Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Jan. 31, 2021 | Jun. 30, 2020 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 1-13105 | ||
Entity Registrant Name | Arch Resources, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 43-0921172 | ||
Entity Address, Address Line One | One CityPlace Drive | ||
Entity Address, Address Line Two | Suite 300 | ||
Entity Address, City or Town | St. Louis | ||
Entity Address, State or Province | MO | ||
Entity Address, Postal Zip Code | 63141 | ||
City Area Code | 314 | ||
Local Phone Number | 994-2700 | ||
Title of 12(b) Security | Common Stock, $.01 par value | ||
Trading Symbol | ARCH | ||
Security Exchange Name | NYSE | ||
Entity Well Known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Public Float | $ 430.3 | ||
Entity Common Stock, Shares Outstanding (in shares) | 15,234,899 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement to be filed with the Securities and Exchange Commission in connection with the 2021 annual stockholders’ meeting are incorporated by reference into Part III of this Form 10-K. | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001037676 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY |
Condensed Consolidated Income S
Condensed Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Revenues | $ 1,467,592 | $ 2,294,352 | $ 2,451,787 |
Costs, expenses and other operating | |||
Cost of sales (exclusive of items shown separately below) | 1,378,479 | 1,873,017 | 1,925,202 |
Depreciation, depletion and amortization | 121,552 | 111,621 | 130,670 |
Accretion on asset retirement obligations | 19,887 | 20,548 | 27,970 |
Change in fair value of coal derivatives and coal trading activities, net | 5,219 | (18,601) | 9,118 |
Selling, general and administrative expenses | 82,397 | 95,781 | 100,300 |
Costs related to proposed joint venture with Peabody Energy | 16,087 | 13,816 | |
Asset impairment and restructuring | 221,380 | ||
Gain on property insurance recovery related to Mountain Laurel longwall | (23,518) | 0 | |
(Gain) loss on divestitures | (1,505) | 13,312 | |
Preference Rights Lease Application settlement income | 0 | (39,000) | |
Other operating income, net | (22,246) | (19,012) | (20,611) |
Costs, expenses and other operating | 1,797,732 | 2,051,482 | 2,172,649 |
Income (loss) from operations | (330,140) | 242,870 | 279,138 |
Interest expense, net | |||
Interest expense | (14,432) | (16,485) | (20,471) |
Interest and investment income | 3,808 | 9,691 | 6,782 |
Interest expense, net | (10,624) | (6,794) | (13,689) |
Income (loss) before nonoperating expenses | (340,764) | 236,076 | 265,449 |
Nonoperating (expenses) income | |||
Non-service related pension and postretirement benefit (costs) credits | (3,884) | (2,053) | (3,202) |
Net loss resulting from early retirement of debt and debt restructuring | (485) | ||
Reorganization items, net | 26 | 24 | (1,661) |
Nonoperating (expenses) income | (3,858) | (2,029) | (5,348) |
Income (loss) before income taxes | (344,622) | 234,047 | 260,101 |
Provision for (benefit from) income taxes | (7) | 248 | (52,476) |
Net income (loss) | $ (344,615) | $ 233,799 | $ 312,577 |
Net income (loss) per common share | |||
Basic earnings (loss) per common share (in dollars per share) | $ (22.74) | $ 14.42 | $ 15.90 |
Diluted earnings (loss) per common share (in dollars per share) | $ (22.74) | $ 13.52 | $ 15.15 |
Weighted average shares outstanding | |||
Basic weighted average shares outstanding (in shares) | 15,153 | 16,218 | 19,663 |
Diluted weighted average shares outstanding (in shares) | 15,153 | 17,298 | 20,629 |
Dividends declared per common share (in dollars per share) | $ 0.50 | $ 1.80 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||
Net income (loss) | $ (344,615) | $ 233,799 | $ 312,577 |
Derivative instruments | |||
Comprehensive income (loss) before tax | (1,328) | (5,892) | 2,681 |
Income tax benefit (provision) | 0 | 0 | 0 |
Other comprehensive income (loss), derivative instruments, net of tax | (1,328) | (5,892) | 2,681 |
Pension, postretirement and other post-employment benefits | |||
Comprehensive income (loss) before tax | (39,732) | (32,038) | 20,591 |
Income tax benefit (provision) | 0 | 0 | 0 |
Other comprehensive income (loss), pension, postretirement and other post-employment benefits, net of tax | (39,732) | (32,038) | 20,591 |
Available-for-sale securities | |||
Comprehensive income (loss) before tax | (330) | 323 | (343) |
Income tax benefit (provision) | 0 | 0 | 0 |
Other comprehensive income (loss), available-for-sale securities, net of tax | (330) | 323 | (343) |
Total other comprehensive income (loss) | (41,390) | (37,607) | 22,929 |
Total comprehensive income (loss) | $ (386,005) | $ 196,192 | $ 335,506 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 187,492 | $ 153,020 |
Short term investments | 96,765 | 135,667 |
Restricted cash | 5,953 | 0 |
Trade accounts receivable | 110,869 | 168,125 |
Other receivables | 3,053 | 21,143 |
Inventories | 126,008 | 130,898 |
Other current assets | 58,000 | 97,894 |
Total current assets | 588,140 | 706,747 |
Property, plant and equipment | ||
Coal lands and mineral rights | 406,095 | 450,539 |
Plant and equipment | 734,194 | 639,399 |
Deferred mine development | 288,693 | 252,108 |
Property, plant and equipment, gross | 1,428,982 | 1,342,046 |
Less accumulated depreciation, depletion and amortization | (421,679) | (357,537) |
Property, plant and equipment, net | 1,007,303 | 984,509 |
Other assets | ||
Equity investments | 71,783 | 105,588 |
Other noncurrent assets | 55,246 | 70,912 |
Total other assets | 127,029 | 176,500 |
Total assets | 1,722,472 | 1,867,756 |
Current Liabilities | ||
Accounts payable | 103,743 | 133,060 |
Accrued expenses and other current liabilities | 155,256 | 157,167 |
Current maturities of debt | 31,097 | 20,753 |
Total current liabilities | 290,096 | 310,980 |
Long-term debt | 477,215 | 290,066 |
Asset retirement obligations | 230,732 | 242,432 |
Accrued pension benefits | 2,879 | 5,476 |
Accrued postretirement benefits other than pension | 94,388 | 80,567 |
Accrued workers' compensation | 244,695 | 215,599 |
Other noncurrent liabilities | 98,906 | 82,100 |
Total liabilities | 1,438,911 | 1,227,220 |
Stockholders' equity | ||
Common stock, $0.01 par value, authorized 300,000 shares, issued 25,235 and 25,220 shares at December 31, 2020 and December 31, 2019, respectively | 253 | 252 |
Paid-in capital | 767,484 | 730,551 |
Retained earnings | 378,906 | 731,425 |
Treasury stock, 10,088 shares at December 31, 2020 and December 31, 2019, respectively, at cost | (827,381) | (827,381) |
Accumulated other comprehensive income (loss) | (35,701) | 5,689 |
Total stockholders' equity | 283,561 | 640,536 |
Total liabilities and stockholders' equity | $ 1,722,472 | $ 1,867,756 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 25,323,000 | 25,220,000 |
Treasury stock, shares (in shares) | 10,088,000 | 10,088,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities | |||
Net income (loss) | $ (344,615) | $ 233,799 | $ 312,577 |
Adjustments to reconcile to cash from operating activities: | |||
Depreciation, depletion and amortization | 121,552 | 111,621 | 130,670 |
Accretion on asset retirement obligations | 19,887 | 20,548 | 27,970 |
Deferred income taxes | 14,430 | 13,501 | 18,701 |
Employee stock-based compensation expense | 17,435 | 21,989 | 17,519 |
Amortization relating to financing activities | 5,599 | 3,691 | 4,179 |
Gain on property insurance recovery related to Mountain Laurel longwall | (23,518) | 0 | |
Loss (Gain) on disposals and divestitures, net | (3,727) | 8,304 | (625) |
Non-cash asset impairment and restructuring | 198,007 | 0 | |
Preference Rights Lease Application settlement income | 0 | (39,000) | |
Changes in: | |||
Receivables | 63,657 | 30,713 | (22,903) |
Inventories | (9,126) | (15,251) | 3,490 |
Income taxes, net | 22,859 | 38,152 | (46,971) |
Coal derivative assets and liabilities, including margin account | (1,045) | 10,117 | (779) |
Accounts payable, accrued expenses and other current liabilities | (46,066) | (28,222) | (14,208) |
Asset retirement obligations | (16,144) | (11,455) | (9,743) |
Pension, postretirement and other postemployment benefits | 588 | (209) | (4,703) |
Other | 41,333 | 21,416 | 2,789 |
Cash provided by operating activities | 61,106 | 419,714 | 417,963 |
Investing activities | |||
Capital expenditures | (285,821) | (266,356) | (95,272) |
Minimum royalty payments | (1,248) | (1,249) | (584) |
Proceeds from disposals and divestitures | 1,007 | 6,135 | 1,083 |
Purchases of short term investments | (120,624) | (205,216) | (143,328) |
Proceeds from sales of short term investments | 158,708 | 233,074 | 136,630 |
Investments in and advances to affiliates, net | (1,549) | (5,499) | (2,481) |
Proceeds from property insurance recovery related to Mountain Laurel longwall | 23,518 | 0 | |
Cash used in investing activities | (226,009) | (239,111) | (103,952) |
Financing activities | |||
Payments on term loan | (3,000) | (3,000) | (3,000) |
Proceeds from equipment financing | 53,611 | 0 | |
Proceeds from tax exempt bonds | 53,090 | 0 | |
Proceeds from convertible debt | 155,250 | 0 | |
Purchase of capped call related to convertible debt | (17,543) | 0 | |
Net payments on other debt | (15,922) | (5,373) | (6,077) |
Debt financing costs | (9,718) | 0 | (1,257) |
Dividends paid | (8,245) | (30,220) | (31,269) |
Purchases of treasury stock | 0 | (244,998) | (280,871) |
Payments for taxes related to net share settlement of equity awards | (2,195) | (8,961) | |
Other | 0 | 32 | (202) |
Cash provided by (used in) financing activities | 205,328 | (292,520) | (322,676) |
Increase (decrease) in cash and cash equivalents, including restricted cash | 40,425 | (111,917) | (8,665) |
Cash and cash equivalents, including restricted cash, beginning of period | 153,020 | 264,937 | 273,602 |
Cash and cash equivalents, including restricted cash, end of period | 193,445 | 153,020 | 264,937 |
SUPPLEMENTAL CASH FLOW INFORMATION | |||
Cash paid during the period for interest | 19,602 | 16,627 | 17,493 |
Restricted cash | 5,953 | 0 | 215 |
Cash refunded during the period for income taxes, net | $ 37,535 | $ 52,272 | $ 24,330 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Common Stock | Paid-in Capital | Retained Earnings | Treasury Stock, at cost | Accumulated Other Comprehensive Income (Loss) | Total |
Beginning Balance at Dec. 31, 2017 | $ 250 | $ 700,125 | $ 247,232 | $ (302,109) | $ 20,367 | $ 665,865 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends on common shares | (32,143) | (32,143) | ||||
Total comprehensive income (loss) | 312,577 | 22,929 | 335,506 | |||
Employee stock-based compensation | 17,519 | 17,519 | ||||
Purchase of common stock under share repurchase program | (281,774) | (281,774) | ||||
Common stock withheld related to net share settlement of equity awards | (161) | (161) | ||||
Warrants exercised | 9 | 9 | ||||
Ending Balance at Dec. 31, 2018 | 250 | 717,492 | 527,666 | (583,883) | 43,296 | 704,821 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends on common shares | (30,040) | (30,040) | ||||
Total comprehensive income (loss) | 233,799 | (37,607) | 196,192 | |||
Employee stock-based compensation | 21,989 | 21,989 | ||||
Issuance of shares of common stock under long-term incentive plan | 2 | 2 | ||||
Purchase of common stock under share repurchase program | (243,498) | (243,498) | ||||
Common stock withheld related to net share settlement of equity awards | (8,962) | (8,962) | ||||
Warrants exercised | 32 | 32 | ||||
Ending Balance at Dec. 31, 2019 | 252 | 730,551 | 731,425 | (827,381) | 5,689 | 640,536 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends on common shares | (7,904) | (7,904) | ||||
Total comprehensive income (loss) | (344,615) | (41,390) | (386,005) | |||
Employee stock-based compensation | 17,435 | 17,435 | ||||
Issuance of Convertible Debt | 39,237 | 39,237 | ||||
Purchase of capped call related to convertible debt | (17,543) | (17,543) | ||||
Common stock withheld related to net share settlement of equity awards | 1 | (2,196) | (2,195) | |||
Ending Balance at Dec. 31, 2020 | $ 253 | $ 767,484 | $ 378,906 | $ (827,381) | $ (35,701) | $ 283,561 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Parenthetical) | 12 Months Ended |
Dec. 31, 2019shares | |
Statement of Stockholders' Equity [Abstract] | |
Purchase of shares of common stock under share repurchase program | 2,872,548 |
Issuance of shares of common stock under long-term incentive plan (in shares) | 172,720 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2020 | |
Basis of Presentation | |
Basis of Presentation | 1. Basis of Presentation The accompanying consolidated financial statements include the accounts of Arch Resources, Inc. (“Arch Resources”) and its subsidiaries and controlled entities (the “Company”). Unless the context indicates otherwise, the terms “Arch” and the “Company” are used interchangeably in this Annual Report on Form 10-K. The Company’s primary business is the production of metallurgical and thermal coal from underground and surface mines located throughout the United States, for sale to steel producers, utility companies, and industrial accounts both in the United States and around the world. The Company currently operates mining complexes in West Virginia, Wyoming and Colorado. All subsidiaries are wholly-owned. Intercompany transactions and accounts have been eliminated in consolidation. Effective May 15, 2020, Arch Coal, Inc. announced that its name changed to Arch Resources, Inc. |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies | |
Accounting Policies | 2. Accounting Policies The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for financial reporting and U.S. Securities and Exchange Commission regulations. Accounting Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenues and expenses in the accompanying consolidated financial statements and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents are stated at cost. Cash equivalents consist of highly-liquid investments with an original maturity of three months or less when purchased and investments in commercial paper which the Company classifies as cash and cash equivalents. Restricted Cash Amounts included in restricted cash represent cash held in trust related to the Tax Exempt Bonds. Refer to Note 14 to the Consolidated Financial Statements, “Debt and Financing Arrangements” for further disclosures related to the Company’s Tax Exempt Bonds. Accounts Receivable Accounts receivable are recorded at amounts that are expected to be collected, based on past collection history, the economic environment and specified risks identified in the receivables portfolio. Inventories Coal and supplies inventories are valued at the lower of average cost or market. Coal inventory costs include labor, supplies, equipment costs, transportation costs incurred prior to the transfer of title to customers and operating overhead. The costs of removing overburden, called stripping costs, incurred during the production phase of the mine are considered variable production costs and are included in the cost of the coal extracted during the period the stripping costs are incurred. Investments and Membership Interests in Joint Ventures Investments and membership interests in joint ventures are accounted for under the equity method of accounting if the Company has the ability to exercise significant influence, but not control, over the entity. The Company’s share of the entity’s income or loss is reflected in “Other operating income, net” in the Consolidated Statements of Operations. Information about investment activity is provided in Note 11 to the Consolidated Financial Statements, “Equity Method Investments and Membership Interests in Joint Ventures.” Investments in debt securities and marketable equity securities that do not qualify for equity method accounting are classified as available-for-sale and are recorded at their fair values. Unrealized gains and losses on these investments are recorded in other comprehensive income or loss. A decline in the value of an investment that is considered other-than-temporary would be recognized in operating expenses. Exploration Costs Costs to acquire permits for exploration activities are capitalized. Drilling and other costs related to locating coal deposits and evaluating the economic viability of such deposits are expensed as incurred. Prepaid Royalties Leased mineral rights are often acquired through royalty payments. When royalty payments represent prepayments recoupable against royalties owed on future revenues from the underlying coal, they are recorded as a prepaid asset, with amounts expected to be recouped within one year classified as current. When coal from these leases is sold, the royalties owed are recouped against the prepayment and charged to cost of sales. An impairment charge is recognized for prepaid royalties that are not expected to be recouped. Property, Plant and Equipment Plant and Equipment Plant and equipment were recorded at fair value at emergence during fresh start accounting; subsequent purchases of property, plant and equipment have been recorded at cost. Interest costs incurred during the construction period for major asset additions are capitalized. The Company capitalized $11.9 million and $2.9 million of interest costs during years ended December 31, 2020 and 2019, respectively. Expenditures that extend the useful lives of existing plant and equipment or increase the productivity of the asset are capitalized. The cost of maintenance and repairs that do not extend the useful life or increase the productivity of the asset is expensed as incurred. Preparation plants and loadouts are depreciated using the units-of-production method over the estimated recoverable reserves, subject to a minimum level of depreciation. Other plant and equipment are depreciated principally using the straight-line method over the estimated useful lives of the assets, limited by the remaining life of the mine. The useful lives of mining equipment, including longwalls, draglines and shovels, range from 1 to 16 years. The useful lives of buildings and leasehold improvements generally range from 3 to 20 years. Deferred Mine Development Costs of developing new mines or significantly expanding the capacity of existing mines are capitalized and amortized using the units-of-production method over the estimated recoverable reserves that are associated with the property being benefited. Costs may include construction permits and licenses; mine design; construction of access roads, shafts, slopes and main entries; and removing overburden to access reserves in a new pit. Additionally, deferred mine development includes the asset cost associated with asset retirement obligations. Coal sales revenue related to incidental production during the development phase will be recorded as coal sales revenue with an offset to cost of coal sales based on the estimated cost per ton sold for the mine when the asset is in place for its intended use. Coal Lands and Mineral Rights Rights to coal reserves may be acquired directly through governmental or private entities. A significant portion of the Company’s coal reserves are controlled through leasing arrangements. Lease agreements are generally long-term in nature (original terms range from 10 to 50 years), and substantially all of the leases contain provisions that allow for automatic extension of the lease term providing certain requirements are met. Leases of mineral reserves and related land leases are exempt from the provisions of the leasing standard. The net book value of the Company’s coal interests was $290.3 million and $360.9 million at December 31, 2020 and 2019, respectively. Payments to acquire royalty lease agreements and lease bonus payments are capitalized as a cost of the underlying mineral reserves and depleted over the life of proven and probable reserves. Coal lease rights are depleted using the units-of-production method, and the rights are assumed to have no residual value. The Company currently does not have any future lease bonus payments. Depreciation, depletion and amortization The depreciation, depletion and amortization related to long-lived assets is reflected in the Consolidated Statements of Operations as a separate line item. No depreciation, depletion or amortization is included in any other operating cost categories. Impairment If facts and circumstances suggest that the carrying value of a long-lived asset or asset group may not be recoverable, the asset or asset group is reviewed for potential impairment. If this review indicates that the carrying amount of the asset will not be recoverable through projected undiscounted cash flows generated by the asset and its related asset group over its remaining life, then an impairment loss is recognized by reducing the carrying value of the asset to its fair value. The Company may, under certain circumstances, idle mining operations in response to market conditions or other factors. Because an idling is not a permanent closure, it is not considered an automatic indicator of impairment. For information on Impairment, see Note 5 to the Consolidated Financial Statements, “Asset impairment and restructuring.” Deferred Financing Costs The Company capitalizes costs incurred in connection with new borrowings, the establishment or enhancement of credit facilities and the issuance of debt securities. These costs are amortized as an adjustment to interest expense over the life of the borrowing or term of the credit facility using the interest method. Debt issuance costs related to a recognized liability are presented in the balance sheet as a direct reduction from the carrying amount of that liability whereas debt issuance costs related to a credit facility with no balance outstanding are shown as an asset. The unamortized balance of deferred financing costs shown as an asset was $1.9 million at December 31, 2020, with $0.7 million classified as current; the unamortized balance of deferred financing costs shown as an asset at December 31, 2019 was $3.0 million with $2.0 million classified as current. The current amounts are classified within “Other current assets” and the noncurrent amounts are classified within “Other noncurrent assets.” For information on the unamortized balance of deferred financing fees related to outstanding debt, see Note 14 to the Consolidated Financial Statements, “Debt and Financing Arrangements.” Revenue Recognition Revenues include sales to customers of coal produced at Company operations and coal purchased from third parties. The Company recognizes revenue at the time risk of loss passes to the customer at contracted amounts. Transportation costs are included in cost of sales and amounts billed by the Company to its customers for transportation are included in revenues. Other Operating Income, net Other operating income, net in the accompanying Consolidated Statements of Operations reflects income and expense from sources other than physical coal sales, including: bookouts, or the practice of offsetting purchase and sale contracts for shipping convenience purposes; contract settlements; royalties earned from properties leased to third parties; income from equity investments (Note 11, “Equity Method Investments and Membership Interests in Joint Ventures”); non-material gains and losses from divestitures and dispositions of assets; and realized gains and losses on derivatives that do not qualify for hedge accounting and are not held for trading purposes (Note 12, “Derivatives”); and land management expenses. Asset Retirement Obligations The Company’s legal obligations associated with the retirement of long-lived assets are recognized at fair value at the time the obligations are incurred. Accretion expense is recognized through the expected settlement date of the obligation. Obligations are incurred at the time development of a mine commences for underground and surface mines or construction begins for support facilities, refuse areas and slurry ponds. The obligation’s fair value is determined using a discounted cash flow technique and is based upon permit requirements and various estimates and assumptions that would be used by market participants, including estimates of disturbed acreage, reclamation costs and assumptions regarding equipment productivity. Upon initial recognition of a liability, a corresponding amount is capitalized as part of the carrying value of the related long-lived asset. The Company reviews its asset retirement obligation at least annually and makes necessary adjustments for permit changes as granted by state authorities and for revisions of estimates of the amount and timing of costs. For ongoing operations, adjustments to the liability result in an adjustment to the corresponding asset. For idle operations, adjustments to the liability are recognized as income or expense in the period the adjustment is recorded. Any difference between the recorded obligation and the actual cost of reclamation is recorded in profit or loss in the period the obligation is settled. See additional discussion in Note 16 to the Consolidated Financial Statements, “Asset Retirement Obligations.” Loss Contingencies The Company accrues for cost related to contingencies when a loss is probable and the amount is reasonably determinable. Disclosure of contingencies is included in the financial statements when it is at least reasonably possible that a material loss or an additional material loss in excess of amounts already accrued may be incurred. The amount accrued represents the Company’s best estimate of the loss, or, if no best estimate within a range of outcomes exists, the minimum amount in the range. Derivative Instruments The Company generally utilizes derivative instruments to manage exposures to commodity prices and interest rate risk on long-term debt. Additionally, the Company may hold certain coal derivative instruments for trading purposes. Derivative financial instruments are recognized on the balance sheet at fair value. Certain coal contracts may meet the definition of a derivative instrument, but because they provide for the physical purchase or sale of coal in quantities expected to be used or sold by the Company over a reasonable period in the normal course of business, they are not recognized on the balance sheet. Certain derivative instruments are designated as the hedge instrument in a hedging relationship. In a fair value hedge, the Company hedges the risk of changes in the fair value of a firm commitment, typically a fixed-price coal sales contract. Changes in both the hedged firm commitment and the fair value of a derivative used as a hedge instrument in a fair value hedge are recorded in earnings. In a cash flow hedge, the Company hedges the risk of changes in future cash flows related to the underlying item being hedged. Changes in the fair value of the derivative instrument used as a hedge instrument in a cash flow hedge are recorded in other comprehensive income or loss. Amounts in other comprehensive income or loss are reclassified to earnings when the hedged transaction affects earnings and are classified in a manner consistent with the transaction being hedged. The Company formally documents the relationships between hedging instruments and the respective hedged items, as well as its risk management objectives for hedge transactions. The Company evaluates the effectiveness of its hedging relationships both at the hedge’s inception and on an ongoing basis. Any ineffective portion of the change in fair value of a derivative instrument used as a hedge instrument in a fair value or cash flow hedge is recognized immediately in earnings. The ineffective portion is based on the extent to which exact offset is not achieved between the change in fair value of the hedge instrument and the cumulative change in expected future cash flows on the hedged transaction from inception of the hedge in a cash flow hedge or the change in the fair value. Ineffectiveness was insignificant for the periods disclosed within. See Note 12 to the Consolidated Financial Statements, “Derivatives” for further disclosures related to the Company’s derivative instruments. Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly hypothetical transaction between market participants at a given measurement date. Valuation techniques used must maximize the use of observable inputs and minimize the use of unobservable inputs. See Note 17 to the Consolidated Financial Statements, “Fair Value Measurements” for further disclosures related to the Company’s recurring fair value estimates. Income Taxes Deferred income taxes are provided for temporary differences arising from differences between the financial statement and tax basis of assets and liabilities existing at each balance sheet date using enacted tax rates anticipated to be in effect when the related taxes are expected to be paid or recovered. A valuation allowance is established if it is more likely than not that a deferred tax asset will not be realized. Management reassesses the ability to realize its deferred tax assets annually in the fourth quarter or when circumstances indicate that the ability to realize deferred tax assets has changed. In determining the need for a valuation allowance, the Company considers projected realization of tax benefits based on expected levels of future taxable income, available tax planning strategies and the reversal of temporary differences. Benefits from tax positions that are uncertain are not recognized unless the Company concludes that it is more likely than not that the position would be sustained in a dispute with taxing authorities, should the dispute be taken to the court of last resort. The Company would measure any such benefit at the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement with taxing authorities. See Note 15 to the Consolidated Financial Statements, “Taxes” for further disclosures about income taxes. Benefit Plans The Company has non-contributory defined benefit pension plans covering most of its salaried and hourly employees. On January 1, 2015 the Company’s cash balance and excess pension plans were amended to freeze new service credits for any new or active employees. The Company also currently provides certain postretirement medical and life insurance coverage for eligible employees. The cost of providing these benefits is determined on an actuarial basis and accrued over the employees’ period of active service. The Company recognizes the overfunded or underfunded status of these plans as determined on an actuarial basis on the balance sheet and the changes in the funded status are recognized in other comprehensive income. The Company amortizes actuarial gains and losses over the remaining service attribution periods of the employees using the corridor method. See Note 21 to the Consolidated Financial Statements, “Employee Benefit Plans” for additional disclosures relating to these obligations. Stock-Based Compensation The compensation cost of all stock-based awards is determined based on the grant-date fair value of the award, and is recognized over the requisite service period. The grant-date fair value of option awards and restricted stock awards with a market condition is determined using a Monte Carlo simulation. Compensation cost for an award with performance conditions is accrued if it is probable that the conditions will be met. The Company accounts for forfeitures as they occur. See further discussion in Note 19 to the Consolidated Financial Statements, “Stock-Based Compensation and Other Incentive Plans.” Recently Adopted Accounting Guidance In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments” and also issued subsequent amendments to the initial guidance under ASU 2018-19, ASU 2019-04 and ASU 2019- 05. The standard modifies the measurement approach for credit losses on financial instruments, including trade receivables, from an incurred loss method to a current expected credit loss method, otherwise known as “CECL.” The standard requires the measurement of expected credit losses to be based on relevant information, including historical experience, current conditions and a forecast that is supportable. The standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years; early adoption is permitted. The standard must be adopted by applying a cumulative adjustment to retained earnings. The Company adopted the standard in the first quarter of 2020, with minimal impact to the Company’s financial results. In August 2018, the FASB issued ASU 2018- 13, “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.” The primary focus of ASU 2018-13 is to improve the effectiveness of the disclosures for fair value measurements by requiring public entities to disclose certain new information while modifying some existing disclosure requirements. The FASB issued this ASU as part of its broader disclosure framework project, which aims to improve the effectiveness of disclosures in the notes to the financial statements by focusing on requirements that clearly communicate the most important information to users of the financial statements. The ASU is effective for public companies for fiscal years beginning after December 15, 2019, and interim periods therein with early adoption permitted. The Company adopted with no impact to the Company’s financial statements. In August 2018, the FASB issued ASU 2018-14, “Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715- 20), Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans.” ASU 2018-14 makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension and postretirement benefit plants. The new guidance eliminates requirements for certain disclosures that are no longer considered cost beneficial and adds new ones that the FASB considers pertinent. The FASB issued this ASU as part of its broader disclosure framework project, which aims to improve the effectiveness of disclosures in the notes to the financial statements by focusing on requirements that clearly communicate the most important information to users of the financial statements. The ASU is effective for public companies for fiscal years beginning after December 15, 2020, and interim periods therein with early adoption permitted. The Company adopted with minimal impact to the Company’s financial statements. In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." The amendments provide optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. We are currently evaluating our contracts and the optional expedients provided by the new standard. Recent Accounting Guidance Issued Not Yet Effective In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes.” ASU 2019-12 eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The ASU is effective for public companies for fiscal years beginning after December 15, 2020, and interim periods therein with early adoption permitted. The Company is reviewing the provisions of the standard but does not expect a significant impact to the Company's financial statements. In August 2020, the FASB issued ASU 2020-06 , Derivatives and Hedging Derivatives and Hedging—Contracts in Entity’s Own Equity |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) | 3. Accumulated Other Comprehensive Income (Loss) The following items are included in accumulated other comprehensive income: Pension, Postretirement Accumulated and Other Post- Other Derivative Employment Available-for- Comprehensive Instruments Benefits Sale Securities Income (loss) (In thousands) January 1, 2019 $ 3,328 $ 40,311 $ (343) $ 43,296 Unrealized gains (losses) 4,648 (27,692) 508 (22,536) Amounts reclassified from accumulated other comprehensive income (loss) (10,540) (4,346) (185) (15,071) Balance at December 31, 2019 $ (2,564) $ 8,273 $ (20) $ 5,689 Unrealized losses (3,076) (38,533) (66) (41,675) Amounts reclassified from accumulated other comprehensive income (loss) 1,749 (1,199) (265) 285 Balance at December 31, 2020 $ (3,891) $ (31,459) $ (351) $ (35,701) The following amounts were reclassified out of accumulated other comprehensive income (loss) during the respective periods: December 31, December 31, Line Item in the Details About AOCI Components 2020 2019 Statements of Operations Coal hedges $ 392 $ 9,480 Revenues Interest rate hedges (2,141) 1,060 Interest expense — — Provision for (benefit from) income taxes $ (1,749) $ 10,540 Net of tax Pension, postretirement and other post-employment benefits Amortization of actuarial gains (losses), net 1 $ 191 $ 3,020 Non-service related pension and postretirement benefit (costs) credits Amortization of prior service credits 112 — Non-service related pension and postretirement benefit (costs) credits Pension settlement 896 1,326 Non-service related pension and postretirement benefit (costs) credits $ 1,199 $ 4,346 Total before tax — — Provision for (benefit from) income taxes $ 1,199 $ 4,346 Net of tax Available-for-sale securities 2 $ 265 $ 185 Interest and investment income — — Provision for (benefit from) income taxes $ 265 $ 185 Net of tax 1 2 |
Divestitures
Divestitures | 12 Months Ended |
Dec. 31, 2020 | |
Divestitures | |
Divestitures | 4. Divestitures In December 2020, the Company sold its Viper mine in the Illinois basin to Knight Hawk Holdings, LLC in exchange for an additional 1.5% ownership interest in Knight Hawk. The sale resulted in an increase in the Company’s ownership to million was recorded which is reflected within the line item, “(Gain) loss on divestitures,” on the Consolidated Statements of Operations. See Note 11 to the Consolidated Financial Statements, “Equity Method Investments and Membership Interests in Joint Venture” for further disclosures about the divestiture. During the second quarter of 2020, various Dal-Tex and Briar Branch properties in West Virginia were sold to Condor Holdings, LLC. On December 13, 2019, the Company sold Coal-Mac LLC, an operating mine complex within the Company’s Other Thermal segment to Condor Holdings, LLC. The Company received $2.3 million of proceeds offset by $0.2 million in closing fees; and recorded a loss of $9.0 million which is reflected within the line, “(Gain) loss on divestitures,” on the Consolidated Statements of Operations. On September 14, 2017, the Company sold Lone Mountain Processing, LLC and two idled mining companies, Cumberland River Coal LLC and Powell Mountain Energy LLC to Revelation Energy LLC, and recorded a gain on the transaction in that year of $21.3 million. Under the terms of the purchase agreement, Revelation assumed certain traumatic workers compensation claims and pneumoconiosis (occupational disease) benefits. On July 1, 2019, Blackjewel LLC and four affiliates, including Revelation Energy LLC filed for Chapter 11 bankruptcy. As a result of the bankruptcy, the Company recorded a $4.3 million charge for these claims as of September 30, 2019, which is reflected within the line, “(Gain) loss on divestitures,” on the Consolidated Statements of Operations. |
Asset impairment and restructur
Asset impairment and restructuring | 12 Months Ended |
Dec. 31, 2020 | |
Asset impairment and restructuring | |
Asset impairment and restructuring | 5. Asset impairment and restructuring The following table summarizes the amounts reflected on the line “Asset impairment and restructuring” in the Consolidated Statements of Operations: Year Ended December 31, Description 2020 (In thousands) Coal lands and mineral rights $ 33,197 Plant and equipment 43,197 Deferred development 76,807 Parts and Supplies 8,639 Equity Investment 36,167 Severance Pay - VSP 13,373 Other 10,000 $ 221,380 During the third quarter of 2020, the Company determined that indicators of impairment existed with respect to certain of its thermal long-lived assets or asset groups. The Company’s thermal coal segments have experienced reduced demand as a result of sustained low natural gas pricing, reduced utilization and retirement of coal-fired power plants, the increased use of renewable energy sources, and the impact of COVID-19. The reduced demand has led to lower production levels, higher unit costs, and lower realized prices, which have contributed to operating losses at certain of the mine complexes. Further, on September 29, 2020 the U.S. District Court upheld the FTC’s decision to block the Company’s proposed joint venture. These conditions have resulted in changes to the Company’s expectations for projected future volume levels and the overall longevity of the mines. As a result, the Company recorded impairment charges during the three and nine months ended September 30, 2020 of $51.8 million related to the Coal Creek Mine within the Powder River Basin Mining segment, $33.5 million related to the Viper Mine within the Other Thermal Segment, $41.6 million related to the West Elk Mine within the Other Thermal segment and $36.2 million related to the Company’s equity method investment in Knight Hawk Holdings, LLC. The impairment charges were calculated based upon discounted cash flows that were based on estimates of future sales volumes, coal prices for unpriced volumes, production costs and a risk-adjusted cost of capital. These estimates generally constitute unobservable Level 3 inputs under the fair value hierarchy. In the fourth quarter of 2020, the Company recorded additional charges including $32.8 million related to the Company’s Coal Creek Mine due to accelerating the mine closing date and the associated reclamation work to be performed. Additionally, the Company recorded a $10.0 million charge related to a land lease obligation from a prior equity investment. The Company recorded $13.4 million of employee severance expense related to a voluntary separation plan during the year ended December 31, 2020. During the first and second quarters of 2020, |
Joint Venture with Peabody Ener
Joint Venture with Peabody Energy | 12 Months Ended |
Dec. 31, 2020 | |
Investment In Joint Venture [Abstract] | |
Joint Venture with Peabody Energy | 6. Joint Venture with Peabody Energy On June 18, 2019, the Company entered into a definitive implementation agreement (the “Implementation Agreement”) with Peabody Energy Corporation (“Peabody”), to establish a joint venture that would have combined the respective Powder River Basin and Colorado mining operations of Arch Resources and Peabody. Pursuant to the terms of the Implementation Agreement, the Company would have held a 33.5% economic interest, and Peabody would have held a 66.5% economic interest in the joint venture. On February 26, 2020, the Federal Trade Commission (“FTC”) filed an administrative complaint challenging the proposed joint venture alleging the transaction would eliminate competition between Arch Resources and Peabody, the two major competitors in the market for thermal coal in the Southern Powder River Basin and the two largest coal-mining companies in the United States. The FTC filed a temporary restraining order and preliminary injunction in the U.S. District Court for the Eastern District of Missouri, to maintain the status quo pending an administrative trial on the merits. Between July 14 and July 23, 2020, the U.S. District Court conducted an evidentiary hearing, during which both sides further presented their evidence and arguments. On September 29, 2020, the U.S. District Court upheld the FTC’s decision to block the joint venture. Subsequently, the Company and Peabody jointly terminated the joint venture. The Company incurred expenses of $16.1 million during the year ended December 31, 2020 associated with the regulatory approval process related to the joint venture. Costs of $13.8 million were incurred for the year ended December 31, 2019. |
Gain on Property Insurance Reco
Gain on Property Insurance Recovery Related to Mountain Laurel Longwall | 12 Months Ended |
Dec. 31, 2020 | |
Gain on Property Insurance Recovery Related to Mountain Laurel Longwall | |
Gain on Property Insurance Recovery Related to Mountain Laurel Longwall | 7. Gain on Property Insurance Recovery Related to Mountain Laurel Longwall The Company recorded a $23.5 million gain related to a property insurance recovery on the longwall shields at its Mountain Laurel operation. As a result of geologic conditions in the final longwall panel, Mountain Laurel was unable to recover 123 of the longwall system’s 176 hydraulic shields. |
Preference Rights Lease Applica
Preference Rights Lease Application Settlement Income | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies | |
Preference Rights Lease Application Settlement Income | 8. Preference Rights Lease Application Settlement Income The Company recorded a $39.0 million gain during the third quarter of 2019 related to a settlement with the United States Department of Interior over a long-standing dispute, dating back to the 1970’s, on the valuation and disposition of Preference Rights Lease Application that Arch controlled in northwestern New Mexico with a joint venture partner. As part of the settlement, Arch received $67.0 million in the form of royalty credits on its federal coal leases which will be used to settle 50% of the Company’s monthly royalty obligations. Additionally, as part of the settlement, Arch made a one-time payment of $27.0 million during October 2019 to its’ partner in the venture for its ownership interest in the underlying mineral reserves, as well as paying $1.0 million in closing fees. The Company utilized $36.0 million of its royalty credits during the year ended December 31, 2020. The Company realized a credit for million during the year ended December 31, 2019. The remaining balance outstanding at December 31, 2020 is |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventories | |
Inventories | 9. Inventories Inventories consist of the following: December 31, December 31, 2020 2019 (In thousands) Coal $ 49,436 $ 46,815 Repair parts and supplies 76,572 84,083 $ 126,008 $ 130,898 The repair parts and supplies are stated net of an allowance for slow-moving and obsolete inventories of $0.6 million at December 31, 2020 and $2.2 million at December 31, 2019. |
Investments in Available-for-Sa
Investments in Available-for-Sale Securities | 12 Months Ended |
Dec. 31, 2020 | |
Investments in Available-for-Sale Securities | |
Investments in Available-for-Sale Securities | 10. Investments in Available-for-Sale Securities The Company has invested in marketable debt securities, primarily highly liquid U.S Treasury securities and investment grade corporate bonds. These investments are held in the custody of a major financial institution. These securities are classified as available-for-sale securities and, accordingly, the unrealized gains and losses are recorded through other comprehensive income. The Company’s investments in available-for-sale marketable securities are as follows: December 31, 2020 Gross Allowance Unrealized for Credit Fair Cost Basis Gains Losses Losses Value (In thousands) Available-for-sale: U.S. government and agency securities $ 57,299 $ 11 $ (86) $ — $ 57,224 Corporate notes and bonds 39,817 1 (277) — 39,541 Total Investments $ 97,116 $ 12 $ (363) $ — $ 96,765 December 31, 2019 Gross Allowance Unrealized for Credit Fair Cost Basis Gains Losses Losses Value (In thousands) Available-for-sale: U.S. government and agency securities $ 35,044 $ 1 $ (16) $ — $ 35,029 Corporate notes and bonds 100,643 200 (205) — 100,638 Total Investments $ 135,687 $ 201 $ (221) $ — $ 135,667 The aggregate fair value of investments with unrealized losses that had been owned for less than a year was $45.3 million and $72.3 million at December 31, 2020 and 2019, respectively. The aggregate fair value of investments with unrealized losses that have been owned for over a year was $8.1 million and $0.0 million at December 31, 2020 and 2019, respectively. The debt securities outstanding at December 31, 2020 have maturity dates ranging from the first quarter of 2021 through the second quarter of 2022. The Company classifies its investments as current based on the nature of the investments and their availability to provide cash for use in current operations, if needed. |
Equity Method Investments and M
Equity Method Investments and Membership Interests in Joint Ventures | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Membership Interests in Joint Ventures | |
Equity Method Investments and Membership Interests in Joint Ventures | 11. Equity Method Investments and Membership Interests in Joint Ventures The Company accounts for its investments and membership interests in joint ventures under the equity method of accounting if the Company has the ability to exercise significant influence, but not control, over the entity. Equity method investments are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the investments may not be recoverable. Below are the equity method investments reflected in the consolidated balance sheets: Knight (In thousands) Hawk DTA Total December 31, 2018 $ 90,021 $ 14,655 $ 104,676 Sale of investment in affiliates (1,879) — (1,879) Advances to (distributions from) affiliates, net (5,884) 5,500 (384) Equity in comprehensive income (loss) 7,953 (4,778) 3,175 December 31, 2019 $ 90,211 $ 15,377 $ 105,588 Advances to (distributions from) affiliates, net (4,235) 1,549 (2,686) Equity in comprehensive income (loss) 4,576 (1,228) 3,348 Additional interest in Knight Hawk 1,700 — 1,700 Impairment of equity investment (36,167) — (36,167) December 31, 2020 $ 56,085 $ 15,698 $ 71,783 In December 2020, the Company sold its Viper mine to Knight Hawk Holdings, LLC (“Knight Hawk”) in exchange for an additional 1.5% ownership interest in Knight Hawk. The sale resulted in an increase in the Company’s ownership to 49.5%. In December 2019, the Company sold 1% of its ownership interest in Knight Hawk to a third party for $2.0 million. The Company holds a 35% general partnership interest in Dominion Terminal Associates LLP (“DTA”), which is accounted for under the equity method. DTA operates a ground storage-to-vessel coal transloading facility in Newport News, Virginia for use by the partners. Under the terms of a throughput and handling agreement with DTA, each partner is charged its share of cash operating and debt-service costs in exchange for the right to use the facility’s loading capacity and is required to make periodic cash advances to DTA to fund such costs. The Company is not required to make any future contingent payments related to development financing for any of its equity investees. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2020 | |
Derivatives | |
Derivatives | 12. Derivatives Interest rate risk management The Company has entered into interest rate swaps to reduce the variability of cash outflows associated with interest payments on its variable rate term loan. These swaps have been designated as cash flow hedges. For additional information on these arrangements, see Note 14 to the Consolidated Financial Statements, “Debt and Financing Arrangements.” Diesel fuel price risk management The Company is exposed to price risk with respect to diesel fuel purchased for use in its operations. The Company anticipates purchasing approximately 30 to 35 million gallons of diesel fuel for use in its operations during 2021. To protect the Company’s cash flows from increases in the price of diesel fuel for its operations, the Company uses forward physical diesel purchase contracts and purchased heating oil call options. At December 31, 2020, the Company had no heating oil call options outstanding. These positions are not designated as hedges for accounting purposes, and therefore, changes in the fair value are recorded immediately to earnings. Coal risk management positions The Company may sell or purchase forward contracts, swaps and options in the over-the-counter coal market in order to manage its exposure to coal prices. The Company has exposure to the risk of fluctuating coal prices related to forecasted sales or purchases of coal or to the risk of changes in the fair value of a fixed price physical sales contract. Certain derivative contracts may be designated as hedges of these risks. At December 31, 2020, the Company held derivatives for risk management purposes that are expected to settle in the following years: (Tons in thousands) 2021 2022 Total Coal sales 193 — 193 Coal purchases 82 — 82 The Company may also enter into natural gas options to protect the Company from decreases in natural gas prices, which could impact thermal coal demand. These options are not designated as hedges. Coal trading positions The Company may sell or purchase forward contracts, swaps and options in the over-the-counter coal market for trading purposes. The Company is exposed to the risk of changes in coal prices on the value of its coal trading portfolio. The unrecognized gains of $0.3 million in the trading portfolio are expected to be realized in 2021. Tabular derivatives disclosures The Company has master netting agreements with all of its counterparties which allow for the settlement of contracts in an asset position with contracts in a liability position in the event of default or termination. Such netting arrangements reduce the Company’s credit exposure related to these counterparties. For classification purposes, the Company records the net fair value of all the positions with a given counterparty as a net asset or liability in the consolidated balance sheets. The amounts shown in the table below represent the fair value position of individual contracts, and not the net position presented in the accompanying Consolidated Balance Sheets. The fair value and location of derivatives reflected in the accompanying Consolidated Balance Sheets are as follows: December 31, 2020 December 31, 2019 Fair Value of Derivatives Asset Liability Asset Liability (In thousands) Derivative Derivative Derivative Derivative Derivatives Designated as Hedging Instruments Coal $ — $ — $ 1,351 $ (962) Derivatives Not Designated as Hedging Instruments Heating oil -- diesel purchases 237 — 133 (112) Coal -- held for trading purposes 1,914 (1,595) 18,467 (18,940) Coal -- risk management 1,094 (804) 11,662 (5,856) Natural gas — — 3 — Total $ 3,245 $ (2,399) $ 30,265 $ (24,908) Total derivatives $ 3,245 $ (2,399) $ 31,616 $ (25,870) Effect of counterparty netting (2,392) 2,392 (25,759) 25,759 Net derivatives as classified in the balance sheets $ 853 $ (7) $ 846 $ 5,857 $ (111) $ 5,746 December 31, December 31, 2020 2019 Net derivatives as reflected on the balance sheets (in thousands) Heating oil and coal Other current assets $ 853 $ 5,857 Coal Accrued expenses and other current liabilities (7) (111) $ 846 $ 5,746 The Company had a current asset representing cash collateral posted to a margin account for derivative positions primarily related to coal derivatives of $1.4 million at December 31, 2020 and a current liability of $4.4 million at December 31, 2019 representing cash collateral owed to a margin account, respectively. These amounts are not included with the derivatives presented in the table above and are included in “accrued expenses and other current liabilities” and “other current assets” in the accompanying Consolidated Balance Sheets. The effects of derivatives on measures of financial performance are as follows: Derivatives used in Cash Flow Hedging Relationships (in thousands) For the noted periods, Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) Year Ended Year Ended Year Ended December 31, December 31, December 31, 2020 2019 2018 Coal sales (1) $ 500 $ 10,249 $ (7,517) Coal purchases (2) (496) (1,231) 1,348 $ 4 $ 9,018 $ (6,169) Gains (Losses) Reclassified from Other Comprehensive Income into Income (Effective Portion) Year Ended Year Ended Year Ended December 31, December 31, December 31, 2020 2019 2018 Coal sales $ (1,850) $ 10,167 $ (10,912) Coal purchases 1,458 (686) 2,707 $ (392) $ 9,481 $ (8,205) No ineffectiveness or amounts excluded from effectiveness testing relating to the Company’s cash flow hedging relationships were recognized in the results of operations in the respective periods. Derivatives Not Designated as Hedging Instruments (in thousands) For the noted periods, Gain (Loss) Recognized Year Ended Year Ended Year Ended December 31, December 31, December 31, 2020 2019 2018 Coal trading— realized and unrealized (3) $ 222 $ (1,013) $ 135 Coal risk management— unrealized (3) (5,517) 19,713 (9,530) Natural gas trading — realized and unrealized (3) 76 (99) 277 Change in fair value of coal derivatives and coal trading activities, net total $ (5,219) $ 18,601 $ (9,118) Coal risk management — realized (4) $ 9,258 $ 487 $ (8,734) Heating oil — diesel purchases (4) $ (558) $ (2,291) $ (505) Location in income statement: (1) — Revenues (2) — Cost of sales (3) — Change in fair value of coal derivatives and coal trading activities, net (4) — Other operating income, net |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Expenses and Other Current Liabilities | |
Accrued Expenses and Other Current Liabilities | 13. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following: December 31, December 31, 2020 2019 (In thousands) Payroll and employee benefits $ 39,443 $ 50,929 Taxes other than income taxes 56,232 69,061 Interest 2,795 133 Workers’ compensation 15,259 16,119 Asset retirement obligations 27,032 10,366 Other 14,495 10,559 $ 155,256 $ 157,167 |
Debt and Financing Arrangements
Debt and Financing Arrangements | 12 Months Ended |
Dec. 31, 2020 | |
Debt and Financing Arrangements | |
Debt and Financing Arrangements | 14. Debt and Financing Arrangements December 31, December 31, 2020 2019 (In thousands) Term loan due 2024 ($288.8 million face value) $ 288,033 $ 290,825 Tax Exempt Bonds ($53.1 million face value) 53,090 — Convertible Debt ($155.3 million face value) 115,367 — Other 62,695 25,007 Debt issuance costs (10,873) (5,013) 508,312 310,819 Less: current maturities of debt 31,097 20,753 Long-term debt $ 477,215 $ 290,066 Term Loan Facility In 2017, the Company entered into a senior secured term loan credit agreement in an aggregate principal amount of $300 million (the “Term Loan Debt Facility”) with Credit Suisse AG, Cayman Islands Branch, as administrative agent and collateral agent (in such capacities, the “Agent”), and the other financial institutions from time to time party thereto (collectively, the “Lenders”). The Term Loan Debt Facility was issued at 99.50% of the face amount and will mature on March 7, 2024. The term loans provided under the Term Loan Debt Facility (the “Term Loans”) are subject to quarterly principal amortization payments in an amount equal to $750,000. During 2018, the Company entered into the Second Amendment (the “Second Amendment”) to its Term Loan Debt Facility. The Second Amendment further reduced the interest rate on its Term Loan Debt Facility to, at the option of Arch Resources, either (i) the London interbank offered rate (“LIBOR”) plus an applicable margin of 2.75%, subject to a 1.00% LIBOR floor, or (ii) a base rate plus an applicable margin of 1.75%. The Second Amendment also resets the 1.00% call premium to apply to repricing events that occur on or prior to October 3, 2018. The LIBOR floor remains at 1.00% . There is no change to the maturities as a result of the Second Amendment. The Term Loan Debt Facility is guaranteed by all existing and future wholly owned domestic subsidiaries of the Company (collectively, the “Subsidiary Guarantors” and, together with Arch Resources, the “Loan Parties”), subject to customary exceptions, and is secured by first priority security interests on substantially all assets of the Loan Parties, including 100% of the voting equity interests of directly owned domestic subsidiaries and 65% of the voting equity interests of directly owned foreign subsidiaries, subject to customary exceptions. The Company has the right to prepay Term Loans at any time and from time to time in whole or in part without premium or penalty, upon written notice, except that any prepayment of Term Loans that bear interest at the LIBOR Rate other than at the end of the applicable interest periods therefor shall be made with reimbursement for any funding losses and redeployment costs of the Lenders resulting therefrom. The Term Loan Debt Facility is subject to certain usual and customary mandatory prepayment events, including 100% of net cash proceeds of (i) debt issuances (other than debt permitted to be incurred under the terms of the New Term Loan Debt Facility) and (ii) non-ordinary course asset sales or dispositions, subject to customary thresholds, exceptions and reinvestment rights. The Term Loan Debt Facility contains customary affirmative covenants and representations. The Term Loan Debt Facility also contains customary negative covenants, which, among other things, and subject to certain exceptions, include restrictions on (i) indebtedness, (ii) liens, (iii) liquidations, mergers, consolidations and acquisitions, (iv) disposition of assets or subsidiaries, (v) affiliate transactions, (vi) creation or ownership of certain subsidiaries, partnerships and joint ventures, (vii) continuation of or change in business, (viii) restricted payments, (ix) prepayment of subordinated and junior lien indebtedness, (x) restrictions in agreements on dividends, intercompany loans and granting liens on the collateral, (xi) loans and investments, (xii) sale and leaseback transactions, (xiii) changes in organizational documents and fiscal year and (xiv) transactions with respect to bonding subsidiaries. The Term Loan Debt Facility does not contain any financial maintenance covenant. The Term Loan Debt Facility contains customary events of default, subject to customary thresholds and exceptions, including, among other things, (i) nonpayment of principal and nonpayment of interest and fees, (ii) a material inaccuracy of a representation or warranty at the time made, (iii) a failure to comply with any covenant, subject to customary grace periods in the case of certain affirmative covenants, (iv) cross-events of default to indebtedness of at least $50 million, (v) cross-events of default to surety, reclamation or similar bonds securing obligations with an aggregate face amount of at least $50 million, (vi) uninsured judgments in excess of $50 million, (vii) any loan document shall cease to be a legal, valid and binding agreement, (viii) uninsured losses or proceedings against assets with a value in excess of $50 million, (ix) certain ERISA events, (x) a change of control or (xi) bankruptcy or insolvency proceedings relating to the Company or any material subsidiary of the Company. Accounts Receivable Securitization Facility On September 30, 2020, the Company amended and extended its existing trade accounts receivable securitization facility provided to Arch Receivable Company, LLC, a special-purpose entity that is a wholly owned subsidiary of Arch Resources (“Arch Receivable”) (the “Extended Securitization Facility”), which supports the issuance of letters of credit and requests for cash advances. The amendment to the Extended Securitization Facility reduced the size of the facility from $160 million to $110 million of borrowing capacity and extended the maturity date to September 29, 2023. Additionally, the amendment eliminated the provision that accelerated maturity upon liquidity falling below a specified level. Pursuant to the Extended Securitization Facility, Arch Receivable also agreed to a revised schedule of fees payable to the administrator and the providers of the Extended Securitization Facility. Under the Extended Securitization Facility, Arch Receivable, Arch Resources and certain of Arch Resources’s subsidiaries party to the Extended Securitization Facility have granted to the administrator of the Extended Securitization Facility a first priority security interest in eligible trade accounts receivable generated by such parties from the sale of coal and all proceeds thereof. As of December 31, 2020, letters of credit totaling $56.3 million were outstanding under the facility with $25.4 million available for borrowings. Inventory-Based Revolving Credit Facility On September 30, 2020, the Company and certain of its subsidiaries amended the senior secured inventory-based revolving credit facility in an aggregate principal amount of $50 million (the “Inventory Facility”) with Regions Bank (“Regions”) as administrative agent and collateral agent, as lender and swingline lender (in such capacities, the “Lender”) and as letter of credit issuer. Availability under the Inventory Facility is subject to a borrowing base consisting of (i) 85% of the net orderly liquidation value of eligible coal inventory, (ii) the lesser of (x) 85% of the net orderly liquidation value of eligible parts and supplies inventory and (y) 35% of the amount determined pursuant to clause (i), and (iii) 100% of Arch Resources’s Eligible Cash (defined in the Inventory Facility), subject to reduction for reserves imposed by Regions. The amendment of the Inventory Facility extended the maturity of the facility to September 29, 2023; eliminated the provision that accelerated maturity upon liquidity falling below a specified level; and reduced the minimum liquidity requirement from $175 million to $100 million. Additionally, the amendment included provisions that reduce the advance rates for coal inventory and parts and supplies, depending on “Liquidity” as defined as of any date of determination, the sum of, without duplication, (a) unrestricted cash or Permitted Investments as of such date of the Parent and its Subsidiaries (other than the Securitization Subsidiaries and Bonding Subsidiaries) that are not Foreign Subsidiaries, (b) withdrawable funds from brokerage accounts of Borrowers as of such date, (c) Availability as of such date, and (d) any unused commitments that are available to be drawn as of such date by the Parent pursuant to the terms of any Permitted Receivables Financing. Revolving loan borrowings under the Inventory Facility bear interest at a per annum rate equal to, at the option of Arch Resources, either the base rate or the London interbank offered rate plus, in each case, a margin ranging from 2.50% to 3.50% (in the case of LIBOR loans) and 1.00% to 1.50% (in the case of base rate loans) determined using a Liquidity-based grid. Letters of credit under the Inventory Facility are subject to a fee in an amount equal to the applicable margin for LIBOR loans, plus customary fronting and issuance fees. All existing and future direct and indirect domestic subsidiaries of Arch Resources, subject to customary exceptions, will either constitute co-borrowers under or guarantors of the Inventory Facility (collectively with Arch Resources, the “Loan Parties”). The Inventory Facility is secured by first priority security interests in the ABL Priority Collateral (defined in the Inventory Facility) of the Loan Parties and second priority security interests in substantially all other assets of the Loan Parties, subject to customary exceptions (including an exception for the collateral that secures the Extended Securitization Facility). Arch Resources has the right to prepay borrowings under the Inventory Facility at any time and from time to time in whole or in part without premium or penalty, upon written notice, except that any prepayment of such borrowings that bear interest at the LIBOR rate other than at the end of the applicable interest periods therefore shall be made with reimbursement for any funding losses and redeployment costs of the Lender resulting therefrom. The Inventory Facility is subject to certain usual and customary mandatory prepayment events, including non-ordinary course asset sales or dispositions, subject to customary thresholds, exceptions (including exceptions for required prepayments under Arch Resources’s term loan facility) and reinvestment rights. The Inventory Facility contains certain customary affirmative and negative covenants; events of default, subject to customary thresholds and exceptions; and representations, including certain cash management and reporting requirements that are customary for asset-based credit facilities. The Inventory Facility also includes a requirement to maintain Liquidity equal to or exceeding $100 million at all times. As of December 31, 2020, letters of credit totaling $29.2 million were outstanding under the facility with $4.1 million available for borrowings. Equipment Financing On March 4, 2020, the Company entered into an equipment financing arrangement accounted for as debt (“Equipment Financing”). The Company received million in exchange for conveying an interest in certain equipment in operation at its Leer Mine and entered into a master lease arrangement for that equipment. The financing arrangement contains customary terms and events of default and provides for maturing on March 4, 2024. Upon maturity, all interests in the subject equipment will revert back to the Company. Tax Exempt Bonds On July 2, 2020, the West Virginia Economic Development Authority (the “Issuer”) issued $53.1 million aggregate principal amount of Solid Waste Disposal Facility Revenue Bonds (Arch Resources Project), Series 2020 (the “Tax Exempt Bonds”) pursuant to an Indenture of Trust dated as of June 1, 2020 (the “Indenture”) between the Issuer and Citibank, N.A., as trustee (the “Trustee”). The proceeds of the Tax Exempt Bonds were loaned to the Company pursuant to a Loan Agreement dated as of June 1, 2020 between the Issuer and Arch. The Tax Exempt Bonds are payable solely from payments to be made by the Company under the Loan Agreement as evidenced by a Note from the Company to the Trustee. The proceeds of the Tax Exempt Bonds were used to finance certain costs of the acquisition, construction, reconstruction, and equipping of solid waste disposal facilities at the Company’s Leer South development, and for capitalized interest and certain costs related to issuance of the Tax Exempt Bonds. The Tax Exempt Bonds will bear interest payable each January 1 and July 1, commencing January 1, 2021, at an interest rate of 5% and have a final maturity of July 1, 2045; however, the Tax Exempt Bonds are subject to mandatory tender on July 1, 2025 at a purchase price equal to 100% of the principal amount of the Tax Exempt Bonds, plus accrued interest to July 1, 2025. The Tax Exempt Bonds are subject to redemption (i) in whole or in part at any time on or after January 1, 2025 at the option of the Issuer, upon the Company’s direction at a redemption price of par, plus interest accrued to the redemption date; and (ii) at par plus interest accrued to the redemption date from certain excess Bond proceeds as further described in the Indenture. The Company’s obligations under the Loan Agreement are (i) except as otherwise described below, secured by first priority liens on and security interests in substantially all of the Company’s and Subsidiary Guarantors’ real property and other assets, subject to certain customary exceptions and permitted liens, and in any event excluding our accounts receivable and inventory; and (ii) jointly and severally guaranteed by the Subsidiary Guarantors, subject to customary exceptions. The collateral securing the Company’s obligations under the Loan Agreement is substantially the same as the collateral securing the obligations under the Term Loan Debt Facility other than with respect to variances in certain real property collateral. The real property securing the Company’s obligations under the Loan Agreement includes a subset of the real property collateral securing the obligations under the Term Loan Debt Facility and includes only mortgages on substantially all of the Company’s revenue generating metallurgical coal real property and assets, including its mining complexes at Leer, Leer South, Mountain Laurel and Beckley in West Virginia. The Company is required to provide additional mortgages in the future to secure its obligations under the Loan Agreement due to the joint venture with Peabody not consummating. The Loan Agreement contains certain affirmative covenants and representations, including but not limited to: (i) maintenance of a rating on the Tax Exempt Bonds; (ii) maintenance of proper books of records and accounts; (iii) agreement to add additional guarantors to guarantee the obligations under the Loan Agreement in certain circumstances; (iv) procurement of customary insurance; and (v) preservation of legal existence and certain rights, franchises, licenses and permits. The Loan Agreement also contains certain customary negative covenants, which, among other things, and subject to certain exceptions, include restrictions on (i) release of collateral securing the Company’s obligations under the Loan Agreement; (ii) mergers and consolidations and disposition of assets, and (iii) restrictions on actions that may jeopardize the tax-exempt status of the Tax Exempt Bonds. The Loan Agreement contains customary events of default, subject to customary thresholds and exceptions, including, among other things, (i) nonpayment of principal, purchase price, interest and other fees (subject to certain cure periods), (ii) bankruptcy or insolvency proceedings relating to us; (iii) material inaccuracy of a representation or warranty at the time made, (iv) cross-events of default to indebtedness of at least $50 million, (v) cross defaults to the Indenture, the guaranty related to the Tax Exempt Bonds or any related security documents. As of December 31, 2020, Arch has utilized $47.1 million of the total bond proceeds. The remaining $6.0 is held in trust and is recorded on the balance sheet as restricted cash. The remainder of the funds will be released as qualified expenditures are made. Convertible Debt On November 3, 2020, the Company issued $155.3 million in aggregate principal amount of 5.25% convertible senior notes due 2025 (“Convertible Notes ” or “Convertible Debt”). The net proceeds from the issuance of the Convertible Notes, after deducting offering related costs of $5.1 million and cost of a “Capped Call Transaction” as defined below of $17.5 million, were approximately $132.7 million. The Convertible Notes bear interest at the annual rate of 5.25%, payable semiannually in arrears on May 15 and November 15 of each year, beginning on May 15, 2021, and will mature on November 15, 2025, unless earlier converted or repurchased by the Company. The Convertible Notes will be convertible into cash, shares of the Company’s common stock or a combination thereof, at the Company’s election, at an initial conversion rate of 26.7917 shares of common stock per $1,000 principal amount of Convertible Notes, which is equivalent to an initial conversion price of approximately $37.325 per share, subject to adjustment pursuant to the terms of the Indenture governing the Convertible Notes (the "Indenture"). The Convertible Notes may be converted at any time after, and including, July 15, 2025 until the close of business on the second scheduled trading day immediately before the maturity date. The conversion rate of the Convertible Notes may be adjusted in certain circumstances, including in connection with a conversion of the Convertible Notes made following certain fundamental changes and under other circumstances set forth in the Indenture. It is the Company’s current intent and policy to settle any conversions of notes through a combination of cash and shares. The Convertible Notes will be redeemable, in whole or in part, at the Company’s option at any time, and from time to time, on or after November 20, 2023 and on or before the 40th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest, if any, but only if the last reported sale price per share of the Company’s common stock exceeds 130% of the conversion price on (i) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date the Company sends the related redemption notice; and (ii) the trading day immediately before the date the Company sends such notice. In addition, calling any Convertible Note for redemption will constitute a make-whole fundamental change with respect to that Convertible Note, in which case the conversion rate applicable to the conversion of that Convertible Note will be increased in certain circumstances if it is converted after it is called for redemption. No sinking fund is provided for the Convertible Notes. Total interest expense related to the Convertible Notes for the three months ended December 31, 2020 was $2.3 million and was comprised of $1.3 million related to the contractual interest coupon and $1.0 million related to the amortization of the discount on the liability component. Capped Call Transactions In connection with the offering of the Convertible Notes, the Company entered into privately negotiated convertible note hedge transactions (collectively, the “Capped Call Transactions”). The Capped Call Transactions cover, subject to customary anti-dilution adjustments, the number of shares of the Company’s common stock that initially underlie the Convertible Notes. The Capped Call Transactions are expected generally to reduce the potential dilution and/or offset any cash payments the Company is required to make in excess of the principal amount due upon conversion of the Convertible Notes in the event that the market price of the Company’s common stock is greater than the strike price of the Capped Call Transactions, which was initially $37.325 per share (subject to adjustment under the terms of the Capped Call Transactions). The strike price of $37.325 corresponds to the initial conversion price of the Convertible Notes. The number of shares underlying the Capped Call Transactions is 4.2 million. The cap price of the Capped Call Transactions is $52.2550 per share, which represents a premium of 75% over the last reported sale price of the Company’s common stock on October 29, 2020. The cost of the Capped Call Transactions was approximately The Capped Call Transactions are separate transactions, in each case entered into between the Company and the respective Option Counterparty, and are not part of the terms of the Convertible Notes and will not affect any holder’s rights under the Convertible Notes. Holders of the Convertible Notes will not have any rights with respect to the Capped Call Transactions. Additionally, the cost of the Capped Call Transactions is not expected to be tax deductible as the Company did not elect to integrate the Capped Call Transactions into the notes for tax purposes. Accounting Treatment of the Convertible Notes and Related Hedge Transactions As the Capped Call Transactions meet certain accounting criteria, the Capped Call Transactions were classified as equity and are not accounted for as derivatives. The proceeds from the offering of the Convertible Notes were separated into liability and equity components. On the date of issuance, the liability and equity components of the Convertible Notes were calculated to be approximately $114.5 million and $40.8 million, respectively. The initial $114.5 million liability component was determined based on the fair value of similar debt instruments excluding the conversion feature assuming a hypothetical interest rate of 12.43%. The inputs and assumptions used in the calculated fair value of the liability component of the convertible debt fall within level 2 of the fair value hierarchy. will not be subsequently remeasured as long as it continues to meet the conditions for equity classification. The related initial debt discount of $40.8 million is being amortized over the life of the Convertible Notes as non-cash interest expense using the effective interest method. At December 31, 2020, the convertible notes were not convertible or redeemable. In connection with the above-noted transactions, the Company incurred approximately $5.9 million of debt issuance costs. These offering expenses were allocated to the liability and equity components in proportion to the allocation of proceeds and accounted for as debt and equity issuance costs, respectively. The Company allocated Interest Rate Swaps The Company has entered into a series of interest rate swaps to fix a portion of the LIBOR interest payments due under the term loan. The interest rate swaps qualify for cash flow hedge accounting treatment and as such, the change in the fair value of the interest rate swaps are recorded on the Company’s Consolidated Balance Sheets as an asset or liability with the effective portion of the gains or losses reported as a component of accumulated other comprehensive income and the ineffective portion reported in earnings. As interest payments are made on the term loan, amounts in accumulated other comprehensive income will be reclassified into earnings through interest expense to reflect a net interest on the term loan equal to the effective yield of the fixed rate of the swap plus 2.75% which is the spread on the revised LIBOR term loan. In the event that an interest rate swap is terminated prior to maturity, gains or losses in accumulated other comprehensive income will remain deferred and reclassified into earnings in the periods which the hedged forecasted transaction affects earnings. Below is a summary of the Company’s outstanding interest rate swap agreements designated as hedges as of December 31, 2020: Notional Amount (in millions) Effective Date Fixed Rate Receive Rate Expiration Date $ 200.0 June 30, 2020 2.249 % 1-month LIBOR June 30, 2021 $ 100.0 June 30, 2021 2.315 % 1-month LIBOR June 30, 2023 The fair value of the interest rate swaps at December 31, 2020 is a liability of $3.9 million which is recorded within Other noncurrent liabilities with the offset to accumulated other comprehensive income on the Company’s Consolidated Balance Sheets. The Company realized $2.1 million of losses and $1.1 million and $1.2 million of gains during the years ended December 31, 2020, 2019 and 2018, respectively, related to settlements of the interest rate swaps which were recorded to interest expense on the Company’s Consolidated Statements of Operations. The interest rate swaps are classified as level 2 within the fair value hierarchy. Debt Maturities The contractual maturities of debt as of December 31, 2020 are as follows: Year (In thousands) 2021 $ 33,590 2022 16,712 2023 17,631 2024 283,513 2025 208,340 Thereafter — $ 559,786 Financing Costs The Company paid financing costs of $9.7 million, $0.0 million and $1.3 million during the years ended December 31, 2020, 2019 and 2018, respectively. |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Taxes | |
Taxes | 15. Taxes The Company provides for deferred income taxes for temporary differences arising from differences between the financial statement and tax basis of assets and liabilities existing at each balance sheet date using enacted tax rates expected to be in effect when the related taxes are expected to be paid or recovered. The Company initially recognizes the effects of a tax position when it is more than 50 percent likely, based on the technical merits, that the position will be sustained upon examination, including resolution of the related appeals or litigation processes, if any. The Company’s determination of whether or not a tax position has met the recognition threshold considers the facts, circumstances, and information available at the reporting date. The Company assesses the need for a valuation allowance by evaluating future taxable income, available tax planning strategies and the reversal of temporary differences. A valuation allowance is difficult to avoid when a company is in a cumulative loss position, as it constitutes significant negative evidence with regards to future taxable income. A cumulative loss position is defined as a cumulative pre-tax loss for the current and two preceding years. As of December 31, 2018, the Company was in a cumulative loss position and held a full valuation allowance against its net deferred tax assets. In 2019, the Company was no longer in a cumulative loss position. However, based on significant near-term uncertainty in market pricing and uncertainty surrounding other planned changes in our operating structure, the Company maintained a full valuation allowance. As of December 31, 2020, the Company maintained the full valuation allowance, based on continued pricing uncertainty, ongoing operational changes and the significant pre-tax loss reported for the year. Due to changes in ownership that occurred in connection with the Company’s emergence from bankruptcy in 2016, there was a change in ownership for purposes of IRC Section 382. Section 382 provides a combined annual limitation with respect to the ability of a corporation to use its NOLs, AMT credits and capital loss carryforwards generated before the ownership change against future taxable income. The Company’s annual limit under IRC section 382 is estimated to be $29.8 million. The Company had a net unrealized built-in gain, based on comparing the fair value and carryover tax basis in assets, at the time of the ownership change, therefore, certain built-in gains recognized within five years after the ownership change will increase the annual IRC section 382 limit for the five year recognition period beginning October 1, 2016 through September 30, 2021. There is uncertainty surrounding which assets with built-in gain will be realized within the five year period following the Company’s emergence from bankruptcy and allow the Company to realize the incremental net operating losses and credit in excess of the base 382 limitation. The Company is reflecting a deferred tax asset for the full amount of the net operating losses and credit carryforwards. If at some point in time it becomes evident that some portion of the deferred tax assets will not be realizable, the deferred tax asset, and offsetting valuation allowance will be reduced. The Company is subject to U.S. federal income tax as well as income tax in multiple state jurisdictions. The tax years 2009 through 2020 remain open to examination for U.S. federal income tax matters and 1999 through 2020 remain open to examination for various state income tax matters. Significant components of the provision for (benefit from) income taxes are as follows: Year Ended Year Ended Year Ended December 31, December 31, December 31, 2020 2019 2018 (In thousands) Current: Federal $ 518 $ (36) $ 86 State (569) 124 136 Total current $ (51) $ 88 $ 222 Deferred: Federal 44 667 (52,309) State — (507) (389) Total deferred $ 44 $ 160 $ (52,698) $ (7) $ 248 $ (52,476) A reconciliation of the statutory federal income tax provision (benefit) at the statutory rate to the actual provision for (benefit from) income taxes follows: Year Ended Year Ended Year Ended December 31, December 31, December 31, 2020 2019 2018 Income tax provision at statutory rate $ (72,371) $ 49,150 $ 54,621 Percentage depletion allowance (7,763) (17,743) (17,725) State taxes, net of effect of federal taxes (3,298) (12,769) 4,480 Change in valuation allowance 76,524 (24,206) (79,961) Current expense associated with uncertain tax positions Other, net 6,901 5,816 3,754 Provision for (benefit from) income taxes $ (7) $ 248 $ (52,476) Significant components of the Company’s deferred tax assets and liabilities that result from carryforwards and temporary differences between the financial statement basis and tax basis of assets and liabilities are summarized as follows: December 31, December 31, 2020 2019 (In thousands) Deferred tax assets: Tax loss carryforwards $ 352,342 $ 294,535 Tax credit carryforwards 3,117 5,297 Investment in partnerships 213,478 190,418 Other 19,377 20,387 Gross deferred tax assets $ 588,314 $ 510,637 Valuation allowance (573,995) (506,316) Total deferred tax assets $ 14,319 $ 4,321 Deferred tax liabilities: Plant and equipment 1,219 2,063 Convertible Notes 8,845 — Other 4,218 2,178 Total deferred tax liabilities $ 14,282 $ 4,241 Net deferred tax asset $ 37 $ 80 The Company has gross federal NOL carryforwards for regular income tax purposes of $1.3 billion at December 31, 2020. Of these carryforwards, approximately billion will expire, if not utilized, in various years through 2038. The future annual usage of these NOLs may be limited under IRC section 382. The remaining carryforwards have no expiration. During 2018, the Company recorded a benefit from income taxes of $48.8 million related to AMT credits that became refundable between 2019 through 2022 under the Tax Cut and Jobs Act of 2017. As of December 31, 2018, these credits were classified as short and long term receivables based on their expected refund date. A $530.6 million valuation allowance fully offset the net deferred tax assets. As of December 31, 2019, a $24.2 million benefit was recorded from the release of valuation allowance offsetting federal and state net operating losses used to offset current year taxable income. A $506.3 million valuation allowance fully offset all net deferred tax assets. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law. CARES Act provided for an acceleration of the refund timing related to remaining AMT credits as initially established under the Tax Cut and Jobs Act of 2017. During 2020, the Company received all outstanding refunds for AMT credits. For the year ended December 31, 2020, a $76.5 million tax provision was recorded from the addition of valuation allowance offsetting the federal and state net operating losses generated during the year. This was partially offset by an $8.8 million release of valuation allowance through additional paid-in capital (APIC), as a result of the deferred tax liability recorded through APIC related to Convertible Notes. A $574.0 million valuation allowance fully offsets all net deferred tax assets. A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits follows: (In thousands) Balance at December 31, 2017 $ 11,383 Additions based on tax positions related to the current year 28,387 Additions for tax positions of prior years 3,228 Reductions for tax positions of prior years (634) Reductions as a result of lapses in the statute of limitations (3,271) Balance at December 31, 2018 39,093 Additions based on tax positions to the current year 2,980 Reductions for tax positions of prior years (1,970) Reductions as a result of lapses in the statute of limitations (374) Balance at December 31, 2019 39,729 Additions for tax positions related to the current year 1,583 Additions for tax positions related to the prior year 7,918 Reductions for tax positions of prior years (732) Reductions as a result of lapses in the statute of limitations (382) Balance at December 31, 2020 $ 48,116 If recognized, the entire amount of the gross unrecognized tax benefits at December 31, 2020 would affect the effective tax rate. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. The Company had accrued interest and penalties of $2.3 million and $0.8 million at December 31, 2020 and 2019, respectively. In the next 12 months, $0.1 million of gross unrecognized tax benefits are expected to be reduced due to the expiration of the statute of limitations. |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2020 | |
Asset Retirement Obligation | |
Asset Retirement Obligations | 16. Asset Retirement Obligations The Company’s asset retirement obligations arise from the Federal Surface Mining Control and Reclamation Act of 1977 and similar state statutes, which require that mine property be restored in accordance with specified standards and an approved reclamation plan. The required reclamation activities to be performed are outlined in the Company’s mining permits. These activities include reclaiming the pit and support acreage at surface mines, sealing portals at underground mines, reclaiming refuse areas and slurry ponds and water treatment. The following table describes the changes to the Company’s asset retirement obligation liability: Year Ended Year Ended December 31, December 31, 2020 2019 (In thousands) Balance at beginning of period (including current portion) $ 252,798 $ 243,417 Accretion expense 19,887 20,548 Obligations of divested operations (15,455) (12,185) Adjustments to the liability from changes in estimates 14,889 11,438 Liabilities settled (14,355) (10,420) Balance at period end $ 257,764 $ 252,798 Current portion included in accrued expenses (27,032) (10,366) Noncurrent liability $ 230,732 $ 242,432 As of December 31, 2020, the Company had $552.4 million in surety bonds outstanding and $20.0 million letters of credit to secure reclamation bonding obligations. Additionally, the Company has posted $0.6 million in cash as collateral related to reclamation surety bonds; this amount is recorded within “Noncurrent assets” on the Consolidated Balance Sheets. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures Measurements | |
Fair Value Measurements | 17. Fair Value Measurements The hierarchy of fair value measurements assigns a level to fair value measurements based on the inputs used in the respective valuation techniques. The levels of the hierarchy, as defined below, give the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. ● ● ● The table below sets forth, by level, the Company’s financial assets and liabilities that are recorded at fair value in the accompanying consolidated balance sheet: December 31, 2020 Total Level 1 Level 2 Level 3 (In thousands) Assets: Investments in marketable securities $ 96,765 $ 57,224 $ 39,541 $ — Derivatives 853 21 832 — Total assets $ 97,618 $ 57,245 $ 40,373 $ — Liabilities: Derivatives $ 3,899 $ 7 $ 3,892 $ — Fair Value at December 31, 2019 Total Level 1 Level 2 Level 3 (In thousands) Assets: Investments in marketable securities $ 135,667 $ 35,029 $ 100,638 $ — Derivatives 5,857 5,269 527 61 Total assets $ 141,524 $ 40,298 $ 101,165 $ 61 Liabilities: Derivatives $ 3,065 $ — $ 3,065 $ — The Company’s contracts with its counterparties allow for the settlement of contracts in an asset position with contracts in a liability position in the event of default or termination. For classification purposes, the Company records the net fair value of all the positions with these counterparties as a net asset or liability. Each level in the table above displays the underlying contracts according to their classification in the accompanying Consolidated Balance Sheet, based on this counterparty netting. The following table summarizes the change in the fair values of financial instruments categorized as level 3. 2020 2019 (In thousands) Balance, beginning of period $ 61 $ 532 Realized and unrealized (gains) losses recognized in earnings, net (1,158) (1,893) Purchases 1,235 1,597 Issuances (138) (208) Settlements — 33 Ending balance $ — $ 61 Net unrealized losses of $0.2 million were recognized during the year ended December 31, 2020 related to level 3 financial instruments held on December 31, 2020. Cash and Cash Equivalents At December 31, 2020 and 2019, the carrying amounts of cash and cash equivalents approximate their fair value. Fair Value of Long-Term Debt At December 31, 2020 and 2019, the fair value of the Company’s debt, including amounts classified as current, was $533.8 million and $308.0 million, respectively. Fair values are based upon observed prices in an active market, when available, or from valuation models using market information, which fall into Level 2 in the fair value hierarchy. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2020 | |
Capital Stock | |
Capital Stock | 18. Capital Stock Dividends The Company declared and paid cash dividends per share during the periods presented below: 2020: Dividends per share Amount 1st quarter $ 0.50 $ 8,245 2nd quarter — — 3rd quarter — — 4th quarter — — Total cash dividends declared and paid $ 0.50 $ 8,245 Amount 2019: Dividends per share (in thousands) 1st quarter $ 0.45 $ 7,839 2nd quarter 0.45 7,425 3rd quarter 0.45 7,000 4th quarter 0.45 7,956 Total cash dividends declared and paid $ 1.80 $ 30,220 Future dividend declarations will be subject to ongoing Board review and authorization will be based on a number of factors, including business and market conditions, the Company’s future financial performance and other capital priorities. Share Repurchase Program During April 2019, the Board of Directors of Arch Resources, Inc. approved an incremental $250 million to the share repurchase program bringing the total authorization to $1,050 million. The Company did not purchase any shares of its common stock under this program for the year ended December 31, 2020. For the year December 31, 2019, the Company repurchased As of December 31, 2020, the Company had repurchased 10,088,378 shares at an average share price of $82.01 per share for an aggregate purchase price of approximately $827 million since inception of the stock repurchase program, and the remaining authorized amount for stock repurchases under this program is $223 million. The timing of any future share repurchases, and the ultimate number of shares purchased, will depend on a number of factors, including business and market conditions, the Company’s future financial performance and other capital priorities. The shares will be acquired in the open market or through private transactions in accordance with the Securities and Exchange Commission requirements. The share repurchase program has no termination date, but may be amended, suspended or discontinued at any time and does not commit the Company to repurchase shares of its common stock. The actual number and value of the shares to be purchased will depend on the performance of the Company’s stock price and other market conditions. Outstanding Warrants In October 2016, the Company emerged from Chapter 11 which became known as the “Effective Date”. On the Effective Date, the Company entered into a warrant agreement (the “Warrant Agreement”) with American Stock Transfer & Trust Company, LLC as warrant agent and, pursuant to the terms of the Plan, issued warrants (“Warrants”) to purchase up to an aggregate of 1,914,856 shares of Class A Common Stock, par value $0.01 per share, of Arch Resources (the “Class A Common Stock”) to certain holders of claims in the Chapter 11 case arising under the cancelled notes. Each Warrant expires on October 5, 2023, and is initially exercisable for one share of Class A Common Stock at an initial exercise price of $57.00 per share. The Warrants are exercisable by a holder paying the exercise price in cash or on a cashless basis, at the election of the holder. The Warrants contain anti-dilution adjustments for stock splits, reverse stock splits, stock dividends, dividends and distributions of cash, other securities or other property, spin-offs and tender and exchange offers by Arch Resources or its subsidiaries to purchase Class A Common Stock at above-market prices. If, in connection with a merger, recapitalization, business combination, transfer to a third party of substantially all of Arch Resources’s consolidated assets or other transaction that results in a change to the Class A Common Stock (each, a “Transaction”), (i) the Transaction is consummated prior to the fifth anniversary of the Effective Date and the Transaction consideration to holders of Class A Common Stock is or more listed common stock or common stock of a company that provides publicly available financial reporting, and holds management calls regarding the same, no less than quarterly (“Reporting Stock”) or (ii) regardless of the consideration, the Transaction is consummated on or after the fifth anniversary of the Effective Date, the Warrants will be assumed by the surviving company and will become exercisable for the consideration that the holders of Class A Common Stock receive in such Transaction; provided minus multiplied by If a Transaction is consummated prior to the fifth anniversary of the Effective Date in which the Transaction consideration is less than 90% Reporting Stock, a portion of the Warrants corresponding to the portion of the Transaction consideration that is Reporting Stock will be assumed by the surviving company and will become exercisable for the Reporting Stock consideration that the holders of Class A Common Stock receive in such Transaction, and the portion of the Warrants corresponding to the portion of the Transaction consideration that is not Reporting Stock will, at the option of each holder, (i) be assumed by the surviving company and will become exercisable for the consideration that the holders of Class A Common Stock receive in such Transaction or (ii) be redeemed by Arch Resources for cash in an amount equal to the Black Scholes Payment (as defined in the Warrant Agreement). During 2020, no warrants were exercised, leaving 1,845,568 warrants outstanding at December 31, 2020. As provided in ASC 825-20, “Financial Instruments,” the warrants are considered equity because they can only be physically settled in Company shares, can be settled in unregistered shares, the Company has adequate authorized shares to settle the outstanding warrants and each warrant is fixed in terms of settlement to one share of Company stock subject only to remote contingency adjustment factors designed to assure the relative value in terms of shares remains fixed. |
Stock-Based Compensation and Ot
Stock-Based Compensation and Other Incentive Plans | 12 Months Ended |
Dec. 31, 2020 | |
Stock-Based Compensation and Other Incentive Plans | |
Stock-Based Compensation And Other Incentive Plans | 19. Stock-Based Compensation and Other Incentive Plans Under the Company’s 2016 Omnibus Incentive Plan (the “Incentive Plan”), 3.0 million shares of the Company’s common stock were reserved for awards to officers and other selected key management employees of the Company. The Incentive Plan provides the Board of Directors with the flexibility to grant stock options, stock appreciation rights, restricted stock awards, restricted stock units, performance stock or units, phantom stock awards and rights to acquire stock through purchase under a stock purchase program (“Awards”). Awards the Board of Directors elects to pay out in cash do not impact the shares authorized in the Incentive Plan. Shares available for award under the plan were 2.1 million at December 31, 2020. Restricted Stock Unit Awards The Company may issue restricted stock and restricted stock units, which require no payment from the employee. Restricted stock cliff-vests at various dates and restricted stock units either vest ratably over or vest at the end of the award’s stated vesting period. Compensation expense is based on the fair value on the grant date and is recorded ratably over the vesting period utilizing the straight-line recognition method. The employee receives cash compensation equal to the amount of dividends that would have been paid on the underlying shares. During 2020, the Company granted both time based awards and performance based awards. The time based awards vest a third each year over a three year period and the performance based awards vest over a three year period. The time based awards’ and non-market based performance awards grant date fair value was determined based on the stock price at the date of grant. The market based performance awards grant date fair value was determined using a Black-Scholes Monte Carlo simulation. An historical volatility of 36% was selected for the performance-based award based on comparator companies, and the three-year risk free rate was derived from yields on U.S. Government bonds. Information regarding the restricted stock units activity and weighted average grant-date fair value follows: Time Based Awards Performance Based Awards Weighted Weighted Average Average Restricted Grant-Date Restricted Grant-Date Stock Units Fair Value Stock Units Fair Value (Shares in thousands) Outstanding at January 1, 2020 238 $ 87.50 195 $ 106.44 Granted 212 47.12 186 48.99 Forfeited/Canceled (8) 69.56 (30) 95.49 Vested (101) 83.26 (65) 100.99 Unvested outstanding at December 31, 2020 341 $ 64.38 286 $ 71.44 The Company recognized expense related to restricted stock units of $17.4 million, $22.0 million and $17.5 million for the years ended December 31, 2020, 2019 and 2018, respectively. As of December 31, 2020, there was $15.7 million of unrecognized share-based compensation expense which is expected to be recognized over a weighted-average period of approximately two years. |
Workers Compensation Expense
Workers Compensation Expense | 12 Months Ended |
Dec. 31, 2020 | |
Workers Compensation Expense | |
Workers Compensation Expense | 20. Workers’ Compensation Expense The Company is liable under the Federal Mine Safety and Health Act of 1969, as subsequently amended, to provide for pneumoconiosis (occupational disease) benefits to eligible employees, former employees and dependents. The Company currently provides for federal claims principally through a self-insurance program. The Company is also liable under various state workers’ compensation statutes for occupational disease benefits. The occupational disease benefit obligation represents the present value of the actuarially computed present and future liabilities for such benefits over the employees’ applicable years of service. In October 2019, the Company filed an application with the Office of Workers’ Compensation Programs (“OWCP”) within the Department of Labor for reauthorization to self-insure federal black lung benefits. In February 2020, the Company received a reply from the OWCP confirming its status to remain self-insured contingent upon posting additional collateral of $71.1 million within 30 days of receipt of the letter. The Company is currently appealing the ruling from the OWCP and has received an extension to self-insure during the appeal process. The Company is evaluating alternatives to self-insurance, including the purchase of commercial insurance to cover these claims. In addition, the Company is liable for workers’ compensation benefits for traumatic injuries which are calculated using actuarially-based loss rates, loss development factors and discounted based on a risk free rate of 0.84%. Traumatic workers’ compensation claims are insured with varying retentions/deductibles, or through state-sponsored workers’ compensation programs. Workers’ compensation expense consists of the following components: Year Ended Year Ended Year Ended December 31, December 31, December 31, 2020 2019 2018 Self-insured occupational disease benefits: Service cost $ 7,564 $ 6,677 $ 7,440 Interest cost (1) 5,115 4,922 4,365 Net amortization (1) 1,189 — — Total occupational disease $ 13,868 $ 11,599 $ 11,805 Traumatic injury claims and assessments 12,922 13,050 5,395 Total workers’ compensation expense $ 26,790 $ 24,649 $ 17,200 (1) In accordance with the adoption of ASU 2017-07, “Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” these costs are recorded within Nonoperating expenses in the Consolidated Statements of Operations on the line item “Non-service related pension and postretirement benefit costs.” The table below reconciles changes in the occupational disease liability for the respective period. Year Ended Year Ended December 31, December 31, (In thousands) 2020 2019 Beginning of period $ 158,325 $ 118,900 Service cost 7,564 6,677 Interest cost 5,115 4,922 Actuarial loss 19,327 35,993 Benefit and administrative payments (7,330) (8,167) $ 183,001 $ 158,325 The following table provides the assumptions used to determine the projected occupational disease obligation: Year Ended December 31, 2020 Year Ended December 31, 2019 (Percentages) Discount rate 2.48 3.31 The lower discount rate increased obligations by $27.6 million. Summarized below is information about the amounts recognized in the accompanying Consolidated Balance Sheets for workers’ compensation benefits: Year Ended Year Ended December 31, December 31, 2020 2019 (In thousands) Occupational disease costs $ 183,001 $ 158,325 Traumatic and other workers’ compensation claims 76,953 73,393 Total obligations 259,954 231,718 Less amount included in accrued expenses 15,259 16,119 Noncurrent obligations $ 244,695 $ 215,599 As of December 31, 2020, the Company had $122.9 million in surety bonds, letters of credit and cash outstanding to secure workers’ compensation obligations. As of December 31, 2020, the Company’s recorded liabilities include $14.3 million of obligations that are reimbursable under various insurance policies purchased by the company. These insurance receivables are recorded in the balance sheet line items “Other receivables” and “Other noncurrent assets” for $0.5 million and $13.8 million, respectively. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Employee Benefit Plans | |
Employee Benefit Plans | 21. Employee Benefit Plans Defined Benefit Pension and Other Postretirement Benefit Plans The Company provides funded and unfunded non-contributory defined benefit pension plans covering certain of its salaried and hourly employees. Benefits are generally based on the employee’s age and compensation. The Company funds the plans in an amount not less than the minimum statutory funding requirements or more than the maximum amount that can be deducted for U.S. federal income tax purposes. The Company also currently provides certain postretirement medical and life insurance coverage for eligible employees. Generally, covered employees who terminate employment after meeting eligibility requirements are eligible for postretirement coverage for themselves and their dependents. The Company offers a subsidy to eligible retirees based on age and years of service at retirement and contain other cost-sharing features such as deductibles and coinsurance. The Company’s current funding policy is to fund the cost of all postretirement benefits as they are paid. On January 1, 2015, the Company’s cash balance and excess plans were amended to freeze new service credits for any new or active employees. Obligations and Funded Status. Summaries of the changes in the benefit obligations, plan assets and funded status of the plans are as follows: Pension Benefits Other Postretirement Benefits Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, 2020 2019 2020 2019 (In thousands) CHANGE IN BENEFIT OBLIGATIONS Benefit obligations at beginning of period $ 217,548 $ 228,873 $ 87,867 $ 88,563 Service cost — — 419 480 Interest cost 5,498 8,141 2,392 3,505 Settlement gain (896) (1,326) — — Curtailments — — 284 30 Benefits paid (38,221) (34,918) (6,507) (7,304) Other-primarily actuarial loss 18,338 16,778 16,443 2,593 Benefit obligations at end of period $ 202,267 $ 217,548 $ 100,898 $ 87,867 CHANGE IN PLAN ASSETS Value of plan assets at beginning of period $ 211,802 $ 212,506 $ — $ — Actual return on plan assets 23,055 33,998 — — Employer contributions 2,612 216 6,507 7,304 Benefits paid (38,221) (34,918) (6,507) (7,304) Value of plan assets at end of period $ 199,248 $ 211,802 $ — $ — Accrued benefit cost $ (3,019) $ (5,746) $ (100,898) $ (87,867) ITEMS NOT YET RECOGNIZED AS A COMPONENT OF NET PERIODIC BENEFIT COST Prior service credit $ 880 $ 992 $ — $ — Accumulated gain 10,790 14,537 2,226 20,333 $ 11,670 $ 15,529 2,226 $ 20,333 BALANCE SHEET AMOUNTS Current liability $ (140) $ (270) $ (6,510) $ (7,300) Noncurrent liability (2,879) (5,476) (94,388) (80,567) $ (3,019) $ (5,746) $ (100,898) $ (87,867) Pension Benefits The accumulated benefit obligation for all pension plans was $202.3 million and $217.5 million at December 31, 2020 and 2019, respectively. The weighted-average interest credit rate for the cash balance pension plan was 4.25% at December 31, 2020 and 2019. Significant changes affecting the benefit obligations included the lower discount rate which increased plan obligations by $19.0 million. Other Postretirement Benefits Significant gains and losses affecting the benefit obligations included: ● the lower discount rate increased plan obligations by $8.4 million; ● the health care cost trend assumption update increased plan obligations by $6.0 million; and ● the claims cost assumptions were updated increasing plan obligations by $5.1 million. Components of Net Periodic Benefit Cost Pension Benefits Other Postretirement Benefits Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, December 31, December 31, 2020 2019 2018 2020 2019 2018 (In thousands) Service cost $ — $ — $ — $ 419 $ 480 $ 558 Interest cost (1) 5,498 8,141 9,269 2,392 3,505 3,674 Curtailments — — — — — — Settlements (1) (896) (1,326) (2,332) — — — Expected return on plan assets (1) (8,283) (10,555) (12,083) — — — Amortization of prior service credits (1) (112) (24) — — — — Amortization of other actuarial losses (gains) (1) — (11) — (1,379) (2,974) — Net benefit cost (credit) $ (3,793) $ (3,775) $ (5,146) $ 1,432 $ 1,011 $ 4,232 (1) In accordance with the adoption of ASU 2017-07, “Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” these costs are recorded within Nonoperating expenses in the Consolidated Statements of Operations on the line item “Non-service related pension and postretirement benefit costs.” The differences generated from changes in assumed discount rates and returns on plan assets are amortized into earnings over the remaining service attribution periods of the employees using the corridor method. Assumptions. Year Ended Year Ended December 31, December 31, 2020 2019 (Percentages) Pension Benefits Discount rate 2.19/1.96 3.09/2.90 Other Postretirement Benefits Discount rate 2.17 3.09 The following table provides the weighted average assumptions used to determine net periodic benefit cost for the respective periods. Year Ended Year Ended Year Ended December 31, December 31, December 31, 2020 2019 2018 (Percentages) Pension Benefits Discount rate 2.72 3.65 3.82 Expected return on plan assets 4.65 5.10 5.30 Other Postretirement Benefits Discount rate 3.09 4.12 3.49 The discount rates used in 2020, 2019 and 2018 were reevaluated during the year for settlements and curtailments. The obligations are remeasured at an updated discount rate that impacts the benefit cost recognized subsequent to the remeasurement. The Company establishes the expected long-term rate of return at the beginning of each fiscal year based upon historical returns and projected returns on the underlying mix of invested assets. The Company utilizes modern portfolio theory modeling techniques in the development of its return assumptions. This technique projects rates of return that can be generated through various asset allocations that lie within the risk tolerance set forth by members of the Company’s pension committee (the “Pension Committee”). The risk assessment provides a link between a pension plan’s risk capacity, management’s willingness to accept investment risk and the asset allocation process, which ultimately leads to the return generated by the invested assets. The health care cost trend rate assumed for 2021 is 5.7% and is expected to reach an ultimate trend rate of 4.5% by 2038. Plan Assets The Pension Committee is responsible for overseeing the investment of pension plan assets. The Pension Committee is responsible for determining and monitoring appropriate asset allocations and for selecting or replacing investment managers, trustees and custodians. The pension plan’s current investment targets are 27% equity and 73% fixed income securities. The Pension Committee reviews the actual asset allocation in light of these targets on a periodic basis and rebalances among investments as necessary. The Pension Committee evaluates the performance of investment managers as compared to the performance of specified benchmarks and peers and monitors the investment managers to ensure adherence to their stated investment style and to the plan’s investment guidelines. The Company’s pension plan assets at December 31, 2020 and 2019, respectively, are categorized below according to the fair value hierarchy as defined in Note 17, “Fair Value Measurements”: Total Level 1 Level 2 Level 3 2020 2019 2020 2019 2020 2019 2020 2019 (In thousands) Equity Securities: (A) U.S. small-cap $ 2,287 $ 2,319 $ 2,287 $ 2,319 $ — $ — $ — $ — U.S. mid-cap 2,890 1,397 2,890 1,397 — — — — Fixed income securities: — — U.S. government securities (B) 31,850 50,610 18,705 35,751 13,145 14,859 — — Non-U.S. government securities (C) 1,612 2,242 — — 1,612 2,242 — — Corporate fixed income (D) 98,357 108,023 — — 98,357 108,023 — — State and local government securities (E) 2,962 2,653 — — 2,962 2,653 — — Other investments (G) 3,519 — — — 3,519 — — — Total $ 143,477 $ 167,244 $ 23,882 $ 39,467 $ 119,595 $ 127,777 $ — $ — Assets at net asset value (F) 55,771 53,418 Other liabilities (H) — (8,860) $ 199,248 $ 211,802 (A) Equity securities includes investments in 1) common stock, 2) preferred stock and 3) mutual funds. Investments in common and preferred stocks are valued using quoted market prices multiplied by the number of shares owned. Investments in mutual funds are valued at the net asset value per share multiplied by the number of shares held as of the measurement date and are traded on listed exchanges. (B) U.S. government securities includes agency and treasury debt. These investments are valued using dealer quotes in an active market. (C) Non-U.S. government securities includes debt securities issued by foreign governments and are valued utilizing a price spread basis valuation technique with observable sources from investment dealers and research vendors. (D) Corporate fixed income is primarily comprised of corporate bonds and certain corporate asset-backed securities that are denominated in the U.S. dollar and are investment-grade securities. These investments are valued using dealer quotes. (E) State and local government securities include different U.S. state and local municipal bonds and asset backed securities, these investments are valued utilizing a market approach that includes various valuation techniques and sources such as value generation models, broker quotes, benchmark yields and securities, reported trades, issuer trades and/or other applicable data. (F) Investments that are measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy in accordance with Accounting Standards Update 2015-07. These investments are primarily mutual funds that are highly liquid with no restrictions on ability to redeem the funds into cash. (G) Other investments include cash, forward contracts, derivative instruments, credit default swaps, interest rate swaps and mutual funds. Investments in interest rate swaps are valued utilizing a market approach that includes various valuation techniques and sources such as value generation models, broker quotes in active and non-active markets, benchmark yields and securities, reported trades, issuer trades and/or other applicable data. Forward contracts and derivative instruments are valued at their exchange listed price or broker quote in an active market. The mutual funds are valued at the net asset value per share multiplied by the number of shares held as of the measurement date and are traded on listed exchanges. (H) Net payable amount due for pending securities purchased and sold due to broker/dealer. Cash Flows. The following represents expected future benefit payments from the plan: Other Pension Postretirement Benefits Benefits (In thousands) 2021 $ 13,143 $ 12,514 2022 13,902 12,521 2023 12,605 12,351 2024 12,221 12,237 2025 13,351 12,131 Next 5 years 52,093 60,057 $ 117,315 $ 121,811 Other Plans The Company sponsors savings plans which were established to assist eligible employees in providing for their future retirement needs. The Company’s expense, representing its contributions to the plans, was $17.1 million, $17.5 million, and $17.9 million for the years ended December 31, 2020, 2019, and 2018 respectively. |
Earnings per Common Share
Earnings per Common Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Common Share | |
Earnings per Common Share | 22. Earnings Per Common Share The Company computes basic net income (loss) per share using the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed using the weighted average number of common shares and the effect of potentially dilutive securities outstanding during the period. Potentially dilutive securities may consist of warrants, restricted stock units or other contingently issuable shares and convertible debt. The dilutive effect of outstanding warrants, restricted stock units and convertible debt is reflected in diluted earnings per share by application of the treasury stock method. The weighted average share impact of warrants, restricted stock units and convertible debt that were excluded from the calculation of diluted shares due to the Company incurring a net loss for the twelve months ending December 31, 2020 were The following table provides the basis for basic and diluted EPS by reconciling the numerators and denominators of the computations: Year Ended Year Ended Year Ended December 31, December 31, December 31, 2020 2019 2018 (In Thousands) Weighted average shares outstanding: Basic weighted average shares outstanding 15,153 16,218 19,663 Effect of dilutive securities — 1,080 966 Diluted weighted average shares outstanding 15,153 17,298 20,629 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases | |
Leases | 23. Leases The Company has operating and finance leases for mining equipment, office equipment and office space with remaining lease terms ranging from less than one year to approximately seven years. Some of these leases include both lease and non-lease components which are accounted for as a single lease component as the Company has elected the practical expedient to combine these components for all leases. As most of the leases do not provide an implicit rate, the Company calculated the Right-of-use (“ROU”) assets and lease liabilities using its’ secured incremental borrowing rate at the lease commencement date. Information related to leases was as follows: Year Ended December 31, 2020 2019 (In thousands) Operating lease information: Operating lease cost $ 3,620 $ 3,921 Operating cash flows from operating leases 3,610 3,842 Weighted average remaining lease term in years 5.99 5.92 Weighted average discount rate 5.5 % 5.5 % Financing lease information: Financing lease cost $ 1,179 $ — Operating cash flows from financing leases 909 — Weighted average remaining lease term in years 4.25 — Weighted average discount rate 6.4 % — % Future minimum lease payments under non-cancellable leases as of December 31, 2020 were as follows: Operating Finance Year Leases Leases (In thousands) 2021 $ 3,367 $ 1,210 2022 3,317 1,210 2023 3,285 1,210 2024 3,200 1,210 2025 3,185 2,112 Thereafter 4,614 — Total minimum lease payments $ 20,968 $ 6,952 Less imputed interest (3,236) (1,078) Total lease liabilities $ 17,732 $ 5,874 As reflected on balance sheet: Accrued expenses and other current liabilities $ 2,454 $ 860 Other noncurrent liabilities 15,278 5,014 Total lease liability $ 17,732 $ 5,874 At December 31, 2020, the Company had a $17.1 million ROU operating lease asset finance lease Rental expense, including amounts related to these operating leases and other shorter-term arrangements, amounted to $8.6 million in 2020, $12.0 million in 2019 and $12.4 million in 2018. Royalties are paid to lessors either as a fixed price per ton or as a percentage of the gross selling price of the mined coal. Royalties under the majority of the Company’s significant leases are paid on the percentage of gross selling price basis. Royalty expense, including production royalties, was $103.7 million in 2020, $149.5 million in 2019, and $166.1 million in 2018. As of December 31, 2020, certain of the Company’s lease obligations were secured by outstanding surety bonds totaling $31.7 million. |
Risk Concentrations
Risk Concentrations | 12 Months Ended |
Dec. 31, 2020 | |
Risk Concentrations | |
Risk Concentrations | 24. Risk Concentrations Credit Risk and Major Customers The Company has a formal written credit policy that establishes procedures to determine creditworthiness and credit limits for trade customers and counterparties in the over-the-counter coal market. Generally, credit is extended based on an evaluation of the customer’s financial condition. Collateral is not generally required, unless credit cannot be established. Credit losses are provided for in the financial statements and historically have been minimal. The Company markets its thermal coal principally to domestic and foreign electric utilities and its metallurgical coal to domestic and foreign steel producers. As of December 31, 2020 and 2019, accounts receivable from sales of thermal coal of $41.7 million and $69.3 million, respectively, represented 38% and 37% of total trade receivables at each date. As of December 31, 2020 and 2019, accounts receivable from sales of metallurgical-quality coal of $69.1 million and $98.8 million, respectively, represented 62% and 59% of total trade receivables at each date. The Company uses shipping destination as the basis for attributing revenue to individual countries. Because title may transfer on brokered transactions at a point that does not reflect the end usage point, they are reflected as exports, and attributed to an end delivery point if that knowledge is known to the Company. The Company’s foreign revenues by geographical location as follows: Year Ended Year Ended Year Ended December 31, December 31, December 31, 2020 2019 2018 (In thousands) Europe $ 289,176 $ 537,117 $ 559,165 Asia 138,086 322,029 452,711 Central and South America 56,905 82,476 79,085 Africa 12,763 18,698 17,567 Brokered Sales — — 2,372 Total $ 496,930 $ 960,320 $ 1,110,900 The Company is committed under long-term contracts to supply thermal coal that meets certain quality requirements at specified prices. These prices are generally adjusted based on market indices. Quantities sold under some of these contracts may vary from year to year within certain limits at the option of the customer based on their requirements. The Company sold approximately 63.3 million tons of coal in 2020. Approximately 67% of this tonnage (representing approximately 50% of the Company’s revenues) was sold under long-term contracts (contracts having a term of greater than one year). Long-term contracts range in remaining life from one Third-party sources of coal The Company purchases coal from third parties that it sells to customers. Factors beyond the Company’s control could affect the availability of coal purchased by the Company. Disruptions in the quantities of coal purchased by the Company could impair its ability to fill customer orders or require it to purchase coal from other sources at prevailing market prices in order to satisfy those orders. Transportation The Company depends upon barge, rail, truck and belt transportation systems to deliver coal to its customers. Disruption of these transportation services due to weather-related problems, mechanical difficulties, strikes, lockouts, bottlenecks, and other events could temporarily impair the Company’s ability to supply coal to its customers. In the past, disruptions in rail service have resulted in missed shipments and production interruptions. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2020 | |
Revenue Recognition | |
Revenue Recognition | 25. Revenue Recognition ASC 606-10-50-5 requires that entities disclose disaggregated revenue information in categories (such as type of good or service, geography, market, type of contract, etc.) that depict how the nature, amount, timing, and uncertainty of revenue and cash flow are affected by economic factors. ASC 606-10-55-89 explains that the extent to which an entity’s revenue is disaggregated depends on the facts and circumstances that pertain to the entity’s contracts with customers and that some entities may need to use more than one type of category to meet the objective for disaggregating revenue. In general, the Company’s business segmentation is aligned according to the nature and economic characteristics of its coal and customer relationships and provides meaningful disaggregation of each segment’s results. The company has further disaggregated revenue between North America and Seaborne revenues which depicts the pricing and contract differences between the two. North America revenue is characterized by contracts with a term of one year or longer and typically the pricing is fixed; whereas Seaborne revenue generally is derived by spot or short term contracts with an indexed based pricing mechanism. Corporate, Other Other and PRB MET Thermal Eliminations Consolidated (in thousands) Year Ended December 31, 2020 North America revenues $ 659,807 $ 173,508 $ 112,923 $ 24,424 $ 970,662 Seaborne revenues 2,328 468,028 26,574 — 496,930 Total revenues $ 662,135 $ 641,536 $ 139,497 $ 24,424 $ 1,467,592 Year Ended December 31, 2019 North America revenues $ 915,750 $ 217,381 $ 190,051 $ 10,850 $ 1,334,032 Seaborne revenues — 773,169 187,151 — 960,320 Total revenues $ 915,750 $ 990,550 $ 377,202 $ 10,850 $ 2,294,352 Year Ended December 31, 2018 North America revenues $ 971,337 $ 160,969 $ 195,547 $ 13,034 $ 1,340,887 Seaborne revenues 1,911 875,652 233,337 — 1,110,900 Total revenues $ 973,248 $ 1,036,621 $ 428,884 $ 13,034 $ 2,451,787 As of December 31, 2020, the Company has outstanding performance obligations for approximately 56.8 million tons of coal for 2021 representing 49.7 million tons of fixed price contracts and 7.1 million tons of variable price contracts. Additionally, the Company has outstanding performance obligations of approximately 43.0 million tons in periods beyond 2021 comprised of 42.2 million tons of fixed price contracts and 0.8 million tons of variable price contracts. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | 26. Commitments and Contingencies The Company accrues for cost related to contingencies when a loss is probable and the amount is reasonably determinable. Disclosure of contingencies is included in the financial statements when it is at least reasonably possible that a material loss or an additional material loss in excess of amounts already accrued may be incurred. The Company is a party to numerous claims and lawsuits with respect to various matters. As of December 31, 2020 and 2019, the Company had accrued $0.1 million and $0.2 million, respectively, for all legal matters, all classified as current. The ultimate resolution of any such legal matter could result in outcomes which may be materially different from amounts the Company has accrued for such matters. The Company believes it has recorded adequate reserves for these matters. The Company has unconditional purchase obligations relating to purchases of coal, materials and supplies and capital commitments, other than reserve acquisitions, and is also a party to transportation capacity commitments. The future commitments under these agreements total $100.6 million in 2021, and is immaterial thereafter. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Information | |
Segment Information | 27. Segment Information The Company’s reportable business segments are based on two distinct lines of business, metallurgical coal and thermal coal, and may include a number of mine complexes. The Company manages its coal sales by market, not by individual mining complex. Geology, coal transportation routes to customers, and regulatory environments also have a significant impact on the Company’s marketing and operations management. Mining operations are evaluated based on Adjusted EBITDA, per-ton cash operating costs (defined as including all mining costs except depreciation, depletion, amortization, accretion on asset retirement obligations, and pass-through transportation expenses divided by segment tons sold), and on other non-financial measures, such as safety and environmental performance. Adjusted EBITDA is not a measure of financial performance in accordance with generally accepted accounting principles, and items excluded from Adjusted EBITDA are significant in understanding and assessing our financial condition. Therefore, Adjusted EBITDA should not be considered in isolation, nor as an alternative to net income (loss), income (loss) from operations, cash flows from operations or as a measure of our profitability, liquidity or performance under generally accepted accounting principles. The Company uses Adjusted EBITDA to measure the operating performance of its segments and allocate resources to the segments. Furthermore, analogous measures are used by industry analysts and investors to evaluate the Company’s operating performance. Investors should be aware that the Company’s presentation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies. The Company reports its results of operations primarily through the following reportable segments: Powder River Basin (PRB) segment containing the Company’s primary thermal operations in Wyoming; the Metallurgical (MET) segment, containing the Company’s metallurgical operations in West Virginia and the Other Thermal segment containing the Company’s supplementary thermal operations in Colorado and Illinois. Periods presented in this note have been recast for comparability. On December 31, 2020, the Company sold its Viper operation, which had been part of its Other Thermal segment. Viper’s results for the full year of 2020 are included in the Company’s full year 2020 results, and in all preceding periods’ results presented herein. For further information on the sale of Viper to Knight Hawk Holdings, LLC, please see Note 4, “Divestitures” to the Consolidated Financial Statements. On December 13, 2019, the Company closed on its definitive agreement to sell Coal-Mac LLC, an operating mine complex within the Company’s other thermal coal segment. Coal-Mac is included in the Other Thermal segment results below up to the date of divestiture. For further information on the divestiture, please see Note 4, “Divestitures” to the Consolidated Financial Statements. Operating segment results for the year ended December 31, 2020, the year ended December 31, 2019, and the year ended December 31, 2018 are presented below. The Company measures its segments based on “adjusted earnings before interest, taxes, depreciation, depletion, amortization, and accretion on asset retirements obligations (Adjusted EBITDA).” Adjusted EBITDA does not reflect mine closure or impairment costs, since those are not reflected in the operating income reviewed by management. The Corporate, Other and Eliminations grouping includes these charges, as well as the change in fair value of coal derivatives and coal trading activities, net; corporate overhead; land management activities; other support functions; and the elimination of intercompany transactions. Corporate, Other Other and (In thousands) PRB MET Thermal Eliminations Consolidated Year Ended December 31, 2020 Revenues $ 662,135 $ 641,536 $ 139,497 $ 24,424 $ 1,467,592 Adjusted EBITDA 50,246 91,322 (16,211) (101,614) 23,743 Depreciation, depletion and amortization 21,375 91,202 6,976 1,999 121,552 Accretion on asset retirement obligation 13,979 1,943 1,389 2,576 19,887 Total assets 179,401 811,605 16,935 714,531 1,722,472 Capital expenditures 4,688 269,273 6,031 5,829 285,821 Year Ended December 31, 2019 Revenues $ 915,750 $ 990,550 $ 377,202 $ 10,850 $ 2,294,352 Adjusted EBITDA 110,528 305,363 41,495 (94,219) 363,167 Depreciation, depletion and amortization 20,810 74,211 14,414 2,186 111,621 Accretion on asset retirement obligation 12,542 2,123 2,413 3,470 20,548 Total assets 256,460 625,134 105,411 880,751 1,867,756 Capital expenditures 29,420 211,718 20,088 5,130 266,356 Year Ended December 31, 2018 Revenues $ 973,248 $ 1,036,621 $ 428,884 $ 13,034 $ 2,451,787 Adjusted EBITDA 126,525 349,524 68,620 (106,891) 437,778 Depreciation, depletion and amortization 33,120 69,560 14,699 13,291 130,670 Accretion on asset retirement obligation 19,541 1,874 2,261 4,294 27,970 Total assets 278,314 545,061 125,333 938,352 1,887,060 Capital expenditures 12,140 64,307 11,999 6,826 95,272 A reconciliation of segment Adjusted EBITDA to consolidated income (loss) from continuing operations before income taxes follows: Year Ended Year Ended Year Ended December 31, December 31, December 31, (In thousands) 2020 2019 2018 Net income (loss) $ (344,615) $ 233,799 $ 312,577 Provision for (benefit from) income taxes (7) 248 (52,476) Interest expense, net 10,624 6,794 13,689 Depreciation, depletion and amortization 121,552 111,621 130,670 Accretion on asset retirement obligations 19,887 20,548 27,970 Costs related to proposed joint venture with Peabody Energy 16,087 13,816 — Asset impairment and restructuring 221,380 — — Gain on property insurance recovery related to Mountain Laurel longwall (23,518) — — (Gain) loss on divestitures (1,505) 13,312 — Preference Rights Lease Application settlement income — (39,000) — Net loss resulting from early retirement of debt and debt restructuring — — 485 Non-service related pension and postretirement benefit costs 3,884 2,053 3,202 Reorganization items, net (26) (24) 1,661 Adjusted EBITDA $ 23,743 $ 363,167 $ 437,778 EBITDA from idled or otherwise disposed operations 15,858 12,926 2,492 Selling, general and administrative expenses 82,397 95,781 100,300 Other 3,359 (14,488) 4,099 Segment Adjusted EBITDA from coal operations $ 125,357 $ 457,386 $ 544,669 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
Valuation and Qualifying Accounts | |
Valuation and Qualifying Accounts | Valuation and Qualifying Accounts Additions (Reductions) Balance at Charged to Charged to Balance at Beginning of Costs and Other End of Year Expenses Accounts Deductions (a) Year (In thousands) Year Ended December 31, 2020 Reserves deducted from asset accounts: Accounts receivable and other receivables $ 10,636 — — — $ 10,636 Current assets — supplies and inventory 2,216 477 (137) (b) 1,982 574 Deferred income taxes 506,316 76,524 (8,845) (c) — 573,995 Year Ended December 31, 2019 Reserves deducted from asset accounts: Accounts receivable and other receivables $ — — 10,636 (b) — $ 10,636 Current assets — supplies and inventory 648 1,737 (35) (b) 134 2,216 Deferred income taxes 530,612 (24,296) — — 506,316 Year Ended December 31, 2018 Reserves deducted from asset accounts: Accounts receivable and other receivables $ — $ — $ — $ — $ — Current assets — supplies and inventory 261 1,247 — 860 648 Deferred income taxes 610,571 (79,959) — — 530,612 (a) Reserves utilized, unless otherwise indicated. (b) Disposition of subsidiaries (c) Recorded through equity |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies | |
Accounting Estimates | Accounting Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenues and expenses in the accompanying consolidated financial statements and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents are stated at cost. Cash equivalents consist of highly-liquid investments with an original maturity of three months or less when purchased and investments in commercial paper which the Company classifies as cash and cash equivalents. |
Restricted Cash | Restricted Cash Amounts included in restricted cash represent cash held in trust related to the Tax Exempt Bonds. Refer to Note 14 to the Consolidated Financial Statements, “Debt and Financing Arrangements” for further disclosures related to the Company’s Tax Exempt Bonds. |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded at amounts that are expected to be collected, based on past collection history, the economic environment and specified risks identified in the receivables portfolio. |
Inventories | Inventories Coal and supplies inventories are valued at the lower of average cost or market. Coal inventory costs include labor, supplies, equipment costs, transportation costs incurred prior to the transfer of title to customers and operating overhead. The costs of removing overburden, called stripping costs, incurred during the production phase of the mine are considered variable production costs and are included in the cost of the coal extracted during the period the stripping costs are incurred. |
Investments and Membership Interests in Joint Ventures | Investments and Membership Interests in Joint Ventures Investments and membership interests in joint ventures are accounted for under the equity method of accounting if the Company has the ability to exercise significant influence, but not control, over the entity. The Company’s share of the entity’s income or loss is reflected in “Other operating income, net” in the Consolidated Statements of Operations. Information about investment activity is provided in Note 11 to the Consolidated Financial Statements, “Equity Method Investments and Membership Interests in Joint Ventures.” Investments in debt securities and marketable equity securities that do not qualify for equity method accounting are classified as available-for-sale and are recorded at their fair values. Unrealized gains and losses on these investments are recorded in other comprehensive income or loss. A decline in the value of an investment that is considered other-than-temporary would be recognized in operating expenses. |
Exploration Costs | Exploration Costs Costs to acquire permits for exploration activities are capitalized. Drilling and other costs related to locating coal deposits and evaluating the economic viability of such deposits are expensed as incurred. |
Prepaid Royalties | Prepaid Royalties Leased mineral rights are often acquired through royalty payments. When royalty payments represent prepayments recoupable against royalties owed on future revenues from the underlying coal, they are recorded as a prepaid asset, with amounts expected to be recouped within one year classified as current. When coal from these leases is sold, the royalties owed are recouped against the prepayment and charged to cost of sales. An impairment charge is recognized for prepaid royalties that are not expected to be recouped. |
Property, Plant and Equipment | Property, Plant and Equipment Plant and Equipment Plant and equipment were recorded at fair value at emergence during fresh start accounting; subsequent purchases of property, plant and equipment have been recorded at cost. Interest costs incurred during the construction period for major asset additions are capitalized. The Company capitalized $11.9 million and $2.9 million of interest costs during years ended December 31, 2020 and 2019, respectively. Expenditures that extend the useful lives of existing plant and equipment or increase the productivity of the asset are capitalized. The cost of maintenance and repairs that do not extend the useful life or increase the productivity of the asset is expensed as incurred. Preparation plants and loadouts are depreciated using the units-of-production method over the estimated recoverable reserves, subject to a minimum level of depreciation. Other plant and equipment are depreciated principally using the straight-line method over the estimated useful lives of the assets, limited by the remaining life of the mine. The useful lives of mining equipment, including longwalls, draglines and shovels, range from 1 to 16 years. The useful lives of buildings and leasehold improvements generally range from 3 to 20 years. Deferred Mine Development Costs of developing new mines or significantly expanding the capacity of existing mines are capitalized and amortized using the units-of-production method over the estimated recoverable reserves that are associated with the property being benefited. Costs may include construction permits and licenses; mine design; construction of access roads, shafts, slopes and main entries; and removing overburden to access reserves in a new pit. Additionally, deferred mine development includes the asset cost associated with asset retirement obligations. Coal sales revenue related to incidental production during the development phase will be recorded as coal sales revenue with an offset to cost of coal sales based on the estimated cost per ton sold for the mine when the asset is in place for its intended use. Coal Lands and Mineral Rights Rights to coal reserves may be acquired directly through governmental or private entities. A significant portion of the Company’s coal reserves are controlled through leasing arrangements. Lease agreements are generally long-term in nature (original terms range from 10 to 50 years), and substantially all of the leases contain provisions that allow for automatic extension of the lease term providing certain requirements are met. Leases of mineral reserves and related land leases are exempt from the provisions of the leasing standard. The net book value of the Company’s coal interests was $290.3 million and $360.9 million at December 31, 2020 and 2019, respectively. Payments to acquire royalty lease agreements and lease bonus payments are capitalized as a cost of the underlying mineral reserves and depleted over the life of proven and probable reserves. Coal lease rights are depleted using the units-of-production method, and the rights are assumed to have no residual value. The Company currently does not have any future lease bonus payments. Depreciation, depletion and amortization The depreciation, depletion and amortization related to long-lived assets is reflected in the Consolidated Statements of Operations as a separate line item. No depreciation, depletion or amortization is included in any other operating cost categories. Impairment If facts and circumstances suggest that the carrying value of a long-lived asset or asset group may not be recoverable, the asset or asset group is reviewed for potential impairment. If this review indicates that the carrying amount of the asset will not be recoverable through projected undiscounted cash flows generated by the asset and its related asset group over its remaining life, then an impairment loss is recognized by reducing the carrying value of the asset to its fair value. The Company may, under certain circumstances, idle mining operations in response to market conditions or other factors. Because an idling is not a permanent closure, it is not considered an automatic indicator of impairment. For information on Impairment, see Note 5 to the Consolidated Financial Statements, “Asset impairment and restructuring.” |
Deferred Financing Costs | Deferred Financing Costs The Company capitalizes costs incurred in connection with new borrowings, the establishment or enhancement of credit facilities and the issuance of debt securities. These costs are amortized as an adjustment to interest expense over the life of the borrowing or term of the credit facility using the interest method. Debt issuance costs related to a recognized liability are presented in the balance sheet as a direct reduction from the carrying amount of that liability whereas debt issuance costs related to a credit facility with no balance outstanding are shown as an asset. The unamortized balance of deferred financing costs shown as an asset was $1.9 million at December 31, 2020, with $0.7 million classified as current; the unamortized balance of deferred financing costs shown as an asset at December 31, 2019 was $3.0 million with $2.0 million classified as current. The current amounts are classified within “Other current assets” and the noncurrent amounts are classified within “Other noncurrent assets.” For information on the unamortized balance of deferred financing fees related to outstanding debt, see Note 14 to the Consolidated Financial Statements, “Debt and Financing Arrangements.” |
Revenue Recognition | Revenue Recognition Revenues include sales to customers of coal produced at Company operations and coal purchased from third parties. The Company recognizes revenue at the time risk of loss passes to the customer at contracted amounts. Transportation costs are included in cost of sales and amounts billed by the Company to its customers for transportation are included in revenues. |
Other Operating Income, net | Other Operating Income, net Other operating income, net in the accompanying Consolidated Statements of Operations reflects income and expense from sources other than physical coal sales, including: bookouts, or the practice of offsetting purchase and sale contracts for shipping convenience purposes; contract settlements; royalties earned from properties leased to third parties; income from equity investments (Note 11, “Equity Method Investments and Membership Interests in Joint Ventures”); non-material gains and losses from divestitures and dispositions of assets; and realized gains and losses on derivatives that do not qualify for hedge accounting and are not held for trading purposes (Note 12, “Derivatives”); and land management expenses. |
Asset Retirement Obligations | Asset Retirement Obligations The Company’s legal obligations associated with the retirement of long-lived assets are recognized at fair value at the time the obligations are incurred. Accretion expense is recognized through the expected settlement date of the obligation. Obligations are incurred at the time development of a mine commences for underground and surface mines or construction begins for support facilities, refuse areas and slurry ponds. The obligation’s fair value is determined using a discounted cash flow technique and is based upon permit requirements and various estimates and assumptions that would be used by market participants, including estimates of disturbed acreage, reclamation costs and assumptions regarding equipment productivity. Upon initial recognition of a liability, a corresponding amount is capitalized as part of the carrying value of the related long-lived asset. The Company reviews its asset retirement obligation at least annually and makes necessary adjustments for permit changes as granted by state authorities and for revisions of estimates of the amount and timing of costs. For ongoing operations, adjustments to the liability result in an adjustment to the corresponding asset. For idle operations, adjustments to the liability are recognized as income or expense in the period the adjustment is recorded. Any difference between the recorded obligation and the actual cost of reclamation is recorded in profit or loss in the period the obligation is settled. See additional discussion in Note 16 to the Consolidated Financial Statements, “Asset Retirement Obligations.” |
Loss Contingencies | Loss Contingencies The Company accrues for cost related to contingencies when a loss is probable and the amount is reasonably determinable. Disclosure of contingencies is included in the financial statements when it is at least reasonably possible that a material loss or an additional material loss in excess of amounts already accrued may be incurred. The amount accrued represents the Company’s best estimate of the loss, or, if no best estimate within a range of outcomes exists, the minimum amount in the range. |
Derivative Instruments | Derivative Instruments The Company generally utilizes derivative instruments to manage exposures to commodity prices and interest rate risk on long-term debt. Additionally, the Company may hold certain coal derivative instruments for trading purposes. Derivative financial instruments are recognized on the balance sheet at fair value. Certain coal contracts may meet the definition of a derivative instrument, but because they provide for the physical purchase or sale of coal in quantities expected to be used or sold by the Company over a reasonable period in the normal course of business, they are not recognized on the balance sheet. Certain derivative instruments are designated as the hedge instrument in a hedging relationship. In a fair value hedge, the Company hedges the risk of changes in the fair value of a firm commitment, typically a fixed-price coal sales contract. Changes in both the hedged firm commitment and the fair value of a derivative used as a hedge instrument in a fair value hedge are recorded in earnings. In a cash flow hedge, the Company hedges the risk of changes in future cash flows related to the underlying item being hedged. Changes in the fair value of the derivative instrument used as a hedge instrument in a cash flow hedge are recorded in other comprehensive income or loss. Amounts in other comprehensive income or loss are reclassified to earnings when the hedged transaction affects earnings and are classified in a manner consistent with the transaction being hedged. The Company formally documents the relationships between hedging instruments and the respective hedged items, as well as its risk management objectives for hedge transactions. The Company evaluates the effectiveness of its hedging relationships both at the hedge’s inception and on an ongoing basis. Any ineffective portion of the change in fair value of a derivative instrument used as a hedge instrument in a fair value or cash flow hedge is recognized immediately in earnings. The ineffective portion is based on the extent to which exact offset is not achieved between the change in fair value of the hedge instrument and the cumulative change in expected future cash flows on the hedged transaction from inception of the hedge in a cash flow hedge or the change in the fair value. Ineffectiveness was insignificant for the periods disclosed within. See Note 12 to the Consolidated Financial Statements, “Derivatives” for further disclosures related to the Company’s derivative instruments. |
Fair Value | Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly hypothetical transaction between market participants at a given measurement date. Valuation techniques used must maximize the use of observable inputs and minimize the use of unobservable inputs. See Note 17 to the Consolidated Financial Statements, “Fair Value Measurements” for further disclosures related to the Company’s recurring fair value estimates. |
Income Taxes | Income Taxes Deferred income taxes are provided for temporary differences arising from differences between the financial statement and tax basis of assets and liabilities existing at each balance sheet date using enacted tax rates anticipated to be in effect when the related taxes are expected to be paid or recovered. A valuation allowance is established if it is more likely than not that a deferred tax asset will not be realized. Management reassesses the ability to realize its deferred tax assets annually in the fourth quarter or when circumstances indicate that the ability to realize deferred tax assets has changed. In determining the need for a valuation allowance, the Company considers projected realization of tax benefits based on expected levels of future taxable income, available tax planning strategies and the reversal of temporary differences. Benefits from tax positions that are uncertain are not recognized unless the Company concludes that it is more likely than not that the position would be sustained in a dispute with taxing authorities, should the dispute be taken to the court of last resort. The Company would measure any such benefit at the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement with taxing authorities. See Note 15 to the Consolidated Financial Statements, “Taxes” for further disclosures about income taxes. |
Benefit Plans | Benefit Plans The Company has non-contributory defined benefit pension plans covering most of its salaried and hourly employees. On January 1, 2015 the Company’s cash balance and excess pension plans were amended to freeze new service credits for any new or active employees. The Company also currently provides certain postretirement medical and life insurance coverage for eligible employees. The cost of providing these benefits is determined on an actuarial basis and accrued over the employees’ period of active service. The Company recognizes the overfunded or underfunded status of these plans as determined on an actuarial basis on the balance sheet and the changes in the funded status are recognized in other comprehensive income. The Company amortizes actuarial gains and losses over the remaining service attribution periods of the employees using the corridor method. See Note 21 to the Consolidated Financial Statements, “Employee Benefit Plans” for additional disclosures relating to these obligations. |
Stock-Based Compensation | Stock-Based Compensation The compensation cost of all stock-based awards is determined based on the grant-date fair value of the award, and is recognized over the requisite service period. The grant-date fair value of option awards and restricted stock awards with a market condition is determined using a Monte Carlo simulation. Compensation cost for an award with performance conditions is accrued if it is probable that the conditions will be met. The Company accounts for forfeitures as they occur. See further discussion in Note 19 to the Consolidated Financial Statements, “Stock-Based Compensation and Other Incentive Plans.” |
Recently Adopted Accounting Guidance and Recent Accounting Guidance Issued Not Yet Effective | Recently Adopted Accounting Guidance In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments” and also issued subsequent amendments to the initial guidance under ASU 2018-19, ASU 2019-04 and ASU 2019- 05. The standard modifies the measurement approach for credit losses on financial instruments, including trade receivables, from an incurred loss method to a current expected credit loss method, otherwise known as “CECL.” The standard requires the measurement of expected credit losses to be based on relevant information, including historical experience, current conditions and a forecast that is supportable. The standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years; early adoption is permitted. The standard must be adopted by applying a cumulative adjustment to retained earnings. The Company adopted the standard in the first quarter of 2020, with minimal impact to the Company’s financial results. In August 2018, the FASB issued ASU 2018- 13, “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.” The primary focus of ASU 2018-13 is to improve the effectiveness of the disclosures for fair value measurements by requiring public entities to disclose certain new information while modifying some existing disclosure requirements. The FASB issued this ASU as part of its broader disclosure framework project, which aims to improve the effectiveness of disclosures in the notes to the financial statements by focusing on requirements that clearly communicate the most important information to users of the financial statements. The ASU is effective for public companies for fiscal years beginning after December 15, 2019, and interim periods therein with early adoption permitted. The Company adopted with no impact to the Company’s financial statements. In August 2018, the FASB issued ASU 2018-14, “Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715- 20), Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans.” ASU 2018-14 makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension and postretirement benefit plants. The new guidance eliminates requirements for certain disclosures that are no longer considered cost beneficial and adds new ones that the FASB considers pertinent. The FASB issued this ASU as part of its broader disclosure framework project, which aims to improve the effectiveness of disclosures in the notes to the financial statements by focusing on requirements that clearly communicate the most important information to users of the financial statements. The ASU is effective for public companies for fiscal years beginning after December 15, 2020, and interim periods therein with early adoption permitted. The Company adopted with minimal impact to the Company’s financial statements. In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." The amendments provide optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. We are currently evaluating our contracts and the optional expedients provided by the new standard. Recent Accounting Guidance Issued Not Yet Effective In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes.” ASU 2019-12 eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The ASU is effective for public companies for fiscal years beginning after December 15, 2020, and interim periods therein with early adoption permitted. The Company is reviewing the provisions of the standard but does not expect a significant impact to the Company's financial statements. In August 2020, the FASB issued ASU 2020-06 , Derivatives and Hedging Derivatives and Hedging—Contracts in Entity’s Own Equity |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Capital Stock | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Pension, Postretirement Accumulated and Other Post- Other Derivative Employment Available-for- Comprehensive Instruments Benefits Sale Securities Income (loss) (In thousands) January 1, 2019 $ 3,328 $ 40,311 $ (343) $ 43,296 Unrealized gains (losses) 4,648 (27,692) 508 (22,536) Amounts reclassified from accumulated other comprehensive income (loss) (10,540) (4,346) (185) (15,071) Balance at December 31, 2019 $ (2,564) $ 8,273 $ (20) $ 5,689 Unrealized losses (3,076) (38,533) (66) (41,675) Amounts reclassified from accumulated other comprehensive income (loss) 1,749 (1,199) (265) 285 Balance at December 31, 2020 $ (3,891) $ (31,459) $ (351) $ (35,701) |
Schedule of Comprehensive Income Reclassifications | December 31, December 31, Line Item in the Details About AOCI Components 2020 2019 Statements of Operations Coal hedges $ 392 $ 9,480 Revenues Interest rate hedges (2,141) 1,060 Interest expense — — Provision for (benefit from) income taxes $ (1,749) $ 10,540 Net of tax Pension, postretirement and other post-employment benefits Amortization of actuarial gains (losses), net 1 $ 191 $ 3,020 Non-service related pension and postretirement benefit (costs) credits Amortization of prior service credits 112 — Non-service related pension and postretirement benefit (costs) credits Pension settlement 896 1,326 Non-service related pension and postretirement benefit (costs) credits $ 1,199 $ 4,346 Total before tax — — Provision for (benefit from) income taxes $ 1,199 $ 4,346 Net of tax Available-for-sale securities 2 $ 265 $ 185 Interest and investment income — — Provision for (benefit from) income taxes $ 265 $ 185 Net of tax 1 2 |
Asset impairment and restruct_2
Asset impairment and restructuring (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Asset impairment and restructuring | |
Schedule of Asset impairment charges | Year Ended December 31, Description 2020 (In thousands) Coal lands and mineral rights $ 33,197 Plant and equipment 43,197 Deferred development 76,807 Parts and Supplies 8,639 Equity Investment 36,167 Severance Pay - VSP 13,373 Other 10,000 $ 221,380 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventories | |
Inventories | December 31, December 31, 2020 2019 (In thousands) Coal $ 49,436 $ 46,815 Repair parts and supplies 76,572 84,083 $ 126,008 $ 130,898 |
Investments in Available-for-_2
Investments in Available-for-Sale Securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments in Available-for-Sale Securities | |
Available-for-sale Securities | December 31, 2020 Gross Allowance Unrealized for Credit Fair Cost Basis Gains Losses Losses Value (In thousands) Available-for-sale: U.S. government and agency securities $ 57,299 $ 11 $ (86) $ — $ 57,224 Corporate notes and bonds 39,817 1 (277) — 39,541 Total Investments $ 97,116 $ 12 $ (363) $ — $ 96,765 December 31, 2019 Gross Allowance Unrealized for Credit Fair Cost Basis Gains Losses Losses Value (In thousands) Available-for-sale: U.S. government and agency securities $ 35,044 $ 1 $ (16) $ — $ 35,029 Corporate notes and bonds 100,643 200 (205) — 100,638 Total Investments $ 135,687 $ 201 $ (221) $ — $ 135,667 |
Equity Method Investments and_2
Equity Method Investments and Membership Interests in Joint Ventures (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Membership Interests in Joint Ventures | |
Schedule Of Equity Method Investments | Knight (In thousands) Hawk DTA Total December 31, 2018 $ 90,021 $ 14,655 $ 104,676 Sale of investment in affiliates (1,879) — (1,879) Advances to (distributions from) affiliates, net (5,884) 5,500 (384) Equity in comprehensive income (loss) 7,953 (4,778) 3,175 December 31, 2019 $ 90,211 $ 15,377 $ 105,588 Advances to (distributions from) affiliates, net (4,235) 1,549 (2,686) Equity in comprehensive income (loss) 4,576 (1,228) 3,348 Additional interest in Knight Hawk 1,700 — 1,700 Impairment of equity investment (36,167) — (36,167) December 31, 2020 $ 56,085 $ 15,698 $ 71,783 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivatives | |
Schedule of Price Risk Derivatives | (Tons in thousands) 2021 2022 Total Coal sales 193 — 193 Coal purchases 82 — 82 |
Disclosure of Fair Value of Derivatives | December 31, 2020 December 31, 2019 Fair Value of Derivatives Asset Liability Asset Liability (In thousands) Derivative Derivative Derivative Derivative Derivatives Designated as Hedging Instruments Coal $ — $ — $ 1,351 $ (962) Derivatives Not Designated as Hedging Instruments Heating oil -- diesel purchases 237 — 133 (112) Coal -- held for trading purposes 1,914 (1,595) 18,467 (18,940) Coal -- risk management 1,094 (804) 11,662 (5,856) Natural gas — — 3 — Total $ 3,245 $ (2,399) $ 30,265 $ (24,908) Total derivatives $ 3,245 $ (2,399) $ 31,616 $ (25,870) Effect of counterparty netting (2,392) 2,392 (25,759) 25,759 Net derivatives as classified in the balance sheets $ 853 $ (7) $ 846 $ 5,857 $ (111) $ 5,746 December 31, December 31, 2020 2019 Net derivatives as reflected on the balance sheets (in thousands) Heating oil and coal Other current assets $ 853 $ 5,857 Coal Accrued expenses and other current liabilities (7) (111) $ 846 $ 5,746 |
Effects of Derivatives on Measures of Financial Performance | Derivatives used in Cash Flow Hedging Relationships (in thousands) For the noted periods, Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) Year Ended Year Ended Year Ended December 31, December 31, December 31, 2020 2019 2018 Coal sales (1) $ 500 $ 10,249 $ (7,517) Coal purchases (2) (496) (1,231) 1,348 $ 4 $ 9,018 $ (6,169) Gains (Losses) Reclassified from Other Comprehensive Income into Income (Effective Portion) Year Ended Year Ended Year Ended December 31, December 31, December 31, 2020 2019 2018 Coal sales $ (1,850) $ 10,167 $ (10,912) Coal purchases 1,458 (686) 2,707 $ (392) $ 9,481 $ (8,205) Derivatives Not Designated as Hedging Instruments (in thousands) For the noted periods, Gain (Loss) Recognized Year Ended Year Ended Year Ended December 31, December 31, December 31, 2020 2019 2018 Coal trading— realized and unrealized (3) $ 222 $ (1,013) $ 135 Coal risk management— unrealized (3) (5,517) 19,713 (9,530) Natural gas trading — realized and unrealized (3) 76 (99) 277 Change in fair value of coal derivatives and coal trading activities, net total $ (5,219) $ 18,601 $ (9,118) Coal risk management — realized (4) $ 9,258 $ 487 $ (8,734) Heating oil — diesel purchases (4) $ (558) $ (2,291) $ (505) Location in income statement: (1) — Revenues (2) — Cost of sales (3) — Change in fair value of coal derivatives and coal trading activities, net (4) — Other operating income, net |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Expenses and Other Current Liabilities | |
Schedule of Accrued Expenses and Other Current Liabilities | December 31, December 31, 2020 2019 (In thousands) Payroll and employee benefits $ 39,443 $ 50,929 Taxes other than income taxes 56,232 69,061 Interest 2,795 133 Workers’ compensation 15,259 16,119 Asset retirement obligations 27,032 10,366 Other 14,495 10,559 $ 155,256 $ 157,167 |
Debt and Financing Arrangemen_2
Debt and Financing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt and Financing Arrangements | |
Schedule of Long-term debt | December 31, December 31, 2020 2019 (In thousands) Term loan due 2024 ($288.8 million face value) $ 288,033 $ 290,825 Tax Exempt Bonds ($53.1 million face value) 53,090 — Convertible Debt ($155.3 million face value) 115,367 — Other 62,695 25,007 Debt issuance costs (10,873) (5,013) 508,312 310,819 Less: current maturities of debt 31,097 20,753 Long-term debt $ 477,215 $ 290,066 |
Schedule of Interest Rate Derivatives | Below is a summary of the Company’s outstanding interest rate swap agreements designated as hedges as of December 31, 2020: Notional Amount (in millions) Effective Date Fixed Rate Receive Rate Expiration Date $ 200.0 June 30, 2020 2.249 % 1-month LIBOR June 30, 2021 $ 100.0 June 30, 2021 2.315 % 1-month LIBOR June 30, 2023 |
Schedule of Maturities of Long-term Debt | Year (In thousands) 2021 $ 33,590 2022 16,712 2023 17,631 2024 283,513 2025 208,340 Thereafter — $ 559,786 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Taxes | |
Schedule of Components of Income Tax Expense (Benefit) | Year Ended Year Ended Year Ended December 31, December 31, December 31, 2020 2019 2018 (In thousands) Current: Federal $ 518 $ (36) $ 86 State (569) 124 136 Total current $ (51) $ 88 $ 222 Deferred: Federal 44 667 (52,309) State — (507) (389) Total deferred $ 44 $ 160 $ (52,698) $ (7) $ 248 $ (52,476) |
Schedule of Effective Income Tax Rate Reconciliation | Year Ended Year Ended Year Ended December 31, December 31, December 31, 2020 2019 2018 Income tax provision at statutory rate $ (72,371) $ 49,150 $ 54,621 Percentage depletion allowance (7,763) (17,743) (17,725) State taxes, net of effect of federal taxes (3,298) (12,769) 4,480 Change in valuation allowance 76,524 (24,206) (79,961) Current expense associated with uncertain tax positions Other, net 6,901 5,816 3,754 Provision for (benefit from) income taxes $ (7) $ 248 $ (52,476) |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities that result from carryforwards and temporary differences between the financial statement basis and tax basis of assets and liabilities are summarized as follows: December 31, December 31, 2020 2019 (In thousands) Deferred tax assets: Tax loss carryforwards $ 352,342 $ 294,535 Tax credit carryforwards 3,117 5,297 Investment in partnerships 213,478 190,418 Other 19,377 20,387 Gross deferred tax assets $ 588,314 $ 510,637 Valuation allowance (573,995) (506,316) Total deferred tax assets $ 14,319 $ 4,321 Deferred tax liabilities: Plant and equipment 1,219 2,063 Convertible Notes 8,845 — Other 4,218 2,178 Total deferred tax liabilities $ 14,282 $ 4,241 Net deferred tax asset $ 37 $ 80 |
Summary of Income Tax Contingencies | (In thousands) Balance at December 31, 2017 $ 11,383 Additions based on tax positions related to the current year 28,387 Additions for tax positions of prior years 3,228 Reductions for tax positions of prior years (634) Reductions as a result of lapses in the statute of limitations (3,271) Balance at December 31, 2018 39,093 Additions based on tax positions to the current year 2,980 Reductions for tax positions of prior years (1,970) Reductions as a result of lapses in the statute of limitations (374) Balance at December 31, 2019 39,729 Additions for tax positions related to the current year 1,583 Additions for tax positions related to the prior year 7,918 Reductions for tax positions of prior years (732) Reductions as a result of lapses in the statute of limitations (382) Balance at December 31, 2020 $ 48,116 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Asset Retirement Obligation | |
Schedule of Change in Asset Retirement Obligation | Year Ended Year Ended December 31, December 31, 2020 2019 (In thousands) Balance at beginning of period (including current portion) $ 252,798 $ 243,417 Accretion expense 19,887 20,548 Obligations of divested operations (15,455) (12,185) Adjustments to the liability from changes in estimates 14,889 11,438 Liabilities settled (14,355) (10,420) Balance at period end $ 257,764 $ 252,798 Current portion included in accrued expenses (27,032) (10,366) Noncurrent liability $ 230,732 $ 242,432 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures Measurements | |
Summary Of Financial Assets And Liabilities Accounted For At Fair Value | December 31, 2020 Total Level 1 Level 2 Level 3 (In thousands) Assets: Investments in marketable securities $ 96,765 $ 57,224 $ 39,541 $ — Derivatives 853 21 832 — Total assets $ 97,618 $ 57,245 $ 40,373 $ — Liabilities: Derivatives $ 3,899 $ 7 $ 3,892 $ — Fair Value at December 31, 2019 Total Level 1 Level 2 Level 3 (In thousands) Assets: Investments in marketable securities $ 135,667 $ 35,029 $ 100,638 $ — Derivatives 5,857 5,269 527 61 Total assets $ 141,524 $ 40,298 $ 101,165 $ 61 Liabilities: Derivatives $ 3,065 $ — $ 3,065 $ — |
Summary Of Change In The Fair Values Of Financial Instruments Categorized As Level 3 | 2020 2019 (In thousands) Balance, beginning of period $ 61 $ 532 Realized and unrealized (gains) losses recognized in earnings, net (1,158) (1,893) Purchases 1,235 1,597 Issuances (138) (208) Settlements — 33 Ending balance $ — $ 61 |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Capital Stock | |
Dividends declared and paid | 2020: Dividends per share Amount 1st quarter $ 0.50 $ 8,245 2nd quarter — — 3rd quarter — — 4th quarter — — Total cash dividends declared and paid $ 0.50 $ 8,245 Amount 2019: Dividends per share (in thousands) 1st quarter $ 0.45 $ 7,839 2nd quarter 0.45 7,425 3rd quarter 0.45 7,000 4th quarter 0.45 7,956 Total cash dividends declared and paid $ 1.80 $ 30,220 |
Stock-Based Compensation and _2
Stock-Based Compensation and Other Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stock-Based Compensation and Other Incentive Plans | |
Schedule of Restricted Stock Units Activity | Time Based Awards Performance Based Awards Weighted Weighted Average Average Restricted Grant-Date Restricted Grant-Date Stock Units Fair Value Stock Units Fair Value (Shares in thousands) Outstanding at January 1, 2020 238 $ 87.50 195 $ 106.44 Granted 212 47.12 186 48.99 Forfeited/Canceled (8) 69.56 (30) 95.49 Vested (101) 83.26 (65) 100.99 Unvested outstanding at December 31, 2020 341 $ 64.38 286 $ 71.44 |
Workers Compensation Expense (T
Workers Compensation Expense (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Workers Compensation Expense | |
Workers' compensation expense | Workers’ compensation expense consists of the following components: Year Ended Year Ended Year Ended December 31, December 31, December 31, 2020 2019 2018 Self-insured occupational disease benefits: Service cost $ 7,564 $ 6,677 $ 7,440 Interest cost (1) 5,115 4,922 4,365 Net amortization (1) 1,189 — — Total occupational disease $ 13,868 $ 11,599 $ 11,805 Traumatic injury claims and assessments 12,922 13,050 5,395 Total workers’ compensation expense $ 26,790 $ 24,649 $ 17,200 (1) In accordance with the adoption of ASU 2017-07, “Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” these costs are recorded within Nonoperating expenses in the Consolidated Statements of Operations on the line item “Non-service related pension and postretirement benefit costs.” |
Schedule of Changes in Occupational Disease Obligations | Year Ended Year Ended December 31, December 31, (In thousands) 2020 2019 Beginning of period $ 158,325 $ 118,900 Service cost 7,564 6,677 Interest cost 5,115 4,922 Actuarial loss 19,327 35,993 Benefit and administrative payments (7,330) (8,167) $ 183,001 $ 158,325 |
Schedule of Occupational Disease Obligation Assumptions Used | Year Ended December 31, 2020 Year Ended December 31, 2019 (Percentages) Discount rate 2.48 3.31 |
Workers' compensation liabilities | Year Ended Year Ended December 31, December 31, 2020 2019 (In thousands) Occupational disease costs $ 183,001 $ 158,325 Traumatic and other workers’ compensation claims 76,953 73,393 Total obligations 259,954 231,718 Less amount included in accrued expenses 15,259 16,119 Noncurrent obligations $ 244,695 $ 215,599 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Employee Benefit Plans | |
Schedule of Pension Benefit Costs (Credits) | Pension Benefits Other Postretirement Benefits Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, 2020 2019 2020 2019 (In thousands) CHANGE IN BENEFIT OBLIGATIONS Benefit obligations at beginning of period $ 217,548 $ 228,873 $ 87,867 $ 88,563 Service cost — — 419 480 Interest cost 5,498 8,141 2,392 3,505 Settlement gain (896) (1,326) — — Curtailments — — 284 30 Benefits paid (38,221) (34,918) (6,507) (7,304) Other-primarily actuarial loss 18,338 16,778 16,443 2,593 Benefit obligations at end of period $ 202,267 $ 217,548 $ 100,898 $ 87,867 CHANGE IN PLAN ASSETS Value of plan assets at beginning of period $ 211,802 $ 212,506 $ — $ — Actual return on plan assets 23,055 33,998 — — Employer contributions 2,612 216 6,507 7,304 Benefits paid (38,221) (34,918) (6,507) (7,304) Value of plan assets at end of period $ 199,248 $ 211,802 $ — $ — Accrued benefit cost $ (3,019) $ (5,746) $ (100,898) $ (87,867) ITEMS NOT YET RECOGNIZED AS A COMPONENT OF NET PERIODIC BENEFIT COST Prior service credit $ 880 $ 992 $ — $ — Accumulated gain 10,790 14,537 2,226 20,333 $ 11,670 $ 15,529 2,226 $ 20,333 BALANCE SHEET AMOUNTS Current liability $ (140) $ (270) $ (6,510) $ (7,300) Noncurrent liability (2,879) (5,476) (94,388) (80,567) $ (3,019) $ (5,746) $ (100,898) $ (87,867) |
Other Postretirement Benefit Costs | Pension Benefits Other Postretirement Benefits Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, December 31, December 31, 2020 2019 2018 2020 2019 2018 (In thousands) Service cost $ — $ — $ — $ 419 $ 480 $ 558 Interest cost (1) 5,498 8,141 9,269 2,392 3,505 3,674 Curtailments — — — — — — Settlements (1) (896) (1,326) (2,332) — — — Expected return on plan assets (1) (8,283) (10,555) (12,083) — — — Amortization of prior service credits (1) (112) (24) — — — — Amortization of other actuarial losses (gains) (1) — (11) — (1,379) (2,974) — Net benefit cost (credit) $ (3,793) $ (3,775) $ (5,146) $ 1,432 $ 1,011 $ 4,232 (1) In accordance with the adoption of ASU 2017-07, “Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” these costs are recorded within Nonoperating expenses in the Consolidated Statements of Operations on the line item “Non-service related pension and postretirement benefit costs.” |
Schedule of Assumptions Used | Year Ended Year Ended December 31, December 31, 2020 2019 (Percentages) Pension Benefits Discount rate 2.19/1.96 3.09/2.90 Other Postretirement Benefits Discount rate 2.17 3.09 Year Ended Year Ended Year Ended December 31, December 31, December 31, 2020 2019 2018 (Percentages) Pension Benefits Discount rate 2.72 3.65 3.82 Expected return on plan assets 4.65 5.10 5.30 Other Postretirement Benefits Discount rate 3.09 4.12 3.49 |
Schedule of Allocation of Plan Assets | Total Level 1 Level 2 Level 3 2020 2019 2020 2019 2020 2019 2020 2019 (In thousands) Equity Securities: (A) U.S. small-cap $ 2,287 $ 2,319 $ 2,287 $ 2,319 $ — $ — $ — $ — U.S. mid-cap 2,890 1,397 2,890 1,397 — — — — Fixed income securities: — — U.S. government securities (B) 31,850 50,610 18,705 35,751 13,145 14,859 — — Non-U.S. government securities (C) 1,612 2,242 — — 1,612 2,242 — — Corporate fixed income (D) 98,357 108,023 — — 98,357 108,023 — — State and local government securities (E) 2,962 2,653 — — 2,962 2,653 — — Other investments (G) 3,519 — — — 3,519 — — — Total $ 143,477 $ 167,244 $ 23,882 $ 39,467 $ 119,595 $ 127,777 $ — $ — Assets at net asset value (F) 55,771 53,418 Other liabilities (H) — (8,860) $ 199,248 $ 211,802 (A) Equity securities includes investments in 1) common stock, 2) preferred stock and 3) mutual funds. Investments in common and preferred stocks are valued using quoted market prices multiplied by the number of shares owned. Investments in mutual funds are valued at the net asset value per share multiplied by the number of shares held as of the measurement date and are traded on listed exchanges. (B) U.S. government securities includes agency and treasury debt. These investments are valued using dealer quotes in an active market. (C) Non-U.S. government securities includes debt securities issued by foreign governments and are valued utilizing a price spread basis valuation technique with observable sources from investment dealers and research vendors. (D) Corporate fixed income is primarily comprised of corporate bonds and certain corporate asset-backed securities that are denominated in the U.S. dollar and are investment-grade securities. These investments are valued using dealer quotes. (E) State and local government securities include different U.S. state and local municipal bonds and asset backed securities, these investments are valued utilizing a market approach that includes various valuation techniques and sources such as value generation models, broker quotes, benchmark yields and securities, reported trades, issuer trades and/or other applicable data. (F) Investments that are measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy in accordance with Accounting Standards Update 2015-07. These investments are primarily mutual funds that are highly liquid with no restrictions on ability to redeem the funds into cash. (G) Other investments include cash, forward contracts, derivative instruments, credit default swaps, interest rate swaps and mutual funds. Investments in interest rate swaps are valued utilizing a market approach that includes various valuation techniques and sources such as value generation models, broker quotes in active and non-active markets, benchmark yields and securities, reported trades, issuer trades and/or other applicable data. Forward contracts and derivative instruments are valued at their exchange listed price or broker quote in an active market. The mutual funds are valued at the net asset value per share multiplied by the number of shares held as of the measurement date and are traded on listed exchanges. (H) Net payable amount due for pending securities purchased and sold due to broker/dealer. |
Schedule of Expected Benefit Payments | Other Pension Postretirement Benefits Benefits (In thousands) 2021 $ 13,143 $ 12,514 2022 13,902 12,521 2023 12,605 12,351 2024 12,221 12,237 2025 13,351 12,131 Next 5 years 52,093 60,057 $ 117,315 $ 121,811 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Common Share | |
Schedule of Weighted Average Number of Shares | Year Ended Year Ended Year Ended December 31, December 31, December 31, 2020 2019 2018 (In Thousands) Weighted average shares outstanding: Basic weighted average shares outstanding 15,153 16,218 19,663 Effect of dilutive securities — 1,080 966 Diluted weighted average shares outstanding 15,153 17,298 20,629 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases | |
Schedule of Information Related to Leases | Year Ended December 31, 2020 2019 (In thousands) Operating lease information: Operating lease cost $ 3,620 $ 3,921 Operating cash flows from operating leases 3,610 3,842 Weighted average remaining lease term in years 5.99 5.92 Weighted average discount rate 5.5 % 5.5 % Financing lease information: Financing lease cost $ 1,179 $ — Operating cash flows from financing leases 909 — Weighted average remaining lease term in years 4.25 — Weighted average discount rate 6.4 % — % |
Schedule of Future Minimum Lease Payments | Future minimum lease payments under non-cancellable leases as of December 31, 2020 were as follows: Operating Finance Year Leases Leases (In thousands) 2021 $ 3,367 $ 1,210 2022 3,317 1,210 2023 3,285 1,210 2024 3,200 1,210 2025 3,185 2,112 Thereafter 4,614 — Total minimum lease payments $ 20,968 $ 6,952 Less imputed interest (3,236) (1,078) Total lease liabilities $ 17,732 $ 5,874 As reflected on balance sheet: Accrued expenses and other current liabilities $ 2,454 $ 860 Other noncurrent liabilities 15,278 5,014 Total lease liability $ 17,732 $ 5,874 |
Risk Concentrations (Tables)
Risk Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Risk Concentrations | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Year Ended Year Ended Year Ended December 31, December 31, December 31, 2020 2019 2018 (In thousands) Europe $ 289,176 $ 537,117 $ 559,165 Asia 138,086 322,029 452,711 Central and South America 56,905 82,476 79,085 Africa 12,763 18,698 17,567 Brokered Sales — — 2,372 Total $ 496,930 $ 960,320 $ 1,110,900 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue Recognition | |
Schedule of effects of revenue recognition | Corporate, Other Other and PRB MET Thermal Eliminations Consolidated (in thousands) Year Ended December 31, 2020 North America revenues $ 659,807 $ 173,508 $ 112,923 $ 24,424 $ 970,662 Seaborne revenues 2,328 468,028 26,574 — 496,930 Total revenues $ 662,135 $ 641,536 $ 139,497 $ 24,424 $ 1,467,592 Year Ended December 31, 2019 North America revenues $ 915,750 $ 217,381 $ 190,051 $ 10,850 $ 1,334,032 Seaborne revenues — 773,169 187,151 — 960,320 Total revenues $ 915,750 $ 990,550 $ 377,202 $ 10,850 $ 2,294,352 Year Ended December 31, 2018 North America revenues $ 971,337 $ 160,969 $ 195,547 $ 13,034 $ 1,340,887 Seaborne revenues 1,911 875,652 233,337 — 1,110,900 Total revenues $ 973,248 $ 1,036,621 $ 428,884 $ 13,034 $ 2,451,787 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Information | |
Schedule of Operating Segment Results | Corporate, Other Other and (In thousands) PRB MET Thermal Eliminations Consolidated Year Ended December 31, 2020 Revenues $ 662,135 $ 641,536 $ 139,497 $ 24,424 $ 1,467,592 Adjusted EBITDA 50,246 91,322 (16,211) (101,614) 23,743 Depreciation, depletion and amortization 21,375 91,202 6,976 1,999 121,552 Accretion on asset retirement obligation 13,979 1,943 1,389 2,576 19,887 Total assets 179,401 811,605 16,935 714,531 1,722,472 Capital expenditures 4,688 269,273 6,031 5,829 285,821 Year Ended December 31, 2019 Revenues $ 915,750 $ 990,550 $ 377,202 $ 10,850 $ 2,294,352 Adjusted EBITDA 110,528 305,363 41,495 (94,219) 363,167 Depreciation, depletion and amortization 20,810 74,211 14,414 2,186 111,621 Accretion on asset retirement obligation 12,542 2,123 2,413 3,470 20,548 Total assets 256,460 625,134 105,411 880,751 1,867,756 Capital expenditures 29,420 211,718 20,088 5,130 266,356 Year Ended December 31, 2018 Revenues $ 973,248 $ 1,036,621 $ 428,884 $ 13,034 $ 2,451,787 Adjusted EBITDA 126,525 349,524 68,620 (106,891) 437,778 Depreciation, depletion and amortization 33,120 69,560 14,699 13,291 130,670 Accretion on asset retirement obligation 19,541 1,874 2,261 4,294 27,970 Total assets 278,314 545,061 125,333 938,352 1,887,060 Capital expenditures 12,140 64,307 11,999 6,826 95,272 |
Schedule of Reconciliation of Net Income (Loss) to Adjusted EBITDA | Year Ended Year Ended Year Ended December 31, December 31, December 31, (In thousands) 2020 2019 2018 Net income (loss) $ (344,615) $ 233,799 $ 312,577 Provision for (benefit from) income taxes (7) 248 (52,476) Interest expense, net 10,624 6,794 13,689 Depreciation, depletion and amortization 121,552 111,621 130,670 Accretion on asset retirement obligations 19,887 20,548 27,970 Costs related to proposed joint venture with Peabody Energy 16,087 13,816 — Asset impairment and restructuring 221,380 — — Gain on property insurance recovery related to Mountain Laurel longwall (23,518) — — (Gain) loss on divestitures (1,505) 13,312 — Preference Rights Lease Application settlement income — (39,000) — Net loss resulting from early retirement of debt and debt restructuring — — 485 Non-service related pension and postretirement benefit costs 3,884 2,053 3,202 Reorganization items, net (26) (24) 1,661 Adjusted EBITDA $ 23,743 $ 363,167 $ 437,778 EBITDA from idled or otherwise disposed operations 15,858 12,926 2,492 Selling, general and administrative expenses 82,397 95,781 100,300 Other 3,359 (14,488) 4,099 Segment Adjusted EBITDA from coal operations $ 125,357 $ 457,386 $ 544,669 |
Accounting Policies (Details)
Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statutory Accounting Practices | ||
Interest costs capitalized | $ 11.9 | $ 2.9 |
Mineral rights | 290.3 | 360.9 |
Deferred finance costs, net | 1.9 | 3 |
Deferred finance costs, current | $ 0.7 | $ 2 |
Minimum | ||
Statutory Accounting Practices | ||
Term of contract | 1 year | |
Maximum | ||
Statutory Accounting Practices | ||
Term of contract | 7 years | |
Exploration and production equipment | Minimum | ||
Statutory Accounting Practices | ||
Estimated useful life | 1 year | |
Exploration and production equipment | Maximum | ||
Statutory Accounting Practices | ||
Estimated useful life | 16 years | |
Building and building improvements | Minimum | ||
Statutory Accounting Practices | ||
Estimated useful life | 3 years | |
Building and building improvements | Maximum | ||
Statutory Accounting Practices | ||
Estimated useful life | 20 years | |
Mining properties and mineral rights | Minimum | ||
Statutory Accounting Practices | ||
Term of contract | 10 years | |
Mining properties and mineral rights | Maximum | ||
Statutory Accounting Practices | ||
Term of contract | 50 years |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Schedule of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | $ 640,536 | $ 704,821 |
Ending Balance | 283,561 | 640,536 |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | 5,689 | 43,296 |
Unrealized gains (losses) | (41,675) | (22,536) |
Amounts reclassified from AOCI | 285 | (15,071) |
Ending Balance | (35,701) | 5,689 |
Derivative instruments | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | (2,564) | 3,328 |
Unrealized gains (losses) | (3,076) | 4,648 |
Amounts reclassified from AOCI | 1,749 | (10,540) |
Ending Balance | (3,891) | (2,564) |
Pension, postretirement and other post-employment benefits | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | 8,273 | 40,311 |
Unrealized gains (losses) | (38,533) | (27,692) |
Amounts reclassified from AOCI | (1,199) | (4,346) |
Ending Balance | (31,459) | 8,273 |
Available-for-sale securities | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | (20) | (343) |
Unrealized gains (losses) | (66) | 508 |
Amounts reclassified from AOCI | (265) | (185) |
Ending Balance | $ (351) | $ (20) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Schedule of Reclassifications) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Revenues | $ 1,467,592 | $ 2,294,352 | $ 2,451,787 |
Interest expense | (14,432) | (16,485) | (20,471) |
Interest and investment income | 3,808 | 9,691 | 6,782 |
Income (loss) before income taxes | (344,622) | 234,047 | 260,101 |
Provision for (benefit from) income taxes | 7 | (248) | 52,476 |
Net income (loss) | (344,615) | 233,799 | $ 312,577 |
Reclassification out of Accumulated Other Comprehensive Income | Derivative instruments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Revenues | 392 | 9,480 | |
Interest expense | (2,141) | 1,060 | |
Provision for (benefit from) income taxes | 0 | 0 | |
Net income (loss) | (1,749) | 10,540 | |
Reclassification out of Accumulated Other Comprehensive Income | Pension, postretirement and other post-employment benefits | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amortization of actuarial gains (losses), net | (191) | (3,020) | |
Amortization of prior service credits | 112 | ||
Pension settlement | 896 | 1,326 | |
Income (loss) before income taxes | 1,199 | 4,346 | |
Provision for (benefit from) income taxes | 0 | 0 | |
Net income (loss) | 1,199 | 4,346 | |
Reclassification out of Accumulated Other Comprehensive Income | Available-for-sale securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Interest and investment income | 265 | 185 | |
Provision for (benefit from) income taxes | 0 | 0 | |
Net income (loss) | $ 265 | $ 185 |
Divestitures (Details)
Divestitures (Details) $ in Thousands | Dec. 13, 2019USD ($) | Sep. 14, 2017USD ($)company | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
(Gain) loss on divestitures | $ (1,505) | $ 13,312 | |||||
Charge for bankruptcy claims | $ 4,300 | ||||||
Viper Mine | Discontinued Operations, Disposed of by Sale | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
(Gain) loss on divestitures | $ (100) | ||||||
Coal-Mac LLC | Discontinued Operations, Disposed of by Sale | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from sale | $ 2,300 | ||||||
(Gain) loss on divestitures | 9,000 | ||||||
Disbursements related to landholder consent fees and professional fees | $ 200 | ||||||
Lone Mountain Processing LLC | Discontinued Operations, Disposed of by Sale | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
(Gain) loss on divestitures | $ 21,300 | ||||||
Number of mining companies | company | 2 | ||||||
Dal-Tex and Briar Branch Properties | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
(Gain) loss on divestitures | $ (1,505) | $ 13,312 | |||||
Dal-Tex and Briar Branch Properties | Discontinued Operations, Disposed of by Sale | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Consideration for sale | $ 0 | ||||||
Gain on disposal | $ 1,400 | ||||||
Knight Hawk | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Ownership interest acquired | 1.50% | ||||||
Ownership interest | 49.50% | 49.50% | |||||
DTA | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Ownership interest | 35.00% | 35.00% |
Asset impairment and restruct_3
Asset impairment and restructuring (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020item | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Coal lands and mineral rights | $ 33,197 | ||||
Plant and equipment | 43,197 | ||||
Deferred development | 76,807 | ||||
Parts and supplies | 8,639 | ||||
Equity investment | 36,167 | ||||
Severance costs related to voluntary separation plan | 13,373 | ||||
Other | 10,000 | ||||
Asset impairment charges | 221,380 | ||||
Letters of credit outstanding | $ 20,000 | 20,000 | |||
Number of corporate staff accepted voluntary separation package | item | 254 | ||||
Knight Hawk | |||||
Equity investment | $ 36,200 | $ 36,200 | $ 36,167 | ||
Prior Equity Investment | |||||
Asset impairment charges | 10,000 | ||||
Coal Creek Mine | |||||
Asset impairment charges | $ 32,800 | ||||
PRB | Coal Creek Mine | |||||
Asset impairment charges | 51,800 | 51,800 | |||
Other Thermal | Viper Mine | |||||
Asset impairment charges | 33,500 | 33,500 | |||
Other Thermal | West Elk Mine | |||||
Asset impairment charges | $ 41,600 | $ 41,600 |
Joint Venture with Peabody En_2
Joint Venture with Peabody Energy (Details) - Implementation Agreement - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Jun. 18, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Economic interest held | 33.50% | ||
Incurred expenses related to regulatory approval process | $ 16.1 | $ 13.8 | |
Peabody Energy Corporation | |||
Schedule of Equity Method Investments [Line Items] | |||
Economic interest held | 66.50% |
Gain on Property Insurance Re_2
Gain on Property Insurance Recovery Related to Mountain Laurel Longwall (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2020item | |
Business Interruption Loss [Line Items] | ||||
Gain on Business Interruption Insurance Recovery | $ | $ 23,518 | $ 0 | ||
Longwall system's not recoverable | item | 123 | |||
Mountain Laurel Longwall Operations | ||||
Business Interruption Loss [Line Items] | ||||
Gain on Business Interruption Insurance Recovery | $ | $ 23,500 | |||
Hydraulic Shields not recoverable | item | 176 |
Preference Rights Lease Appli_2
Preference Rights Lease Application Settlement Income (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Oct. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Gain Contingencies [Line Items] | ||||
Gain related to settlement | $ 0 | $ 39,000 | ||
Preference Rights Lease Application (PRLA) | ||||
Gain Contingencies [Line Items] | ||||
Gain related to settlement | $ 39,000 | 36,000 | ||
Royalty credits to be received due to settlement | $ 67,000 | $ 13,300 | ||
Royalty credits to be received due to settlement, percentage of royalty obligations | 50.00% | |||
One-time payment for ownership interest | $ 27,000 | |||
Payment to acquire investment, closing fees | $ 1,000 | |||
Receivable outstanding | $ 17,700 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Inventories | ||
Coal | $ 49,436 | $ 46,815 |
Repair parts and supplies | 76,572 | 84,083 |
Inventories | 126,008 | 130,898 |
Allowance for slow-moving and obsolete inventories | $ 600 | $ 2,200 |
Investments in Available-for-_3
Investments in Available-for-Sale Securities (Schedule of Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, Cost Basis | $ 97,116 | $ 135,687 |
Available-for-sale, Gains | 12 | 201 |
Available-for-sale, Losses | (363) | (221) |
Available-for-sale, Fair Value | 96,765 | 135,667 |
U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, Cost Basis | 57,299 | 35,044 |
Available-for-sale, Gains | 11 | 1 |
Available-for-sale, Losses | (86) | (16) |
Available-for-sale, Fair Value | 57,224 | 35,029 |
Corporate notes and bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, Cost Basis | 39,817 | 100,643 |
Available-for-sale, Gains | 1 | 200 |
Available-for-sale, Losses | (277) | (205) |
Available-for-sale, Fair Value | $ 39,541 | $ 100,638 |
Investments in Available-for-_4
Investments in Available-for-Sale Securities (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Investments in Available-for-Sale Securities | ||
Unrealized losses owned for less than 12 months | $ 45.3 | $ 72.3 |
Unrealized losses owed for over a year | $ 8.1 | $ 0 |
Equity Method Investments and_3
Equity Method Investments and Membership Interests in Joint Ventures (Schedule of Equity Method Investments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||||
Beginning Balance | $ 105,588 | $ 105,588 | $ 104,676 | |
Sale of investment in affiliates | (1,879) | |||
Advances to (distributions from) affiliates, net | (2,686) | (384) | ||
Equity in comprehensive income (loss) | 3,348 | 3,175 | ||
Contribution of Viper Mine | 1,700 | |||
Impairment of equity investment | (36,167) | |||
Ending Balance | 71,783 | 105,588 | ||
Knight Hawk | ||||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||||
Beginning Balance | 90,211 | 90,211 | 90,021 | |
Sale of investment in affiliates | (1,879) | |||
Advances to (distributions from) affiliates, net | (4,235) | (5,884) | ||
Equity in comprehensive income (loss) | 4,576 | 7,953 | ||
Contribution of Viper Mine | 1,700 | |||
Impairment of equity investment | $ (36,200) | (36,200) | (36,167) | |
Ending Balance | 56,085 | 90,211 | ||
DTA | ||||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||||
Beginning Balance | $ 15,377 | 15,377 | 14,655 | |
Advances to (distributions from) affiliates, net | 1,549 | 5,500 | ||
Equity in comprehensive income (loss) | (1,228) | (4,778) | ||
Ending Balance | $ 15,698 | $ 15,377 |
Equity Method Investments and_4
Equity Method Investments and Membership Interests in Joint Ventures (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||
Payments to auction house to increase ownership | $ 1,700 | ||
Knight Hawk | Sale | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest sold | 1.00% | ||
Ownership interest sold, value | $ 2,000 | ||
Knight Hawk | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest acquired | 1.50% | ||
Ownership interest | 49.50% | 49.50% | |
DTA | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest | 35.00% | 35.00% |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) gal in Millions, $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($)gal | |
2021 | |
Derivative [Line Items] | |
Value of trading portfolio realized - gains (losses) | $ | $ 0.3 |
Diesel Purchases | Heating Oil | |
Derivative [Line Items] | |
Quantities under derivative contracts (in gallons) | 0 |
Diesel Purchases | Minimum | |
Derivative [Line Items] | |
Diesel fuel purchased annually (in gallons) | 30 |
Diesel Purchases | Maximum | |
Derivative [Line Items] | |
Diesel fuel purchased annually (in gallons) | 35 |
Derivatives (Schedule of Price
Derivatives (Schedule of Price Risk Derivatives) (Details) T in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)T | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Coal sales | |||
Derivative [Line Items] | |||
Derivatives held (in tons) | 193 | ||
Coal purchases | |||
Derivative [Line Items] | |||
Derivatives held (in tons) | 82 | ||
Coal Contract | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Gains (Losses) Reclassified from Other Comprehensive Income into Income (Effective Portion) | $ | $ (392) | $ 9,481 | $ (8,205) |
Coal sales | Coal Contract | Designated as Hedging Instrument | Coal sales | |||
Derivative [Line Items] | |||
Gains (Losses) Reclassified from Other Comprehensive Income into Income (Effective Portion) | $ | (1,850) | 10,167 | (10,912) |
Coal purchases | Coal Contract | Designated as Hedging Instrument | Coal purchases | |||
Derivative [Line Items] | |||
Gains (Losses) Reclassified from Other Comprehensive Income into Income (Effective Portion) | $ | $ 1,458 | $ (686) | $ 2,707 |
2021 | Coal sales | |||
Derivative [Line Items] | |||
Derivatives held (in tons) | 193 | ||
2021 | Coal purchases | |||
Derivative [Line Items] | |||
Derivatives held (in tons) | 82 | ||
2021 | Coal sales | |||
Derivative [Line Items] | |||
Derivatives held (in tons) | 0 | ||
2021 | Coal purchases | |||
Derivative [Line Items] | |||
Derivatives held (in tons) | 0 |
Derivatives (Disclosure Of Fair
Derivatives (Disclosure Of Fair Value Of Derivatives) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Derivative Assets | $ 3,245 | $ 31,616 |
Derivative Liabilities | (2,399) | (25,870) |
Effect of counterparty netting in derivative assets | (2,392) | (25,759) |
Effect of counterparty netting in derivative liabilities | 2,392 | 25,759 |
Derivative Asset | 853 | 5,857 |
Derivative Liability | (7) | (111) |
Net derivatives as classified in the balance sheets | 846 | 5,746 |
Other current assets | ||
Derivative [Line Items] | ||
Effect of counterparty netting in derivative assets | (4,400) | |
Other Current Liabilities | ||
Derivative [Line Items] | ||
Effect of counterparty netting in derivative liabilities | 1,400 | |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Assets | 3,245 | 30,265 |
Derivative Liabilities | (2,399) | (24,908) |
Not Designated as Hedging Instrument | Coal held for trading purposes, exchange traded swaps and futures | ||
Derivative [Line Items] | ||
Derivative Assets | 1,914 | 18,467 |
Derivative Liabilities | (1,595) | (18,940) |
Coal | Accrued expenses and other current liabilities | ||
Derivative [Line Items] | ||
Net derivatives as classified in the balance sheets | (7) | (111) |
Coal | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Assets | 1,351 | |
Derivative Liabilities | 0 | (962) |
Coal | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Assets | 1,094 | 11,662 |
Derivative Liabilities | (804) | (5,856) |
Heating oil - diesel purchases | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Assets | 237 | 133 |
Derivative Liabilities | 0 | (112) |
Natural gas | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Assets | 3 | |
Derivative Liabilities | $ 0 | $ 0 |
Derivatives (Net Derivatives As
Derivatives (Net Derivatives As Reflected On The Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Net derivatives as classified in the balance sheet | $ 846 | $ 5,746 |
Heating Oil | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Net derivatives as classified in the balance sheet | $ 853 | $ 5,857 |
Derivatives (Effects Of Derivat
Derivatives (Effects Of Derivatives On Measures Of Financial Performance) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in fair value of coal derivatives and coal trading activities, net | $ (5,219) | $ 18,601 | $ (9,118) |
Designated as Hedging Instrument | Coal Contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Other Comprehensive Income | 4 | 9,018 | (6,169) |
Designated as Hedging Instrument | Coal sales | Coal Contract | Coal sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Other Comprehensive Income | 500 | 10,249 | (7,517) |
Designated as Hedging Instrument | Coal purchases | Coal Contract | Coal purchases | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Other Comprehensive Income | (496) | (1,231) | 1,348 |
Not Designated as Hedging Instrument | Coal Contract | Coal and natural gas realized and unrealized | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized and Unrealized Gain (Loss) on Derivatives | 222 | (1,013) | 135 |
Unrealized Gain (Loss) on Derivatives | (5,517) | 19,713 | (9,530) |
Not Designated as Hedging Instrument | Coal Contract | Other operating (income) expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized Gain (Loss) on Derivatives | 9,258 | 487 | (8,734) |
Not Designated as Hedging Instrument | Natural gas | Coal and natural gas realized and unrealized | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized and Unrealized Gain (Loss) on Derivatives | 76 | (99) | 277 |
Not Designated as Hedging Instrument | Heating oil - diesel purchases | Other operating (income) expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized Gain (Loss) on Derivatives | $ (558) | $ (2,291) | $ (505) |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accrued Expenses and Other Current Liabilities | ||
Payroll and employee benefits | $ 39,443 | $ 50,929 |
Taxes other than income taxes | 56,232 | 69,061 |
Interest | 2,795 | 133 |
Workers' compensation | 15,259 | 16,119 |
Asset retirement obligations | 27,032 | 10,366 |
Other | 14,495 | 10,559 |
Accrued expenses and other current liabilities | $ 155,256 | $ 157,167 |
Debt and Financing Arrangemen_3
Debt and Financing Arrangements (Long term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jul. 02, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 559,786 | ||
Debt issuance costs | (10,873) | $ (5,013) | |
Total | 508,312 | 310,819 | |
Less: current maturities of debt | 31,097 | 20,753 | |
Long-term debt | 477,215 | 290,066 | |
Term loan due 2024 | |||
Debt Instrument [Line Items] | |||
Long-term debt | 288,033 | 290,825 | |
Debt instrument, face amount | 288,800 | ||
Convertible Debt | |||
Debt Instrument [Line Items] | |||
Long-term debt | 115,367 | ||
Debt instrument, face amount | 155,300 | ||
Tax Exempt Bonds | |||
Debt Instrument [Line Items] | |||
Long-term debt | 53,090 | ||
Debt instrument, face amount | 53,100 | $ 53,100 | |
Other Debt | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 62,695 | $ 25,007 |
Debt and Financing Arrangemen_4
Debt and Financing Arrangements (Company Debt Narrative) (Details) $ / shares in Units, shares in Millions | Nov. 03, 2020USD ($)$ / shares | Oct. 29, 2020USD ($)$ / sharesshares | Jul. 02, 2020USD ($) | Mar. 04, 2020USD ($)installment | Mar. 07, 2017USD ($) | Aug. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2020USD ($) |
Debt Instrument [Line Items] | |||||||||||||
Letters of credit outstanding | $ 20,000,000 | $ 20,000,000 | |||||||||||
Restricted cash | 5,953,000 | 5,953,000 | $ 0 | $ 215,000 | |||||||||
Net proceeds of convertible debt | 155,250,000 | 0 | |||||||||||
Debt liability | 508,312,000 | 508,312,000 | 310,819,000 | ||||||||||
Remaining proceeds | 53,090,000 | 0 | |||||||||||
Derivative liabilities | 2,399,000 | 2,399,000 | 25,870,000 | ||||||||||
Debt financing costs | 9,718,000 | 0 | $ 1,257,000 | ||||||||||
Equity components liability of the convertible notes | 114,500,000 | ||||||||||||
Equity components of the convertible notes | $ 40,800,000 | $ 40,800,000 | |||||||||||
Hypothetical interest rate (as percent) | 12.43% | 12.43% | |||||||||||
Discount amortized | $ 40,800,000 | $ 40,800,000 | |||||||||||
Incurred offering-related costs | 5,900,000 | 5,900,000 | |||||||||||
Debt issuance costs | 1,900,000 | $ 1,900,000 | 3,000,000 | ||||||||||
Amortized as interest expense over the term | 5 years | ||||||||||||
Transaction costs | $ 1,500,000 | ||||||||||||
New Term Loan Debt Facility | Senior Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Term loan, face value | $ 300,000,000 | ||||||||||||
Percentage of face amount | 99.50 | ||||||||||||
Quarterly principal amortization payments | $ 750,000 | ||||||||||||
Amount of voting equity interests of domestic subsidiaries guaranteed (percent) | 100 | ||||||||||||
Amount of voting equity interests of foreign owned subsidiaries guaranteed (percent) | 65 | ||||||||||||
New Term Loan Debt Facility | Senior Notes | LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Applicable margin on interest rate | 2.75% | ||||||||||||
New Term Loan Debt Facility | Line of Credit | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Call premium | 1.00% | ||||||||||||
New Term Loan Debt Facility | Line of Credit | LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Applicable margin on interest rate | 2.75% | ||||||||||||
New Term Loan Debt Facility | Line of Credit | LIBOR | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Applicable margin on interest rate | 1.00% | ||||||||||||
New Term Loan Debt Facility | Line of Credit | Base Rate | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Applicable margin on interest rate | 1.75% | ||||||||||||
Interest Rate Swap | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Derivative liabilities | 3,900,000 | $ 3,900,000 | |||||||||||
Gain (loss) on interest rate swap | (2,100,000) | $ 1,100,000 | $ 1,200,000 | ||||||||||
New Term Loan Debt Facility | Senior Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Mandatory prepayment amount (as percent) | 100 | ||||||||||||
Default to indebtedness | $ 50,000,000 | ||||||||||||
Default to surety, reclamation, or similar bonds securing obligations | 50,000,000 | ||||||||||||
Default to uninsured judgment | 50,000,000 | ||||||||||||
Uninsured losses or proceedings against minimum amount | $ 50,000,000 | ||||||||||||
Accounts Receivable Securitization Facility | Line of Credit | Secured Debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Letters of credit outstanding | 56,300,000 | 56,300,000 | |||||||||||
Accounts Receivable Securitization Facility | Regions Bank | Line of Credit | Secured Debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Current borrowing capacity | $ 110,000,000 | $ 160,000,000 | |||||||||||
Accounts Receivable Securitization Facility | Arch Receivable Company, LLC | Line of Credit | Secured Debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Current borrowing capacity | 25,400,000 | 25,400,000 | |||||||||||
Inventory-Based Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Covenant amount | 4,100,000 | ||||||||||||
Inventory-Based Revolving Credit Facility | Regions Bank | Line of Credit | Secured Debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Term loan, face value | $ 50,000,000 | ||||||||||||
Letters of credit outstanding | 29,200,000 | 29,200,000 | |||||||||||
Borrowing base percentage, coal inventory | 85 | ||||||||||||
Borrowing base percentage, parts and supplies inventory | 85 | ||||||||||||
Borrowing base, percentage of clause | 35 | ||||||||||||
Percent of eligible cash | 100.00% | ||||||||||||
Covenant amount | $ 175,000,000 | $ 100,000,000 | $ 100,000,000 | ||||||||||
Inventory-Based Revolving Credit Facility | Regions Bank | Line of Credit | Secured Debt | LIBOR | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Applicable margin on interest rate | 2.50% | ||||||||||||
Inventory-Based Revolving Credit Facility | Regions Bank | Line of Credit | Secured Debt | LIBOR | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Applicable margin on interest rate | 3.50% | ||||||||||||
Inventory-Based Revolving Credit Facility | Regions Bank | Line of Credit | Secured Debt | Base Rate | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Applicable margin on interest rate | 1.00% | ||||||||||||
Inventory-Based Revolving Credit Facility | Regions Bank | Line of Credit | Secured Debt | Base Rate | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Applicable margin on interest rate | 1.50% | ||||||||||||
Equipment financing arrangement | Secured Debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Term loan, face value | $ 53,600,000 | ||||||||||||
Number of monthly payments | installment | 48 | ||||||||||||
Interest rate | 6.34% | ||||||||||||
Tax Exempt Bonds | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Term loan, face value | $ 53,100,000 | 53,100,000 | 53,100,000 | ||||||||||
Interest rate | 5.00% | ||||||||||||
Mandatory tender percentage | 100.00% | ||||||||||||
Proceeds from issuance of debt | 47,100,000 | ||||||||||||
Restricted cash | 6,000,000 | 6,000,000 | |||||||||||
Tax Exempt Bonds | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Default to indebtedness | $ 50,000,000 | ||||||||||||
Convertible Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Term loan, face value | $ 155,300,000 | ||||||||||||
Interest rate | 5.25% | ||||||||||||
Net proceeds of convertible debt | $ 132,700,000 | ||||||||||||
Initial Conversion ratio | 0.0267917 | ||||||||||||
Initial Conversion price (in dollars per share) | $ / shares | $ 37.325 | ||||||||||||
Stock price trigger (as a percent) | 130.00% | ||||||||||||
Trading days, number | 20 | ||||||||||||
Consecutive trading days, period | 30 | ||||||||||||
Total interest expense | 2,300,000 | ||||||||||||
Contractual interest coupon | 1,300,000 | ||||||||||||
Amortization of debt discount | 1,000,000 | ||||||||||||
Incurred offering-related costs | $ 5,100,000 | ||||||||||||
Debt issuance costs | $ 4,400,000 | $ 4,400,000 | |||||||||||
Capped Call Transactions | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Initial strike price (in dollars per share) | $ / shares | $ 37.325 | ||||||||||||
Number of underlying shares | shares | 4.2 | ||||||||||||
Cap price | $ / shares | $ 52.2550 | ||||||||||||
Premium percentage (as percent) | 75.00% | ||||||||||||
Capped call, transaction cost | $ 17,500,000 | $ 17,500,000 |
Debt and Financing Arrangemen_5
Debt and Financing Arrangements (Interest rate derivatives) (Details) | Dec. 31, 2020USD ($) |
June 30, 2020 | |
Debt Instrument [Line Items] | |
Notional Amount | $ 200,000,000 |
Fixed Rate | 2.249% |
June 30, 2021 | |
Debt Instrument [Line Items] | |
Notional Amount | $ 100,000,000 |
Fixed Rate | 2.315% |
Debt and Financing Arrangemen_6
Debt and Financing Arrangements (Debt Maturities) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Debt and Financing Arrangements | |
2021 | $ 33,590 |
2022 | 16,712 |
2023 | 17,631 |
2024 | 283,513 |
2025 | 208,340 |
Thereafter | 0 |
Total | $ 559,786 |
Taxes (Narrative) (Details)
Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2021 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||||
Valuation allowance | $ 573,995 | $ 506,316 | $ 530,600 | ||
Annual limitation on operating loss use | 29,800 | ||||
Operating loss carryforwards | 1,300,000 | ||||
Operating loss carryforwards subject to expiration | 1,000,000 | ||||
Tax Cuts and Jobs Act of 2017, Income tax expense (benefit) | (48,800) | ||||
Decrease in valuation allowance | 8,800 | 24,200 | |||
Change in valuation allowance | 76,524 | (24,206) | (79,961) | ||
Interest and penalties accrued related to unrecognized tax benefits | 2,300 | 800 | |||
Gross unrecognized tax benefits | $ 48,116 | $ 39,729 | $ 39,093 | $ 11,383 | |
Forecast | |||||
Operating Loss Carryforwards [Line Items] | |||||
Gross unrecognized tax benefits | $ 100 |
Taxes (Schedule of Components o
Taxes (Schedule of Components of Income Tax) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||
Federal | $ 518 | $ (36) | $ 86 |
State | (569) | 124 | 136 |
Total current | (51) | 88 | 222 |
Deferred: | |||
Federal | 44 | 667 | (52,309) |
State | (507) | (389) | |
Total deferred | 44 | 160 | (52,698) |
Provision for (benefit from) income taxes | $ (7) | $ 248 | $ (52,476) |
Taxes (Schedule of Effective In
Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Taxes | |||
Income tax provision at statutory rate | $ (72,371) | $ 49,150 | $ 54,621 |
Percentage depletion allowance | (7,763) | (17,743) | (17,725) |
State taxes, net of effect of federal taxes | (3,298) | (12,769) | 4,480 |
Change in valuation allowance | 76,524 | (24,206) | (79,961) |
Other, net | 6,901 | 5,816 | 3,754 |
Provision for (benefit from) income taxes | $ (7) | $ 248 | $ (52,476) |
Taxes (Schedule of Deferred Tax
Taxes (Schedule of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | |||
Tax loss carryforwards | $ 352,342 | $ 294,535 | |
Tax credit carryforwards | 3,117 | 5,297 | |
Investment in partnerships | 213,478 | 190,418 | |
Other | 19,377 | 20,387 | |
Gross deferred tax assets | 588,314 | 510,637 | |
Valuation allowance | (573,995) | (506,316) | $ (530,600) |
Total deferred tax assets | 14,319 | 4,321 | |
Deferred tax liabilities: | |||
Plant and equipment | 1,219 | 2,063 | |
Convertible Notes | 8,845 | ||
Other | 4,218 | 2,178 | |
Total deferred tax liabilities | 14,282 | 4,241 | |
Net deferred tax asset | $ 37 | $ 80 |
Taxes (Schedule of Gross Unreco
Taxes (Schedule of Gross Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $ 39,729 | $ 39,093 | $ 11,383 |
Additions based on tax positions related to the current year | 1,583 | 2,980 | 28,387 |
Additions for tax positions of prior years | 7,918 | 3,228 | |
Reductions for tax positions of prior years | (732) | (1,970) | (634) |
Reductions as a result of lapses in the statute of limitations | (382) | (374) | (3,271) |
Ending Balance | $ 48,116 | $ 39,729 | $ 39,093 |
Asset Retirement Obligations (R
Asset Retirement Obligations (Rollforward) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Beginning Balance | $ 252,798 | $ 243,417 | |
Accretion expense | 19,887 | 20,548 | $ 27,970 |
Obligations of divested operations | (15,455) | (12,185) | |
Adjustments to the liability from changes in estimates | 14,889 | 11,438 | |
Liabilities settled | (14,355) | (10,420) | |
Ending Balance | 257,764 | 252,798 | $ 243,417 |
Current portion included in accrued expenses | (27,032) | (10,366) | |
Noncurrent liability | $ 230,732 | $ 242,432 |
Asset Retirement Obligations (N
Asset Retirement Obligations (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
asset retirement obligations [Line Items] | ||
Adjustments to the liability from changes in estimates | $ (14,889) | $ (11,438) |
Surety bonds outstanding | 31,700 | |
Letters of credit outstanding | 20,000 | |
Cash collateral for surety bond | 600 | |
Asset retirement obligations | ||
asset retirement obligations [Line Items] | ||
Surety bonds outstanding | $ 552,400 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Investments in marketable securities | $ 96,765 | $ 135,667 |
Derivatives | 853 | 5,857 |
Total assets | 97,618 | 141,524 |
Liabilities: | ||
Derivatives | 3,899 | 3,065 |
Level 1 | ||
Assets: | ||
Investments in marketable securities | 57,224 | 35,029 |
Derivatives | 21 | 5,269 |
Total assets | 57,245 | 40,298 |
Liabilities: | ||
Derivatives | 7 | 0 |
Level 2 | ||
Assets: | ||
Investments in marketable securities | 39,541 | 100,638 |
Derivatives | 832 | 527 |
Total assets | 40,373 | 101,165 |
Liabilities: | ||
Derivatives | 3,892 | 3,065 |
Level 3 | ||
Assets: | ||
Investments in marketable securities | 0 | 0 |
Derivatives | 0 | 61 |
Total assets | 0 | 61 |
Liabilities: | ||
Derivatives | $ 0 | $ 0 |
Fair Value Measurements (Change
Fair Value Measurements (Change In The Fair Values Of Financial Instruments Categorized As Level 3) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | $ 61 | $ 532 |
Realized and unrealized (gains) losses recognized in earnings, net | 1,158 | 1,893 |
Purchases | 1,235 | 1,597 |
Issuances | $ (138) | (208) |
Settlements | (33) | |
Ending balance | $ 61 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of debt, including amounts classified as current | $ 533.8 | $ 308 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Net unrealized gains (losses) related to level 3 financial instruments | $ (0.2) |
Capital Stock (Dividends) (Deta
Capital Stock (Dividends) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Capital Stock | |||||||
Dividends (in dollars per share) | $ 0.50 | $ 0.45 | $ 0.45 | $ 0.45 | $ 0.45 | $ 0.50 | $ 1.80 |
Amount (in thousands) | $ 8,245 | $ 7,956 | $ 7,000 | $ 7,425 | $ 7,839 | $ 8,245 | $ 30,220 |
Capital Stock (Narrative) (Deta
Capital Stock (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Apr. 30, 2019 | Oct. 05, 2016 | |
Class of Stock [Line Items] | ||||
Incremental increase to authorized amount of share repurchase program | $ 250 | |||
Authorized amount of share repurchase program | $ 1,050 | |||
Warrants issued (in shares) | 1,845,568 | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Percentage of common stock in transaction | 90.00% | |||
Warrants, repurchase amount (in dollars per share) | $ 0 | |||
Warrant exercised (in shares) | 0 | |||
Common Class A | ||||
Class of Stock [Line Items] | ||||
Warrants issued (in shares) | 1,914,856 | |||
Common stock, par value (in dollars per share) | $ 0.01 | |||
Warrant exercise price (in dollars per share) | $ 57 |
Capital Stock (Share Repurchase
Capital Stock (Share Repurchase Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | 21 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | |
Capital Stock | |||
Number of Shares (in shares) | 2,872,548 | 3,238,615 | 10,088,378 |
Average Repurchase Price per Share (in dollars per share) | $ 84.77 | $ 82.01 | |
Amount (in thousands) | $ 243,498 | $ 281,774 | $ 827,000 |
Stock Repurchase Program, remaining amount | $ 223,000 |
Stock-Based Compensation and _3
Stock-Based Compensation and Other Incentive Plans (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 17.4 | $ 22 | $ 17.5 |
Unrecognized share-based compensation expense | $ 15.7 | ||
Weighted-average period for recognition of unrecognized share-based compensation expense | 2 years | ||
Time Based Awards | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Performance Based Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Volatility rate | 36.00% | ||
2016 Omnibus Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized for incentive plan (in shares) | 3 | ||
Number of shares available for grant (in shares) | 2.1 |
Stock-Based Compensation and _4
Stock-Based Compensation and Other Incentive Plans (Restricted Stock Unit Activity) (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Time Based Awards | |
Restricted Stock Common Shares | |
Outstanding at beginning of period (in shares) | shares | 238 |
Granted (in shares) | shares | 212 |
Forfeited/Canceled (in shares) | shares | (8) |
Vested (in shares) | shares | (101) |
Outstanding at end of period (in shares) | shares | 341 |
Weighted Average Grant Date Fair Value | |
Outstanding weighted average grant date fair value at beginning of period (in dollars per share) | $ / shares | $ 87.50 |
Granted (in dollars per share) | $ / shares | $ 47.12 |
Forfeited/Canceled (in dollars per share) | $ / shares | 69.56 |
Vested (in dollars per share) | $ / shares | $ 83.26 |
Outstanding weighted average grant date fair value at end of period (in dollars per share) | $ / shares | $ 64.38 |
Performance Based Awards | |
Restricted Stock Common Shares | |
Outstanding at beginning of period (in shares) | shares | 195 |
Granted (in shares) | shares | 186 |
Forfeited/Canceled (in shares) | shares | (30) |
Vested (in shares) | shares | (65) |
Outstanding at end of period (in shares) | shares | 286 |
Weighted Average Grant Date Fair Value | |
Outstanding weighted average grant date fair value at beginning of period (in dollars per share) | $ / shares | $ 106.44 |
Granted (in dollars per share) | $ / shares | $ 48.99 |
Forfeited/Canceled (in dollars per share) | $ / shares | 95.49 |
Vested (in dollars per share) | $ / shares | $ 100.99 |
Outstanding weighted average grant date fair value at end of period (in dollars per share) | $ / shares | $ 71.44 |
Workers' Compensation Expense (
Workers' Compensation Expense (Narrative) (Details) $ in Millions | 1 Months Ended | 12 Months Ended |
Feb. 29, 2020USD ($) | Dec. 31, 2020USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||
Additional collateral amount | $ 71.1 | |
Number of days required to submit additional collateral to retain self-insurance status | 30 days | |
Increase (decrease) in workers compensation obligations due to change in discount rate | $ 27.6 | |
Reimbursable liabilities | 14.3 | |
Insurance receivable, current | 0.5 | |
Insurance receivable, noncurrent | 13.8 | |
Total workers' compensation expense | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Surety bonds and letters of credit outstanding | $ 122.9 | |
Risk Free Interest Rate | Total workers' compensation expense | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 0.0084 |
Workers' Compensation Expense_2
Workers' Compensation Expense (Worker's Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accrued Workers' Compensation [Line Items] | |||
Service cost | $ 7,564 | $ 6,677 | $ 7,440 |
Interest cost | 5,115 | 4,922 | 4,365 |
Net amortization | 1,189 | 0 | 0 |
Total workers' compensation expense | |||
Accrued Workers' Compensation [Line Items] | |||
Total workers' compensation expense | 26,790 | 24,649 | 17,200 |
Occupational disease | |||
Accrued Workers' Compensation [Line Items] | |||
Service cost | 7,564 | 6,677 | |
Interest cost | 5,115 | 4,922 | |
Net benefit cost (credit) | 13,868 | 11,599 | 11,805 |
Traumatic injury claims and assessments | |||
Accrued Workers' Compensation [Line Items] | |||
Traumatic injury claims and assessments | $ 12,922 | $ 13,050 | $ 5,395 |
Workers' Compensation Expense_3
Workers' Compensation Expense (Occupational Disease Costs Activity and Assumptions) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Self Insurance Reserve [Roll Forward] | |||
Service cost | $ 7,564 | $ 6,677 | $ 7,440 |
Interest cost | $ 5,115 | $ 4,922 | 4,365 |
Discount Rate | |||
Self Insurance Reserve [Roll Forward] | |||
Discount rate | 0.0248 | 0.0331 | |
Occupational disease | |||
Self Insurance Reserve [Roll Forward] | |||
Beginning of period | $ 158,325 | $ 118,900 | |
Service cost | 7,564 | 6,677 | |
Interest cost | 5,115 | 4,922 | |
Actuarial (gain) loss | 19,327 | 35,993 | |
Benefit and administrative payments | (7,330) | (8,167) | |
End of period | $ 183,001 | $ 158,325 | $ 118,900 |
Workers' Compensation Expense_4
Workers' Compensation Expense (Schedule of Amounts Recognized in Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued Workers' Compensation [Line Items] | |||
Total obligations | $ 259,954 | $ 231,718 | |
Less amount included in accrued expenses | 15,259 | 16,119 | |
Noncurrent obligations | 244,695 | 215,599 | |
Occupational disease | |||
Accrued Workers' Compensation [Line Items] | |||
Occupational disease costs | 183,001 | 158,325 | $ 118,900 |
Total workers' compensation expense | |||
Accrued Workers' Compensation [Line Items] | |||
Occupational disease costs | $ 76,953 | $ 73,393 |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule of Defined Benefit Plans Disclosures) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Service cost | $ 7,564 | $ 6,677 | $ 7,440 |
Interest cost | 5,115 | 4,922 | 4,365 |
Defined benefit pension plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit Obligations at beginning of year | 217,548 | 228,873 | |
Service cost | 0 | 0 | 0 |
Interest cost | 5,498 | 8,141 | 9,269 |
Settlement gain | (896) | (1,326) | |
Curtailments | 0 | 0 | |
Benefits paid | (38,221) | (34,918) | |
Other-primarily actuarial (gain) loss | 18,338 | 16,778 | |
Benefit Obligations at end of year | 202,267 | 217,548 | 228,873 |
CHANGE IN PLAN ASSETS | |||
Value of Plan Assets at beginning of year | 211,802 | 212,506 | |
Actual return on plan assets | 23,055 | 33,998 | |
Employer contributions | 2,612 | 216 | |
Benefits paid | (38,221) | (34,918) | |
Value of Plan Assets at end of year | 199,248 | 211,802 | 212,506 |
Accrued benefit cost | (3,019) | (5,746) | |
ITEMS NOT YET RECOGNIZED AS A COMPONENT OF NET PERIODIC BENEFIT COST | |||
Prior service credit | 880 | 992 | |
Accumulated gain | 10,790 | 14,537 | |
Total not yet recognized as a component of net periodic benefit cost | 11,670 | 15,529 | |
BALANCE SHEET AMOUNTS | |||
Current liability | (140) | (270) | |
Noncurrent liability | (2,879) | (5,476) | |
Liability, Defined Benefit Plan | (3,019) | (5,746) | |
Other postretirement benefits plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit Obligations at beginning of year | 87,867 | 88,563 | |
Service cost | 419 | 480 | 558 |
Interest cost | 2,392 | 3,505 | 3,674 |
Settlement gain | 0 | 0 | |
Curtailments | 284 | 30 | |
Benefits paid | (6,507) | (7,304) | |
Other-primarily actuarial (gain) loss | 16,443 | 2,593 | |
Benefit Obligations at end of year | 100,898 | 87,867 | 88,563 |
CHANGE IN PLAN ASSETS | |||
Value of Plan Assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 6,507 | 7,304 | |
Benefits paid | (6,507) | (7,304) | |
Value of Plan Assets at end of year | 0 | 0 | $ 0 |
Accrued benefit cost | (100,898) | (87,867) | |
ITEMS NOT YET RECOGNIZED AS A COMPONENT OF NET PERIODIC BENEFIT COST | |||
Prior service credit | 0 | 0 | |
Accumulated gain | 2,226 | 20,333 | |
Total not yet recognized as a component of net periodic benefit cost | 2,226 | 20,333 | |
BALANCE SHEET AMOUNTS | |||
Current liability | (6,510) | (7,300) | |
Noncurrent liability | (94,388) | (80,567) | |
Liability, Defined Benefit Plan | $ (100,898) | $ (87,867) |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate assumed | 5.70% | ||
Ultimate trend rate | 4.50% | ||
Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations (percent) | 27.00% | ||
Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations (percent) | 73.00% | ||
Defined benefit pension plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation of pension plans | $ 202,300,000 | $ 217,500,000 | |
Weighted-average interest credit rate (as percent) | 4.25% | 4.25% | |
Discount rate increased plan obligations | $ 19,000,000 | ||
Pension contributions planned for next fiscal year | 0 | ||
Other postretirement benefits payments | 17,100,000 | $ 17,500,000 | $ 17,900,000 |
Other postretirement benefits plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate increased plan obligations | 8,400,000 | ||
Health care cost trend assumption | 6,000,000 | ||
Claims cost assumption | $ 5,100,000 |
Employee Benefit Plans (Sched_2
Employee Benefit Plans (Schedule of Net Benefit Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 7,564 | $ 6,677 | $ 7,440 |
Interest cost | 5,115 | 4,922 | 4,365 |
Amortization of other actuarial losses (gains) | (1,189) | 0 | 0 |
Defined benefit pension plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 5,498 | 8,141 | 9,269 |
Curtailments | 0 | 0 | 0 |
Settlements | (896) | (1,326) | (2,332) |
Expected return on plan assets | (8,283) | (10,555) | (12,083) |
Amortization of prior service credits | (112) | (24) | 0 |
Amortization of other actuarial losses (gains) | 0 | (11) | 0 |
Net benefit cost (credit) | (3,793) | (3,775) | (5,146) |
Other postretirement benefits plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 419 | 480 | 558 |
Interest cost | 2,392 | 3,505 | 3,674 |
Curtailments | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service credits | 0 | 0 | 0 |
Amortization of other actuarial losses (gains) | (1,379) | (2,974) | 0 |
Net benefit cost (credit) | $ 1,432 | $ 1,011 | $ 4,232 |
Employee Benefit Plans (Sched_3
Employee Benefit Plans (Schedule of Assumptions Used to Calculate Benefit Obligations) (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Other postretirement benefits plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 2.17% | 3.09% |
Excess Plan | Defined benefit pension plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 1.96% | 2.90% |
Cash Balance | Defined benefit pension plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 2.19% | 3.09% |
Employee Benefit Plans (Sched_4
Employee Benefit Plans (Schedule of Assumptions Used) (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined benefit pension plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 2.72% | 3.65% | 3.82% |
Expected return on plan assets | 4.65% | 5.10% | 5.30% |
Other postretirement benefits plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 3.09% | 4.12% | 3.49% |
Employee Benefit Plans (Sched_5
Employee Benefit Plans (Schedule of Allocation of Plan Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Other liabilities | $ (8,860) | |
Total fair value | $ 199,248 | 211,802 |
Total | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 143,477 | 167,244 |
Total | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 23,882 | 39,467 |
Total | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 119,595 | 127,777 |
U.S. small-cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 2,287 | 2,319 |
U.S. small-cap | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 2,287 | 2,319 |
U.S. mid-cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 2,890 | 1,397 |
U.S. mid-cap | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 2,890 | 1,397 |
U.S. government securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 31,850 | 50,610 |
U.S. government securities | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 18,705 | 35,751 |
U.S. government securities | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 13,145 | 14,859 |
Non-U.S. government securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 1,612 | 2,242 |
Non-U.S. government securities | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 1,612 | 2,242 |
Corporate notes and bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 98,357 | 108,023 |
Corporate notes and bonds | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 98,357 | 108,023 |
State and local government securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 2,962 | 2,653 |
State and local government securities | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 2,962 | 2,653 |
Other investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 3,519 | |
Other investments | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | 3,519 | |
Other fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total fair value of plan assets | $ 55,771 | $ 53,418 |
Employee Benefit Plans (Summary
Employee Benefit Plans (Summary of Estimated Future Benefit Payments) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Defined benefit pension plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | $ 13,143 |
2022 | 13,902 |
2023 | 12,605 |
2024 | 12,221 |
2025 | 13,351 |
Next 5 years | 52,093 |
Total | 117,315 |
Other postretirement benefits plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | 12,514 |
2022 | 12,521 |
2023 | 12,351 |
2024 | 12,237 |
2025 | 12,131 |
Next 5 years | 60,057 |
Total | $ 121,811 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Common Share | |||
Antidilutive Securities excluded | 215,000 | ||
Weighted average shares outstanding: | |||
Basic weighted average shares outstanding (in shares) | 15,153,000 | 16,218,000 | 19,663,000 |
Effect of dilutive securities (in shares) | 1,080,000 | 966,000 | |
Diluted weighted average shares outstanding (in shares) | 15,153,000 | 17,298,000 | 20,629,000 |
Leases (Components of Lease Exp
Leases (Components of Lease Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases | ||
Operating lease cost | $ 3,620 | $ 3,921 |
Operating cash flows from operating leases | $ 3,610 | $ 3,842 |
Weighted average remaining lease term in years | 5 years 11 months 26 days | 5 years 11 months 1 day |
Weighted average discount rate | 5.50% | 5.50% |
Financing lease cost | $ 1,179 | |
Operating cash flows from financing leases | $ 909 | |
Weighted average remaining lease term in years | 4 years 3 months | 0 years |
Weighted average discount rate | 6.40% |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Operating Leases | |
2021 | $ 3,367 |
2022 | 3,317 |
2023 | 3,285 |
2024 | 3,200 |
2025 | 3,185 |
Thereafter | 4,614 |
Total minimum lease payments | 20,968 |
Less imputed interest | (3,236) |
Total operating lease liability | 17,732 |
As reflected on balance sheet: | |
Accrued expenses and other current liabilities | $ 2,454 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued Liabilities, Current |
Other noncurrent liabilities | $ 15,278 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities, Noncurrent |
Total operating lease liability | $ 17,732 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent us-gaap:OtherLiabilitiesNoncurrent |
Finance Leases | |
2021 | $ 1,210 |
2022 | 1,210 |
2023 | 1,210 |
2024 | 1,210 |
2025 | 2,112 |
Total minimum lease payments | 6,952 |
Less imputed interest | (1,078) |
Total finance lease liability | 5,874 |
As reflected on balance sheet: | |
Accrued expenses and other current liabilities | 860 |
Other noncurrent liabilities | 5,014 |
Finance Lease, Liability | 5,874 |
Right-of-use operating lease asset | $ 17,100 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets, Noncurrent |
Right-of-use finance lease asset | $ 5,500 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets, Noncurrent |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | |||
Operating Lease, Right-of-Use Asset | $ 17.1 | ||
Operating lease expense | 8.6 | $ 12 | $ 12.4 |
Royalty expense | 103.7 | $ 149.5 | $ 166.1 |
Surety bonds outstanding | $ 31.7 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease, remaining lease terms | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease, remaining lease terms | 7 years |
Risk Concentrations (Narrative)
Risk Concentrations (Narrative) (Details) $ in Thousands, T in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)T | Dec. 31, 2019USD ($) | |
Concentration Risk [Line Items] | ||
Trade accounts receivable | $ 110,869 | $ 168,125 |
Tons of coal sold | T | 63.3 | |
Percentage of tons sold under long term contract | 67.00% | |
Long term contracts percentage of company revenue | 50.00% | |
Long-term contracts, life term, minimum | 1 year | |
Long-term contracts, life term, maximum | 3 years | |
Electric utilities | ||
Concentration Risk [Line Items] | ||
Receivables | $ 41,700 | $ 69,300 |
Percentage of total trade accounts receivable | 38.00% | 37.00% |
Domestic and foreign steel producers | ||
Concentration Risk [Line Items] | ||
Trade accounts receivable | $ 69,100 | $ 98,800 |
Trade receivables, percentage | 62.00% | 59.00% |
Risk Concentrations (Schedule o
Risk Concentrations (Schedule of Foreign Revenues) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Concentration Risk [Line Items] | |||
Revenues | $ 1,467,592 | $ 2,294,352 | $ 2,451,787 |
Seaborne Revenue | |||
Concentration Risk [Line Items] | |||
Revenues | 496,930 | 960,320 | 1,110,900 |
Europe | Seaborne Revenue | |||
Concentration Risk [Line Items] | |||
Revenues | 289,176 | 537,117 | 559,165 |
Asia | Seaborne Revenue | |||
Concentration Risk [Line Items] | |||
Revenues | 138,086 | 322,029 | 452,711 |
Central and South America | Seaborne Revenue | |||
Concentration Risk [Line Items] | |||
Revenues | 56,905 | 82,476 | 79,085 |
Africa | Seaborne Revenue | |||
Concentration Risk [Line Items] | |||
Revenues | $ 12,763 | $ 18,698 | 17,567 |
Brokered Sales | Seaborne Revenue | |||
Concentration Risk [Line Items] | |||
Revenues | $ 2,372 |
Revenue Recognition (Schedule o
Revenue Recognition (Schedule of Revenues) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 1,467,592 | $ 2,294,352 | $ 2,451,787 |
North America revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 970,662 | 1,334,032 | 1,340,887 |
Seaborne revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 496,930 | 960,320 | 1,110,900 |
Operating Segments | PRB | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 662,135 | 915,750 | 973,248 |
Operating Segments | PRB | North America revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 659,807 | 915,750 | 971,337 |
Operating Segments | PRB | Seaborne revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,328 | 0 | 1,911 |
Operating Segments | MET | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 641,536 | 990,550 | 1,036,621 |
Operating Segments | MET | North America revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 173,508 | 217,381 | 160,969 |
Operating Segments | MET | Seaborne revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 468,028 | 773,169 | 875,652 |
Operating Segments | Other Thermal | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 139,497 | 377,202 | 428,884 |
Operating Segments | Other Thermal | North America revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 112,923 | 190,051 | 195,547 |
Operating Segments | Other Thermal | Seaborne revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 26,574 | 187,151 | 233,337 |
Corporate, Other and Eliminations | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 24,424 | 10,850 | 13,034 |
Corporate, Other and Eliminations | North America revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 24,424 | 10,850 | 13,034 |
Corporate, Other and Eliminations | Seaborne revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 0 | $ 0 | $ 0 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - Coal T in Millions | Dec. 31, 2020T |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation (in tons) | 56.8 |
Remaining performance obligations, fixed price contracts (in tons) | 49.7 |
Remaining performance obligation, variable price contracts (in tons) | 7.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation (in tons) | 43 |
Remaining performance obligations, fixed price contracts (in tons) | 42.2 |
Remaining performance obligation, variable price contracts (in tons) | 0.8 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Commitments and Contingencies | ||
Amount accrued | $ 0.1 | $ 0.2 |
Future commitments | $ 100.6 |
Segment Information (Schedule O
Segment Information (Schedule Of Operating Segment Results) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 2 | ||
Revenues | $ 1,467,592 | $ 2,294,352 | $ 2,451,787 |
Adjusted EBITDA | 23,743 | 363,167 | 437,778 |
Depreciation, depletion and amortization | 121,552 | 111,621 | 130,670 |
Accretion on asset retirement obligations | 19,887 | 20,548 | 27,970 |
Total assets | 1,722,472 | 1,867,756 | 1,887,060 |
Capital expenditures | 285,821 | 266,356 | 95,272 |
Operating Segments | PRB | |||
Segment Reporting Information [Line Items] | |||
Revenues | 662,135 | 915,750 | 973,248 |
Adjusted EBITDA | 50,246 | 110,528 | 126,525 |
Depreciation, depletion and amortization | 21,375 | 20,810 | 33,120 |
Accretion on asset retirement obligations | 13,979 | 12,542 | 19,541 |
Total assets | 179,401 | 256,460 | 278,314 |
Capital expenditures | 4,688 | 29,420 | 12,140 |
Operating Segments | MET | |||
Segment Reporting Information [Line Items] | |||
Revenues | 641,536 | 990,550 | 1,036,621 |
Adjusted EBITDA | 91,322 | 305,363 | 349,524 |
Depreciation, depletion and amortization | 91,202 | 74,211 | 69,560 |
Accretion on asset retirement obligations | 1,943 | 2,123 | 1,874 |
Total assets | 811,605 | 625,134 | 545,061 |
Capital expenditures | 269,273 | 211,718 | 64,307 |
Operating Segments | Other Thermal | |||
Segment Reporting Information [Line Items] | |||
Revenues | 139,497 | 377,202 | 428,884 |
Adjusted EBITDA | (16,211) | 41,495 | 68,620 |
Depreciation, depletion and amortization | 6,976 | 14,414 | 14,699 |
Accretion on asset retirement obligations | 1,389 | 2,413 | 2,261 |
Total assets | 16,935 | 105,411 | 125,333 |
Capital expenditures | 6,031 | 20,088 | 11,999 |
Corporate, Other and Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues | 24,424 | 10,850 | 13,034 |
Adjusted EBITDA | (101,614) | (94,219) | (106,891) |
Depreciation, depletion and amortization | 1,999 | 2,186 | 13,291 |
Accretion on asset retirement obligations | 2,576 | 3,470 | 4,294 |
Total assets | 714,531 | 880,751 | 938,352 |
Capital expenditures | $ 5,829 | $ 5,130 | $ 6,826 |
Segment Information (Reconcilia
Segment Information (Reconciliation Segment Income To Consolidated Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Net income (loss) | $ (344,615) | $ 233,799 | $ 312,577 |
Provision for (benefit from) income taxes | (7) | 248 | (52,476) |
Interest expense, net | 10,624 | 6,794 | 13,689 |
Depreciation, depletion and amortization | 121,552 | 111,621 | 130,670 |
Accretion on asset retirement obligations | 19,887 | 20,548 | 27,970 |
Costs related to proposed joint venture with Peabody Energy | 16,087 | 13,816 | |
Asset impairment and restructuring | 221,380 | ||
Severance costs related to voluntary separation plan | 13,373 | ||
Gain on property insurance recovery related to Mountain Laurel longwall | (23,518) | 0 | |
(Gain) loss on divestitures | (1,505) | 13,312 | |
Preference Rights Lease Application settlement income | 0 | (39,000) | |
Net loss resulting from early retirement of debt and debt restructuring | 485 | ||
Non-service related pension and postretirement benefit costs | 3,884 | 2,053 | 3,202 |
Reorganization items, net | (26) | (24) | 1,661 |
Adjusted EBITDA | 23,743 | 363,167 | 437,778 |
EBITDA from idled or otherwise disposed operations | 15,858 | 12,926 | 2,492 |
Selling, general and administrative expenses | 82,397 | 95,781 | 100,300 |
Other | 3,359 | (14,488) | 4,099 |
Segment Adjusted EBITDA from coal operations | 125,357 | 457,386 | $ 544,669 |
Dal-Tex and Briar Branch Properties | |||
Segment Reporting Information [Line Items] | |||
(Gain) loss on divestitures | $ (1,505) | $ 13,312 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts receivable and other receivables | |||
Reserves deducted from asset accounts: | |||
Balance at Beginning of Year | $ 10,636 | $ 0 | |
Charged to Other Accounts | 10,636 | ||
Balance at End of Year | 10,636 | 10,636 | $ 0 |
Current assets - supplies and inventory | |||
Reserves deducted from asset accounts: | |||
Balance at Beginning of Year | 2,216 | 648 | 261 |
Additions (Reductions) Charged to Costs and Expenses | 477 | 1,737 | 1,247 |
Charged to Other Accounts | (137) | (35) | |
Deductions | 1,982 | 134 | 860 |
Balance at End of Year | 574 | 2,216 | 648 |
Deferred income taxes | |||
Reserves deducted from asset accounts: | |||
Balance at Beginning of Year | 506,316 | 530,612 | 610,571 |
Additions (Reductions) Charged to Costs and Expenses | 76,524 | (24,296) | (79,959) |
Charged to Other Accounts | (8,845) | ||
Balance at End of Year | $ 573,995 | $ 506,316 | $ 530,612 |