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LONG-LIVED ASSET IMPAIRMENTS
12 Months Ended
Dec. 31, 2019
LONG-LIVED ASSET IMPAIRMENTS  
LONG-LIVED ASSET IMPAIRMENTS

4.

LONG-LIVED ASSET IMPAIRMENTS

We ceased coal production effective August 16, 2019 at our Dotiki mine to focus on shifting production to our other lower-cost mines in our Illinois Basin segment.  Accordingly, we adjusted the carrying value of Dotiki's assets from $35.9 million to its fair value of $25.8 million and accrued scheduled payments of $5.1 million to WKY CoalPlay for leased reserves from which we may not receive future economic benefit. The resulting impairment charge totaled $15.2 million.  See Note 11 – Variable Interest Entities for more information about WKY CoalPlay.  Previously, in the fourth quarter of 2018, we reduced Dotiki’s economic mine life which resulted in a $34.3 million impairment charge, and the related adjustment of Dotiki’s asset carrying value from $85.3 million to its fair value of $51.0 million.  Also in the fourth quarter of 2018, a decrease in the fair value of an option entitling us to lease certain coal reserves within the Illinois Basin Segment resulted in an impairment charge of $6.2 million.

The fair value of the impaired assets was determined using a combination of market and income approaches, both of which represent Level 3 fair value measurements under the fair value hierarchy. The fair value analysis used assumptions of marketability of certain assets as well as discounted cash flows over the remaining life of the assets.

See Note 2 – Summary of Significant Accounting Policies – Long-Lived Asset Impairment for more information on our accounting policy for asset impairments.