 68,562 | ||||||||
Trio [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 62,067 | 51,454 | 69,716 | |||||||||
Less: Freight costs | 17,221 | 9,595 | 10,461 | |||||||||
Warehousing and handling costs | 4,115 | 2,567 | 2,726 | |||||||||
Cost of goods sold | [1] | 43,847 | 36,835 | 45,466 | ||||||||
Lower-of-cost-or-market inventory adjustments | 6,774 | 1,994 | ||||||||||
Costs associated with abnormal production and other | 1,058 | |||||||||||
Gross (Deficit) Margin | (9,890) | (595) | 11,063 | |||||||||
Depreciation, depletion and amortization expense | [2] | 6,783 | 3,836 | 16,993 | ||||||||
Corporate/Other [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Warehousing and handling costs | ||||||||||||
Depreciation, depletion and amortization expense | [2] | $ 145 | $ 909 | $ 2,121 | ||||||||
[1] | Cost of goods sold for Potash is presented net of by-product credits, which were $10.6 million, $9.0 million and $7.9 million for the years ended December 31, 2017, 2016, and 2015, respectively. | |||||||||||
[2] | Depreciation, depletion and amortization incurred for potash and Trio® excludes depreciation, depletion and amortization amounts absorbed in or (relieved from) inventory. |
CONCENTRATION OF CREDIT RISK (N
CONCENTRATION OF CREDIT RISK (Narrative) (Details) - markets | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Concentration Risk [Line Items] | |||
Number of primary markets (in markets) | 3 | ||
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 0.00% | 0.00% | 0.00% |
UNITED STATES | Sales Revenue, Goods, Net [Member] | Customers located in the United States | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 87.00% | 98.00% | 97.00% |
FINANCIAL INFORMATION FOR SUB75
FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS OF POSSIBLE FUTURE PUBLIC DEBT (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 1,068 | $ 4,464 | $ 9,307 | $ 67,589 |
QUARTERLY FINANCIAL DATA (Detai
QUARTERLY FINANCIAL DATA (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |||||||||||
Sales | $ 33,305 | $ 32,060 | $ 43,910 | $ 48,332 | $ 42,188 | $ 43,643 | $ 51,840 | $ 73,277 | $ 157,607 | $ 210,948 | $ 287,183 |
Cost of Goods Sold | 20,813 | 19,395 | 29,714 | 35,873 | 33,953 | 35,272 | 41,850 | 59,777 | |||
Lower-of-cost-or-market inventory adjustments | 2,516 | 667 | 317 | 3,824 | 3,245 | 5,192 | 2,930 | 9,007 | 7,324 | 20,374 | 31,772 |
Costs associated with abnormal production and other | 1,057 | 650 | 0 | 1,707 | 10,405 | ||||||
Gross Margin (Deficit) | 1,146 | 3,792 | 3,697 | (2,856) | (7,004) | (7,624) | (5,466) | (9,153) | 5,779 | (29,247) | (15,477) |
Impairment of long-lived assets | 323,796 | ||||||||||
Net Loss | $ (1,389) | $ (1,908) | $ (5,935) | $ (13,678) | $ (16,567) | $ (18,241) | $ (13,398) | $ (18,427) | $ (22,910) | $ (66,633) | $ (524,776) |
Loss Per Share, Basic and Diluted | $ (0.01) | $ (0.02) | $ (0.05) | $ (0.17) | $ (0.22) | $ (0.24) | $ (0.18) | $ (0.24) | $ (0.20) | $ (0.88) | $ (6.94) |
SCHEDULE II - VALUATION AND Q77
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation allowance, at beginning of year | $ 329,206 | $ 303,768 | $ 1,613 |
Charged to costs and expenses | 1,938 | 25,845 | 302,593 |
Deductions | (104,507) | (407) | (438) |
Valuation allowance, at end of year | 226,637 | 329,206 | 303,768 |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation allowance, at beginning of year | 326,097 | 300,601 | 268 |
Charged to costs and expenses | 25,496 | 300,333 | |
Deductions | (104,507) | ||
Valuation allowance, at end of year | 221,590 | 326,097 | 300,601 |
Inventory Valuation Reserve [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation allowance, at beginning of year | 3,109 | 2,760 | 500 |
Charged to costs and expenses | 1,073 | 349 | 2,260 |
Valuation allowance, at end of year | 4,182 | 3,109 | 2,760 |
Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation allowance, at beginning of year | 407 | 845 | |
Charged to costs and expenses | 865 | ||
Deductions | $ (407) | (438) | |
Valuation allowance, at end of year | $ 865 | $ 407 |