Page 46 - 2019 Annual Report
P. 46

NOTES TO FINANCIAL STATEMENTS (continued)

           Note N: Shareholders’ Equity
           The authorized capital structure of the Company includes 100.0 million shares of common stock, with a par value of $0.01 a
           share.  At  December 31,  2019,  approximately  1.5  million  common  shares  were  reserved  for  issuance  under  stock‐based
           award plans.
           Pursuant to authority granted by its Board of Directors, the Company can repurchase up to 20.0 million shares of common
           stock.  The  Company  repurchased 0.4  million, 0.5  million  and 0.5  million  shares of common  stock  during 2019, 2018  and
           2017,  respectively.   At  December 31,  2019,  13.7  million  shares  of  common  stock  were  remaining  under  the  Company’s
           repurchase authorization.

           Note O: Commitments and Contingencies
           Legal and Administrative Proceedings. The Company is engaged in certain legal and administrative proceedings incidental to
           its normal business activities. In the opinion of management and counsel, based upon currently‐available facts, the likelihood
           is remote that the ultimate outcome of any litigation and other proceedings, including those pertaining to environmental
           matters (see Note A), relating to the Company and its subsidiaries, will have a material adverse effect on the overall results of
           the Company’s operations, its cash flows or its financial position.

           Asset Retirement Obligations. The Company incurs reclamation and teardown costs as part of its mining and production
           processes. Estimated future obligations are discounted to their present value and accreted to their projected future obligations
           via charges to operating expenses. Additionally, the fixed assets recorded concurrently with the liabilities are depreciated over
           the period until retirement activities are expected to occur. Total accretion and depreciation expenses for 2019, 2018 and 2017
           were $9.1 million, $8.0 million and $8.7 million, respectively, and are included in Other operating income and expenses, net, in
           the consolidated statements of earnings.
           The following shows the changes in the asset retirement obligations:

            years ended December 31
            (in millions)                                                             2019             2018
            Balance at beginning of year                                          $       121.8      $      109.7
            Accretion expense                                                               5.6               5.1
            Liabilities incurred and liabilities assumed in business combinations           0.6               4.6
            Liabilities settled                                                             (1.2 )           (2.8 )
            Revisions in estimated cash flows                                              17.1               5.2
            Balance at end of year                                                $       143.9      $      121.8

           Other Environmental Matters. The Company’s operations are subject to and affected by federal, state and local laws and
           regulations relating to the environment, health and safety and other regulatory matters. Certain of the Company’s operations
           may, from time to time, involve the use of substances that are classified as toxic or hazardous within the meaning of these laws
           and regulations. Environmental operating permits are, or may be, required for certain of the Company’s operations, and such
           permits are subject to modification, renewal and revocation. The Company regularly monitors and reviews its operations,
           procedures  and  policies  for  compliance  with  these  laws  and  regulations.  Despite  these  compliance  efforts,  risk  of
           environmental remediation liability is inherent in the operation of the Company’s businesses, as it is with other companies
           engaged in similar businesses. The Company has no material provisions for environmental remediation liabilities and does not
           believe such liabilities will have a material adverse effect on the Company in the future.

           Insurance Reserves. At December 31, 2019 and 2018, reserves of $39.9 million and $48.3 million, respectively, were recorded
           for insurance claims.

           Letters of Credit. In the normal course of business, the Company provides certain third parties with standby letter of credit
           agreements  guaranteeing  its  payment  for  certain  insurance  claims,  contract  performance  and  permit  requirements.  At
           December 31, 2019, the Company was contingently liable for $32.9 million in letters of credit.

           Surety Bonds. In the normal course of business, at December 31, 2019, the Company was contingently liable for $395.1 million
           in surety bonds required by certain states and municipalities and their related agencies. The bonds are principally for certain
           insurance  claims,  construction  contracts,  reclamation  obligations  and  mining  permits  guaranteeing  the  Company’s  own




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