Acquired Intangibles

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Acquired IntangiblesThe Company has recognized assets for acquired above market-priced coal supply agreements and acquired mine permits and liabilities for acquired below market-priced coal supply agreements. The coal supply agreements were valued based on the present value of the difference between the expected net contractual cash flows based on the stated contract terms, and the estimated net contractual cash flows derived from applying forward market prices at the Merger or acquisition date for new contracts of similar terms and conditions. The acquired mine permits were valued based on the replacement cost and lost profits method as of the Merger date. The balances and respective balance sheet classifications of such assets and liabilities as of June 30, 2020 and December 31, 2019, net of accumulated amortization, are set forth in the following tables:


	June 30, 2020
	Assets ⁽¹⁾		Liabilities ⁽²⁾		Net Total
Coal supply agreements, net	$	330	$	(1,745)	$	(1,415)
Acquired mine permits, net	103,109		—		103,109
Total	$	103,439	$	(1,745)	$	101,694


	December 31, 2019
	Assets ⁽¹⁾		Liabilities ⁽²⁾		Net Total
Coal supply agreements, net	$	917	$	(6,018)	$	(5,101)
Acquired mine permits, net	124,228		—		124,228
Total	$	125,145	$	(6,018)	$	119,127

⁽¹⁾Included within other acquired intangibles, net of accumulated amortization on the Company’s Condensed Consolidated Balance Sheets.

⁽²⁾Included within other non-current liabilities on the Company’s Condensed Consolidated Balance Sheets.

During the three and six months ended June 30, 2020, the Company recorded a long-lived asset impairment which reduced the carrying value of acquired mine permits, net, by $8,653 and $14,471. Refer to Note 8.

The acquired mine permits are amortized over the estimated life of the associated mine. The coal supply agreement assets and liabilities are amortized over the actual number of tons shipped over the life of each contract. The following table details the amortization of mine permits acquired as a result of the Merger and the amortization of above-market and below-market coal supply agreements:


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Amortization of mine permits⁽¹⁾	$	3,320	$	5,664	$	6,648	$	11,605

Amortization of above-market coal supply agreements	$	215	$	122	$	587	$	879
Amortization of below-market coal supply agreements	(1,439)		(6,129)		(4,274)		(19,510)
Net income ⁽¹⁾	$	(1,224)	$	(6,007)	$	(3,687)	$	(18,631)

⁽¹⁾ Included within amortization of acquired intangibles, net in the Condensed Consolidated Statements of Operations.