Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Jun. 30, 2014 | Mar. 02, 2015 | |
Document and Entity Information | |||
Entity Registrant Name | OCI Resources LP. | ||
Entity Central Index Key | 1575051 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $127,450,000 | ||
Common Unitholders | |||
Document and Entity Information | |||
Entity Common Stock, Shares Outstanding | 9,801,027 | ||
Subordinated Units | |||
Document and Entity Information | |||
Entity Common Stock, Shares Outstanding | 9,775,500 | ||
General Partner | |||
Document and Entity Information | |||
Entity Common Stock, Shares Outstanding | 399,000 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $31 | $46.90 |
Accounts receivable, net | 35.5 | 34.4 |
Accounts receivable - ANSAC | 70.4 | |
Due from affiliates, net | 19.6 | |
Inventory | 43.2 | 41.7 |
Other current assets | 1.8 | |
Total current assets | 201.5 | |
Property, plant and equipment, net | 245 | 238 |
Other non-current assets | 0.9 | |
Total assets | 447.4 | |
Current liabilities: | ||
Current portion of long-term debt | 0 | 0 |
Accounts payable | 13.1 | |
Due to affiliates | 7.1 | |
Accrued expenses | 29.5 | |
Total current liabilities | 49.7 | |
Long-term debt | 145 | |
Other non-current liabilities | 4.2 | 3.8 |
Total liabilities | 198.9 | |
Commitments and Contingencies (See Note 13) | ||
Equity: | ||
General partner unitholders - OCI Resource Partners LLC (0.4 million units issued and outstanding at December 31, 2014 and 2013, respectively) | 3.8 | |
Accumulated other comprehensive loss | -0.4 | |
Partners' capital attributable to OCI Resources LP | 147.6 | |
Non-controlling interests | 100.9 | |
Total equity | 248.5 | 241.3 |
Total liabilities and partners' equity | 447.4 | |
Common Units | ||
Equity: | ||
Common and subordinated unitholders | 106.3 | |
Subordinated Unitholders - OCI Holdings | ||
Equity: | ||
Common and subordinated unitholders | 37.9 | |
Predecessor | ||
Current assets: | ||
Cash and cash equivalents | 46.9 | |
Accounts receivable, net | 34.4 | |
Accounts receivable - ANSAC | 58.1 | |
Due from affiliates, net | 20.4 | |
Inventory | 41.7 | |
Other current assets | 1.2 | |
Total current assets | 202.7 | |
Property, plant and equipment, net | 238 | |
Other non-current assets | 1.3 | |
Total assets | 442 | |
Current liabilities: | ||
Accounts payable | 13.2 | |
Due to affiliates | 2.3 | |
Accrued expenses | 26.4 | |
Total current liabilities | 41.9 | |
Long-term debt | 155 | |
Other non-current liabilities | 3.8 | |
Total liabilities | 200.7 | |
Commitments and Contingencies (See Note 13) | ||
Equity: | ||
General partner unitholders - OCI Resource Partners LLC (0.4 million units issued and outstanding at December 31, 2014 and 2013, respectively) | 3.8 | |
Accumulated other comprehensive loss | -0.3 | |
Partners' capital attributable to OCI Resources LP | 144.6 | |
Non-controlling interests | 96.7 | |
Total equity | 241.3 | |
Total liabilities and partners' equity | 442 | |
Predecessor | Common Units | ||
Equity: | ||
Common and subordinated unitholders | 104.5 | |
Predecessor | Subordinated Unitholders - OCI Holdings | ||
Equity: | ||
Common and subordinated unitholders | $36.60 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) | Dec. 31, 2014 | Dec. 31, 2013 |
General Partners' Capital Account, Units Issued | 399,000 | 399,000 |
General Partners' Capital Account, Units Outstanding | 399,000 | 399,000 |
Common Units | ||
Common and subordinated units issued | 9,801,830 | 9,775,500 |
Common and subordinated units outstanding | 9,801,830 | 9,775,500 |
Subordinated Unitholders - OCI Holdings | ||
Common and subordinated units issued | 9,775,500 | 9,775,500 |
Common and subordinated units outstanding | 9,775,500 | 9,775,500 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net sales: | |||
Sales - Affiliates | $236.70 | $211.60 | $236.90 |
Sales - others | 228.3 | ||
Total net sales | 465 | 465 | 442.1 |
Cost of products sold: | |||
Cost of products sold | 201.6 | ||
Depreciation, Depletion and Amortization, Not Including Amortization of Loan Financing Costs | 22.4 | ||
Depreciation, Depletion and Amortization | 22.8 | 23.9 | 23.7 |
Freight costs | 123.7 | ||
Total cost of products sold | 347.7 | ||
Gross profit | 117.3 | ||
Operating expenses: | |||
Selling, general and administrative expenses - others | 3.3 | 0.7 | |
Selling, general and administrative expenses - Affiliates | 17 | 12.5 | 11.1 |
Loss on disposal of assets, net | 1 | 0 | 0 |
Total operating expenses | 21.3 | ||
Operating income | 96 | ||
Other income/(expenses): | |||
Interest income | 0 | ||
Interest expense | -5.2 | ||
Other - net | 1.1 | ||
Total other income/(expense), net | -4.1 | ||
Income before provision for income taxes | 91.9 | ||
Provision for income taxes | 0 | 7.1 | |
Net income | 91.9 | 101 | |
Net income attributable to non-controlling interest | 47.4 | ||
Less: Predecessor net income prior to initial public offering on September 18, 2013 | 0 | 13.3 | |
Net income attributable to OCI Resources LP subsequent to initial public offering | 44.5 | 13 | |
Other comprehensive loss: | |||
Income (loss) on derivative financial instruments | -0.2 | ||
Comprehensive income | 91.7 | ||
Comprehensive income attributable to non-controlling interest | 47.3 | ||
Comprehensive income attributable to OCI Resources LP/Predecessor | 44.4 | ||
Less: Predecessor comprehensive income prior to initial public offering on September 18, 2013 | 0 | 13.1 | |
Comprehensive income attributable to OCI Resources LP subsequent to initial public offering | 44.4 | 13.2 | |
Common unit | |||
Other comprehensive loss: | |||
Net income per common and subordinated unit (basic and diluted) (dollars per share) | $2.23 | $0.65 | |
Weighted average common and subordinated units outstanding (basic and diluted) (shares) | 9.8 | 9.8 | |
Subordinated unit | |||
Other comprehensive loss: | |||
Net income per common and subordinated unit (basic and diluted) (dollars per share) | $2.23 | $0.65 | |
Weighted average common and subordinated units outstanding (basic and diluted) (shares) | 9.8 | 9.8 | |
Predecessor | |||
Net sales: | |||
Sales - Affiliates | 211.6 | 236.9 | |
Sales - others | 230.5 | 225.7 | |
Total net sales | 442.1 | 462.6 | |
Cost of products sold: | |||
Cost of products sold | 202.4 | 197.7 | |
Depreciation, Depletion and Amortization, Not Including Amortization of Loan Financing Costs | 23.9 | ||
Depreciation, Depletion and Amortization | 23.9 | 23.7 | |
Freight costs | 122.7 | 110.1 | |
Total cost of products sold | 349 | 331.5 | |
Gross profit | 93.1 | 131.1 | |
Operating expenses: | |||
Selling, general and administrative expenses - others | 0.7 | ||
Selling, general and administrative expenses - Affiliates | 12.5 | ||
Total operating expenses | 13.2 | 11.8 | |
Operating income | 79.9 | 119.3 | |
Other income/(expenses): | |||
Interest income | 0 | 0.2 | |
Interest expense | -2.9 | -1.5 | |
Other - net | 0.7 | -0.6 | |
Total other income/(expense), net | -2.2 | -1.9 | |
Income before provision for income taxes | 77.7 | 117.4 | |
Provision for income taxes | 7.1 | 16.4 | |
Net income | 70.6 | 101 | |
Net income attributable to non-controlling interest | 44.3 | 65.9 | |
Net income attributable to OCI Resources LP/Predecessor | 26.3 | 35.1 | |
Other comprehensive loss: | |||
Income (loss) on derivative financial instruments | 0 | 0 | |
Comprehensive income | 70.6 | 101 | |
Comprehensive income attributable to non-controlling interest | 44.3 | 65.9 | |
Comprehensive income attributable to OCI Resources LP/Predecessor | $26.30 | $35.10 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $91.90 | $101 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, depletion and amortization expense | 22.8 | 23.9 | 23.7 |
Loss on disposal of assets, net | 1 | ||
Equity-based compensation expense | 0.4 | ||
Deferred income taxes | 0 | 0.3 | |
Other non-cash items | -0.2 | ||
Changes in operating assets and liabilities: | |||
Accounts receivable - net | -1.1 | ||
Accounts receivable - ANSAC | -12.3 | ||
Inventory | -1.5 | ||
Other current and other non-current assets | 0 | ||
Due from affiliates, net | 0.8 | ||
Increase/(decrease) in: | |||
Accounts payable | -3.5 | ||
Due to affiliates | 4.8 | ||
Accrued expenses and other liabilities | 3 | ||
Net cash provided by operating activities | 106.1 | ||
Cash flows from investing activities: | |||
Capital expenditures | -27.2 | ||
Net cash used in investing activities | -27.2 | ||
Cash flows from financing activities: | |||
Proceeds from issuance of common units, net of offering costs | 0 | ||
Distribution of IPO proceeds to Predecessor and its affiliate | 0 | ||
Proceeds from issuance of revolving credit facility | 0 | ||
Repayments of long-term debt | -10 | ||
Partners' Capital Account, Distributions | 74.5 | ||
Distributions to Predecessor | 0 | ||
Distributions to non-controlling interest | -43 | ||
Net cash used in financing activities | -94.8 | ||
Net (decrease)/increase in cash and cash equivalents | -15.9 | ||
Cash and cash equivalents at beginning of year | 46.9 | ||
Cash and cash equivalents at end of year | 31 | 46.9 | |
Supplemental disclosure of cash flow information: | |||
Interest paid during the year | 4.3 | ||
Supplemental disclosure of non-cash operating activities: | |||
Predecessor net liabilities not assumed by the Partnership | 0 | ||
Supplemental disclosure of non-cash investing activities: | |||
Capital expenditures on account | 4.6 | ||
Predecessor | |||
Cash flows from operating activities: | |||
Net income | 70.6 | 101 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, depletion and amortization expense | 23.9 | 23.7 | |
Loss on disposal of assets, net | 0 | 0 | |
Equity-based compensation expense | 0 | 0 | |
Deferred income taxes | 0.3 | -0.2 | |
Other non-cash items | 0 | 0 | |
Changes in operating assets and liabilities: | |||
Accounts receivable - net | 0.8 | -3.5 | |
Accounts receivable - ANSAC | -4.2 | -6 | |
Inventory | 0 | -10 | |
Other current and other non-current assets | -2 | 0.2 | |
Due from affiliates, net | 5.5 | -13.5 | |
Increase/(decrease) in: | |||
Accounts payable | 0.1 | -1.6 | |
Due to affiliates | 5.6 | 16.9 | |
Accrued expenses and other liabilities | -0.3 | -5.2 | |
Net cash provided by operating activities | 100.3 | 101.8 | |
Cash flows from investing activities: | |||
Capital expenditures | -16.2 | -27.4 | |
Net cash used in investing activities | -16.2 | -27.4 | |
Cash flows from financing activities: | |||
Proceeds from issuance of common units, net of offering costs | 83.3 | 0 | |
Distribution of IPO proceeds to Predecessor and its affiliate | -83.3 | 0 | |
Proceeds from issuance of revolving credit facility | 135 | 0 | |
Repayments of long-term debt | -32 | -4 | |
Partners' Capital Account, Distributions | 0 | 0 | |
Distributions to Predecessor | -72.9 | -30.5 | |
Distributions to non-controlling interest | -90 | -44 | |
Net cash used in financing activities | -59.9 | -78.5 | |
Net (decrease)/increase in cash and cash equivalents | 24.2 | -4.1 | |
Cash and cash equivalents at beginning of year | 22.7 | 26.8 | |
Cash and cash equivalents at end of year | 46.9 | 22.7 | |
Supplemental disclosure of cash flow information: | |||
Interest paid during the year | 2.3 | 1.5 | |
Supplemental disclosure of non-cash operating activities: | |||
Predecessor net liabilities not assumed by the Partnership | 61.5 | 0 | |
Supplemental disclosure of non-cash investing activities: | |||
Capital expenditures on account | 0.8 | 0.8 | |
Common Units | |||
Cash flows from financing activities: | |||
Partners' Capital Account, Distributions | -20.5 | ||
Subordinated unit | |||
Cash flows from financing activities: | |||
Partners' Capital Account, Distributions | -20.5 | ||
General Partner | |||
Cash flows from financing activities: | |||
Partners' Capital Account, Distributions | ($0.80) |
CONSOLIDATED_STATEMENTS_OF_EQU
CONSOLIDATED STATEMENTS OF EQUITY (USD $) | Total | Common Units | General Partner | Partnership units | Partnership units | Partnership units | Accumulated Other Comprehensive Loss | Partners' Capital Attributable to OCIR and Predecessor's Net Equity | Noncontrolling Interests | Predecessor Capital Account [Member] | Predecessor |
In Millions, unless otherwise specified | Common Units | Subordinated Units | General Partner | ||||||||
BALANCE, beginning of period at Dec. 31, 2011 | $245.80 | ($0.20) | $125.20 | $120.60 | $125.40 | ||||||
Increase (decrease) in shareholders' equity | |||||||||||
Net income | 101 | 35.1 | 65.9 | 35.1 | 101 | ||||||
Distributions | -74.5 | -30.5 | -44 | -30.5 | 0 | ||||||
BALANCE, end of period at Dec. 31, 2012 | 272.3 | -0.2 | 129.8 | 142.5 | 130 | ||||||
Increase (decrease) in shareholders' equity | |||||||||||
Net income | 44.1 | 13.3 | 30.8 | 13.3 | |||||||
Distributions | -162.9 | -72.9 | -90 | -72.9 | |||||||
BALANCE, end of period at Sep. 18, 2013 | 153.5 | 70.2 | 83.3 | 70.4 | |||||||
BALANCE, beginning of period at Dec. 31, 2012 | -0.2 | ||||||||||
Increase (decrease) in shareholders' equity | |||||||||||
Net income | 70.6 | ||||||||||
Distributions | 0 | ||||||||||
BALANCE, end of period at Dec. 31, 2013 | 241.3 | ||||||||||
BALANCE, beginning of period at Sep. 18, 2013 | 153.5 | -0.2 | 70.2 | 83.3 | 70.4 | ||||||
Increase (decrease) in shareholders' equity | |||||||||||
Net income | 26.5 | 6.3 | 6.4 | 0.3 | 13 | 13.5 | |||||
Net liabilities not assumed by the Partnership | 61.3 | 0 | 0 | 0 | -0.1 | 61.4 | -0.1 | 61.5 | |||
Allocation of net Predecessor investment to unitholders | 42.2 | 86.2 | 3.5 | -131.9 | |||||||
Proceeds from initial public offering, net | 83.3 | 83.3 | 83.3 | ||||||||
Distribution of IPO proceeds to Predecessor and its affiliate | -83.3 | -27.3 | -56 | -83.3 | |||||||
BALANCE, end of period at Dec. 31, 2013 | 241.3 | 104.5 | 36.6 | 3.8 | -0.3 | 144.6 | 96.7 | ||||
Increase (decrease) in shareholders' equity | |||||||||||
Net income | 91.9 | 21.9 | 21.8 | 0.8 | 44.5 | 47.4 | |||||
Equity-based compensation plan activity | 0.4 | 0.4 | 0 | 0.4 | 0 | ||||||
Distributions | 20.5 | 0.8 | |||||||||
Allocation of net Predecessor investment to unitholders | -20.5 | -20.5 | |||||||||
Distribution of IPO proceeds to Predecessor and its affiliate | -84.8 | -0.8 | -41.8 | -43 | 0 | ||||||
Interest rate swap adjustment | -0.2 | 0 | 0 | 0 | -0.1 | -0.1 | -0.1 | 0 | |||
BALANCE, end of period at Dec. 31, 2014 | $248.50 | $106.30 | $37.90 | $3.80 | ($0.40) | $147.60 | $100.90 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | GENERAL |
Nature of Operations | |
As used in this Report, the terms "OCI Resources LP," "OCI Resources," the "Partnership," "OCIR," "we," "us," or "our" may refer to OCI Resources LP, which is a Delaware limited partnership formed on April 22, 2013 by OCI Wyoming Holding Co. ("OCI Holdings"), a wholly-owned subsidiary of OCI Chemical Corporation ("OCI Chemical"). On September 18, 2013, the Partnership completed the initial public offering (“IPO”) of its common units representing limited partner interests (the "Common Units"). The Partnership owns a controlling interest of 51.0% membership interest in OCI Wyoming LLC ("OCI Wyoming"). The Partnership’s operations consist solely of its investment in OCI Wyoming, which is in the business of mining trona ore to produce soda ash. All soda ash processed is sold to various domestic, Korean and European customers and to American Natural Soda Ash Corporation ("ANSAC") which is an affiliate for export. All mining and processing activities take place in one facility located in the Green River Basin of Wyoming. On June 30, 2014, OCI Wyoming converted from a Delaware limited partnership to a Delaware limited liability company. | |
NRP Trona LLC, a wholly owned subsidiary of Natural Resource Partners LP ("NRP"), currently owns a 49.0% membership interest in OCI Wyoming. NRP acquired its interest in OCI Wyoming in January 2013 from Anadarko Holding Company ("Anadarko"). |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||
Dec. 31, 2014 | |||
Accounting Policies [Abstract] | |||
ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Basis of Presentation and Significant Accounting Policies | |||
The accompanying consolidated financial statements of the Partnership and its subsidiary have been prepared in conformity with U.S. generally accepted accounting principles. All adjustments and elimination of significant intercompany balances necessary for a fair presentation of the Partnership’s results of operations, financial position and cash flows for the periods presented have been made. All such adjustments are of a normal recurring nature. The year ended December 31, 2013, includes the combined results of OCI Holdings and its subsidiary (the "Predecessor") through September 17, 2013 and the Partnership for the period from September 18, 2013 through December 31, 2013 and unless otherwise noted, financial information for the Predecessor and the Partnership is presented before non-controlling interest. For periods prior to the IPO, the accompanying consolidated financial statements and related notes present the historical accounts of the Predecessor. To the extent they relate to periods prior to the IPO, the results are not necessarily indicative of the actual results of operations that might have occurred if we had operated as the restructured public entity during that pre-IPO period. | |||
Non-controlling interests | |||
Prior to the completion of the IPO and the restructuring transaction completed in connection therewith (the "Restructuring"), non-controlling interests in the consolidated financial statements of the Predecessor represented the 1.0% limited partner interest in OCI Wyoming owned by Wyoming Co. and the 48.51% general partner interest in OCI Wyoming owned by Anadarko, and subsequently acquired by NRP. Subsequent to the Restructuring and IPO, non-controlling interests in the consolidated financial statements of the Partnership consisted of 39.37% general partner interest and 9.63% limited partner interest in OCI Wyoming owned by NRP. In connection with the conversion of OCI Wyoming from a Delaware limited partnership to a Delaware limited liability company, NRP's general partner interest and limited partnership interest were converted into a single-class of membership interests in OCI Wyoming, which currently consists of a 49.0% membership interest in OCI Wyoming. | |||
Use of Estimates | |||
The preparation of consolidated financial statements, in accordance with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||
Revenue Recognition | |||
We recognize revenue when the earnings process is complete, which is generally upon transfer of title. This transfer typically occurs upon shipment to the customer, which is normally free on board ("FOB") terms or upon receipt by the customer. In all cases, we apply the following criteria in recognizing revenue: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed, determinable or reasonably estimated sales price has been agreed with the customer; and (4) collectability is reasonably assured. Customer rebates are accounted for as sales deductions. We record amounts billed for shipping and handling fees as revenue. Costs incurred for shipping and handling are recorded as costs of sales and services. | |||
Freight Costs | |||
The Partnership includes freight costs billed to customers for shipments administered by the Partnership in gross sales. The related freight costs along with cost of products sold are deducted from gross sales to determine gross profit. | |||
Cash and Cash Equivalents | |||
The Partnership considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents consist primarily of money market deposit accounts. | |||
Accounts Receivable | |||
Accounts receivable are carried at the original invoice amount less an estimate for doubtful receivables. The allowance for doubtful accounts is based on specifically identified amounts that the Partnership believes to be uncollectible. An additional allowance is recorded based on certain percentages of aged receivables, which are determined based on management's assessment of the general financial conditions affecting the Partnership's customer base. If actual collection experience changes, revisions to the allowance may be required. Accounts receivable are written off when deemed uncollectible. Recoveries of accounts receivable previously written off are recorded when received. During the years ended 2014, 2013 and 2012, there were no significant accounts receivable bad debt expenses, write-offs or recoveries. | |||
Inventory | |||
Inventory is carried at the lower of cost or market determined on a first-in, first-out basis. Costs include raw materials, direct labor and manufacturing overhead. Market is based on current replacement cost for raw materials and stores inventory, and finished goods is based on net realizable value. | |||
• | Raw material inventory includes material and natural resources being used in the mining and refining process. | ||
• | Finished goods inventory is the finished product soda ash. | ||
• | Stores inventory includes materials and supplies currently available for future use. | ||
Property, Plant, and Equipment | |||
Property, plant, and equipment are stated at cost less accumulated depreciation. Depreciation is computed over the estimated useful lives of depreciable assets, principally using the straight-line method. The estimated useful lives applied to depreciable assets are as follows: | |||
Useful Lives | |||
Land and land improvements | 10 years | ||
Depletable land | 15-60 years | ||
Buildings and building improvements | 10-30 years | ||
Internal-use computer software | 3-5 years | ||
Machinery and equipment | 5-20 years | ||
When property, plant, and equipment are sold or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in operations for the year. | |||
The Partnership's policy is to evaluate property, plant, and equipment for impairment whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. An indicator of potential impairment would include situations when the estimated future undiscounted cash flows are less than the carrying value. The amount of any impairment then recognized would be calculated as the difference between estimated fair value and the carrying value of the asset. | |||
Derivative Instruments and Hedging Activities | |||
The Partnership may enter into derivative contracts from time to time to manage exposure to the risk of exchange rate changes on its foreign currency transactions, the risk of changes in natural gas prices, and the risk of the variability in interest rates on borrowings. Gains and losses on derivative contracts are reported as a component of the underlying transactions. The Partnership follows hedge accounting for its hedging activities. All derivative instruments are recorded on the balance sheet at their fair values. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. The Partnership designates its derivatives based upon criteria established for hedge accounting under generally accepted accounting principles. For a derivative designated as a fair value hedge, the gain or loss is recognized in earnings in the period of change together with the offsetting gain or loss on the hedged item attributed to the risk being hedged. For a derivative designated as a cash flow hedge, the effective portion of the derivative’s gain or loss is initially reported as a component of accumulated other comprehensive income (loss) and subsequently reclassified into earnings when the hedged exposure affects earnings. Any significant ineffective portion of the gain or loss is reported in earnings immediately. For derivatives not designated as hedges, the gain or loss is reported in earnings in the period of change. | |||
Income Tax | |||
We are organized as a pass-through entity for federal income tax purposes. As a result, our partners are responsible for federal income taxes based on their respective share of taxable income. Net income for financial statement purposes may differ significantly from taxable income reportable to unitholders as a result of differences between the tax basis and financial reporting basis of assets and liabilities and the taxable income allocation requirements under the partnership agreement. | |||
The Partnership is a limited partnership and generally is not subject to federal or certain state income taxes. The Predecessor was subject to income tax and was included in the consolidated income tax returns of OCI Enterprises. Income taxes were allocated to the Predecessor based on separate-company computations of income or loss. The income tax expense for the year ended December 31, 2012 are those of the Predecessor. For the year ended December 31, 2013, included in income tax expense is the expense of the Predecessor through September 17, 2013. | |||
Reclamation Costs | |||
The Partnership is obligated to return the land beneath its refinery and tailings ponds to its natural condition upon completion of operations and is required to return the land beneath its rail yard to its natural condition upon termination of the various lease agreements. | |||
The Partnership accounts for its land reclamation liability as an asset retirement obligation, which requires that obligations associated with the retirement of a tangible long-lived asset be recorded as a liability when those obligations are incurred, with the amount of the liability initially measured at fair value. Upon initially recognizing a liability for an asset retirement obligation, an entity must capitalize the cost by recognizing an increase in the carrying amount of the related long-lived asset. Over time, the liability is accreted to its present value each period, and the capitalized cost is depreciated over the estimated useful life of the related asset. Upon settlement of the liability, an entity either settles the obligation for its recorded amount or incurs a gain or loss upon settlement. | |||
The estimated original liability calculated in 1996 for the refinery and tailing ponds was calculated based on the estimated useful life of the mine, which was 80 years, and on external and internal estimates as to the cost to restore the land in the future and state regulatory requirements. As a result of a revised mine reserve study, effective January 1, 2015, the mining reserve will be amortized over a remaining life of 68 years. During 2014, 2013 and 2012, the remaining life was 66, 67 and 69, respectively. The liability was discounted using credit-adjusted risk-free rates of 7% and is being accreted throughout the estimated life of the related assets to equal the total estimated costs with a corresponding entry being recorded to interest expense. | |||
During 2011, the Partnership constructed a rail yard to facilitate loading and switching of rail cars. The Partnership is required to restore the land on which the rail yard is constructed to its natural conditions. The estimated liability for restoring the rail yard to its natural condition is calculated based on the land lease life of 30 years and on external and internal estimates as to the cost to restore the land in the future. The liability is discounted using a credit-adjusted risk-free rate of 4.25% and is being accreted throughout the estimated life of the related assets to equal the total estimated costs with a corresponding entry being recorded to interest expense. | |||
Fair Value of Financial Instruments | |||
Fair value is determined using a valuation hierarchy, generally by reference to an active trading market, quoted market prices or model-derived valuations for the same or similar financial instruments. See Note 16, "Fair Value Measurements," for more information. | |||
Equity-Based Compensation | |||
We recognize compensation expense related to equity-based awards, with service conditions, granted to employees based on the estimated fair value of the awards on the date of grant, net of estimated forfeitures. The grant date fair value of the equity-based awards is generally recognized on a straight-line basis over the requisite service period, which is generally the vesting period of the respective awards. Equity-based awards with market conditions are fair valued using a Monte Carlo Simulation model. See Note 11, "Equity-Based Compensation - TR Performance Unit Awards," for additional information. | |||
Subsequent Events | |||
We have evaluated subsequent events through the filing of this Annual Report on Form 10-K. | |||
Recently Issued Accounting Pronouncements | |||
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) that requires companies to recognize revenue when a customer obtains control rather than when companies have transferred substantially all risks and rewards of a good or service. This update is effective for annual reporting periods beginning on or after December 15, 2016 and interim periods therein and requires expanded disclosures. We are currently assessing the impact the adoption of ASU 2014-09 will have on our consolidated financial statements. | |||
In June 2014, the FASB issued ASU No. 2014-12, Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The new guidance requires that share-based compensation that require a specific performance target to be achieved in order for employees to become eligible to vest in the awards and that could be achieved after an employee completes the requisite service period be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation costs should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. This new guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2015. Early adoption is permitted. Entities may apply the amendments in this Update either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The adoption of ASU 2014-12 is not expected to have a material impact on our financial position or results of operations. |
NET_INCOME_PER_UNIT_AND_CASH_D
NET INCOME PER UNIT AND CASH DISTRIBUTION | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
NET INCOME PER UNIT AND CASH DISTRIBUTION | NET INCOME PER UNIT AND CASH DISTRIBUTION | ||||||||
Net income per unit applicable to limited partners (including subordinated unitholders) is computed by dividing limited partners’ interest in net income attributable to OCIR after deducting the general partner's interest and any incentive distributions, by the weighted average number of outstanding common and subordinated units. Our net income is allocated to the general partner and limited partners in accordance with their respective partnership percentages, after giving effect to priority income allocations for incentive distributions, if any, to our general partner, pursuant to our partnership agreement. Earnings in excess of distributions are allocated to the general partner and limited partners based on their respective ownership interests. Payments made to our unitholders are determined in relation to actual distributions declared and are not based on the net income allocations used in the calculation of net income per unit. | |||||||||
In addition to the common and subordinated units, we have also identified the general partner interest and incentive distribution rights ("IDRs") as participating securities and use the two-class method when calculating the net income per unit applicable to limited partners, which is based on the weighted-average number of common units outstanding during the period. Basic and diluted net income per unit applicable to limited partners are the same because our dilutive and anti-dilutive units outstanding were immaterial for the period. | |||||||||
Allocation of Net Income | |||||||||
The calculation of net income per unit is as follows: | |||||||||
Years Ended | |||||||||
December 31, | |||||||||
($ and unit data in millions, except per unit data) | 2014 | 2013 | |||||||
Net income attributable to OCI Resources LP (1) | $ | 44.5 | $ | 13 | |||||
Less: General partner's interest in net income | 0.8 | 0.2 | |||||||
Limited partners' interest in net income | $ | 43.7 | $ | 12.8 | |||||
Weighted average limited partner units outstanding: | |||||||||
Common - Public and OCI Holdings (basic and diluted) | 9.8 | 9.8 | |||||||
Subordinated - OCI Holdings (basic and diluted) | 9.8 | 9.8 | |||||||
Net income per limited partner unit (1): | |||||||||
Common - Public and OCI Holdings (basic and diluted) | $ | 2.23 | $ | 0.65 | |||||
Subordinated - OCI Holdings (basic and diluted) | $ | 2.23 | $ | 0.65 | |||||
(1) Net income attributable to OCI Resources LP and net income per limited partner unit, for year ended December 31, 2013, is subsequent to initial public offering. | |||||||||
The calculation of limited partners' interest in net income is as follows: | |||||||||
Years Ended | |||||||||
December 31, | |||||||||
($ in millions, except per unit data) | 2014 | 2013 | |||||||
Net income attributable to common unitholders (1): | |||||||||
Distributions (2) | $ | 20.2 | $ | 5.6 | |||||
Undistributed earnings | 1.7 | 0.8 | |||||||
Common unitholders' interest in net income (1) | $ | 21.9 | $ | 6.4 | |||||
Net income attributable to subordinated unitholders (1): | |||||||||
Distributions (2) | $ | 20.1 | $ | 5.6 | |||||
Undistributed earnings | 1.7 | 0.8 | |||||||
Subordinated unitholders' interest in net income (1) | $ | 21.8 | $ | 6.4 | |||||
(1) Net income and interest attributable to common and subordinated unitholders, for year ended December 31, 2013, is subsequent to initial public offering. | |||||||||
(2) Distributions declared per unit for the period | |||||||||
Quarterly Distribution | |||||||||
On January 16, 2015, the Partnership declared its fourth quarter 2014 quarterly distribution. The quarterly cash distribution of $0.5315 per unit was paid on February 13, 2015 to unitholders of record on January 30, 2015. | |||||||||
Our general partner has considerable discretion in determining the amount of available cash, the amount of distributions and the decision to make any distribution. Although our partnership agreement requires that we distribute all of our available cash quarterly, there is no guarantee that we will make quarterly cash distributions to our unitholders at our current quarterly distribution level, at the minimum quarterly distribution level or at any other rate, and we have no legal obligation to do so. However, our partnership agreement does contain provisions intended to motivate our general partner to make steady, increasing and sustainable distributions over time. | |||||||||
Distributions from Operating Surplus During the Subordination Period | |||||||||
If we make a distribution from operating surplus for any quarter during the subordination period (beginning on September 18, 2013 and expiring on the first business day after the distribution to unitholders in respect of any quarter, beginning with the quarter ending September 30, 2016), our partnership agreement requires that we make the distribution in the following manner: | |||||||||
• | first, 98.0% to the common unitholders, pro rata, and 2.0% to our general partner, until we distribute for each common unit an amount equal to the minimum quarterly distribution for that quarter; | ||||||||
• | second, 98.0% to the common unitholders, pro rata, and 2.0% to our general partner, until we distribute for each outstanding common unit an amount equal to any arrearages in the payment of the minimum quarterly distribution on the common units with respect to any prior quarters; | ||||||||
• | third, 98.0% to the subordinated unitholders, pro rata, and 2.0% to our general partner, until we distribute for each subordinated unit an amount equal to the minimum quarterly distribution for that quarter; and | ||||||||
• | thereafter, in the manner described in - "General Partner Interest and Incentive Distribution Rights" below. | ||||||||
General Partner Interest and Incentive Distribution Rights | |||||||||
Our partnership agreement provides that our general partner initially will be entitled to 2.0% of all distributions that we make prior to our liquidation. Our general partner has the right, but not the obligation, to contribute up to a proportionate amount of capital to us in order to maintain its 2.0% general partner interest if we issue additional units. Our general partner's approximate 2.0% interest, and the percentage of our cash distributions to which our general partner is entitled from such approximate 2.0% interest, will be proportionately reduced if we issue additional units in the future (other than (1) the issuance of common units upon conversion of outstanding subordinated units or (2) the issuance of common units upon a reset of the IDRs), and our general partner does not contribute a proportionate amount of capital to us in order to maintain its approximate 2.0% general partner interest. Our partnership agreement does not require that our general partner fund its capital contribution with cash. It may, instead, fund its capital contribution by contributing to us common units or other property. | |||||||||
IDRs represent the right to receive increasing percentages (13.0%, 23.0% and 48.0%) of quarterly distributions from operating surplus after we have achieved the minimum quarterly distribution and the target distribution levels. Our general partner currently holds the IDRs, but may transfer these rights separately from its general partner interest, subject to certain restrictions in our partnership agreement. | |||||||||
Percentage Allocations of Distributions from Operating Surplus | |||||||||
The following table illustrates the percentage allocations of distributions from operating surplus between the unitholders and our general partner based on the specified target distribution levels. The amounts set forth under the column heading "Marginal Percentage Interest in Distributions" are the percentage interests of our general partner and the unitholders in any distributions from operating surplus we distribute up to and including the corresponding amount in the column "Total Quarterly Distribution per Unit Target Amount." The percentage interests shown for our unitholders and our general partner for the minimum quarterly distribution also apply to quarterly distribution amounts that are less than the minimum quarterly distribution. The percentage interests set forth below for our general partner (1) include a 2.0% general partner interest, (2) assume that our general partner has contributed any additional capital necessary to maintain its 2.0% general partner interest, (3) assume that our general partner has not transferred its incentive distribution rights and (4) assume there are no arrearages on common units. | |||||||||
Marginal Percentage | |||||||||
Interest in | |||||||||
Distributions | |||||||||
Total Quarterly | Unitholders | General Partner | |||||||
Distribution per Unit | |||||||||
Target Amount | |||||||||
Minimum Quarterly Distribution | $0.50 | 98 | % | 2 | % | ||||
First Target Distribution | above $0.5000 up to $0.5750 | 98 | % | 2 | % | ||||
Second Target Distribution | above $0.5750 up to $0.6250 | 85 | % | 15 | % | ||||
Third Target Distribution | above $0.6250 up to $0.7500 | 75 | % | 25 | % | ||||
Thereafter | above $0.7500 | 50 | % | 50 | % |
ACCOUNTS_RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Receivables [Abstract] | ||||||||
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE, NET | |||||||
Accounts receivable, net as of December 31, 2014 and 2013 consists of the following: | ||||||||
($ in millions) | 2014 | 2013 | ||||||
Trade receivables | $ | 24.7 | $ | 23.9 | ||||
Other receivables | 10.9 | 10.5 | ||||||
35.6 | 34.4 | |||||||
Allowance for doubtful accounts | (0.1 | ) | — | |||||
Total | $ | 35.5 | $ | 34.4 | ||||
INVENTORY
INVENTORY | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
INVENTORY | INVENTORY | |||||||
Inventory as of December 31, 2014 and 2013 consists of the following: | ||||||||
($ in millions) | 2014 | 2013 | ||||||
Raw materials | $ | 6.4 | $ | 5.7 | ||||
Finished goods | 10.4 | 10.5 | ||||||
Stores inventory | 26.4 | 25.5 | ||||||
Total | $ | 43.2 | $ | 41.7 | ||||
PROPERTY_PLANT_AND_EQUIPMENT_N
PROPERTY, PLANT AND EQUIPMENT (Notes) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT, AND EQUIPMENT, NET | |||||||
Property, plant, and equipment, net as of December 31, 2014 and 2013 consists of the following: | ||||||||
($ in millions) | 2014 | 2013 | ||||||
Land and land improvements | $ | 0.3 | $ | 0.3 | ||||
Depletable land | 3 | 2 | ||||||
Buildings and building improvements | 129.5 | 128.9 | ||||||
Internal-use computer software | 4.5 | 4.1 | ||||||
Machinery and equipment | 595.5 | 594.6 | ||||||
Mining reserves | 65.3 | 65.2 | ||||||
Total | 798.1 | 795.1 | ||||||
Less accumulated depreciation, depletion and amortization | (586.2 | ) | (580.0 | ) | ||||
Total net book value | 211.9 | 215.1 | ||||||
Construction in progress | 33.1 | 22.9 | ||||||
Total property, plant, and equipment, net | $ | 245 | $ | 238 | ||||
Depreciation, depletion and amortization expense on property, plant, and equipment was $22.4 million, $23.9 million and $23.7 million for the years ended December 31, 2014, 2013 and 2012, respectively. |
ACCRUED_EXPENSES
ACCRUED EXPENSES | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
ACCRUED EXPENSES | ACCRUED EXPENSES | |||||||
Accrued expenses as of December 31, 2014 and 2013 consists of the following: | ||||||||
($ in millions) | 2014 | 2013 | ||||||
Accrued freight costs | $ | 1.4 | $ | 0.5 | ||||
Accrued energy costs | 5.7 | 6.1 | ||||||
Accrued royalty costs | 4.4 | 4 | ||||||
Accrued employee compensation | 6.8 | 5.2 | ||||||
Accrued other taxes | 4.7 | 4.3 | ||||||
Accrued derivatives | 0.7 | 1.1 | ||||||
Other accruals | 5.8 | 5.2 | ||||||
Total | $ | 29.5 | $ | 26.4 | ||||
DEBT
DEBT | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
DEBT | DEBT | |||||||
Long-term debt as of December 31, 2014 and 2013 consists of the following: | ||||||||
($ in millions) | 2014 | 2013 | ||||||
Variable Rate Demand Revenue Bonds, principal due October 1, 2018, interest payable monthly, bearing monthly interest rate of 0.14% (2014) and 0.16% (2013) | $ | 11.4 | $ | 11.4 | ||||
Variable Rate Demand Revenue Bonds, principal due August 1, 2017, interest payable monthly, bearing monthly interest rate of 0.14% (2014) and 0.16% (2013) | 8.6 | 8.6 | ||||||
OCI Wyoming Credit Facility, unsecured principal expiring on July 18, 2018, interest payable quarterly, bearing quarterly variable interest at 1.9781% (2014) and 1.996% (2013) | 125 | 135 | ||||||
Total debt | 145 | $ | 155 | |||||
Current portion of long-term debt | — | — | ||||||
Total long-term debt | $ | 145 | $ | 155 | ||||
Aggregate maturities required on long-term debt at December 31, 2014 are as follows: | ||||||||
2017 | 8.6 | |||||||
2018 | $ | 136.4 | ||||||
Total | $ | 145 | ||||||
Demand Revenue Bonds | ||||||||
The above revenue bonds require OCI Wyoming to maintain standby letters of credit totaling $20.3 million at December 31, 2014 and December 31, 2013. These letters of credit require compliance with certain covenants, including minimum net worth, maximum debt to net worth, and interest coverage ratios. As of December 31, 2014 and December 31, 2013, OCI Wyoming was in compliance with these debt covenants. | ||||||||
OCI Wyoming Credit Facility | ||||||||
On July 18, 2013, OCI Wyoming entered into a $190.0 million senior unsecured revolving credit facility, as amended on October 30, 2014 (as amended, the "OCI Wyoming Credit Facility"), with a syndicate of lenders, which will mature on the fifth anniversary of the closing date of such credit facility. The OCI Wyoming Credit Facility provides for revolving loans to fund working capital requirements, capital expenditures, to consummate permitted acquisitions and for all other lawful partnership purposes. The OCI Wyoming Credit Facility has an accordion feature that allows OCI Wyoming to increase the available revolving borrowings under the facility by up to an additional $75.0 million, subject to OCI Wyoming receiving increased commitments from existing lenders or new commitments from new lenders and the satisfaction of certain other conditions. In addition, the OCI Wyoming Credit Facility includes a sublimit up to $20.0 million for same-day swing line advances and a sublimit up to $40.0 million for letters of credit. OCI Wyoming's obligations under the OCI Wyoming Credit Facility are unsecured. | ||||||||
The OCI Wyoming Credit Facility contains various covenants and restrictive provisions that limit (subject to certain exceptions) OCI Wyoming's ability to: | ||||||||
• | make distributions on or redeem or repurchase units; | |||||||
• | incur or guarantee additional debt; | |||||||
• | make certain investments and acquisitions; | |||||||
• | incur certain liens or permit them to exist; | |||||||
• | enter into certain types of transactions with affiliates of OCI Wyoming; | |||||||
• | merge or consolidate with another company; and | |||||||
• | transfer, sell or otherwise dispose of assets. | |||||||
The OCI Wyoming Credit Facility also requires quarterly maintenance of a consolidated leverage ratio (as defined in the OCI Wyoming Credit Facility) of not more than 3.00 to 1.00 and a consolidated fixed charge coverage ratio (as defined in the OCI Wyoming Credit Facility) of not less than 1.10 to 1.00 for the 2014 and 2015 fiscal years, respectively, and not less than 1.15 to 1.00 thereafter. The OCI Wyoming Credit Facility also requires that consolidated capital expenditures, as defined in the OCI Wyoming Credit Facility, not exceed $50 million in any fiscal year. | ||||||||
In addition, the OCI Wyoming Credit Facility contains events of default customary for transactions of this nature, including (i) failure to make payments required under the OCI Wyoming Credit Facility, (ii) events of default resulting from failure to comply with covenants and financial ratios in the OCI Wyoming Credit Facility, (iii) the occurrence of a change of control, (iv) the institution of insolvency or similar proceedings against OCI Wyoming and (v) the occurrence of a default under any other material indebtedness OCI Wyoming may have. Upon the occurrence and during the continuation of an event of default, subject to the terms and conditions of the OCI Wyoming Credit Facility, the lenders may terminate all outstanding commitments under the OCI Wyoming Credit Facility and may declare any outstanding principal of the OCI Wyoming Credit Facility debt, together with accrued and unpaid interest, to be immediately due and payable. | ||||||||
Under the OCI Wyoming Credit Facility, a change of control is triggered if OCI Chemical and its wholly-owned subsidiaries, directly or indirectly, cease to own all of the equity interests, or cease to have the ability to elect a majority of the board of directors (or similar governing body) of OCI GP (or any entity that performs the functions of our general partner). In addition, a change of control would be triggered if we cease to own at least 50.1% of the economic interests in OCI Wyoming or cease to have the ability to elect a majority of the members of OCI Wyoming's board of managers. | ||||||||
OCI Wyoming was in compliance with all covenants and restrictions under its long-term debt agreements as of December 31, 2014. | ||||||||
Loans under the OCI Wyoming Credit Facility bear interest at OCI Wyoming's option at either: | ||||||||
• | a Base Rate, which equals the highest of (i) the federal funds rate in effect on such day plus 0.50%, (ii) the administrative agent's prime rate in effect on such day and (iii) one-month LIBOR plus 1.0%, in each case, plus an applicable margin; or | |||||||
• | a LIBOR Rate plus an applicable margin. | |||||||
The unused portion of the OCI Wyoming Credit Facility is subject to an unused line fee ranging from 0.275% to 0.350% per annum based on OCI Wyoming's then current consolidated leverage ratio. | ||||||||
Revolving Credit Facility | ||||||||
On July 18, 2013, OCIR entered into a $10.0 million senior secured revolving credit facility, as amended on October 30, 2014 (as amended, the "Revolving Credit Facility"), with a syndicate of lenders, which will mature on the fifth anniversary of the closing date of such credit facility. The Revolving Credit Facility provides for revolving loans to be available to fund distributions on OCIR's units and working capital requirements and capital expenditures, to consummate permitted acquisitions and for all other lawful partnership purposes. At December 31, 2014 and 2013, OCIR had no outstanding borrowings under the Revolving Credit Facility. The Revolving Credit Facility includes a sublimit up to $5.0 million for same-day swing line advances and a sublimit up to $5.0 million for letters of credit. OCIR's obligations under the Revolving Credit Facility are guaranteed by each of OCIR's material domestic subsidiaries other than OCI Wyoming, and to the extent no material adverse tax consequences would result, foreign wholly owned subsidiaries. In addition, OCIR's obligations under the Revolving Credit Facility are secured by a pledge of substantially all of OCIR's assets (subject to certain exceptions), including the membership interests held in OCI Wyoming by us. | ||||||||
The Revolving Credit Facility contains various covenants and restrictive provisions that limit (subject to certain exceptions) our ability to (and the ability of our subsidiaries, including without limitation, OCI Wyoming to): | ||||||||
• make distributions on or redeem or repurchase units; | ||||||||
• incur or guarantee additional debt; | ||||||||
• make certain investments and acquisitions; | ||||||||
• incur certain liens or permit them to exist; | ||||||||
• enter into certain types of transactions with affiliates; | ||||||||
• merge or consolidate with another company; and | ||||||||
• transfer, sell or otherwise dispose of assets. | ||||||||
The Revolving Credit Facility also requires quarterly maintenance of a consolidated fixed charge coverage ratio (as defined in the Revolving Credit Facility) of not less than 1.05 to 1.00 for the 2014 fiscal year and the 2015 fiscal year, and not less than 1.10 to 1.00 thereafter. The Revolving Credit Facility also requires that consolidated capital expenditures, as defined in the Revolving Credit Facility, not exceed $50 million in any fiscal year. | ||||||||
In addition, the Revolving Credit Facility contains events of default customary for transactions of this nature, including (i) failure to make payments required under the Revolving Credit Facility, (ii) events of default resulting from failure to comply with covenants and financial ratios, (iii) the occurrence of a change of control, (iv) the institution of insolvency or similar proceedings against OCIR or OCIR's material subsidiaries and (v) the occurrence of a default under any other material indebtedness OCIR (or any of OCIR's subsidiaries) may have, including the OCI Wyoming Credit Facility. Upon the occurrence and during the continuation of an event of default, subject to the terms and conditions of the Revolving Credit Facility, the lenders may terminate all outstanding commitments under the Revolving Credit Facility and may declare any outstanding principal of the Revolving Credit Facility debt, together with accrued and unpaid interest, to be immediately due and payable. | ||||||||
Under the Revolving Credit Facility, a change of control is triggered if OCI Chemical and its wholly-owned subsidiaries, directly or indirectly, cease to own all of the equity interests, or cease to have the ability to elect a majority of the board of directors (or similar governing body) of, OCI Holdings or OCI GP (or any entity that performs the functions of OCIR's general partner). In addition, a change of control would be triggered if OCIR ceases to own at least 50.1% of the economic interests in OCI Wyoming or ceases to have the ability to elect a majority of the members of OCI Wyoming's board of managers. | ||||||||
The Partnership was in compliance with all covenants and restrictions under its long-term debt agreements as of December 31, 2014. | ||||||||
Loans under the Revolving Credit Facility bear interest at our option at either: | ||||||||
• | a Base Rate, which equals the highest of (i) the federal funds rate in effect on such day plus 0.50%, (ii) the administrative agent's prime rate in effect on such day and (iii) one-month LIBOR plus 1.0%, in each case, plus an applicable margin; or | |||||||
• | a LIBOR Rate plus an applicable margin. | |||||||
The unused portion of the Revolving Credit Facility is subject to an unused line fee ranging from 0.275% to 0.350% based on our then current consolidated leverage ratio. |
OTHER_NONCURRENT_LIABILITIES
OTHER NON-CURRENT LIABILITIES | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Asset Retirement Obligation Disclosure [Abstract] | ||||||||
RECLAMATION RESERVE | OTHER NON-CURRENT LIABILITIES | |||||||
Other non-current liabilities as of December 31, 2014 and 2013 consists of the following: | ||||||||
($ in millions) | 2014 | 2013 | ||||||
Reclamation reserve balance at beginning of year | $ | 3.8 | $ | 3.6 | ||||
Accretion expense | 0.4 | 0.2 | ||||||
Reclamation reserve balance at end of year | $ | 4.2 | $ | 3.8 | ||||
EMPLOYEE_COMPENSATION
EMPLOYEE COMPENSATION | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE COMPENSATION | EMPLOYEE COMPENSATION |
The Partnership participates in various benefit plans offered and administered by OCI Enterprises and is allocated its portions of the annual costs related thereto. The specific plans are as follows: | |
Retirement Plans - Benefits provided under the OCI Enterprises' Pension Plan for Salaried Employees and OCI Enterprises' Pension Plan for Hourly Employees are based upon years of service and average compensation for the highest 60 consecutive months of the employee's last 120 months of service, as defined. Each plan covers substantially all full-time employees hired before May 1, 2001. OCI Enterprises’ funding policy is to contribute an amount within the range of the minimum required and the maximum tax-deductible contribution. The Partnership's allocated portion of OCI Enterprises’ net periodic pension cost was $3.1 million, $8.4 million and $9.0 million for the years ended December 31, 2014, 2013 and 2012, respectively. The decrease in pension costs was driven by favorable effects of higher actuarial discount rates and market returns. These pension expenses will revert back to 2013 levels during 2015. | |
Savings Plan - The OCI Enterprises' 401(k) Retirement Plan covers all eligible hourly and salaried employees. Eligibility is limited to all domestic residents and any foreign expatriates who are in the United States indefinitely. The plan permits employees to contribute specified percentages of their compensation, while the Partnership makes contributions based upon specified percentages of employee contributions. The Plan was amended such that participants hired on or subsequent to May 1, 2001, will receive an additional contribution from the Partnership based on a percentage of the participant’s base pay. Contributions made by OCI Enterprises for the years ended December 31, 2014, 2013 and 2012 were $2.4 million, $2.8 million and $2.4 million, respectively. | |
Postretirement Benefits - Most of the Partnership's employees are eligible for postretirement benefits other than pensions if they reach retirement age while still employed. | |
OCI Enterprises accounts for postretirement benefits on an accrual basis over an employee’s period of service. The postretirement plan, excluding pensions, are not funded, and OCI Enterprises has the right to modify or terminate the plan. OCI Enterprises' post-retirement benefits had a benefits obligation of $22.8 million and $21.0 million at December 31, 2014 and 2013, respectively. Effective January 1, 2013, the postretirement benefits for non-grandfathered retirees were amended to replace the medical coverage for post-65-year-old members with a fixed dollar contribution amount. As a result of the amendment, the accumulated and projected benefit obligation for postretirement benefits decreased by $8.7 million and resulted in a prior service credit of $7.7 million which will be recognized as a reduction of net periodic postretirement benefit costs in future years. The Partnership’s allocated portion of postretirement benefit costs were income of $0.3 million and $0.1 million for the years ended December 31, 2014 and 2013, respectively; and expense of $2.2 million for the year ended December 31, 2012. |
EQUITY_BASED_COMPENSATION_Note
EQUITY - BASED COMPENSATION (Notes) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||
EQUITY - BASED COMPENSATION | EQUITY - BASED COMPENSATION | ||||||
In July 2013, our general partner established the OCI Resource Partners LLC 2013 Long-Term Incentive Plan (the "Plan" or "LTIP"). The Plan is intended to provide incentives that will attract and retain valued employees, officers, consultants and non-employee directors by offering them a greater stake in our success and a closer identity with us, and to encourage ownership of our common units by such individuals. The Plan provides for awards in the form of common units, phantom units, distribution equivalent rights ("DERs"), cash awards and other unit-based awards. | |||||||
All employees, officers, consultants and non-employee directors of us and our parents and subsidiaries are eligible to be selected to participate in the Plan. As of December 31, 2014, subject to further adjustment as provided in the Plan, a total of 928,099 common units were available for awards under the Plan. Any common units tendered by a participant in payment of the tax liability with respect to an award, including common units withheld from any such award, will not be available for future awards under the Plan. Common units awarded under the Plan may be reserved or made available from our authorized and unissued common units or from common units reacquired (through open market transactions or otherwise). Any common units issued under the Plan through the assumption or substitution of outstanding grants from an acquired company will not reduce the number of common units available for awards under the Plan. If any common units subject to an award under the Plan are forfeited, any common units counted against the number of common units available for issuance pursuant to the Plan with respect to such award will again be available for awards under the Plan. | |||||||
Non-employee Director Awards | |||||||
As of December 31, 2014, a total of 7,941 common units were granted to non-employee directors and were fully vested. The total fair value of these awards was approximately $0.2 million at the date of grant during the year ended December 31, 2014. | |||||||
Restricted Unit Awards | |||||||
During the year ended December 31, 2014, we granted restricted unit awards in the form of common units to certain of our executive officers which vest over a specified period of time, usually between one to three years, with vesting based on continued employment as of each applicable vesting date. Award recipients are entitled to distributions subject to the same restrictions as the underlying common unit. The awards are classified as equity awards, and are accounted for at fair value at grant date. | |||||||
The following table presents a summary of activity for the year ended December 31, 2014: | |||||||
Restricted Stock Units | |||||||
(Units in whole numbers) | Number of Units | Grant-Date Average Fair Value per Unit (1) | |||||
Nonvested at December 31, 2013 | — | $ | — | ||||
Granted (2) | 19,960 | 25.01 | |||||
Vested | (4,101 | ) | 25.54 | ||||
Nonvested at December 31, 2014 | 15,859 | $ | 25.23 | ||||
(1) Determined by dividing the aggregate grate date fair value of awards by the number of awards issued. | |||||||
(2) The aggregate grant date fair value of time-based awards issued during 2014 was $0.5 million based on a grant date market price of our common units ranging from $24.16 to $25.54 per unit. No estimated forfeiture rate was applied to the awards as of December 31, 2014, as all awards granted are expected to vest. | |||||||
TR Performance Unit Awards | |||||||
During the year ended December 31, 2014, we granted time restricted unit performance awards ("TR Performance Unit Awards") to certain of our executive officers. The TR Performance Unit awards represent the right to receive a number of common units at a future date based on the achievement of market-based performance requirements in accordance with the TR Unit Performance Award agreement, and also include Distribution Equivalent Rights (“DERs”). DERs are the right to receive an amount equal to the accumulated cash distributions made during the period with respect to each common unit issued upon vesting. The TR Performance Unit Awards vest at the end of the performance period, usually between two to three years from the date of the grant. The DERs are forfeitable and vest with the TR Performance Unit Awards. Performance is measured on the achievement of a specified level of total return, or TR, relative to the TR of a peer group comprised of other limited partnerships. The potential payout ranges from 0-200% of the grant target quantity and is adjusted based on our TR performance relative to the peer group | |||||||
We utilized a Monte Carlo Simulation model to estimate the grant date fair value of TR Performance Unit Awards, with market conditions, granted to employees, which requires the input of highly subjective assumptions, including expected volatility and expected distribution yield. Historical and implied volatilities were used in estimating the fair value of these awards. | |||||||
The following table presents a summary of activity for the year ended December 31, 2014: | |||||||
TR Unit Performance Awards | |||||||
(Units in whole numbers) | Number of Units | Grant-Date Average Fair Value per Unit (1) | |||||
Nonvested at December 31, 2013 | — | $ | — | ||||
Granted | 7,658 | 35.72 | |||||
Nonvested at December 31, 2014 | 7,658 | $ | 35.72 | ||||
(1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued. | |||||||
Unrecognized Compensation Expense | |||||||
A summary of the Partnership's unrecognized compensation expense for its non-vested restricted time and performance based units, and the weighted-average periods over which the compensation expense is expected to be recognized are as following: | |||||||
Year Ended December 31, 2014 | |||||||
Unrecognized Compensation Expense | Weighted Average to be Recognized | ||||||
(In millions) | (In years) | ||||||
Time-based units | $ | 0.3 | 1.85 | ||||
Performance-based units | 0.2 | 2 | |||||
Total | $ | 0.5 | |||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||
INCOME TAXES | INCOME TAXES | ||||||||||||||
The Partnership is a limited partnership and generally is not subject to federal or certain state income taxes. As a result, the Partnership has not recognized income taxes for the year ended December 31, 2014. | |||||||||||||||
The Predecessor was subject to income tax and was included in the consolidated income tax returns of OCI Enterprises. Income taxes were allocated to the Predecessor based on separate-company computations of income or loss. The income tax expense for the year ended December 31, 2012 are those of the Predecessor. For the year ended December 31, 2013, included in income tax expense is the expense of the Predecessor through September 17, 2013. | |||||||||||||||
The provision for income taxes for the years ended December 31, 2013 and 2012 includes the following: | |||||||||||||||
2013 | 2012 | ||||||||||||||
(Predecessor) | |||||||||||||||
Current | $ | 6.8 | $ | 16.6 | |||||||||||
Deferred | 0.3 | (0.2 | ) | ||||||||||||
Total provision for income tax | $ | 7.1 | $ | 16.4 | |||||||||||
The effective tax rate (excluding net income attributable to non-controlling interest) for the years ended December 31, 2013 and 2012 includes the following: | |||||||||||||||
2013 | 2012 | ||||||||||||||
(Predecessor) | |||||||||||||||
Amount | Rate | Amount | Rate | ||||||||||||
Effect | Effect | ||||||||||||||
Income tax provision at federal statutory rate | $ | 7.1 | 35 | % | $ | 18.3 | 35 | % | |||||||
State and local income taxes net of federal tax benefit | 0.5 | 2.36 | % | 0.1 | 0.24 | % | |||||||||
Permanent domestic production activity deduction | (0.4 | ) | (2.06 | )% | (2.1 | ) | (4.01 | )% | |||||||
Other | (0.1 | ) | (0.27 | )% | 0.1 | 0.23 | % | ||||||||
Total provision for income tax | $ | 7.1 | 35.03 | % | $ | 16.4 | 31.46 | % | |||||||
The effective tax rate excludes income taxes on income attributable to non-controlling interest shareholders because the results of OCI Wyoming LLC's operations are taxed to its owners as a partnership for U.S. income tax purposes. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES | |||||||||||
Lease Commitments | ||||||||||||
OCI Chemical, on behalf of the Partnership, typically enters into operating lease contracts with various lessors for railcars to transport product to customer locations and warehouses. Rail car leases under these contractual commitments range for periods from 1 to 10 years. | ||||||||||||
The Partnership leases mineral rights from the U.S. Bureau of Land Management, the state of Wyoming, Rock Springs Royalty Corp, a wholly owned subsidiary of Anadarko, and other private parties. All of these leases provide for royalties based upon production volume. The remaining leases provide for minimum lease payments as detailed in the table below. The Partnership has a perpetual right of first refusal with respect to these leases and intends to continue renewing the leases as has been its practice. | ||||||||||||
The Partnership entered into a 10 year rail yard switching and maintenance agreement with a third party, Watco Companies, LLC ("Watco"), on December 1, 2011. Under the agreement, Watco provides rail-switching services at the Partnership’s rail yard. The Partnership’s rail yard is constructed on land leased by Watco from Rock Springs Grazing Association and on land by which Watco holds an easement from Anadarko Land Corp; the Rock Springs Grazing Association land lease is renewable every 5 years for a total period of 30 years, while the Anadarko Land Corp. easement lease is perpetual. The Partnership has an option agreement with Watco to assign these leases to the Partnership at any time during the land lease term. An annual rental of $15 thousand is paid under the easement and an annual rental of $60 thousand is paid under the lease. | ||||||||||||
The Partnership entered into a 10 year track lease agreement with Union Pacific for certain rail tracks used in connection with the rail yard. | ||||||||||||
OCI Chemical, on behalf of the Partnership, typically enters into operating lease contracts with various lessors for railcars to transport product to customer locations and warehouses. Rail car leases under these contractual commitments range for periods from 1 to 10 years. OCI Chemical's obligation related to these rail car leases are $9.7 million in 2015, $7.1 million in 2016, $5.7 million in 2017, $4.4 million in 2018, $3.6 million in 2019 and $4.2 million in 2020 and thereafter. | ||||||||||||
As of December 31, 2014, the total minimum contractual rental commitments under the Partnership's various operating leases, including renewal periods, are as follows: | ||||||||||||
($ in millions) | Leased Land | Track Lease | Total Minimum Lease Payments | |||||||||
2015 | $ | 0.1 | $ | — | $ | 0.1 | ||||||
2016 | 0.1 | — | 0.1 | |||||||||
2017 | 0.1 | — | 0.1 | |||||||||
2018 | 0.1 | — | 0.1 | |||||||||
2019 | 0.1 | — | 0.1 | |||||||||
Thereafter | 1.5 | 0.2 | 1.7 | |||||||||
Total | $ | 2 | $ | 0.2 | $ | 2.2 | ||||||
Purchase Commitments | ||||||||||||
We have natural gas supply contracts to mitigate volatility in the gas price. As of December 31, 2014, these contracts total $66.1 million for the purchase of a portion of our gas requirement over approximately the next five years. The supply purchase agreements have specific commitments of $22.4 million in 2015, $16.1 million in 2016, $13.3 million in 2017, $8.0 million in 2018 and $6.3 million in 2019. We have a separate contract for transportation of gas with average annual cost of approximately $3.6 million per year and the contract runs through 2021. | ||||||||||||
Legal Proceedings | ||||||||||||
From time to time, the Partnership has various litigation, claims, and assessments that arise in the normal course of business. Management does not believe, based upon its evaluation and discussion with counsel, that the ultimate outcome of any current matters, individually or in the aggregate, would have a material effect on the Partnership's financial position, results of operations, or cash flows. | ||||||||||||
Off-Balance Sheet Arrangements | ||||||||||||
We have a self-bond agreement with the Wyoming Department of Environmental Quality under which we commit to pay directly for reclamation costs. As of December 31, 2014, the amount of the bond was $33.9 million (December 31, 2013: $27.1 million), which is the amount we would need to pay the State of Wyoming for reclamation costs if we cease mining operations currently. The amount of this self-bond is subject to change upon periodic re-evaluation by the Land Quality Division. |
AGREEMENTS_AND_TRANSACTIONS_WI
AGREEMENTS AND TRANSACTIONS WITH AFFILIATES | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Related Party Transactions [Abstract] | ||||||||||||||||
AGREEMENTS AND TRANSACTIONS WITH AFFILIATES | AGREEMENTS AND TRANSACTIONS WITH AFFILIATES | |||||||||||||||
OCI Chemical is the exclusive sales agent for the Partnership and through its membership in ANSAC, OCI Chemical is responsible for promoting and increasing the use and sale of soda ash and other refined or processed sodium products produced. All actual sales and marketing costs incurred by OCI Chemical are charged directly to the Partnership. Selling, general and administrative expenses also include amounts charged to the Partnership by OCI Enterprises and OCI Chemical principally consisting of salaries, benefits, office supplies, professional fees, travel, rent and other costs of certain assets used by the Partnership. These transactions do not necessarily represent arm's length transactions and may not represent all costs if the Partnership operated on a stand alone basis. | ||||||||||||||||
The total costs charged to the Partnership by OCI Enterprises and OCI Chemical, including ANSAC related charge for the years ended December 31, 2014, 2013 and 2012 are as follows: | ||||||||||||||||
Years Ended December 31, | ||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||
OCI Enterprises | $ | 10.7 | $ | 5.5 | $ | 4 | ||||||||||
OCI Chemical | 3.4 | 4.4 | 5.2 | |||||||||||||
ANSAC | 2.9 | 2.6 | 1.9 | |||||||||||||
Total selling, general and administrative expenses - Affiliates | $ | 17 | $ | 12.5 | $ | 11.1 | ||||||||||
(1) ANSAC allocates its expenses to ANSAC’s members using a pro rata calculation based on sales. | ||||||||||||||||
Cost of products sold includes logistics services charged by ANSAC. For the years ended December 31, 2014, 2013 and 2012 these costs were $9.2 million, $6.7 million and $5.8 million, respectively. | ||||||||||||||||
Net sales to affiliates for the years ended December 31, 2014, 2013 and 2012 are as follows: | ||||||||||||||||
Years Ended December 31, | ||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||
ANSAC | $ | 230.8 | $ | 200.4 | $ | 229.5 | ||||||||||
OCI Alabama LLC | 5.9 | 7.3 | 7.4 | |||||||||||||
OCI Company Limited | — | 3.9 | — | |||||||||||||
Total | $ | 236.7 | $ | 211.6 | $ | 236.9 | ||||||||||
As of December 31, 2014 and December 31, 2013, the Partnership had receivables and payables representing arm's length transactions with affiliated entities, as follows: | ||||||||||||||||
As of December 31, | ||||||||||||||||
($ in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Receivables from affiliates | Payables to affiliates | |||||||||||||||
OCI Enterprises | $ | 1.7 | $ | 0.1 | $ | 4.5 | $ | 2.2 | ||||||||
OCI Chemical | 8.7 | 10.5 | 1.4 | — | ||||||||||||
OCI Chemical Europe NV | 9.2 | 7.8 | — | — | ||||||||||||
OCI Company Limited | — | 1.9 | — | — | ||||||||||||
Other | — | 0.1 | 1.2 | 0.1 | ||||||||||||
Total | $ | 19.6 | $ | 20.4 | $ | 7.1 | $ | 2.3 | ||||||||
MAJOR_CUSTOMERS_AND_SEGMENT_RE
MAJOR CUSTOMERS AND SEGMENT REPORTING | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
MAJOR CUSTOMERS AND SEGMENT REPORTING | MAJOR CUSTOMERS AND SEGMENT REPORTING | ||||||||||||
Our operations are similar in nature of products we provide and type of customers we serve. As the Partnership earns substantially all of its revenues through the sale of soda ash mined at a single location, we have concluded that we have one operating segment for reporting purposes. The net sales by geographic area for the years ended December 31, 2014, 2013 and 2012 are as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||||
Domestic | $ | 194.8 | $ | 195.1 | $ | 199.4 | |||||||
International | |||||||||||||
ANSAC | 230.8 | 200.4 | 229.5 | ||||||||||
Other | 39.4 | 46.6 | 33.7 | ||||||||||
Total international | 270.2 | 247 | 263.2 | ||||||||||
Total net sales | $ | 465 | $ | 442.1 | $ | 462.6 | |||||||
The Partnership's largest customer by sales is ANSAC. For the year ended December 31, 2014, there were no other customers who individually accounted for ten percent or more of total revenues. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | |
Dec. 31, 2014 | ||
Fair Value Disclosures [Abstract] | ||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS | |
The Partnership measures certain financial and non-financial assets and liabilities at fair value on a recurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. Fair value disclosures are reflected in a three-level hierarchy, maximizing the use of observable inputs and minimizing the use of unobservable inputs. | ||
A three-level valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date. The three levels are defined as follows: | ||
Ÿ | Level 1-inputs to the valuation methodology are quoted prices (unadjusted) for an identical asset or liability in an active market. | |
Ÿ | Level 2-inputs to the valuation methodology include quoted prices for a similar asset or liability in an active market or model-derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability. | |
Ÿ | Level 3-inputs to the valuation methodology are unobservable and significant to the fair value measurement of the asset or liability. | |
Financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and long-term debt. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate their fair value because of the nature of such instruments. Our interest rate swaps and foreign exchange contracts are fair valued with Level 2 inputs based on quoted market values for similar but not identical financial instruments. | ||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
We have entered into interest rate swaps designed to hedge our exposure to possible increases in interest rates. These contracts are for periods consistent with the exposure being hedged and generally will mature on July 18, 2018, the maturity date of the long-term debt under our Wyoming Credit Facility. These contracts had an aggregate notional value $76.0 million and $0.7 million fair value liability as of December 31, 2014 (December 31, 2013: notional value of $101.5 million; fair value liability of $0.5 million) | ||
We enter into foreign exchange forward contracts to hedge certain firm commitments denominated in currencies other than the U.S. dollar. However, the Partnership does not apply hedge accounting for these contracts. These contracts are for periods consistent with the exposure being hedged and generally have maturities of one year or less. The fair value of forward contracts, which are predominantly used to purchase U.S. dollars and sell Euros, totaled an asset of $0.6 million and a liability of $0.5 million at December 31, 2014 and 2013, respectively. These currency hedges have a notional value of $6.9 million and $26.4 million at December 31, 2014 and 2013, respectively. | ||
Financial Assets and Liabilities not Measured at Fair Value | ||
The fair value of our long-term debt is based on present rates for indebtedness with similar amounts, durations and credit risks. See Note 8 "Debt" for additional information on our debt arrangements. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS |
Distribution Declaration | |
On January 15, 2015, the members of the Board of Managers of OCI Wyoming LLC, approved and paid a cash distribution to the members in the aggregate amount of $22.0 million. The distribution was paid on January 16, 2015. | |
On January 16, 2015, the Partnership declared its fourth quarter 2014 quarterly distribution. The quarterly cash distribution of $0.5315 per unit was paid on February 13, 2015 to unitholders of record on January 30, 2015. | |
In February 2015, the Company entered into a natural gas forward contract with a notional value of approximately $17.6 million and maturity dates ranging from 2015 to 2020, to mitigate volatility in the gas prices. The maturity of the notional value is $0.9 million in 2015, $2.9 million in 2016, $3.2 million in 2017, $3.4 million in 2018, $3.5 million in 2019 and $3.7 million in 2020. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Accounting Policies [Abstract] | |||
Basis of Presentation | Basis of Presentation and Significant Accounting Policies | ||
The accompanying consolidated financial statements of the Partnership and its subsidiary have been prepared in conformity with U.S. generally accepted accounting principles. All adjustments and elimination of significant intercompany balances necessary for a fair presentation of the Partnership’s results of operations, financial position and cash flows for the periods presented have been made. All such adjustments are of a normal recurring nature. The year ended December 31, 2013, includes the combined results of OCI Holdings and its subsidiary (the "Predecessor") through September 17, 2013 and the Partnership for the period from September 18, 2013 through December 31, 2013 and unless otherwise noted, financial information for the Predecessor and the Partnership is presented before non-controlling interest. For periods prior to the IPO, the accompanying consolidated financial statements and related notes present the historical accounts of the Predecessor. To the extent they relate to periods prior to the IPO, the results are not necessarily indicative of the actual results of operations that might have occurred if we had operated as the restructured public entity during that pre-IPO period. | |||
Reorganization and Restructuring and Non-controlling interests | Non-controlling interests | ||
Prior to the completion of the IPO and the restructuring transaction completed in connection therewith (the "Restructuring"), non-controlling interests in the consolidated financial statements of the Predecessor represented the 1.0% limited partner interest in OCI Wyoming owned by Wyoming Co. and the 48.51% general partner interest in OCI Wyoming owned by Anadarko, and subsequently acquired by NRP. Subsequent to the Restructuring and IPO, non-controlling interests in the consolidated financial statements of the Partnership consisted of 39.37% general partner interest and 9.63% limited partner interest in OCI Wyoming owned by NRP. In connection with the conversion of OCI Wyoming from a Delaware limited partnership to a Delaware limited liability company, NRP's general partner interest and limited partnership interest were converted into a single-class of membership interests in OCI Wyoming, which currently consists of a 49.0% membership interest in OCI Wyoming. | |||
Use of Estimates | Use of Estimates | ||
The preparation of consolidated financial statements, in accordance with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||
Revenue Recognition | Revenue Recognition | ||
We recognize revenue when the earnings process is complete, which is generally upon transfer of title. This transfer typically occurs upon shipment to the customer, which is normally free on board ("FOB") terms or upon receipt by the customer. In all cases, we apply the following criteria in recognizing revenue: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed, determinable or reasonably estimated sales price has been agreed with the customer; and (4) collectability is reasonably assured. Customer rebates are accounted for as sales deductions. We record amounts billed for shipping and handling fees as revenue. Costs incurred for shipping and handling are recorded as costs of sales and services. | |||
Freight Costs | Freight Costs | ||
The Partnership includes freight costs billed to customers for shipments administered by the Partnership in gross sales. The related freight costs along with cost of products sold are deducted from gross sales to determine gross profit. | |||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||
The Partnership considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents consist primarily of money market deposit accounts. | |||
Accounts Receivable | Accounts Receivable | ||
Accounts receivable are carried at the original invoice amount less an estimate for doubtful receivables. The allowance for doubtful accounts is based on specifically identified amounts that the Partnership believes to be uncollectible. An additional allowance is recorded based on certain percentages of aged receivables, which are determined based on management's assessment of the general financial conditions affecting the Partnership's customer base. If actual collection experience changes, revisions to the allowance may be required. Accounts receivable are written off when deemed uncollectible. Recoveries of accounts receivable previously written off are recorded when received. During the years ended 2014, 2013 and 2012, there were no significant accounts receivable bad debt expenses, write-offs or recoveries. | |||
Inventory | Inventory | ||
Inventory is carried at the lower of cost or market determined on a first-in, first-out basis. Costs include raw materials, direct labor and manufacturing overhead. Market is based on current replacement cost for raw materials and stores inventory, and finished goods is based on net realizable value. | |||
• | Raw material inventory includes material and natural resources being used in the mining and refining process. | ||
• | Finished goods inventory is the finished product soda ash. | ||
• | Stores inventory includes materials and supplies currently available for future use. | ||
Property, Plant, and Equipment | Property, Plant, and Equipment | ||
Property, plant, and equipment are stated at cost less accumulated depreciation. Depreciation is computed over the estimated useful lives of depreciable assets, principally using the straight-line method. The estimated useful lives applied to depreciable assets are as follows: | |||
Useful Lives | |||
Land and land improvements | 10 years | ||
Depletable land | 15-60 years | ||
Buildings and building improvements | 10-30 years | ||
Internal-use computer software | 3-5 years | ||
Machinery and equipment | 5-20 years | ||
When property, plant, and equipment are sold or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in operations for the year. | |||
The Partnership's policy is to evaluate property, plant, and equipment for impairment whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. An indicator of potential impairment would include situations when the estimated future undiscounted cash flows are less than the carrying value. The amount of any impairment then recognized would be calculated as the difference between estimated fair value and the carrying value of the asset. | |||
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities | ||
The Partnership may enter into derivative contracts from time to time to manage exposure to the risk of exchange rate changes on its foreign currency transactions, the risk of changes in natural gas prices, and the risk of the variability in interest rates on borrowings. Gains and losses on derivative contracts are reported as a component of the underlying transactions. The Partnership follows hedge accounting for its hedging activities. All derivative instruments are recorded on the balance sheet at their fair values. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. The Partnership designates its derivatives based upon criteria established for hedge accounting under generally accepted accounting principles. For a derivative designated as a fair value hedge, the gain or loss is recognized in earnings in the period of change together with the offsetting gain or loss on the hedged item attributed to the risk being hedged. For a derivative designated as a cash flow hedge, the effective portion of the derivative’s gain or loss is initially reported as a component of accumulated other comprehensive income (loss) and subsequently reclassified into earnings when the hedged exposure affects earnings. Any significant ineffective portion of the gain or loss is reported in earnings immediately. For derivatives not designated as hedges, the gain or loss is reported in earnings in the period of change. | |||
Income Tax | Income Tax | ||
We are organized as a pass-through entity for federal income tax purposes. As a result, our partners are responsible for federal income taxes based on their respective share of taxable income. Net income for financial statement purposes may differ significantly from taxable income reportable to unitholders as a result of differences between the tax basis and financial reporting basis of assets and liabilities and the taxable income allocation requirements under the partnership agreement. | |||
The Partnership is a limited partnership and generally is not subject to federal or certain state income taxes. The Predecessor was subject to income tax and was included in the consolidated income tax returns of OCI Enterprises. Income taxes were allocated to the Predecessor based on separate-company computations of income or loss. The income tax expense for the year ended December 31, 2012 are those of the Predecessor. For the year ended December 31, 2013, included in income tax expense is the expense of the Predecessor through September 17, 2013. | |||
Reclamation Costs | Reclamation Costs | ||
The Partnership is obligated to return the land beneath its refinery and tailings ponds to its natural condition upon completion of operations and is required to return the land beneath its rail yard to its natural condition upon termination of the various lease agreements. | |||
The Partnership accounts for its land reclamation liability as an asset retirement obligation, which requires that obligations associated with the retirement of a tangible long-lived asset be recorded as a liability when those obligations are incurred, with the amount of the liability initially measured at fair value. Upon initially recognizing a liability for an asset retirement obligation, an entity must capitalize the cost by recognizing an increase in the carrying amount of the related long-lived asset. Over time, the liability is accreted to its present value each period, and the capitalized cost is depreciated over the estimated useful life of the related asset. Upon settlement of the liability, an entity either settles the obligation for its recorded amount or incurs a gain or loss upon settlement. | |||
The estimated original liability calculated in 1996 for the refinery and tailing ponds was calculated based on the estimated useful life of the mine, which was 80 years, and on external and internal estimates as to the cost to restore the land in the future and state regulatory requirements. As a result of a revised mine reserve study, effective January 1, 2015, the mining reserve will be amortized over a remaining life of 68 years. During 2014, 2013 and 2012, the remaining life was 66, 67 and 69, respectively. The liability was discounted using credit-adjusted risk-free rates of 7% and is being accreted throughout the estimated life of the related assets to equal the total estimated costs with a corresponding entry being recorded to interest expense. | |||
During 2011, the Partnership constructed a rail yard to facilitate loading and switching of rail cars. The Partnership is required to restore the land on which the rail yard is constructed to its natural conditions. The estimated liability for restoring the rail yard to its natural condition is calculated based on the land lease life of 30 years and on external and internal estimates as to the cost to restore the land in the future. The liability is discounted using a credit-adjusted risk-free rate of 4.25% and is being accreted throughout the estimated life of the related assets to equal the total estimated costs with a corresponding entry being recorded to interest expense. | |||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | ||
Fair value is determined using a valuation hierarchy, generally by reference to an active trading market, quoted market prices or model-derived valuations for the same or similar financial instruments. See Note 16, "Fair Value Measurements," for more information. | |||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Equity-Based Compensation | ||
We recognize compensation expense related to equity-based awards, with service conditions, granted to employees based on the estimated fair value of the awards on the date of grant, net of estimated forfeitures. The grant date fair value of the equity-based awards is generally recognized on a straight-line basis over the requisite service period, which is generally the vesting period of the respective awards. Equity-based awards with market conditions are fair valued using a Monte Carlo Simulation model. See Note 11, "Equity-Based Compensation - TR Performance Unit Awards," for additional information. | |||
Subsequent Events | Subsequent Events | ||
We have evaluated subsequent events through the filing of this Annual Report on Form 10-K. | |||
Accounting Pronouncements Recently Adopted and Pending Accounting Pronouncements | Recently Issued Accounting Pronouncements | ||
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) that requires companies to recognize revenue when a customer obtains control rather than when companies have transferred substantially all risks and rewards of a good or service. This update is effective for annual reporting periods beginning on or after December 15, 2016 and interim periods therein and requires expanded disclosures. We are currently assessing the impact the adoption of ASU 2014-09 will have on our consolidated financial statements. | |||
In June 2014, the FASB issued ASU No. 2014-12, Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The new guidance requires that share-based compensation that require a specific performance target to be achieved in order for employees to become eligible to vest in the awards and that could be achieved after an employee completes the requisite service period be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation costs should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. This new guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2015. Early adoption is permitted. Entities may apply the amendments in this Update either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The adoption of ASU 2014-12 is not expected to have a material impact on our financial position or results of operations. |
NET_INCOME_PER_UNIT_AND_CASH_D1
NET INCOME PER UNIT AND CASH DISTRIBUTION (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Calculation of net income per unit | The calculation of net income per unit is as follows: | ||||||||
Years Ended | |||||||||
December 31, | |||||||||
($ and unit data in millions, except per unit data) | 2014 | 2013 | |||||||
Net income attributable to OCI Resources LP (1) | $ | 44.5 | $ | 13 | |||||
Less: General partner's interest in net income | 0.8 | 0.2 | |||||||
Limited partners' interest in net income | $ | 43.7 | $ | 12.8 | |||||
Weighted average limited partner units outstanding: | |||||||||
Common - Public and OCI Holdings (basic and diluted) | 9.8 | 9.8 | |||||||
Subordinated - OCI Holdings (basic and diluted) | 9.8 | 9.8 | |||||||
Net income per limited partner unit (1): | |||||||||
Common - Public and OCI Holdings (basic and diluted) | $ | 2.23 | $ | 0.65 | |||||
Subordinated - OCI Holdings (basic and diluted) | $ | 2.23 | $ | 0.65 | |||||
(1) Net income attributable to OCI Resources LP and net income per limited partner unit, for year ended December 31, 2013, is subsequent to initial public offering. | |||||||||
Calculation of net income | The calculation of limited partners' interest in net income is as follows: | ||||||||
Years Ended | |||||||||
December 31, | |||||||||
($ in millions, except per unit data) | 2014 | 2013 | |||||||
Net income attributable to common unitholders (1): | |||||||||
Distributions (2) | $ | 20.2 | $ | 5.6 | |||||
Undistributed earnings | 1.7 | 0.8 | |||||||
Common unitholders' interest in net income (1) | $ | 21.9 | $ | 6.4 | |||||
Net income attributable to subordinated unitholders (1): | |||||||||
Distributions (2) | $ | 20.1 | $ | 5.6 | |||||
Undistributed earnings | 1.7 | 0.8 | |||||||
Subordinated unitholders' interest in net income (1) | $ | 21.8 | $ | 6.4 | |||||
(1) Net income and interest attributable to common and subordinated unitholders, for year ended December 31, 2013, is subsequent to initial public offering. | |||||||||
(2) Distributions declared per unit for the period | |||||||||
Percentage allocations of distributions from operating surplus | The following table illustrates the percentage allocations of distributions from operating surplus between the unitholders and our general partner based on the specified target distribution levels. The amounts set forth under the column heading "Marginal Percentage Interest in Distributions" are the percentage interests of our general partner and the unitholders in any distributions from operating surplus we distribute up to and including the corresponding amount in the column "Total Quarterly Distribution per Unit Target Amount." The percentage interests shown for our unitholders and our general partner for the minimum quarterly distribution also apply to quarterly distribution amounts that are less than the minimum quarterly distribution. The percentage interests set forth below for our general partner (1) include a 2.0% general partner interest, (2) assume that our general partner has contributed any additional capital necessary to maintain its 2.0% general partner interest, (3) assume that our general partner has not transferred its incentive distribution rights and (4) assume there are no arrearages on common units. | ||||||||
Marginal Percentage | |||||||||
Interest in | |||||||||
Distributions | |||||||||
Total Quarterly | Unitholders | General Partner | |||||||
Distribution per Unit | |||||||||
Target Amount | |||||||||
Minimum Quarterly Distribution | $0.50 | 98 | % | 2 | % | ||||
First Target Distribution | above $0.5000 up to $0.5750 | 98 | % | 2 | % | ||||
Second Target Distribution | above $0.5750 up to $0.6250 | 85 | % | 15 | % | ||||
Third Target Distribution | above $0.6250 up to $0.7500 | 75 | % | 25 | % | ||||
Thereafter | above $0.7500 | 50 | % | 50 | % |
ACCOUNTS_RECEIVABLE_Tables
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Receivables [Abstract] | ||||||||
Schedule of Accounts Receivable | Accounts receivable, net as of December 31, 2014 and 2013 consists of the following: | |||||||
($ in millions) | 2014 | 2013 | ||||||
Trade receivables | $ | 24.7 | $ | 23.9 | ||||
Other receivables | 10.9 | 10.5 | ||||||
35.6 | 34.4 | |||||||
Allowance for doubtful accounts | (0.1 | ) | — | |||||
Total | $ | 35.5 | $ | 34.4 | ||||
INVENTORY_Tables
INVENTORY (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule of inventory | Inventory as of December 31, 2014 and 2013 consists of the following: | |||||||
($ in millions) | 2014 | 2013 | ||||||
Raw materials | $ | 6.4 | $ | 5.7 | ||||
Finished goods | 10.4 | 10.5 | ||||||
Stores inventory | 26.4 | 25.5 | ||||||
Total | $ | 43.2 | $ | 41.7 | ||||
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment | Property, plant, and equipment, net as of December 31, 2014 and 2013 consists of the following: | |||||||
($ in millions) | 2014 | 2013 | ||||||
Land and land improvements | $ | 0.3 | $ | 0.3 | ||||
Depletable land | 3 | 2 | ||||||
Buildings and building improvements | 129.5 | 128.9 | ||||||
Internal-use computer software | 4.5 | 4.1 | ||||||
Machinery and equipment | 595.5 | 594.6 | ||||||
Mining reserves | 65.3 | 65.2 | ||||||
Total | 798.1 | 795.1 | ||||||
Less accumulated depreciation, depletion and amortization | (586.2 | ) | (580.0 | ) | ||||
Total net book value | 211.9 | 215.1 | ||||||
Construction in progress | 33.1 | 22.9 | ||||||
Total property, plant, and equipment, net | $ | 245 | $ | 238 | ||||
ACCRUED_EXPENSES_Tables
ACCRUED EXPENSES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Schedule of accrued expenses | Accrued expenses as of December 31, 2014 and 2013 consists of the following: | |||||||
($ in millions) | 2014 | 2013 | ||||||
Accrued freight costs | $ | 1.4 | $ | 0.5 | ||||
Accrued energy costs | 5.7 | 6.1 | ||||||
Accrued royalty costs | 4.4 | 4 | ||||||
Accrued employee compensation | 6.8 | 5.2 | ||||||
Accrued other taxes | 4.7 | 4.3 | ||||||
Accrued derivatives | 0.7 | 1.1 | ||||||
Other accruals | 5.8 | 5.2 | ||||||
Total | $ | 29.5 | $ | 26.4 | ||||
DEBT_Tables
DEBT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Components of long-term debt | Long-term debt as of December 31, 2014 and 2013 consists of the following: | |||||||
($ in millions) | 2014 | 2013 | ||||||
Variable Rate Demand Revenue Bonds, principal due October 1, 2018, interest payable monthly, bearing monthly interest rate of 0.14% (2014) and 0.16% (2013) | $ | 11.4 | $ | 11.4 | ||||
Variable Rate Demand Revenue Bonds, principal due August 1, 2017, interest payable monthly, bearing monthly interest rate of 0.14% (2014) and 0.16% (2013) | 8.6 | 8.6 | ||||||
OCI Wyoming Credit Facility, unsecured principal expiring on July 18, 2018, interest payable quarterly, bearing quarterly variable interest at 1.9781% (2014) and 1.996% (2013) | 125 | 135 | ||||||
Total debt | 145 | $ | 155 | |||||
Current portion of long-term debt | — | — | ||||||
Total long-term debt | $ | 145 | $ | 155 | ||||
Aggregate maturities on long-term debt | Aggregate maturities required on long-term debt at December 31, 2014 are as follows: | |||||||
2017 | 8.6 | |||||||
2018 | $ | 136.4 | ||||||
Total | $ | 145 | ||||||
OTHER_NONCURRENT_LIABILITIES_T
OTHER NON-CURRENT LIABILITIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Asset Retirement Obligation Disclosure [Abstract] | ||||||||
Schedule of reclamation reserve | Other non-current liabilities as of December 31, 2014 and 2013 consists of the following: | |||||||
($ in millions) | 2014 | 2013 | ||||||
Reclamation reserve balance at beginning of year | $ | 3.8 | $ | 3.6 | ||||
Accretion expense | 0.4 | 0.2 | ||||||
Reclamation reserve balance at end of year | $ | 4.2 | $ | 3.8 | ||||
EQUITY_BASED_COMPENSATION_Tabl
EQUITY - BASED COMPENSATION (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||
Schedule of Share-based Compensation, Restricted Unit Award Activity | The following table presents a summary of activity for the year ended December 31, 2014: | ||||||
Restricted Stock Units | |||||||
(Units in whole numbers) | Number of Units | Grant-Date Average Fair Value per Unit (1) | |||||
Nonvested at December 31, 2013 | — | $ | — | ||||
Granted (2) | 19,960 | 25.01 | |||||
Vested | (4,101 | ) | 25.54 | ||||
Nonvested at December 31, 2014 | 15,859 | $ | 25.23 | ||||
(1) Determined by dividing the aggregate grate date fair value of awards by the number of awards issued. | |||||||
(2) The aggregate grant date fair value of time-based awards issued during 2014 was $0.5 million based on a grant date market price of our common units ranging from $24.16 to $25.54 per unit. No estimated forfeiture rate was applied to the awards as of December 31, 2014, as all awards granted are expected to vest. | |||||||
Schedule of Nonvested Unit Activity | The following table presents a summary of activity for the year ended December 31, 2014: | ||||||
TR Unit Performance Awards | |||||||
(Units in whole numbers) | Number of Units | Grant-Date Average Fair Value per Unit (1) | |||||
Nonvested at December 31, 2013 | — | $ | — | ||||
Granted | 7,658 | 35.72 | |||||
Nonvested at December 31, 2014 | 7,658 | $ | 35.72 | ||||
(1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued. | |||||||
Schedule of Unrecognized Compensation Cost, Nonvested Awards [Table Text Block] | A summary of the Partnership's unrecognized compensation expense for its non-vested restricted time and performance based units, and the weighted-average periods over which the compensation expense is expected to be recognized are as following: | ||||||
Year Ended December 31, 2014 | |||||||
Unrecognized Compensation Expense | Weighted Average to be Recognized | ||||||
(In millions) | (In years) | ||||||
Time-based units | $ | 0.3 | 1.85 | ||||
Performance-based units | 0.2 | 2 | |||||
Total | $ | 0.5 | |||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||
Schedule of provision for income taxes | The provision for income taxes for the years ended December 31, 2013 and 2012 includes the following: | ||||||||||||||
2013 | 2012 | ||||||||||||||
(Predecessor) | |||||||||||||||
Current | $ | 6.8 | $ | 16.6 | |||||||||||
Deferred | 0.3 | (0.2 | ) | ||||||||||||
Total provision for income tax | $ | 7.1 | $ | 16.4 | |||||||||||
Schedule of effective tax rate | The effective tax rate (excluding net income attributable to non-controlling interest) for the years ended December 31, 2013 and 2012 includes the following: | ||||||||||||||
2013 | 2012 | ||||||||||||||
(Predecessor) | |||||||||||||||
Amount | Rate | Amount | Rate | ||||||||||||
Effect | Effect | ||||||||||||||
Income tax provision at federal statutory rate | $ | 7.1 | 35 | % | $ | 18.3 | 35 | % | |||||||
State and local income taxes net of federal tax benefit | 0.5 | 2.36 | % | 0.1 | 0.24 | % | |||||||||
Permanent domestic production activity deduction | (0.4 | ) | (2.06 | )% | (2.1 | ) | (4.01 | )% | |||||||
Other | (0.1 | ) | (0.27 | )% | 0.1 | 0.23 | % | ||||||||
Total provision for income tax | $ | 7.1 | 35.03 | % | $ | 16.4 | 31.46 | % | |||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||
Contractual minimum commitments under operating leases | As of December 31, 2014, the total minimum contractual rental commitments under the Partnership's various operating leases, including renewal periods, are as follows: | |||||||||||
($ in millions) | Leased Land | Track Lease | Total Minimum Lease Payments | |||||||||
2015 | $ | 0.1 | $ | — | $ | 0.1 | ||||||
2016 | 0.1 | — | 0.1 | |||||||||
2017 | 0.1 | — | 0.1 | |||||||||
2018 | 0.1 | — | 0.1 | |||||||||
2019 | 0.1 | — | 0.1 | |||||||||
Thereafter | 1.5 | 0.2 | 1.7 | |||||||||
Total | $ | 2 | $ | 0.2 | $ | 2.2 | ||||||
AGREEMENTS_AND_TRANSACTIONS_WI1
AGREEMENTS AND TRANSACTIONS WITH AFFILIATES (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Costs Charged by Affiliates | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Schedule of transactions with Affiliates | The total costs charged to the Partnership by OCI Enterprises and OCI Chemical, including ANSAC related charge for the years ended December 31, 2014, 2013 and 2012 are as follows: | |||||||||||||||
Years Ended December 31, | ||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||
OCI Enterprises | $ | 10.7 | $ | 5.5 | $ | 4 | ||||||||||
OCI Chemical | 3.4 | 4.4 | 5.2 | |||||||||||||
ANSAC | 2.9 | 2.6 | 1.9 | |||||||||||||
Total selling, general and administrative expenses - Affiliates | $ | 17 | $ | 12.5 | $ | 11.1 | ||||||||||
(1) ANSAC allocates its expenses to ANSAC’s members using a pro rata calculation based on sales. | ||||||||||||||||
Cost of products sold includes logistics services charged by ANSAC. For the years ended December 31, 2014, 2013 and 2012 these costs were $9.2 million, $6.7 million and $5.8 million, respectively. | ||||||||||||||||
Net Sales to Affiliates | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Schedule of transactions with Affiliates | Net sales to affiliates for the years ended December 31, 2014, 2013 and 2012 are as follows: | |||||||||||||||
Years Ended December 31, | ||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||
ANSAC | $ | 230.8 | $ | 200.4 | $ | 229.5 | ||||||||||
OCI Alabama LLC | 5.9 | 7.3 | 7.4 | |||||||||||||
OCI Company Limited | — | 3.9 | — | |||||||||||||
Total | $ | 236.7 | $ | 211.6 | $ | 236.9 | ||||||||||
Receivables and Payables with Affiliates | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Schedule of transactions with Affiliates | As of December 31, 2014 and December 31, 2013, the Partnership had receivables and payables representing arm's length transactions with affiliated entities, as follows: | |||||||||||||||
As of December 31, | ||||||||||||||||
($ in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Receivables from affiliates | Payables to affiliates | |||||||||||||||
OCI Enterprises | $ | 1.7 | $ | 0.1 | $ | 4.5 | $ | 2.2 | ||||||||
OCI Chemical | 8.7 | 10.5 | 1.4 | — | ||||||||||||
OCI Chemical Europe NV | 9.2 | 7.8 | — | — | ||||||||||||
OCI Company Limited | — | 1.9 | — | — | ||||||||||||
Other | — | 0.1 | 1.2 | 0.1 | ||||||||||||
Total | $ | 19.6 | $ | 20.4 | $ | 7.1 | $ | 2.3 | ||||||||
MAJOR_CUSTOMERS_AND_SEGMENT_RE1
MAJOR CUSTOMERS AND SEGMENT REPORTING (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Schedule of sales by geographic area | The net sales by geographic area for the years ended December 31, 2014, 2013 and 2012 are as follows: | ||||||||||||
Years Ended December 31, | |||||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||||
Domestic | $ | 194.8 | $ | 195.1 | $ | 199.4 | |||||||
International | |||||||||||||
ANSAC | 230.8 | 200.4 | 229.5 | ||||||||||
Other | 39.4 | 46.6 | 33.7 | ||||||||||
Total international | 270.2 | 247 | 263.2 | ||||||||||
Total net sales | $ | 465 | $ | 442.1 | $ | 462.6 | |||||||
GENERAL_Details
GENERAL (Details) (USD $) | Dec. 31, 2014 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Members' Equity | $0.51 |
Members' Equity Attributable to Noncontrolling Interest | $0.49 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 0 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Oct. 28, 2013 | Sep. 30, 2013 | Sep. 18, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 1996 | Dec. 31, 2015 | Dec. 31, 2011 | |
Corporate structure and ownership | |||||||||
Members' Equity Attributable to Noncontrolling Interest | 0.49 | ||||||||
OCI Wyoming LP | Natural Resource Partners LP | |||||||||
Corporate structure and ownership | |||||||||
Percentage of general partner ownership interest held | 39.37% | ||||||||
Percentage of limited partner ownership interest held | 9.63% | ||||||||
OCI Wyoming LP | Predecessor | Natural Resource Partners LP | |||||||||
Corporate structure and ownership | |||||||||
Percentage of general partner ownership interest held | 48.51% | ||||||||
OCI Wyoming LP | Predecessor | OCI Wyoming Co | |||||||||
Corporate structure and ownership | |||||||||
Percentage of limited partner ownership interest held | 1.00% | ||||||||
Asset Retirement Obligation | |||||||||
Corporate structure and ownership | |||||||||
Credit adjusted, risk-free interest rate | 7.00% | ||||||||
Mining reserves | Asset Retirement Obligation | |||||||||
Corporate structure and ownership | |||||||||
Useful Life | 67 years | 66 years | 69 years | 80 years | |||||
Mining reserves | Asset Retirement Obligation | Forecast | |||||||||
Corporate structure and ownership | |||||||||
Useful Life | 68 years | ||||||||
Land and land improvements | |||||||||
Corporate structure and ownership | |||||||||
Useful Life | 10 years | ||||||||
Depletable land | Minimum | |||||||||
Corporate structure and ownership | |||||||||
Useful Life | 15 years | ||||||||
Depletable land | Maximum | |||||||||
Corporate structure and ownership | |||||||||
Useful Life | 60 years | ||||||||
Buildings and building improvements | Minimum | |||||||||
Corporate structure and ownership | |||||||||
Useful Life | 10 years | ||||||||
Buildings and building improvements | Maximum | |||||||||
Corporate structure and ownership | |||||||||
Useful Life | 30 years | ||||||||
Internal-use computer software | Minimum | |||||||||
Corporate structure and ownership | |||||||||
Useful Life | 3 years | ||||||||
Internal-use computer software | Maximum | |||||||||
Corporate structure and ownership | |||||||||
Useful Life | 5 years | ||||||||
Machinery and equipment | Minimum | |||||||||
Corporate structure and ownership | |||||||||
Useful Life | 5 years | ||||||||
Machinery and equipment | Maximum | |||||||||
Corporate structure and ownership | |||||||||
Useful Life | 20 years | ||||||||
Leased Land | Asset Retirement Obligation | |||||||||
Corporate structure and ownership | |||||||||
Useful Life | 30 years | ||||||||
Credit adjusted, risk-free interest rate | 4.25% |
NET_INCOME_PER_UNIT_AND_CASH_D2
NET INCOME PER UNIT AND CASH DISTRIBUTION - Narrative (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Schedule of Percentage Allocation of Distributions From Operating Surplus [Line Items] | |
Minimum Quarterly Distribution | $0.50 |
General Partner | |
Schedule of Percentage Allocation of Distributions From Operating Surplus [Line Items] | |
Percentage Allocation of Operating Surplus During Subordination Period | 2.00% |
Percentage of general partner ownership interest held | 2.00% |
Up to minimum quarterly distribution | Common unit | |
Schedule of Percentage Allocation of Distributions From Operating Surplus [Line Items] | |
Percentage Allocation of Operating Surplus During Subordination Period | 98.00% |
Up to minimum quarterly distribution | General Partner | |
Schedule of Percentage Allocation of Distributions From Operating Surplus [Line Items] | |
Percentage Allocation of Operating Surplus During Subordination Period | 2.00% |
Up to arrearages on prior quarter minimum distributions | Common unit | |
Schedule of Percentage Allocation of Distributions From Operating Surplus [Line Items] | |
Percentage Allocation of Operating Surplus During Subordination Period | 98.00% |
Up to arrearages on prior quarter minimum distributions | General Partner | |
Schedule of Percentage Allocation of Distributions From Operating Surplus [Line Items] | |
Percentage Allocation of Operating Surplus During Subordination Period | 2.00% |
Up to minimum distribution for subordinated units | Subordinated unit | |
Schedule of Percentage Allocation of Distributions From Operating Surplus [Line Items] | |
Percentage Allocation of Operating Surplus During Subordination Period | 98.00% |
Up to minimum distribution for subordinated units | General Partner | |
Schedule of Percentage Allocation of Distributions From Operating Surplus [Line Items] | |
Percentage Allocation of Operating Surplus During Subordination Period | 2.00% |
Second Target Distribution | General Partner | |
Schedule of Percentage Allocation of Distributions From Operating Surplus [Line Items] | |
Increasing Percentage Allocation of Operating Surplus General Partner Incentive | 13.00% |
Third Target Distribution | General Partner | |
Schedule of Percentage Allocation of Distributions From Operating Surplus [Line Items] | |
Increasing Percentage Allocation of Operating Surplus General Partner Incentive | 23.00% |
Thereafter | General Partner | |
Schedule of Percentage Allocation of Distributions From Operating Surplus [Line Items] | |
Increasing Percentage Allocation of Operating Surplus General Partner Incentive | 48.00% |
NET_INCOME_PER_UNIT_AND_CASH_D3
NET INCOME PER UNIT AND CASH DISTRIBUTION - Calculation of net income per unit (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Net income attributable to OCI Resources LP subsequent to initial public offering | $13 | $44.50 | $13 |
Less: General partner's interest in net income | 0.8 | 0.2 | |
Limited partners' interest in net income | 43.7 | 12.8 | |
Subordinated unit | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Weighted average common and subordinated units outstanding (basic and diluted) (shares) | 9.8 | 9.8 | |
Net income per common and subordinated unit (basic and diluted) (dollars per share) | $2.23 | $0.65 | |
Common unit | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Weighted average common and subordinated units outstanding (basic and diluted) (shares) | 9.8 | 9.8 | |
Net income per common and subordinated unit (basic and diluted) (dollars per share) | $2.23 | $0.65 | |
Subordinated Unitholders - OCI Holdings | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Limited partners' interest in net income | $21.80 | $6.40 | |
Weighted average common and subordinated units outstanding (basic and diluted) (shares) | 9.8 | 9.8 |
NET_INCOME_PER_UNIT_AND_CASH_D4
NET INCOME PER UNIT AND CASH DISTRIBUTION - Allocation of Net Income (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Common unitholders' interest in net income (1) | $43.70 | $12.80 | |||
Cash distribution declared per unit | $0.53 | ||||
Common Units | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Distributions | 20.2 | [1] | 5.6 | [1] | |
Undistributed earnings | 1.7 | 0.8 | |||
Common unitholders' interest in net income (1) | 21.9 | 6.4 | |||
Subordinated Units | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Distributions | 20.1 | [1] | 5.6 | [1] | |
Undistributed earnings | 1.7 | 0.8 | |||
Common unitholders' interest in net income (1) | $21.80 | $6.40 | |||
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmI3NDUyNzA5YWJmZTQzYzA5ZWYyZjBhZmMyMGE3MmRjfFRleHRTZWxlY3Rpb246NTkxOTFCMTA0RkQ0NDBFRkNCMTdCRUY2OEMwOTI4MUUM} |
NET_INCOME_PER_UNIT_AND_CASH_D5
NET INCOME PER UNIT AND CASH DISTRIBUTION - Target distributions and marginal percentage interests (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Schedule of Percentage Allocation of Distributions From Operating Surplus [Line Items] | |
Minimum Quarterly Distribution | $0.50 |
Minimum Quarterly Distribution | |
Schedule of Percentage Allocation of Distributions From Operating Surplus [Line Items] | |
Minimum Quarterly Distribution | $0.50 |
First Target Distribution | Minimum | |
Schedule of Percentage Allocation of Distributions From Operating Surplus [Line Items] | |
Minimum Quarterly Distribution | $0.50 |
First Target Distribution | Maximum | |
Schedule of Percentage Allocation of Distributions From Operating Surplus [Line Items] | |
Minimum Quarterly Distribution | $0.57 |
Second Target Distribution | Minimum | |
Schedule of Percentage Allocation of Distributions From Operating Surplus [Line Items] | |
Minimum Quarterly Distribution | $0.57 |
Second Target Distribution | Maximum | |
Schedule of Percentage Allocation of Distributions From Operating Surplus [Line Items] | |
Minimum Quarterly Distribution | $0.63 |
Third Target Distribution | Minimum | |
Schedule of Percentage Allocation of Distributions From Operating Surplus [Line Items] | |
Minimum Quarterly Distribution | $0.63 |
Third Target Distribution | Maximum | |
Schedule of Percentage Allocation of Distributions From Operating Surplus [Line Items] | |
Minimum Quarterly Distribution | $0.75 |
Thereafter | Minimum | |
Schedule of Percentage Allocation of Distributions From Operating Surplus [Line Items] | |
Minimum Quarterly Distribution | $0.75 |
Unitholders | Minimum Quarterly Distribution | |
Schedule of Percentage Allocation of Distributions From Operating Surplus [Line Items] | |
Marginal Interest in Distribution, Percentage | 98.00% |
Unitholders | First Target Distribution | |
Schedule of Percentage Allocation of Distributions From Operating Surplus [Line Items] | |
Marginal Interest in Distribution, Percentage | 98.00% |
Unitholders | Second Target Distribution | |
Schedule of Percentage Allocation of Distributions From Operating Surplus [Line Items] | |
Marginal Interest in Distribution, Percentage | 85.00% |
Unitholders | Third Target Distribution | |
Schedule of Percentage Allocation of Distributions From Operating Surplus [Line Items] | |
Marginal Interest in Distribution, Percentage | 75.00% |
Unitholders | Thereafter | |
Schedule of Percentage Allocation of Distributions From Operating Surplus [Line Items] | |
Marginal Interest in Distribution, Percentage | 50.00% |
General Partner | Minimum Quarterly Distribution | |
Schedule of Percentage Allocation of Distributions From Operating Surplus [Line Items] | |
Marginal Interest in Distribution, Percentage | 2.00% |
General Partner | First Target Distribution | |
Schedule of Percentage Allocation of Distributions From Operating Surplus [Line Items] | |
Marginal Interest in Distribution, Percentage | 2.00% |
General Partner | Second Target Distribution | |
Schedule of Percentage Allocation of Distributions From Operating Surplus [Line Items] | |
Marginal Interest in Distribution, Percentage | 15.00% |
General Partner | Third Target Distribution | |
Schedule of Percentage Allocation of Distributions From Operating Surplus [Line Items] | |
Marginal Interest in Distribution, Percentage | 25.00% |
General Partner | Thereafter | |
Schedule of Percentage Allocation of Distributions From Operating Surplus [Line Items] | |
Marginal Interest in Distribution, Percentage | 50.00% |
ACCOUNTS_RECEIVABLE_Details
ACCOUNTS RECEIVABLE (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Receivables [Abstract] | ||
Trade receivables | $24.70 | $23.90 |
Other receivables | 10.9 | 10.5 |
Accounts receivable | 35.6 | 34.4 |
Allowance for doubtful accounts | -0.1 | 0 |
Accounts receivable, net | $35.50 | $34.40 |
INVENTORY_Details
INVENTORY (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials | $6.40 | $5.70 |
Finished goods | 10.4 | 10.5 |
Stores inventory | 26.4 | 25.5 |
Total | $43.20 | $41.70 |
PROPERTY_PLANT_AND_EQUIPMENT_D
PROPERTY, PLANT AND EQUIPMENT (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment | $798.10 | $795.10 | |
Less accumulated depreciation, depletion and amortization | -586.2 | -580 | |
Total net book value | 211.9 | 215.1 | |
Total property, plant, and equipment, net | 245 | 238 | |
Depreciation, depletion and amortization expense | 22.8 | 23.9 | 23.7 |
Land and land improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment | 0.3 | 0.3 | |
Depletable land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment | 3 | 2 | |
Buildings and building improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment | 129.5 | 128.9 | |
Internal-use computer software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment | 4.5 | 4.1 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment | 595.5 | 594.6 | |
Mining reserves | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment | 65.3 | 65.2 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant, and equipment, net | $33.10 | $22.90 |
ACCRUED_EXPENSES_Details
ACCRUED EXPENSES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Accrued freight costs | $1.40 | $0.50 |
Accrued energy costs | 5.7 | 6.1 |
Accrued royalty costs | 4.4 | 4 |
Accrued employee compensation | 6.8 | 5.2 |
Accrued other taxes | 4.7 | 4.3 |
Accrued derivatives | 0.7 | 1.1 |
Other accruals | 5.8 | 5.2 |
Total | $29.50 | $26.40 |
DEBT_Components_of_longterm_de
DEBT - Components of long-term debt (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt | ||
Total debt | $145 | $155 |
Current portion of long-term debt | 0 | 0 |
Total long-term debt | 145 | 155 |
Variable Rate Demand Revenue Bonds | Principal due October 1, 2018 | ||
Debt | ||
Total debt | 11.4 | 11.4 |
Interest rate (as a percent) | 0.14% | 0.16% |
Variable Rate Demand Revenue Bonds | Principal due August 1, 2017 | ||
Debt | ||
Total debt | 8.6 | 8.6 |
Interest rate (as a percent) | 0.14% | 0.16% |
OCI Wyoming credit facility | ||
Debt | ||
Total debt | $125 | $135 |
Interest rate (as a percent) | 1.98% | 2.00% |
DEBT_Maturities_of_longterm_de
DEBT - Maturities of long-term debt (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
2017 | $8.60 | |
2018 | 136.4 | |
Total debt | $145 | $155 |
DEBT_Narrative_Details
DEBT - Narrative (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Jul. 18, 2013 | Dec. 31, 2013 | Dec. 31, 2016 |
Line of Credit Facility [Line Items] | ||||
Loss of Control Percentage Threshold | 50.10% | |||
Bank of America, NA | Revolving credit facility | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $10 | |||
Revolving credit facility | 0 | |||
Consolidated Fixed Charge Coverage Ratio | 105.00% | |||
maximum consolidated capital expenditures | 50 | |||
Same Day Swing Line Advances | Bank of America, NA | Revolving credit facility | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases | 5 | |||
Letters of Credit | Bank of America, NA | Revolving credit facility | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases | 5 | |||
Minimum | Bank of America, NA | Revolving credit facility | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.28% | |||
Maximum | Bank of America, NA | Revolving credit facility | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.35% | |||
OCI Wyoming Co | Bank of America, NA | Revolving credit facility | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 190 | |||
Line of Credit Facility Additional Borrowing Capacity | 75 | |||
Consolidated Leverage Ratio | 300.00% | |||
Consolidated Fixed Charge Coverage Ratio | 110.00% | |||
maximum consolidated capital expenditures | 50 | |||
OCI Wyoming Co | Same Day Swing Line Advances | Bank of America, NA | Revolving credit facility | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases | 20 | |||
OCI Wyoming Co | Letters of Credit | Bank of America, NA | Revolving credit facility | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases | 40 | |||
OCI Wyoming Co | Minimum | Bank of America, NA | Revolving credit facility | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.28% | |||
OCI Wyoming Co | Maximum | Bank of America, NA | Revolving credit facility | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.35% | |||
Standby Letters of Credit | OCI Wyoming LP | ||||
Line of Credit Facility [Line Items] | ||||
Revolving credit facility | 20.3 | $20.30 | ||
Forecast | Bank of America, NA | Revolving credit facility | ||||
Line of Credit Facility [Line Items] | ||||
Consolidated Fixed Charge Coverage Ratio | 110.00% | |||
Forecast | OCI Wyoming Co | Bank of America, NA | Revolving credit facility | ||||
Line of Credit Facility [Line Items] | ||||
Consolidated Fixed Charge Coverage Ratio | 115.00% |
OTHER_NONCURRENT_LIABILITIES_D
OTHER NON-CURRENT LIABILITIES (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Reclamation reserve | ||
Reclamation reserve balance at beginning of year | $3.80 | $3.60 |
Accretion expense | 0.4 | 0.2 |
Reclamation reserve balance at end of year | $4.20 | $3.80 |
EMPLOYEE_COMPENSATION_Details
EMPLOYEE COMPENSATION (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Average compensation period | 60 months | ||
Period of last service | 120 months | ||
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic pension cost | $3.10 | $8.40 | $9 |
401(k) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions by OCI Enterprises | 2.4 | 2.8 | 2.4 |
Postretirement benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic pension cost | -0.3 | -0.1 | 2.2 |
Benefit obligation | 22.8 | 21 | |
Decrease in postretirement benefits due to amendments | 8.7 | ||
Prior service credit | $7.70 |
EQUITY_BASED_COMPENSATION_Narr
EQUITY - BASED COMPENSATION (Narrative) (Details) (USD $) | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized | 928,099 |
Units granted | 7,941 |
Equity-based compensation plan activity | ($0.40) |
TSR Unit Performance Awards | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 2 years |
Payout range | 0.00% |
TSR Unit Performance Awards | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Payout range | 200.00% |
Director | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Equity-based compensation plan activity | $0.20 |
EQUITY_BASED_COMPENSATION_Deta
EQUITY - BASED COMPENSATION (Details) (USD $) | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Restricted Unit Awards | ||
Number of Units | ||
Nonvested at | 0 | |
Granted | 19,960 | |
Vested | -4,101 | |
Nonvested at | 15,859 | |
Grant-Date Average Fair Value per Unit | ||
Nonvested at | $25.23 | $0 |
Granted | $25.01 | |
Vested | $25.54 | |
Nonvested at | $25.23 | $0 |
Aggregate grant date fair value | $0.50 | |
Restricted Unit Awards | Minimum | ||
Grant-Date Average Fair Value per Unit | ||
Grant date market price | $24.16 | |
Restricted Unit Awards | Maximum | ||
Grant-Date Average Fair Value per Unit | ||
Grant date market price | $25.54 | |
TSR Unit Performance Awards | ||
Number of Units | ||
Nonvested at | 0 | |
Granted | 7,658 | |
Nonvested at | 7,658 | |
Grant-Date Average Fair Value per Unit | ||
Nonvested at | $35.72 | $0 |
Granted | $35.72 | |
Nonvested at | $35.72 | $0 |
EQUITY_BASED_COMPENSATION_Unre
EQUITY - BASED COMPENSATION (Unrecognized Compensation Expense) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Unrecognized Compensation Expense | $0.50 |
Time-based units | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Unrecognized Compensation Expense | 0.3 |
Weighted Average to be Recognized | 1 year 10 months 6 days |
Performance-based units | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Unrecognized Compensation Expense | $0.20 |
Weighted Average to be Recognized | 2 years |
INCOME_TAXES_Provision_Details
INCOME TAXES - Provision (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Examination [Line Items] | |||
Current | $6.80 | ||
Deferred | 0 | 0.3 | |
Total provision for income tax | 0 | 7.1 | |
Predecessor | |||
Income Tax Examination [Line Items] | |||
Current | 16.6 | ||
Deferred | 0.3 | -0.2 | |
Total provision for income tax | $7.10 | $16.40 |
INCOME_TAXES_Effective_Tax_Rat
INCOME TAXES - Effective Tax Rate Reconciliation (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Amount | |||
Income tax provision at federal statutory rate | $7.10 | ||
State and local income taxes net of federal tax benefit | 0.5 | ||
Permanent domestic production activity deduction | -0.4 | ||
Other | -0.1 | ||
Total provision for income tax | 0 | 7.1 | |
Rate Effect | |||
Income tax provision at federal statutory rate | 35.00% | ||
State and local income taxes net of federal tax benefit | 2.36% | ||
Permanent domestic production activity deduction | -2.06% | ||
Other | -0.27% | ||
Total provision for income tax | 35.03% | ||
Predecessor | |||
Amount | |||
Income tax provision at federal statutory rate | 18.3 | ||
State and local income taxes net of federal tax benefit | 0.1 | ||
Permanent domestic production activity deduction | -2.1 | ||
Other | 0.1 | ||
Total provision for income tax | $7.10 | $16.40 | |
Rate Effect | |||
Income tax provision at federal statutory rate | 35.00% | ||
State and local income taxes net of federal tax benefit | 0.24% | ||
Permanent domestic production activity deduction | -4.01% | ||
Other | 0.23% | ||
Total provision for income tax | 31.46% |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES - Narrative (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Other Commitments [Line Items] | ||
Annual rent | $60,000 | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | ||
Average annual cost | 3,600,000 | |
Easement | ||
Other Commitments [Line Items] | ||
Annual rent | 15,000 | |
Self-bond agreement for reclamation costs | ||
Purchase Obligation, Fiscal Year Maturity [Abstract] | ||
Off balance sheet commitment | 33,900,000 | 27,100,000 |
Watco Companies, LLC | ||
Other Commitments [Line Items] | ||
Leases term | 10 years | |
Rock Springs Grazing Association | ||
Other Commitments [Line Items] | ||
Renewal term | 5 years | |
Total renewal term | 30 years | |
Union Pacific Company | ||
Other Commitments [Line Items] | ||
Leases term | 10 years | |
Minimum | ||
Other Commitments [Line Items] | ||
Leases term | 1 year | |
Maximum | ||
Other Commitments [Line Items] | ||
Leases term | 10 years | |
Commodity | ||
Other Commitments [Line Items] | ||
Leases term | 5 years | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | ||
Purchase Obligation | 66,100,000 | |
Purchase Obligation, Due in 2015 | 22,400,000 | |
Purchase Obligation, Due in 2016 | 16,100,000 | |
Purchase Obligation, Due in 2017 | 13,300,000 | |
Purchase Obligation, Due in 2018 | 8,000,000 | |
Purchase Obligation, Due in 2019 | $6,300,000 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Commitments (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Other Commitments [Line Items] | |
2015 | $0.10 |
2016 | 0.1 |
2017 | 0.1 |
2018 | 0.1 |
2019 | 0.1 |
Thereafter | 1.7 |
Total | 2.2 |
Rail Car Lease | |
Other Commitments [Line Items] | |
2015 | 9.7 |
2016 | 7.1 |
2017 | 5.7 |
2018 | 4.4 |
2019 | 3.6 |
Thereafter | 4.2 |
Leased Land | |
Other Commitments [Line Items] | |
2015 | 0.1 |
2016 | 0.1 |
2017 | 0.1 |
2018 | 0.1 |
2019 | 0.1 |
Thereafter | 1.5 |
Total | 2 |
Track Lease | |
Other Commitments [Line Items] | |
2015 | 0 |
2016 | 0 |
2017 | 0 |
2018 | 0 |
2019 | 0 |
Thereafter | 0.2 |
Total | $0.20 |
AGREEMENTS_AND_TRANSACTIONS_WI2
AGREEMENTS AND TRANSACTIONS WITH AFFILIATES - Costs charged by affiliates (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | |||
Cost of products sold | $201.60 | ||
Total selling, general and administrative expenses - Affiliates | 17 | 12.5 | 11.1 |
OCI Enterprises | |||
Related Party Transaction [Line Items] | |||
Total selling, general and administrative expenses - Affiliates | 10.7 | 5.5 | 4 |
OCI Chemical | |||
Related Party Transaction [Line Items] | |||
Total selling, general and administrative expenses - Affiliates | 3.4 | 4.4 | 5.2 |
ANSAC | |||
Related Party Transaction [Line Items] | |||
Cost of products sold | 9.2 | 6.7 | 5.8 |
Total selling, general and administrative expenses - Affiliates | $2.90 | $2.60 | $1.90 |
AGREEMENTS_AND_TRANSACTIONS_WI3
AGREEMENTS AND TRANSACTIONS WITH AFFILIATES - Net sales to affiliates (Details) (USD $) | 12 Months Ended | 3 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | |||||
Total | $236.70 | $211.60 | $236.90 | ||
ANSAC | |||||
Related Party Transaction [Line Items] | |||||
Total | 230.8 | 200.4 | 229.5 | ||
OCI Alabama LLC | |||||
Related Party Transaction [Line Items] | |||||
Total | 5.9 | 7.3 | 7.4 | ||
OCI Company Limited | |||||
Related Party Transaction [Line Items] | |||||
Total | $0 | $3.90 | $0 |
AGREEMENTS_AND_TRANSACTIONS_WI4
AGREEMENTS AND TRANSACTIONS WITH AFFILIATES - Receivables from or payables to affiliates (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Related Party Transaction [Line Items] | ||
Receivables from affiliates | $19.60 | $20.40 |
Payables to affiliates | 7.1 | 2.3 |
OCI Enterprises | ||
Related Party Transaction [Line Items] | ||
Receivables from affiliates | 1.7 | 0.1 |
Payables to affiliates | 4.5 | 2.2 |
OCI Chemical | ||
Related Party Transaction [Line Items] | ||
Receivables from affiliates | 8.7 | 10.5 |
Payables to affiliates | 1.4 | 0 |
OCI Chemical Europe NV | ||
Related Party Transaction [Line Items] | ||
Receivables from affiliates | 9.2 | 7.8 |
Payables to affiliates | 0 | 0 |
Other | ||
Related Party Transaction [Line Items] | ||
Receivables from affiliates | 0 | 0.1 |
Payables to affiliates | 1.2 | 0.1 |
OCI Company Limited | ||
Related Party Transaction [Line Items] | ||
Receivables from affiliates | 0 | 1.9 |
Payables to affiliates | $0 | $0 |
MAJOR_CUSTOMERS_AND_SEGMENT_RE2
MAJOR CUSTOMERS AND SEGMENT REPORTING - Sales by geographic area (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Sales by geographical area | ||||
Sales | $465 | $465 | $442.10 | $462.60 |
Domestic | ||||
Sales by geographical area | ||||
Sales | 194.8 | 195.1 | 199.4 | |
International | ||||
Sales by geographical area | ||||
Sales | 270.2 | 247 | 263.2 | |
International | ANSAC | ||||
Sales by geographical area | ||||
Sales | 230.8 | 200.4 | 229.5 | |
International | Other | ||||
Sales by geographical area | ||||
Sales | $39.40 | $46.60 | $33.70 |
MAJOR_CUSTOMERS_AND_SEGMENT_RE3
MAJOR CUSTOMERS AND SEGMENT REPORTING - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
segment | customer | |
segment | ||
Segment Reporting [Abstract] | ||
Number of operating segments | 1 | 1 |
Number of significant customers other than ANSAC | 0 |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (Fair Value, Measurements, Recurring, Level 2, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative aggregate notional value | $76 | $101.50 |
Derivative fair value | 0.7 | 0.5 |
Forward Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative aggregate notional value | 6.9 | 26.4 |
Derivative asset | 0.6 | |
Derivative liability | $0.50 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | 3 Months Ended | 0 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Jan. 16, 2015 | Feb. 24, 2015 |
Subsequent Event [Line Items] | |||
Cash distribution declared per unit | $0.53 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Cash distribution | $22 | ||
Purchase Obligation | 17.6 | ||
Purchase Obligation, Future Minimum Payments, Remainder of Fiscal Year | 0.9 | ||
Purchase Obligation, Due in Second Year | 2.9 | ||
Purchase Obligation, Due in Third Year | 3.2 | ||
Purchase Obligation, Due in Fourth Year | 3.4 | ||
Purchase Obligation, Due in Fifth Year | 3.5 | ||
Purchase Obligation, Due after Fifth Year | $3.70 |