Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 29, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
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, $1 par value per share | |
Trading Symbol | NC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000789933 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Shares Outstanding Class A | ||
Entity Information [Line Items] | ||
Shares Outstanding (in shares) | 5,607,149 | |
Shares Outstanding Class B | ||
Entity Information [Line Items] | ||
Shares Outstanding (in shares) | 1,566,643 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 87,507 | $ 88,450 |
Trade accounts receivable, net | 19,127 | 18,894 |
Accounts receivable from affiliates | 6,377 | 4,764 |
Inventories | 50,955 | 47,551 |
Federal income tax receivable | 8,959 | 17,615 |
Prepaid insurance | 4,184 | 2,564 |
Other current assets | 15,274 | 8,308 |
Total current assets | 192,383 | 188,146 |
Property, plant and equipment, net | 189,369 | 172,417 |
Intangibles, net | 32,534 | 35,330 |
Investments in unconsolidated subsidiaries | 19,312 | 28,978 |
Operating lease right-of-use assets | 9,235 | 10,324 |
Other non-current assets | 46,085 | 40,984 |
Total assets | 488,918 | 476,179 |
LIABILITIES AND EQUITY | ||
Accounts payable | 13,904 | 5,522 |
Accounts payable to affiliates | 562 | 125 |
Revolving credit agreements | 0 | 20,000 |
Current maturities of long-term debt | 2,503 | 2,112 |
Asset retirement obligations | 1,844 | 1,844 |
Accrued payroll | 13,011 | 14,430 |
Other current liabilities | 9,086 | 8,224 |
Total current liabilities | 40,910 | 52,257 |
Long-term debt | 14,501 | 24,353 |
Operating lease liabilities | 10,109 | 11,196 |
Asset retirement obligations | 41,693 | 39,888 |
Pension and other postretirement obligations | 7,361 | 8,838 |
Deferred income taxes | 12,563 | 17,550 |
Liability for uncertain tax positions | 9,413 | 9,413 |
Other long-term liabilities | 11,449 | 12,060 |
Total liabilities | 147,999 | 175,555 |
Common stock: | ||
Capital in excess of par value | 14,542 | 10,895 |
Retained earnings | 330,373 | 294,270 |
Accumulated other comprehensive loss | (11,170) | (11,599) |
Total stockholders' equity | 340,919 | 300,624 |
Total liabilities and equity | 488,918 | 476,179 |
Class A Common Stock | ||
Common stock: | ||
Common stock | 5,607 | 5,490 |
Class B Common Stock | ||
Common stock: | ||
Common stock | $ 1,567 | $ 1,568 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) | Sep. 30, 2021$ / sharesshares | Dec. 31, 2020$ / sharesshares |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ / shares | $ 1 | $ 1 |
Common stock, shares outstanding (in shares) | shares | 5,607,149 | 5,489,615 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ / shares | $ 1 | $ 1 |
Common stock, shares outstanding (in shares) | shares | 1,566,643 | 1,568,210 |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenues | $ 51,742 | $ 32,295 | $ 142,743 | $ 105,294 |
Cost of sales | 37,413 | 25,475 | 111,737 | 89,553 |
Gross profit | 14,329 | 6,820 | 31,006 | 15,741 |
Earnings of unconsolidated operations | 17,652 | 15,145 | 46,536 | 44,926 |
Contract termination settlement | 10,333 | 0 | 10,333 | 0 |
Operating expenses | ||||
Selling, general and administrative expenses | 13,830 | 11,833 | 40,471 | 37,151 |
Amortization of intangible assets | 902 | 734 | 2,795 | 2,303 |
(Gain) loss on sale of assets | (10) | 0 | 17 | (247) |
Operating expenses | 14,722 | 12,567 | 43,283 | 39,207 |
Operating profit | 27,592 | 9,398 | 44,592 | 21,460 |
Other expense (income) | ||||
Interest expense | 493 | 336 | 1,208 | 1,069 |
Interest income | (101) | (95) | (321) | (625) |
Closed mine obligations | 372 | 395 | 1,119 | 1,219 |
Gain on equity securities | (445) | (35) | (2,530) | (351) |
Other, net | (161) | (1,082) | (418) | (1,411) |
Other (income) expense | 158 | (481) | (942) | (99) |
Income before income tax provision | 27,434 | 9,879 | 45,534 | 21,559 |
Income tax provision | 2,597 | 1,857 | 5,231 | 1,321 |
Net income | $ 24,837 | $ 8,022 | $ 40,303 | $ 20,238 |
Earnings per share: | ||||
Basic earnings per share (in dollars per share) | $ 3.47 | $ 1.14 | $ 5.65 | $ 2.88 |
Diluted earnings per share (in dollars per share) | $ 3.47 | $ 1.14 | $ 5.63 | $ 2.88 |
Basic weighted average shares outstanding (in shares) | 7,165 | 7,036 | 7,136 | 7,019 |
Diluted weighted average shares outstanding (in shares) | 7,165 | 7,036 | 7,153 | 7,035 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 24,837 | $ 8,022 | $ 40,303 | $ 20,238 |
Reclassification of pension and postretirement adjustments into earnings, net of $42 and $127 tax benefit in the three and nine months ended September 30, 2021, respectively, and net of $29 and $102 tax benefit in the three and nine months ended September 30, 2020, respectively. | 143 | 99 | 429 | 355 |
Total other comprehensive income | 143 | 99 | 429 | 355 |
Comprehensive income | $ 24,980 | $ 8,121 | $ 40,732 | $ 20,593 |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Reclassification of pension and postretirement adjustments into earnings, tax expense (benefit) | $ (42) | $ (29) | $ (127) | $ (102) |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating activities | ||
Net cash provided by operating activities | $ 67,794 | $ 2,760 |
Investing activities | ||
Expenditures for property, plant and equipment and acquisition of mineral interests | (35,534) | (19,802) |
Proceeds from the sale of property, plant and equipment | 547 | 550 |
Purchase of equity securities | 0 | (2,000) |
Other | (52) | 72 |
Net cash used for investing activities | (35,039) | (21,180) |
Financing activities | ||
Additions to long-term debt | 3,633 | 6,199 |
Reductions of long-term debt | (3,131) | (1,057) |
Net reductions to revolving credit agreements | (30,000) | (7,000) |
Cash dividends paid | (4,200) | (4,045) |
Purchase of treasury shares | 0 | (1,002) |
Net cash used for financing activities | (33,698) | (6,905) |
Cash and cash equivalents | ||
Total decrease for the period | (943) | (25,325) |
Balance at the beginning of the period | 88,450 | 122,892 |
Balance at the end of the period | $ 87,507 | $ 97,567 |
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, 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) |
Balance, beginning of period at Dec. 31, 2020 | 300,624 | 5,490 | 1,568 | 10,895 | 294,270 | (11,599) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 1,015 | 92 | 923 | |||
Conversion of Class B to Class A shares | 0 | 1 | (1) | |||
Net income | 8,961 | 8,961 | ||||
Cash dividends on Class A and Class B common stock | (1,374) | (1,374) | ||||
Reclassification adjustment to net income, net of tax | 143 | 143 | ||||
Balance, end of period at Mar. 31, 2021 | 309,369 | 5,583 | 1,567 | 11,818 | 301,857 | (11,456) |
Balance, beginning of period at Dec. 31, 2020 | 300,624 | 5,490 | 1,568 | 10,895 | 294,270 | (11,599) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 40,303 | |||||
Balance, end of period at Sep. 30, 2021 | 340,919 | 5,607 | 1,567 | 14,542 | 330,373 | (11,170) |
Balance, beginning of period at Mar. 31, 2021 | 309,369 | 5,583 | 1,567 | 11,818 | 301,857 | (11,456) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 1,122 | 12 | 1,110 | |||
Net income | 6,505 | 6,505 | ||||
Cash dividends on Class A and Class B common stock | (1,412) | (1,412) | ||||
Reclassification adjustment to net income, net of tax | 143 | 143 | ||||
Balance, end of period at Jun. 30, 2021 | 315,727 | 5,595 | 1,567 | 12,928 | 306,950 | (11,313) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 1,626 | 12 | 1,614 | |||
Net income | 24,837 | 24,837 | ||||
Cash dividends on Class A and Class B common stock | (1,414) | (1,414) | ||||
Reclassification adjustment to net income, net of tax | 143 | 143 | ||||
Balance, end of period at Sep. 30, 2021 | $ 340,919 | $ 5,607 | $ 1,567 | $ 14,542 | $ 330,373 | $ (11,170) |
Unaudited Condensed Consolida_8
Unaudited Condensed Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Cash dividends on common stock (in dollars per share) | $ 0.1975 | $ 0.1975 | $ 0.1925 | $ 0.1925 | $ 0.1925 | $ 0.1900 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
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, the “Company”). NACCO brings natural resources to life by delivering aggregates, minerals, reliable fuels and environmental solutions through its robust portfolio of NACCO Natural Resources businesses. The Company operates under three business segments: Coal Mining, North American Mining ("NAMining") and Minerals Management. The Coal Mining segment operates surface coal mines for power generation companies and an activated carbon producer. The NAMining segment is a trusted mining partner for producers of aggregates, lithium and other minerals. The Minerals Management segment promotes the development of mineral interests. In addition, Mitigation Resources of North America ® (Mitigation Resources) provides stream and wetland mitigation solutions. The Company also has items not directly attributable to a reportable segment. Intercompany accounts and transactions are eliminated in consolidation. See Note 8 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 The Coal Mining segment, operating as The North American Coal Corporation ® ("NACoal"), operates surface coal mines under long-term contracts with power generation companies and an activated carbon producer pursuant to a service-based business model. Coal is surface mined in North Dakota, Texas, Mississippi, Louisiana and through September 30, 2021, on the Navajo Nation in New Mexico. Each mine is fully integrated with its customer's operations. During the nine months ended September 30, 2021, the Company's operating coal mines were: Bisti Fuels Company, LLC (“Bisti”), 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”). Falkirk operates the Falkirk Mine in North Dakota. Falkirk is the sole supplier of lignite coal to the Coal Creek Station power plant pursuant to a contract under which Falkirk also supplies approximately 0.3 million tons of lignite coal per year to Spiritwood Station power plant. Coal Creek Station and Spiritwood Station are owned by Great River Energy (“GRE”). In May 2020, GRE announced its intent to sell or retire Coal Creek Station and modify Spiritwood Station to be fueled by natural gas. On June 30, 2021, GRE entered into an agreement to sell Coal Creek Station and the adjacent high-voltage direct current transmission line to Bismarck, North Dakota-based Rainbow Energy Center, LLC (“Rainbow Energy”) and its affiliates. The closing of this sale is subject to the satisfaction of certain conditions and presently, the transaction is expected to close by the end of the first quarter of 2022. The timing could be accelerated, and the transaction could close before the end of 2021 if conditions are satisfied earlier than anticipated. Upon completion of the sale of Coal Creek Station, the existing Coal Sales Agreement, the existing Mortgage and Security Agreement and the existing Option Agreement between GRE and Falkirk will be terminated. Falkirk and GRE have entered into a termination and release of claims agreement. Upon completion of the sale of Coal Creek Station, GRE will pay Falkirk $14.0 million in cash, as well as transfer ownership of an office building located in Bismarck, North Dakota, and convey membership units in Midwest AgEnergy to NACoal. NACCO currently holds a $5.0 million investment in Midwest AgEnergy, which operates two ethanol facilities in North Dakota. If GRE's efforts to sell the power plant are successful, a new Coal Sales Agreement (“CSA”) between Falkirk and Rainbow Energy will become effective and Falkirk will supply all coal requirements of Coal Creek Station concurrent with Rainbow Energy’s acquisition of the power plant. Falkirk will no longer make any coal deliveries to GRE’s Spiritwood Station. Falkirk will be paid a management fee and Rainbow Energy will be responsible for funding all mine operating costs and directly or indirectly providing all of the capital required to operate the mine. The CSA specifies that Falkirk will perform final mine reclamation, which will be funded in its entirety by Rainbow Energy. The initial production period is expected to run ten years from the effective date of the CSA, but the CSA may be extended or terminated early under certain circumstances. If Rainbow Energy terminates the CSA and closes Coal Creek Station before 2027, Falkirk will be entitled to an additional payment from GRE under the terms of the termination and release of claims agreement. The additional payment amount ranges from $8 million if the closure occurs before 2024 to $2 million if the closure occurs in 2026. To support the transfer to new ownership, Falkirk has agreed to a reduction in the current per ton management fee from the effective date of the new CSA through May 31, 2024. After May 31, 2024, the per ton management fee increases to a higher base in line with current fee levels, and thereafter adjusts annually according to an index which tracks broad measures of U.S. inflation. Bisti supplied the Four Corners Power Plant through its contract mining agreement with the Navajo Transitional Energy Company ("NTEC"). This contract mining agreement was terminated effective September 30, 2021. As required under the agreement, NTEC paid the Company a termination fee of $10.3 million. As of October 1, 2021, NTEC assumed control and responsibility for operation and all reclamation of the Navajo Mine. Sabine operates the Sabine Mine in Texas. All production from Sabine is delivered to Southwestern Electric Power Company's (“SWEPCO”) Henry W. Pirkey Plant (the “Pirkey Plant”). SWEPCO is an American Electric Power (“AEP”) company. In November 2020, AEP announced its intent to retire the Pirkey Plant in 2023. SWEPCO expects deliveries from Sabine to continue until the first quarter of 2023 at which time Sabine expects to begin final reclamation. Funding for mine reclamation is the responsibility of SWEPCO. Coteau operates the Freedom Mine in North Dakota. All coal production from the Freedom Mine is delivered to Basin Electric Power Cooperative (“Basin Electric”). Basin Electric utilizes the coal at the Great Plains Synfuels Plant (the “Synfuels Plant”), Antelope Valley Station and Leland Olds Station. The Synfuels Plant is a coal gasification plant, owned by Dakota Gasification Company (“Dakota Gas’), a subsidiary of Basin Electric, that manufactures synthetic natural gas and produces fertilizers, solvents, phenol, carbon dioxide, and other chemical products for sale. In November 2020, Basin Electric informed Coteau that it is considering changes that may result in modifications to its Synfuels Plant that could potentially reduce or eliminate coal requirements at the Synfuels Plant. Basin Electric indicated that if it decides to proceed with any changes that could reduce or eliminate the use of coal, the feedstock change is not expected to occur before 2026. On August 16, 2021, Bakken Energy (“Bakken”) and Basin Electric signed a non-binding term sheet to purchase the assets of Dakota Gas. Bakken stated the closing date is expected to be April 1, 2023. As part of the agreement between Basin Electric and Bakken, Basin Electric indicated that the Synfuels Plant will continue existing operations through 2025. The closing is subject to the satisfaction of specified conditions. Basin Electric is also considering other options for the Synfuels Plant if the transaction with Bakken does not close. 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 provide all of the capital required to build and operate the mine. This contract structure eliminates exposure to spot coal market price fluctuations while providing 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 6 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 VIEs is reported as Earnings of unconsolidated operations on the Unaudited Condensed Consolidated Statements of Operations and the Company’s investment is reported on the line Investments in unconsolidated subsidiaries in the Unaudited Condensed 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 Unaudited Condensed Consolidated Statements of Operations includes income taxes related to these entities. See Note 6 for further information on the Unconsolidated Subsidiaries. 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. Caddo Creek Resources Company, LLC (“Caddo Creek”) ceased all mining and delivery of lignite and commenced mine reclamation in the fourth quarter of 2020. The financial results of Caddo Creek are consolidated within NACCO's financial statements for the nine months ended September 30, 2021. Prior to entering into reclamation, Caddo Creek met the definition of a VIE; therefore, the financial results of Caddo Creek are reported as Earnings of unconsolidated operations for the three and nine months ended September 30, 2020. The reclamation at Caddo Creek is expected to be substantially complete by June 30, 2022. 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 of mining activities 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 historically operated primarily at limestone quarries in Florida, but is focused on expanding outside of Florida, mining materials other than limestone and expanding the scope of mining operations provided to its customers. In the second quarter of 2021, NAMining entered into a one-year mining services contract with an existing customer for a sand and gravel quarry in Indiana. In the third quarter of 2021, NAMining entered into contracts with a new customer to perform all mining operations at two sand and gravel quarries located in Texas and Arkansas. The initial term of each contract is two years, and one of the contracts automatically extends an additional two years provided NAMining is not in default under that contract. In addition, NAMining will serve as exclusive contract miner for the Thacker Pass lithium project in northern Nevada. NAMining utilizes both fixed price and 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 6 for further discussion. Minerals Management Segment The Minerals Management segment derives income primarily by leasing its royalty and mineral interests to third-party exploration and production companies, and, to a lesser extent, other mining companies, granting them the rights to explore, develop, mine, produce, market and sell gas, oil, and coal in exchange for royalty payments based on the lessees' sales of those minerals. During 2021 and 2020, the Minerals Management segment acquired mineral interests, primarily in the Eagle Ford and Permian Basins in Texas and intends to make future acquisitions of mineral and royalty interests that meet the Company’s acquisition criteria as part of its growth strategy. In the second quarter of 2021, the Minerals Management segment, through its Catapult Mineral Partners (“Catapult”) business, acquired a combination of mineral and overriding royalty interests in the Eagle Ford Basin, which includes approximately 14.1 thousand gross acres and 1.7 thousand net royalty acres, for $4.7 million. Under the terms of the transaction, Catapult will make payments for each additional well developed on the acquired assets at the end of 2021 and 2022 of up to a maximum of $0.6 million per year, or an additional $1.2 million of payments in total. Catapult also completed a small acquisition of royalty interests in the Delaware Basin in the second quarter of 2021 for a purchase price of $0.3 million. The Company’s legacy royalty and mineral interests are located in Ohio (Utica and Marcellus shale natural gas), Louisiana (Haynesville shale and Cotton Valley formation natural gas), Texas (Cotton Valley and Austin Chalk 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, oil and natural gas). The majority of the Company’s legacy reserves were acquired as part of its historical coal mining operations. 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, 2021, the results of its operations, comprehensive income, cash flows and changes in equity for the nine months ended September 30, 2021 and 2020 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, 2020. The balance sheet at December 31, 2020 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, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition 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. During 2020, Caddo Creek entered into a fixed-price contract to perform mine reclamation. The management service to perform mine reclamation 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. Revenue from this contract is recognized over time utilizing the cost-to-cost method to measure the extent of progress toward completion of the performance obligation. The Company believes the cost-to-cost method is the most appropriate method to measure progress and that the rate at which costs are incurred to fulfill the contract best depicts the transfer of control to the customer. The extent of progress towards completion is measured based on the ratio of costs incurred to date compared to total estimated costs at completion, and revenue is recorded proportionally based on an estimated profit margin. At NAMining, the management service to oversee the operation of the equipment and delivery of aggregates or other minerals 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 or fixed fee and the general and administrative fee (as applicable). Fluctuations in revenue from period to period result from changes in customer demand primarily due to increases and decreases in activity levels on individual contracts and variances in reimbursable costs. The Minerals Management segment enters into 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 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 Company believes that the pricing provisions of royalty contracts are customary in the industry. Up-front lease bonus payments represent the fixed portion of the transaction price and are 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 volumes or MMBtu delivered, 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. Recognition of revenue and recognition of profit related to the Caddo Creek contract requires the use of assumptions and estimates related to the total contract value, the total cost at completion, and the measurement of progress towards completion of the performance obligation. Due to the nature of the contract, developing the estimated total contract value and total cost at completion requires the use of significant judgment. The total contract value includes variable consideration. The Company includes variable consideration in the transaction price at the most likely amount to be earned, based upon the Company’s assessment of expected performance. The Company records these amounts only to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Cost Reimbursement Certain contracts include reimbursement from customers of actual costs incurred for the purchase of supplies, equipment and services in accordance with contractual terms. Such reimbursable revenue is variable and subject to uncertainty, as the amounts received and timing thereof is highly dependent on factors outside of the Company’s control. Accordingly, reimbursable revenue is fully constrained and not recognized until the uncertainty is resolved, which typically occurs when the related costs are incurred on behalf of a customer. The Company is generally considered a principal in such transactions and records the associated revenue at the gross amount billed to the customer with the related costs recorded as an expense within cost of sales. Prior Period Performance Obligations The Company records royalty income in the month production is delivered to the purchaser. As a non-operator, the Company has limited visibility into when new wells start producing and production statements may not be received for 30 to 90 days or more after the date production is delivered. As a result, the Company is required to estimate the amount of production delivered to the purchaser of the product and the price that will be received for the sale of the product. The expected sales volumes and prices for these properties are estimated and recorded in "Accounts receivable" in the accompanying Unaudited Condensed Consolidated Balance Sheets. The difference between the Company’s estimates and the actual amounts received is recorded in the month that payment is received from the third-party lessee. For the three and nine months ended September 30, 2021 and 2020, royalty income recognized in the reporting periods related to performance obligations satisfied in prior reporting periods was immaterial. During the third quarter of 2021, the Company recognized $1.8 million of variable consideration that was previously constrained due to uncertainty of collectability. 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 8 to the Unaudited Condensed Consolidated Financial Statements for further discussion of segment reporting. THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 2021 2020 2021 2020 Timing of Revenue Recognition Goods transferred at a point in time $ 20,436 $ 19,871 $ 61,931 $ 61,131 Services transferred over time 31,306 12,424 80,812 44,163 Total revenues $ 51,742 $ 32,295 $ 142,743 $ 105,294 Contract Balances The opening and closing balances of the Company’s current and long-term accounts receivable, contract assets and contract liabilities are as follows: Contract balances Trade accounts receivable, net Contract asset Contract liability (current) Contract liability (long-term) Balance, January 1, 2021 $ 18,894 $ 4,984 $ 941 $ 3,626 Balance, September 30, 2021 19,127 5,790 824 3,683 Increase (decrease) $ 233 $ 806 $ (117) $ 57 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 both of the three months ended September 30, 2021 and 2020 that was included in the opening contract liability was $0.2 million. The amount of revenue recognized in both of the nine months ended September 30, 2021 and 2020 that was included in the opening contract liability was $0.7 million. 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 2021, $3.8 million in 2022, $0.3 million in 2023, and $0.1 million in 2024 related to the contract liability remaining at September 30, 2021. The difference between the opening and closing balances of the Company’s accounts receivable, contract assets and contract liabilities results from the timing difference between the Company’s performance and the customer’s payment. 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, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are summarized as follows: SEPTEMBER 30 DECEMBER 31 Coal $ 17,172 $ 17,695 Mining supplies 33,783 29,856 Total inventories $ 50,955 $ 47,551 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Stock Repurchase Program: During 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. 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. 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, 2021 | |
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, 2021 Assets: Equity securities $ 15,120 $ 15,120 $ — $ — $ 15,120 $ 15,120 $ — $ — December 31, 2020 Assets: Equity securities $ 13,164 $ 13,164 $ — $ — $ 13,164 $ 13,164 $ — $ — 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 less than $0.1 million and $1.0 million during the three and nine months ended September 30, 2021, respectively, and a gain of $0.5 million and $0.4 million in the three and nine months ended September 30, 2020, 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 gain of $0.4 million and $1.6 million during the three and nine months ended September 30, 2021, respectively, and a loss of $0.5 million and $0.1 million in the three and nine months ended September 30, 2020 related to the investment in these equity securities. The gains and losses related to equity securities are reported on the line (Gain) loss 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 nine months ended September 30, 2021 and 2020. |
Unconsolidated Subsidiaries
Unconsolidated Subsidiaries | 9 Months Ended |
Sep. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Unconsolidated Subsidiaries | Unconsolidated Subsidiaries Each of the Company'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 generally 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 $19.3 million and $29.0 million at September 30, 2021 and December 31, 2020, respectively. The Company's maximum risk of loss relating to these entities is limited to its invested capital, which was $5.8 million and $6.5 million at September 30, 2021 and December 31, 2020, respectively. Earnings of unconsolidated operations were $17.7 million and $46.5 million during the three and nine months ended September 30, 2021, respectively, and $15.1 million and $44.9 million during the three and nine months ended September 30, 2020, respectively. The contract mining agreement between Bisti and NTEC was terminated effective September 30, 2021. As required under the agreement, NTEC paid the Company a termination fee of $10.3 million. As of October 1, 2021, NTEC assumed control and responsibility for operation and all reclamation of the Navajo Mine. 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. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company’s operating segments are: (i) Coal Mining, (ii) NAMining and (iii) Minerals Management. 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 has items not directly attributable to a reportable segment that are not included as part of the measurement of segment operating profit, which include primarily administrative costs related to public company reporting requirements at the parent company and the financial results of Mitigation Resources and Bellaire. Mitigation Resources 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. 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. 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 2021 2020 2021 2020 Revenues Coal Mining $ 23,682 $ 20,395 $ 70,484 $ 62,896 NAMining 17,693 9,443 51,321 33,115 Minerals Management 10,607 2,722 21,715 9,950 Unallocated Items 1,594 904 2,647 1,257 Eliminations (1,834) (1,169) (3,424) (1,924) Total $ 51,742 $ 32,295 $ 142,743 $ 105,294 Operating profit (loss) Coal Mining $ 23,121 $ 11,174 $ 40,347 $ 25,857 NAMining 312 244 1,225 1,519 Minerals Management 9,454 1,673 17,862 6,450 Unallocated Items (5,170) (3,623) (14,738) (12,341) Eliminations (125) (70) (104) (25) Total $ 27,592 $ 9,398 $ 44,592 $ 21,460 Expenditures for property, plant and equipment and acquisition of mineral interests Coal Mining $ 5,646 $ 3,150 $ 10,378 $ 7,817 NAMining 13,309 3,220 19,127 10,406 Minerals Management 450 633 5,948 1,372 Unallocated Items 2 — 81 207 Total $ 19,407 $ 7,003 $ 35,534 $ 19,802 Depreciation, depletion and amortization Coal Mining $ 4,323 $ 3,793 $ 12,657 $ 10,951 NAMining 1,014 723 2,843 2,021 Minerals Management 423 327 1,392 981 Unallocated Items 36 33 106 91 Total $ 5,796 $ 4,876 $ 16,998 $ 14,044 |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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, 2021, the results of its operations, comprehensive income, cash flows and changes in equity for the nine months ended September 30, 2021 and 2020 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, 2020. The balance sheet at December 31, 2020 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, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 2021 2020 2021 2020 Timing of Revenue Recognition Goods transferred at a point in time $ 20,436 $ 19,871 $ 61,931 $ 61,131 Services transferred over time 31,306 12,424 80,812 44,163 Total revenues $ 51,742 $ 32,295 $ 142,743 $ 105,294 |
Contract Balances | The opening and closing balances of the Company’s current and long-term accounts receivable, contract assets and contract liabilities are as follows: Contract balances Trade accounts receivable, net Contract asset Contract liability (current) Contract liability (long-term) Balance, January 1, 2021 $ 18,894 $ 4,984 $ 941 $ 3,626 Balance, September 30, 2021 19,127 5,790 824 3,683 Increase (decrease) $ 233 $ 806 $ (117) $ 57 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories are summarized as follows: SEPTEMBER 30 DECEMBER 31 Coal $ 17,172 $ 17,695 Mining supplies 33,783 29,856 Total inventories $ 50,955 $ 47,551 |
Fair Value Disclosure (Tables)
Fair Value Disclosure (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021 Assets: Equity securities $ 15,120 $ 15,120 $ — $ — $ 15,120 $ 15,120 $ — $ — December 31, 2020 Assets: Equity securities $ 13,164 $ 13,164 $ — $ — $ 13,164 $ 13,164 $ — $ — |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 2021 2020 2021 2020 Revenues Coal Mining $ 23,682 $ 20,395 $ 70,484 $ 62,896 NAMining 17,693 9,443 51,321 33,115 Minerals Management 10,607 2,722 21,715 9,950 Unallocated Items 1,594 904 2,647 1,257 Eliminations (1,834) (1,169) (3,424) (1,924) Total $ 51,742 $ 32,295 $ 142,743 $ 105,294 Operating profit (loss) Coal Mining $ 23,121 $ 11,174 $ 40,347 $ 25,857 NAMining 312 244 1,225 1,519 Minerals Management 9,454 1,673 17,862 6,450 Unallocated Items (5,170) (3,623) (14,738) (12,341) Eliminations (125) (70) (104) (25) Total $ 27,592 $ 9,398 $ 44,592 $ 21,460 Expenditures for property, plant and equipment and acquisition of mineral interests Coal Mining $ 5,646 $ 3,150 $ 10,378 $ 7,817 NAMining 13,309 3,220 19,127 10,406 Minerals Management 450 633 5,948 1,372 Unallocated Items 2 — 81 207 Total $ 19,407 $ 7,003 $ 35,534 $ 19,802 Depreciation, depletion and amortization Coal Mining $ 4,323 $ 3,793 $ 12,657 $ 10,951 NAMining 1,014 723 2,843 2,021 Minerals Management 423 327 1,392 981 Unallocated Items 36 33 106 91 Total $ 5,796 $ 4,876 $ 16,998 $ 14,044 |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation (Narrative) (Details) $ in Thousands, T in Millions | Jun. 17, 2021USD ($) | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($)a | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)operatingSegment | Sep. 30, 2020USD ($) | Dec. 31, 2020T |
Long-term Purchase Commitment [Line Items] | |||||||
Number of operating segments | operatingSegment | 3 | ||||||
Contract termination settlement | $ 10,333 | $ 0 | $ 10,333 | $ 0 | |||
Coal Mining | Midwest AgEnergy | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Investment | 5,000 | 5,000 | |||||
Coal Mining | Falkirk | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Contract termination settlement | $ 14,000 | ||||||
Coal Mining | Falkirk | Maximum | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Possible additional payment from cancelation of agreement | 8,000 | 8,000 | |||||
Coal Mining | Falkirk | Minimum | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Possible additional payment from cancelation of agreement | $ 2,000 | 2,000 | |||||
Coal Mining | Falkirk | Long-term Contract with Customer | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Historical lignite coal annual delivery | T | 0.3 | ||||||
Coal Mining | Bisti | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Contract termination settlement | $ 10,300 | ||||||
Minerals Management | Eagle Ford Basin | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Gross acres acquired | a | 14,100 | ||||||
Net royalty acres acquired | a | 1,700 | ||||||
Payments to acquire royalty interests | $ 4,700 | ||||||
Additional payment to acquire assets | 600 | ||||||
Total additional payment to acquire assets | 1,200 | ||||||
Minerals Management | Delaware Basin | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Payments to acquire royalty interests | $ 300 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | ||||
Primary term of contract | 5 years | |||
Performance obligations satisfied in prior period, amount recognized | $ 1.8 | |||
Revenue recognized in contract liability | 0.2 | $ 0.2 | $ 0.7 | $ 0.7 |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 51,742 | $ 32,295 | $ 142,743 | $ 105,294 |
Goods transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 20,436 | 19,871 | 61,931 | 61,131 |
Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 31,306 | $ 12,424 | $ 80,812 | $ 44,163 |
Revenue Recognition (Contract B
Revenue Recognition (Contract Balances) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Trade accounts receivable, net | |
Balance, January 1, 2021 | $ 18,894 |
Balance, September 30, 2021 | 19,127 |
Increase (decrease) in trade accounts receivables, net | 233 |
Contract asset (long-term) | |
Balance, January 1, 2021 | 4,984 |
Balance, September 30, 2021 | 5,790 |
Increase (decrease) in contract asset (long-term) | 806 |
Contract liability (current) | |
Balance, January 1, 2021 | 941 |
Balance, September 30, 2021 | 824 |
Increase (decrease) in contract liability (current) | (117) |
Contract liability (long-term) | |
Balance, January 1, 2021 | 3,626 |
Balance, September 30, 2021 | 3,683 |
Increase (decrease) in contract liability (long-term) | $ 57 |
Revenue Recognition (Remaining
Revenue Recognition (Remaining Performance Obligations) (Details) $ in Millions | Sep. 30, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |
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]: 2022-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue expected to be recognized | $ 3.8 |
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, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Coal | $ 17,172 | $ 17,695 |
Mining supplies | 33,783 | 29,856 |
Total inventories | $ 50,955 | $ 47,551 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Class of Stock [Line Items] | |||
Common stock repurchased | $ 1,002 | ||
Class A Common Stock | 2019 Stock Repurchase Program | |||
Class of Stock [Line Items] | |||
Stock repurchase program, authorized amount | $ 25,000 | ||
Common stock repurchased (in shares) | 32,286 | ||
Common stock repurchased | $ 1,000 |
Fair Value Disclosure (On a Rec
Fair Value Disclosure (On a Recurring Basis) (Details) - Fair value measurements, recurring - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Level 1 | ||
Assets: | ||
Equity securities | $ 15,120 | $ 13,164 |
Assets at fair value | 15,120 | 13,164 |
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 | 15,120 | 13,164 |
Assets at fair value | $ 15,120 | $ 13,164 |
Fair Value Disclosure (Narrativ
Fair Value Disclosure (Narrative) (Details) - Level 1 - Fair value measurements, recurring - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Unrealized gain (loss) on equity securities | $ 0.4 | $ (0.5) | $ 1.6 | $ (0.1) | ||
Bellaire | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Unrealized gain (loss) on equity securities | $ 0.1 | $ 0.5 | $ 1 | $ 0.4 | ||
Carrying Value | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Equity securities cost | $ 2 | |||||
Carrying Value | Bellaire | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Equity securities cost | $ 5 |
Unconsolidated Subsidiaries (Na
Unconsolidated Subsidiaries (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Variable Interest Entity [Line Items] | |||||
Investments in unconsolidated subsidiaries and related tax positions | $ 19,312 | $ 19,312 | $ 28,978 | ||
Variable interest entity, reporting entity involvement, maximum risk of loss | 5,800 | 5,800 | 6,500 | ||
Earnings of unconsolidated operations | 17,652 | $ 15,145 | 46,536 | $ 44,926 | |
Contract termination settlement | 10,333 | $ 0 | 10,333 | $ 0 | |
Coal Mining | Bisti | |||||
Variable Interest Entity [Line Items] | |||||
Contract termination settlement | 10,300 | ||||
Other noncurrent assets | |||||
Variable Interest Entity [Line Items] | |||||
Investments in unconsolidated subsidiaries and related tax positions | $ 19,300 | $ 19,300 | $ 29,000 |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 51,742 | $ 32,295 | $ 142,743 | $ 105,294 |
Operating profit (loss) | 27,592 | 9,398 | 44,592 | 21,460 |
Expenditures for property, plant and equipment and acquisition of mineral interests | 19,407 | 7,003 | 35,534 | 19,802 |
Depreciation, depletion and amortization | 5,796 | 4,876 | 16,998 | 14,044 |
Operating segments | Coal Mining | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 23,682 | 20,395 | 70,484 | 62,896 |
Operating profit (loss) | 23,121 | 11,174 | 40,347 | 25,857 |
Expenditures for property, plant and equipment and acquisition of mineral interests | 5,646 | 3,150 | 10,378 | 7,817 |
Depreciation, depletion and amortization | 4,323 | 3,793 | 12,657 | 10,951 |
Operating segments | NAMining | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 17,693 | 9,443 | 51,321 | 33,115 |
Operating profit (loss) | 312 | 244 | 1,225 | 1,519 |
Expenditures for property, plant and equipment and acquisition of mineral interests | 13,309 | 3,220 | 19,127 | 10,406 |
Depreciation, depletion and amortization | 1,014 | 723 | 2,843 | 2,021 |
Operating segments | Minerals Management | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 10,607 | 2,722 | 21,715 | 9,950 |
Operating profit (loss) | 9,454 | 1,673 | 17,862 | 6,450 |
Expenditures for property, plant and equipment and acquisition of mineral interests | 450 | 633 | 5,948 | 1,372 |
Depreciation, depletion and amortization | 423 | 327 | 1,392 | 981 |
Unallocated Items | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,594 | 904 | 2,647 | 1,257 |
Operating profit (loss) | (5,170) | (3,623) | (14,738) | (12,341) |
Expenditures for property, plant and equipment and acquisition of mineral interests | 2 | 0 | 81 | 207 |
Depreciation, depletion and amortization | 36 | 33 | 106 | 91 |
Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (1,834) | (1,169) | (3,424) | (1,924) |
Operating profit (loss) | $ (125) | $ (70) | $ (104) | $ (25) |