Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 24, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | U.S. Silica Holdings, Inc. | ||
Entity Central Index Key | 1524741 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 53,324,845 | ||
Entity Public Float | $2,978,580,861 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ||
Cash and cash equivalents | $267,281 | $78,256 |
Short-term investments | 75,143 | 74,980 |
Accounts receivable, net | 120,881 | 75,207 |
Inventories, net | 66,712 | 64,212 |
Prepaid expenses and other current assets | 9,267 | 7,140 |
Deferred income taxes, net | 22,295 | 17,737 |
Income tax deposits | 746 | 0 |
Total current assets | 562,325 | 317,532 |
Property, plant and mine development, net | 565,755 | 442,116 |
Debt issuance costs, net | 7,211 | 5,255 |
Goodwill | 68,647 | 68,403 |
Trade names | 14,914 | 10,436 |
Customer relationships, net | 6,984 | 6,120 |
Other assets | 12,317 | 13,599 |
Total assets | 1,238,153 | 863,461 |
Current Liabilities: | ||
Book overdraft | 4,215 | 4,659 |
Accounts payable | 85,781 | 37,376 |
Dividends payable | 6,805 | 6,709 |
Accrued liabilities | 17,911 | 10,823 |
Accrued interest | 60 | 41 |
Current portion of long-term debt | 4,718 | 3,488 |
Income tax payable | 0 | 1,037 |
Current portion of deferred revenue | 26,771 | 0 |
Total current liabilities | 146,261 | 64,133 |
Long-term debt | 497,579 | 367,963 |
Liability for pension and other post-retirement benefits | 59,932 | 36,802 |
Deferred revenue | 64,722 | 0 |
Deferred revenue | 49,749 | 71,318 |
Other long-term obligations | 16,094 | 13,951 |
Total liabilities | 834,337 | 554,167 |
Stockholders’ Equity: | ||
Preferred stock | 0 | 0 |
Common stock | 539 | 534 |
Additional paid-in capital | 191,086 | 174,799 |
Additional paid-in capital | 232,551 | 137,978 |
Retained earnings | -542 | 0 |
Treasury stock, at cost | -19,818 | -4,017 |
Accumulated other comprehensive loss | 403,816 | 309,294 |
Total stockholders’ equity | $1,238,153 | $863,461 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||||||||||
Sales | $249,589 | $241,256 | $205,801 | $180,095 | $149,474 | $144,372 | $129,828 | $122,311 | $876,741 | $545,985 | $441,921 |
Cost of goods sold (excluding depreciation, depletion and amortization) | 157,700 | 149,697 | 132,417 | 126,770 | 102,875 | 90,983 | 80,297 | 74,412 | 566,584 | 348,567 | 256,535 |
Operating expenses | |||||||||||
Selling, general and administrative | 35,659 | 18,600 | 19,267 | 15,445 | 14,456 | 12,800 | 10,099 | 12,404 | 88,971 | 49,759 | 41,299 |
Depreciation, depletion and amortization | 12,664 | 12,425 | 10,341 | 9,589 | 10,098 | 9,152 | 8,890 | 8,278 | 45,019 | 36,418 | 25,099 |
Total operating expenses | 48,323 | 31,025 | 29,608 | 25,034 | 24,554 | 21,952 | 18,989 | 20,682 | 133,990 | 86,177 | 66,398 |
Operating income | 43,566 | 60,534 | 43,776 | 28,291 | 22,045 | 31,437 | 30,542 | 27,217 | 176,167 | 111,241 | 118,988 |
Other (expense) income | |||||||||||
Interest expense | -5,431 | -4,950 | -4,013 | -3,808 | -4,086 | -4,144 | -3,535 | -3,576 | -18,202 | -15,341 | -13,795 |
Early extinguishment of debt | 0 | 480 | 0 | 0 | 0 | 480 | 0 | ||||
Other income, net, including interest income | 379 | 120 | 221 | 38 | 152 | 260 | 63 | 122 | 758 | 597 | 4,612 |
Total other (expenses) income | -5,052 | -4,830 | -3,792 | -3,770 | -3,934 | -4,364 | -3,472 | -3,454 | -17,444 | -15,224 | -9,183 |
Income before income taxes | 38,514 | 55,704 | 39,984 | 24,521 | 18,111 | 27,073 | 27,070 | 23,763 | 158,723 | 96,017 | 109,805 |
Income tax expense | -5,276 | -14,427 | -11,330 | -6,150 | -1,658 | -5,739 | -6,878 | -6,486 | -37,183 | -20,761 | -30,651 |
Net income | $33,238 | $41,277 | $28,654 | $18,371 | $16,453 | $21,334 | $20,192 | $17,277 | $121,540 | $75,256 | $79,154 |
Earnings per share: | |||||||||||
Basic (in usd per share) | $0.62 | $0.77 | $0.53 | $0.34 | $0.31 | $0.40 | $0.38 | $0.33 | $2.26 | $1.42 | $1.50 |
Diluted (in usd per share) | $0.61 | $0.76 | $0.53 | $0.34 | $0.31 | $0.40 | $0.38 | $0.32 | $2.23 | $1.41 | $1.50 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $121,540 | $75,256 | $79,154 |
Other comprehensive income: | |||
Unrealized gain (loss) on derivatives (net of tax of $(32), $66 and $144 for 2014, 2013, and 2012, respectively) | -55 | 103 | 227 |
Unrealized loss on investments (net of tax of $(8), $(17) and $0 for the years ended December 31 2014, 2013, and 2012, respectively) | -14 | -27 | 0 |
Pension and other post-retirement benefits liability adjustment (net of tax of $(9,678), $6,419 and $(1,299) for the years ended December 31 2014, 2013, and 2012, respectively) | -15,732 | 10,082 | -2,041 |
Comprehensive income | $105,739 | $85,414 | $77,340 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Tax expense (benefit) on unrealized gain (loss) on derivatives | ($32) | $66 | $144 |
Tax expense (benefit) on unrealized gain (loss) on investments | -8 | -17 | 0 |
Tax expense (benefit) on pension and other post-retirement benefits liability adjustment | ($9,678) | $6,419 | ($1,299) |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning balance at Dec. 31, 2011 | $121,934,000 | $500,000 | $0 | $103,757,000 | $30,038,000 | ($12,361,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 79,154,000 | 79,154,000 | ||||
Unrealized gain (loss) on derivatives | 227,000 | 227,000 | ||||
Unrealized loss on short-term investments | 0 | |||||
Pension and postretirement liability | -2,041,000 | -2,041,000 | ||||
Cash dividends declared ($0.50, $0.375 and $0.50 per share of common stock for 2014, 2013 and 2012 respectively)) | -26,461,000 | -26,461,000 | ||||
Equity-based compensation | 2,330,000 | 2,330,000 | ||||
Excess tax benefit from equity compensation | 0 | |||||
Issuance of common stock (January 2012 IPO at $17.00 per share, net of issuance costs of $9,171) | 40,829,000 | 29,000 | 40,800,000 | |||
Issuance of treasury stock | 102,000 | 102,000 | ||||
Repurchase of common stock | -1,072,000 | -1,072,000 | ||||
Capital contributed by parent | 16,692,000 | 16,692,000 | ||||
Ending balance at Dec. 31, 2012 | 231,694,000 | 529,000 | -970,000 | 163,579,000 | 82,731,000 | -14,175,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 75,256,000 | 75,256,000 | ||||
Unrealized gain (loss) on derivatives | 103,000 | 103,000 | ||||
Unrealized loss on short-term investments | -27,000 | -27,000 | ||||
Pension and postretirement liability | 10,082,000 | 10,082,000 | ||||
Cash dividends declared ($0.50, $0.375 and $0.50 per share of common stock for 2014, 2013 and 2012 respectively)) | -20,009,000 | -20,009,000 | ||||
Equity-based compensation | 3,039,000 | 3,039,000 | ||||
Excess tax benefit from equity compensation | 1,380,000 | 1,380,000 | ||||
Proceeds from options exercised | 7,942,000 | 5,000 | 1,136,000 | 6,801,000 | ||
Shares withheld for employee taxes related to vested restricted stock and stock units | -166,000 | -166,000 | ||||
Ending balance at Dec. 31, 2013 | 309,294,000 | 534,000 | 0 | 174,799,000 | 137,978,000 | -4,017,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 121,540,000 | 121,540,000 | ||||
Unrealized gain (loss) on derivatives | -55,000 | -55,000 | ||||
Unrealized loss on short-term investments | -14,000 | -14,000 | ||||
Pension and postretirement liability | -15,732,000 | -15,732,000 | ||||
Cash dividends declared ($0.50, $0.375 and $0.50 per share of common stock for 2014, 2013 and 2012 respectively)) | -26,967,000 | -26,967,000 | ||||
Equity-based compensation | 7,487,000 | 7,487,000 | ||||
Excess tax benefit from equity compensation | 3,813,000 | 3,813,000 | ||||
Proceeds from options exercised | 5,563,000 | 4,000 | 572,000 | 4,987,000 | ||
Shares withheld for employee taxes related to vested restricted stock and stock units | -614,000 | 1,000 | -615,000 | |||
Repurchase of common stock | -499,000 | -499,000 | ||||
Ending balance at Dec. 31, 2014 | $403,816,000 | $539,000 | ($542,000) | $191,086,000 | $232,551,000 | ($19,818,000) |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2012 |
Common stock cash dividend declared, per share | $0.50 |
Common stock issuance costs | $9,171 |
IPO | |
Common stock issuance costs | $9,171 |
Issuance of common stock, per share | $17 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities: | |||
Net income | $121,540 | $75,256 | $79,154 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, depletion and amortization | 45,019 | 36,418 | 25,099 |
Debt issuance amortization | 912 | 680 | 515 |
Original issue discount amortization | 272 | 209 | 168 |
Early extinguishment of debt | 0 | 480 | 0 |
Deferred income taxes | -2,442 | -1,889 | 2,249 |
Gain on disposal of property, plant and equipment | 222 | -162 | -472 |
Deferred revenue | -8,508 | -4,855 | -7,666 |
Equity-based compensation | 7,487 | 3,039 | 2,330 |
Excess tax benefit from equity-based compensation | -3,813 | -1,380 | 0 |
Other | 8,420 | -863 | -1,297 |
Changes in assets and liabilities: | |||
Accounts receivable | -46,829 | -16,965 | -13,239 |
Inventories | 34 | -24,377 | -10,528 |
Prepaid expenses and other current assets | -2,158 | -2,959 | 4,114 |
Income taxes | 2,063 | -18,179 | 24,491 |
Accounts payable and accrued liabilities | 51,357 | 1,385 | 8,458 |
Accrued interest | 15 | 39 | -1,657 |
Liability for pension and other post-retirement benefits | -2,180 | 574 | -2,769 |
Advisory services termination fee to Golden Gate Capital | 0 | 0 | -8,000 |
Net cash provided by operating activities | 171,411 | 46,451 | 100,950 |
Investing activities: | |||
Capital expenditures | -92,609 | -60,470 | -105,719 |
Purchase of short-term investments | 0 | -75,000 | 0 |
Acquisition of business, net of cash acquired | -98,317 | 0 | 0 |
Proceeds from sale of property, plant and equipment | 20 | 357 | 1,258 |
Net cash provided by operating activities | -190,906 | -135,113 | -104,461 |
Financing activities: | |||
Proceeds from issuance of common stock in initial public offering | 0 | 0 | 50,000 |
Dividends paid | -26,871 | -13,300 | -26,461 |
Repurchase of common stock | -499 | 0 | -1,072 |
Issuance of treasury stock | 0 | 0 | 102 |
Proceeds from options exercised | 5,563 | 7,942 | 0 |
Excess tax benefit from equity-based compensation | 3,813 | 1,380 | 0 |
Tax payments related to shares withheld for vested restricted stock and stock units | -614 | -166 | 0 |
Advances from customers | 100,000 | 0 | 0 |
Issuance of long-term debt | 134,325 | 373,792 | 0 |
Repayment of long-term debt | -3,750 | -257,976 | -2,600 |
Repayment of short-term debt | 0 | 0 | -3,932 |
Change in book overdraft | -444 | -731 | -198 |
Prepayment penalties | 0 | -250 | 0 |
Principal payments on capital lease obligations | -132 | -744 | 0 |
Financing fees | -2,871 | -4,051 | -1,334 |
Common stock issuance costs | 0 | 0 | -9,171 |
Net cash provided by financing activities | 208,520 | 105,896 | 5,334 |
Net increase in cash and cash equivalents | 189,025 | 17,234 | 1,823 |
Cash and cash equivalents, beginning of period | 78,256 | 61,022 | 59,199 |
Cash and cash equivalents, end of period | 267,281 | 78,256 | 61,022 |
Non-cash financing activities: | |||
Contribution of note from parent and related accrued interest | 0 | 0 | 16,692 |
Capital lease obligations incurred to acquire assets | 0 | 744 | 0 |
Cash paid during the period for: | |||
Interest | 15,920 | 14,716 | 12,436 |
Taxes | $37,637 | $40,760 | $3,883 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Organization | ORGANIZATION |
U.S. Silica Holdings, Inc. (“Holdings,” and together with its subsidiaries “we,” “us” or the “Company”) is a domestic producer of commercial silica, a specialized mineral that is a critical input into a variety of end markets. During our 114 year history, we have developed core competencies in mining, processing, logistics and materials science that enable us to produce and cost-effectively deliver products to customers across these markets. We manufacture frac sand used to stimulate and maintain the flow of hydrocarbons in oil and natural gas wells. Our silica is also used as a raw material in a wide range of industrial applications, including glassmaking and chemical manufacturing. We operate in two business segments: (1) Oil & Gas Proppants and (2) Industrial & Specialty Products (see Note U - Segment Reporting for additional details). | |
We completed our initial public offering of common stock (the “IPO”) through a Registration Statement on Form S-1 (File No. 333-175636) on January 31, 2012. As a result of the offering, we received net proceeds of approximately $40.8 million after deducting $3.5 million of underwriting discounts and commissions and offering expenses of $5.7 million. | |
On July 31, 2014, we completed our acquisition of Cadre Services, Inc. ("Cadre"), a regional sand mining company based in Voca, Texas, for approximately $98.3 million in cash. (See Note E - Business Combinations) |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounting Policies [Abstract] | |||||||||
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||
Basis of Presentation and Consolidation | |||||||||
The accompanying Consolidated Financial Statements (the “Financial Statements”) have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). In the opinion of management, all adjustments necessary for a fair presentation of the Financial Statements have been included. Such adjustments are of a normal, recurring nature. We have reclassified certain immaterial amounts in the prior years’ assets section of the consolidated balance sheets and operating activities section of the consolidated statement of cash flows to conform to the current year presentation. These reclassifications had no effect on previously reported total assets and net cash flows from operations. | |||||||||
In order to make this report easier to read, we refer throughout to (i) our Consolidated Balance Sheets as our “Balance Sheets,” (ii) our Consolidated Statements of Operations as our “Income Statements,” and (iii) our Consolidated Statements of Cash Flows as our “Cash Flows.” | |||||||||
Consolidation | |||||||||
The Financial Statements include the accounts of Holdings and its direct and indirect wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. | |||||||||
We follow FASB Accounting Standards Codification (“ASC”) guidance for identification and reporting of entities over which control is achieved through means other than voting rights. The guidance defines such entities as Variable Interest Entities (“VIEs”). For the periods presented herein, we have identified no entities over which we maintain any level of control that would qualify for consolidation under ASC guidance. | |||||||||
Use of Estimates and Assumptions | |||||||||
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Financial Statements. Actual results could differ from these estimates. | |||||||||
Revenue Recognition | |||||||||
We derive our sales by mining and processing minerals that our customers purchase for various uses. Our sales are primarily a function of the price per ton and the number of tons sold. The price invoiced reflects product, transportation and additional services as applicable, such as storage and transloading the product from railcars to trucks for delivery to the customer site. | |||||||||
Revenue is recognized from a sale when persuasive evidence of an arrangement exists, the price is determinable, the product has been delivered or legal title has been transferred to the customer and collection of the sales is reasonably assured. Amounts received from customers in advance of revenue recognition are deferred as liabilities. | |||||||||
We primarily sell our products under short-term price agreements or at prevailing market rates. For a limited number of customers, we sell under long-term, competitively-bid take-or-pay supply agreements. During the course of the year ended December 31, 2014, we were party to take-or-pay supply agreements with ten of our customers in the Oil & Gas Proppants segment with initial terms expiring between 2014 and 2019. These agreements define, among other commitments, the volume of product that our customers must purchase, the volume of product that we must provide and the price that we will charge that our customers will pay for each product. Prices under these agreements are generally fixed and subject to upward adjustment in response to certain cost increases. | |||||||||
We invoice the majority of our clients on a per shipment basis, although for some larger customers, we consolidate invoices weekly or monthly. Standard terms are net 30 days, although extended terms are offered in competitive situations. | |||||||||
Cash and Cash Equivalents | |||||||||
Cash and cash equivalents consist of all highly liquid investments with a maturity of three months or less when purchased. Because of the short maturity of these investments, the carrying amounts approximate their fair value. Cash and cash equivalents are invested primarily in money market securities with high quality institutions. Accounts at each institution are insured by Federal Deposit Insurance Corporation. Cash balances at times may exceed federally-insured limits. We have not experienced any losses in such accounts and believe we are not exposed to any significant credit risk on cash. | |||||||||
Accounts Receivable | |||||||||
The majority of our accounts receivable are due from companies in the glass, oil and natural gas drilling, building products, filler and extenders, foundries and other major industries. Credit is extended based on evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are generally due within 30 days and are stated at amounts due from customers net of an allowance for doubtful accounts. Accounts outstanding longer than the payment terms are considered past due. We determine our allowance by considering a number of factors, including the length of time trade accounts receivable are past due, our previous loss history, the customer’s current ability to pay its obligation to us, and the condition of the general economy and the industry as a whole. Ongoing credit evaluations are performed. We write-off accounts receivable when they are deemed uncollectible, and payments subsequently received on such receivables are credited to the allowance for doubtful accounts. | |||||||||
Our ten largest customers accounted for approximately 57%, 52%, and 37% of sales in the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||
Inventories | |||||||||
Inventories include raw stockpiles and silica and other industrial sand available for shipment, as well as spare parts and supplies for routine facilities maintenance. We value inventory at the lower of cost or market. Cost is determined using the first-in, first-out and average cost methods. Costs of our raw stockpiles and silica and other industrial sand inventories include production costs and transportation and additional service costs as applicable. | |||||||||
Property, Plant and Mine Development | |||||||||
Property and equipment | |||||||||
Property and equipment is recorded at cost and depreciated over their estimated useful lives. Interest incurred during construction of facilities is capitalized and depreciated over the life of the asset. Depreciable properties, mining properties, and mineral deposits acquired in connection with business acquisitions are recorded at fair market value as of the date of acquisition. | |||||||||
Costs for normal repairs and maintenance that do not extend economic life or improve service potential are expensed as incurred. Costs of improvements that extend economic life or improve service potential are capitalized and depreciated over the estimated remaining useful life. | |||||||||
Depreciation is recorded using the straight-line method over the assets’ estimated useful life as follows: buildings (15 years); land improvements (10 years); machinery & equipment, including computer equipment and software (3-10 years); furniture & fixtures (8 years). Leasehold improvements are depreciated over the shorter of the asset life or lease term. Construction-in-progress is primarily comprised of machinery and equipment, which has not yet been placed in service. | |||||||||
Gains on the sale of assets are included in income when the assets are disposed of provided there is more than reasonable certainty of the collectability of the sales price and any future activities required to be performed by us relating to the disposal of the assets are complete or insignificant. Upon retirement or disposal of assets, all costs and related accumulated depreciation or amortization are written-off. | |||||||||
Depletion and amortization of mineral deposits are recorded as the minerals are extracted, based on units of production and engineering estimates of mineable reserves. The impact of revisions to reserve estimates is recognized on a prospective basis. | |||||||||
We periodically evaluate whether current events or circumstances indicate that the carrying value of our property, plant and equipment assets may not be recoverable. If circumstances indicate that the carrying value may not be recoverable, we estimate future undiscounted net cash flows using estimates of proven and probable sand reserves, estimated future sales prices (considering historical and current prices, price trends and related factors) and operating costs and anticipated capital expenditures. If the undiscounted cash flows are less than the carrying value of the assets, we recognize an impairment loss equal to the amount by which the carrying value exceeds the fair value of the assets. | |||||||||
Mine exploration and development | |||||||||
Mine exploration and development costs include engineering and mineral studies, drilling and other related costs to delineate an ore body, and the removal of overburden to initially expose an ore body for production. Costs incurred before mineralization are classified as proven and probable reserves are expensed and classified as exploration or advanced projects, research and development expense. Capitalization of mine development project costs, that meet the definition of an asset, begins once mineralization is classified as proven and probable reserves. | |||||||||
Drilling and related costs are capitalized for an ore body where proven and probable reserves exist and the activities are directed at obtaining additional information on the ore body or converting non-reserve mineralization to proven and probable reserves and the benefit is expected to be realized over a period beyond one year. All other drilling and related costs are expensed as incurred. Drilling costs incurred during the production phase for operational ore control are allocated to inventory costs and then included as a component of costs applicable to sales. | |||||||||
The cost of removing overburden and waste materials to access the ore body at an open pit mine prior to the production phase are referred to as “pre-stripping costs.” Pre-stripping costs are capitalized during the development of an open pit mine. Where multiple open pits exist at a mining complex utilizing common processing facilities, pre-stripping costs are capitalized at each pit. The removal, production, and sale of de minimis saleable materials may occur during development and are recorded as other income, net of incremental mining and processing costs. | |||||||||
The production phase of an open pit mine commences when saleable minerals, beyond a de minimis amount, are produced. Stripping costs incurred during the production phase of a mine are variable production costs that are included as a component of inventory to be recognized in costs applicable to sales in the same period as the revenue from the sale of inventory. | |||||||||
Mine development costs are amortized using the units-of-production method based on estimated recoverable tons in proven and probable reserves. To the extent that these costs benefit an entire ore body, they are amortized over the estimated life of the ore body. Costs incurred to access specific ore blocks or areas that only provide benefit over the life of that area are amortized over the estimated life of that specific ore block or area. | |||||||||
Mine reclamation costs and asset retirement obligations | |||||||||
We recognize the fair value of any liability for conditional asset retirement obligations, including environmental remediation liabilities when incurred, which is generally upon acquisition, construction or development and/or through the normal operation of the asset, if sufficient information exists to reasonably estimate the fair value of the liability. These obligations generally include the estimated net future costs of dismantling, restoring and reclaiming operating mines and related mine sites, in accordance with federal, state, local regulatory and land lease agreement requirements. The liability is accreted over time through periodic charges to earnings. In addition, the asset retirement cost is capitalized as part of the asset’s carrying value and amortized over the life of the related asset. Reclamation costs are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation and abandonment costs. The reclamation obligation is based on when spending for an existing environmental disturbance will occur. If the asset retirement obligation is settled for other than the carrying amount of the liability, a gain or loss is recognized on settlement. We review, on an annual basis, unless otherwise deemed necessary, the reclamation obligation at each mine site in accordance with ASC guidance for accounting reclamation obligations. | |||||||||
Future remediation costs for inactive mines are accrued based on management’s best estimate at the end of each period of the costs expected to be incurred at a site. Such cost estimates include, where applicable, ongoing care, maintenance and monitoring costs. Changes in estimates at inactive mines are reflected in earnings in the period an estimate is revised. | |||||||||
In connection with our annual review of our reclamation obligations, we have determined that some of our estimates required revision due primarily to the additions of new plant and transload facilities and other changes in cost estimates and settlement dates at numerous sites. These additions and changes in estimates resulted in an additional $2.0 million and $2.3 million of asset retirement obligations in 2014 and 2013, respectively. | |||||||||
Our asset retirement obligations are reported in other long-term obligations. The changes in these obligations during the year ending December 31, 2014 and 2013 are as follows: | |||||||||
2014 | 2013 | ||||||||
Beginning balance | $ | 9,378 | $ | 6,659 | |||||
Payments | (782 | ) | — | ||||||
Accretion | 676 | 456 | |||||||
Additions and revisions of prior estimates | 2,011 | 2,263 | |||||||
Ending balance | $ | 11,283 | $ | 9,378 | |||||
Goodwill and Other Intangible Assets and Related Impairment | |||||||||
Our intangible assets consist of goodwill, which is not being amortized; indefinite lived intangibles, which consist of certain trade names that are not subject to amortization; and customer relationships, which are being amortized on a straight-line basis over their useful life of 20 years. Goodwill represents the excess of purchase price over the fair value of net assets from business acquisitions including the Cadre acquisition in 2014. | |||||||||
Goodwill and other intangible assets with indefinite lives are reviewed for impairment annually as of October 31 or more frequently whenever events or circumstances change that would more likely than not reduce the fair value of those assets. Prior to conducting a formal impairment test, we assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that is more likely than not (more than 50%) that the fair value of a reporting unit is less than its carrying amount. Such qualitative factors may include the following: macroeconomic conditions; industry and market considerations; cost factors; overall financial performance; and other relevant entity-specific events. | |||||||||
If the qualitative assessment determines that an impairment is more likely than not, then the impairment test for goodwill, or other intangible assets with indefinite lives, requires a comparison of the fair value with the carrying amount, including goodwill. If this comparison reflects impairment, then the loss would be measured as the excess of recorded goodwill, or other intangible assets with indefinite lives, over its implied fair value. Implied fair value is the excess of our fair value over the fair value of all recognized and unrecognized assets and liabilities. | |||||||||
The evaluation of goodwill, or other intangible assets with indefinite lives, for possible impairment includes estimating our fair value using discounted cash flows and multiples of cash earnings valuation techniques, plus valuation comparisons to similar businesses. These valuations require us to make estimates and assumptions regarding future operating results, cash flows, changes in working capital and capital expenditures, selling prices, profitability, and the cost of capital. Although we believe that the estimates and assumptions used were reasonable, actual results could differ from those estimates and assumptions. As of December 31, 2014 our qualitative assessment did not indicate that it was more likely than not that an impairment had occurred. | |||||||||
As of December 31, 2014, the gross carrying amount of the customer relationships intangible asset was $9.5 million with accumulated amortization of $2.5 million. We review all finite-lived intangible assets for impairment when circumstances indicate that their carrying amounts may not be recoverable. We evaluate the carrying value of all finite-lived intangible assets for impairment by comparing the expected undiscounted future cash flows of the asset to the net book value of the asset. If the expected undiscounted future cash flows are less than the net book value of the assets, the excess of the net book value over the estimated fair value is recorded in our consolidated statements of operations as impairment loss. Fair value is generally estimated using valuation techniques that consider the discounted cash flows of the asset at rates deemed reasonable for the type of asset and prevailing market conditions, replacement cost, appraisals, including recent similar transactions in the market and if appropriate, current estimated net sales proceeds from pending offers. As of December 31, 2014, the weighted average remaining useful life of our customer relationships was 13.9 years. The estimated annual amortization in each of the next five years is $496. | |||||||||
Debt Issuance Costs | |||||||||
Debt issuance costs consist of loan origination costs, which are being amortized using the effective interest method over the term of the related debt principal. Amortization included in interest expense was $912, $680 and $515 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||
Environmental Costs | |||||||||
Environmental costs, other than qualifying capital expenditures, are accrued at the time the exposure becomes known and costs can be reasonably estimated. Costs are accrued based upon management’s estimates of all direct costs, after taking into account expected reimbursement by third parties (primarily the sellers of acquired businesses), and are reviewed by outside consultants. Environmental costs are charged to expense unless a settlement with an indemnifying party has been reached. | |||||||||
Self-Insurance | |||||||||
We are self-insured for various levels of employee health insurance coverage, workers’ compensation and third party product liability claims alleging occupational disease. We purchase insurance coverage for claim amounts which exceed our self-insured retentions. Depending on the type of insurance, these self-insured retentions range from $100,000 to $500,000 per occurrence. | |||||||||
Our insurance reserves are accrued based on estimates of the ultimate cost of claims expected to occur during the covered period. These estimates are prepared with the assistance of outside actuaries and consultants. Our actuaries periodically review the volume and amount of claims activity, and based upon their findings, we adjust our insurance reserves accordingly. The ultimate cost of claims for a covered period may differ from our original estimates. | |||||||||
The current portion of our self-insurance reserves is included in accrued liabilities and the non-current portion is included in other long-term obligations in our consolidated balance sheets. Our self-insurance reserves totaled $5.7 million and $5.4 million at December 31, 2014 and 2013, respectively. Of these amounts, $1.8 million and $1.7 million, respectively, were classified as current. | |||||||||
Equity-based Compensation | |||||||||
We recognize the cost of employee services rendered in exchange for awards of equity instruments, such as stock options and restricted stock, based on the fair value of those awards at the date of the grant. | |||||||||
Vesting of restricted stock and restricted stock units is based on the individual continuing to render service over a three year vesting schedule. Additionally, we grant performance share units to certain employees in which the number of shares of common stock ultimately received is determined based on achievement of certain performance thresholds or a specified performance period in accordance with the stock award agreement. Cash dividend equivalents are accrued and paid to the holders of time based restricted stock units and restricted stock only after the performance period has lapsed. Cash dividend equivalents are not accrued or paid on performance share units. | |||||||||
The restricted award related compensation expense is recognized, on a straight-line basis, over the vesting period of each separately vesting portion. The fair value of the restricted stock awards is equal to the market price of our stock at date of grant. | |||||||||
The options vest on a vesting schedule and the related compensation expense is recognized over the vesting period of each separately vesting portion, usually over four years. In calculating the compensation expense for options granted, we estimate the fair value of each grant using the Black-Scholes option-pricing model. The weighted-average fair value per share of options granted during the years ended December 31, 2014, 2013 and 2012 was $19.37, $10.03 and $5.68 respectively. The fair value of stock options granted have been calculated based on the exercise price of the option and the following assumptions, which are evaluated and revised, as necessary, to reflect market conditions and experience. | |||||||||
Weighted-average | |||||||||
Year ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Risk-free interest rate | 1.81% | 1.03 – 1.31% | 0.83 - 1.05% | ||||||
Expected volatility | 45 | % | 45 | % | 45 | % | |||
Expected term | 6.25 years | 6.25 years | 6.25 years | ||||||
Expected dividend yield | 1 | % | 0 | % | 0 | % | |||
Expected forfeiture yield | 0 | % | 0 | % | 0 | % | |||
Since January 31, 2012, the date of our initial public offering, we declared a special dividend of $0.50 per share on December 10, 2012, three quarterly dividends of $0.125 per share during 2013, and four quarterly dividends of $0.125 during 2014. Options issued in 2013 all occurred early in the year before dividends were consistently declared. As a result, the dividend yield assumptions for those and all prior options issued was 0%. For grants during 2014, we believe a dividend yield of 1% is appropriate. | |||||||||
Our expected forfeiture rate is the estimated percentage of options granted that are expected to be forfeited or canceled on an annual basis before becoming fully vested. We have assumed that there will be no forfeitures due to the fact that we do not have adequate historical forfeiture data on which to base the assumption. | |||||||||
Our expected term is the period of time over which the options are expected to remain outstanding. An increase in the expected term will increase compensation expense. The computation of the expected term is based on the simplified method as our stock options are standard options and we have little recent history of exercise data. Under the simplified method, the expected term is presumed to be the mid-point between the average vesting date and the end of the contractual term. | |||||||||
The assumptions for expected volatility are based on historical experience for the same periods as our expected lives. Risk-free interest rates are set using grant-date U.S. Treasury yield curves for the same periods as our expected lives. | |||||||||
Income Taxes | |||||||||
Deferred taxes are provided on the liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards and deferred tax liabilities are recognized for taxable temporary differences. This approach requires recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based upon the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the expenses are expected to reverse. Valuation allowances are provided if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. | |||||||||
We recognize a tax benefit associated with an uncertain tax position when, in management’s judgment, it is more likely than not that the position will be sustained upon examination by a taxing authority. For a tax position that meets the more-likely-than-not recognition threshold, we initially and subsequently measure the tax benefit as the largest amount that it judges to have a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority. The liability associated with unrecognized tax benefits is adjusted periodically due to changing circumstances, such as the progress of tax audits, case law developments and new or emerging legislation. Such adjustments are recognized entirely in the period in which they are identified. The effective tax rate includes the net impact of changes in the liability for unrecognized tax benefits and subsequent adjustments as considered appropriate by management. | |||||||||
The largest permanent item in computing both our effective tax rate and taxable income is the deduction allowed for statutory depletion. The impact of statutory depletion on the effective tax rate is presented in Note Q - Income Taxes. The deduction for statutory depletion does not necessarily change proportionately to changes in income before income taxes. | |||||||||
Earnings per Share | |||||||||
Basic and diluted earnings per share is presented for net income. Basic earnings per share is computed by dividing income available to common stockholders by the weighted-average number of outstanding common shares for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts that may require the issuance of common shares in the future were converted. Diluted earnings per share is computed by increasing the weighted-average number of outstanding common shares to include the additional common shares that would be outstanding after conversion and adjusting net income for changes that would result from the conversion. Only those securities or other contracts that result in a reduction in earnings per share are included in the calculation. | |||||||||
Comprehensive Income | |||||||||
In addition to net income, comprehensive income (loss) includes all changes in equity during a period, such as adjustments to minimum pension liabilities, unrealized gain or loss on our short term investments and the effective portion of changes in fair value of derivative instruments that qualify as cash flow hedges. | |||||||||
Short-Term Investments | |||||||||
Our short-term investments consist of fixed income securities that have been classified and accounted for as available-for-sale. We determine the appropriate classification of our investments at the time of purchase and reevaluate the designations at each balance sheet date. We classify these securities as either short-term or long-term based on each instrument’s underlying contractual maturity date. Fixed income securities with maturities of 12 months or less are classified as short-term and fixed income securities with maturities greater than 12 months are classified as long-term. These investments are carried at fair value, with the unrealized gains and losses, net of taxes, reported as a separate component of accumulated other comprehensive income. The cost of securities sold is based upon the specific identification method. | |||||||||
We typically invest in highly-rated securities, and our investment policy generally limits the amount of credit exposure to any one issuer. The policy requires investments generally to be investment grade, with the primary objective of minimizing the potential risk of principal loss. Fair values were determined for each individual security in the investment portfolio. When evaluating an investment for other-than-temporary impairment, we review factors such as the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer and any changes thereto, changes in market interest rates, and our intent to sell, or whether it is more likely than not we will be required to sell, the investment before recovery of the investment’s cost basis. As of December 31, 2014, and 2013, we considered any losses in our short-term investment portfolio to be temporary in nature and did not consider any of our investments other-than-temporarily impaired. | |||||||||
Financial Instruments | |||||||||
We currently use interest rate hedge agreements and have historically utilized natural gas hedge agreements to manage interest and energy costs and the risk associated with changing interest rates and natural gas prices. Amounts to be paid or received under these hedge agreements are accrued as interest rates or natural gas prices change and are recognized over the life of the hedge agreements as an adjustment to interest expense or, in the case of natural gas, cost of goods sold. Our policy is to not hold or issue derivative financial instruments for trading or speculative purposes. When entered into, these financial instruments are designated as hedges of underlying exposures, associated with our long-term debt and energy costs, and are monitored to determine if they remain effective hedges. Gains and losses on derivatives designated as cash flow hedges are recorded in other comprehensive income net of tax and reclassified to earnings in a manner that matches the timing of the earnings impact of the hedged transactions. The ineffective portion of all hedges, if any, is recognized currently in income. Additional disclosures for derivative instruments are presented in Note N to these financial statements. | |||||||||
Recently Adopted Accounting Pronouncements | |||||||||
In May 2014, the Financial Accounting Standards Board ("FASB") issued an ASU 2014-08, Revenue from Contracts with Customers, which supersedes previous revenue recognition guidance. The new standard requires that a company recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration the company expects to receive in exchange for those goods or services. Companies will need to use more judgment and estimates than under the guidance currently in effect, including estimating the amount of variable revenue to recognize over each identified performance obligation. Additional disclosures will be required to help users of financial statements understand the nature, amount and timing of revenue and cash flows arising from contracts. The new standard will become effective beginning with the first quarter 2017 and can be adopted either retrospectively to each prior reporting period presented or as a cumulative effect adjustment as of the date of adoption. We are currently evaluating the impact of adopting this new guidance on the consolidated financial statements. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Earnings Per Share | EARNINGS PER SHARE | |||||||||||
Basic earnings per common share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per common share is computed similarly to basic earnings per common share except that the weighted average number of common shares outstanding is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued. In accordance with the applicable accounting guidance for calculating earnings per share, we did not include in our calculation of diluted earnings per share for the applicable periods stock options where the exercise prices were greater than the average market prices. | ||||||||||||
For the Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net income | $ | 121,540 | $ | 75,256 | $ | 79,154 | ||||||
Less: net income allocated to outstanding restricted stockholders | (230 | ) | (175 | ) | (105 | ) | ||||||
Net income allocated to common stockholders | $ | 121,310 | $ | 75,081 | $ | 79,049 | ||||||
Weighted-average common stock | ||||||||||||
Outstanding | 53,719 | 53,035 | 52,592 | |||||||||
Outstanding assuming dilution | 54,296 | 53,409 | 52,641 | |||||||||
The weighted-average stock options (in thousands) that are antidilutive and are therefore excluded from the calculation of diluted earnings per common share are: | ||||||||||||
For the Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Weighted-average outstanding stock options excluded | 33 | 175 | 1,070 | |||||||||
Capital_Structure_and_Accumula
Capital Structure and Accumulated Comprehensive Income | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Equity [Abstract] | ||||||||||||||||
Capital Structure and Accumulated Comprehensive Income | CAPITAL STRUCTURE AND ACCUMULATED COMPREHENSIVE INCOME | |||||||||||||||
Common Stock | ||||||||||||||||
Our Amended and Restated Certificate of Incorporation, authorizes up to 500,000,000 shares of common stock, par value of $0.01. Subject to the rights of holders of any series of preferred stock, all of the voting power of the stockholders of Holdings shall be vested in the holders of the common stock. There were 53,902,475 shares of common stock issued and outstanding at December 31, 2014. As of December 31, 2013, there were 53,492,278 shares issued and outstanding. | ||||||||||||||||
In 2014, our Board of Directors declared quarterly cash dividends as follows: | ||||||||||||||||
Dividends per Common Share | Declaration Date | Record Date | Payable Date | |||||||||||||
$ | 0.125 | February 6, 2014 | March 14, 2014 | April 1, 2014 | ||||||||||||
$ | 0.125 | April 25, 2014 | June 13, 2014 | July 3, 2014 | ||||||||||||
$ | 0.125 | July 25, 2014 | September 15, 2014 | October 3, 2014 | ||||||||||||
$ | 0.125 | October 24, 2014 | December 15, 2014 | January 5, 2015 | ||||||||||||
All dividends were paid as scheduled. | ||||||||||||||||
Any determination to pay dividends and other distributions in cash, stock, or property by Holdings in the future will be at the discretion of our Board of Directors and will be dependent on then-existing conditions, including our business conditions, our financial condition, results of operations, liquidity, capital requirements, contractual restrictions including restrictive covenants contained in our debt agreements, and other factors. Additionally, because we are a holding company, our ability to pay dividends on our common stock may be limited by restrictions on the ability of our subsidiaries to pay dividends or make distributions to us, including restrictions under the terms of the agreements governing our indebtedness. | ||||||||||||||||
Preferred Stock | ||||||||||||||||
Our Amended and Restated Certificate of Incorporation authorizes our Board of Directors to issue up to 10,000,000 shares, in the aggregate, of preferred stock, par value of $0.01 in one or more series and to fix the preferences, powers and relative, participating, optional or other special rights and qualifications, limitations or restrictions thereof, including the dividend rate, conversion rights, voting rights, redemption rights and liquidation preference and to fix the number of shares to be included in any such series without any further vote or action by our stockholders. | ||||||||||||||||
There are no shares of preferred stock issued or outstanding at December 31, 2014 and 2013. At present, we have no plans to issue any preferred stock. | ||||||||||||||||
Share Repurchase Program | ||||||||||||||||
We are authorized by our Board of Directors to repurchase shares of our outstanding common stock on the open market or in privately negotiated transactions. As of December 31, 2014, we are authorized to repurchase up to $50 million of our common stock through December 11, 2015. Stock repurchases will be funded using our available liquidity. The timing and amount of stock repurchases will depend on a variety of factors, including the market conditions as well as corporate and regulatory considerations. Under our share repurchase program, as of December 31, 2014, we have repurchased 118,961 shares of our common stock at an average price of $13.21 and are authorized to repurchase up to an additional $48.4 million of our common stock. | ||||||||||||||||
Accumulated Other Comprehensive Income | ||||||||||||||||
Accumulated other comprehensive income (loss) consists of fair value adjustments associated with cash flow hedges and accumulated adjustments for net experience losses and prior service cost related to employee benefit plans. The following table presents the changes in accumulated other comprehensive income by component during the year ended December 31, 2014: | ||||||||||||||||
For the Year Ended December 31, 2014 | ||||||||||||||||
Unrealized | Unrealized | Pension and | Total | |||||||||||||
gain/(loss) on | gain/(loss) on | other post- | ||||||||||||||
cash flow | short-term | retirement | ||||||||||||||
hedges | investments | benefits liability | ||||||||||||||
Beginning Balance | $ | (79 | ) | $ | (27 | ) | $ | (3,911 | ) | $ | (4,017 | ) | ||||
Other comprehensive income (loss) before reclassifications | (65 | ) | (14 | ) | (16,388 | ) | (16,467 | ) | ||||||||
Amounts reclassed from accumulated other comprehensive income | 10 | — | 656 | 666 | ||||||||||||
Ending Balance | $ | (134 | ) | $ | (41 | ) | $ | (19,643 | ) | $ | (19,818 | ) | ||||
Amounts reclassed from accumulated other comprehensive income (loss) related to cash flow hedges are included in interest expense in our Income Statements and amounts reclassed related to the pension and other post-retirement benefits liability are included in the computation of net periodic pension costs, at their before tax amounts. |
Business_Combinations
Business Combinations | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Business Combinations [Abstract] | ||||||||||||
Business Combinations | BUSINESS COMBINATIONS | |||||||||||
On July 31, 2014, we completed our acquisition of Cadre, a regional sand mining company based in Voca, Texas, for approximately $98.3 million in cash. | ||||||||||||
The acquisition of Cadre resulted in goodwill of approximately $0.2 million, none of which is deductible for tax purposes. This amount represents the residual amount of the total purchase price after allocation to the assets acquired and liabilities assumed. | ||||||||||||
The table below represents the tangible and identifiable intangible assets and liabilities based on management’s assessment of the acquisition date fair value of the assets acquired and liabilities assumed: | ||||||||||||
Accounts receivable | $ | 6,898 | ||||||||||
Inventory | 2,534 | |||||||||||
Other current assets | 174 | |||||||||||
Fixed assets (net) | 73,138 | |||||||||||
Deferred tax assets (net) | 13,966 | |||||||||||
Accounts payable, accrued expenses and other liabilities | (4,389 | ) | ||||||||||
Net tangible assets acquired | 92,321 | |||||||||||
Customer relationships | 1,274 | |||||||||||
Trade name | 4,478 | |||||||||||
Goodwill | 244 | |||||||||||
Preliminary purchase price, net of cash acquired | $ | 98,317 | ||||||||||
The following table summarizes the allocation of identifiable intangible assets resulting from the acquisition: | ||||||||||||
Useful Lives | Value | |||||||||||
Customer relationships | 15 years | $ | 1,274 | |||||||||
Trade name | Indefinite | 4,478 | ||||||||||
Total intangible assets | $ | 5,752 | ||||||||||
Pro Forma Adjusted Summary | ||||||||||||
The results of Cadre’s operations have been included in the consolidated financial statements subsequent to the acquisition date. | ||||||||||||
The following unaudited pro forma consolidated financial information reflects the combined results of operations as if the Cadre acquisition had occurred on January 1, 2012, after giving effect to certain purchase accounting adjustments. This information does not purport to be indicative of the actual results that would have occurred if the acquisition had actually been completed on the date indicated, nor is it necessarily indicative of the future operating results or the financial position of the combined company (in thousands, except per share amounts): | ||||||||||||
For the Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Sales | $ | 901,916 | $ | 578,453 | $ | 481,100 | ||||||
Net income | $ | 126,960 | $ | 76,942 | $ | 82,782 | ||||||
Basic earnings per share | $ | 2.36 | $ | 1.45 | $ | 1.57 | ||||||
Diluted earnings per share | $ | 2.33 | $ | 1.44 | $ | 1.57 | ||||||
Accounts_Receivable
Accounts Receivable | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Receivables [Abstract] | ||||||||
Accounts Receivable | ACCOUNTS RECEIVABLE | |||||||
At December 31, 2014 and 2013, accounts receivable consisted of the following: | ||||||||
At December 31, | ||||||||
2014 | 2013 | |||||||
Trade receivables | $ | 128,498 | $ | 76,223 | ||||
Less: Allowance for doubtful accounts | (10,429 | ) | (2,376 | ) | ||||
Net trade receivables | 118,069 | 73,847 | ||||||
Other receivables | 2,812 | 1,360 | ||||||
Total accounts receivable | $ | 120,881 | $ | 75,207 | ||||
The increase of $44.2 million in trade receivables is mainly driven by the sales increase for the year ended December 31, 2014. | ||||||||
Changes in our allowance for doubtful accounts during the years ended December 31, 2014 and 2013 are as follows: | ||||||||
Allowance for Doubtful Accounts | ||||||||
2014 | 2013 | |||||||
Balance at January 1, | $ | 2,376 | $ | 1,053 | ||||
Bad debt provision | 10,200 | 1,330 | ||||||
Write-offs | (2,147 | ) | (7 | ) | ||||
Balance at December 31, | $ | 10,429 | $ | 2,376 | ||||
Inventories
Inventories | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | INVENTORIES | |||||||
At December 31, 2014 and 2013, inventories consisted of the following: | ||||||||
At December 31, | ||||||||
2014 | 2013 | |||||||
Supplies | $ | 17,528 | $ | 15,576 | ||||
Raw materials and work in process | 12,562 | 11,728 | ||||||
Finished goods | 36,622 | 36,908 | ||||||
Total inventories | $ | 66,712 | $ | 64,212 | ||||
Property_Plant_and_Mine_Develo
Property, Plant and Mine Development | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Mine Development | PROPERTY, PLANT AND MINE DEVELOPMENT | |||||||
At December 31, 2014 and 2013, property, plant and mine development consisted of the following: | ||||||||
At December 31, | ||||||||
2014 | 2013 | |||||||
Mining property and mine development | $ | 197,824 | $ | 164,609 | ||||
Asset retirement cost | 9,559 | 7,275 | ||||||
Land | 28,443 | 25,738 | ||||||
Land improvements | 35,322 | 31,093 | ||||||
Buildings | 47,149 | 36,311 | ||||||
Machinery and equipment | 323,618 | 263,304 | ||||||
Furniture and fixtures | 1,599 | 1,131 | ||||||
Construction-in-progress | 78,997 | 25,974 | ||||||
722,511 | 555,435 | |||||||
Accumulated depletion, depreciation and amortization | (156,756 | ) | (113,319 | ) | ||||
Total property, plant and mine development, net | $ | 565,755 | $ | 442,116 | ||||
The property, plant and mine development balances for December 31, 2014 include additions from the Cadre acquisition described in Note E - Business Combinations. | ||||||||
The amount of interest costs capitalized in property, plant and equipment was $1,376, $533 and $934 for the year ended December 31, 2014, 2013 and 2012, respectively. As of December 31, 2014, we hold no assets under a capital lease obligation. |
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Accrued Liabilities | ACCRUED LIABILITIES | |||||||
At December 31, 2014 and 2013, accrued liabilities consisted of the following: | ||||||||
At December 31, | ||||||||
2014 | 2013 | |||||||
Accrued salaries and wages | $ | 3,144 | $ | 2,411 | ||||
Accrued vacation liability | 2,616 | 2,396 | ||||||
Current portion of liability for pension and post-retirement benefits | 1,530 | 1,428 | ||||||
Accrued healthcare liability | 1,745 | 1,662 | ||||||
Accrued property taxes and sales taxes | 2,737 | 1,421 | ||||||
Other accrued liabilities | 6,139 | 1,505 | ||||||
Total accrued liabilities | $ | 17,911 | $ | 10,823 | ||||
Other accrued liabilities consist of accrued transportation and related costs, customer rebates, royalties payable, and other items. |
Debt
Debt | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt | DEBT | |||||||
At December 31, 2014 and 2013, debt consisted of the following: | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Senior secured credit facility: | ||||||||
Revolver expiring July 23, 2018 (4.75% at December 31, 2014 and December 31, 2013) | $ | — | $ | — | ||||
Term loan facility—final maturity July 23, 2020 (4% - 5.25% at December 31, 2014 and 4% at December 31, 2013), net of unamortized original issue discount of $2,078 and $1,674, respectively | 502,297 | 371,451 | ||||||
Total debt | 502,297 | 371,451 | ||||||
Less: current portion | (4,718 | ) | (3,488 | ) | ||||
Total long-term portion of debt | $ | 497,579 | $ | 367,963 | ||||
Revolving Line-of-Credit | ||||||||
We have a $50 million revolving line-of-credit (the "Revolver"), with zero drawn and $3.2 million allocated for letters of credit as of December 31, 2014, leaving $46.8 million available for general corporate use under the Revolver. | ||||||||
Debt Maturities | ||||||||
At December 31, 2014, contractual maturities of long-term debt are as follows: | ||||||||
2015 | $ | 4,718 | ||||||
2016 | 4,722 | |||||||
2017 | 4,725 | |||||||
2018 | 4,729 | |||||||
2019 | 4,733 | |||||||
Thereafter | 478,670 | |||||||
$ | 502,297 | |||||||
On January 31, 2012, we amended our senior secured term loan facility (the “Term Loan”). The primary revisions to the Term Loan were to eliminate a requirement to provide monthly financial reports, to remove financial covenant restrictions related to capital expenditures, to provide flexibility to make investments and acquisitions and to incur indebtedness, and to provide a new subsidiary guarantee from Coated Sand Solutions, LLC. | ||||||||
On December 31, 2012, we amended our then existing revolving line-of-credit. The primary revisions were to include an increase of the commitment under the revolving line-of-credit from $35 million to $50 million, and the letter of credit sublimit from $15 million to $20 million; provided, however, that the aggregate principal amount of the loans and letters of credit obligations outstanding at any one time shall not exceed the borrowing base as calculated pursuant to the agreement. The amendment also extended the termination date of the revolving line-of-credit from October 31, 2015 to October 31, 2016, reduced prices and fees on borrowings, letters of credit and unused commitments and added an additional subsidiary, Coated Sand Solutions, LLC, as a co-borrower. | ||||||||
On July 23, 2013, we refinanced our existing senior secured debt by amending our Term Loan and replacing our existing revolving line-of-credit. The Term Loan amendment refinanced our existing senior debt by entering into a new $425 million senior secured credit facility, consisting of a $375 million Term Loan and the $50 million Revolver that may also be used for swingline loans (up to $5 million) or letters of credit (up to $20 million). The Term Loan amendment also, among other things, removed and amended certain financial and other covenants to provide additional operating flexibility, and lowered interest rates on borrowed amounts. The existing revolving line-of-credit was terminated. The Term Loan will expire on July 23, 2020 and the Revolver will expire on July 23, 2018. As a result of refinancing our Term Loan and replacing our revolving line-of-credit, we expensed $1.8 million of costs, consisting of $1.3 million related to third party fees in selling, general, and administrative expenses and $0.5 million related to early extinguishment of debt. | ||||||||
On December 5, 2014, we further increased our Term Loan by an additional $135 million to a total of approximately $502 million in accordance with the incremental borrowing feature in our senior secured credit facility. | ||||||||
Our senior secured credit facility is secured by substantially all of our assets and a pledge of the equity interests in certain of our subsidiaries. The facility contains covenants that, among other things, govern our ability to create, incur or assume indebtedness and liens, to make acquisitions or investments, to pay dividends and to sell assets. The facility also requires us to maintain a consolidated total net leverage ratio of no more than 3.75:1.00 as of the last day of any fiscal quarter whenever usage of the Revolver (other than certain undrawn letters of credit) exceeds 25% of the Revolver commitment. As of December 31, 2014 and December 31, 2013, we are in compliance with all covenants in accordance with our senior secured credit facility. |
Deferred_Revenue
Deferred Revenue | 12 Months Ended |
Dec. 31, 2014 | |
Deferred Revenue Disclosure [Abstract] | |
Deferred Revenue | DEFERRED REVENUE |
On July 3, 2014, we received an advance of $100 million from a customer under a supply agreement which gives the customer the right to purchase certain products for a fixed price at certain volumes. The customer has an unsecured promissory note related to this deposit, which has been recorded as deferred revenue in the Balance Sheets. The unused portion of the deposit has a stated interest rate of 4.9% compounded quarterly. The deposit obligation and related interest are reduced as shipments occur with a portion of the sales price being received in cash and a smaller noncash portion reducing first any accrued interest and then, to the extent available, any outstanding deposit. We can, through December 31, 2019, repay the unused deposit obligation at any time without penalty. |
Fair_Value_Accounting
Fair Value Accounting | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||
Fair Value Accounting | FAIR VALUE ACCOUNTING | |||||||||||||||||||||||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: | ||||||||||||||||||||||||
Level 1—Quoted prices in active markets for identical assets or liabilities | ||||||||||||||||||||||||
Level 2—Observable inputs other than quoted prices in active markets for identical assets and liabilities, quote prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||||||||||||||
Level 3—Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. | ||||||||||||||||||||||||
Cash equivalents | ||||||||||||||||||||||||
Due to the short-term maturity, we believe our cash equivalent instruments at December 31, 2014 and 2013 approximate their reported carrying values. | ||||||||||||||||||||||||
Short-Term Investments | ||||||||||||||||||||||||
In general, the fair value of our short-term investments is based on quoted prices for similar assets in active markets, or for identical assets or similar assets in markets in which there were fewer transactions (Level 2). Money market mutual funds are based on calculated net asset value and are reported in Level 1. Variable rate demand obligations underwritten and remarketed by a financial institution are priced at par value. | ||||||||||||||||||||||||
Long-Term Debt, including current maturities | ||||||||||||||||||||||||
We believe that the fair values of our long-term debt, including current maturities, approximates their carrying values and based on their effective interest rates compared to current market rates. | ||||||||||||||||||||||||
Derivative Instruments | ||||||||||||||||||||||||
The estimated fair value of our derivative assets (interest rate caps) are recorded at each reporting period and are based upon widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative contract. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. We also incorporate credit valuation adjustments to appropriately reflect both our nonperformance risk as well as that of the respective counterparty in the fair value measurements. | ||||||||||||||||||||||||
Although we have determined that the majority of the inputs used to value our derivatives fall with Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default of ourselves and our counterparties. However, as of December 31, 2014, we have assessed that the impact of the credit valuation adjustments on the overall valuation of our derivative positions is not significant. As a result, we have determined that our derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. | ||||||||||||||||||||||||
In accordance with the fair value hierarchy, the following table presents the fair value as of December 31, 2014 and 2013, respectively, of those assets that we measure at fair value on a recurring basis: | ||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||
Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | |||||||||||||||||||
Short-term investments | $ | 666 | $ | 74,477 | $ | 75,143 | $ | 622 | $ | 74,358 | $ | 74,980 | ||||||||||||
Interest rate derivatives | — | 5 | 5 | — | 109 | 109 | ||||||||||||||||||
Net asset | $ | 666 | $ | 74,482 | $ | 75,148 | $ | 622 | $ | 74,467 | $ | 75,089 | ||||||||||||
ShortTerm_Investments
Short-Term Investments | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||
Short-Term Investments | SHORT-TERM INVESTMENTS | |||||||||||||||
We have segregated funds into designated accounts with investment brokers who manage our short-term investment portfolio. Those funds are held on an available-for-sale basis and are therefore reported at fair value on the balance sheet. | ||||||||||||||||
The following table summarizes our available-for-sale short-term investments: | ||||||||||||||||
Aggregate | Gross | Gross | Fair | |||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||
Gains | Losses | |||||||||||||||
31-Dec-13 | ||||||||||||||||
Money market mutual funds | $ | 622 | $ | — | $ | — | $ | 622 | ||||||||
Fixed income securities: | ||||||||||||||||
Certificates of deposit | 25,218 | — | (34 | ) | 25,184 | |||||||||||
Commercial paper | 15,168 | 4 | (1 | ) | 15,171 | |||||||||||
Corporate notes and bonds | 9,495 | — | (9 | ) | 9,486 | |||||||||||
Government agencies | 13,979 | 6 | — | 13,985 | ||||||||||||
U.S. Treasuries | 4,828 | — | (10 | ) | 4,818 | |||||||||||
Variable Rate Demand Obligations | 5,714 | — | — | 5,714 | ||||||||||||
Total available-for-sale investments | $ | 75,024 | $ | 10 | $ | (54 | ) | $ | 74,980 | |||||||
31-Dec-14 | ||||||||||||||||
Money market mutual funds | $ | 666 | $ | — | $ | — | $ | 666 | ||||||||
Fixed income securities: | ||||||||||||||||
Certificates of deposit | 29,233 | — | (23 | ) | 29,210 | |||||||||||
Commercial paper | 10,187 | 7 | (2 | ) | 10,192 | |||||||||||
Corporate notes and bonds | 12,076 | — | (29 | ) | 12,047 | |||||||||||
Government agencies | 16,681 | 4 | (17 | ) | 16,668 | |||||||||||
U.S. Treasuries | 2,151 | — | (4 | ) | 2,147 | |||||||||||
Variable Rate Demand Obligations | 4,213 | — | — | 4,213 | ||||||||||||
Total available-for-sale investments | $ | 75,207 | $ | 11 | $ | (75 | ) | $ | 75,143 | |||||||
Derivative_Instruments
Derivative Instruments | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||
Derivative Instruments | DERIVATIVE INSTRUMENTS | |||||||||||||||||||||||||
Cash Flow Hedges of Interest Rate Risk | ||||||||||||||||||||||||||
We enter into interest rate cap agreements in connection with the Term Loan to add stability to interest expense and to manage our exposure to interest rate movements. Interest rate caps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an upfront premium. | ||||||||||||||||||||||||||
The following table summarizes the fair value of our derivative instruments. See Note L - Fair Value Accounting for additional disclosures regarding the estimated fair values of our derivative instruments at December 31, 2014, and 2013. | ||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||
Maturity | Contract/Notional | Carrying | Fair | Contract/Notional | Carrying | Fair | ||||||||||||||||||||
Date | Amount | Amount | Value | Amount | Amount | Value | ||||||||||||||||||||
Interest rate cap agreement(1) | 2016 | $ | 188 | million | $ | 5 | $ | 5 | $ | 188 | million | $ | 109 | $ | 109 | |||||||||||
-1 | Agreements limit the LIBOR floating interest rate base to 4%. | |||||||||||||||||||||||||
We have designated these contracts as qualified cash flow hedges. Accordingly, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and recognized in earnings in the same period or periods during which the hedged transaction affects earnings. During the year ended December 31, 2014 and 2013, we had no ineffectiveness for such contracts. | ||||||||||||||||||||||||||
The following table summarizes the effect of derivatives instruments on our income statements and our consolidated statements of comprehensive income for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
Deferred losses from derivatives in OCI, beginning of period | $ | (79 | ) | $ | (182 | ) | $ | (409 | ) | |||||||||||||||||
Loss recognized in OCI from derivative instruments | (65 | ) | (82 | ) | — | |||||||||||||||||||||
Loss reclassified from Accumulated OCI | 10 | 185 | 227 | |||||||||||||||||||||||
Deferred losses from derivatives in OCI, end of period | $ | (134 | ) | $ | (79 | ) | $ | (182 | ) |
EquityBased_Compensation
Equity-Based Compensation | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Equity-Based Compensation | EQUITY-BASED COMPENSATION | ||||||||
During 2009, the board of directors of our then parent company, GGC USS Holdings, LLC, approved, and the parent company implemented, a management equity program (the “Equity Program”). The Equity Program granted Class C and Class D member units in the then parent company, GGC USS Holdings, LLC, to three members of executive management. As of December 31, 2014, all Class C and Class D equity units were fully vested. | |||||||||
The Class C units vested ratably over five years. These units have no exercise price and as such the fair value of the incentive units is equal to the fair value of the underlying equity units. The Class D units were fully vested upon grant in 2009. During 2013, the vesting of 210,333 Class C equity units was accelerated, resulting in a total vesting for the year of 420,667. Even though the equity was granted at the former parent company level, we recognized compensation expense related to Class C equity incentive units of $91 and $109 in the years ended December 31, 2014 and 2013 respectively. All Class C units were vested by December 31, 2013. There was no activity related to the Class C units and no expenses incurred during the year ended December 31, 2014. | |||||||||
In July 2011, we adopted the U.S. Silica Holdings, Inc. 2011 Incentive Compensation Plan (the “2011 Plan”), which provides for grants of stock options, stock appreciation rights, restricted stock and other incentive-based awards. We believe our 2011 Plan aligns the interests of our employees and directors with those of our common stockholders. At December 31, 2014, we have 5,740,961 shares of common stock which may be issued under the 2011 Plan. | |||||||||
Stock Options | |||||||||
The following table summarizes the status of and changes in our stock option grants during the year ended December 31, 2014: | |||||||||
Number of | Weighted | Weighted | |||||||
Shares | Average | Average | |||||||
Exercise Price | Remaining Contractual Term in Years | ||||||||
Outstanding at December 31, 2013 | 1,231,540 | $ | 15.01 | ||||||
Granted | 206,400 | 49.39 | |||||||
Exercised | (389,264 | ) | 14.29 | ||||||
Forfeited | (65,622 | ) | 16.46 | ||||||
Outstanding at December 31, 2014 | 983,054 | 22.42 | 7.78 | ||||||
Exercisable at December 31, 2014 | 273,752 | $ | 15.25 | 7.09 | |||||
The total intrinsic value of stock options exercised was $10.9 million, $5.9 million and $0.1 million for the years ended December 31, 2014, 2013 and 2012 respectively. Cash received from options exercised in 2014 was $5.6 million. The actual tax benefit realized for the tax deductions from option exercises totaled $4.2 million, $2.3 million, and $0.02 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||
We recognized $1.9 million, $2.0 million , and $2.2 million of equity-based compensation expense related to these options during the years ended December 31, 2014, 2013 and 2012, respectively. As of December 31, 2014, there was $5.9 million of total unrecognized compensation expense related to these options, which is expected to be recognized over a weighted-average period of approximately 3.1 years. | |||||||||
Restricted Awards | |||||||||
The following table summarizes the status of and changes in our unvested restricted stock awards during the year ended December 31, 2014: | |||||||||
Number of Shares | Grant Date Weighted | ||||||||
Average Fair Value | |||||||||
Unvested, December 31, 2013 | 228,403 | $ | 20.95 | ||||||
Granted | 204,786 | 31.31 | |||||||
Vested | (51,866 | ) | 20.62 | ||||||
Forfeited | (573 | ) | 35.26 | ||||||
Unvested, December 31, 2014 | 380,750 | $ | 26.55 | ||||||
We recognized $5.5 million, $1.0 million and $0.1 million of equity-based compensation expense related to these restricted stock awards during the years ended December 31, 2014, 2013 and 2012 respectively. As of December 31, 2014, there was $7.0 million of total unrecognized compensation expense related to these restricted stock awards, which is expected to be recognized over a period of 1.7 years. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES | |||||||
Future Minimum Annual Commitments at December 31, 2014: | ||||||||
Year ending December 31, | Operating Leases | Minimum Purchase Commitments | ||||||
2015 | $ | 32,178 | $ | 30,635 | ||||
2016 | 29,895 | 22,373 | ||||||
2017 | 27,496 | 17,012 | ||||||
2018 | 26,001 | 12,895 | ||||||
2019 | 19,312 | 6,601 | ||||||
Thereafter | 38,522 | 16,000 | ||||||
Total future lease commitments | $ | 173,404 | $ | 105,516 | ||||
Operating Leases | ||||||||
We are obligated under certain operating leases for railroad cars, office space, mining property, mining/processing equipment and transportation and other equipment. Certain operating lease agreements include options to purchase the equipment for fair market value at the end of the original lease term. In general, the above leases include renewal options and provide that we pay for all utilities, insurance, taxes and maintenance. Expense related to operating leases and rental agreements for the years ended December 31, 2014, 2013 and 2012 totaled approximately $32.6 million, $16.3 million and $11.9 million, respectively. As of December 31, 2014, we have no obligations under a capital lease. | ||||||||
Minimum Purchase Commitments | ||||||||
We enter into service agreements with our transload service providers and transportation service providers. Some of these agreements require us to purchase a minimum amount of services over a specific period of time. Any inability to meet these minimum contract requirements requires us to pay a shortfall fee, which is based on the difference between the minimum amount contracted for and the actual amount purchased. | ||||||||
Other Commitments and Contingencies | ||||||||
Our operating subsidiary, U.S. Silica Company (“U.S. Silica”), has been named as a defendant in various product liability claims alleging silica exposure causing silicosis. U.S. Silica was named as a defendant in one claim filed during the year ended December 31, 2014, three filed in 2013 and two filed in 2012. U.S. Silica has been named as a defendant in similar suits since 1975. As of December 31, 2014, there were 86 active silica-related products liability claims pending in which U.S. Silica is a defendant. Although the outcomes of these claims cannot be predicted with certainty, in the opinion of management, it is not reasonably possible that the ultimate resolution of these matters will have a material adverse effect on our financial position or results of operations that exceeds the accrual amounts. | ||||||||
For periods prior to 1986, U.S. Silica had numerous insurance policies and an indemnity from a former owner that covered silicosis claims. In the fourth quarter of 2012, U.S. Silica settled all rights under the indemnity and its underlying insurance policies receiving $5.1 million from the parties involved. As a result of the settlement, the indemnity and related policies are no longer available to U.S. Silica and U.S. Silica will not seek reimbursement for any defense costs or claim payments. Other insurance policies, however, continue to remain available to U.S. Silica. | ||||||||
We have recorded estimated liabilities for these claims in other long-term obligations as well as estimated recoveries under the indemnity agreement and an estimate of future recoveries under insurance in other assets on our consolidated balance sheets. As of December 31, 2014 and 2013, other non-current assets included $311 and $313, respectively, for insurance for third-party products liability claims and other long-term obligations included $1.6 million and $1.6 million, respectively, in third-party products claims liability. Based on decreases in the actual claims filed during the periods along with decreases in the estimated future product liability claims and their related costs, as well as the aforementioned settlement, we recorded pre-tax adjustments to selling, general and administrative expenses related to silica claims (including a $0.2 million loss in 2014, $0.5 million loss in 2013, and a $3.4 million gain in 2012). |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | INCOME TAXES | |||||||||||
We evaluate our deferred tax assets periodically to determine if valuation allowances are required. Ultimately, the realization of deferred tax assets is dependent upon generation of future taxable income during those periods in which temporary differences become deductible and/or credits can be utilized. To this end, management considers the level of historical taxable income, the scheduled reversal of deferred tax liabilities, tax-planning strategies and projected future taxable income. Based on these considerations, and the carry-forward availability of a portion of the deferred tax assets, management believes it is more likely than not that we will realize the benefit of the deferred tax assets. | ||||||||||||
The (expense) benefit for income taxes consisted of the following for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current: | ||||||||||||
Federal | $ | (34,790 | ) | $ | (20,819 | ) | $ | (22,165 | ) | |||
State | (4,835 | ) | (1,831 | ) | (6,237 | ) | ||||||
(39,625 | ) | (22,650 | ) | (28,402 | ) | |||||||
Deferred: | ||||||||||||
Federal | (308 | ) | 1,453 | (3,645 | ) | |||||||
State | 2,750 | 436 | 1,396 | |||||||||
2,442 | 1,889 | (2,249 | ) | |||||||||
Income tax expense | $ | (37,183 | ) | $ | (20,761 | ) | $ | (30,651 | ) | |||
Deferred tax assets and liabilities are recognized for the estimated future tax effects, based on enacted tax laws, of temporary differences between the values of assets and liabilities recorded for financial reporting and for tax purposes and of net operating loss and other carry forwards. | ||||||||||||
The tax effects of the types of temporary differences and carry forwards that gave rise to deferred tax assets and liabilities at December 31, 2014 and 2013 consisted of the following: | ||||||||||||
At December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Gross deferred tax assets: | ||||||||||||
State tax credits and net operating loss carry forward | $ | 25,042 | $ | 1,007 | ||||||||
Pension and post-retirement benefit costs | 24,788 | 15,579 | ||||||||||
Alternative minimum tax credit carry forward | 18,819 | 22,528 | ||||||||||
Property, plant and equipment | 6,580 | 6,109 | ||||||||||
Accrued expenses | 8,237 | 3,818 | ||||||||||
Inventories | 5,366 | 5,863 | ||||||||||
Third-party products liability | 636 | 674 | ||||||||||
Stock-based compensation expense | 3,019 | 1,306 | ||||||||||
Other | 8,457 | 5,502 | ||||||||||
Total deferred tax assets | $ | 100,944 | $ | 62,386 | ||||||||
Gross deferred tax liabilities: | ||||||||||||
Land and mineral property basis difference | $ | (65,217 | ) | $ | (61,366 | ) | ||||||
Fixed assets and depreciation | (53,383 | ) | (47,016 | ) | ||||||||
Intangible assets | (8,587 | ) | (6,788 | ) | ||||||||
Other | (1,211 | ) | (797 | ) | ||||||||
Total deferred tax liabilities | (128,398 | ) | (115,967 | ) | ||||||||
Net deferred tax liabilities | (27,454 | ) | (53,581 | ) | ||||||||
Less: Net current deferred tax assets | 22,295 | 17,737 | ||||||||||
Net long-term deferred tax liabilities | $ | (49,749 | ) | $ | (71,318 | ) | ||||||
As a result of the Cadre acquisition, we have federal net operating loss carry forwards of approximately $69.0 million at December 31, 2014. The losses will expire in years 2027 through 2033. The losses are subject to an annual limitation under Internal Revenue Code Section 382, but are expected to be fully realized. | ||||||||||||
December 31, 2014 and 2013, we have an alternative minimum tax credit carry forward of approximately $18.8 million and $22.5 million, respectively. The credit carry forward may be carried forward indefinitely to offset any excess of regular tax liability over alternative minimum tax liability subject to certain limitations. | ||||||||||||
Ultimately, the realization of deferred tax assets is dependent upon generation of future taxable income during those periods in which temporary differences become deductible and/or credits can be utilized. To this end, management considers the level of historical taxable income, the scheduled reversal of deferred tax liabilities, tax-planning strategies and projected future taxable income. Based on these considerations, and the carry-forward availability of a portion of the deferred tax assets, management believes it is more likely than not that we will realize the benefit of the deferred tax assets. | ||||||||||||
At the end of each reporting period as presented, there were no material amounts of interest and penalties recognized in the statement of operations or balance sheets. We have no material unrecognized tax benefits or any known material tax contingencies at December 31, 2014 or December 31, 2013 and does not expect this to change significantly within the next twelve months. Tax returns filed with the IRS for the years 2011 through 2013 along with tax returns filed with numerous state entities remain subject to examination. | ||||||||||||
Excess tax benefits from equity-based compensation are credited to stockholders’ equity. The excess tax benefits credited to stockholders’ equity were $3.8 million and $1.4 million for the years ended December 31, 2014 and December 31, 2013, respectively. There were no excess tax benefits for the year ended December 31, 2012. | ||||||||||||
The effective income tax rate on pretax earnings differed from the U.S. federal statutory rate for the years ended December 31, 2014, 2013 and 2012 for the following reasons: | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Expense) benefit computed at U.S. federal statutory rate | (35.0 | )% | (35.0 | )% | (35.0 | )% | ||||||
Decrease (increase) resulting from: | ||||||||||||
Statutory depletion | 9.8 | 11 | 9.9 | |||||||||
Prior year tax return reconciliation | 0.6 | 1.9 | (0.5 | ) | ||||||||
State income taxes, net of federal benefit | (2.1 | ) | (2.4 | ) | (2.7 | ) | ||||||
Domestic production deduction | 2.5 | 2.4 | 0.7 | |||||||||
Equity-based compensation | — | — | (0.1 | ) | ||||||||
Other, net | 0.8 | 0.5 | (0.2 | ) | ||||||||
Income tax (expense) benefit | (23.4 | )% | (21.6 | )% | (27.9 | )% | ||||||
The largest permanent item in computing both our effective tax rate and taxable income is the deduction allowed for statutory depletion. The deduction for statutory depletion does not necessarily change proportionately to changes in income before income taxes. |
Pension_and_PostRetirement_Ben
Pension and Post-Retirement Benefits | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||
Pension and Post-Retirement Benefits | PENSION AND POST-RETIREMENT BENEFITS | |||||||||||||||||||||||
We maintain a single-employer noncontributory defined benefit pension plan covering certain employees. There have been no new entrants to the plan since May 2009 when the plan was frozen to all new employees. The plan provides benefits based on each covered employee’s years of qualifying service. Our funding policy is to contribute amounts within the range of the minimum required and maximum deductible contributions for the plan consistent with a goal of appropriate minimization of the unfunded projected benefit obligation. The pension plan uses a benefit level per year of service for covered hourly employees and a final average pay method for covered salaried employees. The plan uses the projected unit credit cost method to determine the actuarial valuation. | ||||||||||||||||||||||||
We employ a total rate of return investment approach whereby a mix of equities and fixed income investments are used to maximize the long-term return of plan assets for a prudent level of risk. Risk tolerance is established through careful consideration of plan liabilities, plan funded status, and corporate financial condition. The investment portfolio contains a diversified blend of equity and fixed-income investments. Furthermore, equity investments are diversified across U.S. and non-U.S. stocks, as well as growth, value and small and large capitalizations. Investment risk is measured and monitored on an ongoing basis through quarterly investment portfolio reviews, annual liability measurements, and periodic asset/liability studies. | ||||||||||||||||||||||||
We employ a building block approach in determining the long-term rate of return for plan assets. Historical markets are studied and long-term historical relationships between equities and fixed-income are preserved consistent with the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. Current market factors such as inflation and interest rates are evaluated before long-term capital market assumptions are determined. The long-term portfolio return is established via a building block approach with proper consideration of diversification and rebalancing. Peer data and historical returns are reviewed to check for reasonability and appropriateness. | ||||||||||||||||||||||||
In addition, we provide defined benefit post-retirement healthcare and life insurance benefits to some employees. Covered employees become eligible for these benefits at retirement after meeting minimum age and service requirements. The projected future cost of providing post-retirement benefits, such as healthcare and life insurance, is recognized as an expense as employees render services. | ||||||||||||||||||||||||
We contribute to a Voluntary Employees’ Beneficiary Association trust that will be used to partially fund health care benefits for future retirees. Benefits are funded to the extent contributions are tax deductible, which under current legislation is limited. In general, retiree health benefits are paid as covered expenses are incurred. | ||||||||||||||||||||||||
Net pension benefit cost consisted of the following for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Service cost—benefits earned during the period | $ | 1,080 | $ | 1,280 | $ | 1,118 | ||||||||||||||||||
Interest cost | 4,811 | 4,198 | 4,734 | |||||||||||||||||||||
Expected return on plan assets | (5,146 | ) | (5,061 | ) | (5,381 | ) | ||||||||||||||||||
Net amortization and deferral | 1,037 | 1,904 | 1,105 | |||||||||||||||||||||
Net pension benefit costs | $ | 1,782 | $ | 2,321 | $ | 1,576 | ||||||||||||||||||
Net post-retirement cost consisted of the following for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Service cost—benefits earned during the period | $ | 151 | $ | 193 | $ | 197 | ||||||||||||||||||
Interest cost | 1,030 | 947 | 1,163 | |||||||||||||||||||||
Expected return on plan assets | (4 | ) | (4 | ) | (4 | ) | ||||||||||||||||||
Net amortization and deferral | — | 87 | 177 | |||||||||||||||||||||
Net post-retirement costs | $ | 1,177 | $ | 1,223 | $ | 1,533 | ||||||||||||||||||
The changes in benefit obligations and plan assets, as well as the funded status of our pension and post-retirement plans at December 31, 2014 and 2013 are as follows: | ||||||||||||||||||||||||
Pension Benefits | Post-retirement Benefits | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Benefit obligation at January 1, | $ | 99,828 | $ | 107,619 | $ | 22,261 | $ | 25,717 | ||||||||||||||||
Service cost | 1,080 | 1,280 | 151 | 193 | ||||||||||||||||||||
Interest cost | 4,811 | 4,198 | 1,030 | 947 | ||||||||||||||||||||
Actuarial gain (loss) | 22,163 | (8,071 | ) | 5,340 | (3,933 | ) | ||||||||||||||||||
Benefits paid | (6,017 | ) | (5,749 | ) | (996 | ) | (1,102 | ) | ||||||||||||||||
Amendments | 471 | 551 | — | — | ||||||||||||||||||||
Other | — | — | 503 | 439 | ||||||||||||||||||||
Benefit obligation at December 31, | $ | 122,336 | $ | 99,828 | $ | 28,289 | $ | 22,261 | ||||||||||||||||
Fair value of plan assets at January 1, | $ | 85,367 | $ | 80,850 | $ | 51 | $ | 54 | ||||||||||||||||
Actual return on plan assets | 6,937 | 7,986 | 3 | 8 | ||||||||||||||||||||
Employer contributions | 4,610 | 2,280 | 492 | 652 | ||||||||||||||||||||
Benefits paid | (6,017 | ) | (5,749 | ) | (996 | ) | (1,102 | ) | ||||||||||||||||
Other | — | — | 469 | 439 | ||||||||||||||||||||
Fair value of plan assets at December 31, | $ | 90,897 | $ | 85,367 | $ | 19 | $ | 51 | ||||||||||||||||
Plan assets less than benefit obligations at December 31 recognized as liability for pension and other post-retirement benefits | $ | (31,439 | ) | $ | (14,461 | ) | $ | (28,270 | ) | $ | (22,210 | ) | ||||||||||||
The accumulated benefit obligation for the defined benefit pension plans, which excludes the assumption of future salary increases, totaled $122.0 million and $99.4 million at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||
The amendments in 2014 reflect plan changes including increases in the benefit multiplier for certain participants. | ||||||||||||||||||||||||
We also sponsor unfunded, nonqualified pension plans. The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for these plans were $1.7 million, $1.7 million and $0 million at December 31, 2014 and $1.6 million, $1.6 million and $0 million at December 31, 2013. | ||||||||||||||||||||||||
Future estimated annual benefit payments for pension and post-retirement benefit obligations at December 31, 2014 are as follows: | ||||||||||||||||||||||||
Benefits | ||||||||||||||||||||||||
Post-retirement | ||||||||||||||||||||||||
Pension | Before | After | ||||||||||||||||||||||
Medicare | Medicare | |||||||||||||||||||||||
Subsidy | Subsidy | |||||||||||||||||||||||
2015 | $ | 6,569 | $ | 1,587 | $ | 1,426 | ||||||||||||||||||
2016 | 6,756 | 1,640 | 1,472 | |||||||||||||||||||||
2017 | 7,048 | 1,716 | 1,540 | |||||||||||||||||||||
2018 | 7,187 | 1,710 | 1,527 | |||||||||||||||||||||
2019 | 7,370 | 1,747 | 1,557 | |||||||||||||||||||||
2020-2024 | 38,348 | 9,545 | 8,522 | |||||||||||||||||||||
Our best estimate of expected contributions to the pension and post-retirement medical benefit plans for the 2015 fiscal year are $2.8 million and $1.4 million , respectively. | ||||||||||||||||||||||||
The amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost during the year ended December 31, 2015 are as follows: | ||||||||||||||||||||||||
Benefits | ||||||||||||||||||||||||
Pension | Post-retirement | Total | ||||||||||||||||||||||
Net actuarial loss | $ | 2,310 | $ | 392 | $ | 2,702 | ||||||||||||||||||
Prior service cost | 274 | — | 274 | |||||||||||||||||||||
$ | 2,584 | $ | 392 | $ | 2,976 | |||||||||||||||||||
The total amounts in accumulated other comprehensive income related to net actuarial loss, net of tax, for both plans was $17.7 million and $2.3 million as of December 31, 2014 and 2013, respectively. The total amounts in accumulated other comprehensive income related to prior service cost, net of tax, for both plans, net of tax, was $1.6 million and $1.4 million as of December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||
The following weighted-average assumptions were used to determine our obligations under the plans: | ||||||||||||||||||||||||
Pension Benefits | Post-retirement Benefits | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Discount rate | 4.1 | % | 4.8 | % | 4.1 | % | 4.8 | % | ||||||||||||||||
Long-term rate of compensation increase | 3.5 | % | 3.5 | % | N/A | N/A | ||||||||||||||||||
Long-term rate of return on plan assets | 7 | % | 7.5 | % | 7 | % | 7.5 | % | ||||||||||||||||
Health care cost trend rate: | ||||||||||||||||||||||||
Pre-65 initial rate/ultimate rate | N/A | N/A | 7.5%/5.0% | 8.0%/5.0% | ||||||||||||||||||||
Pre-65 ultimate year | N/A | N/A | — | — | ||||||||||||||||||||
Post-65 initial rate/ultimate rate | N/A | N/A | 7.0%/5.0% | 7.3%/5.0% | ||||||||||||||||||||
Post-65 ultimate year | N/A | N/A | 2022 | 2021 | ||||||||||||||||||||
The discount rate reflects the expected long-term rates of return with maturities comparable to payments for the plan obligations utilizing Aon Hewitt’s AA Only Above Medium Curve, rounded down to the next 0.05%. | ||||||||||||||||||||||||
Mortality table used for pension benefits and post-retirement benefits plans are the following: | ||||||||||||||||||||||||
Pension Benefits and Post-retirement Benefits | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Healthy lives | RP-2014 Employee and Healthy Annuitant Mortality Table with generational mortality improvements using Scale MP-2014 | 2014 IRS Static Mortality Table for Annuitants and Non-Annuitants per §1.430(h)(3)-1(e) | ||||||||||||||||||||||
Disabled lives | RP-2014 Disabled Retiree Mortality Table with generational mortality improvements using Scale MP-2014 | RP-2000 Disabled Retiree Mortality Table | ||||||||||||||||||||||
Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects: | ||||||||||||||||||||||||
One-Percentage-Point | ||||||||||||||||||||||||
Increase | Decrease | |||||||||||||||||||||||
Effect on total of service and interest cost | $ | 136 | $ | (115 | ) | |||||||||||||||||||
Effect on post-retirement benefit obligation | 3,879 | (3,217 | ) | |||||||||||||||||||||
The major investment categories and their relative percentage of the fair value of total plan assets as invested at December 31, 2014, and 2013 are as follows: | ||||||||||||||||||||||||
Pension Benefits | Post-retirement Benefits | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Equity securities | 57.4 | % | 57.4 | % | 45.3 | % | 59 | % | ||||||||||||||||
Debt securities | 40.5 | % | 36.6 | % | 30.1 | % | 29.5 | % | ||||||||||||||||
Cash | 2.1 | % | 6 | % | 24.6 | % | 11.5 | % | ||||||||||||||||
The fair values of the pension plan assets at December 31, 2014, by asset category, are as follows: | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Cash and cash equivalents | $ | 1,897 | $ | — | $ | — | $ | 1,897 | ||||||||||||||||
Mutual funds: | ||||||||||||||||||||||||
Diversified emerging markets | 8,136 | — | — | 8,136 | ||||||||||||||||||||
Foreign large blend | 13,216 | — | — | 13,216 | ||||||||||||||||||||
Large-cap blend | 19,662 | — | — | 19,662 | ||||||||||||||||||||
Long-term bonds | 36,782 | — | — | 36,782 | ||||||||||||||||||||
Mid-cap blend | 6,293 | — | — | 6,293 | ||||||||||||||||||||
Real estate | 4,844 | — | — | 4,844 | ||||||||||||||||||||
Insurance policies | — | — | 65 | 65 | ||||||||||||||||||||
Net asset | $ | 90,832 | $ | — | $ | 65 | $ | 90,897 | ||||||||||||||||
The fair values of the pension plan assets at December 31, 2013, by asset category, are as follows: | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Cash and cash equivalents | $ | 5,067 | $ | — | $ | — | $ | 5,067 | ||||||||||||||||
Mutual funds: | ||||||||||||||||||||||||
Diversified emerging markets | 7,753 | — | — | 7,753 | ||||||||||||||||||||
Foreign large blend | 13,851 | — | — | 13,851 | ||||||||||||||||||||
Large-cap blend | 17,804 | — | — | 17,804 | ||||||||||||||||||||
Long-term bonds | 31,230 | — | — | 31,230 | ||||||||||||||||||||
Mid-cap blend | 5,807 | — | — | 5,807 | ||||||||||||||||||||
Real estate | 3,776 | — | — | 3,776 | ||||||||||||||||||||
Insurance policies | — | — | 79 | 79 | ||||||||||||||||||||
Net asset | $ | 85,288 | $ | — | $ | 79 | $ | 85,367 | ||||||||||||||||
We contribute to three multiemployer defined benefit pension plans under the terms of collective-bargaining agreements for union-represented employees. A multiemployer plan is subject to collective bargaining for employees of two or more unrelated companies. These plans allow multiple employers to pool their pension resources and realize efficiencies associated with the daily administration of the plan. Multiemployer plans are generally governed by a board of trustees composed of management and labor representatives and are funded through employer contributions. However, in most cases, management is not directly represented. | ||||||||||||||||||||||||
The risks of participating in multiemployer plans differ from single employer plans as follows: 1) assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers, 2) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers, and 3) if we cease to have an obligation to contribute to one or more of the multiemployer plans to which we contribute, we may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. | ||||||||||||||||||||||||
A summary of each multiemployer pension plan for which we participate is presented below: | ||||||||||||||||||||||||
Pension | EIN/ Pension | Pension Protection Act | FIP/RP Status | Company | Surcharge | Expiration | ||||||||||||||||||
Fund | Plan No. | Zone Status(1) | Pending/ | Contributions | Imposed | Date of | ||||||||||||||||||
2014 | 2013 | Implemented | 2014 | 2013 | 2012 | CBA | ||||||||||||||||||
LIUNA | 52-6074345/001 | Red | Red | Yes | $ | 149 | $ | 124 | $ | 123 | Yes | 5/31/17 | ||||||||||||
IUOE | 36-6052390/001 | Green | Green | No | 28 | 22 | 19 | No | 7/31/15 | |||||||||||||||
CSSS(2) | 36-6044243/001 | Red | Red | Yes | 51 | 51 | 51 | NA | NA | |||||||||||||||
-1 | The Pension Protection Act of 2006 defines the zone status as follows: green—healthy, yellow—endangered, orange—seriously endangered and red—critical. | |||||||||||||||||||||||
-2 | In 2011, we withdrew from the Central States, Southeast and Southwest Areas Pension Plan. The withdrawal liability of $1.0 million will be paid in monthly installments of $4 until 2031. | |||||||||||||||||||||||
Our contributions to individual multiemployer pension funds did not exceed 5% of the fund’s total contributions in any of the three years ended December 31, 2014. Additionally, our contributions to multiemployer postretirement benefit plans were immaterial for all periods presented in the accompanying consolidated financial statements. | ||||||||||||||||||||||||
We also sponsor a defined contribution plan covering certain employees. We contribute to the plan in two ways. For certain employees not covered by the defined benefit plan, we make a contribution equal to 4% of their salary. We also contribute an employee match of 25 cents, based on financial performance, for each dollar contributed by an employee, up to 8% of their earnings. For certain employees, we make a profit sharing match up to 75 cents, based on financial performance, for each dollar contributed up to 8% of their earnings. Finally, for some employees, we make a catch-up match of 25 cents for each dollar of catch-up contributions. Contributions were $2.1 million, $1.7 million and $1.4 million for the years ended December 31, 2014, 2013 and 2012, respectively. |
Obligations_Under_Guarantees
Obligations Under Guarantees | 12 Months Ended |
Dec. 31, 2014 | |
Guarantees [Abstract] | |
Obligations Under Guarantees | OBLIGATIONS UNDER GUARANTEES |
We have indemnified Travelers Casualty and Surety Company of America (“Travelers”) against any loss Travelers may incur in the event that holders of surety bonds, issued on behalf of us by Travelers, execute the bonds. As of December 31, 2014, Travelers had $8.5 million in bonds outstanding for us. The majority of these bonds ($8.2 million) relate to reclamation requirements issued by various governmental authorities. Reclamation bonds remain outstanding until the mining area is reclaimed and the authority issues a formal release. The remaining bonds relate to such indefinite purposes as licenses, permits, and tax collection. | |
U.S. Silica is the contingent guarantor of Kanawha Rail Corporation’s (“KRC”) obligations as lessee of 199 covered hopper railroad cars, which are used by U.S. Silica to ship sand to its customers. KRC’s obligation as lessee includes paying monthly rent of $66 until June 30, 2015, maintaining the cars, paying for any cars damaged or destroyed, and indemnifying all other parties to the lease transaction against liabilities including any loss of certain tax benefits. By separate agreement between U.S. Silica and KRC, KRC may, upon the occurrence of certain events, assign the lease obligations to U.S. Silica, but none of these events have occurred. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS |
Advisory Agreement | |
In connection with our acquisition by Golden Gate Capital in 2008, we entered into an Advisory Agreement with Golden Gate Capital whereby Golden Gate Capital agreed to provide business and organizational strategy and financial and advisory services. Such services included support and assistance to management with respect to negotiating and analyzing acquisitions and divestitures, negotiating and analyzing financing alternatives, preparing financial projections, monitoring compliance with financing agreements, marketing functions and searching for and hiring management personnel. | |
As compensation for these services, we agreed to pay Golden Gate Capital (1) an annual advisory fee in the aggregate amount equal to $1.25 million, payable quarterly in arrears, and (2) a transaction fee of 1.25% of the aggregate value of each transaction resulting in a change in control of GGC Holdings or its subsidiaries, along with each acquisition, divestiture, recapitalization and financing. In addition to the fees described above, we also reimbursed Golden Gate Capital for all out-of-pocket costs incurred by Golden Gate Capital in connection with its activities under the Advisory Agreement, and indemnified Golden Gate Capital from and against all losses, claims, damages and liabilities related to the performance of its duties under the Advisory Agreement. | |
On February 6, 2012, we paid $8.0 million to Golden Gate Capital to terminate the Advisory Agreement. The $8.0 million termination fee was accrued for at December 31, 2011 and no additional expense has been recognized during the year ended December 31, 2012. Advisory fees paid to Golden Gate Capital under the Advisory Agreement in 2011 were $1.3 million. These expenses are included in other operating expenses and presented as advisory fees to parent within our income statements. | |
Promissory Note | |
On December 22, 2010, we entered into a $15.0 million promissory note with our former parent, GGC USS Holdings, LLC. The note provided working capital for a new subsidiary and was scheduled to mature on December 22, 2015. The note bore interest at 10%. Outstanding principal and interest under the note were payable upon demand, but no later than the maturity date. Upon sole election by GGC Holdings, any unpaid interest could be paid in cash on each December 22 of each year until the maturity date. As of and for the year ended December 31, 2011, interest on the note is recorded in interest expense in the Income Statements and any unpaid interest is included in accrued interest on the Balance Sheet. On January 31, 2012, simultaneously with the IPO, GGC Holdings contributed to us all of the stock of GGC RCS Holdings, Inc. and converted the $15.0 million promissory note, including $1.7 million of accrued interest, to equity. | |
GGC USS Holdings, LLC held no interest in U.S. Silica after divesting its ownership interest in U.S. Silica during 2013. |
Segment_Reporting
Segment Reporting | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Segment Reporting | SEGMENT REPORTING | |||||||||||
Our business is organized into two reportable segments, Oil & Gas Proppants and Industrial & Specialty Products, based on end markets. The reportable segments are consistent with how management views the markets that we serve and the financial information reviewed by the chief operating decision maker. We manage our Oil & Gas Proppants and Industrial & Specialty Products businesses as components of an enterprise for which separate information is available and is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assess performance. | ||||||||||||
An operating segment’s performance is primarily evaluated based on segment contribution margin, which excludes certain corporate costs not associated with the operations of the segment. These corporate costs are separately stated below and include costs that are related to functional areas such as operations management, corporate purchasing, accounting, treasury, information technology, legal and human resources. We believe that segment contribution margin, as defined above, is an appropriate measure for evaluating the operating performance of its segments. However, this measure should be considered in addition to, not a substitute for, or superior to, income from operations or other measures of financial performance prepared in accordance with generally accepted accounting principles. The other accounting policies of each of the two reporting segments are the same as those in the summary of significant accounting policies included in Note B. | ||||||||||||
In the Oil & Gas Proppants segment, we serve the oil and gas recovery market providing fracturing sand, or “frac sand,” which is pumped down oil and natural gas wells to prop open rock fissures and increase the flow rate of natural gas and oil from the wells. | ||||||||||||
The Industrial & Specialty Products segment consists of over 250 products and materials used in a variety of industries including, container glass, fiberglass, specialty glass, flat glass, building products, fillers and extenders, foundry products, chemicals, recreation products and filtration products. | ||||||||||||
The following table presents sales and segment contribution margin for the reporting segments and other operating results not allocated to the reported segments for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Sales: | ||||||||||||
Oil & Gas Proppants | $ | 662,770 | $ | 347,439 | $ | 243,765 | ||||||
Industrial & Specialty Products | 213,971 | 198,546 | 198,156 | |||||||||
Total sales | 876,741 | 545,985 | 441,921 | |||||||||
Segment contribution margin: | ||||||||||||
Oil & Gas Proppants | 256,137 | 145,916 | 140,070 | |||||||||
Industrial & Specialty Products | 61,102 | 56,983 | 53,601 | |||||||||
Total segment contribution margin | 317,239 | 202,899 | 193,671 | |||||||||
Operating activities excluded from segment cost of goods sold | (7,082 | ) | (5,481 | ) | (8,285 | ) | ||||||
Selling, general and administrative | (88,971 | ) | (49,759 | ) | (41,299 | ) | ||||||
Depreciation, depletion and amortization | (45,019 | ) | (36,418 | ) | (25,099 | ) | ||||||
Interest expense | (18,202 | ) | (15,341 | ) | (13,795 | ) | ||||||
Early extinguishment of debt | — | (480 | ) | — | ||||||||
Other income, net, including interest income | 758 | 597 | 4,612 | |||||||||
Income before income taxes | $ | 158,723 | $ | 96,017 | $ | 109,805 | ||||||
Asset information, including capital expenditures and depreciation, depletion, and amortization, by segment is not included in reports used by management in its monitoring of performance and, therefore, is not reported by segment. Goodwill of $68.4 million has been allocated to these segments with $47.7 million assigned to Oil & Gas Proppants and $20.7 million to Industrial & Specialty Products. |
Unaudited_Supplementary_Data
Unaudited Supplementary Data | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Unaudited Supplementary Data | UNAUDITED SUPPLEMENTARY DATA | |||||||||||||||
The following table sets forth our unaudited quarterly consolidated statements of operations for each of the last four quarters in the years ended December 31, 2014 and 2013. This unaudited quarterly information has been prepared on the same basis as our annual audited financial statements and includes all adjustments, consisting only of normal recurring adjustments that are necessary to present fairly the financial information for the fiscal quarters presented. | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
2014 | (Unaudited) | |||||||||||||||
Sales | $ | 180,095 | $ | 205,801 | $ | 241,256 | $ | 249,589 | ||||||||
Costs of goods sold | 126,770 | 132,417 | 149,697 | 157,700 | ||||||||||||
Operating expenses | — | |||||||||||||||
Selling, general and administrative | 15,445 | 19,267 | 18,600 | 35,659 | ||||||||||||
Depreciation, depletion and amortization | 9,589 | 10,341 | 12,425 | 12,664 | ||||||||||||
25,034 | 29,608 | 31,025 | 48,323 | |||||||||||||
Operating income | 28,291 | 43,776 | 60,534 | 43,566 | ||||||||||||
Other (expense) income | ||||||||||||||||
Interest expense | (3,808 | ) | (4,013 | ) | (4,950 | ) | (5,431 | ) | ||||||||
Other income, net, including interest income | 38 | 221 | 120 | 379 | ||||||||||||
(3,770 | ) | (3,792 | ) | (4,830 | ) | (5,052 | ) | |||||||||
Income before income taxes | 24,521 | 39,984 | 55,704 | 38,514 | ||||||||||||
Income tax expense | (6,150 | ) | (11,330 | ) | (14,427 | ) | (5,276 | ) | ||||||||
Net income | $ | 18,371 | $ | 28,654 | $ | 41,277 | $ | 33,238 | ||||||||
Earnings per share, basic | $ | 0.34 | $ | 0.53 | $ | 0.77 | $ | 0.62 | ||||||||
Earnings per share, diluted | $ | 0.34 | $ | 0.53 | $ | 0.76 | $ | 0.61 | ||||||||
Weighted average common shares outstanding (in thousands), basic | 53,505 | 53,733 | 53,801 | 53,838 | ||||||||||||
Weighted average common shares outstanding (in thousands), diluted | 54,054 | 54,262 | 54,393 | 54,340 | ||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
2013 | (Unaudited) | |||||||||||||||
Sales | $ | 122,311 | $ | 129,828 | $ | 144,372 | $ | 149,474 | ||||||||
Costs of goods sold | 74,412 | 80,297 | 90,983 | 102,875 | ||||||||||||
Operating expenses | ||||||||||||||||
Selling, general and administrative | 12,404 | 10,099 | 12,800 | 14,456 | ||||||||||||
Depreciation, depletion and amortization | 8,278 | 8,890 | 9,152 | 10,098 | ||||||||||||
20,682 | 18,989 | 21,952 | 24,554 | |||||||||||||
Operating income | 27,217 | 30,542 | 31,437 | 22,045 | ||||||||||||
Other (expense) income | ||||||||||||||||
Interest expense | (3,576 | ) | (3,535 | ) | (4,144 | ) | (4,086 | ) | ||||||||
Early extinguishment of debt | — | — | (480 | ) | — | |||||||||||
Other income, net, including interest income | 122 | 63 | 260 | 152 | ||||||||||||
(3,454 | ) | (3,472 | ) | (4,364 | ) | (3,934 | ) | |||||||||
Income before income taxes | 23,763 | 27,070 | 27,073 | 18,111 | ||||||||||||
Income tax (expense) benefit | (6,486 | ) | (6,878 | ) | (5,739 | ) | (1,658 | ) | ||||||||
Net income | $ | 17,277 | $ | 20,192 | $ | 21,334 | $ | 16,453 | ||||||||
Earnings per share, basic | $ | 0.33 | $ | 0.38 | $ | 0.4 | $ | 0.31 | ||||||||
Earnings per share, diluted | $ | 0.32 | $ | 0.38 | $ | 0.4 | $ | 0.31 | ||||||||
Weighted average common shares outstanding (in thousands), basic | 52,946 | 52,948 | 53,103 | 53,035 | ||||||||||||
Weighted average common shares outstanding (in thousands), diluted | 52,211 | 53,227 | 53,429 | 53,409 | ||||||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS |
On January 5, 2015, we paid a cash dividend of $0.125 per share to common stockholders of record on December 15, 2014, as had been declared by our Board of Directors on October 23, 2014. | |
On February 12, 2015, our Board of Directors declared a quarterly cash dividend of $0.125 per share to common stockholders of record at the close of business on March 16, 2015, payable on April 3, 2015. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accounting Policies [Abstract] | ||||||||
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation | |||||||
The accompanying Consolidated Financial Statements (the “Financial Statements”) have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). In the opinion of management, all adjustments necessary for a fair presentation of the Financial Statements have been included. Such adjustments are of a normal, recurring nature. We have reclassified certain immaterial amounts in the prior years’ assets section of the consolidated balance sheets and operating activities section of the consolidated statement of cash flows to conform to the current year presentation. These reclassifications had no effect on previously reported total assets and net cash flows from operations. | ||||||||
In order to make this report easier to read, we refer throughout to (i) our Consolidated Balance Sheets as our “Balance Sheets,” (ii) our Consolidated Statements of Operations as our “Income Statements,” and (iii) our Consolidated Statements of Cash Flows as our “Cash Flows.” | ||||||||
Consolidation | ||||||||
The Financial Statements include the accounts of Holdings and its direct and indirect wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. | ||||||||
We follow FASB Accounting Standards Codification (“ASC”) guidance for identification and reporting of entities over which control is achieved through means other than voting rights. The guidance defines such entities as Variable Interest Entities (“VIEs”). For the periods presented herein, we have identified no entities over which we maintain any level of control that would qualify for consolidation under ASC guidance. | ||||||||
Consolidation | Consolidation | |||||||
The Financial Statements include the accounts of Holdings and its direct and indirect wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. | ||||||||
We follow FASB Accounting Standards Codification (“ASC”) guidance for identification and reporting of entities over which control is achieved through means other than voting rights. The guidance defines such entities as Variable Interest Entities (“VIEs”). For the periods presented herein, we have identified no entities over which we maintain any level of control that would qualify for consolidation under ASC guidance. | ||||||||
Use of Estimates and Assumptions | Use of Estimates and Assumptions | |||||||
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Financial Statements. Actual results could differ from these estimates. | ||||||||
Revenue Recognition | Revenue Recognition | |||||||
We derive our sales by mining and processing minerals that our customers purchase for various uses. Our sales are primarily a function of the price per ton and the number of tons sold. The price invoiced reflects product, transportation and additional services as applicable, such as storage and transloading the product from railcars to trucks for delivery to the customer site. | ||||||||
Revenue is recognized from a sale when persuasive evidence of an arrangement exists, the price is determinable, the product has been delivered or legal title has been transferred to the customer and collection of the sales is reasonably assured. Amounts received from customers in advance of revenue recognition are deferred as liabilities. | ||||||||
We primarily sell our products under short-term price agreements or at prevailing market rates. For a limited number of customers, we sell under long-term, competitively-bid take-or-pay supply agreements. During the course of the year ended December 31, 2014, we were party to take-or-pay supply agreements with ten of our customers in the Oil & Gas Proppants segment with initial terms expiring between 2014 and 2019. These agreements define, among other commitments, the volume of product that our customers must purchase, the volume of product that we must provide and the price that we will charge that our customers will pay for each product. Prices under these agreements are generally fixed and subject to upward adjustment in response to certain cost increases. | ||||||||
We invoice the majority of our clients on a per shipment basis, although for some larger customers, we consolidate invoices weekly or monthly. Standard terms are net 30 days, although extended terms are offered in competitive situations. | ||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents | |||||||
Cash and cash equivalents consist of all highly liquid investments with a maturity of three months or less when purchased. Because of the short maturity of these investments, the carrying amounts approximate their fair value. Cash and cash equivalents are invested primarily in money market securities with high quality institutions. Accounts at each institution are insured by Federal Deposit Insurance Corporation. Cash balances at times may exceed federally-insured limits. We have not experienced any losses in such accounts and believe we are not exposed to any significant credit risk on cash. | ||||||||
Accounts Receivable | Accounts Receivable | |||||||
The majority of our accounts receivable are due from companies in the glass, oil and natural gas drilling, building products, filler and extenders, foundries and other major industries. Credit is extended based on evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are generally due within 30 days and are stated at amounts due from customers net of an allowance for doubtful accounts. Accounts outstanding longer than the payment terms are considered past due. We determine our allowance by considering a number of factors, including the length of time trade accounts receivable are past due, our previous loss history, the customer’s current ability to pay its obligation to us, and the condition of the general economy and the industry as a whole. Ongoing credit evaluations are performed. We write-off accounts receivable when they are deemed uncollectible, and payments subsequently received on such receivables are credited to the allowance for doubtful accounts. | ||||||||
Our ten largest customers accounted for approximately 57%, 52%, and 37% of sales in the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||
Inventories | Inventories | |||||||
Inventories include raw stockpiles and silica and other industrial sand available for shipment, as well as spare parts and supplies for routine facilities maintenance. We value inventory at the lower of cost or market. Cost is determined using the first-in, first-out and average cost methods. Costs of our raw stockpiles and silica and other industrial sand inventories include production costs and transportation and additional service costs as applicable. | ||||||||
Property, Plant and Mine Development | Property, Plant and Mine Development | |||||||
Property and equipment | ||||||||
Property and equipment is recorded at cost and depreciated over their estimated useful lives. Interest incurred during construction of facilities is capitalized and depreciated over the life of the asset. Depreciable properties, mining properties, and mineral deposits acquired in connection with business acquisitions are recorded at fair market value as of the date of acquisition. | ||||||||
Costs for normal repairs and maintenance that do not extend economic life or improve service potential are expensed as incurred. Costs of improvements that extend economic life or improve service potential are capitalized and depreciated over the estimated remaining useful life. | ||||||||
Depreciation is recorded using the straight-line method over the assets’ estimated useful life as follows: buildings (15 years); land improvements (10 years); machinery & equipment, including computer equipment and software (3-10 years); furniture & fixtures (8 years). Leasehold improvements are depreciated over the shorter of the asset life or lease term. Construction-in-progress is primarily comprised of machinery and equipment, which has not yet been placed in service. | ||||||||
Gains on the sale of assets are included in income when the assets are disposed of provided there is more than reasonable certainty of the collectability of the sales price and any future activities required to be performed by us relating to the disposal of the assets are complete or insignificant. Upon retirement or disposal of assets, all costs and related accumulated depreciation or amortization are written-off. | ||||||||
Depletion and amortization of mineral deposits are recorded as the minerals are extracted, based on units of production and engineering estimates of mineable reserves. The impact of revisions to reserve estimates is recognized on a prospective basis. | ||||||||
We periodically evaluate whether current events or circumstances indicate that the carrying value of our property, plant and equipment assets may not be recoverable. If circumstances indicate that the carrying value may not be recoverable, we estimate future undiscounted net cash flows using estimates of proven and probable sand reserves, estimated future sales prices (considering historical and current prices, price trends and related factors) and operating costs and anticipated capital expenditures. If the undiscounted cash flows are less than the carrying value of the assets, we recognize an impairment loss equal to the amount by which the carrying value exceeds the fair value of the assets. | ||||||||
Mine exploration and development | ||||||||
Mine exploration and development costs include engineering and mineral studies, drilling and other related costs to delineate an ore body, and the removal of overburden to initially expose an ore body for production. Costs incurred before mineralization are classified as proven and probable reserves are expensed and classified as exploration or advanced projects, research and development expense. Capitalization of mine development project costs, that meet the definition of an asset, begins once mineralization is classified as proven and probable reserves. | ||||||||
Drilling and related costs are capitalized for an ore body where proven and probable reserves exist and the activities are directed at obtaining additional information on the ore body or converting non-reserve mineralization to proven and probable reserves and the benefit is expected to be realized over a period beyond one year. All other drilling and related costs are expensed as incurred. Drilling costs incurred during the production phase for operational ore control are allocated to inventory costs and then included as a component of costs applicable to sales. | ||||||||
The cost of removing overburden and waste materials to access the ore body at an open pit mine prior to the production phase are referred to as “pre-stripping costs.” Pre-stripping costs are capitalized during the development of an open pit mine. Where multiple open pits exist at a mining complex utilizing common processing facilities, pre-stripping costs are capitalized at each pit. The removal, production, and sale of de minimis saleable materials may occur during development and are recorded as other income, net of incremental mining and processing costs. | ||||||||
The production phase of an open pit mine commences when saleable minerals, beyond a de minimis amount, are produced. Stripping costs incurred during the production phase of a mine are variable production costs that are included as a component of inventory to be recognized in costs applicable to sales in the same period as the revenue from the sale of inventory. | ||||||||
Mine development costs are amortized using the units-of-production method based on estimated recoverable tons in proven and probable reserves. To the extent that these costs benefit an entire ore body, they are amortized over the estimated life of the ore body. Costs incurred to access specific ore blocks or areas that only provide benefit over the life of that area are amortized over the estimated life of that specific ore block or area. | ||||||||
Mine reclamation costs and asset retirement obligations | ||||||||
We recognize the fair value of any liability for conditional asset retirement obligations, including environmental remediation liabilities when incurred, which is generally upon acquisition, construction or development and/or through the normal operation of the asset, if sufficient information exists to reasonably estimate the fair value of the liability. These obligations generally include the estimated net future costs of dismantling, restoring and reclaiming operating mines and related mine sites, in accordance with federal, state, local regulatory and land lease agreement requirements. The liability is accreted over time through periodic charges to earnings. In addition, the asset retirement cost is capitalized as part of the asset’s carrying value and amortized over the life of the related asset. Reclamation costs are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation and abandonment costs. The reclamation obligation is based on when spending for an existing environmental disturbance will occur. If the asset retirement obligation is settled for other than the carrying amount of the liability, a gain or loss is recognized on settlement. We review, on an annual basis, unless otherwise deemed necessary, the reclamation obligation at each mine site in accordance with ASC guidance for accounting reclamation obligations. | ||||||||
Future remediation costs for inactive mines are accrued based on management’s best estimate at the end of each period of the costs expected to be incurred at a site. Such cost estimates include, where applicable, ongoing care, maintenance and monitoring costs. Changes in estimates at inactive mines are reflected in earnings in the period an estimate is revised. | ||||||||
In connection with our annual review of our reclamation obligations, we have determined that some of our estimates required revision due primarily to the additions of new plant and transload facilities and other changes in cost estimates and settlement dates at numerous sites. These additions and changes in estimates resulted in an additional $2.0 million and $2.3 million of asset retirement obligations in 2014 and 2013, respectively. | ||||||||
Our asset retirement obligations are reported in other long-term obligations. The changes in these obligations during the year ending December 31, 2014 and 2013 are as follows: | ||||||||
2014 | 2013 | |||||||
Beginning balance | $ | 9,378 | $ | 6,659 | ||||
Payments | (782 | ) | — | |||||
Accretion | 676 | 456 | ||||||
Additions and revisions of prior estimates | 2,011 | 2,263 | ||||||
Ending balance | $ | 11,283 | $ | 9,378 | ||||
Goodwill and Other Intangible Assets and Related Impairment | Goodwill and Other Intangible Assets and Related Impairment | |||||||
Our intangible assets consist of goodwill, which is not being amortized; indefinite lived intangibles, which consist of certain trade names that are not subject to amortization; and customer relationships, which are being amortized on a straight-line basis over their useful life of 20 years. Goodwill represents the excess of purchase price over the fair value of net assets from business acquisitions including the Cadre acquisition in 2014. | ||||||||
Goodwill and other intangible assets with indefinite lives are reviewed for impairment annually as of October 31 or more frequently whenever events or circumstances change that would more likely than not reduce the fair value of those assets. Prior to conducting a formal impairment test, we assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that is more likely than not (more than 50%) that the fair value of a reporting unit is less than its carrying amount. Such qualitative factors may include the following: macroeconomic conditions; industry and market considerations; cost factors; overall financial performance; and other relevant entity-specific events. | ||||||||
If the qualitative assessment determines that an impairment is more likely than not, then the impairment test for goodwill, or other intangible assets with indefinite lives, requires a comparison of the fair value with the carrying amount, including goodwill. If this comparison reflects impairment, then the loss would be measured as the excess of recorded goodwill, or other intangible assets with indefinite lives, over its implied fair value. Implied fair value is the excess of our fair value over the fair value of all recognized and unrecognized assets and liabilities. | ||||||||
The evaluation of goodwill, or other intangible assets with indefinite lives, for possible impairment includes estimating our fair value using discounted cash flows and multiples of cash earnings valuation techniques, plus valuation comparisons to similar businesses. These valuations require us to make estimates and assumptions regarding future operating results, cash flows, changes in working capital and capital expenditures, selling prices, profitability, and the cost of capital. Although we believe that the estimates and assumptions used were reasonable, actual results could differ from those estimates and assumptions. As of December 31, 2014 our qualitative assessment did not indicate that it was more likely than not that an impairment had occurred. | ||||||||
As of December 31, 2014, the gross carrying amount of the customer relationships intangible asset was $9.5 million with accumulated amortization of $2.5 million. We review all finite-lived intangible assets for impairment when circumstances indicate that their carrying amounts may not be recoverable. We evaluate the carrying value of all finite-lived intangible assets for impairment by comparing the expected undiscounted future cash flows of the asset to the net book value of the asset. If the expected undiscounted future cash flows are less than the net book value of the assets, the excess of the net book value over the estimated fair value is recorded in our consolidated statements of operations as impairment loss. Fair value is generally estimated using valuation techniques that consider the discounted cash flows of the asset at rates deemed reasonable for the type of asset and prevailing market conditions, replacement cost, appraisals, including recent similar transactions in the market and if appropriate, current estimated net sales proceeds from pending offers. As of December 31, 2014, the weighted average remaining useful life of our customer relationships was 13.9 years. The estimated annual amortization in each of the next five years is $496. | ||||||||
Debt Issuance Costs | Debt Issuance Costs | |||||||
Debt issuance costs consist of loan origination costs, which are being amortized using the effective interest method over the term of the related debt principal. Amortization included in interest expense was $912, $680 and $515 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||
Environmental Costs | Environmental Costs | |||||||
Environmental costs, other than qualifying capital expenditures, are accrued at the time the exposure becomes known and costs can be reasonably estimated. Costs are accrued based upon management’s estimates of all direct costs, after taking into account expected reimbursement by third parties (primarily the sellers of acquired businesses), and are reviewed by outside consultants. Environmental costs are charged to expense unless a settlement with an indemnifying party has been reached. | ||||||||
Self-Insurance | Self-Insurance | |||||||
We are self-insured for various levels of employee health insurance coverage, workers’ compensation and third party product liability claims alleging occupational disease. We purchase insurance coverage for claim amounts which exceed our self-insured retentions. Depending on the type of insurance, these self-insured retentions range from $100,000 to $500,000 per occurrence. | ||||||||
Our insurance reserves are accrued based on estimates of the ultimate cost of claims expected to occur during the covered period. These estimates are prepared with the assistance of outside actuaries and consultants. Our actuaries periodically review the volume and amount of claims activity, and based upon their findings, we adjust our insurance reserves accordingly. The ultimate cost of claims for a covered period may differ from our original estimates. | ||||||||
The current portion of our self-insurance reserves is included in accrued liabilities and the non-current portion is included in other long-term obligations in our consolidated balance sheets. Our self-insurance reserves totaled $5.7 million and $5.4 million at December 31, 2014 and 2013, respectively. Of these amounts, $1.8 million and $1.7 million, respectively, were classified as current. | ||||||||
Equity-based Compensation | Equity-based Compensation | |||||||
We recognize the cost of employee services rendered in exchange for awards of equity instruments, such as stock options and restricted stock, based on the fair value of those awards at the date of the grant. | ||||||||
Vesting of restricted stock and restricted stock units is based on the individual continuing to render service over a three year vesting schedule. Additionally, we grant performance share units to certain employees in which the number of shares of common stock ultimately received is determined based on achievement of certain performance thresholds or a specified performance period in accordance with the stock award agreement. Cash dividend equivalents are accrued and paid to the holders of time based restricted stock units and restricted stock only after the performance period has lapsed. Cash dividend equivalents are not accrued or paid on performance share units. | ||||||||
The restricted award related compensation expense is recognized, on a straight-line basis, over the vesting period of each separately vesting portion. The fair value of the restricted stock awards is equal to the market price of our stock at date of grant. | ||||||||
Income Taxes | Income Taxes | |||||||
Deferred taxes are provided on the liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards and deferred tax liabilities are recognized for taxable temporary differences. This approach requires recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based upon the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the expenses are expected to reverse. Valuation allowances are provided if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. | ||||||||
We recognize a tax benefit associated with an uncertain tax position when, in management’s judgment, it is more likely than not that the position will be sustained upon examination by a taxing authority. For a tax position that meets the more-likely-than-not recognition threshold, we initially and subsequently measure the tax benefit as the largest amount that it judges to have a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority. The liability associated with unrecognized tax benefits is adjusted periodically due to changing circumstances, such as the progress of tax audits, case law developments and new or emerging legislation. Such adjustments are recognized entirely in the period in which they are identified. The effective tax rate includes the net impact of changes in the liability for unrecognized tax benefits and subsequent adjustments as considered appropriate by management. | ||||||||
The largest permanent item in computing both our effective tax rate and taxable income is the deduction allowed for statutory depletion. The impact of statutory depletion on the effective tax rate is presented in Note Q - Income Taxes. The deduction for statutory depletion does not necessarily change proportionately to changes in income before income taxes. | ||||||||
Earnings per Share | Earnings per Share | |||||||
Basic and diluted earnings per share is presented for net income. Basic earnings per share is computed by dividing income available to common stockholders by the weighted-average number of outstanding common shares for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts that may require the issuance of common shares in the future were converted. Diluted earnings per share is computed by increasing the weighted-average number of outstanding common shares to include the additional common shares that would be outstanding after conversion and adjusting net income for changes that would result from the conversion. Only those securities or other contracts that result in a reduction in earnings per share are included in the calculation. | ||||||||
Comprehensive Income | Comprehensive Income | |||||||
In addition to net income, comprehensive income (loss) includes all changes in equity during a period, such as adjustments to minimum pension liabilities, unrealized gain or loss on our short term investments and the effective portion of changes in fair value of derivative instruments that qualify as cash flow hedges. | ||||||||
Short-Term Investments | Short-Term Investments | |||||||
Our short-term investments consist of fixed income securities that have been classified and accounted for as available-for-sale. We determine the appropriate classification of our investments at the time of purchase and reevaluate the designations at each balance sheet date. We classify these securities as either short-term or long-term based on each instrument’s underlying contractual maturity date. Fixed income securities with maturities of 12 months or less are classified as short-term and fixed income securities with maturities greater than 12 months are classified as long-term. These investments are carried at fair value, with the unrealized gains and losses, net of taxes, reported as a separate component of accumulated other comprehensive income. The cost of securities sold is based upon the specific identification method. | ||||||||
We typically invest in highly-rated securities, and our investment policy generally limits the amount of credit exposure to any one issuer. The policy requires investments generally to be investment grade, with the primary objective of minimizing the potential risk of principal loss. Fair values were determined for each individual security in the investment portfolio. When evaluating an investment for other-than-temporary impairment, we review factors such as the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer and any changes thereto, changes in market interest rates, and our intent to sell, or whether it is more likely than not we will be required to sell, the investment before recovery of the investment’s cost basis. As of December 31, 2014, and 2013, we considered any losses in our short-term investment portfolio to be temporary in nature and did not consider any of our investments other-than-temporarily impaired. | ||||||||
Financial Instruments | Financial Instruments | |||||||
We currently use interest rate hedge agreements and have historically utilized natural gas hedge agreements to manage interest and energy costs and the risk associated with changing interest rates and natural gas prices. Amounts to be paid or received under these hedge agreements are accrued as interest rates or natural gas prices change and are recognized over the life of the hedge agreements as an adjustment to interest expense or, in the case of natural gas, cost of goods sold. Our policy is to not hold or issue derivative financial instruments for trading or speculative purposes. When entered into, these financial instruments are designated as hedges of underlying exposures, associated with our long-term debt and energy costs, and are monitored to determine if they remain effective hedges. Gains and losses on derivatives designated as cash flow hedges are recorded in other comprehensive income net of tax and reclassified to earnings in a manner that matches the timing of the earnings impact of the hedged transactions. The ineffective portion of all hedges, if any, is recognized currently in income. Additional disclosures for derivative instruments are presented in Note N to these financial statements. | ||||||||
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements | |||||||
In May 2014, the Financial Accounting Standards Board ("FASB") issued an ASU 2014-08, Revenue from Contracts with Customers, which supersedes previous revenue recognition guidance. The new standard requires that a company recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration the company expects to receive in exchange for those goods or services. Companies will need to use more judgment and estimates than under the guidance currently in effect, including estimating the amount of variable revenue to recognize over each identified performance obligation. Additional disclosures will be required to help users of financial statements understand the nature, amount and timing of revenue and cash flows arising from contracts. The new standard will become effective beginning with the first quarter 2017 and can be adopted either retrospectively to each prior reporting period presented or as a cumulative effect adjustment as of the date of adoption. We are currently evaluating the impact of adopting this new guidance on the consolidated financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounting Policies [Abstract] | |||||||||
Changes in Asset Retirement Obligation | The changes in these obligations during the year ending December 31, 2014 and 2013 are as follows: | ||||||||
2014 | 2013 | ||||||||
Beginning balance | $ | 9,378 | $ | 6,659 | |||||
Payments | (782 | ) | — | ||||||
Accretion | 676 | 456 | |||||||
Additions and revisions of prior estimates | 2,011 | 2,263 | |||||||
Ending balance | $ | 11,283 | $ | 9,378 | |||||
Summary of Valuation Assumptions | |||||||||
Weighted-average | |||||||||
Year ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Risk-free interest rate | 1.81% | 1.03 – 1.31% | 0.83 - 1.05% | ||||||
Expected volatility | 45 | % | 45 | % | 45 | % | |||
Expected term | 6.25 years | 6.25 years | 6.25 years | ||||||
Expected dividend yield | 1 | % | 0 | % | 0 | % | |||
Expected forfeiture yield | 0 | % | 0 | % | 0 | % |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Schedule of Basic and Diluted Earnings Per Share | Basic earnings per common share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per common share is computed similarly to basic earnings per common share except that the weighted average number of common shares outstanding is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued. In accordance with the applicable accounting guidance for calculating earnings per share, we did not include in our calculation of diluted earnings per share for the applicable periods stock options where the exercise prices were greater than the average market prices. | |||||||||||
For the Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net income | $ | 121,540 | $ | 75,256 | $ | 79,154 | ||||||
Less: net income allocated to outstanding restricted stockholders | (230 | ) | (175 | ) | (105 | ) | ||||||
Net income allocated to common stockholders | $ | 121,310 | $ | 75,081 | $ | 79,049 | ||||||
Weighted-average common stock | ||||||||||||
Outstanding | 53,719 | 53,035 | 52,592 | |||||||||
Outstanding assuming dilution | 54,296 | 53,409 | 52,641 | |||||||||
The weighted-average stock options (in thousands) that are antidilutive and are therefore excluded from the calculation of diluted earnings per common share are: | ||||||||||||
For the Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Weighted-average outstanding stock options excluded | 33 | 175 | 1,070 | |||||||||
Capital_Structure_and_Accumula1
Capital Structure and Accumulated Comprehensive Income (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Equity [Abstract] | ||||||||||||||||
Schedule of Declared Quarterly Dividends | In 2014, our Board of Directors declared quarterly cash dividends as follows: | |||||||||||||||
Dividends per Common Share | Declaration Date | Record Date | Payable Date | |||||||||||||
$ | 0.125 | February 6, 2014 | March 14, 2014 | April 1, 2014 | ||||||||||||
$ | 0.125 | April 25, 2014 | June 13, 2014 | July 3, 2014 | ||||||||||||
$ | 0.125 | July 25, 2014 | September 15, 2014 | October 3, 2014 | ||||||||||||
$ | 0.125 | October 24, 2014 | December 15, 2014 | January 5, 2015 | ||||||||||||
Changes in Accumulated Other Comprehensive Income | The following table presents the changes in accumulated other comprehensive income by component during the year ended December 31, 2014: | |||||||||||||||
For the Year Ended December 31, 2014 | ||||||||||||||||
Unrealized | Unrealized | Pension and | Total | |||||||||||||
gain/(loss) on | gain/(loss) on | other post- | ||||||||||||||
cash flow | short-term | retirement | ||||||||||||||
hedges | investments | benefits liability | ||||||||||||||
Beginning Balance | $ | (79 | ) | $ | (27 | ) | $ | (3,911 | ) | $ | (4,017 | ) | ||||
Other comprehensive income (loss) before reclassifications | (65 | ) | (14 | ) | (16,388 | ) | (16,467 | ) | ||||||||
Amounts reclassed from accumulated other comprehensive income | 10 | — | 656 | 666 | ||||||||||||
Ending Balance | $ | (134 | ) | $ | (41 | ) | $ | (19,643 | ) | $ | (19,818 | ) |
Business_Combinations_Tables
Business Combinations (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Business Combinations [Abstract] | ||||||||||||
Schedule of Identifiable Assets Acquired and Liabilities Assumed | The table below represents the tangible and identifiable intangible assets and liabilities based on management’s assessment of the acquisition date fair value of the assets acquired and liabilities assumed: | |||||||||||
Accounts receivable | $ | 6,898 | ||||||||||
Inventory | 2,534 | |||||||||||
Other current assets | 174 | |||||||||||
Fixed assets (net) | 73,138 | |||||||||||
Deferred tax assets (net) | 13,966 | |||||||||||
Accounts payable, accrued expenses and other liabilities | (4,389 | ) | ||||||||||
Net tangible assets acquired | 92,321 | |||||||||||
Customer relationships | 1,274 | |||||||||||
Trade name | 4,478 | |||||||||||
Goodwill | 244 | |||||||||||
Preliminary purchase price, net of cash acquired | $ | 98,317 | ||||||||||
Summary of Identifiable Intangible Assets | The following table summarizes the allocation of identifiable intangible assets resulting from the acquisition: | |||||||||||
Useful Lives | Value | |||||||||||
Customer relationships | 15 years | $ | 1,274 | |||||||||
Trade name | Indefinite | 4,478 | ||||||||||
Total intangible assets | $ | 5,752 | ||||||||||
Pro Forma Summary | This information does not purport to be indicative of the actual results that would have occurred if the acquisition had actually been completed on the date indicated, nor is it necessarily indicative of the future operating results or the financial position of the combined company (in thousands, except per share amounts): | |||||||||||
For the Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Sales | $ | 901,916 | $ | 578,453 | $ | 481,100 | ||||||
Net income | $ | 126,960 | $ | 76,942 | $ | 82,782 | ||||||
Basic earnings per share | $ | 2.36 | $ | 1.45 | $ | 1.57 | ||||||
Diluted earnings per share | $ | 2.33 | $ | 1.44 | $ | 1.57 | ||||||
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Receivables [Abstract] | ||||||||
Schedule of Accounts Receivable | Changes in our allowance for doubtful accounts during the years ended December 31, 2014 and 2013 are as follows: | |||||||
Allowance for Doubtful Accounts | ||||||||
2014 | 2013 | |||||||
Balance at January 1, | $ | 2,376 | $ | 1,053 | ||||
Bad debt provision | 10,200 | 1,330 | ||||||
Write-offs | (2,147 | ) | (7 | ) | ||||
Balance at December 31, | $ | 10,429 | $ | 2,376 | ||||
At December 31, 2014 and 2013, accounts receivable consisted of the following: | ||||||||
At December 31, | ||||||||
2014 | 2013 | |||||||
Trade receivables | $ | 128,498 | $ | 76,223 | ||||
Less: Allowance for doubtful accounts | (10,429 | ) | (2,376 | ) | ||||
Net trade receivables | 118,069 | 73,847 | ||||||
Other receivables | 2,812 | 1,360 | ||||||
Total accounts receivable | $ | 120,881 | $ | 75,207 | ||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule of Inventories | At December 31, 2014 and 2013, inventories consisted of the following: | |||||||
At December 31, | ||||||||
2014 | 2013 | |||||||
Supplies | $ | 17,528 | $ | 15,576 | ||||
Raw materials and work in process | 12,562 | 11,728 | ||||||
Finished goods | 36,622 | 36,908 | ||||||
Total inventories | $ | 66,712 | $ | 64,212 | ||||
Property_Plant_and_Mine_Develo1
Property, Plant and Mine Development (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Schedule of Property, Plant and Mine Development | At December 31, 2014 and 2013, property, plant and mine development consisted of the following: | |||||||
At December 31, | ||||||||
2014 | 2013 | |||||||
Mining property and mine development | $ | 197,824 | $ | 164,609 | ||||
Asset retirement cost | 9,559 | 7,275 | ||||||
Land | 28,443 | 25,738 | ||||||
Land improvements | 35,322 | 31,093 | ||||||
Buildings | 47,149 | 36,311 | ||||||
Machinery and equipment | 323,618 | 263,304 | ||||||
Furniture and fixtures | 1,599 | 1,131 | ||||||
Construction-in-progress | 78,997 | 25,974 | ||||||
722,511 | 555,435 | |||||||
Accumulated depletion, depreciation and amortization | (156,756 | ) | (113,319 | ) | ||||
Total property, plant and mine development, net | $ | 565,755 | $ | 442,116 | ||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Schedule of Accrued Liabilities | At December 31, 2014 and 2013, accrued liabilities consisted of the following: | |||||||
At December 31, | ||||||||
2014 | 2013 | |||||||
Accrued salaries and wages | $ | 3,144 | $ | 2,411 | ||||
Accrued vacation liability | 2,616 | 2,396 | ||||||
Current portion of liability for pension and post-retirement benefits | 1,530 | 1,428 | ||||||
Accrued healthcare liability | 1,745 | 1,662 | ||||||
Accrued property taxes and sales taxes | 2,737 | 1,421 | ||||||
Other accrued liabilities | 6,139 | 1,505 | ||||||
Total accrued liabilities | $ | 17,911 | $ | 10,823 | ||||
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of Debt | At December 31, 2014 and 2013, debt consisted of the following: | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Senior secured credit facility: | ||||||||
Revolver expiring July 23, 2018 (4.75% at December 31, 2014 and December 31, 2013) | $ | — | $ | — | ||||
Term loan facility—final maturity July 23, 2020 (4% - 5.25% at December 31, 2014 and 4% at December 31, 2013), net of unamortized original issue discount of $2,078 and $1,674, respectively | 502,297 | 371,451 | ||||||
Total debt | 502,297 | 371,451 | ||||||
Less: current portion | (4,718 | ) | (3,488 | ) | ||||
Total long-term portion of debt | $ | 497,579 | $ | 367,963 | ||||
Schedule of Contractual Maturities of Debt | At December 31, 2014, contractual maturities of long-term debt are as follows: | |||||||
2015 | $ | 4,718 | ||||||
2016 | 4,722 | |||||||
2017 | 4,725 | |||||||
2018 | 4,729 | |||||||
2019 | 4,733 | |||||||
Thereafter | 478,670 | |||||||
$ | 502,297 | |||||||
Fair_Value_Accounting_Tables
Fair Value Accounting (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||
Schedule of Measure at Fair Value on Recurring Basis | In accordance with the fair value hierarchy, the following table presents the fair value as of December 31, 2014 and 2013, respectively, of those assets that we measure at fair value on a recurring basis: | |||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||
Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | |||||||||||||||||||
Short-term investments | $ | 666 | $ | 74,477 | $ | 75,143 | $ | 622 | $ | 74,358 | $ | 74,980 | ||||||||||||
Interest rate derivatives | — | 5 | 5 | — | 109 | 109 | ||||||||||||||||||
Net asset | $ | 666 | $ | 74,482 | $ | 75,148 | $ | 622 | $ | 74,467 | $ | 75,089 | ||||||||||||
ShortTerm_Investments_Tables
Short-Term Investments (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||
Summary of Available-for-sale Short-Term Investments | The following table summarizes our available-for-sale short-term investments: | |||||||||||||||
Aggregate | Gross | Gross | Fair | |||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||
Gains | Losses | |||||||||||||||
31-Dec-13 | ||||||||||||||||
Money market mutual funds | $ | 622 | $ | — | $ | — | $ | 622 | ||||||||
Fixed income securities: | ||||||||||||||||
Certificates of deposit | 25,218 | — | (34 | ) | 25,184 | |||||||||||
Commercial paper | 15,168 | 4 | (1 | ) | 15,171 | |||||||||||
Corporate notes and bonds | 9,495 | — | (9 | ) | 9,486 | |||||||||||
Government agencies | 13,979 | 6 | — | 13,985 | ||||||||||||
U.S. Treasuries | 4,828 | — | (10 | ) | 4,818 | |||||||||||
Variable Rate Demand Obligations | 5,714 | — | — | 5,714 | ||||||||||||
Total available-for-sale investments | $ | 75,024 | $ | 10 | $ | (54 | ) | $ | 74,980 | |||||||
31-Dec-14 | ||||||||||||||||
Money market mutual funds | $ | 666 | $ | — | $ | — | $ | 666 | ||||||||
Fixed income securities: | ||||||||||||||||
Certificates of deposit | 29,233 | — | (23 | ) | 29,210 | |||||||||||
Commercial paper | 10,187 | 7 | (2 | ) | 10,192 | |||||||||||
Corporate notes and bonds | 12,076 | — | (29 | ) | 12,047 | |||||||||||
Government agencies | 16,681 | 4 | (17 | ) | 16,668 | |||||||||||
U.S. Treasuries | 2,151 | — | (4 | ) | 2,147 | |||||||||||
Variable Rate Demand Obligations | 4,213 | — | — | 4,213 | ||||||||||||
Total available-for-sale investments | $ | 75,207 | $ | 11 | $ | (75 | ) | $ | 75,143 | |||||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||
Estimated Fair Values of Derivative Instruments | The following table summarizes the fair value of our derivative instruments. See Note L - Fair Value Accounting for additional disclosures regarding the estimated fair values of our derivative instruments at December 31, 2014, and 2013. | |||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||
Maturity | Contract/Notional | Carrying | Fair | Contract/Notional | Carrying | Fair | ||||||||||||||||||||
Date | Amount | Amount | Value | Amount | Amount | Value | ||||||||||||||||||||
Interest rate cap agreement(1) | 2016 | $ | 188 | million | $ | 5 | $ | 5 | $ | 188 | million | $ | 109 | $ | 109 | |||||||||||
-1 | Agreements limit the LIBOR floating interest rate base to 4%. | |||||||||||||||||||||||||
Effect of Derivatives Instruments on Combined Statements of Operations and Comprehensive Income | The following table summarizes the effect of derivatives instruments on our income statements and our consolidated statements of comprehensive income for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
Deferred losses from derivatives in OCI, beginning of period | $ | (79 | ) | $ | (182 | ) | $ | (409 | ) | |||||||||||||||||
Loss recognized in OCI from derivative instruments | (65 | ) | (82 | ) | — | |||||||||||||||||||||
Loss reclassified from Accumulated OCI | 10 | 185 | 227 | |||||||||||||||||||||||
Deferred losses from derivatives in OCI, end of period | $ | (134 | ) | $ | (79 | ) | $ | (182 | ) |
EquityBased_Compensation_Table
Equity-Based Compensation (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Summary of Activity with Respect to Stock Options | The following table summarizes the status of and changes in our stock option grants during the year ended December 31, 2014: | ||||||||
Number of | Weighted | Weighted | |||||||
Shares | Average | Average | |||||||
Exercise Price | Remaining Contractual Term in Years | ||||||||
Outstanding at December 31, 2013 | 1,231,540 | $ | 15.01 | ||||||
Granted | 206,400 | 49.39 | |||||||
Exercised | (389,264 | ) | 14.29 | ||||||
Forfeited | (65,622 | ) | 16.46 | ||||||
Outstanding at December 31, 2014 | 983,054 | 22.42 | 7.78 | ||||||
Exercisable at December 31, 2014 | 273,752 | $ | 15.25 | 7.09 | |||||
Summary of Restricted Stock Award Activity | The following table summarizes the status of and changes in our unvested restricted stock awards during the year ended December 31, 2014: | ||||||||
Number of Shares | Grant Date Weighted | ||||||||
Average Fair Value | |||||||||
Unvested, December 31, 2013 | 228,403 | $ | 20.95 | ||||||
Granted | 204,786 | 31.31 | |||||||
Vested | (51,866 | ) | 20.62 | ||||||
Forfeited | (573 | ) | 35.26 | ||||||
Unvested, December 31, 2014 | 380,750 | $ | 26.55 | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Schedule of Future Minimum Annual Commitments | Future Minimum Annual Commitments at December 31, 2014: | |||||||
Year ending December 31, | Operating Leases | Minimum Purchase Commitments | ||||||
2015 | $ | 32,178 | $ | 30,635 | ||||
2016 | 29,895 | 22,373 | ||||||
2017 | 27,496 | 17,012 | ||||||
2018 | 26,001 | 12,895 | ||||||
2019 | 19,312 | 6,601 | ||||||
Thereafter | 38,522 | 16,000 | ||||||
Total future lease commitments | $ | 173,404 | $ | 105,516 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Summary of Income Tax (Expense) Benefit | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current: | ||||||||||||
Federal | $ | (34,790 | ) | $ | (20,819 | ) | $ | (22,165 | ) | |||
State | (4,835 | ) | (1,831 | ) | (6,237 | ) | ||||||
(39,625 | ) | (22,650 | ) | (28,402 | ) | |||||||
Deferred: | ||||||||||||
Federal | (308 | ) | 1,453 | (3,645 | ) | |||||||
State | 2,750 | 436 | 1,396 | |||||||||
2,442 | 1,889 | (2,249 | ) | |||||||||
Income tax expense | $ | (37,183 | ) | $ | (20,761 | ) | $ | (30,651 | ) | |||
Summary of Tax Effects on Deferred Tax Assets and Liabilities | ||||||||||||
At December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Gross deferred tax assets: | ||||||||||||
State tax credits and net operating loss carry forward | $ | 25,042 | $ | 1,007 | ||||||||
Pension and post-retirement benefit costs | 24,788 | 15,579 | ||||||||||
Alternative minimum tax credit carry forward | 18,819 | 22,528 | ||||||||||
Property, plant and equipment | 6,580 | 6,109 | ||||||||||
Accrued expenses | 8,237 | 3,818 | ||||||||||
Inventories | 5,366 | 5,863 | ||||||||||
Third-party products liability | 636 | 674 | ||||||||||
Stock-based compensation expense | 3,019 | 1,306 | ||||||||||
Other | 8,457 | 5,502 | ||||||||||
Total deferred tax assets | $ | 100,944 | $ | 62,386 | ||||||||
Gross deferred tax liabilities: | ||||||||||||
Land and mineral property basis difference | $ | (65,217 | ) | $ | (61,366 | ) | ||||||
Fixed assets and depreciation | (53,383 | ) | (47,016 | ) | ||||||||
Intangible assets | (8,587 | ) | (6,788 | ) | ||||||||
Other | (1,211 | ) | (797 | ) | ||||||||
Total deferred tax liabilities | (128,398 | ) | (115,967 | ) | ||||||||
Net deferred tax liabilities | (27,454 | ) | (53,581 | ) | ||||||||
Less: Net current deferred tax assets | 22,295 | 17,737 | ||||||||||
Net long-term deferred tax liabilities | $ | (49,749 | ) | $ | (71,318 | ) | ||||||
Summary of Effective Income Tax Rate on Pretax Earnings | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Expense) benefit computed at U.S. federal statutory rate | (35.0 | )% | (35.0 | )% | (35.0 | )% | ||||||
Decrease (increase) resulting from: | ||||||||||||
Statutory depletion | 9.8 | 11 | 9.9 | |||||||||
Prior year tax return reconciliation | 0.6 | 1.9 | (0.5 | ) | ||||||||
State income taxes, net of federal benefit | (2.1 | ) | (2.4 | ) | (2.7 | ) | ||||||
Domestic production deduction | 2.5 | 2.4 | 0.7 | |||||||||
Equity-based compensation | — | — | (0.1 | ) | ||||||||
Other, net | 0.8 | 0.5 | (0.2 | ) | ||||||||
Income tax (expense) benefit | (23.4 | )% | (21.6 | )% | (27.9 | )% |
Pension_and_PostRetirement_Ben1
Pension and Post-Retirement Benefits (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||
Summarizes Information about Pension and Post-Retirement Benefit Plans | Net pension benefit cost consisted of the following for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Service cost—benefits earned during the period | $ | 1,080 | $ | 1,280 | $ | 1,118 | ||||||||||||||||||
Interest cost | 4,811 | 4,198 | 4,734 | |||||||||||||||||||||
Expected return on plan assets | (5,146 | ) | (5,061 | ) | (5,381 | ) | ||||||||||||||||||
Net amortization and deferral | 1,037 | 1,904 | 1,105 | |||||||||||||||||||||
Net pension benefit costs | $ | 1,782 | $ | 2,321 | $ | 1,576 | ||||||||||||||||||
Net post-retirement cost consisted of the following for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Service cost—benefits earned during the period | $ | 151 | $ | 193 | $ | 197 | ||||||||||||||||||
Interest cost | 1,030 | 947 | 1,163 | |||||||||||||||||||||
Expected return on plan assets | (4 | ) | (4 | ) | (4 | ) | ||||||||||||||||||
Net amortization and deferral | — | 87 | 177 | |||||||||||||||||||||
Net post-retirement costs | $ | 1,177 | $ | 1,223 | $ | 1,533 | ||||||||||||||||||
Changes in Benefit Obligations and Plan Assets | The changes in benefit obligations and plan assets, as well as the funded status of our pension and post-retirement plans at December 31, 2014 and 2013 are as follows: | |||||||||||||||||||||||
Pension Benefits | Post-retirement Benefits | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Benefit obligation at January 1, | $ | 99,828 | $ | 107,619 | $ | 22,261 | $ | 25,717 | ||||||||||||||||
Service cost | 1,080 | 1,280 | 151 | 193 | ||||||||||||||||||||
Interest cost | 4,811 | 4,198 | 1,030 | 947 | ||||||||||||||||||||
Actuarial gain (loss) | 22,163 | (8,071 | ) | 5,340 | (3,933 | ) | ||||||||||||||||||
Benefits paid | (6,017 | ) | (5,749 | ) | (996 | ) | (1,102 | ) | ||||||||||||||||
Amendments | 471 | 551 | — | — | ||||||||||||||||||||
Other | — | — | 503 | 439 | ||||||||||||||||||||
Benefit obligation at December 31, | $ | 122,336 | $ | 99,828 | $ | 28,289 | $ | 22,261 | ||||||||||||||||
Fair value of plan assets at January 1, | $ | 85,367 | $ | 80,850 | $ | 51 | $ | 54 | ||||||||||||||||
Actual return on plan assets | 6,937 | 7,986 | 3 | 8 | ||||||||||||||||||||
Employer contributions | 4,610 | 2,280 | 492 | 652 | ||||||||||||||||||||
Benefits paid | (6,017 | ) | (5,749 | ) | (996 | ) | (1,102 | ) | ||||||||||||||||
Other | — | — | 469 | 439 | ||||||||||||||||||||
Fair value of plan assets at December 31, | $ | 90,897 | $ | 85,367 | $ | 19 | $ | 51 | ||||||||||||||||
Plan assets less than benefit obligations at December 31 recognized as liability for pension and other post-retirement benefits | $ | (31,439 | ) | $ | (14,461 | ) | $ | (28,270 | ) | $ | (22,210 | ) | ||||||||||||
Estimated Future Pension and Post-Retirement Benefit Payments | Future estimated annual benefit payments for pension and post-retirement benefit obligations at December 31, 2014 are as follows: | |||||||||||||||||||||||
Benefits | ||||||||||||||||||||||||
Post-retirement | ||||||||||||||||||||||||
Pension | Before | After | ||||||||||||||||||||||
Medicare | Medicare | |||||||||||||||||||||||
Subsidy | Subsidy | |||||||||||||||||||||||
2015 | $ | 6,569 | $ | 1,587 | $ | 1,426 | ||||||||||||||||||
2016 | 6,756 | 1,640 | 1,472 | |||||||||||||||||||||
2017 | 7,048 | 1,716 | 1,540 | |||||||||||||||||||||
2018 | 7,187 | 1,710 | 1,527 | |||||||||||||||||||||
2019 | 7,370 | 1,747 | 1,557 | |||||||||||||||||||||
2020-2024 | 38,348 | 9,545 | 8,522 | |||||||||||||||||||||
Amounts in Accumulated Other Comprehensive Income Expected to be Recognized as Components of Net Periodic Benefit Cost | The amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost during the year ended December 31, 2015 are as follows: | |||||||||||||||||||||||
Benefits | ||||||||||||||||||||||||
Pension | Post-retirement | Total | ||||||||||||||||||||||
Net actuarial loss | $ | 2,310 | $ | 392 | $ | 2,702 | ||||||||||||||||||
Prior service cost | 274 | — | 274 | |||||||||||||||||||||
$ | 2,584 | $ | 392 | $ | 2,976 | |||||||||||||||||||
Company's Obligations Determined under Weighted-Average Assumptions | The following weighted-average assumptions were used to determine our obligations under the plans: | |||||||||||||||||||||||
Pension Benefits | Post-retirement Benefits | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Discount rate | 4.1 | % | 4.8 | % | 4.1 | % | 4.8 | % | ||||||||||||||||
Long-term rate of compensation increase | 3.5 | % | 3.5 | % | N/A | N/A | ||||||||||||||||||
Long-term rate of return on plan assets | 7 | % | 7.5 | % | 7 | % | 7.5 | % | ||||||||||||||||
Health care cost trend rate: | ||||||||||||||||||||||||
Pre-65 initial rate/ultimate rate | N/A | N/A | 7.5%/5.0% | 8.0%/5.0% | ||||||||||||||||||||
Pre-65 ultimate year | N/A | N/A | — | — | ||||||||||||||||||||
Post-65 initial rate/ultimate rate | N/A | N/A | 7.0%/5.0% | 7.3%/5.0% | ||||||||||||||||||||
Post-65 ultimate year | N/A | N/A | 2022 | 2021 | ||||||||||||||||||||
Schedule of Mortality Tables Used | Mortality table used for pension benefits and post-retirement benefits plans are the following: | |||||||||||||||||||||||
Pension Benefits and Post-retirement Benefits | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Healthy lives | RP-2014 Employee and Healthy Annuitant Mortality Table with generational mortality improvements using Scale MP-2014 | 2014 IRS Static Mortality Table for Annuitants and Non-Annuitants per §1.430(h)(3)-1(e) | ||||||||||||||||||||||
Disabled lives | RP-2014 Disabled Retiree Mortality Table with generational mortality improvements using Scale MP-2014 | RP-2000 Disabled Retiree Mortality Table | ||||||||||||||||||||||
Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects: | |||||||||||||||||||||||
One-Percentage-Point | ||||||||||||||||||||||||
Increase | Decrease | |||||||||||||||||||||||
Effect on total of service and interest cost | $ | 136 | $ | (115 | ) | |||||||||||||||||||
Effect on post-retirement benefit obligation | 3,879 | (3,217 | ) | |||||||||||||||||||||
Fair Value of Pension Plan Assets | The major investment categories and their relative percentage of the fair value of total plan assets as invested at December 31, 2014, and 2013 are as follows: | |||||||||||||||||||||||
Pension Benefits | Post-retirement Benefits | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Equity securities | 57.4 | % | 57.4 | % | 45.3 | % | 59 | % | ||||||||||||||||
Debt securities | 40.5 | % | 36.6 | % | 30.1 | % | 29.5 | % | ||||||||||||||||
Cash | 2.1 | % | 6 | % | 24.6 | % | 11.5 | % | ||||||||||||||||
Fair Value of Pension Plan Assets, by Asset Category | The fair values of the pension plan assets at December 31, 2014, by asset category, are as follows: | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Cash and cash equivalents | $ | 1,897 | $ | — | $ | — | $ | 1,897 | ||||||||||||||||
Mutual funds: | ||||||||||||||||||||||||
Diversified emerging markets | 8,136 | — | — | 8,136 | ||||||||||||||||||||
Foreign large blend | 13,216 | — | — | 13,216 | ||||||||||||||||||||
Large-cap blend | 19,662 | — | — | 19,662 | ||||||||||||||||||||
Long-term bonds | 36,782 | — | — | 36,782 | ||||||||||||||||||||
Mid-cap blend | 6,293 | — | — | 6,293 | ||||||||||||||||||||
Real estate | 4,844 | — | — | 4,844 | ||||||||||||||||||||
Insurance policies | — | — | 65 | 65 | ||||||||||||||||||||
Net asset | $ | 90,832 | $ | — | $ | 65 | $ | 90,897 | ||||||||||||||||
The fair values of the pension plan assets at December 31, 2013, by asset category, are as follows: | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Cash and cash equivalents | $ | 5,067 | $ | — | $ | — | $ | 5,067 | ||||||||||||||||
Mutual funds: | ||||||||||||||||||||||||
Diversified emerging markets | 7,753 | — | — | 7,753 | ||||||||||||||||||||
Foreign large blend | 13,851 | — | — | 13,851 | ||||||||||||||||||||
Large-cap blend | 17,804 | — | — | 17,804 | ||||||||||||||||||||
Long-term bonds | 31,230 | — | — | 31,230 | ||||||||||||||||||||
Mid-cap blend | 5,807 | — | — | 5,807 | ||||||||||||||||||||
Real estate | 3,776 | — | — | 3,776 | ||||||||||||||||||||
Insurance policies | — | — | 79 | 79 | ||||||||||||||||||||
Net asset | $ | 85,288 | $ | — | $ | 79 | $ | 85,367 | ||||||||||||||||
Summary of Multiemployer Pension Plan | A summary of each multiemployer pension plan for which we participate is presented below: | |||||||||||||||||||||||
Pension | EIN/ Pension | Pension Protection Act | FIP/RP Status | Company | Surcharge | Expiration | ||||||||||||||||||
Fund | Plan No. | Zone Status(1) | Pending/ | Contributions | Imposed | Date of | ||||||||||||||||||
2014 | 2013 | Implemented | 2014 | 2013 | 2012 | CBA | ||||||||||||||||||
LIUNA | 52-6074345/001 | Red | Red | Yes | $ | 149 | $ | 124 | $ | 123 | Yes | 5/31/17 | ||||||||||||
IUOE | 36-6052390/001 | Green | Green | No | 28 | 22 | 19 | No | 7/31/15 | |||||||||||||||
CSSS(2) | 36-6044243/001 | Red | Red | Yes | 51 | 51 | 51 | NA | NA | |||||||||||||||
-1 | The Pension Protection Act of 2006 defines the zone status as follows: green—healthy, yellow—endangered, orange—seriously endangered and red—critical. | |||||||||||||||||||||||
-2 | In 2011, we withdrew from the Central States, Southeast and Southwest Areas Pension Plan. The withdrawal liability of $1.0 million will be paid in monthly installments of $4 until 2031. |
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Presentation of Sales and Segment Contribution Margin for Reporting Segments and Other Operating Results | The following table presents sales and segment contribution margin for the reporting segments and other operating results not allocated to the reported segments for the years ended December 31, 2014, 2013 and 2012: | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Sales: | ||||||||||||
Oil & Gas Proppants | $ | 662,770 | $ | 347,439 | $ | 243,765 | ||||||
Industrial & Specialty Products | 213,971 | 198,546 | 198,156 | |||||||||
Total sales | 876,741 | 545,985 | 441,921 | |||||||||
Segment contribution margin: | ||||||||||||
Oil & Gas Proppants | 256,137 | 145,916 | 140,070 | |||||||||
Industrial & Specialty Products | 61,102 | 56,983 | 53,601 | |||||||||
Total segment contribution margin | 317,239 | 202,899 | 193,671 | |||||||||
Operating activities excluded from segment cost of goods sold | (7,082 | ) | (5,481 | ) | (8,285 | ) | ||||||
Selling, general and administrative | (88,971 | ) | (49,759 | ) | (41,299 | ) | ||||||
Depreciation, depletion and amortization | (45,019 | ) | (36,418 | ) | (25,099 | ) | ||||||
Interest expense | (18,202 | ) | (15,341 | ) | (13,795 | ) | ||||||
Early extinguishment of debt | — | (480 | ) | — | ||||||||
Other income, net, including interest income | 758 | 597 | 4,612 | |||||||||
Income before income taxes | $ | 158,723 | $ | 96,017 | $ | 109,805 | ||||||
Unaudited_Supplementary_Data_T
Unaudited Supplementary Data (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Unaudited Quarterly Information | The following table sets forth our unaudited quarterly consolidated statements of operations for each of the last four quarters in the years ended December 31, 2014 and 2013. This unaudited quarterly information has been prepared on the same basis as our annual audited financial statements and includes all adjustments, consisting only of normal recurring adjustments that are necessary to present fairly the financial information for the fiscal quarters presented. | |||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
2014 | (Unaudited) | |||||||||||||||
Sales | $ | 180,095 | $ | 205,801 | $ | 241,256 | $ | 249,589 | ||||||||
Costs of goods sold | 126,770 | 132,417 | 149,697 | 157,700 | ||||||||||||
Operating expenses | — | |||||||||||||||
Selling, general and administrative | 15,445 | 19,267 | 18,600 | 35,659 | ||||||||||||
Depreciation, depletion and amortization | 9,589 | 10,341 | 12,425 | 12,664 | ||||||||||||
25,034 | 29,608 | 31,025 | 48,323 | |||||||||||||
Operating income | 28,291 | 43,776 | 60,534 | 43,566 | ||||||||||||
Other (expense) income | ||||||||||||||||
Interest expense | (3,808 | ) | (4,013 | ) | (4,950 | ) | (5,431 | ) | ||||||||
Other income, net, including interest income | 38 | 221 | 120 | 379 | ||||||||||||
(3,770 | ) | (3,792 | ) | (4,830 | ) | (5,052 | ) | |||||||||
Income before income taxes | 24,521 | 39,984 | 55,704 | 38,514 | ||||||||||||
Income tax expense | (6,150 | ) | (11,330 | ) | (14,427 | ) | (5,276 | ) | ||||||||
Net income | $ | 18,371 | $ | 28,654 | $ | 41,277 | $ | 33,238 | ||||||||
Earnings per share, basic | $ | 0.34 | $ | 0.53 | $ | 0.77 | $ | 0.62 | ||||||||
Earnings per share, diluted | $ | 0.34 | $ | 0.53 | $ | 0.76 | $ | 0.61 | ||||||||
Weighted average common shares outstanding (in thousands), basic | 53,505 | 53,733 | 53,801 | 53,838 | ||||||||||||
Weighted average common shares outstanding (in thousands), diluted | 54,054 | 54,262 | 54,393 | 54,340 | ||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
2013 | (Unaudited) | |||||||||||||||
Sales | $ | 122,311 | $ | 129,828 | $ | 144,372 | $ | 149,474 | ||||||||
Costs of goods sold | 74,412 | 80,297 | 90,983 | 102,875 | ||||||||||||
Operating expenses | ||||||||||||||||
Selling, general and administrative | 12,404 | 10,099 | 12,800 | 14,456 | ||||||||||||
Depreciation, depletion and amortization | 8,278 | 8,890 | 9,152 | 10,098 | ||||||||||||
20,682 | 18,989 | 21,952 | 24,554 | |||||||||||||
Operating income | 27,217 | 30,542 | 31,437 | 22,045 | ||||||||||||
Other (expense) income | ||||||||||||||||
Interest expense | (3,576 | ) | (3,535 | ) | (4,144 | ) | (4,086 | ) | ||||||||
Early extinguishment of debt | — | — | (480 | ) | — | |||||||||||
Other income, net, including interest income | 122 | 63 | 260 | 152 | ||||||||||||
(3,454 | ) | (3,472 | ) | (4,364 | ) | (3,934 | ) | |||||||||
Income before income taxes | 23,763 | 27,070 | 27,073 | 18,111 | ||||||||||||
Income tax (expense) benefit | (6,486 | ) | (6,878 | ) | (5,739 | ) | (1,658 | ) | ||||||||
Net income | $ | 17,277 | $ | 20,192 | $ | 21,334 | $ | 16,453 | ||||||||
Earnings per share, basic | $ | 0.33 | $ | 0.38 | $ | 0.4 | $ | 0.31 | ||||||||
Earnings per share, diluted | $ | 0.32 | $ | 0.38 | $ | 0.4 | $ | 0.31 | ||||||||
Weighted average common shares outstanding (in thousands), basic | 52,946 | 52,948 | 53,103 | 53,035 | ||||||||||||
Weighted average common shares outstanding (in thousands), diluted | 52,211 | 53,227 | 53,429 | 53,409 | ||||||||||||
Organization_Detail
Organization - (Detail) (USD $) | 12 Months Ended | 0 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Jan. 31, 2012 | Jul. 31, 2014 |
Segment | |||
Organization And Nature Of Business | |||
Number of business segments | 2 | ||
IPO | |||
Organization And Nature Of Business | |||
Net proceeds | $40.80 | ||
Underwriting discounts and commissions | 3.5 | ||
Offering expenses | 5.7 | ||
Cadre Services, Inc. | |||
Organization And Nature Of Business | |||
Cash payments to acquire business | $98.30 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Customer | |||
Organization And Significant Accounting Policies | |||
Number of customers in the oil & gas proppants segment | 10 | ||
Agreements expiring period | 2014 | ||
Agreements expiring period | 2019 | ||
Standard term invoice | 30 days | ||
Accounts receivable due | 30 days | ||
Number of customers accounted for sales percentage | 10 | ||
Additions and revisions of prior estimates | $2,011,000 | $2,263,000 | |
Percentage of fair value of reporting unit less than carrying amount | 50.00% | ||
Accumulated amortization | 2,500,000 | ||
Estimated annual amortization, 2015 | 496,000 | ||
Estimated annual amortization, 2016 | 496,000 | ||
Estimated annual amortization, 2017 | 496,000 | ||
Estimated annual amortization, 2018 | 496,000 | ||
Estimated annual amortization, 2019 | 496,000 | ||
Amortization in interest expense | 912,000 | 680,000 | 515,000 |
Self-insurance reserve total | 5,700,000 | 5,400,000 | |
Self-insurance reserve current | 1,800,000 | 1,700,000 | |
Percentage of refund from taxing authority | 50.00% | ||
Short-term and fixed income securities with maturities | 12 months or less | ||
Long-term and fixed income securities with maturities | Greater than 12 months | ||
Buildings | |||
Organization And Significant Accounting Policies | |||
Depreciation over the assets estimated useful life | 15 years | ||
Land improvements | |||
Organization And Significant Accounting Policies | |||
Depreciation over the assets estimated useful life | 10 years | ||
Furniture and fixtures | |||
Organization And Significant Accounting Policies | |||
Depreciation over the assets estimated useful life | 8 years | ||
Customer Relationships | |||
Organization And Significant Accounting Policies | |||
Weighted average amortization useful life | 20 years | ||
Gross carrying amount of intangible asset | 9,500,000 | ||
Remaining useful life | 13 years 10 months 24 days | ||
Minimum | |||
Organization And Significant Accounting Policies | |||
Self-insured retentions | 100,000 | ||
Minimum | Machinery and equipment | |||
Organization And Significant Accounting Policies | |||
Depreciation over the assets estimated useful life | 3 years | ||
Maximum | |||
Organization And Significant Accounting Policies | |||
Self-insured retentions | $500,000 | ||
Maximum | Machinery and equipment | |||
Organization And Significant Accounting Policies | |||
Depreciation over the assets estimated useful life | 10 years | ||
Product concentration risk | Sales Revenue, Net | |||
Organization And Significant Accounting Policies | |||
Percentage of sales in which customers accounted | 57.00% | 52.00% | 37.00% |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Equity-Based Compensation (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||||||
Oct. 24, 2014 | Jul. 25, 2014 | Apr. 25, 2014 | Feb. 06, 2014 | Jan. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
payment | payment | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock vesting period | 5 years | |||||||
Weighted average fair value, grants during period (in dollars per share) | $19.37 | $10.03 | $5.68 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||||
Risk-free interest rate | 1.81% | |||||||
Risk-free interest rate - minimum | 1.03% | 1.31% | ||||||
Risk-free interest rate, maximum | 0.83% | 1.05% | ||||||
Expected volatility (percentage) | 45.00% | 45.00% | 45.00% | |||||
Expected term | 6 years 3 months | 6 years 3 months | 6 years 3 months | |||||
Expected divided yield | 1.00% | 0.00% | 0.00% | |||||
Expected forfeiture yield | 0.00% | 0.00% | 0.00% | |||||
Common stock cash dividend declared, per share | $0.13 | $0.13 | $0.13 | $0.13 | $0.50 | $0.50 | $0.38 | $0.50 |
Number of dividend payments (quarterly) | 4 | 3 | ||||||
Common stock, quarterly cash dividend declared, per share | $0.13 | $0.13 | ||||||
Restricted stock and restricted stock units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock vesting period | 3 years | |||||||
Stock option | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock vesting period | 4 years |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Change in Asset Retirement Obligation (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Asset Retirement Obligation | ||
Beginning balance | $9,378 | $6,659 |
Payments | -782 | 0 |
Accretion | 676 | 456 |
Additions and revisions of prior estimates | 2,011 | 2,263 |
Ending balance | $11,283 | $9,378 |
Earnings_Per_Share_Schedule_of
Earnings Per Share - Schedule of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||||||||||
Net income | $33,238 | $41,277 | $28,654 | $18,371 | $16,453 | $21,334 | $20,192 | $17,277 | $121,540 | $75,256 | $79,154 |
Less: net income allocated to outstanding restricted stockholders | -230 | -175 | -105 | ||||||||
Net income allocated to common stockholders | $121,310 | $75,081 | $79,049 | ||||||||
Outstanding | 53,838,000 | 53,801,000 | 53,733,000 | 53,505,000 | 53,035,000 | 53,103,000 | 52,948,000 | 52,946,000 | 53,719 | 53,035 | 52,592 |
Outstanding assuming dilution | 54,296 | 53,409 | 52,641 |
Earnings_Per_Share_Earnings_Pe
Earnings Per Share Earnings Per Share - Antidilutive Securities Excluded from EPS Calculation (Details) (Stock option) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock option | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted-average outstanding stock options excluded | 33 | 175 | 1,070 |
Capital_Structure_and_Accumula2
Capital Structure and Accumulated Comprehensive Income - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | ||||||
Oct. 24, 2014 | Jul. 25, 2014 | Apr. 25, 2014 | Feb. 06, 2014 | Jan. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Equity [Abstract] | ||||||||
Common stock authorized, shares | 500,000,000 | |||||||
Common stock, par value | $0.01 | |||||||
Common stock issued | 53,902,475 | 53,492,278 | ||||||
Common stock, shares outstanding | 53,902,475 | 52,920,704 | ||||||
Quarterly cash dividend declared | $0.13 | $0.13 | $0.13 | $0.13 | $0.50 | $0.50 | $0.38 | $0.50 |
Declaration Date | 24-Oct-14 | 25-Jul-14 | 25-Apr-14 | 6-Feb-14 | 15-Dec-14 | |||
Record Date | 15-Dec-14 | 15-Sep-14 | 13-Jun-14 | 14-Mar-14 | 23-Oct-14 | |||
Payable Date | 5-Jan-15 | 3-Oct-14 | 3-Jul-14 | 1-Apr-14 | ||||
Preferred stock, shares authorized | 10,000,000 | |||||||
Preferred stock, par value | $0.01 | |||||||
Preferred stock issued | 0 | 0 | ||||||
Preferred stock, shares outstanding | 0 | 0 | ||||||
Authorization to repurchase common stock | $50,000,000 | |||||||
Repurchase of common stock (shares) | 118,961 | |||||||
Average price per common share of repurchase common stock (in USD per share) | $13.21 | |||||||
Remaining authorized repurchase of common stock amount | $48,400,000 |
Capital_Structure_and_Accumula3
Capital Structure and Accumulated Comprehensive Income - Changes in Accumulated Other Comprehensive Income (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning Balance | ($4,017) |
Other comprehensive income (loss) before reclassifications | -16,467 |
Amounts reclassed from accumulated other comprehensive income | 666 |
Ending Balance | -19,818 |
Unrealized gain/(loss) on cash flow hedges | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning Balance | -79 |
Other comprehensive income (loss) before reclassifications | -65 |
Amounts reclassed from accumulated other comprehensive income | 10 |
Ending Balance | -134 |
Unrealized gain/(loss) on short-term investments | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning Balance | -27 |
Other comprehensive income (loss) before reclassifications | -14 |
Amounts reclassed from accumulated other comprehensive income | 0 |
Ending Balance | -41 |
Pension and other post- retirement benefits liability | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning Balance | -3,911 |
Other comprehensive income (loss) before reclassifications | -16,388 |
Amounts reclassed from accumulated other comprehensive income | 656 |
Ending Balance | ($19,643) |
Business_Combinations_Addition
Business Combinations - Additional Information (Detail) (USD $) | 0 Months Ended | ||
Jul. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Business Acquisition [Line Items] | |||
Goodwill | $68,647,000 | $68,403,000 | |
Cadre Services, Inc. | |||
Business Acquisition [Line Items] | |||
Cash payments to acquire business | 98,300,000 | ||
Goodwill | 244,000 | ||
Goodwill expected to be deductible for tax purposes | $0 |
Business_Combinations_Summary_
Business Combinations - Summary of Assets Acquired and Liabilities Assumes (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 31, 2014 |
In Thousands, unless otherwise specified | |||
Business Acquisition [Line Items] | |||
Goodwill | $68,647 | $68,403 | |
Cadre Services, Inc. | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 6,898 | ||
Inventory | 2,534 | ||
Other current assets | 174 | ||
Fixed assets (net) | 73,138 | ||
Deferred tax assets (net) | 13,966 | ||
Accounts payable, accrued expenses and other liabilities | -4,389 | ||
Net tangible assets acquired | 92,321 | ||
Customer relationships | 1,274 | ||
Trade name | 4,478 | ||
Goodwill | 244 | ||
Preliminary purchase price, net of cash acquired | $98,317 |
Business_Combinations_Acquired
Business Combinations - Acquired Intangibles (Details) (Cadre Services, Inc., USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Jul. 31, 2014 |
Business Acquisition [Line Items] | |
Customer relationships | 1,274 |
Trade name | 4,478 |
Total intangible assets | 5,752 |
Customer Relationships | |
Business Acquisition [Line Items] | |
Useful life of acquired intangible asset | 15 years |
Business_Combinations_Pro_Form
Business Combinations - Pro Forma Information (Details) (Cadre Services, Inc., USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cadre Services, Inc. | |||
Business Acquisition [Line Items] | |||
Sales | $901,916 | $578,453 | $481,100 |
Net income | $126,960 | $76,942 | $82,782 |
Basic earnings per share (in USD per share) | $2.36 | $1.45 | $1.57 |
Diluted earnings per share (in USD per share) | $2.33 | $1.44 | $1.57 |
Accounts_Receivable_Additional
Accounts Receivable - Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Receivables [Abstract] | |
Net trade receivables increase | $44.20 |
Accounts_Receivable_Schedule_o
Accounts Receivable - Schedule of Accounts Receivable (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ||
Trade receivables | $128,498 | $76,223 |
Less: Allowance for doubtful accounts | -10,429 | -2,376 |
Net trade receivables | 118,069 | 73,847 |
Other receivables | 2,812 | 1,360 |
Total accounts receivable | $120,881 | $75,207 |
Accounts_Receivable_Allowance_
Accounts Receivable - Allowance for Doubtful Accounts (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Balance at January 1, | $2,376 | $1,053 |
Bad debt provision | 10,200 | 1,330 |
Write-offs | -2,147 | -7 |
Balance at December 31, | $10,429 | $2,376 |
Inventories_Schedule_of_Invent
Inventories - Schedule of Inventories (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Supplies | $17,528 | $15,576 |
Raw materials and work in process | 12,562 | 11,728 |
Finished goods | 36,622 | 36,908 |
Total inventories | $66,712 | $64,212 |
Property_Plant_and_Mine_Develo2
Property, Plant and Mine Development - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment interest capitalization | $1,376 | $533 | $934 |
Capital lease obligation | $0 |
Property_Plant_and_Mine_Develo3
Property, Plant and Mine Development - Schedule of Property, Plant and Mine Development (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment | ||
Property, plant and mine development | $722,511 | $555,435 |
Accumulated depletion, depreciation and amortization | -156,756 | -113,319 |
Total property, plant and mine development, net | 565,755 | 442,116 |
Mining property and mine development | ||
Property, Plant and Equipment | ||
Property, plant and mine development | 197,824 | 164,609 |
Asset retirement cost | ||
Property, Plant and Equipment | ||
Property, plant and mine development | 9,559 | 7,275 |
Land | ||
Property, Plant and Equipment | ||
Property, plant and mine development | 28,443 | 25,738 |
Land improvements | ||
Property, Plant and Equipment | ||
Property, plant and mine development | 35,322 | 31,093 |
Buildings | ||
Property, Plant and Equipment | ||
Property, plant and mine development | 47,149 | 36,311 |
Machinery and equipment | ||
Property, Plant and Equipment | ||
Property, plant and mine development | 323,618 | 263,304 |
Furniture and fixtures | ||
Property, Plant and Equipment | ||
Property, plant and mine development | 1,599 | 1,131 |
Construction-in-progress | ||
Property, Plant and Equipment | ||
Property, plant and mine development | $78,997 | $25,974 |
Accrued_Liabilities_Schedule_o
Accrued Liabilities - Schedule of Accrued Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Accrued salaries and wages | $3,144 | $2,411 |
Accrued vacation liability | 2,616 | 2,396 |
Current portion of liability for pension and post-retirement benefits | 1,530 | 1,428 |
Accrued healthcare liability | 1,745 | 1,662 |
Accrued property taxes and sales taxes | 2,737 | 1,421 |
Other accrued liabilities | 6,139 | 1,505 |
Total accrued liabilities | $17,911 | $10,823 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | ||
Jul. 23, 2013 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 05, 2014 | |
Short-term Debt | ||||
Available borrowing base | $425,000,000 | |||
Amount available for general corporate use under this revolving credit agreement | 46,800,000 | |||
Expense associated with refinancing our Term Loan and replacing Revolver | 1,800,000 | |||
Third party fees in selling general, and administrative expenses | 1,300,000 | |||
Expense associated with related to early extinguishment of debt | 500,000 | |||
Facility consolidated total net leverage ratio | 0.03751 | |||
Increase of commitment | 25.00% | |||
Revolving Line-of-Credit | ||||
Short-term Debt | ||||
Available borrowing base | 50,000,000 | 50,000,000 | ||
Amount drawn from borrowing base | 0 | |||
New Revolver expiration Date | 23-Jul-18 | 31-Oct-16 | ||
Revolving Line-of-Credit | Minimum | ||||
Short-term Debt | ||||
Increase of commitment | 35,000,000 | |||
Letter of credit sublimit | 15,000,000 | |||
Revolving Line-of-Credit | Maximum | ||||
Short-term Debt | ||||
Increase of commitment | 50,000,000 | |||
Letter of credit sublimit | 20,000,000 | |||
Swingline loans | ||||
Short-term Debt | ||||
Available borrowing base | 5,000,000 | |||
Letter of Credit | ||||
Short-term Debt | ||||
Available borrowing base | 20,000,000 | |||
Amount allocated for letters of credit | 3,200,000 | |||
Term loan facility | ||||
Short-term Debt | ||||
Available borrowing base | 375,000,000 | 502,000,000 | ||
New Revolver expiration Date | 23-Jul-20 | |||
Increase in borrowing capacity | $135,000,000 |
Debt_Schedule_of_Debt_Detail
Debt - Schedule of Debt (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Line of Credit Facility | ||
Long-term Debt | $502,297 | $371,451 |
Less: current portion | -4,718 | -3,488 |
Total long-term portion of debt | 497,579 | 367,963 |
Senior Secured Credit Facility | Revolver | ||
Line of Credit Facility | ||
Long-term Debt | 0 | 0 |
Senior Secured Credit Facility | Term loan facility | ||
Line of Credit Facility | ||
Long-term Debt | $502,297 | $371,451 |
Debt_Schedule_of_Contractual_M
Debt - Schedule of Contractual Maturities of Debt (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
2015 | $4,718 | |
2016 | 4,722 | |
2017 | 4,725 | |
2018 | 4,729 | |
2019 | 4,733 | |
Thereafter | 478,670 | |
Long-term Debt | $502,297 | $371,451 |
Debt_Schedule_of_Debt_Phantom_
Debt - Schedule of Debt (Phantom) (Detail) (USD $) | 0 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 23, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 |
Revolver | ||||
Line of Credit Facility | ||||
Credit facility, maturity date | 23-Jul-18 | 31-Oct-16 | ||
Term loan facility | ||||
Line of Credit Facility | ||||
Credit facility, maturity date | 23-Jul-20 | |||
Senior Secured Credit Facility | Revolver | ||||
Line of Credit Facility | ||||
Credit facility, maturity date | 23-Jul-18 | 31-Oct-16 | ||
Credit facility, interest rate | 4.75% | 4.75% | ||
Senior Secured Credit Facility | Term loan facility | ||||
Line of Credit Facility | ||||
Credit facility, interest rate | 4.00% | |||
Term loan facility unamortized original issue discount | 2,078 | 1,674 | ||
Senior Secured Credit Facility | Minimum | Term loan facility | ||||
Line of Credit Facility | ||||
Credit facility, maturity date | 23-Jul-20 | |||
Credit facility, interest rate | 4.00% | |||
Senior Secured Credit Facility | Maximum | Term loan facility | ||||
Line of Credit Facility | ||||
Credit facility, interest rate | 5.25% |
Deferred_Revenue_Detail
Deferred Revenue (Detail) (Supply Agreement, USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | Jul. 03, 2014 | Jul. 03, 2014 |
Supply Agreement | ||
Deferred Revenue Arrangement [Line Items] | ||
Advances received from a customer | $100 | |
Deferred revenue, interest rate on unused customer deposits | 0.049 | 0.049 |
Fair_Value_Accounting_Schedule
Fair Value Accounting - Schedule of Measure at Fair Value on Recurring Basis (Detail) (Measured at Fair Value on Recurring Basis, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Defined Benefit Plan Disclosure | ||
Short-term investments | $75,143 | $74,980 |
Interest rate derivatives | 5 | 109 |
Net asset | 75,148 | 75,089 |
Level 1 | ||
Defined Benefit Plan Disclosure | ||
Short-term investments | 666 | 622 |
Interest rate derivatives | 0 | 0 |
Net asset | 666 | 622 |
Level 2 | ||
Defined Benefit Plan Disclosure | ||
Short-term investments | 74,477 | 74,358 |
Interest rate derivatives | 5 | 109 |
Net asset | $74,482 | $74,467 |
ShortTerm_Investments_Schedule
Short-Term Investments - Schedule of Available-for-Sale Short-Term Investments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities | ||
Aggregate Cost | $75,207 | $75,024 |
Gross Unrealized Gains | 11 | 10 |
Gross Unrealized Losses | -75 | -54 |
Fair Value | 75,143 | 74,980 |
Money market mutual funds | ||
Schedule of Available-for-sale Securities | ||
Aggregate Cost | 666 | 622 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 666 | 622 |
Certificates of deposit | ||
Schedule of Available-for-sale Securities | ||
Aggregate Cost | 29,233 | 25,218 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | -23 | -34 |
Fair Value | 29,210 | 25,184 |
Commercial paper | ||
Schedule of Available-for-sale Securities | ||
Aggregate Cost | 10,187 | 15,168 |
Gross Unrealized Gains | 7 | 4 |
Gross Unrealized Losses | -2 | -1 |
Fair Value | 10,192 | 15,171 |
Corporate notes and bonds | ||
Schedule of Available-for-sale Securities | ||
Aggregate Cost | 12,076 | 9,495 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | -29 | -9 |
Fair Value | 12,047 | 9,486 |
Government agencies | ||
Schedule of Available-for-sale Securities | ||
Aggregate Cost | 16,681 | 13,979 |
Gross Unrealized Gains | 4 | 6 |
Gross Unrealized Losses | -17 | 0 |
Fair Value | 16,668 | 13,985 |
U.S. Treasuries | ||
Schedule of Available-for-sale Securities | ||
Aggregate Cost | 2,151 | 4,828 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | -4 | -10 |
Fair Value | 2,147 | 4,818 |
Variable Rate Demand Obligation | ||
Schedule of Available-for-sale Securities | ||
Aggregate Cost | 4,213 | 5,714 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $4,213 | $5,714 |
Derivative_Instruments_Additio
Derivative Instruments - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Upper limit of LIBOR for one-month | 4.00% | |
Ineffective portion of derivative contracts | $0 | $0 |
Derivative_Instruments_Estimat
Derivative Instruments - Estimated Fair Values of Derivative Instruments (Detail) (Interest Rate Cap Agreement, USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Interest Rate Cap Agreement | ||
Derivative Instruments, Gain (Loss) | ||
Maturity Date | 2016 | |
Contract/Notional Amount | $188,000,000 | $188,000,000 |
Carrying Amount | 5,000 | 109,000 |
Fair Value | $5,000 | $109,000 |
Derivative_Instruments_Effect_
Derivative Instruments - Effect of Derivatives Instruments on Combined Statements of Operations and Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Deferred losses from derivatives in OCI, beginning of period | ($79) | ($182) | ($409) |
Loss recognized in OCI from derivative instruments | -65 | -82 | 0 |
Loss reclassified from Accumulated OCI | 10 | 185 | 227 |
Deferred losses from derivatives in OCI, end of period | ($134) | ($79) | ($182) |
EquityBased_Compensation_Addit
Equity-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Option Indexed to Issuer's Equity | |||
Stock vesting period | 5 years | ||
Intrinsic value of stock options exercised | $10,900,000 | $5,900,000 | $100,000 |
Cash received from options exercised | 5,563,000 | 7,942,000 | 0 |
Actual tax benefit realized for the tax deductions from option exercises | 4,200,000 | 2,300,000 | 20,000 |
Unrecognized compensation expense related to stock options | 5,900,000 | ||
Stock option | |||
Option Indexed to Issuer's Equity | |||
Stock vesting period | 4 years | ||
Recognized compensation expense | 1,900,000 | 2,000,000 | 2,200,000 |
Recognized weighted-average period | 3 years 1 month 6 days | ||
Restricted Stock | |||
Option Indexed to Issuer's Equity | |||
Number of share vested during period | 51,866 | ||
Recognized compensation expense | 5,500,000 | 1,000,000 | 100,000 |
Recognized weighted-average period | 1 year 8 months 12 days | ||
Total unrecognized compensation expense | 7,000,000 | ||
Class C Units | |||
Option Indexed to Issuer's Equity | |||
Number of shares vested, accelerated | 210,333 | ||
Number of share vested during period | 420,667 | ||
Recognized compensation expense | $91,000 | $109,000 | |
2011 Incentive Compensation Plan | |||
Option Indexed to Issuer's Equity | |||
Common Stock, Capital Shares Reserved for Future Issuance | 5,740,961 |
EquityBased_Compensation_Summa
Equity-Based Compensation - Summary of Activity with Respect to Stock Options (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Number of Shares | |
Outstanding at December 31, 2013 (shares) | 1,231,540 |
Granted (shares) | 206,400 |
Exercised (shares) | -389,264 |
Forfeited (shares) | -65,622 |
Outstanding at December 31, 2014 (shares) | 983,054 |
Exercisable at December 31, 2014 (shares) | 273,752 |
Weighted Average Exercise Price | |
Outstanding at December 31, 2013 (in dollars per share) | $15.01 |
Granted (in dollars per share) | $49.39 |
Exercised (in dollars per share) | $14.29 |
Forfeited (in dollars per share) | $16.46 |
Outstanding at December 31, 2014 (in dollars per share) | $22.42 |
Exercisable at December 31, 2014 (in dollars per share) | $15.25 |
Weighted Average Remaining Contractual Term in Years | |
Outstanding at December 31, 2014 (years) | 7 years 9 months 11 days |
Exercisable at December 31, 2014 (years) | 7 years 1 month 2 days |
EquityBased_Compensation_Restr
Equity-Based Compensation - Restricted Stock Activity (Details) (Restricted Stock, USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Unvested, December 31, 2013 (shares) | 228,403 |
Granted (shares) | 204,786 |
Vested (shares) | -51,866 |
Forfeited (shares) | -573 |
Unvested, December 31, 2014 (shares) | 380,750 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Unvested, December 31, 2013 (in dollars per share) | $20.95 |
Granted (in dollars per share) | $31.31 |
Vested (in dollars per share) | $20.62 |
Forfeited (in dollars per share) | $35.26 |
Unvested, December 31, 2014 (in dollars per share) | $26.55 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
claim | claim | claim | ||
Insurance [Abstract] | ||||
Expense related to operating leases and rental agreements | $32,600,000 | $16,300,000 | $11,900,000 | |
New claims filed | 1 | 3 | 2 | |
Products liability claims outstanding | 86 | |||
Underlying insurance policies receivable | 5,100,000 | |||
Third-party products claims liability under insurance in other assets | 313,000 | 311,000 | 313,000 | |
Third-party products claims liability under insurance in other long-term obligations | 1,600,000 | 1,600,000 | 1,600,000 | |
Gain (loss) from pre-tax adjustments | ($200,000) | ($500,000) | $3,400,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Contractual Obligations (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Operating Lease: | |
2015 | $32,178 |
2016 | 29,895 |
2017 | 27,496 |
2018 | 26,001 |
2019 | 19,312 |
Thereafter | 38,522 |
Total future lease commitments | 173,404 |
Minimum Purchase Commitments: | |
2015 | 30,635 |
2016 | 22,373 |
2017 | 17,012 |
2018 | 12,895 |
2019 | 6,601 |
Thereafter | 16,000 |
Total minimum purchase commitments | $105,516 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Alternative minimum tax credit carry forward | $18,800,000 | $22,500,000 | |
Unrecognized tax benefits | 0 | 0 | |
Excess tax benefit | $3,813,000 | $1,380,000 | $0 |
Income_Taxes_Summary_of_Income
Income Taxes - Summary of Income Tax (Expense) Benefit (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||||||||||
Federal | ($34,790) | ($20,819) | ($22,165) | ||||||||
State | -4,835 | -1,831 | -6,237 | ||||||||
Current income tax total | -39,625 | -22,650 | -28,402 | ||||||||
Deferred: | |||||||||||
Federal | -308 | 1,453 | -3,645 | ||||||||
State | 2,750 | 436 | 1,396 | ||||||||
Deferred income tax total | 2,442 | 1,889 | -2,249 | ||||||||
Income tax expense | ($5,276) | ($14,427) | ($11,330) | ($6,150) | ($1,658) | ($5,739) | ($6,878) | ($6,486) | ($37,183) | ($20,761) | ($30,651) |
Income_Taxes_Summary_of_Tax_Ef
Income Taxes - Summary of Tax Effects on Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Gross deferred tax assets: | ||
State tax credits and net operating loss carry forward | $25,042 | $1,007 |
Pension and post-retirement benefit costs | 24,788 | 15,579 |
Alternative minimum tax credit carry forward | 18,819 | 22,528 |
Property, plant and equipment | 6,580 | 6,109 |
Accrued expenses | 8,237 | 3,818 |
Inventories | 5,366 | 5,863 |
Third-party products liability | 636 | 674 |
Stock-based compensation expense | 3,019 | 1,306 |
Other | 8,457 | 5,502 |
Total deferred tax assets | 100,944 | 62,386 |
Gross deferred tax liabilities: | ||
Land and mineral property basis difference | -65,217 | -61,366 |
Fixed assets and depreciation | -53,383 | -47,016 |
Intangible assets | -8,587 | -6,788 |
Other | -1,211 | -797 |
Total deferred tax liabilities | -128,398 | -115,967 |
Net deferred tax liabilities | -27,454 | -53,581 |
Deferred income taxes, net | 22,295 | 17,737 |
Net long-term deferred tax liabilities | ($49,749) | ($71,318) |
Income_Taxes_Operating_Loss_Ca
Income Taxes - Operating Loss Carryforwards (Details) (Cadre Services, Inc., IRS, USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Cadre Services, Inc. | IRS | |
Operating Loss Carryforwards [Line Items] | |
Federal net operating loss carryforwards | $69 |
Income_Taxes_Summary_of_Effect
Income Taxes - Summary of Effective Income Tax Rate on Pretax Earnings (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
(Expense) benefit computed at U.S. federal statutory rate | -35.00% | -35.00% | -35.00% |
Decrease (increase) resulting from: | |||
Statutory depletion | 9.80% | 11.00% | 9.90% |
Prior year tax return reconciliation | 0.60% | 1.90% | -0.50% |
State income taxes, net of federal benefit | -2.10% | -2.40% | -2.70% |
Domestic production deduction | 2.50% | 2.40% | 0.70% |
Equity-based compensation | 0.00% | 0.00% | -0.10% |
Other, net | 0.80% | 0.50% | -0.20% |
Income tax (expense) benefit | -23.40% | -21.60% | -27.90% |
Pension_and_PostRetirement_Ben2
Pension and Post-Retirement Benefits - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure | |||
Projected benefit obligation, nonqualified pension plan | $1.70 | $1.60 | |
Accumulated benefit obligation of plan assets, nonqualified pension plan | 1.7 | 1.6 | |
Fair value of plan assets, nonqualified pension plan | 0 | 0 | |
Total amounts in accumulated other comprehensive income related to net actuarial gain (loss), net of tax | 17.7 | 2.3 | |
Total amounts in accumulated other comprehensive income related to prior service cost, net of tax | 1.6 | 1.4 | |
Discount rate reflects the expected long-term rates of return | 0.05% | ||
Percentage of contributions to individual multiemployer pension funds | 5.00% | ||
Company contribution over defined benefit plan | 4.00% | ||
Company contributing percentage on defined benefit plan | 25.00% | ||
Employee contribution over defined benefit plan | 8.00% | ||
Company contributions to defined contribution plan | 2.1 | 1.7 | 1.4 |
Pension Benefits | |||
Defined Benefit Plan Disclosure | |||
Accumulated benefit obligation | 122 | 99.4 | |
Expected contributions to the plans for the 2015 fiscal year | 2.8 | ||
Post-retirement Benefits | |||
Defined Benefit Plan Disclosure | |||
Expected contributions to the plans for the 2015 fiscal year | $1.40 | ||
Certain Employees | |||
Defined Benefit Plan Disclosure | |||
Employee contribution over defined benefit plan | 8.00% | ||
Company contribution on profit sharing match | 75.00% | ||
Other Employees | |||
Defined Benefit Plan Disclosure | |||
Company contribution on profit sharing match | 25.00% |
Pension_and_PostRetirement_Ben3
Pension and Post-Retirement Benefits - Summarizes Information about Pension and Post-Retirement Benefit Plans (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Benefits | |||
Pension Plans, Postretirement and Other Employee Benefits | |||
Service cost—benefits earned during the period | $1,080 | $1,280 | $1,118 |
Interest cost | 4,811 | 4,198 | 4,734 |
Expected return on plan assets | -5,146 | -5,061 | -5,381 |
Net amortization and deferral | 1,037 | 1,904 | 1,105 |
Net pension benefit or post-retirement costs | 1,782 | 2,321 | 1,576 |
Post-retirement Benefits | |||
Pension Plans, Postretirement and Other Employee Benefits | |||
Service cost—benefits earned during the period | 151 | 193 | 197 |
Interest cost | 1,030 | 947 | 1,163 |
Expected return on plan assets | -4 | -4 | -4 |
Net amortization and deferral | 0 | 87 | 177 |
Net pension benefit or post-retirement costs | $1,177 | $1,223 | $1,533 |
Pension_and_PostRetirement_Ben4
Pension and Post-Retirement Benefits - Changes in Benefit Obligations and Plan Assets (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation, beginning balance | $99,828 | $107,619 | |
Service cost | 1,080 | 1,280 | 1,118 |
Interest cost | 4,811 | 4,198 | 4,734 |
Actuarial gain (loss) | 22,163 | -8,071 | |
Benefits paid | -6,017 | -5,749 | |
Amendments | 471 | 551 | |
Other | 0 | 0 | |
Benefit obligation, ending balance | 122,336 | 99,828 | 107,619 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets, beginning balance | 85,367 | 80,850 | |
Actual return on plan assets | 6,937 | 7,986 | |
Employer contributions | 4,610 | 2,280 | |
Benefits paid | -6,017 | -5,749 | |
Other | 0 | 0 | |
Fair value of plan assets, ending balance | 90,897 | 85,367 | 80,850 |
Plan assets less than benefit obligations at December 31 recognized as liability for pension and other post-retirement benefits | -31,439 | -14,461 | |
Post-retirement Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation, beginning balance | 22,261 | 25,717 | |
Service cost | 151 | 193 | 197 |
Interest cost | 1,030 | 947 | 1,163 |
Actuarial gain (loss) | 5,340 | -3,933 | |
Benefits paid | -996 | -1,102 | |
Amendments | 0 | 0 | |
Other | 503 | 439 | |
Benefit obligation, ending balance | 28,289 | 22,261 | 25,717 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets, beginning balance | 51 | 54 | |
Actual return on plan assets | 3 | 8 | |
Employer contributions | 492 | 652 | |
Benefits paid | -996 | -1,102 | |
Other | 469 | 439 | |
Fair value of plan assets, ending balance | 19 | 51 | 54 |
Plan assets less than benefit obligations at December 31 recognized as liability for pension and other post-retirement benefits | ($28,270) | ($22,210) |
Pension_and_PostRetirement_Ben5
Pension and Post-Retirement Benefits - Estimated Future Pension and Post-Retirement Benefit Payments (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Pension Benefits | |
Pension Plans, Postretirement and Other Employee Benefits | |
2015 | $6,569 |
2016 | 6,756 |
2017 | 7,048 |
2018 | 7,187 |
2019 | 7,370 |
2020-2024 | 38,348 |
Post-retirement Benefits | Before Medicare Subsidy | |
Pension Plans, Postretirement and Other Employee Benefits | |
2015 | 1,587 |
2016 | 1,640 |
2017 | 1,716 |
2018 | 1,710 |
2019 | 1,747 |
2020-2024 | 9,545 |
Post-retirement Benefits | After Medicare Subsidy | |
Pension Plans, Postretirement and Other Employee Benefits | |
2015 | 1,426 |
2016 | 1,472 |
2017 | 1,540 |
2018 | 1,527 |
2019 | 1,557 |
2020-2024 | $8,522 |
Pension_and_PostRetirement_Ben6
Pension and Post-Retirement Benefits - Amounts in Accumulated Other Comprehensive Income Expected to be Recognized as Components of Net Periodic Benefit Cost (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Pension Plans, Postretirement and Other Employee Benefits | |
Net actuarial loss | $2,702 |
Prior service cost | 274 |
Total | 2,976 |
Pension Benefits | |
Pension Plans, Postretirement and Other Employee Benefits | |
Net actuarial loss | 2,310 |
Prior service cost | 274 |
Total | 2,584 |
Post-retirement Benefits | |
Pension Plans, Postretirement and Other Employee Benefits | |
Net actuarial loss | 392 |
Prior service cost | 0 |
Total | $392 |
Pension_and_PostRetirement_Ben7
Pension and Post-Retirement Benefits - Company's Obligations Determined under Weighted-Average Assumptions (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Benefits | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Discount rate | 4.10% | 4.80% |
Long-term rate of compensation increase | 3.50% | 3.50% |
Long-term rate of return on plan assets | 7.00% | 7.50% |
Post-retirement Benefits | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Discount rate | 4.10% | 4.80% |
Long-term rate of return on plan assets | 7.00% | 7.50% |
Post-retirement Benefits | Pre-65 | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Ultimate rate | 5.00% | 5.00% |
Ultimate year | ||
Post-retirement Benefits | Pre-65 | Maximum | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Initial rate | 7.50% | 8.00% |
Post-retirement Benefits | Post-65 | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Ultimate rate | 5.00% | 5.00% |
Ultimate year | 2022 | 2021 |
Post-retirement Benefits | Post-65 | Minimum | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Initial rate | 7.00% | 7.30% |
Pension_and_PostRetirement_Ben8
Pension and Post-Retirement Benefits - Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Compensation and Retirement Disclosure [Abstract] | |
Effect on total of service and interest cost, increase | $136 |
Effect on post-retirement benefit obligation, increase | 3,879 |
Effect on total of service and interest cost, decrease | -115 |
Effect on post-retirement benefit obligation, decrease | ($3,217) |
Pension_and_PostRetirement_Ben9
Pension and Post-Retirement Benefits - Fair Value of Pension Plan Assets (Detail) | Dec. 31, 2014 | Dec. 31, 2013 |
Pension Benefits | Equity Securities | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Percentage of the fair value of the total plan assets | 57.40% | 57.40% |
Pension Benefits | Debt Securities | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Percentage of the fair value of the total plan assets | 40.50% | 36.60% |
Pension Benefits | Cash | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Percentage of the fair value of the total plan assets | 2.10% | 6.00% |
Post-retirement Benefits | Equity Securities | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Percentage of the fair value of the total plan assets | 45.30% | 59.00% |
Post-retirement Benefits | Debt Securities | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Percentage of the fair value of the total plan assets | 30.10% | 29.50% |
Post-retirement Benefits | Cash | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Percentage of the fair value of the total plan assets | 24.60% | 11.50% |
Recovered_Sheet1
Pension and Post-Retirement Benefits - Fair Value of Pension Plan Assets, by Asset Category (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Cash and Cash Equivalents | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | $1,897 | $5,067 |
Diversified Emerging Markets | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 8,136 | 7,753 |
Foreign Large Blend | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 13,216 | 13,851 |
Large-Cap Blend | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 19,662 | 17,804 |
Long-Term Bonds | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 36,782 | 31,230 |
Mid-Cap Blend | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 6,293 | 5,807 |
Real Estate | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 4,844 | 3,776 |
Insurance Policies | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 65 | 79 |
Net Asset | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 90,897 | 85,367 |
Level 1 | Cash and Cash Equivalents | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 1,897 | 5,067 |
Level 1 | Diversified Emerging Markets | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 8,136 | 7,753 |
Level 1 | Foreign Large Blend | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 13,216 | 13,851 |
Level 1 | Large-Cap Blend | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 19,662 | 17,804 |
Level 1 | Long-Term Bonds | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 36,782 | 31,230 |
Level 1 | Mid-Cap Blend | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 6,293 | 5,807 |
Level 1 | Real Estate | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 4,844 | 3,776 |
Level 1 | Insurance Policies | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 0 | 0 |
Level 1 | Net Asset | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 90,832 | 85,288 |
Level 2 | Cash and Cash Equivalents | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 0 | 0 |
Level 2 | Diversified Emerging Markets | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 0 | 0 |
Level 2 | Foreign Large Blend | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 0 | 0 |
Level 2 | Large-Cap Blend | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 0 | 0 |
Level 2 | Long-Term Bonds | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 0 | 0 |
Level 2 | Mid-Cap Blend | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 0 | 0 |
Level 2 | Real Estate | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 0 | 0 |
Level 2 | Insurance Policies | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 0 | 0 |
Level 2 | Net Asset | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 0 | 0 |
Level 3 | Cash and Cash Equivalents | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 0 | 0 |
Level 3 | Diversified Emerging Markets | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 0 | 0 |
Level 3 | Foreign Large Blend | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 0 | 0 |
Level 3 | Large-Cap Blend | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 0 | 0 |
Level 3 | Long-Term Bonds | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 0 | 0 |
Level 3 | Mid-Cap Blend | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 0 | 0 |
Level 3 | Real Estate | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 0 | 0 |
Level 3 | Insurance Policies | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | 65 | 79 |
Level 3 | Net Asset | ||
Pension Plans, Postretirement and Other Employee Benefits | ||
Fair value of pension plan assets | $65 | $79 |
Recovered_Sheet2
Pension and Post-Retirement Benefits - Summary of Multiemployer Pension Plan (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
LIUNA | |||
Pension Plans, Postretirement and Other Employee Benefits | |||
EIN/Pension Plan No. | 52-6074345/001 | ||
Pension Protection Act Zone Status | Red | Red | |
Company Contributions | $149,000 | $124,000 | $123,000 |
Surcharge Imposed | Yes | ||
Expiration Date of CBA | 31-May-17 | ||
IUOE | |||
Pension Plans, Postretirement and Other Employee Benefits | |||
EIN/Pension Plan No. | 36-6052390/001 | ||
Pension Protection Act Zone Status | Green | Green | |
Company Contributions | 28,000 | 22,000 | 19,000 |
Surcharge Imposed | No | ||
Expiration Date of CBA | 31-Jul-15 | ||
CSSS | |||
Pension Plans, Postretirement and Other Employee Benefits | |||
EIN/Pension Plan No. | 36-6044243/001 | ||
Pension Protection Act Zone Status | Red | Red | |
Company Contributions | 51,000 | 51,000 | 51,000 |
Surcharge Imposed | NA | ||
Central States, Southeast and Southwest Areas Pension Plan | |||
Pension Plans, Postretirement and Other Employee Benefits | |||
Withdrawal liability from Pension Plan | 1,000,000 | ||
Withdrawal liability paid on monthly installments | $4,000 | ||
Description of withdrawal liability payment schedule | The withdrawal liability of $1.0 million will be paid in monthly installments of $4 until 2031. |
Obligations_Under_Guarantees_D
Obligations Under Guarantees (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
railroad_car | |
Surety Bonds | Travelers Casualty and Surety Company | |
Loss Contingencies | |
Surety bonds outstanding | $8,500,000 |
Reclamation Bonds | Travelers Casualty and Surety Company | |
Loss Contingencies | |
Bonds related to reclamation requirements | 8,200,000 |
Leased Railroad Hopper Cars | Kanawha Rail Corporation | |
Loss Contingencies | |
Number of railroad cars | 199 |
Payment of monthly rent | $66,000 |
Related_Party_Transactions_Det
Related Party Transactions (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 1 Months Ended | ||||
In Millions, unless otherwise specified | Feb. 06, 2012 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 31, 2012 | Dec. 31, 2013 | Dec. 22, 2010 |
Golden Gate Capital Acquisition | Advisory Agreement | |||||||
Related Party Transaction | |||||||
Advisory fee to parent | $1.25 | $1.30 | |||||
Transaction fee percent | 1.25% | ||||||
Termination of advisory agreement | 8 | ||||||
Termination fee | 8 | ||||||
Additional expense | 0 | ||||||
Promissory Note | |||||||
Related Party Transaction | |||||||
Promissory note with GGC USS Holdings, LLC. | 15 | ||||||
Promissory note, maturity date | 22-Dec-15 | ||||||
Interest rate of promissory note | 10.00% | ||||||
Promissory note, payment terms | Outstanding principal and interest under the note was payable upon demand, but no later than the maturity date. Upon sole election by the parent, any unpaid interest could be paid in cash on December 22 of each year until the maturity date. | ||||||
Conversion of promissory note to equity | 15 | ||||||
Accrued interest | $1.70 | ||||||
Percentage of Interest held | 0.00% |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Product | ||
Segment | ||
Segment Reporting Information | ||
Number of reportable segments | 2 | |
Number of products in Industrial & Specialty segment (over 250) | 250 | |
Industrial & Specialty Products segment, description | The Industrial & Specialty Products segment consists of over 250 products and materials used in a variety of industries including, container glass, fiberglass, specialty glass, flat glass, building products, fillers and extenders, foundry products, chemicals, recreation products and filtration products. | |
Goodwill | $68,647 | $68,403 |
Operating Segments | ||
Segment Reporting Information | ||
Goodwill | 68,400 | |
Operating Segments | Oil and Gas Proppants | ||
Segment Reporting Information | ||
Goodwill | 47,700 | |
Operating Segments | Industrial and Specialty Products | ||
Segment Reporting Information | ||
Goodwill | $20,700 |
Segment_Reporting_Presentation
Segment Reporting - Presentation of Sales and Segment Contribution Margin for Reporting Segments and Other Operating Results (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information | |||||||||||
Total sales | $249,589 | $241,256 | $205,801 | $180,095 | $149,474 | $144,372 | $129,828 | $122,311 | $876,741 | $545,985 | $441,921 |
Selling, general and administrative | -35,659 | -18,600 | -19,267 | -15,445 | -14,456 | -12,800 | -10,099 | -12,404 | -88,971 | -49,759 | -41,299 |
Depreciation, depletion and amortization | -12,664 | -12,425 | -10,341 | -9,589 | -10,098 | -9,152 | -8,890 | -8,278 | -45,019 | -36,418 | -25,099 |
Interest expense | -5,431 | -4,950 | -4,013 | -3,808 | -4,086 | -4,144 | -3,535 | -3,576 | -18,202 | -15,341 | -13,795 |
Early extinguishment of debt | 0 | -480 | 0 | 0 | 0 | -480 | 0 | ||||
Other income, net, including interest income | 379 | 120 | 221 | 38 | 152 | 260 | 63 | 122 | 758 | 597 | 4,612 |
Income before income taxes | 38,514 | 55,704 | 39,984 | 24,521 | 18,111 | 27,073 | 27,070 | 23,763 | 158,723 | 96,017 | 109,805 |
Operating Segments | |||||||||||
Segment Reporting Information | |||||||||||
Total sales | 876,741 | 545,985 | 441,921 | ||||||||
Total segment contribution margin | 317,239 | 202,899 | 193,671 | ||||||||
Operating Segments | Oil and Gas Proppants | |||||||||||
Segment Reporting Information | |||||||||||
Total sales | 662,770 | 347,439 | 243,765 | ||||||||
Total segment contribution margin | 256,137 | 145,916 | 140,070 | ||||||||
Operating Segments | Industrial and Specialty Products | |||||||||||
Segment Reporting Information | |||||||||||
Total sales | 213,971 | 198,546 | 198,156 | ||||||||
Total segment contribution margin | 61,102 | 56,983 | 53,601 | ||||||||
Segment Reconciling Items | |||||||||||
Segment Reporting Information | |||||||||||
Operating activities excluded from segment cost of goods sold | 7,082 | 5,481 | 8,285 | ||||||||
Selling, general and administrative | 88,971 | 49,759 | 41,299 | ||||||||
Depreciation, depletion and amortization | 45,019 | 36,418 | 25,099 | ||||||||
Interest expense | 18,202 | 15,341 | 13,795 | ||||||||
Early extinguishment of debt | 0 | -480 | 0 | ||||||||
Other income, net, including interest income | $758 | $597 | $4,612 |
Unaudited_Supplementary_Data_D
Unaudited Supplementary Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Sales | $249,589 | $241,256 | $205,801 | $180,095 | $149,474 | $144,372 | $129,828 | $122,311 | $876,741 | $545,985 | $441,921 |
Costs of goods sold | 157,700 | 149,697 | 132,417 | 126,770 | 102,875 | 90,983 | 80,297 | 74,412 | 566,584 | 348,567 | 256,535 |
Operating expenses | |||||||||||
Selling, general and administrative | 35,659 | 18,600 | 19,267 | 15,445 | 14,456 | 12,800 | 10,099 | 12,404 | 88,971 | 49,759 | 41,299 |
Depreciation, depletion and amortization | 12,664 | 12,425 | 10,341 | 9,589 | 10,098 | 9,152 | 8,890 | 8,278 | 45,019 | 36,418 | 25,099 |
Total operating expenses | 48,323 | 31,025 | 29,608 | 25,034 | 24,554 | 21,952 | 18,989 | 20,682 | 133,990 | 86,177 | 66,398 |
Operating income | 43,566 | 60,534 | 43,776 | 28,291 | 22,045 | 31,437 | 30,542 | 27,217 | 176,167 | 111,241 | 118,988 |
Other (expense) income | |||||||||||
Interest expense | -5,431 | -4,950 | -4,013 | -3,808 | -4,086 | -4,144 | -3,535 | -3,576 | -18,202 | -15,341 | -13,795 |
Early extinguishment of debt | 0 | -480 | 0 | 0 | 0 | -480 | 0 | ||||
Other income, net, including interest income | 379 | 120 | 221 | 38 | 152 | 260 | 63 | 122 | 758 | 597 | 4,612 |
Total other (expenses) income | -5,052 | -4,830 | -3,792 | -3,770 | -3,934 | -4,364 | -3,472 | -3,454 | -17,444 | -15,224 | -9,183 |
Income before income taxes | 38,514 | 55,704 | 39,984 | 24,521 | 18,111 | 27,073 | 27,070 | 23,763 | 158,723 | 96,017 | 109,805 |
Income tax expense | -5,276 | -14,427 | -11,330 | -6,150 | -1,658 | -5,739 | -6,878 | -6,486 | -37,183 | -20,761 | -30,651 |
Net income | $33,238 | $41,277 | $28,654 | $18,371 | $16,453 | $21,334 | $20,192 | $17,277 | $121,540 | $75,256 | $79,154 |
Earnings per share, basic | $0.62 | $0.77 | $0.53 | $0.34 | $0.31 | $0.40 | $0.38 | $0.33 | $2.26 | $1.42 | $1.50 |
Earnings per share, diluted | $0.61 | $0.76 | $0.53 | $0.34 | $0.31 | $0.40 | $0.38 | $0.32 | $2.23 | $1.41 | $1.50 |
Weighted average common shares outstanding (in thousands), basic | 53,838,000 | 53,801,000 | 53,733,000 | 53,505,000 | 53,035,000 | 53,103,000 | 52,948,000 | 52,946,000 | 53,719 | 53,035 | 52,592 |
Weighted average common shares outstanding (in thousands), diluted | 54,340,000 | 54,393,000 | 54,262,000 | 54,054,000 | 53,409,000 | 53,429,000 | 53,227,000 | 52,211,000 |
Subsequent_Events_Detail
Subsequent Events (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 2 Months Ended | |||||||
In Thousands, except Share data, unless otherwise specified | Oct. 24, 2014 | Jul. 25, 2014 | Apr. 25, 2014 | Feb. 06, 2014 | Jan. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 12, 2015 | Jan. 05, 2015 | Feb. 25, 2015 |
Subsequent Event | |||||||||||
Dividend declared date | 24-Oct-14 | 25-Jul-14 | 25-Apr-14 | 6-Feb-14 | 15-Dec-14 | ||||||
Dividend declared, record date | 15-Dec-14 | 15-Sep-14 | 13-Jun-14 | 14-Mar-14 | 23-Oct-14 | ||||||
Common stock cash dividend declared, per share | $0.13 | $0.13 | $0.13 | $0.13 | $0.50 | $0.50 | $0.38 | $0.50 | |||
Payments made for repurchase of common stock | $499 | $0 | $1,072 | ||||||||
Subsequent Event | |||||||||||
Subsequent Event | |||||||||||
Cash dividend paid | $0.13 | ||||||||||
Common stock cash dividend declared, per share | $0.13 | ||||||||||
Number of repurchased shares, common stock | 587,132 | ||||||||||
Payments made for repurchase of common stock | $15,000 |