Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2012 | Feb. 28, 2013 | Jun. 30, 2012 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Molycorp, Inc. | ||
Entity Central Index Key | 1489137 | ||
Document Type | 10-K/A | ||
Document Period End Date | 31-Dec-12 | ||
Amendment Flag | TRUE | ||
Current Fiscal Year End Date | -19 | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 188,581,613 | ||
Document Fiscal Year Focus | 2012 | ||
Document Fiscal Period Focus | FY | ||
Amendment Description | In light of a material weakness that resulted in a restatement of our unaudited condensed consolidated financial statements for the three months ended March 31, 2013, we re-evaluated our conclusion regarding the effectiveness of our internal control over financial reporting as of December 31, 2012. | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $1,504,675,694 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $227,790 | $418,855 |
Trade accounts receivable, net (Note 2) | 52,430 | 70,679 |
Inventory (Note 5) | 287,376 | 111,943 |
Deferred charges (Note 15) | 9,412 | 7,318 |
Deferred tax assets (Note 15) | 9,789 | 0 |
Income tax receivable | 25,087 | 10,514 |
Prepaid expenses and other current assets | 21,794 | 19,735 |
Total current assets | 633,678 | 639,044 |
Non-current assets: | ||
Deposits (Note 6) | 26,769 | 23,286 |
Property, plant and equipment, net (Note 7) | 1,544,304 | 561,628 |
Inventory (Note 5) | 26,096 | 4,362 |
Intangible assets, net (Note 9) | 450,938 | 3,072 |
Investments | 64,036 | 20,000 |
Goodwill (Note 9) | 239,742 | 3,432 |
Other non-current assets | 6,972 | 301 |
Total non-current assets | 2,358,857 | 616,081 |
Total assets | 2,992,535 | 1,255,125 |
Current liabilities: | ||
Trade accounts payable | 241,994 | 161,587 |
Accrued expenses (Note 12) | 59,013 | 12,898 |
Income tax payable | 15,267 | 0 |
Deferred tax liabilities (Note 15) | 0 | 1,356 |
Debt and capital lease obligations (Note 14) | 39,604 | 1,516 |
Other current liabilities | 3,539 | 1,266 |
Total current liabilities | 359,417 | 178,623 |
Non-current liabilities: | ||
Asset retirement obligation (Note 13) | 18,586 | 15,145 |
Deferred tax liabilities (Note 15) | 160,675 | 18,899 |
Debt and capital lease obligations (Note 14) | 1,188,832 | 196,545 |
Derivative liability (Note 25) | 7,816 | 0 |
Pension liabilities (Note 26) | 3,292 | 0 |
Other non-current liabilities | 2,659 | 683 |
Total non-current liabilities | 1,381,860 | 231,272 |
Total liabilities | 1,741,277 | 409,895 |
Commitments and contingencies (Note 19) | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value; 350,000,000 shares authorized at December 31, 2012 (Note 16) | 139 | 84 |
Preferred stock, $0.001 par value; 5,000,000 shares authorized at December 31, 2012 (Note 16) | 2 | 2 |
Additional paid-in capital | 1,691,429 | 838,547 |
Accumulated other comprehensive loss | -9,433 | -8,481 |
(Deficit) retained earnings | -466,091 | 15,078 |
Total Molycorp stockholders’ equity | 1,216,046 | 845,230 |
Noncontrolling interests | 35,212 | 0 |
Total stockholders’ equity | 1,251,258 | 845,230 |
Total liabilities and stockholders’ equity | $2,992,535 | $1,255,125 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2012 |
Statement of Financial Position [Abstract] | |
Common stock, par value | $0.00 |
Common stock, authorized | 350,000,000 |
Preferred stock, par value | $0.00 |
Preferred stock, authorized | 5,000,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Comprehensive Income (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | ||||||||
Income Statement [Abstract] | |||||||||||||||||||
Revenues | $134,259 | $205,604 | $104,577 | $84,470 | $132,905 | $138,050 | $99,615 | $26,261 | $528,910 | $396,831 | $35,157 | ||||||||
Costs of sales: | |||||||||||||||||||
Costs excluding depreciation and amortization | -480,655 | -164,351 | -28,797 | ||||||||||||||||
Depreciation and amortization | -30,910 | -13,539 | -5,694 | ||||||||||||||||
Gross profit | -20,473 | 10,864 | -4,073 | 31,027 | 70,272 | 82,392 | 56,692 | 9,584 | 17,345 | 218,941 | 666 | ||||||||
Operating expenses: | |||||||||||||||||||
Selling, general and administrative | -113,669 | -50,757 | -45,175 | ||||||||||||||||
Corporate development | -19,796 | -5,912 | 0 | ||||||||||||||||
Depreciation, amortization and accretion | -22,215 | -1,688 | -1,231 | ||||||||||||||||
Research and development | -27,796 | -7,718 | -2,338 | ||||||||||||||||
Impairment of goodwill and other long-lived assets | -301,755 | 0 | -3,100 | ||||||||||||||||
Operating (loss) income | -467,886 | 152,866 | -51,178 | ||||||||||||||||
Other (expense) income: | |||||||||||||||||||
Other (expense) income | -38,798 | -153 | 155 | ||||||||||||||||
Foreign exchange gain (loss), net | 2,872 | -5,415 | 0 | ||||||||||||||||
Interest (expense) income, net of capitalized interest | -22,116 | -388 | 249 | ||||||||||||||||
Total other expense | -58,042 | -5,956 | 404 | ||||||||||||||||
(Loss) income before income taxes and equity earnings | -382,779 | -43,745 | -93,970 | -5,434 | 42,607 | 64,157 | 42,143 | -1,999 | -525,928 | 146,910 | -50,774 | ||||||||
Income tax benefit (expense) | 54,075 | -28,576 | 0 | ||||||||||||||||
Equity in results of affiliates | -3,490 | 0 | 0 | ||||||||||||||||
Net (loss) income | -389,490 | -15,451 | -66,924 | -3,478 | 26,674 | 45,101 | 48,755 | -2,198 | -475,343 | 118,334 | -50,774 | ||||||||
Net income attributable to noncontrolling interest | -5,826 | -808 | 0 | ||||||||||||||||
Net (loss) income attributable to Molycorp stockholders | -391,196 | -18,891 | -67,604 | -3,478 | 26,579 | 45,356 | 47,787 | -2,198 | -481,169 | 117,526 | -50,774 | ||||||||
Other comprehensive income: | |||||||||||||||||||
Foreign currency translation adjustments | -952 | -8,481 | 0 | ||||||||||||||||
Comprehensive (loss) income | -476,295 | 109,853 | -50,774 | ||||||||||||||||
Comprehensive (loss) income attributable to: | |||||||||||||||||||
Molycorp stockholders | -470,469 | 109,468 | -50,774 | ||||||||||||||||
Noncontrolling interest | -5,826 | 385 | 0 | ||||||||||||||||
Comprehensive (loss) income | ($476,295) | $109,853 | ($50,774) | ||||||||||||||||
(Loss) income per share of common stock (Note 17): | |||||||||||||||||||
Basic (in dollars per share) | ($3.16) | [1] | ($0.19) | [1] | ($0.71) | [1] | ($0.07) | [1] | $0.27 | [1] | $0.51 | [1] | $0.54 | [1] | ($0.04) | [1] | ($4.60) | $1.29 | ($0.81) |
Diluted (in dollars per share) | ($3.16) | [1] | ($0.19) | [1] | ($0.71) | [1] | ($0.07) | [1] | $0.26 | [1] | $0.49 | [1] | $0.53 | [1] | ($0.04) | [1] | ($4.60) | $1.27 | ($0.81) |
[1] | The sum of the quarterly income (loss) per share may be different than the per share amount for the year as the calculation for each quarter is based on the weighted average shares outstanding for that period. |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Stockholders' Equity (USD $) | Total | Class A Common Stock | Total Molycorp Stockholders' Equity | Common Stock | Series A Mandatory Convertible Preferred Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Non controlling interests | Molymet | Molymet | Molymet | Molymet | Molycorp Canada | Molycorp Canada | Molycorp Canada | Molycorp Canada | Molycorp Silmet | Molycorp Silmet | Molycorp Silmet | Molycorp Silmet | Molycorp Silmet |
In Thousands, except Share data, unless otherwise specified | Total Molycorp Stockholders' Equity | Common Stock | Additional Paid-In Capital | Total Molycorp Stockholders' Equity | Common Stock | Additional Paid-In Capital | Non controlling interests | Total Molycorp Stockholders' Equity | Common Stock | Additional Paid-In Capital | Non controlling interests | |||||||||||
Balance at the beginning of period at Dec. 31, 2009 | $74,615 | $45 | $74,615 | $0 | $117,231 | ($42,661) | $0 | |||||||||||||||
Balance at the beginning of the period (in shares) at Dec. 31, 2009 | 44,998,185 | 0 | ||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||||||||
Issuance of shares | 15,000 | 6 | 15,000 | 14,994 | ||||||||||||||||||
Issuance of shares (in shares) | 5,767,670 | |||||||||||||||||||||
Exercise of employee options | 300 | 0 | 300 | 300 | ||||||||||||||||||
Exercise of employee options (in shares) | 126,405 | |||||||||||||||||||||
Issuance of shares for conversion of convertible securities, value | -51 | 51 | ||||||||||||||||||||
Issuance of shares for conversion of convertible securities, shares | -50,892,260 | 50,892,260 | ||||||||||||||||||||
Sale of shares of common stock at $14.00 per share in initial public offering on August 3, 2010, net of underwriting fees and other offering costs of $29.2 million | 378,633 | 378,633 | 29 | 378,604 | ||||||||||||||||||
Sale of shares of common stock at $14.00 per share in initial public offering on August 3, 2010, net of underwriting fees and other offering costs of $29.2 million (in shares) | 29,128,700 | |||||||||||||||||||||
Conversion of Class B common stock to common stock in conjunction with the initial public offering on August 3, 2010 | 28,663 | 28,663 | 2 | 28,661 | ||||||||||||||||||
Conversion of Class B common stock to common stock in conjunction with the initial public offering on August 3, 2010 (in shares) | 2,232,740 | |||||||||||||||||||||
Stock-based compensation | 76 | 76 | 0 | 76 | ||||||||||||||||||
Stock-based compensation (in shares) | 37,500 | |||||||||||||||||||||
Net (loss) income | -50,774 | -50,774 | -50,774 | |||||||||||||||||||
Balance at the end of the period at Dec. 31, 2010 | 446,513 | 446,513 | 82 | 0 | 539,866 | 0 | -93,435 | 0 | ||||||||||||||
Balance at the end of the period (in shares) at Dec. 31, 2010 | 82,291,200 | 0 | ||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||||||||
Sale of Series A mandatory convertible preferred stock at $100.00 per share, net of underwriting fees and other offering costs | 199,642 | 199,642 | 2 | 199,640 | ||||||||||||||||||
Sale of Series A mandatory convertible preferred stock, net of underwriting fees and other offering costs (in shares) | 2,070,000 | |||||||||||||||||||||
Stock-based compensation | 4,671 | 4,671 | 0 | 4,671 | ||||||||||||||||||
Stock-based compensation (in shares) | 11,424 | |||||||||||||||||||||
Issuance of shares for interest in subsidiary | 81,475 | 72,655 | 2 | 72,653 | 8,820 | |||||||||||||||||
Issuance of shares for interest in subsidiary, (in shares) | 1,593,419 | |||||||||||||||||||||
Component of convertible debt (Note 14) | 36,227 | 36,227 | 36,227 | |||||||||||||||||||
Deferred taxes on component of convertible debt | -14,138 | -14,138 | -14,138 | |||||||||||||||||||
Net (loss) income | 118,334 | 117,526 | 117,526 | 808 | ||||||||||||||||||
Preferred dividends | -9,013 | -9,013 | -9,013 | |||||||||||||||||||
Other comprehensive loss | -8,481 | -8,058 | -8,058 | -423 | ||||||||||||||||||
Acquisition of noncontrolling interests | -10,000 | -795 | -372 | -423 | -9,205 | |||||||||||||||||
Balance at the end of the period at Dec. 31, 2011 | 845,230 | 845,230 | 84 | 2 | 838,547 | -8,481 | 15,078 | 0 | ||||||||||||||
Balance at the end of the period (in shares) at Dec. 31, 2011 | 83,896,043 | 2,070,000 | ||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||||||||
Issuance of shares | 132,130 | 132,130 | 14 | 132,116 | 390,093 | 390,093 | 12 | 390,081 | ||||||||||||||
Issuance of shares (in shares) | 13,800,000 | 12,500,000 | ||||||||||||||||||||
Issuance of shares for conversion of convertible securities, value | 1,421 | 1,421 | 1,421 | |||||||||||||||||||
Issuance of shares for conversion of convertible securities, shares | 99,723 | |||||||||||||||||||||
Stock-based compensation | 3,434 | 3,434 | 0 | 3,434 | ||||||||||||||||||
Stock-based compensation (in shares) | 3,740 | |||||||||||||||||||||
Issuance of shares for interest in subsidiary | 334,887 | 284,144 | 14 | 284,130 | 50,743 | |||||||||||||||||
Issuance of shares for interest in subsidiary, (in shares) | 13,885,622 | |||||||||||||||||||||
Issuance of shares for acquisition of exploration rights (Note 8) | 8,000 | 8,000 | 1 | 7,999 | ||||||||||||||||||
Issuance of shares for investment in mining properties (Note 16) (in shares) | 788,410 | |||||||||||||||||||||
Component of convertible debt (Note 14) | 71,801 | 71,801 | 71,801 | |||||||||||||||||||
Deferred taxes on component of convertible debt | -27,106 | -27,106 | -27,106 | |||||||||||||||||||
Issuance of Borrowed Shares (Note 16) | 25 | 25 | 14 | 11 | ||||||||||||||||||
Issuance of Borrowed Shares (Note 16) (in shares) | 13,800,000 | |||||||||||||||||||||
Net (loss) income | -475,343 | -481,169 | -481,169 | 5,826 | ||||||||||||||||||
Preferred dividends | -11,385 | -11,385 | -11,385 | |||||||||||||||||||
Distribution to noncontrolling interests | -5,977 | 0 | -5,977 | |||||||||||||||||||
Other comprehensive loss | -952 | -952 | -952 | |||||||||||||||||||
Acquisition of noncontrolling interests | -15,000 | 380 | 380 | -15,380 | ||||||||||||||||||
Balance at the end of the period at Dec. 31, 2012 | $1,251,258 | $1,216,046 | $139 | $2 | $1,691,429 | ($9,433) | ($466,091) | $35,212 | ||||||||||||||
Balance at the end of the period (in shares) at Dec. 31, 2012 | 138,773,538 | 2,070,000 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (Parenthetical) (USD $) | Aug. 31, 2010 | Dec. 31, 2011 |
In Millions, except Per Share data, unless otherwise specified | Common Stock | Series A Mandatory Convertible Preferred Stock |
Price per share of stock sold (in dollars per share) | $14 | $100 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Cash flows from operating activities: | |||
Net (loss) income | ($475,343) | $118,334 | ($50,774) |
Adjustments to reconcile net (loss) income to net cash from operating activities: | |||
Depreciation, amortization and accretion | 53,125 | 15,227 | 6,927 |
Deferred income tax benefit | -23,563 | 2,924 | 0 |
Inventory write-downs | 83,039 | 3,776 | 3,473 |
Release of inventory step-up value | 24,729 | 10,200 | 0 |
Impairment of goodwill | 289,894 | 0 | 0 |
Impairment of other long-lived assets | 11,862 | 0 | 0 |
Stock-based compensation expense | 3,434 | 4,671 | 28,739 |
Amortization of debt discount | 2,544 | 674 | 0 |
Allowance for doubtful accounts | 2,556 | 0 | 0 |
Foreign exchange loss | 1,988 | 5,415 | 0 |
Other operating adjustments | -4,020 | 1,933 | 3,055 |
Net change in operating assets and liabilities (Note 22) | -59,880 | -120,189 | -20,137 |
Net cash (used in) provided by operating activities | -89,635 | 42,965 | -28,717 |
Cash flows from investing activities: | |||
Cash paid in connection with acquisitions, net of cash acquired | -591,011 | -30,023 | 0 |
Investment in joint ventures | -33,044 | 0 | 0 |
Deposits | -3,999 | 2,897 | -26,200 |
Cash paid to acquire non-marketable securities | 0 | -20,000 | 0 |
Capital expenditures | -791,469 | -302,180 | -33,129 |
Acquisition of exploration rights | -8,167 | 0 | 0 |
Other investing activities | 4,761 | -84 | -102 |
Net cash used in investing activities | -1,422,929 | -349,390 | -59,431 |
Cash flows from financing activities: | |||
Capital contributions | 390,093 | 0 | 15,000 |
Repayments of short-term borrowings—related party | 0 | -3,150 | -1,107 |
Repayments of debt | -228,708 | -4,428 | 0 |
Net proceeds from sale of preferred stock | 0 | 199,642 | 0 |
Net proceeds from sale of common stock | 132,130 | 0 | 378,633 |
Issuance of 10% Senior Secured Notes | 635,373 | 0 | 0 |
Issuance of Convertible Notes | 395,712 | 223,100 | |
Payments of preferred dividends | -11,385 | -9,015 | 0 |
Dividend paid to noncontrolling interests | -5,977 | 0 | 0 |
Proceeds from debt | 14,699 | 5,131 | 0 |
Proceeds from short-term borrowings—related party | 0 | 0 | 5,008 |
Other financing activities | -1,554 | 0 | 115 |
Net cash provided by financing activities | 1,320,383 | 411,280 | 397,649 |
Effect of exchange rate changes on cash | 1,116 | -2,430 | 0 |
Net change in cash and cash equivalents | -191,065 | 102,425 | 309,501 |
Cash and cash equivalents at beginning of the period | 418,855 | 316,430 | 6,929 |
Cash and cash equivalents at end of period | 227,790 | 418,855 | 316,430 |
6.00% Convertible Notes | Convertible Debt | |||
Adjustments to reconcile net (loss) income to net cash from operating activities: | |||
Amortization of debt discount | 5,300 | ||
Cash flows from financing activities: | |||
Issuance of Convertible Notes | 395,712 | 0 | 0 |
3.25% Convertible Notes | Convertible Debt | |||
Adjustments to reconcile net (loss) income to net cash from operating activities: | |||
Amortization of debt discount | 7,800 | 3,700 | |
Cash flows from financing activities: | |||
Issuance of Convertible Notes | $0 | $223,100 | $0 |
Company_Background
Company Background | 12 Months Ended |
Dec. 31, 2012 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company Background | Company Background |
Molycorp, Inc. (“Molycorp” or the “Company”) is one of the world's leading global rare earth companies, and the only one that operates a vertically integrated, global supply chain that combines a world-class rare earth resource with manufacturing facilities on three continents that can produce a wide variety of custom engineered, advanced rare earth materials from all of the lanthanide elements, plus yttrium. | |
The Company's vertically integrated, global manufacturing supply chain is comprised of a workforce of approximately 2,700 scientists, engineers, chemists, technologists, and highly skilled workers in 27 locations across 11 countries. Molycorp's vertical integration allows it to operate multiple product supply chains, serves as a highly reliable supplier of advanced rare earth and rare metal materials, and provides price visibility to customers worldwide. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||
Dec. 31, 2012 | ||||||||||
Accounting Policies [Abstract] | ||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies | |||||||||
Use of Estimates | ||||||||||
The preparation of the Company's consolidated financial statements, in accordance with generally accepted accounting principles in the United States of America (“GAAP”), requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases its estimates on the Company’s historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ significantly from these estimates under different assumptions and conditions. | ||||||||||
Significant estimates made by management in the accompanying financial statements include: the collectability of accounts receivable; the recoverability of inventory; the useful lives and recoverability of long-lived assets such as property, plant and equipment, capital leases, intangible assets, including goodwill, and investments; determination of uncertain tax positions; the fair values of assets acquired and liabilities assumed from business combinations; and the adequacy of the asset retirement obligation. | ||||||||||
Basis of Presentation | ||||||||||
The consolidated financial statements include the accounts of Molycorp and its majority-owned subsidiaries where it exerts control. Investments in which Molycorp does not have control and is not considered to be the primary beneficiary of a variable interest entity, but it exercises significant influence over the operating and financial policies of the investee, are accounted for using the equity method of accounting. All other investments are accounted for using the cost method of accounting. All intercompany balances and transactions are eliminated in consolidation. | ||||||||||
Certain prior period amounts have been reclassified to conform to the current period presentation. Such reclassifications did not affect results of operations. | ||||||||||
Revenues and Costs of Sales | ||||||||||
Revenues are recognized when persuasive evidence of an arrangement exists, the risks and rewards of ownership have been transferred to the customer, which is generally when title passes, the selling price is fixed or determinable, and collection is reasonably assured. Title generally passes upon shipment of product from the Company’s production facilities. Prices are generally set at the time of, or prior to, shipment. Transportation and distribution costs are incurred only on sales for which the Company is responsible for delivering the product. | ||||||||||
Costs of sales include costs of production and write downs to the extent of inventory costs in excess of net realizable value. Primary production costs include labor, raw materials, depreciation, supplies, maintenance costs and plant overhead. | ||||||||||
Cash and Cash Equivalents | ||||||||||
Cash and cash equivalents consist of cash and liquid investments with an original maturity of three months or less. Because of the short maturity of these investments, the carrying amounts approximate their fair value. | ||||||||||
Trade Accounts Receivable | ||||||||||
Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company reviews the need for an allowance for doubtful accounts quarterly based on historical experience with each customer and the specifics of each arrangement. At December 31, 2012 and 2011, the allowance for doubtful accounts was $2.6 million and $0, respectively. | ||||||||||
Inventories | ||||||||||
Inventories consist of stockpiles of bastnasite concentrate, raw materials, work in process, finished goods and materials and supplies. Inventory cost is determined using the lower of weighted average cost or estimated net realizable value, and includes all expenses directly attributable to the manufacturing process as well as portions of production overheads, which are based on normal operating capacity. Inventories expected to be used and sold beyond a twelve-month period are classified as a non-current asset in the consolidated balance sheets. The Company evaluates the carrying value of materials and supply inventories each quarter giving consideration to slow-moving items, obsolescence, excessive levels, and other factors and recognizes related write-downs as necessary. Write-downs of inventory to estimated net realizable value are charged to costs of sales. | ||||||||||
Property, Plant and Equipment | ||||||||||
Property, plant and equipment obtained from business acquisitions are recorded at their estimated fair value as of the acquisition date. Expenditures for new property, plant and equipment, and improvements that extend the useful life or functionality of the asset, are recorded at their cost of acquisition or construction. Depreciation on plant and equipment is provided using the straight-line method over their estimated useful lives (buildings and improvements - generally 4 to 40 years; plant and equipment - 2 to 15 years). As no finite useful life for land can be determined, related carrying amounts are not depreciated. Maintenance costs are expensed as incurred. | ||||||||||
Construction in progress is recognized for costs directly attributable to the construction or development of long-term tangible assets. These costs may include: labor and employee benefits associated with the construction of the asset; site preparation; permitting; engineering; installation and assembly; procurement; insurance; legal; commissioning; and interest on borrowings to finance the construction of the asset. Construction in progress is not depreciated until the asset built is put into service. | ||||||||||
Gains or losses arising on the disposal of property, plant and equipment are determined as the difference between the proceeds from disposal and the carrying amount of the asset, and are recognized in the consolidated statements of operations within other income or expense. | ||||||||||
Mineral Properties and Development Costs | ||||||||||
Mineral properties and development costs, which are referred to collectively as mineral properties, include acquisition costs, drilling costs, and the cost of other development work, all of which are capitalized. The Company depletes mineral properties using the units of production method over estimated proven and probable reserves. Proven and probable reserves are based on extensive drilling, sampling, mine modeling, and mineral recovery from which economic feasibility has been determined, and are estimated based on information available at the time the reserves are calculated. Proven and probable reserves are based on estimates, and no assurance can be given that the indicated levels of recovery of rare earth oxides ("REO") will be realized or that production costs and estimated future development costs will not exceed the net realizable value of the products. Reserve estimates may require revisions based on actual production experience. Market price fluctuations of REO, 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. The Company began depleting mineral properties in 2012 using the units of production method over estimated proven and probable reserves. Depletion costs are recorded as part of work-in-process inventory. | ||||||||||
Intangible Assets | ||||||||||
Intangible assets consist primarily of customer relationships, Chinese rare earth quotas, patents, Chinese land use rights and both indefinite-lived and finite-lived trade names. Finite-lived intangible assets are amortized on a straight-line basis over the estimated useful lives determined as of the asset acquisition date or based on the legal terms of internally-developed patents. Useful lives of the Company's finite-lived intangible assets range from 2 to 16 years for customer relationships, Chinese rare earth quotas, patents and trade name, and 50 years for Chinese land use rights. | ||||||||||
Recoverability of Long-Lived Amortizable Assets | ||||||||||
Long-lived assets such as property, plant, and equipment, mineral properties and intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment is considered to exist if the total undiscounted future cash flows expected from the use of the asset or group of assets are less than its carrying amount. An impairment loss, if any, is recorded for the excess of the asset's or group of assets' carrying value over its fair value, as determined by a valuation technique appropriate to the given circumstances. | ||||||||||
In the fourth quarter of 2012, the Company recognized an impairment of $6.0 million related to some patents that were recorded under the Magnetic Materials and Alloys segment, and a total $5.9 million impairment of long-lived tangible assets, $3.8 million of which related to the Resources segment and $2.0 million to the Rare Metals segment. See Note 7 and Note 9 for further details. The undiscounted future cash flows expected from the use of all other amortizable long-lived assets the Company tested for recoverability were in excess of their carrying amounts as of December 31, 2012. | ||||||||||
Recoverability of Goodwill | ||||||||||
The Company assigns goodwill arising from acquired companies to the reporting units that are expected to benefit from the synergies of the acquisition. On an annual basis and at interim periods when circumstances require, the Company tests the recoverability of its goodwill utilizing a two-step impairment analysis. Under this analysis, the Company initially compares the fair value of each identified reporting unit with the reporting unit's net book value. The Company's reporting units are determined either at the operating segment level or a component one level below the operating segment that constitutes a business for which the operating segment management generally reviews production and financial results of that reporting unit. To the extent that a reporting unit's fair value is less than its carrying value, the Company performs an additional step to determine the implied fair value of goodwill allocated to that reporting unit. The implied fair value of goodwill is calculated by first allocating the fair value of the reporting unit to all of its assets and liabilities, including goodwill, and then computing the excess of the reporting unit's fair value over the amounts assigned to its assets and liabilities. To the extent that the carrying value of goodwill exceeds its implied fair value, the Company would recognize an impairment loss corresponding to such amount. The valuation methodology utilized to fair value the Company's reporting units is based on a discounted cash flow model, or income approach, in which expected future net cash flows, excluding any financing costs or dividends, are discounted to present value using an appropriate after-tax weighted average cost of capital, or discount factor. The income approach is dependent upon a number of significant management estimates about future performance including sales volumes and average sales prices for our products, production costs, income taxes, capital expenditures, working capital changes, foreign exchange rates and the after-tax weighted average cost of capital. Changes in any of these assumptions could materially impact the estimated fair value of the Company's reporting units. Discount factors are determined individually for each reporting unit to reflect its respective risk profile as assessed by the Company's management. | ||||||||||
The Company recorded a total goodwill impairment charge of approximately $289.9 million in the fourth quarter of 2012. See Note 9 for further details. | ||||||||||
Investments | ||||||||||
Investments in common stock or in-substance common stock of entities in which the Company has the ability to exercise significant influence over their operating and financial policies, has presumed by an ownership share greater than 20% but lower than 50%, are accounted for by the equity method. Under this method of accounting, the Company's proportional shares of net assets and results of operations of the investee or affiliate are included in the Company's consolidated financial statements. All subsequent changes to the Company's share of interest in the equity of the affiliate are recognized in the carrying amount of the investment. Changes resulting from the net income or loss generated by the affiliate are reported within "Equity in results of affiliate" in the consolidated statements of operations and comprehensive income. Equity method investments are reviewed periodically for other-than-temporary decline in value. | ||||||||||
The Company accounts for investments in non-marketable equity securities for which it does not have the ability to exercise significant influence over the investee’s operations and financial policies under the cost method of accounting. Cost method investments are carried at cost and are subject to other-than-temporary impairment assessments. | ||||||||||
Business Combinations | ||||||||||
The Company accounts for all business combinations using the acquisition method of accounting. Under this method, assets and liabilities, including any remaining noncontrolling interests, are recognized at fair value at the date of acquisition. The excess of the purchase price over the fair value of assets acquired, net of liabilities assumed, and noncontrolling interests is recognized as goodwill. Certain adjustments to the assessed fair values of the assets, liabilities, or noncontrolling interests made subsequent to the acquisition date, but within the measurement period, which is up to one year, are recorded as adjustments to goodwill. Any adjustments subsequent to the measurement period are recorded in income. Any cost or equity method interest that the Company holds in the acquired company prior to the acquisition is remeasured to fair value at acquisition with a resulting gain or loss recognized in income for the difference between fair value and the existing book value. Results of operations of the acquired entity are included in the Company’s results from the date of the acquisition onward and include amortization expense arising from acquired tangible and intangible assets. The Company expenses all costs as incurred related to an acquisition under “Corporate development” in the consolidated statement of operations and comprehensive income. | ||||||||||
Asset Retirement Obligation | ||||||||||
The Company accounts for reclamation costs, along with other costs related to the closure of the Molycorp Mountain Pass facility, in accordance with ASC 410-20, Asset Retirement Obligations. This standard requires the Company to recognize asset retirement obligations at estimated fair value in the period in which the obligation is incurred. Events that trigger the recognition of asset retirement obligations include land disturbance and construction of properties for which there is a legal obligation, as determined by the local environmental authorities, to demolish the facilities and/or to restore the land disturbance to its original status at the end of the life of the mine plan at the Molycorp Mountain Pass facility. The liability is initially measured at fair value using a discounted cash flow model, and is subsequently adjusted for accretion expense and changes in the amount or timing of the estimated cash flows. The asset retirement cost is capitalized as part of the carrying amount of the related long-lived assets and is depreciated over the assets’ remaining useful lives. | ||||||||||
Income Taxes | ||||||||||
The Company accounts for income taxes in accordance with Accounting Standard Codification 740, Income Taxes. This guidance requires that deferred tax assets and liabilities be recognized for the tax effect of temporary differences between the financial statement and tax basis of recorded assets and liabilities at enacted statutory tax rates. This guidance also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. The recoverability of deferred tax assets is based on both our historical and anticipated earnings levels and we review it each reporting period to determine if any additional valuation allowance is necessary when it is more likely than not that amounts will not be recovered. We have concluded that a valuation allowance of $20.6 million is required as of December 31, 2012 and no valuation allowance was required as of December 31, 2011. | ||||||||||
We review our deferred tax assets and liabilities each reporting period using the enacted tax rate expected to apply to taxable income for the period in which the deferred tax asset or liability is expected to be realized. The statutory income tax rates that are applied to the current and deferred income tax calculations are significantly impacted by the jurisdictions in which we conduct business. Changes in jurisdiction income tax rates and apportionment laws may result in changes in the calculation of our current and deferred income taxes. The effects of any changes are recorded in the period of enactment and can increase or decrease the net deferred tax assets and liabilities on the balance sheet. | ||||||||||
Foreign Currency | ||||||||||
The functional currency of the majority of the Company's operations is the U.S. dollar. Assets and liabilities recorded in functional currencies other than U.S. dollars are translated at the spot rate in effect at the applicable reporting date; revenues and expenses in foreign currencies are translated at actual exchange rates for significant transactions or at the average exchange rates in effect during the applicable period. The resulting unrealized cumulative translation adjustment is recorded as a component of "Accumulated other comprehensive income (loss)" in the consolidated statement of stockholders’ equity. The effect of exchange rates on cash balances held in foreign currencies are separately reported in the Company’s consolidated statements of cash flows. | ||||||||||
Transactions denominated in currencies other than the applicable functional currency are recorded based on exchange rates at the time such transactions occur. Changes in exchange rates associated with amounts recorded in the Company’s consolidated balance sheets related to these non-functional currency transactions result in transaction gains and losses that are reflected under "Foreign exchange gains (losses), net" in the consolidated statements of operations and comprehensive income. | ||||||||||
Comprehensive Income (Loss) | ||||||||||
The Company presents comprehensive income (loss) in two separate, but consecutive statements. In addition to "Net income (loss)", "Comprehensive income (loss)" includes all changes in equity during a period, such as foreign currency translation adjustments. A gain of $0.2 million and a loss of approximately $2.7 million from the translation of intercompany balances are included in the foreign currency translation adjustments amounts for 2012 and 2011, respectively. | ||||||||||
Earnings (Loss) per Share | ||||||||||
Basic earnings per share is computed by dividing the Company’s net income attributable to its stockholders, reduced by cumulative undeclared and paid dividends on preferred stock, by the weighted average number of shares of common stock outstanding during the period. | ||||||||||
Diluted earnings per share reflect the dilutive impact of potential common stock and unvested restricted shares of common stock in the weighted average number of common shares outstanding during the period, if dilutive. For this purpose, the “treasury stock method” and “if-converted method,” as applicable, are used. Under the treasury stock method, assumed proceeds upon the exercise of stock options are considered to be used to purchase common stock at the average market price of the shares during the period. Also under the treasury stock method, fixed awards and nonvested shares, such as restricted stock, are deemed options for purposes of computing diluted earnings per share. In applying the if-converted method, conversion is not assumed for purposes of computing diluted earnings per share if the effect would be antidilutive. Convertible preferred stock is antidilutive whenever the amount of the dividend declared in or accumulated for the current period per common share obtainable on conversion, including the deemed dividend in the period from a beneficial conversion feature, exceeds basic earnings per share. Also under the if-converted method, convertible debt is antidilutive whenever its interest per common share obtainable on conversion, including any deemed interest from a beneficial conversion feature and nondiscretionary adjustments, net of tax, exceeds basic earnings per share. | ||||||||||
Fair Value Measurements | ||||||||||
For assets and liabilities that are required under GAAP to be measured at fair value on a recurring and nonrecurring basis, the Company refers to a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into the following three broad levels: | ||||||||||
• | Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | |||||||||
• | Level 2 - Observable inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data by correlation or other means. | |||||||||
• | Level 3 - Prices or valuation techniques requiring inputs that are both significant to the fair value measurement and unobservable. | |||||||||
The fair value of many of the Company's financial instruments, including cash and cash equivalents, trade accounts receivables, trade accounts payable and accrued expenses approximate the amounts recorded in the balance sheet because of the relatively short-term nature of these financial instruments. Fixed rate notes are carried at their original issuance values as adjusted over time to accrete that value to the principal amount. | ||||||||||
Recent Accounting Pronouncements | ||||||||||
In July 2012, the Financial Accounting Standard Board ("FASB") issued ASU 2012-02, Intangibles - Goodwill and Other (Topic 350), Testing Indefinite-Lived Intangible Assets for Impairment. In accordance this update, an entity has the option first to assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the indefinite-lived intangible asset is impaired. If, after assessing the totality of events and circumstances, an entity concludes that it is not more likely than not that the indefinite-lived intangible asset is impaired, then the entity is not required to take further action. However, if an entity concludes otherwise, then it is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying amount and record an impairment charge, if any. | ||||||||||
The update is effective for annual and interim period impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. The Company does not expect the adoption of this updated guidance to have a significant impact on its financial statements. | ||||||||||
(2a) Completion of the purchase price allocation for the Molycorp Canada acquisition and related revision of the December 31, 2012 financial statements. | ||||||||||
The Company completed the purchase price allocation with respect to the acquisition of Molycorp Canada (see Note 11 below), which resulted in revisions to the previously issued audited consolidated balance sheet as of December 31, 2012, pursuant to the requirements of ASC 805 Business Combination. The completion of the purchase price allocation also resulted in revisions to the previously issued audited consolidated statement of operations and comprehensive income, stockholders' equity and certain non-cash items that reconcile the net loss to the net cash used in operating activities for the year ended December 31, 2012. Accordingly, the Company's audited consolidated financial statements have been revised as follows: | ||||||||||
At December 31, 2012 | ||||||||||
As originally reported | Revision | As revised | ||||||||
(In thousands) | ||||||||||
Investments | $ | 65,126 | $ | (1,090 | ) | $ | 64,036 | |||
Deferred tax assets | 1,083 | (1,083 | ) | — | ||||||
Total non-current assets | 2,361,030 | (2,173 | ) | 2,358,857 | ||||||
Total assets | 2,994,708 | (2,173 | ) | 2,992,535 | ||||||
Deferred tax liabilities | 166,215 | (5,540 | ) | 160,675 | ||||||
Total non-current liabilities | 1,387,400 | (5,540 | ) | 1,381,860 | ||||||
Additional paid-in capital | 1,680,838 | 10,591 | 1,691,429 | |||||||
Deficit | (434,476 | ) | (31,615 | ) | (466,091 | ) | ||||
Total Molycorp stockholders' equity | 1,237,070 | (21,024 | ) | 1,216,046 | ||||||
Noncontrolling interests | 10,821 | 24,391 | 35,212 | |||||||
Total stockholders' equity | 1,247,891 | 3,367 | 1,251,258 | |||||||
For the year ended December 31, 2012 | ||||||||||
As originally reported | Revision | As revised | ||||||||
(In thousands, except per share amounts) | ||||||||||
Impairment of goodwill and other long-lived assets | $ | (270,140 | ) | (31,615 | ) | $ | (301,755 | ) | ||
Loss before income taxes and equity earnings | (494,313 | ) | (31,615 | ) | (525,928 | ) | ||||
Net loss | (443,728 | ) | (31,615 | ) | (475,343 | ) | ||||
Net loss attributable to Molycorp stockholders | (449,554 | ) | (31,615 | ) | (481,169 | ) | ||||
Comprehensive loss | (444,680 | ) | (31,615 | ) | (476,295 | ) | ||||
Comprehensive loss attributable to Molycorp stockholders | (438,854 | ) | (31,615 | ) | (470,469 | ) | ||||
Loss per share of common stock: | ||||||||||
Basic | (4.31 | ) | (0.29 | ) | (4.60 | ) | ||||
Diluted | (4.31 | ) | (0.29 | ) | (4.60 | ) | ||||
The completion of the purchase price allocation also resulted in revisions to Note 4 "Segment Information", Note 9 "Goodwill and Other Intangible Assets", Note 11 "Acquisitions, Note 15 "Income Taxes", Note 17 "(Loss) Earnings per Share", and Note 22 "Subsidiary Guarantor Financial Information". |
Capital_Requirements
Capital Requirements | 12 Months Ended |
Dec. 31, 2012 | |
CapitalRequirements | |
Capital Requirements | Capital Requirements |
Total capital expenditures for the modernization and expansion efforts and certain other capital projects at the Molycorp Mountain Pass Rare Earth Facility (the "Molycorp Mountain Pass facility") are expected to total approximately $1.55 billion. This updated projection includes certain expenditures that are expected to be deferred until 2014 and 2015, including discretionary expenditures required only to expand production beyond the Molycorp Mountain Pass facility's design capacity of 19,050 metric tons ("mt") of rare earth oxides ("REO"), if and when market demand, product pricing, capital availability and financial returns will justify such production. Of the $1.55 billion projected capital expenditures, the Company had spent approximately $1.30 billion on a cash basis through June 30, 2013, excluding capitalized interest. | |
As of June 30, 2013, the Company estimates cash expenditures totaling approximately $130 million through December 31, 2013, approximately $40 million in 2014 and approximately $70 million in 2015 to fund remaining capital expenditures for the modernization and expansion efforts and certain other capital expenditures at the Molycorp Mountain Pass facility. Additionally, the Company expects to spend approximately $17 million on other maintenance and expansion capital expenditures across all operating segments during the second half of 2013, some of which is discretionary. | |
Other cash requirements for the remainder of 2013 include the final payment of approximately $6.0 million to the noncontrolling shareholder of the Company's majority owned Jiangyin Jia Hua Advanced Material Resources Co. Ltd. facility in Jiangyin, China, and preferred stock dividend payments of approximately $5.6 million, if and after they are declared by the Board of Directors of the Company to be paid in cash. | |
Given the combination of ramping up toward the design capacity of 19,050 mt of REO per year at the Molycorp Mountain Pass facility, and the declining pricing environment of rare earth elements ("REEs"), the Company anticipates significantly lower than previously expected revenues and cash flow from operations through the remainder of 2013. | |
The Company plans to fund its capital expenditures primarily from its consolidated cash balances of $264.2 million as of June 30, 2013, and cash generated from operations. While the Company's cash balances as of June 30, 2013 will fund a substantial portion of its capital needs, the full funding of the Company's planned capital expenditures continues to be dependent on (i) its cost estimates for capital expenditures being accurate, (ii) its ability to ramp up run rates at its Molycorp Mountain Pass facility pursuant to its expectations without delays and the successful commissioning of its chloralkali plant and its multi-stage cracking unit, which is expected to reduce our cash costs of production, (iii) market conditions improving over what the Company is currently experiencing and that it is able to sell all its production at such prices (the Company estimates that a 15% drop in market prices for all REEs would reduce its estimated consolidated cash balance as of December 31, 2013 by approximately $8 million and that a 15% drop in volumes would reduce its estimated consolidated cash balance as of December 31, 2013 by approximately $30 million), (iv) its ability to sell its entire production of REO (in particular, including its ability to sell its cerium through acceptance of SorbX or otherwise) and (v) the absence of payments on current and future contingent liabilities. If these assumptions prove inaccurate, the Company's estimates could prove incorrect and it may need additional financing. | |
As part of its cash management procedures, the Company continues to pursue other sources of liquidity, including potential proceeds from revolving credit facilities, equity issuances, and lease and loan financing for certain equipment. | |
There can be no assurance that the Company will be successful in securing access to additional cash proceeds through the revolving credit facilities or other forms of financing that it is currently pursuing on commercially acceptable terms, or at all. Accordingly, if necessary, the Company believes it has the ability to curtail capital expenditures and revise its current business plan to the extent necessary to preserve adequate liquidity sufficient to sustain operations. | |
On October 14, 2013, the Company entered into an agreement with Molibdenos y Metales S.A. ("Molymet") pursuant to which Molymet agreed that, at the request of the Company during the term of the agreement, Molymet would purchase $50.0 million of the Company’s common stock. The agreement with Molymet expires on October 28, 2013. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2012 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||
Segment Information | Segment Information | ||||||||||||||||||||||||||||
In the third quarter of 2012, management reorganized the Company's operations into four new reportable segments to better reflect its primary activities as a global rare earth and magnetic products enterprise: Resources; Chemicals and Oxides; Magnetic Materials and Alloys; and Rare Metals. The new composition of the Company's reportable segments is based on a combination of product lines and technologies aligned with its current strategy. | |||||||||||||||||||||||||||||
The Resources segment includes the Company's operations at its Molycorp Mountain Pass facility where it conducts rare earth minerals extraction to produce: rare earth concentrates; REO, including lanthanum, cerium, neodymium, praseodymium and yttrium; heavy rare earth elements, such as samarium, europium, gadolinium, terbium, dysprosium, and others; and SorbXTM, a line of proprietary rare earth-based water treatment products. | |||||||||||||||||||||||||||||
The Chemicals and Oxides segment includes: production of REO at the Company's operations in Sillamäe, Estonia ("Molycorp Silmet"); heavy rare earths from the Company's facilities in Jiangyin, Jiangsu Province, China; and production of REO, salts of REEs, zirconium-based engineered materials and mixed rare earth/zirconium oxides from the Company's facilities in Zibo, Shandong Province, China. Rare earths products and zirconium-based engineered products are primarily supplied to the automotive catalyst, electronics, ceramic, clean technology and glass industries. | |||||||||||||||||||||||||||||
The Magnetic Materials and Alloys segment includes: the production of NdFeB magnet powders ("Neo Powders™") through Molycorp's wholly-owned manufacturing facilities in Tianjin, China and Korat, Thailand, under the Molycorp Magnequench brand. Neo Powders™ are used to make bonded magnets for a variety of electronic and mechanical products such as micro motors, precision motors, sensors and other applications requiring high levels of magnetic strength, flexibility, small size and reduced weight. This reporting segment also includes manufacturing of neodymium and samarium magnet alloys, other specialty alloy products and rare earth metals at Molycorp Metals and Alloys ("MMA") in Tolleson, Arizona. | |||||||||||||||||||||||||||||
The Rare Metals segment comprises: Molycorp's production of gallium, indium, tantalum and rhenium from its operations in Quapaw, Oklahoma; Blanding, Utah; Peterborough, Ontario; Napanee, Ontario; Sagard, Germany; and Hyeongok Industrial Zone in South Korea. This operating segment also includes tantalum and niobium from the Company's operations in Sillamäe, Estonia. Rare metals are primarily used in the wireless, light-emitting diode, flat panel display, turbine, solar and catalyst industries. | |||||||||||||||||||||||||||||
The asset retirement obligation is recognized only within the Resources segment. In addition, the annual profit earned from the Estonian operations are not taxed. In accordance with the Estonian Income Tax Act, only distribution of annual profit is subject to income tax in Estonia. Intersegment sales and transfers are based on similar arms-length transactions with third parties at the time of the sale. | |||||||||||||||||||||||||||||
Some of the information under Chemicals and Oxides, Magnetic Materials and Alloys and Rare Metals for the year ended December 31, 2012 is actually for the period from June 12, 2012 (following the acquisition of Neo Material Technologies Inc., formerly referred to as "Neo" or "Neo Materials" and now Molycorp Minerals Canada ULC or "Molycorp Canada") through December 31, 2012. | |||||||||||||||||||||||||||||
In 2011, the basis of segmentation of the Company's activities was the location of its operations. As a result of the changes in the composition of the Company's reportable segments discussed above, the prior period reporting segments presentation has been revised for comparative purposes. Some of the information under Chemicals and Oxides and Rare Metals for the year ended December 31, 2011 is actually for the period from April 1, 2011 (the beginning of the reporting period of Molycorp Silmet) through December 31, 2011. The information under Magnetic Materials and Alloys for the year ended December 31, 2011 is actually for the period from April 15, 2011(the beginning of the reporting period of MMA) through December 31, 2011. The Rare Metal segment in 2011 includes only rare metals production from Molycorp Silmet. | |||||||||||||||||||||||||||||
Prior to 2011, there was only one segment consisting of the Molycorp Mountain Pass facility operations. | |||||||||||||||||||||||||||||
Year ended December 31, 2012 | Resources | Chemicals and Oxides | Magnetic Materials and Alloys | Rare Metals | Eliminations(a) | Corporate and other(b) | Total Molycorp, Inc. | ||||||||||||||||||||||
(Revised) | |||||||||||||||||||||||||||||
Revenues: | (In thousands) | ||||||||||||||||||||||||||||
External | $ | 88,870 | $ | 181,849 | $ | 179,335 | $ | 78,856 | $ | — | $ | 528,910 | |||||||||||||||||
Intersegment | 7,256 | 25,717 | — | — | (32,973 | ) | — | ||||||||||||||||||||||
Total revenues | $ | 96,126 | $ | 207,566 | $ | 179,335 | $ | 78,856 | $ | (32,973 | ) | $ | 528,910 | ||||||||||||||||
Depreciation, amortization and accretion | $ | (13,991 | ) | $ | (13,110 | ) | $ | (19,737 | ) | $ | (6,154 | ) | $ | — | $ | (133 | ) | $ | (53,125 | ) | |||||||||
Operating (loss) income | $ | (70,220 | ) | $ | (191,059 | ) | $ | (125,543 | ) | $ | (20,408 | ) | $ | 24,803 | $ | (85,459 | ) | $ | (467,886 | ) | |||||||||
(Loss) income before income taxes and equity earnings | $ | (70,469 | ) | $ | (190,094 | ) | $ | (126,981 | ) | $ | (19,918 | ) | $ | 24,803 | $ | (143,269 | ) | $ | (525,928 | ) | |||||||||
Total assets at December 31, 2012 | $ | 1,802,842 | $ | 639,847 | $ | 593,197 | $ | 117,961 | $ | (187,567 | ) | $ | 26,255 | $ | 2,992,535 | ||||||||||||||
Capital expenditures (c) | $ | 814,054 | $ | 10,910 | $ | 5,614 | $ | 10,750 | $ | — | $ | 1,733 | $ | 843,061 | |||||||||||||||
Year ended December 31, 2011 | Resources | Chemicals and Oxides | Magnetic Materials and Alloys | Rare Metals | Eliminations(a) | Corporate and other(b) | Total Molycorp, Inc. | ||||||||||||||||||||||
Revenues: | (In thousands) | ||||||||||||||||||||||||||||
External | $ | 253,563 | $ | 40,216 | $ | 56,772 | $ | 46,280 | $ | — | $ | 396,831 | |||||||||||||||||
Intersegment | 55,155 | 13,902 | — | — | (69,057 | ) | — | ||||||||||||||||||||||
Total revenues | $ | 308,718 | $ | 54,118 | $ | 56,772 | $ | 46,280 | $ | (69,057 | ) | $ | 396,831 | ||||||||||||||||
Depreciation, amortization and accretion | $ | (10,553 | ) | $ | (1,958 | ) | $ | (236 | ) | $ | (2,449 | ) | $ | — | $ | (31 | ) | $ | (15,227 | ) | |||||||||
Operating income (loss) | $ | 218,549 | $ | 8,700 | $ | 2,331 | $ | 2,131 | $ | (27,443 | ) | $ | (51,402 | ) | $ | 152,866 | |||||||||||||
Income (loss) before income taxes | $ | 218,391 | $ | 5,785 | $ | 2,336 | $ | (634 | ) | $ | (27,443 | ) | $ | (51,525 | ) | $ | 146,910 | ||||||||||||
Total assets at December 31, 2011 | $ | 824,712 | $ | 46,368 | $ | 30,061 | $ | 71,634 | $ | (143,730 | ) | $ | 426,080 | $ | 1,255,125 | ||||||||||||||
Capital expenditures (c) | $ | 401,047 | $ | 8,170 | $ | — | $ | — | $ | — | $ | — | $ | 409,217 | |||||||||||||||
(a) | The net elimination in operating results includes costs of sales eliminations of $57,776 and $41,614 for the year ended December 31, 2012 and 2011, respectively, which consist of intercompany gross profits as well as eliminations of lower of cost or market adjustments related to intercompany inventory. The total assets elimination is comprised primarily of intercompany investments and intercompany accounts receivable and profits in inventory. | ||||||||||||||||||||||||||||
(b) | Corporate loss before income taxes and equity earnings includes business development costs, personnel and related costs, including stock-based compensation expense, accounting and legal fees, occupancy expense, information technology costs and interest expense. Other consists of nominal expenses incurred by the sales office in Tokyo, Japan. Total corporate assets is comprised primarily of cash and cash equivalents, the investment in the sales office in Tokyo and deferred tax assets. | ||||||||||||||||||||||||||||
(c) | On an accrual basis excluding capitalized interest. | ||||||||||||||||||||||||||||
The geographic distribution of the Company’s revenues based on customers' locations for the years ended December 31, 2012, 2011 and 2010, was as follows: | |||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
(In thousands) | 2012 | 2011 | 2010 | ||||||||||||||||||||||||||
Asia: | |||||||||||||||||||||||||||||
China | $ | 118,086 | $ | 421 | $ | 909 | |||||||||||||||||||||||
Japan | 160,942 | 204,262 | 9,569 | ||||||||||||||||||||||||||
Thailand | 7,674 | — | — | ||||||||||||||||||||||||||
Hong Kong | 4,793 | — | — | ||||||||||||||||||||||||||
South Korea | 3,828 | — | — | ||||||||||||||||||||||||||
Singapore | 212 | — | 9 | ||||||||||||||||||||||||||
North America | 104,769 | 128,544 | 24,070 | ||||||||||||||||||||||||||
Europe | 117,907 | 56,760 | 596 | ||||||||||||||||||||||||||
Other | 10,699 | 6,844 | 4 | ||||||||||||||||||||||||||
Total | $ | 528,910 | $ | 396,831 | $ | 35,157 | |||||||||||||||||||||||
Long-lived tangible assets by geographic location at December 31, 2012 and 2011 were as follows: | |||||||||||||||||||||||||||||
At December 31, | |||||||||||||||||||||||||||||
(In thousands) | 2012 | 2011 | |||||||||||||||||||||||||||
North America | $ | 1,391,690 | $ | 500,612 | |||||||||||||||||||||||||
Europe | 75,495 | 60,619 | |||||||||||||||||||||||||||
China | 52,914 | — | |||||||||||||||||||||||||||
Thailand | 5,902 | — | |||||||||||||||||||||||||||
Other Asia | 18,221 | 397 | |||||||||||||||||||||||||||
Other | 82 | — | |||||||||||||||||||||||||||
Total | $ | 1,544,304 | $ | 561,628 | |||||||||||||||||||||||||
Inventory
Inventory | 12 Months Ended | |||||||
Dec. 31, 2012 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventory | Inventory | |||||||
At December 31, 2012 and 2011, inventory consisted of the following (in thousands): | ||||||||
December 31, | ||||||||
2012 | 2011 | |||||||
Current: | ||||||||
Concentrate stockpiles | $ | 6,393 | $ | 3,704 | ||||
Raw materials | 95,248 | 44,770 | ||||||
Work in process | 55,229 | 16,602 | ||||||
Finished goods | 114,903 | 45,045 | ||||||
Materials and supplies | 15,603 | 1,822 | ||||||
Total current | $ | 287,376 | $ | 111,943 | ||||
Long-term: | ||||||||
Concentrate stockpiles | $ | 4 | $ | 1,144 | ||||
Raw materials | 26,092 | 3,186 | ||||||
Finished goods | — | 32 | ||||||
Total long-term | $ | 26,096 | $ | 4,362 | ||||
Assessment of normal production levels | ||||||||
For the years ended December 31, 2012, 2011 and 2010, the Company determined that $12.0 million, $4.3 million and $11.0 million, respectively, of production costs would have been allocated to additional production, assuming the Company had been operating at normal production ranges. As a result, these costs were excluded from inventory and instead expensed during the applicable periods. The assessment of normal production levels is judgmental and is unique to each quarter. | ||||||||
Write-downs of inventory | ||||||||
As a result of production or purchase costs in excess of net realizable value, the Company recognized write-downs of inventory of $80.9 million, $2.8 million and $2.5 million for the years ended December 31, 2012, 2011 and 2010, respectively. In addition, for the same respective periods the Company recognized write-downs of work-in-process and stockpile inventory totaling $2.1 million, $2.3 million and $2.7 million based on slow moving inventory (in 2012 only) and adjustments to estimated REO quantities. The level within the fair value hierarchy in which the write-downs of inventory are included is the significant other observable inputs—Level 2. | ||||||||
Subject to certain exceptions, substantially all of the property and assets of the Company are pledged as collateral for some of the Company's indebtedness, as further discussed in Note 14. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2012 | |
Deposits [Abstract] | |
Deposits | Deposits |
The Company had $26.8 million and $23.3 million in deposits reported as non-current assets at December 31, 2012 and 2011, respectively. The deposits at December 31, 2012 consisted of $20.6 million under an escrow arrangement for the Company’s facilities agreement with Kern River Gas Transmission Company ("Kern River"), $1.5 million related to the Company’s construction insurance program, and $4.7 million comprised primarily of collateral placed against the surety bonds issued to California state and regional agencies for the closure and reclamation obligations at the Molycorp Mountain Pass facility. The collateral placed against these surety bonds increased by $3.5 million from the prior year. |
Property_Plant_and_Equipment_n
Property, Plant and Equipment, net | 12 Months Ended | |||||||
Dec. 31, 2012 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment, net | Property, Plant and Equipment, net | |||||||
The Company capitalized $902.3 million and $416.7 million for the years ended December 31, 2012 and 2011, respectively, the majority of which related to the expansion and modernization of the Molycorp Mountain Pass facility. These amounts include capitalized interest of $59.3 million and $7.5 million, respectively. Depreciation expense for the years ended December 31, 2012, 2011 and 2010, was $20.9 million, $14.0 million and $6.0 million, respectively. Accumulated amortization on the capital lease was $0.9 million in 2012. | ||||||||
At December 31, 2012 and 2011, property, plant and equipment consisted of the following (in thousands): | ||||||||
December 31, | ||||||||
2012 | 2011 | |||||||
Land | $ | 12,475 | $ | 11,059 | ||||
Land improvements (15 years) | 63,269 | 15,748 | ||||||
Buildings and improvements (4 to 40 years) | 237,379 | 23,677 | ||||||
Plant and equipment (2 to 15 years) | 194,934 | 68,441 | ||||||
Vehicles (7 years) | 2,842 | 1,235 | ||||||
Computer software (5 years) | 9,528 | 3,002 | ||||||
Furniture and fixtures (5 years) | 1,116 | 464 | ||||||
Construction in progress (a) | 1,011,541 | 436,547 | ||||||
Capital Lease (10 years) | 15,658 | — | ||||||
Mineral properties (Note 8) | 24,327 | 24,692 | ||||||
Exploration rights (Note 8) | 16,166 | — | ||||||
Property, plant and equipment at cost | 1,589,235 | 584,865 | ||||||
Less accumulated depreciation | (44,931 | ) | (23,237 | ) | ||||
Property, plant and equipment, net | $ | 1,544,304 | $ | 561,628 | ||||
(a) | Represents costs incurred at the Molycorp Mountain Pass facility and all other capital projects. See Note 3. | |||||||
In 2012 and 2010, the Company recognized impairment expenses, net of depreciation, of $5.9 million and $3.1 million, respectively. Of the total 2012 impairment charge, $3.8 million related to the mill silos and conveyor belt at the Molycorp Mountain Pass facility not functioning as intended, and $2.0 million related to equipment no longer in use at the Molycorp Silmet facility. The impairment in 2010 related to management decision to replace rather than refurbish the old mill and crusher at the Molycorp Mountain Pass facility. There were no impairment of long-lived tangible assets in 2011. | ||||||||
Subject to certain exceptions, substantially all of the property and assets of the Company are pledged as collateral for some of the Company's indebtedness, as further discussed in Note 14 below. |
Mineral_Properties_and_Develop
Mineral Properties and Development Costs | 12 Months Ended |
Dec. 31, 2012 | |
Extractive Industries [Abstract] | |
Mineral Properties, Development Costs and Exploration Rights | Mineral Properties, Development Costs and Exploration Rights |
Mineral properties and development costs, which are referred to collectively as mineral properties, include acquisition costs, drilling costs, and the cost of other development work, all of which are capitalized. The Company began depleting mineral properties in 2012 using the units of production method over estimated proven and probable reserves. For the year ended December 31, 2012, the Company capitalized a nominal amount of depletion costs in work-in-process inventory related to the reserves that were mined and crushed during that period. | |
Exploration rights represent acquired rights to explore properties that are believed to potentially contain mineral deposits. During the fourth quarter of 2012, the Company completed an acquisition of exploration rights for a total consideration of $16.2 million, which was paid for by the issuance of 788,410 shares of common stock at $10.147 per share and a cash payment of $8.2 million. The Company capitalized these exploration rights at their fair value at the acquisition date as an individual asset purchase. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2012 | |||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||
The Company tested the recoverability of its goodwill at December 31, 2012. See Note 2 for a complete description of the methodology and key assumptions used for this test. For purposes of this analysis, the Company determined that: the Resources operating segment constitutes a reporting unit; the Molycorp Silmet facility, which is included in the Chemicals and Oxides operating segment in relation to the REO production and in the Rare Metals segment in relation to the manufacturing of tantalum and niobium, constitutes a reporting unit; the MMA facility, which is part of the Magnetic Materials and Alloys operating segment, constitutes a reporting unit; the Chemicals and Oxides operating segment, exclusive of the REO production from the Molycorp Silmet facility, constitutes a reporting unit; the Magnetic Materials and Alloys operating segment, exclusive of the MMA facility, constitutes a reporting unit; and the Rare Metals segment, exclusive of both the tantalum and niobium production from the Molycorp Silmet facility and the Buss & Buss facility, which are individual reporting units, constitutes a reporting unit. | |||||||||||||||||||||||
The Company concluded that, except for the Resources segment and the Molycorp Silmet facility, the estimated fair value of all other reporting units did not exceed their carrying value. As a result, the Company completed step two of the test and determined that the goodwill was impaired for the Chemicals and Oxides, Magnetic Materials Alloys and Rare Metals segments, with the exclusions described above, and for the MMA facility. The Company initially recorded a total goodwill impairment charge of approximately $258.3 million that, except for approximately $2.0 million related to the MMA acquisition, was associated with the reporting units created as a result of the Molycorp Canada acquisition. Inputs used to fair value the Company's reporting units are considered Level 3 inputs of the fair value hierarchy. | |||||||||||||||||||||||
In connection with the final allocation of the consideration transferred to the net assets of Molycorp Canada, the Company increased the initial carrying amount of goodwill, but recognized an additional goodwill impairment of $31.6 million that completely offset the incremental goodwill recognized as a result of those adjustments. | |||||||||||||||||||||||
Circumstances that negatively affected the Company's estimate of fair value of its reporting units impaired included: longer-than-anticipated soft pricing environment for rare earths and certain rare metals; loss of some end markets due to 2011 rare earths high prices not returning to lower levels as quickly as anticipated; stalled growth for some new bonded magnet applications due to a peak in neodymium prices in 2011; and delays in ramping up the Molycorp Mountain Pass facility that deferred the Company's ability to enter into longer-term contracts and generate the anticipated synergies expected from the Molycorp Canada acquisition. | |||||||||||||||||||||||
Changes in the carrying value of goodwill by reportable segment during the years ended December 31, 2012 and 2011, except for the Resources segment, which includes only the Molycorp Mountain Pass facility that has no goodwill, were as follows (in thousands): | |||||||||||||||||||||||
1-Jan-11 | Goodwill Acquired | 31-Dec-11 | Goodwill Acquired | Impairment | 31-Dec-12 | ||||||||||||||||||
Chemicals and Oxides | — | $ | 728 | $ | 728 | $ | 285,633 | $ | (161,132 | ) | $ | 125,229 | |||||||||||
Magnetic Materials and Alloys | — | 1,977 | 1,977 | 213,525 | (112,694 | ) | 102,808 | ||||||||||||||||
Rare Metals | — | 727 | 727 | 27,046 | (16,068 | ) | 11,705 | ||||||||||||||||
Total | — | $ | 3,432 | $ | 3,432 | $ | 526,204 | $ | (289,894 | ) | $ | 239,742 | |||||||||||
The goodwill increase in all reportable segments during fiscal 2012 related to the acquisition of Molycorp Canada. The increase in goodwill in the Chemicals and Oxides and Rare Metals segments during the year ended December 31, 2011 was associated with the acquisition of Molycorp Silmet. The MMA acquisition contributed to the increase in goodwill in the Magnetic Materials and Alloys segment in fiscal 2011. | |||||||||||||||||||||||
Other Intangible Assets | |||||||||||||||||||||||
At December 31, 2012 and 2011, intangible assets consisted of the following (in thousands): | |||||||||||||||||||||||
Customer relationships | Rare earth quotas | Patents | Trade names | Land use rights | Other | Total | |||||||||||||||||
Gross carrying amount | |||||||||||||||||||||||
At January 1, 2012 | $ | 2,669 | — | — | $ | 786 | — | — | $ | 3,455 | |||||||||||||
Additions | 342,105 | 78,300 | 39,252 | 14,800 | 3,568 | 4,420 | 482,445 | ||||||||||||||||
Impairment | — | — | (6,000 | ) | — | — | — | (6,000 | ) | ||||||||||||||
At December 31, 2012 | $ | 344,774 | $ | 78,300 | $ | 33,252 | $ | 15,586 | $ | 3,568 | $ | 4,420 | $ | 479,900 | |||||||||
Amortization | |||||||||||||||||||||||
At January 1, 2012 | $ | 170 | — | — | $ | 213 | — | — | $ | 383 | |||||||||||||
Amortization | 13,925 | 4,035 | 9,365 | 939 | 66 | 249 | 28,579 | ||||||||||||||||
At December 31, 2012 | 14,095 | 4,035 | 9,365 | 1,152 | 66 | 249 | 28,962 | ||||||||||||||||
Net book value | $ | 330,679 | $ | 74,265 | $ | 23,887 | $ | 14,434 | $ | 3,502 | $ | 4,171 | $ | 450,938 | |||||||||
Customer relationships | Rare earth quotas | Patents | Trade names | Land use rights | Other | Total | |||||||||||||||||
Gross carrying amount | |||||||||||||||||||||||
At January 1, 2011 | — | — | — | $ | 786 | — | — | $ | 786 | ||||||||||||||
Additions | 2,669 | — | — | — | — | — | 2,669 | ||||||||||||||||
At December 31, 2011 | $ | 2,669 | — | — | $ | 786 | — | — | $ | 3,455 | |||||||||||||
Amortization | |||||||||||||||||||||||
At January 1, 2011 | — | — | — | $ | 147 | — | — | $ | 147 | ||||||||||||||
Amortization | 170 | — | — | 66 | — | — | 236 | ||||||||||||||||
At December 31, 2011 | 170 | — | — | 213 | — | — | 383 | ||||||||||||||||
Net book value | $ | 2,499 | — | — | $ | 573 | — | — | $ | 3,072 | |||||||||||||
At December 31, 2012, the net book value of customer relationships, rare earth quotas, patents, trade names, and other intangible assets included, in the aggregate, $482.2 million from the Molycorp Canada acquisition. The original amount of these acquired intangible assets was reduced in the fourth quarter 2012 by an impairment of $6.0 million related to some patents that were recorded under the Magnetic Materials and Alloys segment. The Company used the relief from royalty method to fair value these patents. Circumstances leading to this impairment included lower margins forecast due to patents expiration in 2014. The trade names additions of $14.8 million in 2012 were the only indefinite-lived intangible assets of the Company at December 31, 2012. | |||||||||||||||||||||||
Amortization expense for the years ended December 31, 2012, 2011 and 2010 was $28.6 million, $0.2 million and $0.1 million, respectively. Amortization expense for the next five years and thereafter is expected to be as follows (in millions): | |||||||||||||||||||||||
2013 | $ | 44.7 | |||||||||||||||||||||
2014 | 37 | ||||||||||||||||||||||
2015 | 33.8 | ||||||||||||||||||||||
2016 | 32.2 | ||||||||||||||||||||||
2017 | 30.9 | ||||||||||||||||||||||
Thereafter | 257.6 | ||||||||||||||||||||||
Investments
Investments | 12 Months Ended |
Dec. 31, 2012 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments |
Boulder Wind Power, Inc. | |
On September 13, 2011, the Company invested $20.0 million into Boulder Wind Power, Inc. Series B convertible preferred stock, which is accounted for at cost. At December 31, 2012, the Company estimated the fair value of this investment and determined it was not impaired. | |
Intermetallics Japan Joint Venture | |
On November 28, 2011, Molycorp, Daido Steel Co., Ltd. (“Daido”) and Mitsubishi Corporation (“Mitsubishi”) entered into a preliminary shareholders agreement for the purpose of establishing a new private company, IMJ, to manufacture sintered NdFeB permanent rare earth magnets. The capital contribution ratio of the newly formed company is 30.0% by Molycorp, 35.5% by Daido and 34.5% by Mitsubishi. According to the definitive shareholders agreement, which was signed in January 2012, Molycorp will contribute, upon achievement of certain milestones and subject to the approval of Molycorp’s Board of Directors, Japanese Yen (JPY) 2.5 billion in cash in exchange for ordinary shares of IMJ over a period of twelve months. The actual remittance amounts will vary depending on the future exchange rate between the U.S. dollar and the Japanese Yen, and the achievement of certain milestones by the joint venture. The Company contributed $27.7 million (representing JPY 2.2 billion) to IMJ thorough December 31, 2012. | |
Molycorp accounts for this investment under the equity method because it has the ability to exercise significant influence over the operating and financial policies of IMJ, as evidenced by Molycorp’s ownership share and its proportional voting rights and representation in the Board of Directors of IMJ. The consolidated statement of operations and comprehensive income for the year ended December 31, 2012 includes a loss of $2.4 million associated with this equity method interest. | |
Ganzhou Keli Rare Earth New Material Co., Ltd. | |
As a result of the Molycorp Canada acquisition in June 2012, Molycorp acquired a 25% ownership interest in Ganzhou Keli Rare Earth New Material Co., Ltd. (“Keli”), a company that converts REO into metals for use in Neo Powders™. The purchase allocation attributable to this investment at the time of the Molycorp Canada acquisition was $12.2 million. Molycorp accounts for this ownership interest under the equity method because it has the ability to exercise significant influence over the operating and financial policies of Keli, as evidenced by Molycorp’s ownership share and its proportional voting rights. The consolidated statements of operations and comprehensive income include a loss of $1.2 million for the period from June 12, 2012 to December 31, 2012 associated with this equity method ownership interest. | |
Toda Magnequench Magnetic Materials Co. Ltd. | |
As a result of the Molycorp Canada acquisition in June 2012, Molycorp acquired a 33% ownership interest in Toda Magnequench Magnetic Materials Co. Ltd. (“TMT”), a company that produces rare earth magnetic compounds with Neo Powders™ supplied by Magnequench (Tianjin) Company Limited in its normal course of business. The purchase allocation attributable to this investment at the time of the Molycorp Canada acquisition was $1.6 million. Molycorp accounts for this ownership interest under the equity method because it has the ability to exercise significant influence over the operating and financial policies of TMT, as evidenced by Molycorp’s ownership share and its proportional voting rights. | |
Ingal Stade GmbH | |
As a result of the Molycorp Canada acquisition in June 2012, Molycorp acquired a 50% ownership interest in Ingal Stade GmbH (“Ingal Stade”), a joint venture facility in Stade, Germany, which extracts gallium metal from alumina smelter bayer liquor with purity level of 5N (99.999%) or higher. The purchase allocation attributable to this investment at the time of the Molycorp Canada acquisition was $4.9 million. Molycorp accounts for this ownership interest under the equity method. | |
Atlantic Metals & Alloys, LLC | |
As a result of the Molycorp Canada acquisition in June 2012, Molycorp acquired a 19.5% ownership interest in Atlantic Metals & Alloys, LLC, a company which provides refining services for residues and scrap of the rare and platinum group metals. The purchase allocation attributable to this investment at the time of the Molycorp Canada acquisition was $1.4 million. Molycorp accounts for this ownership interest under the cost method. At December 31, 2012, the fair value of this investment was not estimated as there were no identified events or changes in circumstances that may have had a significant adverse effect on the fair value of the investment. | |
Vive Crop Protection | |
As a result of the Molycorp Canada acquisition in June 2012, Molycorp acquired a 7% ownership interest in Vive Crop Protection, a company that specializes in the formulation of active ingredients used in crop protection. The purchase allocation attributable to this investment at the time of the Molycorp Canada acquisition was $0.9 million. Molycorp accounts for this ownership interest under the cost method. At December 31, 2012, the fair value of this investment was not estimated as there were no identified events or changes in circumstances that may have had a significant adverse effect on the fair value of the investment. |
Acquisitions
Acquisitions | 12 Months Ended | |||||||||||||||
Dec. 31, 2012 | ||||||||||||||||
Business Combinations [Abstract] | ||||||||||||||||
Acquisitions | Acquisitions | |||||||||||||||
Increase of Equity Interest in JAMR | ||||||||||||||||
During the fourth quarter of 2012, the Company acquired an additional 5% of its majority owned Jiangyin Jia Hua Advanced Materal Resources Co. Ltd. ("JAMR") facility in Jiangyin, China, bringing its equity interest in JAMR to 95%. The purchase price for the additional equity interest in JAMR was $15.0 million, of which $5.4 million was paid in cash on the date of closing. The remaining $9.6 million, plus interest accrued at an annual rate of 3.25% from the closing date, will be paid in cash by end of the fourth quarter of 2013. | ||||||||||||||||
Molycorp Canada | ||||||||||||||||
On June 11, 2012, Molycorp completed the acquisition of all of the outstanding equity of Molycorp Canada's predecessor company pursuant to the terms of an arrangement agreement (the "Arrangement Agreement") for an aggregate purchase price of approximately $1,192.3 million. Pursuant to the Arrangement Agreement, Molycorp Canada's former shareholders elected to receive: (a) cash consideration equal to Canadian dollars ("Cdn") $11.30 per share of Molycorp Canada's predecessor company's common stock; or (b) share consideration of 0.4242 shares of Molycorp common stock or 0.4242 shares (the "Exchangeable Shares") issued by MCP Exchangeco Inc., Molycorp's wholly-owned Canadian subsidiary, which are exchangeable for shares of Molycorp's common stock on a one for one basis, per each share of Molycorp Canada's predecessor company's common stock; or (c) a combination of cash and shares of Molycorp common stock or Exchangeable Shares, all subject to the proration mechanics set forth in the Arrangement Agreement. | ||||||||||||||||
The consideration paid to Molycorp Canada's former shareholders was comprised of approximately $908.2 million in cash, exclusive of realized losses on the contingent forward contract to purchase $870.0 million Canadian dollars, accounted for as a separate transaction apart from the business combination, as further discussed in Note 25. Additionally, 13,545,426 shares of Molycorp common stock and 507,203 Exchangeable Shares were issued and collectively valued at $284.1 million based on the closing price of the Company's common stock on the acquisition date in accordance with the relevant accounting guidance. The Exchangeable Shares have no par value. | ||||||||||||||||
A preliminary allocation of the consideration transferred to the net assets of Molycorp Canada was made as of June 11, 2012. During the second quarter of 2013, the Company further adjusted the preliminary values assigned to certain assets and liabilities of Molycorp Canada in order to reflect additional information obtained since June 11, 2012. As a result of the additional goodwill recognized during the final allocation of the consideration transferred to the net assets of Molycorp Canada, the goodwill impairment the Company recognized in the fourth quarter of 2012 has increased by $31.6 million to $287.9 million. The measurement period adjustments described in the table below have been reflected in the opening balance sheet; however, since these adjustments did not have a significant impact on the Company's condensed consolidated statements of operations and comprehensive income or cash flows in any period, those statements were not retrospectively adjusted. | ||||||||||||||||
The following table summarizes the determination of the fair value of identifiable assets acquired and liabilities assumed in the Molycorp Canada acquisition: | ||||||||||||||||
Preliminary Allocation of Consideration Transferred as of December 31, 2012 | Measurement Period Adjustments | Final Allocation of Consideration Transferred | ||||||||||||||
Purchase consideration: | (In thousands) | |||||||||||||||
Cash consideration | $ | 908,181 | $ | 908,181 | ||||||||||||
Fair value of Molycorp common stock and Exchangeable Shares issued | 284,144 | 284,144 | ||||||||||||||
Total purchase consideration | $ | 1,192,325 | $ | 1,192,325 | ||||||||||||
Estimated fair values of the assets and liabilities acquired: | ||||||||||||||||
Cash and cash equivalents | $ | 317,169 | $ | — | $ | 317,169 | ||||||||||
Restricted cash | 4,951 | — | 4,951 | |||||||||||||
Accounts receivable | 101,470 | — | 101,470 | |||||||||||||
Inventory | 250,989 | — | 250,989 | |||||||||||||
Prepaid expenses and other current assets | 26,893 | — | 26,893 | |||||||||||||
Property, plant and equipment | 75,745 | — | 75,745 | |||||||||||||
Investments | 21,019 | (1,091 | ) | 19,928 | ||||||||||||
Intangibles | 482,234 | — | 482,234 | |||||||||||||
Deferred tax charges | 13,435 | — | 13,435 | |||||||||||||
Deferred tax assets | 11,473 | (1,423 | ) | 10,050 | ||||||||||||
Goodwill | 494,809 | 31,616 | 526,425 | |||||||||||||
Other non-current assets | 4,367 | — | 4,367 | |||||||||||||
Accounts payable and accrued expenses | (138,576 | ) | — | (138,576 | ) | |||||||||||
Debt | (255,338 | ) | — | (255,338 | ) | |||||||||||
Other current liabilities | (33,990 | ) | — | (33,990 | ) | |||||||||||
Deferred tax liabilities | (154,309 | ) | 5,880 | (148,429 | ) | |||||||||||
Other non-current liabilities | (14,255 | ) | — | (14,255 | ) | |||||||||||
Non-controlling interests | (15,761 | ) | (34,982 | ) | (50,743 | ) | ||||||||||
Total purchase consideration | $ | 1,192,325 | $ | — | $ | 1,192,325 | ||||||||||
The fair value of the accounts receivable acquired included trade receivables of $101.5 million, which were substantially collected at December 31, 2012. | ||||||||||||||||
At the time of acquisition, Molycorp Canada's intangible assets consisted of: a) customer relationships of $341.9 million with a weighted average useful life of approximately fifteen years; b) rare earth quotas of $78.3 million with a useful life of approximately 11 years; c) patents of $39.1 million with a weighted average useful life of approximately two years; d) indefinite-lived trade names of $14.8 million; and e) other of $8.1 million with a weighted average useful life of approximately twelve years. | ||||||||||||||||
Goodwill associated with the Molycorp Canada acquisition arose primarily because of Molycorp Canada's proven leadership in the development, processing, and distribution of technically advanced rare earth products; greater exposure to the world’s largest and fastest-growing rare earths consuming market, China; deferred tax liabilities; and expected synergies that do not qualify for separate recognition. The goodwill is not amortized and is not deductible for tax purposes. | ||||||||||||||||
The amounts of Molycorp Canada's revenues, earnings and earnings per share included in the Company’s consolidated statements of operations since the acquisition date, and the revenues, earnings and earnings per share of the combined entity had the acquisition date been January 1, 2011, were as follows: | ||||||||||||||||
(In thousands, except per share amounts) | Revenues | Net Income (Loss) | Net Income (Loss) | EPS Basic | ||||||||||||
Attributable To Molycorp | ||||||||||||||||
Actual June 11, 2012 to December 31, 2012 (acquiree) | $ | 307,918 | $ | (338,347 | ) | $ | (344,173 | ) | $ | (3.21 | ) | |||||
Unaudited pro forma January 1, 2012 to December 31, 2012 (combined entity) | $ | 863,728 | $ | (463,716 | ) | $ | (473,249 | ) | $ | (4.53 | ) | |||||
Unaudited pro forma January 1, 2011 to December 31, 2011 (combined entity) | $ | 1,196,876 | $ | 241,903 | $ | 231,772 | $ | 2.66 | ||||||||
The unaudited pro forma amounts are not necessarily indicative of the operating results that would have occurred if the Molycorp Canada acquisition had taken place on January 1, 2011. The unaudited pro forma revenues, earnings and earnings per share of the combined entity above are adjusted: a) to eliminate the effect of sales and costs that occurred previous to the business combination between the Company and Molycorp Canada; b) to reflect the net incremental depreciation and amortization expense as a result of the allocation of the purchase price to certain depreciable and amortizable assets with useful lives ranging from two to 30 years; c) the tax effect of unaudited pro forma adjustments using the Molycorp federal, state and international statutory tax rates based on the applicable tax jurisdictions; and d) the estimated net increase of interest expense associated with the issuance of the Company's 10% Senior Secured Notes (as defined below) as part of the acquisition. The unaudited pro forma earnings of the combined entity for the year ended December 31, 2012 were also adjusted to exclude $115.2 million of non-recurring direct transaction costs. The weighted average number of shares outstanding utilized in the EPS basic calculation have been adjusted to reflect the additional shares issued pursuant to the acquisition of Molycorp Canada and the related Molibdenos y Metales S.A. equity financing further discussed in Note 16. | ||||||||||||||||
For the year ended December 31, 2012, the Company recognized approximately $62.0 million of transaction costs related to the Molycorp Canada acquisition in the consolidated statement of operations and comprehensive income as follows (in thousands): | ||||||||||||||||
Corporate development | ||||||||||||||||
Legal, accounting and advisory fees | $ | 16,498 | ||||||||||||||
Other expenses: | ||||||||||||||||
Contingent forward contract loss | $ | 37,589 | ||||||||||||||
Interest expense: | ||||||||||||||||
Bridge loan fee | $ | 7,937 | ||||||||||||||
Molycorp Silmet and MMA | ||||||||||||||||
The following table summarizes the purchase prices and opening balance sheets for the acquisition of 90.023% controlling interest in Molycorp Silmet on April 1, 2011 and of MMA on April 15, 2011 (in thousands): | ||||||||||||||||
(In thousands) | Molycorp Silmet | MMA | ||||||||||||||
April 1, 2011 | April 15, 2011 | |||||||||||||||
Purchase consideration: | ||||||||||||||||
Cash consideration | $ | 9,021 | $ | 17,500 | ||||||||||||
Fair value of Molycorp common stock issued | 72,653 | — | ||||||||||||||
Total purchase consideration | $ | 81,674 | $ | 17,500 | ||||||||||||
Fair values of the assets and liabilities acquired: | ||||||||||||||||
Cash | $ | 105 | $ | 6,395 | ||||||||||||
Accounts receivable and other current assets | 8,626 | 5,474 | ||||||||||||||
Inventory | 37,404 | 11,327 | ||||||||||||||
Property, plant and equipment, net | 63,393 | 4,512 | ||||||||||||||
Intangible assets subject to amortization | 2,669 | — | ||||||||||||||
Goodwill | 1,455 | 1,977 | ||||||||||||||
Liabilities | (19,974 | ) | (8,989 | ) | ||||||||||||
Deferred tax liabilities | — | (3,196 | ) | |||||||||||||
Long-term debt | (3,184 | ) | — | |||||||||||||
Noncontrolling interest | (8,820 | ) | — | |||||||||||||
Total purchase consideration | $ | 81,674 | $ | 17,500 | ||||||||||||
The fair value of the accounts receivable acquired includes trade receivables of $5.0 million for Molycorp Silmet and $4.9 million for MMA. These trade receivables were collected by December 31, 2011. Molycorp Silmet’s intangible assets subject to amortization relate primarily to customer relationships with a weighted average useful life of 15 years. Goodwill associated with the Molycorp Silmet acquisition arose primarily because of the acquired workforce. Goodwill associated with the MMA acquisition arose primarily because of the requirement to record a deferred tax liability for the difference between the assigned values and the tax basis of assets acquired and liabilities assumed at amounts that do not reflect fair value. The fair value of the noncontrolling interest in Molycorp Silmet as of April 1, 2011 was valued using a combination of the market approach and income approach. As of December 31, 2012, as a result of the goodwill recoverability test described at Note 9, the Company wrote-off all the goodwill related to the MMA acquisition. | ||||||||||||||||
The pro forma revenues, earnings and earnings per share of the Company had both acquisitions occurred on January 1, 2011, were as follows: | ||||||||||||||||
(In thousands, except per share amounts) | Revenues | Net Income | Net Income | EPS Basic | ||||||||||||
Attributable To | ||||||||||||||||
Molycorp | ||||||||||||||||
Unaudited pro forma January 1, 2011 to December 31, 2011 (combined entity) | $ | 430,305 | $ | 105,397 | $ | 104,590 | $ | 1.13 | ||||||||
Unaudited pro forma January 1, 2010 to December 31, 2010 (combined entity) | $ | 85,549 | $ | (30,920 | ) | $ | (31,329 | ) | $ | (0.50 | ) | |||||
The unaudited pro forma amounts are not necessarily indicative of the operating results that would have occurred if these acquisitions had taken place on January 1, 2011. The 2011 earnings of the combined entity were adjusted to exclude $69.1 million of intercompany sales, $28.0 million of intercompany earnings and $2.1 million of non-recurring acquisition-related costs the Company incurred to acquire Molycorp Silmet and MMA, and to reverse $1.1 million of purchase price variance MMA capitalized during the first quarter of 2011. | ||||||||||||||||
Molycorp Silmet | ||||||||||||||||
On April 1, 2011, Molycorp acquired 80% of the outstanding shares of Molycorp Silmet from AS Silmet Grupp in exchange for 1,593,419 shares of Molycorp common stock contractually valued at $80.0 million based on the average closing price of the Company’s common stock as reported by The New York Stock Exchange for the 20 consecutive trading days immediately preceding April 1, 2011, the acquisition date. | ||||||||||||||||
Generally, the acquisition-date fair value of shares of common stock transferred by the acquirer is the closing price of that stock on the same date adjusted by a discount that a market participant would require as a result of any restrictions on the sale or transferability of the stock. The fair value of common stock of $72.7 million disclosed in the table above is based on the closing price of the Company’s common stock on the acquisition date, net of an estimated discount of 23% that a market participant would require given that issuance of the shares of common stock Molycorp transferred in consideration to AS Silmet Grupp was not registered under the Securities Act of 1933 (the "Securities Act") and such shares were subject to certain lock-up provisions, which limited AS Silmet Grupp’s ability to sell these shares. AS Silmet Grupp retained a 9.977% ownership interest in Molycorp Silmet on the acquisition date; Molycorp acquired the other 10.023% from Treibacher Industrie AG for $9.0 million in cash also on April 1, 2011. | ||||||||||||||||
On October 24, 2011, the Company acquired the remaining 9.977% ownership interest in Molycorp Silmet for $10.0 million in cash, which resulted in an adjustment to Additional Paid-In Capital of $0.4 million for the difference between the consideration paid and the carrying value of the noncontrolling interest at October 24, 2011. | ||||||||||||||||
The Molycorp Silmet acquisition provided Molycorp with a European base of operations and increased the Company’s yearly REO production capacity by approximately 3,000 mt. Molycorp Silmet sources a portion of rare earth feed stocks for production of its products primarily from the Molycorp Mountain Pass facility. The main focus of Molycorp Silmet is on the production of REO and metals, including didymium metal, a critical component in the manufacture of NdFeB permanent rare earth magnets. Molycorp Silmet’s manufacturing operation is located in Sillamäe, Estonia. | ||||||||||||||||
MMA | ||||||||||||||||
On April 15, 2011, Molycorp completed the acquisition from Santoku Corporation (“Santoku”) of all the issued and outstanding shares of capital stock of Santoku America, Inc., which is now known as MMA, an Arizona-based corporation, in an all-cash transaction for $17.5 million. The acquisition provided Molycorp with access to certain intellectual properties relative to the development, processing and manufacturing of neodymium and samarium magnet alloy products. As part of the stock purchase agreement, Santoku will provide consulting services to Molycorp for the purpose of maintaining and enhancing the quality of MMA’s products. Molycorp and Santoku also entered into five-year marketing and distribution agreements for the sale and distribution of neodymium and samarium magnet alloy products produced by each party. Additionally, the parties entered into a rare earth products purchase and supply agreement through which MMA will supply Santoku with certain rare earth alloys for a two-year period at prices equal to the feedstock cost plus the applicable product premium as such terms are defined in the agreement. |
Accrued_Expenses
Accrued Expenses | 12 Months Ended | |||||||
Dec. 31, 2012 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Accrued Expenses | Accrued Expenses | |||||||
Accrued expenses at December 31, 2012 and 2011 consisted of the following (in thousands): | ||||||||
December 31, | ||||||||
2012 | 2011 | |||||||
Defined contribution plan | $ | 1,400 | $ | 1,088 | ||||
Professional fees | 4,971 | — | ||||||
Accrued payroll and related benefits | 7,532 | 3,024 | ||||||
Sales and use tax | 7,187 | 1,367 | ||||||
Bonus accrual | 3,503 | 4,845 | ||||||
Interest payable | 15,253 | 345 | ||||||
Advance from customer | 1,753 | — | ||||||
Withholding taxes | 2,929 | — | ||||||
Amount payable to noncontrolling shareholder | 9,640 | — | ||||||
Other accrued expenses | 4,845 | 2,229 | ||||||
Total accrued expenses | $ | 59,013 | $ | 12,898 | ||||
Asset_Retirement_Obligation
Asset Retirement Obligation | 12 Months Ended | |||||||
Dec. 31, 2012 | ||||||||
Asset Retirement Obligation Disclosure [Abstract] | ||||||||
Asset Retirement Obligation | Asset Retirement Obligation | |||||||
The following table presents the activity in the Company’s asset retirement obligation for the years ended December 31, 2012 and 2011 (in thousands): | ||||||||
December 31, | ||||||||
2012 | 2011 | |||||||
Balance at beginning of period | $ | 15,541 | $ | 12,471 | ||||
Obligations settled | (2,954 | ) | (1,030 | ) | ||||
Accretion expense | 1,299 | 955 | ||||||
Revisions in estimated cash flows | 7,872 | 2,508 | ||||||
Loss on settlement | 367 | 637 | ||||||
Balance at end of period | $ | 22,125 | $ | 15,541 | ||||
The balances above for the years ended December 31, 2012 and 2011 include a short-term portion of $3.5 million and $0.4 million, respectively, which were recorded under other current liabilities. Depreciation expense associated with the asset retirement cost was $2.0 million, $1.0 million and $1.1 million for the years ended December 31, 2012, 2011 and 2010, respectively. | ||||||||
During 2012, the Company increased its projected asset retirement obligation cash flows by approximately $7.9 million, of which $3.8 million related to the addition of new processing facilities at its Molycorp Mountain Pass facility and $4.1 million related to revised estimates for the demolition and reclamation of the old mill and mineral recovery areas at the same facility. In connection with new land disturbance and the construction of new infrastructures at its Molycorp Mountain Pass facility in 2011, the Company increased its projected asset retirement obligation cash flows by approximately $2.5 million. | ||||||||
The Company is required to provide the applicable governmental agencies with financial assurances relating to its closure and reclamation obligations. At December 31, 2012, the Company had financial assurance requirements of $28.7 million, which were satisfied with surety bonds placed with California state and regional agencies. |
Debt_and_Capital_Lease_Obligat
Debt and Capital Lease Obligations | 12 Months Ended | |||||||
Dec. 31, 2012 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt and Capital Lease Obligations | Debt and Capital Lease Obligations | |||||||
On August 22, 2012, the Company issued $360.0 million aggregate principal amount of its 6.00% Convertible Senior Notes due 2017 (the “6.00% Convertible Notes”). On August 28, 2012, the underwriters of the 6.00% Convertible Notes exercised their option to purchase an additional $54.0 million aggregate principal amount of the 6.00% Convertible Notes. Total net proceeds from the issuance of the 6.00% Convertible Notes were $395.7 million, after deducting the underwriting discounts and commissions. Certain of the Company's directors, officers and other related parties purchased $6.4 million of the aggregate principal amount of the 6.00% Convertible Notes, for which the Company did not pay any underwriting discounts and commissions. | ||||||||
The 6.00% Convertible Notes are Molycorp's senior unsecured obligations with interest payable semi-annually in arrears on March 1 and September 1 of each year, commencing on March 1, 2013. The 6.00% Convertible Notes will mature on September 1, 2017, unless earlier repurchased, redeemed or converted in accordance with their terms, and will be convertible at any time prior to the second scheduled trading day immediately preceding the maturity date into shares of common stock, cash, or a combination thereof, at Molycorp's election. The conversion rate will initially be 83.333 shares of common stock per $1,000 principal amount of 6.00% Convertible Notes (equivalent to an initial conversion price of approximately $12 per share of common stock), subject to customary adjustments. Molycorp will have the right to redeem the 6.00% Convertible Notes on or after September 1, 2015 if the last reported sale price of its common stock has been at least 130% of the conversion price then in effect for at least 20 trading days during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which Molycorp provides notice of redemption at a redemption price equal to 100% of the principal amount of the 6.00% Convertible Notes to be redeemed, plus accrued and unpaid interest. The 6.00% Convertible Notes rank equal in right of payment to existing and future liabilities that are not expressly subordinated to the 6.00% Convertible Notes, and rank effectively junior to Molycorp's existing and future secured indebtedness. The Company separately accounts for the liability and equity components of convertible debt instruments, such as the 6.00% Convertible Notes, that may be settled entirely or partially in cash upon conversion in a manner that reflects the issuer's economic interest cost. The additional discount on the liability component is amortized to interest cost over the term of the 6.00% Convertible Notes. The effective interest rate on the liability component is 4.6%. The equity component is included in the additional paid-in capital section of the statement of stockholders' equity and is treated as original issue discount for purposes of accounting for the debt component. At December 31, 2012, Molycorp recognized a liability component of $332.0 million, which includes accretion expense of $5.3 million related to both the underwriting discount and the additional discount on the liability component. The equity component was $68.7 million at December 31, 2012. Interest costs related to both the contractual interest coupon and the amortization of the discount on the liability component were $14.2 million in 2012, and were substantially capitalized. Transaction costs related to the issuance of the 6.00% Convertible Notes have been allocated to the liability and equity components in proportion to the allocation of proceeds to the components, and accounted for as debt issuance costs (recognized as interest expense over the life of the 6.00% Convertible Notes using the effective interest method) and equity issuance costs (charged against equity), respectively. | ||||||||
Concurrently with, and in order to facilitate the offering of the 6.00% Convertible Notes, the Company entered into a share lending agreement with Morgan Stanley Capital Services LLC (“MSCS”), an affiliate of Morgan Stanley & Co. LLC, under which it agreed to loan to MSCS up to a total of 13,800,000 shares of its common stock (the “Borrowed Shares”) during a period beginning on the date the Company entered into the share lending agreement and ending on or about the maturity date of the 6.00% Convertible Notes, or, if earlier, on or about the date as of which all of the 6.00% Convertible Notes cease to be outstanding as a result of redemption, repurchase, conversion or other acquisition for value. MSCS may terminate all or any portion of the Borrowed Shares at any time, and the Company and MSCS may terminate any or all of the outstanding Borrowed Shares upon a default by the other party under the share lending agreement, including certain breaches by MSCS of its representations and warranties, covenants or agreements under the share lending agreement, or the bankruptcy of Molycorp or MSCS. The Company issued a total of 13,800,000 Borrowed Shares between August 22, 2012 and August 23, 2012 and received no proceeds, but only a nominal lending fee from MSCS for the use of these loaned shares, which represented the fair value assigned to it. For corporate law purposes, the Borrowed Shares are issued and outstanding. However, under the share lending agreement, MSCS has agreed: to pay to Molycorp an amount equal to cash dividends, if any, that Molycorp pays on the Borrowed Shares; to pay or deliver, as the case may be, to the Company any other distribution, other than in a liquidation or a reorganization in bankruptcy, that the Company makes on the Borrowed Shares; and not to vote on the Borrowed Shares on any matter submitted to a vote of Molycorp's stockholders. In view of the contractual undertakings of MSCS in the share lending agreement, which have the effect of substantially eliminating the economic dilution that otherwise would result from the issuance of the Borrowed Shares, the Borrowed Shares will not be considered outstanding for the purpose of computing and reporting Molycorp's earnings per share. | ||||||||
On May 25, 2012, Molycorp issued $650.0 million aggregate principal amount of senior secured notes due 2020 (the "Senior Notes") in an offering exempt from the registration requirements of the Securities Act. Total net proceeds from the issuance of the Senior Notes were $635.4 million after deducting the initial purchasers' discounts. The Senior Notes bear interest at the rate of 10% per year payable on June 1 and December 1 of each year beginning on December 1, 2012. At any time and from time to time prior to June 1, 2016, the Company may redeem any of the Senior Notes at a price equal to 100% of the principal amount thereof plus an applicable make-whole premium and accrued and unpaid interest. At any time and from time to time from and after June 1, 2016, Molycorp may redeem the Senior Notes, in whole or in part, at a redemption price for the Senior Notes plus accrued and unpaid interest, initially at 105% of the principal amount thereof, but gradually declining to 100% of the principal amount thereof. In addition, at any time and from time to time prior to June 1, 2015, the Company may redeem up to 35% of the aggregate principal amount of the Senior Notes with the net cash proceeds of one or more permitted sales of Molycorp’s capital stock at a redemption price (expressed as a percentage of principal amount) of 110% plus accrued and unpaid interest. Upon the occurrence of a change of control, Molycorp will be required to offer to repurchase all of the Senior Notes. The Senior Notes are senior secured obligations of Molycorp and are guaranteed by certain of Molycorp’s domestic subsidiaries ("Guarantors"). The Senior Notes are secured by first-priority security interest on substantially all of the property and assets of the Company and the Guarantors, subject to some exceptions for certain "Excluded Assets," such as: | ||||||||
• | Leasehold interests in real property | |||||||
• | Certain capital leases that constitute permitted liens | |||||||
• | Certain motor vehicles | |||||||
• | Assets owned by foreign subsidiaries or, subject to certain limitations, MMA | |||||||
• | Assets with a fair market value of less than $15.0 million as to which the board of directors determine in good faith (and certify to the collateral agent) that the costs of obtaining or perfecting such security interest are excessive in relation to the practical benefit to the holder of the Notes of the security afforded thereby (based on the value of such asset) | |||||||
• | Cash collateral for letters of credit or hedging obligations (up to 105% of the underlying obligations) | |||||||
• | Certain deposit accounts | |||||||
• | The equity interests of immaterial subsidiaries and, subject to certain limitations, MMA | |||||||
• | Voting stock of foreign subsidiaries in excess of 65.0% of the voting stock | |||||||
• | Other pledges of stock of a guarantor to the extent that Rule 3-16 of Regulation S-X under the Securities Act would require the filing of separate financial statements of such guarantor. | |||||||
A substantial portion of the net proceeds from the offering of the Senior Notes was used to fund the cash consideration the Company paid for Molycorp Canada, with the remainder used for general corporate purposes. The Company and the Guarantor filed an exchange offer registration statement with the SEC on November 23, 2012, which was declared effective on February 7, 2013. | ||||||||
As a result of the Molycorp Canada acquisition, the Company assumed $230.0 million principal amount of subordinated unsecured convertible debentures of the predecessor of Molycorp Canada due December 2017 (the “Debentures”) maturing on December 31, 2017. The Debentures bear interest at 5.00% per annum and are convertible at $13.80 per share of Molycorp Canada's predecessor company. As required under the change of control provisions contained in the original underlying indenture, holders of the Debentures had the option to either require the Company to repurchase the Debentures at par plus accrued interest, convert the Debentures into common shares of Molycorp Canada's predecessor company, including a number of additional “make-whole” shares, or hold the Debentures to maturity. In August 2012, holders of $9.4 million aggregate principal amount of Debentures elected to convert, while holders of $217.9 million aggregate principal amount of Debentures elected to early redeem their Debentures for cash plus accrued interest. Under the term of the indenture governing the Debentures, as amended at the time of the Molycorp Canada acquisition, the holders of the Debenture that converted received, at their election and in lieu of receiving shares of Molycorp Canada's predecessor company, the same cash and/or share consideration that was paid to Molycorp Canada's former shareholders in connection with the acquisition of Molycorp Canada, subject to the same pro-ration calculation, as if such holders had converted immediately prior to the acquisition. As a result of the conversion, a total of $8.0 million, including accrued interest, was paid in cash with the remainder converted into 99,723 shares of Molycorp common stock. Total interest cost related to the Debentures for the period from June 12, 2012 to December 31, 2012 was approximately $2.3 million, inclusive of the interest accrued and paid upon the August 2012 repurchase. As of December 31, 2012, approximately $2.8 million principal amount of the Debentures remained outstanding. | ||||||||
Additional short-term indebtedness was assumed as part of the acquisition of Molycorp Canada totaling $37.9 million, at December 31, 2012, which relates to various bank loans maturing between January and June 2013 with a weighted average interest rate of approximately 3.68%. | ||||||||
On September 1, 2010, Molycorp and Kern River entered into a firm Transportation Service Agreement ("TSA") under which Kern River agreed to construct and operate facilities necessary to provide natural gas transportation services to the Mountain Pass facility. Under the terms of the TSA, Molycorp agreed to pay Kern River for the cost attributable to the design, permitting, and construction of the delivery facilities through a transportation service charge of approximately $0.4 million per month for ten years. This charge includes reimbursement to Kern River for construction of the delivery facilities and installation, as well as reimbursement and compensation for transportation services. The term of the TSA commenced on June 1, 2012, the date on which Kern River deemed the TSA facilities ready to provide service. The Company accounted for the TSA as a capital lease under the relevant accounting guidance. Future minimum lease payments were approximately $48.3 million, at December 31, 2012, in the aggregate, and will be $5.1 million in each of the five succeeding fiscal years, and $22.9 million thereafter. The aggregate amount of future minimum lease payments at December 31, 2012 included executory costs of $1.9 million and inputed interest of $30.9 million. | ||||||||
On June 15, 2011, the Company issued $230.0 million aggregate principal amount (net proceeds of $223.1 million after deducting the initial purchasers’ discounts and commissions) of its 3.25% Convertible Notes due 2016 (the “3.25% Convertible Notes”) in an offering exempt from the registration requirements of the Securities Act. The Notes are senior unsecured obligations of the Company and bear interest at a rate of 3.25% per annum, payable semi-annually in arrears on June 15 and December 15 of each year, commencing on December 15, 2011. The 3.25% Convertible Notes are convertible at any time into shares of Molycorp’s common stock, cash, or a combination thereof, at Molycorp’s election. The initial conversion rate is 14.0056 shares of Molycorp common stock per $1,000 principal amount of the 3.25% Convertible Notes (equivalent to an initial conversion price of approximately $71.40 per share of Molycorp’s common stock), subject to customary adjustments. The 3.25% Convertible Notes mature on June 15, 2016, unless repurchased or converted in accordance with their terms. Molycorp does not have the right to redeem the 3.25% Convertible Notes prior to maturity. The Company separately accounts for the liability and equity components of the 3.25% Convertible Notes. The additional discount on the liability component is amortized to interest cost over the term of the 3.25% Convertible Notes. The effective interest rate on the liability component is 3.95%. The equity component is included in the additional paid-in capital section of the statements of stockholders’ equity and treated as original issue discount. At December 31, 2012 and 2011, Molycorp recognized a liability component of $198.7 million and $190.9 million, respectively. These amounts include accretion expenses of $7.8 million and $3.7 million respectively, related to both the underwriting discounts and the additional discount on the liability component. The equity component was $36.2 million at December 31, 2012 and 2011, respectively. Interest costs related to both the contractual interest coupon and the amortization of the discount on the liability component of the 3.25% Convertible Notes were $15.3 million and $7.5 million for the year ended December 31, 2012 and 2011, respectively, and were substantially capitalized in both periods. Transaction costs related to the issuance of the 3.25% Convertible Notes have been allocated to the liability and equity components in proportion to the allocation of proceeds to the components, and accounted for as debt issuance costs and equity issuance costs, respectively. | ||||||||
The total amount of unused lines of credit was $50.5 million at December 31, 2012. | ||||||||
The following tables provide a summary of the current and non-current portions of the debt outstanding at December 31, 2012 and 2011 (in thousands): | ||||||||
December 31, 2012 | ||||||||
Current | Non-Current | |||||||
10% Senior Secured Notes, net of discount, due June 2020 | $ | — | $ | 636,111 | ||||
3.25% Convertible Notes, net of discount, due June 2016 | — | 198,689 | ||||||
5.00% Debentures, net of discount | — | 2,774 | ||||||
6.00% Convertible Notes, net of discount, due June 2017 | — | 331,977 | ||||||
Bank loans with a weighted average rate of 3.57% due January 2013 - September 2017 | 39,252 | 4,118 | ||||||
Total debt | 39,252 | 1,173,669 | ||||||
Capital lease obligations | 352 | 15,163 | ||||||
Total debt and capital lease obligations | $ | 39,604 | $ | 1,188,832 | ||||
December 31, 2011 | ||||||||
Current | Non-Current | |||||||
3.25% Convertible Notes, net of discount, due June 2016 | $ | — | $ | 190,877 | ||||
Bank loans 2.69% - 3.88% due February 2012 - September 2017 | 1,516 | 5,668 | ||||||
Total debt | $ | 1,516 | $ | 196,545 | ||||
Scheduled minimum debt repayments, excluding capital lease obligations, are $39.3 million in 2013, $1.5 million in 2014, $1.5 million in 2015, $230.8 million in 2016, $417.2 million in 2017 and $650.0 million thereafter. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
The Company’s net loss for the year ended December 31, 2012 included $295.9 million of impairment of goodwill and other intangible assets, which is a permanent difference between its loss for financial reporting and tax purposes. The Company had net deferred income tax liabilities of $150.9 million at December 31, 2012 primarily related to the purchase accounting adjustment associated with the Molycorp Canada acquisition. At December 31, 2012, the Company's management determined that a valuation allowance of $20.6 million was required. Furthermore, primarily due to the acquisition of Molycorp Canada, liabilities for uncertain tax positions increased by a net amount of $5.7 million in fiscal 2012. | ||||||||||||
For the years ended December 31, 2012, 2011, and 2010 our effective income tax rate was 10.3%, 19.5% and 0%, respectively. Our December 31, 2012 effective income tax rate was impacted primarily by the permanent difference between financial reporting and tax income for impairment of goodwill and other intangible assets, settlements related to uncertain tax positions, and the difference in income tax rates between the U.S. and foreign jurisdictions adjusted for the U.S. taxation of foreign profits. | ||||||||||||
The Company had undistributed earnings of certain foreign subsidiaries at December 31, 2012 for which deferred taxes of $32.6 million have been provided. Also, it had undistributed earnings of certain foreign subsidiaries at December 31, 2012, for which deferred taxes have not been provided. Such earnings are considered indefinitely invested in the foreign subsidiaries. If such earnings were repatriated, additional tax expense may result, although the calculation of such additional taxes is not practicable. | ||||||||||||
The net tax effect of the elimination in consolidation of intercompany balances and transactions resulted in a deferred charge and income tax payable of $9.4 million at December 31, 2012. | ||||||||||||
Income tax expense for the year ended December 31, 2010 was zero as a full valuation allowance was required. Income tax expense consisted of the following for the years ended December 31, 2012 and 2011(in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2012 | 2011 | |||||||||||
Current | ||||||||||||
Federal | $ | (22,418 | ) | $ | 18,721 | |||||||
Foreign | 8,994 | — | ||||||||||
State | (4,197 | ) | 6,952 | |||||||||
Total current | (17,621 | ) | 25,673 | |||||||||
Deferred | ||||||||||||
Federal | (20,786 | ) | 3,687 | |||||||||
Foreign | (11,777 | ) | — | |||||||||
State | (3,891 | ) | (784 | ) | ||||||||
Total deferred | (36,454 | ) | 2,903 | |||||||||
Total tax provision | $ | (54,075 | ) | $ | 28,576 | |||||||
The components of earnings before income taxes, by tax jurisdiction, were as follows for the years ended December 31, 2012, 2011 and 2010 (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
United States | $ | (161,129 | ) | $ | 141,801 | $ | (50,774 | ) | ||||
Foreign | (364,799 | ) | 5,109 | — | ||||||||
Total | $ | (525,928 | ) | $ | 146,910 | $ | (50,774 | ) | ||||
Income tax expense for the year ended December 31, 2010 was zero as a full valuation allowance was required. A reconciliation of the statutory federal income tax rate of 35% to Molycorp’s effective income tax rate is as follows for the years ended December 31, 2012 and 2011 (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2012 | 2011 | |||||||||||
Federal tax computed at the statutory rate | $ | (184,075 | ) | $ | 51,419 | |||||||
State taxes, net of federal benefit | (5,970 | ) | 5,255 | |||||||||
Change in valuation allowance | 19,515 | (22,730 | ) | |||||||||
Impairment of goodwill and other long-lived assets | 103,563 | — | ||||||||||
Acquisition costs | 4,945 | — | ||||||||||
Changes related to uncertain tax positions | (14,176 | ) | — | |||||||||
Federal and State tax credits | (6,817 | ) | (2,627 | ) | ||||||||
Domestic production activities deduction | 2,493 | (2,493 | ) | |||||||||
Foreign income tax rate differential adjusted for U.S. taxation of foreign profits (1) | 15,716 | (1,735 | ) | |||||||||
Deferred charges | 11,341 | — | ||||||||||
Other items, net | (610 | ) | 1,487 | |||||||||
Income tax expense | $ | (54,075 | ) | $ | 28,576 | |||||||
-1 | The “U.S. Taxation of foreign profits” represents the U.S. tax net of foreign tax credits associated with actual and deemed repatriations of earnings from the Company's non-U.S. subsidiaries. | |||||||||||
The tax effect of temporary differences and net operating losses, which give rise to deferred tax assets and liabilities, consisted of the following at December 31, 2012 and 2011 (in thousands): | ||||||||||||
At December 31, | ||||||||||||
2012 | 2011 | |||||||||||
Deferred tax assets: | ||||||||||||
Current: | ||||||||||||
Inventory | $ | 11,951 | $ | — | ||||||||
Other | 2,468 | 806 | ||||||||||
Total current | 14,419 | 806 | ||||||||||
Non-current: | ||||||||||||
Asset retirement obligation | 165 | 419 | ||||||||||
Mineral resources | 16,780 | 16,975 | ||||||||||
Intangible assets | 13,435 | — | ||||||||||
Stock compensation | 1,724 | 835 | ||||||||||
Net operating losses | 56,156 | 852 | ||||||||||
Research and energy tax credits | 10,473 | — | ||||||||||
Alternative Minimum Tax Credit | 1,611 | — | ||||||||||
Other | 823 | 116 | ||||||||||
Total non-current | 101,167 | 19,197 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Current | ||||||||||||
Inventory | 3,395 | 1,849 | ||||||||||
Other | 541 | 313 | ||||||||||
Total current | 3,936 | 2,162 | ||||||||||
Non-current: | ||||||||||||
Development costs | — | 217 | ||||||||||
Foreign subsidiary earnings and withholding taxes | 32,637 | — | ||||||||||
Property, plant and equipment and intangible assets | 137,010 | 3,647 | ||||||||||
Section 174 costs | 24,814 | 20,094 | ||||||||||
Convertible debt (Notes) | 40,478 | 14,138 | ||||||||||
Other | 6,966 | — | ||||||||||
Total non-current | 241,905 | 38,096 | ||||||||||
Net deferred taxes, before valuation allowance | (130,255 | ) | (20,255 | ) | ||||||||
Valuation allowance | (20,631 | ) | — | |||||||||
Total deferred tax | $ | (150,886 | ) | $ | (20,255 | ) | ||||||
At December 31, 2012, the Company had tax credit carryforwards of $12.1 million available to offset future income taxes. Of this amount, $1.6 million are available to carry forward indefinitely, while of the remaining $10.5 million, $3.1 million will expire in 2031 and $7.4 million will expire in 2032, if not utilized. | ||||||||||||
The U.S. federal tax loss carryforwards of $85.4 million, of which $29.8 million expires in 2024 and $55.6 million expires in 2032. The U.S. state tax loss carry forward of approximately $86.5 million will expire in 2031 and 2032. The federal loss carryforward is subject to examination by the tax authorities until three years after the carry forward is utilized while the state carryforward is subject to examination until four years after the carryforward is utilized. Additionally, the Company had approximately $96.7 million of tax loss carryforwards for controlled foreign corporations at December 31, 2012 with various expiration periods. | ||||||||||||
We conduct business in a country that grants “holidays” from income taxes for five- to ten-year periods. This “holiday” expires in 2020. The current operations in the tax “holiday” country have not resulted in aggregate income taxes and related earnings per share impacts as of December 31, 2012. | ||||||||||||
Each quarter the Company evaluates the liability for uncertain tax positions. As a result of the acquisition of Molycorp Canada on June 11, 2012, uncertain tax positions increased $20.1 million. However, due to a lapse of the applicable statute of limitations, which totaled to $1.4 million, and due to resolution with tax authorities for $13.7 million, some liabilities decreased. These decreases have been recorded as a discrete income tax benefit in the third quarter of 2012. As a result of the statute of limitations that expire in the next 12 months in various jurisdictions, and possible settlements of audit-related issues with taxing authorities in various jurisdictions, the Company believes that it is reasonably possible that the total amount of its net unrecognized income tax benefits will decrease by approximately $4.0 million to $6.0 million in the next 12 months and, if recognized, would affect the Company's effective income tax rate. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2012 | 2011 | |||||||||||
Balance, beginning of year | $ | 519 | $ | — | ||||||||
Tax position related to current year: | ||||||||||||
Additions | 4,737 | 519 | ||||||||||
Tax positions related to prior years: | ||||||||||||
Additions | 16,109 | — | ||||||||||
Settlements | (13,740 | ) | — | |||||||||
Statute of limitations closures | (1,406 | ) | — | |||||||||
Balance, end of year | $ | 6,219 | $ | 519 | ||||||||
The company operates and accordingly files income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions, as well as foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state, and non-U.S. income tax examinations by tax authorities for years prior to 2009. | ||||||||||||
The Company recognized accrued interest and penalties related to uncertain tax positions in income tax expense for the year ended December 31, 2012 and for the year ended December 31, 2011, as applicable. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2012 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity |
At December 31, 2012 and 2011, the Company had 138,773,538 and 83,896,043 shares of common stock outstanding, respectively, and 2,070,000 shares of 5.50% Series A Mandatory Convertible Preferred Stock (“Convertible Preferred Stock”) outstanding. | |
During the fourth quarter of 2012, the Company completed an acquisition of exploration rights for total consideration of $16.2 million, which was paid for by the issuance of 788,410 shares of common stock at $10.147 per share and a cash payment of $8.2 million. | |
Concurrently with the issuance of the 6.00% Convertible Notes discussed in Note 14, the Company issued a total of 13,800,000 shares of its common stock at a price to the public of $10.00 per share (the “Primary Shares”) in a separate underwritten public offering. The underwriters received a 6.00% fee in the form of an underwriter's discount for the Primary Shares plus a $1.5 million flat fee to the representative of the underwriters of the Primary Shares. Certain officers, directors and other related parties of the Company participated in offering of the Primary Shares by purchasing 7,090,000 of the total Primary Shares issued, but no underwriting fees were charged to the Company for the purchase by the insiders. | |
At the same time of the issuance of the 6.00% Convertible Notes and the Primary Shares, and as further discussed in Note 14, the Company entered into a share lending agreement with MSCS, pursuant to which it has agreed to loan to MSCS 13,800,000 shares of common stock. The Company received no proceeds from the Borrowed Shares, but only a nominal lending fee from MSCS for the use of these loaned shares. The Borrowed Shares are issued and outstanding for corporate law purposes. However, based on certain contractual undertakings of MSCS in the share lending agreement that have the effect of substantially eliminating the economic dilution that otherwise would result from the issuance of the Borrowed Shares, the Borrowed Shares will not be considered outstanding for the purpose of computing and reporting Molycorp's earnings per share. | |
As a result of the conversion of the Debentures, as further discussed in Note 14, a portion of the Debentures tendered was converted into 99,723 shares of Molycorp common stock. | |
In connection with of the acquisition of Molycorp Canada on June 11, 2012, Molycorp and MCP Exchangeco Inc. issued an aggregate of 13,545,426 shares of common stock and 507,203 Exchangeable Shares, the latter without par value, in consideration for that portion of the purchase price Molycorp paid to Molycorp Canada’s former shareholders who elected to receive shares of Molycorp common stock in addition to or in lieu of cash on the acquisition date. The $284.1 million fair value recorded in additional paid-in capital related to the issuance of acquisition consideration was based on the closing price of the Company’s common stock on June 11, 2012. As of December 31, 2012, 340,196 shares of the Exchangeable Shares had been converted into shares of Molycorp common stock. | |
On March 8, 2012, Molymet, the world’s largest processor of molybdenum and rhenium, headquartered in Santiago, Chile, purchased 12,500,000 shares of the Company’s common stock for $390.1 million, net of stock issuance costs of $0.1 million, at a purchase price of $31.218 per share, which price was determined based on the average daily volume weighted average price of the Company’s common stock on The New York Stock Exchange for the 20 consecutive trading days immediately preceding the date of the agreement, plus a 10% premium. Pursuant to this investment, Molymet acquired the right to nominate a member of the Company’s Board of Directors for so long as Molymet owns a certain percentage of the Company’s common stock. | |
On February 16, 2011, Molycorp completed a public offering of its 5.50% Series A Mandatory Convertible Preferred Stock (“Convertible Preferred Stock”), $0.001 par value per share. In connection with this offering, the Company issued 1,800,000 shares of Convertible Preferred Stock for $100.00 per share. In addition, Molycorp granted the underwriters an option to purchase up to 270,000 additional shares of Convertible Preferred Stock to cover over-allotments. The underwriters exercised their option to purchase the additional shares of Convertible Preferred Stock on March 16, 2011. Each share of the Convertible Preferred Stock will automatically convert on March 1, 2014 into between 1.6667 and 2.0000 shares of Molycorp’s common stock, subject to anti-dilution adjustments. At any time prior to March 1, 2014, holders may elect to convert each share of the Convertible Preferred Stock into shares of common stock at the minimum conversion rate of 1.6667 shares of common stock per share of Convertible Preferred Stock, subject to anti-dilution adjustments. Dividends on the Convertible Preferred Stock are payable on a cumulative basis when, as and if declared by the Board or an authorized committee of such Board, at an annual rate of 5.50% on the liquidation preference of $100.00 per share. The Company may pay declared dividends in cash, common stock or any combination of cash and common stock, subject to certain limitations, on March 1, June 1, September 1 and December 1 of each year, starting on June 1, 2011 and to, and including, March 1, 2014. The Convertible Preferred Stock is not redeemable. Molycorp received net proceeds from the Convertible Preferred Stock offering totaling $199.6 million after underwriter discounts and commissions and offering expenses paid by Molycorp. In February, May, August and November 2012, the Company declared a cash dividend of $1.375 per share on the Convertible Preferred Stock, respectively. The Company paid a total of $11.4 million and $9.0 million cash dividends in 2012 and 2011, respectively. |
Loss_Earnings_per_Share
(Loss) Earnings per Share | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
(Loss) Earnings per Share | (Loss) Earnings per Share | |||||||||||
For the years ended December 31, 2012 and 2011, the dividends on the Convertible Preferred Stock were subtracted from net (loss) income attributable to Molycorp stockholders for the purpose of computing the basic and diluted earnings per share. | ||||||||||||
Years Ended December 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
(In thousands, except share and per share amounts) | (Revised) | |||||||||||
Net (loss) income attributable to Molycorp stockholders | $ | (481,169 | ) | $ | 117,526 | $ | (50,774 | ) | ||||
Dividends on Convertible Preferred Stock | (11,385 | ) | (9,962 | ) | — | |||||||
(Loss) income attributable to common stockholders | (492,554 | ) | 107,564 | (50,774 | ) | |||||||
Weighted average common shares outstanding—basic | 107,064,892 | 83,454,221 | 62,332,054 | |||||||||
Basic (loss) earnings per share | $ | (4.60 | ) | $ | 1.29 | $ | (0.81 | ) | ||||
(Loss) income attributable to common stockholders | $ | (492,554 | ) | $ | 107,564 | $ | (50,774 | ) | ||||
Effect of dilutive 3.25% Convertible Notes | — | 413 | — | |||||||||
(Loss) income attributable to common stockholders adjusted for effect of dilution | (492,554 | ) | 107,977 | (50,774 | ) | |||||||
Weighted average common shares outstanding—diluted | 107,064,892 | 85,220,017 | 62,332,054 | |||||||||
Diluted (loss) earnings per share | $ | (4.60 | ) | $ | 1.27 | $ | (0.81 | ) | ||||
Diluted earnings per share reflect the dilutive impact of potential common stock and unvested restricted shares of common stock in the weighted average number of common shares outstanding during the period, if dilutive. For this purpose, the “treasury stock method” and “if-converted method,” as applicable, are used. | ||||||||||||
Under the treasury stock method, assumed proceeds upon the exercise of stock options are considered to be used to purchase common stock at the average market price of the shares during the period. Also under the treasury stock method, fixed awards and nonvested shares, such as restricted stock units, are deemed options for purposes of computing diluted earnings per share. At December 31, 2012, 2011 and 2010, all potential common stock under the treasury stock method were antidilutive in nature; consequently, the Company did not have any adjustments between earnings per share and diluted earnings per share related to stock options and restricted stock units. | ||||||||||||
In applying the if-converted method, conversion is not assumed for purposes of computing diluted earnings per share if the effect would be antidilutive. Convertible preferred stock (such as the Convertible Preferred Stock) is antidilutive whenever the amount of the dividend declared in or accumulated for the current period per common share obtainable on conversion, including the deemed dividend in the period from a beneficial conversion feature, exceeds basic earnings per share. The Convertible Preferred Stock was antidilutive at December 31, 2012 and 2011. | ||||||||||||
Also, under the if-converted method, convertible debt (such as the 3.25% Convertible Notes and the 6.00% Convertible Notes) is antidilutive whenever its interest per common share obtainable on conversion, including any deemed interest from a beneficial conversion feature and nondiscretionary adjustments, net of tax, exceeds basic earnings per share. At December 31, 2012, the 3.25% Convertible Notes and the 6.00% Convertible Notes were antidilutive. The 3.25% Convertible Notes were dilutive for the year ended December 31, 2011. Therefore, the shares of common stock obtainable on the assumed conversion of the 3.25% Convertible Notes, the interest expense and the amortization of discount, net of income tax, were included in the computation of diluted earnings per share for the year ended December 31, 2011. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||
Dec. 31, 2012 | |||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||
Stock-Based Compensation | Stock-Based Compensation | ||||||||||
Molycorp has stock-based compensation plans for executives, eligible employees and non-employee directors. Stock-based awards issued under these plans include stock options to purchase shares of the Company’s common stock, restricted stock awards (“RSAs”), restricted stock units (“RSUs”) and, starting in the first quarter of 2012, performance-based restricted stock units ("PBRSUs"). The remaining number of shares authorized for awards of equity share options or other equity instruments was 3,765,911 at December 31, 2012. | |||||||||||
Yearly amounts recognized in total for all stock-based awards were as follows (in millions): | |||||||||||
2012 | 2011 | 2010 | |||||||||
Compensation cost | $3.40 | $4.70 | $30.10 | ||||||||
Income tax benefit | $0.90 | $0.80 | 0 | ||||||||
Stock-based compensation in 2011 and 2010 included $2.6 million and $28.7 million, respectively, associated with the conversion into Molycorp's common stock of incentive shares granted to certain employees and independent directors of Molycorp LLC in 2009. | |||||||||||
RSAs, RSUs and PBRSUs | |||||||||||
The RSUs and RSAs vest on the third anniversary of the grant date. The grant-date fair value of RSUs and RSAs is determined using the Company’s common stock price on the date of grant and is recognized as stock-based compensation expense on a straight-line basis over the three-year vesting period for the awards that are expected to vest. The PBRSUs vest with respect to between 0% and 150% of the PBRSUs granted to an individual on the basis of the achievement of certain management objectives measured by specified levels of total shareholder return relative to a defined index group over the performance period from January 1, 2012 through December 31, 2014, or upon the occurrence of certain change of control or termination events. The grant-date fair value of PBRSUs is determined using a lattice approach that incorporates a Monte Carlo simulation model. The compensation cost associated with the PBRSUs is recognized straight-line over the performance period for the awards that are expected to vest, even if the market conditions are never satisfied. | |||||||||||
Some of the RSUs granted to the non-employee directors relate to the grantees' election to convert a portion of their quarterly cash retainer into RSUs. These converted RSUs are fully vested because they relate to services already rendered by the non-employee directors. The same non-employee directors who elected to convert their cash retainer into RSUs, received additional RSUs as matching contributions by the Company equal to 25% of the converted units. The matching RSUs vest on the third anniversary of the grant date. | |||||||||||
Certain other RSUs issued earlier in 2012 relate to the election by certain executive officers and other employees of the Company to convert a portion of their 2011 annual cash bonuses into RSUs. These RSUs are fully vested because they relate to services already rendered by the grantees. The conversion of the 2011 annual bonuses into RSUs resulted into an increase in Additional Paid-In Capital of $0.6 million in 2012. The same executive officers and other employees who elected to convert a portion of their 2011 annual cash bonuses into RSUs received additional RSUs as matching contribution by the Company equal to 25% of the converted RSUs. The matching RSUs vest on the third anniversary of the grant date. | |||||||||||
The following tables summarize the activity related to restricted stock-based awards for the year ended December 31, 2012: | |||||||||||
PBRSUs | Number of | Weighted Average | |||||||||
Shares | Grant-Date | ||||||||||
Price | |||||||||||
Unvested at January 1, 2012 | — | — | |||||||||
Granted | 45,576 | $ | 30.33 | ||||||||
Forfeited | (16,274 | ) | $ | 30.33 | |||||||
Vested | — | — | |||||||||
Unvested at December 31, 2012 | 29,302 | $ | 30.33 | ||||||||
RSUs | Number of | Weighted Average | |||||||||
Shares | Grant-Date | ||||||||||
Price | |||||||||||
Unvested at January 1, 2012 | 78,544 | $ | 56.55 | ||||||||
Granted | 239,618 | $ | 23.12 | ||||||||
Forfeited | (92,848 | ) | $ | 36.92 | |||||||
Vested* | (43,712 | ) | $ | 17.38 | |||||||
Unvested at December 31, 2012 | 181,602 | $ | 32.15 | ||||||||
* | Includes: a) deferral and conversion of a portion of fees payable to certain non-employee directors of the Company; b) deferral and conversion of a portion of the 2011 annual cash bonuses paid to certain executive officers and other employees of the Company; and c) RSUs with an accelerated vesting period that were granted to some employees of Molycorp Canada on the acquisition date. | ||||||||||
RSAs | Number of | Weighted Average | |||||||||
Shares | Grant-Date | ||||||||||
Price | |||||||||||
Unvested at January 1, 2012 | 48,924 | $ | 40.2 | ||||||||
Granted | — | — | |||||||||
Forfeited | (8,950 | ) | $ | 48.87 | |||||||
Vested | — | — | |||||||||
Unvested at December 31, 2012 | 39,974 | $ | 40.09 | ||||||||
Additional annual information for restricted stock-based awards is included in the following tables (in millions): | |||||||||||
PBRSUs | 2012 | 2011 | 2010 | ||||||||
Weighted average grant-date fair value of shares granted | $1.40 | n/a | n/a | ||||||||
Total fair value of shares vested | n/a | n/a | n/a | ||||||||
RSUs | 2012 | 2011 | 2010 | ||||||||
Weighted average grant-date fair value of shares granted | $5.50 | $4.50 | n/a | ||||||||
Total fair value of shares vested | $0.80 | $0.10 | n/a | ||||||||
RSAs | 2012 | 2011 | 2010 | ||||||||
Weighted average grant-date fair value of shares granted | n/a | $0.60 | $1.40 | ||||||||
Total fair value of shares vested | n/a | n/a | $1.40 | ||||||||
At December 31, 2012, there was $5.0 million of aggregate unrecognized compensation cost related to the unvested shares of RSAs, RSUs and PBRSUs. This cost is expected to be recognized over a weighted-average period of approximately 1.78 years. | |||||||||||
Stock Options | |||||||||||
Stock options vest in equal installments annually over a 3-year period and have a 10-year contractual term from the grant date. The fair value of each stock option award is estimated at the grant date using the Black-Scholes option pricing model and the Company’s common stock price on the date of grant. The significant assumptions used to estimate the fair value of stock option awards using the Black-Scholes model are as follows: | |||||||||||
2012 | 2011 | 2010 | |||||||||
Risk-free interest rate | n/a | 2.21% | n/a | ||||||||
Expected term (in years) | n/a | 6 | n/a | ||||||||
Volatility | n/a | 60.10% | n/a | ||||||||
Expected dividend yield | n/a | 0 | n/a | ||||||||
The risk-free interest rate used is the yield of a zero-coupon U.S. Treasury bond with a term equal to the expected term of the option. | |||||||||||
The expected term of options granted is usually derived from historical option exercise experience and expected post-vesting termination behavior. However, given that Molycorp does not have sufficient historical exercise and post-vesting data, management adopted the simplified method by reference to Staff Accounting Bulletin (“SAB”) Topic 14, Share-Based Payment, whereby the expected term of options granted can be calculated by using an average of the midpoint between when options become exercisable and when they expire. | |||||||||||
Expected volatility is generally based on a combination of 1) the historical volatility of an entity’s stock at the grant date for a period equal to the average expected term of the entity’s options, and 2) the volatility implied by the observed current market prices of an entity’s traded options or other convertible securities, if available. Given that Molycorp has been a publicly traded company only since July 29, 2010, management computed volatility assumptions based on a peer group analysis by reference to SAB Topic 14. | |||||||||||
The following table summarizes the activity related to stock options in 2012: | |||||||||||
Stock Options | Number of | Weighted Average | Weighted Average Remaining Contractual Term | Intrinsic Value | |||||||
Shares | Exercise Price | ||||||||||
Outstanding at January 1, 2012 | 52,819 | $ | 48.87 | ||||||||
Granted | — | — | |||||||||
Exercised | — | — | |||||||||
Forfeited and expired | (17,195 | ) | 48.87 | ||||||||
Outstanding at December 31, 2012 | 35,624 | $ | 48.87 | 4.04 | 0 | ||||||
Options exercisable at December 31, 2012 | 11,875 | $ | 48.87 | 4.04 | 0 | ||||||
Additional annual information for stock options is included in the following table (in millions): | |||||||||||
2012 | 2011 | 2010 | |||||||||
Weighted average grant-date fair value of options granted | n/a | $1.50 | $8.00 | ||||||||
Total intrinsic value of options exercised | n/a | n/a | $14.30 | ||||||||
Total fair value of options vested | $0.30 | n/a | $8.00 | ||||||||
At December 31, 2012, there was $0.4 million of unrecognized compensation cost related to stock options, which is expected to be recognized over a weighted-average period of approximately 1.04 years. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2012 | ||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies | |||||||||||||||||||
(a) | Future Operating Lease Commitments | |||||||||||||||||||
The Company has certain operating leases for office space, trailers and certain equipment. Remaining annual minimum payments under these leases at December 31, 2012 were as follows: | ||||||||||||||||||||
(In thousands) | Total | Less Than | 1 - 3 Years | 4 - 5 Years | More Than | |||||||||||||||
1 Year | 5 Years | |||||||||||||||||||
Operating lease obligations | $ | 9,076 | $ | 3,017 | $ | 4,668 | $ | 1,391 | $ | — | ||||||||||
Rent expense for office space, trailers and certain equipment in 2012, 2011 and 2010 was $4.1 million, $0.7 million and $0.5 million, respectively. | ||||||||||||||||||||
(b) | Purchase Commitments | |||||||||||||||||||
In connection with the Molycorp Mountain Pass facility modernization and expansion and future operations, the Company entered into contractual commitments for the purchase of materials and services from various vendors. As a result of the Molycorp Canada acquisition, the Company assumed other purchase obligations totaling $7.5 million at December 31, 2012, which are expected to be settled between 2013 and 2014. Future payments for all purchase commitments at December 31, 2012 were as follows: | ||||||||||||||||||||
(In thousands) | Total | Less Than | 1 - 3 Years | 4 - 5 Years | More Than | |||||||||||||||
1 Year | 5 Years | |||||||||||||||||||
Purchase obligations and other commitment | $ | 293,383 | $ | 265,727 | $ | 14,017 | $ | 7,131 | $ | 6,508 | ||||||||||
(c) | Labor Contract | |||||||||||||||||||
Certain Molycorp Mountain Pass facility employees are covered by a collective bargaining agreement with the United Steelworkers of America that expires on March 15, 2015. At December 31, 2012, 236 employees, or approximately 61% of the Company’s workforce at the Molycorp Mountain Pass facility, were covered by this collective bargaining agreement. | ||||||||||||||||||||
At December 31, 2012, 176 employees, or approximately 29% of the workforce at the Company’s Molycorp Silmet facility, were unionized employees. The contract with the labor union in Estonia was renewed in February 2012. | ||||||||||||||||||||
(d) | Reclamation Surety Bonds | |||||||||||||||||||
At December 31, 2012, Molycorp had placed $28.7 million of surety bonds with California state and regional agencies to secure its Mountain Pass facility closure and reclamation obligations. | ||||||||||||||||||||
(e) | Purported Class Action, Derivative Lawsuits and Investigation | |||||||||||||||||||
In February 2012, a purported class action lawsuit captioned, Angelo Albano, Individually and on Behalf of All Others Similarly Situated v. Molycorp, Inc., et al., was filed against the Company and certain of its executive officers in the U.S. District Court for the District of Colorado. This federal court action alleges, among other things, that the Company and those officers violated Section 10(b) of the Securities Exchange Act of 1934 in connection with statements relating to its third quarter fiscal 2011 financial results and fourth quarter 2011 production guidance that the Company had filed with or furnished to the SEC, or otherwise made available to the public. In July 2012, the plaintiffs filed an amended consolidated class action complaint against the Company, certain of its officers and directors, certain of its private equity investors, and certain underwriters involved in our public offerings in 2011. The amended complaint alleges, among other things, that some or all of the defendants violated Sections 10(b), 20(a) and 20A of the Securities Exchange Act of 1934 as well as Sections 11, 12(a)(2) and 15 of the Securities Act . The plaintiffs are seeking unspecified damages and other relief. In October 2012, the defendants filed a motion to dismiss all the claims in the amended complaint. The Company believes the allegations are without merit and that it has valid defenses to such allegations. The Company intends to defend this action vigorously. The Company is unable to provide meaningful quantification of how the final resolution of these claims may impact its future consolidated financial position or results of operations. | ||||||||||||||||||||
Seven stockholder derivative lawsuits have been filed in three different jurisdictions purportedly on behalf of Molycorp, Inc., against certain of its directors and officers, and certain of its private equity investors. These cases have been filed in the Delaware Court of Chancery, the U.S. District Court in Colorado, and the District Court in Arapahoe County, Colorado. They are captioned: Gaines v. Smith et al., Case No. 7282 (Del. Ch. Feb. 12, 2012); Paskowitz v. Smith et al., Case No. 7319 (Del. Ch. Mar. 9, 2012); Wilson v. Smith et al., No. 7395-VCN (Del. Ch. April 4, 2012); Wells v. Smith et al., No. 1:12-cv-00447-WJM (D. Colo. Feb. 21, 2012); Swaggerty v. Smith et al., No. 12-cv-00589-CMA-KLM (D. Colo. Mar. 7, 2012); Clem v. Smith et al., No. 12 CV 392 (Arapahoe Cnty., Colo. Feb. 24, 2012); and Nationwide Consulting, Inc. v. Smith et al., No. 12 CV 448 (Arapahoe Cnty., Colo. Mar. 5, 2012). The Clem and Nationwide cases, which were previously consolidated under the caption Clem v. Smith et al., No. 12 CV 392 (Arapahoe Cnty., Colo.), have been voluntarily dismissed without prejudice. The Wells and Swaggerty cases have both been dismissed without prejudice in favor of the lawsuits proceeding in the Delaware Court of Chancery. As a result, plaintiffs in the Wells and Swaggerty cases filed notices of appeal before the 10th Circuit. The defendants have filed a responsive brief in the 10th Circuit in the Wells and Swaggerty cases. The 10th Circuit case has been fully briefed by the parties. | ||||||||||||||||||||
The derivative cases have been consolidated and are proceeding in the Delaware Court of Chancery. In August 2012, a consolidated amended shareholder derivative complaint was filed with the Delaware Court of Chancery challenging, among other things, certain sales of stock by officers, directors and private equity firms, and certain Molycorp corporate acquisitions during 2011. The amended complaint asserts causes of action for: (1) alleged breaches of fiduciary duty, including the duties of loyalty and due care; (2) alleged breach of fiduciary duty not to trade on or misuse material non-public information; (3) alleged unjust enrichment; and (4) alleged aiding and abetting a breach of fiduciary duty against controlling stockholders. On behalf of Molycorp, the plaintiffs in the derivative actions seek, among other things, monetary damages, restitution, an accounting, and certain changes to corporate governance procedures. | ||||||||||||||||||||
In August 2012, the staff of the SEC notified the Company that a formal order of investigation had been issued regarding, among other things, the accuracy of the Company's public disclosures. The Company is cooperating with the staff of the SEC in connection with the investigation. The Company cannot predict the length, scope or results of the investigation or the impact, if any, of the investigation on the Company's results of operations. | ||||||||||||||||||||
On October 22, 2012, the defendants filed motions to dismiss and motions to stay the derivative case with the Delaware Court of Chancery. Defendants filed their opening briefs in support of the Motions to Stay on November 5, 2012. The parties agreed that all briefing on defendants' Motions to Dismiss should be stayed pending resolution of defendants' Motions to Stay. |
Concentrations
Concentrations | 12 Months Ended | |||||||
Dec. 31, 2012 | ||||||||
Risks and Uncertainties [Abstract] | ||||||||
Concentrations | Concentrations | |||||||
(a) | Products | |||||||
There were no significant sales by product during 2012 at the Resources segment. In prior periods, significant sales by product, as percentage of consolidated revenues, were as follows at the Resources segment: | ||||||||
2011 | 2010 | |||||||
Lanthanum products | 23 | % | 39 | % | ||||
Cerium products | 11 | % | 29 | % | ||||
Neodymium and Praseodymium products | 26 | % | 26 | % | ||||
The Chemicals and Oxides segment includes sales of REO, zirconium-based engineered materials and mixed rare earth/zirconium oxides from the Molycorp Canada acquisition on June 11, 2012, and REO from the Molycorp Silmet acquisition on April 1, 2011. Sales of cerium products within the Chemicals and Oxides segment accounted for approximately 15% of consolidated sales in 2012. | ||||||||
Within the Magnetic Materials and Alloys segment, sales of Neo Powders™ were approximately 25% of consolidated revenues for the period from June 12, 2012 to December 31, 2012. The Neo Powders™ were introduced into Molycorp's product mix with the Molycorp Canada acquisition. Sales of NdFeB alloys for the period from April 15, 2011 to December 31, 2011, were approximately 11% of consolidated revenues in the Magnetic Materials and Alloys segment. | ||||||||
(b) | Customers | |||||||
There were no significant sales to individual customers at the Resources segment in 2012. In prior periods, the Resources segment had the following sales by customers in excess of 15% of consolidated revenues (in millions): | ||||||||
2011 | 2010 | |||||||
Hitachi Metals Ltd. | $ | 92.2 | nm | |||||
Mitsubishi Unimetals USA | nm | $ | 8.5 | |||||
W.R. Grace & Co.—Conn. | nm | $ | 7.4 | |||||
Chuden Rare Earth Co. Ltd. | nm | $ | 5.4 | |||||
Shin-Etsu Chemical Co. | nm | $ | 4 | |||||
nm =ot material | ||||||||
Sales from the Magnetic Materials and Alloys segment to Santoku Corporation for the period from April 15, 2011 to December 31, 2011, were $48.8 million, or approximately 12% of the Company’s consolidated revenues. |
RelatedParty_Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2012 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions |
Transactions with Traxys North America LLC | |
The Company made principal payments of $3.1 million during fiscal 2011 under the inventory financing arrangement with Traxys North America LLC (“Traxys and affiliates”), a subsidiary of one of the Company’s stockholders, Traxys S.a.r.l. This arrangement expired in 2011.The outstanding amount payable to Traxys and affiliates under this arrangement was $0.9 million reported under Other current liabilities on the consolidated balance sheet at December 31, 2011. Molycorp also had an outstanding amount payable to Traxys and affiliates under the same arrangement of $2.8 million reported in Trade accounts payable at December 31, 2011 associated with product purchased from Traxys and affiliates in 2011. The Company made purchases of lanthanum oxide from Traxys and affiliates in the amount of $6.2 million in 2011. | |
The Company and Traxys and affiliates also jointly market and sell certain lanthanum oxide, cerium oxide, misch metal and erbium oxide products. Pursuant to the terms of this other arrangement, the Company and Traxys and affiliates split gross margin equally once all costs associated with the sale are recovered by both parties. The Company had an outstanding related party receivable from Traxys and affiliates in the amount of $0.2 million at December 31, 2011 and none in 2012. | |
At December 31, 2011, Molycorp had also a balance receivable from Traxys and affiliates of $2.1 million related to sales of tantalum metal to Traxys and affiliates of $3.2 million in 2011. There were no sales to and accounts receivable from Traxys and affiliates in 2012. | |
Transactions with Neo Material Technologies Inc. | |
During the period from January 1, 2012 to June 11, 2012, Molycorp sold neodymium/ praseodymium oxides for $4.3 million and heavy rare earths for $1.6 million to Neo Material Technologies, Inc. There were no sales between the companies in the comparative 2011 period. The related intercompany accounts receivable and payable were eliminated in consolidation. | |
Transactions with equity method investees: TMT, Keli and Ingal Stade | |
The Company supplies Neo Powders™ to TMT to produce rare earth magnetic compounds. Molycorp then purchases these compounds back from TMT in its normal course of business. Additionally, Keli processes rare earth oxides into metals for inclusion in the Neo Powders™. | |
For the period from June 12, 2012 to December 31, 2012, the Company sold $1.6 million of Neo Powders™ to TMT and purchased $2.8 million worth of compounds from TMT. | |
The Company purchased metals and received services from Keli for a total of $32.6 million for the period from June 12, 2012 to December 31, 2012. | |
Ingal Stade sells gallium to the Company's facilities located in Ontario, Canada and to some of its facilities in the United States. For the period from June 12, 2012 to December 31, 2012, the Company purchased $3.3 million of gallium metal from Ingal Stade. |
Net_Change_in_Operating_Assets
Net Change in Operating Assets and Liabilities | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
Net Change in Operating Assets and Liabilities | ||||||||||||
Net Change in Operating Assets and Liabilities | Net Change in Operating Assets and Liabilities | |||||||||||
Net change in operating assets and liabilities, net of the effects of acquisitions and dispositions, consisted of the following: | ||||||||||||
Years Ended December 31, | ||||||||||||
(In thousands) | 2012 | 2011 | 2010 | |||||||||
Decrease (increase) in operating assets: | ||||||||||||
Accounts receivable | $ | 124,983 | $ | (52,805 | ) | $ | (15,200 | ) | ||||
Inventory | (46,126 | ) | (64,543 | ) | (6,872 | ) | ||||||
Prepaid expenses and other assets | 33,520 | (6,363 | ) | 251 | ||||||||
Increase (decrease) in operating liabilities: | ||||||||||||
Accounts payable | (34,972 | ) | 16,233 | 3,797 | ||||||||
Income tax payable | (40,263 | ) | (17,832 | ) | — | |||||||
Interest payable | (40,792 | ) | — | — | ||||||||
Asset retirement obligation | (1,467 | ) | (1,030 | ) | (632 | ) | ||||||
Accrued expenses | (54,763 | ) | 6,151 | (1,481 | ) | |||||||
$ | (59,880 | ) | $ | (120,189 | ) | $ | (20,137 | ) |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
Supplemental Cash Flow Elements [Abstract] | ||||||||||||
Supplemental Cash Flow Information | Supplemental Cash Flow Information | |||||||||||
Years Ended December 31, | ||||||||||||
(In thousands) | 2012 | 2011 | 2010 | |||||||||
Net cash paid for: | ||||||||||||
Income taxes | $ | 178 | $ | 43,505 | — | |||||||
Interest, net of capitalized interest | $ | 8,942 | $ | 273 | — | |||||||
Non-cash financing activities and investing activities: | ||||||||||||
Change in accrued capital expenditures | $ | 52,189 | $ | 112,606 | $ | 5,510 | ||||||
Conversion of debt securities to equity securities | $ | 9,400 | — | — | ||||||||
Acquisition of exploration rights | $ | 8,000 | $ | — | — | |||||||
Debt assumed from business acquisitions | $ | 40,691 | $ | 3,184 | — | |||||||
Issuance of common stock for business acquisitions | $ | 284,100 | $ | 72,700 | — | |||||||
Fixed assets additions under capital lease | $ | 15,658 | — | — | ||||||||
Research_and_Development
Research and Development | 12 Months Ended |
Dec. 31, 2012 | |
Research and Development [Abstract] | |
Research and Development | Research and Development |
The Company invests significant resources to improve the efficiency of its REO processing operations, the development of new applications for individual rare earth elements and exploratory drilling. These costs consist primarily of salaries, outside labor, material and equipment. |
Derivative_Instruments
Derivative Instruments | 12 Months Ended | ||||||||||
Dec. 31, 2012 | |||||||||||
Fair Value Disclosures [Abstract] | |||||||||||
Derivative Instruments | Derivative Instruments | ||||||||||
Put Option | |||||||||||
As a result of the Molycorp Canada acquisition, the Company assumed a liability associated with the put option issued to holders of the noncontrolling interest of Buss & Buss, a business acquired by Molycorp Canada's predecessor company. The Buss & Buss put option relates to a share purchase agreement (“SPA”) between NMT Holding GmbH, a German subsidiary of the Company, and the shareholders of Buss & Buss entered into May 27, 2010 by Molycorp Canada's predecessor company. The SPA includes a call and a put option on shares of the remaining shareholder and his legal successors. If the call option is exercised by the Company, a premium is added to the consideration to purchase the underlying shares in Buss & Buss. If the put option is exercised by the remaining shareholder of Buss & Buss or his legal successors, a discount will reduce the cost basis of the securities sold to the Company. The Company does not account for this derivative as a hedge. The put option had a fair value of $7.8 million at December 31, 2012, recorded as "Derivative liability" in the consolidated balance sheet. The change in fair value of the put option resulted in an unrealized gain of $1.2 million for the period from June 12, 2012 to December 31, 2012, which was recognized in "Interest expense" in the consolidated statement of operations and comprehensive income. The technique Molycorp used to fair value this derivative is the income approach based on a discounted cash flow model. In addition to the risk free interest rate, which is a Level 1 input within the fair value hierarchy, the following significant unobservable Level 3 inputs were used to fair value the put option at December 31, 2012: | |||||||||||
Effect of 1% increase (a) | Effect of 1% decrease (a) | ||||||||||
Input | (In millions) | ||||||||||
Equity-risk premium | 6.5 | % | $ | (0.8 | ) | $ | 1 | ||||
Risk premium | 12.9 | % | $ | (0.4 | ) | $ | 0.4 | ||||
Size premium | 3.9 | % | $ | (0.4 | ) | $ | 0.5 | ||||
Growth rate | 1 | % | $ | 0.3 | $ | (0.3 | ) | ||||
(a) Assuming all other inputs are unchanged. | |||||||||||
Contingent Forward Contract | |||||||||||
On March 28, 2012, the Company entered into a contingent forward contract to purchase Canadian dollars with a notional amount of Cdn$870.0 million to manage the foreign currency exposure with respect to its planned acquisition of Molycorp Canada. The Company did not apply hedge accounting to this contingent forward contract. Upon settlement of this derivative on June 11, 2012 (Molycorp Canada acquisition date), the Company recognized a loss of $37.6 million in Other expense. Of this loss, $6.7 million was recognized during the three months ended March 31, 2012 and the remainder during the second quarter of 2012. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | |||||||||||||||
Dec. 31, 2012 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||
Employee Benefit Plans | Employee Benefit Plans | |||||||||||||||
Defined Contribution Retirement Plans | ||||||||||||||||
The Company maintains defined contribution retirement plans for all U.S. and Canadian salaried employees. | ||||||||||||||||
On September 1, 2011, the Company amended the eligibility requirement from a completed 90 days of services with the Company to eligibility commencing on the first of the month following hire date. The Company currently makes a non-elective contribution equal to 4% of compensation for each employee who performed at least 1000 hours of service and is employed on the last day of the year. In addition, the Company currently matches 100% of the first 3% contributed and 50% of the next 2% contributed by each eligible employee as well as an additional contribution of up to 4% which can be made at the Company’s discretion. Employees vest in Company contributions after 3 years of service. Expenses related to this plan totaled $1.6 million, $1.6 million and $1.2 million for the years ended December 31, 2012, 2011 and 2010, respectively. Accrued expenses at December 31, 2012 and 2011 included $1.4 million and $1.1 million related to this plan, respectively. | ||||||||||||||||
Management Incentive Plan (“MIP”) | ||||||||||||||||
On April, 1 2009, the Company established the MIP, which is a nonqualified deferred compensation plan for the purpose of providing deferred compensation benefits for certain members of management. Under the MIP, participants can defer their base salary and other compensation that is supplemental to his or her base salary and is dependent upon achievement of individual or Company performance goals. It is intended that the MIP constitute an unfunded plan for purposes of the Employee Retirement Income Securities Act of 1974, as amended. The amount of compensation or awards deferred is deemed to be invested in a hypothetical investment as of the date of deferral. During the years ended December 31, 2012 and 2011, the Company funded discretionary contributions to the MIP totaling $0.4 million and $0.3 million, respectively. In addition, total accrued amount including employee deferrals, discretionary contributions and related earnings was approximately $0.9 million and $0.5 million as of December 31, 2012 and 2011, respectively. | ||||||||||||||||
Bonus Plan | ||||||||||||||||
On November 4, 2010, the Compensation Committee established an annual incentive (“bonus plan”) for all employees that is discretionary in nature. The bonus plan is performance based and includes both qualitative and quantitative criteria. For the years ended December 31, 2012 and 2011, the Company accrued $3.5 million and $4.8 million, respectively. | ||||||||||||||||
Defined Benefit Pension Plan and Other Post-Retirement Benefits | ||||||||||||||||
In accordance with the terms of the Arrangement Agreement, the Company maintained the terms of the benefit plans for Molycorp Canada’s current and former employees. Molycorp Canada's predecessor company had a defined benefit pension plan (“Pension Plan”), which covered all hourly employees employed as of September 30, 1995, and all hourly employees subsequently hired by Molycorp Canada's predecessor company up to 2003 at its former U.S. manufacturing facility in Anderson, Indiana. A December 31 measurement date is used for the Pension Plan. | ||||||||||||||||
The Company also maintained the terms of Molycorp Canada postretirement medical and life insurance benefits plan for certain employees from the Anderson, Indiana manufacturing facility. The measurement date for this postretirement benefit plan (“PBP”) is December 31. The actuarial valuation for funding purposes of the Pension Plan and PBP is January 1 of each year. | ||||||||||||||||
The following table sets forth the details of the change in the benefit obligation and plan assets for the Pension Plan and the PBP from June 12, 2012 (the beginning of the Molycorp Canada's reporting period) to December 31, 2012 (in thousands): | ||||||||||||||||
Pension Plan | PBP | Total | ||||||||||||||
Change in benefit obligation: | ||||||||||||||||
At June 12, 2012 | $ | 7,975 | $ | 238 | $ | 8,213 | ||||||||||
Service cost | — | — | — | |||||||||||||
Interest cost | 176 | 11 | 187 | |||||||||||||
Net actuarial loss (gain) | 820 | (25 | ) | 795 | ||||||||||||
Benefits paid | (270 | ) | (7 | ) | (277 | ) | ||||||||||
At December 31, 2012 | $ | 8,701 | $ | 217 | $ | 8,918 | ||||||||||
Change in plan assets: | ||||||||||||||||
Fair value of plan assets at June 12, 2012 | $ | 5,379 | $ | — | $ | 5,379 | ||||||||||
Actual return on plan assets | 262 | — | 262 | |||||||||||||
Employer contribution | 255 | 7 | 262 | |||||||||||||
Benefits paid | (270 | ) | (7 | ) | (277 | ) | ||||||||||
Fair value of plan assets at December 31, 2012 | $ | 5,626 | $ | — | $ | 5,626 | ||||||||||
Underfunded status at December 31, 2012 | $ | (3,075 | ) | $ | (217 | ) | $ | (3,292 | ) | |||||||
The total unfunded status was recognized in the consolidated balance sheet at December 31, 2012 as a long-term "Pension liability". The accumulated benefit obligation for the Pension Plan equates the benefit obligation at December 31, 2012 because there are no new active service participants in the Pension Plan. The Company recognized an actuarial loss, net of income taxes, of $1.2 million in "Accumulated Other Comprehensive Loss" at December 31, 2012. The actuarial net loss for the Pension Plan that will be amortized from "Accumulated Other Comprehensive Loss" into net periodic benefit cost during 2013 is estimated to be $0.3 million. Prior service cost included in "Accumulated Other Comprehensive Loss" was nominal at December 31, 2012. | ||||||||||||||||
The Company's total contribution to the Pension Plan and PBP is expected to be approximately $0.1 million in 2013. The Company's estimate of future benefit payments related to both plans is as follows (in thousands): | ||||||||||||||||
2013 | $ | 500 | ||||||||||||||
2014 | 500 | |||||||||||||||
2015 | 500 | |||||||||||||||
2016 | 500 | |||||||||||||||
2017 | 500 | |||||||||||||||
2018-2022 | 2,500 | |||||||||||||||
The components of the net periodic pension expense for the period from June 12, 2012 to December 31, 2012 for the Pension Plan and PBP are set forth below (in thousands): | ||||||||||||||||
Pension Plan | PBP | Total | ||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||
Service Cost | $ | — | $ | — | $ | — | ||||||||||
Interest cost | 176 | 11 | 187 | |||||||||||||
Expected return on plan assets | (267 | ) | — | (267 | ) | |||||||||||
Amortization of transition obligation/(asset) | — | — | — | |||||||||||||
Amortization of prior service cost | — | (4 | ) | (4 | ) | |||||||||||
Amortization of actuarial loss | 228 | (7 | ) | 221 | ||||||||||||
Net periodic benefit cost | $ | 137 | $ | — | $ | 137 | ||||||||||
Weighted average significant actuarial assumptions used in measuring the Company's benefit obligation and net periodic benefit cost for its Pension Plan and PBP were as follows at December 31, 2012: | ||||||||||||||||
Pension Plan | PBP | |||||||||||||||
Assumptions for benefit obligation: | ||||||||||||||||
Discount rate | 3.7 | % | 3.5 | % | ||||||||||||
Rate of compensation increase* | — | % | — | % | ||||||||||||
Initial medical trend rate (pre65/post65) | n/a | 7.3 | % | |||||||||||||
Ultimate medical trend rate (pre65/post65) | n/a | 4.5 | % | |||||||||||||
Year ultimate rate reached (pre65/post65) | n/a | 2028 | ||||||||||||||
Assumptions for net periodic benefit cost: | ||||||||||||||||
Discount rate | 4.5 | % | 4.55 | % | ||||||||||||
Expected return on plan assets | 5 | % | n/a | |||||||||||||
Rate of compensation increase* | — | % | — | % | ||||||||||||
Initial medical trend rate (pre65/post65) | n/a | 9.3%/7.4% | ||||||||||||||
Ultimate medical trend rate (pre65/post65) | n/a | 4.5 | % | |||||||||||||
* No assumption was made with regard to the rate of expected compensation increase as there are no new active service participants in the plan. | ||||||||||||||||
The assumed discount rate is based on benchmark yields of high-quality corporate bonds denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating the terms of the pension liability. | ||||||||||||||||
The effect of a one-percentage point increase or decrease in the assumed heath care cost trend rates for the PBP were as follows at December 31, 2012 (in thousands): | ||||||||||||||||
PBP | ||||||||||||||||
Effect of 1% increase in assumed health care cost trend rates: | ||||||||||||||||
Total of service and interest cost components | $ | 1 | ||||||||||||||
Post-employment benefit obligation | $ | 16 | ||||||||||||||
Effect of 1% decrease in assumed health care cost trend rates: | ||||||||||||||||
Total of service and interest cost components | $ | (1 | ) | |||||||||||||
Post-employment benefit obligation | $ | (14 | ) | |||||||||||||
The expected rate of return on plan assets was based on a weighted average of expected returns of the various assets in the Pension Plan. Such returns were determined in part using a historical analysis and in part by predicting future returns in a study that looks at assets allocation, risk-free interest rates, yields on long-term high-quality bonds, price earnings ratios of major stock indexes and projected inflation rates. | ||||||||||||||||
The investment policies for the Pension Plan are established by a pension asset investment committee (the "Committee") that meets periodically to review the asset allocation percentages and investment goals of the Pension Plan. The most relevant investment theme set forth by the Committee is to reduce undue exposure to equity market fluctuations while providing for long-term appreciation of the funds invested. At December 31, 2012, the Committee established the following target asset allocation percentages for the Pension Plan: | ||||||||||||||||
Pension Plan | ||||||||||||||||
Min | Max | |||||||||||||||
Interest-bearing cash | 5 | % | 10 | % | ||||||||||||
Fixed income securities | 50 | % | 80 | % | ||||||||||||
Equity securities | 20 | % | 30 | % | ||||||||||||
The Pension Plan's assets consisted of the following at December 31, 2012: | ||||||||||||||||
Pension Plan | ||||||||||||||||
Interest-bearing cash | 2.33 | % | ||||||||||||||
Fixed income securities | 74.34 | % | ||||||||||||||
Equity securities | 23.33 | % | ||||||||||||||
Fair Value Measurements of Pension Plan Assets | ||||||||||||||||
Interest-bearing cash consists of money market fund investments in interest-bearing cash are stated at cost, which approximate fair value. Fixed income securities include U.S. government bonds, domestic and foreign corporate bonds and fixed income mutual funds, which are valued using market inputs such as broker/dealer quotes, reported trades and benchmark yields. Equity securities of corporations are valued at the closing price reported on the active stock market where the selected securities are traded. | ||||||||||||||||
The fair value of the Pension Plan assets segregated by the input level within the fair value hierarchy established under GAAP, were as follows at December 31, 2012 (in thousands): | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Pension Plan assets, at fair value: | ||||||||||||||||
Interest-bearing cash | $ | 130 | $ | — | $ | — | $ | 130 | ||||||||
Fixed income securities | 291 | 3,899 | — | 4,190 | ||||||||||||
Equity securities | 1,306 | — | — | 1,306 | ||||||||||||
Total Pension Plan assets | $ | 1,727 | $ | 3,899 | $ | — | $ | 5,626 | ||||||||
Subsidiary_Guarantor_Financial
Subsidiary Guarantor Financial Information | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2012 | ||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||
Subsidiary Guarantor Financial Information | Subsidiary Guarantor Financial Information | |||||||||||||||||||
The Senior Notes are jointly, severally and unconditionally guaranteed by all of Molycorp, Inc.'s existing and future domestic material subsidiaries, as defined in the indenture governing the Senior Notes. The Senior Notes guarantee of a guarantor will automatically terminate, and the obligations of such guarantor under the Senior Notes guarantee will be unconditionally released and discharged, upon (all terms as defined in the indenture governing the Senior Notes): | ||||||||||||||||||||
-1 | any sale, exchange, transfer or other disposition of a majority of the capital stock of (including by way of consolidation or merger) such guarantor by Molycorp or any restricted subsidiary to any person or persons, as a result of which such guarantor is no longer a direct or indirect subsidiary of Molycorp; | |||||||||||||||||||
-2 | any sale, exchange, transfer or other disposition of all or substantially all assets of such guarantor that results in such guarantor having no assets; | |||||||||||||||||||
-3 | the designation by Molycorp of such guarantor as an unrestricted subsidiary; or | |||||||||||||||||||
-4 | defeasance or discharge of the Senior Notes; | |||||||||||||||||||
provided that any such event occurs in accordance with all other applicable provisions of the indenture. | ||||||||||||||||||||
Presented below are the condensed consolidating financial statements of Molycorp, Inc. (“Parent”) as issuer, its combined guarantor subsidiaries and its combined non-guarantor subsidiaries, which are presented as an alternative to providing separate financial statements for the guarantors. The accounts of the Parent, the guarantor and non-guarantor subsidiaries are presented using the equity method of accounting for investments in subsidiaries for purposes of these condensed consolidating financial statements only. Certain of the prior periods separate financial information has been reclassified to conform to the presentation of the most recent period herein disclosed. | ||||||||||||||||||||
At December 31, 2012 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Condensed Consolidating Balance Sheets | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Molycorp, Inc. consolidated | |||||||||||||||
(Revised) | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 16,560 | $ | 18,020 | $ | 193,210 | $ | — | $ | 227,790 | ||||||||||
Trade accounts receivable, net | — | 7,738 | 44,692 | — | 52,430 | |||||||||||||||
Inventory | — | 49,416 | 237,960 | — | 287,376 | |||||||||||||||
Deferred charges | — | 2,203 | 7,209 | — | 9,412 | |||||||||||||||
Deferred tax assets | — | — | 11,731 | (1,942 | ) | 9,789 | ||||||||||||||
Income tax receivable | — | 25,087 | — | — | 25,087 | |||||||||||||||
Prepaid expenses and other current assets | — | 9,085 | 12,709 | — | 21,794 | |||||||||||||||
Total current assets | 16,560 | 111,549 | 507,511 | (1,942 | ) | 633,678 | ||||||||||||||
Non-current assets: | ||||||||||||||||||||
Deposits | 1,752 | 24,862 | 155 | — | 26,769 | |||||||||||||||
Property, plant and equipment, net | — | 1,377,147 | 167,157 | — | 1,544,304 | |||||||||||||||
Inventory | — | 26,096 | — | — | 26,096 | |||||||||||||||
Intangible assets, net | — | 508 | 450,430 | — | 450,938 | |||||||||||||||
Investments | — | 45,241 | 18,795 | 64,036 | ||||||||||||||||
Deferred tax assets | 6,030 | — | — | (6,030 | ) | — | ||||||||||||||
Goodwill | — | — | 239,742 | — | 239,742 | |||||||||||||||
Investments in consolidated subsidiaries | 883,319 | 97,960 | — | (981,279 | ) | — | ||||||||||||||
Intercompany accounts receivable | 1,539,877 | 207,035 | 794 | (1,747,706 | ) | — | ||||||||||||||
Other non-current assets | — | 885 | 6,087 | — | 6,972 | |||||||||||||||
Total non-current assets | 2,430,978 | 1,779,734 | 883,160 | (2,735,015 | ) | 2,358,857 | ||||||||||||||
Total assets | $ | 2,447,538 | $ | 1,891,283 | $ | 1,390,671 | $ | (2,736,957 | ) | $ | 2,992,535 | |||||||||
Current liabilities: | ||||||||||||||||||||
Trade accounts payable | $ | — | $ | 191,769 | $ | 50,225 | $ | — | $ | 241,994 | ||||||||||
Accrued expenses | 14,872 | 10,087 | 34,054 | — | 59,013 | |||||||||||||||
Income tax payable | — | — | 15,267 | — | 15,267 | |||||||||||||||
Deferred tax liabilities | — | 1,942 | — | (1,942 | ) | — | ||||||||||||||
Debt and capital lease obligations | — | 352 | 39,252 | — | 39,604 | |||||||||||||||
Other current liabilities | — | 3,539 | — | — | 3,539 | |||||||||||||||
Total current liabilities | 14,872 | 207,689 | 138,798 | (1,942 | ) | 359,417 | ||||||||||||||
Non-current liabilities: | ||||||||||||||||||||
Asset retirement obligation | — | 18,586 | — | — | 18,586 | |||||||||||||||
Deferred tax liabilities | — | 23,130 | 143,575 | (6,030 | ) | 160,675 | ||||||||||||||
Debt and capital lease obligations | 1,166,777 | 15,163 | 6,892 | — | 1,188,832 | |||||||||||||||
Derivative liability | — | — | 7,816 | — | 7,816 | |||||||||||||||
Pension liabilities | — | — | 3,292 | — | 3,292 | |||||||||||||||
Intercompany accounts payable | 49,843 | 1,577,363 | 120,500 | (1,747,706 | ) | — | ||||||||||||||
Other non-current liabilities | — | 1,102 | 1,557 | — | 2,659 | |||||||||||||||
Total non-current liabilities | 1,216,620 | 1,635,344 | 283,632 | (1,753,736 | ) | 1,381,860 | ||||||||||||||
Total liabilities | $ | 1,231,492 | $ | 1,843,033 | $ | 422,430 | $ | (1,755,678 | ) | $ | 1,741,277 | |||||||||
Stockholders’ equity: | ||||||||||||||||||||
Common stock | 139 | — | — | — | 139 | |||||||||||||||
Preferred stock | 2 | — | — | — | 2 | |||||||||||||||
Additional paid-in capital | 1,691,429 | 149,857 | 1,283,863 | (1,433,720 | ) | 1,691,429 | ||||||||||||||
Accumulated other comprehensive loss | (9,433 | ) | — | (9,433 | ) | 9,433 | (9,433 | ) | ||||||||||||
(Deficit) retained earnings | (466,091 | ) | (101,607 | ) | (341,401 | ) | 443,008 | (466,091 | ) | |||||||||||
Total Molycorp stockholders’ equity | 1,216,046 | 48,250 | 933,029 | (981,279 | ) | 1,216,046 | ||||||||||||||
Noncontrolling interests | — | — | 35,212 | — | 35,212 | |||||||||||||||
Total stockholders’ equity | 1,216,046 | 48,250 | 968,241 | (981,279 | ) | 1,251,258 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,447,538 | $ | 1,891,283 | $ | 1,390,671 | $ | (2,736,957 | ) | $ | 2,992,535 | |||||||||
At December 31, 2011 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Condensed Consolidating Balance Sheets | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Molycorp, Inc. consolidated | |||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 407,446 | $ | 10,758 | $ | 651 | $ | — | $ | 418,855 | ||||||||||
Trade accounts receivable, net | — | 58,619 | 12,060 | — | 70,679 | |||||||||||||||
Inventory | — | 52,246 | 59,697 | — | 111,943 | |||||||||||||||
Deferred charges | — | 7,318 | — | — | 7,318 | |||||||||||||||
Prepaid income taxes | — | 10,514 | — | — | 10,514 | |||||||||||||||
Prepaid expenses and other current assets | — | 17,845 | 1,890 | — | 19,735 | |||||||||||||||
Total current assets | 407,446 | 157,300 | 74,298 | — | 639,044 | |||||||||||||||
Non-current assets: | ||||||||||||||||||||
Deposits | 1,751 | 21,362 | 173 | — | 23,286 | |||||||||||||||
Property, plant and equipment, net | — | 500,612 | 61,016 | — | 561,628 | |||||||||||||||
Inventory | — | 4,362 | — | — | 4,362 | |||||||||||||||
Intangible assets, net | — | 573 | 2,499 | — | 3,072 | |||||||||||||||
Investments | — | 20,000 | — | — | 20,000 | |||||||||||||||
Goodwill | — | 1,977 | 1,455 | — | 3,432 | |||||||||||||||
Investments in consolidated subsidiaries | 150,510 | 118,879 | — | (269,389 | ) | — | ||||||||||||||
Intercompany accounts receivable | 476,711 | 25,870 | — | (502,581 | ) | — | ||||||||||||||
Other non-current assets | — | 301 | — | — | 301 | |||||||||||||||
Total non-current assets | 628,972 | 693,936 | 65,143 | (771,970 | ) | 616,081 | ||||||||||||||
Total assets | $ | 1,036,418 | $ | 851,236 | $ | 139,441 | $ | (771,970 | ) | $ | 1,255,125 | |||||||||
Current liabilities: | ||||||||||||||||||||
Trade accounts payable | $ | — | $ | 139,408 | $ | 22,179 | $ | — | $ | 161,587 | ||||||||||
Accrued expenses | 311 | 11,072 | 1,515 | — | 12,898 | |||||||||||||||
Deferred tax liabilities | — | 1,356 | — | — | 1,356 | |||||||||||||||
Debt | — | — | 1,516 | — | 1,516 | |||||||||||||||
Short-term borrowings-related party | — | 870 | — | — | 870 | |||||||||||||||
Current portion of asset retirement obligation | — | 396 | — | — | 396 | |||||||||||||||
Total current liabilities | 311 | 153,102 | 25,210 | — | 178,623 | |||||||||||||||
Non-current liabilities: | ||||||||||||||||||||
Asset retirement obligation | — | 15,145 | — | — | 15,145 | |||||||||||||||
Deferred tax liabilities | — | 18,899 | — | — | 18,899 | |||||||||||||||
Debt | 190,877 | — | 5,668 | — | 196,545 | |||||||||||||||
Intercompany accounts payable | — | 489,180 | 13,401 | (502,581 | ) | — | ||||||||||||||
Other non-current liabilities | — | 683 | — | — | 683 | |||||||||||||||
Total non-current liabilities | 190,877 | 523,907 | 19,069 | (502,581 | ) | 231,272 | ||||||||||||||
Total liabilities | $ | 191,188 | $ | 677,009 | $ | 44,279 | $ | (502,581 | ) | $ | 409,895 | |||||||||
Stockholders’ equity: | ||||||||||||||||||||
Common stock | 84 | — | — | — | 84 | |||||||||||||||
Preferred stock | 2 | — | — | — | 2 | |||||||||||||||
Additional paid-in capital | 838,547 | 149,857 | 91,158 | (241,015 | ) | 838,547 | ||||||||||||||
Accumulated other comprehensive loss | (8,481 | ) | — | (8,481 | ) | 8,481 | (8,481 | ) | ||||||||||||
Retained earnings | 15,078 | 24,370 | 12,485 | (36,855 | ) | 15,078 | ||||||||||||||
Total stockholders’ equity | 845,230 | 174,227 | 95,162 | (269,389 | ) | 845,230 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,036,418 | $ | 851,236 | $ | 139,441 | $ | (771,970 | ) | $ | 1,255,125 | |||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Molycorp, Inc. consolidated | |||||||||||||||
(Revised) | ||||||||||||||||||||
Revenues | $ | — | $ | 139,257 | $ | 415,165 | $ | (25,512 | ) | $ | 528,910 | |||||||||
Costs of sales: | ||||||||||||||||||||
Costs excluding depreciation and amortization | — | (153,461 | ) | (352,706 | ) | 25,512 | (480,655 | ) | ||||||||||||
Depreciation and amortization | — | (12,094 | ) | (18,816 | ) | — | (30,910 | ) | ||||||||||||
Gross profit | — | (26,298 | ) | 43,643 | — | 17,345 | ||||||||||||||
Operating expenses: | ||||||||||||||||||||
Selling, general and administrative | 46 | (86,493 | ) | (27,222 | ) | — | (113,669 | ) | ||||||||||||
Corporate development | (46 | ) | (19,750 | ) | — | — | (19,796 | ) | ||||||||||||
Depreciation, amortization and accretion | — | (2,220 | ) | (19,995 | ) | — | (22,215 | ) | ||||||||||||
Research and development | — | (12,984 | ) | (14,812 | ) | — | (27,796 | ) | ||||||||||||
Impairment of goodwill and other long-lived assets | — | (5,747 | ) | (296,008 | ) | — | (301,755 | ) | ||||||||||||
Operating loss | — | (153,492 | ) | (314,394 | ) | — | (467,886 | ) | ||||||||||||
Other (expense) income: | ||||||||||||||||||||
Other expense | (37,589 | ) | (328 | ) | (881 | ) | — | (38,798 | ) | |||||||||||
Foreign exchange (losses) gains, net | — | — | 2,872 | — | 2,872 | |||||||||||||||
Interest income (expense), net | (18,118 | ) | (3,496 | ) | (502 | ) | — | (22,116 | ) | |||||||||||
Interest income (expense) from intercompany notes | 25,157 | 3,152 | (28,309 | ) | — | — | ||||||||||||||
Equity earnings from consolidated subsidiaries | (456,649 | ) | (23,205 | ) | — | 479,854 | — | |||||||||||||
(487,199 | ) | (23,877 | ) | (26,820 | ) | 479,854 | (58,042 | ) | ||||||||||||
Loss before income taxes and equity earnings | (487,199 | ) | (177,369 | ) | (341,214 | ) | 479,854 | (525,928 | ) | |||||||||||
Income tax benefit | 6,030 | 53,840 | (5,795 | ) | 54,075 | |||||||||||||||
Equity in results of affiliates | — | (2,439 | ) | (1,051 | ) | (3,490 | ) | |||||||||||||
Net loss | (481,169 | ) | (125,968 | ) | (348,060 | ) | 479,854 | (475,343 | ) | |||||||||||
Net income attributable to noncontrolling interest | — | — | (5,826 | ) | — | (5,826 | ) | |||||||||||||
Net loss attributable to Molycorp stockholders | $ | (481,169 | ) | $ | (125,968 | ) | $ | (353,886 | ) | $ | 479,854 | $ | (481,169 | ) | ||||||
Net loss | $ | (481,169 | ) | $ | (125,968 | ) | $ | (348,060 | ) | $ | 479,854 | $ | (475,343 | ) | ||||||
Other comprehensive income: | ||||||||||||||||||||
Foreign currency translation adjustments | — | — | (952 | ) | (952 | ) | ||||||||||||||
Comprehensive loss | $ | (481,169 | ) | $ | (125,968 | ) | $ | (349,012 | ) | $ | 479,854 | $ | (476,295 | ) | ||||||
Comprehensive loss attributable to: | ||||||||||||||||||||
Molycorp stockholders | (481,169 | ) | (125,968 | ) | (343,186 | ) | 479,854 | (470,469 | ) | |||||||||||
Noncontrolling interest | (5,826 | ) | (5,826 | ) | ||||||||||||||||
$ | (481,169 | ) | $ | (125,968 | ) | $ | (349,012 | ) | $ | 479,854 | $ | (476,295 | ) | |||||||
Year Ended December 31, 2011 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Molycorp, Inc. consolidated | |||||||||||||||
Revenues | $ | — | $ | 365,490 | $ | 100,398 | $ | (69,057 | ) | $ | 396,831 | |||||||||
Costs of sales: | ||||||||||||||||||||
Costs excluding depreciation and amortization | — | (158,951 | ) | (74,457 | ) | 69,057 | (164,351 | ) | ||||||||||||
Depreciation and amortization | — | (9,411 | ) | (4,128 | ) | — | (13,539 | ) | ||||||||||||
Gross profit | — | 197,128 | 21,813 | — | 218,941 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Selling, general and administrative | (7 | ) | (48,296 | ) | (2,454 | ) | — | (50,757 | ) | |||||||||||
Corporate development | — | (5,912 | ) | — | — | (5,912 | ) | |||||||||||||
Depreciation, amortization and accretion | — | (1,378 | ) | (310 | ) | — | (1,688 | ) | ||||||||||||
Research and development | — | (7,718 | ) | — | — | (7,718 | ) | |||||||||||||
Operating (loss) income | (7 | ) | 133,824 | 19,049 | — | 152,866 | ||||||||||||||
Other (expense) income: | ||||||||||||||||||||
Other expense | — | (153 | ) | — | — | (153 | ) | |||||||||||||
Foreign exchange losses, net | — | — | (5,415 | ) | — | (5,415 | ) | |||||||||||||
Interest (expense) income, net | (499 | ) | 248 | (137 | ) | — | (388 | ) | ||||||||||||
Interest income (expense) from intercompany notes | 424 | (296 | ) | (128 | ) | — | — | |||||||||||||
Equity earnings from consolidated subsidiaries | 117,608 | 12,485 | — | (130,093 | ) | — | ||||||||||||||
117,533 | 12,284 | (5,680 | ) | (130,093 | ) | (5,956 | ) | |||||||||||||
Income before income taxes | 117,526 | 146,108 | 13,369 | (130,093 | ) | 146,910 | ||||||||||||||
Income tax expense | — | (28,500 | ) | (76 | ) | — | (28,576 | ) | ||||||||||||
Net income | 117,526 | 117,608 | 13,293 | (130,093 | ) | 118,334 | ||||||||||||||
Net income attributable to noncontrolling interest | — | — | (808 | ) | — | (808 | ) | |||||||||||||
Net income attributable to Molycorp stockholders | $ | 117,526 | $ | 117,608 | $ | 12,485 | $ | (130,093 | ) | $ | 117,526 | |||||||||
Net income | $ | 117,526 | $ | 117,608 | $ | 13,293 | $ | (130,093 | ) | $ | 118,334 | |||||||||
Other comprehensive income: | ||||||||||||||||||||
Foreign currency translation adjustments | — | — | (8,481 | ) | — | (8,481 | ) | |||||||||||||
Comprehensive income (loss) | $ | 117,526 | $ | 117,608 | $ | 4,812 | $ | (130,093 | ) | $ | 109,853 | |||||||||
Comprehensive income (loss) attributable to: | ||||||||||||||||||||
Molycorp stockholders | 117,526 | 117,608 | 4,427 | (130,093 | ) | 109,468 | ||||||||||||||
Noncontrolling interest | — | — | 385 | — | 385 | |||||||||||||||
$ | 117,526 | $ | 117,608 | $ | 4,812 | $ | (130,093 | ) | $ | 109,853 | ||||||||||
Year Ended December 31, 2010 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Condensed Consolidating Statements of Operations | Parent | Guarantor Subsidiaries | Eliminations | Molycorp, Inc. consolidated | ||||||||||||||||
Revenues | $ | — | $ | 35,157 | $ | — | $ | 35,157 | ||||||||||||
Costs of sales: | ||||||||||||||||||||
Costs excluding depreciation and amortization | — | (28,797 | ) | — | (28,797 | ) | ||||||||||||||
Depreciation and amortization | — | (5,694 | ) | — | (5,694 | ) | ||||||||||||||
Gross profit | — | 666 | — | 666 | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||
Selling, general and administrative | (436 | ) | (44,739 | ) | — | (45,175 | ) | |||||||||||||
Depreciation, amortization and accretion | — | (1,231 | ) | — | (1,231 | ) | ||||||||||||||
Research and development | — | (2,338 | ) | — | (2,338 | ) | ||||||||||||||
Impairment of long-lived assets | — | (3,100 | ) | — | (3,100 | ) | ||||||||||||||
Operating loss | (436 | ) | (50,742 | ) | — | (51,178 | ) | |||||||||||||
Other (expense) income: | ||||||||||||||||||||
Other income | — | 155 | — | 155 | ||||||||||||||||
Interest income, net | 249 | — | — | 249 | ||||||||||||||||
Equity earnings from consolidated subsidiaries | (50,587 | ) | — | 50,587 | — | |||||||||||||||
$ | (50,338 | ) | $ | 155 | $ | 50,587 | $ | 404 | ||||||||||||
Net loss | $ | (50,774 | ) | $ | (50,587 | ) | $ | 50,587 | $ | (50,774 | ) | |||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Molycorp, Inc. consolidated | |||||||||||||||
(Revised) | ||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (13,207 | ) | $ | (112,386 | ) | $ | 35,958 | $ | — | $ | (89,635 | ) | |||||||
Cash flows from investing activities: | ||||||||||||||||||||
Cash paid in connection with acquisitions, net of cash acquired | — | — | (591,011 | ) | — | (591,011 | ) | |||||||||||||
Loans to subsidiaries | (683,063 | ) | — | — | 683,063 | — | ||||||||||||||
Loans to Parent | — | (37,589 | ) | — | 37,589 | — | ||||||||||||||
Intercompany advances made | (1,009,014 | ) | — | — | 1,009,014 | — | ||||||||||||||
Repayments from subsidiaries | 87,824 | — | — | (87,824 | ) | — | ||||||||||||||
Investment in subsidiaries | (350,000 | ) | — | — | 350,000 | — | ||||||||||||||
Notes receivable to non-guarantor | — | (227,512 | ) | — | 227,512 | — | ||||||||||||||
Repayments of notes receivable from non-guarantor | — | 110,000 | — | (110,000 | ) | — | ||||||||||||||
Investment in joint ventures | — | (27,680 | ) | (5,364 | ) | — | (33,044 | ) | ||||||||||||
Deposits | — | (3,999 | ) | — | — | (3,999 | ) | |||||||||||||
Capital expenditures | — | (766,951 | ) | (24,518 | ) | — | (791,469 | ) | ||||||||||||
Acquisition of exploration rights | — | — | (8,167 | ) | — | (8,167 | ) | |||||||||||||
Other investing activities | — | — | 4,761 | — | 4,761 | |||||||||||||||
Net cash (used in) provided by investing activities | (1,954,253 | ) | (953,731 | ) | (624,299 | ) | 2,109,354 | (1,422,929 | ) | |||||||||||
Cash flows provided from financing activities: | ||||||||||||||||||||
Capital contributions from stockholder | 390,093 | — | — | — | 390,093 | |||||||||||||||
Capital contributions from Parent | — | — | 350,000 | (350,000 | ) | — | ||||||||||||||
Repayments of debt | (870 | ) | (227,838 | ) | — | (228,708 | ) | |||||||||||||
Net proceeds from sale of common stock | 132,130 | — | — | — | 132,130 | |||||||||||||||
Issuance of 10% Senior Secured Notes | 635,373 | — | — | — | 635,373 | |||||||||||||||
Issuance of 6.00% Convertible Notes | 395,712 | — | — | — | 395,712 | |||||||||||||||
Payments of preferred dividends | (11,385 | ) | — | — | — | (11,385 | ) | |||||||||||||
Dividend paid to noncontrolling interests | — | (5,977 | ) | — | (5,977 | ) | ||||||||||||||
Proceeds from debt | — | — | 14,699 | — | 14,699 | |||||||||||||||
Borrowings from parent | — | 227,512 | 455,551 | (683,063 | ) | — | ||||||||||||||
Repayments of borrowings to parent | — | (34,327 | ) | (53,497 | ) | 87,824 | — | |||||||||||||
Borrowing from guarantor | 37,589 | — | 227,512 | (265,101 | ) | — | ||||||||||||||
Repayments of borrowings to guarantor | — | — | (110,000 | ) | 110,000 | — | ||||||||||||||
Intercompany advances owed | — | 881,179 | 127,835 | (1,009,014 | ) | — | ||||||||||||||
Other financing activities | (2,938 | ) | (115 | ) | 1,499 | — | (1,554 | ) | ||||||||||||
Net cash provided by (used in) financing activities | 1,576,574 | 1,073,379 | 779,784 | (2,109,354 | ) | 1,320,383 | ||||||||||||||
Effect of exchange rate changes on cash | — | — | 1,116 | — | 1,116 | |||||||||||||||
Net change in cash and cash equivalents | (390,886 | ) | 7,262 | 192,559 | — | (191,065 | ) | |||||||||||||
Cash and cash equivalents at beginning of the period | 407,446 | 10,758 | 651 | — | 418,855 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 16,560 | $ | 18,020 | $ | 193,210 | $ | — | $ | 227,790 | ||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Molycorp, Inc. consolidated | |||||||||||||||
Net cash provided by (used in) operating activities | $ | 903 | $ | 44,211 | $ | (2,149 | ) | $ | — | $ | 42,965 | |||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Cash paid in connection with acquisitions, net of cash acquired | — | (30,128 | ) | 105 | — | (30,023 | ) | |||||||||||||
Cash paid to acquire non-marketable securities | — | (20,000 | ) | — | — | (20,000 | ) | |||||||||||||
Loans to subsidiaries | (49,430 | ) | — | — | 49,430 | — | ||||||||||||||
Intercompany advances made | (290,633 | ) | — | — | 290,633 | — | ||||||||||||||
Deposits | 16,449 | (13,552 | ) | — | — | 2,897 | ||||||||||||||
Capital expenditures | — | (294,010 | ) | (8,170 | ) | — | (302,180 | ) | ||||||||||||
Other investing activities | — | 16 | (100 | ) | — | (84 | ) | |||||||||||||
Net cash provided by (used in) investing activities | (323,614 | ) | (357,674 | ) | (8,165 | ) | 340,063 | (349,390 | ) | |||||||||||
Cash flows provided from financing activities: | ||||||||||||||||||||
Repayments of short-term borrowings—related party | — | (3,150 | ) | — | — | (3,150 | ) | |||||||||||||
Repayments of debt | — | — | (4,428 | ) | — | (4,428 | ) | |||||||||||||
Net proceeds from sale of preferred stock | 199,642 | — | — | — | 199,642 | |||||||||||||||
Net proceeds from sale of Convertible Notes | 223,100 | — | — | — | 223,100 | |||||||||||||||
Payments of preferred dividends | (9,015 | ) | — | — | — | (9,015 | ) | |||||||||||||
Proceeds from debt | — | — | 5,131 | — | 5,131 | |||||||||||||||
Intercompany advances owed | — | 290,001 | 632 | (290,633 | ) | — | ||||||||||||||
Net borrowings from parent | — | 37,370 | 12,060 | (49,430 | ) | — | ||||||||||||||
Net cash provided by financing activities | 413,727 | 324,221 | 13,395 | (340,063 | ) | 411,280 | ||||||||||||||
Effect of exchange rate changes on cash | — | — | (2,430 | ) | — | (2,430 | ) | |||||||||||||
Net change in cash and cash equivalents | 91,016 | 10,758 | 651 | — | 102,425 | |||||||||||||||
Cash and cash equivalents at beginning of the period | 316,430 | — | — | — | 316,430 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 407,446 | $ | 10,758 | $ | 651 | $ | — | $ | 418,855 | ||||||||||
Year Ended December 31, 2010 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | Parent | Guarantor Subsidiaries | Eliminations | Molycorp, Inc. consolidated | ||||||||||||||||
Net cash (used in) provided by operating activities | $ | (187 | ) | $ | (28,530 | ) | $ | — | $ | (28,717 | ) | |||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Investment in consolidated subsidiary | (15,000 | ) | — | 15,000 | — | |||||||||||||||
Deposits | (18,200 | ) | (8,000 | ) | — | (26,200 | ) | |||||||||||||
Capital expenditures | — | (33,129 | ) | — | (33,129 | ) | ||||||||||||||
Intercompany advances made | (43,931 | ) | — | 43,931 | — | |||||||||||||||
Other investing activities | — | (102 | ) | — | (102 | ) | ||||||||||||||
Net cash used in investing activities | (77,131 | ) | (41,231 | ) | 58,931 | (59,431 | ) | |||||||||||||
Cash flows provided from financing activities: | ||||||||||||||||||||
Capital contributions from original stockholders | 15,000 | — | — | 15,000 | ||||||||||||||||
Capital contributions from parent company | — | 15,000 | (15,000 | ) | — | |||||||||||||||
Repayments of short-term borrowings—related party | — | (1,107 | ) | — | (1,107 | ) | ||||||||||||||
Net proceeds from sale of common stock in conjunction with initial public offering | 378,633 | — | — | 378,633 | ||||||||||||||||
Proceeds from short-term borrowings—related party | — | 5,008 | — | 5,008 | ||||||||||||||||
Intercompany advances owed | — | 43,931 | (43,931 | ) | — | |||||||||||||||
Other financing activities | 115 | — | — | 115 | ||||||||||||||||
Net cash provided by financing activities | 393,748 | 62,832 | (58,931 | ) | 397,649 | |||||||||||||||
Net change in cash and cash equivalents | 316,430 | (6,929 | ) | — | 309,501 | |||||||||||||||
Cash and cash equivalents at beginning of the period | — | 6,929 | — | 6,929 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 316,430 | $ | — | $ | — | $ | 316,430 | ||||||||||||
At December 31, 2012, a cash flow classification error in the previously presented 2011 and 2010 cash flow statements was identified for advances received by Guarantor and Non-Guarantor Subsidiaries from the Parent. To correct the error, the Company determined a change in the presentation of advances received by the Guarantor and Non-Guarantor Subsidiaries was required to present borrowings from the Parent to the Guarantor of $290.0 million in 2011 and $43.9 million in 2010 and from the Parent to the Non-Guarantor Subsidiaries of $0.6 million in 2011 as a financing activity in their cash flow statements, rather than as an investing activity as previously presented to conform to the guidance outlined in ASC 230. This guidance states that proceeds from borrowings should be reflected as a financing activity. The impact of these revisions is not material to the related financial statements taken as a whole. The revised change in presentation to appropriately reflect these borrowings as financing activities in 2011 and 2010 is outlined below. | ||||||||||||||||||||
Guarantor Subsidiaries | As reported | Adjustment | Revised | |||||||||||||||||
2011 | (In thousands) | |||||||||||||||||||
Intercompany advances made | $ | 290,001 | $ | (290,001 | ) | — | ||||||||||||||
Net cash used in investing activities | $ | (67,673 | ) | $ | (290,001 | ) | $ | (357,674 | ) | |||||||||||
Intercompany advances owed | — | $ | 290,001 | $ | 290,001 | |||||||||||||||
Net cash provided by financing activities | $ | 34,220 | $ | 290,001 | $ | 324,221 | ||||||||||||||
2010 | (In thousands) | |||||||||||||||||||
Intercompany advances made | $ | 43,931 | $ | (43,931 | ) | — | ||||||||||||||
Net cash used in investing activities | $ | 2,700 | $ | (43,931 | ) | $ | (41,231 | ) | ||||||||||||
Intercompany advances owed | — | $ | 43,931 | $ | 43,931 | |||||||||||||||
Net cash provided by financing activities | $ | 18,901 | $ | 43,931 | $ | 62,832 | ||||||||||||||
Non-Guarantor Subsidiaries | As reported | Adjustment | Revised | |||||||||||||||||
2011 | (In thousands) | |||||||||||||||||||
Intercompany advances made | $ | 632 | $ | (632 | ) | — | ||||||||||||||
Net cash used in investing activities | $ | (7,533 | ) | $ | (632 | ) | $ | (8,165 | ) | |||||||||||
Intercompany advances owed | $ | — | $ | 632 | 632 | |||||||||||||||
Net cash provided by financing activities | $ | 12,763 | $ | 632 | $ | 13,395 | ||||||||||||||
2010 | ||||||||||||||||||||
Net cash used in investing activities | — | — | — | |||||||||||||||||
Net cash provided by financing activities | — | — | — | |||||||||||||||||
The Company will revise the September 30, 2012 unaudited condensed consolidated financial statements to reflect the revisions discussed above in the Quarterly Report to be filed on Form 10-Q for the quarter ended September 30, 2013. | ||||||||||||||||||||
In this Form 10-K/A, the Company corrected a classification error for the year ended December 31, 2012 between Parent and Guarantor Subsidiaries related to the loss of $37.6 million recognized upon settlement on June 11, 2012 of the contingent forward contract the Company entered into in connection with the Molycorp Canada acquisition. See Note 25 for further details on this contingent forward contract. In the original Form 10-K filed on March 18, 2013, the loss of $37.6 million was presented under the Guarantor Subsidiaries because the cash to settle the loss was wired from a bank account of Molycorp Minerals LLC, which is one of the Guarantor Subsidiaries. However, since the cash to settle the contingent forward contract was actually funded by Molycorp, Inc., or Parent, through an intercompany transaction, and Parent was the party that signed the contingent forward contract, the loss should be presented under Parent. The correction of this classification error also had an impact on the presentation of the income tax benefit, deferred taxes, income tax payable and cash flows from operating, investing and financing activities within the subsidiary guarantor financial information. The impact of these revisions is not material to the Company's financial statements taken as a whole. The tables below illustrate the changes in the presentation of the subsidiary guarantor financial information in 2012 to correctly reflect the forward contract loss between Parent and Guarantor Subsidiaries, as well as to reflect the revision of the consolidated financial statements in connection with the final allocation of the consideration transferred to the net assets of Molycorp Canada. | ||||||||||||||||||||
Parent | As reported | Adjustment | Revised | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||
Other expense | $ | — | $ | (37,589 | ) | $ | (37,589 | ) | ||||||||||||
Income tax (expense) benefit | $ | (8,630 | ) | $ | 14,660 | $ | 6,030 | |||||||||||||
Equity earnings from consolidated subsidiaries | $ | (447,963 | ) | $ | (8,686 | ) | $ | (456,649 | ) | |||||||||||
Net loss | $ | (449,554 | ) | $ | (31,615 | ) | $ | (481,169 | ) | |||||||||||
Net cash provided by (used in) operating activities | $ | 24,382 | $ | (37,589 | ) | $ | (13,207 | ) | ||||||||||||
Borrowing from guarantor | $ | — | $ | 37,589 | $ | 37,589 | ||||||||||||||
Net cash provided by financing activities | $ | 1,538,985 | $ | 37,589 | $ | 1,576,574 | ||||||||||||||
At December 31, 2012 | ||||||||||||||||||||
Deferred tax assets (non-current) | $ | — | $ | 6,030 | $ | 6,030 | ||||||||||||||
Investments in consolidated subsidiaries | $ | 891,625 | $ | (8,306 | ) | $ | 883,319 | |||||||||||||
Intercompany accounts receivable | $ | 1,567,255 | $ | (27,378 | ) | $ | 1,539,877 | |||||||||||||
Total assets | $ | 2,477,192 | $ | (29,654 | ) | $ | 2,447,538 | |||||||||||||
Income tax payable | $ | 2,746 | $ | (2,746 | ) | $ | — | |||||||||||||
Total current liabilities | $ | 17,618 | $ | (2,746 | ) | $ | 14,872 | |||||||||||||
Deferred tax liabilities (non-current) | $ | 5,884 | $ | (5,884 | ) | $ | — | |||||||||||||
Total liabilities | $ | 1,240,122 | $ | (8,630 | ) | $ | 1,231,492 | |||||||||||||
Additional paid-in capital | $ | 1,680,838 | $ | 10,591 | $ | 1,691,429 | ||||||||||||||
Deficit | $ | (434,476 | ) | $ | (31,615 | ) | $ | (466,091 | ) | |||||||||||
Total stockholders' equity | $ | 1,237,070 | $ | (21,024 | ) | $ | 1,216,046 | |||||||||||||
Guarantor Subsidiaries | As reported | Adjustment | Revised | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||
Other expense | $ | (37,917 | ) | $ | 37,589 | $ | (328 | ) | ||||||||||||
Income tax benefit (expense) | $ | 68,500 | $ | (14,660 | ) | $ | 53,840 | |||||||||||||
Net (loss) income | $ | (148,897 | ) | $ | 22,929 | $ | (125,968 | ) | ||||||||||||
Net cash (used in) provided by operating activities | $ | (149,975 | ) | $ | 37,589 | $ | (112,386 | ) | ||||||||||||
Loans to parent | $ | — | $ | (37,589 | ) | $ | (37,589 | ) | ||||||||||||
Net cash used in investing activities | $ | (916,142 | ) | $ | (37,589 | ) | $ | (953,731 | ) | |||||||||||
At December 31, 2012 | ||||||||||||||||||||
Intercompany accounts receivable | $ | 169,446 | $ | 37,589 | $ | 207,035 | ||||||||||||||
Total assets | $ | 1,853,694 | $ | 37,589 | $ | 1,891,283 | ||||||||||||||
Deferred tax liabilities (non-current) | $ | 8,470 | $ | 14,660 | $ | 23,130 | ||||||||||||||
Total liabilities | $ | 1,828,373 | $ | 14,660 | $ | 1,843,033 | ||||||||||||||
Deficit | $ | (124,536 | ) | $ | 22,929 | $ | (101,607 | ) | ||||||||||||
Total stockholders' equity | $ | 25,321 | $ | 22,929 | $ | 48,250 | ||||||||||||||
Unaudited_Supplementary_Data
Unaudited Supplementary Data | 12 Months Ended | |||||||||||||||
Dec. 31, 2012 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Unaudited Supplementary Data | Unaudited Supplementary Data | |||||||||||||||
The following is a summary of the selected quarterly financial information (unaudited): | ||||||||||||||||
2012 | ||||||||||||||||
Quarter ended | ||||||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | |||||||||||||
(Revised) | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Revenues | $ | 84,470 | $ | 104,577 | $ | 205,604 | $ | 134,259 | ||||||||
Gross profit (loss) | $ | 31,027 | $ | (4,073 | ) | $ | 10,864 | $ | (20,473 | ) | ||||||
Loss before income taxes and equity earnings | $ | (5,434 | ) | $ | (93,970 | ) | $ | (43,745 | ) | $ | (382,779 | ) | ||||
Net loss | $ | (3,478 | ) | $ | (66,924 | ) | $ | (15,451 | ) | $ | (389,490 | ) | ||||
Net loss attributable to Molycorp stockholders | $ | (3,478 | ) | $ | (67,604 | ) | $ | (18,891 | ) | $ | (391,196 | ) | ||||
Loss per share of common stock: (a) | ||||||||||||||||
Basic | $ | (0.07 | ) | $ | (0.71 | ) | $ | (0.19 | ) | $ | (3.16 | ) | ||||
Diluted | $ | (0.07 | ) | $ | (0.71 | ) | $ | (0.19 | ) | $ | (3.16 | ) | ||||
2011 | ||||||||||||||||
Quarter ended | ||||||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Revenues | $ | 26,261 | $ | 99,615 | $ | 138,050 | $ | 132,905 | ||||||||
Gross profit | $ | 9,584 | $ | 56,692 | $ | 82,392 | $ | 70,272 | ||||||||
(Loss) income before income taxes and equity earnings | $ | (1,999 | ) | $ | 42,143 | $ | 64,157 | $ | 42,607 | |||||||
Net (loss) income | $ | (2,198 | ) | $ | 48,755 | $ | 45,101 | $ | 26,674 | |||||||
Net (loss) income attributable to Molycorp stockholders | $ | (2,198 | ) | $ | 47,787 | $ | 45,356 | $ | 26,579 | |||||||
(Loss) income per share of common stock: (a) | ||||||||||||||||
Basic | $ | (0.04 | ) | $ | 0.54 | $ | 0.51 | $ | 0.27 | |||||||
Diluted | $ | (0.04 | ) | $ | 0.53 | $ | 0.49 | $ | 0.26 | |||||||
(a) | The sum of the quarterly income (loss) per share may be different than the per share amount for the year as the calculation for each quarter is based on the weighted average shares outstanding for that period. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2012 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
Public Offerings | |
On January 30, 2013, the Company issued 37,500,000 shares of its common stock at a price per share of $6.00 (the “2013 Primary Shares”), and $150.0 million aggregate principal amount of its 5.50% Convertible Senior Notes due 2018 (the “5.50% Convertible Notes”) in separate registered public offerings. The underwriters of such offerings had the option to purchase, within a 30 days period, an additional 5,625,000 shares of the 2013 Primary Shares at a price per share of $6.00, and an additional $22.5 million aggregate principal amount of the 5.50% Convertible Notes. The purchase option on the 2013 Primary Shares was exercised on February 5, 2013 and the purchase option on the 5.50% Convertible Notes was exercised on March 1, 2013. The underwriters received a 6.00% fee in the form of an underwriter's discount for the 2013 Primary Shares. Certain officers, directors and other related parties of the Company participated in offering of the 2013 Primary Shares by purchasing 15,016,666 of the total 2013 Primary Shares issued, and $20.5 million of the 5.50% Convertible Notes. No underwriting fees were charged to the Company for the purchases of the 2013 Primary Shares by the insiders . After deducting the underwriting discounts and commissions, total net proceeds from the issuance of the 5.50% Convertible Notes were $165.6 million, and total net proceeds from the issuance of the 2013 Primary Shares were $248.6 million. | |
The 5.50% Convertible Notes will be Molycorp's senior unsecured obligations and will pay a 5.50% interest semi-annually in arrears on February 1 and August 1 of each year, commencing on August 1, 2013. The 5.50% Convertible Notes are convertible at any time into shares of Molycorp's common stock, cash, or a combination thereof, at Molycorp's election. The conversion rate will initially be 138.8889 shares of Molycorp common stock per $1,000 principal amount of notes (equivalent to an initial conversion price of approximately $7.20 per share of Molycorp's common stock), subject to customary adjustments. The 5.50% Convertible Notes will mature on February 1, 2018, unless earlier repurchased, redeemed or converted in accordance with their terms prior to that date. Molycorp will have the right to redeem the 5.50% Convertible Notes on or after February 1, 2016 if the last reported sale price of its common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period. | |
The Company intends to use the net proceeds received from the 2013 Primary Shares offering and the 5.50% Convertible Notes offering to fund current capital needs for capital expenditures and other cash requirements for 2013, including, without limitation, capital expenditures at its Molycorp Mountain Pass facility. | |
Concurrently with the 2013 Primary Shares and the 5.50% Convertible Notes offerings, the Company entered into a share lending agreement with MSCS under which it has agreed to loan to MSCS up to 7,666,666 shares of common stock (the “2013 Borrowed Shares”), of which 6,333,333 shares were offered through Morgan Stanley at a price per share of $6.00 in a registered public offering. The Company entered into this share lending agreement to facilitate the 5.50% Convertible Notes offering. The Company received no proceeds from the 2013 Borrowed Shares, but only a nominal lending fee from MSCS for the use of these loaned shares. The 2013 Borrowed Shares are issued and outstanding for corporate law purposes. However, based on certain contractual undertakings of MSCS in the share lending agreement that have the effect of substantially eliminating the economic dilution that otherwise would result from the issuance of the 2013 Borrowed Shares, these loaned shares will not be considered outstanding for the purpose of computing and reporting Molycorp's earnings per share. | |
Preferred stock dividend | |
In February 2013, the Company declared a cash dividend of $1.375 per share on the Convertible Preferred Stock to be paid on March 1, 2013 to holders of record at the close of business on February 15, 2013. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||
Dec. 31, 2012 | ||||||||||
Accounting Policies [Abstract] | ||||||||||
Use of Estimates | Use of Estimates | |||||||||
The preparation of the Company's consolidated financial statements, in accordance with generally accepted accounting principles in the United States of America (“GAAP”), requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases its estimates on the Company’s historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ significantly from these estimates under different assumptions and conditions. | ||||||||||
Significant estimates made by management in the accompanying financial statements include: the collectability of accounts receivable; the recoverability of inventory; the useful lives and recoverability of long-lived assets such as property, plant and equipment, capital leases, intangible assets, including goodwill, and investments; determination of uncertain tax positions; the fair values of assets acquired and liabilities assumed from business combinations; and the adequacy of the asset retirement obligation. | ||||||||||
Basis of Presentation | Basis of Presentation | |||||||||
The consolidated financial statements include the accounts of Molycorp and its majority-owned subsidiaries where it exerts control. Investments in which Molycorp does not have control and is not considered to be the primary beneficiary of a variable interest entity, but it exercises significant influence over the operating and financial policies of the investee, are accounted for using the equity method of accounting. All other investments are accounted for using the cost method of accounting. All intercompany balances and transactions are eliminated in consolidation. | ||||||||||
Certain prior period amounts have been reclassified to conform to the current period presentation. Such reclassifications did not affect results of operations. | ||||||||||
Revenues and Costs of Sales | Revenues and Costs of Sales | |||||||||
Revenues are recognized when persuasive evidence of an arrangement exists, the risks and rewards of ownership have been transferred to the customer, which is generally when title passes, the selling price is fixed or determinable, and collection is reasonably assured. Title generally passes upon shipment of product from the Company’s production facilities. Prices are generally set at the time of, or prior to, shipment. Transportation and distribution costs are incurred only on sales for which the Company is responsible for delivering the product. | ||||||||||
Costs of sales include costs of production and write downs to the extent of inventory costs in excess of net realizable value. Primary production costs include labor, raw materials, depreciation, supplies, maintenance costs and plant overhead. | ||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents | |||||||||
Cash and cash equivalents consist of cash and liquid investments with an original maturity of three months or less. Because of the short maturity of these investments, the carrying amounts approximate their fair value. | ||||||||||
Trade Accounts Receivable | Trade Accounts Receivable | |||||||||
Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company reviews the need for an allowance for doubtful accounts quarterly based on historical experience with each customer and the specifics of each arrangement. | ||||||||||
Inventories | Inventories | |||||||||
Inventories consist of stockpiles of bastnasite concentrate, raw materials, work in process, finished goods and materials and supplies. Inventory cost is determined using the lower of weighted average cost or estimated net realizable value, and includes all expenses directly attributable to the manufacturing process as well as portions of production overheads, which are based on normal operating capacity. Inventories expected to be used and sold beyond a twelve-month period are classified as a non-current asset in the consolidated balance sheets. The Company evaluates the carrying value of materials and supply inventories each quarter giving consideration to slow-moving items, obsolescence, excessive levels, and other factors and recognizes related write-downs as necessary. Write-downs of inventory to estimated net realizable value are charged to costs of sales. | ||||||||||
Property, Plant and Equipment | Property, Plant and Equipment | |||||||||
Property, plant and equipment obtained from business acquisitions are recorded at their estimated fair value as of the acquisition date. Expenditures for new property, plant and equipment, and improvements that extend the useful life or functionality of the asset, are recorded at their cost of acquisition or construction. Depreciation on plant and equipment is provided using the straight-line method over their estimated useful lives (buildings and improvements - generally 4 to 40 years; plant and equipment - 2 to 15 years). As no finite useful life for land can be determined, related carrying amounts are not depreciated. Maintenance costs are expensed as incurred. | ||||||||||
Construction in progress is recognized for costs directly attributable to the construction or development of long-term tangible assets. These costs may include: labor and employee benefits associated with the construction of the asset; site preparation; permitting; engineering; installation and assembly; procurement; insurance; legal; commissioning; and interest on borrowings to finance the construction of the asset. Construction in progress is not depreciated until the asset built is put into service. | ||||||||||
Gains or losses arising on the disposal of property, plant and equipment are determined as the difference between the proceeds from disposal and the carrying amount of the asset, and are recognized in the consolidated statements of operations within other income or expense. | ||||||||||
Mineral Properties and Development Costs | Mineral Properties and Development Costs | |||||||||
Mineral properties and development costs, which are referred to collectively as mineral properties, include acquisition costs, drilling costs, and the cost of other development work, all of which are capitalized. The Company depletes mineral properties using the units of production method over estimated proven and probable reserves. Proven and probable reserves are based on extensive drilling, sampling, mine modeling, and mineral recovery from which economic feasibility has been determined, and are estimated based on information available at the time the reserves are calculated. Proven and probable reserves are based on estimates, and no assurance can be given that the indicated levels of recovery of rare earth oxides ("REO") will be realized or that production costs and estimated future development costs will not exceed the net realizable value of the products. Reserve estimates may require revisions based on actual production experience. Market price fluctuations of REO, 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. The Company began depleting mineral properties in 2012 using the units of production method over estimated proven and probable reserves. Depletion costs are recorded as part of work-in-process inventory. | ||||||||||
Intangible Assets | Intangible Assets | |||||||||
Intangible assets consist primarily of customer relationships, Chinese rare earth quotas, patents, Chinese land use rights and both indefinite-lived and finite-lived trade names. Finite-lived intangible assets are amortized on a straight-line basis over the estimated useful lives determined as of the asset acquisition date or based on the legal terms of internally-developed patents. Useful lives of the Company's finite-lived intangible assets range from 2 to 16 years for customer relationships, Chinese rare earth quotas, patents and trade name, and 50 years for Chinese land use rights. | ||||||||||
Recoverability of Long-Lived Amortizable Assets | Recoverability of Long-Lived Amortizable Assets | |||||||||
Long-lived assets such as property, plant, and equipment, mineral properties and intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment is considered to exist if the total undiscounted future cash flows expected from the use of the asset or group of assets are less than its carrying amount. An impairment loss, if any, is recorded for the excess of the asset's or group of assets' carrying value over its fair value, as determined by a valuation technique appropriate to the given circumstances. | ||||||||||
In the fourth quarter of 2012, the Company recognized an impairment of $6.0 million related to some patents that were recorded under the Magnetic Materials and Alloys segment, and a total $5.9 million impairment of long-lived tangible assets, $3.8 million of which related to the Resources segment and $2.0 million to the Rare Metals segment. See Note 7 and Note 9 for further details. The undiscounted future cash flows expected from the use of all other amortizable long-lived assets the Company tested for recoverability were in excess of their carrying amounts as of December 31, 2012. | ||||||||||
Recoverability of Goodwill | Recoverability of Goodwill | |||||||||
The Company assigns goodwill arising from acquired companies to the reporting units that are expected to benefit from the synergies of the acquisition. On an annual basis and at interim periods when circumstances require, the Company tests the recoverability of its goodwill utilizing a two-step impairment analysis. Under this analysis, the Company initially compares the fair value of each identified reporting unit with the reporting unit's net book value. The Company's reporting units are determined either at the operating segment level or a component one level below the operating segment that constitutes a business for which the operating segment management generally reviews production and financial results of that reporting unit. To the extent that a reporting unit's fair value is less than its carrying value, the Company performs an additional step to determine the implied fair value of goodwill allocated to that reporting unit. The implied fair value of goodwill is calculated by first allocating the fair value of the reporting unit to all of its assets and liabilities, including goodwill, and then computing the excess of the reporting unit's fair value over the amounts assigned to its assets and liabilities. To the extent that the carrying value of goodwill exceeds its implied fair value, the Company would recognize an impairment loss corresponding to such amount. The valuation methodology utilized to fair value the Company's reporting units is based on a discounted cash flow model, or income approach, in which expected future net cash flows, excluding any financing costs or dividends, are discounted to present value using an appropriate after-tax weighted average cost of capital, or discount factor. The income approach is dependent upon a number of significant management estimates about future performance including sales volumes and average sales prices for our products, production costs, income taxes, capital expenditures, working capital changes, foreign exchange rates and the after-tax weighted average cost of capital. Changes in any of these assumptions could materially impact the estimated fair value of the Company's reporting units. Discount factors are determined individually for each reporting unit to reflect its respective risk profile as assessed by the Company's management. | ||||||||||
Investments | Investments | |||||||||
Investments in common stock or in-substance common stock of entities in which the Company has the ability to exercise significant influence over their operating and financial policies, has presumed by an ownership share greater than 20% but lower than 50%, are accounted for by the equity method. Under this method of accounting, the Company's proportional shares of net assets and results of operations of the investee or affiliate are included in the Company's consolidated financial statements. All subsequent changes to the Company's share of interest in the equity of the affiliate are recognized in the carrying amount of the investment. Changes resulting from the net income or loss generated by the affiliate are reported within "Equity in results of affiliate" in the consolidated statements of operations and comprehensive income. Equity method investments are reviewed periodically for other-than-temporary decline in value. | ||||||||||
The Company accounts for investments in non-marketable equity securities for which it does not have the ability to exercise significant influence over the investee’s operations and financial policies under the cost method of accounting. Cost method investments are carried at cost and are subject to other-than-temporary impairment assessments. | ||||||||||
Business Combinations | Business Combinations | |||||||||
The Company accounts for all business combinations using the acquisition method of accounting. Under this method, assets and liabilities, including any remaining noncontrolling interests, are recognized at fair value at the date of acquisition. The excess of the purchase price over the fair value of assets acquired, net of liabilities assumed, and noncontrolling interests is recognized as goodwill. Certain adjustments to the assessed fair values of the assets, liabilities, or noncontrolling interests made subsequent to the acquisition date, but within the measurement period, which is up to one year, are recorded as adjustments to goodwill. Any adjustments subsequent to the measurement period are recorded in income. Any cost or equity method interest that the Company holds in the acquired company prior to the acquisition is remeasured to fair value at acquisition with a resulting gain or loss recognized in income for the difference between fair value and the existing book value. Results of operations of the acquired entity are included in the Company’s results from the date of the acquisition onward and include amortization expense arising from acquired tangible and intangible assets. The Company expenses all costs as incurred related to an acquisition under “Corporate development” in the consolidated statement of operations and comprehensive income. | ||||||||||
Asset Retirement Obligation | Asset Retirement Obligation | |||||||||
The Company accounts for reclamation costs, along with other costs related to the closure of the Molycorp Mountain Pass facility, in accordance with ASC 410-20, Asset Retirement Obligations. This standard requires the Company to recognize asset retirement obligations at estimated fair value in the period in which the obligation is incurred. Events that trigger the recognition of asset retirement obligations include land disturbance and construction of properties for which there is a legal obligation, as determined by the local environmental authorities, to demolish the facilities and/or to restore the land disturbance to its original status at the end of the life of the mine plan at the Molycorp Mountain Pass facility. The liability is initially measured at fair value using a discounted cash flow model, and is subsequently adjusted for accretion expense and changes in the amount or timing of the estimated cash flows. The asset retirement cost is capitalized as part of the carrying amount of the related long-lived assets and is depreciated over the assets’ remaining useful lives. | ||||||||||
Income Taxes | Income Taxes | |||||||||
The Company accounts for income taxes in accordance with Accounting Standard Codification 740, Income Taxes. This guidance requires that deferred tax assets and liabilities be recognized for the tax effect of temporary differences between the financial statement and tax basis of recorded assets and liabilities at enacted statutory tax rates. This guidance also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. The recoverability of deferred tax assets is based on both our historical and anticipated earnings levels and we review it each reporting period to determine if any additional valuation allowance is necessary when it is more likely than not that amounts will not be recovered. We have concluded that a valuation allowance of $20.6 million is required as of December 31, 2012 and no valuation allowance was required as of December 31, 2011. | ||||||||||
We review our deferred tax assets and liabilities each reporting period using the enacted tax rate expected to apply to taxable income for the period in which the deferred tax asset or liability is expected to be realized. The statutory income tax rates that are applied to the current and deferred income tax calculations are significantly impacted by the jurisdictions in which we conduct business. Changes in jurisdiction income tax rates and apportionment laws may result in changes in the calculation of our current and deferred income taxes. The effects of any changes are recorded in the period of enactment and can increase or decrease the net deferred tax assets and liabilities on the balance sheet. | ||||||||||
Foreign Currency | Foreign Currency | |||||||||
The functional currency of the majority of the Company's operations is the U.S. dollar. Assets and liabilities recorded in functional currencies other than U.S. dollars are translated at the spot rate in effect at the applicable reporting date; revenues and expenses in foreign currencies are translated at actual exchange rates for significant transactions or at the average exchange rates in effect during the applicable period. The resulting unrealized cumulative translation adjustment is recorded as a component of "Accumulated other comprehensive income (loss)" in the consolidated statement of stockholders’ equity. The effect of exchange rates on cash balances held in foreign currencies are separately reported in the Company’s consolidated statements of cash flows. | ||||||||||
Transactions denominated in currencies other than the applicable functional currency are recorded based on exchange rates at the time such transactions occur. Changes in exchange rates associated with amounts recorded in the Company’s consolidated balance sheets related to these non-functional currency transactions result in transaction gains and losses that are reflected under "Foreign exchange gains (losses), net" in the consolidated statements of operations and comprehensive income. | ||||||||||
Comprehensive Income (Loss) | Comprehensive Income (Loss) | |||||||||
The Company presents comprehensive income (loss) in two separate, but consecutive statements. In addition to "Net income (loss)", "Comprehensive income (loss)" includes all changes in equity during a period, such as foreign currency translation adjustments. | ||||||||||
Earnings (Loss) per Share | Earnings (Loss) per Share | |||||||||
Basic earnings per share is computed by dividing the Company’s net income attributable to its stockholders, reduced by cumulative undeclared and paid dividends on preferred stock, by the weighted average number of shares of common stock outstanding during the period. | ||||||||||
Diluted earnings per share reflect the dilutive impact of potential common stock and unvested restricted shares of common stock in the weighted average number of common shares outstanding during the period, if dilutive. For this purpose, the “treasury stock method” and “if-converted method,” as applicable, are used. Under the treasury stock method, assumed proceeds upon the exercise of stock options are considered to be used to purchase common stock at the average market price of the shares during the period. Also under the treasury stock method, fixed awards and nonvested shares, such as restricted stock, are deemed options for purposes of computing diluted earnings per share. In applying the if-converted method, conversion is not assumed for purposes of computing diluted earnings per share if the effect would be antidilutive. Convertible preferred stock is antidilutive whenever the amount of the dividend declared in or accumulated for the current period per common share obtainable on conversion, including the deemed dividend in the period from a beneficial conversion feature, exceeds basic earnings per share. Also under the if-converted method, convertible debt is antidilutive whenever its interest per common share obtainable on conversion, including any deemed interest from a beneficial conversion feature and nondiscretionary adjustments, net of tax, exceeds basic earnings per share. | ||||||||||
Fair Value Measurements | Fair Value Measurements | |||||||||
For assets and liabilities that are required under GAAP to be measured at fair value on a recurring and nonrecurring basis, the Company refers to a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into the following three broad levels: | ||||||||||
• | Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | |||||||||
• | Level 2 - Observable inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data by correlation or other means. | |||||||||
• | Level 3 - Prices or valuation techniques requiring inputs that are both significant to the fair value measurement and unobservable. | |||||||||
The fair value of many of the Company's financial instruments, including cash and cash equivalents, trade accounts receivables, trade accounts payable and accrued expenses approximate the amounts recorded in the balance sheet because of the relatively short-term nature of these financial instruments. Fixed rate notes are carried at their original issuance values as adjusted over time to accrete that value to the principal amount. | ||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | |||||||||
In July 2012, the Financial Accounting Standard Board ("FASB") issued ASU 2012-02, Intangibles - Goodwill and Other (Topic 350), Testing Indefinite-Lived Intangible Assets for Impairment. In accordance this update, an entity has the option first to assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the indefinite-lived intangible asset is impaired. If, after assessing the totality of events and circumstances, an entity concludes that it is not more likely than not that the indefinite-lived intangible asset is impaired, then the entity is not required to take further action. However, if an entity concludes otherwise, then it is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying amount and record an impairment charge, if any. | ||||||||||
The update is effective for annual and interim period impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. The Company does not expect the adoption of this updated guidance to have a significant impact on its financial statements. | ||||||||||
Completion of purchase price allocation and revision of previously issued financial statements | Accordingly, the Company's audited consolidated financial statements have been revised as follows: | |||||||||
At December 31, 2012 | ||||||||||
As originally reported | Revision | As revised | ||||||||
(In thousands) | ||||||||||
Investments | $ | 65,126 | $ | (1,090 | ) | $ | 64,036 | |||
Deferred tax assets | 1,083 | (1,083 | ) | — | ||||||
Total non-current assets | 2,361,030 | (2,173 | ) | 2,358,857 | ||||||
Total assets | 2,994,708 | (2,173 | ) | 2,992,535 | ||||||
Deferred tax liabilities | 166,215 | (5,540 | ) | 160,675 | ||||||
Total non-current liabilities | 1,387,400 | (5,540 | ) | 1,381,860 | ||||||
Additional paid-in capital | 1,680,838 | 10,591 | 1,691,429 | |||||||
Deficit | (434,476 | ) | (31,615 | ) | (466,091 | ) | ||||
Total Molycorp stockholders' equity | 1,237,070 | (21,024 | ) | 1,216,046 | ||||||
Noncontrolling interests | 10,821 | 24,391 | 35,212 | |||||||
Total stockholders' equity | 1,247,891 | 3,367 | 1,251,258 | |||||||
For the year ended December 31, 2012 | ||||||||||
As originally reported | Revision | As revised | ||||||||
(In thousands, except per share amounts) | ||||||||||
Impairment of goodwill and other long-lived assets | $ | (270,140 | ) | (31,615 | ) | $ | (301,755 | ) | ||
Loss before income taxes and equity earnings | (494,313 | ) | (31,615 | ) | (525,928 | ) | ||||
Net loss | (443,728 | ) | (31,615 | ) | (475,343 | ) | ||||
Net loss attributable to Molycorp stockholders | (449,554 | ) | (31,615 | ) | (481,169 | ) | ||||
Comprehensive loss | (444,680 | ) | (31,615 | ) | (476,295 | ) | ||||
Comprehensive loss attributable to Molycorp stockholders | (438,854 | ) | (31,615 | ) | (470,469 | ) | ||||
Loss per share of common stock: | ||||||||||
Basic | (4.31 | ) | (0.29 | ) | (4.60 | ) | ||||
Diluted | (4.31 | ) | (0.29 | ) | (4.60 | ) | ||||
The completion of the purchase price allocation also resulted in revisions to Note 4 "Segment Information", Note 9 "Goodwill and Other Intangible Assets", Note 11 "Acquisitions, Note 15 "Income Taxes", Note 17 "(Loss) Earnings per Share", and Note 22 "Subsidiary Guarantor Financial Information". |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2012 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||
Schedule of segment information | |||||||||||||||||||||||||||||
Year ended December 31, 2012 | Resources | Chemicals and Oxides | Magnetic Materials and Alloys | Rare Metals | Eliminations(a) | Corporate and other(b) | Total Molycorp, Inc. | ||||||||||||||||||||||
(Revised) | |||||||||||||||||||||||||||||
Revenues: | (In thousands) | ||||||||||||||||||||||||||||
External | $ | 88,870 | $ | 181,849 | $ | 179,335 | $ | 78,856 | $ | — | $ | 528,910 | |||||||||||||||||
Intersegment | 7,256 | 25,717 | — | — | (32,973 | ) | — | ||||||||||||||||||||||
Total revenues | $ | 96,126 | $ | 207,566 | $ | 179,335 | $ | 78,856 | $ | (32,973 | ) | $ | 528,910 | ||||||||||||||||
Depreciation, amortization and accretion | $ | (13,991 | ) | $ | (13,110 | ) | $ | (19,737 | ) | $ | (6,154 | ) | $ | — | $ | (133 | ) | $ | (53,125 | ) | |||||||||
Operating (loss) income | $ | (70,220 | ) | $ | (191,059 | ) | $ | (125,543 | ) | $ | (20,408 | ) | $ | 24,803 | $ | (85,459 | ) | $ | (467,886 | ) | |||||||||
(Loss) income before income taxes and equity earnings | $ | (70,469 | ) | $ | (190,094 | ) | $ | (126,981 | ) | $ | (19,918 | ) | $ | 24,803 | $ | (143,269 | ) | $ | (525,928 | ) | |||||||||
Total assets at December 31, 2012 | $ | 1,802,842 | $ | 639,847 | $ | 593,197 | $ | 117,961 | $ | (187,567 | ) | $ | 26,255 | $ | 2,992,535 | ||||||||||||||
Capital expenditures (c) | $ | 814,054 | $ | 10,910 | $ | 5,614 | $ | 10,750 | $ | — | $ | 1,733 | $ | 843,061 | |||||||||||||||
Year ended December 31, 2011 | Resources | Chemicals and Oxides | Magnetic Materials and Alloys | Rare Metals | Eliminations(a) | Corporate and other(b) | Total Molycorp, Inc. | ||||||||||||||||||||||
Revenues: | (In thousands) | ||||||||||||||||||||||||||||
External | $ | 253,563 | $ | 40,216 | $ | 56,772 | $ | 46,280 | $ | — | $ | 396,831 | |||||||||||||||||
Intersegment | 55,155 | 13,902 | — | — | (69,057 | ) | — | ||||||||||||||||||||||
Total revenues | $ | 308,718 | $ | 54,118 | $ | 56,772 | $ | 46,280 | $ | (69,057 | ) | $ | 396,831 | ||||||||||||||||
Depreciation, amortization and accretion | $ | (10,553 | ) | $ | (1,958 | ) | $ | (236 | ) | $ | (2,449 | ) | $ | — | $ | (31 | ) | $ | (15,227 | ) | |||||||||
Operating income (loss) | $ | 218,549 | $ | 8,700 | $ | 2,331 | $ | 2,131 | $ | (27,443 | ) | $ | (51,402 | ) | $ | 152,866 | |||||||||||||
Income (loss) before income taxes | $ | 218,391 | $ | 5,785 | $ | 2,336 | $ | (634 | ) | $ | (27,443 | ) | $ | (51,525 | ) | $ | 146,910 | ||||||||||||
Total assets at December 31, 2011 | $ | 824,712 | $ | 46,368 | $ | 30,061 | $ | 71,634 | $ | (143,730 | ) | $ | 426,080 | $ | 1,255,125 | ||||||||||||||
Capital expenditures (c) | $ | 401,047 | $ | 8,170 | $ | — | $ | — | $ | — | $ | — | $ | 409,217 | |||||||||||||||
(a) | The net elimination in operating results includes costs of sales eliminations of $57,776 and $41,614 for the year ended December 31, 2012 and 2011, respectively, which consist of intercompany gross profits as well as eliminations of lower of cost or market adjustments related to intercompany inventory. The total assets elimination is comprised primarily of intercompany investments and intercompany accounts receivable and profits in inventory. | ||||||||||||||||||||||||||||
(b) | Corporate loss before income taxes and equity earnings includes business development costs, personnel and related costs, including stock-based compensation expense, accounting and legal fees, occupancy expense, information technology costs and interest expense. Other consists of nominal expenses incurred by the sales office in Tokyo, Japan. Total corporate assets is comprised primarily of cash and cash equivalents, the investment in the sales office in Tokyo and deferred tax assets. | ||||||||||||||||||||||||||||
(c) | On an accrual basis excluding capitalized interest. | ||||||||||||||||||||||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The geographic distribution of the Company’s revenues based on customers' locations for the years ended December 31, 2012, 2011 and 2010, was as follows: | ||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
(In thousands) | 2012 | 2011 | 2010 | ||||||||||||||||||||||||||
Asia: | |||||||||||||||||||||||||||||
China | $ | 118,086 | $ | 421 | $ | 909 | |||||||||||||||||||||||
Japan | 160,942 | 204,262 | 9,569 | ||||||||||||||||||||||||||
Thailand | 7,674 | — | — | ||||||||||||||||||||||||||
Hong Kong | 4,793 | — | — | ||||||||||||||||||||||||||
South Korea | 3,828 | — | — | ||||||||||||||||||||||||||
Singapore | 212 | — | 9 | ||||||||||||||||||||||||||
North America | 104,769 | 128,544 | 24,070 | ||||||||||||||||||||||||||
Europe | 117,907 | 56,760 | 596 | ||||||||||||||||||||||||||
Other | 10,699 | 6,844 | 4 | ||||||||||||||||||||||||||
Total | $ | 528,910 | $ | 396,831 | $ | 35,157 | |||||||||||||||||||||||
Long-lived tangible assets by geographic location at December 31, 2012 and 2011 were as follows: | |||||||||||||||||||||||||||||
At December 31, | |||||||||||||||||||||||||||||
(In thousands) | 2012 | 2011 | |||||||||||||||||||||||||||
North America | $ | 1,391,690 | $ | 500,612 | |||||||||||||||||||||||||
Europe | 75,495 | 60,619 | |||||||||||||||||||||||||||
China | 52,914 | — | |||||||||||||||||||||||||||
Thailand | 5,902 | — | |||||||||||||||||||||||||||
Other Asia | 18,221 | 397 | |||||||||||||||||||||||||||
Other | 82 | — | |||||||||||||||||||||||||||
Total | $ | 1,544,304 | $ | 561,628 | |||||||||||||||||||||||||
Inventory_Tables
Inventory (Tables) | 12 Months Ended | |||||||
Dec. 31, 2012 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule of inventory | At December 31, 2012 and 2011, inventory consisted of the following (in thousands): | |||||||
December 31, | ||||||||
2012 | 2011 | |||||||
Current: | ||||||||
Concentrate stockpiles | $ | 6,393 | $ | 3,704 | ||||
Raw materials | 95,248 | 44,770 | ||||||
Work in process | 55,229 | 16,602 | ||||||
Finished goods | 114,903 | 45,045 | ||||||
Materials and supplies | 15,603 | 1,822 | ||||||
Total current | $ | 287,376 | $ | 111,943 | ||||
Long-term: | ||||||||
Concentrate stockpiles | $ | 4 | $ | 1,144 | ||||
Raw materials | 26,092 | 3,186 | ||||||
Finished goods | — | 32 | ||||||
Total long-term | $ | 26,096 | $ | 4,362 | ||||
Property_Plant_and_Equipment_n1
Property, Plant and Equipment, net (Tables) | 12 Months Ended | |||||||
Dec. 31, 2012 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Schedule of property, plant and equipment | At December 31, 2012 and 2011, property, plant and equipment consisted of the following (in thousands): | |||||||
December 31, | ||||||||
2012 | 2011 | |||||||
Land | $ | 12,475 | $ | 11,059 | ||||
Land improvements (15 years) | 63,269 | 15,748 | ||||||
Buildings and improvements (4 to 40 years) | 237,379 | 23,677 | ||||||
Plant and equipment (2 to 15 years) | 194,934 | 68,441 | ||||||
Vehicles (7 years) | 2,842 | 1,235 | ||||||
Computer software (5 years) | 9,528 | 3,002 | ||||||
Furniture and fixtures (5 years) | 1,116 | 464 | ||||||
Construction in progress (a) | 1,011,541 | 436,547 | ||||||
Capital Lease (10 years) | 15,658 | — | ||||||
Mineral properties (Note 8) | 24,327 | 24,692 | ||||||
Exploration rights (Note 8) | 16,166 | — | ||||||
Property, plant and equipment at cost | 1,589,235 | 584,865 | ||||||
Less accumulated depreciation | (44,931 | ) | (23,237 | ) | ||||
Property, plant and equipment, net | $ | 1,544,304 | $ | 561,628 | ||||
(a) | Represents costs incurred at the Molycorp Mountain Pass facility and all other capital projects. See Note 3. |
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2012 | |||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||
Schedule of Goodwill | Changes in the carrying value of goodwill by reportable segment during the years ended December 31, 2012 and 2011, except for the Resources segment, which includes only the Molycorp Mountain Pass facility that has no goodwill, were as follows (in thousands): | ||||||||||||||||||||||
1-Jan-11 | Goodwill Acquired | 31-Dec-11 | Goodwill Acquired | Impairment | 31-Dec-12 | ||||||||||||||||||
Chemicals and Oxides | — | $ | 728 | $ | 728 | $ | 285,633 | $ | (161,132 | ) | $ | 125,229 | |||||||||||
Magnetic Materials and Alloys | — | 1,977 | 1,977 | 213,525 | (112,694 | ) | 102,808 | ||||||||||||||||
Rare Metals | — | 727 | 727 | 27,046 | (16,068 | ) | 11,705 | ||||||||||||||||
Total | — | $ | 3,432 | $ | 3,432 | $ | 526,204 | $ | (289,894 | ) | $ | 239,742 | |||||||||||
Schedule of amortizable intangible assets | At December 31, 2012 and 2011, intangible assets consisted of the following (in thousands): | ||||||||||||||||||||||
Customer relationships | Rare earth quotas | Patents | Trade names | Land use rights | Other | Total | |||||||||||||||||
Gross carrying amount | |||||||||||||||||||||||
At January 1, 2012 | $ | 2,669 | — | — | $ | 786 | — | — | $ | 3,455 | |||||||||||||
Additions | 342,105 | 78,300 | 39,252 | 14,800 | 3,568 | 4,420 | 482,445 | ||||||||||||||||
Impairment | — | — | (6,000 | ) | — | — | — | (6,000 | ) | ||||||||||||||
At December 31, 2012 | $ | 344,774 | $ | 78,300 | $ | 33,252 | $ | 15,586 | $ | 3,568 | $ | 4,420 | $ | 479,900 | |||||||||
Amortization | |||||||||||||||||||||||
At January 1, 2012 | $ | 170 | — | — | $ | 213 | — | — | $ | 383 | |||||||||||||
Amortization | 13,925 | 4,035 | 9,365 | 939 | 66 | 249 | 28,579 | ||||||||||||||||
At December 31, 2012 | 14,095 | 4,035 | 9,365 | 1,152 | 66 | 249 | 28,962 | ||||||||||||||||
Net book value | $ | 330,679 | $ | 74,265 | $ | 23,887 | $ | 14,434 | $ | 3,502 | $ | 4,171 | $ | 450,938 | |||||||||
Customer relationships | Rare earth quotas | Patents | Trade names | Land use rights | Other | Total | |||||||||||||||||
Gross carrying amount | |||||||||||||||||||||||
At January 1, 2011 | — | — | — | $ | 786 | — | — | $ | 786 | ||||||||||||||
Additions | 2,669 | — | — | — | — | — | 2,669 | ||||||||||||||||
At December 31, 2011 | $ | 2,669 | — | — | $ | 786 | — | — | $ | 3,455 | |||||||||||||
Amortization | |||||||||||||||||||||||
At January 1, 2011 | — | — | — | $ | 147 | — | — | $ | 147 | ||||||||||||||
Amortization | 170 | — | — | 66 | — | — | 236 | ||||||||||||||||
At December 31, 2011 | 170 | — | — | 213 | — | — | 383 | ||||||||||||||||
Net book value | $ | 2,499 | — | — | $ | 573 | — | — | $ | 3,072 | |||||||||||||
Schedule of Expected Amortization Expense | Amortization expense for the next five years and thereafter is expected to be as follows (in millions): | ||||||||||||||||||||||
2013 | $ | 44.7 | |||||||||||||||||||||
2014 | 37 | ||||||||||||||||||||||
2015 | 33.8 | ||||||||||||||||||||||
2016 | 32.2 | ||||||||||||||||||||||
2017 | 30.9 | ||||||||||||||||||||||
Thereafter | 257.6 | ||||||||||||||||||||||
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2012 | ||||||||||||||||
Business Combinations [Abstract] | ||||||||||||||||
Summarizes the purchase prices and opening balance sheets for the acquisitions | ||||||||||||||||
Preliminary Allocation of Consideration Transferred as of December 31, 2012 | Measurement Period Adjustments | Final Allocation of Consideration Transferred | ||||||||||||||
Purchase consideration: | (In thousands) | |||||||||||||||
Cash consideration | $ | 908,181 | $ | 908,181 | ||||||||||||
Fair value of Molycorp common stock and Exchangeable Shares issued | 284,144 | 284,144 | ||||||||||||||
Total purchase consideration | $ | 1,192,325 | $ | 1,192,325 | ||||||||||||
Estimated fair values of the assets and liabilities acquired: | ||||||||||||||||
Cash and cash equivalents | $ | 317,169 | $ | — | $ | 317,169 | ||||||||||
Restricted cash | 4,951 | — | 4,951 | |||||||||||||
Accounts receivable | 101,470 | — | 101,470 | |||||||||||||
Inventory | 250,989 | — | 250,989 | |||||||||||||
Prepaid expenses and other current assets | 26,893 | — | 26,893 | |||||||||||||
Property, plant and equipment | 75,745 | — | 75,745 | |||||||||||||
Investments | 21,019 | (1,091 | ) | 19,928 | ||||||||||||
Intangibles | 482,234 | — | 482,234 | |||||||||||||
Deferred tax charges | 13,435 | — | 13,435 | |||||||||||||
Deferred tax assets | 11,473 | (1,423 | ) | 10,050 | ||||||||||||
Goodwill | 494,809 | 31,616 | 526,425 | |||||||||||||
Other non-current assets | 4,367 | — | 4,367 | |||||||||||||
Accounts payable and accrued expenses | (138,576 | ) | — | (138,576 | ) | |||||||||||
Debt | (255,338 | ) | — | (255,338 | ) | |||||||||||
Other current liabilities | (33,990 | ) | — | (33,990 | ) | |||||||||||
Deferred tax liabilities | (154,309 | ) | 5,880 | (148,429 | ) | |||||||||||
Other non-current liabilities | (14,255 | ) | — | (14,255 | ) | |||||||||||
Non-controlling interests | (15,761 | ) | (34,982 | ) | (50,743 | ) | ||||||||||
Total purchase consideration | $ | 1,192,325 | $ | — | $ | 1,192,325 | ||||||||||
The following table summarizes the purchase prices and opening balance sheets for the acquisition of 90.023% controlling interest in Molycorp Silmet on April 1, 2011 and of MMA on April 15, 2011 (in thousands): | ||||||||||||||||
(In thousands) | Molycorp Silmet | MMA | ||||||||||||||
April 1, 2011 | April 15, 2011 | |||||||||||||||
Purchase consideration: | ||||||||||||||||
Cash consideration | $ | 9,021 | $ | 17,500 | ||||||||||||
Fair value of Molycorp common stock issued | 72,653 | — | ||||||||||||||
Total purchase consideration | $ | 81,674 | $ | 17,500 | ||||||||||||
Fair values of the assets and liabilities acquired: | ||||||||||||||||
Cash | $ | 105 | $ | 6,395 | ||||||||||||
Accounts receivable and other current assets | 8,626 | 5,474 | ||||||||||||||
Inventory | 37,404 | 11,327 | ||||||||||||||
Property, plant and equipment, net | 63,393 | 4,512 | ||||||||||||||
Intangible assets subject to amortization | 2,669 | — | ||||||||||||||
Goodwill | 1,455 | 1,977 | ||||||||||||||
Liabilities | (19,974 | ) | (8,989 | ) | ||||||||||||
Deferred tax liabilities | — | (3,196 | ) | |||||||||||||
Long-term debt | (3,184 | ) | — | |||||||||||||
Noncontrolling interest | (8,820 | ) | — | |||||||||||||
Total purchase consideration | $ | 81,674 | $ | 17,500 | ||||||||||||
Summary of actual and pro forma information | The amounts of Molycorp Canada's revenues, earnings and earnings per share included in the Company’s consolidated statements of operations since the acquisition date, and the revenues, earnings and earnings per share of the combined entity had the acquisition date been January 1, 2011, were as follows: | |||||||||||||||
(In thousands, except per share amounts) | Revenues | Net Income (Loss) | Net Income (Loss) | EPS Basic | ||||||||||||
Attributable To Molycorp | ||||||||||||||||
Actual June 11, 2012 to December 31, 2012 (acquiree) | $ | 307,918 | $ | (338,347 | ) | $ | (344,173 | ) | $ | (3.21 | ) | |||||
Unaudited pro forma January 1, 2012 to December 31, 2012 (combined entity) | $ | 863,728 | $ | (463,716 | ) | $ | (473,249 | ) | $ | (4.53 | ) | |||||
Unaudited pro forma January 1, 2011 to December 31, 2011 (combined entity) | $ | 1,196,876 | $ | 241,903 | $ | 231,772 | $ | 2.66 | ||||||||
The pro forma revenues, earnings and earnings per share of the Company had both acquisitions occurred on January 1, 2011, were as follows: | ||||||||||||||||
(In thousands, except per share amounts) | Revenues | Net Income | Net Income | EPS Basic | ||||||||||||
Attributable To | ||||||||||||||||
Molycorp | ||||||||||||||||
Unaudited pro forma January 1, 2011 to December 31, 2011 (combined entity) | $ | 430,305 | $ | 105,397 | $ | 104,590 | $ | 1.13 | ||||||||
Unaudited pro forma January 1, 2010 to December 31, 2010 (combined entity) | $ | 85,549 | $ | (30,920 | ) | $ | (31,329 | ) | $ | (0.50 | ) | |||||
Schedule of Business Acquisitions, Transaction Costs by Type | For the year ended December 31, 2012, the Company recognized approximately $62.0 million of transaction costs related to the Molycorp Canada acquisition in the consolidated statement of operations and comprehensive income as follows (in thousands): | |||||||||||||||
Corporate development | ||||||||||||||||
Legal, accounting and advisory fees | $ | 16,498 | ||||||||||||||
Other expenses: | ||||||||||||||||
Contingent forward contract loss | $ | 37,589 | ||||||||||||||
Interest expense: | ||||||||||||||||
Bridge loan fee | $ | 7,937 | ||||||||||||||
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 12 Months Ended | |||||||
Dec. 31, 2012 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Schedule of accrued expenses | Accrued expenses at December 31, 2012 and 2011 consisted of the following (in thousands): | |||||||
December 31, | ||||||||
2012 | 2011 | |||||||
Defined contribution plan | $ | 1,400 | $ | 1,088 | ||||
Professional fees | 4,971 | — | ||||||
Accrued payroll and related benefits | 7,532 | 3,024 | ||||||
Sales and use tax | 7,187 | 1,367 | ||||||
Bonus accrual | 3,503 | 4,845 | ||||||
Interest payable | 15,253 | 345 | ||||||
Advance from customer | 1,753 | — | ||||||
Withholding taxes | 2,929 | — | ||||||
Amount payable to noncontrolling shareholder | 9,640 | — | ||||||
Other accrued expenses | 4,845 | 2,229 | ||||||
Total accrued expenses | $ | 59,013 | $ | 12,898 | ||||
Asset_Retirement_Obligation_Ta
Asset Retirement Obligation (Tables) | 12 Months Ended | |||||||
Dec. 31, 2012 | ||||||||
Asset Retirement Obligation Disclosure [Abstract] | ||||||||
Schedule of activity in asset retirement obligation | The following table presents the activity in the Company’s asset retirement obligation for the years ended December 31, 2012 and 2011 (in thousands): | |||||||
December 31, | ||||||||
2012 | 2011 | |||||||
Balance at beginning of period | $ | 15,541 | $ | 12,471 | ||||
Obligations settled | (2,954 | ) | (1,030 | ) | ||||
Accretion expense | 1,299 | 955 | ||||||
Revisions in estimated cash flows | 7,872 | 2,508 | ||||||
Loss on settlement | 367 | 637 | ||||||
Balance at end of period | $ | 22,125 | $ | 15,541 | ||||
Debt_and_Capital_Lease_Obligat1
Debt and Capital Lease Obligations (Tables) | 12 Months Ended | |||||||
Dec. 31, 2012 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Summary of the current and non-current portions of the debt outstanding | The following tables provide a summary of the current and non-current portions of the debt outstanding at December 31, 2012 and 2011 (in thousands): | |||||||
December 31, 2012 | ||||||||
Current | Non-Current | |||||||
10% Senior Secured Notes, net of discount, due June 2020 | $ | — | $ | 636,111 | ||||
3.25% Convertible Notes, net of discount, due June 2016 | — | 198,689 | ||||||
5.00% Debentures, net of discount | — | 2,774 | ||||||
6.00% Convertible Notes, net of discount, due June 2017 | — | 331,977 | ||||||
Bank loans with a weighted average rate of 3.57% due January 2013 - September 2017 | 39,252 | 4,118 | ||||||
Total debt | 39,252 | 1,173,669 | ||||||
Capital lease obligations | 352 | 15,163 | ||||||
Total debt and capital lease obligations | $ | 39,604 | $ | 1,188,832 | ||||
December 31, 2011 | ||||||||
Current | Non-Current | |||||||
3.25% Convertible Notes, net of discount, due June 2016 | $ | — | $ | 190,877 | ||||
Bank loans 2.69% - 3.88% due February 2012 - September 2017 | 1,516 | 5,668 | ||||||
Total debt | $ | 1,516 | $ | 196,545 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of Components of Income Tax Expense | Income tax expense consisted of the following for the years ended December 31, 2012 and 2011(in thousands): | |||||||||||
Years Ended December 31, | ||||||||||||
2012 | 2011 | |||||||||||
Current | ||||||||||||
Federal | $ | (22,418 | ) | $ | 18,721 | |||||||
Foreign | 8,994 | — | ||||||||||
State | (4,197 | ) | 6,952 | |||||||||
Total current | (17,621 | ) | 25,673 | |||||||||
Deferred | ||||||||||||
Federal | (20,786 | ) | 3,687 | |||||||||
Foreign | (11,777 | ) | — | |||||||||
State | (3,891 | ) | (784 | ) | ||||||||
Total deferred | (36,454 | ) | 2,903 | |||||||||
Total tax provision | $ | (54,075 | ) | $ | 28,576 | |||||||
Schedule of Income before Income Tax, Domestic and Foreign | The components of earnings before income taxes, by tax jurisdiction, were as follows for the years ended December 31, 2012, 2011 and 2010 (in thousands): | |||||||||||
Years Ended December 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
United States | $ | (161,129 | ) | $ | 141,801 | $ | (50,774 | ) | ||||
Foreign | (364,799 | ) | 5,109 | — | ||||||||
Total | $ | (525,928 | ) | $ | 146,910 | $ | (50,774 | ) | ||||
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the statutory federal income tax rate of 35% to Molycorp’s effective income tax rate is as follows for the years ended December 31, 2012 and 2011 (in thousands): | |||||||||||
Years Ended December 31, | ||||||||||||
2012 | 2011 | |||||||||||
Federal tax computed at the statutory rate | $ | (184,075 | ) | $ | 51,419 | |||||||
State taxes, net of federal benefit | (5,970 | ) | 5,255 | |||||||||
Change in valuation allowance | 19,515 | (22,730 | ) | |||||||||
Impairment of goodwill and other long-lived assets | 103,563 | — | ||||||||||
Acquisition costs | 4,945 | — | ||||||||||
Changes related to uncertain tax positions | (14,176 | ) | — | |||||||||
Federal and State tax credits | (6,817 | ) | (2,627 | ) | ||||||||
Domestic production activities deduction | 2,493 | (2,493 | ) | |||||||||
Foreign income tax rate differential adjusted for U.S. taxation of foreign profits (1) | 15,716 | (1,735 | ) | |||||||||
Deferred charges | 11,341 | — | ||||||||||
Other items, net | (610 | ) | 1,487 | |||||||||
Income tax expense | $ | (54,075 | ) | $ | 28,576 | |||||||
-1 | The “U.S. Taxation of foreign profits” represents the U.S. tax net of foreign tax credits associated with actual and deemed repatriations of earnings from the Company's non-U.S. subsidiaries. | |||||||||||
Schedule of Deferred Tax Assets and Liabilities | The tax effect of temporary differences and net operating losses, which give rise to deferred tax assets and liabilities, consisted of the following at December 31, 2012 and 2011 (in thousands): | |||||||||||
At December 31, | ||||||||||||
2012 | 2011 | |||||||||||
Deferred tax assets: | ||||||||||||
Current: | ||||||||||||
Inventory | $ | 11,951 | $ | — | ||||||||
Other | 2,468 | 806 | ||||||||||
Total current | 14,419 | 806 | ||||||||||
Non-current: | ||||||||||||
Asset retirement obligation | 165 | 419 | ||||||||||
Mineral resources | 16,780 | 16,975 | ||||||||||
Intangible assets | 13,435 | — | ||||||||||
Stock compensation | 1,724 | 835 | ||||||||||
Net operating losses | 56,156 | 852 | ||||||||||
Research and energy tax credits | 10,473 | — | ||||||||||
Alternative Minimum Tax Credit | 1,611 | — | ||||||||||
Other | 823 | 116 | ||||||||||
Total non-current | 101,167 | 19,197 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Current | ||||||||||||
Inventory | 3,395 | 1,849 | ||||||||||
Other | 541 | 313 | ||||||||||
Total current | 3,936 | 2,162 | ||||||||||
Non-current: | ||||||||||||
Development costs | — | 217 | ||||||||||
Foreign subsidiary earnings and withholding taxes | 32,637 | — | ||||||||||
Property, plant and equipment and intangible assets | 137,010 | 3,647 | ||||||||||
Section 174 costs | 24,814 | 20,094 | ||||||||||
Convertible debt (Notes) | 40,478 | 14,138 | ||||||||||
Other | 6,966 | — | ||||||||||
Total non-current | 241,905 | 38,096 | ||||||||||
Net deferred taxes, before valuation allowance | (130,255 | ) | (20,255 | ) | ||||||||
Valuation allowance | (20,631 | ) | — | |||||||||
Total deferred tax | $ | (150,886 | ) | $ | (20,255 | ) | ||||||
Schedule of Income Tax Contingencies | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in thousands): | |||||||||||
Years Ended December 31, | ||||||||||||
2012 | 2011 | |||||||||||
Balance, beginning of year | $ | 519 | $ | — | ||||||||
Tax position related to current year: | ||||||||||||
Additions | 4,737 | 519 | ||||||||||
Tax positions related to prior years: | ||||||||||||
Additions | 16,109 | — | ||||||||||
Settlements | (13,740 | ) | — | |||||||||
Statute of limitations closures | (1,406 | ) | — | |||||||||
Balance, end of year | $ | 6,219 | $ | 519 | ||||||||
Loss_Earnings_per_Share_Tables
(Loss) Earnings per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Schedule of earnings per share, basic and diluted | ||||||||||||
Years Ended December 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
(In thousands, except share and per share amounts) | (Revised) | |||||||||||
Net (loss) income attributable to Molycorp stockholders | $ | (481,169 | ) | $ | 117,526 | $ | (50,774 | ) | ||||
Dividends on Convertible Preferred Stock | (11,385 | ) | (9,962 | ) | — | |||||||
(Loss) income attributable to common stockholders | (492,554 | ) | 107,564 | (50,774 | ) | |||||||
Weighted average common shares outstanding—basic | 107,064,892 | 83,454,221 | 62,332,054 | |||||||||
Basic (loss) earnings per share | $ | (4.60 | ) | $ | 1.29 | $ | (0.81 | ) | ||||
(Loss) income attributable to common stockholders | $ | (492,554 | ) | $ | 107,564 | $ | (50,774 | ) | ||||
Effect of dilutive 3.25% Convertible Notes | — | 413 | — | |||||||||
(Loss) income attributable to common stockholders adjusted for effect of dilution | (492,554 | ) | 107,977 | (50,774 | ) | |||||||
Weighted average common shares outstanding—diluted | 107,064,892 | 85,220,017 | 62,332,054 | |||||||||
Diluted (loss) earnings per share | $ | (4.60 | ) | $ | 1.27 | $ | (0.81 | ) | ||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2012 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | Yearly amounts recognized in total for all stock-based awards were as follows (in millions): | ||||||||||
2012 | 2011 | 2010 | |||||||||
Compensation cost | $3.40 | $4.70 | $30.10 | ||||||||
Income tax benefit | $0.90 | $0.80 | 0 | ||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The significant assumptions used to estimate the fair value of stock option awards using the Black-Scholes model are as follows: | ||||||||||
2012 | 2011 | 2010 | |||||||||
Risk-free interest rate | n/a | 2.21% | n/a | ||||||||
Expected term (in years) | n/a | 6 | n/a | ||||||||
Volatility | n/a | 60.10% | n/a | ||||||||
Expected dividend yield | n/a | 0 | n/a | ||||||||
Summary of the Activity and Other Information Related to Stock Option Awards | The following table summarizes the activity related to stock options in 2012: | ||||||||||
Stock Options | Number of | Weighted Average | Weighted Average Remaining Contractual Term | Intrinsic Value | |||||||
Shares | Exercise Price | ||||||||||
Outstanding at January 1, 2012 | 52,819 | $ | 48.87 | ||||||||
Granted | — | — | |||||||||
Exercised | — | — | |||||||||
Forfeited and expired | (17,195 | ) | 48.87 | ||||||||
Outstanding at December 31, 2012 | 35,624 | $ | 48.87 | 4.04 | 0 | ||||||
Options exercisable at December 31, 2012 | 11,875 | $ | 48.87 | 4.04 | 0 | ||||||
Additional annual information for stock options is included in the following table (in millions): | |||||||||||
2012 | 2011 | 2010 | |||||||||
Weighted average grant-date fair value of options granted | n/a | $1.50 | $8.00 | ||||||||
Total intrinsic value of options exercised | n/a | n/a | $14.30 | ||||||||
Total fair value of options vested | $0.30 | n/a | $8.00 | ||||||||
PBRSUs | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Summary of Activity Related to Stock-based Awards | The following tables summarize the activity related to restricted stock-based awards for the year ended December 31, 2012: | ||||||||||
PBRSUs | Number of | Weighted Average | |||||||||
Shares | Grant-Date | ||||||||||
Price | |||||||||||
Unvested at January 1, 2012 | — | — | |||||||||
Granted | 45,576 | $ | 30.33 | ||||||||
Forfeited | (16,274 | ) | $ | 30.33 | |||||||
Vested | — | — | |||||||||
Unvested at December 31, 2012 | 29,302 | $ | 30.33 | ||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | Additional annual information for restricted stock-based awards is included in the following tables (in millions): | ||||||||||
PBRSUs | 2012 | 2011 | 2010 | ||||||||
Weighted average grant-date fair value of shares granted | $1.40 | n/a | n/a | ||||||||
Total fair value of shares vested | n/a | n/a | n/a | ||||||||
RSUs | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Summary of Activity Related to Stock-based Awards | |||||||||||
RSUs | Number of | Weighted Average | |||||||||
Shares | Grant-Date | ||||||||||
Price | |||||||||||
Unvested at January 1, 2012 | 78,544 | $ | 56.55 | ||||||||
Granted | 239,618 | $ | 23.12 | ||||||||
Forfeited | (92,848 | ) | $ | 36.92 | |||||||
Vested* | (43,712 | ) | $ | 17.38 | |||||||
Unvested at December 31, 2012 | 181,602 | $ | 32.15 | ||||||||
* | Includes: a) deferral and conversion of a portion of fees payable to certain non-employee directors of the Company; b) deferral and conversion of a portion of the 2011 annual cash bonuses paid to certain executive officers and other employees of the Company; and c) RSUs with an accelerated vesting period that were granted to some employees of Molycorp Canada on the acquisition date. | ||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | |||||||||||
RSUs | 2012 | 2011 | 2010 | ||||||||
Weighted average grant-date fair value of shares granted | $5.50 | $4.50 | n/a | ||||||||
Total fair value of shares vested | $0.80 | $0.10 | n/a | ||||||||
Restricted Stock | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Summary of Activity Related to Stock-based Awards | |||||||||||
RSAs | Number of | Weighted Average | |||||||||
Shares | Grant-Date | ||||||||||
Price | |||||||||||
Unvested at January 1, 2012 | 48,924 | $ | 40.2 | ||||||||
Granted | — | — | |||||||||
Forfeited | (8,950 | ) | $ | 48.87 | |||||||
Vested | — | — | |||||||||
Unvested at December 31, 2012 | 39,974 | $ | 40.09 | ||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | |||||||||||
RSAs | 2012 | 2011 | 2010 | ||||||||
Weighted average grant-date fair value of shares granted | n/a | $0.60 | $1.40 | ||||||||
Total fair value of shares vested | n/a | n/a | $1.40 |
Commitments_and_Contingencies_
Commitments and Contingencies Commitments and Contingencies (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2012 | ||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||
Schedule of future minimum rental payments for operating leases | The Company has certain operating leases for office space, trailers and certain equipment. Remaining annual minimum payments under these leases at December 31, 2012 were as follows: | |||||||||||||||||||
(In thousands) | Total | Less Than | 1 - 3 Years | 4 - 5 Years | More Than | |||||||||||||||
1 Year | 5 Years | |||||||||||||||||||
Operating lease obligations | $ | 9,076 | $ | 3,017 | $ | 4,668 | $ | 1,391 | $ | — | ||||||||||
Schedule of minimum payments for purchase obligations | Future payments for all purchase commitments at December 31, 2012 were as follows: | |||||||||||||||||||
(In thousands) | Total | Less Than | 1 - 3 Years | 4 - 5 Years | More Than | |||||||||||||||
1 Year | 5 Years | |||||||||||||||||||
Purchase obligations and other commitment | $ | 293,383 | $ | 265,727 | $ | 14,017 | $ | 7,131 | $ | 6,508 | ||||||||||
Concentrations_Tables
Concentrations (Tables) | 12 Months Ended | |||||||
Dec. 31, 2012 | ||||||||
Risks and Uncertainties [Abstract] | ||||||||
Summary of percent of revenue, by product, accounting for more than 10% of sales | In prior periods, significant sales by product, as percentage of consolidated revenues, were as follows at the Resources segment: | |||||||
2011 | 2010 | |||||||
Lanthanum products | 23 | % | 39 | % | ||||
Cerium products | 11 | % | 29 | % | ||||
Neodymium and Praseodymium products | 26 | % | 26 | % | ||||
Schedules of Concentration of Risk by Customer Risk Factor | In prior periods, the Resources segment had the following sales by customers in excess of 15% of consolidated revenues (in millions): | |||||||
2011 | 2010 | |||||||
Hitachi Metals Ltd. | $ | 92.2 | nm | |||||
Mitsubishi Unimetals USA | nm | $ | 8.5 | |||||
W.R. Grace & Co.—Conn. | nm | $ | 7.4 | |||||
Chuden Rare Earth Co. Ltd. | nm | $ | 5.4 | |||||
Shin-Etsu Chemical Co. | nm | $ | 4 | |||||
Net_Change_in_Operating_Assets1
Net Change in Operating Assets and Liabilities (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
Net Change in Operating Assets and Liabilities | ||||||||||||
Schedule of changes in operating assets and liabilities, net of the effects of acquisitions and dispositions | Net change in operating assets and liabilities, net of the effects of acquisitions and dispositions, consisted of the following: | |||||||||||
Years Ended December 31, | ||||||||||||
(In thousands) | 2012 | 2011 | 2010 | |||||||||
Decrease (increase) in operating assets: | ||||||||||||
Accounts receivable | $ | 124,983 | $ | (52,805 | ) | $ | (15,200 | ) | ||||
Inventory | (46,126 | ) | (64,543 | ) | (6,872 | ) | ||||||
Prepaid expenses and other assets | 33,520 | (6,363 | ) | 251 | ||||||||
Increase (decrease) in operating liabilities: | ||||||||||||
Accounts payable | (34,972 | ) | 16,233 | 3,797 | ||||||||
Income tax payable | (40,263 | ) | (17,832 | ) | — | |||||||
Interest payable | (40,792 | ) | — | — | ||||||||
Asset retirement obligation | (1,467 | ) | (1,030 | ) | (632 | ) | ||||||
Accrued expenses | (54,763 | ) | 6,151 | (1,481 | ) | |||||||
$ | (59,880 | ) | $ | (120,189 | ) | $ | (20,137 | ) |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
Supplemental Cash Flow Information [Abstract] | ||||||||||||
Summary of Supplemental Cash Flow Information | ||||||||||||
Years Ended December 31, | ||||||||||||
(In thousands) | 2012 | 2011 | 2010 | |||||||||
Net cash paid for: | ||||||||||||
Income taxes | $ | 178 | $ | 43,505 | — | |||||||
Interest, net of capitalized interest | $ | 8,942 | $ | 273 | — | |||||||
Non-cash financing activities and investing activities: | ||||||||||||
Change in accrued capital expenditures | $ | 52,189 | $ | 112,606 | $ | 5,510 | ||||||
Conversion of debt securities to equity securities | $ | 9,400 | — | — | ||||||||
Acquisition of exploration rights | $ | 8,000 | $ | — | — | |||||||
Debt assumed from business acquisitions | $ | 40,691 | $ | 3,184 | — | |||||||
Issuance of common stock for business acquisitions | $ | 284,100 | $ | 72,700 | — | |||||||
Fixed assets additions under capital lease | $ | 15,658 | — | — | ||||||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2012 | |||||||||||
Fair Value Disclosures [Abstract] | |||||||||||
Fair Value Inputs, Liabilities, Quantitative Information | The technique Molycorp used to fair value this derivative is the income approach based on a discounted cash flow model. In addition to the risk free interest rate, which is a Level 1 input within the fair value hierarchy, the following significant unobservable Level 3 inputs were used to fair value the put option at December 31, 2012: | ||||||||||
Effect of 1% increase (a) | Effect of 1% decrease (a) | ||||||||||
Input | (In millions) | ||||||||||
Equity-risk premium | 6.5 | % | $ | (0.8 | ) | $ | 1 | ||||
Risk premium | 12.9 | % | $ | (0.4 | ) | $ | 0.4 | ||||
Size premium | 3.9 | % | $ | (0.4 | ) | $ | 0.5 | ||||
Growth rate | 1 | % | $ | 0.3 | $ | (0.3 | ) | ||||
(a) Assuming all other inputs are unchanged. |
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2012 | ||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||
Schedule of Net Funded Status | The following table sets forth the details of the change in the benefit obligation and plan assets for the Pension Plan and the PBP from June 12, 2012 (the beginning of the Molycorp Canada's reporting period) to December 31, 2012 (in thousands): | |||||||||||||||
Pension Plan | PBP | Total | ||||||||||||||
Change in benefit obligation: | ||||||||||||||||
At June 12, 2012 | $ | 7,975 | $ | 238 | $ | 8,213 | ||||||||||
Service cost | — | — | — | |||||||||||||
Interest cost | 176 | 11 | 187 | |||||||||||||
Net actuarial loss (gain) | 820 | (25 | ) | 795 | ||||||||||||
Benefits paid | (270 | ) | (7 | ) | (277 | ) | ||||||||||
At December 31, 2012 | $ | 8,701 | $ | 217 | $ | 8,918 | ||||||||||
Change in plan assets: | ||||||||||||||||
Fair value of plan assets at June 12, 2012 | $ | 5,379 | $ | — | $ | 5,379 | ||||||||||
Actual return on plan assets | 262 | — | 262 | |||||||||||||
Employer contribution | 255 | 7 | 262 | |||||||||||||
Benefits paid | (270 | ) | (7 | ) | (277 | ) | ||||||||||
Fair value of plan assets at December 31, 2012 | $ | 5,626 | $ | — | $ | 5,626 | ||||||||||
Underfunded status at December 31, 2012 | $ | (3,075 | ) | $ | (217 | ) | $ | (3,292 | ) | |||||||
Schedule of Expected Benefit Payments | The Company's estimate of future benefit payments related to both plans is as follows (in thousands): | |||||||||||||||
2013 | $ | 500 | ||||||||||||||
2014 | 500 | |||||||||||||||
2015 | 500 | |||||||||||||||
2016 | 500 | |||||||||||||||
2017 | 500 | |||||||||||||||
2018-2022 | 2,500 | |||||||||||||||
Schedule of Net Benefit Costs | The components of the net periodic pension expense for the period from June 12, 2012 to December 31, 2012 for the Pension Plan and PBP are set forth below (in thousands): | |||||||||||||||
Pension Plan | PBP | Total | ||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||
Service Cost | $ | — | $ | — | $ | — | ||||||||||
Interest cost | 176 | 11 | 187 | |||||||||||||
Expected return on plan assets | (267 | ) | — | (267 | ) | |||||||||||
Amortization of transition obligation/(asset) | — | — | — | |||||||||||||
Amortization of prior service cost | — | (4 | ) | (4 | ) | |||||||||||
Amortization of actuarial loss | 228 | (7 | ) | 221 | ||||||||||||
Net periodic benefit cost | $ | 137 | $ | — | $ | 137 | ||||||||||
Schedule of Assumptions Used | Weighted average significant actuarial assumptions used in measuring the Company's benefit obligation and net periodic benefit cost for its Pension Plan and PBP were as follows at December 31, 2012: | |||||||||||||||
Pension Plan | PBP | |||||||||||||||
Assumptions for benefit obligation: | ||||||||||||||||
Discount rate | 3.7 | % | 3.5 | % | ||||||||||||
Rate of compensation increase* | — | % | — | % | ||||||||||||
Initial medical trend rate (pre65/post65) | n/a | 7.3 | % | |||||||||||||
Ultimate medical trend rate (pre65/post65) | n/a | 4.5 | % | |||||||||||||
Year ultimate rate reached (pre65/post65) | n/a | 2028 | ||||||||||||||
Assumptions for net periodic benefit cost: | ||||||||||||||||
Discount rate | 4.5 | % | 4.55 | % | ||||||||||||
Expected return on plan assets | 5 | % | n/a | |||||||||||||
Rate of compensation increase* | — | % | — | % | ||||||||||||
Initial medical trend rate (pre65/post65) | n/a | 9.3%/7.4% | ||||||||||||||
Ultimate medical trend rate (pre65/post65) | n/a | 4.5 | % | |||||||||||||
* No assumption was made with regard to the rate of expected compensation increase as there are no new active service participants in the plan. | ||||||||||||||||
PBP | ||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | The effect of a one-percentage point increase or decrease in the assumed heath care cost trend rates for the PBP were as follows at December 31, 2012 (in thousands): | |||||||||||||||
PBP | ||||||||||||||||
Effect of 1% increase in assumed health care cost trend rates: | ||||||||||||||||
Total of service and interest cost components | $ | 1 | ||||||||||||||
Post-employment benefit obligation | $ | 16 | ||||||||||||||
Effect of 1% decrease in assumed health care cost trend rates: | ||||||||||||||||
Total of service and interest cost components | $ | (1 | ) | |||||||||||||
Post-employment benefit obligation | $ | (14 | ) | |||||||||||||
Pension Plan | ||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||
Schedule of Allocation of Plan Assets | At December 31, 2012, the Committee established the following target asset allocation percentages for the Pension Plan: | |||||||||||||||
Pension Plan | ||||||||||||||||
Min | Max | |||||||||||||||
Interest-bearing cash | 5 | % | 10 | % | ||||||||||||
Fixed income securities | 50 | % | 80 | % | ||||||||||||
Equity securities | 20 | % | 30 | % | ||||||||||||
The Pension Plan's assets consisted of the following at December 31, 2012: | ||||||||||||||||
Pension Plan | ||||||||||||||||
Interest-bearing cash | 2.33 | % | ||||||||||||||
Fixed income securities | 74.34 | % | ||||||||||||||
Equity securities | 23.33 | % | ||||||||||||||
The fair value of the Pension Plan assets segregated by the input level within the fair value hierarchy established under GAAP, were as follows at December 31, 2012 (in thousands): | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Pension Plan assets, at fair value: | ||||||||||||||||
Interest-bearing cash | $ | 130 | $ | — | $ | — | $ | 130 | ||||||||
Fixed income securities | 291 | 3,899 | — | 4,190 | ||||||||||||
Equity securities | 1,306 | — | — | 1,306 | ||||||||||||
Total Pension Plan assets | $ | 1,727 | $ | 3,899 | $ | — | $ | 5,626 | ||||||||
Subsidiary_Guarantor_Financial1
Subsidiary Guarantor Financial Information (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2012 | ||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||
Schedule of Condensed Balance Sheet | ||||||||||||||||||||
At December 31, 2012 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Condensed Consolidating Balance Sheets | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Molycorp, Inc. consolidated | |||||||||||||||
(Revised) | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 16,560 | $ | 18,020 | $ | 193,210 | $ | — | $ | 227,790 | ||||||||||
Trade accounts receivable, net | — | 7,738 | 44,692 | — | 52,430 | |||||||||||||||
Inventory | — | 49,416 | 237,960 | — | 287,376 | |||||||||||||||
Deferred charges | — | 2,203 | 7,209 | — | 9,412 | |||||||||||||||
Deferred tax assets | — | — | 11,731 | (1,942 | ) | 9,789 | ||||||||||||||
Income tax receivable | — | 25,087 | — | — | 25,087 | |||||||||||||||
Prepaid expenses and other current assets | — | 9,085 | 12,709 | — | 21,794 | |||||||||||||||
Total current assets | 16,560 | 111,549 | 507,511 | (1,942 | ) | 633,678 | ||||||||||||||
Non-current assets: | ||||||||||||||||||||
Deposits | 1,752 | 24,862 | 155 | — | 26,769 | |||||||||||||||
Property, plant and equipment, net | — | 1,377,147 | 167,157 | — | 1,544,304 | |||||||||||||||
Inventory | — | 26,096 | — | — | 26,096 | |||||||||||||||
Intangible assets, net | — | 508 | 450,430 | — | 450,938 | |||||||||||||||
Investments | — | 45,241 | 18,795 | 64,036 | ||||||||||||||||
Deferred tax assets | 6,030 | — | — | (6,030 | ) | — | ||||||||||||||
Goodwill | — | — | 239,742 | — | 239,742 | |||||||||||||||
Investments in consolidated subsidiaries | 883,319 | 97,960 | — | (981,279 | ) | — | ||||||||||||||
Intercompany accounts receivable | 1,539,877 | 207,035 | 794 | (1,747,706 | ) | — | ||||||||||||||
Other non-current assets | — | 885 | 6,087 | — | 6,972 | |||||||||||||||
Total non-current assets | 2,430,978 | 1,779,734 | 883,160 | (2,735,015 | ) | 2,358,857 | ||||||||||||||
Total assets | $ | 2,447,538 | $ | 1,891,283 | $ | 1,390,671 | $ | (2,736,957 | ) | $ | 2,992,535 | |||||||||
Current liabilities: | ||||||||||||||||||||
Trade accounts payable | $ | — | $ | 191,769 | $ | 50,225 | $ | — | $ | 241,994 | ||||||||||
Accrued expenses | 14,872 | 10,087 | 34,054 | — | 59,013 | |||||||||||||||
Income tax payable | — | — | 15,267 | — | 15,267 | |||||||||||||||
Deferred tax liabilities | — | 1,942 | — | (1,942 | ) | — | ||||||||||||||
Debt and capital lease obligations | — | 352 | 39,252 | — | 39,604 | |||||||||||||||
Other current liabilities | — | 3,539 | — | — | 3,539 | |||||||||||||||
Total current liabilities | 14,872 | 207,689 | 138,798 | (1,942 | ) | 359,417 | ||||||||||||||
Non-current liabilities: | ||||||||||||||||||||
Asset retirement obligation | — | 18,586 | — | — | 18,586 | |||||||||||||||
Deferred tax liabilities | — | 23,130 | 143,575 | (6,030 | ) | 160,675 | ||||||||||||||
Debt and capital lease obligations | 1,166,777 | 15,163 | 6,892 | — | 1,188,832 | |||||||||||||||
Derivative liability | — | — | 7,816 | — | 7,816 | |||||||||||||||
Pension liabilities | — | — | 3,292 | — | 3,292 | |||||||||||||||
Intercompany accounts payable | 49,843 | 1,577,363 | 120,500 | (1,747,706 | ) | — | ||||||||||||||
Other non-current liabilities | — | 1,102 | 1,557 | — | 2,659 | |||||||||||||||
Total non-current liabilities | 1,216,620 | 1,635,344 | 283,632 | (1,753,736 | ) | 1,381,860 | ||||||||||||||
Total liabilities | $ | 1,231,492 | $ | 1,843,033 | $ | 422,430 | $ | (1,755,678 | ) | $ | 1,741,277 | |||||||||
Stockholders’ equity: | ||||||||||||||||||||
Common stock | 139 | — | — | — | 139 | |||||||||||||||
Preferred stock | 2 | — | — | — | 2 | |||||||||||||||
Additional paid-in capital | 1,691,429 | 149,857 | 1,283,863 | (1,433,720 | ) | 1,691,429 | ||||||||||||||
Accumulated other comprehensive loss | (9,433 | ) | — | (9,433 | ) | 9,433 | (9,433 | ) | ||||||||||||
(Deficit) retained earnings | (466,091 | ) | (101,607 | ) | (341,401 | ) | 443,008 | (466,091 | ) | |||||||||||
Total Molycorp stockholders’ equity | 1,216,046 | 48,250 | 933,029 | (981,279 | ) | 1,216,046 | ||||||||||||||
Noncontrolling interests | — | — | 35,212 | — | 35,212 | |||||||||||||||
Total stockholders’ equity | 1,216,046 | 48,250 | 968,241 | (981,279 | ) | 1,251,258 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,447,538 | $ | 1,891,283 | $ | 1,390,671 | $ | (2,736,957 | ) | $ | 2,992,535 | |||||||||
At December 31, 2011 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Condensed Consolidating Balance Sheets | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Molycorp, Inc. consolidated | |||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 407,446 | $ | 10,758 | $ | 651 | $ | — | $ | 418,855 | ||||||||||
Trade accounts receivable, net | — | 58,619 | 12,060 | — | 70,679 | |||||||||||||||
Inventory | — | 52,246 | 59,697 | — | 111,943 | |||||||||||||||
Deferred charges | — | 7,318 | — | — | 7,318 | |||||||||||||||
Prepaid income taxes | — | 10,514 | — | — | 10,514 | |||||||||||||||
Prepaid expenses and other current assets | — | 17,845 | 1,890 | — | 19,735 | |||||||||||||||
Total current assets | 407,446 | 157,300 | 74,298 | — | 639,044 | |||||||||||||||
Non-current assets: | ||||||||||||||||||||
Deposits | 1,751 | 21,362 | 173 | — | 23,286 | |||||||||||||||
Property, plant and equipment, net | — | 500,612 | 61,016 | — | 561,628 | |||||||||||||||
Inventory | — | 4,362 | — | — | 4,362 | |||||||||||||||
Intangible assets, net | — | 573 | 2,499 | — | 3,072 | |||||||||||||||
Investments | — | 20,000 | — | — | 20,000 | |||||||||||||||
Goodwill | — | 1,977 | 1,455 | — | 3,432 | |||||||||||||||
Investments in consolidated subsidiaries | 150,510 | 118,879 | — | (269,389 | ) | — | ||||||||||||||
Intercompany accounts receivable | 476,711 | 25,870 | — | (502,581 | ) | — | ||||||||||||||
Other non-current assets | — | 301 | — | — | 301 | |||||||||||||||
Total non-current assets | 628,972 | 693,936 | 65,143 | (771,970 | ) | 616,081 | ||||||||||||||
Total assets | $ | 1,036,418 | $ | 851,236 | $ | 139,441 | $ | (771,970 | ) | $ | 1,255,125 | |||||||||
Current liabilities: | ||||||||||||||||||||
Trade accounts payable | $ | — | $ | 139,408 | $ | 22,179 | $ | — | $ | 161,587 | ||||||||||
Accrued expenses | 311 | 11,072 | 1,515 | — | 12,898 | |||||||||||||||
Deferred tax liabilities | — | 1,356 | — | — | 1,356 | |||||||||||||||
Debt | — | — | 1,516 | — | 1,516 | |||||||||||||||
Short-term borrowings-related party | — | 870 | — | — | 870 | |||||||||||||||
Current portion of asset retirement obligation | — | 396 | — | — | 396 | |||||||||||||||
Total current liabilities | 311 | 153,102 | 25,210 | — | 178,623 | |||||||||||||||
Non-current liabilities: | ||||||||||||||||||||
Asset retirement obligation | — | 15,145 | — | — | 15,145 | |||||||||||||||
Deferred tax liabilities | — | 18,899 | — | — | 18,899 | |||||||||||||||
Debt | 190,877 | — | 5,668 | — | 196,545 | |||||||||||||||
Intercompany accounts payable | — | 489,180 | 13,401 | (502,581 | ) | — | ||||||||||||||
Other non-current liabilities | — | 683 | — | — | 683 | |||||||||||||||
Total non-current liabilities | 190,877 | 523,907 | 19,069 | (502,581 | ) | 231,272 | ||||||||||||||
Total liabilities | $ | 191,188 | $ | 677,009 | $ | 44,279 | $ | (502,581 | ) | $ | 409,895 | |||||||||
Stockholders’ equity: | ||||||||||||||||||||
Common stock | 84 | — | — | — | 84 | |||||||||||||||
Preferred stock | 2 | — | — | — | 2 | |||||||||||||||
Additional paid-in capital | 838,547 | 149,857 | 91,158 | (241,015 | ) | 838,547 | ||||||||||||||
Accumulated other comprehensive loss | (8,481 | ) | — | (8,481 | ) | 8,481 | (8,481 | ) | ||||||||||||
Retained earnings | 15,078 | 24,370 | 12,485 | (36,855 | ) | 15,078 | ||||||||||||||
Total stockholders’ equity | 845,230 | 174,227 | 95,162 | (269,389 | ) | 845,230 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,036,418 | $ | 851,236 | $ | 139,441 | $ | (771,970 | ) | $ | 1,255,125 | |||||||||
Schedule of Condensed Income Statement and Comprehensive Income | ||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Molycorp, Inc. consolidated | |||||||||||||||
(Revised) | ||||||||||||||||||||
Revenues | $ | — | $ | 139,257 | $ | 415,165 | $ | (25,512 | ) | $ | 528,910 | |||||||||
Costs of sales: | ||||||||||||||||||||
Costs excluding depreciation and amortization | — | (153,461 | ) | (352,706 | ) | 25,512 | (480,655 | ) | ||||||||||||
Depreciation and amortization | — | (12,094 | ) | (18,816 | ) | — | (30,910 | ) | ||||||||||||
Gross profit | — | (26,298 | ) | 43,643 | — | 17,345 | ||||||||||||||
Operating expenses: | ||||||||||||||||||||
Selling, general and administrative | 46 | (86,493 | ) | (27,222 | ) | — | (113,669 | ) | ||||||||||||
Corporate development | (46 | ) | (19,750 | ) | — | — | (19,796 | ) | ||||||||||||
Depreciation, amortization and accretion | — | (2,220 | ) | (19,995 | ) | — | (22,215 | ) | ||||||||||||
Research and development | — | (12,984 | ) | (14,812 | ) | — | (27,796 | ) | ||||||||||||
Impairment of goodwill and other long-lived assets | — | (5,747 | ) | (296,008 | ) | — | (301,755 | ) | ||||||||||||
Operating loss | — | (153,492 | ) | (314,394 | ) | — | (467,886 | ) | ||||||||||||
Other (expense) income: | ||||||||||||||||||||
Other expense | (37,589 | ) | (328 | ) | (881 | ) | — | (38,798 | ) | |||||||||||
Foreign exchange (losses) gains, net | — | — | 2,872 | — | 2,872 | |||||||||||||||
Interest income (expense), net | (18,118 | ) | (3,496 | ) | (502 | ) | — | (22,116 | ) | |||||||||||
Interest income (expense) from intercompany notes | 25,157 | 3,152 | (28,309 | ) | — | — | ||||||||||||||
Equity earnings from consolidated subsidiaries | (456,649 | ) | (23,205 | ) | — | 479,854 | — | |||||||||||||
(487,199 | ) | (23,877 | ) | (26,820 | ) | 479,854 | (58,042 | ) | ||||||||||||
Loss before income taxes and equity earnings | (487,199 | ) | (177,369 | ) | (341,214 | ) | 479,854 | (525,928 | ) | |||||||||||
Income tax benefit | 6,030 | 53,840 | (5,795 | ) | 54,075 | |||||||||||||||
Equity in results of affiliates | — | (2,439 | ) | (1,051 | ) | (3,490 | ) | |||||||||||||
Net loss | (481,169 | ) | (125,968 | ) | (348,060 | ) | 479,854 | (475,343 | ) | |||||||||||
Net income attributable to noncontrolling interest | — | — | (5,826 | ) | — | (5,826 | ) | |||||||||||||
Net loss attributable to Molycorp stockholders | $ | (481,169 | ) | $ | (125,968 | ) | $ | (353,886 | ) | $ | 479,854 | $ | (481,169 | ) | ||||||
Net loss | $ | (481,169 | ) | $ | (125,968 | ) | $ | (348,060 | ) | $ | 479,854 | $ | (475,343 | ) | ||||||
Other comprehensive income: | ||||||||||||||||||||
Foreign currency translation adjustments | — | — | (952 | ) | (952 | ) | ||||||||||||||
Comprehensive loss | $ | (481,169 | ) | $ | (125,968 | ) | $ | (349,012 | ) | $ | 479,854 | $ | (476,295 | ) | ||||||
Comprehensive loss attributable to: | ||||||||||||||||||||
Molycorp stockholders | (481,169 | ) | (125,968 | ) | (343,186 | ) | 479,854 | (470,469 | ) | |||||||||||
Noncontrolling interest | (5,826 | ) | (5,826 | ) | ||||||||||||||||
$ | (481,169 | ) | $ | (125,968 | ) | $ | (349,012 | ) | $ | 479,854 | $ | (476,295 | ) | |||||||
Year Ended December 31, 2011 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Molycorp, Inc. consolidated | |||||||||||||||
Revenues | $ | — | $ | 365,490 | $ | 100,398 | $ | (69,057 | ) | $ | 396,831 | |||||||||
Costs of sales: | ||||||||||||||||||||
Costs excluding depreciation and amortization | — | (158,951 | ) | (74,457 | ) | 69,057 | (164,351 | ) | ||||||||||||
Depreciation and amortization | — | (9,411 | ) | (4,128 | ) | — | (13,539 | ) | ||||||||||||
Gross profit | — | 197,128 | 21,813 | — | 218,941 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Selling, general and administrative | (7 | ) | (48,296 | ) | (2,454 | ) | — | (50,757 | ) | |||||||||||
Corporate development | — | (5,912 | ) | — | — | (5,912 | ) | |||||||||||||
Depreciation, amortization and accretion | — | (1,378 | ) | (310 | ) | — | (1,688 | ) | ||||||||||||
Research and development | — | (7,718 | ) | — | — | (7,718 | ) | |||||||||||||
Operating (loss) income | (7 | ) | 133,824 | 19,049 | — | 152,866 | ||||||||||||||
Other (expense) income: | ||||||||||||||||||||
Other expense | — | (153 | ) | — | — | (153 | ) | |||||||||||||
Foreign exchange losses, net | — | — | (5,415 | ) | — | (5,415 | ) | |||||||||||||
Interest (expense) income, net | (499 | ) | 248 | (137 | ) | — | (388 | ) | ||||||||||||
Interest income (expense) from intercompany notes | 424 | (296 | ) | (128 | ) | — | — | |||||||||||||
Equity earnings from consolidated subsidiaries | 117,608 | 12,485 | — | (130,093 | ) | — | ||||||||||||||
117,533 | 12,284 | (5,680 | ) | (130,093 | ) | (5,956 | ) | |||||||||||||
Income before income taxes | 117,526 | 146,108 | 13,369 | (130,093 | ) | 146,910 | ||||||||||||||
Income tax expense | — | (28,500 | ) | (76 | ) | — | (28,576 | ) | ||||||||||||
Net income | 117,526 | 117,608 | 13,293 | (130,093 | ) | 118,334 | ||||||||||||||
Net income attributable to noncontrolling interest | — | — | (808 | ) | — | (808 | ) | |||||||||||||
Net income attributable to Molycorp stockholders | $ | 117,526 | $ | 117,608 | $ | 12,485 | $ | (130,093 | ) | $ | 117,526 | |||||||||
Net income | $ | 117,526 | $ | 117,608 | $ | 13,293 | $ | (130,093 | ) | $ | 118,334 | |||||||||
Other comprehensive income: | ||||||||||||||||||||
Foreign currency translation adjustments | — | — | (8,481 | ) | — | (8,481 | ) | |||||||||||||
Comprehensive income (loss) | $ | 117,526 | $ | 117,608 | $ | 4,812 | $ | (130,093 | ) | $ | 109,853 | |||||||||
Comprehensive income (loss) attributable to: | ||||||||||||||||||||
Molycorp stockholders | 117,526 | 117,608 | 4,427 | (130,093 | ) | 109,468 | ||||||||||||||
Noncontrolling interest | — | — | 385 | — | 385 | |||||||||||||||
$ | 117,526 | $ | 117,608 | $ | 4,812 | $ | (130,093 | ) | $ | 109,853 | ||||||||||
Year Ended December 31, 2010 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Condensed Consolidating Statements of Operations | Parent | Guarantor Subsidiaries | Eliminations | Molycorp, Inc. consolidated | ||||||||||||||||
Revenues | $ | — | $ | 35,157 | $ | — | $ | 35,157 | ||||||||||||
Costs of sales: | ||||||||||||||||||||
Costs excluding depreciation and amortization | — | (28,797 | ) | — | (28,797 | ) | ||||||||||||||
Depreciation and amortization | — | (5,694 | ) | — | (5,694 | ) | ||||||||||||||
Gross profit | — | 666 | — | 666 | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||
Selling, general and administrative | (436 | ) | (44,739 | ) | — | (45,175 | ) | |||||||||||||
Depreciation, amortization and accretion | — | (1,231 | ) | — | (1,231 | ) | ||||||||||||||
Research and development | — | (2,338 | ) | — | (2,338 | ) | ||||||||||||||
Impairment of long-lived assets | — | (3,100 | ) | — | (3,100 | ) | ||||||||||||||
Operating loss | (436 | ) | (50,742 | ) | — | (51,178 | ) | |||||||||||||
Other (expense) income: | ||||||||||||||||||||
Other income | — | 155 | — | 155 | ||||||||||||||||
Interest income, net | 249 | — | — | 249 | ||||||||||||||||
Equity earnings from consolidated subsidiaries | (50,587 | ) | — | 50,587 | — | |||||||||||||||
$ | (50,338 | ) | $ | 155 | $ | 50,587 | $ | 404 | ||||||||||||
Net loss | $ | (50,774 | ) | $ | (50,587 | ) | $ | 50,587 | $ | (50,774 | ) | |||||||||
Schedule of Condensed Cash Flow Statement | ||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Molycorp, Inc. consolidated | |||||||||||||||
(Revised) | ||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (13,207 | ) | $ | (112,386 | ) | $ | 35,958 | $ | — | $ | (89,635 | ) | |||||||
Cash flows from investing activities: | ||||||||||||||||||||
Cash paid in connection with acquisitions, net of cash acquired | — | — | (591,011 | ) | — | (591,011 | ) | |||||||||||||
Loans to subsidiaries | (683,063 | ) | — | — | 683,063 | — | ||||||||||||||
Loans to Parent | — | (37,589 | ) | — | 37,589 | — | ||||||||||||||
Intercompany advances made | (1,009,014 | ) | — | — | 1,009,014 | — | ||||||||||||||
Repayments from subsidiaries | 87,824 | — | — | (87,824 | ) | — | ||||||||||||||
Investment in subsidiaries | (350,000 | ) | — | — | 350,000 | — | ||||||||||||||
Notes receivable to non-guarantor | — | (227,512 | ) | — | 227,512 | — | ||||||||||||||
Repayments of notes receivable from non-guarantor | — | 110,000 | — | (110,000 | ) | — | ||||||||||||||
Investment in joint ventures | — | (27,680 | ) | (5,364 | ) | — | (33,044 | ) | ||||||||||||
Deposits | — | (3,999 | ) | — | — | (3,999 | ) | |||||||||||||
Capital expenditures | — | (766,951 | ) | (24,518 | ) | — | (791,469 | ) | ||||||||||||
Acquisition of exploration rights | — | — | (8,167 | ) | — | (8,167 | ) | |||||||||||||
Other investing activities | — | — | 4,761 | — | 4,761 | |||||||||||||||
Net cash (used in) provided by investing activities | (1,954,253 | ) | (953,731 | ) | (624,299 | ) | 2,109,354 | (1,422,929 | ) | |||||||||||
Cash flows provided from financing activities: | ||||||||||||||||||||
Capital contributions from stockholder | 390,093 | — | — | — | 390,093 | |||||||||||||||
Capital contributions from Parent | — | — | 350,000 | (350,000 | ) | — | ||||||||||||||
Repayments of debt | (870 | ) | (227,838 | ) | — | (228,708 | ) | |||||||||||||
Net proceeds from sale of common stock | 132,130 | — | — | — | 132,130 | |||||||||||||||
Issuance of 10% Senior Secured Notes | 635,373 | — | — | — | 635,373 | |||||||||||||||
Issuance of 6.00% Convertible Notes | 395,712 | — | — | — | 395,712 | |||||||||||||||
Payments of preferred dividends | (11,385 | ) | — | — | — | (11,385 | ) | |||||||||||||
Dividend paid to noncontrolling interests | — | (5,977 | ) | — | (5,977 | ) | ||||||||||||||
Proceeds from debt | — | — | 14,699 | — | 14,699 | |||||||||||||||
Borrowings from parent | — | 227,512 | 455,551 | (683,063 | ) | — | ||||||||||||||
Repayments of borrowings to parent | — | (34,327 | ) | (53,497 | ) | 87,824 | — | |||||||||||||
Borrowing from guarantor | 37,589 | — | 227,512 | (265,101 | ) | — | ||||||||||||||
Repayments of borrowings to guarantor | — | — | (110,000 | ) | 110,000 | — | ||||||||||||||
Intercompany advances owed | — | 881,179 | 127,835 | (1,009,014 | ) | — | ||||||||||||||
Other financing activities | (2,938 | ) | (115 | ) | 1,499 | — | (1,554 | ) | ||||||||||||
Net cash provided by (used in) financing activities | 1,576,574 | 1,073,379 | 779,784 | (2,109,354 | ) | 1,320,383 | ||||||||||||||
Effect of exchange rate changes on cash | — | — | 1,116 | — | 1,116 | |||||||||||||||
Net change in cash and cash equivalents | (390,886 | ) | 7,262 | 192,559 | — | (191,065 | ) | |||||||||||||
Cash and cash equivalents at beginning of the period | 407,446 | 10,758 | 651 | — | 418,855 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 16,560 | $ | 18,020 | $ | 193,210 | $ | — | $ | 227,790 | ||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Molycorp, Inc. consolidated | |||||||||||||||
Net cash provided by (used in) operating activities | $ | 903 | $ | 44,211 | $ | (2,149 | ) | $ | — | $ | 42,965 | |||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Cash paid in connection with acquisitions, net of cash acquired | — | (30,128 | ) | 105 | — | (30,023 | ) | |||||||||||||
Cash paid to acquire non-marketable securities | — | (20,000 | ) | — | — | (20,000 | ) | |||||||||||||
Loans to subsidiaries | (49,430 | ) | — | — | 49,430 | — | ||||||||||||||
Intercompany advances made | (290,633 | ) | — | — | 290,633 | — | ||||||||||||||
Deposits | 16,449 | (13,552 | ) | — | — | 2,897 | ||||||||||||||
Capital expenditures | — | (294,010 | ) | (8,170 | ) | — | (302,180 | ) | ||||||||||||
Other investing activities | — | 16 | (100 | ) | — | (84 | ) | |||||||||||||
Net cash provided by (used in) investing activities | (323,614 | ) | (357,674 | ) | (8,165 | ) | 340,063 | (349,390 | ) | |||||||||||
Cash flows provided from financing activities: | ||||||||||||||||||||
Repayments of short-term borrowings—related party | — | (3,150 | ) | — | — | (3,150 | ) | |||||||||||||
Repayments of debt | — | — | (4,428 | ) | — | (4,428 | ) | |||||||||||||
Net proceeds from sale of preferred stock | 199,642 | — | — | — | 199,642 | |||||||||||||||
Net proceeds from sale of Convertible Notes | 223,100 | — | — | — | 223,100 | |||||||||||||||
Payments of preferred dividends | (9,015 | ) | — | — | — | (9,015 | ) | |||||||||||||
Proceeds from debt | — | — | 5,131 | — | 5,131 | |||||||||||||||
Intercompany advances owed | — | 290,001 | 632 | (290,633 | ) | — | ||||||||||||||
Net borrowings from parent | — | 37,370 | 12,060 | (49,430 | ) | — | ||||||||||||||
Net cash provided by financing activities | 413,727 | 324,221 | 13,395 | (340,063 | ) | 411,280 | ||||||||||||||
Effect of exchange rate changes on cash | — | — | (2,430 | ) | — | (2,430 | ) | |||||||||||||
Net change in cash and cash equivalents | 91,016 | 10,758 | 651 | — | 102,425 | |||||||||||||||
Cash and cash equivalents at beginning of the period | 316,430 | — | — | — | 316,430 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 407,446 | $ | 10,758 | $ | 651 | $ | — | $ | 418,855 | ||||||||||
Year Ended December 31, 2010 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | Parent | Guarantor Subsidiaries | Eliminations | Molycorp, Inc. consolidated | ||||||||||||||||
Net cash (used in) provided by operating activities | $ | (187 | ) | $ | (28,530 | ) | $ | — | $ | (28,717 | ) | |||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Investment in consolidated subsidiary | (15,000 | ) | — | 15,000 | — | |||||||||||||||
Deposits | (18,200 | ) | (8,000 | ) | — | (26,200 | ) | |||||||||||||
Capital expenditures | — | (33,129 | ) | — | (33,129 | ) | ||||||||||||||
Intercompany advances made | (43,931 | ) | — | 43,931 | — | |||||||||||||||
Other investing activities | — | (102 | ) | — | (102 | ) | ||||||||||||||
Net cash used in investing activities | (77,131 | ) | (41,231 | ) | 58,931 | (59,431 | ) | |||||||||||||
Cash flows provided from financing activities: | ||||||||||||||||||||
Capital contributions from original stockholders | 15,000 | — | — | 15,000 | ||||||||||||||||
Capital contributions from parent company | — | 15,000 | (15,000 | ) | — | |||||||||||||||
Repayments of short-term borrowings—related party | — | (1,107 | ) | — | (1,107 | ) | ||||||||||||||
Net proceeds from sale of common stock in conjunction with initial public offering | 378,633 | — | — | 378,633 | ||||||||||||||||
Proceeds from short-term borrowings—related party | — | 5,008 | — | 5,008 | ||||||||||||||||
Intercompany advances owed | — | 43,931 | (43,931 | ) | — | |||||||||||||||
Other financing activities | 115 | — | — | 115 | ||||||||||||||||
Net cash provided by financing activities | 393,748 | 62,832 | (58,931 | ) | 397,649 | |||||||||||||||
Net change in cash and cash equivalents | 316,430 | (6,929 | ) | — | 309,501 | |||||||||||||||
Cash and cash equivalents at beginning of the period | — | 6,929 | — | 6,929 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 316,430 | $ | — | $ | — | $ | 316,430 | ||||||||||||
Schedule of Error Corrections and Prior Period Adjustments | The revised change in presentation to appropriately reflect these borrowings as financing activities in 2011 and 2010 is outlined below. | |||||||||||||||||||
Guarantor Subsidiaries | As reported | Adjustment | Revised | |||||||||||||||||
2011 | (In thousands) | |||||||||||||||||||
Intercompany advances made | $ | 290,001 | $ | (290,001 | ) | — | ||||||||||||||
Net cash used in investing activities | $ | (67,673 | ) | $ | (290,001 | ) | $ | (357,674 | ) | |||||||||||
Intercompany advances owed | — | $ | 290,001 | $ | 290,001 | |||||||||||||||
Net cash provided by financing activities | $ | 34,220 | $ | 290,001 | $ | 324,221 | ||||||||||||||
2010 | (In thousands) | |||||||||||||||||||
Intercompany advances made | $ | 43,931 | $ | (43,931 | ) | — | ||||||||||||||
Net cash used in investing activities | $ | 2,700 | $ | (43,931 | ) | $ | (41,231 | ) | ||||||||||||
Intercompany advances owed | — | $ | 43,931 | $ | 43,931 | |||||||||||||||
Net cash provided by financing activities | $ | 18,901 | $ | 43,931 | $ | 62,832 | ||||||||||||||
Non-Guarantor Subsidiaries | As reported | Adjustment | Revised | |||||||||||||||||
2011 | (In thousands) | |||||||||||||||||||
Intercompany advances made | $ | 632 | $ | (632 | ) | — | ||||||||||||||
Net cash used in investing activities | $ | (7,533 | ) | $ | (632 | ) | $ | (8,165 | ) | |||||||||||
Intercompany advances owed | $ | — | $ | 632 | 632 | |||||||||||||||
Net cash provided by financing activities | $ | 12,763 | $ | 632 | $ | 13,395 | ||||||||||||||
2010 | ||||||||||||||||||||
Net cash used in investing activities | — | — | — | |||||||||||||||||
Net cash provided by financing activities | — | — | — | |||||||||||||||||
The tables below illustrate the changes in the presentation of the subsidiary guarantor financial information in 2012 to correctly reflect the forward contract loss between Parent and Guarantor Subsidiaries, as well as to reflect the revision of the consolidated financial statements in connection with the final allocation of the consideration transferred to the net assets of Molycorp Canada. | ||||||||||||||||||||
Parent | As reported | Adjustment | Revised | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||
Other expense | $ | — | $ | (37,589 | ) | $ | (37,589 | ) | ||||||||||||
Income tax (expense) benefit | $ | (8,630 | ) | $ | 14,660 | $ | 6,030 | |||||||||||||
Equity earnings from consolidated subsidiaries | $ | (447,963 | ) | $ | (8,686 | ) | $ | (456,649 | ) | |||||||||||
Net loss | $ | (449,554 | ) | $ | (31,615 | ) | $ | (481,169 | ) | |||||||||||
Net cash provided by (used in) operating activities | $ | 24,382 | $ | (37,589 | ) | $ | (13,207 | ) | ||||||||||||
Borrowing from guarantor | $ | — | $ | 37,589 | $ | 37,589 | ||||||||||||||
Net cash provided by financing activities | $ | 1,538,985 | $ | 37,589 | $ | 1,576,574 | ||||||||||||||
At December 31, 2012 | ||||||||||||||||||||
Deferred tax assets (non-current) | $ | — | $ | 6,030 | $ | 6,030 | ||||||||||||||
Investments in consolidated subsidiaries | $ | 891,625 | $ | (8,306 | ) | $ | 883,319 | |||||||||||||
Intercompany accounts receivable | $ | 1,567,255 | $ | (27,378 | ) | $ | 1,539,877 | |||||||||||||
Total assets | $ | 2,477,192 | $ | (29,654 | ) | $ | 2,447,538 | |||||||||||||
Income tax payable | $ | 2,746 | $ | (2,746 | ) | $ | — | |||||||||||||
Total current liabilities | $ | 17,618 | $ | (2,746 | ) | $ | 14,872 | |||||||||||||
Deferred tax liabilities (non-current) | $ | 5,884 | $ | (5,884 | ) | $ | — | |||||||||||||
Total liabilities | $ | 1,240,122 | $ | (8,630 | ) | $ | 1,231,492 | |||||||||||||
Additional paid-in capital | $ | 1,680,838 | $ | 10,591 | $ | 1,691,429 | ||||||||||||||
Deficit | $ | (434,476 | ) | $ | (31,615 | ) | $ | (466,091 | ) | |||||||||||
Total stockholders' equity | $ | 1,237,070 | $ | (21,024 | ) | $ | 1,216,046 | |||||||||||||
Guarantor Subsidiaries | As reported | Adjustment | Revised | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||
Other expense | $ | (37,917 | ) | $ | 37,589 | $ | (328 | ) | ||||||||||||
Income tax benefit (expense) | $ | 68,500 | $ | (14,660 | ) | $ | 53,840 | |||||||||||||
Net (loss) income | $ | (148,897 | ) | $ | 22,929 | $ | (125,968 | ) | ||||||||||||
Net cash (used in) provided by operating activities | $ | (149,975 | ) | $ | 37,589 | $ | (112,386 | ) | ||||||||||||
Loans to parent | $ | — | $ | (37,589 | ) | $ | (37,589 | ) | ||||||||||||
Net cash used in investing activities | $ | (916,142 | ) | $ | (37,589 | ) | $ | (953,731 | ) | |||||||||||
At December 31, 2012 | ||||||||||||||||||||
Intercompany accounts receivable | $ | 169,446 | $ | 37,589 | $ | 207,035 | ||||||||||||||
Total assets | $ | 1,853,694 | $ | 37,589 | $ | 1,891,283 | ||||||||||||||
Deferred tax liabilities (non-current) | $ | 8,470 | $ | 14,660 | $ | 23,130 | ||||||||||||||
Total liabilities | $ | 1,828,373 | $ | 14,660 | $ | 1,843,033 | ||||||||||||||
Deficit | $ | (124,536 | ) | $ | 22,929 | $ | (101,607 | ) | ||||||||||||
Total stockholders' equity | $ | 25,321 | $ | 22,929 | $ | 48,250 | ||||||||||||||
Unaudited_Supplementary_Data_T
Unaudited Supplementary Data (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2012 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Schedule of Quarterly Financial Information | The following is a summary of the selected quarterly financial information (unaudited): | |||||||||||||||
2012 | ||||||||||||||||
Quarter ended | ||||||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | |||||||||||||
(Revised) | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Revenues | $ | 84,470 | $ | 104,577 | $ | 205,604 | $ | 134,259 | ||||||||
Gross profit (loss) | $ | 31,027 | $ | (4,073 | ) | $ | 10,864 | $ | (20,473 | ) | ||||||
Loss before income taxes and equity earnings | $ | (5,434 | ) | $ | (93,970 | ) | $ | (43,745 | ) | $ | (382,779 | ) | ||||
Net loss | $ | (3,478 | ) | $ | (66,924 | ) | $ | (15,451 | ) | $ | (389,490 | ) | ||||
Net loss attributable to Molycorp stockholders | $ | (3,478 | ) | $ | (67,604 | ) | $ | (18,891 | ) | $ | (391,196 | ) | ||||
Loss per share of common stock: (a) | ||||||||||||||||
Basic | $ | (0.07 | ) | $ | (0.71 | ) | $ | (0.19 | ) | $ | (3.16 | ) | ||||
Diluted | $ | (0.07 | ) | $ | (0.71 | ) | $ | (0.19 | ) | $ | (3.16 | ) | ||||
2011 | ||||||||||||||||
Quarter ended | ||||||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Revenues | $ | 26,261 | $ | 99,615 | $ | 138,050 | $ | 132,905 | ||||||||
Gross profit | $ | 9,584 | $ | 56,692 | $ | 82,392 | $ | 70,272 | ||||||||
(Loss) income before income taxes and equity earnings | $ | (1,999 | ) | $ | 42,143 | $ | 64,157 | $ | 42,607 | |||||||
Net (loss) income | $ | (2,198 | ) | $ | 48,755 | $ | 45,101 | $ | 26,674 | |||||||
Net (loss) income attributable to Molycorp stockholders | $ | (2,198 | ) | $ | 47,787 | $ | 45,356 | $ | 26,579 | |||||||
(Loss) income per share of common stock: (a) | ||||||||||||||||
Basic | $ | (0.04 | ) | $ | 0.54 | $ | 0.51 | $ | 0.27 | |||||||
Diluted | $ | (0.04 | ) | $ | 0.53 | $ | 0.49 | $ | 0.26 | |||||||
(a) | The sum of the quarterly income (loss) per share may be different than the per share amount for the year as the calculation for each quarter is based on the weighted average shares outstanding for that period. |
Company_Background_Narrative_D
Company Background Narrative (Details) | Dec. 31, 2012 |
location | |
country | |
continent | |
employee | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of continents in which entity operates | 3 |
Number of employees | 2,700 |
Number of worldwide locations | 27 |
Number of countries in which entity operates | 11 |
Recovered_Sheet1
Summary of significant accounting policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | |||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||
Allowance for doubtful accounts | $2,600,000 | $0 | $2,600,000 | $0 | ||||||||||||||||
Impairment of finite-lived intangible assets | -6,000,000 | |||||||||||||||||||
Impairment of long-lived assets to be disposed of | 5,900,000 | 5,900,000 | 3,100,000 | |||||||||||||||||
Impairment of goodwill | 289,900,000 | 289,894,000 | 0 | 0 | ||||||||||||||||
Valuation allowance | -20,631,000 | 0 | -20,631,000 | 0 | ||||||||||||||||
Investments | 64,036,000 | 20,000,000 | 64,036,000 | 20,000,000 | ||||||||||||||||
Deferred tax assets | 0 | 0 | ||||||||||||||||||
Total non-current assets | 2,358,857,000 | 616,081,000 | 2,358,857,000 | 616,081,000 | ||||||||||||||||
Total assets | 2,992,535,000 | 1,255,125,000 | 2,992,535,000 | 1,255,125,000 | ||||||||||||||||
Deferred tax liabilities | 160,675,000 | 18,899,000 | 160,675,000 | 18,899,000 | ||||||||||||||||
Total non-current liabilities | 1,381,860,000 | 231,272,000 | 1,381,860,000 | 231,272,000 | ||||||||||||||||
Additional paid-in capital | 1,691,429,000 | 838,547,000 | 1,691,429,000 | 838,547,000 | ||||||||||||||||
Deficit | -466,091,000 | 15,078,000 | -466,091,000 | 15,078,000 | ||||||||||||||||
Total Molycorp stockholders' equity | 1,216,046,000 | 845,230,000 | 1,216,046,000 | 845,230,000 | ||||||||||||||||
Noncontrolling interests | 35,212,000 | 0 | 35,212,000 | 0 | ||||||||||||||||
Total stockholders’ equity | 1,251,258,000 | 845,230,000 | 1,251,258,000 | 845,230,000 | 446,513,000 | 74,615,000 | ||||||||||||||
Impairment of goodwill and other long-lived assets | 301,755,000 | 0 | 3,100,000 | |||||||||||||||||
Loss before income taxes and equity earnings | -382,779,000 | -43,745,000 | -93,970,000 | -5,434,000 | 42,607,000 | 64,157,000 | 42,143,000 | -1,999,000 | -525,928,000 | 146,910,000 | -50,774,000 | |||||||||
Net loss | -389,490,000 | -15,451,000 | -66,924,000 | -3,478,000 | 26,674,000 | 45,101,000 | 48,755,000 | -2,198,000 | -475,343,000 | 118,334,000 | -50,774,000 | |||||||||
Net loss attributable to Molycorp stockholders | -391,196,000 | -18,891,000 | -67,604,000 | -3,478,000 | 26,579,000 | 45,356,000 | 47,787,000 | -2,198,000 | -481,169,000 | 117,526,000 | -50,774,000 | |||||||||
Comprehensive loss | -476,295,000 | 109,853,000 | -50,774,000 | |||||||||||||||||
Comprehensive loss attributable to Molycorp stockholders | -470,469,000 | 109,468,000 | -50,774,000 | |||||||||||||||||
Basic (in dollars per share) | ($3.16) | [1] | ($0.19) | [1] | ($0.71) | [1] | ($0.07) | [1] | $0.27 | [1] | $0.51 | [1] | $0.54 | [1] | ($0.04) | [1] | ($4.60) | $1.29 | ($0.81) | |
Diluted (in dollars per share) | ($3.16) | [1] | ($0.19) | [1] | ($0.71) | [1] | ($0.07) | [1] | $0.26 | [1] | $0.49 | [1] | $0.53 | [1] | ($0.04) | [1] | ($4.60) | $1.27 | ($0.81) | |
As originally reported | ||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||
Investments | 65,126,000 | 65,126,000 | ||||||||||||||||||
Deferred tax assets | 1,083,000 | 1,083,000 | ||||||||||||||||||
Total non-current assets | 2,361,030,000 | 2,361,030,000 | ||||||||||||||||||
Total assets | 2,994,708,000 | 2,994,708,000 | ||||||||||||||||||
Deferred tax liabilities | 166,215,000 | 166,215,000 | ||||||||||||||||||
Total non-current liabilities | 1,387,400,000 | 1,387,400,000 | ||||||||||||||||||
Additional paid-in capital | 1,680,838,000 | 1,680,838,000 | ||||||||||||||||||
Deficit | -434,476,000 | -434,476,000 | ||||||||||||||||||
Total Molycorp stockholders' equity | 1,237,070,000 | 1,237,070,000 | ||||||||||||||||||
Noncontrolling interests | 10,821,000 | 10,821,000 | ||||||||||||||||||
Total stockholders’ equity | 1,247,891,000 | 1,247,891,000 | ||||||||||||||||||
Impairment of goodwill and other long-lived assets | 270,140,000 | |||||||||||||||||||
Loss before income taxes and equity earnings | -494,313,000 | |||||||||||||||||||
Net loss | -443,728,000 | |||||||||||||||||||
Net loss attributable to Molycorp stockholders | -449,554,000 | |||||||||||||||||||
Comprehensive loss | -444,680,000 | |||||||||||||||||||
Comprehensive loss attributable to Molycorp stockholders | -438,854,000 | |||||||||||||||||||
Basic (in dollars per share) | ($4.31) | |||||||||||||||||||
Diluted (in dollars per share) | ($4.31) | |||||||||||||||||||
Foreign Currency Gain (Loss) | ||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||
Intercompany foreign currency translation loss | 200,000 | 2,700,000 | ||||||||||||||||||
Molycorp Canada | ||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||
Impairment of goodwill | 287,900,000 | |||||||||||||||||||
Molycorp Canada | Revision | ||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||
Investments | -1,090,000 | -1,090,000 | ||||||||||||||||||
Deferred tax assets | -1,083,000 | -1,083,000 | ||||||||||||||||||
Total non-current assets | -2,173,000 | -2,173,000 | ||||||||||||||||||
Total assets | -2,173,000 | -2,173,000 | ||||||||||||||||||
Deferred tax liabilities | -5,540,000 | -5,540,000 | ||||||||||||||||||
Total non-current liabilities | -5,540,000 | -5,540,000 | ||||||||||||||||||
Additional paid-in capital | 10,591,000 | 10,591,000 | ||||||||||||||||||
Deficit | -31,615,000 | -31,615,000 | ||||||||||||||||||
Total Molycorp stockholders' equity | -21,024,000 | -21,024,000 | ||||||||||||||||||
Noncontrolling interests | 24,391,000 | 24,391,000 | ||||||||||||||||||
Total stockholders’ equity | 3,367,000 | 3,367,000 | ||||||||||||||||||
Impairment of goodwill and other long-lived assets | 31,615,000 | |||||||||||||||||||
Loss before income taxes and equity earnings | -31,615,000 | |||||||||||||||||||
Net loss | -31,615,000 | |||||||||||||||||||
Net loss attributable to Molycorp stockholders | -31,615,000 | |||||||||||||||||||
Comprehensive loss | -31,615,000 | |||||||||||||||||||
Comprehensive loss attributable to Molycorp stockholders | -31,615,000 | |||||||||||||||||||
Basic (in dollars per share) | ($0.29) | |||||||||||||||||||
Diluted (in dollars per share) | ($0.29) | |||||||||||||||||||
Magnetic Materials and Alloys | ||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||
Impairment of goodwill | 112,694,000 | |||||||||||||||||||
Total assets | 593,197,000 | 30,061,000 | 593,197,000 | 30,061,000 | ||||||||||||||||
Loss before income taxes and equity earnings | -126,981,000 | 2,336,000 | ||||||||||||||||||
Magnetic Materials and Alloys | Molycorp Canada | ||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||
Impairment of finite-lived intangible assets | 6,000,000 | |||||||||||||||||||
Resources | ||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||
Impairment of long-lived assets to be disposed of | 3,800,000 | |||||||||||||||||||
Total assets | 1,802,842,000 | 824,712,000 | 1,802,842,000 | 824,712,000 | ||||||||||||||||
Loss before income taxes and equity earnings | -70,469,000 | 218,391,000 | ||||||||||||||||||
Rare Metals | ||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||
Impairment of long-lived assets to be disposed of | 2,000,000 | |||||||||||||||||||
Impairment of goodwill | 16,068,000 | |||||||||||||||||||
Total assets | 117,961,000 | 71,634,000 | 117,961,000 | 71,634,000 | ||||||||||||||||
Loss before income taxes and equity earnings | -19,918,000 | -634,000 | ||||||||||||||||||
Customer relationships | ||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||
Impairment of finite-lived intangible assets | 0 | |||||||||||||||||||
Chinese Land Use Rights | ||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||
Finite-lived intangible asset useful life | 50 years | |||||||||||||||||||
Impairment of finite-lived intangible assets | 0 | |||||||||||||||||||
Rare earth quotas | ||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||
Impairment of finite-lived intangible assets | 0 | |||||||||||||||||||
Patents | ||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||
Impairment of finite-lived intangible assets | -6,000,000 | |||||||||||||||||||
Trade names | ||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||
Impairment of finite-lived intangible assets | $0 | |||||||||||||||||||
Minimum | Customer relationships | ||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||
Finite-lived intangible asset useful life | 2 years | |||||||||||||||||||
Minimum | Rare earth quotas | ||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||
Finite-lived intangible asset useful life | 2 years | |||||||||||||||||||
Minimum | Patents | ||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||
Finite-lived intangible asset useful life | 2 years | |||||||||||||||||||
Minimum | Trade names | ||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||
Finite-lived intangible asset useful life | 2 years | |||||||||||||||||||
Maximum | Customer relationships | ||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||
Finite-lived intangible asset useful life | 16 years | |||||||||||||||||||
Maximum | Rare earth quotas | ||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||
Finite-lived intangible asset useful life | 16 years | |||||||||||||||||||
Maximum | Patents | ||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||
Finite-lived intangible asset useful life | 16 years | |||||||||||||||||||
Maximum | Trade names | ||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||
Finite-lived intangible asset useful life | 16 years | |||||||||||||||||||
Buildings and improvements | Minimum | ||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||
Property, plant and equipment useful life | 4 years | |||||||||||||||||||
Buildings and improvements | Maximum | ||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||
Property, plant and equipment useful life | 40 years | |||||||||||||||||||
Plant and equipment | Minimum | ||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||
Property, plant and equipment useful life | 2 years | |||||||||||||||||||
Plant and equipment | Maximum | ||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||
Property, plant and equipment useful life | 15 years | |||||||||||||||||||
[1] | The sum of the quarterly income (loss) per share may be different than the per share amount for the year as the calculation for each quarter is based on the weighted average shares outstanding for that period. |
Capital_Requirements_Details
Capital Requirements (Details) (USD $) | 12 Months Ended | 35 Months Ended | ||||||||
Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2012 | Oct. 09, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | |
JAMR | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | |||||
Molycorp Mountain Pass facility | All operating segments | JAMR | ||||||||
Mg | ||||||||||
Capital Expenditures [Line Items] | ||||||||||
Total current estimated costs | $1,550,000,000 | |||||||||
Annual design capacity (in metric tonnes) | 19,050 | |||||||||
Capital expenditures | 791,469,000 | 302,180,000 | 33,129,000 | 1,300,000,000 | ||||||
Expected Future Capital Expenditures, Remainder of Fiscal Year | 130,000,000 | |||||||||
Cash and cash equivalents | 227,790,000 | 418,855,000 | 316,430,000 | 6,929,000 | 264,200,000 | |||||
Estimated capital expenditures in 2013 | 40,000,000 | |||||||||
Expected Future Capital Expenditures, Estimated Capital Expenditures in Two Years | 70,000,000 | |||||||||
Estimated expenditures on other maintenance and expansion capital expenditures in 2013 | 17,000,000 | |||||||||
Purchase of additional interest by parent, note payable to seller | 9,600,000 | 6,000,000 | ||||||||
Preferred stock dividend payments, if declared in the remainder of the year. | 5,600,000 | |||||||||
Effect of 15% decrease in REEs mark price on expected cash flow | 8,000,000 | |||||||||
Effect of 15% decrease in REEs volume on expected cash flow | 30,000,000 | |||||||||
Molymet's agreement to purchase Molycorp's common stock | $50,000,000 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |||||
segment | segment | ||||||||||||||
Segment Information | |||||||||||||||
Number of segments | 4 | 1 | |||||||||||||
Sales: | |||||||||||||||
Revenues: | $528,910,000 | $396,831,000 | $35,157,000 | ||||||||||||
Total revenues | 134,259,000 | 205,604,000 | 104,577,000 | 84,470,000 | 132,905,000 | 138,050,000 | 99,615,000 | 26,261,000 | 528,910,000 | 396,831,000 | 35,157,000 | ||||
Depreciation, amortization and accretion | -53,125,000 | -15,227,000 | -6,927,000 | ||||||||||||
Operating (loss) income | -467,886,000 | 152,866,000 | -51,178,000 | ||||||||||||
(Loss) income before income taxes and equity earnings | -382,779,000 | -43,745,000 | -93,970,000 | -5,434,000 | 42,607,000 | 64,157,000 | 42,143,000 | -1,999,000 | -525,928,000 | 146,910,000 | -50,774,000 | ||||
Total assets | 2,992,535,000 | 1,255,125,000 | 2,992,535,000 | 1,255,125,000 | |||||||||||
Property, Plant and Equipment, Additions | 843,061,000 | [1] | 409,217,000 | [1] | |||||||||||
Resources | |||||||||||||||
Sales: | |||||||||||||||
Revenues: | 88,870,000 | 253,563,000 | |||||||||||||
Total revenues | 96,126,000 | 308,718,000 | |||||||||||||
Depreciation, amortization and accretion | -13,991,000 | -10,553,000 | |||||||||||||
Operating (loss) income | -70,220,000 | 218,549,000 | |||||||||||||
(Loss) income before income taxes and equity earnings | -70,469,000 | 218,391,000 | |||||||||||||
Total assets | 1,802,842,000 | 824,712,000 | 1,802,842,000 | 824,712,000 | |||||||||||
Property, Plant and Equipment, Additions | 814,054,000 | [1] | 401,047,000 | [1] | |||||||||||
Chemicals and Oxides | |||||||||||||||
Sales: | |||||||||||||||
Revenues: | 181,849,000 | 40,216,000 | |||||||||||||
Total revenues | 207,566,000 | 54,118,000 | |||||||||||||
Depreciation, amortization and accretion | -13,110,000 | -1,958,000 | |||||||||||||
Operating (loss) income | -191,059,000 | 8,700,000 | |||||||||||||
(Loss) income before income taxes and equity earnings | -190,094,000 | 5,785,000 | |||||||||||||
Total assets | 639,847,000 | 46,368,000 | 639,847,000 | 46,368,000 | |||||||||||
Property, Plant and Equipment, Additions | 10,910,000 | [1] | 8,170,000 | [1] | |||||||||||
Magnetic Materials and Alloys | |||||||||||||||
Sales: | |||||||||||||||
Revenues: | 179,335,000 | 56,772,000 | |||||||||||||
Total revenues | 179,335,000 | 56,772,000 | |||||||||||||
Depreciation, amortization and accretion | -19,737,000 | -236,000 | |||||||||||||
Operating (loss) income | -125,543,000 | 2,331,000 | |||||||||||||
(Loss) income before income taxes and equity earnings | -126,981,000 | 2,336,000 | |||||||||||||
Total assets | 593,197,000 | 30,061,000 | 593,197,000 | 30,061,000 | |||||||||||
Property, Plant and Equipment, Additions | 5,614,000 | [1] | 0 | [1] | |||||||||||
Rare Metals | |||||||||||||||
Sales: | |||||||||||||||
Revenues: | 78,856,000 | 46,280,000 | |||||||||||||
Total revenues | 78,856,000 | 46,280,000 | |||||||||||||
Depreciation, amortization and accretion | -6,154,000 | -2,449,000 | |||||||||||||
Operating (loss) income | -20,408,000 | 2,131,000 | |||||||||||||
(Loss) income before income taxes and equity earnings | -19,918,000 | -634,000 | |||||||||||||
Total assets | 117,961,000 | 71,634,000 | 117,961,000 | 71,634,000 | |||||||||||
Property, Plant and Equipment, Additions | 10,750,000 | [1] | 0 | [1] | |||||||||||
Intersegment Eliminations | |||||||||||||||
Sales: | |||||||||||||||
Revenues: | 0 | 0 | |||||||||||||
Total revenues | -32,973,000 | -69,057,000 | |||||||||||||
Depreciation, amortization and accretion | 0 | 0 | |||||||||||||
Operating (loss) income | 24,803,000 | [2] | -27,443,000 | [2] | |||||||||||
(Loss) income before income taxes and equity earnings | 24,803,000 | [2] | -27,443,000 | [2] | |||||||||||
Total assets | -187,567,000 | [2] | -143,730,000 | [2] | -187,567,000 | [2] | -143,730,000 | [2] | |||||||
Property, Plant and Equipment, Additions | 0 | [1] | 0 | [1] | |||||||||||
Intercompany Costs | -57,776,000 | -41,614,000 | |||||||||||||
Corporate and other | |||||||||||||||
Sales: | |||||||||||||||
Depreciation, amortization and accretion | -133,000 | [3] | -31,000 | [3] | |||||||||||
Operating (loss) income | -85,459,000 | [3] | -51,402,000 | [3] | |||||||||||
(Loss) income before income taxes and equity earnings | -143,269,000 | [3] | -51,525,000 | [3] | |||||||||||
Total assets | 26,255,000 | [3] | 426,080,000 | [3] | 26,255,000 | [3] | 426,080,000 | [3] | |||||||
Property, Plant and Equipment, Additions | 1,733,000 | [1],[3] | 0 | [1],[3] | |||||||||||
Intersegment Eliminations | |||||||||||||||
Sales: | |||||||||||||||
Revenues: | 0 | 0 | |||||||||||||
Intersegment Eliminations | Resources | |||||||||||||||
Sales: | |||||||||||||||
Revenues: | 7,256,000 | 55,155,000 | |||||||||||||
Intersegment Eliminations | Chemicals and Oxides | |||||||||||||||
Sales: | |||||||||||||||
Revenues: | 25,717,000 | 13,902,000 | |||||||||||||
Intersegment Eliminations | Magnetic Materials and Alloys | |||||||||||||||
Sales: | |||||||||||||||
Revenues: | 0 | 0 | |||||||||||||
Intersegment Eliminations | Rare Metals | |||||||||||||||
Sales: | |||||||||||||||
Revenues: | 0 | 0 | |||||||||||||
Intersegment Eliminations | Intersegment Eliminations | |||||||||||||||
Sales: | |||||||||||||||
Revenues: | ($32,973,000) | ($69,057,000) | |||||||||||||
[1] | On an accrual basis excluding capitalized interest. | ||||||||||||||
[2] | The net elimination in operating results includes costs of sales eliminations of $57,776 and $41,614 for the year ended December 31, 2012 and 2011, respectively, which consist of intercompany gross profits as well as eliminations of lower of cost or market adjustments related to intercompany inventory. The total assets elimination is comprised primarily of intercompany investments and intercompany accounts receivable and profits in inventory. | ||||||||||||||
[3] | Corporate loss before income taxes and equity earnings includes business development costs, personnel and related costs, including stock-based compensation expense, accounting and legal fees, occupancy expense, information technology costs and interest expense. Other consists of nominal expenses incurred by the sales office in Tokyo, Japan. Total corporate assets is comprised primarily of cash and cash equivalents, the investment in the sales office in Tokyo and deferred tax assets |
Revenue_and_Longlived_Assets_b
Revenue and Long-lived Assets by Location (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues: | $528,910 | $396,831 | $35,157 |
Long-lived assets | 1,544,304 | 561,628 | |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues: | 118,086 | 421 | 909 |
Long-lived assets | 52,914 | 0 | |
Japan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues: | 160,942 | 204,262 | 9,569 |
Thailand | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues: | 7,674 | 0 | 0 |
Long-lived assets | 5,902 | 0 | |
Other Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 18,221 | 397 | |
Hong Kong | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues: | 4,793 | 0 | 0 |
South Korea | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues: | 3,828 | 0 | 0 |
Singapore | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues: | 212 | 0 | 9 |
North America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues: | 104,769 | 128,544 | 24,070 |
Long-lived assets | 1,391,690 | 500,612 | |
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues: | 117,907 | 56,760 | 596 |
Long-lived assets | 75,495 | 60,619 | |
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues: | 10,699 | 6,844 | 4 |
Long-lived assets | $82 | $0 |
Inventory_Details
Inventory (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Current: | |||
Concentrate stockpiles | $6,393,000 | $3,704,000 | |
Raw materials | 95,248,000 | 44,770,000 | |
Work in process | 55,229,000 | 16,602,000 | |
Finished goods | 114,903,000 | 45,045,000 | |
Materials and supplies | 15,603,000 | 1,822,000 | |
Total current | 287,376,000 | 111,943,000 | |
Long-term: | |||
Concentrate stockpiles | 4,000 | 1,144,000 | |
Raw materials | 26,092,000 | 3,186,000 | |
Finished goods | 0 | 32,000 | |
Total long-term | 26,096,000 | 4,362,000 | |
Production costs expensed that would have been allocated to additional tons produced, assuming operations at normal production rates | 12,000,000 | 4,300,000 | 11,000,000 |
Write-down of inventory as a result of production or purchase costs in excess of net realizable value | 80,900,000 | 2,800,000 | 2,500,000 |
Write-down of work-in-process inventory and stockpile based on estimated REO quantities | $2,100,000 | $2,300,000 | $2,700,000 |
Deposits_Details
Deposits (Details) (USD $) | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 |
Surety Bond | Kern River Gas Transmission Company | |||
Deposits [Line Items] | ||||
Deposits | $26,769,000 | $23,286,000 | ||
Escrow deposit | 20,600,000 | |||
Deposits related to construction insurance program | 1,500,000 | |||
Other restricted cash requirements related to deposits | 4,700,000 | |||
Increase in collateral | $3,500,000 |
Property_Plant_and_Equipment_n2
Property, Plant and Equipment, net (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | ||||
Property, Plant and Equipment [Line Items] | |||||||
Property, Plant and Equipment, Additions, Gross of Capitalized Interest | $902,300,000 | $416,700,000 | |||||
Capitalized interest related to plant modernization and other capitalized costs | 59,300,000 | 7,500,000 | |||||
Depreciation expense | 20,900,000 | 14,000,000 | 6,000,000 | ||||
Property, plant and equipment at cost | 1,589,235,000 | 1,589,235,000 | 584,865,000 | ||||
Less accumulated depreciation | -44,931,000 | -44,931,000 | -23,237,000 | ||||
Property, plant and equipment, net | 1,544,304,000 | 1,544,304,000 | 561,628,000 | ||||
Impairment of long-lived assets to be disposed of | 5,900,000 | 5,900,000 | 3,100,000 | ||||
Land | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property, plant and equipment at cost | 12,475,000 | 12,475,000 | 11,059,000 | ||||
Land improvements | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property, plant and equipment at cost | 63,269,000 | 63,269,000 | 15,748,000 | ||||
Useful life | 15 years | ||||||
Buildings and improvements | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property, plant and equipment at cost | 237,379,000 | 237,379,000 | 23,677,000 | ||||
Plant and equipment | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property, plant and equipment at cost | 194,934,000 | 194,934,000 | 68,441,000 | ||||
Vehicles | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property, plant and equipment at cost | 2,842,000 | 2,842,000 | 1,235,000 | ||||
Useful life | 7 years | ||||||
Computer software | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property, plant and equipment at cost | 9,528,000 | 9,528,000 | 3,002,000 | ||||
Useful life | 5 years | ||||||
Furnitures and fixtures | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property, plant and equipment at cost | 1,116,000 | 1,116,000 | 464,000 | ||||
Useful life | 5 years | ||||||
Construction in progress | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property, plant and equipment at cost | 1,011,541,000 | [1] | 1,011,541,000 | [1] | 436,547,000 | [1] | |
Capital Leases | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Capital Leased Assets, Gross | 15,658,000 | 15,658,000 | 0 | ||||
Less accumulated depreciation | -900,000 | -900,000 | |||||
Useful life | 10 years | ||||||
Mineral properties | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property, plant and equipment at cost | 24,327,000 | 24,327,000 | 24,692,000 | ||||
Exploration rights | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property, plant and equipment at cost | 16,166,000 | 16,166,000 | 0 | ||||
Minimum | Buildings and improvements | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Useful life | 4 years | ||||||
Minimum | Plant and equipment | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Useful life | 2 years | ||||||
Maximum | Buildings and improvements | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Useful life | 40 years | ||||||
Maximum | Plant and equipment | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Useful life | 15 years | ||||||
Rare Metals | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Impairment of long-lived assets to be disposed of | 2,000,000 | ||||||
Molycorp Mountain Pass facility | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Impairment of long-lived assets to be disposed of | $3,800,000 | ||||||
[1] | Represents costs incurred at the Molycorp Mountain Pass facility and all other capital projects. See Note 3. |
Mineral_Properties_Development
Mineral Properties, Development Costs and Exploration Rigths Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Property, Plant and Equipment [Line Items] | ||||
Purchase price for exploration right | $1,589,235 | $1,589,235 | $584,865 | |
Payments to acquire exploration rights | 8,200 | 8,167 | 0 | 0 |
Exploration rights | ||||
Property, Plant and Equipment [Line Items] | ||||
Purchase price for exploration right | $16,166 | $16,166 | $0 | |
Sale of stock, price per share | $10.15 | $10.15 | ||
Issuance of shares for investment in mining property | 788,410 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Goodwill [Line Items] | ||||
Goodwill, impairment loss from initial purchase price allocation | $258,300,000 | |||
Impairment of goodwill | 289,900,000 | 289,894,000 | 0 | 0 |
Impairment of finite-lived intangible assets | -6,000,000 | |||
Amortization expense | 28,579,000 | 236,000 | 100,000 | |
Magnetic Materials and Alloys | ||||
Goodwill [Line Items] | ||||
Impairment of goodwill | 112,694,000 | |||
Molycorp Canada | ||||
Goodwill [Line Items] | ||||
Impairment of goodwill | 287,900,000 | |||
Intangibles acquired in Molycorp Canada acquisition | 482,200,000 | 482,200,000 | ||
Goodwill, additional impairment loss from final purchase price allocation | 31,600,000 | |||
Molycorp Canada | Magnetic Materials and Alloys | ||||
Goodwill [Line Items] | ||||
Impairment of finite-lived intangible assets | 6,000,000 | |||
Molycorp Metals and Alloys (MMA) | Magnetic Materials and Alloys | ||||
Goodwill [Line Items] | ||||
Impairment of goodwill | 2,000,000 | |||
Trade names | ||||
Goodwill [Line Items] | ||||
Additions | $14,800,000 |
Goodwill_Rollforward_Details
Goodwill Rollforward (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Goodwill [Roll Forward] | ||||
Beginning of period | $3,432 | $0 | ||
Goodwill Acquired | 526,204 | 3,432 | ||
Impairment | -289,900 | -289,894 | 0 | 0 |
End of period | 239,742 | 239,742 | 3,432 | 0 |
Chemicals and Oxides | ||||
Goodwill [Roll Forward] | ||||
Beginning of period | 728 | 0 | ||
Goodwill Acquired | 285,633 | 728 | ||
Impairment | -161,132 | |||
End of period | 125,229 | 125,229 | 728 | |
Magnetic Materials and Alloys | ||||
Goodwill [Roll Forward] | ||||
Beginning of period | 1,977 | 0 | ||
Goodwill Acquired | 213,525 | 1,977 | ||
Impairment | -112,694 | |||
End of period | 102,808 | 102,808 | 1,977 | |
Rare Metals | ||||
Goodwill [Roll Forward] | ||||
Beginning of period | 727 | 0 | ||
Goodwill Acquired | 27,046 | 727 | ||
Impairment | -16,068 | |||
End of period | $11,705 | $11,705 | $727 |
Intangible_Asset_Rollforward_D
Intangible Asset Rollforward (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Finite-Lived and Indefinite-lived Intangible Assets [Roll Forward] | |||
At period start | $3,455 | $786 | |
At period start | 3,455 | ||
Additions | 2,669 | ||
Additions | 482,445 | ||
Impairment | -6,000 | ||
At period end | 3,455 | 786 | |
At period end | 479,900 | 3,455 | |
At period start | 383 | 147 | |
Amortization | 28,579 | 236 | 100 |
At period end | 28,962 | 383 | 147 |
Net book value | 450,938 | 3,072 | |
Trade names | |||
Finite-Lived and Indefinite-lived Intangible Assets [Roll Forward] | |||
At period end | 15,586 | ||
Net book value | 14,434 | ||
Trade names | |||
Finite-Lived and Indefinite-lived Intangible Assets [Roll Forward] | |||
Additions | 14,800 | ||
Customer relationships | |||
Finite-Lived and Indefinite-lived Intangible Assets [Roll Forward] | |||
At period start | 2,669 | 0 | |
Additions | 342,105 | 2,669 | |
Impairment | 0 | ||
At period end | 344,774 | 2,669 | |
At period start | 170 | 0 | |
Amortization | 13,925 | 170 | |
At period end | 14,095 | 170 | |
Net book value | 330,679 | 2,499 | |
Rare earth quotas | |||
Finite-Lived and Indefinite-lived Intangible Assets [Roll Forward] | |||
At period start | 0 | 0 | |
Additions | 78,300 | 0 | |
Impairment | 0 | ||
At period end | 78,300 | 0 | |
At period start | 0 | 0 | |
Amortization | 4,035 | 0 | |
At period end | 4,035 | 0 | |
Net book value | 74,265 | 0 | |
Patents | |||
Finite-Lived and Indefinite-lived Intangible Assets [Roll Forward] | |||
At period start | 0 | 0 | |
Additions | 39,252 | 0 | |
Impairment | -6,000 | ||
At period end | 33,252 | 0 | |
At period start | 0 | 0 | |
Amortization | 9,365 | 0 | |
At period end | 9,365 | 0 | |
Net book value | 23,887 | 0 | |
Trade names | |||
Finite-Lived and Indefinite-lived Intangible Assets [Roll Forward] | |||
At period start | 786 | 786 | |
At period start | 786 | ||
Additions | 0 | ||
Impairment | 0 | ||
At period end | 786 | ||
At period end | 786 | ||
At period start | 213 | 147 | |
Amortization | 939 | 66 | |
At period end | 1,152 | 213 | |
Net book value | 573 | ||
Land use rights | |||
Finite-Lived and Indefinite-lived Intangible Assets [Roll Forward] | |||
At period start | 0 | 0 | |
Additions | 3,568 | 0 | |
Impairment | 0 | ||
At period end | 3,568 | 0 | |
At period start | 0 | 0 | |
Amortization | 66 | 0 | |
At period end | 66 | 0 | |
Net book value | 3,502 | 0 | |
Other | |||
Finite-Lived and Indefinite-lived Intangible Assets [Roll Forward] | |||
At period start | 0 | 0 | |
Additions | 4,420 | 0 | |
Impairment | 0 | ||
At period end | 4,420 | 0 | |
At period start | 0 | 0 | |
Amortization | 249 | 0 | |
At period end | 249 | 0 | |
Net book value | $4,171 | $0 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets Future Amortization Schedule (Details) (USD $) | Dec. 31, 2012 |
In Millions, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2013 | $44.70 |
2014 | 37 |
2015 | 33.8 |
2016 | 32.2 |
2017 | 30.9 |
Thereafter | $257.60 |
Investments_Details
Investments (Details) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||||
Sep. 13, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Nov. 28, 2011 | Jan. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Nov. 28, 2011 | Nov. 28, 2011 | Nov. 28, 2011 | Jun. 30, 2012 | Jun. 12, 2012 | Jun. 12, 2012 | Jun. 12, 2012 | Jun. 12, 2012 | Jun. 12, 2012 | |
USD ($) | USD ($) | USD ($) | USD ($) | Intermetallics Japan | Intermetallics Japan | Intermetallics Japan | Intermetallics Japan | Intermetallics Japan | Intermetallics Japan | Intermetallics Japan | Keli | Keli | TMT | Ingal Stade | Atlantic Metals | Northern Nano Technology | |
JPY (¥) | USD ($) | JPY (¥) | Molycorp | Daido | Mitsubishi | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||
Intermetallics Japan - IMJ | |||||||||||||||||
Investment in Boulder Wind Power's Series B convertible preferred stock | $20,000,000 | $0 | $20,000,000 | $0 | |||||||||||||
Capital contribution ratio (as a percent) | 30.00% | 35.50% | 34.50% | ||||||||||||||
Capital contribution | 2,500,000,000 | ||||||||||||||||
Exchange of shares, time period | 12 months | ||||||||||||||||
Capital contribution | 33,044,000 | 0 | 0 | 27,700,000 | 2,200,000,000 | ||||||||||||
Gain /(Loss) from the entity's proportional ownership in joint venture | -3,490,000 | 0 | 0 | -2,400,000 | -1,200,000 | ||||||||||||
Ownership in Subsidiary (as a percent) | 25.00% | 33.00% | 50.00% | 19.50% | 7.00% | ||||||||||||
Fair Value of the Equity Investment of a Business Acquisition | $12,200,000 | $1,600,000 | $4,900,000 | $1,400,000 | $900,000 |
Acquisitions_Details
Acquisitions (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Mar. 28, 2012 | Dec. 31, 2012 | Oct. 25, 2011 | Apr. 02, 2011 | Oct. 31, 2011 | Dec. 31, 2012 | Oct. 24, 2011 | Apr. 02, 2011 | Apr. 30, 2011 | Apr. 02, 2011 | Apr. 15, 2011 | Apr. 16, 2011 | Apr. 15, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Jun. 30, 2013 | Jun. 11, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Jun. 12, 2012 | Jun. 30, 2012 | Jun. 30, 2012 | Jun. 12, 2012 | Jun. 11, 2012 | Jun. 30, 2012 | Jun. 12, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Jun. 12, 2012 | Dec. 31, 2012 | Jun. 12, 2012 | Dec. 31, 2012 | Jun. 12, 2012 | Dec. 31, 2012 | Jun. 12, 2012 | Dec. 31, 2012 | Jun. 12, 2012 | Jun. 11, 2012 | Jun. 12, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CAD | JAMR | Molycorp Silmet | Molycorp Silmet | Molycorp Silmet | Molycorp Silmet | Molycorp Silmet | Molycorp Silmet | Molycorp Silmet | Molycorp Silmet | Molycorp Metals and Alloys (MMA) | Molycorp Metals and Alloys (MMA) | Molycorp Metals and Alloys (MMA) | Molycorp Simet and MMA [Member] | Molycorp Simet and MMA [Member] | Molycorp Canada | Molycorp Canada | Molycorp Canada | Molycorp Canada | Molycorp Canada | MCP Exchangeco Inc. | MCP Exchangeco Inc. | MCP Exchangeco Inc. | Molycorp | Molycorp | Molycorp | Customer relationships | Customer relationships | Customer relationships | Rare earth quotas | Rare earth quotas | Patents | Patents | Other | Other | Secured Debt | Trade names | As reported | As reported | Adjustment | Purchase Price Allocation Adjustments | Purchase Price Allocation Adjustments | |
USD ($) | USD ($) | USD ($) | USD ($) | Mg | AS Silmet Grupp | AS Silmet Grupp | Treibacher Industries AG | USD ($) | USD ($) | Santoku | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CAD | Molycorp Canada | Molycorp Canada | Molycorp Canada | Molycorp Canada | Molycorp Silmet | Molycorp Canada | Molycorp Canada | Molycorp Canada | Molycorp Canada | Molycorp Canada | Molycorp Canada | Molycorp Canada | Molycorp Canada | 10% Senior Securied Notes, net of discount, due June 2020 | Molycorp Canada | Molycorp Canada | Molycorp Canada | Molycorp Canada | USD ($) | USD ($) | ||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Purchase of additional interest by parent, percentage | 5.00% | ||||||||||||||||||||||||||||||||||||||||||||||
Ownership of subsidiary after purchase of additional interest | 95.00% | ||||||||||||||||||||||||||||||||||||||||||||||
Purchase of additional interest by parent | $15,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Purchase of additional interest by parent, cash portion | 5,400,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Purchase of additional interest by parent, note payable to seller | 9,600,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Purchase of additional interest by parent, note payable to seller, interest rate | 3.25% | ||||||||||||||||||||||||||||||||||||||||||||||
Cash consideration paid for Molycorp Canada (in CAD per share) | 11.3 | ||||||||||||||||||||||||||||||||||||||||||||||
Share consideration paid for Molycorp Canada (in shares) | 0.4242 | 0.4242 | |||||||||||||||||||||||||||||||||||||||||||||
Notional amount of derivatives | 870,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued to acquire the entity (in shares) | 1,593,419 | 507,203 | 507,203 | 13,545,426 | 13,545,426 | ||||||||||||||||||||||||||||||||||||||||||
Cash consideration | 10,000,000 | 9,021,000 | 9,000,000 | 17,500,000 | 908,181,000 | 908,181,000 | |||||||||||||||||||||||||||||||||||||||||
Fair value of Molycorp common stock issued | 284,100,000 | 72,653,000 | 0 | 284,144,000 | 284,144,000 | ||||||||||||||||||||||||||||||||||||||||||
Total purchase consideration | 81,674,000 | 17,500,000 | 1,192,325,000 | 1,192,325,000 | 1,192,325,000 | 1,192,325,000 | 0 | ||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 105,000 | 6,395,000 | 317,169,000 | 317,169,000 | 0 | ||||||||||||||||||||||||||||||||||||||||||
Restricted cash | 4,951,000 | 4,951,000 | 0 | ||||||||||||||||||||||||||||||||||||||||||||
Accounts receivable | 101,500,000 | 101,500,000 | 5,000,000 | 4,900,000 | 101,470,000 | 101,470,000 | 0 | ||||||||||||||||||||||||||||||||||||||||
Accounts receivable and other current assets | 8,626,000 | 5,474,000 | |||||||||||||||||||||||||||||||||||||||||||||
Inventory | 37,404,000 | 11,327,000 | 250,989,000 | 250,989,000 | 0 | ||||||||||||||||||||||||||||||||||||||||||
Prepaid expenses and other current assets | 26,893,000 | 26,893,000 | 0 | ||||||||||||||||||||||||||||||||||||||||||||
Property, plant and equipment | 63,393,000 | 4,512,000 | 75,745,000 | 75,745,000 | 0 | ||||||||||||||||||||||||||||||||||||||||||
Investments | 21,019,000 | 19,928,000 | -1,091,000 | ||||||||||||||||||||||||||||||||||||||||||||
Intangibles | 2,669,000 | 0 | 341,900,000 | 78,300,000 | 39,100,000 | 8,100,000 | 14,800,000 | 482,234,000 | 482,234,000 | 0 | |||||||||||||||||||||||||||||||||||||
Deferred tax charges | 13,435,000 | 13,435,000 | 0 | ||||||||||||||||||||||||||||||||||||||||||||
Deferred tax assets | 11,473,000 | 10,050,000 | -1,423,000 | ||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 1,455,000 | 1,977,000 | 494,809,000 | 526,425,000 | 31,616,000 | ||||||||||||||||||||||||||||||||||||||||||
Other non-current assets | 4,367,000 | 4,367,000 | 0 | ||||||||||||||||||||||||||||||||||||||||||||
Accounts payable and accrued expenses | -19,974,000 | -8,989,000 | -138,576,000 | -138,576,000 | 0 | ||||||||||||||||||||||||||||||||||||||||||
Debt | -255,338,000 | -255,338,000 | 0 | ||||||||||||||||||||||||||||||||||||||||||||
Other current liabilities | -33,990,000 | -33,990,000 | 0 | ||||||||||||||||||||||||||||||||||||||||||||
Deferred tax liabilities | 0 | 3,196,000 | -154,309,000 | -148,429,000 | 5,880,000 | ||||||||||||||||||||||||||||||||||||||||||
Long-term debt | -3,184,000 | 0 | |||||||||||||||||||||||||||||||||||||||||||||
Other non-current liabilities | -14,255,000 | -14,255,000 | 0 | ||||||||||||||||||||||||||||||||||||||||||||
Non-controlling interests | -8,820,000 | 0 | -15,761,000 | -50,743,000 | -34,982,000 | ||||||||||||||||||||||||||||||||||||||||||
Weighted average useful life | 15 years | 11 years | 2 years | 12 years | |||||||||||||||||||||||||||||||||||||||||||
Goodwill, additional impairment loss from final purchase price allocation | 31,600,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Impairment of goodwill | 289,900,000 | 289,894,000 | 0 | 0 | 287,900,000 | ||||||||||||||||||||||||||||||||||||||||||
Business Acquisition, Transaction Costs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||
Corporate development: Legal, accounting and advisory fees | 19,796,000 | 5,912,000 | 0 | 2,100,000 | 16,498,000 | ||||||||||||||||||||||||||||||||||||||||||
Other expenses: Contingent forward contract loss | 37,589,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Interest expense: Bridge loan fee | 7,937,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Unaudited proforma | |||||||||||||||||||||||||||||||||||||||||||||||
Revenues | 307,918,000 | 863,728,000 | 1,196,876,000 | 430,305,000 | 85,549,000 | ||||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) | -338,347,000 | -463,716,000 | 241,903,000 | 105,397,000 | -30,920,000 | ||||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) Attributable To Molycorp | -344,173,000 | -473,249,000 | 231,772,000 | 104,590,000 | -31,329,000 | ||||||||||||||||||||||||||||||||||||||||||
EPS Basic (in dollars per share) | ($3.21) | ($4.53) | $2.66 | $1.13 | ($0.50) | ||||||||||||||||||||||||||||||||||||||||||
Other actual and pro forma information | |||||||||||||||||||||||||||||||||||||||||||||||
Pro forma intercompany revenue | 69,100,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Pro forma intercompany net income (loss) | 28,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Purchase price variance capitalized | 1,100,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Finite-Lived Assets, Useful Life, Minimum | 2 years | ||||||||||||||||||||||||||||||||||||||||||||||
Finite-Lived Assets, Useful Life, Maximum | 30 years | ||||||||||||||||||||||||||||||||||||||||||||||
Interest rate | 10.00% | ||||||||||||||||||||||||||||||||||||||||||||||
Direct Transaction Expenses Excluded from Nonrecurring Expense | 115,200,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Recognized Transaction Costs | 62,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Interest acquired (as a percent) | 90.02% | 9.98% | 80.00% | 10.02% | |||||||||||||||||||||||||||||||||||||||||||
Other disclosures | |||||||||||||||||||||||||||||||||||||||||||||||
Contractual value of shares issued to acquire the entity | 80,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Number of consecutive trading days considered for calculation of closing price | 20 days | ||||||||||||||||||||||||||||||||||||||||||||||
Discount percentage deducted from common stock price | 23.00% | ||||||||||||||||||||||||||||||||||||||||||||||
Adjustments to Additional Paid in Capital | $400,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Useful life | 15 years | ||||||||||||||||||||||||||||||||||||||||||||||
Increase in rare earth production capacity (in mt) | 3,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Period of marketing and distribution agreement (in years) | 5 years | ||||||||||||||||||||||||||||||||||||||||||||||
Period of rare earth products purchase and supply agreement (in years) | 2 years |
Accrued_Expenses_Details
Accrued Expenses (Details) (USD $) | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||
Accrued Expenses | ||
Defined contribution plan | $1,400 | $1,088 |
Professional fees | 4,971 | 0 |
Accrued payroll and related benefits | 7,532 | 3,024 |
Sales and use tax | 7,187 | 1,367 |
Bonus accrual | 3,503 | 4,845 |
Interest payable | 15,253 | 345 |
Advance from customer | 1,753 | 0 |
Withholding taxes | 2,929 | 0 |
Amount payable to noncontrolling shareholder | 9,640 | 0 |
Other accrued expenses | 4,845 | 2,229 |
Total accrued expenses | $59,013 | $12,898 |
Asset_Retirement_Obligation_De
Asset Retirement Obligation (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Asset retirement obligation activity | |||
Balance at beginning of period | $15,541,000 | $12,471,000 | |
Obligations settled | -2,954,000 | -1,030,000 | |
Accretion expense | 1,299,000 | 955,000 | |
Revisions in estimated cash flows | 7,872,000 | 2,508,000 | |
Loss on settlement | 367,000 | 637,000 | |
Balance at end of period | 22,125,000 | 15,541,000 | 12,471,000 |
Asset Retirement Obligation [Abstract] | |||
Asset retirement obligation, current | 3,500,000 | 400,000 | |
Depreciation expense | 2,000,000 | 1,000,000 | 1,100,000 |
Financial assurance requirement satisfied with surety bonds | 28,700,000 | ||
Molycorp Mountain Pass | |||
Asset retirement obligation activity | |||
Revisions in estimated cash flows | 3,800,000 | ||
Demolition and Reclamation of the Old Mill and Mineral Recovery Areas at the Molycorp Mountain Pass Facility | |||
Asset retirement obligation activity | |||
Revisions in estimated cash flows | $4,100,000 |
Debt_and_Capital_Lease_Obligat2
Debt and Capital Lease Obligations (Details) (USD $) | 12 Months Ended | 7 Months Ended | 12 Months Ended | 7 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Jun. 12, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | 25-May-12 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Aug. 22, 2012 | Jun. 15, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | |
Common Stock | Common Stock | Convertible Subordinated Debt | Convertible Subordinated Debt | Notes Payable to Banks | Notes Payable to Banks | Notes Payable to Banks | Notes Payable to Banks | Notes Payable to Banks | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Convertible Debt | Convertible Debt | Convertible Debt | Convertible Debt | Convertible Debt | ||||
5.00% Debentures, net of discount | 5.00% Debentures, net of discount | Bank loans 2.69% - 3.88% due February 2012 - September 2017 | Bank loans 2.69% - 3.88% due February 2012 - September 2017 | bank loans with a weighted avergare rate of 3.57% due January 2013 - Septmber 2017 | Molycorp Canada | Molycorp Canada and Molycorp Silmet | 10% Senior Securied Notes, net of discount, due June 2020 | 10% Senior Securied Notes, net of discount, due June 2020 | Before June 1, 2016 | After June 1, 2016 | Before June 1, 2015 | 6.00% Convertible Notes | 6.00% Convertible Notes | 3.25% Convertible Notes | 3.25% Convertible Notes | 3.25% Convertible Notes | ||||||
bank loans with a weighted avergare rate of 3.57% due January 2013 - Septmber 2017 | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Interest rate | 5.00% | 5.00% | 3.57% | 10.00% | 6.00% | 3.25% | ||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.60% | 3.95% | ||||||||||||||||||||
Convertible carrying amount of liability component | $332,000,000 | $198,700,000 | $190,900,000 | |||||||||||||||||||
Amortization of debt discount | 2,544,000 | 674,000 | 0 | 5,300,000 | 7,800,000 | 3,700,000 | ||||||||||||||||
Debt instrument, minimum interest rate | 2.69% | |||||||||||||||||||||
Debt instrument, maximum interest rate | 3.88% | |||||||||||||||||||||
Convertible debt instrument, conversion price | $13.80 | $12 | $71.40 | |||||||||||||||||||
debt instrument, convertible, conversion face amount | 9,400,000 | |||||||||||||||||||||
Repurchased face amount | 217,900,000 | |||||||||||||||||||||
Repurchase amount | 8,000,000 | |||||||||||||||||||||
Stock issued during the period, shares | 13,800,000 | 99,723 | ||||||||||||||||||||
Percentage of last reported sale price of Molycorp common stock over conversion price on or after September 1, 2015 giving right to the Notes redemption | 130.00% | |||||||||||||||||||||
Trading days during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which Molycorp provides notice of redemption | 20 days | |||||||||||||||||||||
Consecutive trading day period ending on, and including, the trading day immediately preceding the date on which Molycorp provides notice of redemption | 30 days | |||||||||||||||||||||
redemption price of principal amount | 100.00% | |||||||||||||||||||||
Convertible debt instrument, carrying amount of equity component | 68,700,000 | 36,200,000 | ||||||||||||||||||||
Convertible interest expense | 2,300,000 | 14,200,000 | 15,300,000 | 7,500,000 | ||||||||||||||||||
Number of borrowed shares | 13,800,000 | 13,800,000 | ||||||||||||||||||||
Debt instrument, redeemable debt, redemption percentage of principal amount | 100.00% | 105.00% | ||||||||||||||||||||
Debt instrument, redeemable debt, redeemable principal from proceeds from equity | 35.00% | |||||||||||||||||||||
Debt instrument, redeemable debt, redeemable percentage of principal from proceed from equity | 110.00% | |||||||||||||||||||||
Fair market value of assets excluded from security interest, maximum | 15,000,000 | |||||||||||||||||||||
Cash collateral excluded from security interest, maximum | 105.00% | |||||||||||||||||||||
Voting stock of foreign subsidiaries excluded from security interest, minimum | 65.00% | |||||||||||||||||||||
Debt instrument, face amount | 230,000,000 | 650,000,000 | 54,000,000 | 360,000,000 | 230,000,000 | |||||||||||||||||
Proceeds from issuance of long-term debt | 635,400,000 | 395,700,000 | 223,100,000 | |||||||||||||||||||
6.00% Convertible Noted purchased by certain directors, officers and other related parties of Molycorp | 6,400,000 | |||||||||||||||||||||
Convertible conversion ratio | 83.333 | 14.0056 | ||||||||||||||||||||
Principal amount convertible into common stock | 1,000 | |||||||||||||||||||||
Current portion of debt outstanding | 39,252,000 | 1,516,000 | 0 | 1,516,000 | 39,252,000 | 0 | 0 | 0 | 0 | |||||||||||||
Weighted average interest rate | 3.68% | |||||||||||||||||||||
Noncurrent portion of debt outstanding | 1,173,669,000 | 196,545,000 | 2,774,000 | 5,668,000 | 4,118,000 | 636,111,000 | 331,977,000 | 198,689,000 | 190,877,000 | |||||||||||||
Long-term debt, gross | 2,800,000 | |||||||||||||||||||||
Short-term debt | 37,900,000 | |||||||||||||||||||||
Long-term purchase commitment, monthly purchase amount | 400,000 | |||||||||||||||||||||
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||||||||||||||||||||
Total capital leases payments due | 48,300,000 | |||||||||||||||||||||
Due in 2013 | 5,100,000 | |||||||||||||||||||||
Due in 2014 | 5,100,000 | |||||||||||||||||||||
Due in 2015 | 5,100,000 | |||||||||||||||||||||
Due in 2016 | 5,100,000 | |||||||||||||||||||||
Due in 2017 | 5,100,000 | |||||||||||||||||||||
Due thereafter | 22,900,000 | |||||||||||||||||||||
Executory costs | 1,900,000 | |||||||||||||||||||||
Imputed interest | 30,900,000 | |||||||||||||||||||||
Unused portion of line of credit | 50,500,000 | |||||||||||||||||||||
Capital lease obligations, current | 352,000 | |||||||||||||||||||||
Capital lease obligations, Noncurrent | 15,163,000 | |||||||||||||||||||||
Total debt and Capital lease obligations, Current | 39,604,000 | 1,516,000 | ||||||||||||||||||||
Total debt and Capital lease obligations, Non-Current | 1,188,832,000 | 196,545,000 | ||||||||||||||||||||
Long-term Purchase Commitment, Period (in years) | 10 years | |||||||||||||||||||||
Long-term Debt, by Maturity [Abstract] | ||||||||||||||||||||||
2013 | 39,300,000 | |||||||||||||||||||||
2014 | 1,500,000 | |||||||||||||||||||||
2015 | 1,500,000 | |||||||||||||||||||||
2016 | 230,800,000 | |||||||||||||||||||||
2017 | 417,200,000 | |||||||||||||||||||||
Thereafter | $650,000,000 |
Income_Taxes_Narrative_Details
Income Taxes Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Dec. 31, 2012 | Jun. 11, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | |
Statute of limitations expiration and possible settements with taxing authorities | IRS | State | Domestic Tax Authority | Foreign Tax Authority | Foreign Tax Authority | Molycorp Canada | Expiring in 2024 | Expiring in 2031 and 2032 | Expiring in 2031 | Expiring in 2032 | Indefinite Carryforward | Minimum | Maximum | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||||||||||||||
Goodwill and intangible asset impairment | $295,900,000 | |||||||||||||||||
Deferred tax liabilities, net | 150,886,000 | 150,886,000 | 20,255,000 | |||||||||||||||
Valuation allowance | 20,631,000 | 20,631,000 | 0 | |||||||||||||||
Increases in uncertain tax positions resulting from acquisition | 5,700,000 | 20,100,000 | ||||||||||||||||
Effective income tax rate | 10.30% | 19.50% | 0.00% | |||||||||||||||
Income tax expense | 54,075,000 | -28,576,000 | 0 | |||||||||||||||
Foreign subsidiary earnings and withholding taxes | 32,637,000 | 32,637,000 | 0 | |||||||||||||||
Deferred income tax expense due to elimination of intercompany balances and transactions | 9,400,000 | 9,400,000 | ||||||||||||||||
Income tax payable due to elimination of intercompany balances and transactions | 9,400,000 | 9,400,000 | ||||||||||||||||
Federal tax rate | 35.00% | |||||||||||||||||
Tax credit carryforward | 12,100,000 | 12,100,000 | 10,500,000 | 3,100,000 | 7,400,000 | 1,600,000 | ||||||||||||
Operating Loss Carryforwards | 85,400,000 | 86,500,000 | 96,700,000 | 29,800,000 | 55,600,000 | |||||||||||||
Income tax holiday period | 5 years | 10 years | ||||||||||||||||
Statute of limitations closures | 1,406,000 | 0 | 1,400,000 | |||||||||||||||
Settlements | 13,740,000 | 0 | 13,700,000 | |||||||||||||||
Significant change in unrecognized tax benefits is reasonably possible, estimated range of change, lower bound | 4,000,000 | |||||||||||||||||
Significant change in unrecognized tax benefits is reasonably possible, estimated range of change, higher bound | $6,000,000 |
Schedule_of_Components_of_Inco
Schedule of Components of Income Tax Expense (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Current | |||
Federal | ($22,418) | $18,721 | |
Foreign | 8,994 | 0 | |
State | -4,197 | 6,952 | |
Total current | -17,621 | 25,673 | |
Deferred | |||
Federal | -20,786 | 3,687 | |
Foreign | -11,777 | 0 | |
State | -3,891 | -784 | |
Total deferred | -36,454 | 2,903 | |
Total tax provision | ($54,075) | $28,576 | $0 |
Schedule_of_Income_before_Inco
Schedule of Income before Income Tax, Domestic and Foreign (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Income Tax Disclosure [Abstract] | |||||||||||
United States | ($161,129) | $141,801 | ($50,774) | ||||||||
Foreign | -364,799 | 5,109 | 0 | ||||||||
(Loss) income before income taxes and equity earnings | ($382,779) | ($43,745) | ($93,970) | ($5,434) | $42,607 | $64,157 | $42,143 | ($1,999) | ($525,928) | $146,910 | ($50,774) |
Schedule_of_Effective_Income_T
Schedule of Effective Income Tax Reconciliation (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | ||
Income Tax Disclosure [Abstract] | |||||
Federal tax computed at the statutory rate | ($184,075) | $51,419 | |||
State taxes, net of federal benefit | -5,970 | 5,255 | |||
Change in valuation allowance | 19,515 | -22,730 | |||
Impairment of goodwill and other long-lived assets | 103,563 | 0 | |||
Acquisition costs | 4,945 | 0 | |||
Changes related to uncertain tax positions | -14,176 | 0 | |||
Federal and State tax credits | 6,817 | 2,627 | |||
Domestic production activities deduction | 2,493 | -2,493 | |||
Foreign income tax rate differential adjusted for U.S. taxation of foreign profits (1) | 15,716 | [1] | -1,735 | [1] | |
Deferred charges | 11,341 | 0 | |||
Other items, net | -610 | 1,487 | |||
Total tax provision | ($54,075) | $28,576 | $0 | ||
[1] | The “U.S. Taxation of foreign profits†represents the U.S. tax net of foreign tax credits associated with actual and deemed repatriations of earnings from the Company's non-U.S. subsidiaries. |
Schedule_of_Deferred_Tax_Asset
Schedule of Deferred Tax Assets and Liabilities (Details) (USD $) | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||
Current: | ||
Inventory | $11,951 | $0 |
Other | 2,468 | 806 |
Total current | 14,419 | 806 |
Non-current: | ||
Asset retirement obligation | 165 | 419 |
Mineral resources | 16,780 | 16,975 |
Intangible assets | 13,435 | 0 |
Stock compensation | 1,724 | 835 |
Net operating losses | 56,156 | 852 |
Research and energy tax credits | 10,473 | 0 |
Alternative Minimum Tax Credit | 1,611 | 0 |
Other | 823 | 116 |
Total non-current | 101,167 | 19,197 |
Current | ||
Inventory | 3,395 | 1,849 |
Other | 541 | 313 |
Total current | 3,936 | 2,162 |
Non-current: | ||
Development costs | 0 | 217 |
Foreign subsidiary earnings and withholding taxes | 32,637 | 0 |
Property, plant and equipment and intangible assets | 137,010 | 3,647 |
Section 174 costs | 24,814 | 20,094 |
Convertible debt (Notes) | 40,478 | 14,138 |
Other | 6,966 | 0 |
Total non-current | 241,905 | 38,096 |
Net deferred taxes, before valuation allowance | -130,255 | -20,255 |
Valuation allowance | -20,631 | 0 |
Total deferred tax | ($150,886) | ($20,255) |
Schedule_of_Income_Tax_Conting
Schedule of Income Tax Contingencies (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance, beginning of year | $519 | $0 |
Tax position related to current year: | ||
Additions | 4,737 | 519 |
Tax positions related to prior years: | ||
Additions | 16,109 | 0 |
Settlements | -13,740 | 0 |
Statute of limitations closures | -1,406 | 0 |
Balance, end of year | $6,219 | $519 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 7 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 3 Months Ended | |||||||||||
Feb. 16, 2011 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Mar. 08, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 16, 2011 | Nov. 30, 2012 | Aug. 31, 2012 | 31-May-12 | Feb. 29, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 16, 2011 | Feb. 16, 2011 | Jun. 30, 2012 | Jun. 11, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | |
Molymet | Molymet | Common Stock | Common Stock | Common Stock | Series A Mandatory Convertible Preferred Stock | Series A Mandatory Convertible Preferred Stock | Series A Mandatory Convertible Preferred Stock | Series A Mandatory Convertible Preferred Stock | Series A Mandatory Convertible Preferred Stock | Series A Mandatory Convertible Preferred Stock | Series A Mandatory Convertible Preferred Stock | Series A Mandatory Convertible Preferred Stock | Series A Mandatory Convertible Preferred Stock | MCP Exchangeco Inc. | Molycorp | Convertible Debt | Exploration rights | Exploration rights | |||||||
Minimum | Maximum | 6.00% Convertible Notes | |||||||||||||||||||||||
Stockholders' Equity | |||||||||||||||||||||||||
Shares outstanding | 138,773,538 | 138,773,538 | 83,896,043 | 2,070,000 | 2,070,000 | ||||||||||||||||||||
Preferred Stock, Liquidation Preference Per Share | $100 | ||||||||||||||||||||||||
Dividend rate | 5.50% | 5.50% | 5.50% | ||||||||||||||||||||||
Property, plant and equipment at cost | $1,589,235,000 | $1,589,235,000 | $584,865,000 | $16,166,000 | $0 | ||||||||||||||||||||
Issuance of shares for investment in mining property | 788,410 | ||||||||||||||||||||||||
Sale of stock, price per share | $10.15 | ||||||||||||||||||||||||
Payments to acquire exploration rights | 8,200,000 | 8,167,000 | 0 | 0 | |||||||||||||||||||||
Number of borrowed shares | 13,800,000 | 13,800,000 | |||||||||||||||||||||||
Stock issued during the period, shares | 12,500,000 | 13,800,000 | 99,723 | ||||||||||||||||||||||
Share price (in dollars per share) | $10 | $10 | |||||||||||||||||||||||
Underwriting discounts and commissions | 6.00% | ||||||||||||||||||||||||
Flat fee paid to underwriters | 1,500,000 | ||||||||||||||||||||||||
Primary shares purchased by insiders | 7,090,000 | ||||||||||||||||||||||||
Preferred stock, par value | $0.00 | $0.00 | $0.00 | ||||||||||||||||||||||
Preferred stock, shares issued | 1,800,000 | ||||||||||||||||||||||||
Mandatory convertible preferred stock price per share | $100 | ||||||||||||||||||||||||
Net proceeds from sale of preferred stock | 199,600,000 | 0 | 199,642,000 | 0 | |||||||||||||||||||||
Underwriter option to purchase additional shares | 270,000 | ||||||||||||||||||||||||
Preferred shares issued upon conversion | 1.6667 | 2 | |||||||||||||||||||||||
Interest rate | 6.00% | ||||||||||||||||||||||||
Common stock issued to acquire the entity (in shares) | 507,203 | 13,545,426 | |||||||||||||||||||||||
Fair value of common stock | 284,100,000 | ||||||||||||||||||||||||
Exchangeable shares converted | 340,196 | ||||||||||||||||||||||||
Issuance of shares | 132,130,000 | 15,000,000 | 390,100,000 | 390,093,000 | |||||||||||||||||||||
Stock issuance costs | 29,200,000 | 100,000 | |||||||||||||||||||||||
Price per share of common stock issued for investment | $31.22 | ||||||||||||||||||||||||
Number of consecutive trading days to calculate common stock price | 20 days | ||||||||||||||||||||||||
Premium percentage added to common stock price | 10.00% | ||||||||||||||||||||||||
Cash dividend declared (in dollars per share) | $1.38 | $1.38 | $1.38 | $1.38 | |||||||||||||||||||||
Cash dividend declared and paid | $11,385,000 | $9,015,000 | $0 | $11,400,000 | $9,000,000 |
Loss_Earnings_per_Share_Detail
(Loss) Earnings per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | ||||||||
Retained Earnings Adjustments [Line Items] | |||||||||||||||||||
Net (loss) income attributable to Molycorp stockholders | ($391,196) | ($18,891) | ($67,604) | ($3,478) | $26,579 | $45,356 | $47,787 | ($2,198) | ($481,169) | $117,526 | ($50,774) | ||||||||
Dividends on Convertible Preferred Stock | -11,385 | -9,962 | 0 | ||||||||||||||||
(Loss) income attributable to common stockholders | -492,554 | 107,564 | -50,774 | ||||||||||||||||
Weighted average common shares outstanding—basic | 107,064,892 | 83,454,221 | 62,332,054 | ||||||||||||||||
Basic (loss) earnings per share | ($3.16) | [1] | ($0.19) | [1] | ($0.71) | [1] | ($0.07) | [1] | $0.27 | [1] | $0.51 | [1] | $0.54 | [1] | ($0.04) | [1] | ($4.60) | $1.29 | ($0.81) |
Effect of dilutive 3.25% Convertible Notes | 0 | 413 | 0 | ||||||||||||||||
(Loss) income attributable to common stockholders adjusted for effect of dilution | ($492,554) | $107,977 | ($50,774) | ||||||||||||||||
Weighted average common shares outstanding—diluted | 107,064,892 | 85,220,017 | 62,332,054 | ||||||||||||||||
Diluted (loss) earnings per share | ($3.16) | [1] | ($0.19) | [1] | ($0.71) | [1] | ($0.07) | [1] | $0.26 | [1] | $0.49 | [1] | $0.53 | [1] | ($0.04) | [1] | ($4.60) | $1.27 | ($0.81) |
Convertible Debt | 3.25% Convertible Notes | |||||||||||||||||||
Retained Earnings Adjustments [Line Items] | |||||||||||||||||||
Interest rate | 3.25% | 3.25% | |||||||||||||||||
Convertible Debt | 6.00% Convertible Notes | |||||||||||||||||||
Retained Earnings Adjustments [Line Items] | |||||||||||||||||||
Interest rate | 6.00% | 6.00% | |||||||||||||||||
[1] | The sum of the quarterly income (loss) per share may be different than the per share amount for the year as the calculation for each quarter is based on the weighted average shares outstanding for that period. |
StockBased_Compensation_Narrat
Stock-Based Compensation Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant | 3,765,911 | ||
Total annual compensation cost recognized | $3.40 | $4.70 | $30.10 |
Stock option total annual compensation costs not yet recognized | 0.4 | ||
PBRSUs | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of units vesting | 0.00% | ||
PBRSUs | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of units vesting | 150.00% | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years | ||
Matching contribution by entity (as a percent) | 25.00% | ||
Increase in APIC due to conversion of the 2011 annual bonuses into RSUs | 0.6 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years | ||
Weighted-average period for unrecognized compensation costs | 1 year 0 months 14 days | ||
Option contractual term | 10 years | ||
Incentive Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total annual compensation cost recognized | 2.6 | 28.7 | |
RSAs, RSUs and PBRSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost not yet recognized | $5 | ||
Weighted-average period for unrecognized compensation costs | 1 year 9 months 10 days |
Allocation_of_Recognized_Perio
Allocation of Recognized Period Costs (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Compensation cost | $3.40 | $4.70 | $30.10 |
Income tax benefit | $0.90 | $0.80 | $0 |
Activity_Related_to_Restricted
Activity Related to Restricted Stock-based Awards (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2012 | ||
Restricted Stock | ||
Number of Shares | ||
Unvested at the beginning of the period (in shares) | 48,924 | |
Granted (in shares) | 0 | |
Forfeited (in shares) | -8,950 | |
Vested (in shares) | 0 | |
Unvested at the end of the period (in shares) | 39,974 | |
Weighted Average Grant-Date Price | ||
Unvested shares at the beginning of the period (in dollars per share) | $40.20 | |
Granted (in dollars per share) | $0 | |
Forfeited (in dollars per share) | $48.87 | |
Vested (in dollars per share) | $0 | |
Unvested shares at the end of the period (in dollars per share) | $40.09 | |
RSUs | ||
Number of Shares | ||
Unvested at the beginning of the period (in shares) | 78,544 | |
Granted (in shares) | 239,618 | |
Forfeited (in shares) | -92,848 | |
Vested (in shares) | -43,712 | [1] |
Unvested at the end of the period (in shares) | 181,602 | |
Weighted Average Grant-Date Price | ||
Unvested shares at the beginning of the period (in dollars per share) | $56.55 | |
Granted (in dollars per share) | $23.12 | |
Forfeited (in dollars per share) | $36.92 | |
Vested (in dollars per share) | $17.38 | [1] |
Unvested shares at the end of the period (in dollars per share) | $32.15 | |
PBRSUs | ||
Number of Shares | ||
Unvested at the beginning of the period (in shares) | 0 | |
Granted (in shares) | 45,576 | |
Forfeited (in shares) | -16,274 | |
Vested (in shares) | 0 | |
Unvested at the end of the period (in shares) | 29,302 | |
Weighted Average Grant-Date Price | ||
Unvested shares at the beginning of the period (in dollars per share) | $0 | |
Granted (in dollars per share) | $30.33 | |
Forfeited (in dollars per share) | $30.33 | |
Vested (in dollars per share) | $0 | |
Unvested shares at the end of the period (in dollars per share) | $30.33 | |
[1] | a) deferral and conversion of a portion of fees payable to certain non-employee directors of the Company; b) deferral and conversion of a portion of the 2011 annual cash bonuses paid to certain executive officers and other employees of the Company; and c) RSUs with an accelerated vesting period that were granted to some employees of Molycorp Canada on the acquisition date. |
Restricted_Stock_Additional_In
Restricted Stock Additional Information (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2010 |
PBRSUs | RSUs | RSUs | Restricted Stock | Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average grant-date fair value of shares granted | $1.40 | $5.50 | $4.50 | $0.60 | $1.40 |
Total fair value of shares vested | $0.80 | $0.10 | $1.40 |
Valuation_Assumptions_Details
Valuation Assumptions (Details) (Stock Options) | 12 Months Ended |
Dec. 31, 2011 | |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 2.21% |
Expected term (in years) | 6 years |
Volatility | 60.10% |
Expected dividend yield | 0.00% |
Stock_Option_Activity_Details
Stock Option Activity (Details) (USD $) | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2012 |
Additional Disclosures | |
Outstanding at December 31, 2012, Weighted-average remaining contractual term | 4 years 0 months 14 days |
Options exercisable at December 31, 2012, Weighted-average remaining contractual term | 4 years 0 months 14 days |
Outstanding at December 31, 2012, Intrinsic value (in millions) | $0 |
Options exercisable at December 31, 2012, Intrinsic value (in millions) | $0 |
Stock Options | |
Number of Shares | |
Outstanding at beginning of year (in shares) | 52,819 |
Granted (in shares) | 0 |
Exercised (in shares) | 0 |
Forfeited and expired (in shares) | -17,195 |
Outstanding at end of year (in shares) | 35,624 |
Options exercisable at year-end (in shares) | 11,875 |
Weighted Average Exercise Price | |
Outstanding at beginning of year (in dollars per share) | $48.87 |
Granted (in dollars per share) | $0 |
Exercised (in dollars per share) | $0 |
Forfeited and expired (in dollars per share) | $48.87 |
Outstanding at end of year (in dollars per share) | $48.87 |
Options exercisable at year-end (in dollars per share) | $48.87 |
Stock_Option_Additional_Inform
Stock Option Additional Information (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value, Total | $1.50 | $8 | |
Total intrinsic value of options exercised | 14.3 | ||
Total fair value of options vested | $0.30 | $8 |
Commitments_and_Contingencies_1
Commitments and Contingencies Operating Leases (Details) (Office space, trailers and certain equipment, USD $) | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Office space, trailers and certain equipment | |||
Future Operating Lease Commitments | |||
Operating leases rent expense net | $4,100,000 | $700,000 | $500,000 |
Remaining annual minimum payments under operating leases | |||
Operating lease obligations, Less Than 1 Year | 3,017,000 | ||
Operating lease obligations, 1 -3 Years | 4,668,000 | ||
Operating lease obligations, 4 - 5 Years | 1,391,000 | ||
Operating lease obligations, More Than 5 Years | 0 | ||
Operating lease obligations, total minimum payments | $9,076,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies Purchase Commitments (Details) (USD $) | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase obligations and other commitment, Total | $293,383 |
Purchase obligations and other commitment, Less Than 1 Year | 265,727 |
Purchase obligations and other commitment, 1 - 3 Years | 14,017 |
Purchase obligations and other commitment, 4 - 5 Years | 7,131 |
Purchase obligation and other comitment, More Than Five Years | $6,508 |
Commitments_and_Contingencies_3
Commitments and Contingencies Narrative (Details) (USD $) | Dec. 31, 2012 | Feb. 29, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2012 |
jurisdiction | lawsuit | Molycorp Canada | Office space, trailers and certain equipment | Office space, trailers and certain equipment | Office space, trailers and certain equipment | Employees covered by collective bargaining agreement under facility | Molycorp Silmet | |
employee | Workforce | Employees covered by collective bargaining agreement under facility | ||||||
Molycorp Mountain Pass facility | Workforce | |||||||
employee | employee | |||||||
Plant Modernization and Expansion Commitments | ||||||||
Operating leases rent expense net | $4,100,000 | $700,000 | $500,000 | |||||
Other purchase obligations | 14,017,000 | 7,500,000 | ||||||
Number of employees | 2,700 | 236 | 176 | |||||
Concentration risk (as a percent) | 61.00% | 29.00% | ||||||
Surety bonds placed to secure the closure and reclamation obligations | $28,700,000 | |||||||
Number of stockholder derivative lawsuits | 7 | |||||||
Number of different jurisdictions in which lawsuits have been filed | 3 |
Concentrations_Details
Concentrations (Details) (USD $) | 3 Months Ended | 12 Months Ended | 7 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | ||||||||||||||||||||||
Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2011 | |
Product Concentration | Product Concentration | Product Concentration | Product Concentration | Product Concentration | Product Concentration | Product Concentration | Product Concentration | Product Concentration | Product Concentration | Product Concentration | Product Concentration | Product Concentration | Product Concentration | Product Concentration | Product Concentration | Molycorp Tolleson | ||||||||||||
Chemicals and Oxides | Magnetic Materials and Alloys | Magnetic Materials and Alloys | Resources | Resources | Resources | Resources | Resources | Resources | Resources | Customers Concentration | Customers Concentration | Customers Concentration | Customers Concentration | Customers Concentration | Customers Concentration | Product Concentration | ||||||||||||
Cerium products | Neo Powders | NdFeB Alloys | Lanthanum products | Lanthanum products | Cerium products | Cerium products | Neodymium and Praseodymium products | Neodymium and Praseodymium products | Hitachi Metals Ltd. | Mitsubishi Unimetals USA | W.R. Grace & Co.—Conn. | Chuden Rare Earth Co. Ltd. | Shin-Etsu Chemical Co. | Customers Concentration | ||||||||||||||
Santoku | ||||||||||||||||||||||||||||
Concentrations | ||||||||||||||||||||||||||||
Entity-wide revenue, major customers | 15.00% | 25.00% | 11.00% | 23.00% | 39.00% | 11.00% | 29.00% | 26.00% | 26.00% | 12.00% | ||||||||||||||||||
Percentage of sales to total sales threshold | 15.00% | |||||||||||||||||||||||||||
Sales, net of intercompany transactions | $134,259,000 | $205,604,000 | $104,577,000 | $84,470,000 | $132,905,000 | $138,050,000 | $99,615,000 | $26,261,000 | $528,910,000 | $396,831,000 | $35,157,000 | $0 | $92,200,000 | $8,500,000 | $7,400,000 | $5,400,000 | $4,000,000 | $48,800,000 |
RelatedParty_Transactions_Deta
Related-Party Transactions (Details) (USD $) | 12 Months Ended | 12 Months Ended | 6 Months Ended | 7 Months Ended | 1 Months Ended | |||||||||
Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2012 | Jun. 11, 2012 | Jun. 11, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Jun. 30, 2012 | |
Traxys North America LLC and affiliates | Traxys North America LLC and affiliates | Traxys North America LLC and affiliates | Traxys North America LLC and affiliates | Traxys North America LLC and affiliates | Neo Material Technologies, Inc. | Neo Material Technologies, Inc. | TMT | TMT | Keli | Ingal Stade | ||||
Lanthanum oxide | Tantalum Metal | Tantalum Metal | neodymium/praseodymium | Rare earth metals | Compounds | Neo Powders | Metals | Gallium Metal | ||||||
Related Party Transactions | ||||||||||||||
Principal payments made | $0 | $3,150,000 | $1,107,000 | $3,100,000 | ||||||||||
Outstanding amount of short-term borrowing payable to related party | 870,000 | 900,000 | ||||||||||||
Outstanding amount of trade accounts payable related to sales made to related party but not remitted | 2,800,000 | |||||||||||||
Purchases made from related party | 6,200,000 | 2,800,000 | 32,600,000 | 3,300,000 | ||||||||||
Related party receivables | 200,000 | 0 | 2,100,000 | 0 | ||||||||||
Sales to related party | $3,200,000 | $4,300,000 | $1,600,000 | $1,600,000 |
Net_Change_in_Operating_Assets2
Net Change in Operating Assets and Liabilities (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Decrease (increase) in operating assets: | |||
Accounts receivable | $124,983 | ($52,805) | ($15,200) |
Inventory | -46,126 | -64,543 | -6,872 |
Prepaid expenses and other assets | 33,520 | -6,363 | 251 |
Increase (decrease) in operating liabilities: | |||
Accounts payable | -34,972 | 16,233 | 3,797 |
Income tax payable | -40,263 | -17,832 | 0 |
Interest payable | -40,792 | 0 | 0 |
Asset retirement obligation | -1,467 | -1,030 | -632 |
Accrued expenses | -54,763 | 6,151 | -1,481 |
Net change in operating assets and liabilities | ($59,880) | ($120,189) | ($20,137) |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Net cash paid for: | |||
Income taxes | $178 | $43,505 | $0 |
Interest, net of capitalized interest | 8,942 | 273 | 0 |
Non-cash financing activities and investing activities: | |||
Change in accrued capital expenditures | 52,189 | 112,606 | 5,510 |
Conversion of debt securities to equity securities | 9,400 | 0 | 0 |
Acquisition of exploration rights | 8,000 | 0 | 0 |
Debt assumed from business acquisitions | 40,691 | 3,184 | 0 |
Issuance of common stock for business acquisitions | 284,100 | 72,700 | 0 |
Fixed assets additions under capital lease | $15,658 | $0 | $0 |
Derivative_Instruments_Narrati
Derivative Instruments Narrative (Details) | 3 Months Ended | 7 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2012 | Mar. 31, 2012 | Mar. 28, 2012 | Dec. 31, 2012 | Dec. 31, 2012 |
USD ($) | USD ($) | CAD | Interest Expense | Derivative Liability | |
USD ($) | USD ($) | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Fair value of put option | $7.80 | ||||
Unrealized gain on change in put option fair value | -1.2 | ||||
Notional amount of derivatives | 870 | ||||
Realized loss on settlement of derivative forward contracts | $37.60 | $6.70 |
Fair_Value_Put_Level_3_Inputs_
Fair Value Put Level 3 Inputs (Details) (Derivative Liability, Income Approach Valuation Technique, Level 3, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2012 | |
Derivative Liability | Income Approach Valuation Technique | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Equity-risk premium | 6.50% | |
Risk premium | 12.90% | |
Size premium | 3.90% | |
Growth rate | 1.00% | |
Equity-risk premium, Effect of 1% increase | ($0.80) | [1] |
Risk premium, Effect of 1% increase | -0.4 | [1] |
Size premium, Effect of 1% increase | -0.4 | [1] |
Growth rate, Effect of 1% increase | 0.3 | [1] |
Equity-risk premium, Effect of 1% decrease | 1 | [1] |
Risk premium, Effect of 1% decrease | 0.4 | [1] |
Size premium, Effect of 1% decrease | 0.5 | [1] |
Growth rate, Effect of 1% decrease | ($0.30) | [1] |
[1] | Assuming all other inputs are unchanged. |
Employee_Benefit_Plans_Narrati
Employee Benefit Plans (Narrative) (Details) (USD $) | 0 Months Ended | 7 Months Ended | 12 Months Ended | |||
Sep. 01, 2011 | Dec. 31, 2012 | Dec. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
H | ||||||
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | ||||||
Amended service period under defined contribution plan | 90 days | |||||
Non-elective contribution made by the company as a percentage of employee's compensation | 4.00% | |||||
Minimum service period for eligibility to receive non-elective contribution from company (in hours) | 1,000 | |||||
Company matching contribution as a percentage of the first 3.0% compensation contributed by each eligible employee | 100.00% | 100.00% | ||||
Percentage of each employee's compensation eligible for Compoany match of 100% in defined contribution plan | 3.00% | 3.00% | ||||
Company matching contribution as a percentage of the next 2.0% of compensation contributed by each eligible employee | 50.00% | 50.00% | ||||
Percentage of each employee's compensation eligible for Company match of 50% in defined contribution plan | 2.00% | 2.00% | ||||
Maximum discretionary contribution made by Company to defined contribution plan as a percentage of each employee's compensation | 4.00% | 4.00% | ||||
Period of service after which employees vest in Company contributions | 3 years | |||||
Expenses related to defined contribution plan | $1,600,000 | $1,600,000 | $1,200,000 | |||
Accrued expenses related to defined contribution plan | 1,400,000 | 1,400,000 | 1,088,000 | |||
Discretionary contributions to the Management Incentive Plan (MIP) funded by the Company | 400,000 | 300,000 | ||||
Total accrued amount for the MIP including employee deferrals, discretionary contributions and related earnings | 900,000 | 900,000 | 500,000 | |||
Accrued expense for cash portion of bonus plan | 3,503,000 | 3,503,000 | 4,845,000 | |||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||||||
Actuarial loss | 795,000 | |||||
Estimated future employer contributions in 2013 | 100,000 | |||||
Pension Plan | ||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||||||
Actuarial loss | 820,000 | |||||
Amortization of net loss into periodic benefit cost during 2013 | 300,000 | |||||
Pension Plan | Accumulated Other Comprehensive Loss | ||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||||||
Actuarial loss | $1,200,000 |
Change_in_Projected_Benefit_Ob
Change in Projected Benefit Obligations and Fair Value of Plan Assets (Details) (USD $) | 7 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2012 |
Change in benefit obligation: | |
At June 12, 2012 | $8,213 |
Service Cost | 0 |
Interest cost | 187 |
Net actuarial loss (gain) | 795 |
Benefits paid | -277 |
At December 31, 2012 | 8,918 |
Change in plan assets: | |
Fair value of plan assets at June 12, 2012 | 5,379 |
Actual return on plan assets | 262 |
Employer contribution | 262 |
Benefits paid | -277 |
Fair value of plan assets at December 31, 2012 | 5,626 |
Underfunded status at December 31, 2012 | -3,292 |
Pension Plan | |
Change in benefit obligation: | |
At June 12, 2012 | 7,975 |
Service Cost | 0 |
Interest cost | 176 |
Net actuarial loss (gain) | 820 |
Benefits paid | -270 |
At December 31, 2012 | 8,701 |
Change in plan assets: | |
Fair value of plan assets at June 12, 2012 | 5,379 |
Actual return on plan assets | 262 |
Employer contribution | 255 |
Benefits paid | -270 |
Fair value of plan assets at December 31, 2012 | 5,626 |
Underfunded status at December 31, 2012 | -3,075 |
PBP | |
Change in benefit obligation: | |
At June 12, 2012 | 238 |
Service Cost | 0 |
Interest cost | 11 |
Net actuarial loss (gain) | -25 |
Benefits paid | -7 |
At December 31, 2012 | 217 |
Change in plan assets: | |
Fair value of plan assets at June 12, 2012 | 0 |
Actual return on plan assets | 0 |
Employer contribution | 7 |
Benefits paid | -7 |
Fair value of plan assets at December 31, 2012 | 0 |
Underfunded status at December 31, 2012 | ($217) |
Schedule_of_Expected_Benefit_P
Schedule of Expected Benefit Payments (Details) (USD $) | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |
Compensation and Retirement Disclosure [Abstract] | |
2013 | $500 |
2014 | 500 |
2015 | 500 |
2016 | 500 |
2017 | 500 |
2018-2022 | $2,500 |
Components_of_Net_Periodic_Pen
Components of Net Periodic Pension Expense (Details) (USD $) | 7 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2012 |
Components of net periodic benefit cost: | |
Service Cost | $0 |
Interest cost | 187 |
Expected return on plan assets | -267 |
Amortization of transition obligation/(asset) | 0 |
Amortization of prior service cost | -4 |
Amortization of actuarial loss | 221 |
Net periodic benefit cost | 137 |
Pension Plan | |
Components of net periodic benefit cost: | |
Service Cost | 0 |
Interest cost | 176 |
Expected return on plan assets | -267 |
Amortization of transition obligation/(asset) | 0 |
Amortization of prior service cost | 0 |
Amortization of actuarial loss | 228 |
Net periodic benefit cost | 137 |
PBP | |
Components of net periodic benefit cost: | |
Service Cost | 0 |
Interest cost | 11 |
Expected return on plan assets | 0 |
Amortization of transition obligation/(asset) | 0 |
Amortization of prior service cost | -4 |
Amortization of actuarial loss | -7 |
Net periodic benefit cost | $0 |
Employee_Benefit_Plans_Schedul
Employee Benefit Plans Schedule of Pension Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2012 | ||
Pension Plan | ||
Assumptions for benefit obligation: | ||
Discount rate | 3.70% | |
Rate of compensation increase | 0.00% | [1] |
Assumptions for net periodic benefit cost: | ||
Discount rate | 4.50% | |
Expected return on plan assets | 5.00% | |
Rate of compensation increase | 0.00% | [1] |
PBP | ||
Assumptions for benefit obligation: | ||
Discount rate | 3.50% | |
Rate of compensation increase | 0.00% | [1] |
Ultimate medical trend rate (pre65/post65) | 4.50% | |
Year ultimate rate reached (pre65/post65) | 2028 | |
Assumptions for net periodic benefit cost: | ||
Discount rate | 4.55% | |
Rate of compensation increase | 0.00% | [1] |
PBP | Benefit Obligation | ||
Assumptions for benefit obligation: | ||
Initial medical trend rate (pre65/post65) | 7.30% | |
PBP | Net Periodic Benefit | Pre65 | ||
Assumptions for benefit obligation: | ||
Initial medical trend rate (pre65/post65) | 7.40% | |
PBP | Net Periodic Benefit | Post65 | ||
Assumptions for benefit obligation: | ||
Initial medical trend rate (pre65/post65) | 9.30% | |
[1] | No assumption was made with regard to the rate of expected compensation increase as there are no new active service participants in the plan. |
Effect_of_Health_Care_Costs_wi
Effect of Health Care Costs with Trend Rate Change (Details) (PBP, USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2012 |
PBP | |
Effect of 1% increase in assumed health care cost trend rates: | |
Total of service and interest cost components | $1 |
Post-employment benefit obligation | 16 |
Effect of 1% decrease in assumed health care cost trend rates: | |
Total of service and interest cost components | -1 |
Post-employment benefit obligation | ($14) |
Allocation_of_Plan_Assets_Deta
Allocation of Plan Assets (Details) (USD $) | Dec. 31, 2012 | Jun. 12, 2012 | Dec. 31, 2012 | Jun. 12, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Jun. 12, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | PBP | PBP | PBP | PBP | PBP | Pension Plan | Pension Plan | Pension Plan | Pension Plan | Pension Plan | Pension Plan | Pension Plan | Pension Plan | Pension Plan | Pension Plan | Pension Plan | Pension Plan | Pension Plan | Pension Plan | Pension Plan | Pension Plan | Pension Plan | ||
Interest-bearing cash | Fixed income securities | Equity securities | Level 1 | Level 2 | Level 3 | Interest-bearing cash | Interest-bearing cash | Interest-bearing cash | Interest-bearing cash | Fixed income securities | Fixed income securities | Fixed income securities | Fixed income securities | Equity securities | Equity securities | Equity securities | Equity securities | |||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||||||
Target plan asset allocation, minimum | 5.00% | 50.00% | 20.00% | |||||||||||||||||||||
Target plan asset allocation, maximum | 10.00% | 80.00% | 30.00% | |||||||||||||||||||||
Actual plan asset allocation | 2.33% | 74.34% | 23.33% | |||||||||||||||||||||
Fair value of plan assets | $5,626 | $5,379 | $0 | $0 | $5,626 | $5,379 | $1,727 | $3,899 | $0 | $130 | $130 | $0 | $0 | $4,190 | $291 | $3,899 | $0 | $1,306 | $1,306 | $0 | $0 |
Condensed_Consolidating_Balanc
Condensed Consolidating Balance Sheet (Details) (USD $) | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 |
In Thousands, unless otherwise specified | ||||
Current assets: | ||||
Cash and cash equivalents | $227,790 | $418,855 | $316,430 | $6,929 |
Trade accounts receivable, net (Note 2) | 52,430 | 70,679 | ||
Inventory | 287,376 | 111,943 | ||
Deferred charges | 9,412 | 7,318 | ||
Deferred tax assets | 9,789 | 0 | ||
Income tax receivable | 25,087 | 10,514 | ||
Prepaid expenses and other current assets | 21,794 | 19,735 | ||
Total current assets | 633,678 | 639,044 | ||
Non-current assets: | ||||
Deposits | 26,769 | 23,286 | ||
Property, plant and equipment, net | 1,544,304 | 561,628 | ||
Inventory | 26,096 | 4,362 | ||
Intangible assets, net | 450,938 | 3,072 | ||
Investments | 64,036 | 20,000 | ||
Deferred tax assets | 0 | |||
Goodwill | 239,742 | 3,432 | 0 | |
Investments in consolidated subsidiaries | 0 | 0 | ||
Intercompany accounts receivable | 0 | 0 | ||
Other non-current assets | 6,972 | 301 | ||
Total non-current assets | 2,358,857 | 616,081 | ||
Total assets | 2,992,535 | 1,255,125 | ||
Current liabilities: | ||||
Trade accounts payable | 241,994 | 161,587 | ||
Accrued expenses | 59,013 | 12,898 | ||
Income tax payable | 15,267 | 0 | ||
Deferred tax liabilities | 0 | 1,356 | ||
Debt and capital lease obligations | 39,604 | 1,516 | ||
Short-term borrowings-related party | 870 | |||
Other current liabilities | 3,539 | 1,266 | ||
Current portion of asset retirement obligation | 396 | |||
Total current liabilities | 359,417 | 178,623 | ||
Non-current liabilities: | ||||
Asset retirement obligation | 18,586 | 15,145 | ||
Deferred tax liabilities | 160,675 | 18,899 | ||
Debt and capital lease obligations | 1,188,832 | 196,545 | ||
Derivative liability | 7,816 | 0 | ||
Pension liabilities | 3,292 | 0 | ||
Intercompany accounts payable | 0 | 0 | ||
Other non-current liabilities | 2,659 | 683 | ||
Total non-current liabilities | 1,381,860 | 231,272 | ||
Total liabilities | 1,741,277 | 409,895 | ||
Stockholders’ equity: | ||||
Common stock | 139 | 84 | ||
Preferred stock | 2 | 2 | ||
Additional paid-in capital | 1,691,429 | 838,547 | ||
Accumulated other comprehensive loss | -9,433 | -8,481 | ||
(Deficit) retained earnings | -466,091 | 15,078 | ||
Total Molycorp stockholders’ equity | 1,216,046 | 845,230 | ||
Noncontrolling interests | 35,212 | 0 | ||
Total stockholders’ equity | 1,251,258 | 845,230 | 446,513 | 74,615 |
Total liabilities and stockholders’ equity | 2,992,535 | 1,255,125 | ||
Parent | ||||
Current assets: | ||||
Cash and cash equivalents | 16,560 | 407,446 | 316,430 | 0 |
Trade accounts receivable, net (Note 2) | 0 | 0 | ||
Inventory | 0 | 0 | ||
Deferred charges | 0 | 0 | ||
Deferred tax assets | 0 | |||
Income tax receivable | 0 | 0 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Total current assets | 16,560 | 407,446 | ||
Non-current assets: | ||||
Deposits | 1,752 | 1,751 | ||
Property, plant and equipment, net | 0 | 0 | ||
Inventory | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Investments | 0 | 0 | ||
Deferred tax assets | 6,030 | |||
Goodwill | 0 | 0 | ||
Investments in consolidated subsidiaries | 883,319 | 150,510 | ||
Intercompany accounts receivable | 1,539,877 | 476,711 | ||
Other non-current assets | 0 | 0 | ||
Total non-current assets | 2,430,978 | 628,972 | ||
Total assets | 2,447,538 | 1,036,418 | ||
Current liabilities: | ||||
Trade accounts payable | 0 | 0 | ||
Accrued expenses | 14,872 | 311 | ||
Income tax payable | 0 | |||
Deferred tax liabilities | 0 | 0 | ||
Debt and capital lease obligations | 0 | 0 | ||
Short-term borrowings-related party | 0 | |||
Other current liabilities | 0 | |||
Current portion of asset retirement obligation | 0 | |||
Total current liabilities | 14,872 | 311 | ||
Non-current liabilities: | ||||
Asset retirement obligation | 0 | 0 | ||
Deferred tax liabilities | 0 | 0 | ||
Debt and capital lease obligations | 1,166,777 | 190,877 | ||
Derivative liability | 0 | |||
Pension liabilities | 0 | |||
Intercompany accounts payable | 49,843 | 0 | ||
Other non-current liabilities | 0 | 0 | ||
Total non-current liabilities | 1,216,620 | 190,877 | ||
Total liabilities | 1,231,492 | 191,188 | ||
Stockholders’ equity: | ||||
Common stock | 139 | 84 | ||
Preferred stock | 2 | 2 | ||
Additional paid-in capital | 1,691,429 | 838,547 | ||
Accumulated other comprehensive loss | -9,433 | -8,481 | ||
(Deficit) retained earnings | -466,091 | 15,078 | ||
Total Molycorp stockholders’ equity | 1,216,046 | |||
Noncontrolling interests | 0 | |||
Total stockholders’ equity | 1,216,046 | 845,230 | ||
Total liabilities and stockholders’ equity | 2,447,538 | 1,036,418 | ||
Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 18,020 | 10,758 | 0 | 6,929 |
Trade accounts receivable, net (Note 2) | 7,738 | 58,619 | ||
Inventory | 49,416 | 52,246 | ||
Deferred charges | 2,203 | 7,318 | ||
Deferred tax assets | 0 | |||
Income tax receivable | 25,087 | 10,514 | ||
Prepaid expenses and other current assets | 9,085 | 17,845 | ||
Total current assets | 111,549 | 157,300 | ||
Non-current assets: | ||||
Deposits | 24,862 | 21,362 | ||
Property, plant and equipment, net | 1,377,147 | 500,612 | ||
Inventory | 26,096 | 4,362 | ||
Intangible assets, net | 508 | 573 | ||
Investments | 45,241 | 20,000 | ||
Deferred tax assets | 0 | |||
Goodwill | 0 | 1,977 | ||
Investments in consolidated subsidiaries | 97,960 | 118,879 | ||
Intercompany accounts receivable | 207,035 | 25,870 | ||
Other non-current assets | 885 | 301 | ||
Total non-current assets | 1,779,734 | 693,936 | ||
Total assets | 1,891,283 | 851,236 | ||
Current liabilities: | ||||
Trade accounts payable | 191,769 | 139,408 | ||
Accrued expenses | 10,087 | 11,072 | ||
Income tax payable | 0 | |||
Deferred tax liabilities | 1,942 | 1,356 | ||
Debt and capital lease obligations | 352 | 0 | ||
Short-term borrowings-related party | 870 | |||
Other current liabilities | 3,539 | |||
Current portion of asset retirement obligation | 396 | |||
Total current liabilities | 207,689 | 153,102 | ||
Non-current liabilities: | ||||
Asset retirement obligation | 18,586 | 15,145 | ||
Deferred tax liabilities | 23,130 | 18,899 | ||
Debt and capital lease obligations | 15,163 | 0 | ||
Derivative liability | 0 | |||
Pension liabilities | 0 | |||
Intercompany accounts payable | 1,577,363 | 489,180 | ||
Other non-current liabilities | 1,102 | 683 | ||
Total non-current liabilities | 1,635,344 | 523,907 | ||
Total liabilities | 1,843,033 | 677,009 | ||
Stockholders’ equity: | ||||
Common stock | 0 | 0 | ||
Preferred stock | 0 | 0 | ||
Additional paid-in capital | 149,857 | 149,857 | ||
Accumulated other comprehensive loss | 0 | 0 | ||
(Deficit) retained earnings | -101,607 | 24,370 | ||
Total Molycorp stockholders’ equity | 48,250 | |||
Noncontrolling interests | 0 | |||
Total stockholders’ equity | 48,250 | 174,227 | ||
Total liabilities and stockholders’ equity | 1,891,283 | 851,236 | ||
Non-Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 193,210 | 651 | 0 | |
Trade accounts receivable, net (Note 2) | 44,692 | 12,060 | ||
Inventory | 237,960 | 59,697 | ||
Deferred charges | 7,209 | 0 | ||
Deferred tax assets | 11,731 | |||
Income tax receivable | 0 | 0 | ||
Prepaid expenses and other current assets | 12,709 | 1,890 | ||
Total current assets | 507,511 | 74,298 | ||
Non-current assets: | ||||
Deposits | 155 | 173 | ||
Property, plant and equipment, net | 167,157 | 61,016 | ||
Inventory | 0 | 0 | ||
Intangible assets, net | 450,430 | 2,499 | ||
Investments | 18,795 | 0 | ||
Deferred tax assets | 0 | |||
Goodwill | 239,742 | 1,455 | ||
Investments in consolidated subsidiaries | 0 | 0 | ||
Intercompany accounts receivable | 794 | 0 | ||
Other non-current assets | 6,087 | 0 | ||
Total non-current assets | 883,160 | 65,143 | ||
Total assets | 1,390,671 | 139,441 | ||
Current liabilities: | ||||
Trade accounts payable | 50,225 | 22,179 | ||
Accrued expenses | 34,054 | 1,515 | ||
Income tax payable | 15,267 | |||
Deferred tax liabilities | 0 | 0 | ||
Debt and capital lease obligations | 39,252 | 1,516 | ||
Short-term borrowings-related party | 0 | |||
Other current liabilities | 0 | |||
Current portion of asset retirement obligation | 0 | |||
Total current liabilities | 138,798 | 25,210 | ||
Non-current liabilities: | ||||
Asset retirement obligation | 0 | 0 | ||
Deferred tax liabilities | 143,575 | 0 | ||
Debt and capital lease obligations | 6,892 | 5,668 | ||
Derivative liability | 7,816 | |||
Pension liabilities | 3,292 | |||
Intercompany accounts payable | 120,500 | 13,401 | ||
Other non-current liabilities | 1,557 | 0 | ||
Total non-current liabilities | 283,632 | 19,069 | ||
Total liabilities | 422,430 | 44,279 | ||
Stockholders’ equity: | ||||
Common stock | 0 | 0 | ||
Preferred stock | 0 | 0 | ||
Additional paid-in capital | 1,283,863 | 91,158 | ||
Accumulated other comprehensive loss | -9,433 | -8,481 | ||
(Deficit) retained earnings | -341,401 | 12,485 | ||
Total Molycorp stockholders’ equity | 933,029 | |||
Noncontrolling interests | 35,212 | |||
Total stockholders’ equity | 968,241 | 95,162 | ||
Total liabilities and stockholders’ equity | 1,390,671 | 139,441 | ||
Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Trade accounts receivable, net (Note 2) | 0 | 0 | ||
Inventory | 0 | 0 | ||
Deferred charges | 0 | 0 | ||
Deferred tax assets | -1,942 | |||
Income tax receivable | 0 | 0 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Total current assets | -1,942 | 0 | ||
Non-current assets: | ||||
Deposits | 0 | 0 | ||
Property, plant and equipment, net | 0 | 0 | ||
Inventory | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Investments | 0 | |||
Deferred tax assets | -6,030 | |||
Goodwill | 0 | 0 | ||
Investments in consolidated subsidiaries | -981,279 | -269,389 | ||
Intercompany accounts receivable | -1,747,706 | -502,581 | ||
Other non-current assets | 0 | 0 | ||
Total non-current assets | -2,735,015 | -771,970 | ||
Total assets | -2,736,957 | -771,970 | ||
Current liabilities: | ||||
Trade accounts payable | 0 | 0 | ||
Accrued expenses | 0 | 0 | ||
Income tax payable | 0 | |||
Deferred tax liabilities | -1,942 | 0 | ||
Debt and capital lease obligations | 0 | 0 | ||
Short-term borrowings-related party | 0 | |||
Other current liabilities | 0 | |||
Current portion of asset retirement obligation | 0 | |||
Total current liabilities | -1,942 | 0 | ||
Non-current liabilities: | ||||
Asset retirement obligation | 0 | 0 | ||
Deferred tax liabilities | -6,030 | 0 | ||
Debt and capital lease obligations | 0 | 0 | ||
Derivative liability | 0 | |||
Pension liabilities | 0 | |||
Intercompany accounts payable | -1,747,706 | -502,581 | ||
Other non-current liabilities | 0 | 0 | ||
Total non-current liabilities | -1,753,736 | -502,581 | ||
Total liabilities | -1,755,678 | -502,581 | ||
Stockholders’ equity: | ||||
Common stock | 0 | 0 | ||
Preferred stock | 0 | 0 | ||
Additional paid-in capital | -1,433,720 | -241,015 | ||
Accumulated other comprehensive loss | 9,433 | 8,481 | ||
(Deficit) retained earnings | 443,008 | -36,855 | ||
Total Molycorp stockholders’ equity | -981,279 | |||
Noncontrolling interests | 0 | |||
Total stockholders’ equity | -981,279 | -269,389 | ||
Total liabilities and stockholders’ equity | ($2,736,957) | ($771,970) |
Condensed_Consolidating_Statem
Condensed Consolidating Statement of Operations and Comprehensive Income (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Revenues | $134,259,000 | $205,604,000 | $104,577,000 | $84,470,000 | $132,905,000 | $138,050,000 | $99,615,000 | $26,261,000 | $528,910,000 | $396,831,000 | $35,157,000 |
Costs of sales: | |||||||||||
Costs excluding depreciation and amortization | -480,655,000 | -164,351,000 | -28,797,000 | ||||||||
Depreciation and amortization | -30,910,000 | -13,539,000 | -5,694,000 | ||||||||
Gross profit | -20,473,000 | 10,864,000 | -4,073,000 | 31,027,000 | 70,272,000 | 82,392,000 | 56,692,000 | 9,584,000 | 17,345,000 | 218,941,000 | 666,000 |
Operating expenses: | |||||||||||
Selling, general and administrative | -113,669,000 | -50,757,000 | -45,175,000 | ||||||||
Corporate development | -19,796,000 | -5,912,000 | 0 | ||||||||
Depreciation, amortization and accretion | -22,215,000 | -1,688,000 | -1,231,000 | ||||||||
Research and development | -27,796,000 | -7,718,000 | -2,338,000 | ||||||||
Impairment of goodwill and other long-lived assets | -301,755,000 | 0 | -3,100,000 | ||||||||
Operating (loss) income | -467,886,000 | 152,866,000 | -51,178,000 | ||||||||
Other (expense) income: | |||||||||||
Other (expense) income | -38,798,000 | -153,000 | 155,000 | ||||||||
Foreign exchange gain (loss), net | 2,872,000 | -5,415,000 | 0 | ||||||||
Interest (expense) income, net of capitalized interest | -22,116,000 | -388,000 | 249,000 | ||||||||
Interest income (expense) from intercompany notes | 0 | 0 | |||||||||
Equity earnings from consolidated subsidiaries | 0 | 0 | 0 | ||||||||
Total other expense | -58,042,000 | -5,956,000 | 404,000 | ||||||||
(Loss) income before income taxes and equity earnings | -382,779,000 | -43,745,000 | -93,970,000 | -5,434,000 | 42,607,000 | 64,157,000 | 42,143,000 | -1,999,000 | -525,928,000 | 146,910,000 | -50,774,000 |
Income tax benefit (expense) | 54,075,000 | -28,576,000 | 0 | ||||||||
Equity in results of affiliates | -3,490,000 | 0 | 0 | ||||||||
Net (loss) income | -389,490,000 | -15,451,000 | -66,924,000 | -3,478,000 | 26,674,000 | 45,101,000 | 48,755,000 | -2,198,000 | -475,343,000 | 118,334,000 | -50,774,000 |
Net income attributable to noncontrolling interest | -5,826,000 | -808,000 | 0 | ||||||||
Net (loss) income attributable to Molycorp stockholders | -391,196,000 | -18,891,000 | -67,604,000 | -3,478,000 | 26,579,000 | 45,356,000 | 47,787,000 | -2,198,000 | -481,169,000 | 117,526,000 | -50,774,000 |
Other comprehensive income: | |||||||||||
Foreign currency translation adjustments | -952,000 | -8,481,000 | 0 | ||||||||
Comprehensive (loss) income | -476,295,000 | 109,853,000 | -50,774,000 | ||||||||
Comprehensive (loss) income attributable to: | |||||||||||
Molycorp stockholders | -470,469,000 | 109,468,000 | -50,774,000 | ||||||||
Noncontrolling interest | -5,826,000 | 385,000 | 0 | ||||||||
Parent | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Costs of sales: | |||||||||||
Costs excluding depreciation and amortization | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Gross profit | 0 | 0 | 0 | ||||||||
Operating expenses: | |||||||||||
Selling, general and administrative | 46,000 | -7,000 | -436,000 | ||||||||
Corporate development | -46,000 | 0 | |||||||||
Depreciation, amortization and accretion | 0 | 0 | 0 | ||||||||
Research and development | 0 | 0 | 0 | ||||||||
Impairment of goodwill and other long-lived assets | 0 | 0 | |||||||||
Operating (loss) income | 0 | -7,000 | -436,000 | ||||||||
Other (expense) income: | |||||||||||
Other (expense) income | -37,589,000 | 0 | 0 | ||||||||
Foreign exchange gain (loss), net | 0 | 0 | |||||||||
Interest (expense) income, net of capitalized interest | -18,118,000 | -499,000 | 249,000 | ||||||||
Interest income (expense) from intercompany notes | 25,157,000 | 424,000 | |||||||||
Equity earnings from consolidated subsidiaries | -456,649,000 | 117,608,000 | -50,587,000 | ||||||||
Total other expense | -487,199,000 | 117,533,000 | -50,338,000 | ||||||||
(Loss) income before income taxes and equity earnings | -487,199,000 | 117,526,000 | |||||||||
Income tax benefit (expense) | 6,030,000 | 0 | |||||||||
Equity in results of affiliates | 0 | ||||||||||
Net (loss) income | -481,169,000 | 117,526,000 | -50,774,000 | ||||||||
Net income attributable to noncontrolling interest | 0 | 0 | |||||||||
Net (loss) income attributable to Molycorp stockholders | -481,169,000 | 117,526,000 | |||||||||
Other comprehensive income: | |||||||||||
Foreign currency translation adjustments | 0 | 0 | |||||||||
Comprehensive (loss) income | -481,169,000 | 117,526,000 | |||||||||
Comprehensive (loss) income attributable to: | |||||||||||
Molycorp stockholders | -481,169,000 | 117,526,000 | |||||||||
Noncontrolling interest | 0 | ||||||||||
Guarantor Subsidiaries | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Revenues | 139,257,000 | 365,490,000 | 35,157,000 | ||||||||
Costs of sales: | |||||||||||
Costs excluding depreciation and amortization | -153,461,000 | -158,951,000 | -28,797,000 | ||||||||
Depreciation and amortization | -12,094,000 | -9,411,000 | -5,694,000 | ||||||||
Gross profit | -26,298,000 | 197,128,000 | 666,000 | ||||||||
Operating expenses: | |||||||||||
Selling, general and administrative | -86,493,000 | -48,296,000 | -44,739,000 | ||||||||
Corporate development | -19,750,000 | -5,912,000 | |||||||||
Depreciation, amortization and accretion | -2,220,000 | -1,378,000 | -1,231,000 | ||||||||
Research and development | -12,984,000 | -7,718,000 | -2,338,000 | ||||||||
Impairment of goodwill and other long-lived assets | -5,747,000 | -3,100,000 | |||||||||
Operating (loss) income | -153,492,000 | 133,824,000 | -50,742,000 | ||||||||
Other (expense) income: | |||||||||||
Other (expense) income | -328,000 | -153,000 | 155,000 | ||||||||
Foreign exchange gain (loss), net | 0 | 0 | |||||||||
Interest (expense) income, net of capitalized interest | -3,496,000 | 248,000 | 0 | ||||||||
Interest income (expense) from intercompany notes | 3,152,000 | -296,000 | |||||||||
Equity earnings from consolidated subsidiaries | -23,205,000 | 12,485,000 | 0 | ||||||||
Total other expense | -23,877,000 | 12,284,000 | 155,000 | ||||||||
(Loss) income before income taxes and equity earnings | -177,369,000 | 146,108,000 | |||||||||
Income tax benefit (expense) | 53,840,000 | -28,500,000 | |||||||||
Equity in results of affiliates | -2,439,000 | ||||||||||
Net (loss) income | -125,968,000 | 117,608,000 | -50,587,000 | ||||||||
Net income attributable to noncontrolling interest | 0 | 0 | |||||||||
Net (loss) income attributable to Molycorp stockholders | -125,968,000 | 117,608,000 | |||||||||
Other comprehensive income: | |||||||||||
Foreign currency translation adjustments | 0 | 0 | |||||||||
Comprehensive (loss) income | -125,968,000 | 117,608,000 | |||||||||
Comprehensive (loss) income attributable to: | |||||||||||
Molycorp stockholders | -125,968,000 | 117,608,000 | |||||||||
Noncontrolling interest | 0 | ||||||||||
Non-Guarantor Subsidiaries | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Revenues | 415,165,000 | 100,398,000 | |||||||||
Costs of sales: | |||||||||||
Costs excluding depreciation and amortization | -352,706,000 | -74,457,000 | |||||||||
Depreciation and amortization | -18,816,000 | -4,128,000 | |||||||||
Gross profit | 43,643,000 | 21,813,000 | |||||||||
Operating expenses: | |||||||||||
Selling, general and administrative | -27,222,000 | -2,454,000 | |||||||||
Corporate development | 0 | 0 | |||||||||
Depreciation, amortization and accretion | -19,995,000 | -310,000 | |||||||||
Research and development | -14,812,000 | 0 | |||||||||
Impairment of goodwill and other long-lived assets | -296,008,000 | ||||||||||
Operating (loss) income | -314,394,000 | 19,049,000 | |||||||||
Other (expense) income: | |||||||||||
Other (expense) income | -881,000 | 0 | |||||||||
Foreign exchange gain (loss), net | 2,872,000 | -5,415,000 | |||||||||
Interest (expense) income, net of capitalized interest | -502,000 | -137,000 | |||||||||
Interest income (expense) from intercompany notes | -28,309,000 | -128,000 | |||||||||
Equity earnings from consolidated subsidiaries | 0 | 0 | |||||||||
Total other expense | -26,820,000 | -5,680,000 | |||||||||
(Loss) income before income taxes and equity earnings | -341,214,000 | 13,369,000 | |||||||||
Income tax benefit (expense) | -5,795,000 | -76,000 | |||||||||
Equity in results of affiliates | -1,051,000 | ||||||||||
Net (loss) income | -348,060,000 | 13,293,000 | |||||||||
Net income attributable to noncontrolling interest | -5,826,000 | -808,000 | |||||||||
Net (loss) income attributable to Molycorp stockholders | -353,886,000 | 12,485,000 | |||||||||
Other comprehensive income: | |||||||||||
Foreign currency translation adjustments | -952,000 | -8,481,000 | |||||||||
Comprehensive (loss) income | -349,012,000 | 4,812,000 | |||||||||
Comprehensive (loss) income attributable to: | |||||||||||
Molycorp stockholders | -343,186,000 | 4,427,000 | |||||||||
Noncontrolling interest | -5,826,000 | 385,000 | |||||||||
Eliminations | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Revenues | -25,512,000 | -69,057,000 | 0 | ||||||||
Costs of sales: | |||||||||||
Costs excluding depreciation and amortization | 25,512,000 | 69,057,000 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Gross profit | 0 | 0 | 0 | ||||||||
Operating expenses: | |||||||||||
Selling, general and administrative | 0 | 0 | 0 | ||||||||
Corporate development | 0 | 0 | |||||||||
Depreciation, amortization and accretion | 0 | 0 | 0 | ||||||||
Research and development | 0 | 0 | 0 | ||||||||
Impairment of goodwill and other long-lived assets | 0 | 0 | |||||||||
Operating (loss) income | 0 | 0 | 0 | ||||||||
Other (expense) income: | |||||||||||
Other (expense) income | 0 | 0 | 0 | ||||||||
Foreign exchange gain (loss), net | 0 | 0 | |||||||||
Interest (expense) income, net of capitalized interest | 0 | 0 | 0 | ||||||||
Interest income (expense) from intercompany notes | 0 | 0 | |||||||||
Equity earnings from consolidated subsidiaries | 479,854,000 | -130,093,000 | 50,587,000 | ||||||||
Total other expense | 479,854,000 | -130,093,000 | 50,587,000 | ||||||||
(Loss) income before income taxes and equity earnings | 479,854,000 | -130,093,000 | |||||||||
Income tax benefit (expense) | 0 | ||||||||||
Net (loss) income | 479,854,000 | -130,093,000 | 50,587,000 | ||||||||
Net income attributable to noncontrolling interest | 0 | 0 | |||||||||
Net (loss) income attributable to Molycorp stockholders | 479,854,000 | -130,093,000 | |||||||||
Other comprehensive income: | |||||||||||
Foreign currency translation adjustments | 0 | ||||||||||
Comprehensive (loss) income | 479,854,000 | -130,093,000 | |||||||||
Comprehensive (loss) income attributable to: | |||||||||||
Molycorp stockholders | 479,854,000 | -130,093,000 | |||||||||
Noncontrolling interest | $0 |
Condensed_Consolidating_Statem1
Condensed Consolidating Statements of Cash Flows (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | ($89,635) | $42,965 | ($28,717) |
Cash flows from investing activities: | |||
Cash paid in connection with acquisitions, net of cash acquired | -591,011 | -30,023 | 0 |
Cash paid to acquire non-marketable securities | 0 | -20,000 | 0 |
Loans to subsidiaries | 0 | 0 | |
Loans to Parent | 0 | ||
Intercompany advances made | 0 | 0 | 0 |
Repayments from subsidiaries | 0 | ||
Investment in subsidiaries | 0 | 0 | |
Notes receivable to non-guarantor | 0 | ||
Repayments of notes receivable from non-guarantor | 0 | ||
Investment in joint ventures | -33,044 | 0 | 0 |
Deposits | -3,999 | 2,897 | -26,200 |
Capital expenditures | -791,469 | -302,180 | -33,129 |
Acquisition of exploration rights | -8,167 | 0 | 0 |
Other investing activities | 4,761 | -84 | -102 |
Net cash used in investing activities | -1,422,929 | -349,390 | -59,431 |
Cash flows from financing activities: | |||
Capital contributions | 390,093 | 0 | 15,000 |
Capital contributions from parent company | 0 | 0 | |
Repayments of short-term borrowings—related party | 0 | -3,150 | -1,107 |
Net proceeds from sale of common stock in conjunction with initial public offering | 378,633 | ||
Repayments of debt | -228,708 | -4,428 | 0 |
Net proceeds from sale of preferred stock | 0 | 199,642 | 0 |
Net proceeds from sale of common stock | 132,130 | 0 | 378,633 |
Issuance of 10% Senior Secured Notes | 635,373 | 0 | 0 |
Issuance of Convertible Notes | 395,712 | 223,100 | |
Proceeds from short-term borrowings—related party | 5,008 | ||
Payments of preferred dividends | -11,385 | -9,015 | 0 |
Dividend paid to noncontrolling interests | -5,977 | 0 | 0 |
Proceeds from debt | 14,699 | 5,131 | 0 |
Borrowings from parent | 0 | 0 | |
Repayments of borrowings to parent | 0 | ||
Borrowing from guarantor | 0 | ||
Repayments of borrowings to guarantor | 0 | ||
Intercompany advances owed | 0 | 0 | 0 |
Other financing activities | -1,554 | 0 | 115 |
Net cash provided by financing activities | 1,320,383 | 411,280 | 397,649 |
Effect of exchange rate changes on cash | 1,116 | -2,430 | 0 |
Net change in cash and cash equivalents | -191,065 | 102,425 | 309,501 |
Cash and cash equivalents at beginning of the period | 418,855 | 316,430 | 6,929 |
Cash and cash equivalents at end of period | 227,790 | 418,855 | 316,430 |
Parent | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | -13,207 | 903 | -187 |
Cash flows from investing activities: | |||
Cash paid in connection with acquisitions, net of cash acquired | 0 | 0 | |
Cash paid to acquire non-marketable securities | 0 | ||
Loans to subsidiaries | -683,063 | -49,430 | |
Loans to Parent | 0 | ||
Intercompany advances made | -1,009,014 | -290,633 | -43,931 |
Repayments from subsidiaries | 87,824 | ||
Investment in subsidiaries | -350,000 | -15,000 | |
Notes receivable to non-guarantor | 0 | ||
Repayments of notes receivable from non-guarantor | 0 | ||
Investment in joint ventures | 0 | ||
Deposits | 0 | 16,449 | -18,200 |
Capital expenditures | 0 | 0 | 0 |
Acquisition of exploration rights | 0 | ||
Other investing activities | 0 | 0 | 0 |
Net cash used in investing activities | -1,954,253 | -323,614 | -77,131 |
Cash flows from financing activities: | |||
Capital contributions | 390,093 | 15,000 | |
Capital contributions from parent company | 0 | 0 | |
Repayments of short-term borrowings—related party | 0 | 0 | |
Net proceeds from sale of common stock in conjunction with initial public offering | 378,633 | ||
Repayments of debt | 0 | ||
Net proceeds from sale of preferred stock | 199,642 | ||
Net proceeds from sale of common stock | 132,130 | ||
Issuance of 10% Senior Secured Notes | 635,373 | ||
Issuance of Convertible Notes | 395,712 | 223,100 | |
Proceeds from short-term borrowings—related party | 0 | ||
Payments of preferred dividends | -11,385 | -9,015 | |
Dividend paid to noncontrolling interests | |||
Proceeds from debt | 0 | 0 | |
Borrowings from parent | 0 | 0 | |
Repayments of borrowings to parent | 0 | ||
Borrowing from guarantor | 37,589 | ||
Repayments of borrowings to guarantor | 0 | ||
Intercompany advances owed | 0 | 0 | 0 |
Other financing activities | -2,938 | 115 | |
Net cash provided by financing activities | 1,576,574 | 413,727 | 393,748 |
Effect of exchange rate changes on cash | 0 | 0 | |
Net change in cash and cash equivalents | -390,886 | 91,016 | 316,430 |
Cash and cash equivalents at beginning of the period | 407,446 | 316,430 | 0 |
Cash and cash equivalents at end of period | 16,560 | 407,446 | 316,430 |
Guarantor Subsidiaries | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | -112,386 | 44,211 | -28,530 |
Cash flows from investing activities: | |||
Cash paid in connection with acquisitions, net of cash acquired | 0 | -30,128 | |
Cash paid to acquire non-marketable securities | -20,000 | ||
Loans to subsidiaries | 0 | 0 | |
Loans to Parent | -37,589 | ||
Intercompany advances made | 0 | 0 | 0 |
Repayments from subsidiaries | 0 | ||
Investment in subsidiaries | 0 | 0 | |
Notes receivable to non-guarantor | -227,512 | ||
Repayments of notes receivable from non-guarantor | 110,000 | ||
Investment in joint ventures | -27,680 | ||
Deposits | -3,999 | -13,552 | -8,000 |
Capital expenditures | -766,951 | -294,010 | -33,129 |
Acquisition of exploration rights | 0 | ||
Other investing activities | 0 | 16 | -102 |
Net cash used in investing activities | -953,731 | -357,674 | -41,231 |
Cash flows from financing activities: | |||
Capital contributions | 0 | 0 | |
Capital contributions from parent company | 0 | 15,000 | |
Repayments of short-term borrowings—related party | -3,150 | -1,107 | |
Net proceeds from sale of common stock in conjunction with initial public offering | 0 | ||
Repayments of debt | -870 | 0 | |
Net proceeds from sale of preferred stock | 0 | ||
Net proceeds from sale of common stock | 0 | ||
Issuance of 10% Senior Secured Notes | 0 | ||
Issuance of Convertible Notes | 0 | 0 | |
Proceeds from short-term borrowings—related party | 5,008 | ||
Payments of preferred dividends | 0 | 0 | |
Dividend paid to noncontrolling interests | 0 | ||
Proceeds from debt | 0 | 0 | |
Borrowings from parent | 227,512 | 37,370 | |
Repayments of borrowings to parent | -34,327 | ||
Borrowing from guarantor | 0 | ||
Repayments of borrowings to guarantor | 0 | ||
Intercompany advances owed | 881,179 | 290,001 | 43,931 |
Other financing activities | -115 | 0 | |
Net cash provided by financing activities | 1,073,379 | 324,221 | 62,832 |
Effect of exchange rate changes on cash | 0 | 0 | |
Net change in cash and cash equivalents | 7,262 | 10,758 | -6,929 |
Cash and cash equivalents at beginning of the period | 10,758 | 0 | 6,929 |
Cash and cash equivalents at end of period | 18,020 | 10,758 | 0 |
Non-Guarantor Subsidiaries | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | 35,958 | -2,149 | |
Cash flows from investing activities: | |||
Cash paid in connection with acquisitions, net of cash acquired | -591,011 | 105 | |
Cash paid to acquire non-marketable securities | 0 | ||
Loans to subsidiaries | 0 | 0 | |
Loans to Parent | 0 | ||
Intercompany advances made | 0 | 0 | |
Repayments from subsidiaries | 0 | ||
Investment in subsidiaries | 0 | ||
Notes receivable to non-guarantor | 0 | ||
Repayments of notes receivable from non-guarantor | 0 | ||
Investment in joint ventures | -5,364 | ||
Deposits | 0 | 0 | |
Capital expenditures | -24,518 | -8,170 | |
Acquisition of exploration rights | -8,167 | ||
Other investing activities | 4,761 | -100 | |
Net cash used in investing activities | -624,299 | -8,165 | 0 |
Cash flows from financing activities: | |||
Capital contributions | 0 | ||
Capital contributions from parent company | 350,000 | ||
Repayments of short-term borrowings—related party | 0 | ||
Repayments of debt | -227,838 | -4,428 | |
Net proceeds from sale of preferred stock | 0 | ||
Net proceeds from sale of common stock | 0 | ||
Issuance of 10% Senior Secured Notes | 0 | ||
Issuance of Convertible Notes | 0 | 0 | |
Payments of preferred dividends | 0 | 0 | |
Dividend paid to noncontrolling interests | -5,977 | ||
Proceeds from debt | 14,699 | 5,131 | |
Borrowings from parent | 455,551 | 12,060 | |
Repayments of borrowings to parent | -53,497 | ||
Borrowing from guarantor | 227,512 | ||
Repayments of borrowings to guarantor | -110,000 | ||
Intercompany advances owed | 127,835 | 632 | |
Other financing activities | 1,499 | ||
Net cash provided by financing activities | 779,784 | 13,395 | 0 |
Effect of exchange rate changes on cash | 1,116 | -2,430 | |
Net change in cash and cash equivalents | 192,559 | 651 | |
Cash and cash equivalents at beginning of the period | 651 | 0 | |
Cash and cash equivalents at end of period | 193,210 | 651 | 0 |
Eliminations | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | 0 | 0 | 0 |
Cash flows from investing activities: | |||
Cash paid in connection with acquisitions, net of cash acquired | 0 | 0 | |
Cash paid to acquire non-marketable securities | 0 | ||
Loans to subsidiaries | 683,063 | 49,430 | |
Loans to Parent | 37,589 | ||
Intercompany advances made | 1,009,014 | 290,633 | 43,931 |
Repayments from subsidiaries | -87,824 | ||
Investment in subsidiaries | 350,000 | 15,000 | |
Notes receivable to non-guarantor | 227,512 | ||
Repayments of notes receivable from non-guarantor | -110,000 | ||
Investment in joint ventures | 0 | ||
Deposits | 0 | 0 | 0 |
Capital expenditures | 0 | 0 | 0 |
Acquisition of exploration rights | 0 | ||
Other investing activities | 0 | 0 | 0 |
Net cash used in investing activities | 2,109,354 | 340,063 | 58,931 |
Cash flows from financing activities: | |||
Capital contributions | 0 | 0 | |
Capital contributions from parent company | -350,000 | -15,000 | |
Repayments of short-term borrowings—related party | 0 | 0 | |
Net proceeds from sale of common stock in conjunction with initial public offering | 0 | ||
Repayments of debt | 0 | 0 | |
Net proceeds from sale of preferred stock | 0 | ||
Net proceeds from sale of common stock | 0 | ||
Issuance of 10% Senior Secured Notes | 0 | ||
Issuance of Convertible Notes | 0 | 0 | |
Proceeds from short-term borrowings—related party | 0 | ||
Payments of preferred dividends | 0 | 0 | |
Dividend paid to noncontrolling interests | 0 | ||
Proceeds from debt | 0 | 0 | |
Borrowings from parent | -683,063 | -49,430 | |
Repayments of borrowings to parent | 87,824 | ||
Borrowing from guarantor | -265,101 | ||
Repayments of borrowings to guarantor | 110,000 | ||
Intercompany advances owed | -1,009,014 | -290,633 | -43,931 |
Other financing activities | 0 | 0 | |
Net cash provided by financing activities | -2,109,354 | -340,063 | -58,931 |
Effect of exchange rate changes on cash | 0 | 0 | |
Net change in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of the period | 0 | 0 | 0 |
Cash and cash equivalents at end of period | $0 | $0 | $0 |
Schedule_of_Restated_Financial
Schedule of Restated Financial Statements (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | |
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Other expense | ($38,798,000) | ($153,000) | $155,000 | |||||||||
Realized loss on settlement of derivative forward contracts | 37,600,000 | 6,700,000 | ||||||||||
Intercompany advances made | 0 | 0 | 0 | |||||||||
Payments for (Proceeds from) Notes Receivable from Guarantor | 0 | |||||||||||
Net cash used in investing activities | -1,422,929,000 | -349,390,000 | -59,431,000 | |||||||||
Intercompany advances owed | 0 | 0 | 0 | |||||||||
Loans to Parent | 0 | |||||||||||
Net cash provided by financing activities | 1,320,383,000 | 411,280,000 | 397,649,000 | |||||||||
Income tax benefit (expense) | 54,075,000 | -28,576,000 | 0 | |||||||||
Equity Earnings from Consolidated Subsidiaries | 0 | 0 | 0 | |||||||||
Net (loss) income | -389,490,000 | -15,451,000 | -66,924,000 | -3,478,000 | 26,674,000 | 45,101,000 | 48,755,000 | -2,198,000 | -475,343,000 | 118,334,000 | -50,774,000 | |
Net cash (used in) provided by operating activities | -89,635,000 | 42,965,000 | -28,717,000 | |||||||||
Deferred tax assets | 0 | 0 | ||||||||||
Investments in consolidated subsidiaries | 0 | 0 | 0 | 0 | ||||||||
Intercompany accounts receivable | 0 | 0 | 0 | 0 | ||||||||
Total assets | 2,992,535,000 | 1,255,125,000 | 2,992,535,000 | 1,255,125,000 | ||||||||
Income tax payable | 15,267,000 | 0 | 15,267,000 | 0 | ||||||||
Total current liabilities | 359,417,000 | 178,623,000 | 359,417,000 | 178,623,000 | ||||||||
Deferred tax liabilities (non-current) | 160,675,000 | 18,899,000 | 160,675,000 | 18,899,000 | ||||||||
Total liabilities | 1,741,277,000 | 409,895,000 | 1,741,277,000 | 409,895,000 | ||||||||
Additional paid-in capital | 1,691,429,000 | 838,547,000 | 1,691,429,000 | 838,547,000 | ||||||||
Deficit | -466,091,000 | 15,078,000 | -466,091,000 | 15,078,000 | ||||||||
Total stockholders' equity | 1,251,258,000 | 845,230,000 | 1,251,258,000 | 845,230,000 | 446,513,000 | 74,615,000 | ||||||
Parent | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Other expense | -37,589,000 | 0 | 0 | |||||||||
Intercompany advances made | -1,009,014,000 | -290,633,000 | -43,931,000 | |||||||||
Payments for (Proceeds from) Notes Receivable from Guarantor | -37,589,000 | |||||||||||
Net cash used in investing activities | -1,954,253,000 | -323,614,000 | -77,131,000 | |||||||||
Intercompany advances owed | 0 | 0 | 0 | |||||||||
Loans to Parent | 0 | |||||||||||
Net cash provided by financing activities | 1,576,574,000 | 413,727,000 | 393,748,000 | |||||||||
Income tax benefit (expense) | 6,030,000 | 0 | ||||||||||
Equity Earnings from Consolidated Subsidiaries | -456,649,000 | 117,608,000 | -50,587,000 | |||||||||
Net (loss) income | -481,169,000 | 117,526,000 | -50,774,000 | |||||||||
Net cash (used in) provided by operating activities | -13,207,000 | 903,000 | -187,000 | |||||||||
Deferred tax assets | 6,030,000 | 6,030,000 | ||||||||||
Investments in consolidated subsidiaries | 883,319,000 | 150,510,000 | 883,319,000 | 150,510,000 | ||||||||
Intercompany accounts receivable | 1,539,877,000 | 476,711,000 | 1,539,877,000 | 476,711,000 | ||||||||
Total assets | 2,447,538,000 | 1,036,418,000 | 2,447,538,000 | 1,036,418,000 | ||||||||
Income tax payable | 0 | 0 | ||||||||||
Total current liabilities | 14,872,000 | 311,000 | 14,872,000 | 311,000 | ||||||||
Deferred tax liabilities (non-current) | 0 | 0 | 0 | 0 | ||||||||
Total liabilities | 1,231,492,000 | 191,188,000 | 1,231,492,000 | 191,188,000 | ||||||||
Additional paid-in capital | 1,691,429,000 | 838,547,000 | 1,691,429,000 | 838,547,000 | ||||||||
Deficit | -466,091,000 | 15,078,000 | -466,091,000 | 15,078,000 | ||||||||
Total stockholders' equity | 1,216,046,000 | 845,230,000 | 1,216,046,000 | 845,230,000 | ||||||||
Guarantor Subsidiaries | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Other expense | -328,000 | -153,000 | 155,000 | |||||||||
Intercompany advances made | 0 | 0 | 0 | |||||||||
Payments for (Proceeds from) Notes Receivable from Guarantor | 0 | |||||||||||
Net cash used in investing activities | -953,731,000 | -357,674,000 | -41,231,000 | |||||||||
Intercompany advances owed | 881,179,000 | 290,001,000 | 43,931,000 | |||||||||
Loans to Parent | -37,589,000 | |||||||||||
Net cash provided by financing activities | 1,073,379,000 | 324,221,000 | 62,832,000 | |||||||||
Income tax benefit (expense) | 53,840,000 | -28,500,000 | ||||||||||
Equity Earnings from Consolidated Subsidiaries | -23,205,000 | 12,485,000 | 0 | |||||||||
Net (loss) income | -125,968,000 | 117,608,000 | -50,587,000 | |||||||||
Net cash (used in) provided by operating activities | -112,386,000 | 44,211,000 | -28,530,000 | |||||||||
Deferred tax assets | 0 | 0 | ||||||||||
Investments in consolidated subsidiaries | 97,960,000 | 118,879,000 | 97,960,000 | 118,879,000 | ||||||||
Intercompany accounts receivable | 207,035,000 | 25,870,000 | 207,035,000 | 25,870,000 | ||||||||
Total assets | 1,891,283,000 | 851,236,000 | 1,891,283,000 | 851,236,000 | ||||||||
Income tax payable | 0 | 0 | ||||||||||
Total current liabilities | 207,689,000 | 153,102,000 | 207,689,000 | 153,102,000 | ||||||||
Deferred tax liabilities (non-current) | 23,130,000 | 18,899,000 | 23,130,000 | 18,899,000 | ||||||||
Total liabilities | 1,843,033,000 | 677,009,000 | 1,843,033,000 | 677,009,000 | ||||||||
Additional paid-in capital | 149,857,000 | 149,857,000 | 149,857,000 | 149,857,000 | ||||||||
Deficit | -101,607,000 | 24,370,000 | -101,607,000 | 24,370,000 | ||||||||
Total stockholders' equity | 48,250,000 | 174,227,000 | 48,250,000 | 174,227,000 | ||||||||
Non-Guarantor Subsidiaries | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Other expense | -881,000 | 0 | ||||||||||
Intercompany advances made | 0 | 0 | ||||||||||
Payments for (Proceeds from) Notes Receivable from Guarantor | -227,512,000 | |||||||||||
Net cash used in investing activities | -624,299,000 | -8,165,000 | 0 | |||||||||
Intercompany advances owed | 127,835,000 | 632,000 | ||||||||||
Loans to Parent | 0 | |||||||||||
Net cash provided by financing activities | 779,784,000 | 13,395,000 | 0 | |||||||||
Income tax benefit (expense) | -5,795,000 | -76,000 | ||||||||||
Equity Earnings from Consolidated Subsidiaries | 0 | 0 | ||||||||||
Net (loss) income | -348,060,000 | 13,293,000 | ||||||||||
Net cash (used in) provided by operating activities | 35,958,000 | -2,149,000 | ||||||||||
Deferred tax assets | 0 | 0 | ||||||||||
Investments in consolidated subsidiaries | 0 | 0 | 0 | 0 | ||||||||
Intercompany accounts receivable | 794,000 | 0 | 794,000 | 0 | ||||||||
Total assets | 1,390,671,000 | 139,441,000 | 1,390,671,000 | 139,441,000 | ||||||||
Income tax payable | 15,267,000 | 15,267,000 | ||||||||||
Total current liabilities | 138,798,000 | 25,210,000 | 138,798,000 | 25,210,000 | ||||||||
Deferred tax liabilities (non-current) | 143,575,000 | 0 | 143,575,000 | 0 | ||||||||
Total liabilities | 422,430,000 | 44,279,000 | 422,430,000 | 44,279,000 | ||||||||
Additional paid-in capital | 1,283,863,000 | 91,158,000 | 1,283,863,000 | 91,158,000 | ||||||||
Deficit | -341,401,000 | 12,485,000 | -341,401,000 | 12,485,000 | ||||||||
Total stockholders' equity | 968,241,000 | 95,162,000 | 968,241,000 | 95,162,000 | ||||||||
As reported | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Net (loss) income | -443,728,000 | |||||||||||
Deferred tax assets | 1,083,000 | 1,083,000 | ||||||||||
Total assets | 2,994,708,000 | 2,994,708,000 | ||||||||||
Deferred tax liabilities (non-current) | 166,215,000 | 166,215,000 | ||||||||||
Additional paid-in capital | 1,680,838,000 | 1,680,838,000 | ||||||||||
Deficit | -434,476,000 | -434,476,000 | ||||||||||
Total stockholders' equity | 1,247,891,000 | 1,247,891,000 | ||||||||||
As reported | Parent | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Other expense | 0 | |||||||||||
Payments for (Proceeds from) Notes Receivable from Guarantor | 0 | |||||||||||
Net cash provided by financing activities | 1,538,985,000 | |||||||||||
Income tax benefit (expense) | -8,630,000 | |||||||||||
Equity Earnings from Consolidated Subsidiaries | -447,963,000 | |||||||||||
Net (loss) income | -449,554,000 | |||||||||||
Net cash (used in) provided by operating activities | 24,382,000 | |||||||||||
Deferred tax assets | 0 | 0 | ||||||||||
Investments in consolidated subsidiaries | 891,625,000 | 891,625,000 | ||||||||||
Intercompany accounts receivable | 1,567,255,000 | 1,567,255,000 | ||||||||||
Total assets | 2,477,192,000 | 2,477,192,000 | ||||||||||
Income tax payable | 2,746,000 | 2,746,000 | ||||||||||
Total current liabilities | 17,618,000 | 17,618,000 | ||||||||||
Deferred tax liabilities (non-current) | 5,884,000 | 5,884,000 | ||||||||||
Total liabilities | 1,240,122,000 | 1,240,122,000 | ||||||||||
Additional paid-in capital | 1,680,838,000 | 1,680,838,000 | ||||||||||
Deficit | -434,476,000 | -434,476,000 | ||||||||||
Total stockholders' equity | 1,237,070,000 | 1,237,070,000 | ||||||||||
As reported | Guarantor Subsidiaries | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Other expense | -37,917,000 | |||||||||||
Intercompany advances made | 290,001,000 | 43,931,000 | ||||||||||
Net cash used in investing activities | -916,142,000 | -67,673,000 | 2,700,000 | |||||||||
Intercompany advances owed | 0 | 0 | ||||||||||
Loans to Parent | 0 | |||||||||||
Net cash provided by financing activities | 34,220,000 | 18,901,000 | ||||||||||
Income tax benefit (expense) | 68,500,000 | |||||||||||
Net (loss) income | -148,897,000 | |||||||||||
Net cash (used in) provided by operating activities | -149,975,000 | |||||||||||
Intercompany accounts receivable | 169,446,000 | 169,446,000 | ||||||||||
Total assets | 1,853,694,000 | 1,853,694,000 | ||||||||||
Deferred tax liabilities (non-current) | 8,470,000 | 8,470,000 | ||||||||||
Total liabilities | 1,828,373,000 | 1,828,373,000 | ||||||||||
Deficit | -124,536,000 | -124,536,000 | ||||||||||
Total stockholders' equity | 25,321,000 | 25,321,000 | ||||||||||
As reported | Non-Guarantor Subsidiaries | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Intercompany advances made | 632,000 | |||||||||||
Net cash used in investing activities | -7,533,000 | 0 | ||||||||||
Intercompany advances owed | 0 | |||||||||||
Net cash provided by financing activities | 12,763,000 | 0 | ||||||||||
Adjustment | Parent | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Other expense | -37,589,000 | |||||||||||
Payments for (Proceeds from) Notes Receivable from Guarantor | -37,589,000 | |||||||||||
Net cash provided by financing activities | 37,589,000 | |||||||||||
Income tax benefit (expense) | 14,660,000 | |||||||||||
Equity Earnings from Consolidated Subsidiaries | -8,686,000 | |||||||||||
Net (loss) income | -31,615,000 | |||||||||||
Net cash (used in) provided by operating activities | -37,589,000 | |||||||||||
Deferred tax assets | 6,030,000 | 6,030,000 | ||||||||||
Investments in consolidated subsidiaries | -8,306,000 | -8,306,000 | ||||||||||
Intercompany accounts receivable | -27,378,000 | -27,378,000 | ||||||||||
Total assets | -29,654,000 | -29,654,000 | ||||||||||
Income tax payable | -2,746,000 | -2,746,000 | ||||||||||
Total current liabilities | -2,746,000 | -2,746,000 | ||||||||||
Deferred tax liabilities (non-current) | -5,884,000 | -5,884,000 | ||||||||||
Total liabilities | -8,630,000 | -8,630,000 | ||||||||||
Additional paid-in capital | 10,591,000 | 10,591,000 | ||||||||||
Deficit | -31,615,000 | -31,615,000 | ||||||||||
Total stockholders' equity | -21,024,000 | -21,024,000 | ||||||||||
Adjustment | Guarantor Subsidiaries | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Other expense | 37,589,000 | |||||||||||
Intercompany advances made | -290,001,000 | -43,931,000 | ||||||||||
Net cash used in investing activities | -37,589,000 | -290,001,000 | -43,931,000 | |||||||||
Intercompany advances owed | 290,001,000 | 43,931,000 | ||||||||||
Loans to Parent | 37,589,000 | |||||||||||
Net cash provided by financing activities | 290,001,000 | 43,931,000 | ||||||||||
Income tax benefit (expense) | -14,660,000 | |||||||||||
Net (loss) income | 22,929,000 | |||||||||||
Net cash (used in) provided by operating activities | 37,589,000 | |||||||||||
Intercompany accounts receivable | 37,589,000 | 37,589,000 | ||||||||||
Total assets | 37,589,000 | 37,589,000 | ||||||||||
Deferred tax liabilities (non-current) | 14,660,000 | 14,660,000 | ||||||||||
Total liabilities | 14,660,000 | 14,660,000 | ||||||||||
Deficit | 22,929,000 | 22,929,000 | ||||||||||
Total stockholders' equity | 22,929,000 | 22,929,000 | ||||||||||
Adjustment | Non-Guarantor Subsidiaries | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Intercompany advances made | -632,000 | |||||||||||
Net cash used in investing activities | -632,000 | 0 | ||||||||||
Intercompany advances owed | 632,000 | |||||||||||
Net cash provided by financing activities | $632,000 | $0 |
Unaudited_Supplementary_Data_D
Unaudited Supplementary Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | ||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
Revenues | $134,259 | $205,604 | $104,577 | $84,470 | $132,905 | $138,050 | $99,615 | $26,261 | $528,910 | $396,831 | $35,157 | ||||||||
Gross profit | -20,473 | 10,864 | -4,073 | 31,027 | 70,272 | 82,392 | 56,692 | 9,584 | 17,345 | 218,941 | 666 | ||||||||
(Loss) income before income taxes and equity earnings | -382,779 | -43,745 | -93,970 | -5,434 | 42,607 | 64,157 | 42,143 | -1,999 | -525,928 | 146,910 | -50,774 | ||||||||
Net (loss) income | -389,490 | -15,451 | -66,924 | -3,478 | 26,674 | 45,101 | 48,755 | -2,198 | -475,343 | 118,334 | -50,774 | ||||||||
Net (loss) income attributable to Molycorp stockholders | ($391,196) | ($18,891) | ($67,604) | ($3,478) | $26,579 | $45,356 | $47,787 | ($2,198) | ($481,169) | $117,526 | ($50,774) | ||||||||
(Loss) income per share of common stock: | |||||||||||||||||||
Basic (in dollars per share) | ($3.16) | [1] | ($0.19) | [1] | ($0.71) | [1] | ($0.07) | [1] | $0.27 | [1] | $0.51 | [1] | $0.54 | [1] | ($0.04) | [1] | ($4.60) | $1.29 | ($0.81) |
Diluted (in dollars per share) | ($3.16) | [1] | ($0.19) | [1] | ($0.71) | [1] | ($0.07) | [1] | $0.26 | [1] | $0.49 | [1] | $0.53 | [1] | ($0.04) | [1] | ($4.60) | $1.27 | ($0.81) |
[1] | The sum of the quarterly income (loss) per share may be different than the per share amount for the year as the calculation for each quarter is based on the weighted average shares outstanding for that period. |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | ||||
Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Jan. 30, 2013 | Feb. 28, 2013 | Jan. 30, 2013 | Jan. 30, 2013 | Jan. 30, 2013 | |
Subsequent Event | Subsequent Event | 5.50% Convertible Senior Notes due 2018 | Officers, Directors and Other Related Parties | Officers, Directors and Other Related Parties | ||||
Convertible Debt | Subsequent Event | 5.50% Convertible Senior Notes due 2018 | ||||||
Subsequent Event | Convertible Debt | |||||||
Subsequent Event | ||||||||
Subsequent Events | ||||||||
Stock issued during the period, shares | 37,500,000 | |||||||
Offering price per share | $6 | |||||||
Debt instrument, face amount | $150,000,000 | |||||||
Interest rate | 5.50% | |||||||
Underwriter option to purchase additional shares, time period | 30 days | |||||||
Underwriters Option to purchase within 30 days | 5,625,000 | |||||||
Offering price per share, underwriters | $6 | |||||||
Underwriter option to purchase additional principal | 22,500,000 | |||||||
Underwriter fees | 6.00% | |||||||
Shares purchased by related parties | 15,016,666 | |||||||
Proceeds from issuance of long-term debt from related parties | 20,500,000 | |||||||
Proceeds from issuance of long-term debt | 165,600,000 | |||||||
Net proceeds from sale of common stock | $132,130,000 | $0 | $378,633,000 | $248,600,000 | ||||
Convertible conversion ratio | 138.8889 | |||||||
Convertible ratio, price per share | $7.20 | |||||||
Percentage of last reported sale price of Molycorp common stock over conversion price on or after September 1, 2016 giving right to the Notes redemption | 130.00% | |||||||
Trading days during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which Molycorp provides notice of redemption | 20 days | |||||||
Consecutive trading day period ending on, and including, the trading day immediately preceding the date on which Molycorp provides notice of redemption | 30 days | |||||||
Number of borrowed shares | 7,666,666 | |||||||
Number of borrowed shares offered in registered public offering | 6,333,333 | |||||||
Number of borrowed shares offered in registered public offering, price per share | $6 | |||||||
Cash dividend declared (in dollars per share) | $1.38 |