Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 28, 2022 | Jun. 30, 2021 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 001-34025 | ||
Entity Registrant Name | INTREPID POTASH, INC. | ||
Entity Central Index Key | 0001421461 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 26-1501877 | ||
Entity Address, Address Line One | 1001 17th Street, Suite 1050 | ||
Entity Address, City or Town | Denver, | ||
Entity Address, State or Province | CO | ||
Entity Address, Postal Zip Code | 80202 | ||
City Area Code | 303 | ||
Local Phone Number | 296-3006 | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Trading Symbol | IPI | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 266 | ||
Entity Common Stock, Shares Outstanding | 13,528,556 | ||
Documents Incorporated by Reference | Certain information required by Items 10, 11, 12, 13 and 14 of Part III is incorporated by reference from portions of the registrant's definitive proxy statement relating to its 2022 annual meeting of stockholders to be filed within 120 days after December 31, 2021. |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Auditor [Line Items] | |
Auditor Location | Denver, Colorado |
Auditor Name | KPMG LLP |
Auditor Firm ID | 185 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 36,452 | $ 19,515 |
Accounts receivable: | ||
Trade, net | 35,409 | 22,516 |
Other receivables, net | 989 | 1,856 |
Inventory, net | 78,856 | 88,673 |
Other current assets | 5,144 | 3,228 |
Total current assets | 156,850 | 135,788 |
Property, plant, equipment, and mineral properties, net | 341,117 | 355,497 |
Water rights | 19,184 | 19,184 |
Long-term parts inventory, net | 29,251 | 28,900 |
Other assets, net | 11,418 | 10,819 |
Non-current deferred tax asset, net | 209,075 | 0 |
Total Assets | 766,895 | 550,188 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable | 9,068 | 7,278 |
Income taxes payable | 41 | 0 |
Accrued liabilities | 22,938 | 12,701 |
Accrued employee compensation and benefits | 6,805 | 4,422 |
Other current liabilities | 34,571 | 32,816 |
Current portion of long-term debt | 0 | 10,000 |
Total current liabilities | 73,423 | 67,217 |
Advances on credit facility | 0 | 29,817 |
Long-term debt, net | 0 | 14,926 |
Asset retirement obligation | 27,024 | 23,872 |
Operating lease liabilities | 1,879 | 2,136 |
Other non-current liabilities | 1,166 | 961 |
Total Liabilities | 103,492 | 138,929 |
Commitments and Contingencies | ||
Common stock, $0.001 par value; 40,000,000 shares authorized; and 13,149,315 and 13,049,820 shares outstanding at December 31, 2021, and 2020, respectively | 13 | 13 |
Additional paid-in capital | 659,147 | 656,837 |
Retained earnings (Accumulated deficit) | 4,243 | (245,591) |
Total Stockholders' Equity | 663,403 | 411,259 |
Total Liabilities and Stockholders' Equity | $ 766,895 | $ 550,188 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 | Aug. 14, 2020 | Aug. 10, 2020 |
Statement of Financial Position [Abstract] | ||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | |
Common stock, shares authorized | 40,000,000 | 40,000,000 | 40,000,000 | |
Common stock, shares outstanding | 13,149,315 | 13,049,820 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Less: | ||||
Lower of cost or net realizable value inventory adjustments | $ 0 | $ 4,015 | $ 1,810 | |
Costs associated with abnormal production | 5,973 | 0 | 0 | |
Gross Margin | 55,764 | 10,530 | 43,478 | |
Selling and administrative | 23,998 | 25,476 | 23,556 | |
Accretion of asset retirement obligation | 1,858 | 1,738 | 1,793 | |
Litigation settlement | 0 | 10,075 | 0 | |
(Gain) loss on sale of assets | (2,542) | (4,250) | 345 | |
Other operating expense | 178 | 735 | 1,424 | |
Operating Income (Loss) | 32,272 | (23,244) | 16,360 | |
Other Income (Expense) | ||||
Interest expense, net | (1,468) | (4,289) | (3,031) | |
Other income | 48 | 384 | 355 | |
Gain on extinguishment of debt | 10,113 | 0 | 0 | |
Income (Loss) Before Income Taxes | 40,965 | (27,149) | 13,684 | |
Income Tax Benefit (Expense) | 208,869 | (5) | (53) | |
Net Income (Loss) | $ 249,834 | $ (27,154) | $ 13,631 | |
Weighted Average Shares Outstanding: | ||||
Basic (in shares) | 13,098,871 | 12,993,225 | 12,904,916 | |
Diluted (in shares) | 13,391,362 | 12,993,225 | 13,105,089 | |
Income (Loss) Per Share: | ||||
Basic (dollar per share) | $ 19.07 | $ (2.09) | $ 1.06 | |
Diluted (dollar per share) | $ 18.66 | $ (2.09) | $ 1.04 | |
Mineral [Member] | ||||
Sales | [1] | $ 270,332 | $ 196,954 | $ 220,075 |
Cost of goods sold | 161,421 | 135,843 | 126,110 | |
Freight costs [Member] | ||||
Cost of goods sold | 37,892 | 37,135 | 40,056 | |
Warehouse and handling costs [Member] | ||||
Cost of goods sold | $ 9,282 | $ 9,431 | $ 8,621 | |
[1] | Segment sales include the sales of byproducts generated during the production of potash and Trio ® . |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | [1] | Retained Deficit [Member] | |
Balance (in shares) at Dec. 31, 2018 | 12,871,659 | |||||
Balance at Dec. 31, 2018 | $ 417,263 | $ 13 | [1] | $ 649,318 | $ (232,068) | |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | 13,631 | 13,631 | ||||
Stock-based compensation | 4,281 | 4,281 | ||||
Vesting of restricted shares, net of common stock used to fund employee income tax withholding due upon vesting (shares) | 81,617 | |||||
Vesting of restricted common stock, net of restricted common stock used to fund employee income tax withholding due upon vesting | (521) | (521) | ||||
Exercise of stock options (in shares) | 2,075 | |||||
Exercise of stock option | 2 | 2 | ||||
Balance (in shares) at Dec. 31, 2019 | 12,955,351 | |||||
Balance at Dec. 31, 2019 | 434,656 | $ 13 | [1] | 653,080 | (218,437) | |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | (27,154) | (27,154) | ||||
Stock-based compensation | 3,821 | 3,821 | ||||
Vesting of restricted shares, net of common stock used to fund employee income tax withholding due upon vesting (shares) | 83,969 | |||||
Vesting of restricted common stock, net of restricted common stock used to fund employee income tax withholding due upon vesting | (172) | (172) | ||||
Exercise of stock options (in shares) | 10,500 | |||||
Exercise of stock option | $ 108 | 108 | ||||
Balance (in shares) at Dec. 31, 2020 | 13,049,820 | 13,049,820 | ||||
Balance at Dec. 31, 2020 | $ 411,259 | $ 13 | [1] | 656,837 | (245,591) | |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | 249,834 | 249,834 | ||||
Stock-based compensation | 3,012 | 3,012 | ||||
Vesting of restricted shares, net of common stock used to fund employee income tax withholding due upon vesting (shares) | 90,844 | |||||
Vesting of restricted common stock, net of restricted common stock used to fund employee income tax withholding due upon vesting | (791) | (791) | ||||
Exercise of stock options (in shares) | 8,651 | |||||
Exercise of stock option | $ 89 | 89 | ||||
Balance (in shares) at Dec. 31, 2021 | 13,149,315 | 13,149,315 | ||||
Balance at Dec. 31, 2021 | $ 663,403 | $ 13 | [1] | $ 659,147 | $ 4,243 | |
[1] | Amounts have been retroactively restated for all prior periods to reflect the one-for-ten reverse split of our common stock effected on August 14, 2020 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Net income (loss) | $ 249,834 | $ (27,154) | $ 13,631 |
Depreciation, depletion, and amortization | 35,635 | 35,788 | 34,121 |
Amortization of intangible assets | 322 | 322 | 214 |
Accretion of asset retirement obligation | 1,858 | 1,738 | 1,793 |
Amortization of deferred financing costs | 314 | 425 | 303 |
Stock-based compensation | 3,012 | 3,821 | 4,281 |
Reserve for obsolescence | 2,108 | 492 | 0 |
Allowance for doubtful accounts | 0 | 75 | 75 |
(Gain) loss on sale of assets | (2,542) | (4,250) | 345 |
Gain on extinguishment of debt | (10,113) | 0 | 0 |
Lower of cost or net realizable value inventory adjustments | 0 | 4,015 | 1,810 |
Other | 0 | (116) | (34) |
Changes in operating assets and liabilities: | |||
Trade accounts receivable, net | (12,615) | 1,158 | 1,337 |
Other receivables, net | 589 | (609) | (650) |
Inventory, net | 7,358 | (291) | (11,525) |
Other current assets | (1,974) | 2,305 | (1,019) |
Deferred tax assets, net | (209,075) | 0 | 0 |
Accounts payable, accrued liabilities and accrued employee compensation and benefits | 13,456 | 2,331 | 2,280 |
Income taxes payable | 42 | (50) | (865) |
Operating lease liabilities | (2,508) | (2,234) | (2,090) |
Other liabilities | 3,366 | 13,379 | 5,374 |
Net cash provided by operating activities | 79,067 | 31,145 | 49,381 |
Cash Flows from Investing Activities: | |||
Additions to property, plant, equipment, mineral properties and other assets | (19,789) | (16,443) | (63,836) |
Additions to intangible Assets | 0 | 0 | (16,873) |
Proceeds from sale of property, plant, equipment, and mineral properties | 6,042 | 4,786 | 68 |
Long-term investment | (1,076) | (3,500) | 0 |
Net cash used in investing activities | (14,823) | (15,157) | (80,641) |
Cash Flows from Financing Activities: | |||
Repayments of long-term debt | (15,000) | (35,000) | 0 |
Debt prepayment costs | (505) | (1,869) | 0 |
Proceeds from loan under CARES Act | 0 | 10,000 | 0 |
Proceeds from borrowings on credit facility | 0 | 10,000 | 30,317 |
Repayments of borrowings on credit facility | (29,817) | 0 | (10,500) |
Payments of financing lease | (1,258) | (74) | 0 |
Capitalized debt costs | 0 | (36) | (503) |
Employee tax withholding paid for restricted stock upon vesting | (791) | (172) | (540) |
Proceeds from exercise of stock options | 89 | 108 | 21 |
Net cash (used in) provided by financing activities | (47,282) | (17,043) | 18,795 |
Net Change in Cash, Cash Equivalents, and Restricted Cash | 16,962 | (1,055) | (12,465) |
Cash, Cash Equivalents, and Restricted Cash, beginning of period | 20,184 | 21,239 | 33,704 |
Cash, Cash Equivalents, and Restricted Cash, end of period | 37,146 | 20,184 | 21,239 |
Supplemental disclosure of cash flow information | |||
Interest, net of $0.1 million of capitalized interest in 2021, $0.1 million in 2020, and $0.2 million in 2019 | 875 | 2,467 | 2,733 |
Income taxes | 193 | 97 | 942 |
Accrued purchases for property, plant, equipment, mineral properties, and development costs | $ 2,192 | $ 344 | $ 5,021 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Capitalized interest | $ 75 | $ 111 | $ 180 |
COMPANY BACKGROUND
COMPANY BACKGROUND | 12 Months Ended |
Dec. 31, 2021 | |
Company Background [Abstract] | |
COMPANY BACKGROUND | COMPANY BACKGROUND We are a diversified mineral company that delivers potassium, magnesium, sulfur, salt, and water products essential for customer success in agriculture, animal feed and the oil and gas industry. We are the only U.S. producer of muriate of potash (sometimes referred to as potassium chloride or potash), which is applied as an essential nutrient for healthy crop development, utilized in several industrial applications, and used as an ingredient in animal feed. In addition, we produce a specialty fertilizer, Trio ® , which delivers three key nutrients, potassium, magnesium, and sulfate, in a single particle. We also provide water, magnesium chloride, brine and various oilfield products and services. 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. We have permitted, licensed, declared and partially adjudicated water rights in New Mexico under which we sell water primarily to support oil and gas development in the Permian Basin near our Carlsbad facilities. We continue to work to expand our sales of water. In May 2019, we acquired certain land, water rights, state grazing leases for cattle, and other related assets from Dinwiddie Cattle Company. We refer to these assets and operations as "Intrepid South." Due to the strategic location of Intrepid South, part of our long-term operating strategy is selling small parcels of land, including restricted use agreements of surface or subsurface rights, to customers, where such sales provide a solution to a customer's operations in the oil and gas industry. We have three segments: potash, Trio ® , and oilfield solutions. We account for the sales of byproducts as revenue in the potash or Trio ® segment, based on which segment generates the byproduct. For each of the years ended December 31, 2021, 2020, and 2019, a majority of our byproduct sales were accounted for in the potash segment. 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 for each of potash and Trio ® as segment sales less segment byproduct sales and segment freight costs, divided by the number of tons of product sold in 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, 2021 | |
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, revenue from products we sell to customers where the price is variable, 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 —We account for revenue in accordance with Accounting Standards Codification ("ASC") Topic 606 Revenue from Contracts with Customers ("ASC 606"). Under ASC 606, we recognize revenue when control of the promised goods or services is transferred to customers in an amount that reflects the consideration we expect to be entitled in exchange for those goods or services. Performance Obligations: A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in ASC 606. The contract's transaction price is allocated to the performance obligations and recognized as revenue when the performance obligations are satisfied. Substantially all of our contracts are of a short-term nature and contain a single performance obligation because the sale is for one type of product and shipping and handling charges are accounted for as a fulfillment cost and are not considered to be a separate performance obligation. The performance obligation is satisfied when control of the product is transferred to the customer, which typically occurs when we ship mineral products or deliver water from our facility to the customer. We account for substantially all of our revenue from sales to customers at a single point in time. Contract Estimates: In certain circumstances, we may sell product to customers where the sales price is variable. For variable consideration sales, we estimate the sales price we expect to realize at contract inception based on the facts and circumstances for each sale, including historical experience, and recognize revenue to the extent it is probable that a subsequent change in estimate will not result in a significant revenue reversal compared to the cumulative revenue recognized once the uncertainty is resolved. We update variable consideration estimates at each reporting date for any changes in facts and circumstances, and adjust financial information as necessary in the period the change is identified. Contract Balances: The timing of revenue recognition, billings, and cash collection may result in contract assets or contract liabilities. For certain contracts, the customer has agreed to pay us before we have satisfied our performance obligations. Customer payments received before we have satisfied our performance obligations are accounted for as a contract liability. Disaggregation of Revenue: We present disaggregation of revenue by products which we believe best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic conditions. Inventory and Long-Term Parts Inventory —Inventory consists of product and byproduct 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 byproduct 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. 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. 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. Exploration costs include geological and geophysical work performed on areas that that do not yet have proven and probable reserves declared. These costs are expensed as incurred. 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 Intangible Assets —Water rights are accounted for as indefinite-lived intangible assets. We test indefinite-lived intangible assets for impairment at least annually on October 1, and more frequently if circumstances require. We use a qualitative assessment to determine whether it is more likely than not that the fair value of the unamortized intangible is less than its carrying value. If our qualitative assessment indicates it is more likely than not that the fair value of the unamortized assets is less than its carrying value, we estimate the fair value of the unamortized asset and record an impairment loss based on the excess of the carrying amount of the unamortized intangible asset over its estimated fair value. Fair value is estimated using quoted market prices, if available. If quoted market prices are not available, the estimated fair value is based on various valuation techniques, including the discounted value of estimated future cash flows. Changes in significant assumptions underlying fair value estimates may have a material effect on our financial position and results of operations. We also have finite-lived intangible assets consisting of contractual agreements. These intangible assets are amortized over the period of estimated benefit using the straight-line method. No significant residual value is estimated for our finite-lived intangible assets. We estimate the useful life of intangible assets considering various factors, including but not limited to, the expected use of the asset, the expected life of other assets the intangible asset may relate, any legal, regulatory, contractual provisions, or relevant economic factors that may limit the use of the intangible asset. We evaluate the remaining useful lives of intangible assets each reporting period to determine if a revision to the asset's remaining life is necessary. Changes in significant assumptions underlying useful lives may have a material effect on our financial position and results of operations. We evaluate our finite-lived intangible assets for impairment when events or changes in circumstances indicate that the related carrying amount may not be recoverable. Such circumstances may include but are not limited to (1) significant adverse changes in the manner the asset is used, or (2) significant adverse changes in legal factors or economic conditions, including adverse actions by regulatory authorities. We did not record any impairments to our intangible assets in 2021 and 2020. Asset Retirement Obligations —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. Leases —We determine if an arrangement is a lease or contains a lease at inception. Operating and finance lease liabilities are recognized based on the present value of the remaining lease payments, discounted using the discount rate for the lease at the commencement date. If readily determinable, we use the implicit rate in the lease to determine the present value of future lease payments. If the implicit rate is not readily determinable, we use an incremental borrowing rate based on information available at the commencement date to determine the present value of future lease payments. Operating right-of-use ("ROU") assets and finance lease assets are generally recognized based on the amount of the initial measurement of the lease liability. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. For finance leases, interest expense is recognized on the lease liability and the ROU asset is amortized over the lease term. We account for lease and non-lease components as a single lease component and we do not apply the requirements of ASC Topic 842 to short-term leases with a term of one year or less at inception. 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. 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. Reverse Stock Split —On August 10, 2020, after receiving stockholder approval, the Board of Directors approved an amendment to Certificate of Incorporation to effect a reverse stock split of our common stock, par value $0.001 per share, by a ratio of one-for-ten. The reverse stock split was effected on August 14, 2020. Additionally, the total number of authorized shares of our common stock was reduced to 40,000,000 shares. Unless otherwise indicated, all share amounts, per share data, share prices, exercise prices and conversion rates set forth in these notes and the accompanying consolidated financial statements have, where applicable, been adjusted retroactively to reflect this reverse stock split. 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. We recognize expense associated with such awards over the service period associated with each grant. For awards with service only conditions we recognize expense using the straight-line recognition method over the requisite service period of the award, which is generally the vesting period of the award. We recognize expense for awards with service and operational performance conditions using the accelerated recognition method over the requisite service period of the award, which is generally the vesting period of the award. We recognize expense associated with awards that contain both a service condition and a market condition using the accelerated recognition method over the requisite service period of the award, which is generally the longer 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 June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, as amended by ASU No. 2019-04 and ASU No. 2019-10, Financial Instruments - (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASC Topic 326"), which we adopted on January 1, 2020. ASC Topic 326 changed the way entities recognized impairment of many financial assets by requiring immediate recognition of estimated credit losses expected to occur over their remaining life. Because our trade receivables are short-term in nature, the adoption of this new standard did not have a material impact on our consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and amending existing guidance to improve consistent application. The adoption of this standard did not have a material impact on our consolidated financial statements. Pronouncements Issued But Not Yet Adopted —In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04") , which provides optional exceptions to GAAP for certain transactions related to the transition away from The London Interbank Offered Rate ("LIBOR"). The amended guidance is designed to provide relief from the accounting analysis and impacts that may otherwise be required for modifications to agreements necessitated by the reference rate reform. Application of the guidance in ASU 2020-04 is optional, is only available in certain situations, and is only available for companies to apply until December 31, 2022. We are currently evaluating the impacts of reference rate reform and the guidance in ASU 2020-04 on our consolidated financial statements. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings 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 is adjusted to include potentially dilutive securities, including restricted stock, 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. The following table shows the calculation of basic and diluted earnings (loss) per share (in thousands, except per share amounts): Year Ended December 31, 2021 2020 2019 Net income (loss) $ 249,834 $ (27,154) $ 13,631 Basic weighted average common shares outstanding 13,099 12,993 12,905 Add: Dilutive effect restricted common stock 221 — 121 Add: Dilutive effect of stock options outstanding 71 — 79 Diluted weighted average common shares outstanding 13,391 12,993 13,105 Earnings (loss) per share: Basic $ 19.07 $ (2.09) $ 1.06 Diluted $ 18.66 $ (2.09) $ 1.04 The following table shows anti-dilutive shares excluded from the calculation of diluted earnings (loss) per share (in thousands): Year Ended December 31, 2021 2020 2019 Anti-dilutive effect of restricted shares 57 246 50 Anti-dilutive effect of stock options outstanding 156 309 165 |
CASH, CASH EQUIVALENTS, AND RES
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, And Restricted Cash | CASH, CASH EQUIVALENTS AND RESTRICTED CASH Total cash, cash equivalents and restricted cash, as shown on the consolidated statements of cash flows are included in the following accounts at December 31, 2021, 2020, and 2019 (in thousands): Year Ended December 31, 2021 2020 2019 Cash and cash equivalents $ 36,452 $ 19,515 $ 20,603 Restricted cash included in "Other current assets" 175 150 150 Restricted cash included in "Other assets, net" 519 519 486 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 37,146 $ 20,184 $ 21,239 |
INVENTORY AND LONG-TERM PARTS I
INVENTORY AND LONG-TERM PARTS INVENTORY | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, and 2020, respectively (in thousands): December 31, 2021 2020 Finished goods product inventory $ 42,492 $ 48,961 In-process inventory 27,211 28,833 Total product inventory 69,703 77,794 Current parts inventory, net 9,153 10,879 Total current inventory, net 78,856 88,673 Long-term parts inventory, net 29,251 28,900 Total inventory, net $ 108,107 $ 117,573 During the year ended December 31, 2021, we recorded no charges for lower of weighted average cost or estimated net realizable value on our finished goods product inventory. During the years ended December 31, 2020 and 2019, we recorded charges or approximately, $4.0 million, and $1.8 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. Parts inventories are shown net of any required allowances. |
PROPERTY, PLANT, EQUIPMENT AND
PROPERTY, PLANT, EQUIPMENT AND MINERAL PROPERTIES | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 Land $ 24,136 $ 27,263 Ponds and land improvements 69,261 67,843 Mineral properties and development costs 144,255 143,955 Buildings and plant 84,268 81,692 Machinery and equipment 272,323 265,121 Vehicles 6,855 5,919 Office equipment and leasehold improvements 8,956 9,083 Operating lease ROU assets 7,763 9,622 Breeding stock 308 260 Construction in progress 11,469 1,710 Total property, plant, equipment, and mineral properties, gross $ 629,594 $ 612,468 Less: accumulated depreciation, depletion, and amortization (288,477) (256,971) Total property, plant, equipment, and mineral properties, net $ 341,117 $ 355,497 We incurred the following expenses for depreciation, depletion, and amortization of ROU assets, including expenses capitalized into inventory, for the following periods (in thousands): Year Ended December 31, 2021 2020 2019 Depreciation $ 29,447 $ 29,697 $ 27,889 Depletion 3,979 3,952 4,173 Amortization of ROU assets 2,209 2,139 2,059 Total incurred $ 35,635 $ 35,788 $ 34,121 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | LEASES We determine if an arrangement is a lease or contains a lease at inception. We have operating leases for mining equipment, trucks, rail cars, and office space. Our operating leases have remaining leases terms ranging from less than one year to five years. Leases recorded on the balance sheet consist of the following (amounts in thousands): Leases Classification on the Balance Sheet Balance, December 31, 2021 Balance, December 31, 2020 Assets Operating lease ROU assets, net Property, plant, equipment, and mineral properties, net $ 3,398 $ 4,091 Finance lease ROU assets, net Property, plant, equipment, and mineral properties, net $ — $ 1,301 Liabilities Current operating lease liabilities Other current liabilities $ 1,655 $ 2,057 Current finance lease liability Other current liabilities $ — 1,258 Non-current operating lease liabilities Operating lease liabilities $ 1,879 $ 2,136 Other information related to lease term and discount rate is as follows: December 31, 2021 December 31, 2020 Weighted average remaining lease term - operating leases 2.5 years 2.4 years Weighted average remaining lease term - finance leases 0.00 years 0.30 years Weighted average discount rate - operating leases 4.59 % 5.49 % Weighted average discount rate - finance leases — % 1.75 % The components of lease expense are as follows (amounts in thousands): For the Year Ended December 31, 2021 For the Year Ended December 31, 2020 For the Year Ended December 31, 2019 Operating lease expense $ 2,370 $ 2,434 $ 2,410 Short-term lease expense 122 117 107 Total lease expense $ 2,492 $ 2,551 $ 2,517 Supplemental cash flow information related to leases was as follows (amounts in thousands): For the Year Ended December 31, 2021 For the Year Ended December 31, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,336 $ 2,480 Finance cash flows from finance leases 1,258 74 Right-of-Use Assets exchanged for new operating lease liabilities 1,849 216 Right-of-Use Assets exchanged for new finance lease liabilities — 1,332 As of December 31, 2021, maturities of lease liabilities are summarized as follows (amounts in thousands): Years Ending December 31, Operating Leases 2022 $ 1,781 2023 1,010 2024 658 2025 145 2026 7 Thereafter — Total future minimum lease payments $ 3,601 Less - amount representing interest 67 Present value of future minimum lease payments $ 3,534 Less - current lease obligations 1,655 Long-term lease obligations $ 1,879 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS We acquired certain water rights, recorded at $16.9 million, and other intangible assets, recorded at $6.4 million, in the Intrepid South asset acquisition that we completed in May 2019. We account for our water rights as indefinite-lived intangible assets. We account for the other intangible assets acquired in the Intrepid South asset acquisition as finite-lived intangible assets and amortize those intangible assets over the period of estimated benefit, using the straight-line method. The weighted-average amortization period for the other intangible assets acquired in the Intrepid South asset acquisition was 20 years. These intangible assets are included in "Other assets, net" on the consolidated balance sheets. As of December 31, 2021, and December 31, 2020, we have the following amounts recorded for intangible assets (amounts in thousands): December 31, 2021 December 31, 2020 Finite-lived intangible assets: Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Produced water disposal royalty agreements $ 2,694 $ (360) $ 2,694 $ (225) Surface damage and easement agreements 3,723 (498) 3,723 (311) Total $ 6,417 $ (858) $ 6,417 $ (536) Indefinite-lived intangible assets: Water rights $ 19,184 $ 19,184 Total amortization of intangible assets for the years ended December 31, 2021, and 2020, was $0.3 million. Total amortization for 2019 was $0.2 million. We estimate the annual amortization expense of intangible assets will be $0.3 million for each of the next five years. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Credit Facility —We maintain a secured revolving credit facility with Bank of Montreal. Borrowings under the credit facility bore interest at LIBOR (London Interbank Offered Rate) plus an applicable margin of 1.25% to 2.00% per annum, based on our leverage ratio. 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. The obligations under the credit facility are unconditionally guaranteed by several of our subsidiaries. We occasionally borrow and repay amounts under the facility for near-term working capital needs or other purposes and may do so in the future. For the year ended December 31, 2021, we made no borrowings and repaid $29.8 million under the facility. For the year ended December 31, 2020, we borrowed $10.0 million and made no repayments, under the facility. As of December 31, 2021, we had no borrowings outstanding and $1.0 million in an outstanding letter of credit under the facility. As of December 31, 2020, we had $29.8 million of borrowings outstanding and $1.0 million in an outstanding letter of credit under the facility. We had $74.0 million available under the facility as of December 31, 2021. We were in compliance with the applicable covenants under the facility as of December 31, 2021. PPP Loan —In April 2020, we received a $10 million loan under the CARES Act Paycheck Protection Program (the "PPP"). We submitted our application for forgiveness of the full amount of the loan in November 2020. In June 2021, we received notice that the SBA had remitted funds to our bank to fully repay our PPP loan and accrued interest. Accordingly, we recognized a gain of $10.1 million related to the forgiveness of the PPP loan and the associated accrued interest on the loan. Senior Notes —In June 2021 we repaid the remaining $15.0 million of principal outstanding on our Series B Senior Notes and satisfied all obligations under the related Note Purchase Agreement. In connection with this repayment, the Company paid in aggregate approximately $15.6 million, which consisted of (i) $15.0 million of remaining aggregate principal amount of Series B Senior Notes, (ii) approximately $0.1 million of accrued interest and (iii) a "make-whole" premium of $0.5 million. As a result of the repayment, the Note Purchase Agreement was terminated. As of December 31, 2020, we had outstanding $15.0 million of Series B Senior Notes. Our total outstanding long-term debt, net, as of December 31, 2020, was as follows (in thousands): December 31, 2020 Notes and Payroll Protection Loan $ 25,000 Less current portion of long-term debt (10,000) Less deferred financing costs (74) Long-term portion of Notes, net $ 14,926 Interest Expense —Interest expense is recorded net of any capitalized interest associated with investments in capital projects. We incurred gross interest expense of $1.5 million, $4.4 million, and $3.2 million for the years ended December 31, 2021, 2020, and 2019, respectively. Amounts included in interest expense for the years ended December 31, 2021, 2020, and 2019 (in thousands) are as follows: Year ended December 31, 2021 2020 2019 Interest expense on borrowings $ 724 $ 2,107 $ 2,908 Make-whole payments 505 1,868 — Amortization of deferred financing costs 314 425 303 Gross interest expense 1,543 4,400 3,211 Less capitalized interest 75 111 180 Interest expense, net $ 1,468 $ 4,289 $ 3,031 |
ASSET RETIREMENT OBLIGATION
ASSET RETIREMENT OBLIGATION | 12 Months Ended |
Dec. 31, 2021 | |
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. Following is a table of the changes to our asset retirement obligations for the following periods (in thousands): Year Ended December 31, 2021 2020 2019 Asset retirement obligation, at beginning of period $ 23,872 $ 22,250 $ 23,125 Liabilities settled — (116) (38) Liabilities incurred — — 60 Changes in estimated obligations 1,294 — (2,690) Accretion of discount 1,858 1,738 1,793 Total asset retirement obligation, at end of period $ 27,024 $ 23,872 $ 22,250 We estimate approximately $6.7 million in payments may occur in the next five years. |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Revenue Recognition —Under ASC 606, we recognize revenue when control of the promised goods or services is transferred to customers in an amount that reflects the consideration we expect to be entitled in exchange for those goods or services. Contract Balances —As of December 31, 2021, and 2020, we had $33.8 million and $30.4 million of contract liabilities, respectively, the majority of which are included in "Other current liabilities" on the consolidated balance sheets, primarily related to cash advances received from a customer for water purchases. Customer advances received before we have satisfied our performance obligations are accounted for as a contract liability (sometimes referred to in practice as deferred revenue). We will recognize the deferred revenue at the time the customer calls for water delivery, which we expect will be sourced from our existing long-term water rights. Our contract liability activity for the years ended December 31, 2021, 2020, and 2019 is shown below (in thousands): Year Ended December 31, 2021 2020 2019 Beginning balance $ 30,419 $ 16,612 $ 11,678 Additions 4,310 17,657 11,058 Recognized as revenue during period from the beginning balance (941) (3,850) (6,124) Ending balance $ 33,788 $ 30,419 $ 16,612 Disaggregation of Revenue —The table below shows the disaggregation of revenue by product and reconciles disaggregated revenue to segment revenue for the years ended December 31, 2021, 2020, and 2019. We believe the disaggregation of revenue by products best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic conditions (in thousands): Year Ended December 31, 2021 Product Potash Segment Trio ® Segment Oilfield Solutions Segment Intersegment Eliminations Total Potash $ 130,460 $ — $ — $ (247) $ 130,213 Trio ® — 91,125 — — 91,125 Water 2,050 4,355 15,594 — 21,999 Salt 9,592 578 — — 10,170 Magnesium Chloride 7,847 — — — 7,847 Brines 1,802 — 1,129 — 2,931 Other — — 6,047 — 6,047 Total Revenue $ 151,751 $ 96,058 $ 22,770 $ (247) $ 270,332 Year Ended December 31, 2020 Product Potash Segment Trio ® Segment Oilfield Solutions Segment Intersegment Eliminations Total Potash $ 92,500 $ — $ — $ (322) $ 92,178 Trio ® — 65,344 — — 65,344 Water 1,253 4,444 14,701 — 20,398 Salt 8,103 499 — — 8,602 Magnesium Chloride 4,855 — — — 4,855 Brines 1,349 — 438 — 1,787 Other — — 3,790 — 3,790 Total Revenue $ 108,060 $ 70,287 $ 18,929 $ (322) $ 196,954 Year Ended December 31, 2019 Product Potash Segment Trio ® Segment Oilfield Solutions Segment Intersegment Eliminations Total Potash $ 103,403 $ — $ 2,973 $ (1,909) $ 104,467 Trio ® — 64,299 — — 64,299 Water 1,823 4,495 19,339 — 25,657 Salt 12,022 757 — — 12,779 Magnesium Chloride 4,907 — — — 4,907 Brines 2,493 — — — 2,493 Other — — 5,582 (109) 5,473 Total Revenue $ 124,648 $ 69,551 $ 27,894 $ (2,018) $ 220,075 |
COMPENSATION PLANS
COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
COMPENSATION PLANS | COMPENSATION PLANS Cash Bonus Programs —We use cash bonus programs under which our employees may be eligible to 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 and we expect to pay in early 2022 a cash bonus to our employees under our 2021 bonus program. While we did meet certain performance metrics related to our 2020 cash bonus program, we did not pay a cash bonus under our 2020 cash bonus program. We did not meet our performance metrics related to the 2019 cash bonus program, and accordingly, we did not pay a cash bonus for 2019 under the program. 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, 2021, 407,597 restricted shares and options to purchase 283,924 shares of common stock were outstanding. As of December 31, 2021, approximately 0.6 million shares of common stock remained available for issuance under the Plan. Total compensation expense related to the Plan was $3.0 million, $3.8 million, and $4.3 million, for the years ended December 31, 2021, 2020, and 2019, respectively. As of December 31, 2021, there was $6.7 million of total remaining unrecognized compensation expense that is expected to be recognized over a weighted-average period of 1.5 years. 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 Conditions —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. In 2021, the Compensation Committee granted 76,869 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 2021, the Compensation Committee granted 19,480 restricted shares to non-employee members of the Board of Directors. The restricted shares vest one year after the date of grant, subject to continued service. We use the closing price of our common stock on the grant date as the grant date fair value for these awards. We record compensation expense 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 conditions issued in 2021, 2020, and 2019 was $37.49, $14.49, and $34.70, respectively. • Restricted Shares with Service and Market Conditions — Under the Plan in March 2021, the Compensation Committee granted restricted shares of common stock with service and market conditions to certain members of our executive team as part of their annual compensation package. The grants vest over three years from the quarter ended in which the volume-weighted average share closing price for 20 consecutive days has met one of the applicable price achievement targets; provided, however, that no vesting would occur if the volume-weighted average closing price for 20 consecutive days has not met one or more applicable price achievement goals on or before March 11, 2024. The share price achievement goals of these awards have been met as of December 31, 2021, and will vest over three years subject to continued employment. Under the Plan in December 2021, the Compensation Committee granted restricted shares of common stock with service and market conditions to a member of our executive team as part of his annual compensation package. This grant vests over two years from the quarter ended in which the volume-weighted average share closing price for 20 consecutive trading days has met one of the applicable price achievement targets; provided, however, that no vesting would occur if the volume-weighted average closing price for 20 consecutive trading days has not met one or more applicable price achievement goals on or before December 23, 2025. As of December 31, 2021, share price achievement goals have not been met. Under the plan in 2020 and 2019, the Compensation Committee granted restricted shares of common stock with service and market conditions to a member of our executive team as part of his annual compensation package. The 2020 grant vests over two years from the quarter ended in which the volume weighted average share closing price for 20 consecutive trading days has met one of the applicable price achievement targets; provided, however, that no vesting would occur if the volume-weighted average closing price for 20 consecutive trading days has not met one or more applicable price achievement goals on or before June 8, 2024. As of December 31, 2021, share price achievement targets have been met for the 2020 grant. The 2019 grant vests over three years; provided, however, that no vesting will occur unless and until the volume-weighted average share closing price meets the applicable share price achievement goal on or before March 13, 2024. As of December 31, 2021, the applicable share price achievement targets for the 2019 award have not been met. We used a Monte Carlo simulation valuation model to estimate the fair value of these awards on the grant date. We record compensation expense monthly using the accelerated recognition method over the longer of the explicit or derived service period of the award. The weighted-average grant date fair value per share of restricted shares with service and market conditions issued in 2021, 2020, and 2019, was $23.76, $19.22 and $28.90, respectively. Valuation models require the input of highly subjective assumptions, including the expected volatility of the price of the underlying stock. We used the following assumptions to compute the weighted-average grant date fair market value of restricted stock with service and market conditions granted in 2021, 2020, and 2019: 2021 2020 2019 Closing stock price on grant date $ 42.03 $ 13.80 $ 33.10 Risk free interest rate 1.1 % 0.6 % 2.2 % Dividend yield — % — % — % Estimated volatility 89.0 % 83.9 % 84.5 % Expected life 5.5 years 6.0 years 4.8 years A summary of all activity relating to our restricted shares for the year ended December 31, 2021, is presented below: Weighted Average Shares Restricted shares of common stock, beginning of period 362,399 $ 19.06 Granted with service only condition 96,349 $ 37.49 Granted with service and market conditions 89,226 $ 23.76 Vested, service only condition (112,221) $ 16.63 Forfeited, service only condition (24,287) $ 21.18 Forfeited, service and market conditions (3,869) $ 23.38 Restricted shares of common stock, end of period 407,597 $ 24.95 Non-Qualified Stock Option Activity We have not granted any non-qualified stock options to our employees since 2018. A summary of all stock option activity for the year ended December 31, 2021, is as follows: Shares Weighted Average Exercise Price Aggregate Intrinsic Value 1 Weighted Average Remaining Contractual Life Outstanding non-qualified stock 296,046 $31.66 Granted — $— Exercised (8,651) $10.30 Forfeited — $— Expired (3,471) $356.90 Outstanding non-qualified stock 283,924 $28.33 $4,088,429 5.6 Vested or expected to vest, 283,924 $28.33 $4,088,429 5.6 Exercisable non-qualified 190,433 $23.09 $3,739,708 5.4 1 The intrinsic value of a stock option is the amount by which the market value exceeds the exercise price as of the end of the period presented. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES We account for income taxes in accordance with ASC Topic 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, 2021 2020 2019 Current portion of income tax expense (benefit): Federal $ — $ (42) $ — State 206 47 53 Deferred portion of income tax expense: Federal (157,348) — — State (51,727) — — Total income tax (benefit) expense $ (208,869) $ 5 $ 53 A reconciliation of the federal statutory income tax rate of 21% to our effective rate is as follows (in thousands, except percentages): Year Ended December 31, 2021 2020 2019 Federal taxes at statutory rate $ 8,603 $ (5,701) $ 2,874 Add: State taxes, net of federal benefit 1,278 (1,316) 1,245 Change in valuation allowance (215,910) 6,320 (6,754) PPP loan forgiveness (2,115) — — Change in federal and state tax rates 138 3 2,322 Percentage depletion (463) — (600) Other (400) 699 966 Net (benefit) expense as calculated $ (208,869) $ 5 $ 53 Effective tax rate (509.9) % — % 0.4 % Our effective tax rate for the years ended December 31, 2021, 2020, and 2019 differs from the U.S. federal statutory rate due to the change in valuation allowance. As of December 31, 2021, and 2020, we had gross deferred tax assets of $211.1 million and $217.9 million, respectively. During the year ended December 31, 2021, our deferred tax assets decreased primarily from our usage of prior year net operating losses to offset current year income. Included in gross deferred tax assets as of December 31, 2021 were approximately $215.0 million of federal net operating loss carryforwards, which expire beginning in 2034, and approximately $279.3 million of state net operating loss carryforwards, 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, 2021 2020 Deferred tax assets (liabilities): Property, plant, equipment and mineral properties, net $ 131,496 $ 133,720 Federal and state net operating loss carryforwards 59,331 66,316 Asset retirement obligation 6,900 6,070 Deferred revenue 8,628 7,651 Other 2,883 2,316 Federal R&D credits 1,870 1,870 Total deferred tax assets 211,108 217,943 Valuation allowance (2,033) (217,943) Deferred tax asset, net $ 209,075 $ — 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. In determining how much of a valuation allowance to recognize we primarily consider our projections of future taxable income. All available evidence, both positive and negative, that may affect the realizability of deferred tax assets is identified and considered in determining the appropriate amount of the valuation allowance. 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. Assumptions of expected future taxable income are based primarily on prices and forecasted sales volumes which are subject to market volatility. 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, 2021, we were in a cumulative three-year income position. The cumulative three-year income position is significant positive evidence when evaluating the realizability of our deferred tax assets. Additionally, industry trends and forecasts as well as internal forecasts of future business show sustained amounts of taxable income. Thus, we have concluded that it is more likely than not that most of our $211.1 million of deferred tax assets will be realized. We continue to maintain a valuation allowance of $2.0 million against our deferred tax assets related to federal and state R&D credits as we forecast these will expire before being used. As of December 31, 2020, we had a full valuation allowance against our deferred tax assets. During 2021, our valuation allowance decreased $215.9 million as we have concluded that we will more likely than not realize most of our deferred tax assets. Our deferred tax assets, net of the valuation allowance at December 31, 2021, and 2020, was $209.1 million and zero, respectively 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 on 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, 2021, and 2020, we had 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 audits that could result in an assessment for years prior to 2018. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Reclamation Deposits and Surety Bonds —As of December 31, 2021, and 2020, we had $23.0 million and $22.3 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, 2021, and 2020, $0.5 million consisted of long-term restricted cash deposits reflected in "Other" long-term assets on the balance sheet, and $22.5 million and $21.8 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 —We are subject to claims and legal actions in the ordinary course of business. We expense legal costs as incurred. While there are uncertainties in predicting the outcome of any claim or legal action, except as noted below, we believe the ultimate resolution of these claims or actions is not reasonably likely to have a material adverse effect on our financial condition, results of operations, or cash flows. Mosaic Settlement In March 2020, we entered into a definitive settlement agreement with Mosaic Potash Carlsbad Inc. ("Mosaic") related to a compliant originally brought against us and Steve Gamble in February 2015. Mr. Gamble is a former employee of Intrepid and Mosaic. Under the terms of the settlement agreement, we paid Mosaic an aggregate of $10 million in May 2020 to dismiss all current and future claims arising from this matter against us and the matter is now closed. Water Rights In February 2019, Pecos Valley Artesian Conservancy District, Carlsbad Irrigation District, and Otis Mutual Domestic Water Consumers & Sewage Works Association (together, the "Protestants") filed an expedited inter se proceeding against us, Henry McDonald, Select Energy Services, LLC d/b/a Gregory Rockhouse Ranch, and Vision Resources, Inc. in the Fifth Judicial District Court for the County of Chaves in the State of New Mexico. This court serves as the adjudication court for the Pecos Stream System, which includes the Pecos River. The Protestants challenged the validity of our Pecos River water rights, representing approximately 20,000 acre feet per year. A virtual trial began on December 8, 2020, and concluded on December 18, 2020. In August 2021, the adjudication court issued its rulings on the validity of our Pecos River water rights. The adjudication court found that our predecessors had forfeited all but approximately 5,800 feet of water per year, and further ruled that, of the remaining 5,800 acre feet of water that had not been forfeited, all but 150 acre feet of water had been abandoned prior to 2017. Following briefing on specific issues, requested by the adjudication court, the adjudication court withdrew its initial findings of fact and conclusions of law and entered amended findings of fact and conclusions of law on December 17, 2021. The order based on these findings of fact and conclusions of law has not yet been entered, but we expect the adjudication court to enter an order based on its findings of fact and conclusions of law in the near future. We anticipate filing an appeal of the adjudication court's ruling on the validity of our water rights. In 2017 and 2018 the New Mexico Office of the State Engineer (“OSE”) had granted us preliminary authorizations to sell approximately 5,700 acre feet of water per year from our Pecos River water rights. The preliminary authorizations allowed for water sales to begin immediately, subject to repayment if the underlying water rights are ultimately found to be invalid. If the adjudication court enters, as expected, an order based on its amended findings of fact and conclusion of law discussed above, and our expected appeal of the adjudication court's ruling is unsuccessful, we may have to repay for the water we sold under the preliminary authorizations. Repayment of this water can be up to two times the amount of water removed from the river. Repayment is customarily made in-kind over a period of time but can take other forms including cash repayment. If we are not able to repay in-kind due to the lack of remaining water rights or logistical constraints, we may need to purchase water to meet this repayment or be subject to a cash repayment. We cannot reasonably estimate the potential volume, timing, or form of repayment, if any, and have not recorded a loss contingency in our statement of operations related to this legal matter. In March 2021, we received notice from a customer of a default under the terms of a long-term sales contract because we have not been able to deliver water to diversion points specified in the contract. We had relied primarily upon our Pecos River water rights to deliver water under this contract, the majority of which are currently unavailable due to the factors discussed above. Under this contract we have received quarterly installments of approximately $3.9 million for the future delivery of water to the customer. In April 2021, we agreed to suspend the second quarter and future quarterly installments due from the customer as we continue to work to resolve the issue. In December 2021, we amended our long-term sales agreement with the customer due to our inability to deliver water. In the amendment, we agreed to suspend all rights and obligations of both parties under the agreement until July 1, 2022. During the suspension period, we have no obligation to deliver water and our customer has no obligation to take water, if available, or make quarterly payments to us. After the suspension period, our customer has the right to terminate the agreement for any reason with thirty days written notice at which time we would be required to repay any outstanding balance for undelivered water. We are continuing to work with the customer to resolve this issue. If we are not able to resolve the issue, we may have to repay the $32.5 million outstanding contract liability we have with this customer as of December 31, 2021. See Note 11—Revenue above for additional information. In August 2021, NGL Energy Partners (NGL), our partner in the Joint Marketing Agreement (“JMA”) that was entered into in May 2019, filed suit against us alleging, amongst other items, we overcharged the JMA for various operating costs and that we used third party water to service certain fracs when JMA water should have been used in those fracs. NGL is seeking to immediately terminate the JMA as well as compensatory damages. We are vigorously defending against the lawsuit. Because this matter is at an early stage, we are unable to reasonably estimate the potential amount of loss, if any. We are subject to other claims and legal actions in the ordinary course of business. 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. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2021 | |
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 that are unobservable As of December 31, 2021, and 2020, 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. In May of 2020, we acquired a non-controlling interest in W.D. Von Gonten Laboratories ("WDVGL") for $3.5 million. This investment is an equity investment without a readily determinable fair value and is recorded at cost with adjustments for observable changes in prices resulting from orderly transactions for the identical or a similar investment of the same issuer, or impairment (a Level 3 input), and is included in "Other assets, net" on the Consolidated Balance Sheets. We did not record any adjustments to the $3.5 million carrying value of the investment during 2021 or 2020. As of December 31, 2020, the carrying value and the estimated fair value of our outstanding Notes was $15.0 million. The fair value of our Notes was 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, 2021 | |
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 January 2018, we increased the matching contributions on a dollar-for-dollar basis up to a maximum of 5% 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, 2021 $ 1,633 Year Ended December 31, 2020 $ 1,569 Year Ended December 31, 2019 $ 1,522 |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS Our operations are organized into three segments: potash, Trio ® , and oilfield solutions. The reportable segments are determined by management based on several factors including the types of products and services sold, 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. Intersegment sales prices are market-based and are eliminated in the "Other" column. Information for each segment is provided in the tables that follow (in thousands). Year Ended December 31, 2021 Potash Trio ® Oilfield Solutions Other Consolidated Sales 1 $ 151,751 $ 96,058 $ 22,770 $ (247) $ 270,332 Less: Freight costs 17,483 20,656 — (247) 37,892 Warehousing and handling costs 5,169 4,113 — — 9,282 Cost of goods sold 87,281 54,847 19,293 — 161,421 Costs associated with abnormal production 5,973 — — — 5,973 Gross Margin $ 35,845 $ 16,442 $ 3,477 $ — $ 55,764 Depreciation, depletion, and amortization 2 incurred $ 26,828 $ 5,477 $ 2,996 $ 656 $ 35,957 Year Ended December 31, 2020 Potash Trio ® Oilfield Solutions Other Consolidated Sales 1 $ 108,060 $ 70,287 $ 18,929 $ (322) $ 196,954 Less: Freight costs 17,026 20,431 — (322) 37,135 Warehousing and handling costs 4,857 4,574 — — 9,431 Cost of goods sold 73,496 50,902 11,445 — 135,843 Lower of cost or NRV inventory adjustments 1,130 2,885 — — 4,015 Gross Margin (Deficit) $ 11,551 $ (8,505) $ 7,484 $ — $ 10,530 Depreciation, depletion, and amortization incurred 2 $ 26,536 $ 6,068 $ 2,663 $ 843 $ 36,110 Year Ended December 31, 2019 Potash Trio ® Oilfield Solutions Other Consolidated Sales 1 $ 124,648 $ 69,551 $ 27,894 $ (2,018) $ 220,075 Less: Freight costs 18,715 20,514 936 (109) 40,056 Warehousing and handling costs 4,745 3,876 — — 8,621 Cost of goods sold 73,401 42,251 12,367 (1,909) 126,110 Lower of cost or NRV inventory adjustments — 1,810 — — 1,810 Gross Margin $ 27,787 $ 1,100 $ 14,591 $ — $ 43,478 Depreciation, depletion, and amortization incurred 2 $ 25,796 $ 6,163 $ 1,566 $ 810 $ 34,335 1 Segment sales include the sales of byproducts generated during the production of potash and Trio ® . 2 Depreciation, depletion, and amortization incurred for potash and Trio ® excludes depreciation, depletion, and amortization 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. |
CONCENTRATION OF CREDIT RISK
CONCENTRATION OF CREDIT RISK | 12 Months Ended |
Dec. 31, 2021 | |
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 2021, 2020, and 2019, 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, 2021, 2020, and 2019, 97%, 97%, and 94%, respectively, of our total sales were sold to customers located in the United States. All of our long-lived assets are 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, 2021 | |
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 $36.5 million and $19.5 million at December 31, 2021, and 2020, 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. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENTIn February of 2022, our Board of Directors approved a $35 million share repurchase program. Under the share repurchase program, we may repurchase shares from time to time in the open market or in privately negotiated transactions. The timing, volume and nature of share repurchases, if any, will be at our sole discretion and will be dependent on market conditions, liquidity, applicable securities laws, and other factors. We may suspend or discontinue the share repurchase program at any time. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, 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, 2019 Allowances deducted from assets Deferred tax assets - valuation allowance $ 218,377 $ — $ (6,754) $ 211,623 Reserve for parts inventory obsolescence 1,743 — (1,127) 616 Allowance for doubtful accounts and other receivables 465 75 (60) 480 Total allowances deducted from assets $ 220,585 $ 75 $ (7,941) $ 212,719 For the Year Ended December 31, 2020 Allowances deducted from assets Deferred tax assets - valuation allowance 211,623 6,320 — 217,943 Reserve for parts inventory obsolescence 616 492 (58) 1,050 Allowance for doubtful accounts and other receivables 480 275 (200) 555 Total allowances deducted from assets $ 212,719 $ 7,087 $ (258) $ 219,548 For the Year Ended December 31, 2021 Allowances deducted from assets Deferred tax assets - valuation allowance 217,943 — (215,910) 2,033 Reserve for parts inventory obsolescence 1,050 2,108 — 3,158 Allowance for doubtful accounts and other receivables 555 — — 555 Total allowances deducted from assets $ 219,548 $ 2,108 $ (215,910) $ 5,746 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
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, revenue from products we sell to customers where the price is variable, 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 | We account for revenue in accordance with Accounting Standards Codification ("ASC") Topic 606 Revenue from Contracts with Customers ("ASC 606"). Under ASC 606, we recognize revenue when control of the promised goods or services is transferred to customers in an amount that reflects the consideration we expect to be entitled in exchange for those goods or services. |
Performance Obligation | A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in ASC 606. The contract's transaction price is allocated to the performance obligations and recognized as revenue when the performance obligations are satisfied. Substantially all of our contracts are of a short-term nature and contain a single performance obligation because the sale is for one type of product and shipping and handling charges are accounted for as a fulfillment cost and are not considered to be a separate performance obligation. The performance obligation is satisfied when control of the product is transferred to the customer, which typically occurs when we ship mineral products or deliver water from our facility to the customer. We account for substantially all of our revenue from sales to customers at a single point in time. |
Contract Estimates | In certain circumstances, we may sell product to customers where the sales price is variable. For variable consideration sales, we estimate the sales price we expect to realize at contract inception based on the facts and circumstances for each sale, including historical experience, and recognize revenue to the extent it is probable that a subsequent change in estimate will not result in a significant revenue reversal compared to the cumulative revenue recognized once the uncertainty is resolved. We update variable consideration estimates at each reporting date for any changes in facts and circumstances, and adjust financial information as necessary in the period the change is identified. |
Contract Balances | The timing of revenue recognition, billings, and cash collection may result in contract assets or contract liabilities. For certain contracts, the customer has agreed to pay us before we have satisfied our performance obligations. Customer payments received before we have satisfied our performance obligations are accounted for as a contract liability. |
Disaggregation of Revenue | We present disaggregation of revenue by products which we believe best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic conditions. |
Inventory and Long-Term Parts Inventory | Inventory consists of product and byproduct 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 byproduct 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. 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. 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. Exploration costs include geological and geophysical work performed on areas that that do not yet have proven and probable reserves declared. These costs are expensed as incurred. 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 |
Intangible Assets | Water rights are accounted for as indefinite-lived intangible assets. We test indefinite-lived intangible assets for impairment at least annually on October 1, and more frequently if circumstances require. We use a qualitative assessment to determine whether it is more likely than not that the fair value of the unamortized intangible is less than its carrying value. If our qualitative assessment indicates it is more likely than not that the fair value of the unamortized assets is less than its carrying value, we estimate the fair value of the unamortized asset and record an impairment loss based on the excess of the carrying amount of the unamortized intangible asset over its estimated fair value. Fair value is estimated using quoted market prices, if available. If quoted market prices are not available, the estimated fair value is based on various valuation techniques, including the discounted value of estimated future cash flows. Changes in significant assumptions underlying fair value estimates may have a material effect on our financial position and results of operations. We also have finite-lived intangible assets consisting of contractual agreements. These intangible assets are amortized over the period of estimated benefit using the straight-line method. No significant residual value is estimated for our finite-lived intangible assets. We estimate the useful life of intangible assets considering various factors, including but not limited to, the expected use of the asset, the expected life of other assets the intangible asset may relate, any legal, regulatory, contractual provisions, or relevant economic factors that may limit the use of the intangible asset. We evaluate the remaining useful lives of intangible assets each reporting period to determine if a revision to the asset's remaining life is necessary. Changes in significant assumptions underlying useful lives may have a material effect on our financial position and results of operations. We evaluate our finite-lived intangible assets for impairment when events or changes in circumstances indicate that the related carrying amount may not be recoverable. Such circumstances may include but are not limited to (1) significant |
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. |
Leases | We determine if an arrangement is a lease or contains a lease at inception. Operating and finance lease liabilities are recognized based on the present value of the remaining lease payments, discounted using the discount rate for the lease at the commencement date. If readily determinable, we use the implicit rate in the lease to determine the present value of future lease payments. If the implicit rate is not readily determinable, we use an incremental borrowing rate based on information available at the commencement date to determine the present value of future lease payments. Operating right-of-use ("ROU") assets and finance lease assets are generally recognized based on the amount of the initial measurement of the lease liability. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. For finance leases, interest expense is recognized on the lease liability and the ROU asset is amortized over the lease term. We account for lease and non-lease components as a single lease component and we do not apply the requirements of ASC Topic 842 to short-term leases with a term of one year or less at inception. |
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. 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. |
Reverse Stock Split | On August 10, 2020, after receiving stockholder approval, the Board of Directors approved an amendment to Certificate of Incorporation to effect a reverse stock split of our common stock, par value $0.001 per share, by a ratio of one-for-ten. The reverse stock split was effected on August 14, 2020. Additionally, the total number of authorized shares of our common stock was reduced to 40,000,000 shares. Unless otherwise indicated, all share amounts, per share data, share prices, exercise prices and conversion rates set forth in these notes and the accompanying consolidated financial statements have, where applicable, been adjusted retroactively to reflect this reverse stock split. |
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. We recognize expense associated with such awards over the service period associated with each grant. For awards with service only conditions we recognize expense using the straight-line recognition method over the requisite service period of the award, which is generally the vesting period of the award. We recognize expense for awards with service and operational performance conditions using the accelerated recognition method over the requisite service period of the award, which is generally the vesting period of the award. We recognize expense associated with awards that contain both a service condition and a market condition using the accelerated recognition method over the requisite service period of the award, which is generally the longer 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 June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, as amended by ASU No. 2019-04 and ASU No. 2019-10, Financial Instruments - (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASC Topic 326"), which we adopted on January 1, 2020. ASC Topic 326 changed the way entities recognized impairment of many financial assets by requiring immediate recognition of estimated credit losses expected to occur over their remaining life. Because our trade receivables are short-term in nature, the adoption of this new standard did not have a material impact on our consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and amending existing guidance to improve consistent application. The adoption of this standard did not have a material impact on our consolidated financial statements. Pronouncements Issued But Not Yet Adopted —In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04") , which provides optional exceptions to GAAP for certain transactions related to the transition away from The London Interbank Offered Rate ("LIBOR"). The amended guidance is designed to provide relief from the accounting analysis and impacts that may otherwise be required for modifications to agreements necessitated by the reference rate reform. Application of the guidance in ASU 2020-04 is optional, is only available in certain situations, and is only available for companies to apply until December 31, 2022. We are currently evaluating the impacts of reference rate reform and the guidance in ASU 2020-04 on our consolidated financial statements. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table shows the calculation of basic and diluted earnings (loss) per share (in thousands, except per share amounts): Year Ended December 31, 2021 2020 2019 Net income (loss) $ 249,834 $ (27,154) $ 13,631 Basic weighted average common shares outstanding 13,099 12,993 12,905 Add: Dilutive effect restricted common stock 221 — 121 Add: Dilutive effect of stock options outstanding 71 — 79 Diluted weighted average common shares outstanding 13,391 12,993 13,105 Earnings (loss) per share: Basic $ 19.07 $ (2.09) $ 1.06 Diluted $ 18.66 $ (2.09) $ 1.04 |
Schedule of Anti-Dilutive Shares Excluded From The Calculation of Diluted Loss Per Share | The following table shows anti-dilutive shares excluded from the calculation of diluted earnings (loss) per share (in thousands): Year Ended December 31, 2021 2020 2019 Anti-dilutive effect of restricted shares 57 246 50 Anti-dilutive effect of stock options outstanding 156 309 165 |
CASH, CASH EQUIVALENTS, AND R_2
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, And Restricted Cash | Total cash, cash equivalents and restricted cash, as shown on the consolidated statements of cash flows are included in the following accounts at December 31, 2021, 2020, and 2019 (in thousands): Year Ended December 31, 2021 2020 2019 Cash and cash equivalents $ 36,452 $ 19,515 $ 20,603 Restricted cash included in "Other current assets" 175 150 150 Restricted cash included in "Other assets, net" 519 519 486 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 37,146 $ 20,184 $ 21,239 |
INVENTORY AND LONG-TERM PARTS_2
INVENTORY AND LONG-TERM PARTS INVENTORY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, and 2020, respectively (in thousands): December 31, 2021 2020 Finished goods product inventory $ 42,492 $ 48,961 In-process inventory 27,211 28,833 Total product inventory 69,703 77,794 Current parts inventory, net 9,153 10,879 Total current inventory, net 78,856 88,673 Long-term parts inventory, net 29,251 28,900 Total inventory, net $ 108,107 $ 117,573 |
PROPERTY, PLANT, EQUIPMENT AN_2
PROPERTY, PLANT, EQUIPMENT AND MINERAL PROPERTIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 Land $ 24,136 $ 27,263 Ponds and land improvements 69,261 67,843 Mineral properties and development costs 144,255 143,955 Buildings and plant 84,268 81,692 Machinery and equipment 272,323 265,121 Vehicles 6,855 5,919 Office equipment and leasehold improvements 8,956 9,083 Operating lease ROU assets 7,763 9,622 Breeding stock 308 260 Construction in progress 11,469 1,710 Total property, plant, equipment, and mineral properties, gross $ 629,594 $ 612,468 Less: accumulated depreciation, depletion, and amortization (288,477) (256,971) Total property, plant, equipment, and mineral properties, net $ 341,117 $ 355,497 |
Schedule of Depreciation, Depletion Amortization and Accretion | We incurred the following expenses for depreciation, depletion, and amortization of ROU assets, including expenses capitalized into inventory, for the following periods (in thousands): Year Ended December 31, 2021 2020 2019 Depreciation $ 29,447 $ 29,697 $ 27,889 Depletion 3,979 3,952 4,173 Amortization of ROU assets 2,209 2,139 2,059 Total incurred $ 35,635 $ 35,788 $ 34,121 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases Recorded on Balance Sheets | Leases recorded on the balance sheet consist of the following (amounts in thousands): Leases Classification on the Balance Sheet Balance, December 31, 2021 Balance, December 31, 2020 Assets Operating lease ROU assets, net Property, plant, equipment, and mineral properties, net $ 3,398 $ 4,091 Finance lease ROU assets, net Property, plant, equipment, and mineral properties, net $ — $ 1,301 Liabilities Current operating lease liabilities Other current liabilities $ 1,655 $ 2,057 Current finance lease liability Other current liabilities $ — 1,258 Non-current operating lease liabilities Operating lease liabilities $ 1,879 $ 2,136 |
Other Information Related to Lease Term and Discount Rate, and Components of Lease Expense | Other information related to lease term and discount rate is as follows: December 31, 2021 December 31, 2020 Weighted average remaining lease term - operating leases 2.5 years 2.4 years Weighted average remaining lease term - finance leases 0.00 years 0.30 years Weighted average discount rate - operating leases 4.59 % 5.49 % Weighted average discount rate - finance leases — % 1.75 % The components of lease expense are as follows (amounts in thousands): For the Year Ended December 31, 2021 For the Year Ended December 31, 2020 For the Year Ended December 31, 2019 Operating lease expense $ 2,370 $ 2,434 $ 2,410 Short-term lease expense 122 117 107 Total lease expense $ 2,492 $ 2,551 $ 2,517 Supplemental cash flow information related to leases was as follows (amounts in thousands): For the Year Ended December 31, 2021 For the Year Ended December 31, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,336 $ 2,480 Finance cash flows from finance leases 1,258 74 Right-of-Use Assets exchanged for new operating lease liabilities 1,849 216 Right-of-Use Assets exchanged for new finance lease liabilities — 1,332 |
Maturities of Lease Liabilities | As of December 31, 2021, maturities of lease liabilities are summarized as follows (amounts in thousands): Years Ending December 31, Operating Leases 2022 $ 1,781 2023 1,010 2024 658 2025 145 2026 7 Thereafter — Total future minimum lease payments $ 3,601 Less - amount representing interest 67 Present value of future minimum lease payments $ 3,534 Less - current lease obligations 1,655 Long-term lease obligations $ 1,879 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | As of December 31, 2021, and December 31, 2020, we have the following amounts recorded for intangible assets (amounts in thousands): December 31, 2021 December 31, 2020 Finite-lived intangible assets: Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Produced water disposal royalty agreements $ 2,694 $ (360) $ 2,694 $ (225) Surface damage and easement agreements 3,723 (498) 3,723 (311) Total $ 6,417 $ (858) $ 6,417 $ (536) Indefinite-lived intangible assets: Water rights $ 19,184 $ 19,184 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term Debt | Our total outstanding long-term debt, net, as of December 31, 2020, was as follows (in thousands): December 31, 2020 Notes and Payroll Protection Loan $ 25,000 Less current portion of long-term debt (10,000) Less deferred financing costs (74) Long-term portion of Notes, net $ 14,926 |
Schedule Of Interest Expense Debt | Amounts included in interest expense for the years ended December 31, 2021, 2020, and 2019 (in thousands) are as follows: Year ended December 31, 2021 2020 2019 Interest expense on borrowings $ 724 $ 2,107 $ 2,908 Make-whole payments 505 1,868 — Amortization of deferred financing costs 314 425 303 Gross interest expense 1,543 4,400 3,211 Less capitalized interest 75 111 180 Interest expense, net $ 1,468 $ 4,289 $ 3,031 |
ASSET RETIREMENT OBLIGATION (Ta
ASSET RETIREMENT OBLIGATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 2019 Asset retirement obligation, at beginning of period $ 23,872 $ 22,250 $ 23,125 Liabilities settled — (116) (38) Liabilities incurred — — 60 Changes in estimated obligations 1,294 — (2,690) Accretion of discount 1,858 1,738 1,793 Total asset retirement obligation, at end of period $ 27,024 $ 23,872 $ 22,250 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Contract Balances | The timing of revenue recognition, billings, and cash collection may result in contract assets or contract liabilities. For certain contracts, the customer has agreed to pay us before we have satisfied our performance obligations. Customer payments received before we have satisfied our performance obligations are accounted for as a contract liability.As of December 31, 2021, and 2020, we had $33.8 million and $30.4 million of contract liabilities, respectively, the majority of which are included in "Other current liabilities" on the consolidated balance sheets, primarily related to cash advances received from a customer for water purchases. Customer advances received before we have satisfied our performance obligations are accounted for as a contract liability (sometimes referred to in practice as deferred revenue). We will recognize the deferred revenue at the time the customer calls for water delivery, which we expect will be sourced from our existing long-term water rights. Our contract liability activity for the years ended December 31, 2021, 2020, and 2019 is shown below (in thousands): Year Ended December 31, 2021 2020 2019 Beginning balance $ 30,419 $ 16,612 $ 11,678 Additions 4,310 17,657 11,058 Recognized as revenue during period from the beginning balance (941) (3,850) (6,124) Ending balance $ 33,788 $ 30,419 $ 16,612 |
Disaggregation of Revenue | The table below shows the disaggregation of revenue by product and reconciles disaggregated revenue to segment revenue for the years ended December 31, 2021, 2020, and 2019. We believe the disaggregation of revenue by products best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic conditions (in thousands): Year Ended December 31, 2021 Product Potash Segment Trio ® Segment Oilfield Solutions Segment Intersegment Eliminations Total Potash $ 130,460 $ — $ — $ (247) $ 130,213 Trio ® — 91,125 — — 91,125 Water 2,050 4,355 15,594 — 21,999 Salt 9,592 578 — — 10,170 Magnesium Chloride 7,847 — — — 7,847 Brines 1,802 — 1,129 — 2,931 Other — — 6,047 — 6,047 Total Revenue $ 151,751 $ 96,058 $ 22,770 $ (247) $ 270,332 Year Ended December 31, 2020 Product Potash Segment Trio ® Segment Oilfield Solutions Segment Intersegment Eliminations Total Potash $ 92,500 $ — $ — $ (322) $ 92,178 Trio ® — 65,344 — — 65,344 Water 1,253 4,444 14,701 — 20,398 Salt 8,103 499 — — 8,602 Magnesium Chloride 4,855 — — — 4,855 Brines 1,349 — 438 — 1,787 Other — — 3,790 — 3,790 Total Revenue $ 108,060 $ 70,287 $ 18,929 $ (322) $ 196,954 Year Ended December 31, 2019 Product Potash Segment Trio ® Segment Oilfield Solutions Segment Intersegment Eliminations Total Potash $ 103,403 $ — $ 2,973 $ (1,909) $ 104,467 Trio ® — 64,299 — — 64,299 Water 1,823 4,495 19,339 — 25,657 Salt 12,022 757 — — 12,779 Magnesium Chloride 4,907 — — — 4,907 Brines 2,493 — — — 2,493 Other — — 5,582 (109) 5,473 Total Revenue $ 124,648 $ 69,551 $ 27,894 $ (2,018) $ 220,075 |
COMPENSATION PLANS (Tables)
COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of restricted shares | A summary of all activity relating to our restricted shares for the year ended December 31, 2021, is presented below: Weighted Average Shares Restricted shares of common stock, beginning of period 362,399 $ 19.06 Granted with service only condition 96,349 $ 37.49 Granted with service and market conditions 89,226 $ 23.76 Vested, service only condition (112,221) $ 16.63 Forfeited, service only condition (24,287) $ 21.18 Forfeited, service and market conditions (3,869) $ 23.38 Restricted shares of common stock, end of period 407,597 $ 24.95 |
Summary of stock option activity | A summary of all stock option activity for the year ended December 31, 2021, is as follows: Shares Weighted Average Exercise Price Aggregate Intrinsic Value 1 Weighted Average Remaining Contractual Life Outstanding non-qualified stock 296,046 $31.66 Granted — $— Exercised (8,651) $10.30 Forfeited — $— Expired (3,471) $356.90 Outstanding non-qualified stock 283,924 $28.33 $4,088,429 5.6 Vested or expected to vest, 283,924 $28.33 $4,088,429 5.6 Exercisable non-qualified 190,433 $23.09 $3,739,708 5.4 |
Service And Market Condition Based Vesting [Member] | Restricted Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of stock options, valuation assumptions | Valuation models require the input of highly subjective assumptions, including the expected volatility of the price of the underlying stock. We used the following assumptions to compute the weighted-average grant date fair market value of restricted stock with service and market conditions granted in 2021, 2020, and 2019: 2021 2020 2019 Closing stock price on grant date $ 42.03 $ 13.80 $ 33.10 Risk free interest rate 1.1 % 0.6 % 2.2 % Dividend yield — % — % — % Estimated volatility 89.0 % 83.9 % 84.5 % Expected life 5.5 years 6.0 years 4.8 years |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 2019 Current portion of income tax expense (benefit): Federal $ — $ (42) $ — State 206 47 53 Deferred portion of income tax expense: Federal (157,348) — — State (51,727) — — Total income tax (benefit) expense $ (208,869) $ 5 $ 53 |
Reconciliation of The Statutory Rate to The Effective Rate | A reconciliation of the federal statutory income tax rate of 21% to our effective rate is as follows (in thousands, except percentages): Year Ended December 31, 2021 2020 2019 Federal taxes at statutory rate $ 8,603 $ (5,701) $ 2,874 Add: State taxes, net of federal benefit 1,278 (1,316) 1,245 Change in valuation allowance (215,910) 6,320 (6,754) PPP loan forgiveness (2,115) — — Change in federal and state tax rates 138 3 2,322 Percentage depletion (463) — (600) Other (400) 699 966 Net (benefit) expense as calculated $ (208,869) $ 5 $ 53 Effective tax rate (509.9) % — % 0.4 % |
Schedule of Deferred Tax Assets and liabilities | Significant components of our deferred tax assets and liabilities were as follows (in thousands): December 31, 2021 2020 Deferred tax assets (liabilities): Property, plant, equipment and mineral properties, net $ 131,496 $ 133,720 Federal and state net operating loss carryforwards 59,331 66,316 Asset retirement obligation 6,900 6,070 Deferred revenue 8,628 7,651 Other 2,883 2,316 Federal R&D credits 1,870 1,870 Total deferred tax assets 211,108 217,943 Valuation allowance (2,033) (217,943) Deferred tax asset, net $ 209,075 $ — |
EMPLOYEE BENEFITS (Tables)
EMPLOYEE BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Contributions to the 401K Plan | Our contributions to the 401(k) Plan in the following periods were (in thousands): Contributions Year Ended December 31, 2021 $ 1,633 Year Ended December 31, 2020 $ 1,569 Year Ended December 31, 2019 $ 1,522 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Year Ended December 31, 2021 Potash Trio ® Oilfield Solutions Other Consolidated Sales 1 $ 151,751 $ 96,058 $ 22,770 $ (247) $ 270,332 Less: Freight costs 17,483 20,656 — (247) 37,892 Warehousing and handling costs 5,169 4,113 — — 9,282 Cost of goods sold 87,281 54,847 19,293 — 161,421 Costs associated with abnormal production 5,973 — — — 5,973 Gross Margin $ 35,845 $ 16,442 $ 3,477 $ — $ 55,764 Depreciation, depletion, and amortization 2 incurred $ 26,828 $ 5,477 $ 2,996 $ 656 $ 35,957 Year Ended December 31, 2020 Potash Trio ® Oilfield Solutions Other Consolidated Sales 1 $ 108,060 $ 70,287 $ 18,929 $ (322) $ 196,954 Less: Freight costs 17,026 20,431 — (322) 37,135 Warehousing and handling costs 4,857 4,574 — — 9,431 Cost of goods sold 73,496 50,902 11,445 — 135,843 Lower of cost or NRV inventory adjustments 1,130 2,885 — — 4,015 Gross Margin (Deficit) $ 11,551 $ (8,505) $ 7,484 $ — $ 10,530 Depreciation, depletion, and amortization incurred 2 $ 26,536 $ 6,068 $ 2,663 $ 843 $ 36,110 Year Ended December 31, 2019 Potash Trio ® Oilfield Solutions Other Consolidated Sales 1 $ 124,648 $ 69,551 $ 27,894 $ (2,018) $ 220,075 Less: Freight costs 18,715 20,514 936 (109) 40,056 Warehousing and handling costs 4,745 3,876 — — 8,621 Cost of goods sold 73,401 42,251 12,367 (1,909) 126,110 Lower of cost or NRV inventory adjustments — 1,810 — — 1,810 Gross Margin $ 27,787 $ 1,100 $ 14,591 $ — $ 43,478 Depreciation, depletion, and amortization incurred 2 $ 25,796 $ 6,163 $ 1,566 $ 810 $ 34,335 1 Segment sales include the sales of byproducts generated during the production of potash and Trio ® . 2 Depreciation, depletion, and amortization incurred for potash and Trio ® excludes depreciation, depletion, and amortization absorbed in or (relieved from) inventory. |
COMPANY BACKGROUND (Details)
COMPANY BACKGROUND (Details) | 12 Months Ended |
Dec. 31, 2021FacilityReporting_Segments | |
Business Acquisition [Line Items] | |
Number of mining facilities | Facility | 3 |
Number of reportable segments | Reporting_Segments | 3 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | Aug. 10, 2020$ / shares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Aug. 14, 2020shares |
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |
Common stock, shares authorized | shares | 40,000,000 | 40,000,000 | 40,000,000 | |
Stock split, conversion ratio | 0.10 | |||
Impairment of intangible assets | $ | $ 0 | $ 0 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Calculation of basic and diluted earnings per share | |||
Net income (loss) | $ 249,834 | $ (27,154) | $ 13,631 |
Basic weighted average common shares outstanding | 13,098,871 | 12,993,225 | 12,904,916 |
Add: Dilutive effect restricted common stock | 221,000 | 121,000 | |
Add: Dilutive effect of stock options oustanding | 71,000 | 79,000 | |
Diluted weighted average common shares outstanding | 13,391,362 | 12,993,225 | 13,105,089 |
Earnings (loss) per share: | |||
Basic | $ 19.07 | $ (2.09) | $ 1.06 |
Diluted | $ 18.66 | $ (2.09) | $ 1.04 |
Restricted Shares [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares | 57,000 | 246,000 | 50,000 |
Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares | 156,000 | 309,000 | 165,000 |
CASH, CASH EQUIVALENTS, AND INV
CASH, CASH EQUIVALENTS, AND INVESTMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 36,452 | $ 19,515 | $ 20,603 | |
Restricted cash included in Other current assets | 175 | 150 | 150 | |
Restricted cash included in Other current, net | 519 | 519 | 486 | |
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ 37,146 | $ 20,184 | $ 21,239 | $ 33,704 |
INVENTORY AND LONG-TERM PARTS_3
INVENTORY AND LONG-TERM PARTS INVENTORY (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Inventory [Line Items] | |||
Lower of cost or net realizable value inventory adjustments | $ 0 | $ 4,015 | $ 1,810 |
INVENTORY AND LONG-TERM PARTS_4
INVENTORY AND LONG-TERM PARTS INVENTORY (Summary of Inventory) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished goods product inventory | $ 42,492 | $ 48,961 |
In-process inventory | 27,211 | 28,833 |
Total product inventory | 69,703 | 77,794 |
Current parts inventory, net | 9,153 | 10,879 |
Total current inventory, net | 78,856 | 88,673 |
Long-term parts inventory, net | 29,251 | 28,900 |
Total inventory, net | $ 108,107 | $ 117,573 |
PROPERTY, PLANT, EQUIPMENT AN_3
PROPERTY, PLANT, EQUIPMENT AND MINERAL PROPERTIES (Schedule of Property, Plant, Equipment and Mineral Properties) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant, equipment, and mineral properties, gross | $ 629,594 | $ 612,468 |
Less: accumulated depreciation, depletion, and amortization | (288,477) | (256,971) |
Total property, plant, equipment, and mineral properties, net | 341,117 | 355,497 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, equipment, and mineral properties, gross | 24,136 | 27,263 |
Ponds and land improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, equipment, and mineral properties, gross | 69,261 | 67,843 |
Mineral properties and development costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, equipment, and mineral properties, gross | 144,255 | 143,955 |
Buildings and Plant [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, equipment, and mineral properties, gross | 84,268 | 81,692 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, equipment, and mineral properties, gross | 272,323 | 265,121 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, equipment, and mineral properties, gross | 6,855 | 5,919 |
Office equipment and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, equipment, and mineral properties, gross | 8,956 | 9,083 |
Operating lease ROU assets | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, equipment, and mineral properties, gross | 7,763 | 9,622 |
Breeding Stock [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, equipment, and mineral properties, gross | 308 | 260 |
Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, equipment, and mineral properties, gross | $ 11,469 | $ 1,710 |
PROPERTY, PLANT, EQUIPMENT AN_4
PROPERTY, PLANT, EQUIPMENT AND MINERAL PROPERTIES (Schedule of Depreciation, Depletion, and Accretion) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 29,447 | $ 29,697 | $ 27,889 |
Depletion | 3,979 | 3,952 | 4,173 |
Amortization of ROU assets | 2,209 | 2,139 | 2,059 |
Total incurred | $ 35,635 | $ 35,788 | $ 34,121 |
LEASES (Leases Recorded on Bala
LEASES (Leases Recorded on Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current operating lease liabilities | $ 1,655 | $ 2,057 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Current finance lease liability | $ 0 | $ 1,258 |
Non-current operating lease liabilities | $ 1,879 | $ 2,136 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Property, Plant and Equipment [Member] | ||
Operating lease ROU assets, net | $ 3,398 | $ 4,091 |
Finance lease ROU assets, net | 0 | 1,301 |
Other Noncurrent Liabilities | ||
Non-current operating lease liabilities | $ 1,879 | $ 2,136 |
LEASES (Other Information Relat
LEASES (Other Information Related to Lease Term and Discount) (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Weighted average remaining lease term - operating leases | 2 years 6 months | 2 years 4 months 24 days |
Weighted average remaining lease term - finance leases | 0 years | 3 months 18 days |
Weighted average discount rate - operating leases | 4.59% | 5.49% |
Weighted average discount rate - finance leases | 0.00% | 1.75% |
LEASES (Components of Lease Exp
LEASES (Components of Lease Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating lease expense | $ 2,370 | $ 2,434 | $ 2,410 |
Short-term lease expense | 122 | 117 | 107 |
Total lease expense | $ 2,492 | $ 2,551 | $ 2,517 |
LEASES LEASES (Supplemental Cas
LEASES LEASES (Supplemental Cash Flow Information Related to Leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating cash flows from operating leases | $ 2,336 | $ 2,480 | |
Finance cash flows from finance leases | 1,258 | 74 | $ 0 |
Right-of-Use Assets exchanged for new operating lease liabilities | 1,849 | 216 | |
Right-of-Use Assets exchanged for new finance lease liabilities | $ 0 | $ 1,332 |
LEASES (Maturities of Lease Lia
LEASES (Maturities of Lease Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2022 | $ 1,781 | |
2023 | 1,010 | |
2024 | 658 | |
2025 | 145 | |
2026 | 7 | |
Thereafter | 0 | |
Total future minimum lease payments | 3,601 | |
Less - amount representing interest | 67 | |
Present value of future minimum lease payments | 3,534 | |
Less - current lease obligations | 1,655 | $ 2,057 |
Long-term lease obligations | 1,879 | 2,136 |
Finance leases, Less - current lease obligations | $ 0 | $ 1,258 |
INTANGIBLE ASSETS (Narrative) (
INTANGIBLE ASSETS (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
May 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Intangible Assets Disclosure [Abstract] | ||||
Water rights acquired in the Intrepid South asset acquisition | $ 16,900 | |||
Other intangible assets acquired in the Intrepid South asset acquisition | $ 6,400 | |||
Amortization of intangible assets | $ 322 | $ 322 | $ 214 | |
Weighted average amortization period | 20 years | |||
Intangible asset, expected amortization, year one | $ 300 | |||
Intangible asset, expected amortization, year two | 300 | |||
Intangible asset, expected amortization, year three | 300 | |||
Intangible asset, expected amortization, year four | 300 | |||
Intangible asset, expected amortization, year five | $ 300 |
INTANGINBLE ASSETS (Schedule of
INTANGINBLE ASSETS (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 6,417 | $ 6,417 |
Accumulated Amortization | (858) | (536) |
Indefinite-lived intangible assets, water rights | 19,184 | 19,184 |
Produced Water Disposal Royalty Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,694 | 2,694 |
Accumulated Amortization | (360) | (225) |
Surface Damage And Easement Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,723 | 3,723 |
Accumulated Amortization | $ (498) | $ (311) |
DEBT (Narrative) (Details)
DEBT (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Apr. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||||
Credit facility | $ 0 | $ 29,817 | |||
Repayments of borrowings on credit facility | 29,817 | 0 | $ 10,500 | ||
Proceeds from borrowings on credit facility | 0 | 10,000 | 30,317 | ||
Letters of credit | 1,000 | 1,000 | |||
Line of credit, current borrowing capacity | 74,000 | ||||
Proceeds from loan | 0 | 10,000 | 0 | ||
Gain on extinguishment of debt | 10,113 | 0 | 0 | ||
Senior notes | 25,000 | ||||
Gross interest expense | 1,543 | 4,400 | 3,211 | ||
Repayments of long-term debt | 15,000 | 35,000 | 0 | ||
Interest paid | $ 875 | 2,467 | $ 2,733 | ||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread credit facility | 1.25% | ||||
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread credit facility | 2.00% | ||||
Series B Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 15,000 | ||||
Repayments of senior debt | $ 15,000 | ||||
Aggregate amount of debt repayment | 15,600 | ||||
Interest paid | 100 | ||||
Make whole payment | 500 | ||||
Paycheck Protection Program Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Proceeds from loan | $ 10,000 | ||||
Gain on extinguishment of debt | $ 10,100 |
DEBT (Sschedule of Long Term De
DEBT (Sschedule of Long Term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Notes and Payroll Protection Loan | $ 25,000 | |
Less current portion of notes | $ 0 | (10,000) |
Less deferred financing costs | (74) | |
Long-term portion of Notes, net | $ 0 | $ 14,926 |
DEBT (Schedule of Interest Expe
DEBT (Schedule of Interest Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |||
Interest expense on borrowings | $ 724 | $ 2,107 | $ 2,908 |
Make-whole payment | 505 | 1,868 | |
Amortization of deferred financing costs | 314 | 425 | 303 |
Gross interest expense | 1,543 | 4,400 | 3,211 |
Less capitalized interest | 75 | 111 | 180 |
Interest expense, net | $ 1,468 | $ 4,289 | $ 3,031 |
ASSET RETIREMENT OBLIGATION (Na
ASSET RETIREMENT OBLIGATION (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Asset retirement obligation payments expected to be made | $ 6.7 |
Period in which no significant payments related to asset retirement obligation are expected (in years) | 5 years |
Measurement Input, Risk Free Interest Rate [Member] | Minimum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Credit risk free rate | 0.069 |
Measurement Input, Risk Free Interest Rate [Member] | Maximum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Credit risk free rate | 0.097 |
ASSET RETIREMENT OBLIGATION (Sc
ASSET RETIREMENT OBLIGATION (Schedule of Changes to Asset Retirement Obligations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Changes to asset retirement obligations | |||
Asset retirement obligation, at beginning of period | $ 23,872 | $ 22,250 | $ 23,125 |
Liabilities settled | (116) | (38) | |
Liabilities incurred | 0 | 0 | 60 |
Changes in estimated obligations | 1,294 | 0 | (2,690) |
Accretion of discount | 1,858 | 1,738 | 1,793 |
Total asset retirement obligation, at end of period | $ 27,024 | $ 23,872 | $ 22,250 |
REVENUE (Contract Balances) (De
REVENUE (Contract Balances) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |||
Beginning balance | $ 30,419 | $ 16,612 | $ 11,678 |
Additions | 4,310 | 17,657 | 11,058 |
Recognized as revenue during period from the beginning balance | (941) | (3,850) | (6,124) |
Ending balance | $ 33,788 | $ 30,419 | $ 16,612 |
REVENUE (Disaggregation of Reve
REVENUE (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Potash [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 130,213 | $ 92,178 | $ 104,467 | |
Trio [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 91,125 | 65,344 | 64,299 | |
Water Product [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 21,999 | 20,398 | 25,657 | |
Salt [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 10,170 | 8,602 | 12,779 | |
Magnesium Chloride [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 7,847 | 4,855 | 4,907 | |
Brines [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,931 | 1,787 | 2,493 | |
Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 6,047 | 3,790 | 5,473 | |
Mineral [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | [1] | 270,332 | 196,954 | 220,075 |
Potash [Member] | Potash [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 130,460 | 92,500 | 103,403 | |
Potash [Member] | Trio [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | |
Potash [Member] | Water Product [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,050 | 1,253 | 1,823 | |
Potash [Member] | Salt [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 9,592 | 8,103 | 12,022 | |
Potash [Member] | Magnesium Chloride [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 7,847 | 4,855 | 4,907 | |
Potash [Member] | Brines [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,802 | 1,349 | 2,493 | |
Potash [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | |
Potash [Member] | Mineral [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 151,751 | 108,060 | 124,648 | |
Trio [Member] | Potash [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | |
Trio [Member] | Trio [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 91,125 | 65,344 | 64,299 | |
Trio [Member] | Water Product [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,355 | 4,444 | 4,495 | |
Trio [Member] | Salt [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 578 | 499 | 757 | |
Trio [Member] | Magnesium Chloride [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | |
Trio [Member] | Brines [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | |
Trio [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | |
Trio [Member] | Mineral [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 96,058 | 70,287 | 69,551 | |
Oil Field Solutions [Member] | Potash [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 2,973 | |
Oil Field Solutions [Member] | Trio [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | |
Oil Field Solutions [Member] | Water Product [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 15,594 | 14,701 | 19,339 | |
Oil Field Solutions [Member] | Salt [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | |
Oil Field Solutions [Member] | Magnesium Chloride [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | |
Oil Field Solutions [Member] | Brines [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,129 | 438 | 0 | |
Oil Field Solutions [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 6,047 | 3,790 | 5,582 | |
Oil Field Solutions [Member] | Mineral [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 22,770 | 18,929 | 27,894 | |
Intersegment Eliminations [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | (247) | (322) | (2,018) | |
Intersegment Eliminations [Member] | Potash [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | (247) | (322) | (1,909) | |
Intersegment Eliminations [Member] | Trio [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | |
Intersegment Eliminations [Member] | Water Product [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | |
Intersegment Eliminations [Member] | Salt [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | |
Intersegment Eliminations [Member] | Magnesium Chloride [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | |
Intersegment Eliminations [Member] | Brines [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | |
Intersegment Eliminations [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 0 | $ 0 | $ (109) | |
[1] | Segment sales include the sales of byproducts generated during the production of potash and Trio ® . |
COMPENSATION PLANS (Narrative)
COMPENSATION PLANS (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock available for issuance | 600,000 | ||
Total compensation expense | $ 3 | $ 3.8 | $ 4.3 |
Total unrecognized compensation expense | $ 6.7 | ||
Unrecognized compensation expense, period for recognition | 1 year 6 months | ||
Restricted Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards, outstanding | 407,597 | 362,399 | |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise in the period | 8,651 | ||
Awards, outstanding | 283,924 | 296,046 | |
Service Based Vesting [Member] | Restricted Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 96,349 | ||
Restricted Stock [Abstract] | |||
Granted in period, weighted average fair value | $ 37.49 | $ 14.49 | $ 34.70 |
Shares canceled | 24,287 | ||
Service Based Vesting [Member] | Key Employees [Member] | Restricted Shares [Member] | |||
Restricted Stock [Abstract] | |||
Restricted shares granted | 76,869 | ||
Vesting period | 3 years | ||
Service Based Vesting [Member] | Director [Member] | Restricted Shares [Member] | |||
Restricted Stock [Abstract] | |||
Restricted shares granted | 19,480 | ||
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] | |||
Shares granted | 89,226 | ||
Restricted Stock [Abstract] | |||
Vesting period | 3 years | 2 years | 3 years |
Granted in period, weighted average fair value | $ 23.76 | $ 19.22 | $ 28.90 |
Shares canceled | 3,869 | ||
Vesting stock price consecutive trading days | 20 days | 20 days | |
Service And Market Condition Based Vesting [Member] | Executive Officer [Member] | Restricted Shares [Member] | |||
Restricted Stock [Abstract] | |||
Vesting period | 2 years | ||
Vesting stock price consecutive trading days | 20 days |
COMPENSATION PLANS (Schedule of
COMPENSATION PLANS (Schedule of Fair Value Assumptions) (Details) - Service And Market Condition Based Vesting [Member] - Restricted Shares [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Closing stock price on grant date | $ 42.03 | $ 13.80 | $ 33.10 |
Risk free interest rate | 1.10% | 0.60% | 2.20% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 89.00% | 83.90% | 84.50% |
Expected life | 5 years 6 months | 6 years | 4 years 9 months 18 days |
COMPENSATION PLANS (Schedule _2
COMPENSATION PLANS (Schedule of Restricted Shares) (Details) - Restricted Shares [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted common stock, at beginning of period (in shares) | 362,399 | ||
Restricted common stock, at beginning of period (in dollars per share) | $ 19.06 | ||
Restricted common stock, at end of period (in shares) | 407,597 | 362,399 | |
Restricted common stock, at end of period (in dollars per share) | $ 24.95 | $ 19.06 | |
Service Based Vesting [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 96,349 | ||
Granted (in dollars per share) | $ 37.49 | 14.49 | $ 34.70 |
Vested (in shares) | (112,221) | ||
Vested (in dollars per share) | $ 16.63 | ||
Forfeited (in shares) | (24,287) | ||
Forfeited (in dollars per share) | $ 21.18 | ||
Service And Market Condition Based Vesting [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 89,226 | ||
Granted (in dollars per share) | $ 23.76 | $ 19.22 | $ 28.90 |
Forfeited (in shares) | (3,869) | ||
Forfeited (in dollars per share) | $ 23.38 |
COMPENSATION PLANS (Summary of
COMPENSATION PLANS (Summary of Stock Option Activity) (Details) - Stock Options [Member] | 12 Months Ended | |
Dec. 31, 2021USD ($)$ / sharesshares | ||
Stock option activity, number of shares | ||
Outstanding non-qualified stock options, at beginning of period (in shares) | shares | 296,046 | |
Granted (in shares) | shares | 0 | |
Exercised (in shares) | shares | (8,651) | |
Forfeited (in shares) | shares | 0 | |
Expired (in Shares) | shares | (3,471) | |
Outstanding non-qualified stock options, at end of period (in shares) | shares | 283,924 | |
Vested or expected to vest, end of period (in shares) | shares | 283,924 | |
Exercisable non-qualified stock options, at end of period (in shares) | shares | 190,433 | |
Stock Options, Weighted Average Exercise Price | ||
Outstanding non-qualified stock options, at beginning of period (in dollars per share) | $ / shares | $ 31.66 | |
Granted (in dollars per share) | $ / shares | 0 | |
Exercised (in dollars per share) | $ / shares | 10.30 | |
Forfeited (in dollars per share) | $ / shares | 0 | |
Expired (in dollars per share) | $ / shares | 356.90 | |
Outstanding non-qualified stock options, at end of period (in dollars per share) | $ / shares | 28.33 | |
Vested or expected to vest, weighted average exercise price end of period (in dollars per share) | $ / shares | 28.33 | |
Exercisable non-qualified stock options, at end of period (in dollars per share) | $ / shares | $ 23.09 | |
Outstanding non-qualified stock options, aggregate intrinsic value at end of period (in dollars per share) | $ | $ 4,088,429 | [1] |
Vested or expected to vest, aggregate intrinsic value at end of period (in dollars per share) | $ | 4,088,429 | [1] |
Exercisable non-qualified stock options, aggregate intrinsic value at end of period (in dollars per share) | $ | $ 3,739,708 | [1] |
Outstanding non-qualified stock options, weighted average contractual life | 5 years 7 months 6 days | |
Vested or expected to vest, end of period, weighted average contractual life | 5 years 7 months 6 days | |
Exercisable non-qualified stock options, aggregate intrinsic value at end of period, weighted average contractual life | 5 years 4 months 24 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 | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory income tax rate, percentage | 21.00% | ||
Deferred tax assets, gross | $ 211,108 | $ 217,943 | |
Deferred tax assets, operating loss carry forwards, federal | 215,000 | ||
Deferred tax assets, 0perating loss carry forwards, state | 279,300 | ||
Deferred tax assets, federal research and development credits | 1,870 | 1,870 | |
Change in valuation allowance | (215,910) | 6,320 | $ (6,754) |
Deferred tax assets, valuation allowance | 2,033 | 217,943 | |
Deferred tax assets, net | $ 209,075 | $ 0 |
INCOME TAXES (Components of Inc
INCOME TAXES (Components of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current portion of income tax expense (benefit): | |||
Federal | $ 0 | $ (42) | $ 0 |
State | 206 | 47 | 53 |
Deferred portion of income tax expense: | |||
Federal | (157,348) | 0 | 0 |
State | (51,727) | 0 | 0 |
Net (benefit) expense as calculated | $ (208,869) | $ 5 | $ 53 |
INCOME TAXES (Reconciliation of
INCOME TAXES (Reconciliation of Statutory Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal taxes at statutory rate | $ 8,603 | $ (5,701) | $ 2,874 |
State taxes, net of federal benefit | 1,278 | (1,316) | 1,245 |
Change in valuation allowance | (215,910) | 6,320 | (6,754) |
PPP loan forgiveness | (2,115) | 0 | 0 |
Change in federal and state tax rate | 138 | 3 | 2,322 |
Percentage depletion | (463) | 0 | (600) |
Other | (400) | 699 | 966 |
Net (benefit) expense as calculated | $ (208,869) | $ 5 | $ 53 |
Effective tax rate | (509.90%) | 0.00% | 0.40% |
INCOME TAXES (Deferred Tax Asse
INCOME TAXES (Deferred Tax Assets Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets (liabilities): | ||
Property, plant, equipment and mineral properties, net | $ 131,496 | $ 133,720 |
Federal and state net operating loss carryforwards | 59,331 | 66,316 |
Asset retirement obligation | 6,900 | 6,070 |
Deferred revenue | 8,628 | 7,651 |
Other | 2,883 | 2,316 |
Federal R&D credits | 1,870 | 1,870 |
Total Deferred Tax Assets | 211,108 | 217,943 |
Valuation allowance | (2,033) | (217,943) |
Deferred tax asset, net | $ 209,075 | $ 0 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Aug. 31, 2021acre ft | Mar. 31, 2021USD ($) | May 31, 2020USD ($) | Feb. 28, 2019acre ft | Dec. 31, 2018acre ft | Dec. 31, 2017acre ft | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Loss Contingencies [Line Items] | |||||||||
Payments for legal settlements | $ 10,000 | ||||||||
Reclamation Deposits and Surety Bonds | $ 23,000 | $ 22,300 | |||||||
Surety bonds issued by an insurer | 22,500 | 21,800 | |||||||
Reclamation Deposits and Surety Bonds | |||||||||
Security placed with the State of Utah and the BLM | 23,000 | 22,300 | |||||||
Long-term restricted cash deposits | 519 | 519 | $ 486 | ||||||
Surety bonds issued by an insurer | 22,500 | $ 21,800 | |||||||
Protestants Expedited Inter Se Proceeding [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Water rights, volume disputed | acre ft | 20,000 | ||||||||
Preliminary authorization of annual allowable water sales, volume | acre ft | 5,700 | 5,700 | |||||||
Annual water volume that had not been forfeited | acre ft | 5,800 | ||||||||
Annual water volume that had not been abandoned | acre ft | 150 | ||||||||
Water Rights | |||||||||
Loss Contingencies [Line Items] | |||||||||
Quarterly installment received from customer | $ 3,900 | ||||||||
Outstanding contract liability that might have to be repaid | $ 32,500 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) $ in Millions | Dec. 31, 2021USD ($) |
Fair Value Disclosures [Abstract] | |
Estimated fair value of outstanding notes | $ 15 |
Significant Unobservable Inputs (Level 3) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Other assets, fair value disclosure | $ 3.5 |
EMPLOYEE BENEFITS (Details)
EMPLOYEE BENEFITS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution, percent of employees' gross pay | 5.00% | ||
Contributions to 401K Plan | $ 1,633 | $ 1,569 | $ 1,522 |
BUSINESS SEGMENTS (Narrative) (
BUSINESS SEGMENTS (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2021Reporting_Segments | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
BUSINESS SEGMENTS (Information
BUSINESS SEGMENTS (Information by Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Segment Reporting Information [Line Items] | ||||
Lower of cost or NRV | $ 0 | $ 4,015 | $ 1,810 | |
Gross Margin (Deficit) | 55,764 | 10,530 | 43,478 | |
Depreciation, depletion and amortization incurred | [1] | 35,957 | 36,110 | 34,335 |
Costs associated with abnormal production | 5,973 | |||
Operating Segments [Member] | Potash [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Lower of cost or NRV | 1,130 | 0 | ||
Gross Margin (Deficit) | 35,845 | 11,551 | 27,787 | |
Depreciation, depletion and amortization incurred | [1] | 26,828 | 26,536 | 25,796 |
Operating Segments [Member] | Trio [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Lower of cost or NRV | 2,885 | 1,810 | ||
Gross Margin (Deficit) | 16,442 | (8,505) | 1,100 | |
Depreciation, depletion and amortization incurred | [1] | 5,477 | 6,068 | 6,163 |
Operating Segments [Member] | Oil Field Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Lower of cost or NRV | 0 | 0 | ||
Gross Margin (Deficit) | 3,477 | 7,484 | 14,591 | |
Depreciation, depletion and amortization incurred | [1] | 2,996 | 2,663 | 1,566 |
Corporate/Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Lower of cost or NRV | 0 | 0 | ||
Gross Margin (Deficit) | 0 | 0 | ||
Depreciation, depletion and amortization incurred | [1] | 656 | 843 | 810 |
Freight costs [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Cost of goods sold | 37,892 | 37,135 | 40,056 | |
Freight costs [Member] | Operating Segments [Member] | Potash [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Cost of goods sold | 17,483 | 17,026 | 18,715 | |
Freight costs [Member] | Operating Segments [Member] | Trio [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Cost of goods sold | 20,656 | 20,431 | 20,514 | |
Freight costs [Member] | Operating Segments [Member] | Oil Field Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Cost of goods sold | 0 | 0 | 936 | |
Freight costs [Member] | Corporate/Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Cost of goods sold | (247) | (322) | (109) | |
Warehouse and handling costs [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Cost of goods sold | 9,282 | 9,431 | 8,621 | |
Warehouse and handling costs [Member] | Operating Segments [Member] | Potash [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Cost of goods sold | 5,169 | 4,857 | 4,745 | |
Warehouse and handling costs [Member] | Operating Segments [Member] | Trio [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Cost of goods sold | 4,113 | 4,574 | 3,876 | |
Warehouse and handling costs [Member] | Operating Segments [Member] | Oil Field Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Cost of goods sold | 0 | 0 | 0 | |
Warehouse and handling costs [Member] | Corporate/Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Cost of goods sold | 0 | 0 | 0 | |
Mineral [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | [2] | 270,332 | 196,954 | 220,075 |
Cost of goods sold | 161,421 | 135,843 | 126,110 | |
Mineral [Member] | Potash [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 151,751 | 108,060 | 124,648 | |
Mineral [Member] | Trio [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 96,058 | 70,287 | 69,551 | |
Mineral [Member] | Oil Field Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 22,770 | 18,929 | 27,894 | |
Mineral [Member] | Operating Segments [Member] | Potash [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | [2] | 151,751 | 108,060 | 124,648 |
Cost of goods sold | 87,281 | 73,496 | 73,401 | |
Costs associated with abnormal production | 5,973 | |||
Mineral [Member] | Operating Segments [Member] | Trio [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | [2] | 96,058 | 70,287 | 69,551 |
Cost of goods sold | 54,847 | 50,902 | 42,251 | |
Costs associated with abnormal production | 0 | |||
Mineral [Member] | Operating Segments [Member] | Oil Field Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | [2] | 22,770 | 18,929 | 27,894 |
Cost of goods sold | 19,293 | 11,445 | 12,367 | |
Costs associated with abnormal production | 0 | |||
Mineral [Member] | Corporate/Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | [2] | (247) | (322) | (2,018) |
Cost of goods sold | 0 | $ 0 | $ (1,909) | |
Costs associated with abnormal production | $ 0 | |||
[1] | Depreciation, depletion, and amortization incurred for potash and Trio ® excludes depreciation, depletion, and amortization absorbed in or (relieved from) inventory. | |||
[2] | Segment sales include the sales of byproducts generated during the production of potash and Trio ® . |
CONCENTRATION OF CREDIT RISK (N
CONCENTRATION OF CREDIT RISK (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($)markets | Dec. 31, 2020 | Dec. 31, 2019 | |
Concentration Risk [Line Items] | |||
FDIC insured amount | $ | $ 250,000 | ||
Number of primary markets (in markets) | markets | 3 | ||
UNITED STATES | Revenue Benchmark [Member] | Customers located in the United States | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 97.00% | 97.00% | 94.00% |
FINANCIAL INFORMATION FOR SUB_2
FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS OF POSSIBLE FUTURE PUBLIC DEBT (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Cash on hand | $ 36,452 | $ 19,515 | $ 20,603 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) $ in Millions | Mar. 04, 2022USD ($) |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Stock repurchase program, authorized amount | $ 35 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation allowance, at beginning of year | $ 219,548 | $ 212,719 | $ 220,585 |
Charged to costs and expenses | 2,108 | 7,087 | 75 |
Deductions | (215,910) | (258) | (7,941) |
Valuation allowance, at end of year | 5,746 | 219,548 | 212,719 |
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation allowance, at beginning of year | 217,943 | 211,623 | 218,377 |
Charged to costs and expenses | 0 | 6,320 | 0 |
Deductions | (215,910) | 0 | (6,754) |
Valuation allowance, at end of year | 2,033 | 217,943 | 211,623 |
SEC Schedule, 12-09, Reserve For Parts Inventory Obsolescence [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation allowance, at beginning of year | 1,050 | 616 | 1,743 |
Charged to costs and expenses | 2,108 | 492 | 0 |
Deductions | 0 | (58) | (1,127) |
Valuation allowance, at end of year | 3,158 | 1,050 | 616 |
SEC Schedule, 12-09, Allowance For Doubtful Accounts And Other Receivables [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation allowance, at beginning of year | 555 | 480 | 465 |
Charged to costs and expenses | 0 | 275 | 75 |
Deductions | 0 | (200) | (60) |
Valuation allowance, at end of year | $ 555 | $ 555 | $ 480 |