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Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2020

or

Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from                      to                      .

Commission file number: 1-13105

Graphic

Arch Resources, Inc.

(Exact name of registrant as specified in its charter)

Delaware

    

43-0921172

(State or other jurisdiction

(I.R.S. Employer

of incorporation or organization)

Identification Number)

One CityPlace Drive

    

Suite 300

St. Louis

Missouri

63141

(Address of principal executive offices)

(Zip code)

Registrant’s telephone number, including area code: (314) 994-2700

Arch Coal, Inc.

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol

Name of each exchange on which registered

Common stock, $.01 par value

ARCH

New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes   No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes   No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes   No 

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes   No 

At July 24, 2020 there were 15,146,224 shares of the registrant’s common stock outstanding.

Table of Contents

TABLE OF CONTENTS

Page

Part I FINANCIAL INFORMATION

3

Item 1. Financial Statements

3

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

29

Item 3. Quantitative and Qualitative Disclosures About Market Risk

46

Item 4. Controls and Procedures

47

Part II OTHER INFORMATION

48

Item 1. Legal Proceedings

48

Item 1A. Risk Factors

49

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

49

Item 4. Mine Safety Disclosures

50

Item 6. Exhibits

51

Signatures

55

2

Table of Contents

Part I

FINANCIAL INFORMATION

Item 1.Financial Statements.

Arch Resources, Inc. and Subsidiaries

Condensed Consolidated Statement of Operations

(in thousands, except per share data)

Three Months Ended June 30, 

Six Months Ended June 30, 

    

2020

    

2019

    

2020

    

2019

(Unaudited)

(Unaudited)

Revenues

$

319,521

$

570,222

$

724,753

$

1,125,405

Costs, expenses and other operating

 

  

 

  

 

 

  

 

Cost of sales (exclusive of items shown separately below)

 

316,348

 

451,088

 

691,347

 

889,559

 

Depreciation, depletion and amortization

 

30,167

 

26,535

 

61,475

 

51,873

 

Accretion on asset retirement obligations

 

4,986

 

5,137

 

9,992

 

10,274

 

Change in fair value of coal derivatives and coal trading activities, net

 

(129)

 

(8,400)

 

614

 

(21,381)

 

Selling, general and administrative expenses

 

19,738

 

25,209

 

42,483

 

49,298

 

Costs related to proposed joint venture with Peabody Energy

 

7,851

 

3,018

 

11,515

 

3,018

 

Severance costs related to voluntary separation plan

 

7,437

 

 

13,265

 

 

Gain on property insurance recovery related to Mountain Laurel longwall

 

(14,518)

 

 

(23,518)

 

 

(Gain) loss on divestitures

 

(1,369)

 

4,304

 

(1,369)

 

4,304

 

Other operating income, net

 

(5,704)

 

(3,239)

 

(11,874)

 

(4,889)

 

 

364,807

 

503,652

 

793,930

 

982,056

 

Income (loss) from operations

 

(45,286)

 

66,570

 

(69,177)

 

143,349

 

Interest expense, net

 

  

 

  

 

  

 

  

 

Interest expense

 

(3,523)

 

(4,375)

 

(6,911)

 

(8,807)

 

Interest and investment income

 

1,793

 

2,088

 

3,052

 

4,231

 

 

(1,730)

 

(2,287)

 

(3,859)

 

(4,576)

 

Income (loss) before nonoperating expenses

 

(47,016)

 

64,283

 

(73,036)

 

138,773

 

Nonoperating (expenses) income

 

  

 

  

 

  

 

  

 

Non-service related pension and postretirement benefit costs

 

(1,102)

 

(1,336)

 

(2,198)

 

(3,102)

 

Reorganization items, net

 

 

(16)

 

26

 

71

 

 

(1,102)

 

(1,352)

 

(2,172)

 

(3,031)

 

Income (loss) before income taxes

 

(48,118)

 

62,931

 

(75,208)

 

135,742

 

Provision for (benefit from) income taxes

 

1,206

 

91

 

(585)

 

161

 

Net income (loss)

$

(49,324)

$

62,840

$

(74,623)

$

135,581

Net income (loss) per common share

 

  

 

  

 

  

 

  

Basic earnings per common share

$

(3.26)

$

3.80

$

(4.93)

$

7.97

Diluted earnings per common share

$

(3.26)

$

3.53

$

(4.93)

$

7.45

Weighted average shares outstanding

 

  

 

  

 

  

 

  

Basic weighted average shares outstanding

 

15,145

 

16,543

 

15,142

 

17,018

Diluted weighted average shares outstanding

 

15,145

 

17,781

 

15,142

 

18,190

Dividends declared per common share

$

$

0.45

$

0.50

$

0.90

The accompanying notes are an integral part of the condensed consolidated financial statements.

3

Table of Contents

Arch Resources, Inc. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income (Loss)

(in thousands)

Three Months Ended June 30, 

Six Months Ended June 30, 

    

2020

    

2019

    

2020

    

2019

(Unaudited)

(Unaudited)

Net income (loss)

$

(49,324)

$

62,840

$

(74,623)

$

135,581

Derivative instruments

 

  

 

  

 

  

 

  

 

Comprehensive income (loss) before tax

 

363

 

(2,778)

 

(2,306)

 

(61)

 

Income tax benefit (provision)

 

 

 

 

 

 

363

 

(2,778)

 

(2,306)

 

(61)

 

Pension, postretirement and other post-employment benefits

 

  

 

  

 

  

 

  

Comprehensive income (loss) before tax

 

(2,336)

 

2,902

 

(16,603)

 

2,902

 

Income tax benefit (provision)

 

 

 

 

 

 

(2,336)

 

2,902

 

(16,603)

 

2,902

 

Available-for-sale securities

 

  

 

  

 

  

 

  

 

Comprehensive income (loss) before tax

 

533

 

274

 

66

 

651

 

Income tax benefit (provision)

 

 

 

 

 

 

533

 

274

 

66

 

651

 

Total other comprehensive income (loss)

 

(1,440)

 

398

 

(18,843)

 

3,492

 

Total comprehensive income (loss)

$

(50,764)

$

63,238

$

(93,466)

$

139,073

The accompanying notes are an integral part of the condensed consolidated financial statements.

4

Table of Contents

Arch Resources, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands, except per share data)

    

June 30, 2020

    

December 31, 2019

(Unaudited)

Assets

Current assets

 

  

 

  

Cash and cash equivalents

$

150,022

$

153,020

Short-term investments

 

67,237

 

135,667

Trade accounts receivable (net of $718 allowance at June 30, 2020)

 

118,835

 

168,125

Other receivables

 

2,960

 

21,143

Inventories

 

154,690

 

130,898

Other current assets

 

70,758

 

97,894

Total current assets

 

564,502

 

706,747

Property, plant and equipment, net

 

1,066,614

 

984,509

Other assets

 

  

 

  

Equity investments

 

106,125

 

105,588

Other noncurrent assets

 

65,148

 

70,912

Total other assets

 

171,273

 

176,500

Total assets

$

1,802,389

$

1,867,756

Liabilities and Stockholders' Equity

 

  

 

  

Current Liabilities

 

  

 

  

Accounts payable

$

104,464

$

133,060

Accrued expenses and other current liabilities

 

143,304

 

157,167

Current maturities of debt

 

25,702

 

20,753

Total current liabilities

 

273,470

 

310,980

Long-term debt

 

323,854

 

290,066

Asset retirement obligations

 

238,883

 

242,432

Accrued pension benefits

 

13,875

 

5,476

Accrued postretirement benefits other than pension

 

86,772

 

80,567

Accrued workers’ compensation

 

219,095

 

215,599

Other noncurrent liabilities

 

98,658

 

82,100

Total liabilities

 

1,254,607

 

1,227,220

Stockholders' equity

 

  

 

  

Common stock, $0.01 par value, authorized 300,000 shares, issued 25,235 and 25,220 shares at June 30, 2020 and December 31, 2019, respectively

 

252

 

252

Paid-in capital

 

739,156

 

730,551

Retained earnings

 

648,909

 

731,425

Treasury stock, 10,088 shares at June 30, 2020 and December 31, 2019, respectively, at cost

 

(827,381)

 

(827,381)

Accumulated other comprehensive income (loss)

 

(13,154)

 

5,689

Total stockholders’ equity

 

547,782

 

640,536

Total liabilities and stockholders’ equity

$

1,802,389

$

1,867,756

The accompanying notes are an integral part of the condensed consolidated financial statements.

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Arch Resources, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in thousands)

Six Months Ended June 30, 

    

2020

    

2019

(Unaudited)

Operating activities

 

  

 

  

Net income (loss)

$

(74,623)

$

135,581

Adjustments to reconcile to cash from operating activities:

 

  

 

  

Depreciation, depletion and amortization

 

61,475

 

51,873

Accretion on asset retirement obligations

 

9,992

 

10,274

Deferred income taxes

 

13,880

 

13,385

Employee stock-based compensation expense

 

8,936

 

11,473

Gains on disposals and divestitures, net

 

(3,180)

 

(1,415)

Amortization relating to financing activities

 

1,946

 

1,826

Gain on property insurance recovery related to Mountain Laurel longwall

 

(23,518)

 

Changes in:

 

  

 

Receivables

 

55,817

 

17,871

Inventories

 

(23,792)

 

(47,370)

Accounts payable, accrued expenses and other current liabilities

 

(42,889)

 

4,497

Income taxes, net

22,918

24,575

Other

 

18,960

 

3,336

Cash provided by operating activities

 

25,922

 

225,906

Investing activities

 

  

 

  

Capital expenditures

 

(148,561)

 

(87,854)

Minimum royalty payments

 

(1,124)

 

(1,125)

Proceeds from disposals and divestitures

 

562

 

1,591

Purchases of short term investments

 

(17,707)

 

(89,454)

Proceeds from sales of short term investments

 

86,079

 

90,424

Investments in and advances to affiliates, net

 

(1,059)

 

(3,275)

Proceeds from property insurance recovery related to Mountain Laurel longwall

23,518

Cash used in investing activities

 

(58,292)

 

(89,693)

Financing activities

 

  

 

  

Payments on term loan due 2024

 

(1,500)

 

(1,500)

Proceeds from equipment financing

53,611

Net payments on other debt

 

(13,592)

 

(8,845)

Debt financing costs

 

(1,171)

 

Dividends paid

 

(7,645)

 

(15,264)

Purchases of treasury stock

 

 

(143,142)

Payments for taxes related to net share settlement of equity awards

 

(331)

 

Other

 

 

30

Cash provided by (used in) financing activities

 

29,372

 

(168,721)

Decrease in cash and cash equivalents, including restricted cash

 

(2,998)

 

(32,508)

Cash and cash equivalents, including restricted cash, beginning of period

 

153,020

 

264,937

Cash and cash equivalents, including restricted cash, end of period

$

150,022

$

232,429

Cash and cash equivalents, including restricted cash, end of period

Cash and cash equivalents

$

150,022

$

232,429

Restricted cash

$

150,022

$

232,429

The accompanying notes are an integral part of the condensed consolidated financial statements.

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Arch Resources, Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity

(in thousands)

    

    

    

    

    

Treasury

    

Accumulated Other

    

Common

Paid-In

Stock at

Comprehensive

Stock

Capital

Retained Earnings

Cost

Income (loss)

Total

(In thousands)

Balances, January 1, 2020

 

$

252

 

$

730,551

$

731,425

$

(827,381)

$

5,689

$

640,536

Dividends on common shares ($0.50/share)

 

 

 

(7,834)

 

 

 

(7,834)

Total comprehensive income (loss)

 

 

 

(25,299)

 

 

(17,403)

 

(42,702)

Employee stock-based compensation

3,962

3,962

Common stock withheld related to net share settlement of equity awards

(198)

(198)

Balances at March 31, 2020

$

252

$

734,315

$

698,292

$

(827,381)

$

(11,714)

$

593,764

Total comprehensive income

 

 

 

(49,324)

 

 

(1,440)

 

(50,764)

Employee stock-based compensation

 

 

4,891

 

 

 

 

4,891

Common stock withheld related to net share settlement of equity awards

 

 

(50)

 

 

 

 

(50)

Dividend Equivalents earned on RSU grants

(59)

(59)

Balances at June 30, 2020

$

252

$

739,156

$

648,909

$

(827,381)

$

(13,154)

$

547,782

Balances, January 1, 2019

    

$

250

    

$

717,492

    

$

527,666

    

$

(583,883)

    

$

43,296

    

$

704,821

Dividends on common shares ($0.45/share)

 

 

 

(8,111)

 

 

 

(8,111)

Total comprehensive income

 

 

 

72,741

 

 

3,094

 

75,835

Employee stock-based compensation

5,651

5,651

Purchase of 872,317 shares of common stock under share repurchase program

 

 

 

 

(78,249)

 

 

(78,249)

Balances at March 31, 2019

$

250

$

723,143

$

592,296

$

(662,132)

$

46,390

$

699,947

           

                            

                         

Dividends on common shares ($0.45/share)

 

 

 

(7,696)

 

 

 

(7,696)

Total comprehensive income

 

 

 

62,840

 

 

398

 

63,238

Employee stock-based compensation

 

 

5,822

 

 

 

 

5,822

Purchase of 697,255 shares of common stock under share repurchase program

 

 

 

 

(63,392)

 

 

(63,392)

Warrants exercised

 

 

31

 

 

 

 

31

Balances at June 30, 2019

$

250

$

728,996

$

647,440

$

(725,524)

$

46,788

$

697,950

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Arch Resources, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(unaudited)

1. Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of Arch Resources, Inc. (“Arch Resources”) and its subsidiaries (“Arch” or the “Company”). Unless the context indicates otherwise, the terms “Arch” and the “Company” are used interchangeably in this Quarterly Report on Form 10-Q. The Company’s primary business is the production of thermal and metallurgical coal from surface and underground mines located throughout the United States, for sale to utility, industrial and steel producers both in the United States and around the world. The Company currently operates mining complexes in West Virginia, Illinois, Wyoming and Colorado. All subsidiaries are wholly-owned. Intercompany transactions and accounts have been eliminated in consolidation.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting and U.S. Securities and Exchange Commission regulations. In the opinion of management, all adjustments, consisting of normal, recurring accruals considered necessary for a fair presentation, have been included. Results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of results to be expected for the year ending December 31, 2020. These financial statements should be read in conjunction with the audited financial statements and related notes as of and for the year ended December 31, 2019 included in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission.

Effective May 15, 2020, Arch Coal, Inc. announced that its name changed to Arch Resources, Inc.

2. Accounting Policies

Recently Adopted Accounting Guidance

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments,” and also issued subsequent amendments to the initial guidance under ASU 2018-19, ASU 2019-04 and ASU 2019-05. The standard modifies the measurement approach for credit losses on financial instruments, including trade receivables, from an incurred loss method to a current expected credit loss method, otherwise known as “CECL.” The standard requires the measurement of expected credit losses to be based on relevant information, including historical experience, current conditions and a forecast that is supportable. The Company adopted the standard in the first quarter of 2020, with minimal impact to the Company’s financial results.

As part of the adoption, the Company reviewed its’ portfolio of available-for-sale debt securities in an unrealized loss position, and assessed whether it intends to sell, or it is more likely than not that it will be required to sell before recovery of its’ amortized cost basis. The Company determined that is currently does not intend to sell these securities before recovery of their amortized cost basis. Additionally, the Company evaluated whether the decline in fair value has resulted from credit losses or other factors by considering the extent to which the fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the Company compares the present value of the cash flows expected to be collected against the amortized cost basis. A credit loss is recorded if the present value of the cash flows is less than the amortized cost basis, limited by the amount that the fair value is less than the amortized cost basis. Upon adoption, the Company did not record an allowance for credit losses on its available-for-sale debt securities.

Additionally, the Company reviewed its open trade receivables arising from contractual coal sales. As part of its analysis, the Company performs periodic credit reviews of all active customers, reviews all trade receivables greater than 90 days past due, calculates historical loss rates and reviews current payment trends of all customers.

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Recent Accounting Guidance Issued Not Yet Effective

In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes.” ASU 2019-12 eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The ASU is effective for public companies for fiscal years beginning after December 15, 2020, and interim periods therein with early adoption permitted. The Company is reviewing the provisions of the standard but does not expect a significant impact to the Company's financial statements.

In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." The amendments provide optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. We are currently evaluating our contracts and the optional expedients provided by the new standard.

3. Joint Venture with Peabody Energy

On June 18, 2019, Arch Coal, Inc. (now Arch Resources) entered into a definitive implementation agreement (the “Implementation Agreement”) with Peabody Energy Corporation (“Peabody”), to establish a joint venture that will combine the respective Powder River Basin and Colorado mining operations of Arch Resources and Peabody. Pursuant to the terms of the Implementation Agreement, Arch Resources will hold a 33.5% economic interest, and Peabody will hold a 66.5% economic interest in the joint venture. At the closing of the joint venture transaction, certain of the respective subsidiaries of Arch Resources and Peabody will enter into an Amended and Restated Limited Liability Company Agreement (the “LLC Agreement”). Under the terms of the LLC Agreement, the governance of the joint venture will be overseen by the joint venture’s board of managers, which will initially be comprised of three representatives appointed by Peabody and two representatives appointed by Arch. Decisions of the board of managers will be determined by a majority vote subject to certain specified matters set forth in the LLC Agreement that will require a supermajority vote. Peabody, or one of its affiliates, will initially be appointed as the operator of the joint venture and will manage the day-to-day operations of the joint venture, subject to the supervision of the joint venture’s board of managers.

Formation of the joint venture is subject to customary closing conditions, including the termination or expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, the receipt of certain other required regulatory approvals and the absence of injunctions or other legal restraints preventing the formation of the joint venture. Formation of the joint venture does not require approval of the respective stockholders of either Arch or Peabody.

On February 26, 2020, the Federal Trade Commission (“FTC”) filed an administrative complaint challenging the proposed joint venture alleging the transaction will eliminate competition between Arch Resources and Peabody, the two major competitors in the market for thermal coal in the Southern Powder River Basin and the two largest coal-mining companies in the United States. The FTC filed a temporary restraining order and preliminary injunction in the U.S. District Court for the Eastern District of Missouri, to maintain the status quo pending an administrative trial on the merits.

Between July 14 and July 23, 2020, the federal court in St. Louis conducted an evidentiary hearing, during which both sides further presented their evidence and arguments. Closing arguments are scheduled to take place on August 10, 2020 and a ruling on the FTC’s motion for preliminary injunction is expected by the end of the third quarter 2020.

The Company has incurred expenses of $7.9 million and $11.5 million for the three and six months ended June 30, 2020, respectively, associated with the regulatory approval process related to the joint venture. Costs of $3.0 million were incurred for both the three and six months ended June 30, 2019.

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4. Gain on Property Insurance Recovery Related to Mountain Laurel Longwall

The Company recorded a $14.5 million and $23.5 million gain related to a property insurance recovery on the longwall shields at its Mountain Laurel operation during the three and six months ended June 30, 2020, respectively. As a result of geologic conditions in the final longwall panel, Mountain Laurel was unable to recover 123 of the longwall system’s 176 hydraulic shields. All of the cash associated with the insurance recovery was received by the end of the quarter.

5. Severance Costs Related To Voluntary Separation Plan

The Company recorded $7.4 million and $13.3 million of employee severance expense related to a voluntary separation plan during the three and six months ended June 30, 2020, respectively. During the first and second quarters of 2020, 53 members of the corporate staff and 201 employees from the Company’s thermal operations accepted the voluntary separation package.

6. Divestitures

During the quarter, various Dal-Tex and Briar Branch properties in West Virginia were sold to Condor Holdings, LLC. No consideration was received for the sale and a gain of $1.4 million was recorded representing the net liabilities sold.

On September 14, 2017, the Company sold Lone Mountain Processing, LLC and two idled mining companies, Cumberland River Coal LLC and Powell Mountain Energy LLC to Revelation Energy LLC, and recorded a gain on the transaction in that year of $21.3 million. Under the terms of the purchase agreement, Revelation assumed certain traumatic workers compensation claims and pneumoconiosis (occupational disease) benefits. On July 1, 2019, Blackjewel LLC and four affiliates, including Revelation Energy LLC filed for Chapter 11 bankruptcy. As a result of the bankruptcy, the Company recorded a $4.3 million charge for these claims as of June 30, 2019.

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7. Accumulated Other Comprehensive Income (Loss)

The following items are included in accumulated other comprehensive income (loss) (“AOCI”), net of tax:

    

    

Pension,

    

 

Postretirement

Accumulated

and Other Post-

Other

Derivative

Employment

Available-for-

Comprehensive

Instruments

Benefits

Sale Securities

Income (loss)

 

(In thousands)

Balance at December 31, 2019

$

(2,564)

$

8,273

$

(20)

 

$

5,689

Unrealized losses

 

(2,974)

 

(15,953)

 

206

 

 

(18,721)

Amounts reclassified from AOCI

 

668

 

(650)

 

(140)

 

 

(122)

Balance at June 30, 2020

$

(4,870)

$

(8,330)

$

46

 

$

(13,154)

The following amounts were reclassified out of AOCI:

Three Months Ended June 30, 

Six Months Ended June 30, 

 

 

Line Item in the
Condensed Consolidated

Details About AOCI Components

    

2020

    

2019

    

2020

    

2019

  

  

Statement of Operations

(In thousands)

Coal hedges

$

196

$

1,743

$

196

$

2,104

 

Revenues

Interest rate hedges

 

(648)

 

514

 

(864)

 

1,029

 

Interest expense

 

 

 

 

 

Provision for (benefit from) income taxes

$

(452)

$

2,257

$

(668)

$

3,133

 

Net of tax

Pension, postretirement and other post-employment benefits

Amortization of actuarial gains (losses), net

$

232

$

$

466

$

 

Non-service related pension and postretirement benefit (costs) credits

Amortization of prior service credits

27

54

Non-service related pension and postretirement benefit (costs) credits

Pension settlement

134

 

429

130

 

429

 

Non-service related pension and postretirement benefit (costs) credits

 

 

 

 

 

Provision for (benefit from) income taxes

$

393

$

429

$

650

$

429

 

Net of tax

Available-for-sale securities

$

141

$

15

$

140

$

15

 

Interest and investment income

 

 

 

 

 

Provision for (benefit from) income taxes

$

141

$

15

$

140

$

15

 

Net of tax

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8. Inventories

Inventories consist of the following:

    

June 30, 

    

December 31, 

 

2020

 

2019

(In thousands)

Coal

$