Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 29, 2018 | Jun. 30, 2017 | |
Document Documentand Entity Information [Abstract] | |||
Entity Registrant Name | WESTMORELAND COAL Co | ||
Entity Central Index Key | 106,455 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 89,851,140 | ||
Entity Common Stock, Shares Outstanding | 18,771,643 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 103,247 | $ 60,082 |
Receivables: | ||
Trade | 103,611 | 140,731 |
Loan and lease receivables | 0 | 5,867 |
Other | 17,697 | 13,261 |
Total receivables | 121,308 | 159,859 |
Inventories | 106,795 | 125,515 |
Other current assets | 11,517 | 32,258 |
Total current assets | 342,867 | 377,714 |
Land, mineral rights, property, plant and equipment | 1,665,740 | 1,617,938 |
Less accumulated depreciation, depletion and amortization | 923,905 | 782,417 |
Net land, mineral rights, property, plant and equipment | 741,835 | 835,521 |
Loan and lease receivables, less current portion | 0 | 44,474 |
Advanced coal royalties | 21,404 | 18,722 |
Restricted investments, reclamation deposits and bond collateral | 200,194 | 219,275 |
Investment in joint venture | 27,763 | 26,951 |
Other assets | 55,036 | 62,252 |
Total Assets | 1,389,099 | 1,584,909 |
Current liabilities: | ||
Current installments of long-term debt | 983,427 | 86,272 |
Accounts payable and accrued expenses: | ||
Trade and other accrued liabilities | 121,489 | 142,233 |
Interest payable | 22,840 | 22,458 |
Production taxes | 41,688 | 44,995 |
Postretirement medical benefits | 14,734 | 14,892 |
Deferred revenue | 5,068 | 15,253 |
Asset retirement obligations | 48,429 | 32,207 |
Other current liabilities | 9,401 | 20,964 |
Total current liabilities | 1,247,076 | 379,274 |
Long-term debt, less current installments | 64,980 | 1,022,794 |
Postretirement medical benefits, less current portion | 317,407 | 308,709 |
Pension and SERP obligations, less current portion | 43,585 | 43,982 |
Deferred revenue, less current portion | 1,984 | 16,251 |
Asset retirement obligations, less current portion | 426,038 | 451,834 |
Other liabilities | 31,477 | 52,182 |
Total liabilities | 2,132,547 | 2,275,026 |
Shareholders' deficit: | ||
Common stock of $0.01 par value: Authorized 30,000,000 shares; Issued and outstanding 18,771,643 shares at December 31, 2017 and 18,570,642 shares at December 31, 2016 | 188 | 186 |
Other paid-in capital | 250,494 | 248,143 |
Accumulated other comprehensive loss | (160,525) | (179,072) |
Accumulated deficit | (829,107) | (757,367) |
Total shareholders’ deficit | (738,950) | (688,110) |
Noncontrolling interests in consolidated subsidiaries | (4,498) | (2,007) |
Total deficit | (743,448) | (690,117) |
Total Liabilities and Deficit | $ 1,389,099 | $ 1,584,909 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 18,771,643 | 18,570,642 |
Common stock, shares outstanding | 18,771,643 | 18,570,642 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Revenues | $ 1,384,568 | $ 1,477,960 | $ 1,419,518 |
Cost, expenses and other: | |||
Cost of sales (exclusive of depreciation, depletion and amortization, shown separately) | 1,096,098 | 1,156,687 | 1,175,849 |
Depreciation, depletion and amortization | 121,054 | 185,267 | 140,328 |
Selling and administrative | 120,184 | 108,560 | 95,554 |
Heritage health benefit expenses | 12,633 | 11,777 | 14,573 |
(Gain) loss on sale/disposal of assets | (2,671) | (1,124) | 4,866 |
Loss on impairment | 5,872 | 0 | 136,210 |
Restructuring charges | 0 | 0 | 656 |
Derivative (gain) loss | (1,929) | (24,055) | 5,587 |
Income from equity affiliates | (5,885) | (5,591) | (5,409) |
Other operating loss (income) | 0 | 8,309 | (3,000) |
Total costs, expenses and other | 1,345,356 | 1,439,830 | 1,565,214 |
Operating income (loss) | 39,212 | 38,130 | (145,696) |
Other (expense) income: | |||
Interest expense | (118,657) | (121,819) | (101,311) |
Loss on extinguishment of debt | 0 | 0 | (5,385) |
Interest income | 4,101 | 7,435 | 7,993 |
(Loss) gain on foreign exchange | (3,108) | (715) | 3,674 |
Other (loss) income | (573) | 38 | 1,740 |
Total other income (expense) | (118,237) | (115,061) | (93,289) |
Loss before income taxes | (79,025) | (76,931) | (238,985) |
Income tax benefit | (5,890) | (48,059) | (19,890) |
Net loss | (73,135) | (28,872) | (219,095) |
Less net loss attributable to noncontrolling interest | (1,795) | (1,771) | (5,453) |
Net loss attributable to the Parent company | (71,340) | (27,101) | (213,642) |
Less preferred stock dividend requirements | 0 | 0 | 3 |
Net loss applicable to common shareholders | $ (71,340) | $ (27,101) | $ (213,645) |
Net loss per share applicable to common shareholders: | |||
Basic and diluted (in dollars per share) | $ (3.82) | $ (1.47) | $ (11.93) |
Weighted average number of common shares outstanding: | |||
Basic and diluted (in shares) | 18,694 | 18,486 | 17,905 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (73,135) | $ (28,872) | $ (219,095) |
Pension and other postretirement plans: | |||
Amortization of accumulated actuarial gains and prior service costs, pension | 2,826 | 4,361 | 1,886 |
Adjustments to accumulated actuarial gains and transition obligations, pension | 3,376 | 3,010 | 160 |
Amortization of accumulated actuarial gains, transition obligations, and prior service costs, postretirement medical benefits | 3,663 | 1,259 | 1,308 |
Adjustments to accumulated actuarial (losses) gains and transition obligations, postretirement medical benefits | (6,893) | (22,066) | 7,322 |
Tax effect of other comprehensive income gains | (2,037) | 0 | (3,335) |
Foreign currency translation adjustment gains (losses) | 16,562 | 8,983 | (51,866) |
Unrealized and realized gains (losses) on available-for-sale securities | 1,065 | (345) | (1,738) |
Other comprehensive income (loss), net of income taxes | 18,562 | (4,798) | (46,263) |
Comprehensive loss | (54,573) | (33,670) | (265,358) |
Less: Comprehensive loss attributable to noncontrolling interest | (1,780) | (1,767) | (5,453) |
Comprehensive loss attributable to common shareholders | $ (52,793) | $ (31,903) | $ (259,905) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Deficit - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Other Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Non-controlling Interest |
Beginning balance at Dec. 31, 2014 | $ (400,875) | $ 92 | $ 42,756 | $ 185,644 | $ (128,007) | $ (516,621) | $ 15,261 |
Beginning balance, shares at Dec. 31, 2014 | 91,669 | 17,102,777 | |||||
Preferred dividends declared | (3) | (3) | |||||
WMLP distributions | (797) | (797) | |||||
Share-based compensation | 7,748 | $ 100 | 7,648 | ||||
Share-based compensation (shares) | 269,567 | ||||||
Conversion of convertible notes and securities | (319) | $ (92) | $ 1,511 | (1,738) | |||
Conversion of convertible notes and securities (shares) | (91,669) | 604,557 | |||||
Vesting of restricted stock less tax withholding | (3,297) | $ 408 | (3,705) | ||||
Vesting of restricted stock less tax withholding (shares) | 185,247 | ||||||
Changes in WMLP ownership percentage | 0 | 8,279 | (8,279) | ||||
Change in par value of common stock from $2.50 to $0.01 | 0 | $ (44,593) | 44,593 | ||||
Less net loss attributable to noncontrolling interest | (5,453) | (5,453) | |||||
Net loss | (219,095) | ||||||
Net loss attributable to the Parent company | (213,642) | (213,642) | |||||
Other comprehensive loss | (46,263) | (46,263) | |||||
Ending balance at Dec. 31, 2015 | (662,901) | $ 0 | $ 182 | 240,721 | (174,270) | (730,266) | 732 |
Ending balance, shares at Dec. 31, 2015 | 0 | 18,162,148 | |||||
WMLP distributions | (972) | (972) | |||||
Share-based compensation | 7,584 | $ 3 | 7,581 | ||||
Share-based compensation (shares) | 342,353 | ||||||
Vesting of restricted stock less tax withholding | (158) | $ 1 | (159) | ||||
Vesting of restricted stock less tax withholding (shares) | 66,141 | ||||||
Less net loss attributable to noncontrolling interest | (1,771) | (1,771) | |||||
Net loss | (28,872) | ||||||
Net loss attributable to the Parent company | (27,101) | (27,101) | |||||
Other comprehensive loss | (4,798) | (4,802) | 4 | ||||
Ending balance at Dec. 31, 2016 | (690,117) | $ 0 | $ 186 | 248,143 | (179,072) | (757,367) | (2,007) |
Ending balance, shares at Dec. 31, 2016 | 0 | 18,570,642 | |||||
Cumulative effect of adoption of ASU 2016-16 | (400) | (400) | |||||
WMLP distributions | (711) | (711) | |||||
Share-based compensation | 3,200 | 3,200 | |||||
Vesting of restricted stock less tax withholding | (847) | $ 2 | (849) | ||||
Vesting of restricted stock less tax withholding (shares) | 201,001 | ||||||
Less net loss attributable to noncontrolling interest | (1,795) | (1,795) | |||||
Net loss | (73,135) | ||||||
Net loss attributable to the Parent company | (71,340) | (71,340) | |||||
Other comprehensive loss | 18,562 | 18,547 | 15 | ||||
Ending balance at Dec. 31, 2017 | $ (743,448) | $ 0 | $ 188 | $ 250,494 | $ (160,525) | $ (829,107) | $ (4,498) |
Ending balance, shares at Dec. 31, 2017 | 0 | 18,771,643 |
Consolidated Statements of Sha7
Consolidated Statements of Shareholders' Deficit (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2015 | Dec. 31, 2014 |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 | $ 10 | $ 2.50 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net loss | $ (73,135) | $ (28,872) | $ (219,095) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation, depletion and amortization | 121,054 | 185,267 | 140,328 |
Accretion of asset retirement obligation | 45,132 | 40,423 | 38,892 |
Share-based compensation | 3,200 | 7,584 | 7,748 |
Non-cash interest expense | 9,344 | 9,215 | 6,857 |
Amortization of deferred financing costs | 10,778 | 11,537 | 10,601 |
Loss on extinguishment of debt | 0 | 0 | 4,445 |
(Gain) loss on derivative instruments | (1,929) | (24,055) | 5,587 |
Loss (gain) on foreign exchange | 3,108 | 715 | (3,674) |
Loss on impairment | 5,872 | 0 | 136,210 |
Income from equity affiliates | (5,885) | (5,591) | (5,409) |
Distributions from equity affiliates | 6,977 | 6,914 | 7,057 |
Deferred income taxes benefit | (5,909) | (46,142) | (17,961) |
Other | 560 | (2,705) | (146) |
Changes in operating assets and liabilities: | |||
Receivables | 35,636 | (4,430) | 1,987 |
Inventories | 20,309 | 13,033 | 1,800 |
Accounts payable and accrued expenses | (20,180) | 10,505 | (5,447) |
Interest payable | 471 | 5,131 | (5,569) |
Deferred revenue | (24,462) | (7,370) | (13,094) |
Other assets and liabilities | 20,467 | 13,227 | (19,613) |
Asset retirement obligations | (43,403) | (32,452) | (25,942) |
Return of derivative collateral | 6,158 | 0 | 0 |
Net cash provided by operating activities | 114,163 | 151,934 | 45,562 |
Cash flows from investing activities: | |||
Additions to property, plant and equipment | (35,016) | (46,132) | (77,921) |
Proceeds from sales of restricted investments | 50,226 | 34,814 | 15,532 |
Purchases of restricted investments | (54,281) | (36,052) | (28,670) |
Cash payments in escrow for future acquisitions | 0 | 0 | 34,000 |
Cash payments related to acquisitions and other | (3,580) | (120,992) | (32,529) |
Cash acquired related to acquisition, net | 0 | 0 | 2,780 |
Proceeds from sales of assets | 4,990 | 7,695 | 2,224 |
Payments related to loan and lease receivables | 50,488 | 8,987 | 21,954 |
Receipts from loan and lease receivables | 0 | (2,164) | (5,654) |
Other | (2,166) | (1,850) | (2,517) |
Net cash provided by (used in) investing activities | 10,661 | (155,694) | (70,801) |
Cash flows from financing activities: | |||
Borrowings from long-term debt, net of debt discount | 0 | 122,250 | 199,359 |
Repayments of long-term debt | (82,091) | (70,370) | (148,071) |
Borrowings on revolving lines of credit | 275,300 | 423,500 | 201,746 |
Repayments on revolving lines of credit | (275,300) | (425,500) | (209,351) |
Debt issuance costs and other refinancing costs | 0 | (8,784) | (8,132) |
Other | (711) | (974) | 1,172 |
Net cash (used in) provided by financing activities | (82,802) | 40,122 | 36,723 |
Effect of exchange rate changes on cash | 1,143 | 784 | (2,806) |
Net increase in cash and cash equivalents | 43,165 | 37,146 | 8,678 |
Cash and cash equivalents, beginning of year | 60,082 | 22,936 | 14,258 |
Cash and cash equivalents, end of year | 103,247 | 60,082 | 22,936 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 98,139 | 96,290 | 72,972 |
Cash paid for income taxes | 0 | 1,316 | 434 |
Non-cash transactions: | |||
Accrued purchases of property and equipment | 4,019 | 6,496 | 3,766 |
Capital leases and other financing sources | $ 1,333 | $ 27,355 | $ 15,232 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Going Concern, Liquidity and Management’s Plan The WMLP Term Loan matures on December 31, 2018 and WMLP does not currently have liquidity or access to additional capital sufficient to pay off this debt by its maturity date. This condition gives rise to substantial doubt about WMLP’s ability to continue as a going concern for one year after the issuance of their financial statements. Certain covenants in the WMLP Term Loan provide that an audit opinion on WMLP’s stand-alone consolidated financial statements that includes an explanatory paragraph referencing WMLP's conclusion that substantial doubt exists as to WMLP’s ability to continue as a going concern constitutes an event of default. The audit opinion in WMLP’s Annual Report on Form 10-K contains such an explanatory paragraph. On March 1, 2018, the WMLP Term Loan lenders waived the event of default arising as a result of such explanatory paragraph being included in the audit opinion in WMLP’s Annual Report on Form 10-K. This waiver expires on the earlier occurrence of May 15, 2018 or upon the occurrence of any other event of default under the WMLP Term Loan. Unless WMLP obtains further waivers for or otherwise cures this event of default, the lenders could accelerate the maturity date of the WMLP Term Loan after the waiver expires, making it immediately due and payable. This event of default under the WMLP Term Loan would also constitute an event of default under our Term Loan and 8.75% Notes, making them also immediately due and payable. Accordingly, all outstanding principal balances and related debt issuance costs for the WMLP Term Loan, the Term Loan and the 8.75% Notes are presented as current debt in our consolidated financial statements. We do not currently have liquidity or access to additional capital sufficient to pay off this debt. Our Revolver contains a financial covenant requiring that we maintain certain minimum fixed charge coverage ratios. On March 30, 2018, we executed an amendment to our Revolver with Canadian Imperial Bank of Commerce (formerly known as The PrivateBank and Trust Company), as agent and as lender, and East West Bank, as a lender, which amended, among other things, the calculation of Canadian EBITDA as it is used in the fixed charge coverage ratio. The amendment removed certain financial results attributable to the Coal Valley mine from Canadian EBITDA and results in our compliance with the covenant for the year ended December 31, 2017. Absent this amendment we would have failed to satisfy the financial covenant. The amendment also waives any covenant violation for the year ended December 31, 2017 that solely results from the receipt of an opinion from our independent registered public accounting firm that includes an explanatory paragraph referencing WCC’s conclusion that substantial doubt exists as to WCC’s ability to continue as a going concern. Our San Juan Loan provides that the issuance of parent company (WCC) financial statements which include an audit opinion containing an explanatory paragraph referencing WCC's conclusion that substantial doubt exists as to WCC's ability to continue as a going concern constitutes an event of default thereunder. On March 28, 2018, we executed an extension and waiver agreement with NM Capital Utility Corporation, as lender, which, among other things, waived the requirement that the audit opinion included in our consolidated financial statements is without such an explanatory paragraph. This waiver expires on the earlier of May 1, 2019 or the occurrence of any event of default not already waived. The impacts of declining industry conditions and significant debt service requirements on the Company’s financial position, results of operations, and cash flows gives rise to substantial doubt about our ability to pay our obligations as they come due. In consideration of the substantial amount of long-term debt outstanding and the aforementioned declining industry conditions and covenant defaults which required waivers or amendments to cure, the Company has engaged advisors to assist with the evaluation of strategic alternatives, which may include, but not be limited to, seeking a restructuring, amendment or refinancing of existing debt through a private restructuring or reorganization under Chapter 11 of the Bankruptcy Code. However, there can be no assurances that the Company will be able to successfully restructure its indebtedness, improve its financial position or complete any strategic transactions. As a result of these uncertainties and the likelihood of a restructuring or reorganization, management has concluded that there is substantial doubt regarding the Company’s ability to continue as a going concern. The accompanying consolidated financial statements are prepared on a going concern basis and do not include any adjustments that might result from uncertainty about our ability to continue as a going concern, other than the reclassification of certain long-term debt and the related debt issuance costs to current liabilities and current assets, respectively. The report from the Company's independent registered public accounting firm on its consolidated financial statements included herein includes an explanatory paragraph that summarizes the salient facts or conditions that raise substantial doubt about the Company's ability to continue as a going concern. Nature of Operations Westmoreland Coal Company, or the "Company," "Westmoreland," "WCC," "We," "Our" or the "Parent," is an energy mining company with our principal activities conducted within the United States and Canada. Our U.S. operations include the production and sale of coal from mines in Montana, Wyoming, North Dakota, Texas, New Mexico and Ohio. Our Canadian operations include the production and sale of coal from six surface mines in Alberta and Saskatchewan, a char production facility from which we sell char to the barbecue briquette industry, and a 50% stake in an activated carbon plant which produces activated carbon for the removal of mercury from flue gas. Consolidation Policy The Consolidated Financial Statements of Westmoreland Coal Company include the accounts of the Company and its controlled subsidiaries. The Company provides for noncontrolling interests in consolidated subsidiaries in which the Company’s ownership is less than 100%. All intercompany accounts and transactions have been eliminated. Investments in unconsolidated affiliates that the Company has the ability to exercise significant influence over, but not control, are accounted for under the equity method of accounting. Under the equity method of accounting, the Company records its proportionate share of the entity’s net income or loss at each reporting period in Income from equity affiliates in the Consolidated Statements of Operations with a corresponding entry to increase or decrease the carrying value of the investment. The Company’s 50% interest in the Estevan Activated Carbon Joint Venture is accounted for under the equity method of accounting. Use of Estimates The preparation of financial statements in conformity with Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents are stated at cost, which approximate fair value. Cash equivalents consist of highly liquid investments with original maturities of three months or less. Trade Receivables Trade receivables are recorded at the invoiced amount and do not bear interest. The Company evaluates the need for an allowance for doubtful accounts based on a review of collectability. The Company has determined that no allowance is necessary for trade receivables as of December 31, 2017 or 2016 . Loan and Lease Receivables All loan and lease receivables were collected during the year ended December 31, 2017 and we do not expect to enter into any such transactions going forward. The Company historically executed loans and finance leases at the Genesee mine with its only customer for purposes of funding capital expenditures and working capital requirements. Finance lease and loan receivables were measured at their carrying value at the inception of the arrangement. Lease payments received were comprised of a repayment of principal and finance income. Finance income was recognized based on the interest rate implicit in the finance lease and recognized in Interest income on the Consolidated Statements of Operations. We recognized finance income over periods between three and twenty-seven years , which reflected a constant periodic return on our net investment in the finance lease. Inventories Inventories include materials and supplies, which are carried at historical cost less an obsolescence reserve, when necessary, and coal, which is carried at the lower of cost or net realizable value. Cost of coal is determined using the average cost method and includes labor, supplies, equipment, depreciation, depletion, amortization, operating overhead and other related costs. Exploration and Mine Development Exploration expenditures are charged to Cost of sales as incurred, including costs related to drilling and study costs incurred to convert or upgrade mineral resources to reserves. At existing surface operations, additional pits may be added to increase production capacity in order to meet customer requirements. These expansions may require significant capital to purchase additional equipment, relocate equipment, build or improve existing haul roads and create the initial pre-production box cut to remove overburden for new pits at existing operations. If these pits operate in a separate and distinct area of the mine, the costs associated with initially uncovering coal for production are capitalized and amortized over the life of the developed pit consistent with coal industry practices. Once production has begun, mining costs are then expensed as incurred. Where new pits are routinely developed as part of a contiguous mining sequence, the Company expenses such costs as incurred. The development of a contiguous pit typically reflects the planned progression of an existing pit, thus maintaining production levels from the same mining area utilizing the same employee group and equipment. Land, Mineral Rights, Property, Plant and Equipment Land, mineral rights, property, plant and equipment are recorded at acquisition cost. Expenditures that extend the useful lives of existing plant and equipment, or increase productivity of plant and equipment, are capitalized. Maintenance and repair costs that do not extend the useful lives or increase productivity of plant and equipment are expensed as incurred. Coal reserves, mineral rights and mine development costs are depleted based upon estimated proven and probable reserves. Long-term spare parts inventory begins depreciation when placed in service. Plant and equipment are depreciated on a straight-line basis over the assets’ estimated useful lives as follows: Years Buildings and improvements 5 to 40 Machinery and equipment 1 to 36 When an asset is retired or sold, its cost and related accumulated depreciation and depletion are removed from the accounts. The difference between the net book value of the asset and proceeds on disposition is recorded as a gain or loss. Fully depreciated plant and equipment still in use is not eliminated from the accounts. Amortization of capital leases is included in Depreciation, depletion and amortization . Deferred Longwall Costs The Company defers the direct costs associated with longwall moves, including longwall set-up costs, supplies and refurbishment costs of longwall equipment at our San Juan mine. These deferred costs are expensed on a units-of-production basis into cost of coal produced (excluding depreciation, depletion and amortization) over the panel benefited by these costs, which has historically approximated one year. Impairment of Long-Lived Assets The Company evaluates its long-lived assets held and used in operations for impairment as events and changes in circumstances indicate that the carrying amount of such assets might not be recoverable. Factors that would indicate potential impairment to be present include, but are not limited to, a sustained history of operating or cash flow losses, an unfavorable change in earnings and cash flow outlook, prolonged adverse industry or economic trends or a significant adverse change in the extent or manner in which a long-lived asset is being used or in its physical condition. Assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets. Coal mining assets are generally grouped at the mine level. When indicators of impairment are present, the Company evaluates its long-lived assets for recoverability by comparing the estimated undiscounted cash flows expected to be generated by those assets under various assumptions to their carrying amounts. If such undiscounted cash flows indicate that the carrying value of the asset group is not recoverable, impairment losses are measured by comparing the estimated fair value of the asset group to its carrying amount. Fair value is generally determined through the use of an expected present value technique based on the income approach. The estimated future cash flows and underlying assumptions used to assess recoverability and, if necessary, measure the fair value of the Company’s long-lived asset groups are derived from those developed in connection with the Company’s planning and budgeting process. Reclamation Deposits Certain of the Company’s customers have pre-funded a portion of expected reclamation costs. Amounts received from customers and held on deposit are recorded within Restricted investments, reclamation deposits and bond collateral . Financial Instruments The Company evaluates all of its financial instruments to determine if such instruments are derivatives, derivatives that qualify for the normal purchase normal sale exception or instruments that contain features that qualify them as embedded derivatives. Except for derivatives that qualify for the normal purchase normal sale exception, all derivative financial instruments are recognized in the balance sheet at fair value. Changes in fair value are recognized in earnings if they are not eligible for hedge accounting or Accumulated other comprehensive loss if they qualify for hedge accounting. The Company has securities classified as available-for-sale, which are recorded at fair value. The changes in fair values are recorded as unrealized gains (losses) as a component of Accumulated other comprehensive loss in the Consolidated Balance Sheets. The Company reviews its securities routinely for other-than-temporary impairment. The primary factors used to determine if an impairment charge must be recorded because a decline in value of the security is other than temporary include (i) whether the fair value of the investment is significantly below its cost basis, (ii) the financial condition of the issuer of the security, (iii) the length of time that the cost of the security has exceeded its fair value and (iv) the Company’s intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in market value. Other-than-temporary impairments are recorded as a component of Other (loss) income . Fair Value Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly 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. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy, as defined below, gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. • Level 1, defined as observable inputs such as quoted prices in active markets for identical assets. Level 1 assets include available-for-sale equity securities generally valued based on independent third-party market prices. • Level 2, defined as observable inputs other than Level 1 prices. These include quoted prices for similar assets or liabilities in an active market, quoted prices for identical assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. See Note 4 - Loss On Impairment , Note 6 - Restricted Investments, Reclamation Deposits And Bond Collateral and Note 13 - Fair Value Measurements to the consolidated financial statements for further disclosures related to the Company's fair value estimates. Intangible Assets and Liabilities Identifiable intangible assets or liabilities acquired in a business combination are specifically identified and recognized on a standalone basis. These intangible assets and liabilities are amortized on a straight-line basis over the respective useful life of the asset or liability. See Note 7 - Intangible Assets And Liabilities to the consolidated financial statements for further details. Workers’ Compensation Benefits The Company is self-insured for workers’ compensation claims incurred prior to 1996. The liabilities for workers’ compensation claims are actuarially determined estimates of the ultimate losses incurred based on the Company’s experience. Adjustments to the actuarially determined liability are made annually based on subsequent developments and experience and are included in operations at the time of the revised estimate. The Company insures its current employees through third-party insurance providers and state arrangements. Pneumoconiosis (Black Lung) Benefits The Company is self-insured for federal and state black lung benefits for former Heritage employees. The Company accounts for these benefits on the accrual basis. An independent actuary annually calculates the present value of the accumulated black lung obligation. The liability is included in Other liabilities on the Consolidated Balance Sheets. The Company insures its current represented employees through arrangements with its unions and its current non-represented employees are insured through third-party insurance providers. The Company maintains actuarially determined accruals to account for estimates of the ultimate losses incurred. Postretirement Health Care Benefits The Company accrues the cost to provide the benefits over the employees’ period of active service for postretirement benefits other than pensions. These costs are determined on an actuarial basis. The Company’s Consolidated Balance Sheets reflect the unfunded status of postretirement benefit obligations. Pension and SERP Plans The Company accrues the cost to provide the benefits over the employees’ period of active service for the non-contributory defined benefit pension and SERP plans it sponsors. These costs are determined on an actuarial basis. The Company’s Consolidated Balance Sheets reflect the unfunded status of the defined benefit pension and SERP plans, with the current portion of the liability in Other current liabilities . Deferred Revenue Deferred revenues represent funding received in advance of meeting the revenue recognition criteria. Deferred revenues will be recognized as revenue in the periods in which all revenue recognition criteria have been met. Asset Retirement Obligations The Company’s asset retirement obligation, or "ARO," primarily consist of estimated costs to reclaim surface land and support facilities at its mines and power plants in accordance with federal and state reclamation laws as established by each mining permit. The Company estimates its ARO for final reclamation and mine closure based upon detailed engineering calculations of the amount and timing of the future costs for a third party to perform the required work. These estimates are based on projected pit configurations and are escalated for inflation, and then discounted at a credit-adjusted risk-free rate. The Company records asset retirement cost associated with the initial recorded liability. Asset retirement cost is amortized based on the units of production method over the estimated proven and probable reserves at the related mine, and the ARO is accreted to the projected settlement date. Changes in estimates could occur due to revisions of mine plans, changes in estimated costs or changes in timing of the performance of reclamation activities. Income Taxes The Company is subject to income taxes in the U.S. (including federal and state) and certain foreign jurisdictions. Deferred income taxes are provided for temporary differences arising from differences between the financial statement amount 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 (greater than 50%) that a deferred tax asset will not be realized. In determining the need for a valuation allowance at each reporting period, the Company considers projected realization of tax benefits based on expected levels of future taxable income, the duration of statutory carryforward periods, experience with operating loss and tax credit carryforwards not expiring and availability of tax planning strategies. Accounting guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Under this guidance, a company can recognize the benefit of an income tax position only if it is more likely than not (greater than 50%) that the tax position will be sustained upon tax examination, based solely on the technical merits of the tax position. Guidance is also provided on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company includes interest and penalties related to income tax matters in income tax expense. Deferred tax liabilities and assets are classified as noncurrent in the Consolidated Balance Sheets. The tax effect of pretax income or loss from continuing operations is generally determined by a computation that does not consider the tax effects of items that are not included in continuing operations. The exception to that incremental approach is that all items (for example, items recorded in other comprehensive income) be considered in determining the amount of tax benefit that results from a loss from continuing operations and that shall be allocated to continuing operations. Deferred Financing Costs The Company capitalizes costs incurred in connection with establishment of credit facilities and issuance of debt securities. These costs are amortized as an adjustment to interest expense over the life of the debt security or term of the credit facility using the effective interest method. These amounts are recorded in the Consolidated Balance Sheets in Other assets in the case of credit facilities and in the case of debt securities in Long-term debt, less current installments as a direct deduction of the carrying amount of the debt security, consistent with debt discounts in the Consolidated Balance Sheets. Revenue Recognition Revenue is recognized when the following criteria have been met: persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable and the collection of funds is reasonably assured. Coal Revenues The Company generally recognizes revenue from the sale of coal at the time title passes to the customer in accordance with the terms of the underlying sales agreement. The point that title passes varies by agreement. Under our sales agreements, title transfer points include upon loading to truck or rail, upon delivery by truck or rail, upon loading to conveyor belt, upon delivery from conveyor belt and upon delivery to stockpile. Coal revenue is recognized based on the pricing contained in the contracts in place at the time that title passes. Certain of our coal contracts require that the customer reimburse us for reclamation expenditures when incurred. On the delivery of coal these reimbursements are generally not yet fixed or determinable. Accordingly, these reimbursements are not recognized as revenue until they become fixed or determinable, which generally occurs when reclamation expenditures are incurred. Reclamation expenditures may be incurred and the associated revenue related to reimbursements may be recognized during periods of coal delivery, or in some instances, may continue to be incurred and recognized for several years after coal deliveries have been completed. Power Revenues ROVA supplied power it produced and generated revenues from such deliveries, as well as through the settlement of related purchased power arrangements. A portion of the payment under the power sales agreement was considered to be an operating lease. The Company recognized amounts previously invoiced as revenue on a straight-line basis over the remaining term of the power sales agreement. Other Operating Loss (Income) Other operating loss (income) in the Consolidated Statements of Operations reflects items of income or loss from sources other than coal or power revenues. The Company recognizes other operating income when business interruption losses have been incurred and reimbursement is realized or realizable . Insurance proceeds are included in Net cash provided by operating activities when received. Share-Based Compensation Share-based compensation expense is generally measured at the grant date and recognized as expense over the vesting period of the entire award for stock-settled grants and remeasured at fair value at the end of each period and accrued as a liability for cash-settled grants. These costs are recorded in Selling and administrative in the Consolidated Statements of Operations. See Note 14 - Share-Based Compensation to the consolidated financial statements for further details. Derivatives The Company enters into financial derivatives to manage exposure to fluctuations in power prices. The Company does not utilize derivative financial instruments for trading purposes or for speculative purposes. The Company’s derivative instruments are recorded at fair value with changes in fair value recognized in the Consolidated Statements of Operations at the end of each period in Derivative (gain) loss . Foreign Exchange Transactions Amounts held and transactions denominated in foreign currencies other than the operating unit’s functional currency give rise to foreign exchange gains and losses which are included within (Loss) gain on foreign exchange in the Consolidated Statements of Operations . Foreign Currency Translation The functional currency of the Company’s Canadian operations is the Canadian dollar. The Company’s Canadian operations’ assets and liabilities are translated at period end exchange rates, and revenues and costs are translated using average exchange rates for the period. Foreign currency translation adjustments are reported in Other comprehensive loss, net of income taxes in the Consolidated Statements of Comprehensive Loss. Reclassifications Certain amounts in prior periods have been reclassified to conform with current year presentation, with no effect on previously reported net loss, cash flows or shareholders’ deficit. Recently Adopted Accounting Pronouncements In October 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU") 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory , which eliminates the exception that prohibits the recognition of current and deferred income tax effects for intra-entity transfers of assets other than inventory until the asset has been sold to an outside party. The new guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. The amendments in this update should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to accumulated deficit as of the beginning of the period of adoption. The Company early adopted this standard during the first quarter of 2017, which resulted in a cumulative effect adjustment as of January 1, 2017 reducing Other assets and Accumulated deficit by $0.4 million . In March 2016, FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . This guidance is designed to address simplification of several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This guidance is effective for interim and annual periods beginning after December 15, 2016, and early adoption is permitted. Our January 1, 2017 retrospective adoption of this guidance did not have a material impact to our consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory , which simplifies the subsequent measurement of inventory by replacing the historical lower of cost or market test with a lower of cost or net realizable value test. This guidance is effective for interim and annual periods beginning after December 15, 2016. Our January 1, 2017 adoption of this guidance did not have a material impact to our consolidated financial statements. Accounting Pronouncements Effective in the Future In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Cost , which requires separate presentation of service costs and all other components of net benefit costs on the statement of operations. Under this ASU, service cost is included in the same line item as other compensation costs arising from services rendered by employees during the period, with all other components of net benefit costs on the statement of operations outside of income from operations. The new guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. The amendments in this update require retrospective application. We will adopt the new guidance in the first quarter of 2018 and the adoption of this guidance will not have a material impact on the consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which standardizes cash flow statement classification of certain transactions, including cash payments for debt prepayment or extinguishment, proceeds from insurance claim settlements, and distributions received from equity method investments. The new guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. The new guidance should be applied using a retrospective transition method to each period presented. If impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. We will adopt the new guidance in the first quarter of 2018 and the adoption of this guidance will not have a material impact on the consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which requires companies leasing assets to recognize on their balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term on contracts longer than one year. The new guidance is effecti |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
ACQUISITIONS | 2. ACQUISITIONS Acquisition of San Juan On January 31, 2016 , WSJ, a variable interest entity of the Company, acquired SJCC, which operates the San Juan mine in Farmington, New Mexico, and San Juan Transportation Company (“SJTC” and such transaction, the “San Juan Acquisition”) for a total cash purchase price of $121.0 million after post-closing and working capital adjustments. The San Juan mine is the exclusive supplier of coal to the adjacent SJGS under a coal supply agreement through 2022. The San Juan operations are included in the Company’s Coal - U.S. segment. WSJ financed the San Juan Acquisition principally with a $125.0 million loan from NM Capital Utility Corporation (the “San Juan Loan”), an affiliate of Public Service Company of New Mexico (one of the owners of SJGS). The loan is structured as a senior secured term loan (the “ San Juan Loan ”) maturing February 1, 2021 and is expected to bear interest at a (i) 7.25% rate (the “Margin Rate”) plus (ii) (A) the London Interbank Offered Rate for a three month period plus (B) a statutory reserve rate, which such Margin Rate increases incrementally during each year of the San Juan Loan term with a final Margin Rate of 14.25% in the final year of the term. The San Juan Loan has no prepayment penalties. The agreements governing the San Juan Loan include representations and warranties and covenants regarding the ownership and operation of SJCC and the properties acquired in the Acquisition and standard special purpose bankruptcy remote entity covenants designed to preserve the separateness from Westmoreland of each of (i) WSJ, (ii) WSJ's direct parent company, Westmoreland San Juan Holdings, Inc., and (iii) the San Juan Entities ((i), (ii) and (iii) collectively, the “Westmoreland San Juan Entities”). Obligations under the San Juan Loan are recourse only to the Westmoreland San Juan Entities and their assets, and neither Westmoreland nor its subsidiaries (other than the Westmoreland San Juan Entities) is an obligor under the San Juan Loan in any respect. The agreement governing the San Juan Loan requires that all revenues of the San Juan Entities, aside from payments on certain leases, are deposited into a cash management collection account swept monthly for operating expenses, capital expenditures, and San Juan Loan payment and prepayment. In connection with certain mining permits relating to the operation of the San Juan mine, WSJ has posted reclamation bonds of $125.2 million with the New Mexico Mining and Minerals Division. The San Juan Acquisition has been accounted for under the acquisition method of accounting that requires the total purchase consideration to be allocated to the assets acquired and liabilities assumed based on estimates of fair value. Purchase price accounting was considered final as of December 31, 2016. The allocation of the purchase consideration follows (in millions): Final as of December 31, 2016 Purchase price: Cash paid $ 121.0 Allocation of purchase price: Assets: Inventories 8.8 Total current assets 8.8 Land and mineral rights 143.9 Plant and equipment 74.6 Other assets 1.3 Total assets 228.6 Liabilities: Trade payables and other accrued liabilities 13.4 Production taxes 2.0 Asset retirement obligations 0.7 Total current liabilities 16.1 Asset retirement obligations, less current portion 43.5 Postretirement medical benefits 1.9 Deferred income taxes 46.1 Total liabilities 107.6 Net fair value $ 121.0 Unaudited Pro Forma Information The following unaudited pro forma information has been prepared for illustrative purposes only and assumes the San Juan Acquisition occurred on January 1, 2015. The unaudited pro forma results have been prepared based on estimates and assumptions, which the Company believes are reasonable, however, they are not necessarily indicative of the Consolidated Statements of Operations had the acquisitions occurred on the dates indicated above, or of future results of operations. Due to the full year of ownership in 2017, no pro forma information has been presented below for the year ended December 31, 2017. Years Ended December 31, 2016 2015 (In thousands, except per share data) Total revenues As reported $ 1,477,960 $ 1,419,518 Pro forma (unaudited) 1,504,235 1,714,043 Operating income (loss) As reported $ 38,130 $ (145,696 ) Pro forma (unaudited) 39,225 (106,606 ) Net loss applicable to common shareholders As reported $ (27,101 ) $ (213,645 ) Pro forma (unaudited) (26,676 ) (187,139 ) Net loss per share applicable to common shareholders, basic & diluted As reported $ (1.47 ) $ (11.93 ) Pro forma (unaudited) (1.44 ) (10.45 ) Kemmerer Drop On August 1, 2015, we contributed 100% of the outstanding equity interests in Westmoreland Kemmerer, LLC (“Kemmerer”) to WMLP in exchange for $230 million in aggregate consideration, comprised of $115 million in cash and $115 million in newly issued WMLP Series A Convertible Units (the “Series A Units” and such transaction, the “Kemmerer Drop”). In connection with the Kemmerer Drop, all employees of Kemmerer and related employee liabilities, including but not limited to postretirement pension obligations and postretirement health benefits, were transferred to the Parent. The Series A Units are convertible into common units representing limited partner interests of WMLP (“Common Units”), on a one-for-one basis, upon the earlier of (i) the date on which WMLP first makes a regular quarterly cash distribution to holders of Common Units in an amount equal to at least $0.22 per Common Unit, or (ii) a change of control of WMLP. Following the Kemmerer Drop, at December 31, 2017 we held an approximately 93.94% controlling interest in WMLP (on a fully diluted basis). The Kemmerer Drop represents a reorganization of entities under common control. Accordingly, the net assets transferred are deemed to have transferred at the $102.6 million carrying value as of the date of transfer. No gain or loss was recognized. |
VARIABLE INTEREST ENTITY (Notes
VARIABLE INTEREST ENTITY (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITY | 3. VARIABLE INTEREST ENTITY As of December 31, 2017 , the Company consolidated its 100% owned WSJ subsidiary which is a variable interest entity (“VIE”). WSJ’s classification as a VIE is due to another party having the potential right to receive WSJ’s residual returns. The Company is the primary beneficiary because it has the power to direct the activities that most significantly impact WSJ’s economic performance. Accordingly, the Company consolidated the operating results, assets and liabilities of WSJ. See Note 2 - Acquisitions and Note 8 - Debt And Lines Of Credit to the consolidated financial statements. The following table presents the carrying amounts, after eliminating the effect of intercompany transactions, included in the Consolidated Balance Sheets that are for the use of or are the obligation of WSJ (in thousands): December 31, 2017 December 31, 2016 Assets $ 203,737 $ 268,910 Liabilities 167,529 243,884 Net carrying amount $ 36,208 $ 25,026 |
LOSS ON IMPAIRMENT
LOSS ON IMPAIRMENT | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
LOSS ON IMPAIRMENT | 4. LOSS ON IMPAIRMENT For the year ended December 31, 2017, we recorded an impairment charge of $5.9 million related to land and mineral rights in Kentucky within our Coal - WMLP segment which were determined to have no further economic value. During the fourth quarter of 2015 we evaluated our ROVA asset group for impairment primarily as a result of an impairment indicator related to the continued decline in forecasted electricity prices. The asset group was comprised of property, plant, and equipment and related capital spares used to generate electricity, and resided in our Power segment. Our evaluation concluded that the long-lived assets at ROVA were impaired, and the carrying value of those assets was written down to zero as a result of an impairment charge of $133.1 million , with the charge included in Loss on impairment in the Consolidated Statements of Operations for the year ended December 31, 2015. Our fair value measurement for these assets was determined based on a probability-weighted estimate of discounted future cash flows, which are Level 3 fair value measurements. Key inputs to the fair value measurement for these assets included current forecasted electricity prices in the region ROVA serves, which we believe will continue to remain at depressed levels, as well as forecasted cost inputs based on the Company’s planning and budgeting process. We also recorded an impairment charge of $3.1 million to the same line item in the Consolidated Statements of Operations during the year ended December 31, 2015 for certain immovable fixed assets at our Coal Valley mine, which is part of the Coal-Canada segment, primarily as a result of continued declines in pricing in the export markets which Coal Valley serves. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 5. INVENTORIES Inventories consisted of the following: December 31, 2017 December 31, 2016 (In thousands) Coal stockpiles $ 38,145 $ 44,692 Materials and supplies 73,517 84,444 Reserve for obsolete inventory (4,867 ) (3,621 ) Total $ 106,795 $ 125,515 |
RESTRICTED INVESTMENTS, RECLAMA
RESTRICTED INVESTMENTS, RECLAMATION DEPOSITS AND BOND COLLATERAL | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Restricted Investments and Bond Collateral [Abstract] | |
RESTRICTED INVESTMENTS, RECLAMATION DEPOSITS AND BOND COLLATERAL | 6. RESTRICTED INVESTMENTS, RECLAMATION DEPOSITS AND BOND COLLATERAL Coal segments maintain government-required bond collateral that assures compliance with applicable federal and state regulations relating to the performance of final reclamation activities. The amounts deposited in the bond collateral account secure the bonds issued by the bonding company. The Corporate segment is required to obtain surety bonds in connection with its self-insured workers’ compensation plan and certain health care plans. The Company’s surety bond underwriters require collateral to issue these bonds. Prior to December 31, 2017 , the Power segment was required to maintain a collateral account related to its contracts to purchase power. The Company invests certain bond collateral, reclamation deposits and other restricted investments in a limited selection of fixed-income investment options and receives the corresponding investment returns. These investments are not available to meet the Company’s general cash needs. These investments include available-for-sale securities, which are reported at fair value with unrealized gains and losses excluded from earnings and reported in Accumulated other comprehensive loss in the Consolidated Balance Sheets. On disposal, the resulting gain or loss is reported in Other (loss) income in the Consolidated Statements of Operations. The Company’s carrying value and estimated fair value of Restricted investments, reclamation deposits and bond collateral as of December 31, 2017 were as follows: Restricted Investments and Bond Collateral Reclamation Deposits Total Restricted Investments, Reclamation Deposits and Bond Collateral (In thousands) Cash and cash equivalents $ 42,549 $ 6,643 $ 49,192 Time deposits 2,467 — 2,467 Available-for-sale 78,157 70,378 148,535 $ 123,173 $ 77,021 $ 200,194 The Company’s carrying value and estimated fair value of its Restricted investments, reclamation deposits and bond collateral as of December 31, 2016 were as follows: Restricted Investments and Bond Collateral Reclamation Deposits Total Restricted Investments, Reclamation Deposits and Bond Collateral (In thousands) Cash and cash equivalents $ 66,860 $ 2,673 $ 69,533 Time deposits 2,473 — 2,473 Available-for-sale 75,580 71,689 147,269 $ 144,913 $ 74,362 $ 219,275 Available-for-Sale Restricted Investments The cost basis, gross unrealized holding gains and losses, and fair value of available-for-sale securities as of December 31, 2017 were as follows: Restricted Investments and Bond Collateral Reclamation Deposits Total Restricted Investments, Reclamation Deposits and Bond Collateral (In thousands) Cost basis $ 78,564 $ 70,576 $ 149,140 Gross unrealized holding gains 521 617 1,138 Gross unrealized holding losses (928 ) (815 ) (1,743 ) Fair value $ 78,157 $ 70,378 $ 148,535 The cost basis, gross unrealized holding gains and losses, and fair value of available-for-sale securities as of December 31, 2016 were as follows: Restricted Investments and Bond Collateral Reclamation Deposits Total Restricted Investments, Reclamation Deposits and Bond Collateral (In thousands) Cost basis $ 76,558 $ 72,381 $ 148,939 Gross unrealized holding gains 251 453 704 Gross unrealized holding losses (1,229 ) (1,145 ) (2,374 ) Fair value $ 75,580 $ 71,689 $ 147,269 Maturities of available-for-sale securities were as follows as of December 31, 2017 : Cost Basis Fair Value (In thousands) Due within one year $ 13,960 $ 13,423 Due in five years or less 60,827 60,447 Due after five years to ten years 32,381 32,527 Due in more than ten years 41,972 42,138 $ 149,140 $ 148,535 For the years ended December 31, 2017 , 2016 , and 2015 , the Company recorded realized (losses) gains of $(0.3) million , $0.2 million , and $0.1 million , respectively, on the sale of available-for-sale securities. |
INTANGIBLE ASSETS AND LIABILITI
INTANGIBLE ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS AND LIABILITIES | 7. INTANGIBLE ASSETS AND LIABILITIES Identifiable intangible assets acquired in a business combination are specifically identified and recognized on a standalone basis. Intangible assets result from more favorable contract prices than market prices in lease agreements as measured during a business combination. As a result of prior period acquisitions, we determined that the most significant acquired identifiable intangible assets are related to favorable lease agreements. These intangible assets are recorded in Other assets on our Consolidated Balance Sheets and are amortized on a straight-line basis over the remaining terms of the lease agreements. December 31, 2017 Estimated Remaining Life (years) Cost Accumulated Amortization Net Carrying Value (In thousands except for years data) Favorable lease agreements 12 $ 32,174 $ 6,327 $ 25,847 December 31, 2016 Estimated Remaining Life (years) Cost Accumulated Amortization Net Carrying Value (In thousands except for years data) Favorable lease agreements 13 $ 32,174 $ 4,142 $ 28,032 Amortization of intangible assets recognized in Depreciation, depletion and amortization was $2.2 million , $2.2 million and $2.1 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Our intangible liabilities resulted from our acquisition, as part of a business combination, of contracts with terms that were unfavorable to prevailing market prices at the time of acquisition. Amortization of intangible liabilities recognized in Revenues in the Consolidated Statements of Operations was $0.9 million for the years ended December 31, 2017 , 2016 and 2015 . During the fourth quarter of 2017 we disposed of our ROVA segment operations as well as all associated intangible liabilities. As such, no further amortization of these intangible liabilities into Revenues will occur in future periods. The intangible assets and liabilities are generally amortized straight-line over the life of the related contracts. The estimated amortization amounts from intangibles assets for each of the next five years as of December 31, 2017 are as follows: Amount of Amortization to Recognize in Expense 2018 $ 2,184 2019 2,184 2020 2,184 2021 2,184 2022 2,184 |
DEBT AND LINES OF CREDIT
DEBT AND LINES OF CREDIT | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
DEBT AND LINES OF CREDIT | 8. DEBT AND LINES OF CREDIT The Company and its subsidiaries are subject to the following debt arrangements: Issuance Amount Issuance Date Maturity Date Total Debt Outstanding December 31, 2017 December 31, 2016 (In millions) (MM/DD/YY) (MM/DD/YY) (In thousands) 8.75% Notes $350.0 12/16/14 1/1/22 $ 350,000 $ 350,000 Term Loan 425.0 12/16/14 12/16/20 320,595 323,883 San Juan Loan 125.0 2/1/16 2/1/21 56,640 95,000 WMLP Term Loan 295.0 12/31/14 12/31/18 312,734 306,189 Revolver * 12/16/14 12/31/18 — — Capital lease obligations Varies Varies Varies 33,113 55,061 Other debt Varies Varies Varies 2,826 16,464 Total debt 1,075,908 1,146,597 Less debt discount and issuance costs, net (27,501 ) (37,531 ) Less current installments, net of debt discount and issuance costs (983,427 ) (86,272 ) Total non-current debt $ 64,980 $ 1,022,794 ____________________ * Not applicable. The following table presents aggregate contractual debt maturities of all long-term debt as of December 31, 2017 (in thousands): Maturity Date (1) Debt Held by WMLP All Other Debt Total Debt Outstanding 2018 $ 316,982 $ 21,345 $ 338,327 2019 4,175 17,263 21,438 2020 1,768 339,548 341,316 2021 1,664 21,165 22,829 2022 1,998 350,000 351,998 Thereafter — — — Total debt $ 326,587 $ 749,321 $ 1,075,908 _________________ (1) Debt obligations are scheduled based on their contractual maturities and are not reflective of any potential accelerations discussed further below. Covenant Compliance The WMLP Term Loan matures on December 31, 2018 and WMLP does not currently have liquidity or access to additional capital sufficient to pay off this debt by its maturity date. This condition gives rise to substantial doubt about WMLP’s ability to continue as a going concern for one year after the issuance of their financial statements. Certain covenants in the WMLP Term Loan provide that an audit opinion on WMLP’s stand-alone consolidated financial statements that includes an explanatory paragraph referencing WMLP's conclusion that substantial doubt exists as to WMLP’s ability to continue as a going concern constitutes an event of default. The audit opinion in WMLP’s Annual Report on Form 10-K contains such an explanatory paragraph. On March 1, 2018, the WMLP Term Loan lenders waived the event of default arising as a result of such explanatory paragraph being included in the audit opinion in WMLP’s Annual Report on Form 10-K. This waiver expires on the earlier occurrence of May 15, 2018 or upon the occurrence of any other event of default under the WMLP Term Loan. Unless WMLP obtains further waivers for or otherwise cures this event of default, the lenders could accelerate the maturity date of the WMLP Term Loan after the waiver expires, making it immediately due and payable. This event of default under the WMLP Term Loan would also constitute an event of default under our Term Loan and 8.75% Notes, making them also immediately due and payable. Accordingly, all outstanding principal balances and related debt issuance costs for the WMLP Term Loan, the Term Loan and the 8.75% Notes are presented as current debt in our consolidated financial statements. We do not currently have liquidity or access to additional capital sufficient to pay off this debt. Our Revolver contains a financial covenant requiring that we maintain certain minimum fixed charge coverage ratios. On March 30, 2018, we executed an amendment to our Revolver with Canadian Imperial Bank of Commerce (formerly known as The PrivateBank and Trust Company), as agent and as lender, and East West Bank, as a lender, which amended, among other things, the calculation of Canadian EBITDA as it is used in the fixed charge coverage ratio. The amendment removed certain financial results attributable to the Coal Valley mine from Canadian EBITDA and results in our compliance with the covenant for the year ended December 31, 2017. Absent this amendment we would have failed to satisfy the financial covenant. The amendment also waives any covenant violation for the year ended December 31, 2017 that solely results from the receipt of an opinion from our independent registered public accounting firm that includes an explanatory paragraph referencing WCC’s conclusion that substantial doubt exists as to WCC’s ability to continue as a going concern. Our San Juan Loan provides that the issuance of parent company (WCC) financial statements which include an audit opinion containing an explanatory paragraph referencing WCC's conclusion that substantial doubt exists as to WCC's ability to continue as a going concern constitutes an event of default thereunder. On March 28, 2018, we executed an extension and waiver agreement with NM Capital Utility Corporation, as lender, which, among other things, waived the requirement that the audit opinion included in our consolidated financial statements is without such an explanatory paragraph. This waiver expires on the earlier of May 1, 2019 or the occurrence of any event of default not already waived. 8.75% Notes Pursuant to our senior note indenture, dated as of December 16, 2014, by and among the Company, the guarantors named therein, and U.S. Bank National Association, as trustee and notes collateral agent (the “Indenture”), our senior secured 8.75% Notes (“ 8.75% Notes ”) were issued at a 1.292% discount and bear a fixed interest rate of 8.75% payable semiannually, on January 1 and July 1 of each year, commencing July 1, 2015. The 8.75% Notes are a primary obligation of the Company and are guaranteed by Westmoreland Energy LLC, Westmoreland Mining LLC and Westmoreland Resources, Inc. and their respective subsidiaries (other than Absaloka Coal, LLC, Westmoreland Risk Management, Inc. and certain other immaterial subsidiaries), referred to as the “Guarantors.” The 8.75% Notes are not guaranteed by Westmoreland Canada LLC or any of its subsidiaries, Westmoreland San Juan, LLC or any of its subsidiaries, or Westmoreland Resources GP, LLC or WMLP, referred to as the “Non-guarantors.” The 8.75% Notes are the Company’s senior secured obligations, rank equally in right of payment with all of the Company’s existing and future senior obligations, including the Term Loan (defined below under “ Term Loan ”) and rank senior to all of the Company’s existing and future indebtedness that is expressly subordinated to the 8.75% Notes . The 8.75% Notes have not been registered under the Securities Act of 1933. The 8.75% Notes contain certain customary cross-default provisions. In 2014, the Company capitalized debt issuance costs of $10.2 million in connection with the 8.75% Notes . The Company may redeem all or part of the 8.75% Notes beginning on January 1, 2018 at the redemption prices set forth in the 8.75% Notes agreement, and prior to January 1, 2018 at 100% of the principal amount plus the applicable premium described in the 8.75% Notes agreement. In addition, at any time prior to January 1, 2018, the Company may redeem up to 35% of the aggregate principal amount of the 8.75% Notes with the net cash proceeds of certain equity offerings at a redemption price equal to 108.75% of the principal amount to be redeemed, together with accrued and unpaid interest, if any, to the redemption date, subject to certain conditions. The 8.75% Notes and the guarantees are secured equally and ratably with the Term Loan (i) by first priority liens on substantially all of the Company’s and the guarantor parties’ tangible and intangible assets (excluding certain equity interests, mineral rights and sales contracts and certain assets subject to existing liens) and (ii) subject to the Revolver (as defined below), a second priority lien on substantially all cash, accounts receivable and inventory of the Company and the guarantors, and any other property with respect to, evidencing or relating to such cash, accounts receivable and inventory (whether now owned or hereinafter arising or acquired) and the proceeds and products thereof, subject in each case to permitted liens and certain exclusions (the “Notes Collateral”). The Notes Collateral is shared equally with the lenders under the Term Loan , who hold identical first and second priority liens, as applicable, on the Notes Collateral. The 8.75% Notes restrict the Company’s and its restricted subsidiaries’ ability to, among other things, (i) incur, assume or guarantee additional indebtedness or issue preferred stock; (ii) declare or pay dividends on, or make other distributions in respect of, their capital stock; (iii) purchase or redeem or otherwise acquire for value any capital stock or subordinated indebtedness; (iv) make investments, other than permitted investments; (v) create certain liens or use assets as security; (vi) enter into agreements restricting the ability of any restricted subsidiary to pay dividends, make loans, or any other distributions to the Company or other restricted subsidiaries; (vii) engage in transactions with affiliates; and (viii) consolidate or merge with or into other companies or transfer all or substantially all of their assets. The 8.75% Notes contain customary affirmative covenants, negative covenants, events of default, as well as certain customary cross-default provisions. Our compliance or non-compliance with these covenants is discussed above. Term Loan Pursuant to our credit agreement, dated as of December 22, 2014, by and among the Company, the lenders from time to time party thereto, and Bank of Montreal, as administrative agent, as amended (“ Term Loan ”), the $350.0 million Term Loan was issued at a 2.50% discount and accrues interest on a quarterly basis at a variable interest rate which is set at our election of (i) one-, two-, three- or six-month London Interbank Offered Rate (“LIBOR”) plus 6.50% or (ii) a base rate (determined with reference to the highest of the prime rate, the Federal Funds Rate plus 0.05% , or one-month LIBOR plus 1.00% ) plus 5.50% . As of December 31, 2017 , the cash interest rate was 8.19% . In 2014, the Company capitalized debt issuance costs of $8.4 million in connection with the Term Loan . The Term Loan is guaranteed by Westmoreland Energy LLC, Westmoreland Mining LLC, Westmoreland Resources, Inc. and certain other direct and indirect subsidiaries of the Company (other than Absaloka Coal, LLC, Westmoreland Risk Management, Inc., Westmoreland Canada, LLC, Westmoreland Resources GP, LLC, Westmoreland Resource Partners, LP and certain other immaterial subsidiaries). The obligations under the Term Loan are secured by identical first and second priority liens, as applicable, on the Notes Collateral. The Term Loan contains customary affirmative covenants, negative covenants, events of default, as well as certain customary cross-default provisions. Our compliance or non-compliance with these covenants is discussed above. Term Loan Add-on On January 22, 2015, the Company amended the Term Loan to increase the borrowings by $75.0 million , for an aggregate principal amount of $425.0 million as of that date. The amendments to the Term Loan were made in connection with the acquisition of Buckingham Coal Company, LLC. Net proceeds were $71.0 million after a 2.50% discount, 1.50% broker fee, a consent fee of 1.17% , and $0.1 million of additional debt issuance costs. With this addition, the quarterly principal payment due commencing March 31, 2015 is $1.1 million . Under the Term Loan , we are required to offer a portion of our excess cash flows for each fiscal year, beginning with the fiscal year ended December 31, 2015. In conjunction with the Kemmerer Drop, the Company amended the Term Loan to remove Kemmerer as a guarantor. In addition, $94.1 million of the proceeds received from WMLP related to the Kemmerer Drop were used to pay down the Term Loan . San Juan Loan On January 31, 2016, Westmoreland San Juan, LLC (“WSJ”), a special purpose subsidiary of Westmoreland, acquired San Juan Coal Company (“SJCC”), which operates the San Juan mine in Farmington, New Mexico, and San Juan Transportation Company (the “San Juan Acquisition”) for a total cash purchase price of $121.0 million after customary post-closing adjustments. The San Juan mine is the exclusive supplier of coal to the adjacent San Juan Generating Station (“SJGS”) under a coal supply agreement with tonnage and pricing adjusting quarterly through 2022. WSJ financed the San Juan Acquisition in part with a senior secured $125.0 million loan (“ San Juan Loan ”) pursuant to the loan agreement, dated as of February 1, 2016, by and among WSJ and the remaining Westmoreland San Juan Entities as guarantors, and NM Capital Utility Corporation (an affiliate of Public Service Company of New Mexico, part owner of SJGS) as lender. The San Juan Loan was issued at a 6.70% discount, incurred $3.1 million of debt issuance costs and pays interest and principal on a quarterly basis at an interest rate of (i) the Margin Rate of 7.25% plus (ii) (A) the LIBOR for a three month period plus (B) a statutory reserve rate, which such Margin Rate increases incrementally during each year of the San Juan Loan term with a final Margin Rate of 14.25% in the final year of the term. As of December 31, 2017 , the cash interest rate was 10.63% . In addition, in the event the loan is not paid off prior to maturity, the price of the coal in our coal supply agreement decreases by 10% after January 1, 2019 and 15% after January 1, 2021. The San Juan Loan is a primary obligation of Westmoreland San Juan, LLC, is guaranteed by SJCC, and is secured by substantially all of SJCC’s assets. The San Juan Loan has no prepayment penalties. The agreements governing the San Juan Loan include representations and warranties and covenants regarding the ownership and operation of SJCC and the properties acquired in the San Juan Acquisition and standard special purpose bankruptcy remote entity covenants designed to preserve the separateness from Westmoreland of each of (i) WSJ, (ii) its direct parent company, Westmoreland San Juan Holdings, Inc., (iii) SJCC and (iv) SJTC (collectively, the “Westmoreland San Juan Entities”). Obligations under the San Juan Loan are recourse only to the Westmoreland San Juan Entities and their assets. Westmoreland nor its subsidiaries (other than the Westmoreland San Juan Entities) is an obligor under the San Juan Loan in any respect. The agreement governing the San Juan Loan requires that all revenues of the Westmoreland San Juan Entities, aside from payments on certain leases, are deposited into a cash management collection account swept monthly for operating expenses, capital expenditures, and loan payment and prepayment. The assets and credit of SJCC are not available to satisfy the debts and other obligations of the Company other than those of the Westmoreland San Juan Entities. The San Juan Loan contains customary affirmative covenants and negative covenants. Our compliance or non-compliance with these covenants is discussed above. WMLP Term Loan Pursuant to the financing agreement, dated as of December 31, 2014, by and among Oxford Mining Company, LLC, WMLP and each of its subsidiaries, lenders from time to time party thereto, and U.S. Bank National Association, as administrative agent, WMLP entered into a term loan (“ WMLP Term Loan ”) which consists of a $175.0 million , with an option for an additional $120.0 million in term loans for acquisitions, which was exercised on August 1, 2015 to finance the Kemmerer Drop. Proceeds from the credit facility were used to retire WMLP’s previously existing first and second lien credit facilities and to pay fees and expenses related to its existing credit facility, with the remaining proceeds being available as working capital. The WMLP Term Loan was not issued at a discount or a premium and $8.6 million of debt issuance costs were recognized at December 31, 2014. The WMLP Term Loan pays interest on a quarterly basis and bears interest at a variable rate equal to the 3-month LIBOR at each quarter end ( 1.69% as of December 31, 2017 ), subject to a floor of 0.75% , plus 8.50% or the Reference Rate, as defined in the financing agreement. As of December 31, 2017 , the WMLP Term Loan had a cash interest rate of 10.19% . The WMLP Term Loan is a primary obligation of Oxford Mining Company, LLC, a wholly owned subsidiary of WMLP, is guaranteed by WMLP and its subsidiaries, and is secured by substantially all of WMLP’s and its subsidiaries’ assets. The WMLP Term Loan also provides for paid in kind interest (“PIK Interest”) at a variable rate between 1.00% and 3.00% based on WMLP’s consolidated net leverage ratio, as defined in the financing agreement. As of December 31, 2017 and 2016 , the WMLP Term Loan had a PIK Interest rate of 3.00% . The rate of PIK Interest is determined on a quarterly basis with the PIK Interest added quarterly to the then-outstanding principal amount of the WMLP Term Loan . PIK Interest under the WMLP Term Loan financing agreement was $9.3 million for the year ended December 31, 2017 . The outstanding WMLP Term Loan amount as of December 31, 2017 represents the principal balance of $287.3 million , plus PIK Interest of $25.4 million . The WMLP Term Loan limits cash distributions to the Restricted Distributions, an aggregate amount not to exceed $15.0 million , if WMLP has: (i) a consolidated total net leverage ratio of greater than 3.75 , or fixed charge coverage ratio of less than 1.00 (as such ratios are defined in the WMLP Term Loan financing agreement), or (ii) liquidity of less than $7.5 million , after giving effect to such cash distribution and applying WMLP's availability under the WMLP Revolver. As of December 31, 2017 , WMLP’s consolidated total net leverage ratio is in excess of 3.75 . Further, as of December 31, 2017 , WMLP has utilized the full $15.0 million limit on Restricted Distribution payments and is restricted from making any further distributions under the terms of the WMLP Term Loan financing agreement. The WMLP Term Loan contains customary affirmative covenants, negative covenants, events of default as well as certain customary cross-default provisions. Our compliance or non-compliance with these covenants is discussed above. Revolver Pursuant to the second amended and restated loan and security agreement, dated as of December 16, 2014, by and among the Company and certain of its subsidiaries, lenders party thereto, and Canadian Imperial Bank of Commerce (formerly known as The PrivateBank and Trust Company), as administrative agent (the “ Revolver ”) we have a total aggregate borrowing capacity of $60.0 million between June 15th and August 31st of each year, with an aggregate borrowing capacity of $50.0 million outside of these periods. The availability of the Revolver consists of a $30.0 million sub-facility ( $35.0 million with the seasonal increase) available to our U.S. borrowers and a $20.0 million sub-facility ( $25.0 million with the seasonal increase) available to our Canadian borrowers. The Revolver may support an equal amount of letters of credit, with outstanding letter of credit balances reducing availability under the facility. Borrowings under the Revolver initially bear interest either at a rate 0.75% in excess of the base rate or at a rate 2.75% per annum in excess of LIBOR, at our election. An unused line fee of 0.50% per annum is payable monthly on the average unused amount of the Revolver . The Revolver contains various affirmative, negative and financial covenants. Financial covenants in the agreement include certain specified minimum fixed charge coverage ratios. Our compliance or non-compliance with these covenants is discussed above. Twelfth Amendment to Second Amended and Restated Loan and Security Agreement On October 30, 2017, we executed an amendment to our existing Revolver with Canadian Imperial Bank of Commerce (formerly known as The PrivateBank and Trust Company), as agent and as a lender, and East West Bank, as a lender ("Twelfth Amendment"). The Twelfth Amendment amended: (a) financial statement reporting to include monthly reconciliations of U.S., Canadian and Consolidated EBITDA to corresponding Net Income figures and a monthly forecast of financial covenants for the next occurring quarter; (b) the calculation under the term “US EBITDA” to remove certain fees paid to legal and financial advisors in connection with the assessment of Westmoreland’s consolidated debt structure; and (c) calculations under the terms “Canadian EBITDA” and “Canadian Fixed Charges” to remove certain financial results attributable to the Coal Valley Mine, as well as permitted netting of certain Returned Collateral against unfinanced Canadian Capital Expenditures, in connection with any sale or discontinuance of operations of the Coal Valley Mine; as such capitalized terms are defined in our Second Amended and Restated Loan and Security Agreement, as amended, governing the Revolver. Thirteenth Amendment to Second Amended and Restated Loan and Security Agreement On March 30, 2018, we executed the Thirteenth Amendment to our Revolver with Canadian Imperial Bank of Commerce (formerly known as The PrivateBank and Trust Company), as agent and as lender, and East West Bank, as a lender, which amended, among other things, the calculation of Canadian EBITDA as it is used in the fixed charge coverage ratio. The amendment removed certain financial results attributable to the Coal Valley mine from Canadian EBITDA and results in our compliance with the covenant for the year ended December 31, 2017. Absent this amendment we would have failed the financial covenant. The amendment also waives the requirement that we deliver an unqualified opinion of our independent certified accountants for our audited financial statements for the year ended December 31, 2017 solely due to the receipt of a going concern opinion. This amendment is further described in Item 9B - Other Information of this Annual Report on Form 10-K. Our revolving credit facilities had the following details as of December 31, 2017 (in millions): Revolver Details U.S. Borrowers Canadian Borrowers U.S. & Canadian Borrowers Line of credit maximum availability - $ 30.0 $ 20.0 $ 50.0 Letters of credit outstanding 2.4 — 2.4 Borrowing base restrictions 14.4 4.5 18.9 Line of credit draws — — — Line of credit availability $ 13.2 $ 15.5 $ 28.7 All extensions of credit under the Revolver are collateralized by a first priority security interest in and lien upon the inventory and accounts receivable of substantially all of the Company’s subsidiaries (other than Absaloka Coal, LLC, Westmoreland Risk Management, Inc.,Westmoreland Resources GP, LLC, Westmoreland Resource Partners, LP and certain other immaterial subsidiaries). Pursuant to the Intercreditor Agreement, the holders of the 8.75% Notes and the Term Loan have a subordinate lien on these assets. WMLP Revolver On October 23, 2015, WMLP and its subsidiaries entered into a Loan and Security Agreement (the “ WMLP Revolver ”) with the lenders party thereto and Canadian Imperial Bank of Commerce (formerly known as The PrivateBank and Trust Company). The WMLP Revolver expired on its December 31, 2017 maturity date and was not replaced or extended by WMLP. Capital Lease Obligations The Company engages in leasing transactions for equipment utilized in its mining operations. At December 31, 2017 and 2016 , the capital leases outstanding had a weighted average interest rate of 5.20% and 4.64% , respectively, and mature at various dates beginning in 2018 through 2025. During the year ended December 31, 2017 , the Company entered into $1.3 million of new capital leases. |
POSTRETIREMENT MEDICAL BENEFITS
POSTRETIREMENT MEDICAL BENEFITS | 12 Months Ended |
Dec. 31, 2017 | |
Postretirement Health Coverage [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
POSTRETIREMENT MEDICAL BENEFITS | 9. POSTRETIREMENT MEDICAL BENEFITS The Company provides postretirement medical benefits to retired employees and their dependents, mandated by the Coal Industry Retiree Health Act of 1992 and pursuant to collective bargaining agreements. The Company also provides these benefits to qualified full-time employees pursuant to collective bargaining agreements. These benefits are provided through self-insured programs. The following table sets forth the actuarial present value of postretirement medical benefit obligations and amounts recognized in the Company’s financial statements: December 31, 2017 December 31, 2016 (In thousands) Change in benefit obligations: Net benefit obligation at beginning of year $ 323,601 $ 299,373 Liability acquired — 1,851 Service cost 3,018 3,270 Interest cost 12,651 12,353 Plan participant contributions 59 136 Actuarial loss 6,893 24,821 Gross benefits paid (15,457 ) (16,914 ) Federal subsidy on benefits paid 1,376 1,466 Curtailments — (2,755 ) Net benefit obligation at end of year 332,141 323,601 Change in plan assets: Employer contributions 15,398 16,778 Plan participant contributions 59 136 Gross benefits paid (15,457 ) (16,914 ) Fair value of plan assets at end of year — — Unfunded status at end of year $ (332,141 ) $ (323,601 ) Amounts recognized in the balance sheet consist of: Current liabilities $ (14,734 ) $ (14,892 ) Noncurrent liabilities (317,407 ) (308,709 ) Accumulated other comprehensive loss 55,123 51,893 Net amount recognized $ (277,018 ) $ (271,708 ) Amounts recognized in accumulated other comprehensive loss consists of: Net actuarial loss $ 58,301 $ 55,706 Prior service credit (3,178 ) (3,813 ) $ 55,123 $ 51,893 Prior service costs and credits and actuarial gains and losses are amortized over the average life expectancy or average future service of the plan’s participants. In 2018 , $3.9 million will be amortized from accumulated other comprehensive loss into net periodic benefit cost. The components of net periodic postretirement medical benefit cost are as follows: Years Ended December 31, 2017 2016 2015 (In thousands) Components of net periodic benefit cost: Service cost $ 3,018 $ 3,270 $ 4,217 Interest cost 12,651 12,353 11,629 Amortization of: Prior service credit (635 ) (636 ) (636 ) Actuarial loss 4,298 1,895 1,944 Total net periodic benefit cost $ 19,332 $ 16,882 $ 17,154 The following table shows the net periodic postretirement medical benefit costs that relate to current and former mining operations: Years Ended December 31, 2017 2016 2015 (In thousands) Former mining operations $ 9,222 $ 8,540 $ 8,137 Current operations 10,110 8,342 9,017 Total net periodic benefit cost $ 19,332 $ 16,882 $ 17,154 The costs for the former mining operations are included in Heritage health benefit expenses in the Consolidated Statements of Operations and the costs for current operations are included as operating expenses. Assumptions The weighted-average assumptions used to determine the benefit obligations as of the end of each year were as follows: December 31, 2017 December 31, 2016 Discount rate 3.45% - 3.85% 3.90% - 4.45% Measurement date December 31, 2017 December 31, 2016 Annually, Westmoreland determines discount rates for its retirement benefit plans using our third party actuary’s yield curve which is based on high quality U.S. corporate bonds. The discount rate is calculated as the single effective rate that produces the equivalent benefit obligation as that determined when discounting future liability cash flows using spot rates from the yield curve. The weighted-average assumptions used to determine net periodic benefit cost were as follows: December 31, 2017 December 31, 2016 December 31, 2015 Discount rate 3.90% - 4.45% 4.10% - 4.65% 3.75% - 4.25% Measurement date December 31, 2016 December 31, 2015 December 31, 2014 The following presents information about the assumed health care trend rate: December 31, 2017 December 31, 2016 Health care cost trend rate assumed for next year 6.50% 6.75% Rate to which the cost trend is assumed to decline (ultimate trend rate) 4.75% 4.75% Year that the trend rate reaches the ultimate trend rate 2025 2025 The effect of a one percent change on the health care cost trend rate used to calculate periodic postretirement medical benefit costs and the related benefit obligation are summarized in the table below: Postretirement Medical Benefits 1 % Increase 1 % Decrease (In thousands) Effect on service and interest cost components $ 2,743 $ (2,125 ) Effect on postretirement medical benefit obligation 48,294 (39,005 ) Cash Flows The following benefit payments and Medicare D subsidy (which the Company receives as a benefit partially offsetting its prescription drug costs for retirees and their dependents) are expected by the Company: Postretirement Medical Benefits Medicare D Subsidy Net Postretirement Medical Benefits (In thousands) 2018 $ 16,368 $ (1,634 ) $ 14,734 2019 16,889 (1,694 ) 15,195 2020 17,399 (1,751 ) 15,648 2021 17,802 (1,807 ) 15,995 2022 18,261 (1,860 ) 16,401 Years 2023 - 2027 94,618 (9,702 ) 84,916 Combined Benefit Fund The Combined Benefit Fund ("CBF") is a multi-employer health plan neither controlled by nor administered by the Company. The CBF is designed to pay health care benefits to UMWA workers (and dependents) who retired prior to 1976. The Company is required by the Coal Act to make monthly premium payments into the CBF. These payments are based on the number of the Company’s UMWA employees who retired prior to 1976, and the Company’s pro-rata assigned share of UMWA retirees whose companies are no longer in business. Contributions to the CBF have decreased over the past three years due to a declining population. The Company expenses payments to the CBF when they are due. The following payments were made to the CBF (in thousands): 2017 $ 1,445 2016 1,594 2015 1,794 Workers’ Compensation Benefits The Company was self-insured for workers’ compensation benefits prior to January 1, 1996. Since 1996, the Company has purchased third-party insurance for workers’ compensation claims. The following table shows the changes in the Company’s workers’ compensation obligation: December 31, 2017 December 31, 2016 (In thousands) Workers’ compensation, beginning of year (including current portion) $ 5,040 $ 5,658 Accretion 167 115 Claims paid (512 ) (399 ) Actuarial changes (426 ) (334 ) Workers’ compensation, end of year 4,269 5,040 Less current portion, included in Other current liabilities (489 ) (541 ) Workers’ compensation, less current portion, included in Other liabilities $ 3,780 $ 4,499 Black Lung Benefits The Company is self-insured for federal and state black lung benefits for former heritage employees. As of December 31, 2017 and 2016 , the Company’s black lung benefit obligations were $18.2 million and $17.6 million , respectively. The discount rates used in determining the actuarial present value of the black lung benefit obligation are based on corporate bond yields and are adjusted annually. As of December 31, 2017 and 2016 , the rates used were 3.37% and 3.70% , respectively. |
PENSION AND OTHER SAVING PLANS
PENSION AND OTHER SAVING PLANS | 12 Months Ended |
Dec. 31, 2017 | |
Pension Benefits [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
PENSION AND OTHER SAVING PLANS | 10. PENSION AND OTHER SAVING PLANS Defined Benefit Pension Plans The Company provides defined benefit pension plans to qualified full-time employees pursuant to collective bargaining agreements. Benefits are generally based on years of service and the employee’s average annual compensation for the highest five continuous years of employment as specified in the plan agreement. The Company’s funding policy is to contribute annually the minimum amount prescribed, as specified by applicable regulations. The Company may make additional discretionary contributions. In 2009, the Company froze its pension plan for non-represented employees. Supplemental Executive Retirement Plan The Company maintains a Supplemental Executive Retirement Plan ("SERP") for former executives as a result of employment or severance agreements. The SERP is an unfunded non-qualified deferred compensation plan, which provides benefits to certain employees beyond the maximum limits imposed by the Employee Retirement Income Security Act and the Internal Revenue Code. The Company does not expect to add new participants to its SERP plan. The following table provides a reconciliation of the changes in the benefit obligations of the plans and the fair value of assets of the qualified plans and the amounts recognized in the Company’s financial statements for both the defined benefit pension and SERP plans: December 31, 2017 December 31, 2016 (In thousands) Change in benefit obligation: Net benefit obligation at beginning of year $ 272,489 $ 184,681 Liability acquired — 89,300 Service cost 1,510 1,634 Interest cost 10,471 10,635 Actuarial loss 11,275 1,018 Benefits and expenses paid (13,691 ) (14,064 ) Settlements and curtailments (2,233 ) (992 ) Foreign currency exchange rate changes 1,006 277 Net benefit obligation at end of year 280,827 272,489 Change in plan assets: Fair value of plan assets at the beginning of year 236,042 141,137 Assets acquired — 90,600 Actual return on plan assets 29,207 18,053 Employer contributions 1,152 970 Benefits and expenses paid (13,691 ) (14,064 ) Settlements (2,233 ) (992 ) Foreign currency exchange rate changes 843 338 Fair value of plan assets at end of year 251,320 236,042 Unfunded status at end of year $ (29,507 ) $ (36,447 ) Amounts recognized in the accompanying balance sheet consist of: Noncurrent asset, included in Other assets $ 14,427 $ 7,893 Current liability, included in Other current liabilities (349 ) (358 ) Noncurrent liability (43,585 ) (43,982 ) Accumulated other comprehensive loss 19,921 26,123 Net amount recognized at end of year $ (9,586 ) $ (10,324 ) Amounts recognized in accumulated other comprehensive loss consist of: Net actuarial loss $ 19,860 $ 26,054 Prior service cost 61 69 $ 19,921 $ 26,123 Prior service costs and credits and actuarial gains and losses are amortized over the expected future period of service of the plan’s participants. In 2018 , $0.5 million will be amortized from accumulated other comprehensive loss into net periodic pension cost. The components of net periodic pension cost are as follows: Years Ended December 31, 2017 2016 2015 (In thousands) Components of net periodic pension cost: Service cost $ 1,510 $ 1,634 $ 1,732 Interest cost 10,471 10,635 7,397 Expected return on plan assets (14,556 ) (14,025 ) (9,959 ) Settlements and curtailments 796 186 — Amortization of: Prior service cost 8 8 8 Actuarial loss 2,818 4,167 3,442 Total net periodic pension cost $ 1,047 $ 2,605 $ 2,620 These costs are included in the Consolidated Statements of Operations in Cost of sales (exclusive of depreciation, depletion and amortization, shown separately) and Selling and administrative . Assumptions The weighted-average assumptions used to determine the benefit obligations as of the end of each year were as follows: December 31, 2017 December 31, 2016 Discount rate 3.30% - 3.55% 3.60% - 4.05% Measurement date December 31, 2017 December 31, 2016 Annually, Westmoreland determines discount rates for its retirement benefit plans using our third party actuary’s yield curve which is based on high quality U.S. corporate bonds. The discount rate is calculated as the single effective rate that produces the equivalent benefit obligation as that determined when discounting future liability cash flows using spot rates from the yield curve. The following table provides the assumptions used to determine net periodic pension cost: Years Ended December 31, 2017 2016 2015 Discount rate 3.60% - 4.05% 3.90% - 4.25% 3.60% - 3.90% Expected return on plan assets 1.50% - 6.80% 1.75% - 7.10% 3.66% - 7.10% Measurement date December 31, 2016 December 31, 2015 December 31, 2014 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 the Company. 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. Plan Assets The Company’s investment goals are to maximize returns subject to specific risk management policies. The Company sets the expected return on plan assets based on historical trends and forecasts provided by its third-party fund managers. Its risk management policies permit investments in mutual funds, and prohibit direct investments in debt and equity securities and derivative financial instruments. The Company addresses diversification by the use of mutual fund investments whose underlying investments are in fixed income and equity securities, both domestic and international. These mutual funds are readily marketable and can be sold to fund benefit payment obligations as they become payable. The weighted-average target asset allocation of the Company’s pension trusts were as follows at December 31, 2017 : Target Allocation Asset category: Cash and equivalents 0% - 10% Equity securities funds 20% - 60% Debt securities funds 40% - 80% Other 0% - 10% The fair value of the Company’s pension plan assets by asset category is as follows: December 31, 2017 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Fair Value Level 1 Level 2 Level 3 (In thousands) Pooled separate accounts: Large-cap blend (a) $ 65,574 $ — $ 65,574 $ — International blend (b) 11,639 — 11,639 — Fixed income domestic (c) 24,958 — 24,958 — Fixed income long-term (d) 111,683 — 111,683 — Stable value (e) 13,042 — 13,042 — Registered investment companies – growth fund 20,668 20,668 — — Limited partnerships and limited liability companies 10 — — 10 Westmoreland Coal common stock 56 56 — — Cash and cash equivalents 3,690 3,690 — — $ 251,320 $ 24,414 $ 226,896 $ 10 December 31, 2016 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Fair Value Level 1 Level 2 Level 3 (In thousands) Pooled separate accounts: Large-cap blend (a) $ 61,799 $ — $ 61,799 $ — International blend (b) 10,401 — 10,401 — Fixed income domestic (c) 21,732 — 21,732 — Fixed income long-term (d) 105,640 — 105,640 — Stable value (e) 13,317 — 13,317 — Registered investment companies – growth fund 18,515 18,515 — — Limited partnerships and limited liability companies 29 — — 29 Westmoreland Coal common stock 819 819 — — Cash and cash equivalents 3,790 3,790 — — $ 236,042 $ 23,124 $ 212,889 $ 29 _________________________ (a) Large-cap blend funds seek to provide long-term growth of capital. They seek to provide investment results that approximate the performance of the Standard & Poor’s Composite 1500 Index. (b) International blends seek to have a diversified portfolio of investments, including fixed-income and equity-focused investments in international markets. (c) Fixed income domestic funds seek to invest in high-quality corporate bonds with over 15 years to maturity. (d) Fixed income long-term bond funds seek to achieve performance results similar to the Barclays Capital U.S. Aggregate Bond Index. This fund invests primarily in corporate and government bonds. (e) The stable value fund seeks to invest in publicly traded and privately placed debt securities and mortgage loans, and to a lesser extent, real estate and other equity investments in order to provide a guaranteed rate of return. The Company’s Level 1 assets include securities held by registered investment companies and its common stock, which are both typically valued using quoted market prices of an active market. Cash and cash equivalents and short-term investments are predominantly held in money market accounts. The Company’s Level 2 assets include pooled separate accounts, which are valued based on the quoted market prices of the securities underlying the investments. The Company’s Level 3 assets include interest in limited partnerships and limited liability companies that invest in privately held companies or privately held real estate assets. These assets are valued by the respective partnership or company manager using market and income approaches. The market approach consists of using comparable market transactions or values. The income approach consists of the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and other risk factors. The inputs considered in the valuations include original transaction prices, recent transactions in the same or similar instruments, changes in financial ratios or cash flows, discounted cash flow valuations, and general economic and market conditions. Contributions The Company contributed $1.2 million in cash to its retirement plans during 2017 and expects to make approximately $2.6 million of contributions in 2018 . Cash Flows The following benefit payments are expected to be paid from its pension plan assets: Pension Benefits (In thousands) 2018 $ 15,220 2019 15,520 2020 15,935 2021 16,170 2022 16,288 Years 2023 - 2027 81,698 The benefits expected to be paid are based on the same assumptions used to measure the Company’s pension benefit obligation at December 31, 2017 and include estimated future employee service. Multi-Employer Pension The Company contributes to the Central Pension Fund (the "Plan") which is a multi-employer defined benefit pension plan for its WECO, WRI and WSC entities pursuant to collective bargaining agreements. The Plan’s Employer Identification Number is 36-6052390. These employers contribute to the Plan based on a negotiated rate per hour worked per participating employee. For the Plan’s year-end dates of January 31, 2017 and 2016 , no single employer contributed more than 5% of total contributions to the Plan. As of the Plan’s year-end date of January 31, 2017 , it had a healthy funding status (i.e. greater than 80% funded). The following table shows required information for each employer contributing to the Plan: WECO WRI WSC Employer plan number 9313 9243 4990 Minimum contributions per hour worked $5.85 - $5.95 $4.03 - $4.39 $3.70 Expiration date of collective bargaining agreements 2/28/2019 5/31/2021 3/31/2022 Employer contributions (in millions): 2017 $ 3.5 $ 1.0 $ 0.1 2016 3.7 0.8 0.1 2015 3.6 1.1 0.1 401(k) Savings Plans The Company sponsors 401(k) saving plans for U.S. employees and provides contributions to employee savings plans at its Canadian operation to assist employees in providing for their future retirement needs. In May 2016, the Company discontinued matching employee 401(k) saving plan contributions with common shares and elected to match with cash contributions going forward. The Company’s expense was $9.9 million , $12.3 million and $10.8 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. During 2017 , the Company’s expense of $9.9 million consisted entirely of cash contributions. During 2016 , the Company’s expense of $12.3 million consisted of $ 10.1 million in cash contributions and $2.2 million in contributions of Company stock to the plans. During 2015 , the Company’s expense of $10.8 million consisted of $7.1 million in cash contributions and $3.7 million in contributions of Company stock to the plans. |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
ASSET RETIREMENT OBLIGATIONS | 11. ASSET RETIREMENT OBLIGATIONS The Company's asset retirement obligations, by operating segment, as of December 31, 2017 are summarized below: Asset Retirement Obligations (In thousands) Coal - U.S. $ 298,973 Coal - Canada 126,847 Coal - WMLP 45,795 Power 2,852 Total $ 474,467 Changes in the Company’s asset retirement obligations were as follows: Years Ended December 31, 2017 2016 (In thousands) Asset retirement obligations, beginning of year (including current portion) $ 484,041 $ 419,764 Accretion 45,132 40,423 Liabilities settled (47,612 ) (32,087 ) Changes due to amount and timing of reclamation (19,242 ) 7,191 Asset retirement obligations acquired 4,260 45,404 Changes due to foreign currency translation 7,888 3,346 Asset retirement obligations, end of year 474,467 484,041 Less current portion (48,429 ) (32,207 ) Asset retirement obligations, less current portion $ 426,038 $ 451,834 Our December 31, 2017 ARO balance of $474.5 million has been discounted using the credit-adjusted, risk-free interest rate in effect in the year the initial costs or subsequent increases to those costs were recorded. These credit-adjusted, risk-free rates range from 7.0% to 38.8% for WCC mines and 6.0% to 75.0% for WMLP mines. New costs or increases to previously estimated costs were discounted at 38.8% and 12.0% for WCC mines and 75.0% and 13.3% for WMLP mines as of December 31, 2017 and 2016 , respectively. The Company or its subsidiaries are responsible for final reclamation costs. However, as of December 31, 2017 , approximately $149.8 million of our ARO liability balances are contractually reimbursable pursuant to various coal supply agreements. This $149.8 million estimate is discounted on the same basis as the related ARO liability and is not recorded on our Consolidated Balance Sheets. While the precise amount of future final reclamation costs cannot be determined with certainty, we estimate that, as of December 31, 2017 , the aggregate undiscounted cost of final ARO was $775.9 million , of which $333.1 million is contractually reimbursable from customers through provisions of certain coal supply agreements. As of December 31, 2017 , the Company holds $77.0 million in reclamation deposits that were contributed by various customers as well as $106.7 million of available-for-sale securities and other short-term highly liquid investments that are restricted for use in reclamation activities, as further described in Note 6 - Restricted Investments, Reclamation Deposits And Bond Collateral to the consolidated financial statements. Additionally, as of December 31, 2017 , the Company had $617.8 million in surety bonds outstanding to secure our asset retirement obligations. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | 12. DERIVATIVE INSTRUMENTS Derivative Assets and Liabilities The Company evaluates all of its financial instruments to determine if such instruments are derivatives, derivatives that qualify for the normal purchase normal sale exception, or contain features that qualify as embedded derivatives. All derivative financial instruments, except for derivatives that qualify for the normal purchase normal sale exception, are recognized on the balance sheet at fair value. Changes in fair value are recognized in earnings if they are not eligible for hedge accounting or in other comprehensive income if they qualify for hedge accounting. During the year ended December 31, 2017, the Company had power purchase contracts at ROVA to manage exposure to power price fluctuations. These contracts covered the period from April 2014 to March 2019 and were not designated as hedging instruments. Accordingly, their fair value was recognized in the Consolidated Balance Sheets, with changes in fair value recognized in the Consolidated Statements of Operations. Fair value was based on a comparison of contracted prices to projected future market prices which are Level 2 inputs based on the hierarchy defined within Note 1 - Summary Of Significant Accounting Policies to the consolidated financial statements. The Company also had in place its power sales contract (the "SEP Agreement") which amended our previous power purchase and operating agreement with our customer. The SEP Agreement covered the period from March 1, 2017 to March 31, 2019 and enabled us to fulfill our obligations under the contract without physically operating the facility. The SEP Agreement met the definition of a derivative and did not qualify for the normal purchases and normal sales scope exception. This contract was not designated as a hedging instrument, therefore, its fair value was recognized in the Consolidated Balance Sheets and changes in fair value recognized in the Consolidated Statements of Operations. As the underlying power deliveries option was significantly in the money, the fair value of this derivative was based on comparing expected contracted cash inflows per the SEP Agreement to expected future outflows based on projected market prices. Effective October 1, 2017, we executed an Assignment and Assumption Agreement with the counterparties to our ROVA power purchase and sale contracts, in which, for a settlement payment of approximately $10.1 million , we were released from our power purchase and sales contracts and the counterparty to the purchase contracts assumed our position in the power sales contract. As a result of this transaction, we are no longer a party to either of these derivative arrangements as of December 31, 2017 and we derecognized the related derivative asset and liability balances which were recognized through gain on derivatives, net of the settlement payment. This transaction additionally resulted in the recognition in Revenues of $14.4 million of previously deferred revenue related to the straight-line recognition of capacity payments from the power sales agreement as these were considered to be an operating lease. Also, in the fourth quarter of 2017 we received proceeds net of settlement payments and normal working capital payments from our posted collateral of $6.2 million and also released $7.5 million in outstanding letters of credit on our Revolver. The fair value of outstanding derivative instruments not designated as hedging instruments on the Consolidated Balance Sheets was as follows (in thousands): Derivative Instruments Balance Sheet Location December 31, 2017 December 31, 2016 Contracts to purchase power Other current liabilities $ — $ 13,382 Contracts to purchase power Other liabilities — 18,384 Contract to sell power Other current assets — 10,240 Contract to sell power Other assets — 9,528 The effect of derivative instruments not designated as hedging instruments, including settlement payments, on the Consolidated Statements of Operations was as follows (in thousands): Years Ended December 31, Derivative Instruments Statements of Operations Location 2017 2016 2015 Contracts to purchase power Derivative (gain) loss $ (21,697 ) $ (4,287 ) $ 5,587 Contract to sell power Derivative (gain) loss 19,768 (19,768 ) — $ (1,929 ) $ (24,055 ) $ 5,587 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 13. FAIR VALUE MEASUREMENTS The carrying amounts of cash equivalents, accounts receivable and accounts payable reflected in the Consolidated Balance Sheets approximate the fair value of these instruments due to the short duration to their maturities. Long-term debt fair value estimates are based on observed prices for securities with an active trading market when available (Level 2) and otherwise using discount rate estimates based on interest rates as of December 31, 2017 (Level 3). The estimated fair value of the Company’s debt with fixed and variable interest rates are as follows: Fixed Interest Rate Variable Interest Rate Carrying Value Fair Value Carrying Value Fair Value (In thousands) (In thousands) December 31, 2017 $ 375,789 $ 195,189 $ 672,618 $ 351,856 December 31, 2016 409,362 395,274 699,704 658,557 The table below sets forth, by level, the Company’s financial assets and liabilities that are accounted for at fair value on a recurring basis: December 31, 2017 Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Fair Value Level 1 Level 2 (In thousands) Assets: Available-for-sale investments, included in Restricted investments, reclamation deposits and bond collateral $ 148,535 $ 148,535 $ — $ 148,535 $ 148,535 $ — Liabilities: Warrants issued by WMLP, included in Other liabilities $ 296 $ — $ 296 $ 296 $ — $ 296 December 31, 2016 Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Fair Value Level 1 Level 2 (In thousands) Assets: Contract to sell power, included in Other current assets and Other assets $ 19,768 $ — $ 19,768 Available-for-sale investments, included in Restricted investments, reclamation deposits and bond collateral 147,269 147,269 — $ 167,037 $ 147,269 $ 19,768 Liabilities: Contracts to purchase power, included in Other current liabilities and Other liabilities $ 31,766 $ — $ 31,766 Warrants issued by WMLP, included in Other liabilities 613 — 613 $ 32,379 $ — $ 32,379 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | 14. SHARE-BASED COMPENSATION As of December 31, 2017 , the Company had restricted stock units, cash units and stock options outstanding from two stock incentive plans. The Company grants employees and non-employee directors restricted stock units from the Amended and Restated 2007 and 2014 Equity Incentive Plans. As of December 31, 2017 , there are no remaining shares available for issuance under the Amended and Restated 2007 Equity Incentive Plan and 1,205,098 remaining shares available for issuance under the Amended and Restated 2014 Equity Incentive Plan. The Company’s long-term incentive compensation plans allow certain employees to earn cash units and/or restricted stock units. A portion of the grants require only a service condition and vest ratably over three years from the date of grant. A portion of the grants require both a service and market condition in which the units vest subsequent to the end of a three -year performance cycle based on total shareholder return compared to two peer groups. A portion of the grants require both a service and performance condition in which units vest subsequent to the end of a three -year performance cycle based on actual free cash flows compared to budgeted free cash flows over the performance period. The majority of the grants are restricted stock units which are settled in common stock. In addition, the Company grants time-vested restricted stock units annually to the Board of Directors which are ultimately settled in common stock upon vesting. Compensation cost arising from stock-settled share-based arrangements is shown in the following table: Years Ended December 31, 2017 2016 2015 (In thousands) Recognition of fair value of restricted stock units, stock options and SARs over vesting period $ 3,200 $ 5,392 $ 4,019 Contributions of stock to the Company’s 401(k) plan — 2,192 3,729 Total share-based compensation expense $ 3,200 $ 7,584 $ 7,748 Restricted Stock Units In June 2017, the Company granted 611,097 restricted stock units to employees and 102,141 restricted stock units to the Board of Directors under the Amended and Restated 2014 Equity Incentive Plan. Of the 713,238 restricted stock units granted, 338,968 vest based only on a service condition, 187,135 vest based on both a service and market condition, and 187,135 vest based on both a service and performance condition. These units will vest and pay out at the end of their respective vesting periods if all underlying conditions are met. The Company’s management believes it is probable that the target performance condition will be met. The fair value of each unit containing both a service and market-based condition was determined through the use of the Monte Carlo simulation method. The fair value of each unit containing both a service and performance-based condition is the market price of one common share on the date of grant. Compensation expense is based on the fair value on the grant date and is recorded ratably over the vesting period. Changes in our restricted stock for the year ended December 31, 2017 were as follows: Units Weighted Average Grant-Date Fair Value Unamortized Compensation Expense (In thousands) ( 1) Non-vested at December 31, 2016 700,500 $ 15.91 Granted 713,238 3.94 Vested and issued (291,140 ) 17.20 Forfeited (347,647 ) 9.62 Non-vested at December 31, 2017 774,951 $ 8.31 $ 2,055 ____________________ (1) Expected to be recognized over the next three years . The following table summarizes the assumptions used to measure the fair value of the annual grant of units granted with a market condition indexed to the achievement of specified levels of total shareholder return: Assumptions 2017 Risk-free rate of return 1.41 % Expected volatility 71.20 % Expected term (in years) 3.0 Expected dividend yield — Additional information related to restricted stock units: Years Ended December 31: Weighted Average Grant-Date Fair Value Total Grant-Date Fair Value of Restricted Stock Units that Vested (In thousands) 2017 $ 3.94 $ 5,007 2016 8.85 2,485 2015 28.26 2,884 Cash Units In June 2017, the Company granted 375,658 cash units to employees. Of the 375,658 cash units granted, 157,880 vest based only on a service condition, 108,889 vest based on both a service and market condition, and 108,889 vest based on both a service and performance condition. These units will vest and pay out at the end of their respective vesting periods if all underlying conditions are met. The Company’s management believes it is probable that the target performance condition will be met. The fair value of each unit containing both a service and market-based condition was determined through the use of the Monte Carlo simulation method. The fair value of each unit containing both a service and performance-based condition is the market price of one common share on the date of grant. Compensation expense is based on the fair value on the grant date and is recorded ratably over the vesting period. The compensation expense related to the cash units was $0.3 million and $0.2 million for the years ended December 31, 2017 and 2016 , respectively, and is recorded in Selling and administrative on the Consolidated Statements of Operations. Because the cash units are settled in cash, they are accounted for as a liability award. The accrued liability related to the cash units was $0.1 million and $0.4 million as of December 31, 2017 and 2016 , respectively, and is recorded in Trade and other accrued liabilities on the Consolidated Balance Sheets. |
EARNINGS PER SHARE (Notes)
EARNINGS PER SHARE (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 15. EARNINGS PER SHARE Basic earnings (loss) per share is computed by dividing the net income (loss) applicable to common shareholders by the weighted average number of shares of common stock outstanding during each period. Net income (loss) applicable to common shareholders includes the adjustment for net income or loss attributable to noncontrolling interest. Diluted earnings per share is computed by including the dilutive effect of common stock that would be issued assuming conversion or exercise of outstanding stock options, stock appreciation rights ("SARs") and restricted stock units. No such items were included in the computations of diluted loss per share for the years ended December 31, 2017 , 2016 or 2015 because the Company incurred a net loss applicable to common shareholders in those periods and the effect of inclusion would have been anti-dilutive. The table below shows the number of shares that were excluded from the calculation of diluted loss per share because their inclusion would be anti-dilutive to the calculation: Years Ended December 31, 2017 2016 2015 (In thousands) Stock options, SARs and restricted stock units 780 810 464 Total shares excluded from diluted shares calculation 780 810 464 |
STOCKHOLDERS' EQUITY AND ACCUMU
STOCKHOLDERS' EQUITY AND ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY AND ACCUMULATED OTHER COMPREHENSIVE LOSS | 16. STOCKHOLDERS’ EQUITY AND ACCUMULATED OTHER COMPREHENSIVE LOSS Preferred and Common Stock The Company had one class of capital stock outstanding at December 31, 2017 and 2016 ; common stock, par value $0.01 per share. During the first quarter of 2015, all of the Company’s Series A Convertible Exchangeable Preferred Stock was converted or redeemed, consisting of 88,494 shares of preferred stock being converted into 604,557 shares of common stock and 3,175 shares of preferred stock were redeemed under a mandatory redemption for $0.3 million . The Company paid less than $0.1 million of preferred stock dividends for the year ended December 31, 2015. Accumulated Other Comprehensive Loss The following is a summary of Accumulated other comprehensive loss : Pension Postretirement Medical Benefits Available-for-Sale Securities Foreign Currency Translation Adjustment Tax Effect of Other Comprehensive Income Gains Accumulated Other Comprehensive Loss (In thousands) December 31, 2014 $ (35,540 ) $ (39,716 ) $ 413 $ (18,190 ) $ (34,974 ) $ (128,007 ) 2015 activity 2,046 8,630 (1,738 ) (51,866 ) (3,335 ) (46,263 ) December 31, 2015 (33,494 ) (31,086 ) (1,325 ) (70,056 ) (38,309 ) (174,270 ) 2016 activity 7,371 (20,807 ) (349 ) 8,983 — (4,802 ) December 31, 2016 (26,123 ) (51,893 ) (1,674 ) (61,073 ) (38,309 ) (179,072 ) 2017 activity 6,202 (3,230 ) 1,050 16,562 (2,037 ) 18,547 December 31, 2017 $ (19,921 ) $ (55,123 ) $ (624 ) $ (44,511 ) $ (40,346 ) $ (160,525 ) Changes in Accumulated Other Comprehensive Loss The following table reflects the changes in Accumulated other comprehensive loss by component: Pension Postretirement Medical Benefits Available-for-Sale Securities Foreign Currency Translation Adjustment Tax Effect of Other Comprehensive Income Gains Accumulated Other Comprehensive Loss (In thousands) December 31, 2016 $ (26,123 ) $ (51,893 ) $ (1,674 ) $ (61,073 ) $ (38,309 ) $ (179,072 ) Other comprehensive income (loss) before reclassifications 3,376 (6,893 ) 1,389 16,562 (2,037 ) 12,397 Amounts reclassified from accumulated other comprehensive loss 2,826 3,663 (339 ) — — 6,150 December 31, 2017 $ (19,921 ) $ (55,123 ) $ (624 ) $ (44,511 ) $ (40,346 ) $ (160,525 ) The following table reflects the reclassifications out of Accumulated other comprehensive loss for the year ended December 31, 2017 (in thousands): Details About Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive Loss (1) Affected Line Item in the Statement Where Net Loss is Presented Available-for-sale securities: Realized gains and losses on available-for-sale securities $ (339 ) Other (loss) income $ (339 ) Total Amortization of defined benefit pension items: Prior service costs (2) $ 8 Actuarial losses (2) 2,818 $ 2,826 Total Amortization of postretirement medical items: Prior service costs (3) $ (635 ) Actuarial losses (3) 4,298 $ 3,663 Total ____________________ (1) Amounts in parenthesis indicate debits to income/loss. (2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. (See Note 10 - Pension And Other Saving Plans to the consolidated financial statements for additional details). (3) These accumulated other comprehensive income components are included in the computation of net periodic postretirement medical cost. (See Note 9 - Postretirement Medical Benefits to the consolidated financial statements for additional details). Restricted Net Assets WCC has obligations to pay pension and postretirement medical benefits, to fund corporate expenditures, and to pay interest on the 8.75% Notes and the Term Loan . However, WCC conducts no operations, has no source of revenue and is fully dependent on distributions from its subsidiaries to pay its costs. Due to the Master Limited Partnership structure and the WMLP Term Loan , at December 31, 2017 , WMLP is limited in its ability to distribute funds to WCC. The amount of cash WMLP can distribute on its units principally depends upon the amount of cash it generates from its operations, which will fluctuate from quarter to quarter, and certain restrictions on distributions included in the WMLP Term Loan further described in Note 8 - Debt And Lines Of Credit to the consolidated financial statements. The WMLP Term Loan contains customary financial and other covenants and it permits distributions to its unitholders under specified circumstances. Borrowings under the WMLP Term Loan are secured by substantially all of its physical assets. At December 31, 2017 , WMLP was in a net liability position. |
INCOME TAX
INCOME TAX | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | 17. INCOME TAX We are subject to taxation in the United States and Canada as well as various state jurisdictions. As of December 31, 2017 , tax years for 2014, 2015, and 2016 are subject to examination by the tax authorities. With few exceptions, as of December 31, 2017 , we were no longer subject to U.S. federal, state, local or foreign examinations by tax authorities for tax years before 2014. The Company’s income (loss) before income taxes is as follows: Years Ended December 31, 2017 2016 2015 (In thousands) United States $ (73,123 ) $ (100,290 ) $ (264,146 ) Foreign (5,902 ) 23,359 25,161 Loss before income taxes $ (79,025 ) $ (76,931 ) $ (238,985 ) Income tax expense (benefit) reflected on the Consolidated Statements of Operations consisted of: Years Ended December 31, 2017 2016 2015 (In thousands) Current: Federal $ — $ (2,924 ) $ — State (11 ) 166 12 Foreign 30 841 1,441 19 (1,917 ) 1,453 Deferred: Federal (5,896 ) (41,054 ) (3,295 ) State — (5,032 ) (330 ) Foreign (13 ) (56 ) (17,718 ) (5,909 ) (46,142 ) (21,343 ) Income tax benefit $ (5,890 ) $ (48,059 ) $ (19,890 ) The effective tax rate differs from the U.S. federal statutory rate as follows: Years Ended December 31, 2017 2016 2015 (In thousands) Computed income tax benefit at statutory rate $ (27,712 ) $ (28,833 ) $ (85,757 ) Tax depletion in excess of basis (9,304 ) (10,794 ) (5,317 ) Intercompany interest (5,105 ) (6,651 ) (6,488 ) State and foreign income taxes, net (2,809 ) (4,632 ) (8,897 ) Indian coal tax credits (“ICTC”) — (9,923 ) (13,756 ) Change in state and federal tax rates 162,048 (7,548 ) (5,238 ) Change in Canadian rate 435 — (3,083 ) Foreign income inclusion 15,310 8,093 486 Alternative minimum tax refund (4,145 ) (2,923 ) — Kemmerer deferred tax asset removal — — (13,238 ) Change in valuation allowance for net deferred tax assets (136,446 ) 59,536 149,987 Release of valuation allowance arising from amalgamation — — (32,441 ) San Juan purchase accounting release of valuation allowance — (46,086 ) — Other, net 1,838 1,702 3,852 Income tax benefit $ (5,890 ) $ (48,059 ) $ (19,890 ) The $136.4 million decrease in valuation allowance for the year ended December 31, 2017 was primarily driven by the effects of tax reform (see "The Tax Cuts and Jobs Act" below), through a rate reduction from 35% to 21% for which the Company revalued its deferred tax assets and liabilities. Additionally, the Company released $4.1 million in valuation allowance for its Alternative Minimum Tax ("AMT") tax credit asset, which will be refundable with the filing of the 2018 through 2021 federal income tax returns. Other adjustments to the valuation allowance were from the tax effect of the change in current year temporary items, credits, net operating losses and postretirement medical benefit and pension obligations. During 2016, as part of the San Juan Acquisition, the Company acquired $46.1 million in deferred tax liabilities. Changes in the acquiring company’s deferred tax assets or liabilities subsequent to a business combination are required to be recorded in income during the period in which the transaction occurs. Accordingly, the $46.1 million decrease in the Company’s net deferred tax assets resulted in the release of a corresponding $46.1 million valuation allowance and recognition of a tax benefit as of December 31, 2016. During 2015 the Company completed an amalgamation of two of our Canadian subsidiaries as part of a tax planning strategy. The amalgamation resulted in a decrease in the Company’s Canadian net deferred tax asset, necessitating the $32.4 million release of a portion of the Company’s valuation allowance. The $13.2 million Kemmerer deferred tax asset removal for the year ended December 31, 2015 was due to the Company dropping the Kemmerer mine and assets into the Company’s master limited partnership on August 1, 2015. The tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities are presented below: December 31, 2017 December 31, 2016 (In thousands) Deferred tax assets: Net operating losses $ 190,687 $ 249,687 Credit carryforwards 65,114 69,170 Accrued compensation and benefits 2,993 7,399 Asset retirement obligations 111,162 156,550 Postretirement medical benefit and pension obligations 93,111 143,374 Deferred revenue 988 11,110 Black lung accrual 5,343 8,299 Unrealized gain/(loss) on derivatives — 4,774 Canadian resource pool 4,425 4,174 Lease obligations 3,707 8,415 Other 11,286 9,668 Total deferred tax assets 488,816 672,620 Valuation allowance (398,627 ) (563,338 ) Net deferred tax assets 90,189 109,282 Deferred tax liabilities: Property, plant and equipment, differences due to depreciation and amortization $ (62,312 ) $ (83,411 ) Investment in partnerships (22,850 ) (13,365 ) Finance lease receivable — (7,362 ) Other (5,027 ) (5,144 ) Total deferred tax liabilities (90,189 ) (109,282 ) Net deferred tax asset (liability) $ — $ — As of December 31, 2017 , the Company had significant deferred tax assets. The deferred tax assets include U.S. federal, state and foreign NOLs, ICTC carryforwards, and net deductible reversing temporary differences related to on-going differences between book and taxable income. The Company determined that since its net deductible temporary differences will not reverse for the foreseeable future, and it is unable to forecast regular taxable income when they do reverse, a full valuation allowance is required for these deferred tax assets. The net valuation allowance decreased by $136.4 million during the year ended December 31, 2017 . As of December 31, 2017 , the Company has available U.S. federal net operating loss carryforwards to reduce future regular taxable income of $676.2 million , expiring between 2019 and 2037. The Company has ICTC carryforwards of $64.4 million available to reduce future income taxes, which expire between 2027 and 2037. Currently the Company has an excess tax over book basis in its investment in Canadian subsidiaries and the Company does not expect this deferred tax asset to reverse in the foreseeable future. Accordingly, there has been no recognition of any deferred tax asset on the outside basis of investments in subsidiaries. Foreign Income Taxes As of December 31, 2017 , the Company has available foreign net operating loss carryforwards to reduce future regular taxable income of approximately $30.2 million expiring in 2034. Uncertain tax positions The Company maintained $4.0 million in uncertain tax positions as of December 31, 2017 and 2016 . The Company recognizes interest and penalties related to income tax matters in income tax expense, for which none was recorded for the years ended December 31, 2017 , 2016 or 2015 . No uncertain tax positions are expected to change in the next 12 months. Tax Benefits Preservation Plan As of December 31, 2017 , WCC had a U.S. federal net operating loss carryforward of $676.2 million , together with certain other tax attributes. WCC's ability to utilize these Deferred Tax Assets to offset future taxable income may be significantly limited if WCC experiences an "ownership change," as defined in Section 382 of the Code. In general, an ownership change will occur if there is a cumulative change in WCC's ownership by "5% shareholders" (as defined in the Code) that exceeds 50 percentage points over a rolling three-year period. On September 2, 2017, the board of directors of the Company adopted the Rights Plan. The purpose of the Rights Plan is to minimize the likelihood of an ownership change occurring for Section 382 purposes and thus protect the Company's ability to utilize its Deferred Tax Assets to offset future income. The Rights Plan is intended to act as a deterrent to any person or group acquiring “beneficial ownership” of 4.75% or more of the outstanding shares of the Company's common stock, par value $0.01 per share without the approval of the board of directors. The description and terms of the Rights (as defined below) applicable to the Rights Plan are set forth in the Rights Agreement, by and between WCC and Broadridge Corporate Issuer Solutions, Inc., as Rights Agent. As part of the Rights Agreement, the board or directors authorized and declared a dividend distribution of one right (a “Right”) for each outstanding share of common stock to stockholders of record at the close of business on September 18, 2017. Each Right entitles the holder to purchase from WCC a unit consisting of one ten thousandth of a share (a “Unit”) of Series A Participating Preferred Stock, par value $0.01 per share, of WCC at a purchase price of $10.00 per Unit, subject to adjustment. Until a Right is exercised, the holder thereof, as such, will have no separate rights as a stockholder of WCC, including the right to vote or to receive dividends in respect of Rights. The Tax Cuts and Jobs Act In December 2017, the Tax Cuts and Jobs Act (the "Tax Act”) was enacted. The Tax Act includes many changes to existing U.S. tax laws that impact the Company, most notably a reduction of the U.S. corporate income tax rate from 35% to 21% for tax years beginning after December 31, 2017. The Tax Act also provides for a one-time transition tax on certain foreign earnings and the acceleration of depreciation for certain assets placed into service after September 27, 2017, as well as prospective changes beginning in 2018, including repeal of the domestic manufacturing deduction, additional limitations on executive compensation and limitations on the deductibility of interest. The Tax Act also repeals AMT which provides that any unused AMT credits will be refunded upon filing of the tax returns for tax years 2018 through 2021. As a result, the Company has released $4.1 million in valuation allowance for the year ended December 31, 2017 and has recorded a corresponding receivable on the December 31, 2017 Consolidated Balance Sheet. The changes resulting from the Tax Act that we believe have the most significant impact on the Company’s federal income taxes are as follows: Reduction of the U.S. Corporate Income Tax Rate The Company measures deferred tax assets and liabilities using enacted tax rates that will apply in the years in which the temporary differences are expected to be recovered or paid. Accordingly, the Company’s deferred tax assets and liabilities were revalued to reflect the reduction in the U.S. corporate income tax rate, resulting in a $162.0 million decrease in net deferred tax assets and a corresponding decrease in the Company's valuation allowance as of December 31, 2017. Transition Tax on Foreign Earnings The Company included Subpart F income of $39.0 million for the year ended December 31, 2017 related to the one-time transition tax on certain foreign earnings. This amount did not reduce any tax assets, but decreased the current year loss. The determination of the transition tax requires further analysis regarding the amount and composition of the Company’s historical foreign earnings, which is expected to be completed upon filing of the 2017 tax return. Staff Accounting Bulletin No. 118 On December 22, 2017, the SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. The Company has recognized the provisional tax impacts related to deemed repatriated earnings and the revaluation of deferred tax assets and liabilities and included these amounts within this footnote for the year ended December 31, 2017. The ultimate impact may differ from these provisional amounts, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions the Company has made, additional regulatory guidance that may be issued, and actions the Company may take as a result of the Tax Act. The accounting is expected to be complete prior to the filing of the 2017 U.S. corporate income tax return. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 18. COMMITMENTS AND CONTINGENCIES Leases and other Commitments The following shows the gross value and accumulated depreciation of property, plant, equipment and mine development assets under capital leases related primarily to the leasing of mining equipment as follows: December 31, 2017 December 31, 2016 (In thousands) Gross value $ 75,446 $ 74,335 Accumulated depreciation 51,026 32,335 Future minimum capital and operating lease payments as of December 31, 2017 are as follows: Capital Leases Operating Leases (In thousands) 2018 $ 18,337 $ 8,705 2019 9,183 6,287 2020 4,325 1,648 2021 1,832 1,506 2022 2,040 1,534 Thereafter — 3,994 Total minimum lease payments 35,717 $ 23,674 Less imputed interest (2,604 ) Present value of minimum capital lease payments $ 33,113 Rental expense under operating leases during the years ended December 31, 2017 , 2016 and 2015 totaled $15.1 million , $18.2 million and $25.2 million , respectively. The Company leases certain of its coal reserves from third parties and pays royalties based on either a per ton rate or as a percentage of revenues received. Royalties charged to expense under all such lease agreements amounted to $86.5 million , $99.2 million and $96.7 million in the years ended December 31, 2017 , 2016 and 2015 , respectively. As of December 31, 2017 , the Company had fuel supply contracts outstanding with a minimum purchase requirement of 9.0 million gallons of diesel fuel for 2018 . These contracts qualify for the normal purchase normal sale exception under hedge accounting. Litigation Indemnified Canadian Governmental Charges - Obed Mine Containment Pond Breach On October 31, 2013, at a time when the mine was still owned by Sherritt International Corporation (“Sherritt”), a breach of an on-site water containment pond occurred at the Obed Mountain mine near Hinton, Alberta. The water release consisted of approximately 670,000 cubic meters of processed water containing water mixed with naturally occurring materials, mainly clay, mud, shale and coal fines. The release resulted in investigations by various regulatory authorities. The government of Alberta issued an environmental protection order in relation to the release on November 19, 2013 against Sherritt and Westmoreland’s Canadian subsidiary, and filed charges under provincial legislation on October 16, 2015. The federal government of Canada filed charges under federal legislation on January 13, 2016. The provincial and federal charges have been resolved through plea arrangements, and the related fines and penalties have been paid. Certain related remediation work remains ongoing. Pursuant to a Cooperation Agreement entered into between Sherritt and Westmoreland on April 28, 2014, Sherritt will fully indemnify us for the actual cost of remediation and work required to comply with all regulatory orders. In addition, pursuant to the Arrangement Agreement, Sherritt fully indemnified us, with no deductibles or minimums, for the fees, fines and judgments resulting from the water release. Due to our contractual indemnifications, we do not believe any of the results of this Obed matter will have a material adverse impact on our consolidated financial statements. A loss contingency for the outstanding portion of this matter is probable and reasonably estimable. However, due to the full contractual indemnification, the probability of the Company having a net material liability arising out of this matter is remote. As of December 31, 2017 , the Company has recorded $8.0 million in Other current liabilities for the estimated costs of remediation work and a corresponding amount in Receivables - Other to reflect the indemnification by the prior owner. WildEarth Guardians Regulatory Challenge to OSM’s Approval Process for Mine Plans SJCC is subject to certain litigation related to its operations, including an Action filed by WEG on February 27, 2013, in the United States District Court for the District of Colorado seeking review of the Office of Surface Mining (“OSM”) decisions and decisions of the Assistant Secretary of the Interior's approval of mine plans and amendments concerning seven separate coal mines in Colorado, Montana, New Mexico and Wyoming. Among the decisions being challenged is the January 2008 approval of the mining plan modification for the San Juan mine. WEG alleges that in approving the plans or plan amendments, OSM engaged in a “pattern and practice of failing to comply with” the requirements of the National Environmental Policy Act (“NEPA”) by failing to “ensure that the public was appropriately involved in the adoption of” the mine plans and by failing to “take a hard look at a number of potentially significant environmental impacts.” On February 7, 2014, the case was transferred to the U.S. District Court for the District of New Mexico. On August 31, 2016 Judge Robert Junell issued a decision that (1) granted OSM’s motion for a voluntary remand back to the agency to conduct the required NEPA process as it relates to WEG’s claimed deficiencies, and (2) mandated that OSM and SJCC conduct an EIS to address the alleged deficiencies of the original NEPA process within a three year time frame at which time automatic vacatur of the mining permit would occur absent a showing of good cause by the parties. OSM selected a contractor to perform the required NEPA related services in support of the EIS in early December 2016. Currently, SJCC is working with all interested parties to maintain the three-year schedule to complete the requisite NEPA analysis. Pursuant to the judicial decision, SJCC is free to continue operating under the existing permit during the three-year timeframe that the EIS is being conducted. Ohio Environmental Protection Agency Challenge In May of 2016 the Ohio EPA (“OEPA”) notified Oxford Mining Company, LLC (“Oxford”), in writing that OEPA believed various of the Oxford’s previously remediated mines have failed to meet the performance goals set forth in the approved mitigation plans. OEPA’s letters provided that Oxford either (a) provide evidence that OEPA’s listed mitigation deficiencies are actually meeting the performance standards, (b) request an extension of up to two years to complete the outstanding mitigation obligations, or (c) pursue off-site mitigation credit such as purchasing mitigation credits from third parties. None of the written correspondence specified monetary damages or cost estimates to complete the alleged mitigation deficiencies. There is currently an open dialogue whereby comparative evaluations are being discussed. Presently, our position is that our exposure is inconsequential based on internally conducted technical, environmental and legal evaluations. Other Legal Proceedings We are party to other legal proceedings arising in the ordinary course of business and may become involved in additional proceedings from time to time. We believe that there are no other legal proceedings pending that are likely to have a material adverse effect on our consolidated financial condition, results of operations or cash flows. Nevertheless, we cannot predict the impact of future developments affecting our claims and lawsuits, and any resolution of a claim or lawsuit or an accrual within a particular fiscal period may materially and adversely impact our results of operations for that period. In addition to claims and lawsuits against us, our operations, permits, and other industry regulatory processes and approvals, including those applicable to the utilities and transportation industries, may also continue to be subject to legal challenges that could materially and adversely impact our mining operations, results and liquidity. These regulatory challenges may seek to vacate prior regulatory decisions and authorizations that are legally required for some or all of our current or planned mining activities. If we are required to reduce or modify our mining activities as a result of these challenges, the impact could have a material adverse effect on our shipments, financial results and liquidity, and could result in claims from third parties if we are unable to meet our commitments under pre-existing commercial agreements as a result of any such required reductions or modifications to our mining activities. |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT INFORMATION | 19. BUSINESS SEGMENT INFORMATION Segment information is based on a management approach, which requires segmentation based upon the Company’s internal organization and reporting. The Company’s operations are classified into six reporting segments: Coal - U.S., Coal - Canada, Coal - WMLP, Power, Heritage, and Corporate. The Coal - U.S. reporting segment includes the operations of coal mines located in Montana, North Dakota, Ohio, Texas and New Mexico. The Coal - Canada reporting segment includes the operations of coal mines located in Alberta and Saskatchewan. The Coal - WMLP reporting segment includes the operations of Westmoreland Resource Partners, LP, a publicly-traded coal master limited partnership with mines in Ohio and the Kemmerer mine in Wyoming. The Kemmerer Drop was completed on August 1, 2015 and, accordingly, to enable comparability across all years, all segment disclosures have been adjusted to remove financial information for Kemmerer from the Coal - U.S. segment and present it in the Coal - WMLP segment for the year ended December 31, 2015. The Power segment includes our ROVA operations located in North Carolina, which the Company sold during the fourth quarter of 2017. The Heritage segment costs primarily include benefits the Company provides to former mining operation employees as well as other administrative costs associated with providing those benefits and cost containment efforts. The Corporate segment primarily consists of corporate administrative expenses and includes eliminations for intersegment revenues and cost of sales. Summarized financial information by segment is as follows: Coal - U.S. (3) Coal - Canada Coal - WMLP (1) Power (2) Heritage Corporate (1) Consolidated (In thousands) December 31, 2017 Revenues $ 573,697 $ 438,273 $ 315,605 $ 77,189 $ — $ (20,196 ) $ 1,384,568 Restructuring charges — — — — — — — Depreciation, depletion, and amortization 59,764 14,292 45,466 1,650 — (118 ) 121,054 Operating income (loss) 40,063 8,898 9,822 15,274 (14,242 ) (20,603 ) 39,212 Total assets 535,341 470,744 347,403 — 16,767 18,844 1,389,099 Cash paid for capital expenditures 12,609 13,961 8,446 — — — 35,016 December 31, 2016 Revenues $ 651,713 $ 415,593 $ 349,341 $ 86,578 $ — $ (25,265 ) $ 1,477,960 Restructuring charges — — — — — — — Depreciation, depletion, and amortization 108,326 26,893 50,217 — — (169 ) 185,267 Operating (loss) income (8,063 ) 39,104 8,873 28,535 (13,409 ) (16,910 ) 38,130 Total assets 612,588 493,356 386,862 59,273 16,298 16,532 1,584,909 Cash paid for capital expenditures 14,775 19,791 11,566 — — — 46,132 December 31, 2015 Revenues $ 552,745 $ 430,416 $ 388,605 $ 84,423 $ — $ (36,671 ) $ 1,419,518 Restructuring charges — — 656 — — — 656 Depreciation, depletion, and amortization 45,650 30,323 54,504 9,908 — (57 ) 140,328 Operating income (loss) 2,213 36,830 (5,211 ) (146,868 ) (15,596 ) (17,064 ) (145,696 ) Total assets 442,143 506,058 412,895 39,762 16,146 (1,025 ) 1,415,979 Cash paid for capital expenditures 25,193 27,658 27,296 1,408 — (3,634 ) 77,921 ____________________ (1) The Coal - WMLP segment recorded revenues of $20.2 million , $25.3 million and $36.7 million for intersegment revenues to the Coal - U.S. segment for the years ended December 31, 2017 , 2016 and 2015 , respectively. Eliminations for intersegment revenues and cost of sales are presented within the Corporate segment. (2) Operating income (loss) for the Coal - WMLP segment for 2017 includes an impairment charge of $5.9 million . Operating income (loss) for the Power segment for 2015 includes an impairment charge of $133.1 million . (3) The San Juan Acquisition was completed on January 31, 2016. For the years ended December 31, 2017 and 2016, revenues for San Juan were $206.1 million and $184.4 million , respectively, and operating income was $18.3 million and $24.5 million , respectively. The Company derives its revenues from a few key customers. The customers from which 10% or more of consolidated revenues have been derived and the percentage of consolidated revenues from those customers is summarized as follows: Years Ended December 31, 2017 2016 2015 (In thousands) Customer A - Coal - U.S. and WMLP $ 134,791 $ 207,290 $ 234,840 Customer B - Coal - U.S. 206,148 184,364 — Customer C - Coal - Canada 191,363 174,659 180,660 Customer D - Coal - U.S. 139,063 146,503 153,585 Percentage of consolidated revenues 48 % 48 % 40 % |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | 20. QUARTERLY FINANCIAL DATA (UNAUDITED) Summarized quarterly financial data is as follows: Three Months Ended March 31 June 30 September 30 December 31 (In thousands; except per share data) 2017: Revenues $ 339,737 $ 323,025 $ 358,011 $ 363,795 Operating (loss) income (11,088 ) (21,067 ) 14,255 57,112 Net (loss) income applicable to common shareholders (36,801 ) (50,382 ) (19,222 ) 35,065 Basic and diluted (loss) income per common share (1.98 ) (2.69 ) (1.03 ) 1.87 2016: Revenues $ 355,854 $ 357,597 $ 371,772 $ 392,737 Operating income (loss) 7,619 (883 ) 8,753 22,641 Net income (loss) applicable to common shareholders 27,407 (28,589 ) (18,368 ) (7,551 ) Basic and diluted income (loss) per common share 1.50 (1.54 ) (0.99 ) (0.41 ) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 21. SUBSEQUENT EVENTS The Company has evaluated subsequent events in accordance with ASC 855, Subsequent Events , through the filing date of this Annual Report on Form 10-K, and determined that no events have occurred that have not been disclosed elsewhere in the notes to the consolidated financial statements that would require adjustments to disclosures in the consolidated financial statements. |
Schedule I (Notes)
Schedule I (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule I | WESTMORELAND COAL COMPANY SCHEDULE I — CONDENSED BALANCE SHEETS (Parent Company Information — See Notes to Consolidated Financial Statements) December 31, 2017 December 31, 2016 Assets (In thousands) Current assets: Cash and cash equivalents $ 6,942 $ 10,256 Receivables: Intercompany receivable 30,634 40,797 Other 2,150 5,422 Total receivables 32,784 46,219 Other current assets 1,051 1,235 Total current assets 40,777 57,710 Property, plant and equipment: Plant and equipment 2,558 1,949 Less accumulated depreciation and amortization 1,326 1,135 Net property, plant and equipment 1,232 814 Restricted investments 16,497 16,004 Investment in subsidiaries 64,556 31,158 Intercompany receivable 156,204 226,225 Other assets 5,710 2,037 Total Assets $ 284,976 $ 333,948 Liabilities and Shareholders’ Deficit Current liabilities: Current installments of long-term debt $ 651,142 $ 3,288 Accounts payable and accrued expenses: Trade and other accrued liabilities 17,536 16,714 Interest payable 15,541 15,469 Postretirement medical benefits 12,275 12,573 Other current liabilities 1,035 1,386 Total current liabilities 697,529 49,430 Long-term debt, less current installments 500 646,885 Postretirement medical benefits, less current portion 257,559 251,093 Pension and SERP obligations, less current portion 39,209 40,639 Intercompany payable 9,820 11,915 Other liabilities 23,807 24,103 Total liabilities 1,028,424 1,024,065 Shareholders’ deficit: Common stock 188 186 Other paid-in capital 250,494 248,143 Accumulated other comprehensive loss (160,525 ) (179,072 ) Accumulated deficit (829,107 ) (757,367 ) Total shareholders’ deficit (738,950 ) (688,110 ) Noncontrolling interests in consolidated subsidiaries (4,498 ) (2,007 ) Total deficit (743,448 ) (690,117 ) Total Liabilities and Shareholders' Deficit $ 284,976 $ 333,948 WESTMORELAND COAL COMPANY SCHEDULE I — CONDENSED STATEMENTS OF OPERATIONS (Parent Company Information — See Notes to Consolidated Financial Statements) Years Ended December 31, 2017 2016 2015 (In thousands) Revenues $ — $ — $ — Cost, expenses and other: Cost of sales (2,025 ) (2,740 ) (2,765 ) Depreciation, depletion and amortization 466 325 195 Selling and administrative 30,589 22,878 19,891 Heritage health benefit expenses 11,782 11,003 13,811 Restructuring charges — — — Other operating loss 15 148 — 40,827 31,614 31,132 Operating loss (40,827 ) (31,614 ) (31,132 ) Other (expense) income: Interest expense (61,446 ) (60,765 ) (64,793 ) Loss on extinguishment of debt — — (5,385 ) Interest income 13,567 17,161 17,197 Gain (loss) on foreign exchange 9 9 (26 ) Other loss (196 ) (49 ) (6 ) (48,066 ) (43,644 ) (53,013 ) Loss before income taxes and loss of consolidated subsidiaries (88,893 ) (75,258 ) (84,145 ) Equity in loss of subsidiaries 9,885 (2,268 ) (138,575 ) Loss before income taxes (79,008 ) (77,526 ) (222,720 ) Income tax benefit (5,873 ) (48,654 ) (3,625 ) Net loss (73,135 ) (28,872 ) (219,095 ) Less net loss attributable to noncontrolling interest (1,795 ) (1,771 ) (5,453 ) Net loss attributable to the Parent company $ (71,340 ) $ (27,101 ) $ (213,642 ) WESTMORELAND COAL COMPANY SCHEDULE I — STATEMENTS OF COMPREHENSIVE LOSS (Parent Company Information — See Notes to Consolidated Financial Statements) Years Ended December 31, 2017 2016 2015 (In thousands) Net loss $ (73,135 ) $ (28,872 ) $ (219,095 ) Other comprehensive income (loss) Pension and other postretirement plans: Amortization of accumulated actuarial gains and prior service costs, pension 2,826 4,361 1,886 Adjustments to accumulated actuarial gains and transition obligations, pension 3,376 3,010 160 Amortization of accumulated actuarial gains, transition obligations, and prior service costs, postretirement medical benefits 3,663 1,259 1,308 Adjustments to accumulated actuarial (losses) gains, postretirement medical benefits (6,893 ) (22,066 ) 7,322 Tax effect of other comprehensive income gains (2,037 ) — (3,335 ) Foreign currency translation adjustment gains (losses) 16,562 8,983 (51,866 ) Unrealized and realized gains (losses) on available-for-sale securities 1,065 (345 ) (1,738 ) Other comprehensive income (loss), net of income taxes 18,562 (4,798 ) (46,263 ) Comprehensive loss (54,573 ) (33,670 ) (265,358 ) Less: Comprehensive loss attributable to noncontrolling interest (1,780 ) (1,767 ) (5,453 ) Comprehensive loss attributable to parent company $ (52,793 ) $ (31,903 ) $ (259,905 ) WESTMORELAND COAL COMPANY SCHEDULE I — CONDENSED STATEMENTS OF CASH FLOWS (Parent Company Information — See Notes to Consolidated Financial Statements) Years Ended December 31, 2017 2016 2015 (In thousands) Cash flows from operating activities: Net loss $ (73,135 ) $ (28,872 ) $ (219,095 ) Adjustments to reconcile net loss to net cash provided by operating activities: Equity in loss of subsidiaries (9,885 ) 2,268 138,575 Depreciation, depletion and amortization 466 325 195 Share-based compensation 2,122 4,692 3,744 Amortization of deferred financing costs 5,292 4,840 4,859 Deferred income tax benefit — (46,085 ) — Loss (gain) on foreign exchange (9 ) (9 ) 26 Distributions received from subsidiaries 47 9,037 5,801 Other 214 196 820 Changes in operating assets and liabilities: Receivables 3,272 (2,369 ) 104 Accounts payable and accrued expenses 805 6,187 4,156 Other assets and liabilities (6,624 ) 1,185 (10,047 ) Net cash used in operating activities (77,435 ) (48,605 ) (70,862 ) Cash flows from investing activities: Additions to property, plant and equipment (592 ) (282 ) (86 ) Change in restricted investments (412 ) (6,112 ) (290 ) Proceeds from Kemmerer Drop — — 115,000 Cash payments in escrow for future acquisitions — — 17,000 Cash payments related to acquisitions — — — Proceeds from the sale of investments — 5,697 — Net cash (used in) provided by investing activities (1,004 ) (697 ) 131,624 Cash flows from financing activities: Borrowings from long-term debt, net of debt discount — — 76,000 Repayments of long-term debt (3,288 ) (3,288 ) (97,829 ) Borrowings on revolving lines of credit 251,300 345,500 182,135 Repayments of revolving lines of credit (251,300 ) (345,500 ) (191,710 ) Debt issuance costs and other refinancing costs — (224 ) (6,393 ) Transactions with Parent/affiliates 78,413 49,456 (9,095 ) Other — (631 ) (322 ) Net cash provided by (used in) financing activities 75,125 45,313 (47,214 ) Net (decrease) increase in cash and cash equivalents (3,314 ) (3,989 ) 13,548 Cash and cash equivalents, beginning of year 10,256 14,245 697 Cash and cash equivalents, end of year $ 6,942 $ 10,256 $ 14,245 |
SUMMARY OF SIGNIFICANT ACCOUN31
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Going Concern, Liquidity and Management's Plan | The accompanying consolidated financial statements are prepared on a going concern basis and do not include any adjustments that might result from uncertainty about our ability to continue as a going concern, other than the reclassification of certain long-term debt and the related debt issuance costs to current liabilities and current assets, respectively. The report from the Company's independent registered public accounting firm on its consolidated financial statements included herein includes an explanatory paragraph that summarizes the salient facts or conditions that raise substantial doubt about the Company's ability to continue as a going concern. |
Consolidation Policy | The Consolidated Financial Statements of Westmoreland Coal Company include the accounts of the Company and its controlled subsidiaries. The Company provides for noncontrolling interests in consolidated subsidiaries in which the Company’s ownership is less than 100%. All intercompany accounts and transactions have been eliminated. Investments in unconsolidated affiliates that the Company has the ability to exercise significant influence over, but not control, are accounted for under the equity method of accounting. Under the equity method of accounting, the Company records its proportionate share of the entity’s net income or loss at each reporting period in Income from equity affiliates in the Consolidated Statements of Operations with a corresponding entry to increase or decrease the carrying value of the investment. The Company’s 50% interest in the Estevan Activated Carbon Joint Venture is accounted for under the equity method of accounting. |
Use of Estimates | The preparation of financial statements in conformity with Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and cash equivalents are stated at cost, which approximate fair value. Cash equivalents consist of highly liquid investments with original maturities of three months or less. |
Trade Receivables | Trade receivables are recorded at the invoiced amount and do not bear interest. The Company evaluates the need for an allowance for doubtful accounts based on a review of collectability. |
Loan and Lease Receivables | All loan and lease receivables were collected during the year ended December 31, 2017 and we do not expect to enter into any such transactions going forward. The Company historically executed loans and finance leases at the Genesee mine with its only customer for purposes of funding capital expenditures and working capital requirements. Finance lease and loan receivables were measured at their carrying value at the inception of the arrangement. Lease payments received were comprised of a repayment of principal and finance income. Finance income was recognized based on the interest rate implicit in the finance lease and recognized in Interest income on the Consolidated Statements of Operations. We recognized finance income over periods between three and twenty-seven years , which reflected a constant periodic return on our net investment in the finance lease. |
Inventories | Inventories include materials and supplies, which are carried at historical cost less an obsolescence reserve, when necessary, and coal, which is carried at the lower of cost or net realizable value. Cost of coal is determined using the average cost method and includes labor, supplies, equipment, depreciation, depletion, amortization, operating overhead and other related costs. |
Exploration and Mine Development | Exploration expenditures are charged to Cost of sales as incurred, including costs related to drilling and study costs incurred to convert or upgrade mineral resources to reserves. At existing surface operations, additional pits may be added to increase production capacity in order to meet customer requirements. These expansions may require significant capital to purchase additional equipment, relocate equipment, build or improve existing haul roads and create the initial pre-production box cut to remove overburden for new pits at existing operations. If these pits operate in a separate and distinct area of the mine, the costs associated with initially uncovering coal for production are capitalized and amortized over the life of the developed pit consistent with coal industry practices. Once production has begun, mining costs are then expensed as incurred. Where new pits are routinely developed as part of a contiguous mining sequence, the Company expenses such costs as incurred. The development of a contiguous pit typically reflects the planned progression of an existing pit, thus maintaining production levels from the same mining area utilizing the same employee group and equipment. |
Land, Mineral Rights, Property, Plant and Equipment | Land, mineral rights, property, plant and equipment are recorded at acquisition cost. Expenditures that extend the useful lives of existing plant and equipment, or increase productivity of plant and equipment, are capitalized. Maintenance and repair costs that do not extend the useful lives or increase productivity of plant and equipment are expensed as incurred. Coal reserves, mineral rights and mine development costs are depleted based upon estimated proven and probable reserves. Long-term spare parts inventory begins depreciation when placed in service. Plant and equipment are depreciated on a straight-line basis over the assets’ estimated useful lives as follows: Years Buildings and improvements 5 to 40 Machinery and equipment 1 to 36 When an asset is retired or sold, its cost and related accumulated depreciation and depletion are removed from the accounts. The difference between the net book value of the asset and proceeds on disposition is recorded as a gain or loss. Fully depreciated plant and equipment still in use is not eliminated from the accounts. Amortization of capital leases is included in Depreciation, depletion and amortization . |
Deferred Longwall Costs | The Company defers the direct costs associated with longwall moves, including longwall set-up costs, supplies and refurbishment costs of longwall equipment at our San Juan mine. These deferred costs are expensed on a units-of-production basis into cost of coal produced (excluding depreciation, depletion and amortization) over the panel benefited by these costs, which has historically approximated one year. |
Impairment of Long-Lived Assets | The Company evaluates its long-lived assets held and used in operations for impairment as events and changes in circumstances indicate that the carrying amount of such assets might not be recoverable. Factors that would indicate potential impairment to be present include, but are not limited to, a sustained history of operating or cash flow losses, an unfavorable change in earnings and cash flow outlook, prolonged adverse industry or economic trends or a significant adverse change in the extent or manner in which a long-lived asset is being used or in its physical condition. Assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets. Coal mining assets are generally grouped at the mine level. When indicators of impairment are present, the Company evaluates its long-lived assets for recoverability by comparing the estimated undiscounted cash flows expected to be generated by those assets under various assumptions to their carrying amounts. If such undiscounted cash flows indicate that the carrying value of the asset group is not recoverable, impairment losses are measured by comparing the estimated fair value of the asset group to its carrying amount. Fair value is generally determined through the use of an expected present value technique based on the income approach. The estimated future cash flows and underlying assumptions used to assess recoverability and, if necessary, measure the fair value of the Company’s long-lived asset groups are derived from those developed in connection with the Company’s planning and budgeting process. |
Reclamation Deposits | Certain of the Company’s customers have pre-funded a portion of expected reclamation costs. Amounts received from customers and held on deposit are recorded within Restricted investments, reclamation deposits and bond collateral . |
Financial Instruments and Derivatives | The Company enters into financial derivatives to manage exposure to fluctuations in power prices. The Company does not utilize derivative financial instruments for trading purposes or for speculative purposes. The Company’s derivative instruments are recorded at fair value with changes in fair value recognized in the Consolidated Statements of Operations at the end of each period in Derivative (gain) loss . The Company evaluates all of its financial instruments to determine if such instruments are derivatives, derivatives that qualify for the normal purchase normal sale exception or instruments that contain features that qualify them as embedded derivatives. Except for derivatives that qualify for the normal purchase normal sale exception, all derivative financial instruments are recognized in the balance sheet at fair value. Changes in fair value are recognized in earnings if they are not eligible for hedge accounting or Accumulated other comprehensive loss if they qualify for hedge accounting. The Company has securities classified as available-for-sale, which are recorded at fair value. The changes in fair values are recorded as unrealized gains (losses) as a component of Accumulated other comprehensive loss in the Consolidated Balance Sheets. The Company reviews its securities routinely for other-than-temporary impairment. The primary factors used to determine if an impairment charge must be recorded because a decline in value of the security is other than temporary include (i) whether the fair value of the investment is significantly below its cost basis, (ii) the financial condition of the issuer of the security, (iii) the length of time that the cost of the security has exceeded its fair value and (iv) the Company’s intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in market value. Other-than-temporary impairments are recorded as a component of Other (loss) income . |
Fair Value | Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly 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. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy, as defined below, gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. • Level 1, defined as observable inputs such as quoted prices in active markets for identical assets. Level 1 assets include available-for-sale equity securities generally valued based on independent third-party market prices. • Level 2, defined as observable inputs other than Level 1 prices. These include quoted prices for similar assets or liabilities in an active market, quoted prices for identical assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. See Note 4 - Loss On Impairment , Note 6 - Restricted Investments, Reclamation Deposits And Bond Collateral and Note 13 - Fair Value Measurements to the consolidated financial statements for further disclosures related to the Company's fair value estimates. |
Intangible Assets and Liabilities | Identifiable intangible assets or liabilities acquired in a business combination are specifically identified and recognized on a standalone basis. These intangible assets and liabilities are amortized on a straight-line basis over the respective useful life of the asset or liability. See Note 7 - Intangible Assets And Liabilities to the consolidated financial statements for further details. |
Compensation Related Costs | Workers’ Compensation Benefits The Company is self-insured for workers’ compensation claims incurred prior to 1996. The liabilities for workers’ compensation claims are actuarially determined estimates of the ultimate losses incurred based on the Company’s experience. Adjustments to the actuarially determined liability are made annually based on subsequent developments and experience and are included in operations at the time of the revised estimate. The Company insures its current employees through third-party insurance providers and state arrangements. Pneumoconiosis (Black Lung) Benefits The Company is self-insured for federal and state black lung benefits for former Heritage employees. The Company accounts for these benefits on the accrual basis. An independent actuary annually calculates the present value of the accumulated black lung obligation. The liability is included in Other liabilities on the Consolidated Balance Sheets. The Company insures its current represented employees through arrangements with its unions and its current non-represented employees are insured through third-party insurance providers. The Company maintains actuarially determined accruals to account for estimates of the ultimate losses incurred. Postretirement Health Care Benefits The Company accrues the cost to provide the benefits over the employees’ period of active service for postretirement benefits other than pensions. These costs are determined on an actuarial basis. The Company’s Consolidated Balance Sheets reflect the unfunded status of postretirement benefit obligations. Pension and SERP Plans The Company accrues the cost to provide the benefits over the employees’ period of active service for the non-contributory defined benefit pension and SERP plans it sponsors. These costs are determined on an actuarial basis. The Company’s Consolidated Balance Sheets reflect the unfunded status of the defined benefit pension and SERP plans, with the current portion of the liability in Other current liabilities . |
Deferred Revenue | Deferred revenues represent funding received in advance of meeting the revenue recognition criteria. Deferred revenues will be recognized as revenue in the periods in which all revenue recognition criteria have been met. |
Asset Retirement Obligations | The Company’s asset retirement obligation, or "ARO," primarily consist of estimated costs to reclaim surface land and support facilities at its mines and power plants in accordance with federal and state reclamation laws as established by each mining permit. The Company estimates its ARO for final reclamation and mine closure based upon detailed engineering calculations of the amount and timing of the future costs for a third party to perform the required work. These estimates are based on projected pit configurations and are escalated for inflation, and then discounted at a credit-adjusted risk-free rate. The Company records asset retirement cost associated with the initial recorded liability. Asset retirement cost is amortized based on the units of production method over the estimated proven and probable reserves at the related mine, and the ARO is accreted to the projected settlement date. Changes in estimates could occur due to revisions of mine plans, changes in estimated costs or changes in timing of the performance of reclamation activities. |
Income Taxes | The Company is subject to income taxes in the U.S. (including federal and state) and certain foreign jurisdictions. Deferred income taxes are provided for temporary differences arising from differences between the financial statement amount 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 (greater than 50%) that a deferred tax asset will not be realized. In determining the need for a valuation allowance at each reporting period, the Company considers projected realization of tax benefits based on expected levels of future taxable income, the duration of statutory carryforward periods, experience with operating loss and tax credit carryforwards not expiring and availability of tax planning strategies. Accounting guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Under this guidance, a company can recognize the benefit of an income tax position only if it is more likely than not (greater than 50%) that the tax position will be sustained upon tax examination, based solely on the technical merits of the tax position. Guidance is also provided on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company includes interest and penalties related to income tax matters in income tax expense. Deferred tax liabilities and assets are classified as noncurrent in the Consolidated Balance Sheets. The tax effect of pretax income or loss from continuing operations is generally determined by a computation that does not consider the tax effects of items that are not included in continuing operations. The exception to that incremental approach is that all items (for example, items recorded in other comprehensive income) be considered in determining the amount of tax benefit that results from a loss from continuing operations and that shall be allocated to continuing operations. |
Deferred Financing Costs | The Company capitalizes costs incurred in connection with establishment of credit facilities and issuance of debt securities. These costs are amortized as an adjustment to interest expense over the life of the debt security or term of the credit facility using the effective interest method. These amounts are recorded in the Consolidated Balance Sheets in Other assets in the case of credit facilities and in the case of debt securities in Long-term debt, less current installments as a direct deduction of the carrying amount of the debt security, consistent with debt discounts in the Consolidated Balance Sheets. |
Revenue Recognition | Revenue Recognition Revenue is recognized when the following criteria have been met: persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable and the collection of funds is reasonably assured. Coal Revenues The Company generally recognizes revenue from the sale of coal at the time title passes to the customer in accordance with the terms of the underlying sales agreement. The point that title passes varies by agreement. Under our sales agreements, title transfer points include upon loading to truck or rail, upon delivery by truck or rail, upon loading to conveyor belt, upon delivery from conveyor belt and upon delivery to stockpile. Coal revenue is recognized based on the pricing contained in the contracts in place at the time that title passes. Certain of our coal contracts require that the customer reimburse us for reclamation expenditures when incurred. On the delivery of coal these reimbursements are generally not yet fixed or determinable. Accordingly, these reimbursements are not recognized as revenue until they become fixed or determinable, which generally occurs when reclamation expenditures are incurred. Reclamation expenditures may be incurred and the associated revenue related to reimbursements may be recognized during periods of coal delivery, or in some instances, may continue to be incurred and recognized for several years after coal deliveries have been completed. Power Revenues ROVA supplied power it produced and generated revenues from such deliveries, as well as through the settlement of related purchased power arrangements. A portion of the payment under the power sales agreement was considered to be an operating lease. The Company recognized amounts previously invoiced as revenue on a straight-line basis over the remaining term of the power sales agreement. Other Operating Loss (Income) Other operating loss (income) in the Consolidated Statements of Operations reflects items of income or loss from sources other than coal or power revenues. The Company recognizes other operating income when business interruption losses have been incurred and reimbursement is realized or realizable . Insurance proceeds are included in Net cash provided by operating activities |
Share-Based Compensation | Share-based compensation expense is generally measured at the grant date and recognized as expense over the vesting period of the entire award for stock-settled grants and remeasured at fair value at the end of each period and accrued as a liability for cash-settled grants. These costs are recorded in Selling and administrative in the Consolidated Statements of Operations. |
Foreign Currency Transactions and Translations | Foreign Exchange Transactions Amounts held and transactions denominated in foreign currencies other than the operating unit’s functional currency give rise to foreign exchange gains and losses which are included within (Loss) gain on foreign exchange in the Consolidated Statements of Operations . Foreign Currency Translation The functional currency of the Company’s Canadian operations is the Canadian dollar. The Company’s Canadian operations’ assets and liabilities are translated at period end exchange rates, and revenues and costs are translated using average exchange rates for the period. Foreign currency translation adjustments are reported in Other comprehensive loss, net of income taxes in the Consolidated Statements of Comprehensive Loss. |
Reclassifications | Certain amounts in prior periods have been reclassified to conform with current year presentation, with no effect on previously reported net loss, cash flows or shareholders’ deficit. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In October 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU") 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory , which eliminates the exception that prohibits the recognition of current and deferred income tax effects for intra-entity transfers of assets other than inventory until the asset has been sold to an outside party. The new guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. The amendments in this update should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to accumulated deficit as of the beginning of the period of adoption. The Company early adopted this standard during the first quarter of 2017, which resulted in a cumulative effect adjustment as of January 1, 2017 reducing Other assets and Accumulated deficit by $0.4 million . In March 2016, FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . This guidance is designed to address simplification of several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This guidance is effective for interim and annual periods beginning after December 15, 2016, and early adoption is permitted. Our January 1, 2017 retrospective adoption of this guidance did not have a material impact to our consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory , which simplifies the subsequent measurement of inventory by replacing the historical lower of cost or market test with a lower of cost or net realizable value test. This guidance is effective for interim and annual periods beginning after December 15, 2016. Our January 1, 2017 adoption of this guidance did not have a material impact to our consolidated financial statements. Accounting Pronouncements Effective in the Future In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Cost , which requires separate presentation of service costs and all other components of net benefit costs on the statement of operations. Under this ASU, service cost is included in the same line item as other compensation costs arising from services rendered by employees during the period, with all other components of net benefit costs on the statement of operations outside of income from operations. The new guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. The amendments in this update require retrospective application. We will adopt the new guidance in the first quarter of 2018 and the adoption of this guidance will not have a material impact on the consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which standardizes cash flow statement classification of certain transactions, including cash payments for debt prepayment or extinguishment, proceeds from insurance claim settlements, and distributions received from equity method investments. The new guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. The new guidance should be applied using a retrospective transition method to each period presented. If impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. We will adopt the new guidance in the first quarter of 2018 and the adoption of this guidance will not have a material impact on the consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which requires companies leasing assets to recognize on their balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term on contracts longer than one year. The new guidance is effective for fiscal years beginning after December 15, 2018, using a modified retrospective approach, with early adoption permitted. The Company has established an implementation team to develop a multi-phase plan to adopt the requirements of the new standard. We will adopt the new guidance in the first quarter of 2019. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which supersedes all previously existing revenue recognition guidance. Under this guidance, an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , issued in August 2015, deferred the effective date of ASU 2014-09 to the first quarter of 2018, with early adoption permitted in the first quarter of 2017. In March, April, May, and December 2016, the FASB issued the following updates, respectively, to provide supplemental adoption guidance and clarification to ASU 2014-09. These standards must be adopted concurrently upon the adoption of ASU 2014-09. We are currently evaluating the potential effects of adopting the provisions of these updates. • ASU 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net) ; • ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing ; • ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients ; and • ASU 2016-19, Technical Corrections and Improvements During 2016, the Company established an implementation team to develop a multi-phase plan to assess the Company’s business and contracts, as well as any changes to processes or systems to adopt the requirements of the new standard. As of the date of this filing, the Company has substantially completed its evaluation of the impact of the new standard under the full retrospective approach. This process included a review of all material contracts, application of the new guidance to each contract, and documentation of related conclusions. Based on our implementation team’s analyses, we have determined that the implementation of the new standard will have a material impact on our consolidated financial statements for long-term coal supply agreements in which we are entitled to payments from customers to reimburse our costs incurred during final reclamation as these payments relate to the only performance obligations within the contract, which consist of the sale of each ton of coal. As these estimates include significant uncertainty, we are still evaluating all assumptions used in the estimate and finalizing the amounts of accelerated revenues we will recognize for the years ended December 31, 2017 and 2016, and as of the transition date of January 1, 2016. The transition date adjustment will be made directly to accumulated deficit as of January 1, 2016, while the transition adjustments for the years ended December 31, 2017 and 2016 will restate previously reported revenues for those periods. These amounts will create a contract asset on our Consolidated Balance Sheets in the form of accounts receivable for final reclamation. Additionally, we are in the process of evaluating disclosure requirements, finalizing accounting policies and implementing changes to the relevant business processes and the control activities required to implement this standard. |
SUMMARY OF SIGNIFICANT ACCOUN32
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Estimated useful lives of plant and equipment | Plant and equipment are depreciated on a straight-line basis over the assets’ estimated useful lives as follows: Years Buildings and improvements 5 to 40 Machinery and equipment 1 to 36 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) - San Juan Coal Company [Member] | 12 Months Ended |
Dec. 31, 2017 | |
Business Acquisition [Line Items] | |
Summary of purchase consideration and allocation of purchase consideration | The allocation of the purchase consideration follows (in millions): Final as of December 31, 2016 Purchase price: Cash paid $ 121.0 Allocation of purchase price: Assets: Inventories 8.8 Total current assets 8.8 Land and mineral rights 143.9 Plant and equipment 74.6 Other assets 1.3 Total assets 228.6 Liabilities: Trade payables and other accrued liabilities 13.4 Production taxes 2.0 Asset retirement obligations 0.7 Total current liabilities 16.1 Asset retirement obligations, less current portion 43.5 Postretirement medical benefits 1.9 Deferred income taxes 46.1 Total liabilities 107.6 Net fair value $ 121.0 |
Summary of pro forma information | The following unaudited pro forma information has been prepared for illustrative purposes only and assumes the San Juan Acquisition occurred on January 1, 2015. The unaudited pro forma results have been prepared based on estimates and assumptions, which the Company believes are reasonable, however, they are not necessarily indicative of the Consolidated Statements of Operations had the acquisitions occurred on the dates indicated above, or of future results of operations. Due to the full year of ownership in 2017, no pro forma information has been presented below for the year ended December 31, 2017. Years Ended December 31, 2016 2015 (In thousands, except per share data) Total revenues As reported $ 1,477,960 $ 1,419,518 Pro forma (unaudited) 1,504,235 1,714,043 Operating income (loss) As reported $ 38,130 $ (145,696 ) Pro forma (unaudited) 39,225 (106,606 ) Net loss applicable to common shareholders As reported $ (27,101 ) $ (213,645 ) Pro forma (unaudited) (26,676 ) (187,139 ) Net loss per share applicable to common shareholders, basic & diluted As reported $ (1.47 ) $ (11.93 ) Pro forma (unaudited) (1.44 ) (10.45 ) |
VARIABLE INTEREST ENTITY (Table
VARIABLE INTEREST ENTITY (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The following table presents the carrying amounts, after eliminating the effect of intercompany transactions, included in the Consolidated Balance Sheets that are for the use of or are the obligation of WSJ (in thousands): December 31, 2017 December 31, 2016 Assets $ 203,737 $ 268,910 Liabilities 167,529 243,884 Net carrying amount $ 36,208 $ 25,026 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: December 31, 2017 December 31, 2016 (In thousands) Coal stockpiles $ 38,145 $ 44,692 Materials and supplies 73,517 84,444 Reserve for obsolete inventory (4,867 ) (3,621 ) Total $ 106,795 $ 125,515 |
RESTRICTED INVESTMENTS, RECLA36
RESTRICTED INVESTMENTS, RECLAMATION DEPOSITS AND BOND COLLATERAL (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Restricted Investments and Bond Collateral [Abstract] | |
Carrying value and estimated fair value of restricted investments and bond collateral | The Company’s carrying value and estimated fair value of Restricted investments, reclamation deposits and bond collateral as of December 31, 2017 were as follows: Restricted Investments and Bond Collateral Reclamation Deposits Total Restricted Investments, Reclamation Deposits and Bond Collateral (In thousands) Cash and cash equivalents $ 42,549 $ 6,643 $ 49,192 Time deposits 2,467 — 2,467 Available-for-sale 78,157 70,378 148,535 $ 123,173 $ 77,021 $ 200,194 The Company’s carrying value and estimated fair value of its Restricted investments, reclamation deposits and bond collateral as of December 31, 2016 were as follows: Restricted Investments and Bond Collateral Reclamation Deposits Total Restricted Investments, Reclamation Deposits and Bond Collateral (In thousands) Cash and cash equivalents $ 66,860 $ 2,673 $ 69,533 Time deposits 2,473 — 2,473 Available-for-sale 75,580 71,689 147,269 $ 144,913 $ 74,362 $ 219,275 |
Available-for-sale Securities | The cost basis, gross unrealized holding gains and losses, and fair value of available-for-sale securities as of December 31, 2017 were as follows: Restricted Investments and Bond Collateral Reclamation Deposits Total Restricted Investments, Reclamation Deposits and Bond Collateral (In thousands) Cost basis $ 78,564 $ 70,576 $ 149,140 Gross unrealized holding gains 521 617 1,138 Gross unrealized holding losses (928 ) (815 ) (1,743 ) Fair value $ 78,157 $ 70,378 $ 148,535 The cost basis, gross unrealized holding gains and losses, and fair value of available-for-sale securities as of December 31, 2016 were as follows: Restricted Investments and Bond Collateral Reclamation Deposits Total Restricted Investments, Reclamation Deposits and Bond Collateral (In thousands) Cost basis $ 76,558 $ 72,381 $ 148,939 Gross unrealized holding gains 251 453 704 Gross unrealized holding losses (1,229 ) (1,145 ) (2,374 ) Fair value $ 75,580 $ 71,689 $ 147,269 |
Maturities of available-for-sale | Maturities of available-for-sale securities were as follows as of December 31, 2017 : Cost Basis Fair Value (In thousands) Due within one year $ 13,960 $ 13,423 Due in five years or less 60,827 60,447 Due after five years to ten years 32,381 32,527 Due in more than ten years 41,972 42,138 $ 149,140 $ 148,535 |
INTANGIBLE ASSETS AND LIABILI37
INTANGIBLE ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Acquired Favorable Lease Agreements | December 31, 2017 Estimated Remaining Life (years) Cost Accumulated Amortization Net Carrying Value (In thousands except for years data) Favorable lease agreements 12 $ 32,174 $ 6,327 $ 25,847 December 31, 2016 Estimated Remaining Life (years) Cost Accumulated Amortization Net Carrying Value (In thousands except for years data) Favorable lease agreements 13 $ 32,174 $ 4,142 $ 28,032 |
Amortization of Intangible Assets and Liabilities | The estimated amortization amounts from intangibles assets for each of the next five years as of December 31, 2017 are as follows: Amount of Amortization to Recognize in Expense 2018 $ 2,184 2019 2,184 2020 2,184 2021 2,184 2022 2,184 |
DEBT AND LINES OF CREDIT (Table
DEBT AND LINES OF CREDIT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Outstanding lines of credit and long-term debt | Issuance Amount Issuance Date Maturity Date Total Debt Outstanding December 31, 2017 December 31, 2016 (In millions) (MM/DD/YY) (MM/DD/YY) (In thousands) 8.75% Notes $350.0 12/16/14 1/1/22 $ 350,000 $ 350,000 Term Loan 425.0 12/16/14 12/16/20 320,595 323,883 San Juan Loan 125.0 2/1/16 2/1/21 56,640 95,000 WMLP Term Loan 295.0 12/31/14 12/31/18 312,734 306,189 Revolver * 12/16/14 12/31/18 — — Capital lease obligations Varies Varies Varies 33,113 55,061 Other debt Varies Varies Varies 2,826 16,464 Total debt 1,075,908 1,146,597 Less debt discount and issuance costs, net (27,501 ) (37,531 ) Less current installments, net of debt discount and issuance costs (983,427 ) (86,272 ) Total non-current debt $ 64,980 $ 1,022,794 |
Aggregate contractual debt maturities of all long-term debt and lines of credit | The following table presents aggregate contractual debt maturities of all long-term debt as of December 31, 2017 (in thousands): Maturity Date (1) Debt Held by WMLP All Other Debt Total Debt Outstanding 2018 $ 316,982 $ 21,345 $ 338,327 2019 4,175 17,263 21,438 2020 1,768 339,548 341,316 2021 1,664 21,165 22,829 2022 1,998 350,000 351,998 Thereafter — — — Total debt $ 326,587 $ 749,321 $ 1,075,908 |
Schedule of Revolving Credit Facilities | Our revolving credit facilities had the following details as of December 31, 2017 (in millions): Revolver Details U.S. Borrowers Canadian Borrowers U.S. & Canadian Borrowers Line of credit maximum availability - $ 30.0 $ 20.0 $ 50.0 Letters of credit outstanding 2.4 — 2.4 Borrowing base restrictions 14.4 4.5 18.9 Line of credit draws — — — Line of credit availability $ 13.2 $ 15.5 $ 28.7 |
POSTRETIREMENT MEDICAL BENEFI39
POSTRETIREMENT MEDICAL BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of contributions to Combined Benefit Fund | The following payments were made to the CBF (in thousands): 2017 $ 1,445 2016 1,594 2015 1,794 |
Schedule of Workers Compensation obligation | The following table shows the changes in the Company’s workers’ compensation obligation: December 31, 2017 December 31, 2016 (In thousands) Workers’ compensation, beginning of year (including current portion) $ 5,040 $ 5,658 Accretion 167 115 Claims paid (512 ) (399 ) Actuarial changes (426 ) (334 ) Workers’ compensation, end of year 4,269 5,040 Less current portion, included in Other current liabilities (489 ) (541 ) Workers’ compensation, less current portion, included in Other liabilities $ 3,780 $ 4,499 |
Postretirement Medical Benefits [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of benefit obligations and amounts recognized in financial statements | The following table sets forth the actuarial present value of postretirement medical benefit obligations and amounts recognized in the Company’s financial statements: December 31, 2017 December 31, 2016 (In thousands) Change in benefit obligations: Net benefit obligation at beginning of year $ 323,601 $ 299,373 Liability acquired — 1,851 Service cost 3,018 3,270 Interest cost 12,651 12,353 Plan participant contributions 59 136 Actuarial loss 6,893 24,821 Gross benefits paid (15,457 ) (16,914 ) Federal subsidy on benefits paid 1,376 1,466 Curtailments — (2,755 ) Net benefit obligation at end of year 332,141 323,601 Change in plan assets: Employer contributions 15,398 16,778 Plan participant contributions 59 136 Gross benefits paid (15,457 ) (16,914 ) Fair value of plan assets at end of year — — Unfunded status at end of year $ (332,141 ) $ (323,601 ) Amounts recognized in the balance sheet consist of: Current liabilities $ (14,734 ) $ (14,892 ) Noncurrent liabilities (317,407 ) (308,709 ) Accumulated other comprehensive loss 55,123 51,893 Net amount recognized $ (277,018 ) $ (271,708 ) Amounts recognized in accumulated other comprehensive loss consists of: Net actuarial loss $ 58,301 $ 55,706 Prior service credit (3,178 ) (3,813 ) $ 55,123 $ 51,893 |
Components of net periodic benefit cost | The components of net periodic postretirement medical benefit cost are as follows: Years Ended December 31, 2017 2016 2015 (In thousands) Components of net periodic benefit cost: Service cost $ 3,018 $ 3,270 $ 4,217 Interest cost 12,651 12,353 11,629 Amortization of: Prior service credit (635 ) (636 ) (636 ) Actuarial loss 4,298 1,895 1,944 Total net periodic benefit cost $ 19,332 $ 16,882 $ 17,154 The following table shows the net periodic postretirement medical benefit costs that relate to current and former mining operations: Years Ended December 31, 2017 2016 2015 (In thousands) Former mining operations $ 9,222 $ 8,540 $ 8,137 Current operations 10,110 8,342 9,017 Total net periodic benefit cost $ 19,332 $ 16,882 $ 17,154 |
Schedule of weighted-average assumptions used | The weighted-average assumptions used to determine the benefit obligations as of the end of each year were as follows: December 31, 2017 December 31, 2016 Discount rate 3.45% - 3.85% 3.90% - 4.45% Measurement date December 31, 2017 December 31, 2016 The weighted-average assumptions used to determine net periodic benefit cost were as follows: December 31, 2017 December 31, 2016 December 31, 2015 Discount rate 3.90% - 4.45% 4.10% - 4.65% 3.75% - 4.25% Measurement date December 31, 2016 December 31, 2015 December 31, 2014 |
Schedule of assumed health care trend rate | The following presents information about the assumed health care trend rate: December 31, 2017 December 31, 2016 Health care cost trend rate assumed for next year 6.50% 6.75% Rate to which the cost trend is assumed to decline (ultimate trend rate) 4.75% 4.75% Year that the trend rate reaches the ultimate trend rate 2025 2025 |
Schedule of effect of a one percent change on the health care cost trend | The effect of a one percent change on the health care cost trend rate used to calculate periodic postretirement medical benefit costs and the related benefit obligation are summarized in the table below: Postretirement Medical Benefits 1 % Increase 1 % Decrease (In thousands) Effect on service and interest cost components $ 2,743 $ (2,125 ) Effect on postretirement medical benefit obligation 48,294 (39,005 ) |
Schedule of expected benefit payments | The following benefit payments and Medicare D subsidy (which the Company receives as a benefit partially offsetting its prescription drug costs for retirees and their dependents) are expected by the Company: Postretirement Medical Benefits Medicare D Subsidy Net Postretirement Medical Benefits (In thousands) 2018 $ 16,368 $ (1,634 ) $ 14,734 2019 16,889 (1,694 ) 15,195 2020 17,399 (1,751 ) 15,648 2021 17,802 (1,807 ) 15,995 2022 18,261 (1,860 ) 16,401 Years 2023 - 2027 94,618 (9,702 ) 84,916 |
PENSION AND OTHER SAVING PLANS
PENSION AND OTHER SAVING PLANS (Tables) - Pension Benefits [Member] | 12 Months Ended |
Dec. 31, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of benefit obligations and amounts recognized in financial statements | The following table provides a reconciliation of the changes in the benefit obligations of the plans and the fair value of assets of the qualified plans and the amounts recognized in the Company’s financial statements for both the defined benefit pension and SERP plans: December 31, 2017 December 31, 2016 (In thousands) Change in benefit obligation: Net benefit obligation at beginning of year $ 272,489 $ 184,681 Liability acquired — 89,300 Service cost 1,510 1,634 Interest cost 10,471 10,635 Actuarial loss 11,275 1,018 Benefits and expenses paid (13,691 ) (14,064 ) Settlements and curtailments (2,233 ) (992 ) Foreign currency exchange rate changes 1,006 277 Net benefit obligation at end of year 280,827 272,489 Change in plan assets: Fair value of plan assets at the beginning of year 236,042 141,137 Assets acquired — 90,600 Actual return on plan assets 29,207 18,053 Employer contributions 1,152 970 Benefits and expenses paid (13,691 ) (14,064 ) Settlements (2,233 ) (992 ) Foreign currency exchange rate changes 843 338 Fair value of plan assets at end of year 251,320 236,042 Unfunded status at end of year $ (29,507 ) $ (36,447 ) Amounts recognized in the accompanying balance sheet consist of: Noncurrent asset, included in Other assets $ 14,427 $ 7,893 Current liability, included in Other current liabilities (349 ) (358 ) Noncurrent liability (43,585 ) (43,982 ) Accumulated other comprehensive loss 19,921 26,123 Net amount recognized at end of year $ (9,586 ) $ (10,324 ) Amounts recognized in accumulated other comprehensive loss consist of: Net actuarial loss $ 19,860 $ 26,054 Prior service cost 61 69 $ 19,921 $ 26,123 |
Components of net periodic benefit cost | The components of net periodic pension cost are as follows: Years Ended December 31, 2017 2016 2015 (In thousands) Components of net periodic pension cost: Service cost $ 1,510 $ 1,634 $ 1,732 Interest cost 10,471 10,635 7,397 Expected return on plan assets (14,556 ) (14,025 ) (9,959 ) Settlements and curtailments 796 186 — Amortization of: Prior service cost 8 8 8 Actuarial loss 2,818 4,167 3,442 Total net periodic pension cost $ 1,047 $ 2,605 $ 2,620 |
Schedule of weighted-average assumptions used | The weighted-average assumptions used to determine the benefit obligations as of the end of each year were as follows: December 31, 2017 December 31, 2016 Discount rate 3.30% - 3.55% 3.60% - 4.05% Measurement date December 31, 2017 December 31, 2016 The following table provides the assumptions used to determine net periodic pension cost: Years Ended December 31, 2017 2016 2015 Discount rate 3.60% - 4.05% 3.90% - 4.25% 3.60% - 3.90% Expected return on plan assets 1.50% - 6.80% 1.75% - 7.10% 3.66% - 7.10% Measurement date December 31, 2016 December 31, 2015 December 31, 2014 |
Schedule of allocation of plan assets | The weighted-average target asset allocation of the Company’s pension trusts were as follows at December 31, 2017 : Target Allocation Asset category: Cash and equivalents 0% - 10% Equity securities funds 20% - 60% Debt securities funds 40% - 80% Other 0% - 10% The fair value of the Company’s pension plan assets by asset category is as follows: December 31, 2017 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Fair Value Level 1 Level 2 Level 3 (In thousands) Pooled separate accounts: Large-cap blend (a) $ 65,574 $ — $ 65,574 $ — International blend (b) 11,639 — 11,639 — Fixed income domestic (c) 24,958 — 24,958 — Fixed income long-term (d) 111,683 — 111,683 — Stable value (e) 13,042 — 13,042 — Registered investment companies – growth fund 20,668 20,668 — — Limited partnerships and limited liability companies 10 — — 10 Westmoreland Coal common stock 56 56 — — Cash and cash equivalents 3,690 3,690 — — $ 251,320 $ 24,414 $ 226,896 $ 10 December 31, 2016 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Fair Value Level 1 Level 2 Level 3 (In thousands) Pooled separate accounts: Large-cap blend (a) $ 61,799 $ — $ 61,799 $ — International blend (b) 10,401 — 10,401 — Fixed income domestic (c) 21,732 — 21,732 — Fixed income long-term (d) 105,640 — 105,640 — Stable value (e) 13,317 — 13,317 — Registered investment companies – growth fund 18,515 18,515 — — Limited partnerships and limited liability companies 29 — — 29 Westmoreland Coal common stock 819 819 — — Cash and cash equivalents 3,790 3,790 — — $ 236,042 $ 23,124 $ 212,889 $ 29 _________________________ (a) Large-cap blend funds seek to provide long-term growth of capital. They seek to provide investment results that approximate the performance of the Standard & Poor’s Composite 1500 Index. (b) International blends seek to have a diversified portfolio of investments, including fixed-income and equity-focused investments in international markets. (c) Fixed income domestic funds seek to invest in high-quality corporate bonds with over 15 years to maturity. (d) Fixed income long-term bond funds seek to achieve performance results similar to the Barclays Capital U.S. Aggregate Bond Index. This fund invests primarily in corporate and government bonds. (e) The stable value fund seeks to invest in publicly traded and privately placed debt securities and mortgage loans, and to a lesser extent, real estate and other equity investments in order to provide a guaranteed rate of return. |
Schedule of expected benefit payments | The following benefit payments are expected to be paid from its pension plan assets: Pension Benefits (In thousands) 2018 $ 15,220 2019 15,520 2020 15,935 2021 16,170 2022 16,288 Years 2023 - 2027 81,698 |
Schedule of multiemployer plans | The following table shows required information for each employer contributing to the Plan: WECO WRI WSC Employer plan number 9313 9243 4990 Minimum contributions per hour worked $5.85 - $5.95 $4.03 - $4.39 $3.70 Expiration date of collective bargaining agreements 2/28/2019 5/31/2021 3/31/2022 Employer contributions (in millions): 2017 $ 3.5 $ 1.0 $ 0.1 2016 3.7 0.8 0.1 2015 3.6 1.1 0.1 |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Summary of asset retirement obligations, contractual third-party reclamation receivables and reclamation deposits | The Company's asset retirement obligations, by operating segment, as of December 31, 2017 are summarized below: Asset Retirement Obligations (In thousands) Coal - U.S. $ 298,973 Coal - Canada 126,847 Coal - WMLP 45,795 Power 2,852 Total $ 474,467 |
Changes in Company's asset retirement obligations | Changes in the Company’s asset retirement obligations were as follows: Years Ended December 31, 2017 2016 (In thousands) Asset retirement obligations, beginning of year (including current portion) $ 484,041 $ 419,764 Accretion 45,132 40,423 Liabilities settled (47,612 ) (32,087 ) Changes due to amount and timing of reclamation (19,242 ) 7,191 Asset retirement obligations acquired 4,260 45,404 Changes due to foreign currency translation 7,888 3,346 Asset retirement obligations, end of year 474,467 484,041 Less current portion (48,429 ) (32,207 ) Asset retirement obligations, less current portion $ 426,038 $ 451,834 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | The fair value of outstanding derivative instruments not designated as hedging instruments on the Consolidated Balance Sheets was as follows (in thousands): Derivative Instruments Balance Sheet Location December 31, 2017 December 31, 2016 Contracts to purchase power Other current liabilities $ — $ 13,382 Contracts to purchase power Other liabilities — 18,384 Contract to sell power Other current assets — 10,240 Contract to sell power Other assets — 9,528 The effect of derivative instruments not designated as hedging instruments, including settlement payments, on the Consolidated Statements of Operations was as follows (in thousands): Years Ended December 31, Derivative Instruments Statements of Operations Location 2017 2016 2015 Contracts to purchase power Derivative (gain) loss $ (21,697 ) $ (4,287 ) $ 5,587 Contract to sell power Derivative (gain) loss 19,768 (19,768 ) — $ (1,929 ) $ (24,055 ) $ 5,587 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Estimated fair values of Company's debt | The estimated fair value of the Company’s debt with fixed and variable interest rates are as follows: Fixed Interest Rate Variable Interest Rate Carrying Value Fair Value Carrying Value Fair Value (In thousands) (In thousands) December 31, 2017 $ 375,789 $ 195,189 $ 672,618 $ 351,856 December 31, 2016 409,362 395,274 699,704 658,557 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The table below sets forth, by level, the Company’s financial assets and liabilities that are accounted for at fair value on a recurring basis: December 31, 2017 Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Fair Value Level 1 Level 2 (In thousands) Assets: Available-for-sale investments, included in Restricted investments, reclamation deposits and bond collateral $ 148,535 $ 148,535 $ — $ 148,535 $ 148,535 $ — Liabilities: Warrants issued by WMLP, included in Other liabilities $ 296 $ — $ 296 $ 296 $ — $ 296 December 31, 2016 Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Fair Value Level 1 Level 2 (In thousands) Assets: Contract to sell power, included in Other current assets and Other assets $ 19,768 $ — $ 19,768 Available-for-sale investments, included in Restricted investments, reclamation deposits and bond collateral 147,269 147,269 — $ 167,037 $ 147,269 $ 19,768 Liabilities: Contracts to purchase power, included in Other current liabilities and Other liabilities $ 31,766 $ — $ 31,766 Warrants issued by WMLP, included in Other liabilities 613 — 613 $ 32,379 $ — $ 32,379 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Compensation cost arising from share-based arrangements | Compensation cost arising from stock-settled share-based arrangements is shown in the following table: Years Ended December 31, 2017 2016 2015 (In thousands) Recognition of fair value of restricted stock units, stock options and SARs over vesting period $ 3,200 $ 5,392 $ 4,019 Contributions of stock to the Company’s 401(k) plan — 2,192 3,729 Total share-based compensation expense $ 3,200 $ 7,584 $ 7,748 |
Summary of Restricted Stock Unit activity | Changes in our restricted stock for the year ended December 31, 2017 were as follows: Units Weighted Average Grant-Date Fair Value Unamortized Compensation Expense (In thousands) ( 1) Non-vested at December 31, 2016 700,500 $ 15.91 Granted 713,238 3.94 Vested and issued (291,140 ) 17.20 Forfeited (347,647 ) 9.62 Non-vested at December 31, 2017 774,951 $ 8.31 $ 2,055 ____________________ (1) Expected to be recognized over the next three years . |
Schedule of Valuation Assumptions | The following table summarizes the assumptions used to measure the fair value of the annual grant of units granted with a market condition indexed to the achievement of specified levels of total shareholder return: Assumptions 2017 Risk-free rate of return 1.41 % Expected volatility 71.20 % Expected term (in years) 3.0 Expected dividend yield — |
Additional Information Related to Restricted Stock Units | Additional information related to restricted stock units: Years Ended December 31: Weighted Average Grant-Date Fair Value Total Grant-Date Fair Value of Restricted Stock Units that Vested (In thousands) 2017 $ 3.94 $ 5,007 2016 8.85 2,485 2015 28.26 2,884 |
STOCKHOLDERS' EQUITY AND ACCU45
STOCKHOLDERS' EQUITY AND ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following is a summary of Accumulated other comprehensive loss : Pension Postretirement Medical Benefits Available-for-Sale Securities Foreign Currency Translation Adjustment Tax Effect of Other Comprehensive Income Gains Accumulated Other Comprehensive Loss (In thousands) December 31, 2014 $ (35,540 ) $ (39,716 ) $ 413 $ (18,190 ) $ (34,974 ) $ (128,007 ) 2015 activity 2,046 8,630 (1,738 ) (51,866 ) (3,335 ) (46,263 ) December 31, 2015 (33,494 ) (31,086 ) (1,325 ) (70,056 ) (38,309 ) (174,270 ) 2016 activity 7,371 (20,807 ) (349 ) 8,983 — (4,802 ) December 31, 2016 (26,123 ) (51,893 ) (1,674 ) (61,073 ) (38,309 ) (179,072 ) 2017 activity 6,202 (3,230 ) 1,050 16,562 (2,037 ) 18,547 December 31, 2017 $ (19,921 ) $ (55,123 ) $ (624 ) $ (44,511 ) $ (40,346 ) $ (160,525 ) Changes in Accumulated Other Comprehensive Loss The following table reflects the changes in Accumulated other comprehensive loss by component: Pension Postretirement Medical Benefits Available-for-Sale Securities Foreign Currency Translation Adjustment Tax Effect of Other Comprehensive Income Gains Accumulated Other Comprehensive Loss (In thousands) December 31, 2016 $ (26,123 ) $ (51,893 ) $ (1,674 ) $ (61,073 ) $ (38,309 ) $ (179,072 ) Other comprehensive income (loss) before reclassifications 3,376 (6,893 ) 1,389 16,562 (2,037 ) 12,397 Amounts reclassified from accumulated other comprehensive loss 2,826 3,663 (339 ) — — 6,150 December 31, 2017 $ (19,921 ) $ (55,123 ) $ (624 ) $ (44,511 ) $ (40,346 ) $ (160,525 ) |
Reclassification out of Accumulated Other Comprehensive Income | The following table reflects the reclassifications out of Accumulated other comprehensive loss for the year ended December 31, 2017 (in thousands): Details About Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive Loss (1) Affected Line Item in the Statement Where Net Loss is Presented Available-for-sale securities: Realized gains and losses on available-for-sale securities $ (339 ) Other (loss) income $ (339 ) Total Amortization of defined benefit pension items: Prior service costs (2) $ 8 Actuarial losses (2) 2,818 $ 2,826 Total Amortization of postretirement medical items: Prior service costs (3) $ (635 ) Actuarial losses (3) 4,298 $ 3,663 Total ____________________ (1) Amounts in parenthesis indicate debits to income/loss. (2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. (See Note 10 - Pension And Other Saving Plans to the consolidated financial statements for additional details). (3) These accumulated other comprehensive income components are included in the computation of net periodic postretirement medical cost. (See Note 9 - Postretirement Medical Benefits to the consolidated financial statements for additional details) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The table below shows the number of shares that were excluded from the calculation of diluted loss per share because their inclusion would be anti-dilutive to the calculation: Years Ended December 31, 2017 2016 2015 (In thousands) Stock options, SARs and restricted stock units 780 810 464 Total shares excluded from diluted shares calculation 780 810 464 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of income (loss) before income tax | The Company’s income (loss) before income taxes is as follows: Years Ended December 31, 2017 2016 2015 (In thousands) United States $ (73,123 ) $ (100,290 ) $ (264,146 ) Foreign (5,902 ) 23,359 25,161 Loss before income taxes $ (79,025 ) $ (76,931 ) $ (238,985 ) |
Schedule of components of income tax expense (benefit) | Income tax expense (benefit) reflected on the Consolidated Statements of Operations consisted of: Years Ended December 31, 2017 2016 2015 (In thousands) Current: Federal $ — $ (2,924 ) $ — State (11 ) 166 12 Foreign 30 841 1,441 19 (1,917 ) 1,453 Deferred: Federal (5,896 ) (41,054 ) (3,295 ) State — (5,032 ) (330 ) Foreign (13 ) (56 ) (17,718 ) (5,909 ) (46,142 ) (21,343 ) Income tax benefit $ (5,890 ) $ (48,059 ) $ (19,890 ) |
Schedule of effective income tax rate reconciliation | The effective tax rate differs from the U.S. federal statutory rate as follows: Years Ended December 31, 2017 2016 2015 (In thousands) Computed income tax benefit at statutory rate $ (27,712 ) $ (28,833 ) $ (85,757 ) Tax depletion in excess of basis (9,304 ) (10,794 ) (5,317 ) Intercompany interest (5,105 ) (6,651 ) (6,488 ) State and foreign income taxes, net (2,809 ) (4,632 ) (8,897 ) Indian coal tax credits (“ICTC”) — (9,923 ) (13,756 ) Change in state and federal tax rates 162,048 (7,548 ) (5,238 ) Change in Canadian rate 435 — (3,083 ) Foreign income inclusion 15,310 8,093 486 Alternative minimum tax refund (4,145 ) (2,923 ) — Kemmerer deferred tax asset removal — — (13,238 ) Change in valuation allowance for net deferred tax assets (136,446 ) 59,536 149,987 Release of valuation allowance arising from amalgamation — — (32,441 ) San Juan purchase accounting release of valuation allowance — (46,086 ) — Other, net 1,838 1,702 3,852 Income tax benefit $ (5,890 ) $ (48,059 ) $ (19,890 ) |
Schedule of components of deferred tax assets and liabilities | he tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities are presented below: December 31, 2017 December 31, 2016 (In thousands) Deferred tax assets: Net operating losses $ 190,687 $ 249,687 Credit carryforwards 65,114 69,170 Accrued compensation and benefits 2,993 7,399 Asset retirement obligations 111,162 156,550 Postretirement medical benefit and pension obligations 93,111 143,374 Deferred revenue 988 11,110 Black lung accrual 5,343 8,299 Unrealized gain/(loss) on derivatives — 4,774 Canadian resource pool 4,425 4,174 Lease obligations 3,707 8,415 Other 11,286 9,668 Total deferred tax assets 488,816 672,620 Valuation allowance (398,627 ) (563,338 ) Net deferred tax assets 90,189 109,282 Deferred tax liabilities: Property, plant and equipment, differences due to depreciation and amortization $ (62,312 ) $ (83,411 ) Investment in partnerships (22,850 ) (13,365 ) Finance lease receivable — (7,362 ) Other (5,027 ) (5,144 ) Total deferred tax liabilities (90,189 ) (109,282 ) Net deferred tax asset (liability) $ — $ — |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Gross value and accumulated amortization of property, plant and equipment and mine development assets under capital leases | The following shows the gross value and accumulated depreciation of property, plant, equipment and mine development assets under capital leases related primarily to the leasing of mining equipment as follows: December 31, 2017 December 31, 2016 (In thousands) Gross value $ 75,446 $ 74,335 Accumulated depreciation 51,026 32,335 |
Future minimum capital and operating lease payments | Future minimum capital and operating lease payments as of December 31, 2017 are as follows: Capital Leases Operating Leases (In thousands) 2018 $ 18,337 $ 8,705 2019 9,183 6,287 2020 4,325 1,648 2021 1,832 1,506 2022 2,040 1,534 Thereafter — 3,994 Total minimum lease payments 35,717 $ 23,674 Less imputed interest (2,604 ) Present value of minimum capital lease payments $ 33,113 |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Summarized financial information by segment | Summarized financial information by segment is as follows: Coal - U.S. (3) Coal - Canada Coal - WMLP (1) Power (2) Heritage Corporate (1) Consolidated (In thousands) December 31, 2017 Revenues $ 573,697 $ 438,273 $ 315,605 $ 77,189 $ — $ (20,196 ) $ 1,384,568 Restructuring charges — — — — — — — Depreciation, depletion, and amortization 59,764 14,292 45,466 1,650 — (118 ) 121,054 Operating income (loss) 40,063 8,898 9,822 15,274 (14,242 ) (20,603 ) 39,212 Total assets 535,341 470,744 347,403 — 16,767 18,844 1,389,099 Cash paid for capital expenditures 12,609 13,961 8,446 — — — 35,016 December 31, 2016 Revenues $ 651,713 $ 415,593 $ 349,341 $ 86,578 $ — $ (25,265 ) $ 1,477,960 Restructuring charges — — — — — — — Depreciation, depletion, and amortization 108,326 26,893 50,217 — — (169 ) 185,267 Operating (loss) income (8,063 ) 39,104 8,873 28,535 (13,409 ) (16,910 ) 38,130 Total assets 612,588 493,356 386,862 59,273 16,298 16,532 1,584,909 Cash paid for capital expenditures 14,775 19,791 11,566 — — — 46,132 December 31, 2015 Revenues $ 552,745 $ 430,416 $ 388,605 $ 84,423 $ — $ (36,671 ) $ 1,419,518 Restructuring charges — — 656 — — — 656 Depreciation, depletion, and amortization 45,650 30,323 54,504 9,908 — (57 ) 140,328 Operating income (loss) 2,213 36,830 (5,211 ) (146,868 ) (15,596 ) (17,064 ) (145,696 ) Total assets 442,143 506,058 412,895 39,762 16,146 (1,025 ) 1,415,979 Cash paid for capital expenditures 25,193 27,658 27,296 1,408 — (3,634 ) 77,921 ____________________ (1) The Coal - WMLP segment recorded revenues of $20.2 million , $25.3 million and $36.7 million for intersegment revenues to the Coal - U.S. segment for the years ended December 31, 2017 , 2016 and 2015 , respectively. Eliminations for intersegment revenues and cost of sales are presented within the Corporate segment. (2) Operating income (loss) for the Coal - WMLP segment for 2017 includes an impairment charge of $5.9 million . Operating income (loss) for the Power segment for 2015 includes an impairment charge of $133.1 million . (3) The San Juan Acquisition was completed on January 31, 2016. For the years ended December 31, 2017 and 2016, revenues for San Juan were $206.1 million and $184.4 million , respectively, and operating income was $18.3 million and $24.5 million , respectively. |
Schedule of revenue by major customers by segment | The Company derives its revenues from a few key customers. The customers from which 10% or more of consolidated revenues have been derived and the percentage of consolidated revenues from those customers is summarized as follows: Years Ended December 31, 2017 2016 2015 (In thousands) Customer A - Coal - U.S. and WMLP $ 134,791 $ 207,290 $ 234,840 Customer B - Coal - U.S. 206,148 184,364 — Customer C - Coal - Canada 191,363 174,659 180,660 Customer D - Coal - U.S. 139,063 146,503 153,585 Percentage of consolidated revenues 48 % 48 % 40 % |
QUARTERLY FINANCIAL DATA (UNA50
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial data (unaudited) | Summarized quarterly financial data is as follows: Three Months Ended March 31 June 30 September 30 December 31 (In thousands; except per share data) 2017: Revenues $ 339,737 $ 323,025 $ 358,011 $ 363,795 Operating (loss) income (11,088 ) (21,067 ) 14,255 57,112 Net (loss) income applicable to common shareholders (36,801 ) (50,382 ) (19,222 ) 35,065 Basic and diluted (loss) income per common share (1.98 ) (2.69 ) (1.03 ) 1.87 2016: Revenues $ 355,854 $ 357,597 $ 371,772 $ 392,737 Operating income (loss) 7,619 (883 ) 8,753 22,641 Net income (loss) applicable to common shareholders 27,407 (28,589 ) (18,368 ) (7,551 ) Basic and diluted income (loss) per common share 1.50 (1.54 ) (0.99 ) (0.41 ) |
SUMMARY OF SIGNIFICANT ACCOUN51
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Acquisition and additional information) (Details) | 12 Months Ended |
Dec. 31, 2017mines | |
Business Acquisition [Line Items] | |
Ownership percentage in joint venture (percent) | 50.00% |
CANADA | |
Business Acquisition [Line Items] | |
Number of mines | 6 |
Genesee Mine [Member] | Minimum [Member] | |
Business Acquisition [Line Items] | |
Recognition period for finance income | 3 years |
Genesee Mine [Member] | Maximum [Member] | |
Business Acquisition [Line Items] | |
Recognition period for finance income | 27 years |
SUMMARY OF SIGNIFICANT ACCOUN52
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Property, Plant and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Building and Building Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property, plant and equipment | 5 years |
Building and Building Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property, plant and equipment | 40 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property, plant and equipment | 1 year |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property, plant and equipment | 36 years |
Deferred Longwall Costs [Member] | |
Property, Plant and Equipment [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 1 year |
SUMMARY OF SIGNIFICANT ACCOUN53
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Recently Adopted Pronouncements) (Details) - Accounting Standards Update 2016-16 [Member] $ in Millions | Jan. 01, 2017USD ($) |
Accumulated Deficit | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect of new accounting principle in period of adoption | $ (0.4) |
Other Assets [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect of new accounting principle in period of adoption | $ (0.4) |
ACQUISITIONS - Summary of purch
ACQUISITIONS - Summary of purchase consideration and allocation of purchase consideration (Details) - USD ($) | Aug. 01, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 01, 2016 | Jan. 31, 2016 |
Business Acquisition [Line Items] | |||||
Surety bonds outstanding to secure reclamation obligations | $ 617,800,000 | ||||
San Juan Coal Company [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash purchase price | $ 121,000,000 | ||||
Allocation of purchase consideration: | |||||
Inventories | 8,800,000 | ||||
Total current assets | 8,800,000 | ||||
Land and mineral rights | 143,900,000 | ||||
Plant and equipment | 74,600,000 | ||||
Other assets | 1,300,000 | ||||
Total assets | 228,600,000 | ||||
Trade payables and other accrued liabilities | (13,400,000) | ||||
Production taxes | (2,000,000) | ||||
Asset retirement obligations | (700,000) | ||||
Total current liabilities | (16,100,000) | ||||
Asset retirement obligations, less current portion | (43,500,000) | ||||
Postretirement medical benefits | 1,900,000 | ||||
Deferred income taxes | 46,100,000 | ||||
Total Liabilities | (107,600,000) | ||||
Net fair value | $ 121,000,000 | ||||
Westmoreland Resource Partners LP [Member] | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage in partnership (percent) | 93.94% | ||||
Quarterly distributions (USD per unit) | $ 0.22 | ||||
Kemmerer Drop [Member] | |||||
Business Acquisition [Line Items] | |||||
Gain (loss) recognized on the Drop | 0 | ||||
Allocation of purchase consideration: | |||||
Net fair value | $ 102,600,000 | ||||
Westmoreland Kemmerer, LLC [Member] | |||||
Business Acquisition [Line Items] | |||||
Ownership interest in LLC (percent) | 100.00% | ||||
Aggregate consideration received from contribution of LLC | $ 230,000,000 | ||||
Cash consideration received | 115,000,000 | ||||
WMLP Series A Convertible Units [Member] | Westmoreland Kemmerer, LLC [Member] | |||||
Business Acquisition [Line Items] | |||||
Partnership units received as consideration | $ 115,000,000 | ||||
Term Notes [Member] | San Juan Loan [Member] | |||||
Business Acquisition [Line Items] | |||||
Stated interest rate | 7.25% | 7.25% | |||
Debt Instrument, Final Interest Rate, Stated Percentage | 14.25% | ||||
Purchase consideration: | |||||
Debt Instrument, Face Amount | $ 125,000,000 | $ 125,000,000 | |||
Westmoreland San Juan, LLC [Member] | San Juan Coal Company [Member] | |||||
Business Acquisition [Line Items] | |||||
Surety bonds outstanding to secure reclamation obligations | $ 125,200,000 |
ACQUISITIONS - Summary of Pro F
ACQUISITIONS - Summary of Pro Forma Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Total Revenues | |||||||||||
As reported | $ 363,795 | $ 358,011 | $ 323,025 | $ 339,737 | $ 392,737 | $ 371,772 | $ 357,597 | $ 355,854 | $ 1,384,568 | $ 1,477,960 | $ 1,419,518 |
Operating Income | |||||||||||
As reported | 57,112 | 14,255 | (21,067) | (11,088) | 22,641 | 8,753 | (883) | 7,619 | 39,212 | 38,130 | (145,696) |
Net income (loss) applicable to common shareholders | |||||||||||
As reported | $ 35,065 | $ (19,222) | $ (50,382) | $ (36,801) | $ (7,551) | $ (18,368) | $ (28,589) | $ 27,407 | $ (71,340) | $ (27,101) | $ (213,645) |
Net income (loss) per share applicable to common shareholders | |||||||||||
As reported (in USD per share) | $ 1.87 | $ (1.03) | $ (2.69) | $ (1.98) | $ (0.41) | $ (0.99) | $ (1.54) | $ 1.50 | $ (3.82) | $ (1.47) | $ (11.93) |
San Juan Coal Company [Member] | |||||||||||
Total Revenues | |||||||||||
Pro forma | $ 1,504,235 | $ 1,714,043 | |||||||||
Operating Income | |||||||||||
Pro forma | 39,225 | (106,606) | |||||||||
Net income (loss) applicable to common shareholders | |||||||||||
Pro forma | $ (26,676) | $ (187,139) | |||||||||
Net income (loss) per share applicable to common shareholders | |||||||||||
Pro forma (in USD per share) | $ (1.44) | $ (10.45) |
VARIABLE INTEREST ENTITY (Detai
VARIABLE INTEREST ENTITY (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Variable Interest Entity [Line Items] | ||
Ownership interest in VIE (percent) | 100.00% | |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Assets | $ 203,737 | $ 268,910 |
Liabilities | 167,529 | 243,884 |
Net carrying amount | $ 36,208 | $ 25,026 |
LOSS ON IMPAIRMENT (Details)
LOSS ON IMPAIRMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Loss on impairment | $ 5,872 | $ 0 | $ 136,210 |
Coal - WMLP [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Loss on impairment | $ 5,900 | ||
Power [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Loss on impairment | 133,100 | ||
Coal Canada Segment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Loss on impairment | $ 3,100 |
INVENTORIES (Detail)
INVENTORIES (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Coal stockpiles | $ 38,145 | $ 44,692 |
Materials and supplies | 73,517 | 84,444 |
Reserve for obsolete inventory | (4,867) | (3,621) |
Total | $ 106,795 | $ 125,515 |
RESTRICTED INVESTMENTS, RECLA59
RESTRICTED INVESTMENTS, RECLAMATION DEPOSITS AND BOND COLLATERAL - Carrying Value and Estimated Fair Value of Restricted Investments and Bond Collateral (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investment [Line Items] | ||
Restricted investments and bond collateral | $ 200,194 | $ 219,275 |
Restricted Investments and Bond Collateral [Member] | ||
Investment [Line Items] | ||
Cash and cash equivalents | 42,549 | 66,860 |
Time deposits | 2,467 | 2,473 |
Available-for-sale | 78,157 | 75,580 |
Restricted investments and bond collateral | 123,173 | 144,913 |
Reclamation Deposits [Member] | ||
Investment [Line Items] | ||
Cash and cash equivalents | 6,643 | 2,673 |
Time deposits | 0 | 0 |
Available-for-sale | 70,378 | 71,689 |
Restricted investments and bond collateral | 77,021 | 74,362 |
Restricted Investments [Member] | ||
Investment [Line Items] | ||
Cash and cash equivalents | 49,192 | 69,533 |
Time deposits | 2,467 | 2,473 |
Available-for-sale | 148,535 | 147,269 |
Restricted investments and bond collateral | $ 200,194 | $ 219,275 |
RESTRICTED INVESTMENTS, RECLA60
RESTRICTED INVESTMENTS, RECLAMATION DEPOSITS AND BOND COLLATERAL - Cost Basis, Gross Unrealized Holding Gains and Fair Value of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Restricted Investments and Bond Collateral [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost basis | $ 78,564 | $ 76,558 |
Gross unrealized holding gains | 521 | 251 |
Gross unrealized holding losses | (928) | (1,229) |
Fair value | 78,157 | 75,580 |
Reclamation Deposits [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost basis | 70,576 | 72,381 |
Gross unrealized holding gains | 617 | 453 |
Gross unrealized holding losses | (815) | (1,145) |
Fair value | 70,378 | 71,689 |
Restricted Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost basis | 149,140 | 148,939 |
Gross unrealized holding gains | 1,138 | 704 |
Gross unrealized holding losses | (1,743) | (2,374) |
Fair value | $ 148,535 | $ 147,269 |
RESTRICTED INVESTMENTS, RECLA61
RESTRICTED INVESTMENTS, RECLAMATION DEPOSITS AND BOND COLLATERAL - Available for Sale Maturity Schedule (Details) - Restricted Investments [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Within one year, Amortized cost | $ 13,960 | |
Due in five years or less, Amortized cost | 60,827 | |
Due after five years to ten years, Amortized cost | 32,381 | |
Due in more than ten years, Amortized cost | 41,972 | |
Cost basis | 149,140 | $ 148,939 |
Within one year, Fair Value | 13,423 | |
Due in five years or less, Fair Value | 60,447 | |
Due after five years to ten years, Fair Value | 32,527 | |
Due in more than ten years, Fair Value | 42,138 | |
Fair value | $ 148,535 |
RESTRICTED INVESTMENTS, RECLA62
RESTRICTED INVESTMENTS, RECLAMATION DEPOSITS AND BOND COLLATERAL - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Restricted Investments and Bond Collateral [Abstract] | |||
Gain on sale of available-for-sale securities held as restricted investments and bond collateral (less than $0.1 million for 2013) | $ (0.3) | $ 0.2 | $ 0.1 |
INTANGIBLE ASSETS AND LIABILI63
INTANGIBLE ASSETS AND LIABILITIES - Favorable Lease Agreements (Details) - Favorable Lease Agreements [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Estimated remaining life | 12 years | 13 years |
Cost | $ 32,174 | $ 32,174 |
Accumulated Amortization | 6,327 | 4,142 |
Net Carrying Value | $ 25,847 | $ 28,032 |
INTANGIBLE ASSETS AND LIABILI64
INTANGIBLE ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 2,200 | $ 2,200 | $ 2,100 |
Amortization of intangible liabilities | 900 | $ 900 | $ 900 |
Amount of Amortization to Recognize in Expense | |||
2,018 | 2,184 | ||
2,019 | 2,184 | ||
2,020 | 2,184 | ||
2,021 | 2,184 | ||
2,022 | $ 2,184 |
DEBT AND LINES OF CREDIT - Outs
DEBT AND LINES OF CREDIT - Outstanding Lines of Credit and Long-Term Debt (Detail) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 01, 2016 | Jan. 31, 2016 | Dec. 31, 2015 | Jan. 22, 2015 | Dec. 31, 2014 | Dec. 22, 2014 | Dec. 16, 2014 |
Debt Instrument [Line Items] | |||||||||
Total debt outstanding | $ 1,075,908,000 | $ 1,146,597,000 | |||||||
Less debt discount and issuance costs, net | (27,501,000) | (37,531,000) | |||||||
Less current installments, net of debt discount and issuance costs | (983,427,000) | (86,272,000) | |||||||
Total non-current debt | 64,980,000 | 1,022,794,000 | |||||||
Capital Lease Obligations [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt outstanding | 33,113,000 | 55,061,000 | |||||||
Other [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt outstanding | 2,826,000 | 16,464,000 | |||||||
Senior Secured Notes Due 2021 [Member] | Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Issuance amount | $ 350,000,000 | $ 350,000,000 | |||||||
Total debt outstanding | 350,000,000 | 350,000,000 | |||||||
Term Loan Facility Due 2020 [Member] | Term Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Issuance amount | $ 75,000,000 | $ 425,000,000 | |||||||
Total debt outstanding | 320,595,000 | 323,883,000 | |||||||
San Juan Loan [Member] | Term Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Issuance amount | $ 125,000,000 | $ 125,000,000 | |||||||
Total debt outstanding | 56,640,000 | 95,000,000 | |||||||
WMLP Term Debt Due 2018 [Member] | Term Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Issuance amount | $ 295,000,000 | $ 175,000,000 | |||||||
Total debt outstanding | 312,734,000 | 306,189,000 | |||||||
Revolving Credit Facility [Member] | Line of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt outstanding | $ 0 | $ 0 |
DEBT AND LINES OF CREDIT - Aggr
DEBT AND LINES OF CREDIT - Aggregate Contractual Debt Maturities of All Long-Term Debt and Lines of Credit (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Maturities of Long-term Debt [Abstract] | |
2,018 | $ 338,327 |
2,019 | 21,438 |
2,020 | 341,316 |
2,021 | 22,829 |
2,022 | 351,998 |
Thereafter | 0 |
Total | 1,075,908 |
Debt Held by WMLP [Member] | |
Maturities of Long-term Debt [Abstract] | |
2,018 | 316,982 |
2,019 | 4,175 |
2,020 | 1,768 |
2,021 | 1,664 |
2,022 | 1,998 |
Thereafter | 0 |
Total | 326,587 |
All Other Debt [Member] | |
Maturities of Long-term Debt [Abstract] | |
2,018 | 21,345 |
2,019 | 17,263 |
2,020 | 339,548 |
2,021 | 21,165 |
2,022 | 350,000 |
Thereafter | 0 |
Total | $ 749,321 |
DEBT AND LINES OF CREDIT - Addi
DEBT AND LINES OF CREDIT - Additional Information (Detail) - USD ($) | Aug. 01, 2015 | Jan. 22, 2015 | Dec. 22, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Feb. 01, 2016 | Jan. 31, 2016 | Dec. 31, 2014 | Dec. 16, 2014 |
Senior Notes: | |||||||||||
Aggregate principal amount | $ 1,075,908,000 | ||||||||||
Amortization of deferred financing costs | 10,778,000 | $ 11,537,000 | $ 10,601,000 | ||||||||
Capital leases entered into during the period | 1,300,000 | ||||||||||
Revolving Credit Facility [Member] | |||||||||||
Senior Notes: | |||||||||||
Line of credit facility maximum borrowing capacity | $ 50,000,000 | ||||||||||
Capital Lease Obligations [Member] | |||||||||||
Senior Notes: | |||||||||||
Weighted average interest rate (percent) | 5.20% | 4.64% | |||||||||
Term Loan Facility Due 2020 [Member] | Term Notes [Member] | |||||||||||
Senior Notes: | |||||||||||
Discount rate used for issuance of notes (percent) | 2.50% | ||||||||||
Stated interest rate | 8.19% | ||||||||||
Additional financing obtained per the Amended Financing Agreement | $ 75,000,000 | $ 425,000,000 | |||||||||
Aggregate principal amount | 425,000,000 | ||||||||||
Proceeds from term loan | $ 71,000,000 | ||||||||||
Discount rate used for issuance of add-on term loan (percent) | 2.50% | ||||||||||
Broker fee (percent) | 1.50% | ||||||||||
Consent fee (percent) | 1.17% | ||||||||||
Additional debt issuance cost | $ 100,000 | ||||||||||
Quarterly principal payment | $ 1,100,000 | ||||||||||
San Juan Loan [Member] | Term Notes [Member] | |||||||||||
Senior Notes: | |||||||||||
Stated interest rate | 7.25% | 7.25% | |||||||||
Capitalized debt issuance costs | $ 3,100,000 | ||||||||||
Additional financing obtained per the Amended Financing Agreement | $ 125,000,000 | $ 125,000,000 | |||||||||
Discount rate used for issuance of add-on term loan (percent) | 6.70% | ||||||||||
Margin rate (percent) | 14.25% | ||||||||||
Interest rate at year period end | 10.63% | ||||||||||
Coal supply agreement decrease, if loan not repaid by January 1, 2019 (percent) | 10.00% | ||||||||||
Coal supply agreement decrease, if loan not repaid by January 1, 2021 (percent) | 15.00% | ||||||||||
Senior Secured Notes Due 2021 [Member] | Senior Notes [Member] | |||||||||||
Senior Notes: | |||||||||||
Discount rate used for issuance of notes (percent) | 1.292% | ||||||||||
Stated interest rate | 8.75% | ||||||||||
Capitalized debt issuance costs | $ 10,200,000 | $ 8,400,000 | |||||||||
Additional financing obtained per the Amended Financing Agreement | $ 350,000,000 | $ 350,000,000 | |||||||||
Redemption price as percent of principal (percent) | 100.00% | ||||||||||
Percentage of aggregate principal that may be redeemed (percent) | 35.00% | ||||||||||
Price, as a percentage of face value (percent) | 108.75% | ||||||||||
WMLP Term Debt Due 2018 [Member] | |||||||||||
Senior Notes: | |||||||||||
Restricted distributions | $ 15,000,000 | ||||||||||
Consolidated net leverage ratio | 3.75 | ||||||||||
Fixed charge coverage ratio | 1 | ||||||||||
Restrictive covenant, minimum liquidity | $ 7,500,000 | ||||||||||
WMLP Term Debt Due 2018 [Member] | Term Notes [Member] | |||||||||||
Senior Notes: | |||||||||||
Capitalized debt issuance costs | 8,600,000 | ||||||||||
Additional financing obtained per the Amended Financing Agreement | $ 295,000,000 | $ 175,000,000 | |||||||||
Interest rate at year period end | 10.19% | ||||||||||
Option for additional term loan | $ 120,000,000 | ||||||||||
Fixed portion of the effective interest rate (percent) | 8.50% | ||||||||||
Outstanding balance | $ 287,300,000 | ||||||||||
Accrued Paid-in-kind Interest | $ 25,400,000 | ||||||||||
Paid-in-kind interest (percent) | 3.00% | 3.00% | |||||||||
Amortization of deferred financing costs | $ 9,300,000 | ||||||||||
Credit Facility Seasonal Increase to Borrowing Capacity [Member] | Revolving Credit Facility [Member] | |||||||||||
Senior Notes: | |||||||||||
Line of credit facility maximum borrowing capacity | 60,000,000 | ||||||||||
U.S. Borrowers [Member] | Revolving Credit Facility [Member] | |||||||||||
Senior Notes: | |||||||||||
Line of credit facility maximum borrowing capacity | 30,000,000 | ||||||||||
USD Denominated Sub-facility with Seasonal Increase [Member] | Revolving Credit Facility [Member] | |||||||||||
Senior Notes: | |||||||||||
Line of credit facility maximum borrowing capacity | 35,000,000 | ||||||||||
Canadian Borrowers [Member] | Revolving Credit Facility [Member] | |||||||||||
Senior Notes: | |||||||||||
Line of credit facility maximum borrowing capacity | 20,000,000 | ||||||||||
CAD Denominated Sub-facility with Seasonal Increase [Member] | Revolving Credit Facility [Member] | |||||||||||
Senior Notes: | |||||||||||
Line of credit facility maximum borrowing capacity | $ 25,000,000 | ||||||||||
One, Two, Three, or Six Month LIBOR [Member] | Term Loan Facility Due 2020 [Member] | Term Notes [Member] | |||||||||||
Senior Notes: | |||||||||||
Spread on basis, percentage | 6.50% | ||||||||||
Base Rate [Member] | Revolving Credit Facility [Member] | |||||||||||
Senior Notes: | |||||||||||
Spread on basis, percentage | 0.75% | ||||||||||
LIBOR [Member] | Revolving Credit Facility [Member] | |||||||||||
Senior Notes: | |||||||||||
Spread on basis, percentage | 2.75% | ||||||||||
Unused line fee (percent) | 0.50% | ||||||||||
LIBOR [Member] | WMLP Term Debt Due 2018 [Member] | Term Notes [Member] | |||||||||||
Senior Notes: | |||||||||||
Spread on basis, percentage | 0.75% | ||||||||||
Interest rate at year period end | 1.69% | ||||||||||
Federal Funds Rate [Member] | Senior Secured Notes Due 2021 [Member] | Senior Notes [Member] | |||||||||||
Senior Notes: | |||||||||||
Spread on basis, percentage | 0.05% | ||||||||||
One-month LIBOR [Member] | Senior Secured Notes Due 2021 [Member] | Senior Notes [Member] | |||||||||||
Senior Notes: | |||||||||||
Spread on basis, percentage | 1.00% | ||||||||||
Highest Rate [Member] | Senior Secured Notes Due 2021 [Member] | Senior Notes [Member] | |||||||||||
Senior Notes: | |||||||||||
Spread on basis, percentage | 5.50% | ||||||||||
Westmoreland Kemmerer, LLC [Member] | Term Loan Facility Due 2020 [Member] | Term Notes [Member] | |||||||||||
Senior Notes: | |||||||||||
Repayments of debt | $ 94,100,000 | ||||||||||
Minimum [Member] | WMLP Term Debt Due 2018 [Member] | Term Notes [Member] | |||||||||||
Senior Notes: | |||||||||||
Paid-in-kind interest (percent) | 1.00% | ||||||||||
Maximum [Member] | WMLP Term Debt Due 2018 [Member] | Term Notes [Member] | |||||||||||
Senior Notes: | |||||||||||
Paid-in-kind interest (percent) | 3.00% | ||||||||||
San Juan Coal Company [Member] | |||||||||||
Senior Notes: | |||||||||||
Cash purchase price | $ 121,000,000 |
DEBT AND LINES OF CREDIT - Revo
DEBT AND LINES OF CREDIT - Revolving Credit Facility (Details) - Revolving Credit Facility [Member] | Dec. 31, 2017USD ($) |
Line of Credit Facility [Line Items] | |
Line of credit maximum availability - without seasonal increase from June 15 to August 31 | $ 50,000,000 |
Letters of credit outstanding | 2,400,000 |
Borrowing base restrictions | 18,900,000 |
Line of credit draws | 0 |
Line of credit availability | 28,700,000 |
U.S. Borrowers [Member] | |
Line of Credit Facility [Line Items] | |
Line of credit maximum availability - without seasonal increase from June 15 to August 31 | 30,000,000 |
Letters of credit outstanding | 2,400,000 |
Borrowing base restrictions | 14,400,000 |
Line of credit draws | 0 |
Line of credit availability | 13,200,000 |
Canadian Borrowers [Member] | |
Line of Credit Facility [Line Items] | |
Line of credit maximum availability - without seasonal increase from June 15 to August 31 | 20,000,000 |
Letters of credit outstanding | 0 |
Borrowing base restrictions | 4,500,000 |
Line of credit draws | 0 |
Line of credit availability | $ 15,500,000 |
POSTRETIREMENT MEDICAL BENEFI69
POSTRETIREMENT MEDICAL BENEFITS - Postretirement Medicial Benefit Obligations Balance Sheet Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Amounts recognized in the balance sheet consist of: | |||
Noncurrent liabilities | $ (43,585) | $ (43,982) | |
Postretirement Medical Benefits [Member] | |||
Change in benefit obligation: | |||
Net benefit obligation at beginning of year | 323,601 | 299,373 | |
Liability acquired | 0 | 1,851 | |
Service cost | 3,018 | 3,270 | $ 4,217 |
Interest cost | 12,651 | 12,353 | 11,629 |
Plan participant contributions | 59 | 136 | |
Actuarial loss (gain) | 6,893 | 24,821 | |
Gross benefits paid | (15,457) | (16,914) | |
Federal subsidy on benefits paid | 1,376 | 1,466 | |
Curtailments | 0 | (2,755) | |
Net benefit obligation at end of year | 332,141 | 323,601 | $ 299,373 |
Change in plan assets: | |||
Employer contributions | 15,398 | 16,778 | |
Plan participant contributions | 59 | 136 | |
Gross benefits paid | (15,457) | (16,914) | |
Fair value of plan assets at end of year | 0 | 0 | |
Unfunded status at end of year | (332,141) | (323,601) | |
Amounts recognized in the balance sheet consist of: | |||
Current liabilities | (14,734) | (14,892) | |
Noncurrent liabilities | (317,407) | (308,709) | |
Accumulated other comprehensive loss | 55,123 | 51,893 | |
Net amount recognized at end of year | (277,018) | (271,708) | |
Amounts recognized in accumulated other comprehensive loss consist of: | |||
Net actuarial loss | 58,301 | 55,706 | |
Prior service cost | (3,178) | (3,813) | |
Accumulated other comprehensive loss | $ 55,123 | $ 51,893 |
POSTRETIREMENT MEDICAL BENEFI70
POSTRETIREMENT MEDICAL BENEFITS - Postretirement Medical Benefit Obligations Income Statement Disclosures (Details) - Postretirement Medical Benefits [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Components of net periodic benefit cost: | |||
Service cost | $ 3,018 | $ 3,270 | $ 4,217 |
Interest cost | 12,651 | 12,353 | 11,629 |
Amortization of: | |||
Prior service cost (credit) | (635) | (636) | (636) |
Actuarial loss | 4,298 | 1,895 | 1,944 |
Total net periodic benefit cost | 19,332 | 16,882 | 17,154 |
Net periodic postretirement medical benefit costs relating to current and former mining operations: | |||
Total net periodic benefit cost | 19,332 | 16,882 | 17,154 |
Former Mining Operations [Member] | |||
Amortization of: | |||
Total net periodic benefit cost | 9,222 | 8,540 | 8,137 |
Net periodic postretirement medical benefit costs relating to current and former mining operations: | |||
Total net periodic benefit cost | 9,222 | 8,540 | 8,137 |
Current Operations [Member] | |||
Amortization of: | |||
Total net periodic benefit cost | 10,110 | 8,342 | 9,017 |
Net periodic postretirement medical benefit costs relating to current and former mining operations: | |||
Total net periodic benefit cost | $ 10,110 | $ 8,342 | $ 9,017 |
POSTRETIREMENT MEDICAL BENEFI71
POSTRETIREMENT MEDICAL BENEFITS Assumptions Used (Details) - Postretirement Medical Benefits [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Assumed health care trend rates: | |||
Health care cost trend rate assumed for next year | 6.50% | 6.75% | |
Rate to which the cost trend is assumed to decline (ultimate trend rate) | 4.75% | 4.75% | |
Year that the trend rate reaches the ultimate trend rate | 2,025 | 2,025 | |
Effect of a 1% change in the health care cost trend rate: | |||
Effect of 1% increase on service and interest cost components | $ 2,743 | ||
Effect of 1% decrease on service and interest cost components | (2,125) | ||
Effect of 1% increase on postretirement medical benefit obligation | 48,294 | ||
Effect of 1% decrease on postretirement medical benefit obligation | $ (39,005) | ||
Minimum [Member] | |||
Weighted-average discount rates used in calculations: | |||
Rate used to determine benefit obligations as of the end of the year shown | 3.45% | 3.90% | |
Rate used to determine net periodic benefit cost for the year shown | 3.90% | 4.10% | 3.75% |
Maximum [Member] | |||
Weighted-average discount rates used in calculations: | |||
Rate used to determine benefit obligations as of the end of the year shown | 3.85% | 4.45% | |
Rate used to determine net periodic benefit cost for the year shown | 4.45% | 4.65% | 4.25% |
POSTRETIREMENT MEDICAL BENEFI72
POSTRETIREMENT MEDICAL BENEFITS Expected Future Cash Flows (Details) - Postretirement Medical Benefits [Member] $ in Thousands | Dec. 31, 2017USD ($) |
Expected future payments, postretirement medical benefits: | |
2018 - Postretirement Medical Benefits | $ 16,368 |
2019 - Postretirement Medical Benefits | 16,889 |
2020 - Postretirement Medical Benefits | 17,399 |
2021 - Postretirement Medical Benefits | 17,802 |
2022 - Postretirement Medical Benefits | 18,261 |
Years 2023 - 2027 - Postretirement Medical Benefits | 94,618 |
Expected future receipts, Medicare D Subsidy: | |
2018 - Medicare D Subsidy | (1,634) |
2019 - Medicare D Subsidy | (1,694) |
2020 - Medicare D Subsidy | (1,751) |
2021 - Medicare D Subsidy | (1,807) |
2022 - Medicare D Subsidy | (1,860) |
Years 2023 - 2027 - Medicare D Subsidy | (9,702) |
Expected future payments, net | |
2018 - Net Postretirement Medical Benefits | 14,734 |
2019 - Net Postretirement Medical Benefits | 15,195 |
2020 - Net Postretirement Medical Benefits | 15,648 |
2021 - Net Postretirement Medical Benefits | 15,995 |
2022 - Net Postretirement Medical Benefits | 16,401 |
Years 2023 - 2027 - Net Postretirement Medical Benefits | $ 84,916 |
POSTRETIREMENT MEDICAL BENEFI73
POSTRETIREMENT MEDICAL BENEFITS Pneumoconiosis (Black Lung) Benefit Obligation (Details) - Pneumoconiosis (Black Lung) Benefits [Member] - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Pneumoconiosis Benefit Obligation [Abstract] | ||
Net benefit obligation at end of year | $ 18.2 | $ 17.6 |
Rate used to determine benefit obligations as of the end of the year shown | 3.37% | 3.70% |
POSTRETIREMENT MEDICAL BENEFI74
POSTRETIREMENT MEDICAL BENEFITS - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Workers' Compensation Disclosure [Abstract] | |||
Workers' compensation, beginning of year (including current portion) | $ 5,040 | $ 5,658 | |
Accretion | 167 | 115 | |
Claims paid | (512) | (399) | |
Actuarial changes | (426) | (334) | |
Workers' compensation, end of year | 4,269 | 5,040 | $ 5,658 |
Less current portion | (489) | (541) | |
Workers’ compensation, less current portion | 3,780 | 4,499 | |
Postretirement Medical Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Expected Amortization, Next Fiscal Year | 3,900 | ||
Combined Benefit Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Multiemployer Plan, Contributions by Employer | $ 1,445 | $ 1,594 | $ 1,794 |
PENSION AND OTHER SAVING PLAN -
PENSION AND OTHER SAVING PLAN - Balance Sheet Disclosures (Details) - Pension [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Change in benefit obligation: | |||
Net benefit obligation at beginning of year | $ 272,489 | $ 184,681 | |
Liability acquired | 0 | 89,300 | |
Service cost | 1,510 | 1,634 | $ 1,732 |
Interest cost | 10,471 | 10,635 | 7,397 |
Actuarial loss (gain) | 11,275 | 1,018 | |
Benefits and expenses paid | (13,691) | (14,064) | |
Settlements and curtailments | 2,233 | 992 | |
Foreign currency exchange rate changes | 1,006 | 277 | |
Net benefit obligation at end of year | 280,827 | 272,489 | 184,681 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 236,042 | 141,137 | |
Assets acquired | 0 | 90,600 | |
Actual return on plan assets | 29,207 | 18,053 | |
Employer contributions | 1,152 | 970 | |
Benefits and expenses paid | (13,691) | (14,064) | |
Settlements | (2,233) | (992) | |
Foreign currency exchange rate changes | 843 | 338 | |
Fair value of plan assets at end of year | 251,320 | 236,042 | $ 141,137 |
Unfunded status at end of year | (29,507) | (36,447) | |
Amounts recognized in the accompanying balance sheet consist of: | |||
Noncurrent asset, included in Other assets | 14,427 | 7,893 | |
Current liability, included in Other current liabilities | (349) | (358) | |
Noncurrent liability | (43,585) | (43,982) | |
Accumulated other comprehensive loss | 19,921 | 26,123 | |
Net amount recognized at end of year | (9,586) | (10,324) | |
Amounts recognized in accumulated other comprehensive loss consist of: | |||
Net actuarial loss | 19,860 | 26,054 | |
Prior service cost | 61 | 69 | |
Accumulated other comprehensive loss (gain) | $ 19,921 | $ 26,123 |
PENSION AND OTHER SAVINGS PLANS
PENSION AND OTHER SAVINGS PLANS - Income Statement Disclosures (Details) - Pension [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Components of net periodic benefit cost: | |||
Service cost | $ 1,510 | $ 1,634 | $ 1,732 |
Interest cost | 10,471 | 10,635 | 7,397 |
Expected return on plan assets | (14,556) | (14,025) | (9,959) |
Settlements and curtailments | 796 | 186 | 0 |
Prior service cost (credit) | 8 | 8 | 8 |
Actuarial loss | 2,818 | 4,167 | 3,442 |
Total net periodic benefit cost | $ 1,047 | $ 2,605 | $ 2,620 |
PENSION AND OTHER SAVING PLAN77
PENSION AND OTHER SAVING PLANS - Assumptions Used (Details) - Pension [Member] | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Rate used to determine benefit obligations as of the end of the year shown | 3.30% | 3.60% | |
Rate used to determine net periodic benefit cost for the year shown | 3.60% | 3.90% | 3.60% |
Expected return on plan assets, percentage | 1.50% | 1.75% | 3.66% |
Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Rate used to determine benefit obligations as of the end of the year shown | 3.55% | 4.05% | |
Rate used to determine net periodic benefit cost for the year shown | 4.05% | 4.25% | 3.90% |
Expected return on plan assets, percentage | 6.80% | 7.10% | 7.10% |
PENSION AND OTHER SAVING PLAN78
PENSION AND OTHER SAVING PLANS - Information on Plan Assets (Details) - Pension [Member] - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | |||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | $ 7,893 | |||
Unrealized (loss) gain | 29,207 | $ 18,053 | ||
Settlements | (2,233) | (992) | ||
Plan assets, ending balance | 14,427 | 7,893 | ||
Quoted prices in active markets for identical assets - Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | 23,124 | |||
Plan assets, ending balance | 24,414 | 23,124 | ||
Significant other observable inputs - Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | 212,889 | |||
Plan assets, ending balance | 226,896 | 212,889 | ||
Significant unobservable inputs, Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | 29 | |||
Plan assets, ending balance | 10 | 29 | ||
Large-cap pooled separate accounts [Member] | Quoted prices in active markets for identical assets - Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | [1] | 0 | ||
Plan assets, ending balance | 0 | 0 | [1] | |
Large-cap pooled separate accounts [Member] | Significant other observable inputs - Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | [1] | 61,799 | ||
Plan assets, ending balance | 65,574 | 61,799 | [1] | |
Large-cap pooled separate accounts [Member] | Significant unobservable inputs, Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | [1] | 0 | ||
Plan assets, ending balance | 0 | 0 | [1] | |
International blend [Member] | Quoted prices in active markets for identical assets - Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | [2] | 0 | ||
Plan assets, ending balance | 0 | 0 | [2] | |
International blend [Member] | Significant other observable inputs - Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | [2] | 10,401 | ||
Plan assets, ending balance | 11,639 | 10,401 | [2] | |
International blend [Member] | Significant unobservable inputs, Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | [2] | 0 | ||
Plan assets, ending balance | $ 0 | 0 | [2] | |
Fixed income domestic [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Corporate bond maturity period | 15 years | |||
Fixed income domestic [Member] | Quoted prices in active markets for identical assets - Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | [3] | $ 0 | ||
Plan assets, ending balance | 0 | 0 | [3] | |
Fixed income domestic [Member] | Significant other observable inputs - Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | [3] | 21,732 | ||
Plan assets, ending balance | 24,958 | 21,732 | [3] | |
Fixed income domestic [Member] | Significant unobservable inputs, Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | [3] | 0 | ||
Plan assets, ending balance | 0 | 0 | [3] | |
Fixed income long term [Member] | Quoted prices in active markets for identical assets - Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | [4] | 0 | ||
Plan assets, ending balance | 0 | 0 | [4] | |
Fixed income long term [Member] | Significant other observable inputs - Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | [4] | 105,640 | ||
Plan assets, ending balance | 111,683 | 105,640 | [4] | |
Fixed income long term [Member] | Significant unobservable inputs, Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | [4] | 0 | ||
Plan assets, ending balance | 0 | 0 | [4] | |
Stable value [Member] | Quoted prices in active markets for identical assets - Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | [5] | 0 | ||
Plan assets, ending balance | 0 | 0 | [5] | |
Stable value [Member] | Significant other observable inputs - Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | [5] | 13,317 | ||
Plan assets, ending balance | 13,042 | 13,317 | [5] | |
Stable value [Member] | Significant unobservable inputs, Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | [5] | 0 | ||
Plan assets, ending balance | 0 | 0 | [5] | |
Registered investment companies - growth fund [Member] | Quoted prices in active markets for identical assets - Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | 18,515 | |||
Plan assets, ending balance | 20,668 | 18,515 | ||
Registered investment companies - growth fund [Member] | Significant other observable inputs - Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | 0 | |||
Plan assets, ending balance | 0 | 0 | ||
Registered investment companies - growth fund [Member] | Significant unobservable inputs, Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | 0 | |||
Plan assets, ending balance | 0 | 0 | ||
Limited partnerships and limited liability companies [Member] | Quoted prices in active markets for identical assets - Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | 0 | |||
Plan assets, ending balance | 0 | 0 | ||
Limited partnerships and limited liability companies [Member] | Significant other observable inputs - Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | 0 | |||
Plan assets, ending balance | 0 | 0 | ||
Limited partnerships and limited liability companies [Member] | Significant unobservable inputs, Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | 29 | |||
Plan assets, ending balance | 10 | 29 | ||
Westmoreland Coal common stock [Member] | Quoted prices in active markets for identical assets - Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | 819 | |||
Plan assets, ending balance | 56 | 819 | ||
Westmoreland Coal common stock [Member] | Significant other observable inputs - Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | 0 | |||
Plan assets, ending balance | 0 | 0 | ||
Westmoreland Coal common stock [Member] | Significant unobservable inputs, Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | 0 | |||
Plan assets, ending balance | 0 | 0 | ||
Cash and cash equivalents [Member] | Quoted prices in active markets for identical assets - Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | 3,790 | |||
Plan assets, ending balance | 3,690 | 3,790 | ||
Cash and cash equivalents [Member] | Significant other observable inputs - Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | 0 | |||
Plan assets, ending balance | 0 | 0 | ||
Cash and cash equivalents [Member] | Significant unobservable inputs, Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | 0 | |||
Plan assets, ending balance | 0 | 0 | ||
Fair Value [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | 236,042 | |||
Plan assets, ending balance | 251,320 | 236,042 | ||
Fair Value [Member] | Large-cap pooled separate accounts [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | [1] | 61,799 | ||
Plan assets, ending balance | 65,574 | 61,799 | [1] | |
Fair Value [Member] | International blend [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | [2] | 10,401 | ||
Plan assets, ending balance | 11,639 | 10,401 | [2] | |
Fair Value [Member] | Fixed income domestic [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | [3] | 21,732 | ||
Plan assets, ending balance | 24,958 | 21,732 | [3] | |
Fair Value [Member] | Fixed income long term [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | [4] | 105,640 | ||
Plan assets, ending balance | 111,683 | 105,640 | [4] | |
Fair Value [Member] | Stable value [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | [5] | 13,317 | ||
Plan assets, ending balance | 13,042 | 13,317 | [5] | |
Fair Value [Member] | Registered investment companies - growth fund [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | 18,515 | |||
Plan assets, ending balance | 20,668 | 18,515 | ||
Fair Value [Member] | Limited partnerships and limited liability companies [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | 29 | |||
Plan assets, ending balance | 10 | 29 | ||
Fair Value [Member] | Westmoreland Coal common stock [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | 819 | |||
Plan assets, ending balance | 56 | 819 | ||
Fair Value [Member] | Cash and cash equivalents [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, beginning balance | 3,790 | |||
Plan assets, ending balance | $ 3,690 | $ 3,790 | ||
Minimum [Member] | Cash and cash equivalents [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 0.00% | |||
Minimum [Member] | Equity Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 20.00% | |||
Minimum [Member] | Debt Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 40.00% | |||
Minimum [Member] | Other Asset Category [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 0.00% | |||
Maximum [Member] | Cash and cash equivalents [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 10.00% | |||
Maximum [Member] | Equity Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 60.00% | |||
Maximum [Member] | Debt Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 80.00% | |||
Maximum [Member] | Other Asset Category [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 10.00% | |||
[1] | Large-cap blend funds seek to provide long-term growth of capital. They seek to provide investment results that approximate the performance of the Standard & Poor’s Composite 1500 Index. | |||
[2] | International blends seek to have a diversified portfolio of investments, including fixed-income and equity-focused investments in international markets. | |||
[3] | Fixed income domestic funds seek to invest in high-quality corporate bonds with over 15 years to maturity. | |||
[4] | Fixed income long-term bond funds seek to achieve performance results similar to the Barclays Capital U.S. Aggregate Bond Index. This fund invests primarily in corporate and government bonds. | |||
[5] | The stable value fund seeks to invest in publicly traded and privately placed debt securities and mortgage loans, and to a lesser extent, real estate and other equity investments in order to provide a guaranteed rate of return.The Company’s Level 1 assets include securities held by registered investment companies and its common stock, |
PENSION AND OTHER SAVING PLAN79
PENSION AND OTHER SAVING PLANS - Multiemployer Plans (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($)$ / Hour | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jan. 31, 2012 | |
Multiemployer Plans [Line Items] | ||||
Multiemployer Plans Funded Status Minimum Percentage | 80.00% | |||
WECO [Member] | ||||
Multiemployer Plans [Line Items] | ||||
Multiemployer Plan, Contributions by Employer | $ | $ 3.5 | $ 3.7 | $ 3.6 | |
WRI [Member] | ||||
Multiemployer Plans [Line Items] | ||||
Multiemployer Plan Minimum Contribution Per Hour Worked | $ / Hour | 4.03 | |||
Multiemployer Plan Maximum Contribution Per Hour Worked | $ / Hour | 4.39 | |||
Multiemployer Plan, Contributions by Employer | $ | $ 1 | 0.8 | 1.1 | |
WSC [Member] | ||||
Multiemployer Plans [Line Items] | ||||
Multiemployer Plan Minimum Contribution Per Hour Worked | $ / Hour | 3.70 | |||
Multiemployer Plan, Contributions by Employer | $ | $ 0.1 | $ 0.1 | $ 0.1 |
PENSION AND OTHER SAVINGS PLA80
PENSION AND OTHER SAVINGS PLANS - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, number of continuous years of employment | 5 years | ||
Other Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Prior service cost and actuarial gains and losses amortized over next 12 months | $ 500 | ||
401-K [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Term For Loan Covenant Criteria | 8 months 15 days | ||
Expected contributions | $ 2,600 | ||
Total pension contributions | 1,200 | ||
Cash pension contributions | $ 10,100 | $ 7,100 | |
Stock pension contributions | 2,200 | 3,700 | |
Plan cost recognized | 9,900 | $ 12,300 | $ 10,800 |
2018 - Pension | 15,220 | ||
2019 - Pension | 15,520 | ||
2020 - Pension | 15,935 | ||
2021 - Pension | 16,170 | ||
2022 - Pension | 16,288 | ||
Years 2023 - 2027 - Pension | $ 81,698 |
ASSET RETIREMENT OBLIGATIONS -
ASSET RETIREMENT OBLIGATIONS - Summary of Asset Retirement Obligations, Contractual Third-Party Reclamation Receivables, and Reclamation Deposits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Asset Retirement Obligation [Line Items] | |||
Asset retirement obligation | $ 474,467 | $ 484,041 | $ 419,764 |
Contractually reimbursable asset retirement obligation liabilities | 149,800 | ||
Aggregate undiscounted cost of final ARO | 775,900 | ||
Contractually reimbursable undiscounted asset retirement obligations | 333,100 | ||
Surety bonds outstanding to secure reclamation obligations | $ 617,800 | ||
Minimum [Member] | WCC Mines [Member] | |||
Asset Retirement Obligation [Line Items] | |||
Credit adjusted, risk-free interest rates (percent) | 7.00% | ||
Discount rate (percent) | 38.80% | ||
Minimum [Member] | WMLP Mines [Member] | |||
Asset Retirement Obligation [Line Items] | |||
Credit adjusted, risk-free interest rates (percent) | 6.00% | ||
Discount rate (percent) | 75.00% | ||
Maximum [Member] | WCC Mines [Member] | |||
Asset Retirement Obligation [Line Items] | |||
Credit adjusted, risk-free interest rates (percent) | 38.80% | ||
Discount rate (percent) | 12.00% | ||
Maximum [Member] | WMLP Mines [Member] | |||
Asset Retirement Obligation [Line Items] | |||
Credit adjusted, risk-free interest rates (percent) | 75.00% | ||
Discount rate (percent) | 13.30% | ||
Coal U.S. Segment [Member] | |||
Asset Retirement Obligation [Line Items] | |||
Asset retirement obligation | $ 298,973 | ||
Coal Canada Segment [Member] | |||
Asset Retirement Obligation [Line Items] | |||
Asset retirement obligation | 126,847 | ||
Coal - WMLP [Member] | |||
Asset Retirement Obligation [Line Items] | |||
Asset retirement obligation | 45,795 | ||
Power [Member] | |||
Asset Retirement Obligation [Line Items] | |||
Asset retirement obligation | 2,852 | ||
Reclamation Deposits [Member] | |||
Asset Retirement Obligation [Line Items] | |||
Restricted assets | 77,000 | ||
Available-for-sale Securities and Other Shot-term Highly Liquid Investments [Member] | |||
Asset Retirement Obligation [Line Items] | |||
Restricted assets | $ 106,700 |
ASSET RETIREMENT OBLIGATIONS 82
ASSET RETIREMENT OBLIGATIONS - Changes in Company's Asset Retirement Obligations (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Asset retirement obligations, beginning of period | $ 484,041 | $ 419,764 |
Accretion | 45,132 | 40,423 |
Liabilities settled | (47,612) | (32,087) |
Changes due to amount and timing of reclamation | (19,242) | 7,191 |
ARO acquired | 4,260 | 45,404 |
Changes due to foreign currency translation | 7,888 | 3,346 |
Asset retirement obligations, end of period | 474,467 | 484,041 |
Less current portion | (48,429) | (32,207) |
Asset retirement obligations, less current portion | $ 426,038 | $ 451,834 |
DERIVATIVE INSTRUMENTS (Details
DERIVATIVE INSTRUMENTS (Details) - USD ($) $ in Thousands | Oct. 01, 2017 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Contract termination payment | $ 10,100 | ||||
Deferred revenue, revenue recognized | $ 14,400 | ||||
Proceeds from posted collateral | $ 6,200 | ||||
Not designated as hedging instrument | Contract to Sell Power [Member] | Gain (Loss) on Derivative Instruments [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Income (expense) recognized in earnings on derivatives | $ 19,768 | $ (19,768) | $ 0 | ||
Not designated as hedging instrument | Contract to Purchase Power [Member] | Gain (Loss) on Derivative Instruments [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Income (expense) recognized in earnings on derivatives | (21,697) | (4,287) | 5,587 | ||
Not designated as hedging instrument | Power Contract [Member] | Gain (Loss) on Derivative Instruments [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Income (expense) recognized in earnings on derivatives | (1,929) | (24,055) | $ 5,587 | ||
Other Current Liabilities [Member] | Not designated as hedging instrument | Contract to Purchase Power [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Liability | 0 | 0 | 13,382 | ||
Other Liabilities [Member] | Not designated as hedging instrument | Contract to Purchase Power [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Liability | 0 | 0 | 18,384 | ||
Other Current Assets [Member] | Not designated as hedging instrument | Contract to Sell Power [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Asset | 0 | 0 | 10,240 | ||
Other Assets [Member] | Not designated as hedging instrument | Contract to Sell Power [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Asset | 0 | $ 0 | $ 9,528 | ||
Revolving Credit Facility [Member] | Line of Credit [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Letters of credit released, amount | $ 7,500 |
FAIR VALUE MEASUREMENTS - Estim
FAIR VALUE MEASUREMENTS - Estimated Fair Values of Company's Debt (Detail) - Significant unobservable inputs, Level 3 [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt at fixed interest rate | $ 375,789 | $ 409,362 |
Debt at variable interest rate | 672,618 | 699,704 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt at fixed interest rate | 195,189 | 395,274 |
Debt at variable interest rate | $ 351,856 | $ 658,557 |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of Financial Assets at Fair Value (Detail) - Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Quoted prices in active markets for identical assets - Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investments, included in Restricted investments, reclamation deposits and bond collateral | $ 148,535 | $ 147,269 |
Fair value | 148,535 | 147,269 |
Significant other observable inputs - Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investments, included in Restricted investments, reclamation deposits and bond collateral | 0 | 0 |
Fair value | 0 | 19,768 |
Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investments, included in Restricted investments, reclamation deposits and bond collateral | 148,535 | 147,269 |
Fair value | 148,535 | 167,037 |
Other Current Liabilities and Other Liabilities [Member] | Quoted prices in active markets for identical assets - Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | 0 |
Other Current Liabilities and Other Liabilities [Member] | Significant other observable inputs - Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 296 | (32,379) |
Other Current Liabilities and Other Liabilities [Member] | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 296 | 32,379 |
Power Contract [Member] | Other Current Assets and Other Assets [Member] | Quoted prices in active markets for identical assets - Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contract to sell power, included in Other current assets and Other assets | 0 | |
Power Contract [Member] | Other Current Assets and Other Assets [Member] | Significant other observable inputs - Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contract to sell power, included in Other current assets and Other assets | 19,768 | |
Power Contract [Member] | Other Current Assets and Other Assets [Member] | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contract to sell power, included in Other current assets and Other assets | 19,768 | |
Power Contract [Member] | Other Current Liabilities and Other Liabilities [Member] | Quoted prices in active markets for identical assets - Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | |
Power Contract [Member] | Other Current Liabilities and Other Liabilities [Member] | Significant other observable inputs - Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 31,766 | |
Power Contract [Member] | Other Current Liabilities and Other Liabilities [Member] | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 31,766 | |
Warrant [Member] | Other Liabilities [Member] | Quoted prices in active markets for identical assets - Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | 0 |
Warrant [Member] | Other Liabilities [Member] | Significant other observable inputs - Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 296 | 613 |
Warrant [Member] | Other Liabilities [Member] | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | $ (296) | $ 613 |
SHARE-BASED COMPENSATION Additi
SHARE-BASED COMPENSATION Additional Information (Details) | 1 Months Ended | 12 Months Ended |
Jun. 30, 2017shares | Dec. 31, 2017stock_planpeer_groupshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of stock incentive plans | stock_plan | 2 | |
Number of peer groups for performance comparison | peer_group | 2 | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units, Granted (shares) | 713,238 | 713,238 |
2007 Incentive Stock Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for grant (shares) | 0 | |
2014 Incentive Stock Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for grant (shares) | 1,205,098 | |
Service Based [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Service Based [Member] | Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units, Granted (shares) | 338,968 | |
Service and Market Based [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Service and Market Based [Member] | Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units, Granted (shares) | 187,135 | |
Performance Based [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Performance Based [Member] | Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units, Granted (shares) | 187,135 | |
Employee [Member] | Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units, Granted (shares) | 611,097 | |
Director [Member] | Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units, Granted (shares) | 102,141 |
SHARE-BASED COMPENSATION - Comp
SHARE-BASED COMPENSATION - Compensation Expense from Share-Based Arrangements (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Recognition of fair value of restricted stock units, stock options, and stock appreciation rights over vesting period; and issuance of common stock | $ 3,200 | $ 5,392 | $ 4,019 |
Contributions of stock to the Company's 401(k) plan | 0 | 2,192 | 3,729 |
Total share-based compensation expense | $ 3,200 | $ 7,584 | $ 7,748 |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summary of Restricted Stock Unit Activity (Detail) - Restricted Stock Units (RSUs) [Member] - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Restricted Stock Award Activity (shares) [Roll Forward] | |||||
Beginning Balance | 700,500 | ||||
Granted | 713,238 | 713,238 | |||
Vested and issued | (291,140) | ||||
Forfeited | (347,647) | ||||
Ending Balance | 774,951 | 700,500 | |||
Restricted Stock, Weighted Average Grant Date Fair Value (in USD per share) [Abstract] | |||||
Beginning balance | $ 15.91 | ||||
Granted | 3.94 | $ 8.85 | $ 28.26 | ||
Vested and issued | 17.20 | ||||
Forfeited | 9.62 | ||||
Ending balance | $ 8.31 | $ 15.91 | |||
Unamortized Compensation Expense | [1] | $ 2,055 | |||
Recognition period of unamortized compensation expense (in years) | 3 years | ||||
[1] | _Â (1)Expected to be recognized over the |
SHARE-BASED COMPENSATION - Fair
SHARE-BASED COMPENSATION - Fair Value Assumptions (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Risk-free rate of return | 1.41% |
Expected volatility | 71.20% |
Expected term (in years) | 3 years |
Expected dividend yield | 0.00% |
SHARE-BASED COMPENSATION - Su90
SHARE-BASED COMPENSATION - Summary of Vested Restricted Stock (Detail) - Restricted Stock Units (RSUs) [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Grant-Date Fair Value (in USD per share) | $ 3.94 | $ 8.85 | $ 28.26 |
Total Grant-Date Fair Value of Restricted Stock Units that Vested | $ 5,007 | $ 2,485 | $ 2,884 |
SHARE-BASED COMPENSATION - Cash
SHARE-BASED COMPENSATION - Cash Units (Details) - Cash Unit [Member] - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (units) | 375,658 | ||
Compensation expense | $ 0.3 | $ 0.2 | |
Accrued liability related to cash units | $ 0.1 | $ 0.4 | |
Service Based [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (units) | 157,880 | ||
Service and Market Based [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (units) | 108,889 | ||
Service and Performance Based [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (units) | 108,889 |
STOCKHOLDERS' EQUITY AND ACCU92
STOCKHOLDERS' EQUITY AND ACCUMULATED OTHER COMPREHENSIVE LOSS - Additional Information (Detail) $ / shares in Units, $ in Thousands | 2 Months Ended | 12 Months Ended | ||||
Feb. 25, 2015shares | Dec. 31, 2017class_of_stock$ / sharesshares | Dec. 31, 2016USD ($)class_of_stock$ / shares | Dec. 31, 2015USD ($) | Jan. 01, 2015$ / shares | Dec. 31, 2014$ / shares | |
Class of Stock [Line Items] | ||||||
Number of classes of capital stock | class_of_stock | 1 | 1,000 | ||||
Common stock, par value (in USD per share) | $ / shares | $ 0.01 | $ 0.01 | $ 10 | $ 2.50 | ||
Preferred stock dividends paid (less than) | $ | $ 3 | |||||
Preferred Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Conversion of stock, shares converted (shares) | 88,494 | |||||
Shares redeemed (shares) | 3,175 | |||||
Shares issued for redeemed stock (shares) | 300,000 | |||||
Preferred stock dividends paid (less than) | $ | $ 100 | |||||
Common Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Conversion of stock, shares issued (shares) | 604,557 |
STOCKHOLDERS' EQUITY AND ACCU93
STOCKHOLDERS' EQUITY AND ACCUMULATED OTHER COMPREHENSIVE LOSS - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Available For Sale Securities | $ 1,065 | $ (345) | $ (1,738) | |
Change in foreign currency translation adjustment | 16,562 | 8,983 | (51,866) | |
Tax effect of other comprehensive income gains | (2,037) | 0 | (3,335) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (160,525) | (179,072) | ||
Other comprehensive income (loss), net of income taxes | 18,562 | (4,798) | (46,263) | |
Other Postretirement Benefits Plan [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Pension and Postretirement Medical Benefits, beginning | (51,893) | |||
Pension and Postretirement Medical Benefits, ending | (55,123) | (51,893) | ||
Accumulated Defined Benefit Plans Adjustment [Member] | Pension Plan [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Pension and Postretirement Medical Benefits, beginning | (26,123) | (33,494) | (35,540) | |
Pension And Postretirement Medical Benefits | 6,202 | 7,371 | 2,046 | |
Pension and Postretirement Medical Benefits, ending | (19,921) | (26,123) | (33,494) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (19,921) | (26,123) | ||
Accumulated Defined Benefit Plans Adjustment [Member] | Other Postretirement Benefits Plan [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Pension and Postretirement Medical Benefits, beginning | (51,893) | (31,086) | (39,716) | |
Pension And Postretirement Medical Benefits | (3,230) | (20,807) | 8,630 | |
Pension and Postretirement Medical Benefits, ending | (55,123) | (51,893) | (31,086) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (55,123) | (51,893) | ||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Available for Sale Securities, beginning | (1,674) | (1,325) | 413 | |
Available For Sale Securities | 1,050 | (349) | (1,738) | |
Available for Sale Securities, ending | (624) | (1,674) | (1,325) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (624) | (1,674) | ||
Accumulated Translation Adjustment [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Foreign currency translation adjustment, beginning | (61,073) | (70,056) | (18,190) | |
Foreign Currency Translation Adjustment | 8,983 | (51,866) | ||
Foreign currency translation adjustment, ending | (44,511) | (61,073) | (70,056) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (44,511) | (61,073) | ||
Tax Effect of Other Comprehensive Income Gains [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Tax Effect of Other Comprehensive Income Gains, beginning | (38,309) | (38,309) | (34,974) | |
Tax effect of other comprehensive income gains | 0 | (3,335) | ||
Tax Effect of Other Comprehensive Income Gains, ending | (40,346) | (38,309) | (38,309) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (40,346) | (38,309) | ||
Accumulated Other Comprehensive Loss | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (160,525) | (179,072) | (174,270) | $ (128,007) |
Other comprehensive income (loss), net of income taxes | $ 18,547 | $ (4,802) | $ (46,263) |
STOCKHOLDERS' EQUITY AND ACCU94
STOCKHOLDERS' EQUITY AND ACCUMULATED OTHER COMPREHENSIVE LOSS - Changes in Accumulated Other Comprehensive Income by component (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance at beginning of period | $ (179,072) |
Other comprehensive income before reclassifications | 12,397 |
Amounts reclassified from accumulated other comprehensive income (loss) | 6,150 |
Balance at end of period | (160,525) |
Accumulated Defined Benefit Plans Adjustment [Member] | Pension Benefits [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance at beginning of period | (26,123) |
Other comprehensive income before reclassifications | 3,376 |
Amounts reclassified from accumulated other comprehensive income (loss) | 2,826 |
Balance at end of period | (19,921) |
Accumulated Defined Benefit Plans Adjustment [Member] | Postretirement Medical Benefits [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance at beginning of period | (51,893) |
Other comprehensive income before reclassifications | (6,893) |
Amounts reclassified from accumulated other comprehensive income (loss) | 3,663 |
Balance at end of period | (55,123) |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance at beginning of period | (1,674) |
Other comprehensive income before reclassifications | 1,389 |
Amounts reclassified from accumulated other comprehensive income (loss) | (339) |
Balance at end of period | (624) |
Accumulated Translation Adjustment [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance at beginning of period | (61,073) |
Other comprehensive income before reclassifications | 16,562 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 |
Balance at end of period | (44,511) |
Tax Effect of Other Comprehensive Income Gains [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance at beginning of period | (38,309) |
Other comprehensive income before reclassifications | (2,037) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 |
Balance at end of period | $ (40,346) |
STOCKHOLDERS' EQUITY AND ACCU95
STOCKHOLDERS' EQUITY AND ACCUMULATED OTHER COMPREHENSIVE LOSS - Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Unrealized and realized gains (losses) on available-for-sale securities | $ 1,065 | $ (345) | $ (1,738) | |
Change in foreign currency translation adjustment | 16,562 | 8,983 | (51,866) | |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Unrealized and realized gains (losses) on available-for-sale securities | 1,050 | $ (349) | $ (1,738) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Unrealized and realized gains (losses) on available-for-sale securities | [1] | (339) | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Other Income [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, before Tax | [1] | (339) | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension Benefits [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Prior Service Cost, before Tax | [1],[2] | 8 | ||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Gain (Loss), before Tax | [1],[2] | 2,818 | ||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | [1] | 2,826 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Postretirement Medical Benefits [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Prior Service Cost, before Tax | [1],[3] | (635) | ||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Gain (Loss), before Tax | [1],[3] | 4,298 | ||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | [1] | $ 3,663 | ||
[1] | Amounts in parenthesis indicate debits to income/loss. | |||
[2] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost. (See Note 10 - Pension And Other Saving Plans to the consolidated financial statements for additional details) | |||
[3] | These accumulated other comprehensive income components are included in the computation of net periodic postretirement medical cost. (See Note 9 - Postretirement Medical Benefits to the consolidated financial statements for additional details) |
INCOME TAX - U.S. and foreign i
INCOME TAX - U.S. and foreign income before taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Income (loss) before income taxes, U.S. | $ (73,123) | $ (100,290) | $ (264,146) |
Income (loss) before income taxes, Foreign | (5,902) | 23,359 | 25,161 |
Loss before income taxes | $ (79,025) | $ (76,931) | $ (238,985) |
INCOME TAX - Components of Inco
INCOME TAX - Components of Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||
Current federal taxes | $ 0 | $ (2,924) | $ 0 |
Current state taxes | (11) | 166 | 12 |
Current foreign taxes | 30 | 841 | 1,441 |
Current tax expense (benefit) | 19 | (1,917) | 1,453 |
Deferred: | |||
Deferred federal taxes | (5,896) | (41,054) | (3,295) |
Deferred state taxes | 0 | (5,032) | (330) |
Deferred foreign taxes | (13) | (56) | (17,718) |
Deferred tax expense (benefit) | (5,909) | (46,142) | (21,343) |
Income tax benefit | $ (5,890) | $ (48,059) | $ (19,890) |
INCOME TAX - Reconciliation of
INCOME TAX - Reconciliation of Effective Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | |||
Computed tax benefit at statutory rate | $ (27,712) | $ (28,833) | $ (85,757) |
Increase (decrease) in tax expense resulting from: | |||
Tax depletion in excess of basis | (9,304) | (10,794) | (5,317) |
Intercompany interest | (5,105) | (6,651) | (6,488) |
State and foreign income taxes, net | (2,809) | (4,632) | (8,897) |
Indian coal tax credits (“ICTC”) | 0 | (9,923) | (13,756) |
Change in state and federal tax rates | 162,048 | (7,548) | (5,238) |
Change in Canadian rate | 435 | 0 | (3,083) |
Foreign income inclusion | 15,310 | 8,093 | 486 |
Alternative minimum tax refund | (4,145) | (2,923) | 0 |
Kemmerer deferred tax asset removal | 0 | 0 | (13,238) |
Change in valuation allowance for net deferred tax assets | (136,446) | 59,536 | 149,987 |
Release of valuation allowance arising from amalgamation | 0 | 0 | (32,441) |
San Juan purchase accounting release of valuation allowance | 0 | (46,086) | 0 |
Other, net | 1,838 | 1,702 | 3,852 |
Income tax benefit | (5,890) | (48,059) | (19,890) |
Valuation allowance decrease for AMT | (4,100) | ||
Deferred income taxes benefit | $ (5,909) | (46,142) | $ (17,961) |
San Juan Coal Company [Member] | |||
Increase (decrease) in tax expense resulting from: | |||
Deferred income taxes | $ 46,100 |
INCOME TAX - Components of Defe
INCOME TAX - Components of Deferred Tax Assets And Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Federal net operating loss carryforwards | $ 190,687 | $ 249,687 |
Credit carryforwards | 65,114 | 69,170 |
Accrued compensation and benefits | 2,993 | 7,399 |
Asset retirement obligations | 111,162 | 156,550 |
Postretirement medical benefit and pension obligations | 93,111 | 143,374 |
Deferred revenues | 988 | 11,110 |
Black lung accrual | 5,343 | 8,299 |
Unrealized gain/(loss) on derivatives | 0 | 4,774 |
Canadian resource pool | 4,425 | 4,174 |
Lease obligations | 3,707 | 8,415 |
Other | 11,286 | 9,668 |
Total gross deferred assets | 488,816 | 672,620 |
Valuation allowance | (398,627) | (563,338) |
Net deferred tax assets | 90,189 | 109,282 |
Deferred tax liabilities: | ||
Property, plant and equipment, differences due to depreciation and amortization | (62,312) | (83,411) |
Investment in Joint Venture | (22,850) | (13,365) |
Finance lease receivable | 0 | (7,362) |
Other | (5,027) | (5,144) |
Total gross deferred tax liabilities | (90,189) | (109,282) |
Net deferred tax asset (liability) | $ 0 | $ 0 |
INCOME TAX - Additional Informa
INCOME TAX - Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 01, 2015 | Dec. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | |||||
Change in valuation allowance for net deferred tax assets | $ (136,446,000) | $ 59,536,000 | $ 149,987,000 | ||
Uncertain tax positions | 4,000,000 | ||||
Penalties and interest expense | 0 | $ 0 | $ 0 | ||
Uncertain tax positions expected to change in next 12 months | $ 0 | ||||
Ownership interest percentage, without Board approval, that triggers the stockholder rights plant (percent)Trigger for Stockholder Rights Plan, Percent | 4.75% | ||||
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 | $ 10 | $ 2.50 | |
Rights agreement, exercise price per unit (in USD per unit) | $ 10 | ||||
Valuation allowance decrease for AMT | $ (4,100,000) | ||||
Effect of revaluation of deferred tax assets and liabilities due to the change in U.S. corporate tax rate | 162,000,000 | ||||
One-time transition tax on certain foreign earnings | 39,000,000 | ||||
Federal [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Net operating loss carryforwards | 676,200,000 | ||||
ICTC carryforwards | 64,400,000 | ||||
Foreign Tax Authority [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Net operating loss carryforwards | $ 30,200,000 | ||||
Series A Participating Preferred Stock [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Fraction of share represented by each right under the Rights Agreement (shares) | 0.0001 | ||||
Preferred stock, par value (in USD per share) | $ 0.01 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total shares excluded from diluted shares calculation | 780 | 810 | 464 |
Restricted stock units, stock options and SARs [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total shares excluded from diluted shares calculation | 780 | 810 | 464 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Leases (Details) mÂł in Thousands, $ in Thousands, gal in Millions | Oct. 31, 2013mÂł | Dec. 31, 2017USD ($)gal | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Gross value and accumulated amortization of assets under capital leases: | ||||
Water released in containment pond breach, cubic meters | mÂł | 670 | |||
Future minimum capital lease payments: | ||||
2,018 | $ 18,337 | |||
2,019 | 9,183 | |||
2,020 | 4,325 | |||
2,021 | 1,832 | |||
2,022 | 2,040 | |||
Thereafter | 0 | |||
Total minimum lease payments | 35,717 | |||
Less imputed interest | (2,604) | |||
Present value of minimum capital lease payments | 33,113 | |||
Future minimum operating lease payments: | ||||
2,018 | 8,705 | |||
2,019 | 6,287 | |||
2,020 | 1,648 | |||
2,021 | 1,506 | |||
2,022 | 1,534 | |||
Thereafter | 3,994 | |||
Total | 23,674 | |||
Rental expense under operating leases | 15,100 | $ 18,200 | $ 25,200 | |
Royalty expense, coal reserves | $ 86,500 | 99,200 | $ 96,700 | |
Minimum annual purchase requirement (in gallons of diesel fuel) | gal | 9 | |||
Property, plant and equipment and mine development assets [Member] | ||||
Gross value and accumulated amortization of assets under capital leases: | ||||
Gross value | $ 75,446 | 74,335 | ||
Accumulated amortization | 51,026 | $ 32,335 | ||
Other Current Liabilities [Member] | ||||
Gross value and accumulated amortization of assets under capital leases: | ||||
Remediation obligation | $ 8,000 |
BUSINESS SEGMENT INFORMATION -
BUSINESS SEGMENT INFORMATION - Summarized Financial Information by Segment (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)segments | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | ||
Segment Reporting Information [Line Items] | ||||||||||||
Number of reportable segments | segments | 6 | |||||||||||
Revenues | $ 1,384,568 | $ 1,477,960 | $ 1,419,518 | |||||||||
Restructuring charges | 0 | 0 | 656 | |||||||||
Depreciation, depletion, and amortization | 121,054 | 185,267 | 140,328 | |||||||||
Operating income (loss) | $ 57,112 | $ 14,255 | $ (21,067) | $ (11,088) | $ 22,641 | $ 8,753 | $ (883) | $ 7,619 | 39,212 | 38,130 | (145,696) | |
Total assets | 1,389,099 | 1,584,909 | 1,389,099 | 1,584,909 | 1,415,979 | |||||||
Capital expenditures | 35,016 | 46,132 | 77,921 | |||||||||
Loss on impairment | 5,872 | 0 | 136,210 | |||||||||
Coal Segment [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | [1] | 573,697 | 651,713 | 552,745 | ||||||||
Restructuring charges | [1] | 0 | 0 | 0 | ||||||||
Depreciation, depletion, and amortization | [1] | 59,764 | 108,326 | 45,650 | ||||||||
Operating income (loss) | [1] | 40,063 | (8,063) | 2,213 | ||||||||
Total assets | [1] | 535,341 | 612,588 | 535,341 | 612,588 | 442,143 | ||||||
Capital expenditures | [1] | 12,609 | 14,775 | 25,193 | ||||||||
Coal Canada Segment [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 438,273 | 415,593 | 430,416 | |||||||||
Restructuring charges | 0 | 0 | 0 | |||||||||
Depreciation, depletion, and amortization | 14,292 | 26,893 | 30,323 | |||||||||
Operating income (loss) | 8,898 | 39,104 | 36,830 | |||||||||
Total assets | 470,744 | 493,356 | 470,744 | 493,356 | 506,058 | |||||||
Capital expenditures | 13,961 | 19,791 | 27,658 | |||||||||
Loss on impairment | 3,100 | |||||||||||
Westmoreland Resource Partners LP [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | [2] | 315,605 | 349,341 | 388,605 | ||||||||
Restructuring charges | [2] | 0 | 0 | 656 | ||||||||
Depreciation, depletion, and amortization | [2] | 45,466 | 50,217 | 54,504 | ||||||||
Operating income (loss) | [2] | 9,822 | 8,873 | (5,211) | ||||||||
Total assets | [2] | 347,403 | 386,862 | 347,403 | 386,862 | 412,895 | ||||||
Capital expenditures | [2] | 8,446 | 11,566 | 27,296 | ||||||||
Power [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | [3] | 77,189 | 86,578 | 84,423 | ||||||||
Restructuring charges | [3] | 0 | 0 | 0 | ||||||||
Depreciation, depletion, and amortization | [3] | 1,650 | 0 | 9,908 | ||||||||
Operating income (loss) | [3] | 15,274 | 28,535 | (146,868) | ||||||||
Total assets | [3] | 0 | 59,273 | 0 | 59,273 | 39,762 | ||||||
Capital expenditures | [3] | 0 | 0 | 1,408 | ||||||||
Loss on impairment | 133,100 | |||||||||||
Heritage [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 0 | 0 | 0 | |||||||||
Restructuring charges | 0 | 0 | 0 | |||||||||
Depreciation, depletion, and amortization | 0 | 0 | 0 | |||||||||
Operating income (loss) | (14,242) | (13,409) | (15,596) | |||||||||
Total assets | 16,767 | 16,298 | 16,767 | 16,298 | 16,146 | |||||||
Capital expenditures | 0 | 0 | 0 | |||||||||
Corporate [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | [2] | (20,196) | (25,265) | (36,671) | ||||||||
Restructuring charges | [2] | 0 | 0 | 0 | ||||||||
Depreciation, depletion, and amortization | [2] | (118) | (169) | (57) | ||||||||
Operating income (loss) | [2] | (20,603) | (16,910) | (17,064) | ||||||||
Total assets | [2] | $ 18,844 | $ 16,532 | 18,844 | 16,532 | (1,025) | ||||||
Capital expenditures | [2] | 0 | 0 | $ (3,634) | ||||||||
San Juan Coal Company [Member] | Coal Segment [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 206,100 | 184,400 | ||||||||||
Operating income (loss) | $ 18,300 | $ 24,500 | ||||||||||
[1] | The San Juan Acquisition was completed on January 31, 2016. For the years ended December 31, 2017 and 2016, revenues for San Juan were $206.1 million and $184.4 million, respectively, and operating income was $18.3 million and $24.5 million, respectively. | |||||||||||
[2] | The Coal - WMLP segment recorded revenues of $20.2 million, $25.3 million and $36.7 million for intersegment revenues to the Coal - U.S. segment for the years ended December 31, 2017, 2016 and 2015, respectively. Eliminations for intersegment revenues and cost of sales are presented within the Corporate segment. | |||||||||||
[3] | Operating income (loss) for the Coal - WMLP segment for 2017 includes an impairment charge of $5.9 million. Operating income (loss) for the Power segment for 2015 includes an impairment charge of $133.1 million. |
BUSINESS SEGMENT INFORMATION104
BUSINESS SEGMENT INFORMATION - Customer Concentration Disclosures (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue, Major Customer [Line Items] | |||||||||||
Revenues | $ 363,795 | $ 358,011 | $ 323,025 | $ 339,737 | $ 392,737 | $ 371,772 | $ 357,597 | $ 355,854 | $ 1,384,568 | $ 1,477,960 | $ 1,419,518 |
Total Revenue [Member] | Customer Concentration Risk [Member] | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Concentration Risk, Percentage | 48.48913% | 48.22972% | 40.09002% | ||||||||
Customer A [Member] | Coal Segment [Member] | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenues | $ 134,791 | $ 207,290 | $ 234,840 | ||||||||
Customer B [Member] | Coal Segment [Member] | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenues | 206,148 | 184,364 | 0 | ||||||||
Customer C [Member] | Coal Canada Segment [Member] | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenues | 191,363 | 174,659 | 180,660 | ||||||||
Customer D [Member] | Coal Segment [Member] | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenues | $ 139,063 | $ 146,503 | $ 153,585 |
QUARTERLY FINANCIAL DATA (UN105
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 363,795 | $ 358,011 | $ 323,025 | $ 339,737 | $ 392,737 | $ 371,772 | $ 357,597 | $ 355,854 | $ 1,384,568 | $ 1,477,960 | $ 1,419,518 |
Operating income (loss) | 57,112 | 14,255 | (21,067) | (11,088) | 22,641 | 8,753 | (883) | 7,619 | 39,212 | 38,130 | (145,696) |
Net Income (loss) applicable to common shareholders | $ 35,065 | $ (19,222) | $ (50,382) | $ (36,801) | $ (7,551) | $ (18,368) | $ (28,589) | $ 27,407 | $ (71,340) | $ (27,101) | $ (213,645) |
Basic and diluted (in dollars per share) | $ 1.87 | $ (1.03) | $ (2.69) | $ (1.98) | $ (0.41) | $ (0.99) | $ (1.54) | $ 1.50 | $ (3.82) | $ (1.47) | $ (11.93) |
Schedule I - Parent Balance she
Schedule I - Parent Balance sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and cash equivalents | $ 103,247 | $ 60,082 | $ 22,936 | $ 14,258 |
Other | 17,697 | 13,261 | ||
Total receivables | 121,308 | 159,859 | ||
Other current assets | 11,517 | 32,258 | ||
Total current assets | 342,867 | 377,714 | ||
Land, mineral rights, property, plant and equipment | 1,665,740 | 1,617,938 | ||
Less accumulated depreciation, depletion and amortization | 923,905 | 782,417 | ||
Restricted investments | 200,194 | 219,275 | ||
Other assets | 55,036 | 62,252 | ||
Total Assets | 1,389,099 | 1,584,909 | 1,415,979 | |
Current installments of long-term debt | 983,427 | 86,272 | ||
Trade and other accrued liabilities | 121,489 | 142,233 | ||
Interest payable | 22,840 | 22,458 | ||
Postretirement medical benefits | 14,734 | 14,892 | ||
Other current liabilities | 9,401 | 20,964 | ||
Total current liabilities | 1,247,076 | 379,274 | ||
Long-term debt, less current installments | 64,980 | 1,022,794 | ||
Postretirement medical benefits, less current portion | 317,407 | 308,709 | ||
Pension and SERP obligations, less current portion | 43,585 | 43,982 | ||
Other liabilities | 31,477 | 52,182 | ||
Total liabilities | 2,132,547 | 2,275,026 | ||
Common stock | 188 | 186 | ||
Other paid-in capital | 250,494 | 248,143 | ||
Accumulated other comprehensive loss | (160,525) | (179,072) | ||
Accumulated deficit | (829,107) | (757,367) | ||
Stockholders' Equity Attributable to Parent | (738,950) | (688,110) | ||
Noncontrolling interests in consolidated subsidiaries | (4,498) | (2,007) | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (743,448) | (690,117) | (662,901) | (400,875) |
Liabilities and Equity | 1,389,099 | 1,584,909 | ||
Parent Company [Member] | ||||
Cash and cash equivalents | 6,942 | 10,256 | $ 14,245 | $ 697 |
Intercompany receivable | 30,634 | 40,797 | ||
Other | 2,150 | 5,422 | ||
Total receivables | 32,784 | 46,219 | ||
Other current assets | 1,051 | 1,235 | ||
Total current assets | 40,777 | 57,710 | ||
Land, mineral rights, property, plant and equipment | 2,558 | 1,949 | ||
Less accumulated depreciation, depletion and amortization | 1,326 | 1,135 | ||
Gross property, plant and equipment | 1,232 | 814 | ||
Restricted investments | 16,497 | 16,004 | ||
Investments in subsidiaries | 64,556 | 31,158 | ||
Intercompany receivable | 156,204 | 226,225 | ||
Other assets | 5,710 | 2,037 | ||
Total Assets | 284,976 | 333,948 | ||
Current installments of long-term debt | 651,142 | 3,288 | ||
Trade and other accrued liabilities | 17,536 | 16,714 | ||
Interest payable | 15,541 | 15,469 | ||
Postretirement medical benefits | 12,275 | 12,573 | ||
Other current liabilities | 1,035 | 1,386 | ||
Total current liabilities | 697,529 | 49,430 | ||
Long-term debt, less current installments | 500 | 646,885 | ||
Postretirement medical benefits, less current portion | 257,559 | 251,093 | ||
Pension and SERP obligations, less current portion | 39,209 | 40,639 | ||
Intercompany Payable | 9,820 | 11,915 | ||
Other liabilities | 23,807 | 24,103 | ||
Total liabilities | 1,028,424 | 1,024,065 | ||
Common stock | 188 | 186 | ||
Other paid-in capital | 250,494 | 248,143 | ||
Accumulated other comprehensive loss | (160,525) | (179,072) | ||
Accumulated deficit | (829,107) | (757,367) | ||
Stockholders' Equity Attributable to Parent | (738,950) | (688,110) | ||
Noncontrolling interests in consolidated subsidiaries | (4,498) | (2,007) | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (743,448) | (690,117) | ||
Liabilities and Equity | $ 284,976 | $ 333,948 |
Schedule I - Parent Statement o
Schedule I - Parent Statement of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | $ 363,795 | $ 358,011 | $ 323,025 | $ 339,737 | $ 392,737 | $ 371,772 | $ 357,597 | $ 355,854 | $ 1,384,568 | $ 1,477,960 | $ 1,419,518 |
Cost of sales (exclusive of depreciation, depletion and amortization, shown separately) | 1,096,098 | 1,156,687 | 1,175,849 | ||||||||
Depreciation, depletion and amortization | 121,054 | 185,267 | 140,328 | ||||||||
Selling and administrative | 120,184 | 108,560 | 95,554 | ||||||||
Heritage health benefit expenses | 12,633 | 11,777 | 14,573 | ||||||||
Restructuring charges | 0 | 0 | 656 | ||||||||
Other operating loss (income) | 0 | 8,309 | (3,000) | ||||||||
Total costs, expenses and other | 1,345,356 | 1,439,830 | 1,565,214 | ||||||||
Operating income (loss) | $ 57,112 | $ 14,255 | $ (21,067) | $ (11,088) | $ 22,641 | $ 8,753 | $ (883) | $ 7,619 | 39,212 | 38,130 | (145,696) |
Interest expense | (118,657) | (121,819) | (101,311) | ||||||||
Loss on extinguishment of debt | 0 | 0 | (5,385) | ||||||||
Interest income | 4,101 | 7,435 | 7,993 | ||||||||
(Loss) gain on foreign exchange | (3,108) | (715) | 3,674 | ||||||||
Other (loss) income | (573) | 38 | 1,740 | ||||||||
Total other income (expense) | (118,237) | (115,061) | (93,289) | ||||||||
Loss before income taxes | (79,025) | (76,931) | (238,985) | ||||||||
Income tax benefit | (5,890) | (48,059) | (19,890) | ||||||||
Net loss | (73,135) | (28,872) | (219,095) | ||||||||
Less net loss attributable to noncontrolling interest | (1,795) | (1,771) | (5,453) | ||||||||
Net loss attributable to the Parent company | (71,340) | (27,101) | (213,642) | ||||||||
Parent Company [Member] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Cost of sales (exclusive of depreciation, depletion and amortization, shown separately) | (2,025) | (2,740) | (2,765) | ||||||||
Depreciation, depletion and amortization | 466 | 325 | 195 | ||||||||
Selling and administrative | 30,589 | 22,878 | 19,891 | ||||||||
Heritage health benefit expenses | 11,782 | 11,003 | 13,811 | ||||||||
Restructuring charges | 0 | 0 | 0 | ||||||||
Other operating loss (income) | 15 | 148 | 0 | ||||||||
Total costs, expenses and other | 40,827 | 31,614 | 31,132 | ||||||||
Operating income (loss) | (40,827) | (31,614) | (31,132) | ||||||||
Interest expense | (61,446) | (60,765) | (64,793) | ||||||||
Loss on extinguishment of debt | 0 | 0 | (5,385) | ||||||||
Interest income | 13,567 | 17,161 | 17,197 | ||||||||
(Loss) gain on foreign exchange | 9 | 9 | (26) | ||||||||
Other (loss) income | (196) | (49) | (6) | ||||||||
Total other income (expense) | (48,066) | (43,644) | (53,013) | ||||||||
Loss before income taxes and loss of consolidated subsidiaries | (88,893) | (75,258) | (84,145) | ||||||||
Equity in income (loss) of subsidiaries | 9,885 | (2,268) | (138,575) | ||||||||
Loss before income taxes | (79,008) | (77,526) | (222,720) | ||||||||
Income tax benefit | (5,873) | (48,654) | (3,625) | ||||||||
Net loss | (73,135) | (28,872) | (219,095) | ||||||||
Less net loss attributable to noncontrolling interest | (1,795) | (1,771) | (5,453) | ||||||||
Net loss attributable to the Parent company | $ (71,340) | $ (27,101) | $ (213,642) |
Schedule I - Parent Comprehensi
Schedule I - Parent Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net loss | $ (73,135) | $ (28,872) | $ (219,095) |
Amortization of accumulated actuarial gains and prior service costs, pension | 2,826 | 4,361 | 1,886 |
Adjustments to accumulated actuarial gains and transition obligations, pension | 3,376 | 3,010 | 160 |
Amortization of accumulated actuarial gains, transition obligations, and prior service costs, postretirement medical benefits | 3,663 | 1,259 | 1,308 |
Adjustments to accumulated actuarial (losses) gains and transition obligations, postretirement medical benefits | (6,893) | (22,066) | 7,322 |
Tax effect of other comprehensive income gains | (2,037) | 0 | (3,335) |
Foreign currency translation adjustment gains (losses) | 16,562 | 8,983 | (51,866) |
Unrealized and realized gains (losses) on available-for-sale securities | 1,065 | (345) | (1,738) |
Other comprehensive income (loss), net of income taxes | 18,562 | (4,798) | (46,263) |
Comprehensive loss | (54,573) | (33,670) | (265,358) |
Less: Comprehensive loss attributable to noncontrolling interest | (1,780) | (1,767) | (5,453) |
Comprehensive loss attributable to common shareholders | (52,793) | (31,903) | (259,905) |
Parent Company [Member] | |||
Net loss | (73,135) | (28,872) | (219,095) |
Amortization of accumulated actuarial gains and prior service costs, pension | 2,826 | 4,361 | 1,886 |
Adjustments to accumulated actuarial gains and transition obligations, pension | 3,376 | 3,010 | 160 |
Amortization of accumulated actuarial gains, transition obligations, and prior service costs, postretirement medical benefits | 3,663 | 1,259 | 1,308 |
Adjustments to accumulated actuarial (losses) gains and transition obligations, postretirement medical benefits | (6,893) | (22,066) | 7,322 |
Tax effect of other comprehensive income gains | (2,037) | 0 | (3,335) |
Foreign currency translation adjustment gains (losses) | 16,562 | 8,983 | (51,866) |
Unrealized and realized gains (losses) on available-for-sale securities | 1,065 | (345) | (1,738) |
Other comprehensive income (loss), net of income taxes | 18,562 | (4,798) | (46,263) |
Comprehensive loss | (54,573) | (33,670) | (265,358) |
Less: Comprehensive loss attributable to noncontrolling interest | (1,780) | (1,767) | (5,453) |
Comprehensive loss attributable to common shareholders | $ (52,793) | $ (31,903) | $ (259,905) |
Schedule I - Parent Statemen109
Schedule I - Parent Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net loss | $ (73,135) | $ (28,872) | $ (219,095) |
Depreciation, depletion and amortization | 121,054 | 185,267 | 140,328 |
Share-based compensation | 3,200 | 7,584 | 7,748 |
Amortization of deferred financing costs | 10,778 | 11,537 | 10,601 |
Deferred income taxes benefit | (5,909) | (46,142) | (17,961) |
Loss (gain) on foreign exchange | 3,108 | 715 | (3,674) |
Other | 560 | (2,705) | (146) |
Receivables | 35,636 | (4,430) | 1,987 |
Accounts payable and accrued expenses | (20,180) | 10,505 | (5,447) |
Other assets and liabilities | 20,467 | 13,227 | (19,613) |
Net cash provided by operating activities | 114,163 | 151,934 | 45,562 |
Additions to property, plant and equipment | (35,016) | (46,132) | (77,921) |
Proceeds from sales of restricted investments | 50,226 | 34,814 | 15,532 |
Cash payments in escrow for future acquisitions | 0 | 0 | 34,000 |
Cash payments related to acquisitions and other | (3,580) | (120,992) | (32,529) |
Net cash provided by (used in) investing activities | 10,661 | (155,694) | (70,801) |
Borrowings from long-term debt, net of debt discount | 0 | 122,250 | 199,359 |
Repayments of long-term debt | (82,091) | (70,370) | (148,071) |
Borrowings on revolving lines of credit | 275,300 | 423,500 | 201,746 |
Repayments on revolving lines of credit | (275,300) | (425,500) | (209,351) |
Other | (711) | (974) | 1,172 |
Net cash (used in) provided by financing activities | (82,802) | 40,122 | 36,723 |
Net increase in cash and cash equivalents | 43,165 | 37,146 | 8,678 |
Cash and cash equivalents, beginning of year | 60,082 | 22,936 | 14,258 |
Cash and cash equivalents, end of year | 103,247 | 60,082 | 22,936 |
Parent Company [Member] | |||
Net loss | (73,135) | (28,872) | (219,095) |
Equity in income (loss) of subsidiaries | (9,885) | 2,268 | 138,575 |
Depreciation, depletion and amortization | 466 | 325 | 195 |
Share-based compensation | 2,122 | 4,692 | 3,744 |
Amortization of deferred financing costs | 5,292 | 4,840 | 4,859 |
Deferred income taxes benefit | 0 | (46,085) | 0 |
Loss (gain) on foreign exchange | (9) | (9) | 26 |
Distributions received from subsidiaries | 47 | 9,037 | 5,801 |
Other | 214 | 196 | 820 |
Receivables | 3,272 | (2,369) | 104 |
Accounts payable and accrued expenses | 805 | 6,187 | 4,156 |
Other assets and liabilities | (6,624) | 1,185 | (10,047) |
Net cash provided by operating activities | (77,435) | (48,605) | (70,862) |
Additions to property, plant and equipment | (592) | (282) | (86) |
Proceeds from sales of restricted investments | (412) | (6,112) | (290) |
Proceeds from Kemmerer Drop | 0 | 0 | 115,000 |
Cash payments in escrow for future acquisitions | 0 | 0 | 17,000 |
Cash payments related to acquisitions and other | 0 | 0 | 0 |
Proceeds from the sale of restricted investments | 0 | 5,697 | 0 |
Net cash provided by (used in) investing activities | (1,004) | (697) | 131,624 |
Borrowings from long-term debt, net of debt discount | 0 | 0 | 76,000 |
Repayments of long-term debt | (3,288) | (3,288) | (97,829) |
Borrowings on revolving lines of credit | 251,300 | 345,500 | 182,135 |
Repayments on revolving lines of credit | (251,300) | (345,500) | (191,710) |
Proceeds from issuance of common shares | 0 | (224) | (6,393) |
Transactions with Parent/affiliates | 78,413 | 49,456 | (9,095) |
Other | 0 | (631) | (322) |
Net cash (used in) provided by financing activities | 75,125 | 45,313 | (47,214) |
Net increase in cash and cash equivalents | (3,314) | (3,989) | 13,548 |
Cash and cash equivalents, beginning of year | 10,256 | 14,245 | 697 |
Cash and cash equivalents, end of year | $ 6,942 | $ 10,256 | $ 14,245 |