Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 04, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Molycorp, Inc. | ' |
Entity Central Index Key | '0001489137 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 244,774,819 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $313,477 | $314,317 |
Trade accounts receivable, net | 53,229 | 61,757 |
Inventory (Note 4) | 166,936 | 171,783 |
Prepaid expenses and other current assets | 27,175 | 29,210 |
Total current assets | 560,817 | 577,067 |
Non-current assets: | ' | ' |
Deposits | 29,999 | 25,997 |
Property, plant and equipment, net (Note 5) | 1,736,872 | 1,762,874 |
Inventory (Note 4) | 25,530 | 25,329 |
Intangible assets, net | 312,878 | 330,867 |
Investments | 32,210 | 48,875 |
Goodwill | 228,750 | 228,750 |
Other non-current assets | 34,203 | 7,043 |
Total non-current assets | 2,400,442 | 2,429,735 |
Total assets | 2,961,259 | 3,006,802 |
Current liabilities: | ' | ' |
Trade accounts payable | 58,272 | 84,449 |
Accrued expenses | 66,727 | 48,501 |
Debt and capital lease obligations (Note 6) | 12,769 | 16,362 |
Other current liabilities | 6,922 | 4,063 |
Total current liabilities | 144,690 | 153,375 |
Non-current liabilities: | ' | ' |
Asset retirement obligation | 16,681 | 16,966 |
Deferred tax liabilities | 75,162 | 85,481 |
Debt and capital lease obligations (Note 6) | 1,582,802 | 1,363,916 |
Other non-current liabilities | 14,286 | 10,002 |
Total non-current liabilities | 1,688,931 | 1,476,365 |
Total liabilities | 1,833,621 | 1,629,740 |
Commitments and contingencies (Note 11) | ' | ' |
Stockholders’ equity: | ' | ' |
Common stock, $0.001 par value; 700,000,000 shares authorized at September 30, 2014 and 350,000,000 at December 31, 2013 (Note 8) | 245 | 241 |
Preferred stock, $0.001 par value; 5,000,000 shares authorized at December 31, 2013 | 0 | 2 |
Additional paid-in capital | 2,232,390 | 2,194,405 |
Accumulated other comprehensive loss | -15,704 | -6,451 |
Accumulated deficit | -1,115,614 | -840,474 |
Total Molycorp stockholders’ equity | 1,101,317 | 1,347,723 |
Noncontrolling interests | 26,321 | 29,339 |
Total stockholders’ equity | 1,127,638 | 1,377,062 |
Total liabilities and stockholders’ equity | $2,961,259 | $3,006,802 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Common stock, par value | $0.00 | $0.00 |
Common stock, authorized | 700,000,000 | 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 Loss (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Revenues | $123,937 | $149,066 | $359,369 | $430,580 |
Costs of sales: | ' | ' | ' | ' |
Costs excluding depreciation and amortization | -119,633 | -150,444 | -358,506 | -421,699 |
Depreciation and amortization | -19,382 | -16,400 | -55,608 | -49,283 |
Gross loss | -15,078 | -17,778 | -54,745 | -40,402 |
Operating expenses: | ' | ' | ' | ' |
Selling, general and administrative | -21,907 | -24,468 | -60,286 | -76,702 |
Depreciation, amortization and accretion | -8,093 | -10,072 | -22,552 | -26,273 |
Research and development | -4,353 | -5,565 | -11,603 | -18,476 |
Impairment of long-lived assets | 0 | -1,118 | 0 | -1,495 |
Operating loss | -49,431 | -59,001 | -149,186 | -163,348 |
Other (expenses) income: | ' | ' | ' | ' |
Other (expense) income | -2,611 | -891 | -1,839 | 2,474 |
Impairment of investment (Note 17) | -12,000 | 0 | -12,000 | 0 |
Interest expense, net of capitalized interest | -35,442 | -16,289 | -112,367 | -42,807 |
Loss before income taxes and equity earnings | -99,484 | -76,181 | -275,392 | -203,681 |
Income tax (expense) benefit | -3,572 | 12,902 | 5,762 | 38,922 |
Equity in loss of affiliates | -2,092 | -2,334 | -5,368 | -8,690 |
Loss from continuing operations | -105,148 | -65,613 | -274,998 | -173,449 |
Loss from discontinued operations, net of tax | 0 | -4,186 | 0 | -5,190 |
Net loss | -105,148 | -69,799 | -274,998 | -178,639 |
Net income attributable to noncontrolling interests | -31 | -130 | -142 | -1,433 |
Net loss attributable to Molycorp stockholders | -105,179 | -69,929 | -275,140 | -180,072 |
Net loss | -105,148 | -69,799 | -274,998 | -178,639 |
Other comprehensive (loss) income: | ' | ' | ' | ' |
Foreign currency translation adjustments | -8,292 | 4,217 | -9,253 | 1,585 |
Comprehensive loss | -113,440 | -65,582 | -284,251 | -177,054 |
Comprehensive loss attributable to: | ' | ' | ' | ' |
Molycorp stockholders | -113,409 | -65,452 | -284,109 | -175,621 |
Noncontrolling interest | -31 | -130 | -142 | -1,433 |
Comprehensive loss | -113,440 | -65,582 | -284,251 | -177,054 |
Loss per share of common stock (Note 9): | ' | ' | ' | ' |
Net loss attributable to Molycorp stockholders | -105,179 | -69,929 | -275,140 | -180,072 |
Dividends on Convertible Preferred Stock | 0 | -2,846 | -2,846 | -8,539 |
Loss attributable to common stockholders | ($105,179) | ($72,775) | ($277,986) | ($188,611) |
Weighted average common shares outstanding—basic | 224,270,303 | 168,114,266 | 223,300,073 | 163,222,000 |
Basic loss per share: (in dollars per share) | ($0.47) | ($0.43) | ($1.24) | ($1.16) |
Weighted average common shares outstanding—diluted | 224,270,303 | 168,114,266 | 223,300,073 | 163,222,000 |
Diluted loss per share: (in dollars per share) | ($0.47) | ($0.43) | ($1.24) | ($1.16) |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Stockholders' Equity (USD $) | Total | Total Molycorp Stockholders' Equity | Common Stock | Common Stock | Series A Mandatory Convertible Preferred Stock | Series A Mandatory Convertible Preferred Stock | Additional Paid-In Capital | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated deficit | Non controlling interests |
In Thousands, except Share data, unless otherwise specified | Series A Mandatory Convertible Preferred Stock | Series A Mandatory Convertible Preferred Stock | |||||||||
Balance at beginning of period at Dec. 31, 2012 | $1,251,258 | $1,216,046 | $139 | ' | $2 | ' | $1,691,429 | ' | ($9,433) | ($466,091) | $35,212 |
Balance at beginning of period (in shares) at Dec. 31, 2012 | ' | ' | 138,773,538 | ' | 2,070,000 | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation (in shares) | ' | ' | 43,847 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation | 2,399 | 2,399 | 0 | ' | ' | ' | 2,399 | ' | ' | ' | ' |
Component of 5.50% convertible debt | 21,815 | 21,815 | ' | ' | ' | ' | 21,815 | ' | ' | ' | ' |
Deferred taxes on component of convertible debt | -8,508 | -8,508 | ' | ' | ' | ' | -8,508 | ' | ' | ' | ' |
Conversion of shares (in shares) | ' | ' | 2,393 | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion of shares | 49 | 49 | ' | ' | ' | ' | 49 | ' | ' | ' | ' |
Conversion of Exchangeable Shares (in shares) | ' | ' | 12,971 | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of Primary Shares (in shares) | ' | ' | 43,125,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of Primary Shares | 248,140 | 248,140 | 43 | ' | ' | ' | 248,097 | ' | ' | ' | ' |
Issuance of Borrowed Shares (in shares) | ' | ' | 6,666,666 | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of Borrowed Shares | 7 | 7 | 7 | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss | -178,639 | -180,072 | ' | ' | ' | ' | ' | ' | ' | -180,072 | 1,433 |
Preferred dividends | -8,539 | -8,539 | ' | ' | ' | ' | -8,539 | ' | ' | ' | ' |
Distribution to noncontrolling interests | -4,472 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4,472 |
Other comprehensive loss | 1,585 | 1,585 | ' | ' | ' | ' | ' | ' | 1,585 | ' | ' |
Balance at end of period at Sep. 30, 2013 | 1,325,095 | 1,292,922 | 189 | ' | 2 | ' | 1,946,742 | ' | -7,848 | -646,163 | 32,173 |
Balance at end of period (in shares) at Sep. 30, 2013 | ' | ' | 188,624,415 | ' | 2,070,000 | ' | ' | ' | ' | ' | ' |
Balance at beginning of period at Dec. 31, 2013 | 1,377,062 | 1,347,723 | 241 | ' | 2 | ' | 2,194,405 | ' | -6,451 | -840,474 | 29,339 |
Balance at beginning of period (in shares) at Dec. 31, 2013 | ' | ' | 240,380,094 | ' | 2,070,000 | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation (in shares) | ' | ' | 229,664 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation | 3,171 | 3,171 | 0 | ' | ' | ' | 3,171 | ' | ' | ' | ' |
Conversion of shares (in shares) | ' | ' | 3,225 | 4,140,000 | ' | -2,070,000 | ' | ' | ' | ' | ' |
Conversion of shares | 12 | 12 | ' | 4 | ' | -2 | 12 | -2 | ' | ' | ' |
Conversion of Exchangeable Shares (in shares) | ' | ' | 21,313 | ' | ' | ' | ' | ' | ' | ' | ' |
Share-lending arrangements (Note 8) | 15,062 | 15,062 | ' | ' | ' | ' | 15,062 | ' | ' | ' | ' |
Warrants (Note 8) | 23,164 | 23,164 | ' | ' | ' | ' | 23,164 | ' | ' | ' | ' |
Net loss | -274,998 | -275,140 | ' | ' | ' | ' | ' | ' | ' | -275,140 | 142 |
Preferred dividends | -2,846 | -2,846 | ' | ' | ' | ' | -2,846 | ' | ' | ' | ' |
Distribution to noncontrolling interests | -3,170 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3,170 |
Other comprehensive loss | -9,253 | -9,253 | ' | ' | ' | ' | ' | ' | -9,253 | ' | ' |
Other | -566 | -576 | ' | ' | ' | ' | -576 | ' | ' | ' | 10 |
Balance at end of period at Sep. 30, 2014 | $1,127,638 | $1,101,317 | $245 | ' | $0 | ' | $2,232,390 | ' | ($15,704) | ($1,115,614) | $26,321 |
Balance at end of period (in shares) at Sep. 30, 2014 | ' | ' | 244,774,296 | ' | 0 | ' | ' | ' | ' | ' | ' |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net loss | ($274,998) | ($178,639) |
Adjustments to reconcile net loss to net cash from operating activities: | ' | ' |
Depreciation, amortization and accretion | 78,161 | 75,870 |
Deferred income tax benefit | -18,809 | -36,399 |
Inventory write-downs | 51,638 | 74,475 |
Release of inventory step-up value | 742 | 5,650 |
Impairment of investment | 12,000 | 0 |
Impairment of long-lived assets | 0 | 4,949 |
Stock-based compensation | 3,784 | 2,399 |
Equity in results of affiliates | 5,368 | 8,690 |
Other operating adjustments | 8,766 | -1,796 |
Net change in operating assets and liabilities (Note 14) | -13,058 | -45,212 |
Net cash used in operating activities | -146,406 | -90,013 |
Cash flows from investing activities: | ' | ' |
Investment in joint ventures | -703 | -3,423 |
Capital expenditures | -62,837 | -334,597 |
Recovery from insurance claims | 12,900 | 0 |
Other investing activities | 460 | -364 |
Net cash used in investing activities | -50,180 | -338,384 |
Cash flows from financing activities: | ' | ' |
Repayments of debt | -5,879 | -25,990 |
Net proceeds from sale of common stock | 0 | 248,150 |
Issuance of 5.50% Convertible Notes | 0 | 165,600 |
Debt issuance costs | -14,768 | 0 |
Proceeds from the Financings (Note 6) | 250,000 | 0 |
Partial repayment of convertible notes (Note 6) | -27,495 | 0 |
Payments of preferred dividends | -2,846 | -8,539 |
Dividend paid to noncontrolling interests | -3,170 | -4,472 |
Other financing activities | 1,626 | -797 |
Net cash (used in) provided by financing activities | 197,468 | 373,952 |
Effect of exchange rate changes on cash | -1,722 | 569 |
Net change in cash and cash equivalents | -840 | -53,876 |
Cash and cash equivalents at beginning of the period | 314,317 | 227,790 |
Cash and cash equivalents at end of period | 313,477 | 173,914 |
Non-cash financing activities and investing activities: | ' | ' |
Change in accrued capital expenditures | -15,649 | -116,161 |
Fixed assets additions under capital lease | $1,470 | $5,992 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended | |
Sep. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
Basis of Presentation | ' | |
Basis of Presentation | ||
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and Regulation S-X promulgated under the Exchange Act, and reflect all adjustments that are normal and recurring in nature, which, in the opinion of management, are necessary for the fair presentation of our financial position, results of operations and cash flows at September 30, 2014, and for all periods presented. While the December 31, 2013 balance sheet information was derived from our audited financial statements, for interim periods, GAAP and Regulation S-X do not require all information and related disclosures that are required in the annual financial statements and, as a result, all disclosures required by GAAP and Regulation S-X for annual financial statements have not been included in this report. Therefore, the accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes for the year ended December 31, 2013 included in our Annual Report on Form 10-K filed with the SEC on March 3, 2014. | ||
The unaudited condensed consolidated financial statements include our accounts and the accounts of our wholly-owned and majority-owned subsidiaries. Intercompany balances and transactions have been eliminated on consolidation. Investments in joint ventures where we do not exert control, but have the ability to exercise significant influence over the operating and financial policies of the investee, are accounted for under the equity method of investment. All other investments are accounted for at cost. | ||
Use of Estimates | ||
The preparation of the financial statements, in accordance with GAAP, requires us 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. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ significantly from these estimates under different assumptions and conditions. Significant estimates we made 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, intangible assets, goodwill and investments, capital leases, uncertain tax positions, the realizability of deferred tax assets, and the adequacy of the asset retirement obligation. | ||
Significant Accounting Policies | ||
A summary of our significant accounting policies can be found in Item 8, Note 2 of the audited consolidated financial statements for the year ended December 31, 2013 included in our Annual Report on Form 10-K filed with the SEC on March 3, 2014. | ||
Recent Accounting Pronouncements | ||
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This update provides guidance about management’s responsibilities in evaluating an entity’s going concern uncertainties, and about the timing and content of related footnote disclosures. Under this amended guidance, an entity’s management should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable). Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued (or at the date that the financial statements are available to be issued when applicable). Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued (or available to be issued). The term probable is used consistently with its use in Topic 450, Contingencies. When management identifies conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern, management should consider whether its plans that are intended to mitigate those relevant conditions or events will alleviate the substantial doubt. The mitigating effect of management’s plans should be considered only to the extent that (1) it is probable that the plans will be effectively implemented and, if so, (2) it is probable that the plans will mitigate the conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. If conditions or events raise substantial doubt about an entity’s ability to continue as a going concern, but the substantial doubt is alleviated as a result of consideration of management’s plans, the entity should disclose information that enables users of the financial statements to understand all of the following (or refer to similar information disclosed elsewhere in the footnotes): | ||
a. Principal conditions or events that raised substantial doubt about the entity’s ability to continue as a going concern (before consideration of management’s plans); | ||
b. Management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations; and | ||
c. Management’s plans that alleviated substantial doubt about the entity’s ability to continue as a going concern. | ||
If conditions or events raise substantial doubt about an entity’s ability to continue as a going concern, and substantial doubt is not alleviated after consideration of management’s plans, an entity should include a statement in the footnotes indicating that there is substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or available to be issued). Additionally, the entity should disclose information that enables users of the financial statements to understand all of the following: | ||
a. Principal conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern; | ||
b. Management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations; and | ||
c. Management’s plans that are intended to mitigate the conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. | ||
This update is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. | ||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The core principle of this new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: | ||
Step 1: Identify the contract(s) with a customer. | ||
Step 2: Identify the performance obligations in the contract. | ||
Step 3: Determine the transaction price. | ||
Step 4: Allocate the transaction price to the performance obligations in the contract. | ||
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. | ||
The new guidance also specifies the accounting for some costs to obtain or fulfill a contract with a customer. An entity will be required to disclose sufficient qualitative and quantitative information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. For calendar-year public entities, the new guidance is effective starting in 2017, and interim periods within that year. Early adoption is not permitted. An entity should apply the amendments in this update using one of the following two methods: | ||
1 | Retrospectively to each prior reporting period presented. | |
2 | Retrospectively with the cumulative effect of initially applying this update recognized at the date of initial application. If an entity elects this transition method, it also should provide the additional disclosures in reporting periods that include the date of initial application of: | |
i. | The amount by which each financial statement line item is affected in the current reporting period by the application of this update as compared to the guidance that was in effect before the change. | |
ii. | An explanation of the reasons for significant changes. | |
We are in the process of evaluating which of the two methods we will apply to adopt the amendments, and whether this new guidance will have a material impact on our financial statements and related disclosures. |
Liquidity_and_Capital_Requirem
Liquidity and Capital Requirements | 9 Months Ended |
Sep. 30, 2014 | |
Capital Requirements [Abstract] | ' |
Liquidity and Capital Requirements | ' |
Liquidity and Capital Requirements | |
We expect to use our cash balances of $313.5 million as of September 30, 2014, as well as cash generated from operations in certain business units to fund our capital expenditures, debt service and other cash requirements as we continue the ramp-up and optimization of production at our Mountain Pass facility. Capital expenditures for our Mountain Pass facility are expected to total approximately $25.0 million for the remainder of 2014, including remaining payments for certain capital expenditures incurred as of September 30, 2014, and $30.0 million in 2015. Additionally, we expect to spend approximately $5.0 million for the remainder of 2014 and $30.0 million in 2015 on maintenance and expansion capital expenditures across all other business units. | |
In August 2014, we and certain of our subsidiaries entered into a commitment letter with Oaktree Capital Management, L.P. (collectively with certain of its affiliates and funds under its management, "Oaktree") pursuant to which Oaktree agreed to provide to us and certain of our subsidiaries up to approximately $400.0 million in secured financing through credit facilities and the sale and leaseback of certain equipment at our Mountain Pass facility (the "Financings") for corporate, operating and capital expenditures purposes. On September 11, 2014, we executed agreements governing the Financings and received initial gross proceeds totaling $250.0 million from Oaktree, with the remaining $149.8 million available to be drawn until April 30, 2016, $134.8 million of which is available only if we achieve certain financial and operational performance targets. For more information, see Note 6 below. | |
The amount of our cash requirements continues to be dependent on (i) the accuracy of our cost estimates for capital expenditures, (ii) our ability to ramp-up run rates at our Mountain Pass facility pursuant to our expectations without further delays, and to achieve lower cash costs of production as a result of further optimization of operations at our Mountain Pass facility, (iii) stable or improved market conditions, (iv) our ability to sell our production of rare earths to external customers and our downstream facilities (including our ability to sell our cerium through market acceptance of SorbX® or otherwise), (v) our ability to repatriate cash generated from our global operations, and (vi) the absence of payments on current and future contingent liabilities. If these assumptions prove inaccurate, our estimates could prove incorrect and we may need additional financing. | |
As part of our cash management procedures, we continue to evaluate opportunities to reduce our operating, administrative and interest costs. Additionally, we may from time to time seek to repurchase our outstanding debt securities with cash and/or exchanges for common stock or securities convertible into common stock. |
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||
Segment Information | ' | |||||||||||||||||||||||||||
Segment Information | ||||||||||||||||||||||||||||
Our operations are organized into four reportable segments, each reflecting a unique combination of product lines and technologies: Resources, Chemicals and Oxides, Magnetic Materials and Alloys, and Rare Metals. The primary measurement we use to measure the financial performance of each reportable segment is OIBDA (Operating income before depreciation, amortization and accretion). | ||||||||||||||||||||||||||||
Three months ended September 30, 2014 | Resources | Chemicals and Oxides | Magnetic Materials and Alloys | Rare Metals | Corporate and other (a) | Eliminations(b) | Total Molycorp, Inc. | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
External | $ | 4,509 | $ | 36,814 | $ | 61,345 | $ | 21,269 | $ | — | $ | 123,937 | ||||||||||||||||
Inter-segment | 9,424 | 6,658 | 1,342 | — | (17,424 | ) | — | |||||||||||||||||||||
Total revenues | $ | 13,933 | $ | 43,472 | $ | 62,687 | $ | 21,269 | $ | (17,424 | ) | $ | 123,937 | |||||||||||||||
OIBDA | $ | (31,087 | ) | $ | 4,251 | $ | 13,715 | $ | 595 | |||||||||||||||||||
Depreciation, amortization and accretion | (17,332 | ) | (3,823 | ) | (4,232 | ) | (2,034 | ) | ||||||||||||||||||||
Operating (loss) income | $ | (48,419 | ) | $ | 428 | $ | 9,483 | $ | (1,439 | ) | $ | (9,065 | ) | $ | (419 | ) | $ | (49,431 | ) | |||||||||
Other expense | (2,611 | ) | ||||||||||||||||||||||||||
Impairment of investment | (12,000 | ) | ||||||||||||||||||||||||||
Interest expense, net of capitalized interest | (35,442 | ) | ||||||||||||||||||||||||||
Loss before income taxes and equity earnings | $ | (99,484 | ) | |||||||||||||||||||||||||
Three months ended September 30, 2013 | Resources | Chemicals and Oxides | Magnetic Materials and Alloys | Rare Metals | Corporate and other (a) | Eliminations(b) | Total Molycorp, Inc. | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
External | $ | 4,655 | $ | 50,791 | $ | 72,626 | $ | 20,994 | — | $ | 149,066 | |||||||||||||||||
Inter-segment | 8,858 | 7,174 | — | — | (16,032 | ) | — | |||||||||||||||||||||
Total revenues | $ | 13,513 | $ | 57,965 | $ | 72,626 | $ | 20,994 | $ | (16,032 | ) | $ | 149,066 | |||||||||||||||
OIBDA | $ | (44,673 | ) | $ | 4,561 | $ | 18,520 | $ | (911 | ) | ||||||||||||||||||
Depreciation, amortization and accretion | (10,853 | ) | (5,960 | ) | (7,458 | ) | (2,144 | ) | ||||||||||||||||||||
Operating (loss) income | $ | (55,526 | ) | $ | (1,399 | ) | $ | 11,062 | $ | (3,055 | ) | $ | (10,806 | ) | $ | 723 | $ | (59,001 | ) | |||||||||
Other expense | (891 | ) | ||||||||||||||||||||||||||
Interest expense, net of capitalized interest | (16,289 | ) | ||||||||||||||||||||||||||
Loss before income taxes and equity earnings | $ | (76,181 | ) | |||||||||||||||||||||||||
Nine months ended September 30, 2014 | Resources | Chemicals and Oxides | Magnetic Materials and Alloys | Rare Metals | Corporate and other (a) | Eliminations(b) | Total Molycorp, Inc. | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
External | $ | 9,951 | $ | 122,521 | $ | 169,260 | $ | 57,637 | $ | — | $ | 359,369 | ||||||||||||||||
Inter-segment | 29,582 | 16,138 | 3,725 | — | (49,445 | ) | — | |||||||||||||||||||||
Total revenues | $ | 39,533 | $ | 138,659 | $ | 172,985 | $ | 57,637 | $ | (49,445 | ) | $ | 359,369 | |||||||||||||||
OIBDA | $ | (97,831 | ) | $ | 12,388 | $ | 39,203 | $ | 1,265 | |||||||||||||||||||
Depreciation, amortization and accretion | (47,432 | ) | (11,605 | ) | (12,730 | ) | (6,228 | ) | ||||||||||||||||||||
Operating (loss) income | $ | (145,263 | ) | $ | 783 | $ | 26,473 | $ | (4,963 | ) | $ | (25,259 | ) | $ | (957 | ) | $ | (149,186 | ) | |||||||||
Other expense | (1,839 | ) | ||||||||||||||||||||||||||
Impairment of investment | (12,000 | ) | ||||||||||||||||||||||||||
Interest expense, net of capitalized interest | (112,367 | ) | ||||||||||||||||||||||||||
Loss before income taxes and equity earnings | $ | (275,392 | ) | |||||||||||||||||||||||||
Nine months ended September 30, 2013 | Resources | Chemicals and Oxides | Magnetic Materials and Alloys | Rare Metals | Corporate and other (a) | Eliminations(b) | Total Molycorp, Inc. | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
External | $ | 30,235 | $ | 135,180 | $ | 193,417 | $ | 71,748 | $ | — | $ | 430,580 | ||||||||||||||||
Inter-segment | 18,168 | 28,476 | — | — | (46,644 | ) | — | |||||||||||||||||||||
Total revenues | $ | 48,403 | $ | 163,656 | $ | 193,417 | $ | 71,748 | $ | (46,644 | ) | $ | 430,580 | |||||||||||||||
OIBDA | $ | (104,519 | ) | $ | (2,792 | ) | $ | 48,823 | $ | 3,947 | ||||||||||||||||||
Depreciation, amortization and accretion | (31,536 | ) | (17,087 | ) | (20,360 | ) | (6,402 | ) | ||||||||||||||||||||
Operating (loss) income | $ | (136,055 | ) | $ | (19,879 | ) | $ | 28,463 | $ | (2,455 | ) | $ | (32,321 | ) | $ | (1,101 | ) | $ | (163,348 | ) | ||||||||
Other income | 2,474 | |||||||||||||||||||||||||||
Interest expense, net of capitalized interest | (42,807 | ) | ||||||||||||||||||||||||||
Loss before income taxes and equity earnings | $ | (203,681 | ) | |||||||||||||||||||||||||
a. | Includes business development costs, personnel costs, stock-based compensation, accounting and legal fees, occupancy expense, information technology costs and interest expense. | |||||||||||||||||||||||||||
b. | Consist of inter-segment sales and gross profits eliminations as well as eliminations of lower of cost or market adjustments related to inter-segment inventory. |
Inventory
Inventory | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Inventory Disclosure [Abstract] | ' | |||||||||||||||
Inventory | ' | |||||||||||||||
Inventory | ||||||||||||||||
At September 30, 2014 and December 31, 2013, our inventory consisted of the following: | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
(In thousands) | ||||||||||||||||
Current: | ||||||||||||||||
Concentrate stockpiles | $ | — | $ | 24 | ||||||||||||
Raw materials | 52,215 | 42,627 | ||||||||||||||
Work in process | 25,254 | 41,962 | ||||||||||||||
Finished goods | 62,397 | 65,662 | ||||||||||||||
Materials and supplies | 27,070 | 21,508 | ||||||||||||||
Total current | $ | 166,936 | $ | 171,783 | ||||||||||||
Long-term: | ||||||||||||||||
Concentrate stockpiles | $ | — | $ | 4 | ||||||||||||
Raw materials | 25,530 | 25,325 | ||||||||||||||
Total long-term | $ | 25,530 | $ | 25,329 | ||||||||||||
The following table presents charges to costs of sales related to our assessment of normal production levels and write-downs of inventory: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In thousands) | ||||||||||||||||
Abnormal production costs expensed in the period (a) | $ | 28,889 | $ | 18,249 | $ | 71,436 | $ | 65,743 | ||||||||
Write-down to the lower of cost or market (b) | 14,776 | 19,633 | 50,296 | 60,733 | ||||||||||||
Write-downs of stockpile inventory (c) | — | 6,884 | 1,342 | 13,741 | ||||||||||||
Total | $ | 43,665 | $ | 44,766 | $ | 123,074 | $ | 140,217 | ||||||||
(a) | Relates to production costs that would have been inventoriable had we been operating at normal production levels. In all periods presented, the majority of these production costs related to the Resources segment. | |||||||||||||||
(b) | Due to the decline in some rare earths prices and low inventory turnover. | |||||||||||||||
(c) | Adjustments of the estimated REO content in the stockpile at the Resources segment. |
Property_Plant_and_Equipment_n
Property, Plant and Equipment, net | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment, net | ' | |||||||
Property, Plant and Equipment, net | ||||||||
We capitalized expenditures of $17.8 million and $47.3 million for the three and nine months ended September 30, 2014, respectively, and $83.0 million and $281.3 million for the three and nine months ended September 30, 2013, respectively. The majority of these capital expenditures related to the expansion and modernization efforts, and certain other capital projects, at our Mountain Pass facility (Resources segment). Starting in 2014, we no longer capitalized interest because the construction of our Mountain Pass facility was substantially complete at the beginning of the year. For the three and nine months ended September 30, 2013, we capitalized interest of $20.3 million and $61.2 million, respectively. In prior periods, capitalized interest was added to "Construction in progress" until the asset was complete and ready for its intended use. Subsequently, capitalized interest was allocated to the pertinent asset class, such as "Land improvements", "Building and improvements" or "Plant and equipment", and amortized over the estimated useful life of the asset. | ||||||||
At September 30, 2014 and December 31, 2013, our property, plant and equipment consisted of the following: | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Land | $ | 12,045 | $ | 12,822 | ||||
Land improvements | 304,659 | 327,029 | ||||||
Buildings and improvements | 609,337 | 418,510 | ||||||
Plant and equipment | 509,562 | 288,603 | ||||||
Vehicles | 2,982 | 2,986 | ||||||
Computer software | 12,573 | 12,424 | ||||||
Furniture and fixtures | 1,196 | 1,044 | ||||||
Construction in progress (a) | 394,572 | 755,107 | ||||||
Natural gas delivery facility under capital lease | 15,658 | 15,658 | ||||||
Mining equipment under capital lease | 10,982 | 7,370 | ||||||
Mineral properties | 23,757 | 23,999 | ||||||
Property, plant and equipment at cost | 1,897,323 | 1,865,552 | ||||||
Less accumulated depreciation | (160,451 | ) | (102,678 | ) | ||||
Property, plant and equipment, net | $ | 1,736,872 | $ | 1,762,874 | ||||
(a) | Primarily related to expenditures at the Mountain Pass facility. | |||||||
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 associated with our Mountain Pass facility, all of which are capitalized. |
Debt_and_Capital_Lease_Obligat
Debt and Capital Lease Obligations | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Debt and Capital Lease Obligations | ' | |||||||||||||||||||||||||||
Debt and Capital Lease Obligations | ||||||||||||||||||||||||||||
The following table provides a summary of the current and non-current portions of our debt outstanding and capital lease obligations at September 30, 2014 and December 31, 2013: | ||||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||
Current | Non-Current | Current | Non-Current | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Bank loans due May 2014 - September 2017 | $ | 9,609 | $ | 1,486 | $ | 14,128 | $ | 2,699 | ||||||||||||||||||||
3.25% Convertible Notes, net of discount, due June 2016 | — | 191,743 | — | 207,028 | ||||||||||||||||||||||||
6.00% Convertible Notes, net of discount, due September 2017 | — | 355,614 | — | 346,708 | ||||||||||||||||||||||||
5.00% Debentures, net of discount, due December 2017 | — | 2,129 | — | 2,493 | ||||||||||||||||||||||||
5.50% Convertible Notes, net of discount, due February 2018 | — | 152,084 | — | 148,198 | ||||||||||||||||||||||||
12.00% Term Loans, due September 2019 | — | 96,595 | — | — | ||||||||||||||||||||||||
12.00% Equipment Financing, due September 2019 | — | 124,583 | — | — | ||||||||||||||||||||||||
10% Senior Notes, net of discount, due June 2020 | — | 638,521 | — | 637,435 | ||||||||||||||||||||||||
Total debt | 9,609 | 1,562,755 | 14,128 | 1,344,561 | ||||||||||||||||||||||||
Capital lease obligations | 3,160 | 20,047 | 2,234 | 19,355 | ||||||||||||||||||||||||
Total debt and capital lease obligations | $ | 12,769 | $ | 1,582,802 | $ | 16,362 | $ | 1,363,916 | ||||||||||||||||||||
Weighted average interest rate on the bank loans was 3.43% and 3.59% at September 30, 2014 and December 31, 2013, respectively. Scheduled minimum debt repayments, excluding capital lease obligations, were as follows at September 30, 2014: | ||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||
Debt maturities, excluding capital leases | (In thousands) | |||||||||||||||||||||||||||
Remainder of 2014 | 2,040 | |||||||||||||||||||||||||||
2015 | 7,997 | |||||||||||||||||||||||||||
2016 | 207,331 | |||||||||||||||||||||||||||
2017 | 412,573 | |||||||||||||||||||||||||||
2018 | 172,500 | |||||||||||||||||||||||||||
Thereafter | 971,154 | |||||||||||||||||||||||||||
Total | 1,773,595 | |||||||||||||||||||||||||||
As of September 30, 2014, we were in compliance with all applicable covenants related to our indebtedness. | ||||||||||||||||||||||||||||
12% Term Loans and 12% Equipment Financing | ||||||||||||||||||||||||||||
On September 11, 2014 (the “closing date”), we received initial gross proceeds totaling $250.0 million from the Financings with Oaktree, with the remaining $149.8 million available to be drawn until April 30, 2016, $134.8 million of which is available only if we satisfy certain financial and operational conditions. Net proceeds from the Financings were approximately $207.7 million after the repayment of approximately $23.5 million of principal amount (plus accrued interest) and $4.0 million of principal amount (plus accrued interest) of our 3.25% Convertible Notes and 6.00% Convertible Notes, respectively, owned by Oaktree (“Oaktree Notes Repurchase”), $8.0 million paid to Oaktree as a commitment yield enhancement, and the payment of transaction costs of approximately $6.6 million as of the closing date. We will be responsible for additional incurred but unpaid transaction costs in respect of the Financings after the closing date. As a result of the Oaktree Notes Repurchase, we recognized a loss on extinguishment of $2.3 million under "Other expense" in the statements of operations and comprehensive loss for the three and nine months ended September 30, 2014. This loss was calculated as the difference between the reacquisition price and the net carrying amount of our convertible notes. | ||||||||||||||||||||||||||||
The Financings consist of two term loans and one equipment financing, as follows: | ||||||||||||||||||||||||||||
a. | A term loan facility of $185.0 million (the “Parent Term Loan”), $50.2 million of which was advanced on the closing date and $134.8 million is available to be drawn in the minimum amount of $50.0 million at any time until April 30, 2016, subject to the satisfaction of certain conditions, including (i) consolidated adjusted EBITDA of no less than $20.0 million for each of two consecutive fiscal quarters, and (ii) evidence that production at our Mountain Pass facility is equal to or greater than 4,000 mt for each of two consecutive fiscal quarters, in each case prior to, but including, the fiscal quarter ending on March 31, 2016. Proceeds from the Parent Term Loan have been and will be used for capital expenditures, interest expense and general corporate purposes, including the Oaktree Notes Repurchase and the payment of transaction expenses. | |||||||||||||||||||||||||||
b. | A term loan facility of $75.0 million (the “Magnequench Term Loan”), $60.0 million of which was advanced on the closing date and $15.0 million of delayed draw term loans to be advanced, subject to the satisfaction of certain conditions, in minimum amounts of $5.0 million after the closing date and until April 30, 2016. Proceeds from the Magnequench Term Loan will be used to satisfy certain intercompany obligations of Magnequench, Inc. and to make certain intercompany loans. | |||||||||||||||||||||||||||
Interest rates on the Parent Term Loan and the Magnequench Term Loan (collectively, the “Term Loans”) are: (i) from the closing date through June 14, 2016, 7.00% per year payable in cash and 5.00% per year payable in kind (“PIK interest”) and (ii) from June 15, 2016, and thereafter, 12.00% per year payable in cash, unless our 3.25% Convertible Notes have been repaid in full with the proceeds of the sale of our common equity or by the exchange of such convertible notes for our common equity, or any combination thereof (the “2016 Notes Equity Refinancing”), in which case, interest will accrue as indicated in (i) above. The daily average unused amount of the delayed draw Term Loans commitment for the Term Loans is subject to an unused commitment enhancement payment of 1.00% per year. | ||||||||||||||||||||||||||||
The Term Loans mature on September 11, 2019, with springing maturity dates at (i) April 30, 2016, if we have not repaid, escrowed or extended an amount of cash sufficient to repay when due and payable the 3.25% Convertible Notes down to $40.0 million in the aggregate and (ii) March 31, 2017, if we have not repaid or escrowed an amount of cash sufficient to repay when due and payable (a) our 6.00% Convertible Notes down to $80.0 million in the aggregate and (b) our 5.50% Convertible Notes down to $40.0 million in the aggregate. | ||||||||||||||||||||||||||||
We cannot make any voluntary prepayments on the Term Loans prior to the fourth anniversary of the closing date. In addition, any prepayment of the loans and any repayment (or other satisfaction) of the loans after acceleration, but prior to September 11, 2019, will be subject to an early payment premium of (i) 43.8% of the principal amount so prepaid if paid prior to the first anniversary of the closing date, (ii) 33.7% of the principal amount so prepaid if paid on or after the first anniversary of the closing date but prior to the second anniversary of the closing date, (iii) 23.0% of the principal amount so prepaid if paid on or after the second anniversary of the closing date but prior to the third anniversary of the closing date, (iv) 11.5% of the principal amount so prepaid if paid on or after the third anniversary of the closing date but prior to the fourth anniversary of the closing date, and (vi) 3.0% of the principal amount so prepaid if paid on or after the fourth anniversary of the closing date. Any mandatory prepayment of the loans resulting from an asset sale will be subject to an early payment premium of 3.0% of the principal amount so prepaid. | ||||||||||||||||||||||||||||
The springing maturity dates, in combination with the early payment premiums applicable to any prepayment of the loans described above, meet the definition of a derivative that is required to be bifurcated from its host debt instrument. Because this derivative is to be classified as a liability, we recognized a discount on the Term Loans as of the closing date of approximately $1.7 million, in the aggregate, which will be amortized to interest expense over the duration of the Term Loans. See Note 15 for more information on this derivative. | ||||||||||||||||||||||||||||
c. | A Purchase and Sale Agreement pursuant to which we sold certain equipment including, but not limited to, parts of our natural gas powered co-generation power plant, the Chlor-Alkali facility and the water treatment plant (collectively, the “Equipment”), located at our Mountain Pass facility. In exchange for the sale of the Equipment, we received proceeds of $139.8 million that have been and will be used for the development and improvement of the Equipment and other assets at our Mountain Pass facility, and may be used, to the extent permitted under our 10% Senior Notes indenture and the Parent Term Loan, for interest payments and other general corporate purposes. | |||||||||||||||||||||||||||
Concurrently with entering into the Purchase and Sale Agreement, we and Oaktree entered into an Equipment Lease Agreement, which we refer to as the "Equipment Financing", whereby we leased back all of the Equipment. The Equipment Financing has a five-year term with the following approximate annual rent payments (due quarterly in arrears): $10.1 million in the first year, $10.7 million in the second year, $11.2 million in the third year, $11.8 million in the fourth year and $12.4 million in the fifth year with an additional payment of approximately $179.9 million on the fifth anniversary of the lease commencement date (“Base Rent Payments”); provided, that unless the 2016 Notes Equity Refinancing, as defined above, has occurred by June 15, 2016, the rent will be adjusted to require annual payments of $18.0 million for years two through five and a payment of approximately $147.0 million on the fifth anniversary of the lease commencement date. Base Rent Payments on the Equipment Financing are based on a 7% annual rate applied to the unpaid principal balance plus accrued, but unpaid interest calculated at an annual rate of 5%. | ||||||||||||||||||||||||||||
Due to the existence of several forms of our continuing involvement with the Equipment, we are required to account for the Equipment Financing as a direct financing under GAAP, rather than a sale-leaseback. Additionally, since the rent payments do not cover the total interest expense of the Equipment Financing, we recognize such payments as interest only with no principal reduction of the financing obligation. However, the unpaid interest calculated at an annual rate of 5% increases the financing obligation up to the final payment due on the fifth anniversary of the Equipment Financing, whether or not the 2016 Notes Equity Refinancing occurs. | ||||||||||||||||||||||||||||
In connection with the Financings, we issued warrants to Oaktree to purchase up to an aggregate of 24,477,359 shares of our common stock. For accounting purposes, a portion of the proceeds from the Financings was allocated to the warrants, which created a discount on the Term Loans and the Equipment Financing of approximately $28.2 million, in the aggregate. This discount will be recognized as interest expense over the term of the Financings. See Note 8 and Note 15 for more information on the warrants. | ||||||||||||||||||||||||||||
The following table presents a reconciliation of the principal amount to the net carrying value of the Term Loans and the Equipment Financing at September 30, 2014: | ||||||||||||||||||||||||||||
12.00% Term Loans | 12.00% Equipment Financing | |||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||
2014 | 2014 | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Principal amount (a) | $ | 110,473 | $ | 140,069 | ||||||||||||||||||||||||
Unamortized debt discount | (13,878 | ) | (15,486 | ) | ||||||||||||||||||||||||
Net carrying amount | $ | 96,595 | $ | 124,583 | ||||||||||||||||||||||||
(a) Includes PIK interest accretion. | ||||||||||||||||||||||||||||
Obligations under the Financings are guaranteed by us and certain of our subsidiaries (the “Pari Passu Guarantors”) that also guarantee the obligations under our 10% Senior Notes. Our obligations and those of the Pari Passu Guarantors under the Financings are secured by a pari passu lien on substantially all of our assets and the assets of the Pari Passu Guarantors (the “Pari Passu Collateral”) on an equal and ratable basis with the obligations under the 10% Senior Notes. The maximum principal amount of debt under the Financings secured by the Pari Passu Collateral shall not exceed $300.0 million in the aggregate at any time or such higher amount permitted by the Pari Passu Indenture. In addition, the obligations under the Financings are guaranteed by certain of our other subsidiaries (the “First Priority Guarantors”). The obligations of the First Priority Guarantors under the Financings are secured by a first priority lien on certain equity interests owned by the First Priority Guarantors, including equity interests of certain foreign subsidiaries. In addition, the Magnequench Credit Agreement is secured by a first priority lien on substantially all of the assets of Magnequench, Inc. | ||||||||||||||||||||||||||||
Convertible Notes and Senior Secured Obligations | ||||||||||||||||||||||||||||
The following table presents a reconciliation of the principal amount to the net carrying value for each of our Convertible Notes and our Senior Notes at September 30, 2014 and December 31, 2013, and provides the interest cost of each instrument for the three and nine months ended September 30, 2014 and 2013: | ||||||||||||||||||||||||||||
3.25% Convertible Notes | 6.00% Convertible Notes | 5.50% Convertible Notes | 10% Senior Notes | |||||||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Principal amount | $ | 206,505 | $ | 230,000 | $ | 410,000 | $ | 414,000 | $ | 172,500 | 172,500 | $ | 650,000 | $ | 650,000 | |||||||||||||
Unamortized debt discount | (14,762 | ) | (22,972 | ) | (54,386 | ) | (67,292 | ) | (20,416 | ) | (24,302 | ) | (11,479 | ) | (12,565 | ) | ||||||||||||
Net carrying amount | $ | 191,743 | $ | 207,028 | $ | 355,614 | $ | 346,708 | $ | 152,084 | 148,198 | $ | 638,521 | $ | 637,435 | |||||||||||||
Interest cost (a) | ||||||||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
$ | 3,935 | $ | 3,988 | $ | 10,710 | $ | 9,969 | $ | 3,711 | $ | 3,609 | $ | 16,658 | $ | 16,622 | |||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
$ | 12,063 | $ | 11,839 | $ | 31,135 | $ | 29,691 | $ | 11,046 | $ | 9,482 | $ | 49,942 | $ | 49,837 | |||||||||||||
(a) Interest cost includes the coupon interest, accretion of the initial equity component of the convertible notes (3.25% - $36,227; 6.00% - $68,695; and 5.50% - $21,815), accretion of the underwriting discounts and amortization of the issuance costs allocated to the liability component. | ||||||||||||||||||||||||||||
The 10% Senior Notes are our senior secured obligations and are guaranteed by certain of our domestic subsidiaries ("Guarantors"). The Senior Notes are secured by a first-priority security interest on substantially all of our property and assets and those of 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; and | |||||||||||||||||||||||||||
• | 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. | |||||||||||||||||||||||||||
Capital Leases | ||||||||||||||||||||||||||||
We lease certain mining and other equipment under agreements with various durations that have been determined to be capital leases. Those agreements contain purchase options at the end of the lease term and are generally at market interest rates. | ||||||||||||||||||||||||||||
At September 30, 2014, total future minimum payments on our capital leases were as follows: | ||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||
Capital Leases | (In thousands) | |||||||||||||||||||||||||||
Remainder of 2014 | 2,069 | |||||||||||||||||||||||||||
2015 | 8,278 | |||||||||||||||||||||||||||
2016 | 8,278 | |||||||||||||||||||||||||||
2017 | 7,161 | |||||||||||||||||||||||||||
2018 | 5,770 | |||||||||||||||||||||||||||
Thereafter | 18,195 | |||||||||||||||||||||||||||
Total | 49,751 | |||||||||||||||||||||||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
Our effective income tax rate can vary significantly quarter-to-quarter for various reasons, including the mix and volume of business in lower tax jurisdictions, in jurisdictions with tax holidays and tax incentives, and in jurisdictions for which no deferred tax assets have been recognized because management believed it was not more likely than not that future taxable profit would be available against which tax losses and deductible temporary differences could be utilized. Our effective income tax rate can also vary due to the impact of foreign exchange fluctuations, operating losses, changes in our provisions related to tax uncertainties, and changes in our assertion relating to indefinitely reinvesting undistributed earnings of certain foreign subsidiaries. | |
For the three and nine months ended September 30, 2014, our effective tax rates were (3.6)% and 2.1%, respectively, as compared to 16.9% and 19.1% for the three and nine months ended September 30, 2013, respectively. The September 30, 2014 effective tax rates were impacted primarily by the valuation allowance required in the United States. In addition, a $9.6 million discrete income tax benefit has been recognized during the second quarter of 2014 in the United States to offset the increase in deferred tax liabilities from an out-of-period adjustment related to the revised fair value of our share-lending arrangements described in Note 8 below. |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
Stockholders' Equity | ' | |||||||||||
Stockholders’ Equity | ||||||||||||
At September 30, 2014 and December 31, 2013, we had 244,864,742 and 240,380,138 shares of common stock issued and outstanding, respectively. At December 31, 2013, we also had 2,070,000 shares of our 5.50% Series A Mandatory Convertible Preferred Stock (“Convertible Preferred Stock”) issued and outstanding. | ||||||||||||
Warrants | ||||||||||||
On September 11, 2014, as part of the Financings, we issued warrants to Oaktree to purchase up to an aggregate of 18,358,019 shares of our common stock (the “Penny Warrants”) with an exercise price of $0.01 per share, and warrants to purchase up to an aggregate of 6,119,340 shares of our common stock with an exercise price of $2.04 per share (the “Strike Warrants”, and collectively with the Penny Warrants the “Warrants”). The Warrants may be exercised at any time until September 11, 2019. The Warrants are subject to a lock up that prevents any registered holder to trade any option to purchase or sell shares of our common stock, or transfer or dispose of any shares of our common stock issued or issuable upon exercise of the Warrants for a period of 90 days after the closing date. Each Warrant may be exercised by Oaktree or any registered holder of the Warrant on either a cash basis (i.e., physical exercise) or on a “cashless basis” by surrendering such Warrant for a net number of shares of our common stock. With respect to the exercise of any Warrant on a “cashless basis”, the number of shares of our common stock to be surrendered is equal to the quotient obtained by dividing (x) the product of the number of shares of our common stock underlying such Warrant or any portion thereof being exercised (at the election of the registered holder), multiplied by the difference between the Fair Market Value and the warrant price by (y) the Fair Market Value. Fair Market Value means the average last sale price of a share of our common stock for the ten trading days ending on the third trading day prior to the date on which notice of exercise of such Warrant is sent to Computershare Inc. and Computershare Trust Company, N.A. The exercise price and the number of shares of our common stock issuable upon exercise of the Warrant Shares are subject to customary anti-dilution adjustments for stock splits, stock dividends and recapitalizations of our common stock. Subject to certain exceptions, including the issuance of shares of our common stock or other equity awards pursuant to our equity compensation plans, if we issue common stock (or common stock equivalents) at a purchase price less than the then-current exercise price of the Strike Warrants, the exercise price of the Strike Warrants will be subject to (i) full-ratchet anti-dilution protection for the first two-year period of the Strike Warrants and (ii) weighted-average anti-dilution protection for the remaining three-year period of the Strike Warrants. | ||||||||||||
The Penny Warrants meet the criteria for the equity classification and were recorded at a fair value of approximately $24.7 million, net of issuance costs, in "Additional paid-in capital" in the condensed consolidated statements of stockholders' equity. The Strike Warrants, instead, were classified as a derivative liability because the exercise price may be adjusted for the issuance of additional shares of our common stock under certain circumstances. See Note 15 for more information on the Strike Warrants. | ||||||||||||
The fair value of the Warrants was determined using an option-pricing model with the following inputs: | ||||||||||||
Penny Warrants | Strike Warrants | |||||||||||
Term (years) | 5 | 5 | ||||||||||
Stock price | $ | 1.55 | $ | 1.55 | ||||||||
Strike price | $ | 0.01 | $ | 2.04 | ||||||||
Risk-free interest rate | 1.79 | % | 1.79 | % | ||||||||
Volatility | 82.6 | % | 49.9 | % | ||||||||
Dividend yield | — | % | — | % | ||||||||
Since the unit of account for the Penny Warrants is our common stock, the volatility is based on the average of historical and implied volatility. For the Strike Warrants, we applied a "Volatility Haircut" based on certain studies supporting that market participants would generally apply a discount to the full observed historical or implied volatility for an option on the stock. | ||||||||||||
In addition, in order to account for the restriction on the marketability of the shares of common stock issuable upon exercise of the Warrants for a 90-day period from the closing day, we applied a Discount for Lack Of Marketability (“DLOM”) to the fair value of each Warrant obtained from the option-pricing model. The DLOM was obtained using an option-based approach that estimates a discount as an average strike put option, effectively assuming that if the shares of common stock were available to be traded, the holder could sell the shares evenly over the restriction period. In particular, for the Penny Warrants, we discounted the fair value from the option-pricing model by a DLOM of 9%, which resulted into a fair market value of $1.40 per Penny Warrant, whereas for the Strike Warrants we discounted the fair value by a DLOM of 31% to arrive to a fair market value of $0.57 per Strike Warrant. | ||||||||||||
Conversion of Preferred Stock | ||||||||||||
On March 1, 2014, each share of our Convertible Preferred Stock automatically converted into two shares of our common stock based on the “maximum conversion rate”, as defined in our Amended and Restated Certificate of Incorporation. As a result, we issued 4,140,000 shares of our common stock in connection with the automatic conversion of the 2,070,000 shares of the Convertible Preferred Stock. Also on March 1, 2014, we paid the final $2.8 million of the aggregate preferred dividends on the Convertible Preferred Stock to holders of record at the close of business on February 15, 2014. | ||||||||||||
Share-lending arrangements | ||||||||||||
In August 2012, in order to facilitate the offering of our 6.00% Convertible Notes due September 2017, we entered into a share-lending arrangement with Morgan Stanley Capital Services LLC (“MSCS”), an affiliate of Morgan Stanley & Co. LLC, under which we agreed to loan 13,800,000 shares of our common stock to MSCS (the “2012 Borrowed Shares”). In January 2013, in order to facilitate the offering of our 5.50% Convertible Notes due February 2018, we entered into another share-lending arrangement with MSCS, under which we agreed to loan 6,666,666 shares of our common stock (the “2013 Borrowed Shares”, and collectively with the 2012 Borrowed Shares, the “Borrowed Shares”). We received no proceeds and no collateral for the Borrowed Shares, but a nominal lending fee from MSCS for the use of these loaned shares. Given the aggregate lending fees, no further consideration was given to the accounting treatment of the share-lending arrangements. For corporate law purposes, the Borrowed Shares are issued and outstanding. However, based on certain contractual undertakings of MSCS in the share-lending arrangements that have the effect of substantially eliminating the economic dilution that otherwise would result from the issuance of the Borrowed Shares, these loaned shares are not considered outstanding for the purpose of computing and reporting our earnings per share. The Borrowed Shares are to be returned to Molycorp concurrently with the maturity of the related convertible notes. | ||||||||||||
During the second quarter of 2014, the SEC issued Molycorp a comment letter with respect to our Annual Report on Form 10-K for the fiscal year ended December 31, 2013 regarding, among other things, the fair value measurement of our share-lending arrangements. In response to the SEC’s comment, we reconsidered our approach to determining the fair value of our share-lending arrangements and identified a methodology to estimate the long-term borrowing rate of our common stock, which we adjusted for the credit risk of the counterparty given that no collateral was provided to us that complied with ASC 470-20-25-20A. As a result of applying the methodology, management has determined that the fair value at the date of issuance of the 2012 Borrowed Shares and 2013 Borrowed Shares should have been approximately $18.1 million and $6.6 million, respectively. These amounts should have been recognized in the financial statements as issuance costs associated with the issuance of the related convertible notes with an offset to additional paid-in capital. | ||||||||||||
Because the adjustment, both individually and in the aggregate, was not material to any of the prior years’ financial statements, and the impact of correcting the errors was not material to the full year 2014 financial statements, we recorded the correction in the condensed consolidated financial statements in the second quarter of 2014. The out-of-period adjustment had the following impact on the condensed consolidated balance sheet and the condensed consolidated statements of operations and comprehensive loss: | ||||||||||||
Increase to balance sheet captions: | As of June 30, 2014 | |||||||||||
Other non-current assets | $ | 16,381 | ||||||||||
Property, plant and equipment, net | 3,378 | |||||||||||
Additional paid-in capital | 15,062 | |||||||||||
Increase to statements of operations and comprehensive loss captions: | Three Months Ended | |||||||||||
June 30, 2014 | ||||||||||||
Interest expense, net of capitalized interest | $ | 4,933 | ||||||||||
Income tax benefit | 9,630 | |||||||||||
The following table provides certain other information on our share-lending arrangements as of September 30, 2014: | ||||||||||||
2012 Borrowed Shares | 2013 Borrowed Shares | Total | ||||||||||
(In thousands) | ||||||||||||
Fair value | $ | 3,001 | $ | 1,686 | $ | 4,687 | ||||||
Unamortized issuance cost | 10,624 | 4,505 | 15,129 | |||||||||
The methodology to fair value our share-lending arrangements consists of an option pricing model that we used to determine a synthetic cost for borrowing our common stock, which we then adjusted for an estimate of the counterparty credit risk. Inputs used in this approach include a combination of Level 2 and Level 3 inputs of the fair value hierarchy. As of September 30, 2014, all of the Borrowed Shares we originally agreed to loan to MSCS are still outstanding, and the related unamortized issuance cost is included in "Other non-current assets" in the condensed consolidated balance sheet. | ||||||||||||
The amount of non-cash interest cost recognized relating to the amortization of the issuance cost associated with the combined share-lending arrangements was as follows in 2014: | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, 2014 | September 30, 2014 | |||||||||||
(In thousands) | ||||||||||||
Interest cost expensed | $ | 1,250 | $ | 6,183 | ||||||||
Interest cost capitalized | — | 3,378 | ||||||||||
Accumulated other comprehensive income | ||||||||||||
The following table provides the changes in Accumulated other comprehensive income (loss) (“AOCI”) for the nine-month periods ended September 30, 2014 and 2013: | ||||||||||||
Foreign currency translation adjustments | Postretirement benefit liability | Accumulated other comprehensive loss | ||||||||||
(In thousands) | ||||||||||||
Balance at December 31, 2013 | $ | (6,638 | ) | $ | 187 | $ | (6,451 | ) | ||||
Change in other comprehensive loss before reclassifications | (9,253 | ) | — | (9,253 | ) | |||||||
Net income (loss) reclassified from AOCI | — | — | — | |||||||||
Balance at September 30, 2014 | $ | (15,891 | ) | $ | 187 | $ | (15,704 | ) | ||||
Foreign currency translation adjustments | Postretirement benefit liability | Accumulated other comprehensive loss | ||||||||||
(In thousands) | ||||||||||||
Balance at December 31, 2012 | $ | (8,261 | ) | $ | (1,172 | ) | $ | (9,433 | ) | |||
Change in other comprehensive loss before reclassifications | 1,585 | — | 1,585 | |||||||||
Net income (loss) reclassified from AOCI | — | — | — | |||||||||
Balance at September 30, 2013 | $ | (6,676 | ) | $ | (1,172 | ) | $ | (7,848 | ) | |||
There were no items reclassified from AOCI during the interim periods presented above. |
Loss_per_Share
Loss per Share | 9 Months Ended |
Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ' |
Loss per Share | ' |
Loss per Share | |
For the nine months ended September 30, 2014 and for the three and nine months ended September 30, 2013, the dividends on the Convertible Preferred Stock were subtracted from net loss attributable to Molycorp stockholders for the purpose of computing the basic and diluted earnings per share. | |
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 non-vested shares, such as restricted stock units, are deemed options for purposes of computing diluted earnings per share. At September 30, 2014 and 2013, all potential common stock under the treasury stock method were antidilutive in nature; consequently, we 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 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. Our Convertible Preferred Stock was antidilutive at September 30, 2014 and 2013. 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. At September 30, 2014 and 2013, our convertible notes were all antidilutive. | |
Included in the basic and diluted loss per share for the three and nine months ended September 30, 2013 are losses from discontinued operations of $0.02 and $0.03, respectively, related to an asset disposal that we finalized in the first quarter of 2014. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||
Stock-Based Compensation | ' | ||||||
Stock-Based Compensation | |||||||
The following tables summarize the stock-based awards with significant activity for the nine months ended September 30, 2014: | |||||||
PBRSUs | Number of | Weighted Average | |||||
Shares | Grant-Date | ||||||
Price | |||||||
Unvested at December 31, 2013 | 697,797 | $ | 7.45 | ||||
Granted | 755,283 | $ | 5.1 | ||||
Forfeited | (9,052 | ) | 5.45 | ||||
Vested | — | — | |||||
Unvested at September 30, 2014 | 1,444,028 | $ | 6.19 | ||||
RSUs | Number of | Weighted Average | |||||
Shares | Grant-Date | ||||||
Price | |||||||
Unvested at December 31, 2013 | 1,076,385 | $ | 9.81 | ||||
Granted | 750,289 | $ | 4.22 | ||||
Forfeited | (64,123 | ) | $ | 8.84 | |||
Vested | (60,196 | ) | $ | 26.85 | |||
Unvested at September 30, 2014 | 1,702,355 | $ | 6.78 | ||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||
Commitments and Contingencies | ' | |||||||||||||||||||
Commitments and Contingencies | ||||||||||||||||||||
(a) | Future Operating Lease Commitments | |||||||||||||||||||
We lease certain office space, trailers and equipment pursuant to lease agreements that have been determined to be operating leases. Remaining annual minimum payments under these leases at September 30, 2014 were as follows: | ||||||||||||||||||||
Total | Less Than | 1 - 3 Years | 4 - 5 Years | More Than | ||||||||||||||||
1 Year | 5 Years | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Operating lease obligations | $ | 5,846 | $ | 2,113 | $ | 2,396 | $ | 498 | $ | 839 | ||||||||||
(b) | Purchase Commitments | |||||||||||||||||||
We entered into contractual commitments for the purchase of materials and services from various vendors, primarily in connection with the modernization and expansion efforts at our Mountain Pass facility. Future payments for all purchase commitments at September 30, 2014 were as follows: | ||||||||||||||||||||
Total | Less Than | 1 - 3 Years | 4 - 5 Years | More Than | ||||||||||||||||
1 Year | 5 Years | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Purchase obligations and other commitments | $ | 75,804 | $ | 75,804 | $ | — | $ | — | $ | — | ||||||||||
(c) | Purported Class Action and Derivative Lawsuits | |||||||||||||||||||
In February 2012, a purported class action lawsuit was filed in the Colorado Federal District Court against us and certain of our current and former executive officers alleging violations of the federal securities laws. The Consolidated Class Action Complaint filed on July 31, 2012 also names most of our Board members and some of our stockholders as defendants, along with other persons and entities. That Complaint alleges 18 claims for relief arising out of alleged: (1) securities fraud in violation of the Securities Exchange Act of 1934, or the Exchange Act, during the proposed class period from February 11, 2011 through November 10, 2011; and (2) materially untrue or misleading statements in registration statements and prospectuses for our public offering of preferred stock in February 2011 and of common stock in June 2011, in violation of the Securities Act of 1933. Our motion to dismiss that Complaint was filed in October 2012 and is pending. We believe that this lawsuit is without merit, and we intend to vigorously defend ourselves against these claims. | ||||||||||||||||||||
Certain of our shareholders filed a consolidated stockholder derivative lawsuit purportedly on our behalf against us (as nominal defendant) and certain of our current and former directors, executive officers and shareholders in the Delaware Court of Chancery. A Consolidated Amended Stockholder Derivative Complaint was filed in August 2012. Pursuant to an order dated May 15, 2013, the Delaware Chancery Court stayed this derivative lawsuit pending the outcome of the Colorado class action lawsuit. On October 9, 2013, certain plaintiffs, purportedly on our behalf, filed a Motion to Lift the Stay and for Leave to File an Amended Complaint. Pursuant to a letter opinion dated May 12, 2014, the Delaware Chancery Court granted plaintiffs’ motion to file a second consolidated amended derivative complaint. In addition, the Delaware Chancery Court lifted the stay of the action. The plaintiffs filed their Second Consolidated Amended Complaint on May 15, 2014, alleging breaches of fiduciary duty and unjust enrichment, but dropping claims for material misstatements and for trading on material, non-public information. The defendants filed a Motion to Dismiss the Second Consolidated Amended Complaint on July 14, 2014. Oral arguments on the Motion to Dismiss are scheduled on January 16, 2015. | ||||||||||||||||||||
Two additional shareholder derivative lawsuits were filed purportedly on our behalf against us (as nominal defendant) and certain of our current and former directors, executive officers and shareholders, in the Colorado Federal District Court. These lawsuits allege claims for breach of fiduciary duty, waste of corporate assets, and unjust enrichment based on events in 2011 and 2012. The Colorado Federal District Court dismissed these lawsuits. The plaintiffs filed an appeal of that ruling to the U.S. Court of Appeals for the Tenth Circuit, and the Tenth Circuit remanded these cases back to the Colorado Federal District Court. Subsequently, a different shareholder, purportedly on our behalf, filed a new shareholder derivative lawsuit in the Colorado Federal District Court alleging claims for breach of fiduciary duty, waste of corporate assets, and unjust enrichment based on events during 2011 through 2013. The Colorado Federal District Court sua sponte consolidated this lawsuit with the remanded lawsuits. The plaintiff in the new derivative lawsuit filed a Motion to Vacate the consolidation order. On July 15, 2014, the Colorado Federal District Court ruled that, based on the Second Consolidated Amended Derivative Complaint filed in Delaware Chancery Court, the issues raised in the Colorado derivative cases were sufficiently distinct from the issues set forth in the Delaware derivative lawsuit, and reversed its original order dismissing the lawsuits. In its order, the Colorado Federal District Court left open the opportunity for the defendants to file a motion to stay the Colorado derivative lawsuits pending the resolution of the Colorado class action lawsuit. The Motion to Stay has been fully briefed and is pending. The Motion to Vacate the consolidation order remains pending. | ||||||||||||||||||||
In August 2013, two purported class action lawsuits were filed in the U.S. District Court for the Southern District of New York against us and certain of our current and former executive officers, alleging violations of the federal securities laws. A Consolidated Amended Class Action Complaint, filed on May 19, 2014, also names us and certain of our current and former executive officers. The Consolidated Amended Class Action Complaint alleges claims for relief arising out of alleged securities fraud in violation of the Exchange Act, during a purported class period from February 21, 2012 through October 15, 2013. Our Motion to Dismiss the consolidated lawsuit was filed on August 13, 2014. We believe that this lawsuit is without merit, and we intend to vigorously defend ourselves against these claims. | ||||||||||||||||||||
The class action and derivative lawsuits described above have not progressed to a point where a reasonably possible range of losses associated with their ultimate outcome can be estimated at this time. If the final resolution of any such litigation or proceedings is unfavorable, our financial condition, operating results and cash flows could be materially affected. |
Concentrations
Concentrations | 9 Months Ended |
Sep. 30, 2014 | |
Risks and Uncertainties [Abstract] | ' |
Concentrations | ' |
Concentrations | |
Resources Segment | |
There were no significant sales by customer or by product at the Resources segment for the three and nine months ended September 30, 2014, and for the three and nine months ended September 30, 2013. | |
Chemicals and Oxides Segment | |
Sales of cerium products within the Chemicals and Oxides segment accounted for 12% and 8% of consolidated revenues in the third quarter of 2014 and 2013, respectively, and 11% and 10% for the nine months ended September 30, 2014 and 2013, respectively. There were no significant sales by customer in this segment in all interim periods indicated above. | |
Magnetic Materials and Alloys Segment | |
Sales of Neo Powders™ within the Magnetic Materials and Alloys segment, relative to consolidated revenues, were 45% and 45% for the three months ended September 30, 2014 and 2013, respectively, and 45% and 40% for the nine months ended September 30, 2014 and 2013, respectively. | |
Sales of Neo Powders™ to Daido Electronics, a subsidiary of one of IMJ’s shareholders, totaled $18.6 million and $16.3 million for the three months ended September 30, 2014 and 2013, respectively, and $45.8 million and $39.2 million for the nine months ended September 30, 2014 and 2013, respectively. At September 30, 2014 and December 31, 2013, we had accounts receivable from Daido Electronics of $6.3 million and $7.5 million, respectively. | |
Rare Metals Segment | |
There were no significant sales by product or by customer at the Rare Metals segment for the three and nine months ended September 30, 2014 and the three and nine months ended September 30, 2013. |
RelatedParty_Transactions
Related-Party Transactions | 9 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Related-Party Transactions | ' |
Related-Party Transactions | |
We supply Neo Powders™ to Daido Electronics, a subsidiary of one of IMJ’s shareholders, and to Toda Magnequench Magnetic Materials Co. Ltd. (“TMT”), an equity method investee of ours involved in the production of rare earth magnetic compounds. We also purchase magnetic compounds back from TMT in the normal course of business. Two other equity method investees, with whom we regularly buy and sell products, include Ganzhou Keli Rare Earth New Material Co., Ltd. (“Keli”), which processes rare earth oxides into metals for inclusion in our Neo Powders™, and Ingal Stade GmbH, which sells gallium to our rare metals facilities located in Canada and the United States. In addition, we provide rare metal recycling services to Plansee Holding AG, a privately held Austrian company that is wholly-owned by an Austrian trust, of which one of our Board's directors and other members of his family are beneficiaries. | |
For the three and nine months ended September 30, 2014, we purchased metals and received services from Keli for a total of $15.0 million and $50.6 million, respectively, as compared to $20.4 million and $44.8 million for the three and nine months ended September 30, 2013, respectively. | |
Except for Daido Electronics, which is disclosed in Note 12, transactions with all other related parties were nominal in all interim periods indicated above. |
Net_Change_in_Operating_Assets
Net Change in Operating Assets and Liabilities | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
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 for the nine months ended September 30, 2014 and 2013: | ||||||||
Nine Months Ended September 30, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Decrease (increase) in operating assets: | ||||||||
Trade accounts receivable | $ | 8,301 | $ | (5,557 | ) | |||
Inventory | (50,057 | ) | 26,816 | |||||
Prepaid expenses and other current assets | (3,368 | ) | (1,085 | ) | ||||
Increase (decrease) in operating liabilities: | ||||||||
Trade accounts payable | (10,641 | ) | (16,642 | ) | ||||
Income tax payable | 2,346 | (8,768 | ) | |||||
Interest payable | 30,467 | (26,765 | ) | |||||
Asset retirement obligation | (1,415 | ) | (2,385 | ) | ||||
Accrued expenses | 11,309 | (10,826 | ) | |||||
$ | (13,058 | ) | $ | (45,212 | ) |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||
For assets and liabilities that are required under GAAP to be measured at fair value on a recurring or nonrecurring basis, we refer 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. | |||||||||||||||
Our assets and liabilities measured at fair value on a recurring basis were as follows at September 30, 2014 and December 31, 2013: | ||||||||||||||||
30-Sep-14 | ||||||||||||||||
Quoted Prices in Active Markets for Identical Assets/Liabilities | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
(In thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Cash equivalents | $ | 212,728 | — | — | ||||||||||||
Liabilities: | ||||||||||||||||
Derivative liabilities: | ||||||||||||||||
Springing Maturity on Term Loans | — | — | $ | 1,694 | ||||||||||||
Strike Warrants | — | — | $ | 2,510 | ||||||||||||
Share Purchase Agreement | — | — | $ | 6,057 | ||||||||||||
31-Dec-13 | ||||||||||||||||
Quoted Prices in Active Markets for Identical Assets/Liabilities | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
(In thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Cash equivalents | $ | 179,052 | — | — | ||||||||||||
Liabilities: | ||||||||||||||||
Derivative liability - Share Purchase Agreement | — | — | $ | 6,089 | ||||||||||||
The financial assets classified in Level 1 at September 30, 2014 and December 31, 2013 consist of money market funds valued based on quoted prices for identical assets in active markets. | ||||||||||||||||
The Springing Maturity on Term Loans is a derivative liability bifurcated from the Term Loans issued on September 11, 2014 in conjunction with the Financings described in Note 6. The technique used to fair value the Springing Maturity on Term Loans is the income approach based on a discounted cash flow model using significant unobservable inputs, including a probability factor of 5% representing the likelihood that the springing maturity dates would be triggered. There was no change in fair value of the Springing Maturity on Term Loans during the three and nine months ended September 30, 2014. | ||||||||||||||||
The Strike Warrants were issued on September 11, 2014 in conjunction with the Financings described in Note 6. The change in fair value of the Strike Warrants resulted in a gain of approximately $1.0 million for the three and nine months ended September 30, 2014, which was recognized in "Interest expense" in the condensed consolidated statements of operations and comprehensive income. The technique used to fair value the Strike Warrants is the income approach based on a discounted cash flow model using significant unobservable inputs. See Note 8 for more information on the inputs and technique used to fair value the Strike Warrants. | ||||||||||||||||
The share purchase agreement (“SPA”) relates to a contract between NMT Holding GmbH, our wholly-owned German subsidiary, and the shareholders of Buss & Buss, a majority-owned subsidiary of ours. 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 us, 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 us. We account for the put option at fair value with changes in fair value recognized currently in earnings. The change in fair value of the put option resulted in nominal unrealized gains and losses for the three and nine months ended September 30, 2014, and for the three and nine months ended September 30, 2013, which were recognized in "Interest expense" in the condensed consolidated statements of operations and comprehensive income. The technique used to fair value the SPA is the income approach based on a discounted cash flow model using significant unobservable inputs. | ||||||||||||||||
The fair value of our derivative liabilities is recorded in "Other long-term liabilities" in the balance sheets as of September 30, 2014 and December 31, 2013. | ||||||||||||||||
The following table presents the fair value of publicly traded financial liabilities we reported at their carrying value at September 30, 2014 and December 31, 2013: | ||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||
Long-term debt | ||||||||||||||||
3.25% Convertible Notes due June 2016 | $ | 191,743 | $ | 128,033 | $ | 207,028 | $ | 161,771 | ||||||||
6.00% Convertible Notes due September 2017 | 355,614 | 139,400 | 346,708 | 312,570 | ||||||||||||
5.50% Convertible Notes due February 2018 | 152,084 | 61,422 | 148,198 | 164,015 | ||||||||||||
10% Senior Notes due June 2020 | 638,521 | 448,500 | 637,435 | 646,750 | ||||||||||||
Total long-term debt | $ | 1,337,962 | $ | 777,355 | $ | 1,339,369 | $ | 1,285,106 | ||||||||
On September 11, 2014, as part of the Financings we repurchased approximately $23.5 million aggregate principal amount of our 3.25% Convertible Notes and $4.0 million on our 6.00% Convertible Notes. See Note 6 for more information. | ||||||||||||||||
The carrying value of the financial liabilities listed above is comprised of the principal amount reduced by the unamortized underwriting discount and unamortized issuance costs. In addition, for each of our convertible notes the principal amount is further reduced by the unamortized discount representing the value of the respective equity components at issuance. See Note 6 for more information. | ||||||||||||||||
The fair value of the financial liabilities listed above, which are all classified in Level 1, is based on the last available market trade of each reporting period. Our Debentures, Term Loans and Equipment Financings are not actively traded, and the difference between their carrying value and fair value is impractical to estimate. The carrying amount of certain other financial instruments, such as trade accounts receivables, trade accounts payable, accrued expenses, bank loans and capital lease obligations approximate fair value and, therefore, have been excluded from the table above. |
Subsidiary_Guarantor_Financial
Subsidiary Guarantor Financial Information | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||||||||||
Subsidiary Guarantor Financial Information | ' | |||||||||||||||||||
Subsidiary Guarantor Financial Information | ||||||||||||||||||||
The Senior Notes are fully, unconditionally and jointly and severally guaranteed by all of Molycorp, Inc.'s 100% owned 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. | ||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Condensed Consolidating Balance Sheets | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Molycorp, Inc. consolidated | |||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 209,255 | $ | 8,399 | $ | 95,823 | $ | — | $ | 313,477 | ||||||||||
Trade accounts receivable, net | — | 4,360 | 48,869 | — | 53,229 | |||||||||||||||
Inventory | — | 34,217 | 132,719 | — | 166,936 | |||||||||||||||
Prepaid expenses and other current assets | — | 15,028 | 12,147 | — | 27,175 | |||||||||||||||
Total current assets | 209,255 | 62,004 | 289,558 | — | 560,817 | |||||||||||||||
Non-current assets: | ||||||||||||||||||||
Deposits | 1,756 | 28,243 | — | — | 29,999 | |||||||||||||||
Property, plant and equipment, net | — | 1,607,027 | 129,845 | — | 1,736,872 | |||||||||||||||
Inventory | — | 25,530 | — | — | 25,530 | |||||||||||||||
Intangible assets, net | — | 393 | 312,485 | — | 312,878 | |||||||||||||||
Investments | — | 17,016 | 15,194 | — | 32,210 | |||||||||||||||
Goodwill | — | — | 228,750 | — | 228,750 | |||||||||||||||
Investments in consolidated subsidiaries | 340,620 | 117,098 | — | (457,718 | ) | — | ||||||||||||||
Intercompany accounts receivable | 1,943,181 | — | 117,941 | (2,061,122 | ) | — | ||||||||||||||
Other non-current assets | 17,701 | 7,929 | 8,573 | — | 34,203 | |||||||||||||||
Total non-current assets | 2,303,258 | 1,803,236 | 812,788 | (2,518,840 | ) | 2,400,442 | ||||||||||||||
Total assets | $ | 2,512,513 | $ | 1,865,240 | $ | 1,102,346 | $ | (2,518,840 | ) | $ | 2,961,259 | |||||||||
Current liabilities: | ||||||||||||||||||||
Trade accounts payable | $ | — | $ | 30,434 | $ | 27,838 | $ | — | $ | 58,272 | ||||||||||
Accrued expenses | 25,048 | 18,159 | 23,520 | — | 66,727 | |||||||||||||||
Debt and capital lease obligations | — | 3,160 | 9,609 | — | 12,769 | |||||||||||||||
Other current liabilities | — | 352 | 6,570 | — | 6,922 | |||||||||||||||
Total current liabilities | 25,048 | 52,105 | 67,537 | — | 144,690 | |||||||||||||||
Non-current liabilities: | ||||||||||||||||||||
Asset retirement obligation | — | 16,681 | — | — | 16,681 | |||||||||||||||
Deferred tax liabilities | — | — | 75,162 | — | 75,162 | |||||||||||||||
Debt and capital lease obligations | 1,381,945 | 144,638 | 56,219 | — | 1,582,802 | |||||||||||||||
Intercompany accounts payable | — | 2,061,122 | — | (2,061,122 | ) | — | ||||||||||||||
Other non-current liabilities | 4,203 | 1,414 | 8,669 | — | 14,286 | |||||||||||||||
Total non-current liabilities | 1,386,148 | 2,223,855 | 140,050 | (2,061,122 | ) | 1,688,931 | ||||||||||||||
Total liabilities | $ | 1,411,196 | $ | 2,275,960 | $ | 207,587 | $ | (2,061,122 | ) | $ | 1,833,621 | |||||||||
Stockholders’ equity: | ||||||||||||||||||||
Common stock | 245 | — | — | — | 245 | |||||||||||||||
Additional paid-in capital | 2,232,390 | 149,857 | 1,315,426 | (1,465,283 | ) | 2,232,390 | ||||||||||||||
Accumulated other comprehensive loss | (15,704 | ) | — | (15,704 | ) | 15,704 | (15,704 | ) | ||||||||||||
Accumulated deficit | (1,115,614 | ) | (560,577 | ) | (431,284 | ) | 991,861 | (1,115,614 | ) | |||||||||||
Total Molycorp stockholders’ equity | 1,101,317 | (410,720 | ) | 868,438 | (457,718 | ) | 1,101,317 | |||||||||||||
Noncontrolling interests | — | — | 26,321 | — | 26,321 | |||||||||||||||
Total stockholders’ equity | 1,101,317 | (410,720 | ) | 894,759 | (457,718 | ) | 1,127,638 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 2,512,513 | $ | 1,865,240 | $ | 1,102,346 | $ | (2,518,840 | ) | $ | 2,961,259 | |||||||||
31-Dec-13 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Condensed Consolidating Balance Sheets | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Molycorp, Inc. consolidated | |||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 169,145 | $ | 6,467 | $ | 138,705 | $ | — | $ | 314,317 | ||||||||||
Trade accounts receivable, net | — | 4,990 | 56,767 | — | 61,757 | |||||||||||||||
Inventory | — | 32,307 | 139,476 | — | 171,783 | |||||||||||||||
Prepaid expenses and other current assets | — | 15,833 | 13,377 | — | 29,210 | |||||||||||||||
Total current assets | 169,145 | 59,597 | 348,325 | — | 577,067 | |||||||||||||||
Non-current assets: | ||||||||||||||||||||
Deposits | 1,754 | 24,243 | — | — | 25,997 | |||||||||||||||
Property, plant and equipment, net | — | 1,620,851 | 142,023 | — | 1,762,874 | |||||||||||||||
Inventory | — | 25,329 | — | — | 25,329 | |||||||||||||||
Intangible assets, net | — | 442 | 330,425 | — | 330,867 | |||||||||||||||
Investments | — | 34,134 | 14,741 | — | 48,875 | |||||||||||||||
Goodwill | — | — | 228,750 | — | 228,750 | |||||||||||||||
Investments in consolidated subsidiaries | 532,767 | 121,849 | — | (654,616 | ) | — | ||||||||||||||
Intercompany accounts receivable | 2,001,583 | — | — | (2,001,583 | ) | — | ||||||||||||||
Other non-current assets | — | 771 | 6,272 | — | 7,043 | |||||||||||||||
Total non-current assets | 2,536,104 | 1,827,619 | 722,211 | (2,656,199 | ) | 2,429,735 | ||||||||||||||
Total assets | $ | 2,705,249 | $ | 1,887,216 | $ | 1,070,536 | $ | (2,656,199 | ) | $ | 3,006,802 | |||||||||
Current liabilities: | ||||||||||||||||||||
Trade accounts payable | $ | — | $ | 49,702 | $ | 34,747 | $ | — | $ | 84,449 | ||||||||||
Accrued expenses | 18,158 | 13,782 | 16,561 | — | 48,501 | |||||||||||||||
Debt and capital lease obligations | — | 2,234 | 14,128 | — | 16,362 | |||||||||||||||
Other current liabilities | — | 617 | 3,446 | — | 4,063 | |||||||||||||||
Total current liabilities | 18,158 | 66,335 | 68,882 | — | 153,375 | |||||||||||||||
Non-current liabilities: | ||||||||||||||||||||
Asset retirement obligation | — | 16,966 | — | — | 16,966 | |||||||||||||||
Deferred tax liabilities | — | — | 85,481 | — | 85,481 | |||||||||||||||
Debt and capital lease obligations | 1,339,368 | 19,355 | 5,193 | — | 1,363,916 | |||||||||||||||
Intercompany accounts payable | — | 1,999,562 | 2,021 | (2,001,583 | ) | — | ||||||||||||||
Other non-current liabilities | — | 1,393 | 8,609 | — | 10,002 | |||||||||||||||
Total non-current liabilities | 1,339,368 | 2,037,276 | 101,304 | (2,001,583 | ) | 1,476,365 | ||||||||||||||
Total liabilities | $ | 1,357,526 | $ | 2,103,611 | $ | 170,186 | $ | (2,001,583 | ) | $ | 1,629,740 | |||||||||
Stockholders’ equity: | ||||||||||||||||||||
Common stock | 241 | — | — | — | 241 | |||||||||||||||
Preferred stock | 2 | — | — | — | 2 | |||||||||||||||
Additional paid-in capital | 2,194,405 | 149,857 | 1,315,426 | (1,465,283 | ) | 2,194,405 | ||||||||||||||
Accumulated other comprehensive loss | (6,451 | ) | — | (6,451 | ) | 6,451 | (6,451 | ) | ||||||||||||
Accumulated deficit | (840,474 | ) | (366,252 | ) | (437,964 | ) | 804,216 | (840,474 | ) | |||||||||||
Total Molycorp stockholders’ equity | 1,347,723 | (216,395 | ) | 871,011 | (654,616 | ) | 1,347,723 | |||||||||||||
Noncontrolling interests | — | — | 29,339 | — | 29,339 | |||||||||||||||
Total stockholders’ equity | 1,347,723 | (216,395 | ) | 900,350 | (654,616 | ) | 1,377,062 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 2,705,249 | $ | 1,887,216 | $ | 1,070,536 | $ | (2,656,199 | ) | $ | 3,006,802 | |||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Molycorp, Inc. consolidated | |||||||||||||||
Revenues | $ | — | $ | 19,163 | $ | 115,150 | $ | (10,376 | ) | $ | 123,937 | |||||||||
Costs of sales: | ||||||||||||||||||||
Costs excluding depreciation and amortization | — | (45,596 | ) | (84,413 | ) | 10,376 | (119,633 | ) | ||||||||||||
Depreciation and amortization | — | (16,460 | ) | (2,922 | ) | — | (19,382 | ) | ||||||||||||
Gross (loss) profit | — | (42,893 | ) | 27,815 | — | (15,078 | ) | |||||||||||||
Operating expenses: | ||||||||||||||||||||
Selling, general and administrative | (4 | ) | (11,233 | ) | (10,670 | ) | — | (21,907 | ) | |||||||||||
Depreciation, amortization and accretion | — | (952 | ) | (7,141 | ) | — | (8,093 | ) | ||||||||||||
Research and development | — | (111 | ) | (4,242 | ) | — | (4,353 | ) | ||||||||||||
Impairment of long-lived assets | — | — | — | — | — | |||||||||||||||
Operating (loss) income | (4 | ) | (55,189 | ) | 5,762 | — | (49,431 | ) | ||||||||||||
Other (expense) income: | ||||||||||||||||||||
Other (expense) income | (21,778 | ) | 90 | 19,077 | — | (2,611 | ) | |||||||||||||
Impairment of investment | — | (12,000 | ) | — | — | (12,000 | ) | |||||||||||||
Interest expense, net of capitalized interest | (33,201 | ) | (1,894 | ) | (347 | ) | — | (35,442 | ) | |||||||||||
Interest income (expense) from intercompany notes | 10,047 | (537 | ) | (9,510 | ) | — | — | |||||||||||||
Equity loss from consolidated subsidiaries | (60,243 | ) | (3,065 | ) | — | 63,308 | — | |||||||||||||
(Loss) income before income taxes and equity earnings | (105,179 | ) | (72,595 | ) | 14,982 | 63,308 | (99,484 | ) | ||||||||||||
Income tax expense | — | — | (3,572 | ) | — | (3,572 | ) | |||||||||||||
Equity in loss of affiliates | — | (1,820 | ) | (272 | ) | — | (2,092 | ) | ||||||||||||
Net (loss) income | (105,179 | ) | (74,415 | ) | 11,138 | 63,308 | (105,148 | ) | ||||||||||||
Net income attributable to noncontrolling interest | — | — | (31 | ) | — | (31 | ) | |||||||||||||
Net (loss) income attributable to Molycorp stockholders | $ | (105,179 | ) | $ | (74,415 | ) | $ | 11,107 | $ | 63,308 | $ | (105,179 | ) | |||||||
Net (loss) income | $ | (105,179 | ) | $ | (74,415 | ) | $ | 11,138 | $ | 63,308 | $ | (105,148 | ) | |||||||
Other comprehensive loss: | ||||||||||||||||||||
Foreign currency translation adjustments | — | — | (8,292 | ) | — | (8,292 | ) | |||||||||||||
Comprehensive (loss) income | $ | (105,179 | ) | $ | (74,415 | ) | $ | 2,846 | $ | 63,308 | $ | (113,440 | ) | |||||||
Comprehensive (loss) income attributable to: | ||||||||||||||||||||
Molycorp stockholders | (105,179 | ) | (74,415 | ) | 2,877 | 63,308 | (113,409 | ) | ||||||||||||
Noncontrolling interest | — | — | (31 | ) | — | (31 | ) | |||||||||||||
$ | (105,179 | ) | $ | (74,415 | ) | $ | 2,846 | $ | 63,308 | $ | (113,440 | ) | ||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Molycorp, Inc. consolidated | |||||||||||||||
Revenues | $ | — | $ | 48,402 | $ | 342,201 | $ | (31,234 | ) | $ | 359,369 | |||||||||
Costs of sales: | ||||||||||||||||||||
Costs excluding depreciation and amortization | — | (137,465 | ) | (252,275 | ) | 31,234 | (358,506 | ) | ||||||||||||
Depreciation and amortization | — | (44,618 | ) | (10,990 | ) | — | (55,608 | ) | ||||||||||||
Gross (loss) profit | — | (133,681 | ) | 78,936 | — | (54,745 | ) | |||||||||||||
Operating expenses: | ||||||||||||||||||||
Selling, general and administrative | (397 | ) | (29,828 | ) | (30,061 | ) | — | (60,286 | ) | |||||||||||
Depreciation, amortization and accretion | — | (3,054 | ) | (19,498 | ) | — | (22,552 | ) | ||||||||||||
Research and development | — | (354 | ) | (11,249 | ) | — | (11,603 | ) | ||||||||||||
Impairment of long-lived assets | — | — | — | — | — | |||||||||||||||
Operating (loss) income | (397 | ) | (166,917 | ) | 18,128 | — | (149,186 | ) | ||||||||||||
Other (expense) income: | ||||||||||||||||||||
Other (expense) income | (24,900 | ) | 302 | 22,759 | — | (1,839 | ) | |||||||||||||
Impairment of investment | — | (12,000 | ) | — | — | (12,000 | ) | |||||||||||||
Interest expense, net of capitalized interest | (107,415 | ) | (4,289 | ) | (663 | ) | — | (112,367 | ) | |||||||||||
Interest income (expense) from intercompany notes | 30,836 | (1,551 | ) | (29,285 | ) | — | — | |||||||||||||
Equity loss from consolidated subsidiaries | (182,894 | ) | (4,751 | ) | — | 187,645 | — | |||||||||||||
(Loss) income before income taxes and equity earnings | (284,770 | ) | (189,206 | ) | 10,939 | 187,645 | (275,392 | ) | ||||||||||||
Income tax benefit (expense) | 9,630 | — | (3,868 | ) | — | 5,762 | ||||||||||||||
Equity in loss of affiliates | — | (5,119 | ) | (249 | ) | — | (5,368 | ) | ||||||||||||
Net (loss) income | (275,140 | ) | (194,325 | ) | 6,822 | 187,645 | (274,998 | ) | ||||||||||||
Net income attributable to noncontrolling interest | — | — | (142 | ) | — | (142 | ) | |||||||||||||
Net (loss) income attributable to Molycorp stockholders | $ | (275,140 | ) | $ | (194,325 | ) | $ | 6,680 | $ | 187,645 | $ | (275,140 | ) | |||||||
Net (loss) income | $ | (275,140 | ) | $ | (194,325 | ) | $ | 6,822 | $ | 187,645 | $ | (274,998 | ) | |||||||
Other comprehensive loss: | ||||||||||||||||||||
Foreign currency translation adjustments | — | — | (9,253 | ) | — | (9,253 | ) | |||||||||||||
Comprehensive loss | $ | (275,140 | ) | $ | (194,325 | ) | $ | (2,431 | ) | $ | 187,645 | $ | (284,251 | ) | ||||||
Comprehensive loss attributable to: | ||||||||||||||||||||
Molycorp stockholders | (275,140 | ) | (194,325 | ) | (2,289 | ) | 187,645 | (284,109 | ) | |||||||||||
Noncontrolling interest | — | — | (142 | ) | — | (142 | ) | |||||||||||||
$ | (275,140 | ) | $ | (194,325 | ) | $ | (2,431 | ) | $ | 187,645 | $ | (284,251 | ) | |||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Molycorp, Inc. consolidated | |||||||||||||||
Revenues | $ | — | $ | 19,237 | $ | 142,421 | $ | (12,592 | ) | $ | 149,066 | |||||||||
Costs of sales: | ||||||||||||||||||||
Costs excluding depreciation and amortization | — | (55,517 | ) | (107,519 | ) | 12,592 | (150,444 | ) | ||||||||||||
Depreciation and amortization | — | (9,336 | ) | (7,064 | ) | — | (16,400 | ) | ||||||||||||
Gross (loss) profit | — | (45,616 | ) | 27,838 | — | (17,778 | ) | |||||||||||||
Operating expenses: | ||||||||||||||||||||
Selling, general and administrative | (3 | ) | (15,623 | ) | (8,842 | ) | — | (24,468 | ) | |||||||||||
Depreciation, amortization and accretion | — | (1,597 | ) | (8,475 | ) | — | (10,072 | ) | ||||||||||||
Research and development | — | (1,037 | ) | (4,528 | ) | — | (5,565 | ) | ||||||||||||
Impairment of long-lived assets | — | — | (1,118 | ) | — | (1,118 | ) | |||||||||||||
Operating (loss) income | (3 | ) | (63,873 | ) | 4,875 | — | (59,001 | ) | ||||||||||||
Other (expense) income: | ||||||||||||||||||||
Other income (expense) | 1,731 | 63 | (2,685 | ) | — | (891 | ) | |||||||||||||
Interest expense, net of capitalized interest | (14,093 | ) | (744 | ) | (1,452 | ) | — | (16,289 | ) | |||||||||||
Interest income (expense) from intercompany notes | 9,211 | 1,412 | (10,623 | ) | — | — | ||||||||||||||
Equity loss from consolidated subsidiaries | (54,858 | ) | (333 | ) | — | 55,191 | — | |||||||||||||
Loss before income taxes and equity earnings | (58,012 | ) | (63,475 | ) | (9,885 | ) | 55,191 | (76,181 | ) | |||||||||||
Income tax (expense) benefit | (11,914 | ) | 14,879 | 9,937 | — | 12,902 | ||||||||||||||
Equity in loss of affiliates | — | (1,617 | ) | (717 | ) | — | (2,334 | ) | ||||||||||||
Loss from continuing operations | (69,926 | ) | (50,213 | ) | (665 | ) | 55,191 | (65,613 | ) | |||||||||||
Loss from discontinuing operations, net of tax | — | — | (4,186 | ) | — | (4,186 | ) | |||||||||||||
Net loss | (69,926 | ) | (50,213 | ) | (4,851 | ) | 55,191 | (69,799 | ) | |||||||||||
Net income attributable to noncontrolling interest | — | — | (130 | ) | — | (130 | ) | |||||||||||||
Net loss attributable to Molycorp stockholders | $ | (69,926 | ) | $ | (50,213 | ) | $ | (4,981 | ) | $ | 55,191 | $ | (69,929 | ) | ||||||
Net loss | $ | (69,926 | ) | $ | (50,213 | ) | $ | (4,851 | ) | $ | 55,191 | $ | (69,799 | ) | ||||||
Other comprehensive loss: | ||||||||||||||||||||
Foreign currency translation adjustments | — | — | 4,217 | — | 4,217 | |||||||||||||||
Comprehensive loss | $ | (69,926 | ) | $ | (50,213 | ) | $ | (634 | ) | $ | 55,191 | $ | (65,582 | ) | ||||||
Comprehensive loss attributable to: | ||||||||||||||||||||
Molycorp stockholders | (69,926 | ) | (50,213 | ) | (504 | ) | 55,191 | (65,452 | ) | |||||||||||
Noncontrolling interest | — | — | (130 | ) | — | (130 | ) | |||||||||||||
$ | (69,926 | ) | $ | (50,213 | ) | $ | (634 | ) | $ | 55,191 | $ | (65,582 | ) | |||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Loss | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Molycorp, Inc. consolidated | |||||||||||||||
Revenues | $ | — | $ | 68,014 | $ | 397,548 | $ | (34,982 | ) | $ | 430,580 | |||||||||
Costs of sales: | ||||||||||||||||||||
Costs excluding depreciation and amortization | — | (147,209 | ) | (309,472 | ) | 34,982 | (421,699 | ) | ||||||||||||
Depreciation and amortization | — | (28,523 | ) | (20,760 | ) | — | (49,283 | ) | ||||||||||||
Gross (loss) profit | — | (107,718 | ) | 67,316 | — | (40,402 | ) | |||||||||||||
Operating expenses: | ||||||||||||||||||||
Selling, general and administrative | (3 | ) | (49,126 | ) | (27,573 | ) | — | (76,702 | ) | |||||||||||
Depreciation, amortization and accretion | — | (3,258 | ) | (23,015 | ) | — | (26,273 | ) | ||||||||||||
Research and development | — | (4,428 | ) | (14,048 | ) | — | (18,476 | ) | ||||||||||||
Impairment of long-lived assets | — | — | (1,495 | ) | — | (1,495 | ) | |||||||||||||
Operating (loss) income | (3 | ) | (164,530 | ) | 1,185 | — | (163,348 | ) | ||||||||||||
Other (expense) income: | ||||||||||||||||||||
Other income | 1,731 | 306 | 437 | — | 2,474 | |||||||||||||||
Interest (expense) income, net | (39,978 | ) | (5,039 | ) | 2,210 | — | (42,807 | ) | ||||||||||||
Interest income (expense) from intercompany notes | 27,455 | 4,293 | (31,748 | ) | — | — | ||||||||||||||
Equity loss from consolidated subsidiaries | (163,247 | ) | (6,742 | ) | — | 169,989 | — | |||||||||||||
Loss before income taxes and equity earnings | (174,042 | ) | (171,712 | ) | (27,916 | ) | 169,989 | (203,681 | ) | |||||||||||
Income tax (expense) benefit | (6,030 | ) | 23,130 | 21,822 | — | 38,922 | ||||||||||||||
Equity in loss of affiliates | — | (5,239 | ) | (3,451 | ) | — | (8,690 | ) | ||||||||||||
Loss from continuing operations | (180,072 | ) | (153,821 | ) | (9,545 | ) | 169,989 | (173,449 | ) | |||||||||||
Loss from discontinuing operations, net of tax | — | — | (5,190 | ) | — | (5,190 | ) | |||||||||||||
Net loss | (180,072 | ) | (153,821 | ) | (14,735 | ) | 169,989 | (178,639 | ) | |||||||||||
Net income attributable to noncontrolling interest | — | — | (1,433 | ) | — | (1,433 | ) | |||||||||||||
Net loss attributable to Molycorp stockholders | $ | (180,072 | ) | $ | (153,821 | ) | $ | (16,168 | ) | $ | 169,989 | $ | (180,072 | ) | ||||||
Net loss | $ | (180,072 | ) | $ | (153,821 | ) | $ | (14,735 | ) | $ | 169,989 | $ | (178,639 | ) | ||||||
Other comprehensive loss: | ||||||||||||||||||||
Foreign currency translation adjustments | — | — | 1,585 | — | 1,585 | |||||||||||||||
Comprehensive loss | $ | (180,072 | ) | $ | (153,821 | ) | $ | (13,150 | ) | $ | 169,989 | $ | (177,054 | ) | ||||||
Comprehensive loss attributable to: | ||||||||||||||||||||
Molycorp stockholders | (180,072 | ) | (153,821 | ) | (11,717 | ) | 169,989 | (175,621 | ) | |||||||||||
Noncontrolling interest | — | — | (1,433 | ) | — | (1,433 | ) | |||||||||||||
$ | (180,072 | ) | $ | (153,821 | ) | $ | (13,150 | ) | $ | 169,989 | $ | (177,054 | ) | |||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Molycorp, Inc. consolidated | |||||||||||||||
Net cash used in operating activities | $ | (25,585 | ) | $ | (138,045 | ) | $ | 17,224 | $ | — | $ | (146,406 | ) | |||||||
Cash flows from investing activities: | ||||||||||||||||||||
Intercompany advances made | (174,993 | ) | (133,291 | ) | (58,309 | ) | 366,593 | — | ||||||||||||
Repayments from non-guarantor | 34,997 | — | — | (34,997 | ) | — | ||||||||||||||
Loans to guarantors | — | — | (6,655 | ) | 6,655 | — | ||||||||||||||
Investment in joint ventures | — | — | (703 | ) | — | (703 | ) | |||||||||||||
Capital expenditures | — | (56,837 | ) | (6,000 | ) | — | (62,837 | ) | ||||||||||||
Recovery from insurance claims | — | 12,900 | — | — | 12,900 | |||||||||||||||
Other investing activities | — | — | 460 | — | 460 | |||||||||||||||
Net cash used in investing activities | (139,996 | ) | (177,228 | ) | (71,207 | ) | 338,251 | (50,180 | ) | |||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Repayments of debt | — | — | (5,879 | ) | — | (5,879 | ) | |||||||||||||
Debt issuance costs | (4,032 | ) | (7,605 | ) | (3,131 | ) | — | (14,768 | ) | |||||||||||
Proceeds from the Financings | 50,167 | 139,833 | 60,000 | — | 250,000 | |||||||||||||||
Partial repayment of convertible notes | (27,495 | ) | — | — | — | (27,495 | ) | |||||||||||||
Payments of preferred dividends | (2,846 | ) | — | — | — | (2,846 | ) | |||||||||||||
Dividend paid to noncontrolling interests | — | — | (3,170 | ) | — | (3,170 | ) | |||||||||||||
Repayments to parent | — | — | (34,997 | ) | 34,997 | — | ||||||||||||||
Borrowing from non-guarantors | — | 6,655 | — | (6,655 | ) | — | ||||||||||||||
Intercompany advances owed | 190,160 | 176,433 | — | (366,593 | ) | — | ||||||||||||||
Other financing activities | (263 | ) | 1,889 | — | — | 1,626 | ||||||||||||||
Net cash (used in) provided by financing activities | 205,691 | 317,205 | 12,823 | (338,251 | ) | 197,468 | ||||||||||||||
Effect of exchange rate changes on cash | — | — | (1,722 | ) | — | (1,722 | ) | |||||||||||||
Net change in cash and cash equivalents | 40,110 | 1,932 | (42,882 | ) | — | (840 | ) | |||||||||||||
Cash and cash equivalents at beginning of the period | 169,145 | 6,467 | 138,705 | — | 314,317 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 209,255 | $ | 8,399 | $ | 95,823 | $ | — | $ | 313,477 | ||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
(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 | $ | (2,990 | ) | $ | (79,888 | ) | $ | (7,135 | ) | $ | — | $ | (90,013 | ) | ||||||
Cash flows from investing activities: | ||||||||||||||||||||
Loans to guarantor | — | — | (40,000 | ) | 40,000 | — | ||||||||||||||
Loans to parent | — | — | (12,800 | ) | 12,800 | — | ||||||||||||||
Intercompany advances made | (438,374 | ) | — | — | 438,374 | — | ||||||||||||||
Loans to non-guarantor | — | (1,300 | ) | — | 1,300 | — | ||||||||||||||
Repayments from non-guarantor | 38,000 | 264 | — | (38,264 | ) | — | ||||||||||||||
Investment in joint ventures | — | (3,423 | ) | — | — | (3,423 | ) | |||||||||||||
Capital expenditures | — | (320,829 | ) | (13,768 | ) | — | (334,597 | ) | ||||||||||||
Other investing activities | — | — | (364 | ) | — | (364 | ) | |||||||||||||
Net cash used in investing activities | (400,374 | ) | (325,288 | ) | (66,932 | ) | 454,210 | (338,384 | ) | |||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Repayments of debt | — | — | (25,990 | ) | — | (25,990 | ) | |||||||||||||
Net proceeds from sale of common stock | 248,150 | — | — | — | 248,150 | |||||||||||||||
Issuance of 5.50% Convertible Notes | 165,600 | — | — | — | 165,600 | |||||||||||||||
Payments of preferred dividends | (8,539 | ) | — | — | — | (8,539 | ) | |||||||||||||
Dividend paid to noncontrolling interests | — | — | (4,472 | ) | — | (4,472 | ) | |||||||||||||
Borrowings from non-guarantor | 12,800 | 40,000 | — | (52,800 | ) | — | ||||||||||||||
Borrowing from guarantor | — | — | 1,300 | (1,300 | ) | — | ||||||||||||||
Repayments to parent | — | — | (38,000 | ) | 38,000 | — | ||||||||||||||
Repayment to guarantor | — | — | (264 | ) | 264 | — | ||||||||||||||
Intercompany advances owed | — | 356,867 | 81,507 | (438,374 | ) | — | ||||||||||||||
Other financing activities | — | (797 | ) | — | — | (797 | ) | |||||||||||||
Net cash provided by (used in) financing activities | 418,011 | 396,070 | 14,081 | (454,210 | ) | 373,952 | ||||||||||||||
Effect of exchange rate changes on cash | — | — | 569 | — | 569 | |||||||||||||||
Net change in cash and cash equivalents | 14,647 | (9,106 | ) | (59,417 | ) | — | (53,876 | ) | ||||||||||||
Cash and cash equivalents at beginning of the period | 16,560 | 18,020 | 193,210 | — | 227,790 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 31,207 | $ | 8,914 | $ | 133,793 | $ | — | $ | 173,914 | ||||||||||
Impairment_of_Investment_Notes
Impairment of Investment (Notes) | 9 Months Ended |
Sep. 30, 2014 | |
Investments, All Other Investments [Abstract] | ' |
Impairment of Investment | ' |
Impairment of Investment | |
In September 2011, we invested $20.0 million in Boulder Wind Power, Inc. ("BWP") Series B convertible preferred stock that we accounted for at cost. BWP is a company engaged in the development of permanent magnet generators and power conversion technology. At December 31, 2013, due to certain delays in the commercialization of BWP's technology, we reassessed the carrying value of this investment and determined to write it down to $12.0 million. In the third quarter of 2014, the Board of Directors of BWP approved a plan to wind-down BWP's day-to-day operations and pursue potential sales opportunities for its portfolio of intellectual properties. Due to the current status of BWP operations and uncertainty around the timing and amount of any future value from the investment in BWP, we recognized an impairment charge of $12.0 million for the three and nine months ended September 30, 2014 in "Other (expense) income" in the condensed consolidated statement of operations and comprehensive loss to write-off the remaining investment balance in BWP. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 9 Months Ended | |
Sep. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
Basis of Presentation | ' | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and Regulation S-X promulgated under the Exchange Act, and reflect all adjustments that are normal and recurring in nature, which, in the opinion of management, are necessary for the fair presentation of our financial position, results of operations and cash flows at September 30, 2014, and for all periods presented. While the December 31, 2013 balance sheet information was derived from our audited financial statements, for interim periods, GAAP and Regulation S-X do not require all information and related disclosures that are required in the annual financial statements and, as a result, all disclosures required by GAAP and Regulation S-X for annual financial statements have not been included in this report. Therefore, the accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes for the year ended December 31, 2013 included in our Annual Report on Form 10-K filed with the SEC on March 3, 2014. | ||
The unaudited condensed consolidated financial statements include our accounts and the accounts of our wholly-owned and majority-owned subsidiaries. Intercompany balances and transactions have been eliminated on consolidation. Investments in joint ventures where we do not exert control, but have the ability to exercise significant influence over the operating and financial policies of the investee, are accounted for under the equity method of investment. All other investments are accounted for at cost. | ||
Use of Estimates | ' | |
Use of Estimates | ||
The preparation of the financial statements, in accordance with GAAP, requires us 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. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ significantly from these estimates under different assumptions and conditions. Significant estimates we made 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, intangible assets, goodwill and investments, capital leases, uncertain tax positions, the realizability of deferred tax assets, and the adequacy of the asset retirement obligation. | ||
Significant Accounting Policies | ' | |
Significant Accounting Policies | ||
A summary of our significant accounting policies can be found in Item 8, Note 2 of the audited consolidated financial statements for the year ended December 31, 2013 included in our Annual Report on Form 10-K filed with the SEC on March 3, 2014. | ||
Recent Accounting Pronouncements | ' | |
Recent Accounting Pronouncements | ||
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This update provides guidance about management’s responsibilities in evaluating an entity’s going concern uncertainties, and about the timing and content of related footnote disclosures. Under this amended guidance, an entity’s management should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable). Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued (or at the date that the financial statements are available to be issued when applicable). Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued (or available to be issued). The term probable is used consistently with its use in Topic 450, Contingencies. When management identifies conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern, management should consider whether its plans that are intended to mitigate those relevant conditions or events will alleviate the substantial doubt. The mitigating effect of management’s plans should be considered only to the extent that (1) it is probable that the plans will be effectively implemented and, if so, (2) it is probable that the plans will mitigate the conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. If conditions or events raise substantial doubt about an entity’s ability to continue as a going concern, but the substantial doubt is alleviated as a result of consideration of management’s plans, the entity should disclose information that enables users of the financial statements to understand all of the following (or refer to similar information disclosed elsewhere in the footnotes): | ||
a. Principal conditions or events that raised substantial doubt about the entity’s ability to continue as a going concern (before consideration of management’s plans); | ||
b. Management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations; and | ||
c. Management’s plans that alleviated substantial doubt about the entity’s ability to continue as a going concern. | ||
If conditions or events raise substantial doubt about an entity’s ability to continue as a going concern, and substantial doubt is not alleviated after consideration of management’s plans, an entity should include a statement in the footnotes indicating that there is substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or available to be issued). Additionally, the entity should disclose information that enables users of the financial statements to understand all of the following: | ||
a. Principal conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern; | ||
b. Management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations; and | ||
c. Management’s plans that are intended to mitigate the conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. | ||
This update is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. | ||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The core principle of this new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: | ||
Step 1: Identify the contract(s) with a customer. | ||
Step 2: Identify the performance obligations in the contract. | ||
Step 3: Determine the transaction price. | ||
Step 4: Allocate the transaction price to the performance obligations in the contract. | ||
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. | ||
The new guidance also specifies the accounting for some costs to obtain or fulfill a contract with a customer. An entity will be required to disclose sufficient qualitative and quantitative information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. For calendar-year public entities, the new guidance is effective starting in 2017, and interim periods within that year. Early adoption is not permitted. An entity should apply the amendments in this update using one of the following two methods: | ||
1 | Retrospectively to each prior reporting period presented. | |
2 | Retrospectively with the cumulative effect of initially applying this update recognized at the date of initial application. If an entity elects this transition method, it also should provide the additional disclosures in reporting periods that include the date of initial application of: | |
i. | The amount by which each financial statement line item is affected in the current reporting period by the application of this update as compared to the guidance that was in effect before the change. | |
ii. | An explanation of the reasons for significant changes. | |
We are in the process of evaluating which of the two methods we will apply to adopt the amendments, and whether this new guidance will have a material impact on our financial statements and related disclosures. |
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||
Schedule of segment information | ' | |||||||||||||||||||||||||||
Three months ended September 30, 2014 | Resources | Chemicals and Oxides | Magnetic Materials and Alloys | Rare Metals | Corporate and other (a) | Eliminations(b) | Total Molycorp, Inc. | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
External | $ | 4,509 | $ | 36,814 | $ | 61,345 | $ | 21,269 | $ | — | $ | 123,937 | ||||||||||||||||
Inter-segment | 9,424 | 6,658 | 1,342 | — | (17,424 | ) | — | |||||||||||||||||||||
Total revenues | $ | 13,933 | $ | 43,472 | $ | 62,687 | $ | 21,269 | $ | (17,424 | ) | $ | 123,937 | |||||||||||||||
OIBDA | $ | (31,087 | ) | $ | 4,251 | $ | 13,715 | $ | 595 | |||||||||||||||||||
Depreciation, amortization and accretion | (17,332 | ) | (3,823 | ) | (4,232 | ) | (2,034 | ) | ||||||||||||||||||||
Operating (loss) income | $ | (48,419 | ) | $ | 428 | $ | 9,483 | $ | (1,439 | ) | $ | (9,065 | ) | $ | (419 | ) | $ | (49,431 | ) | |||||||||
Other expense | (2,611 | ) | ||||||||||||||||||||||||||
Impairment of investment | (12,000 | ) | ||||||||||||||||||||||||||
Interest expense, net of capitalized interest | (35,442 | ) | ||||||||||||||||||||||||||
Loss before income taxes and equity earnings | $ | (99,484 | ) | |||||||||||||||||||||||||
Three months ended September 30, 2013 | Resources | Chemicals and Oxides | Magnetic Materials and Alloys | Rare Metals | Corporate and other (a) | Eliminations(b) | Total Molycorp, Inc. | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
External | $ | 4,655 | $ | 50,791 | $ | 72,626 | $ | 20,994 | — | $ | 149,066 | |||||||||||||||||
Inter-segment | 8,858 | 7,174 | — | — | (16,032 | ) | — | |||||||||||||||||||||
Total revenues | $ | 13,513 | $ | 57,965 | $ | 72,626 | $ | 20,994 | $ | (16,032 | ) | $ | 149,066 | |||||||||||||||
OIBDA | $ | (44,673 | ) | $ | 4,561 | $ | 18,520 | $ | (911 | ) | ||||||||||||||||||
Depreciation, amortization and accretion | (10,853 | ) | (5,960 | ) | (7,458 | ) | (2,144 | ) | ||||||||||||||||||||
Operating (loss) income | $ | (55,526 | ) | $ | (1,399 | ) | $ | 11,062 | $ | (3,055 | ) | $ | (10,806 | ) | $ | 723 | $ | (59,001 | ) | |||||||||
Other expense | (891 | ) | ||||||||||||||||||||||||||
Interest expense, net of capitalized interest | (16,289 | ) | ||||||||||||||||||||||||||
Loss before income taxes and equity earnings | $ | (76,181 | ) | |||||||||||||||||||||||||
Nine months ended September 30, 2014 | Resources | Chemicals and Oxides | Magnetic Materials and Alloys | Rare Metals | Corporate and other (a) | Eliminations(b) | Total Molycorp, Inc. | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
External | $ | 9,951 | $ | 122,521 | $ | 169,260 | $ | 57,637 | $ | — | $ | 359,369 | ||||||||||||||||
Inter-segment | 29,582 | 16,138 | 3,725 | — | (49,445 | ) | — | |||||||||||||||||||||
Total revenues | $ | 39,533 | $ | 138,659 | $ | 172,985 | $ | 57,637 | $ | (49,445 | ) | $ | 359,369 | |||||||||||||||
OIBDA | $ | (97,831 | ) | $ | 12,388 | $ | 39,203 | $ | 1,265 | |||||||||||||||||||
Depreciation, amortization and accretion | (47,432 | ) | (11,605 | ) | (12,730 | ) | (6,228 | ) | ||||||||||||||||||||
Operating (loss) income | $ | (145,263 | ) | $ | 783 | $ | 26,473 | $ | (4,963 | ) | $ | (25,259 | ) | $ | (957 | ) | $ | (149,186 | ) | |||||||||
Other expense | (1,839 | ) | ||||||||||||||||||||||||||
Impairment of investment | (12,000 | ) | ||||||||||||||||||||||||||
Interest expense, net of capitalized interest | (112,367 | ) | ||||||||||||||||||||||||||
Loss before income taxes and equity earnings | $ | (275,392 | ) | |||||||||||||||||||||||||
Nine months ended September 30, 2013 | Resources | Chemicals and Oxides | Magnetic Materials and Alloys | Rare Metals | Corporate and other (a) | Eliminations(b) | Total Molycorp, Inc. | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
External | $ | 30,235 | $ | 135,180 | $ | 193,417 | $ | 71,748 | $ | — | $ | 430,580 | ||||||||||||||||
Inter-segment | 18,168 | 28,476 | — | — | (46,644 | ) | — | |||||||||||||||||||||
Total revenues | $ | 48,403 | $ | 163,656 | $ | 193,417 | $ | 71,748 | $ | (46,644 | ) | $ | 430,580 | |||||||||||||||
OIBDA | $ | (104,519 | ) | $ | (2,792 | ) | $ | 48,823 | $ | 3,947 | ||||||||||||||||||
Depreciation, amortization and accretion | (31,536 | ) | (17,087 | ) | (20,360 | ) | (6,402 | ) | ||||||||||||||||||||
Operating (loss) income | $ | (136,055 | ) | $ | (19,879 | ) | $ | 28,463 | $ | (2,455 | ) | $ | (32,321 | ) | $ | (1,101 | ) | $ | (163,348 | ) | ||||||||
Other income | 2,474 | |||||||||||||||||||||||||||
Interest expense, net of capitalized interest | (42,807 | ) | ||||||||||||||||||||||||||
Loss before income taxes and equity earnings | $ | (203,681 | ) |
Inventory_Tables
Inventory (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Inventory Disclosure [Abstract] | ' | |||||||||||||||
Schedule of inventory | ' | |||||||||||||||
At September 30, 2014 and December 31, 2013, our inventory consisted of the following: | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
(In thousands) | ||||||||||||||||
Current: | ||||||||||||||||
Concentrate stockpiles | $ | — | $ | 24 | ||||||||||||
Raw materials | 52,215 | 42,627 | ||||||||||||||
Work in process | 25,254 | 41,962 | ||||||||||||||
Finished goods | 62,397 | 65,662 | ||||||||||||||
Materials and supplies | 27,070 | 21,508 | ||||||||||||||
Total current | $ | 166,936 | $ | 171,783 | ||||||||||||
Long-term: | ||||||||||||||||
Concentrate stockpiles | $ | — | $ | 4 | ||||||||||||
Raw materials | 25,530 | 25,325 | ||||||||||||||
Total long-term | $ | 25,530 | $ | 25,329 | ||||||||||||
Schedule of charges to cost of sales based on normal production levels and write-down of inventory | ' | |||||||||||||||
The following table presents charges to costs of sales related to our assessment of normal production levels and write-downs of inventory: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In thousands) | ||||||||||||||||
Abnormal production costs expensed in the period (a) | $ | 28,889 | $ | 18,249 | $ | 71,436 | $ | 65,743 | ||||||||
Write-down to the lower of cost or market (b) | 14,776 | 19,633 | 50,296 | 60,733 | ||||||||||||
Write-downs of stockpile inventory (c) | — | 6,884 | 1,342 | 13,741 | ||||||||||||
Total | $ | 43,665 | $ | 44,766 | $ | 123,074 | $ | 140,217 | ||||||||
(a) | Relates to production costs that would have been inventoriable had we been operating at normal production levels. In all periods presented, the majority of these production costs related to the Resources segment. | |||||||||||||||
(b) | Due to the decline in some rare earths prices and low inventory turnover. | |||||||||||||||
(c) | Adjustments of the estimated REO content in the stockpile at the Resources segment. |
Property_Plant_and_Equipment_n1
Property, Plant and Equipment, net (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Schedule of property, plant and equipment | ' | |||||||
At September 30, 2014 and December 31, 2013, our property, plant and equipment consisted of the following: | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Land | $ | 12,045 | $ | 12,822 | ||||
Land improvements | 304,659 | 327,029 | ||||||
Buildings and improvements | 609,337 | 418,510 | ||||||
Plant and equipment | 509,562 | 288,603 | ||||||
Vehicles | 2,982 | 2,986 | ||||||
Computer software | 12,573 | 12,424 | ||||||
Furniture and fixtures | 1,196 | 1,044 | ||||||
Construction in progress (a) | 394,572 | 755,107 | ||||||
Natural gas delivery facility under capital lease | 15,658 | 15,658 | ||||||
Mining equipment under capital lease | 10,982 | 7,370 | ||||||
Mineral properties | 23,757 | 23,999 | ||||||
Property, plant and equipment at cost | 1,897,323 | 1,865,552 | ||||||
Less accumulated depreciation | (160,451 | ) | (102,678 | ) | ||||
Property, plant and equipment, net | $ | 1,736,872 | $ | 1,762,874 | ||||
(a) | Primarily related to expenditures at the Mountain Pass facility. | |||||||
Debt_and_Capital_Lease_Obligat1
Debt and Capital Lease Obligations (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | ' | |||||||||||||||||||||||||||
The following table provides a summary of the current and non-current portions of our debt outstanding and capital lease obligations at September 30, 2014 and December 31, 2013: | ||||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||
Current | Non-Current | Current | Non-Current | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Bank loans due May 2014 - September 2017 | $ | 9,609 | $ | 1,486 | $ | 14,128 | $ | 2,699 | ||||||||||||||||||||
3.25% Convertible Notes, net of discount, due June 2016 | — | 191,743 | — | 207,028 | ||||||||||||||||||||||||
6.00% Convertible Notes, net of discount, due September 2017 | — | 355,614 | — | 346,708 | ||||||||||||||||||||||||
5.00% Debentures, net of discount, due December 2017 | — | 2,129 | — | 2,493 | ||||||||||||||||||||||||
5.50% Convertible Notes, net of discount, due February 2018 | — | 152,084 | — | 148,198 | ||||||||||||||||||||||||
12.00% Term Loans, due September 2019 | — | 96,595 | — | — | ||||||||||||||||||||||||
12.00% Equipment Financing, due September 2019 | — | 124,583 | — | — | ||||||||||||||||||||||||
10% Senior Notes, net of discount, due June 2020 | — | 638,521 | — | 637,435 | ||||||||||||||||||||||||
Total debt | 9,609 | 1,562,755 | 14,128 | 1,344,561 | ||||||||||||||||||||||||
Capital lease obligations | 3,160 | 20,047 | 2,234 | 19,355 | ||||||||||||||||||||||||
Total debt and capital lease obligations | $ | 12,769 | $ | 1,582,802 | $ | 16,362 | $ | 1,363,916 | ||||||||||||||||||||
Schedule of Maturities of Long-term Debt | ' | |||||||||||||||||||||||||||
Scheduled minimum debt repayments, excluding capital lease obligations, were as follows at September 30, 2014: | ||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||
Debt maturities, excluding capital leases | (In thousands) | |||||||||||||||||||||||||||
Remainder of 2014 | 2,040 | |||||||||||||||||||||||||||
2015 | 7,997 | |||||||||||||||||||||||||||
2016 | 207,331 | |||||||||||||||||||||||||||
2017 | 412,573 | |||||||||||||||||||||||||||
2018 | 172,500 | |||||||||||||||||||||||||||
Thereafter | 971,154 | |||||||||||||||||||||||||||
Total | 1,773,595 | |||||||||||||||||||||||||||
As of September 30, 2014, we were in compliance with all applicable covenants related to our indebtedness | ||||||||||||||||||||||||||||
Reconciliation of Principal to Net Carrying Amount of Long-term Debt | ' | |||||||||||||||||||||||||||
The following table presents a reconciliation of the principal amount to the net carrying value of the Term Loans and the Equipment Financing at September 30, 2014: | ||||||||||||||||||||||||||||
12.00% Term Loans | 12.00% Equipment Financing | |||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||
2014 | 2014 | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Principal amount (a) | $ | 110,473 | $ | 140,069 | ||||||||||||||||||||||||
Unamortized debt discount | (13,878 | ) | (15,486 | ) | ||||||||||||||||||||||||
Net carrying amount | $ | 96,595 | $ | 124,583 | ||||||||||||||||||||||||
(a) Includes PIK interest accretion. | ||||||||||||||||||||||||||||
Schedule of Long-term Convertible Debt | ' | |||||||||||||||||||||||||||
The following table presents a reconciliation of the principal amount to the net carrying value for each of our Convertible Notes and our Senior Notes at September 30, 2014 and December 31, 2013, and provides the interest cost of each instrument for the three and nine months ended September 30, 2014 and 2013: | ||||||||||||||||||||||||||||
3.25% Convertible Notes | 6.00% Convertible Notes | 5.50% Convertible Notes | 10% Senior Notes | |||||||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Principal amount | $ | 206,505 | $ | 230,000 | $ | 410,000 | $ | 414,000 | $ | 172,500 | 172,500 | $ | 650,000 | $ | 650,000 | |||||||||||||
Unamortized debt discount | (14,762 | ) | (22,972 | ) | (54,386 | ) | (67,292 | ) | (20,416 | ) | (24,302 | ) | (11,479 | ) | (12,565 | ) | ||||||||||||
Net carrying amount | $ | 191,743 | $ | 207,028 | $ | 355,614 | $ | 346,708 | $ | 152,084 | 148,198 | $ | 638,521 | $ | 637,435 | |||||||||||||
Interest cost (a) | ||||||||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
$ | 3,935 | $ | 3,988 | $ | 10,710 | $ | 9,969 | $ | 3,711 | $ | 3,609 | $ | 16,658 | $ | 16,622 | |||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
$ | 12,063 | $ | 11,839 | $ | 31,135 | $ | 29,691 | $ | 11,046 | $ | 9,482 | $ | 49,942 | $ | 49,837 | |||||||||||||
(a) Interest cost includes the coupon interest, accretion of the initial equity component of the convertible notes (3.25% - $36,227; 6.00% - $68,695; and 5.50% - $21,815), accretion of the underwriting discounts and amortization of the issuance costs allocated to the liability component. | ||||||||||||||||||||||||||||
Schedule of Future Minimum Lease Payments for Capital Leases | ' | |||||||||||||||||||||||||||
At September 30, 2014, total future minimum payments on our capital leases were as follows: | ||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||
Capital Leases | (In thousands) | |||||||||||||||||||||||||||
Remainder of 2014 | 2,069 | |||||||||||||||||||||||||||
2015 | 8,278 | |||||||||||||||||||||||||||
2016 | 8,278 | |||||||||||||||||||||||||||
2017 | 7,161 | |||||||||||||||||||||||||||
2018 | 5,770 | |||||||||||||||||||||||||||
Thereafter | 18,195 | |||||||||||||||||||||||||||
Total | 49,751 | |||||||||||||||||||||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
Schedule of the Fair Value of Warrants | ' | |||||||||||
The fair value of the Warrants was determined using an option-pricing model with the following inputs: | ||||||||||||
Penny Warrants | Strike Warrants | |||||||||||
Term (years) | 5 | 5 | ||||||||||
Stock price | $ | 1.55 | $ | 1.55 | ||||||||
Strike price | $ | 0.01 | $ | 2.04 | ||||||||
Risk-free interest rate | 1.79 | % | 1.79 | % | ||||||||
Volatility | 82.6 | % | 49.9 | % | ||||||||
Dividend yield | — | % | — | % | ||||||||
Accounting Changes and Error Corrections | ' | |||||||||||
The out-of-period adjustment had the following impact on the condensed consolidated balance sheet and the condensed consolidated statements of operations and comprehensive loss: | ||||||||||||
Increase to balance sheet captions: | As of June 30, 2014 | |||||||||||
Other non-current assets | $ | 16,381 | ||||||||||
Property, plant and equipment, net | 3,378 | |||||||||||
Additional paid-in capital | 15,062 | |||||||||||
Increase to statements of operations and comprehensive loss captions: | Three Months Ended | |||||||||||
June 30, 2014 | ||||||||||||
Interest expense, net of capitalized interest | $ | 4,933 | ||||||||||
Income tax benefit | 9,630 | |||||||||||
Schedule of Share-Lending Arrangements | ' | |||||||||||
The following table provides certain other information on our share-lending arrangements as of September 30, 2014: | ||||||||||||
2012 Borrowed Shares | 2013 Borrowed Shares | Total | ||||||||||
(In thousands) | ||||||||||||
Fair value | $ | 3,001 | $ | 1,686 | $ | 4,687 | ||||||
Unamortized issuance cost | 10,624 | 4,505 | 15,129 | |||||||||
Deferred Finance Costs, Own-share Lending Arrangement, Issuance Costs | ' | |||||||||||
The amount of non-cash interest cost recognized relating to the amortization of the issuance cost associated with the combined share-lending arrangements was as follows in 2014: | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, 2014 | September 30, 2014 | |||||||||||
(In thousands) | ||||||||||||
Interest cost expensed | $ | 1,250 | $ | 6,183 | ||||||||
Interest cost capitalized | — | 3,378 | ||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||
The following table provides the changes in Accumulated other comprehensive income (loss) (“AOCI”) for the nine-month periods ended September 30, 2014 and 2013: | ||||||||||||
Foreign currency translation adjustments | Postretirement benefit liability | Accumulated other comprehensive loss | ||||||||||
(In thousands) | ||||||||||||
Balance at December 31, 2013 | $ | (6,638 | ) | $ | 187 | $ | (6,451 | ) | ||||
Change in other comprehensive loss before reclassifications | (9,253 | ) | — | (9,253 | ) | |||||||
Net income (loss) reclassified from AOCI | — | — | — | |||||||||
Balance at September 30, 2014 | $ | (15,891 | ) | $ | 187 | $ | (15,704 | ) | ||||
Foreign currency translation adjustments | Postretirement benefit liability | Accumulated other comprehensive loss | ||||||||||
(In thousands) | ||||||||||||
Balance at December 31, 2012 | $ | (8,261 | ) | $ | (1,172 | ) | $ | (9,433 | ) | |||
Change in other comprehensive loss before reclassifications | 1,585 | — | 1,585 | |||||||||
Net income (loss) reclassified from AOCI | — | — | — | |||||||||
Balance at September 30, 2013 | $ | (6,676 | ) | $ | (1,172 | ) | $ | (7,848 | ) |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
PBRSUs | ' | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | ' | ||||||
The following tables summarize the stock-based awards with significant activity for the nine months ended September 30, 2014: | |||||||
PBRSUs | Number of | Weighted Average | |||||
Shares | Grant-Date | ||||||
Price | |||||||
Unvested at December 31, 2013 | 697,797 | $ | 7.45 | ||||
Granted | 755,283 | $ | 5.1 | ||||
Forfeited | (9,052 | ) | 5.45 | ||||
Vested | — | — | |||||
Unvested at September 30, 2014 | 1,444,028 | $ | 6.19 | ||||
RSUs | ' | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | ' | ||||||
RSUs | Number of | Weighted Average | |||||
Shares | Grant-Date | ||||||
Price | |||||||
Unvested at December 31, 2013 | 1,076,385 | $ | 9.81 | ||||
Granted | 750,289 | $ | 4.22 | ||||
Forfeited | (64,123 | ) | $ | 8.84 | |||
Vested | (60,196 | ) | $ | 26.85 | |||
Unvested at September 30, 2014 | 1,702,355 | $ | 6.78 | ||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||
Schedule of future minimum rental payments for operating leases | ' | |||||||||||||||||||
Remaining annual minimum payments under these leases at September 30, 2014 were as follows: | ||||||||||||||||||||
Total | Less Than | 1 - 3 Years | 4 - 5 Years | More Than | ||||||||||||||||
1 Year | 5 Years | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Operating lease obligations | $ | 5,846 | $ | 2,113 | $ | 2,396 | $ | 498 | $ | 839 | ||||||||||
Contractual Obligation, Fiscal Year Maturity Schedule | ' | |||||||||||||||||||
Future payments for all purchase commitments at September 30, 2014 were as follows: | ||||||||||||||||||||
Total | Less Than | 1 - 3 Years | 4 - 5 Years | More Than | ||||||||||||||||
1 Year | 5 Years | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Purchase obligations and other commitments | $ | 75,804 | $ | 75,804 | $ | — | $ | — | $ | — | ||||||||||
Net_Change_in_Operating_Assets1
Net Change in Operating Assets and Liabilities (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
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 for the nine months ended September 30, 2014 and 2013: | ||||||||
Nine Months Ended September 30, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Decrease (increase) in operating assets: | ||||||||
Trade accounts receivable | $ | 8,301 | $ | (5,557 | ) | |||
Inventory | (50,057 | ) | 26,816 | |||||
Prepaid expenses and other current assets | (3,368 | ) | (1,085 | ) | ||||
Increase (decrease) in operating liabilities: | ||||||||
Trade accounts payable | (10,641 | ) | (16,642 | ) | ||||
Income tax payable | 2,346 | (8,768 | ) | |||||
Interest payable | 30,467 | (26,765 | ) | |||||
Asset retirement obligation | (1,415 | ) | (2,385 | ) | ||||
Accrued expenses | 11,309 | (10,826 | ) | |||||
$ | (13,058 | ) | $ | (45,212 | ) |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring | ' | |||||||||||||||
Our assets and liabilities measured at fair value on a recurring basis were as follows at September 30, 2014 and December 31, 2013: | ||||||||||||||||
30-Sep-14 | ||||||||||||||||
Quoted Prices in Active Markets for Identical Assets/Liabilities | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
(In thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Cash equivalents | $ | 212,728 | — | — | ||||||||||||
Liabilities: | ||||||||||||||||
Derivative liabilities: | ||||||||||||||||
Springing Maturity on Term Loans | — | — | $ | 1,694 | ||||||||||||
Strike Warrants | — | — | $ | 2,510 | ||||||||||||
Share Purchase Agreement | — | — | $ | 6,057 | ||||||||||||
31-Dec-13 | ||||||||||||||||
Quoted Prices in Active Markets for Identical Assets/Liabilities | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
(In thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Cash equivalents | $ | 179,052 | — | — | ||||||||||||
Liabilities: | ||||||||||||||||
Derivative liability - Share Purchase Agreement | — | — | $ | 6,089 | ||||||||||||
Fair Value, by Balance Sheet Grouping | ' | |||||||||||||||
The following table presents the fair value of publicly traded financial liabilities we reported at their carrying value at September 30, 2014 and December 31, 2013: | ||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||
Long-term debt | ||||||||||||||||
3.25% Convertible Notes due June 2016 | $ | 191,743 | $ | 128,033 | $ | 207,028 | $ | 161,771 | ||||||||
6.00% Convertible Notes due September 2017 | 355,614 | 139,400 | 346,708 | 312,570 | ||||||||||||
5.50% Convertible Notes due February 2018 | 152,084 | 61,422 | 148,198 | 164,015 | ||||||||||||
10% Senior Notes due June 2020 | 638,521 | 448,500 | 637,435 | 646,750 | ||||||||||||
Total long-term debt | $ | 1,337,962 | $ | 777,355 | $ | 1,339,369 | $ | 1,285,106 | ||||||||
Subsidiary_Guarantor_Financial1
Subsidiary Guarantor Financial Information (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||||||||||
Schedule of Condensed Balance Sheet | ' | |||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Condensed Consolidating Balance Sheets | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Molycorp, Inc. consolidated | |||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 209,255 | $ | 8,399 | $ | 95,823 | $ | — | $ | 313,477 | ||||||||||
Trade accounts receivable, net | — | 4,360 | 48,869 | — | 53,229 | |||||||||||||||
Inventory | — | 34,217 | 132,719 | — | 166,936 | |||||||||||||||
Prepaid expenses and other current assets | — | 15,028 | 12,147 | — | 27,175 | |||||||||||||||
Total current assets | 209,255 | 62,004 | 289,558 | — | 560,817 | |||||||||||||||
Non-current assets: | ||||||||||||||||||||
Deposits | 1,756 | 28,243 | — | — | 29,999 | |||||||||||||||
Property, plant and equipment, net | — | 1,607,027 | 129,845 | — | 1,736,872 | |||||||||||||||
Inventory | — | 25,530 | — | — | 25,530 | |||||||||||||||
Intangible assets, net | — | 393 | 312,485 | — | 312,878 | |||||||||||||||
Investments | — | 17,016 | 15,194 | — | 32,210 | |||||||||||||||
Goodwill | — | — | 228,750 | — | 228,750 | |||||||||||||||
Investments in consolidated subsidiaries | 340,620 | 117,098 | — | (457,718 | ) | — | ||||||||||||||
Intercompany accounts receivable | 1,943,181 | — | 117,941 | (2,061,122 | ) | — | ||||||||||||||
Other non-current assets | 17,701 | 7,929 | 8,573 | — | 34,203 | |||||||||||||||
Total non-current assets | 2,303,258 | 1,803,236 | 812,788 | (2,518,840 | ) | 2,400,442 | ||||||||||||||
Total assets | $ | 2,512,513 | $ | 1,865,240 | $ | 1,102,346 | $ | (2,518,840 | ) | $ | 2,961,259 | |||||||||
Current liabilities: | ||||||||||||||||||||
Trade accounts payable | $ | — | $ | 30,434 | $ | 27,838 | $ | — | $ | 58,272 | ||||||||||
Accrued expenses | 25,048 | 18,159 | 23,520 | — | 66,727 | |||||||||||||||
Debt and capital lease obligations | — | 3,160 | 9,609 | — | 12,769 | |||||||||||||||
Other current liabilities | — | 352 | 6,570 | — | 6,922 | |||||||||||||||
Total current liabilities | 25,048 | 52,105 | 67,537 | — | 144,690 | |||||||||||||||
Non-current liabilities: | ||||||||||||||||||||
Asset retirement obligation | — | 16,681 | — | — | 16,681 | |||||||||||||||
Deferred tax liabilities | — | — | 75,162 | — | 75,162 | |||||||||||||||
Debt and capital lease obligations | 1,381,945 | 144,638 | 56,219 | — | 1,582,802 | |||||||||||||||
Intercompany accounts payable | — | 2,061,122 | — | (2,061,122 | ) | — | ||||||||||||||
Other non-current liabilities | 4,203 | 1,414 | 8,669 | — | 14,286 | |||||||||||||||
Total non-current liabilities | 1,386,148 | 2,223,855 | 140,050 | (2,061,122 | ) | 1,688,931 | ||||||||||||||
Total liabilities | $ | 1,411,196 | $ | 2,275,960 | $ | 207,587 | $ | (2,061,122 | ) | $ | 1,833,621 | |||||||||
Stockholders’ equity: | ||||||||||||||||||||
Common stock | 245 | — | — | — | 245 | |||||||||||||||
Additional paid-in capital | 2,232,390 | 149,857 | 1,315,426 | (1,465,283 | ) | 2,232,390 | ||||||||||||||
Accumulated other comprehensive loss | (15,704 | ) | — | (15,704 | ) | 15,704 | (15,704 | ) | ||||||||||||
Accumulated deficit | (1,115,614 | ) | (560,577 | ) | (431,284 | ) | 991,861 | (1,115,614 | ) | |||||||||||
Total Molycorp stockholders’ equity | 1,101,317 | (410,720 | ) | 868,438 | (457,718 | ) | 1,101,317 | |||||||||||||
Noncontrolling interests | — | — | 26,321 | — | 26,321 | |||||||||||||||
Total stockholders’ equity | 1,101,317 | (410,720 | ) | 894,759 | (457,718 | ) | 1,127,638 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 2,512,513 | $ | 1,865,240 | $ | 1,102,346 | $ | (2,518,840 | ) | $ | 2,961,259 | |||||||||
31-Dec-13 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Condensed Consolidating Balance Sheets | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Molycorp, Inc. consolidated | |||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 169,145 | $ | 6,467 | $ | 138,705 | $ | — | $ | 314,317 | ||||||||||
Trade accounts receivable, net | — | 4,990 | 56,767 | — | 61,757 | |||||||||||||||
Inventory | — | 32,307 | 139,476 | — | 171,783 | |||||||||||||||
Prepaid expenses and other current assets | — | 15,833 | 13,377 | — | 29,210 | |||||||||||||||
Total current assets | 169,145 | 59,597 | 348,325 | — | 577,067 | |||||||||||||||
Non-current assets: | ||||||||||||||||||||
Deposits | 1,754 | 24,243 | — | — | 25,997 | |||||||||||||||
Property, plant and equipment, net | — | 1,620,851 | 142,023 | — | 1,762,874 | |||||||||||||||
Inventory | — | 25,329 | — | — | 25,329 | |||||||||||||||
Intangible assets, net | — | 442 | 330,425 | — | 330,867 | |||||||||||||||
Investments | — | 34,134 | 14,741 | — | 48,875 | |||||||||||||||
Goodwill | — | — | 228,750 | — | 228,750 | |||||||||||||||
Investments in consolidated subsidiaries | 532,767 | 121,849 | — | (654,616 | ) | — | ||||||||||||||
Intercompany accounts receivable | 2,001,583 | — | — | (2,001,583 | ) | — | ||||||||||||||
Other non-current assets | — | 771 | 6,272 | — | 7,043 | |||||||||||||||
Total non-current assets | 2,536,104 | 1,827,619 | 722,211 | (2,656,199 | ) | 2,429,735 | ||||||||||||||
Total assets | $ | 2,705,249 | $ | 1,887,216 | $ | 1,070,536 | $ | (2,656,199 | ) | $ | 3,006,802 | |||||||||
Current liabilities: | ||||||||||||||||||||
Trade accounts payable | $ | — | $ | 49,702 | $ | 34,747 | $ | — | $ | 84,449 | ||||||||||
Accrued expenses | 18,158 | 13,782 | 16,561 | — | 48,501 | |||||||||||||||
Debt and capital lease obligations | — | 2,234 | 14,128 | — | 16,362 | |||||||||||||||
Other current liabilities | — | 617 | 3,446 | — | 4,063 | |||||||||||||||
Total current liabilities | 18,158 | 66,335 | 68,882 | — | 153,375 | |||||||||||||||
Non-current liabilities: | ||||||||||||||||||||
Asset retirement obligation | — | 16,966 | — | — | 16,966 | |||||||||||||||
Deferred tax liabilities | — | — | 85,481 | — | 85,481 | |||||||||||||||
Debt and capital lease obligations | 1,339,368 | 19,355 | 5,193 | — | 1,363,916 | |||||||||||||||
Intercompany accounts payable | — | 1,999,562 | 2,021 | (2,001,583 | ) | — | ||||||||||||||
Other non-current liabilities | — | 1,393 | 8,609 | — | 10,002 | |||||||||||||||
Total non-current liabilities | 1,339,368 | 2,037,276 | 101,304 | (2,001,583 | ) | 1,476,365 | ||||||||||||||
Total liabilities | $ | 1,357,526 | $ | 2,103,611 | $ | 170,186 | $ | (2,001,583 | ) | $ | 1,629,740 | |||||||||
Stockholders’ equity: | ||||||||||||||||||||
Common stock | 241 | — | — | — | 241 | |||||||||||||||
Preferred stock | 2 | — | — | — | 2 | |||||||||||||||
Additional paid-in capital | 2,194,405 | 149,857 | 1,315,426 | (1,465,283 | ) | 2,194,405 | ||||||||||||||
Accumulated other comprehensive loss | (6,451 | ) | — | (6,451 | ) | 6,451 | (6,451 | ) | ||||||||||||
Accumulated deficit | (840,474 | ) | (366,252 | ) | (437,964 | ) | 804,216 | (840,474 | ) | |||||||||||
Total Molycorp stockholders’ equity | 1,347,723 | (216,395 | ) | 871,011 | (654,616 | ) | 1,347,723 | |||||||||||||
Noncontrolling interests | — | — | 29,339 | — | 29,339 | |||||||||||||||
Total stockholders’ equity | 1,347,723 | (216,395 | ) | 900,350 | (654,616 | ) | 1,377,062 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 2,705,249 | $ | 1,887,216 | $ | 1,070,536 | $ | (2,656,199 | ) | $ | 3,006,802 | |||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Molycorp, Inc. consolidated | |||||||||||||||
Revenues | $ | — | $ | 19,163 | $ | 115,150 | $ | (10,376 | ) | $ | 123,937 | |||||||||
Costs of sales: | ||||||||||||||||||||
Costs excluding depreciation and amortization | — | (45,596 | ) | (84,413 | ) | 10,376 | (119,633 | ) | ||||||||||||
Depreciation and amortization | — | (16,460 | ) | (2,922 | ) | — | (19,382 | ) | ||||||||||||
Gross (loss) profit | — | (42,893 | ) | 27,815 | — | (15,078 | ) | |||||||||||||
Operating expenses: | ||||||||||||||||||||
Selling, general and administrative | (4 | ) | (11,233 | ) | (10,670 | ) | — | (21,907 | ) | |||||||||||
Depreciation, amortization and accretion | — | (952 | ) | (7,141 | ) | — | (8,093 | ) | ||||||||||||
Research and development | — | (111 | ) | (4,242 | ) | — | (4,353 | ) | ||||||||||||
Impairment of long-lived assets | — | — | — | — | — | |||||||||||||||
Operating (loss) income | (4 | ) | (55,189 | ) | 5,762 | — | (49,431 | ) | ||||||||||||
Other (expense) income: | ||||||||||||||||||||
Other (expense) income | (21,778 | ) | 90 | 19,077 | — | (2,611 | ) | |||||||||||||
Impairment of investment | — | (12,000 | ) | — | — | (12,000 | ) | |||||||||||||
Interest expense, net of capitalized interest | (33,201 | ) | (1,894 | ) | (347 | ) | — | (35,442 | ) | |||||||||||
Interest income (expense) from intercompany notes | 10,047 | (537 | ) | (9,510 | ) | — | — | |||||||||||||
Equity loss from consolidated subsidiaries | (60,243 | ) | (3,065 | ) | — | 63,308 | — | |||||||||||||
(Loss) income before income taxes and equity earnings | (105,179 | ) | (72,595 | ) | 14,982 | 63,308 | (99,484 | ) | ||||||||||||
Income tax expense | — | — | (3,572 | ) | — | (3,572 | ) | |||||||||||||
Equity in loss of affiliates | — | (1,820 | ) | (272 | ) | — | (2,092 | ) | ||||||||||||
Net (loss) income | (105,179 | ) | (74,415 | ) | 11,138 | 63,308 | (105,148 | ) | ||||||||||||
Net income attributable to noncontrolling interest | — | — | (31 | ) | — | (31 | ) | |||||||||||||
Net (loss) income attributable to Molycorp stockholders | $ | (105,179 | ) | $ | (74,415 | ) | $ | 11,107 | $ | 63,308 | $ | (105,179 | ) | |||||||
Net (loss) income | $ | (105,179 | ) | $ | (74,415 | ) | $ | 11,138 | $ | 63,308 | $ | (105,148 | ) | |||||||
Other comprehensive loss: | ||||||||||||||||||||
Foreign currency translation adjustments | — | — | (8,292 | ) | — | (8,292 | ) | |||||||||||||
Comprehensive (loss) income | $ | (105,179 | ) | $ | (74,415 | ) | $ | 2,846 | $ | 63,308 | $ | (113,440 | ) | |||||||
Comprehensive (loss) income attributable to: | ||||||||||||||||||||
Molycorp stockholders | (105,179 | ) | (74,415 | ) | 2,877 | 63,308 | (113,409 | ) | ||||||||||||
Noncontrolling interest | — | — | (31 | ) | — | (31 | ) | |||||||||||||
$ | (105,179 | ) | $ | (74,415 | ) | $ | 2,846 | $ | 63,308 | $ | (113,440 | ) | ||||||||
Schedule of Condensed Income Statement and Comprehensive Income | ' | |||||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Molycorp, Inc. consolidated | |||||||||||||||
Revenues | $ | — | $ | 19,163 | $ | 115,150 | $ | (10,376 | ) | $ | 123,937 | |||||||||
Costs of sales: | ||||||||||||||||||||
Costs excluding depreciation and amortization | — | (45,596 | ) | (84,413 | ) | 10,376 | (119,633 | ) | ||||||||||||
Depreciation and amortization | — | (16,460 | ) | (2,922 | ) | — | (19,382 | ) | ||||||||||||
Gross (loss) profit | — | (42,893 | ) | 27,815 | — | (15,078 | ) | |||||||||||||
Operating expenses: | ||||||||||||||||||||
Selling, general and administrative | (4 | ) | (11,233 | ) | (10,670 | ) | — | (21,907 | ) | |||||||||||
Depreciation, amortization and accretion | — | (952 | ) | (7,141 | ) | — | (8,093 | ) | ||||||||||||
Research and development | — | (111 | ) | (4,242 | ) | — | (4,353 | ) | ||||||||||||
Impairment of long-lived assets | — | — | — | — | — | |||||||||||||||
Operating (loss) income | (4 | ) | (55,189 | ) | 5,762 | — | (49,431 | ) | ||||||||||||
Other (expense) income: | ||||||||||||||||||||
Other (expense) income | (21,778 | ) | 90 | 19,077 | — | (2,611 | ) | |||||||||||||
Impairment of investment | — | (12,000 | ) | — | — | (12,000 | ) | |||||||||||||
Interest expense, net of capitalized interest | (33,201 | ) | (1,894 | ) | (347 | ) | — | (35,442 | ) | |||||||||||
Interest income (expense) from intercompany notes | 10,047 | (537 | ) | (9,510 | ) | — | — | |||||||||||||
Equity loss from consolidated subsidiaries | (60,243 | ) | (3,065 | ) | — | 63,308 | — | |||||||||||||
(Loss) income before income taxes and equity earnings | (105,179 | ) | (72,595 | ) | 14,982 | 63,308 | (99,484 | ) | ||||||||||||
Income tax expense | — | — | (3,572 | ) | — | (3,572 | ) | |||||||||||||
Equity in loss of affiliates | — | (1,820 | ) | (272 | ) | — | (2,092 | ) | ||||||||||||
Net (loss) income | (105,179 | ) | (74,415 | ) | 11,138 | 63,308 | (105,148 | ) | ||||||||||||
Net income attributable to noncontrolling interest | — | — | (31 | ) | — | (31 | ) | |||||||||||||
Net (loss) income attributable to Molycorp stockholders | $ | (105,179 | ) | $ | (74,415 | ) | $ | 11,107 | $ | 63,308 | $ | (105,179 | ) | |||||||
Net (loss) income | $ | (105,179 | ) | $ | (74,415 | ) | $ | 11,138 | $ | 63,308 | $ | (105,148 | ) | |||||||
Other comprehensive loss: | ||||||||||||||||||||
Foreign currency translation adjustments | — | — | (8,292 | ) | — | (8,292 | ) | |||||||||||||
Comprehensive (loss) income | $ | (105,179 | ) | $ | (74,415 | ) | $ | 2,846 | $ | 63,308 | $ | (113,440 | ) | |||||||
Comprehensive (loss) income attributable to: | ||||||||||||||||||||
Molycorp stockholders | (105,179 | ) | (74,415 | ) | 2,877 | 63,308 | (113,409 | ) | ||||||||||||
Noncontrolling interest | — | — | (31 | ) | — | (31 | ) | |||||||||||||
$ | (105,179 | ) | $ | (74,415 | ) | $ | 2,846 | $ | 63,308 | $ | (113,440 | ) | ||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Molycorp, Inc. consolidated | |||||||||||||||
Revenues | $ | — | $ | 48,402 | $ | 342,201 | $ | (31,234 | ) | $ | 359,369 | |||||||||
Costs of sales: | ||||||||||||||||||||
Costs excluding depreciation and amortization | — | (137,465 | ) | (252,275 | ) | 31,234 | (358,506 | ) | ||||||||||||
Depreciation and amortization | — | (44,618 | ) | (10,990 | ) | — | (55,608 | ) | ||||||||||||
Gross (loss) profit | — | (133,681 | ) | 78,936 | — | (54,745 | ) | |||||||||||||
Operating expenses: | ||||||||||||||||||||
Selling, general and administrative | (397 | ) | (29,828 | ) | (30,061 | ) | — | (60,286 | ) | |||||||||||
Depreciation, amortization and accretion | — | (3,054 | ) | (19,498 | ) | — | (22,552 | ) | ||||||||||||
Research and development | — | (354 | ) | (11,249 | ) | — | (11,603 | ) | ||||||||||||
Impairment of long-lived assets | — | — | — | — | — | |||||||||||||||
Operating (loss) income | (397 | ) | (166,917 | ) | 18,128 | — | (149,186 | ) | ||||||||||||
Other (expense) income: | ||||||||||||||||||||
Other (expense) income | (24,900 | ) | 302 | 22,759 | — | (1,839 | ) | |||||||||||||
Impairment of investment | — | (12,000 | ) | — | — | (12,000 | ) | |||||||||||||
Interest expense, net of capitalized interest | (107,415 | ) | (4,289 | ) | (663 | ) | — | (112,367 | ) | |||||||||||
Interest income (expense) from intercompany notes | 30,836 | (1,551 | ) | (29,285 | ) | — | — | |||||||||||||
Equity loss from consolidated subsidiaries | (182,894 | ) | (4,751 | ) | — | 187,645 | — | |||||||||||||
(Loss) income before income taxes and equity earnings | (284,770 | ) | (189,206 | ) | 10,939 | 187,645 | (275,392 | ) | ||||||||||||
Income tax benefit (expense) | 9,630 | — | (3,868 | ) | — | 5,762 | ||||||||||||||
Equity in loss of affiliates | — | (5,119 | ) | (249 | ) | — | (5,368 | ) | ||||||||||||
Net (loss) income | (275,140 | ) | (194,325 | ) | 6,822 | 187,645 | (274,998 | ) | ||||||||||||
Net income attributable to noncontrolling interest | — | — | (142 | ) | — | (142 | ) | |||||||||||||
Net (loss) income attributable to Molycorp stockholders | $ | (275,140 | ) | $ | (194,325 | ) | $ | 6,680 | $ | 187,645 | $ | (275,140 | ) | |||||||
Net (loss) income | $ | (275,140 | ) | $ | (194,325 | ) | $ | 6,822 | $ | 187,645 | $ | (274,998 | ) | |||||||
Other comprehensive loss: | ||||||||||||||||||||
Foreign currency translation adjustments | — | — | (9,253 | ) | — | (9,253 | ) | |||||||||||||
Comprehensive loss | $ | (275,140 | ) | $ | (194,325 | ) | $ | (2,431 | ) | $ | 187,645 | $ | (284,251 | ) | ||||||
Comprehensive loss attributable to: | ||||||||||||||||||||
Molycorp stockholders | (275,140 | ) | (194,325 | ) | (2,289 | ) | 187,645 | (284,109 | ) | |||||||||||
Noncontrolling interest | — | — | (142 | ) | — | (142 | ) | |||||||||||||
$ | (275,140 | ) | $ | (194,325 | ) | $ | (2,431 | ) | $ | 187,645 | $ | (284,251 | ) | |||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Molycorp, Inc. consolidated | |||||||||||||||
Revenues | $ | — | $ | 19,237 | $ | 142,421 | $ | (12,592 | ) | $ | 149,066 | |||||||||
Costs of sales: | ||||||||||||||||||||
Costs excluding depreciation and amortization | — | (55,517 | ) | (107,519 | ) | 12,592 | (150,444 | ) | ||||||||||||
Depreciation and amortization | — | (9,336 | ) | (7,064 | ) | — | (16,400 | ) | ||||||||||||
Gross (loss) profit | — | (45,616 | ) | 27,838 | — | (17,778 | ) | |||||||||||||
Operating expenses: | ||||||||||||||||||||
Selling, general and administrative | (3 | ) | (15,623 | ) | (8,842 | ) | — | (24,468 | ) | |||||||||||
Depreciation, amortization and accretion | — | (1,597 | ) | (8,475 | ) | — | (10,072 | ) | ||||||||||||
Research and development | — | (1,037 | ) | (4,528 | ) | — | (5,565 | ) | ||||||||||||
Impairment of long-lived assets | — | — | (1,118 | ) | — | (1,118 | ) | |||||||||||||
Operating (loss) income | (3 | ) | (63,873 | ) | 4,875 | — | (59,001 | ) | ||||||||||||
Other (expense) income: | ||||||||||||||||||||
Other income (expense) | 1,731 | 63 | (2,685 | ) | — | (891 | ) | |||||||||||||
Interest expense, net of capitalized interest | (14,093 | ) | (744 | ) | (1,452 | ) | — | (16,289 | ) | |||||||||||
Interest income (expense) from intercompany notes | 9,211 | 1,412 | (10,623 | ) | — | — | ||||||||||||||
Equity loss from consolidated subsidiaries | (54,858 | ) | (333 | ) | — | 55,191 | — | |||||||||||||
Loss before income taxes and equity earnings | (58,012 | ) | (63,475 | ) | (9,885 | ) | 55,191 | (76,181 | ) | |||||||||||
Income tax (expense) benefit | (11,914 | ) | 14,879 | 9,937 | — | 12,902 | ||||||||||||||
Equity in loss of affiliates | — | (1,617 | ) | (717 | ) | — | (2,334 | ) | ||||||||||||
Loss from continuing operations | (69,926 | ) | (50,213 | ) | (665 | ) | 55,191 | (65,613 | ) | |||||||||||
Loss from discontinuing operations, net of tax | — | — | (4,186 | ) | — | (4,186 | ) | |||||||||||||
Net loss | (69,926 | ) | (50,213 | ) | (4,851 | ) | 55,191 | (69,799 | ) | |||||||||||
Net income attributable to noncontrolling interest | — | — | (130 | ) | — | (130 | ) | |||||||||||||
Net loss attributable to Molycorp stockholders | $ | (69,926 | ) | $ | (50,213 | ) | $ | (4,981 | ) | $ | 55,191 | $ | (69,929 | ) | ||||||
Net loss | $ | (69,926 | ) | $ | (50,213 | ) | $ | (4,851 | ) | $ | 55,191 | $ | (69,799 | ) | ||||||
Other comprehensive loss: | ||||||||||||||||||||
Foreign currency translation adjustments | — | — | 4,217 | — | 4,217 | |||||||||||||||
Comprehensive loss | $ | (69,926 | ) | $ | (50,213 | ) | $ | (634 | ) | $ | 55,191 | $ | (65,582 | ) | ||||||
Comprehensive loss attributable to: | ||||||||||||||||||||
Molycorp stockholders | (69,926 | ) | (50,213 | ) | (504 | ) | 55,191 | (65,452 | ) | |||||||||||
Noncontrolling interest | — | — | (130 | ) | — | (130 | ) | |||||||||||||
$ | (69,926 | ) | $ | (50,213 | ) | $ | (634 | ) | $ | 55,191 | $ | (65,582 | ) | |||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Loss | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Molycorp, Inc. consolidated | |||||||||||||||
Revenues | $ | — | $ | 68,014 | $ | 397,548 | $ | (34,982 | ) | $ | 430,580 | |||||||||
Costs of sales: | ||||||||||||||||||||
Costs excluding depreciation and amortization | — | (147,209 | ) | (309,472 | ) | 34,982 | (421,699 | ) | ||||||||||||
Depreciation and amortization | — | (28,523 | ) | (20,760 | ) | — | (49,283 | ) | ||||||||||||
Gross (loss) profit | — | (107,718 | ) | 67,316 | — | (40,402 | ) | |||||||||||||
Operating expenses: | ||||||||||||||||||||
Selling, general and administrative | (3 | ) | (49,126 | ) | (27,573 | ) | — | (76,702 | ) | |||||||||||
Depreciation, amortization and accretion | — | (3,258 | ) | (23,015 | ) | — | (26,273 | ) | ||||||||||||
Research and development | — | (4,428 | ) | (14,048 | ) | — | (18,476 | ) | ||||||||||||
Impairment of long-lived assets | — | — | (1,495 | ) | — | (1,495 | ) | |||||||||||||
Operating (loss) income | (3 | ) | (164,530 | ) | 1,185 | — | (163,348 | ) | ||||||||||||
Other (expense) income: | ||||||||||||||||||||
Other income | 1,731 | 306 | 437 | — | 2,474 | |||||||||||||||
Interest (expense) income, net | (39,978 | ) | (5,039 | ) | 2,210 | — | (42,807 | ) | ||||||||||||
Interest income (expense) from intercompany notes | 27,455 | 4,293 | (31,748 | ) | — | — | ||||||||||||||
Equity loss from consolidated subsidiaries | (163,247 | ) | (6,742 | ) | — | 169,989 | — | |||||||||||||
Loss before income taxes and equity earnings | (174,042 | ) | (171,712 | ) | (27,916 | ) | 169,989 | (203,681 | ) | |||||||||||
Income tax (expense) benefit | (6,030 | ) | 23,130 | 21,822 | — | 38,922 | ||||||||||||||
Equity in loss of affiliates | — | (5,239 | ) | (3,451 | ) | — | (8,690 | ) | ||||||||||||
Loss from continuing operations | (180,072 | ) | (153,821 | ) | (9,545 | ) | 169,989 | (173,449 | ) | |||||||||||
Loss from discontinuing operations, net of tax | — | — | (5,190 | ) | — | (5,190 | ) | |||||||||||||
Net loss | (180,072 | ) | (153,821 | ) | (14,735 | ) | 169,989 | (178,639 | ) | |||||||||||
Net income attributable to noncontrolling interest | — | — | (1,433 | ) | — | (1,433 | ) | |||||||||||||
Net loss attributable to Molycorp stockholders | $ | (180,072 | ) | $ | (153,821 | ) | $ | (16,168 | ) | $ | 169,989 | $ | (180,072 | ) | ||||||
Net loss | $ | (180,072 | ) | $ | (153,821 | ) | $ | (14,735 | ) | $ | 169,989 | $ | (178,639 | ) | ||||||
Other comprehensive loss: | ||||||||||||||||||||
Foreign currency translation adjustments | — | — | 1,585 | — | 1,585 | |||||||||||||||
Comprehensive loss | $ | (180,072 | ) | $ | (153,821 | ) | $ | (13,150 | ) | $ | 169,989 | $ | (177,054 | ) | ||||||
Comprehensive loss attributable to: | ||||||||||||||||||||
Molycorp stockholders | (180,072 | ) | (153,821 | ) | (11,717 | ) | 169,989 | (175,621 | ) | |||||||||||
Noncontrolling interest | — | — | (1,433 | ) | — | (1,433 | ) | |||||||||||||
$ | (180,072 | ) | $ | (153,821 | ) | $ | (13,150 | ) | $ | 169,989 | $ | (177,054 | ) | |||||||
Schedule of Condensed Cash Flow Statement | ' | |||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Molycorp, Inc. consolidated | |||||||||||||||
Net cash used in operating activities | $ | (25,585 | ) | $ | (138,045 | ) | $ | 17,224 | $ | — | $ | (146,406 | ) | |||||||
Cash flows from investing activities: | ||||||||||||||||||||
Intercompany advances made | (174,993 | ) | (133,291 | ) | (58,309 | ) | 366,593 | — | ||||||||||||
Repayments from non-guarantor | 34,997 | — | — | (34,997 | ) | — | ||||||||||||||
Loans to guarantors | — | — | (6,655 | ) | 6,655 | — | ||||||||||||||
Investment in joint ventures | — | — | (703 | ) | — | (703 | ) | |||||||||||||
Capital expenditures | — | (56,837 | ) | (6,000 | ) | — | (62,837 | ) | ||||||||||||
Recovery from insurance claims | — | 12,900 | — | — | 12,900 | |||||||||||||||
Other investing activities | — | — | 460 | — | 460 | |||||||||||||||
Net cash used in investing activities | (139,996 | ) | (177,228 | ) | (71,207 | ) | 338,251 | (50,180 | ) | |||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Repayments of debt | — | — | (5,879 | ) | — | (5,879 | ) | |||||||||||||
Debt issuance costs | (4,032 | ) | (7,605 | ) | (3,131 | ) | — | (14,768 | ) | |||||||||||
Proceeds from the Financings | 50,167 | 139,833 | 60,000 | — | 250,000 | |||||||||||||||
Partial repayment of convertible notes | (27,495 | ) | — | — | — | (27,495 | ) | |||||||||||||
Payments of preferred dividends | (2,846 | ) | — | — | — | (2,846 | ) | |||||||||||||
Dividend paid to noncontrolling interests | — | — | (3,170 | ) | — | (3,170 | ) | |||||||||||||
Repayments to parent | — | — | (34,997 | ) | 34,997 | — | ||||||||||||||
Borrowing from non-guarantors | — | 6,655 | — | (6,655 | ) | — | ||||||||||||||
Intercompany advances owed | 190,160 | 176,433 | — | (366,593 | ) | — | ||||||||||||||
Other financing activities | (263 | ) | 1,889 | — | — | 1,626 | ||||||||||||||
Net cash (used in) provided by financing activities | 205,691 | 317,205 | 12,823 | (338,251 | ) | 197,468 | ||||||||||||||
Effect of exchange rate changes on cash | — | — | (1,722 | ) | — | (1,722 | ) | |||||||||||||
Net change in cash and cash equivalents | 40,110 | 1,932 | (42,882 | ) | — | (840 | ) | |||||||||||||
Cash and cash equivalents at beginning of the period | 169,145 | 6,467 | 138,705 | — | 314,317 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 209,255 | $ | 8,399 | $ | 95,823 | $ | — | $ | 313,477 | ||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
(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 | $ | (2,990 | ) | $ | (79,888 | ) | $ | (7,135 | ) | $ | — | $ | (90,013 | ) | ||||||
Cash flows from investing activities: | ||||||||||||||||||||
Loans to guarantor | — | — | (40,000 | ) | 40,000 | — | ||||||||||||||
Loans to parent | — | — | (12,800 | ) | 12,800 | — | ||||||||||||||
Intercompany advances made | (438,374 | ) | — | — | 438,374 | — | ||||||||||||||
Loans to non-guarantor | — | (1,300 | ) | — | 1,300 | — | ||||||||||||||
Repayments from non-guarantor | 38,000 | 264 | — | (38,264 | ) | — | ||||||||||||||
Investment in joint ventures | — | (3,423 | ) | — | — | (3,423 | ) | |||||||||||||
Capital expenditures | — | (320,829 | ) | (13,768 | ) | — | (334,597 | ) | ||||||||||||
Other investing activities | — | — | (364 | ) | — | (364 | ) | |||||||||||||
Net cash used in investing activities | (400,374 | ) | (325,288 | ) | (66,932 | ) | 454,210 | (338,384 | ) | |||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Repayments of debt | — | — | (25,990 | ) | — | (25,990 | ) | |||||||||||||
Net proceeds from sale of common stock | 248,150 | — | — | — | 248,150 | |||||||||||||||
Issuance of 5.50% Convertible Notes | 165,600 | — | — | — | 165,600 | |||||||||||||||
Payments of preferred dividends | (8,539 | ) | — | — | — | (8,539 | ) | |||||||||||||
Dividend paid to noncontrolling interests | — | — | (4,472 | ) | — | (4,472 | ) | |||||||||||||
Borrowings from non-guarantor | 12,800 | 40,000 | — | (52,800 | ) | — | ||||||||||||||
Borrowing from guarantor | — | — | 1,300 | (1,300 | ) | — | ||||||||||||||
Repayments to parent | — | — | (38,000 | ) | 38,000 | — | ||||||||||||||
Repayment to guarantor | — | — | (264 | ) | 264 | — | ||||||||||||||
Intercompany advances owed | — | 356,867 | 81,507 | (438,374 | ) | — | ||||||||||||||
Other financing activities | — | (797 | ) | — | — | (797 | ) | |||||||||||||
Net cash provided by (used in) financing activities | 418,011 | 396,070 | 14,081 | (454,210 | ) | 373,952 | ||||||||||||||
Effect of exchange rate changes on cash | — | — | 569 | — | 569 | |||||||||||||||
Net change in cash and cash equivalents | 14,647 | (9,106 | ) | (59,417 | ) | — | (53,876 | ) | ||||||||||||
Cash and cash equivalents at beginning of the period | 16,560 | 18,020 | 193,210 | — | 227,790 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 31,207 | $ | 8,914 | $ | 133,793 | $ | — | $ | 173,914 | ||||||||||
Liquidity_and_Capital_Requirem1
Liquidity and Capital Requirements (Details) (USD $) | 0 Months Ended | 9 Months Ended | 0 Months Ended | ||||||
Aug. 06, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 11, 2014 | Sep. 11, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
12.00% Term Loans and 12.00% Equipment Financing, Senior Secured Notes | Financing Available to be Drawn until April 30, 2016 | Molycorp Mountain Pass facility | Maintenance and Other Expansion Capital Expenditures | ||||||
Capital Expenditures [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | $313,477,000 | $173,914,000 | $314,317,000 | $227,790,000 | ' | ' | ' | ' |
Estimated future capital expenditures remainder of 2014 | ' | ' | ' | ' | ' | ' | ' | 25,000,000 | 5,000,000 |
Estimated capital expenditures in 2015 | ' | ' | ' | ' | ' | ' | ' | 30,000,000 | 30,000,000 |
Debt and Lease Financing Commitment Capacity | 400,000,000 | ' | ' | ' | ' | ' | 149,800,000 | ' | ' |
Proceeds from the Financings | ' | 250,000,000 | 0 | ' | ' | 250,000,000 | ' | ' | ' |
Financing available if conditions are met | ' | ' | ' | ' | ' | ' | $134,800,000 | ' | ' |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
segment | ||||||||
Segment Information | ' | ' | ' | ' | ||||
Number of reportable segments | ' | ' | 4 | ' | ||||
Revenues | $123,937 | $149,066 | $359,369 | $430,580 | ||||
Total revenues | 123,937 | 149,066 | 359,369 | 430,580 | ||||
Operating (loss) income | -49,431 | -59,001 | -149,186 | -163,348 | ||||
Other (expense) income | -2,611 | -891 | -1,839 | 2,474 | ||||
Impairment of investment | 12,000 | 0 | 12,000 | 0 | ||||
Interest expense, net of capitalized interest | -35,442 | -16,289 | -112,367 | -42,807 | ||||
Loss before income taxes and equity earnings | -99,484 | -76,181 | -275,392 | -203,681 | ||||
Eliminations | ' | ' | ' | ' | ||||
Segment Information | ' | ' | ' | ' | ||||
Total revenues | -17,424 | [1] | -16,032 | [1] | -49,445 | [1] | -46,644 | [1] |
Operating (loss) income | -419 | [1] | 723 | [1] | -957 | [1] | -1,101 | [1] |
Reportable Segments | Resources | ' | ' | ' | ' | ||||
Segment Information | ' | ' | ' | ' | ||||
Revenues | 4,509 | 4,655 | 9,951 | 30,235 | ||||
Total revenues | 13,933 | 13,513 | 39,533 | 48,403 | ||||
OIBDA | -31,087 | -44,673 | -97,831 | -104,519 | ||||
Depreciation, amortization and accretion | -17,332 | -10,853 | -47,432 | -31,536 | ||||
Operating (loss) income | -48,419 | -55,526 | -145,263 | -136,055 | ||||
Reportable Segments | Chemicals and Oxides | ' | ' | ' | ' | ||||
Segment Information | ' | ' | ' | ' | ||||
Revenues | 36,814 | 50,791 | 122,521 | 135,180 | ||||
Total revenues | 43,472 | 57,965 | 138,659 | 163,656 | ||||
OIBDA | 4,251 | 4,561 | 12,388 | -2,792 | ||||
Depreciation, amortization and accretion | -3,823 | -5,960 | -11,605 | -17,087 | ||||
Operating (loss) income | 428 | -1,399 | 783 | -19,879 | ||||
Reportable Segments | Magnetic Materials and Alloys | ' | ' | ' | ' | ||||
Segment Information | ' | ' | ' | ' | ||||
Revenues | 61,345 | 72,626 | 169,260 | 193,417 | ||||
Total revenues | 62,687 | 72,626 | 172,985 | 193,417 | ||||
OIBDA | 13,715 | 18,520 | 39,203 | 48,823 | ||||
Depreciation, amortization and accretion | -4,232 | -7,458 | -12,730 | -20,360 | ||||
Operating (loss) income | 9,483 | 11,062 | 26,473 | 28,463 | ||||
Reportable Segments | Rare Metals | ' | ' | ' | ' | ||||
Segment Information | ' | ' | ' | ' | ||||
Revenues | 21,269 | 20,994 | 57,637 | 71,748 | ||||
Total revenues | 21,269 | 20,994 | 57,637 | 71,748 | ||||
OIBDA | 595 | -911 | 1,265 | 3,947 | ||||
Depreciation, amortization and accretion | -2,034 | -2,144 | -6,228 | -6,402 | ||||
Operating (loss) income | -1,439 | -3,055 | -4,963 | -2,455 | ||||
Eliminations | Resources | ' | ' | ' | ' | ||||
Segment Information | ' | ' | ' | ' | ||||
Revenues | 9,424 | 8,858 | 29,582 | 18,168 | ||||
Eliminations | Chemicals and Oxides | ' | ' | ' | ' | ||||
Segment Information | ' | ' | ' | ' | ||||
Revenues | 6,658 | 7,174 | 16,138 | 28,476 | ||||
Eliminations | Magnetic Materials and Alloys | ' | ' | ' | ' | ||||
Segment Information | ' | ' | ' | ' | ||||
Revenues | 1,342 | 0 | 3,725 | 0 | ||||
Eliminations | Rare Metals | ' | ' | ' | ' | ||||
Segment Information | ' | ' | ' | ' | ||||
Revenues | 0 | 0 | 0 | 0 | ||||
Eliminations | Eliminations | ' | ' | ' | ' | ||||
Segment Information | ' | ' | ' | ' | ||||
Revenues | -17,424 | [1] | -16,032 | [1] | -49,445 | [1] | -46,644 | [1] |
Corporate and other | Corporate and other | ' | ' | ' | ' | ||||
Segment Information | ' | ' | ' | ' | ||||
Operating (loss) income | -9,065 | [2] | -10,806 | [2] | -25,259 | [2] | -32,321 | [2] |
Other Nonoperating Income (Expense) | Boulder Wind Power, Inc. | ' | ' | ' | ' | ||||
Segment Information | ' | ' | ' | ' | ||||
Impairment of investment | $12,000 | ' | $12,000 | ' | ||||
[1] | Consist of inter-segment sales and gross profits eliminations as well as eliminations of lower of cost or market adjustments related to inter-segment inventory. | |||||||
[2] | Includes business development costs, personnel costs, stock-based compensation, accounting and legal fees, occupancy expense, information technology costs and interest expense. |
Inventory_Details
Inventory (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current: | ' | ' |
Concentrate stockpiles | $0 | $24 |
Raw materials | 52,215 | 42,627 |
Work in process | 25,254 | 41,962 |
Finished goods | 62,397 | 65,662 |
Materials and supplies | 27,070 | 21,508 |
Total current | 166,936 | 171,783 |
Long-term: | ' | ' |
Concentrate stockpiles | 0 | 4 |
Raw materials | 25,530 | 25,325 |
Total long-term | $25,530 | $25,329 |
Inventory_Schedule_of_Charges_
Inventory (Schedule of Charges to Cost of Sales Based on Normal Production Levels and Write-Down of Inventory) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Inventory [Line Items] | ' | ' | ' | ' | ||||
Production costs expended that would have been allocated to additional tons produced | $28,889 | [1] | $18,249 | [1] | $71,436 | [1] | $65,743 | [1] |
Inventory write-downs | ' | ' | 51,638 | 74,475 | ||||
Charges to cost of sales based on production levels and write-down of inventory | 43,665 | 44,766 | 123,074 | 140,217 | ||||
Rare earth metals | ' | ' | ' | ' | ||||
Inventory [Line Items] | ' | ' | ' | ' | ||||
Inventory write-downs | 14,776 | [2] | 19,633 | [2] | 50,296 | [2] | 60,733 | [2] |
Stockpile | ' | ' | ' | ' | ||||
Inventory [Line Items] | ' | ' | ' | ' | ||||
Inventory write-downs | $0 | [3] | $6,884 | [3] | $1,342 | [3] | $13,741 | [3] |
[1] | Relates to production costs that would have been inventoriable had we been operating at normal production levels. In all periods presented, the majority of these production costs related to the Resources segment. | |||||||
[2] | Due to the decline in some rare earths prices and low inventory turnover. | |||||||
[3] | Adjustments of the estimated REO content in the stockpile at the Resources segment. |
Property_Plant_and_Equipment_n2
Property, Plant and Equipment, net (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | ||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | |||
Capitalized expenditures related to plant modernization and other capitalized costs | $17,800,000 | $83,000,000 | $47,300,000 | $281,300,000 | ' | |||
Interest costs capitalized | ' | 20,300,000 | ' | 61,200,000 | ' | |||
Property, plant and equipment at cost | 1,897,323,000 | ' | 1,897,323,000 | ' | 1,865,552,000 | |||
Less accumulated depreciation | -160,451,000 | ' | -160,451,000 | ' | -102,678,000 | |||
Property, plant and equipment, net | 1,736,872,000 | ' | 1,736,872,000 | ' | 1,762,874,000 | |||
Land | ' | ' | ' | ' | ' | |||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | |||
Property, plant and equipment at cost | 12,045,000 | ' | 12,045,000 | ' | 12,822,000 | |||
Land improvements | ' | ' | ' | ' | ' | |||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | |||
Property, plant and equipment at cost | 304,659,000 | ' | 304,659,000 | ' | 327,029,000 | |||
Buildings and improvements | ' | ' | ' | ' | ' | |||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | |||
Property, plant and equipment at cost | 609,337,000 | ' | 609,337,000 | ' | 418,510,000 | |||
Plant and equipment | ' | ' | ' | ' | ' | |||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | |||
Property, plant and equipment at cost | 509,562,000 | ' | 509,562,000 | ' | 288,603,000 | |||
Vehicles | ' | ' | ' | ' | ' | |||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | |||
Property, plant and equipment at cost | 2,982,000 | ' | 2,982,000 | ' | 2,986,000 | |||
Computer software | ' | ' | ' | ' | ' | |||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | |||
Property, plant and equipment at cost | 12,573,000 | ' | 12,573,000 | ' | 12,424,000 | |||
Furnitures and fixtures | ' | ' | ' | ' | ' | |||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | |||
Property, plant and equipment at cost | 1,196,000 | ' | 1,196,000 | ' | 1,044,000 | |||
Construction in progress | ' | ' | ' | ' | ' | |||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | |||
Property, plant and equipment at cost | 394,572,000 | [1] | ' | 394,572,000 | [1] | ' | 755,107,000 | [1] |
Natural gas delivery facility under capital lease | ' | ' | ' | ' | ' | |||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | |||
Natural gas delivery facility under capital lease | 15,658,000 | ' | 15,658,000 | ' | 15,658,000 | |||
Mining equipment under capital lease | ' | ' | ' | ' | ' | |||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | |||
Property, plant and equipment at cost | 10,982,000 | ' | 10,982,000 | ' | 7,370,000 | |||
Mineral properties | ' | ' | ' | ' | ' | |||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | |||
Property, plant and equipment at cost | $23,757,000 | ' | $23,757,000 | ' | $23,999,000 | |||
[1] | Primarily related to expenditures at the Mountain Pass facility. |
Debt_and_Capital_Lease_Obligat2
Debt and Capital Lease Obligations (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Aug. 31, 2012 |
In Thousands, unless otherwise specified | |||
Long-term Debt, Current and Noncurrent [Abstract] | ' | ' | ' |
Current portion of debt outstanding | $9,609 | $14,128 | ' |
Noncurrent portion of debt outstanding | 1,562,755 | 1,344,561 | ' |
Capital lease obligations, current | 3,160 | 2,234 | ' |
Capital lease obligations, Noncurrent | 20,047 | 19,355 | ' |
Total debt and Capital lease obligations, Current | 12,769 | 16,362 | ' |
Total debt and Capital lease obligations, Non-Current | 1,582,802 | 1,363,916 | ' |
Long-term Debt, by Maturity [Abstract] | ' | ' | ' |
Remainder of 2014 | 2,040 | ' | ' |
2015 | 7,997 | ' | ' |
2016 | 207,331 | ' | ' |
2017 | 412,573 | ' | ' |
2018 | 172,500 | ' | ' |
Thereafter | 971,154 | ' | ' |
Total | 1,773,595 | ' | ' |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ' | ' | ' |
Remainder of 2014 | 2,069 | ' | ' |
2015 | 8,278 | ' | ' |
2016 | 8,278 | ' | ' |
2017 | 7,161 | ' | ' |
2018 | 5,770 | ' | ' |
Thereafter | 18,195 | ' | ' |
Total | 49,751 | ' | ' |
Notes Payable to Banks | ' | ' | ' |
Long-term Debt, Current and Noncurrent [Abstract] | ' | ' | ' |
Current portion of debt outstanding | 9,609 | 14,128 | ' |
Noncurrent portion of debt outstanding | 1,486 | 2,699 | ' |
Weighted average interest rate | 3.43% | 3.59% | ' |
Convertible Debt | 3.25% Convertible Notes, net of discount, due June 2016 | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Interest rate | 3.25% | ' | ' |
Long-term Debt, Current and Noncurrent [Abstract] | ' | ' | ' |
Current portion of debt outstanding | 0 | 0 | ' |
Noncurrent portion of debt outstanding | 191,743 | 207,028 | ' |
Convertible Debt | 6.00% Convertible Notes, net of discount, due September 2017 | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Interest rate | 6.00% | ' | 6.00% |
Long-term Debt, Current and Noncurrent [Abstract] | ' | ' | ' |
Current portion of debt outstanding | 0 | 0 | ' |
Noncurrent portion of debt outstanding | 355,614 | 346,708 | ' |
Convertible Debt | 5.50% Convertible Notes, net of discount, due February 2018 | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Interest rate | 5.50% | ' | ' |
Long-term Debt, Current and Noncurrent [Abstract] | ' | ' | ' |
Current portion of debt outstanding | 0 | 0 | ' |
Noncurrent portion of debt outstanding | 152,084 | 148,198 | ' |
Convertible Subordinated Debt | 5.00% Debentures, net of discount, due December 2017 | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Interest rate | 5.00% | ' | ' |
Long-term Debt, Current and Noncurrent [Abstract] | ' | ' | ' |
Current portion of debt outstanding | 0 | 0 | ' |
Noncurrent portion of debt outstanding | 2,129 | 2,493 | ' |
Senior Notes | 12.00% Senior Secured Notes, Term Loans, Due September 2019 | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Interest rate | 12.00% | ' | ' |
Long-term Debt, Current and Noncurrent [Abstract] | ' | ' | ' |
Current portion of debt outstanding | 0 | 0 | ' |
Noncurrent portion of debt outstanding | 96,595 | 0 | ' |
Senior Notes | 12.00% Equipment Financing, due September 2019 | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Interest rate | 12.00% | ' | ' |
Long-term Debt, Current and Noncurrent [Abstract] | ' | ' | ' |
Current portion of debt outstanding | 0 | 0 | ' |
Noncurrent portion of debt outstanding | 124,583 | 0 | ' |
Senior Notes | 10.00% Senior Notes, net of discount, due June 2020 | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Interest rate | 10.00% | ' | ' |
Long-term Debt, Current and Noncurrent [Abstract] | ' | ' | ' |
Current portion of debt outstanding | 0 | 0 | ' |
Noncurrent portion of debt outstanding | $638,521 | $637,435 | ' |
Debt_and_Capital_Lease_Obligat3
Debt and Capital Lease Obligations Term Loans and Equipment Financing (Details) (USD $) | 0 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||||
Aug. 06, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 11, 2014 | Dec. 31, 2013 | Sep. 11, 2014 | Sep. 30, 2014 | Sep. 11, 2014 | Sep. 11, 2014 | Sep. 11, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 11, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Aug. 31, 2012 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 11, 2014 | Sep. 11, 2014 | Sep. 30, 2014 | Sep. 11, 2014 | Sep. 11, 2014 | Sep. 30, 2014 | Sep. 11, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |||
12.00% Term Loans and 12.00% Equipment Financing, Senior Secured Notes | 12.00% Term Loans and 12.00% Equipment Financing, Senior Secured Notes | 12.00% Term Loans and 12.00% Equipment Financing, Senior Secured Notes | Financing Available to be Drawn until April 30, 2016 | Convertible Debt | Convertible Debt | Convertible Debt | Convertible Debt | Convertible Debt | Convertible Debt | Convertible Debt | Convertible Debt | Convertible Debt | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Other Expense | Other Expense | Amount to be Repaid when Due and Payable | Amount to be Repaid when Due and Payable | Amount to be Repaid when Due and Payable | ||||||||
3.25% Convertible Notes, net of discount, due June 2016 | 3.25% Convertible Notes, net of discount, due June 2016 | 3.25% Convertible Notes, net of discount, due June 2016 | 6.00% Convertible Notes, net of discount, due September 2017 | 6.00% Convertible Notes, net of discount, due September 2017 | 6.00% Convertible Notes, net of discount, due September 2017 | 6.00% Convertible Notes, net of discount, due September 2017 | 5.50% Convertible Notes, net of discount, due February 2018 | 5.50% Convertible Notes, net of discount, due February 2018 | Parent Term Loan | Parent Term Loan | Magnequench Term Loan | Term Loans | Term Loans | 12.00% Equipment Financing, due September 2019 | 12.00% Equipment Financing, due September 2019 | 12.00% Equipment Financing, due September 2019 | 12.00% Equipment Financing, due September 2019 | 10.00% Senior Notes, net of discount, due June 2020 | 10.00% Senior Notes, net of discount, due June 2020 | 12.00% Senior Secured Notes, Term Loans, Due September 2019 | 12.00% Senior Secured Notes, Term Loans, Due September 2019 | 12.00% Term Loans and 12.00% Equipment Financing, Senior Secured Notes | 12.00% Term Loans and 12.00% Equipment Financing, Senior Secured Notes | Convertible Debt | Convertible Debt | Convertible Debt | ||||||||||||
T | 3.25% Convertible Notes, net of discount, due June 2016 | 6.00% Convertible Notes, net of discount, due September 2017 | 5.50% Convertible Notes, net of discount, due February 2018 | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Proceeds from the Financings | ' | $250,000,000 | $0 | ' | ' | $250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Financing commitment capacity | 400,000,000 | ' | ' | ' | ' | ' | ' | ' | 149,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Financing available if conditions are met | ' | ' | ' | ' | ' | ' | ' | ' | 134,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Net proceeds from the Financings | ' | ' | ' | ' | ' | 207,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Partial repayment of convertible notes | ' | 27,495,000 | 0 | ' | ' | ' | ' | ' | ' | 23,500,000 | ' | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.25% | ' | ' | 6.00% | ' | 6.00% | 5.50% | ' | ' | ' | ' | 12.00% | ' | ' | 12.00% | ' | ' | 10.00% | ' | 12.00% | ' | ' | ' | ' | ' | ' | ||
Commitment yield enhancement | ' | ' | ' | ' | ' | 8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Transaction costs | ' | ' | ' | ' | ' | ' | ' | 6,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Loss on extinguishment of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,300,000 | 2,300,000 | ' | ' | ' | ||
Long-term Debt, Commitment Capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 185,000,000 | 75,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Secured Long-term Debt, Noncurrent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,200,000 | 60,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Long-term Debt, Conditions to be Met, Unused Borrowing Capacity, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 134,800,000 | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Long-term Debt, Conditions to be Met, Minimum Borrowing Capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Condition to be Met, EBITDA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Condition to be Met, Production Facility Capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Annual interest rate applied to unpaid principal balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.00% | ' | ' | 7.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Imputed interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Unused capacity, commitment fee percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 206,505,000 | 230,000,000 | ' | 410,000,000 | 414,000,000 | ' | 172,500,000 | 172,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 650,000,000 | 650,000,000 | ' | ' | ' | ' | 40,000,000 | 80,000,000 | 40,000,000 | ||
Early Payment Premium Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Percent of principal, prior to first anniversary | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Percent of principal, prior to second anniversary | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Percent of principal, prior to third anniversary | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Percent of principal, prior to fourth anniversary | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Percent of principal, after to fourth anniversary | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Percent of principal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Proceeds from sale of equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 139,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Lessor Leasing Arrangements, Operating Leases, Term of Contract | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Minimum Lease Payments, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Annual rent payment in the first year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Annual rent payment in the second year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Annual rent payment in the third year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Annual rent payment in the fourth year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Annual rent payment in the fifth year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Additional payment on the five-year anniversary | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 179,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Possible rental adjustment, years two through five | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Possible rental adjustment, additional payment on five-year anniversary | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 147,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Warrants issued | ' | ' | ' | 24,477,359 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Reconciliation of Principal to Net Carrying Value [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 140,069,000 | [1] | ' | ' | ' | ' | 110,473,000 | [1] | ' | ' | ' | ' | ' | ' |
Unamortized debt discount | ' | ' | ' | ' | ' | ' | ' | 28,200,000 | ' | ' | 14,762,000 | 22,972,000 | ' | 54,386,000 | 67,292,000 | ' | 20,416,000 | 24,302,000 | ' | ' | ' | ' | 1,700,000 | ' | 15,486,000 | ' | ' | 11,479,000 | 12,565,000 | 13,878,000 | ' | ' | ' | ' | ' | ' | ||
Net carrying amount | ' | 1,562,755,000 | ' | ' | 1,344,561,000 | ' | ' | ' | ' | ' | 191,743,000 | 207,028,000 | ' | 355,614,000 | 346,708,000 | ' | 152,084,000 | 148,198,000 | ' | ' | ' | ' | ' | ' | 124,583,000 | ' | 0 | 638,521,000 | 637,435,000 | 96,595,000 | 0 | ' | ' | ' | ' | ' | ||
Maximum Principal Amount of Debt Secured by the Pari Passu Collateral | ' | ' | ' | ' | ' | ' | $300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
[1] | Includes PIK interest accretion. |
Debt_and_Capital_Lease_Obligat4
Debt and Capital Lease Obligations Convertible Notes and Senior Secured Obligations (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Aug. 31, 2012 | |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Net carrying amount | $1,562,755,000 | ' | $1,562,755,000 | ' | $1,344,561,000 | ' |
Equity component of convertible debt | ' | ' | ' | 21,815,000 | ' | ' |
Additional Paid-In Capital | ' | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Equity component of convertible debt | ' | ' | ' | 21,815,000 | ' | ' |
Convertible Debt | 3.25% Convertible Notes, net of discount, due June 2016 | ' | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Principal amount | 206,505,000 | ' | 206,505,000 | ' | 230,000,000 | ' |
Unamortized debt discount | -14,762,000 | ' | -14,762,000 | ' | -22,972,000 | ' |
Net carrying amount | 191,743,000 | ' | 191,743,000 | ' | 207,028,000 | ' |
Interest cost | 3,935,000 | 3,988,000 | 12,063,000 | 11,839,000 | ' | ' |
Interest rate | 3.25% | ' | 3.25% | ' | ' | ' |
Convertible Debt | 6.00% Convertible Notes, net of discount, due September 2017 | ' | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Principal amount | 410,000,000 | ' | 410,000,000 | ' | 414,000,000 | ' |
Unamortized debt discount | -54,386,000 | ' | -54,386,000 | ' | -67,292,000 | ' |
Net carrying amount | 355,614,000 | ' | 355,614,000 | ' | 346,708,000 | ' |
Interest cost | 10,710,000 | 9,969,000 | 31,135,000 | 29,691,000 | ' | ' |
Interest rate | 6.00% | ' | 6.00% | ' | ' | 6.00% |
Convertible Debt | 5.50% Convertible Notes, net of discount, due February 2018 | ' | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Principal amount | 172,500,000 | ' | 172,500,000 | ' | 172,500,000 | ' |
Unamortized debt discount | -20,416,000 | ' | -20,416,000 | ' | -24,302,000 | ' |
Net carrying amount | 152,084,000 | ' | 152,084,000 | ' | 148,198,000 | ' |
Interest cost | 3,711,000 | 3,609,000 | 11,046,000 | 9,482,000 | ' | ' |
Interest rate | 5.50% | ' | 5.50% | ' | ' | ' |
Convertible Debt | Additional Paid-In Capital | 3.25% Convertible Notes, net of discount, due June 2016 | ' | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Equity component of convertible debt | ' | ' | 36,227,000 | ' | ' | ' |
Convertible Debt | Additional Paid-In Capital | 6.00% Convertible Notes, net of discount, due September 2017 | ' | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Equity component of convertible debt | ' | ' | 68,695,000 | ' | ' | ' |
Convertible Debt | Additional Paid-In Capital | 5.50% Convertible Notes, net of discount, due February 2018 | ' | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Equity component of convertible debt | ' | ' | 21,815,000 | ' | ' | ' |
Senior Notes | 10.00% Senior Notes, net of discount, due June 2020 | ' | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Principal amount | 650,000,000 | ' | 650,000,000 | ' | 650,000,000 | ' |
Unamortized debt discount | -11,479,000 | ' | -11,479,000 | ' | -12,565,000 | ' |
Net carrying amount | 638,521,000 | ' | 638,521,000 | ' | 637,435,000 | ' |
Interest cost | 16,658,000 | 16,622,000 | 49,942,000 | 49,837,000 | ' | ' |
Interest rate | 10.00% | ' | 10.00% | ' | ' | ' |
Debt Instrument, Collateral, Excluded Assets, Asset Fair Market Value, Maximum | $15,000,000 | ' | $15,000,000 | ' | ' | ' |
Debt Instrument, Collateral, Excluded Assets, Cash Collateral for Line of Credits or Hedging Obligations, Maximum | 105.00% | ' | 105.00% | ' | ' | ' |
Debt Instruments, Collateral, Excluded Assets, Voting Stock of Foreign Subsidiaries, Percent, Minimum | 65.00% | ' | 65.00% | ' | ' | ' |
Income_Taxes_Narrative_Details
Income Taxes Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' |
Effective income tax rate | -3.60% | ' | 16.90% | 2.10% | 19.10% |
Income Tax Expense (Benefit) | ' | ($9.60) | ' | ' | ' |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 9 Months Ended | 0 Months Ended | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Mar. 01, 2014 | Dec. 31, 2013 | Mar. 01, 2014 |
Series A Mandatory Convertible Preferred Stock | Series A Mandatory Convertible Preferred Stock | Common Stock | ||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' |
Common shares issued | 244,864,742 | ' | 240,380,138 | ' | ' | ' |
Preferred stock outstanding | ' | ' | ' | ' | 2,070,000 | ' |
Dividend rate | ' | ' | ' | ' | 5.50% | ' |
Conversion rate for preferred stock to common stock | ' | ' | ' | ' | ' | 2 |
Shares issued upon conversion of preferred stock | ' | ' | ' | ' | ' | 4,140,000 |
Cash dividend declared and paid | $2,846 | $8,539 | ' | $2,800 | ' | ' |
Stockholders_Equity_Warrants_D
Stockholders' Equity Warrants (Details) (USD $) | 0 Months Ended | |
In Millions, except Share data, unless otherwise specified | Sep. 11, 2014 | Sep. 11, 2014 |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants issued | 24,477,359 | 24,477,359 |
Penny Warrants [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants issued | ' | 18,358,019 |
Exercise price | ' | $0.01 |
Fair value of warrants | ' | $24.70 |
Term (years) | '5 years | ' |
Stock price | ' | $1.55 |
Risk-free interest rate | 1.79% | ' |
Volatility | 82.60% | ' |
Dividend yield | 0.00% | ' |
Fair Value, Discount for Lack of Marketability | 9.00% | ' |
Fair Value Assumptions, Application of Discount for Lack of Marketability, Share Price | ' | $1.40 |
Strike Warrants | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants issued | ' | 6,119,340 |
Exercise price | ' | $2.04 |
Term (years) | '5 years | ' |
Stock price | ' | $1.55 |
Risk-free interest rate | 1.79% | ' |
Volatility | 49.90% | ' |
Dividend yield | 0.00% | ' |
Fair Value, Discount for Lack of Marketability | 31.00% | ' |
Fair Value Assumptions, Application of Discount for Lack of Marketability, Share Price | ' | $0.57 |
Stockholders_Equity_ShareLendi
Stockholders' Equity Share-Lending Arrangements (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | ||||||||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jan. 31, 2013 | Aug. 31, 2012 | Sep. 30, 2014 | Aug. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Aug. 31, 2012 | Sep. 30, 2014 | Jan. 31, 2013 |
Restatement Adjustment | Common Stock | Common Stock | Convertible Debt | Convertible Debt | Convertible Debt | Convertible Debt Securities | Convertible Debt Securities | Convertible Debt Securities | Convertible Debt Securities | ||||||
Own-share Lending Arrangement | 6.00% Convertible Notes, net of discount, due September 2017 | 6.00% Convertible Notes, net of discount, due September 2017 | 5.50% Convertible Notes, net of discount, due February 2018 | 6.00% Convertible Notes, net of discount, due September 2017 | 6.00% Convertible Notes, net of discount, due September 2017 | 5.50% Convertible Notes, net of discount, due February 2018 | 5.50% Convertible Notes, net of discount, due February 2018 | ||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | 6.00% | 5.50% | ' | ' | ' | 5.50% |
Own-share Lending Arrangement, Shares, Outstanding | ' | ' | ' | ' | ' | ' | 6,666,666 | 13,800,000 | ' | ' | ' | ' | ' | ' | ' |
Fair value | $4,687 | ' | $4,687 | ' | ' | ' | ' | ' | ' | ' | ' | $3,001 | $18,100 | $1,686 | $6,600 |
Unamortized issuance cost | 15,129 | ' | 15,129 | ' | ' | ' | ' | ' | ' | ' | ' | 10,624 | ' | 4,505 | ' |
Interest cost expensed | 1,250 | ' | 6,183 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest cost capitalized | 0 | ' | 3,378 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Error Corrections and Prior Period Adjustments Restatement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other non-current assets | 34,203 | ' | 34,203 | ' | 7,043 | 16,381 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, net | 1,736,872 | ' | 1,736,872 | ' | 1,762,874 | 3,378 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional paid-in capital | 2,232,390 | ' | 2,232,390 | ' | 2,194,405 | 15,062 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense, net of capitalized interest | 35,442 | 16,289 | 112,367 | 42,807 | ' | 4,933 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax benefit | ($3,572) | $12,902 | $5,762 | $38,922 | ' | $9,630 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders_Equity_Accumulate
Stockholders' Equity Accumulated Other Comprehensive Income (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' |
Balance at beginning of the period | ($6,451) | ($9,433) |
Change in other comprehensive loss before reclassifications | -9,253 | 1,585 |
Net income (loss) reclassified from AOCI | 0 | 0 |
Balance at end of the period | -15,704 | -7,848 |
Foreign currency translation adjustments | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' |
Balance at beginning of the period | -6,638 | -8,261 |
Change in other comprehensive loss before reclassifications | -9,253 | 1,585 |
Net income (loss) reclassified from AOCI | 0 | 0 |
Balance at end of the period | -15,891 | -6,676 |
Postretirement benefit liability | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' |
Balance at beginning of the period | 187 | -1,172 |
Change in other comprehensive loss before reclassifications | 0 | 0 |
Net income (loss) reclassified from AOCI | 0 | 0 |
Balance at end of the period | $187 | ($1,172) |
Loss_per_Share_Basic_and_Dilut
Loss per Share Basic and Diluted Loss per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Sep. 30, 2013 | |
Earnings Per Share [Abstract] | ' | ' |
Loss from Discontinued Operations, Per Basic Share | $0.02 | $0.03 |
Loss from Discontinued Operations, Per Diluted Share | $0.02 | $0.03 |
Activity_Related_to_Restricted
Activity Related to Restricted Stock-based Awards (Details) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
PBRSUs | ' |
Number of Shares | ' |
Unvested at the beginning of the period (in shares) | 697,797 |
Granted (in shares) | 755,283 |
Forfeited (in shares) | -9,052 |
Vested (in shares) | 0 |
Unvested at the end of the period (in shares) | 1,444,028 |
Weighted Average Grant-Date Price | ' |
Unvested shares at the beginning of the period (in dollars per share) | $7.45 |
Granted (in dollars per share) | $5.10 |
Forfeited (in dollars per share) | $5.45 |
Vested (in dollars per share) | $0 |
Unvested shares at the end of the period (in dollars per share) | $6.19 |
RSUs | ' |
Number of Shares | ' |
Unvested at the beginning of the period (in shares) | 1,076,385 |
Granted (in shares) | 750,289 |
Forfeited (in shares) | -64,123 |
Vested (in shares) | -60,196 |
Unvested at the end of the period (in shares) | 1,702,355 |
Weighted Average Grant-Date Price | ' |
Unvested shares at the beginning of the period (in dollars per share) | $9.81 |
Granted (in dollars per share) | $4.22 |
Forfeited (in dollars per share) | $8.84 |
Vested (in dollars per share) | $26.85 |
Unvested shares at the end of the period (in dollars per share) | $6.78 |
Commitments_and_Contingencies_1
Commitments and Contingencies Operating Leases (Details) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Remaining annual minimum payments under operating leases | ' |
Operating lease obligations, total minimum payments | $5,846 |
Operating lease obligations, Less Than 1 Year | 2,113 |
Operating lease obligations, 1 -3 Years | 2,396 |
Operating lease obligations, 4 - 5 Years | 498 |
Operating lease obligations, More Than 5 Years | $839 |
Commitments_and_Contingencies_2
Commitments and Contingencies Purchase Commitments (Details) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Purchase Obligation | $75,804 |
Purchase Obligation, Due in Next Twelve Months | 75,804 |
Purchase Obligation, Due in Second and Third Year | 0 |
Purchase Obligation, Due in Fourth and Fifth Year | 0 |
Purchase Obligation, Due after Fifth Year | $0 |
Commitments_and_Contingencies_3
Commitments and Contingencies Narrative (Details) | 1 Months Ended | 12 Months Ended | |
Aug. 31, 2013 | Jul. 31, 2012 | Dec. 31, 2012 | |
Class Action Lawsuits filed in US District Court for the Southern District of New York | Pending Litigation | Pending Litigation | |
lawsuit | Purported Class Action | Derivative Lawsuit | |
claim | lawsuit | ||
Plant Modernization and Expansion Commitments | ' | ' | ' |
Loss Contingency, Pending Claims, Number | ' | 18 | ' |
Number of class action lawsuits filed | 2 | ' | 2 |
Concentrations_Details
Concentrations (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
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 | |||||
Magnetic Materials and Alloys | Magnetic Materials and Alloys | Cerium products | Cerium products | Cerium products | Cerium products | Neo Powders | Neo Powders | Neo Powders | Neo Powders | Neo Powders | Neo Powders | Neo Powders | Neo Powders | |||||
Daido Electronics | Daido Electronics | Chemicals and Oxides | Chemicals and Oxides | Chemicals and Oxides | Chemicals and Oxides | Magnetic Materials and Alloys | Magnetic Materials and Alloys | Magnetic Materials and Alloys | Magnetic Materials and Alloys | Magnetic Materials and Alloys | Magnetic Materials and Alloys | Magnetic Materials and Alloys | Magnetic Materials and Alloys | |||||
Daido Electronics | Daido Electronics | Daido Electronics | Daido Electronics | |||||||||||||||
Concentrations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Entity-wide revenue, major customers | ' | ' | ' | ' | ' | ' | 12.00% | 8.00% | 11.00% | 10.00% | 45.00% | 45.00% | 45.00% | 40.00% | ' | ' | ' | ' |
Sales, net of intercompany transactions | $123,937,000 | $149,066,000 | $359,369,000 | $430,580,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $18,600,000 | $16,300,000 | $45,800,000 | $39,200,000 |
Accounts Receivable, Related Parties | ' | ' | ' | ' | $6,300,000 | $7,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
RelatedParty_Transactions_Deta
Related-Party Transactions (Details) (Keli, Metals, USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Keli | Metals | ' | ' | ' | ' |
Related Party Transactions | ' | ' | ' | ' |
Purchases made from related party | $15 | $20.40 | $50.60 | $44.80 |
Net_Change_in_Operating_Assets2
Net Change in Operating Assets and Liabilities (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Decrease (increase) in operating assets: | ' | ' |
Trade accounts receivable | $8,301 | ($5,557) |
Inventory | -50,057 | 26,816 |
Prepaid expenses and other current assets | -3,368 | -1,085 |
Increase (decrease) in operating liabilities: | ' | ' |
Trade accounts payable | -10,641 | -16,642 |
Income tax payable | 2,346 | -8,768 |
Interest payable | 30,467 | -26,765 |
Asset retirement obligation | -1,415 | -2,385 |
Accrued expenses | 11,309 | -10,826 |
Net change in operating assets and liabilities | ($13,058) | ($45,212) |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||||
Sep. 11, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | |
12.00% Term Loans and 12.00% Equipment Financing, Senior Secured Notes | Strike Warrants | Strike Warrants | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | |
Interest Expense | Interest Expense | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | ||
Springing Maturity on 12.00% Term Loans | Strike Warrants | Share Purchase Agreement | Share Purchase Agreement | Springing Maturity on 12.00% Term Loans | Strike Warrants | Share Purchase Agreement | Share Purchase Agreement | Springing Maturity on 12.00% Term Loans | Strike Warrants | Share Purchase Agreement | Share Purchase Agreement | ||||||||||
Assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash equivalents | ' | ' | ' | $212,728,000 | $179,052,000 | ' | ' | ' | ' | $0 | $0 | ' | ' | ' | ' | $0 | $0 | ' | ' | ' | ' |
Liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative liabilities | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | ' | ' | 0 | 0 | 0 | 0 | ' | ' | 1,694,000 | 2,510,000 | 6,057,000 | 6,089,000 |
Fair Value Inputs, Probability Factor | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain | ' | $1,000,000 | $1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments Liability Carrying and Fair Value (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total long-term debt, carrying value | $1,773,595 | ' |
Carrying Value | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total long-term debt, carrying value | 1,337,962 | 1,339,369 |
Fair Value | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total long-term debt, fair value | 777,355 | 1,285,106 |
Convertible Debt | 3.25% Convertible Notes, net of discount, due June 2016 | Carrying Value | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total long-term debt, carrying value | 191,743 | 207,028 |
Convertible Debt | 6.00% Convertible Notes, net of discount, due September 2017 | Carrying Value | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total long-term debt, carrying value | 355,614 | 346,708 |
Convertible Debt | 5.50% Convertible Notes, net of discount, due February 2018 | Carrying Value | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total long-term debt, carrying value | 152,084 | 148,198 |
Senior Notes | 10.00% Senior Notes, net of discount, due June 2020 | Carrying Value | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total long-term debt, carrying value | 638,521 | 637,435 |
Level 1 | Convertible Debt | 3.25% Convertible Notes, net of discount, due June 2016 | Fair Value | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total long-term debt, fair value | 128,033 | 161,771 |
Level 1 | Convertible Debt | 6.00% Convertible Notes, net of discount, due September 2017 | Fair Value | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total long-term debt, fair value | 139,400 | 312,570 |
Level 1 | Convertible Debt | 5.50% Convertible Notes, net of discount, due February 2018 | Fair Value | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total long-term debt, fair value | 61,422 | 164,015 |
Level 1 | Senior Notes | 10.00% Senior Notes, net of discount, due June 2020 | Fair Value | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total long-term debt, fair value | $448,500 | $646,750 |
Fair_Value_of_Financial_Instru4
Fair Value of Financial Instruments Principal Payments (Details) (Convertible Debt, USD $) | 0 Months Ended | ||
In Millions, unless otherwise specified | Sep. 11, 2014 | Sep. 30, 2014 | Aug. 31, 2012 |
3.25% Convertible Notes, net of discount, due June 2016 | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Repayments of long-term debt | $23.50 | ' | ' |
Interest rate | ' | 3.25% | ' |
6.00% Convertible Notes, net of discount, due September 2017 | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Repayments of long-term debt | $4 | ' | ' |
Interest rate | ' | 6.00% | 6.00% |
Condensed_Consolidating_Balanc
Condensed Consolidating Balance Sheet (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | $313,477 | $314,317 | $173,914 | $227,790 |
Trade accounts receivable, net | 53,229 | 61,757 | ' | ' |
Inventory | 166,936 | 171,783 | ' | ' |
Prepaid expenses and other current assets | 27,175 | 29,210 | ' | ' |
Total current assets | 560,817 | 577,067 | ' | ' |
Non-current assets: | ' | ' | ' | ' |
Deposits | 29,999 | 25,997 | ' | ' |
Property, plant and equipment, net | 1,736,872 | 1,762,874 | ' | ' |
Inventory | 25,530 | 25,329 | ' | ' |
Intangible assets, net | 312,878 | 330,867 | ' | ' |
Investments | 32,210 | 48,875 | ' | ' |
Goodwill | 228,750 | 228,750 | ' | ' |
Investments in consolidated subsidiaries | 0 | 0 | ' | ' |
Intercompany accounts receivable | 0 | 0 | ' | ' |
Other non-current assets | 34,203 | 7,043 | ' | ' |
Total non-current assets | 2,400,442 | 2,429,735 | ' | ' |
Total assets | 2,961,259 | 3,006,802 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Trade accounts payable | 58,272 | 84,449 | ' | ' |
Accrued expenses | 66,727 | 48,501 | ' | ' |
Debt and capital lease obligations | 12,769 | 16,362 | ' | ' |
Other current liabilities | 6,922 | 4,063 | ' | ' |
Total current liabilities | 144,690 | 153,375 | ' | ' |
Non-current liabilities: | ' | ' | ' | ' |
Asset retirement obligation | 16,681 | 16,966 | ' | ' |
Deferred tax liabilities | 75,162 | 85,481 | ' | ' |
Debt and capital lease obligations | 1,582,802 | 1,363,916 | ' | ' |
Intercompany accounts payable | 0 | 0 | ' | ' |
Other non-current liabilities | 14,286 | 10,002 | ' | ' |
Total non-current liabilities | 1,688,931 | 1,476,365 | ' | ' |
Total liabilities | 1,833,621 | 1,629,740 | ' | ' |
Stockholders’ equity: | ' | ' | ' | ' |
Common stock | 245 | 241 | ' | ' |
Preferred stock | 0 | 2 | ' | ' |
Additional paid-in capital | 2,232,390 | 2,194,405 | ' | ' |
Accumulated other comprehensive loss | -15,704 | -6,451 | -7,848 | -9,433 |
Accumulated deficit | -1,115,614 | -840,474 | ' | ' |
Total Molycorp stockholders’ equity | 1,101,317 | 1,347,723 | ' | ' |
Noncontrolling interests | 26,321 | 29,339 | ' | ' |
Total stockholders’ equity | 1,127,638 | 1,377,062 | 1,325,095 | 1,251,258 |
Total liabilities and stockholders’ equity | 2,961,259 | 3,006,802 | ' | ' |
Parent | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 209,255 | 169,145 | 31,207 | 16,560 |
Trade accounts receivable, net | 0 | 0 | ' | ' |
Inventory | 0 | 0 | ' | ' |
Prepaid expenses and other current assets | 0 | 0 | ' | ' |
Total current assets | 209,255 | 169,145 | ' | ' |
Non-current assets: | ' | ' | ' | ' |
Deposits | 1,756 | 1,754 | ' | ' |
Property, plant and equipment, net | 0 | 0 | ' | ' |
Inventory | 0 | 0 | ' | ' |
Intangible assets, net | 0 | 0 | ' | ' |
Investments | 0 | 0 | ' | ' |
Goodwill | 0 | 0 | ' | ' |
Investments in consolidated subsidiaries | 340,620 | 532,767 | ' | ' |
Intercompany accounts receivable | 1,943,181 | 2,001,583 | ' | ' |
Other non-current assets | 17,701 | 0 | ' | ' |
Total non-current assets | 2,303,258 | 2,536,104 | ' | ' |
Total assets | 2,512,513 | 2,705,249 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Trade accounts payable | 0 | 0 | ' | ' |
Accrued expenses | 25,048 | 18,158 | ' | ' |
Debt and capital lease obligations | 0 | 0 | ' | ' |
Other current liabilities | 0 | 0 | ' | ' |
Total current liabilities | 25,048 | 18,158 | ' | ' |
Non-current liabilities: | ' | ' | ' | ' |
Asset retirement obligation | 0 | 0 | ' | ' |
Deferred tax liabilities | 0 | 0 | ' | ' |
Debt and capital lease obligations | 1,381,945 | 1,339,368 | ' | ' |
Intercompany accounts payable | 0 | 0 | ' | ' |
Other non-current liabilities | 4,203 | 0 | ' | ' |
Total non-current liabilities | 1,386,148 | 1,339,368 | ' | ' |
Total liabilities | 1,411,196 | 1,357,526 | ' | ' |
Stockholders’ equity: | ' | ' | ' | ' |
Common stock | 245 | 241 | ' | ' |
Preferred stock | ' | 2 | ' | ' |
Additional paid-in capital | 2,232,390 | 2,194,405 | ' | ' |
Accumulated other comprehensive loss | -15,704 | -6,451 | ' | ' |
Accumulated deficit | -1,115,614 | -840,474 | ' | ' |
Total Molycorp stockholders’ equity | 1,101,317 | 1,347,723 | ' | ' |
Noncontrolling interests | 0 | 0 | ' | ' |
Total stockholders’ equity | 1,101,317 | 1,347,723 | ' | ' |
Total liabilities and stockholders’ equity | 2,512,513 | 2,705,249 | ' | ' |
Guarantor Subsidiaries | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 8,399 | 6,467 | 8,914 | 18,020 |
Trade accounts receivable, net | 4,360 | 4,990 | ' | ' |
Inventory | 34,217 | 32,307 | ' | ' |
Prepaid expenses and other current assets | 15,028 | 15,833 | ' | ' |
Total current assets | 62,004 | 59,597 | ' | ' |
Non-current assets: | ' | ' | ' | ' |
Deposits | 28,243 | 24,243 | ' | ' |
Property, plant and equipment, net | 1,607,027 | 1,620,851 | ' | ' |
Inventory | 25,530 | 25,329 | ' | ' |
Intangible assets, net | 393 | 442 | ' | ' |
Investments | 17,016 | 34,134 | ' | ' |
Goodwill | 0 | 0 | ' | ' |
Investments in consolidated subsidiaries | 117,098 | 121,849 | ' | ' |
Intercompany accounts receivable | 0 | 0 | ' | ' |
Other non-current assets | 7,929 | 771 | ' | ' |
Total non-current assets | 1,803,236 | 1,827,619 | ' | ' |
Total assets | 1,865,240 | 1,887,216 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Trade accounts payable | 30,434 | 49,702 | ' | ' |
Accrued expenses | 18,159 | 13,782 | ' | ' |
Debt and capital lease obligations | 3,160 | 2,234 | ' | ' |
Other current liabilities | 352 | 617 | ' | ' |
Total current liabilities | 52,105 | 66,335 | ' | ' |
Non-current liabilities: | ' | ' | ' | ' |
Asset retirement obligation | 16,681 | 16,966 | ' | ' |
Deferred tax liabilities | 0 | 0 | ' | ' |
Debt and capital lease obligations | 144,638 | 19,355 | ' | ' |
Intercompany accounts payable | 2,061,122 | 1,999,562 | ' | ' |
Other non-current liabilities | 1,414 | 1,393 | ' | ' |
Total non-current liabilities | 2,223,855 | 2,037,276 | ' | ' |
Total liabilities | 2,275,960 | 2,103,611 | ' | ' |
Stockholders’ equity: | ' | ' | ' | ' |
Common stock | 0 | 0 | ' | ' |
Preferred stock | ' | 0 | ' | ' |
Additional paid-in capital | 149,857 | 149,857 | ' | ' |
Accumulated other comprehensive loss | 0 | 0 | ' | ' |
Accumulated deficit | -560,577 | -366,252 | ' | ' |
Total Molycorp stockholders’ equity | -410,720 | -216,395 | ' | ' |
Noncontrolling interests | 0 | 0 | ' | ' |
Total stockholders’ equity | -410,720 | -216,395 | ' | ' |
Total liabilities and stockholders’ equity | 1,865,240 | 1,887,216 | ' | ' |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 95,823 | 138,705 | 133,793 | 193,210 |
Trade accounts receivable, net | 48,869 | 56,767 | ' | ' |
Inventory | 132,719 | 139,476 | ' | ' |
Prepaid expenses and other current assets | 12,147 | 13,377 | ' | ' |
Total current assets | 289,558 | 348,325 | ' | ' |
Non-current assets: | ' | ' | ' | ' |
Deposits | 0 | 0 | ' | ' |
Property, plant and equipment, net | 129,845 | 142,023 | ' | ' |
Inventory | 0 | 0 | ' | ' |
Intangible assets, net | 312,485 | 330,425 | ' | ' |
Investments | 15,194 | 14,741 | ' | ' |
Goodwill | 228,750 | 228,750 | ' | ' |
Investments in consolidated subsidiaries | 0 | 0 | ' | ' |
Intercompany accounts receivable | 117,941 | 0 | ' | ' |
Other non-current assets | 8,573 | 6,272 | ' | ' |
Total non-current assets | 812,788 | 722,211 | ' | ' |
Total assets | 1,102,346 | 1,070,536 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Trade accounts payable | 27,838 | 34,747 | ' | ' |
Accrued expenses | 23,520 | 16,561 | ' | ' |
Debt and capital lease obligations | 9,609 | 14,128 | ' | ' |
Other current liabilities | 6,570 | 3,446 | ' | ' |
Total current liabilities | 67,537 | 68,882 | ' | ' |
Non-current liabilities: | ' | ' | ' | ' |
Asset retirement obligation | 0 | 0 | ' | ' |
Deferred tax liabilities | 75,162 | 85,481 | ' | ' |
Debt and capital lease obligations | 56,219 | 5,193 | ' | ' |
Intercompany accounts payable | 0 | 2,021 | ' | ' |
Other non-current liabilities | 8,669 | 8,609 | ' | ' |
Total non-current liabilities | 140,050 | 101,304 | ' | ' |
Total liabilities | 207,587 | 170,186 | ' | ' |
Stockholders’ equity: | ' | ' | ' | ' |
Common stock | 0 | 0 | ' | ' |
Preferred stock | ' | 0 | ' | ' |
Additional paid-in capital | 1,315,426 | 1,315,426 | ' | ' |
Accumulated other comprehensive loss | -15,704 | -6,451 | ' | ' |
Accumulated deficit | -431,284 | -437,964 | ' | ' |
Total Molycorp stockholders’ equity | 868,438 | 871,011 | ' | ' |
Noncontrolling interests | 26,321 | 29,339 | ' | ' |
Total stockholders’ equity | 894,759 | 900,350 | ' | ' |
Total liabilities and stockholders’ equity | 1,102,346 | 1,070,536 | ' | ' |
Eliminations | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Trade accounts receivable, net | 0 | 0 | ' | ' |
Inventory | 0 | 0 | ' | ' |
Prepaid expenses and other current assets | 0 | 0 | ' | ' |
Total current assets | 0 | 0 | ' | ' |
Non-current assets: | ' | ' | ' | ' |
Deposits | 0 | 0 | ' | ' |
Property, plant and equipment, net | 0 | 0 | ' | ' |
Inventory | 0 | 0 | ' | ' |
Intangible assets, net | 0 | 0 | ' | ' |
Investments | 0 | 0 | ' | ' |
Goodwill | 0 | 0 | ' | ' |
Investments in consolidated subsidiaries | -457,718 | -654,616 | ' | ' |
Intercompany accounts receivable | -2,061,122 | -2,001,583 | ' | ' |
Other non-current assets | 0 | 0 | ' | ' |
Total non-current assets | -2,518,840 | -2,656,199 | ' | ' |
Total assets | -2,518,840 | -2,656,199 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Trade accounts payable | 0 | 0 | ' | ' |
Accrued expenses | 0 | 0 | ' | ' |
Debt and capital lease obligations | 0 | 0 | ' | ' |
Other current liabilities | 0 | 0 | ' | ' |
Total current liabilities | 0 | 0 | ' | ' |
Non-current liabilities: | ' | ' | ' | ' |
Asset retirement obligation | 0 | 0 | ' | ' |
Deferred tax liabilities | 0 | 0 | ' | ' |
Debt and capital lease obligations | 0 | 0 | ' | ' |
Intercompany accounts payable | -2,061,122 | -2,001,583 | ' | ' |
Other non-current liabilities | 0 | 0 | ' | ' |
Total non-current liabilities | -2,061,122 | -2,001,583 | ' | ' |
Total liabilities | -2,061,122 | -2,001,583 | ' | ' |
Stockholders’ equity: | ' | ' | ' | ' |
Common stock | 0 | 0 | ' | ' |
Preferred stock | ' | 0 | ' | ' |
Additional paid-in capital | -1,465,283 | -1,465,283 | ' | ' |
Accumulated other comprehensive loss | 15,704 | 6,451 | ' | ' |
Accumulated deficit | 991,861 | 804,216 | ' | ' |
Total Molycorp stockholders’ equity | -457,718 | -654,616 | ' | ' |
Noncontrolling interests | 0 | 0 | ' | ' |
Total stockholders’ equity | -457,718 | -654,616 | ' | ' |
Total liabilities and stockholders’ equity | ($2,518,840) | ($2,656,199) | ' | ' |
Condensed_Consolidating_Statem
Condensed Consolidating Statement of Operations and Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Revenues | $123,937 | $149,066 | $359,369 | $430,580 |
Costs of sales: | ' | ' | ' | ' |
Costs excluding depreciation and amortization | -119,633 | -150,444 | -358,506 | -421,699 |
Depreciation and amortization | -19,382 | -16,400 | -55,608 | -49,283 |
Gross loss | -15,078 | -17,778 | -54,745 | -40,402 |
Operating expenses: | ' | ' | ' | ' |
Selling, general and administrative | -21,907 | -24,468 | -60,286 | -76,702 |
Depreciation, amortization and accretion | -8,093 | -10,072 | -22,552 | -26,273 |
Research and development | -4,353 | -5,565 | -11,603 | -18,476 |
Impairment of long-lived assets | 0 | -1,118 | 0 | -1,495 |
Operating loss | -49,431 | -59,001 | -149,186 | -163,348 |
Other (expenses) income: | ' | ' | ' | ' |
Other (expense) income | -2,611 | -891 | -1,839 | 2,474 |
Impairment of investment | -12,000 | 0 | -12,000 | 0 |
Interest expense, net of capitalized interest | -35,442 | -16,289 | -112,367 | -42,807 |
Interest income (expense) from intercompany notes | 0 | 0 | 0 | 0 |
Equity loss from consolidated subsidiaries | 0 | 0 | 0 | 0 |
Loss before income taxes and equity earnings | -99,484 | -76,181 | -275,392 | -203,681 |
Income tax (expense) benefit | -3,572 | 12,902 | 5,762 | 38,922 |
Equity in loss of affiliates | -2,092 | -2,334 | -5,368 | -8,690 |
Loss from continuing operations | -105,148 | -65,613 | -274,998 | -173,449 |
Loss from discontinuing operations, net of tax | 0 | -4,186 | 0 | -5,190 |
Net loss | -105,148 | -69,799 | -274,998 | -178,639 |
Net income attributable to noncontrolling interests | -31 | -130 | -142 | -1,433 |
Net loss attributable to Molycorp stockholders | -105,179 | -69,929 | -275,140 | -180,072 |
Other comprehensive (loss) income: | ' | ' | ' | ' |
Foreign currency translation adjustments | -8,292 | 4,217 | -9,253 | 1,585 |
Comprehensive loss | -113,440 | -65,582 | -284,251 | -177,054 |
Comprehensive loss attributable to: | ' | ' | ' | ' |
Molycorp stockholders | -113,409 | -65,452 | -284,109 | -175,621 |
Noncontrolling interest | -31 | -130 | -142 | -1,433 |
Parent | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Revenues | 0 | 0 | 0 | 0 |
Costs of sales: | ' | ' | ' | ' |
Costs excluding depreciation and amortization | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Gross loss | 0 | 0 | 0 | 0 |
Operating expenses: | ' | ' | ' | ' |
Selling, general and administrative | -4 | -3 | -397 | -3 |
Depreciation, amortization and accretion | 0 | 0 | 0 | 0 |
Research and development | 0 | 0 | 0 | 0 |
Impairment of long-lived assets | 0 | 0 | 0 | 0 |
Operating loss | -4 | -3 | -397 | -3 |
Other (expenses) income: | ' | ' | ' | ' |
Other (expense) income | -21,778 | 1,731 | -24,900 | 1,731 |
Impairment of investment | 0 | ' | 0 | ' |
Interest expense, net of capitalized interest | -33,201 | -14,093 | -107,415 | -39,978 |
Interest income (expense) from intercompany notes | 10,047 | 9,211 | 30,836 | 27,455 |
Equity loss from consolidated subsidiaries | -60,243 | -54,858 | -182,894 | -163,247 |
Loss before income taxes and equity earnings | -105,179 | -58,012 | -284,770 | -174,042 |
Income tax (expense) benefit | 0 | -11,914 | 9,630 | -6,030 |
Equity in loss of affiliates | 0 | 0 | 0 | 0 |
Loss from continuing operations | ' | -69,926 | ' | -180,072 |
Loss from discontinuing operations, net of tax | ' | 0 | ' | 0 |
Net loss | -105,179 | -69,926 | -275,140 | -180,072 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net loss attributable to Molycorp stockholders | -105,179 | -69,926 | -275,140 | -180,072 |
Other comprehensive (loss) income: | ' | ' | ' | ' |
Foreign currency translation adjustments | 0 | 0 | 0 | 0 |
Comprehensive loss | -105,179 | -69,926 | -275,140 | -180,072 |
Comprehensive loss attributable to: | ' | ' | ' | ' |
Molycorp stockholders | -105,179 | -69,926 | -275,140 | -180,072 |
Noncontrolling interest | 0 | 0 | 0 | 0 |
Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Revenues | 19,163 | 19,237 | 48,402 | 68,014 |
Costs of sales: | ' | ' | ' | ' |
Costs excluding depreciation and amortization | -45,596 | -55,517 | -137,465 | -147,209 |
Depreciation and amortization | -16,460 | -9,336 | -44,618 | -28,523 |
Gross loss | -42,893 | -45,616 | -133,681 | -107,718 |
Operating expenses: | ' | ' | ' | ' |
Selling, general and administrative | -11,233 | -15,623 | -29,828 | -49,126 |
Depreciation, amortization and accretion | -952 | -1,597 | -3,054 | -3,258 |
Research and development | -111 | -1,037 | -354 | -4,428 |
Impairment of long-lived assets | 0 | 0 | 0 | 0 |
Operating loss | -55,189 | -63,873 | -166,917 | -164,530 |
Other (expenses) income: | ' | ' | ' | ' |
Other (expense) income | 90 | 63 | 302 | 306 |
Impairment of investment | -12,000 | ' | -12,000 | ' |
Interest expense, net of capitalized interest | -1,894 | -744 | -4,289 | -5,039 |
Interest income (expense) from intercompany notes | -537 | 1,412 | -1,551 | 4,293 |
Equity loss from consolidated subsidiaries | -3,065 | -333 | -4,751 | -6,742 |
Loss before income taxes and equity earnings | -72,595 | -63,475 | -189,206 | -171,712 |
Income tax (expense) benefit | 0 | 14,879 | 0 | 23,130 |
Equity in loss of affiliates | -1,820 | -1,617 | -5,119 | -5,239 |
Loss from continuing operations | ' | -50,213 | ' | -153,821 |
Loss from discontinuing operations, net of tax | ' | 0 | ' | 0 |
Net loss | -74,415 | -50,213 | -194,325 | -153,821 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net loss attributable to Molycorp stockholders | -74,415 | -50,213 | -194,325 | -153,821 |
Other comprehensive (loss) income: | ' | ' | ' | ' |
Foreign currency translation adjustments | 0 | 0 | 0 | 0 |
Comprehensive loss | -74,415 | -50,213 | -194,325 | -153,821 |
Comprehensive loss attributable to: | ' | ' | ' | ' |
Molycorp stockholders | -74,415 | -50,213 | -194,325 | -153,821 |
Noncontrolling interest | 0 | 0 | 0 | 0 |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Revenues | 115,150 | 142,421 | 342,201 | 397,548 |
Costs of sales: | ' | ' | ' | ' |
Costs excluding depreciation and amortization | -84,413 | -107,519 | -252,275 | -309,472 |
Depreciation and amortization | -2,922 | -7,064 | -10,990 | -20,760 |
Gross loss | 27,815 | 27,838 | 78,936 | 67,316 |
Operating expenses: | ' | ' | ' | ' |
Selling, general and administrative | -10,670 | -8,842 | -30,061 | -27,573 |
Depreciation, amortization and accretion | -7,141 | -8,475 | -19,498 | -23,015 |
Research and development | -4,242 | -4,528 | -11,249 | -14,048 |
Impairment of long-lived assets | 0 | -1,118 | 0 | -1,495 |
Operating loss | 5,762 | 4,875 | 18,128 | 1,185 |
Other (expenses) income: | ' | ' | ' | ' |
Other (expense) income | 19,077 | -2,685 | 22,759 | 437 |
Impairment of investment | 0 | ' | 0 | ' |
Interest expense, net of capitalized interest | -347 | -1,452 | -663 | 2,210 |
Interest income (expense) from intercompany notes | -9,510 | -10,623 | -29,285 | -31,748 |
Equity loss from consolidated subsidiaries | 0 | 0 | 0 | 0 |
Loss before income taxes and equity earnings | 14,982 | -9,885 | 10,939 | -27,916 |
Income tax (expense) benefit | -3,572 | 9,937 | -3,868 | 21,822 |
Equity in loss of affiliates | -272 | -717 | -249 | -3,451 |
Loss from continuing operations | ' | -665 | ' | -9,545 |
Loss from discontinuing operations, net of tax | ' | -4,186 | ' | -5,190 |
Net loss | 11,138 | -4,851 | 6,822 | -14,735 |
Net income attributable to noncontrolling interests | -31 | -130 | -142 | -1,433 |
Net loss attributable to Molycorp stockholders | 11,107 | -4,981 | 6,680 | -16,168 |
Other comprehensive (loss) income: | ' | ' | ' | ' |
Foreign currency translation adjustments | -8,292 | 4,217 | -9,253 | 1,585 |
Comprehensive loss | 2,846 | -634 | -2,431 | -13,150 |
Comprehensive loss attributable to: | ' | ' | ' | ' |
Molycorp stockholders | 2,877 | -504 | -2,289 | -11,717 |
Noncontrolling interest | -31 | -130 | -142 | -1,433 |
Eliminations | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Revenues | -10,376 | -12,592 | -31,234 | -34,982 |
Costs of sales: | ' | ' | ' | ' |
Costs excluding depreciation and amortization | 10,376 | 12,592 | 31,234 | 34,982 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Gross loss | 0 | 0 | 0 | 0 |
Operating expenses: | ' | ' | ' | ' |
Selling, general and administrative | 0 | 0 | 0 | 0 |
Depreciation, amortization and accretion | 0 | 0 | 0 | 0 |
Research and development | 0 | 0 | 0 | 0 |
Impairment of long-lived assets | 0 | 0 | 0 | 0 |
Operating loss | 0 | 0 | 0 | 0 |
Other (expenses) income: | ' | ' | ' | ' |
Other (expense) income | 0 | 0 | 0 | 0 |
Impairment of investment | 0 | ' | 0 | ' |
Interest expense, net of capitalized interest | 0 | 0 | 0 | 0 |
Interest income (expense) from intercompany notes | 0 | 0 | 0 | 0 |
Equity loss from consolidated subsidiaries | 63,308 | 55,191 | 187,645 | 169,989 |
Loss before income taxes and equity earnings | 63,308 | 55,191 | 187,645 | 169,989 |
Income tax (expense) benefit | 0 | 0 | 0 | 0 |
Equity in loss of affiliates | 0 | 0 | 0 | 0 |
Loss from continuing operations | ' | 55,191 | ' | 169,989 |
Loss from discontinuing operations, net of tax | ' | 0 | ' | 0 |
Net loss | 63,308 | 55,191 | 187,645 | 169,989 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net loss attributable to Molycorp stockholders | 63,308 | 55,191 | 187,645 | 169,989 |
Other comprehensive (loss) income: | ' | ' | ' | ' |
Foreign currency translation adjustments | 0 | 0 | 0 | 0 |
Comprehensive loss | 63,308 | 55,191 | 187,645 | 169,989 |
Comprehensive loss attributable to: | ' | ' | ' | ' |
Molycorp stockholders | 63,308 | 55,191 | 187,645 | 169,989 |
Noncontrolling interest | $0 | $0 | $0 | $0 |
Condensed_Consolidating_Statem1
Condensed Consolidating Statements of Cash Flows (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net cash provided by (used in) operating activities | ($146,406) | ($90,013) |
Cash flows from investing activities: | ' | ' |
Loans to guarantor | 0 | 0 |
Loans to parent | ' | 0 |
Intercompany advances made | 0 | 0 |
Loans to non-guarantor | ' | 0 |
Repayments from non-guarantor | 0 | 0 |
Investment in joint ventures | -703 | -3,423 |
Capital expenditures | -62,837 | -334,597 |
Recovery from insurance claims | 12,900 | 0 |
Other investing activities | 460 | -364 |
Net cash used in investing activities | -50,180 | -338,384 |
Cash flows from financing activities: | ' | ' |
Repayments of debt | -5,879 | -25,990 |
Debt issuance costs | -14,768 | 0 |
Proceeds from the Financings | 250,000 | 0 |
Partial repayment of convertible notes | -27,495 | 0 |
Net proceeds from sale of common stock | 0 | 248,150 |
Issuance of 5.50% Convertible Notes | 0 | 165,600 |
Payments of preferred dividends | -2,846 | -8,539 |
Dividend paid to noncontrolling interests | -3,170 | -4,472 |
Borrowings from non-guarantor | 0 | 0 |
Borrowing from guarantor | ' | 0 |
Repayments to parent | 0 | 0 |
Repayment to guarantor | ' | 0 |
Intercompany advances owed | 0 | 0 |
Other financing activities | 1,626 | -797 |
Net cash (used in) provided by financing activities | 197,468 | 373,952 |
Effect of exchange rate changes on cash | -1,722 | 569 |
Net change in cash and cash equivalents | -840 | -53,876 |
Cash and cash equivalents at beginning of the period | 314,317 | 227,790 |
Cash and cash equivalents at end of period | 313,477 | 173,914 |
Parent | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net cash provided by (used in) operating activities | -25,585 | -2,990 |
Cash flows from investing activities: | ' | ' |
Loans to guarantor | 0 | 0 |
Loans to parent | ' | 0 |
Intercompany advances made | -174,993 | -438,374 |
Loans to non-guarantor | ' | 0 |
Repayments from non-guarantor | 34,997 | 38,000 |
Investment in joint ventures | 0 | 0 |
Capital expenditures | 0 | 0 |
Recovery from insurance claims | 0 | ' |
Other investing activities | 0 | 0 |
Net cash used in investing activities | -139,996 | -400,374 |
Cash flows from financing activities: | ' | ' |
Repayments of debt | 0 | 0 |
Debt issuance costs | -4,032 | ' |
Proceeds from the Financings | 50,167 | ' |
Partial repayment of convertible notes | -27,495 | ' |
Net proceeds from sale of common stock | ' | 248,150 |
Issuance of 5.50% Convertible Notes | ' | 165,600 |
Payments of preferred dividends | -2,846 | -8,539 |
Dividend paid to noncontrolling interests | 0 | 0 |
Borrowings from non-guarantor | 0 | 12,800 |
Borrowing from guarantor | ' | 0 |
Repayments to parent | 0 | 0 |
Repayment to guarantor | ' | 0 |
Intercompany advances owed | 190,160 | 0 |
Other financing activities | -263 | 0 |
Net cash (used in) provided by financing activities | 205,691 | 418,011 |
Effect of exchange rate changes on cash | 0 | 0 |
Net change in cash and cash equivalents | 40,110 | 14,647 |
Cash and cash equivalents at beginning of the period | 169,145 | 16,560 |
Cash and cash equivalents at end of period | 209,255 | 31,207 |
Guarantor Subsidiaries | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net cash provided by (used in) operating activities | -138,045 | -79,888 |
Cash flows from investing activities: | ' | ' |
Loans to guarantor | 0 | 0 |
Loans to parent | ' | 0 |
Intercompany advances made | -133,291 | 0 |
Loans to non-guarantor | ' | -1,300 |
Repayments from non-guarantor | 0 | 264 |
Investment in joint ventures | 0 | -3,423 |
Capital expenditures | -56,837 | -320,829 |
Recovery from insurance claims | 12,900 | ' |
Other investing activities | 0 | 0 |
Net cash used in investing activities | -177,228 | -325,288 |
Cash flows from financing activities: | ' | ' |
Repayments of debt | 0 | 0 |
Debt issuance costs | -7,605 | ' |
Proceeds from the Financings | 139,833 | ' |
Partial repayment of convertible notes | 0 | ' |
Net proceeds from sale of common stock | ' | 0 |
Issuance of 5.50% Convertible Notes | ' | 0 |
Payments of preferred dividends | 0 | 0 |
Dividend paid to noncontrolling interests | 0 | 0 |
Borrowings from non-guarantor | 6,655 | 40,000 |
Borrowing from guarantor | ' | 0 |
Repayments to parent | 0 | 0 |
Repayment to guarantor | ' | 0 |
Intercompany advances owed | 176,433 | 356,867 |
Other financing activities | 1,889 | -797 |
Net cash (used in) provided by financing activities | 317,205 | 396,070 |
Effect of exchange rate changes on cash | 0 | 0 |
Net change in cash and cash equivalents | 1,932 | -9,106 |
Cash and cash equivalents at beginning of the period | 6,467 | 18,020 |
Cash and cash equivalents at end of period | 8,399 | 8,914 |
Non-Guarantor Subsidiaries | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net cash provided by (used in) operating activities | 17,224 | -7,135 |
Cash flows from investing activities: | ' | ' |
Loans to guarantor | -6,655 | -40,000 |
Loans to parent | ' | -12,800 |
Intercompany advances made | -58,309 | 0 |
Loans to non-guarantor | ' | 0 |
Repayments from non-guarantor | 0 | 0 |
Investment in joint ventures | -703 | 0 |
Capital expenditures | -6,000 | -13,768 |
Recovery from insurance claims | 0 | ' |
Other investing activities | 460 | -364 |
Net cash used in investing activities | -71,207 | -66,932 |
Cash flows from financing activities: | ' | ' |
Repayments of debt | -5,879 | -25,990 |
Debt issuance costs | -3,131 | ' |
Proceeds from the Financings | 60,000 | ' |
Partial repayment of convertible notes | 0 | ' |
Net proceeds from sale of common stock | ' | 0 |
Issuance of 5.50% Convertible Notes | ' | 0 |
Payments of preferred dividends | 0 | 0 |
Dividend paid to noncontrolling interests | -3,170 | -4,472 |
Borrowings from non-guarantor | 0 | 0 |
Borrowing from guarantor | ' | 1,300 |
Repayments to parent | -34,997 | -38,000 |
Repayment to guarantor | ' | -264 |
Intercompany advances owed | 0 | 81,507 |
Other financing activities | 0 | 0 |
Net cash (used in) provided by financing activities | 12,823 | 14,081 |
Effect of exchange rate changes on cash | -1,722 | 569 |
Net change in cash and cash equivalents | -42,882 | -59,417 |
Cash and cash equivalents at beginning of the period | 138,705 | 193,210 |
Cash and cash equivalents at end of period | 95,823 | 133,793 |
Eliminations | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net cash provided by (used in) operating activities | 0 | 0 |
Cash flows from investing activities: | ' | ' |
Loans to guarantor | 6,655 | 40,000 |
Loans to parent | ' | 12,800 |
Intercompany advances made | 366,593 | 438,374 |
Loans to non-guarantor | ' | 1,300 |
Repayments from non-guarantor | -34,997 | -38,264 |
Investment in joint ventures | 0 | 0 |
Capital expenditures | 0 | 0 |
Recovery from insurance claims | 0 | ' |
Other investing activities | 0 | 0 |
Net cash used in investing activities | 338,251 | 454,210 |
Cash flows from financing activities: | ' | ' |
Repayments of debt | 0 | 0 |
Debt issuance costs | 0 | ' |
Proceeds from the Financings | 0 | ' |
Partial repayment of convertible notes | 0 | ' |
Net proceeds from sale of common stock | ' | 0 |
Issuance of 5.50% Convertible Notes | ' | 0 |
Payments of preferred dividends | 0 | 0 |
Dividend paid to noncontrolling interests | 0 | 0 |
Borrowings from non-guarantor | -6,655 | -52,800 |
Borrowing from guarantor | ' | -1,300 |
Repayments to parent | 34,997 | 38,000 |
Repayment to guarantor | ' | 264 |
Intercompany advances owed | -366,593 | -438,374 |
Other financing activities | 0 | 0 |
Net cash (used in) provided by financing activities | -338,251 | -454,210 |
Effect of exchange rate changes on cash | 0 | 0 |
Net change in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of the period | 0 | 0 |
Cash and cash equivalents at end of period | $0 | $0 |
Impairment_of_Investment_Detai
Impairment of Investment (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2011 | Sep. 30, 2014 | Sep. 30, 2014 | |
Boulder Wind Power, Inc. | Boulder Wind Power, Inc. | Boulder Wind Power, Inc. | Boulder Wind Power, Inc. | |||||
Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | |||||||
Schedule of Cost-method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Cost Method Investments | ' | ' | ' | ' | $12,000,000 | $20,000,000 | ' | ' |
Impairment of investment | $12,000,000 | $0 | $12,000,000 | $0 | ' | ' | $12,000,000 | $12,000,000 |