Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 30, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-9172 | |
Entity Registrant Name | NACCO INDUSTRIES, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 34-1505819 | |
Entity Address, Address Line One | 5875 Landerbrook Drive | |
Entity Address, Address Line Two | Suite 220 | |
Entity Address, City or Town | Cleveland, | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 44124-4069 | |
City Area Code | (440) | |
Local Phone Number | 229-5151 | |
Title of 12(b) Security | Class A Common Stock, $1 par value per share | |
Trading Symbol | NC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000789933 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Shares Outstanding Class A | ||
Entity Information [Line Items] | ||
Shares Outstanding (in shares) | 5,477,225 | |
Shares Outstanding Class B | ||
Entity Information [Line Items] | ||
Shares Outstanding (in shares) | 1,568,350 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 97,567 | $ 122,892 |
Trade accounts receivable, net | 16,507 | 15,444 |
Accounts receivable from affiliates | 3,722 | 6,411 |
Inventories | 42,433 | 40,465 |
Refundable federal income taxes | 25,379 | 8,928 |
Other current assets | 12,996 | 6,528 |
Total current assets | 198,604 | 200,668 |
Property, plant and equipment, net | 156,598 | 138,061 |
Intangibles, net | 35,599 | 37,902 |
Investments in unconsolidated subsidiaries | 25,545 | 24,611 |
Operating lease right-of-use assets | 10,448 | 11,398 |
Other non-current assets | 39,108 | 32,133 |
Total assets | 465,902 | 444,773 |
LIABILITIES AND EQUITY | ||
Accounts payable | 13,603 | 9,374 |
Accounts payable to affiliates | 686 | 577 |
Revolving credit agreements | 0 | 7,000 |
Current maturities of long-term debt | 960 | 795 |
Asset retirement obligations | 2,285 | 2,285 |
Accrued payroll | 10,565 | 19,583 |
Deferred compensation | 0 | 13,465 |
Deferred revenue | 1,693 | 1,908 |
Other current liabilities | 6,786 | 6,979 |
Total current liabilities | 36,578 | 61,966 |
Long-term debt | 22,182 | 17,148 |
Operating lease liabilities | 11,494 | 12,448 |
Asset retirement obligations | 40,811 | 34,574 |
Pension and other postretirement obligations | 7,430 | 8,807 |
Deferred income taxes | 28,513 | 12,338 |
Other long-term liabilities | 12,405 | 8,100 |
Total liabilities | 159,413 | 155,381 |
Common stock: | ||
Capital in excess of par value | 9,381 | 8,911 |
Retained earnings | 301,045 | 284,852 |
Accumulated other comprehensive loss | (10,982) | (11,337) |
Total stockholders' equity | 306,489 | 289,392 |
Total liabilities and equity | 465,902 | 444,773 |
Class A Common Stock | ||
Common stock: | ||
Common stock | 5,477 | 5,397 |
Class B Common Stock | ||
Common stock: | ||
Common stock | $ 1,568 | $ 1,569 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) | Sep. 30, 2020$ / sharesshares | Dec. 31, 2019$ / sharesshares |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ / shares | $ 1 | $ 1 |
Common stock, shares outstanding (in shares) | shares | 5,477,225 | 5,397,458 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ / shares | $ 1 | $ 1 |
Common stock, shares outstanding (in shares) | shares | 1,568,350 | 1,568,670 |
Common stock, convertible conversion ratio | 1 | 1 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Revenues | $ 32,295 | $ 32,603 | $ 105,294 | $ 114,052 |
Cost of sales | 25,475 | 26,416 | 89,553 | 85,812 |
Gross profit | 6,820 | 6,187 | 15,741 | 28,240 |
Earnings of unconsolidated operations | 15,145 | 17,438 | 44,926 | 47,851 |
Operating expenses | ||||
Selling, general and administrative expenses | 11,833 | 14,341 | 37,151 | 39,782 |
Amortization of intangible assets | 734 | 715 | 2,303 | 2,243 |
Gain on sale of assets | 0 | (94) | (247) | (131) |
Operating expenses | 12,567 | 14,962 | 39,207 | 41,894 |
Operating profit | 9,398 | 8,663 | 21,460 | 34,197 |
Other (income) expense | ||||
Interest expense | 336 | 230 | 1,069 | 683 |
Interest income | (95) | (1,878) | (625) | (3,012) |
Income from other unconsolidated affiliates | (18) | (327) | (230) | (972) |
Closed mine obligations | 395 | 383 | 1,219 | 1,079 |
Gain on equity securities | (35) | (108) | (351) | (1,067) |
Other, net | (1,064) | (1,258) | (1,181) | (1,236) |
Other (income) expense | (481) | (2,958) | (99) | (4,525) |
Income before income tax provision | 9,879 | 11,621 | 21,559 | 38,722 |
Income tax provision | 1,857 | 1,357 | 1,321 | 5,465 |
Net income | $ 8,022 | $ 10,264 | $ 20,238 | $ 33,257 |
Earnings per share: | ||||
Basic earnings per share (in dollars per share) | $ 1.14 | $ 1.47 | $ 2.88 | $ 4.77 |
Diluted earnings per share (in dollars per share) | $ 1.14 | $ 1.47 | $ 2.88 | $ 4.76 |
Basic weighted average shares outstanding (in shares) | 7,036 | 6,991 | 7,019 | 6,973 |
Diluted weighted average shares outstanding (in shares) | 7,036 | 6,991 | 7,035 | 6,992 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 8,022 | $ 10,264 | $ 20,238 | $ 33,257 |
Reclassification of pension and postretirement adjustments into earnings, net of $29 and $102 tax benefit in the three and nine months ended September 30, 2020, respectively, net of $21 and $66 tax benefit in the three and nine months ended September 30, 2019, respectively. | 99 | 70 | 355 | 242 |
Total other comprehensive income | 99 | 70 | 355 | 242 |
Comprehensive income | $ 8,121 | $ 10,334 | $ 20,593 | $ 33,499 |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Reclassification of pension and postretirement adjustments into earnings, tax expense (benefit) | $ (29) | $ (21) | $ (102) | $ (66) |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Operating activities | ||
Net cash provided by operating activities | $ 2,760 | $ 47,264 |
Investing activities | ||
Expenditures for property, plant and equipment | (19,802) | (13,264) |
Proceeds from the sale of property, plant and equipment | 550 | 4,475 |
Purchase of equity securities | (2,000) | 0 |
Other | 72 | (20) |
Net cash used for investing activities | (21,180) | (8,809) |
Financing activities | ||
Additions to long-term debt | 6,199 | 1,065 |
Reductions of long-term debt | (1,057) | (498) |
Net reduction to revolving credit agreements | (7,000) | (4,000) |
Cash dividends paid | (4,045) | (3,808) |
Purchase of treasury shares | (1,002) | (1,410) |
Net cash used for financing activities | (6,905) | (8,651) |
Cash and cash equivalents | ||
Total (decrease) increase for the period | (25,325) | 29,804 |
Balance at the beginning of the period | 122,892 | 85,257 |
Balance at the end of the period | $ 97,567 | $ 115,061 |
Unaudited Condensed Consolida_7
Unaudited Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Common StockClass A Common Stock | Common StockClass B Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance, beginning of period at Dec. 31, 2018 | $ 250,704 | $ 5,352 | $ 1,569 | $ 7,042 | $ 250,352 | $ (13,611) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 897 | 102 | 795 | |||
Purchase of treasury shares | (1,300) | (36) | (1,264) | |||
Net income | 15,018 | 15,018 | ||||
Cash dividends on Class A and Class B common stock | (1,153) | (1,153) | ||||
Reclassification adjustment to net income, net of tax | 101 | 101 | ||||
Balance, end of period at Mar. 31, 2019 | 264,267 | 5,418 | 1,569 | 6,573 | 264,217 | (13,510) |
Balance, beginning of period at Dec. 31, 2018 | 250,704 | 5,352 | 1,569 | 7,042 | 250,352 | (13,611) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 33,257 | |||||
Balance, end of period at Sep. 30, 2019 | 283,255 | 5,425 | 1,569 | 9,829 | 279,801 | (13,369) |
Balance, beginning of period at Mar. 31, 2019 | 264,267 | 5,418 | 1,569 | 6,573 | 264,217 | (13,510) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 1,249 | 5 | 1,244 | |||
Purchase of treasury shares | (85) | (2) | (83) | |||
Net income | 7,975 | 7,975 | ||||
Cash dividends on Class A and Class B common stock | (1,327) | (1,327) | ||||
Reclassification adjustment to net income, net of tax | 71 | 71 | ||||
Balance, end of period at Jun. 30, 2019 | 272,150 | 5,421 | 1,569 | 7,734 | 270,865 | (13,439) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 2,124 | 5 | 2,119 | |||
Purchase of treasury shares | (25) | (1) | (24) | |||
Net income | 10,264 | 10,264 | ||||
Cash dividends on Class A and Class B common stock | (1,328) | (1,328) | ||||
Reclassification adjustment to net income, net of tax | 70 | 70 | ||||
Balance, end of period at Sep. 30, 2019 | 283,255 | 5,425 | 1,569 | 9,829 | 279,801 | (13,369) |
Balance, beginning of period at Dec. 31, 2019 | 289,392 | 5,397 | 1,569 | 8,911 | 284,852 | (11,337) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 465 | 88 | 377 | |||
Purchase of treasury shares | (1,002) | (32) | (970) | |||
Net income | 6,166 | 6,166 | ||||
Cash dividends on Class A and Class B common stock | (1,339) | (1,339) | ||||
Reclassification adjustment to net income, net of tax | 155 | 155 | ||||
Balance, end of period at Mar. 31, 2020 | 293,837 | 5,453 | 1,569 | 8,318 | 289,679 | (11,182) |
Balance, beginning of period at Dec. 31, 2019 | 289,392 | 5,397 | 1,569 | 8,911 | 284,852 | (11,337) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 20,238 | |||||
Balance, end of period at Sep. 30, 2020 | 306,489 | 5,477 | 1,568 | 9,381 | 301,045 | (10,982) |
Balance, beginning of period at Mar. 31, 2020 | 293,837 | 5,453 | 1,569 | 8,318 | 289,679 | (11,182) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 634 | 10 | 624 | |||
Net income | 6,050 | 6,050 | ||||
Cash dividends on Class A and Class B common stock | (1,351) | (1,351) | ||||
Reclassification adjustment to net income, net of tax | 101 | 101 | ||||
Balance, end of period at Jun. 30, 2020 | 299,271 | 5,463 | 1,569 | 8,942 | 294,378 | (11,081) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 452 | 13 | 439 | |||
Conversion of Class B to Class A shares | 0 | 1 | (1) | |||
Net income | 8,022 | 8,022 | ||||
Cash dividends on Class A and Class B common stock | (1,355) | (1,355) | ||||
Reclassification adjustment to net income, net of tax | 99 | 99 | ||||
Balance, end of period at Sep. 30, 2020 | $ 306,489 | $ 5,477 | $ 1,568 | $ 9,381 | $ 301,045 | $ (10,982) |
Unaudited Condensed Consolida_8
Unaudited Condensed Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Cash dividends on common stock (in dollars per share) | $ 0.1925 | $ 0.1925 | $ 0.1900 | $ 0.1900 | $ 0.1900 | $ 0.1650 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation The accompanying Unaudited Condensed Consolidated Financial Statements include the accounts of NACCO Industries, Inc. ® (“NACCO”) and its wholly owned subsidiaries (collectively, “NACCO Industries, Inc. and Subsidiaries” or the “Company”). Intercompany accounts and transactions are eliminated in consolidation. NACCO is the public holding company for The North American Coal Corporation ® ("NACoal"). The Company has three operating segments: Coal Mining, North American Mining (“NAMining”) and Minerals Management. The Company also has unallocated items not directly attributable to a reportable segment. See Note 9 to the Unaudited Condensed Consolidated Financial Statements for further discussion of segment reporting. The Company’s operating segments are further described below: Coal Mining Segment During the nine months ended September 30, 2020, the operating coal mines were: Bisti Fuels LLC (“Bisti”), Caddo Creek Resources Company, LLC (“Caddo Creek”), The Coteau Properties Company (“Coteau”), Coyote Creek Mining Company, LLC (“Coyote Creek”), Demery Resources Company, LLC (“Demery”), The Falkirk Mining Company (“Falkirk”), Mississippi Lignite Mining Company (“MLMC”) and The Sabine Mining Company (“Sabine”). On September 30, 2020, Caddo Creek’s customer, a division of Cabot Corporation, entered into a long-term supply agreement with a subsidiary of Advanced Emissions Solutions (“AES”) as well as an agreement for the sale of the Marshall Mine, operated by Caddo Creek, to a subsidiary of AES. AES announced its intent to close the Marshall Mine. Caddo Creek entered into a contract with a subsidiary of AES to perform the required mine reclamation. In 2019, total tons delivered by the Coal Mining segment was 34.6 million tons, of which 0.2 million tons related to Caddo Creek. All production from the Sabine Mine is delivered to Southwestern Electric Power Company's Henry W. Pirkey Plant. The Pirkey power plant has been dispatched at a lower rate during the first nine months of 2020 compared with the first nine months of 2019, resulting in a 43% reduction in tons delivered in 2020 compared with 2019. During the third quarter of 2020, Sabine’s customer reduced its expected future annual deliveries to be between 1.4 million and 1.7 million tons of lignite coal. Sabine historically has delivered between 2.5 million and 3.5 million tons of lignite coal annually, including 2.6 million tons in 2019 and 3.8 million tons in 2018. The contract mining agreement between Camino Real Fuels, LLC (“Camino Real”) and its customer, Dos Republicas Coal Partnership (“DRCP”), terminated effective July 1, 2020 as a result of the unexpected termination by Comisión Federal de Electricidad (“CFE”) of its coal supply contract with an affiliate of DRCP. The termination of the contract between CFE and DRCP eliminated DRCP’s need for coal from Camino Real's Eagle Pass Mine, and resulted in mine closure. Mine reclamation is the responsibility of DRCP. Camino Real has no legal obligation to perform mine reclamation. The Company received certain inventory as well as a securitized note in settlement of the outstanding receivable balance due from DRCP. During the fourth quarter of 2020, the Company received payment for the outstanding balance on the securitized note, which was $2.3 million as of September 30, 2020, and is included within Other current assets on the Unaudited Condensed Consolidated Balance Sheet. At all operating coal mines other than MLMC, the Company is paid a management fee per ton of coal or heating unit (MMBtu) delivered. Each contract specifies the indices and mechanics by which fees change over time, generally in line with broad measures of U.S. inflation. The customers are responsible for funding all mine operating costs, including final mine reclamation, and directly or indirectly providing all of the capital required to build and operate the mine. This contract structure eliminates exposure to spot coal market price fluctuations while providing steady income and cash flow with minimal capital investment. Other than at Coyote Creek, debt financing provided by or supported by the customers is without recourse to NACCO and NACoal. See Note 7 for further discussion of Coyote Creek's guarantees. All operating coal mines other than MLMC meet the definition of a variable interest entity (“VIE”). In each case, NACCO is not the primary beneficiary of the VIE as it does not exercise financial control; therefore, NACCO does not consolidate the results of these operations within its financial statements. Instead, these contracts are accounted for as equity method investments. The income before income taxes associated with these VIE's is reported as Earnings of unconsolidated operations on the Consolidated Statements of Operations and the Company’s investment is reported on the line Investments in unconsolidated subsidiaries in the Consolidated Balance Sheets. The mines that meet the definition of a VIE are referred to collectively as the “Unconsolidated Subsidiaries.” For tax purposes, the Unconsolidated Subsidiaries are included within the NACCO consolidated U.S. tax return; therefore, the income tax expense line on the Consolidated Statements of Operations includes income taxes related to these entities. All of the Unconsolidated Subsidiaries are accounted for under the equity method. See Note 7 for further discussion. Camino Real and Caddo Creek previously met the definition of a variable interest entity of which the Company was not the primary beneficiary and therefore NACCO did not consolidate the results of operations within its financial statements. As a result of the events described above, Camino Real and Caddo Creek are no longer VIEs. Camino Real’s financial position was consolidated within NACCO’s financial statements beginning on June 30, 2020. Camino Real’s results of operations for the three months ended September 30, 2020 did not materially change the Company's Unaudited Condensed Consolidated Statements of Operations. Caddo Creek’s financial position will be consolidated within NACCO’s financial statements beginning in the fourth quarter of 2020. The consolidation of these entities will not materially change the Company’s Unaudited Condensed Consolidated Balance Sheet. The MLMC contract is the only operating coal contract in which the Company is responsible for all operating costs, capital requirements and final mine reclamation; therefore, MLMC is consolidated within NACCO’s financial statements. MLMC sells coal to its customer at a contractually agreed-upon price which adjusts monthly, primarily based on changes in the level of established indices which reflect general U.S. inflation rates. As of September 30, 2020, all of the Liberty Fuels Company, LLC mine areas have been reclaimed and final mine reclamation activities, primarily monitoring, will continue until final bond release. Centennial Natural Resources (“Centennial”), located in Alabama, ceased coal production at the end of 2015. NAMining Segment The NAMining segment provides value-added contract mining and other services for producers of aggregates, lithium and other minerals. The segment is a primary platform for the Company’s growth and diversification outside of the coal industry. NAMining provides contract mining services for independently owned mines and quarries, creating value for its customers by performing the mining aspects of its customers’ operations. This allows customers to focus on their areas of expertise: materials handling and processing, product sales and distribution. NAMining operates primarily at limestone quarries in Florida, but is focused on expanding outside of Florida and into mining materials other than limestone. During 2019, the Company entered into a mining agreement, through a new subsidiary, Sawtooth Mining, to serve as exclusive contract miner for the Thacker Pass lithium project in northern Nevada. The Thacker Pass Project is 100% owned by Lithium Nevada Corp. Sawtooth Mining will provide comprehensive mining services and certain equipment during the 20-year contract term. During the development of the project, Sawtooth Mining will provide Lithium Nevada $3.5 million in cash to assist in project development, of which $3.0 million and $1.5 million has been provided as of September 30, 2020 and December 31, 2019, respectively, and included within Other non-current assets on the Unaudited Condensed Consolidated Balance Sheets. Lithium Nevada is in the process of securing permits and currently expects to commence construction in 2021 and production of lithium products in 2023. NAMining utilizes both fixed price and cost plus management fee contract structures. Certain of the entities within the NAMining segment are VIEs and are accounted for under the equity method as Unconsolidated Subsidiaries. See Note 7 for further discussion. Minerals Management Segment The Minerals Management segment promotes the development of the Company’s gas, oil and coal reserves, generating income primarily from royalty-based lease payments from third parties. The Company’s gas, oil and undeveloped coal reserves are located in Ohio (Utica and Marcellus shale natural gas), Louisiana (Haynesville shale and Cotton Valley formation natural gas), Mississippi (coal), Pennsylvania (coal, coalbed methane and Marcellus shale natural gas), Alabama (coal and coalbed methane and natural gas) and North Dakota (coal). The majority of the Company’s existing reserves were acquired as part of its historical coal mining operations. The Minerals Management segment derives income primarily by entering into contracts with third-party operators, granting them the rights to explore, produce and sell natural resources in exchange for royalty payments based on the lessees' sales of natural gas and, to a lesser extent, oil and coal. Specialized employees in the Minerals Management segment also provide surface and mineral acquisition and lease maintenance services related to Company operations. Basis of Presentation: These financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position of the Company at September 30, 2020, the results of its operations, comprehensive income, cash flows and changes in equity for the nine months ended September 30, 2020 and 2019 have been included. These Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019. The balance sheet at December 31, 2019 has been derived from the audited financial statements at that date but does not include all of the information or notes required by U.S. GAAP for complete financial statements. Certain amounts in prior period Unaudited Condensed Consolidated Financial Statements have been reclassified to conform to the current period's presentation. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Nature of Performance Obligations At contract inception, the Company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promised good or service that is distinct. To identify the performance obligations, the Company considers all of the goods or services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. Each mine or mine area has a contract with its respective customer that represents a contract under ASC 606. For its consolidated entities, the Company’s performance obligations vary by contract and consist of the following: At MLMC, each MMBtu delivered during the production period is considered a separate performance obligation. Revenue is recognized at the point in time that control of each MMBtu of lignite transfers to the customer. Fluctuations in revenue from period to period generally result from changes in customer demand. At NAMining entities, the management service to oversee the operation of the equipment and delivery of limestone is the performance obligation accounted for as a series. Performance momentarily creates an asset that the customer simultaneously receives and consumes; therefore, control is transferred to the customer over time. Consistent with the conclusion that the customer simultaneously receives and consumes the benefits provided, an input-based measure of progress is appropriate. As each month of service is completed, revenue is recognized for the amount of actual costs incurred, plus the management fee and the general and administrative fee (as applicable). Fluctuations in revenue from period to period result from changes in customer demand and variances in reimbursable costs primarily due to increases and decreases in activity levels on individual contracts. The Company enters into royalty contracts which grant the right to explore, develop, produce and sell minerals controlled by the Company. These arrangements result in the transfer of mineral rights for a period of time; however, no rights to the actual land are granted other than access for purposes of exploration, development, production and sales. The mineral rights revert back to the Company at the expiration of the contract. Under these royalty contracts, granting exclusive right, title, and interest in and to minerals, if any, is the performance obligation. The performance obligation under these contracts represents a series of distinct goods or services whereby each day of access that is provided is distinct. The transaction price consists of a variable sales-based royalty and, in certain arrangements, a fixed component in the form of an up-front lease bonus payment. As the amount of consideration the Company will ultimately be entitled to is entirely susceptible to factors outside its control, the entire amount of variable consideration is constrained at contract inception. The fixed portion of the transaction price will be recognized over the primary term of the contract, which is generally five years. Significant Judgments The Company’s contracts with its customers contain different types of variable consideration including, but not limited to, management fees that adjust based on coal volumes or MMBtu delivered or limestone yards, however, the terms of these variable payments relate specifically to the Company's efforts to satisfy one or more, but not all of, the performance obligations (or to a specific outcome from satisfying the performance obligations), in the contract. Therefore, the Company allocates each variable payment (and subsequent changes to that payment) entirely to the specific performance obligation to which it relates. Management fees, as well as general and administrative fees, are also adjusted based on changes in specified indices (e.g., CPI) to compensate for general inflation changes. Index adjustments, if applicable, are effective prospectively. Certain contracts include reimbursement of actual costs incurred. Disaggregation of Revenue In accordance with ASC 606-10-50, the Company disaggregates revenue from contracts with customers into major goods and service lines and timing of transfer of goods and services. The Company determined that disaggregating revenue into these categories achieves the disclosure objective of depicting how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. The Company’s business consists of the Coal Mining, NAMining and Minerals Management segments as well as Unallocated Items. See Note 9 to the Unaudited Condensed Consolidated Financial Statements for further discussion of segment reporting. The following table disaggregates revenue by major sources: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 Major Goods/Service Lines 2020 2019 2020 2019 Coal Mining $ 20,395 $ 18,799 $ 62,896 $ 58,119 NAMining 9,443 8,993 33,115 30,496 Minerals Management 2,722 5,022 9,950 25,950 Unallocated Items 904 52 1,257 726 Eliminations (1,169) (263) (1,924) (1,239) Total revenues $ 32,295 $ 32,603 $ 105,294 $ 114,052 Timing of Revenue Recognition Goods transferred at a point in time $ 19,871 $ 18,049 $ 61,131 $ 56,012 Services transferred over time 12,424 14,554 44,163 58,040 Total revenues $ 32,295 $ 32,603 $ 105,294 $ 114,052 Contract Balances The opening and closing balances of the Company’s current and long-term contract liabilities and receivables are as follows: Contract balances Trade accounts receivable, net Contract liability (current) Contract liability (long-term) Balance, January 1, 2020 $ 15,444 $ 944 $ 2,153 Balance, September 30, 2020 16,507 941 1,448 Increase (decrease) $ 1,063 $ (3) $ (705) As described above, the Company enters into royalty contracts that grant exclusive right, title, and interest in and to minerals. The transaction price consists of a variable sales-based royalty and, in certain arrangements, a fixed component in the form of an up-front lease bonus payment. The timing of the payment of the fixed portion of the transaction price is upfront, however, the performance obligation is satisfied over the primary term of the contract, which is generally five years. Therefore, at the time any such up-front payment is received, a contract liability is recorded which represents deferred revenue. The difference between the opening and closing balance of this contract liability, which is shown above, primarily results from the difference between new lease bonus payments received and amortization of up-front lease bonus payments received in previous periods. The amount of revenue recognized in the three months ended September 30, 2020 and September 30, 2019 that was included in the opening contract liability was $0.2 million and $0.1 million, respectively. The amount of revenue recognized in the nine months ended September 30, 2020 and September 30, 2019 that was included in the opening contract liability was $0.7 million and $0.5 million, respectively. This revenue consists of up-front lease bonus payments received under royalty contracts that are recognized over the primary term of the royalty contracts, which are generally five years. The Company expects to recognize an additional $0.2 million in the remainder of 2020, $0.9 million in 2021, $0.7 million in 2022, $0.3 million in 2023, and $0.1 million in 2024 related to the contract liability remaining at September 30, 2020. The difference between the opening and closing balances of the Company’s accounts receivable and contract liabilities results from the timing difference between the Company’s performance and the customer’s payment. Contracts with payments in arrears are recognized as receivables. The Company has no contract assets recognized from the costs to obtain or fulfill a contract with a customer. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are summarized as follows: SEPTEMBER 30 DECEMBER 31 Coal $ 12,161 $ 15,700 Mining supplies 30,272 24,765 Total inventories $ 42,433 $ 40,465 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases NACCO adopted ASU 2016-02, Leases (Topic 842), on January 1, 2019. The most significant effect to the Unaudited Condensed Consolidated Balance Sheets relates to the recognition of new right-of-use assets and lease liabilities for operating leases of real estate, mining and other equipment that expire at various dates through 2031. The majority of the Company's leases are operating leases. See the table below for further information on the balances included in the Unaudited Condensed Consolidated Balance Sheets. Several leases include renewal or fair value purchase options, which are not recognized on the Unaudited Condensed Consolidated Balance Sheets. The Company's lease agreements do not contain lease payments that depend on an index or a rate, as such, minimum lease payments do not include variable lease payments. Leased assets and liabilities include the following: Description Location SEPTEMBER 30 DECEMBER 31 Assets Operating Operating lease right-of-use assets $ 10,448 $ 11,398 Finance Property, plant and equipment, net (a) $ 144 $ 544 Liabilities Current Operating Other current liabilities $ 1,296 $ 1,318 Finance Current maturities of long-term debt $ 44 $ 558 Noncurrent Operating Operating lease liabilities $ 11,494 $ 12,448 Finance Long-term debt $ 103 $ 85 (a) Finance leased assets are recorded net of accumulated amortization of less than $0.1 million and $1.9 million as of September 30, 2020 and December 31, 2019, respectively. The components of lease expense were as follows: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 Description Location 2020 2019 2020 2019 Lease expense Operating lease cost Selling, general and administrative expenses $ 499 $ 569 $ 1,513 $ 1,783 Finance lease cost: Amortization of leased assets Cost of sales 10 104 113 300 Interest on lease liabilities Interest expense 2 4 8 10 Variable lease expense Selling, general and administrative expenses 157 141 444 416 Short-term lease expense Selling, general and administrative expenses 89 79 248 242 Total lease expense $ 757 $ 897 $ 2,326 $ 2,751 Future minimum finance and operating lease payments were as follows at September 30, 2020: Finance Operating Total Remainder of 2020 $ 13 $ 532 $ 545 2021 49 2,113 2,162 2022 49 2,162 2,211 2023 28 1,685 1,713 2024 12 1,660 1,672 Subsequent to 2024 7 9,421 9,428 Total minimum lease payments $ 158 $ 17,573 $ 17,731 Amounts representing interest 11 4,783 Present value of net minimum lease payments $ 147 $ 12,790 As most of the Company's leases do not provide an implicit rate, the Company determines the incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The Company considers its credit rating and the current economic environment in determining this collateralized rate. The assumptions used in accounting for ASC 842 were as follows: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 Lease term and discount rate 2020 2019 2020 2019 Weighted average remaining lease term (years) Operating 9.19 9.76 9.19 9.76 Finance 3.47 1.95 3.47 1.95 Weighted average discount rate Operating 7.01 % 6.99 % 7.01 % 6.99 % Finance 3.96 % 5.36 % 3.96 % 5.36 % The following table details cash paid for amounts included in the measurement of lease liabilities: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 Cash paid for amounts included in the measurement of lease liabilities 2020 2019 2020 2019 Operating cash flows from operating leases $ 532 $ 608 $ 1,646 $ 1,768 Operating cash flows from finance leases $ 2 $ 4 $ 8 $ 10 Financing cash flows from finance leases $ 9 $ 115 $ 551 $ 347 |
Leases | Leases NACCO adopted ASU 2016-02, Leases (Topic 842), on January 1, 2019. The most significant effect to the Unaudited Condensed Consolidated Balance Sheets relates to the recognition of new right-of-use assets and lease liabilities for operating leases of real estate, mining and other equipment that expire at various dates through 2031. The majority of the Company's leases are operating leases. See the table below for further information on the balances included in the Unaudited Condensed Consolidated Balance Sheets. Several leases include renewal or fair value purchase options, which are not recognized on the Unaudited Condensed Consolidated Balance Sheets. The Company's lease agreements do not contain lease payments that depend on an index or a rate, as such, minimum lease payments do not include variable lease payments. Leased assets and liabilities include the following: Description Location SEPTEMBER 30 DECEMBER 31 Assets Operating Operating lease right-of-use assets $ 10,448 $ 11,398 Finance Property, plant and equipment, net (a) $ 144 $ 544 Liabilities Current Operating Other current liabilities $ 1,296 $ 1,318 Finance Current maturities of long-term debt $ 44 $ 558 Noncurrent Operating Operating lease liabilities $ 11,494 $ 12,448 Finance Long-term debt $ 103 $ 85 (a) Finance leased assets are recorded net of accumulated amortization of less than $0.1 million and $1.9 million as of September 30, 2020 and December 31, 2019, respectively. The components of lease expense were as follows: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 Description Location 2020 2019 2020 2019 Lease expense Operating lease cost Selling, general and administrative expenses $ 499 $ 569 $ 1,513 $ 1,783 Finance lease cost: Amortization of leased assets Cost of sales 10 104 113 300 Interest on lease liabilities Interest expense 2 4 8 10 Variable lease expense Selling, general and administrative expenses 157 141 444 416 Short-term lease expense Selling, general and administrative expenses 89 79 248 242 Total lease expense $ 757 $ 897 $ 2,326 $ 2,751 Future minimum finance and operating lease payments were as follows at September 30, 2020: Finance Operating Total Remainder of 2020 $ 13 $ 532 $ 545 2021 49 2,113 2,162 2022 49 2,162 2,211 2023 28 1,685 1,713 2024 12 1,660 1,672 Subsequent to 2024 7 9,421 9,428 Total minimum lease payments $ 158 $ 17,573 $ 17,731 Amounts representing interest 11 4,783 Present value of net minimum lease payments $ 147 $ 12,790 As most of the Company's leases do not provide an implicit rate, the Company determines the incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The Company considers its credit rating and the current economic environment in determining this collateralized rate. The assumptions used in accounting for ASC 842 were as follows: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 Lease term and discount rate 2020 2019 2020 2019 Weighted average remaining lease term (years) Operating 9.19 9.76 9.19 9.76 Finance 3.47 1.95 3.47 1.95 Weighted average discount rate Operating 7.01 % 6.99 % 7.01 % 6.99 % Finance 3.96 % 5.36 % 3.96 % 5.36 % The following table details cash paid for amounts included in the measurement of lease liabilities: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 Cash paid for amounts included in the measurement of lease liabilities 2020 2019 2020 2019 Operating cash flows from operating leases $ 532 $ 608 $ 1,646 $ 1,768 Operating cash flows from finance leases $ 2 $ 4 $ 8 $ 10 Financing cash flows from finance leases $ 9 $ 115 $ 551 $ 347 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Stock Repurchase Program: On November 6, 2019, the Company's Board of Directors approved a stock purchase program ("2019 Stock Repurchase Program") providing for the purchase of up to $25 million of the Company's outstanding Class A Common Stock through December 31, 2021. NACCO's previous repurchase program ("2018 Stock Repurchase Program") would have expired on December 31, 2019 but was terminated and replaced by the 2019 Stock Repurchase Program. As a result of the uncertainty surrounding the COVID-19 pandemic, the Company suspended repurchasing shares under the 2019 Stock Repurchase Program in March 2020. Prior to the decision to cease share repurchases, the Company repurchased 32,286 shares of Class A Common Stock under the 2019 Stock Repurchase Program for an aggregate purchase price of $1.0 million during the nine months ended September 30, 2020. During the three and nine months ended September 30, 2019, the Company repurchased 525 and 39,049 shares, respectively, of Class A Common Stock under the 2018 Stock Repurchase Program for an aggregate purchase price of less than $0.1 million and $1.4 million, respectively. The timing and amount of any repurchases under the 2019 Stock Repurchase Program are determined at the discretion of the Company's management based on a number of factors, including the availability of capital, other capital allocation alternatives, market conditions for the Company's Class A Common Stock and other legal and contractual restrictions. The 2019 Stock Repurchase Program does not require the Company to acquire any specific number of shares and may be modified, suspended, extended or terminated by the Company without prior notice and may be executed through open market purchases, privately negotiated transactions or otherwise. All or part of the repurchases under the 2019 Stock Repurchase Program may be implemented under a Rule 10b5-1 trading plan, which would allow repurchases under pre-set terms at times when the Company might otherwise be restricted from doing so under applicable securities laws. |
Fair Value Disclosure
Fair Value Disclosure | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosure | Fair Value Disclosure Recurring Fair Value Measurements : The following table presents the Company's assets and liabilities accounted for at fair value on a recurring basis: Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs Description Date (Level 1) (Level 2) (Level 3) September 30, 2020 Assets: Equity securities $ 12,238 $ 12,238 $ — $ — $ 12,238 $ 12,238 $ — $ — December 31, 2019 Assets: Equity securities $ 10,120 $ 10,120 $ — $ — $ 10,120 $ 10,120 $ — $ — Bellaire Corporation (“Bellaire”) is a non-operating subsidiary of the Company with legacy liabilities relating to closed mining operations, primarily former Eastern U.S. underground coal mining operations. Prior to 2019, Bellaire established a $5.0 million mine water treatment trust (the "Mine Water Treatment Trust") to provide a financial assurance mechanism to assure the long-term treatment of post-mining discharge. Bellaire's Mine Water Treatment Trust invests in equity securities that are reported at fair value based upon quoted market prices in active markets for identical assets; therefore, they are classified as Level 1 within the fair value hierarchy. The Company recognized a gain of $0.5 million and $0.4 million in the three and nine months ended September 30, 2020, respectively, and a gain of $0.1 million and $1.1 million in the three and nine months ended September 30, 2019, respectively, related to the Mine Water Treatment Trust. During the second quarter of 2020, the Company invested $2.0 million in equity securities of a public company with a diversified portfolio of royalty producing mineral interests. The investment is reported at fair value based upon quoted market prices in active markets for identical assets; therefore, it is classified as Level 1 within the fair value hierarchy. The Company recognized a loss of $0.5 million and $0.1 million in the three and nine months ended September 30, 2020, respectively, related to the investment in these equity securities. The gains and losses related to equity securities are reported on the line Gain on equity securities in the Other (income) expense section of the Unaudited Condensed Consolidated Statements of Operations. There were no transfers into or out of Levels 1, 2 or 3 during the three and nine months ended September 30, 2020 and 2019. |
Unconsolidated Subsidiaries
Unconsolidated Subsidiaries | 9 Months Ended |
Sep. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Unconsolidated Subsidiaries | Unconsolidated Subsidiaries Each of NACoal's wholly owned Unconsolidated Subsidiaries, within the Coal Mining and NAMining segments, meet the definition of a VIE. The Unconsolidated Subsidiaries are capitalized primarily with debt financing provided by or supported by their respective customers, and other than at Coyote Creek, without recourse to NACCO and NACoal. Although NACoal owns 100% of the equity and manages the daily operations of the Unconsolidated Subsidiaries, the Company has determined that the equity capital provided by NACoal is not sufficient to adequately finance the ongoing activities or absorb any expected losses without additional support from the customers. The customers have a controlling financial interest and have the power to direct the activities that most significantly affect the economic performance of the entities. As a result, the Company is not the primary beneficiary and therefore does not consolidate these entities' financial positions or results of operations. See Note 1 for a discussion of these entities. The Investment in the unconsolidated subsidiaries and related tax positions totaled $25.5 million and $24.6 million at September 30, 2020 and December 31, 2019, respectively. The Company's maximum risk of loss relating to these entities is limited to its invested capital, which was $4.4 million and $5.0 million at September 30, 2020 and December 31, 2019, respectively. NACoal is a party to certain guarantees related to Coyote Creek. Under certain circumstances of default or termination of Coyote Creek’s Lignite Sales Agreement (“LSA”), NACoal would be obligated for payment of a "make-whole" amount to Coyote Creek’s third-party lenders. The “make-whole” amount is based on the excess, if any, of the discounted value of the remaining scheduled debt payments over the principal amount. In addition, in the event Coyote Creek’s LSA is terminated on or after January 1, 2024 by Coyote Creek’s customers, NACoal is obligated to purchase Coyote Creek’s dragline and rolling stock for the then net book value of those assets. To date, no payments have been required from NACoal since the inception of these guarantees. The Company believes that the likelihood NACoal would be required to perform under the guarantees is remote, and no amounts related to these guarantees have been recorded. Summarized financial information for the Unconsolidated Subsidiaries is as follows: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 2020 2019 2020 2019 Gross profit $ 18,046 $ 20,059 $ 49,792 $ 53,826 Income before income taxes $ 15,629 $ 17,827 $ 45,673 $ 49,080 |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Various legal and regulatory proceedings and claims have been or may be asserted against NACCO and certain subsidiaries relating to the conduct of their businesses. These proceedings and claims are incidental to the ordinary course of business of the Company. Management believes that it has meritorious defenses and will vigorously defend the Company in these actions. Any costs that management estimates will be paid as a result of these claims are accrued when the liability is considered probable and the amount can be reasonably estimated. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. The Company does not accrue liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated or when the liability is believed to be only reasonably possible or remote. For contingencies where an unfavorable outcome is probable or reasonably possible and which are material, the Company discloses the nature of the contingency and, in some circumstances, an estimate of the possible loss. These matters are subject to inherent uncertainties, and unfavorable rulings could occur. If an unfavorable ruling were to occur, there exists the possibility of an adverse impact on the Company’s financial position, results of operations and cash flows of the period in which the ruling occurs, or in future periods. |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company's operating segments are: (i) Coal Mining, (ii) NAMining and (iii) Minerals Management. While the Company continues to pursue opportunities to add new coal mining operations to the Coal Mining segment, the NAMining segment serves as the platform for pursuing non-coal mining projects and the Minerals Management segment promotes the development of the Company's gas, oil and coal reserves. The Company determines its reportable segments by first identifying its operating segments, and then by assessing whether any components of these segments constitute a business for which discrete financial information is available and where segment management regularly reviews the operating results of that component. The Company’s Chief Operating Decision Maker utilizes operating profit to evaluate segment performance and allocate resources. The Company also has unallocated items not directly attributable to a reportable segment which are not included as part of the measurement of segment operating profit, primarily administrative costs related to public company reporting requirements, the financial results of the Company’s mitigation banking business, Mitigation Resources of North America ® (“MRNA”), and Bellaire. MRNA generates and sells stream and wetland mitigation credits (known as mitigation banking) and provides services to those engaged in permittee-responsible stream and wetland mitigation. Bellaire manages the Company’s long-term liabilities related to former Eastern U.S. underground mining activities. Transactions between segments are accounted for as third-party arrangements for purposes of presenting segment results of operations and are eliminated in consolidation. As of January 1, 2020, the Company retrospectively changed its computation of segment operating profit to reclassify certain expenses, primarily related to executive and board compensation. These expenses are now included in unallocated items. The change in segment reporting reflected a decision to evaluate the financial performance of the Company’s segments excluding executive and board compensation. All prior period segment information has been reclassified to conform to the new presentation. This segment reporting change has no impact on consolidated operating results. All financial statement line items below operating profit (other income including interest expense and interest income, the provision for income taxes and net income) are presented and discussed within this Form 10-Q on a consolidated basis. Included within other income on the line Income from other unconsolidated affiliates within the Unaudited Condensed Consolidated Statements of Operations is the financial results of NoDak Energy Services, LLC ("NoDak"). NoDak operated and maintained a coal drying system at a customer’s power plant. The NoDak contract expired in the first quarter of 2020. See Note 1 for additional discussion of the Company's reportable segments. The following tables present revenue, operating profit, depreciation expense and capital expenditures: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 2020 2019 2020 2019 Revenues Coal Mining $ 20,395 $ 18,799 $ 62,896 $ 58,119 NAMining 9,443 8,993 33,115 30,496 Minerals Management 2,722 5,022 9,950 25,950 Unallocated Items 904 52 1,257 726 Eliminations (1,169) (263) (1,924) (1,239) Total $ 32,295 $ 32,603 $ 105,294 $ 114,052 Operating profit (loss) Coal Mining $ 11,174 $ 10,492 $ 25,857 $ 27,761 NAMining 244 (358) 1,519 (743) Minerals Management 1,673 3,900 6,450 22,358 Unallocated Items (3,623) (5,470) (12,341) (15,336) Eliminations (70) 99 (25) 157 Total $ 9,398 $ 8,663 $ 21,460 $ 34,197 Expenditures for property, plant and equipment Coal Mining $ 3,150 $ 2,291 $ 7,817 $ 6,542 NAMining 3,220 4,971 10,406 6,213 Minerals Management 633 — 1,372 291 Unallocated Items — 35 207 218 Total $ 7,003 $ 7,297 $ 19,802 $ 13,264 Depreciation, depletion and amortization Coal Mining $ 3,793 $ 3,102 $ 10,951 $ 9,252 NAMining 723 588 2,021 1,699 Minerals Management 327 324 981 1,057 Unallocated Items 33 30 91 87 Total $ 4,876 $ 4,044 $ 14,044 $ 12,095 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company evaluates and updates its estimated annual effective income tax rate on a quarterly basis based on current and forecasted operating results and tax laws. Consequently, based upon the mix and timing of actual earnings compared to projections of earnings between entities that benefit from percentage depletion and those that do not, the effective tax rate may vary quarterly. The quarterly income tax provision is generally comprised of tax expense on income or a benefit on a loss at the most recent estimated annual effective income tax rate, adjusted for the effect of discrete items. The Company recorded income tax expense of $1.9 million for the three months ended September 30, 2020, or 18.8%, on income before income tax of $9.9 million, compared to income tax expense of $1.4 million, or 11.7%, on income before income tax of $11.6 million for the three months ended September 30, 2019. The three months ended September 30, 2020 include $4.2 million of discrete tax charges primarily related to settlement of tax examinations and changes in uncertain tax positions partially offset by a discrete tax benefit of $2.2 million, primarily due to return to provision adjustments. Discrete tax items in the three months ended September 30, 2019 were not material. The Company recorded income tax expense of $1.3 million for the nine months ended September 30, 2020, or 6.1%, on income before income tax of $21.6 million, compared to income tax expense of $5.5 million, or 14.1%, on income before income tax of $38.7 million for the nine months ended September 30, 2019. The nine months ended September 30, 2020 include $4.2 million of discrete tax charges primarily related to settlement of tax examinations and changes in uncertain tax positions partially offset by a benefit of $1.8 million, primarily due to return to provision adjustments. Discrete tax items in the nine months ended September 30, 2019 were not material. The return to provision adjustments recognized in 2020 include the utilization of the net operating loss carry back provisions allowed under the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") enacted in response to the COVID-19 pandemic. The CARES Act contains numerous income tax provisions, including among other items, temporary changes regarding the utilization of net operating losses. The CARES Act allows net operating tax losses incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. The Company’s estimated annual effective income tax rate, excluding discrete items, was (5.2%) and 14.0% for the nine months ended September 30, 2020 and 2019, respectively. The estimated annual effective income tax rate differs from the U.S. federal statutory rate due to the benefit from percentage depletion and in 2020 includes the benefit of utilizing the forecasted current year net operating tax loss that would otherwise be deductible at the current 21% statutory rate to offset taxable income in years that were taxed at a 35% rate. The Company expects to generate a net operating tax loss in 2020 primarily due to the realization of certain deferred tax assets. |
Asset Retirement Obligations
Asset Retirement Obligations | 9 Months Ended |
Sep. 30, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement ObligationsThe Company’s obligations associated with the retirement of long-lived assets are recognized at fair value at the time the legal obligations are incurred. Upon initial recognition of a liability, a corresponding amount is capitalized as part of the carrying value of the related long-lived asset and is depreciated either by the straight-line method or the units-of-production method. The liability is accreted each period until the liability is settled or the asset is sold, at which time the liability is removed. If the liability is settled for an amount other than the recorded amount, a gain or loss is recognized. The Company's asset retirement obligations are principally for costs to close its surface mines and reclaim the land it has disturbed as a result of its normal mining activities as well as for costs to dismantle certain mining equipment at the end of the life of the mine. Management’s estimate involves a high degree of subjectivity. In particular, the obligation’s fair value is determined using a discounted cash flow technique and is based upon mining permit requirements and various assumptions including credit adjusted risk-free-rates, estimates of disturbed acreage, life of the mine, reclamation costs, the application of various environmental laws and regulation and assumptions regarding equipment productivity. The Company reviews its asset retirement obligations at each mine site at least annually and makes necessary adjustments for permit changes and for revisions of estimates of the timing and extent of reclamation activities and cost estimates. The accretion of the liability is being recognized over the estimated life of each individual asset retirement obligation and is recorded in the line “Cost of sales” in the accompanying Unaudited Condensed Consolidated Statements of Operations. The associated asset is recorded in “Property, Plant and Equipment, net” in the accompanying Unaudited Condensed Consolidated Balance Sheets. The depreciation of the asset is recorded in the line “Cost of sales” in the accompanying Unaudited Condensed Consolidated Statements of Operations. A reconciliation of the Company's beginning and ending aggregate carrying amount of the asset retirement obligations is as follows: Coal Mining NAMining Unallocated Items NACCO Balance at December 31, 2019 $ 19,015 $ 604 $ 17,240 $ 36,859 Liabilities incurred during the period 9,809 — — 9,809 Liabilities settled during the period (5,957) — (562) (6,519) Accretion expense 1,296 28 1,023 2,347 Revision of estimated cash flows 600 — — 600 Balance at September 30, 2020 $ 24,763 $ 632 $ 17,701 $ 43,096 Asset retirement obligations are incurred at the time development of a new mine or mine area commences. During the third quarter of 2020, MLMC began development of a new mine area and as such, recorded an additional $9.8 million asset retirement obligation and a corresponding $9.8 million asset was capitalized as a component of Property, plant and equipment, net. The asset retirement obligation’s fair value was determined using a discounted cash flow technique and is based upon permit requirements and various estimates and assumptions that would be used by market participants, including estimates of disturbed acreage, reclamation costs and assumptions regarding equipment productivity. During the third quarter of 2020, the Company transferred the mine permits for certain Centennial mines to an unrelated third party. As of September 30, 2020, the Company has $10.7 million of surety bonds outstanding related to the mines associated with the transferred mine permits. The third party that acquired the mine permits is required as part of the transaction to transfer or replace $4.9 million of the Company's outstanding surety bonds during the fourth quarter of 2020 and transfer or replace the remaining $5.8 million of outstanding surety bonds as soon thereafter as it is able. If there is a claim under these surety bonds prior to the transfer or replacement of such bonds, the Company would be responsible to the surety company for any amounts it pays with respect to such claim, up to the amount of the outstanding surety bonds. As a result of the transfer of the mine permits, the Company was relieved of the associated mine reclamation obligations and therefore recorded a $4.8 million reduction to Centennial's asset retirement obligation, included in "Liabilities settled during the period" in the table above. In addition, as part of the transfer of the mine permits, the Company paid $1.9 million of cash, recorded $1.4 million in Other current assets for amounts owed to Centennial from the third-party acquirer, and recognized $1.9 million in Accounts payable and $2.4 million in Other long-term liabilities in the Unaudited Condensed Consolidated Balance Sheets. The liabilities are associated with amounts due to the third-party acquirer upon transfer or replacement of the surety bonds and a liability for the guarantee to stand ready to perform in the event there is a claim under the surety bonds. No payments have been required since the inception of these guarantees. Bellaire is a non-operating subsidiary of the Company with legacy liabilities relating to closed mining operations, primarily former Eastern U.S. underground coal mining operations. These legacy liabilities include obligations for water treatment and other environmental remediation that arose as part of the normal course of closing these underground mining operations. The accretion of the liability is recognized over the estimated life of the asset retirement obligation and is recorded in the line “Closed mine obligations” in the accompanying Unaudited Condensed Consolidated Statements of Operations. Since Bellaire's properties are no longer active operations, no associated asset has been capitalized. |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | The accompanying Unaudited Condensed Consolidated Financial Statements include the accounts of NACCO Industries, Inc. ® (“NACCO”) and its wholly owned subsidiaries (collectively, “NACCO Industries, Inc. and Subsidiaries” or the “Company”). Intercompany accounts and transactions are eliminated in consolidation. NACCO is the public holding company for The North American Coal Corporation ® ("NACoal"). The Company has three operating segments: Coal Mining, North American Mining (“NAMining”) and Minerals Management. The Company also has unallocated items not directly attributable to a reportable segment. See Note 9 to the Unaudited Condensed Consolidated Financial Statements for further discussion of segment reporting. The Company’s operating segments are further described below: Coal Mining Segment During the nine months ended September 30, 2020, the operating coal mines were: Bisti Fuels LLC (“Bisti”), Caddo Creek Resources Company, LLC (“Caddo Creek”), The Coteau Properties Company (“Coteau”), Coyote Creek Mining Company, LLC (“Coyote Creek”), Demery Resources Company, LLC (“Demery”), The Falkirk Mining Company (“Falkirk”), Mississippi Lignite Mining Company (“MLMC”) and The Sabine Mining Company (“Sabine”). On September 30, 2020, Caddo Creek’s customer, a division of Cabot Corporation, entered into a long-term supply agreement with a subsidiary of Advanced Emissions Solutions (“AES”) as well as an agreement for the sale of the Marshall Mine, operated by Caddo Creek, to a subsidiary of AES. AES announced its intent to close the Marshall Mine. Caddo Creek entered into a contract with a subsidiary of AES to perform the required mine reclamation. In 2019, total tons delivered by the Coal Mining segment was 34.6 million tons, of which 0.2 million tons related to Caddo Creek. All production from the Sabine Mine is delivered to Southwestern Electric Power Company's Henry W. Pirkey Plant. The Pirkey power plant has been dispatched at a lower rate during the first nine months of 2020 compared with the first nine months of 2019, resulting in a 43% reduction in tons delivered in 2020 compared with 2019. During the third quarter of 2020, Sabine’s customer reduced its expected future annual deliveries to be between 1.4 million and 1.7 million tons of lignite coal. Sabine historically has delivered between 2.5 million and 3.5 million tons of lignite coal annually, including 2.6 million tons in 2019 and 3.8 million tons in 2018. The contract mining agreement between Camino Real Fuels, LLC (“Camino Real”) and its customer, Dos Republicas Coal Partnership (“DRCP”), terminated effective July 1, 2020 as a result of the unexpected termination by Comisión Federal de Electricidad (“CFE”) of its coal supply contract with an affiliate of DRCP. The termination of the contract between CFE and DRCP eliminated DRCP’s need for coal from Camino Real's Eagle Pass Mine, and resulted in mine closure. Mine reclamation is the responsibility of DRCP. Camino Real has no legal obligation to perform mine reclamation. The Company received certain inventory as well as a securitized note in settlement of the outstanding receivable balance due from DRCP. During the fourth quarter of 2020, the Company received payment for the outstanding balance on the securitized note, which was $2.3 million as of September 30, 2020, and is included within Other current assets on the Unaudited Condensed Consolidated Balance Sheet. At all operating coal mines other than MLMC, the Company is paid a management fee per ton of coal or heating unit (MMBtu) delivered. Each contract specifies the indices and mechanics by which fees change over time, generally in line with broad measures of U.S. inflation. The customers are responsible for funding all mine operating costs, including final mine reclamation, and directly or indirectly providing all of the capital required to build and operate the mine. This contract structure eliminates exposure to spot coal market price fluctuations while providing steady income and cash flow with minimal capital investment. Other than at Coyote Creek, debt financing provided by or supported by the customers is without recourse to NACCO and NACoal. See Note 7 for further discussion of Coyote Creek's guarantees. All operating coal mines other than MLMC meet the definition of a variable interest entity (“VIE”). In each case, NACCO is not the primary beneficiary of the VIE as it does not exercise financial control; therefore, NACCO does not consolidate the results of these operations within its financial statements. Instead, these contracts are accounted for as equity method investments. The income before income taxes associated with these VIE's is reported as Earnings of unconsolidated operations on the Consolidated Statements of Operations and the Company’s investment is reported on the line Investments in unconsolidated subsidiaries in the Consolidated Balance Sheets. The mines that meet the definition of a VIE are referred to collectively as the “Unconsolidated Subsidiaries.” For tax purposes, the Unconsolidated Subsidiaries are included within the NACCO consolidated U.S. tax return; therefore, the income tax expense line on the Consolidated Statements of Operations includes income taxes related to these entities. All of the Unconsolidated Subsidiaries are accounted for under the equity method. See Note 7 for further discussion. Camino Real and Caddo Creek previously met the definition of a variable interest entity of which the Company was not the primary beneficiary and therefore NACCO did not consolidate the results of operations within its financial statements. As a result of the events described above, Camino Real and Caddo Creek are no longer VIEs. Camino Real’s financial position was consolidated within NACCO’s financial statements beginning on June 30, 2020. Camino Real’s results of operations for the three months ended September 30, 2020 did not materially change the Company's Unaudited Condensed Consolidated Statements of Operations. Caddo Creek’s financial position will be consolidated within NACCO’s financial statements beginning in the fourth quarter of 2020. The consolidation of these entities will not materially change the Company’s Unaudited Condensed Consolidated Balance Sheet. The MLMC contract is the only operating coal contract in which the Company is responsible for all operating costs, capital requirements and final mine reclamation; therefore, MLMC is consolidated within NACCO’s financial statements. MLMC sells coal to its customer at a contractually agreed-upon price which adjusts monthly, primarily based on changes in the level of established indices which reflect general U.S. inflation rates. As of September 30, 2020, all of the Liberty Fuels Company, LLC mine areas have been reclaimed and final mine reclamation activities, primarily monitoring, will continue until final bond release. Centennial Natural Resources (“Centennial”), located in Alabama, ceased coal production at the end of 2015. NAMining Segment The NAMining segment provides value-added contract mining and other services for producers of aggregates, lithium and other minerals. The segment is a primary platform for the Company’s growth and diversification outside of the coal industry. NAMining provides contract mining services for independently owned mines and quarries, creating value for its customers by performing the mining aspects of its customers’ operations. This allows customers to focus on their areas of expertise: materials handling and processing, product sales and distribution. NAMining operates primarily at limestone quarries in Florida, but is focused on expanding outside of Florida and into mining materials other than limestone. During 2019, the Company entered into a mining agreement, through a new subsidiary, Sawtooth Mining, to serve as exclusive contract miner for the Thacker Pass lithium project in northern Nevada. The Thacker Pass Project is 100% owned by Lithium Nevada Corp. Sawtooth Mining will provide comprehensive mining services and certain equipment during the 20-year contract term. During the development of the project, Sawtooth Mining will provide Lithium Nevada $3.5 million in cash to assist in project development, of which $3.0 million and $1.5 million has been provided as of September 30, 2020 and December 31, 2019, respectively, and included within Other non-current assets on the Unaudited Condensed Consolidated Balance Sheets. Lithium Nevada is in the process of securing permits and currently expects to commence construction in 2021 and production of lithium products in 2023. NAMining utilizes both fixed price and cost plus management fee contract structures. Certain of the entities within the NAMining segment are VIEs and are accounted for under the equity method as Unconsolidated Subsidiaries. See Note 7 for further discussion. Minerals Management Segment The Minerals Management segment promotes the development of the Company’s gas, oil and coal reserves, generating income primarily from royalty-based lease payments from third parties. The Company’s gas, oil and undeveloped coal reserves are located in Ohio (Utica and Marcellus shale natural gas), Louisiana (Haynesville shale and Cotton Valley formation natural gas), Mississippi (coal), Pennsylvania (coal, coalbed methane and Marcellus shale natural gas), Alabama (coal and coalbed methane and natural gas) and North Dakota (coal). The majority of the Company’s existing reserves were acquired as part of its historical coal mining operations. The Minerals Management segment derives income primarily by entering into contracts with third-party operators, granting them the rights to explore, produce and sell natural resources in exchange for royalty payments based on the lessees' sales of natural gas and, to a lesser extent, oil and coal. Specialized employees in the Minerals Management segment also provide surface and mineral acquisition and lease maintenance services related to Company operations. |
Basis of Presentation | Basis of Presentation: These financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position of the Company at September 30, 2020, the results of its operations, comprehensive income, cash flows and changes in equity for the nine months ended September 30, 2020 and 2019 have been included. These Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019. The balance sheet at December 31, 2019 has been derived from the audited financial statements at that date but does not include all of the information or notes required by U.S. GAAP for complete financial statements. Certain amounts in prior period Unaudited Condensed Consolidated Financial Statements have been reclassified to conform to the current period's presentation. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates revenue by major sources: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 Major Goods/Service Lines 2020 2019 2020 2019 Coal Mining $ 20,395 $ 18,799 $ 62,896 $ 58,119 NAMining 9,443 8,993 33,115 30,496 Minerals Management 2,722 5,022 9,950 25,950 Unallocated Items 904 52 1,257 726 Eliminations (1,169) (263) (1,924) (1,239) Total revenues $ 32,295 $ 32,603 $ 105,294 $ 114,052 Timing of Revenue Recognition Goods transferred at a point in time $ 19,871 $ 18,049 $ 61,131 $ 56,012 Services transferred over time 12,424 14,554 44,163 58,040 Total revenues $ 32,295 $ 32,603 $ 105,294 $ 114,052 |
Contract Balances | The opening and closing balances of the Company’s current and long-term contract liabilities and receivables are as follows: Contract balances Trade accounts receivable, net Contract liability (current) Contract liability (long-term) Balance, January 1, 2020 $ 15,444 $ 944 $ 2,153 Balance, September 30, 2020 16,507 941 1,448 Increase (decrease) $ 1,063 $ (3) $ (705) |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories are summarized as follows: SEPTEMBER 30 DECEMBER 31 Coal $ 12,161 $ 15,700 Mining supplies 30,272 24,765 Total inventories $ 42,433 $ 40,465 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of Leased Assets and Liabilities | Leased assets and liabilities include the following: Description Location SEPTEMBER 30 DECEMBER 31 Assets Operating Operating lease right-of-use assets $ 10,448 $ 11,398 Finance Property, plant and equipment, net (a) $ 144 $ 544 Liabilities Current Operating Other current liabilities $ 1,296 $ 1,318 Finance Current maturities of long-term debt $ 44 $ 558 Noncurrent Operating Operating lease liabilities $ 11,494 $ 12,448 Finance Long-term debt $ 103 $ 85 (a) Finance leased assets are recorded net of accumulated amortization of less than $0.1 million and $1.9 million as of September 30, 2020 and December 31, 2019, respectively. |
Lease Expense | The components of lease expense were as follows: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 Description Location 2020 2019 2020 2019 Lease expense Operating lease cost Selling, general and administrative expenses $ 499 $ 569 $ 1,513 $ 1,783 Finance lease cost: Amortization of leased assets Cost of sales 10 104 113 300 Interest on lease liabilities Interest expense 2 4 8 10 Variable lease expense Selling, general and administrative expenses 157 141 444 416 Short-term lease expense Selling, general and administrative expenses 89 79 248 242 Total lease expense $ 757 $ 897 $ 2,326 $ 2,751 |
Finance Leases, Future Minimum Payments | Future minimum finance and operating lease payments were as follows at September 30, 2020: Finance Operating Total Remainder of 2020 $ 13 $ 532 $ 545 2021 49 2,113 2,162 2022 49 2,162 2,211 2023 28 1,685 1,713 2024 12 1,660 1,672 Subsequent to 2024 7 9,421 9,428 Total minimum lease payments $ 158 $ 17,573 $ 17,731 Amounts representing interest 11 4,783 Present value of net minimum lease payments $ 147 $ 12,790 |
Operating Leases, Future Minimum Payments | Future minimum finance and operating lease payments were as follows at September 30, 2020: Finance Operating Total Remainder of 2020 $ 13 $ 532 $ 545 2021 49 2,113 2,162 2022 49 2,162 2,211 2023 28 1,685 1,713 2024 12 1,660 1,672 Subsequent to 2024 7 9,421 9,428 Total minimum lease payments $ 158 $ 17,573 $ 17,731 Amounts representing interest 11 4,783 Present value of net minimum lease payments $ 147 $ 12,790 |
Assumptions Used for Leases | The assumptions used in accounting for ASC 842 were as follows: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 Lease term and discount rate 2020 2019 2020 2019 Weighted average remaining lease term (years) Operating 9.19 9.76 9.19 9.76 Finance 3.47 1.95 3.47 1.95 Weighted average discount rate Operating 7.01 % 6.99 % 7.01 % 6.99 % Finance 3.96 % 5.36 % 3.96 % 5.36 % |
Supplemental Cash Flow Information | The following table details cash paid for amounts included in the measurement of lease liabilities: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 Cash paid for amounts included in the measurement of lease liabilities 2020 2019 2020 2019 Operating cash flows from operating leases $ 532 $ 608 $ 1,646 $ 1,768 Operating cash flows from finance leases $ 2 $ 4 $ 8 $ 10 Financing cash flows from finance leases $ 9 $ 115 $ 551 $ 347 |
Fair Value Disclosure (Tables)
Fair Value Disclosure (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents the Company's assets and liabilities accounted for at fair value on a recurring basis: Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs Description Date (Level 1) (Level 2) (Level 3) September 30, 2020 Assets: Equity securities $ 12,238 $ 12,238 $ — $ — $ 12,238 $ 12,238 $ — $ — December 31, 2019 Assets: Equity securities $ 10,120 $ 10,120 $ — $ — $ 10,120 $ 10,120 $ — $ — |
Unconsolidated Subsidiaries (Ta
Unconsolidated Subsidiaries (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Financial Information for Unconsolidated Subsidiaries | Summarized financial information for the Unconsolidated Subsidiaries is as follows: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 2020 2019 2020 2019 Gross profit $ 18,046 $ 20,059 $ 49,792 $ 53,826 Income before income taxes $ 15,629 $ 17,827 $ 45,673 $ 49,080 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting Information | The following tables present revenue, operating profit, depreciation expense and capital expenditures: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 2020 2019 2020 2019 Revenues Coal Mining $ 20,395 $ 18,799 $ 62,896 $ 58,119 NAMining 9,443 8,993 33,115 30,496 Minerals Management 2,722 5,022 9,950 25,950 Unallocated Items 904 52 1,257 726 Eliminations (1,169) (263) (1,924) (1,239) Total $ 32,295 $ 32,603 $ 105,294 $ 114,052 Operating profit (loss) Coal Mining $ 11,174 $ 10,492 $ 25,857 $ 27,761 NAMining 244 (358) 1,519 (743) Minerals Management 1,673 3,900 6,450 22,358 Unallocated Items (3,623) (5,470) (12,341) (15,336) Eliminations (70) 99 (25) 157 Total $ 9,398 $ 8,663 $ 21,460 $ 34,197 Expenditures for property, plant and equipment Coal Mining $ 3,150 $ 2,291 $ 7,817 $ 6,542 NAMining 3,220 4,971 10,406 6,213 Minerals Management 633 — 1,372 291 Unallocated Items — 35 207 218 Total $ 7,003 $ 7,297 $ 19,802 $ 13,264 Depreciation, depletion and amortization Coal Mining $ 3,793 $ 3,102 $ 10,951 $ 9,252 NAMining 723 588 2,021 1,699 Minerals Management 327 324 981 1,057 Unallocated Items 33 30 91 87 Total $ 4,876 $ 4,044 $ 14,044 $ 12,095 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Change in Asset Retirement Obligation | A reconciliation of the Company's beginning and ending aggregate carrying amount of the asset retirement obligations is as follows: Coal Mining NAMining Unallocated Items NACCO Balance at December 31, 2019 $ 19,015 $ 604 $ 17,240 $ 36,859 Liabilities incurred during the period 9,809 — — 9,809 Liabilities settled during the period (5,957) — (562) (6,519) Accretion expense 1,296 28 1,023 2,347 Revision of estimated cash flows 600 — — 600 Balance at September 30, 2020 $ 24,763 $ 632 $ 17,701 $ 43,096 |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation (Narrative) (Details) $ in Thousands, T in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020USD ($)T | Sep. 30, 2019 | Sep. 30, 2020USD ($)segment | Dec. 31, 2019USD ($)T | Dec. 31, 2018T | Jul. 01, 2019USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Number of operating segments | segment | 3 | |||||
Long-term Purchase Commitment [Line Items] | ||||||
Contractual obligation amount included in other noncurrent assets | $ | $ 39,108 | $ 39,108 | $ 32,133 | |||
Coal Mining | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
Historical lignite coal annual delivery | 34.6 | |||||
Outstanding securitized accounts receivable | $ | 2,300 | $ 2,300 | ||||
Coal Mining | Caddo Creek | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
Historical lignite coal annual delivery | 0.2 | |||||
Coal Mining | Sabine | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
Historical lignite coal annual delivery | 2.6 | 3.8 | ||||
Decrease in coal delivered | 43.00% | |||||
NAMining | Lithium Nevada Corp. | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
Term of contractual obligation | 20 years | |||||
Contractual obligation amount provided | $ | $ 3,500 | |||||
Contractual obligation amount included in other noncurrent assets | $ | $ 3,000 | $ 3,000 | $ 1,500 | |||
Minimum | Coal Mining | Sabine | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
Historical lignite coal annual delivery | 2.5 | |||||
Expected future lignite coal annual delivery | 1.4 | |||||
Maximum | Coal Mining | Sabine | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
Historical lignite coal annual delivery | 3.5 | |||||
Expected future lignite coal annual delivery | 1.7 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | ||||
Primary term of contract | 5 years | |||
Revenue recognized in contract liability | $ 200,000 | $ 100,000 | $ 700,000 | $ 500,000 |
Contract assets recognized | $ 0 | $ 0 |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 32,295 | $ 32,603 | $ 105,294 | $ 114,052 |
Goods transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 19,871 | 18,049 | 61,131 | 56,012 |
Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 12,424 | 14,554 | 44,163 | 58,040 |
Operating segments | Coal Mining | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 20,395 | 18,799 | 62,896 | 58,119 |
Operating segments | NAMining | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 9,443 | 8,993 | 33,115 | 30,496 |
Operating segments | Minerals Management | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,722 | 5,022 | 9,950 | 25,950 |
Unallocated Items | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 904 | 52 | 1,257 | 726 |
Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ (1,169) | $ (263) | $ (1,924) | $ (1,239) |
Revenue Recognition (Contract B
Revenue Recognition (Contract Balances) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Trade accounts receivable, net | |
Balance, January 1, 2020 | $ 15,444 |
Balance, September 30, 2020 | 16,507 |
Increase (decrease) in accounts receivable | 1,063 |
Contract liability (current) | |
Balance, January 1, 2020 | 944 |
Balance, September 30, 2020 | 941 |
Increase (decrease) in contract liability (current) | (3) |
Contract liability (long-term) | |
Balance, January 1, 2020 | 2,153 |
Balance, September 30, 2020 | 1,448 |
Increase (decrease) in contract liability (long-term) | $ (705) |
Revenue Recognition (Remaining
Revenue Recognition (Remaining Performance Obligations) (Details) $ in Millions | Sep. 30, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue expected to be recognized | $ 0.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue expected to be recognized | $ 0.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue expected to be recognized | $ 0.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue expected to be recognized | $ 0.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue expected to be recognized | $ 0.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction | 1 year |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Coal | $ 12,161 | $ 15,700 |
Mining supplies | 30,272 | 24,765 |
Total inventories | $ 42,433 | $ 40,465 |
Leases (Schedule of Leased Asse
Leases (Schedule of Leased Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Operating lease, assets | $ 10,448 | $ 11,398 |
Finance lease, assets | 144 | 544 |
Current liabilities | ||
Operating lease liabilities, current | 1,296 | 1,318 |
Finance lease liabilities, current | 44 | 558 |
Liabilities, Noncurrent | ||
Operating lease liabilities, noncurrent | 11,494 | 12,448 |
Finance lease liabilities, noncurrent | 103 | 85 |
Finance lease, accumulated amortization | $ 100 | $ 1,900 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtCurrent | us-gaap:LongTermDebtCurrent |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtNoncurrent | us-gaap:LongTermDebtNoncurrent |
Leases (Components of Lease Exp
Leases (Components of Lease Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Operating lease cost | $ 499 | $ 569 | $ 1,513 | $ 1,783 |
Amortization of leased assets | 10 | 104 | 113 | 300 |
Interest on lease liabilities | 2 | 4 | 8 | 10 |
Variable lease expense | 157 | 141 | 444 | 416 |
Short-term lease expense | 89 | 79 | 248 | 242 |
Total lease expense | $ 757 | $ 897 | $ 2,326 | $ 2,751 |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments) (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Finance Leases | |
Remainder of 2020 | $ 13 |
2021 | 49 |
2022 | 49 |
2023 | 28 |
2024 | 12 |
Subsequent to 2024 | 7 |
Total minimum lease payments | 158 |
Amounts representing interest | 11 |
Present value of net minimum lease payments | 147 |
Operating Leases | |
Remainder of 2020 | 532 |
2021 | 2,113 |
2022 | 2,162 |
2023 | 1,685 |
2024 | 1,660 |
Subsequent to 2024 | 9,421 |
Total minimum lease payments | 17,573 |
Amounts representing interest | 4,783 |
Present value of net minimum lease payments | 12,790 |
Total | |
Remainder of 2020 | 545 |
2021 | 2,162 |
2022 | 2,211 |
2023 | 1,713 |
2024 | 1,672 |
Subsequent to 2024 | 9,428 |
Total minimum lease payments | $ 17,731 |
Leases (Assumptions Used in Acc
Leases (Assumptions Used in Accounting for Leases) (Details) | Sep. 30, 2020 | Sep. 30, 2019 |
Leases [Abstract] | ||
Operating lease, weighted average remaining lease term (years) | 9 years 2 months 8 days | 9 years 9 months 3 days |
Finance lease, weighted average remaining lease term (years) | 3 years 5 months 19 days | 1 year 11 months 12 days |
Operating lease, weighted average discount rate | 7.01% | 6.99% |
Finance lease, weighted average discount rate | 3.96% | 5.36% |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Operating cash flows from operating leases | $ 532 | $ 608 | $ 1,646 | $ 1,768 |
Operating cash flows from finance leases | 2 | 4 | 8 | 10 |
Financing cash flows from finance leases | $ 9 | $ 115 | $ 551 | $ 347 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Nov. 06, 2019 | |
Class of Stock [Line Items] | |||||||
Common stock repurchased | $ 1,002,000 | $ 25,000 | $ 85,000 | $ 1,300,000 | |||
2019 Stock Repurchase Program | |||||||
Class of Stock [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 25,000,000 | ||||||
Class A Common Stock | 2019 Stock Repurchase Program | |||||||
Class of Stock [Line Items] | |||||||
Common stock repurchased (in shares) | 32,286 | ||||||
Common stock repurchased | $ 1,000,000 | ||||||
Class A Common Stock | 2018 Stock Repurchase Program | |||||||
Class of Stock [Line Items] | |||||||
Common stock repurchased (in shares) | 525 | 39,049 | |||||
Common stock repurchased | $ 100,000 | $ 1,400,000 |
Fair Value Disclosure (On a Rec
Fair Value Disclosure (On a Recurring Basis) (Details) - Fair value measurements, recurring - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Level 1 | ||
Assets: | ||
Equity securities | $ 12,238 | $ 10,120 |
Assets at fair value | 12,238 | 10,120 |
Level 2 | ||
Assets: | ||
Equity securities | 0 | 0 |
Assets at fair value | 0 | 0 |
Level 3 | ||
Assets: | ||
Equity securities | 0 | 0 |
Assets at fair value | 0 | 0 |
Total | ||
Assets: | ||
Equity securities | 12,238 | 10,120 |
Assets at fair value | $ 12,238 | $ 10,120 |
Fair Value Disclosure (Narrativ
Fair Value Disclosure (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Realized gain (loss) on equity securities | $ 35 | $ 108 | $ 351 | $ 1,067 | |||
Investment in equity securities | 2,000 | 0 | |||||
Level 1 | Fair value measurements, recurring | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Equity securities | 12,238 | 12,238 | $ 10,120 | ||||
Realized gain (loss) on equity securities | (500) | (100) | |||||
Bellaire | Level 1 | Fair value measurements, recurring | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Realized gain (loss) on equity securities | $ 500 | $ 100 | $ 400 | $ 1,100 | |||
Carrying Value | Level 1 | Fair value measurements, recurring | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Investment in equity securities | $ 2,000 | ||||||
Carrying Value | Bellaire | Level 1 | Fair value measurements, recurring | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Equity securities | $ 5,000 |
Unconsolidated Subsidiaries (Na
Unconsolidated Subsidiaries (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated subsidiaries and related tax positions | $ 25,545 | $ 24,611 |
Variable interest entity, reporting entity involvement, maximum risk of loss | 4,400 | 5,000 |
Other noncurrent assets | ||
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated subsidiaries and related tax positions | $ 25,500 | $ 24,600 |
Unconsolidated Subsidiaries (Sc
Unconsolidated Subsidiaries (Schedule) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Variable Interest Entity [Line Items] | ||||
Gross profit | $ 6,820 | $ 6,187 | $ 15,741 | $ 28,240 |
Variable interest entity, not primary beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Gross profit | 18,046 | 20,059 | 49,792 | 53,826 |
Income before income taxes | $ 15,629 | $ 17,827 | $ 45,673 | $ 49,080 |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 32,295 | $ 32,603 | $ 105,294 | $ 114,052 |
Operating profit (loss) | 9,398 | 8,663 | 21,460 | 34,197 |
Expenditures for property, plant and equipment | 7,003 | 7,297 | 19,802 | 13,264 |
Depreciation, depletion and amortization | 4,876 | 4,044 | 14,044 | 12,095 |
Operating segments | Coal Mining | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 20,395 | 18,799 | 62,896 | 58,119 |
Operating profit (loss) | 11,174 | 10,492 | 25,857 | 27,761 |
Expenditures for property, plant and equipment | 3,150 | 2,291 | 7,817 | 6,542 |
Depreciation, depletion and amortization | 3,793 | 3,102 | 10,951 | 9,252 |
Operating segments | NAMining | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 9,443 | 8,993 | 33,115 | 30,496 |
Operating profit (loss) | 244 | (358) | 1,519 | (743) |
Expenditures for property, plant and equipment | 3,220 | 4,971 | 10,406 | 6,213 |
Depreciation, depletion and amortization | 723 | 588 | 2,021 | 1,699 |
Operating segments | Minerals Management | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,722 | 5,022 | 9,950 | 25,950 |
Operating profit (loss) | 1,673 | 3,900 | 6,450 | 22,358 |
Expenditures for property, plant and equipment | 633 | 0 | 1,372 | 291 |
Depreciation, depletion and amortization | 327 | 324 | 981 | 1,057 |
Unallocated Items | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 904 | 52 | 1,257 | 726 |
Operating profit (loss) | (3,623) | (5,470) | (12,341) | (15,336) |
Expenditures for property, plant and equipment | 0 | 35 | 207 | 218 |
Depreciation, depletion and amortization | 33 | 30 | 91 | 87 |
Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (1,169) | (263) | (1,924) | (1,239) |
Operating profit (loss) | $ (70) | $ 99 | $ (25) | $ 157 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision | $ 1,857 | $ 1,357 | $ 1,321 | $ 5,465 |
Effective income tax rate | 18.80% | 11.70% | 6.10% | 14.10% |
Income before income tax | $ 9,879 | $ 11,621 | $ 21,559 | $ 38,722 |
Discrete tax charges | 4,200 | 4,200 | ||
Discrete tax benefit | $ 2,200 | $ 1,800 | ||
Annual effective income tax rate, excluding discrete items | 5.20% | 14.00% |
Asset Retirement Obligations (A
Asset Retirement Obligations (ARO Activity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Carrying amount of the asset retirement obligations, balance at beginning of period | $ 36,859 | |
Liabilities incurred during the period | $ 9,800 | 9,809 |
Liabilities settled during the period | (6,519) | |
Accretion expense | 2,347 | |
Carrying amount of the asset retirement obligations, balance at end of period | 43,096 | 43,096 |
Centennial | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Revision of estimated cash flows | 600 | |
Operating segments | Coal Mining | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Carrying amount of the asset retirement obligations, balance at beginning of period | 19,015 | |
Liabilities incurred during the period | 9,809 | |
Liabilities settled during the period | (5,957) | |
Accretion expense | 1,296 | |
Carrying amount of the asset retirement obligations, balance at end of period | 24,763 | 24,763 |
Operating segments | Coal Mining | Centennial | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Revision of estimated cash flows | 600 | |
Operating segments | NAMining | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Carrying amount of the asset retirement obligations, balance at beginning of period | 604 | |
Liabilities incurred during the period | 0 | |
Liabilities settled during the period | 0 | |
Accretion expense | 28 | |
Carrying amount of the asset retirement obligations, balance at end of period | 632 | 632 |
Operating segments | NAMining | Centennial | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Revision of estimated cash flows | 0 | |
Unallocated Items | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Carrying amount of the asset retirement obligations, balance at beginning of period | 17,240 | |
Liabilities incurred during the period | 0 | |
Liabilities settled during the period | (562) | |
Accretion expense | 1,023 | |
Carrying amount of the asset retirement obligations, balance at end of period | $ 17,701 | 17,701 |
Unallocated Items | Centennial | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Revision of estimated cash flows | $ 0 |
Asset Retirement Obligations (N
Asset Retirement Obligations (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Liabilities incurred during the period | $ 9,800 | $ 9,809 | |
ARO capitalized as property, plant and equipment | 9,800 | ||
Bellaire | |||
Segment Reporting Information [Line Items] | |||
Fair value of trust assets | 10,300 | 10,300 | $ 10,100 |
Centennial | |||
Segment Reporting Information [Line Items] | |||
Reduction in asset retirement obligation | 4,800 | ||
Cash paid | 1,900 | ||
Settlement receivable from third parties | 1,400 | 1,400 | |
Accounts payable, cash to be paid to settle | 1,900 | 1,900 | |
Other long-term liabilities, contingent and noncontingent guarantee liabilities | 2,400 | 2,400 | |
Centennial | Surety Bond | |||
Segment Reporting Information [Line Items] | |||
Surety bonds outstanding to be transferred or replaced | 10,700 | 10,700 | |
Centennial | Third Party | Surety Bond | Transfer Or Replacement Period One | |||
Segment Reporting Information [Line Items] | |||
Surety bonds outstanding to be transferred or replaced | 4,900 | 4,900 | |
Centennial | Third Party | Surety Bond | Transfer Or Replacement Period Two | |||
Segment Reporting Information [Line Items] | |||
Surety bonds outstanding to be transferred or replaced | $ 5,800 | $ 5,800 |