false2020Q3000152474112/3100015247412020-01-012020-09-30xbrli:shares00015247412020-10-28iso4217:USD00015247412020-09-3000015247412019-12-31iso4217:USDxbrli:shares0001524741us-gaap:ProductMember2020-07-012020-09-300001524741us-gaap:ProductMember2019-07-012019-09-300001524741us-gaap:ProductMember2020-01-012020-09-300001524741us-gaap:ProductMember2019-01-012019-09-300001524741us-gaap:ServiceMember2020-07-012020-09-300001524741us-gaap:ServiceMember2019-07-012019-09-300001524741us-gaap:ServiceMember2020-01-012020-09-300001524741us-gaap:ServiceMember2019-01-012019-09-3000015247412020-07-012020-09-3000015247412019-07-012019-09-3000015247412019-01-012019-09-300001524741us-gaap:CommonStockMember2020-06-300001524741us-gaap:TreasuryStockMember2020-06-300001524741us-gaap:AdditionalPaidInCapitalMember2020-06-300001524741us-gaap:RetainedEarningsMember2020-06-300001524741us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300001524741us-gaap:ParentMember2020-06-300001524741us-gaap:NoncontrollingInterestMember2020-06-3000015247412020-06-300001524741us-gaap:RetainedEarningsMember2020-07-012020-09-300001524741us-gaap:ParentMember2020-07-012020-09-300001524741us-gaap:NoncontrollingInterestMember2020-07-012020-09-300001524741us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300001524741us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-300001524741us-gaap:CommonStockMember2020-07-012020-09-300001524741us-gaap:TreasuryStockMember2020-07-012020-09-300001524741us-gaap:CommonStockMember2020-09-300001524741us-gaap:TreasuryStockMember2020-09-300001524741us-gaap:AdditionalPaidInCapitalMember2020-09-300001524741us-gaap:RetainedEarningsMember2020-09-300001524741us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300001524741us-gaap:ParentMember2020-09-300001524741us-gaap:NoncontrollingInterestMember2020-09-300001524741us-gaap:CommonStockMember2019-06-300001524741us-gaap:TreasuryStockMember2019-06-300001524741us-gaap:AdditionalPaidInCapitalMember2019-06-300001524741us-gaap:RetainedEarningsMember2019-06-300001524741us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-300001524741us-gaap:ParentMember2019-06-300001524741us-gaap:NoncontrollingInterestMember2019-06-3000015247412019-06-300001524741us-gaap:RetainedEarningsMember2019-07-012019-09-300001524741us-gaap:ParentMember2019-07-012019-09-300001524741us-gaap:NoncontrollingInterestMember2019-07-012019-09-300001524741us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-07-012019-09-300001524741us-gaap:AdditionalPaidInCapitalMember2019-07-012019-09-300001524741us-gaap:TreasuryStockMember2019-07-012019-09-300001524741us-gaap:CommonStockMember2019-09-300001524741us-gaap:TreasuryStockMember2019-09-300001524741us-gaap:AdditionalPaidInCapitalMember2019-09-300001524741us-gaap:RetainedEarningsMember2019-09-300001524741us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-09-300001524741us-gaap:ParentMember2019-09-300001524741us-gaap:NoncontrollingInterestMember2019-09-3000015247412019-09-300001524741us-gaap:CommonStockMember2019-12-310001524741us-gaap:TreasuryStockMember2019-12-310001524741us-gaap:AdditionalPaidInCapitalMember2019-12-310001524741us-gaap:RetainedEarningsMember2019-12-310001524741us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001524741us-gaap:ParentMember2019-12-310001524741us-gaap:NoncontrollingInterestMember2019-12-310001524741us-gaap:RetainedEarningsMember2020-01-012020-09-300001524741us-gaap:ParentMember2020-01-012020-09-300001524741us-gaap:NoncontrollingInterestMember2020-01-012020-09-300001524741us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-09-300001524741us-gaap:AdditionalPaidInCapitalMember2020-01-012020-09-300001524741us-gaap:CommonStockMember2020-01-012020-09-300001524741us-gaap:TreasuryStockMember2020-01-012020-09-300001524741us-gaap:CommonStockMember2018-12-310001524741us-gaap:TreasuryStockMember2018-12-310001524741us-gaap:AdditionalPaidInCapitalMember2018-12-310001524741us-gaap:RetainedEarningsMember2018-12-310001524741us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-310001524741us-gaap:ParentMember2018-12-310001524741us-gaap:NoncontrollingInterestMember2018-12-3100015247412018-12-310001524741us-gaap:RetainedEarningsMember2019-01-012019-09-300001524741us-gaap:ParentMember2019-01-012019-09-300001524741us-gaap:NoncontrollingInterestMember2019-01-012019-09-300001524741us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-09-300001524741us-gaap:AdditionalPaidInCapitalMember2019-01-012019-09-300001524741us-gaap:TreasuryStockMember2019-01-012019-09-300001524741us-gaap:CommonStockMember2019-01-012019-09-30slca:segmentxbrli:pure0001524741us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2018-07-012018-09-300001524741us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2018-09-300001524741us-gaap:OtherIntangibleAssetsMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMember2018-07-012018-09-300001524741us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2020-09-300001524741us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2020-01-012020-09-300001524741us-gaap:EmployeeStockOptionMember2020-07-012020-09-300001524741us-gaap:EmployeeStockOptionMember2019-07-012019-09-300001524741us-gaap:EmployeeStockOptionMember2020-01-012020-09-300001524741us-gaap:EmployeeStockOptionMember2019-01-012019-09-300001524741slca:RestrictedStockandPerformanceSharesMember2020-07-012020-09-300001524741slca:RestrictedStockandPerformanceSharesMember2019-07-012019-09-300001524741slca:RestrictedStockandPerformanceSharesMember2020-01-012020-09-300001524741slca:RestrictedStockandPerformanceSharesMember2019-01-012019-09-3000015247412020-02-1000015247412020-04-012020-06-300001524741slca:May2018ShareRepurchaseProgramMember2018-05-310001524741slca:May2018ShareRepurchaseProgramMember2018-05-312020-09-300001524741slca:May2018ShareRepurchaseProgramMember2020-09-300001524741slca:May2018ShareRepurchaseProgramMember2020-01-012020-09-300001524741us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2019-12-310001524741us-gaap:AccumulatedTranslationAdjustmentMember2019-12-310001524741us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-12-310001524741us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-01-012020-09-300001524741us-gaap:AccumulatedTranslationAdjustmentMember2020-01-012020-09-300001524741us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-01-012020-09-300001524741us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-09-300001524741us-gaap:AccumulatedTranslationAdjustmentMember2020-09-300001524741us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-09-300001524741slca:SandBoxLogisticsMemberslca:ArrowsUpLLCMember2020-01-012020-03-310001524741slca:SandBoxLogisticsMemberslca:ArrowsUpLLCMember2020-03-310001524741slca:SandBoxLogisticsMemberslca:ArrowsUpLLCMember2020-07-012020-09-300001524741slca:SandBoxLogisticsMemberslca:ArrowsUpLLCMember2020-01-012020-09-300001524741slca:OilAndGasProppantsMember2019-12-310001524741slca:IndustrialAndSpecialtyProductsMember2019-12-310001524741slca:OilAndGasProppantsMember2020-01-012020-09-300001524741slca:IndustrialAndSpecialtyProductsMember2020-01-012020-09-300001524741slca:OilAndGasProppantsMember2020-09-300001524741slca:IndustrialAndSpecialtyProductsMember2020-09-300001524741us-gaap:CustomerConcentrationRiskMemberslca:TenLargestCustomersMemberus-gaap:SalesRevenueNetMember2020-07-012020-09-300001524741us-gaap:CustomerConcentrationRiskMemberslca:TenLargestCustomersMemberus-gaap:SalesRevenueNetMember2020-01-012020-09-300001524741us-gaap:CustomerConcentrationRiskMemberslca:TenLargestCustomersMemberus-gaap:SalesRevenueNetMember2019-07-012019-09-300001524741us-gaap:CustomerConcentrationRiskMemberslca:TenLargestCustomersMemberus-gaap:SalesRevenueNetMember2019-01-012019-09-300001524741slca:CustomerOneMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2019-07-012019-09-300001524741slca:CustomerOneMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2019-01-012019-09-300001524741slca:CustomerOneMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2020-01-012020-09-300001524741slca:CustomerOneMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2019-01-012019-12-310001524741slca:COVID19PandemicMemberslca:OilAndGasProppantsMember2020-07-012020-09-300001524741slca:COVID19PandemicMemberslca:OilAndGasProppantsMember2020-01-012020-09-300001524741slca:MiningPropertyAndMineDevelopmentMember2020-09-300001524741slca:MiningPropertyAndMineDevelopmentMember2019-12-310001524741us-gaap:AssetRetirementObligationCostsMember2020-09-300001524741us-gaap:AssetRetirementObligationCostsMember2019-12-310001524741us-gaap:LandMember2020-09-300001524741us-gaap:LandMember2019-12-310001524741us-gaap:LandImprovementsMember2020-09-300001524741us-gaap:LandImprovementsMember2019-12-310001524741us-gaap:BuildingMember2020-09-300001524741us-gaap:BuildingMember2019-12-310001524741us-gaap:MachineryAndEquipmentMember2020-09-300001524741us-gaap:MachineryAndEquipmentMember2019-12-310001524741us-gaap:FurnitureAndFixturesMember2020-09-300001524741us-gaap:FurnitureAndFixturesMember2019-12-310001524741us-gaap:ConstructionInProgressMember2020-09-300001524741us-gaap:ConstructionInProgressMember2019-12-310001524741slca:MiningPropertyAndMineDevelopmentMember2020-01-012020-09-300001524741slca:MiningPropertyAndMineDevelopmentMember2019-01-012019-09-30slca:transload_facility0001524741slca:PermianEagleFordandAppalachianBasinsMemberslca:CIGLogisticsMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2018-03-212018-03-210001524741slca:PermianEagleFordandAppalachianBasinsMemberslca:CIGLogisticsMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2018-03-210001524741slca:PermianEagleFordandAppalachianBasinsMemberslca:CIGLogisticsMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMemberslca:TransloadFacilitiesMember2018-03-210001524741slca:PermianEagleFordandAppalachianBasinsMemberslca:CIGLogisticsMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMemberus-gaap:AccountsPayableAndAccruedLiabilitiesMember2020-09-300001524741us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:LandMember2020-09-300001524741us-gaap:LandMember2020-01-012020-09-300001524741slca:EPMineralHoldingsInc.Memberslca:OilAndGasProppantsMember2020-01-012020-09-300001524741slca:IndustrialAndSpecialtyProductsMemberslca:EPMineralHoldingsInc.Member2020-01-012020-09-300001524741slca:EPMineralHoldingsInc.Member2020-01-012020-09-300001524741slca:IndustrialAndSpecialtyProductsMemberslca:EPMineralHoldingsInc.Member2020-01-012020-03-310001524741slca:COVID19PandemicMemberslca:OilAndGasProppantsMember2020-01-012020-03-310001524741slca:COVID19PandemicMemberslca:OilAndGasProppantsMember2020-04-012020-09-300001524741us-gaap:IntellectualPropertyMember2020-09-300001524741us-gaap:IntellectualPropertyMember2019-12-310001524741us-gaap:CustomerRelationshipsMember2020-09-300001524741us-gaap:CustomerRelationshipsMember2019-12-310001524741us-gaap:TradeNamesMember2020-09-300001524741us-gaap:TradeNamesMember2019-12-310001524741us-gaap:OtherIntangibleAssetsMember2020-09-300001524741us-gaap:OtherIntangibleAssetsMember2019-12-310001524741us-gaap:IntellectualPropertyMember2020-01-012020-09-300001524741us-gaap:CustomerRelationshipsMembersrt:MinimumMember2020-01-012020-09-300001524741us-gaap:CustomerRelationshipsMembersrt:MaximumMember2020-01-012020-09-300001524741slca:OilAndGasProppantsMember2020-04-012020-06-300001524741us-gaap:RevolvingCreditFacilityMemberslca:RevolverMember2020-09-300001524741us-gaap:RevolvingCreditFacilityMemberslca:RevolverMember2019-12-310001524741us-gaap:SecuredDebtMemberslca:SeniorSecuredCreditFacilityMember2020-09-300001524741us-gaap:SecuredDebtMemberslca:SeniorSecuredCreditFacilityMember2019-12-310001524741us-gaap:NotesPayableOtherPayablesMemberslca:NotePayableSecuredbyRoyaltyInterestMember2020-09-300001524741us-gaap:NotesPayableOtherPayablesMemberslca:NotePayableSecuredbyRoyaltyInterestMember2019-12-310001524741slca:InsuranceFinancingNotesPayableMemberus-gaap:NotesPayableOtherPayablesMember2020-09-300001524741slca:InsuranceFinancingNotesPayableMemberus-gaap:NotesPayableOtherPayablesMember2019-12-310001524741slca:EquipmentNotesPayableMemberus-gaap:NotesPayableOtherPayablesMember2020-09-300001524741slca:EquipmentNotesPayableMemberus-gaap:NotesPayableOtherPayablesMember2019-12-310001524741us-gaap:SecuredDebtMember2018-05-010001524741us-gaap:SecuredDebtMemberslca:SeniorSecuredCreditFacilityMember2018-05-010001524741us-gaap:RevolvingCreditFacilityMemberslca:RevolverMemberus-gaap:SecuredDebtMember2018-05-010001524741us-gaap:RevolvingCreditFacilityMemberslca:RevolverMemberus-gaap:SecuredDebtMember2018-05-012018-05-010001524741us-gaap:LetterOfCreditMemberslca:RevolverMember2020-09-300001524741us-gaap:NotesPayableOtherPayablesMemberslca:NotePayableSecuredbyRoyaltyInterestMember2016-08-160001524741us-gaap:MeasurementInputDiscountRateMemberus-gaap:NotesPayableOtherPayablesMemberslca:NotePayableSecuredbyRoyaltyInterestMember2016-08-160001524741us-gaap:MeasurementInputDiscountRateMemberus-gaap:NotesPayableOtherPayablesMemberslca:NotePayableSecuredbyRoyaltyInterestMember2020-09-30slca:payment0001524741us-gaap:SubsequentEventMemberus-gaap:NotesPayableOtherPayablesMemberslca:NotePayableSecuredbyRoyaltyInterestMember2020-10-012020-10-010001524741slca:InsuranceFinancingNotesPayableMemberus-gaap:NotesPayableOtherPayablesMember2020-09-012020-09-30slca:derivative0001524741us-gaap:InterestRateSwapMember2020-07-310001524741us-gaap:InterestRateSwapMember2020-09-300001524741us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2020-09-300001524741slca:InterestRateSwapOneMemberus-gaap:CashFlowHedgingMemberus-gaap:OtherNoncurrentLiabilitiesMember2020-09-300001524741us-gaap:CashFlowHedgingMemberslca:InterestRateSwapTwoMemberus-gaap:OtherNoncurrentLiabilitiesMember2020-09-300001524741us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2019-12-310001524741slca:InterestRateSwapOneMemberus-gaap:CashFlowHedgingMemberus-gaap:OtherNoncurrentLiabilitiesMember2019-12-310001524741us-gaap:CashFlowHedgingMemberslca:InterestRateSwapTwoMemberus-gaap:OtherNoncurrentLiabilitiesMember2019-12-310001524741slca:InterestRateSwapOneMember2020-09-300001524741slca:InterestRateSwapOneMember2019-12-310001524741slca:InterestRateSwapTwoMember2020-09-300001524741slca:InterestRateSwapTwoMember2019-12-310001524741slca:InterestRateSwapTwoMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-09-300001524741slca:InterestRateSwapOneMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-09-300001524741slca:InterestRateSwapTwoMemberus-gaap:LondonInterbankOfferedRateLIBORMember2019-12-310001524741slca:InterestRateSwapOneMemberus-gaap:LondonInterbankOfferedRateLIBORMember2019-12-310001524741us-gaap:InterestRateSwapMember2020-01-012020-09-300001524741us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2018-12-310001524741us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2019-01-012019-09-300001524741us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2019-09-300001524741slca:IncentiveCompensationPlan2011Member2020-09-3000015247412019-01-012019-12-310001524741us-gaap:EmployeeStockOptionMember2019-09-300001524741us-gaap:EmployeeStockOptionMember2020-09-300001524741slca:RestrictedStockandRestrictedStockUnitsMember2019-12-310001524741slca:RestrictedStockandRestrictedStockUnitsMember2020-01-012020-09-300001524741slca:RestrictedStockandRestrictedStockUnitsMember2020-09-300001524741slca:RestrictedStockandRestrictedStockUnitsMember2020-07-012020-09-300001524741slca:RestrictedStockandRestrictedStockUnitsMember2019-07-012019-09-300001524741slca:RestrictedStockandRestrictedStockUnitsMember2019-01-012019-09-300001524741us-gaap:RestrictedStockMember2020-07-012020-09-300001524741us-gaap:RestrictedStockMember2020-01-012020-09-300001524741us-gaap:RestrictedStockMember2019-07-012019-09-300001524741us-gaap:RestrictedStockMember2019-01-012019-09-300001524741us-gaap:RestrictedStockMember2020-09-300001524741slca:RestrictedStockandRestrictedStockUnitsToBeSettledInCashMember2020-07-012020-09-300001524741slca:RestrictedStockandRestrictedStockUnitsToBeSettledInCashMember2020-01-012020-09-300001524741slca:RestrictedStockandRestrictedStockUnitsToBeSettledInCashMember2020-09-300001524741us-gaap:PerformanceSharesMember2019-12-310001524741us-gaap:PerformanceSharesMember2020-01-012020-09-300001524741us-gaap:PerformanceSharesMember2020-09-300001524741us-gaap:PerformanceSharesMember2020-07-012020-09-300001524741us-gaap:PerformanceSharesMember2019-07-012019-09-300001524741us-gaap:PerformanceSharesMember2019-01-012019-09-300001524741slca:PerformanceSharesToBeSettledInCashMember2020-01-012020-09-300001524741slca:PerformanceSharesToBeSettledInCashMember2020-09-3000015247412017-05-172017-05-17slca:claim0001524741us-gaap:PendingLitigationMember2020-09-300001524741us-gaap:OtherNoncurrentAssetsMember2020-09-300001524741us-gaap:OtherNoncurrentAssetsMember2019-12-310001524741us-gaap:OtherNoncurrentLiabilitiesMember2020-09-300001524741us-gaap:OtherNoncurrentLiabilitiesMember2019-12-310001524741us-gaap:SuretyBondMember2020-09-300001524741slca:ReclamationBondsMember2020-09-300001524741us-gaap:PensionPlansDefinedBenefitMember2020-07-012020-09-300001524741us-gaap:PensionPlansDefinedBenefitMember2019-07-012019-09-300001524741us-gaap:PensionPlansDefinedBenefitMember2020-01-012020-09-300001524741us-gaap:PensionPlansDefinedBenefitMember2019-01-012019-09-300001524741us-gaap:DefinedBenefitPostretirementHealthCoverageMember2020-07-012020-09-300001524741us-gaap:DefinedBenefitPostretirementHealthCoverageMember2019-07-012019-09-300001524741us-gaap:DefinedBenefitPostretirementHealthCoverageMember2020-01-012020-09-300001524741us-gaap:DefinedBenefitPostretirementHealthCoverageMember2019-01-012019-09-300001524741us-gaap:PensionPlansDefinedBenefitMember2020-09-300001524741us-gaap:DefinedBenefitPostretirementHealthCoverageMember2020-09-30slca:plan0001524741slca:EmployeeGroup1Member2020-01-012020-09-300001524741slca:EmployeeGroup2Member2020-01-012020-09-300001524741srt:MinimumMember2020-01-012020-09-300001524741srt:MaximumMember2020-01-012020-09-300001524741slca:COVID19PandemicMember2020-07-012020-09-300001524741slca:COVID19PandemicMember2020-01-012020-09-300001524741slca:CostofGoodsandServicesSoldExcludingDepreciationDepletionandAmortizationMember2020-07-012020-09-300001524741slca:CostofGoodsandServicesSoldExcludingDepreciationDepletionandAmortizationMember2019-07-012019-09-300001524741slca:CostofGoodsandServicesSoldExcludingDepreciationDepletionandAmortizationMember2020-01-012020-09-300001524741slca:CostofGoodsandServicesSoldExcludingDepreciationDepletionandAmortizationMember2019-01-012019-09-300001524741us-gaap:SellingGeneralAndAdministrativeExpensesMember2020-07-012020-09-300001524741us-gaap:SellingGeneralAndAdministrativeExpensesMember2019-07-012019-09-300001524741us-gaap:SellingGeneralAndAdministrativeExpensesMember2020-01-012020-09-300001524741us-gaap:SellingGeneralAndAdministrativeExpensesMember2019-01-012019-09-300001524741slca:COVID19PandemicMember2020-09-300001524741us-gaap:ProductMemberslca:OilAndGasProppantsMember2020-07-012020-09-300001524741slca:IndustrialAndSpecialtyProductsMemberus-gaap:ProductMember2020-07-012020-09-300001524741us-gaap:ProductMemberslca:OilAndGasProppantsMember2019-07-012019-09-300001524741slca:IndustrialAndSpecialtyProductsMemberus-gaap:ProductMember2019-07-012019-09-300001524741us-gaap:ServiceMemberslca:OilAndGasProppantsMember2020-07-012020-09-300001524741slca:IndustrialAndSpecialtyProductsMemberus-gaap:ServiceMember2020-07-012020-09-300001524741us-gaap:ServiceMemberslca:OilAndGasProppantsMember2019-07-012019-09-300001524741slca:IndustrialAndSpecialtyProductsMemberus-gaap:ServiceMember2019-07-012019-09-300001524741slca:OilAndGasProppantsMember2020-07-012020-09-300001524741slca:IndustrialAndSpecialtyProductsMember2020-07-012020-09-300001524741slca:OilAndGasProppantsMember2019-07-012019-09-300001524741slca:IndustrialAndSpecialtyProductsMember2019-07-012019-09-300001524741us-gaap:ProductMemberslca:OilAndGasProppantsMember2020-01-012020-09-300001524741slca:IndustrialAndSpecialtyProductsMemberus-gaap:ProductMember2020-01-012020-09-300001524741us-gaap:ProductMemberslca:OilAndGasProppantsMember2019-01-012019-09-300001524741slca:IndustrialAndSpecialtyProductsMemberus-gaap:ProductMember2019-01-012019-09-300001524741us-gaap:ServiceMemberslca:OilAndGasProppantsMember2020-01-012020-09-300001524741slca:IndustrialAndSpecialtyProductsMemberus-gaap:ServiceMember2020-01-012020-09-300001524741us-gaap:ServiceMemberslca:OilAndGasProppantsMember2019-01-012019-09-300001524741slca:IndustrialAndSpecialtyProductsMemberus-gaap:ServiceMember2019-01-012019-09-300001524741slca:OilAndGasProppantsMember2019-01-012019-09-300001524741slca:IndustrialAndSpecialtyProductsMember2019-01-012019-09-3000015247412020-10-012020-09-300001524741us-gaap:NonUsMember2020-07-012020-09-300001524741us-gaap:NonUsMember2019-07-012019-09-300001524741us-gaap:NonUsMember2020-01-012020-09-300001524741us-gaap:NonUsMember2019-01-012019-09-300001524741us-gaap:NonUsMember2020-09-300001524741us-gaap:NonUsMember2019-09-30slca:product

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended September 30, 2020
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number 001-35416
 slca-20200930_g1.jpg
U.S. Silica Holdings, Inc.
(Exact name of registrant as specified in its charter)
 
Delaware 26-3718801
(State or other jurisdiction of
Incorporation or Organization)
 (I.R.S. Employer
Identification No.)
24275 Katy Freeway, Suite 600
Katy, Texas 77494
(Address of Principal Executive Offices) (Zip Code)
(281) 258-2170
(Registrant’s telephone number, including area code)
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, $0.01 par value SLCA  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  þ    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  þ    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 þ  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 Act).    Yes    No  þ
As of October 28, 2020, 73,949,978 shares of common stock, par value $0.01 per share, of the registrant were outstanding.




U.S. SILICA HOLDINGS, INC.
FORM 10-Q
For the Quarter Ended September 30, 2020
TABLE OF CONTENTS
 
  Page
PART IFinancial Information (Unaudited):
PART IIOther Information:



PART I-FINANCIAL INFORMATION
ITEM 1.FINANCIAL STATEMENTS
U.S. SILICA HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; dollars in thousands)
September 30,
2020
December 31,
2019
ASSETS
Current Assets:
Cash and cash equivalents$134,923 $185,740 
Accounts receivable, net173,827 182,238 
Inventories, net104,711 124,432 
Prepaid expenses and other current assets44,280 16,155 
Income tax deposits 475 
Total current assets457,741 509,040 
Property, plant and mine development, net1,415,636 1,517,587 
Operating lease right-of-use assets41,265 53,098 
Goodwill185,649 273,524 
Intangible assets, net164,632 183,815 
Other assets11,724 16,170 
Total assets$2,276,647 $2,553,234 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable and accrued expenses$128,193 $248,237 
Current portion of operating lease liabilities30,887 53,587 
Current portion of long-term debt44,248 18,463 
Current portion of deferred revenue15,531 15,111 
Total current liabilities218,859 335,398 
Long-term debt, net1,208,969 1,213,985 
Deferred revenue28,811 35,523 
Liability for pension and other post-retirement benefits67,913 58,453 
Deferred income taxes, net40,334 38,585 
Operating lease liabilities76,827 117,964 
Other long-term liabilities 31,268 36,746 
Total liabilities1,672,981 1,836,654 
Commitments and Contingencies (Note O)
Stockholders’ Equity:
Preferred stock, $0.01 par value, 10,000,000 shares authorized; zero issued and outstanding at September 30, 2020 and December 31, 2019
  
Common stock, $0.01 par value, 500,000,000 shares authorized; 83,076,544 issued and 73,937,777 outstanding at September 30, 2020; 82,601,926 issued and 73,601,950 outstanding at December 31, 2019
827 823 
Additional paid-in capital1,197,464 1,185,116 
Retained deficit(400,061)(279,956)
Treasury stock, at cost, 9,138,767 and 8,999,976 shares at September 30, 2020 and December 31, 2019, respectively
(181,542)(180,912)
Accumulated other comprehensive loss(24,841)(19,854)
Total U.S. Silica Holdings, Inc. stockholders’ equity591,847 705,217 
Non-controlling interest11,819 11,363 
Total stockholders' equity603,666 716,580 
Total liabilities and stockholders’ equity$2,276,647 $2,553,234 
The accompanying notes are an integral part of these financial statements.
2


U.S. SILICA HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; dollars in thousands, except per share amounts)
 Three Months Ended 
 September 30,
Nine Months Ended 
 September 30,
 2020201920202019
Sales:
Product$159,637 $287,977 $541,998 $887,878 
Service16,835 73,837 76,610 247,540 
Total sales176,472 361,814 618,608 1,135,418 
Cost of sales (excluding depreciation, depletion and amortization):
Product93,747 226,797 373,373 687,186 
Service13,845 56,836 60,279 188,145 
Total cost of sales (excluding depreciation, depletion and amortization)107,592 283,633 433,652 875,331 
Operating expenses:
Selling, general and administrative27,216 40,208 96,394 113,523 
Depreciation, depletion and amortization40,069 47,126 115,604 136,625 
Goodwill and other asset impairments222 130 108,044 130 
Total operating expenses67,507 87,464 320,042 250,278 
Operating income (loss)1,373 (9,283)(135,086)9,809 
Other (expense) income:
Interest expense(19,274)(24,733)(63,730)(72,476)
Other (expense) income, net, including interest income(409)3,280 15,592 19,076 
Total other expense(19,683)(21,453)(48,138)(53,400)
Loss before income taxes(18,310)(30,736)(183,224)(43,591)
Income tax benefit4,094 7,671 63,785 7,259 
Net loss$(14,216)$(23,065)$(119,439)$(36,332)
Less: Net loss attributable to non-controlling interest(254)(28)(778)(121)
Net loss attributable to U.S. Silica Holdings, Inc. $(13,962)$(23,037)$(118,661)$(36,211)
Loss per share attributable to U.S. Silica Holdings, Inc.:
Basic$(0.19)$(0.31)$(1.61)$(0.49)
Diluted$(0.19)$(0.31)$(1.61)$(0.49)
Weighted average shares outstanding:
Basic73,688 73,328 73,601 73,223 
Diluted73,688 73,328 73,601 73,223 
Dividends declared per share$ $0.06 $0.02 $0.19 
The accompanying notes are an integral part of these financial statements.
3


U.S. SILICA HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited; dollars in thousands)
 Three Months Ended 
 September 30,
Nine Months Ended 
 September 30,
 2020201920202019
Net loss$(14,216)$(23,065)$(119,439)$(36,332)
Other comprehensive loss:
Unrealized gain (loss) on derivatives (net of tax of $231 and $156 for the three months ended September 30, 2020 and 2019, respectively, and $973 and $(803) for the nine months ended September 30, 2020 and 2019, respectively)
725 491 3,053 (2,520)
Foreign currency translation adjustment (net of tax of $202 and $(170) for the three months ended September 30, 2020 and 2019, respectively, and $212 and $(181) for the nine months ended September 30, 2020 and 2019, respectively)
631 (543)662 (577)
Pension and other post-retirement benefits liability adjustment (net of tax of $(1,048) and $(1,270) for the three months ended September 30, 2020 and 2019, respectively, and $(2,773) and $(2,327) for the nine months ended September 30, 2020 and 2019, respectively)
(3,287)(3,987)(8,702)(7,304)
Comprehensive loss$(16,147)$(27,104)$(124,426)$(46,733)
Less: Comprehensive loss attributable to non-controlling interest(254)(28)(778)(121)
Comprehensive loss attributable to U.S. Silica Holdings, Inc.$(15,893)$(27,076)$(123,648)$(46,612)
The accompanying notes are an integral part of these financial statements.
4


U.S. SILICA HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited; dollars in thousands, except per share amounts)
Common
Stock
Treasury
Stock
Additional
Paid-In
Capital
Retained Earnings
(Deficit)
Accumulated
Other
Comprehensive
Loss
Total U.S. Silica Holdings Inc., Stockholders’
Equity
Non-controlling InterestTotal
Stockholders’
Equity
Balance at June 30, 2020$826 $(181,413)$1,192,068 $(386,110)$(22,910)$602,461 $10,807 $613,268 
Net loss— — — (13,962)— (13,962)(254)(14,216)
Unrealized gain on derivatives— — — — 725 725 — 725 
Foreign currency translation adjustment— — — — 631 631 — 631 
Pension and post-retirement liability— — — — (3,287)(3,287)— (3,287)
Cash dividend declared— — — 11 — 11 — 11 
Contributions from non-controlling interest— — — — — — 1,266 1,266 
Common stock-based compensation plans activity:
Equity-based compensation— — 5,397 — — 5,397 — 5,397 
Tax payments related to shares withheld for vested restricted stock and stock units1 (129)(1)— — (129)— (129)
Balance at September 30, 2020$827 $(181,542)$1,197,464 $(400,061)$(24,841)$591,847 $11,819 $603,666 
Balance at June 30, 2019$821 $(180,775)$1,176,057 $45,224 $(21,382)$1,019,945 $12,520 $1,032,465 
Net loss— — — (23,037)— (23,037)(28)(23,065)
Unrealized gain on derivatives— — — — 491 491 — 491 
Foreign currency translation adjustment— — — — (543)(543)— (543)
Pension and post-retirement liability— — — — (3,987)(3,987)— (3,987)
Cash dividend declared ($0.0625 per share)
— — — (4,682)— (4,682)— (4,682)
Contributions from non-controlling interest— — — — — — 56 56 
Common stock-based compensation plans activity:
Equity-based compensation— — 3,722 — — 3,722 — 3,722 
Tax payments related to shares withheld for vested restricted stock and stock units— (58)— — — (58)— (58)
Balance at September 30, 2019$821 $(180,833)$1,179,779 $17,505 $(25,421)$991,851 $12,548 $1,004,399 





5



U.S. SILICA HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Continued)
(Unaudited; dollars in thousands, except per share amounts)
Common
Stock
Treasury
Stock
Additional
Paid-In
Capital
Retained
(Deficit) Earnings
Accumulated
Other
Comprehensive
Loss
Total U.S. Silica Holdings Inc., Stockholders’
Equity
Non-controlling InterestTotal
Stockholders’
Equity
Balance at December 31, 2019$823 $(180,912)$1,185,116 $(279,956)$(19,854)$705,217 $11,363 $716,580 
Net loss— — — (118,661)— (118,661)(778)(119,439)
Unrealized gain on derivatives— — — — 3,053 3,053 — 3,053 
Foreign currency translation adjustment— — — — 662 662 — 662 
Pension and post-retirement liability— — — — (8,702)(8,702)— (8,702)
Cash dividends— — — (1,444)— (1,444)— (1,444)
Contributions from non-controlling interest— — — — — — 1,234 1,234 
Common stock-based compensation plans activity:
Equity-based compensation— — 12,352 — — 12,352 — 12,352 
Tax payments related to shares withheld for vested restricted stock and stock units4 (630)(4)— — (630)— (630)
Balance at September 30, 2020$827 $(181,542)$1,197,464 $(400,061)$(24,841)$591,847 $11,819 $603,666 
Balance at December 31, 2018$818 $(178,215)$1,169,383 $67,854 $(15,020)$1,044,820 $7,484 $1,052,304 
Net loss— — — (36,211)— (36,211)(121)(36,332)
Unrealized loss on derivatives— — — — (2,520)(2,520)— (2,520)
Foreign currency translation adjustment— — — — (577)(577)— (577)
Pension and post-retirement liability— — — — (7,304)(7,304)— (7,304)
Cash dividend declared ($0.1875 per share)
— — — (14,138)— (14,138)— (14,138)
Contributions from non-controlling interest— — — — — — 5,185 5,185 
Common stock-based compensation plans activity:
Equity-based compensation— — 10,566 — — 10,566 — 10,566 
Proceeds from options exercised— 295 (167)— — 128 — 128 
Tax payments related to shares withheld for vested restricted stock and stock units3 (2,913)(3)— — (2,913)— (2,913)
Balance at September 30, 2019$821 $(180,833)$1,179,779 $17,505 $(25,421)$991,851 $12,548 $1,004,399 
6


U.S. SILICA HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; dollars in thousands)
 Nine Months Ended 
 September 30,
 20202019
Operating activities:
Net loss$(119,439)$(36,332)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation, depletion and amortization115,604 136,625 
Goodwill and other asset impairments108,044 130 
Gain on valuation change of royalty note payable (16,104)
Debt issuance amortization3,855 4,304 
Original issue discount amortization778 792 
Deferred income taxes(65,645)(8,489)
Deferred revenue(6,292)(32,379)
(Gain) loss on disposal of property, plant and equipment(1,785)58 
Gain on early extinguishment of debt (81)
Equity-based compensation12,352 10,566 
Provision for credit losses, net of recoveries1,381 3,082 
Gain on remeasurement of leases(24,415) 
Other(2,381)(13,197)
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable81,234 3,792 
Inventories15,218 (35)
Prepaid expenses and other current assets(25,384)8,460 
Income taxes804 (396)
Accounts payable and accrued expenses(102,449)39,456 
Short-term and long-term obligations-vendor incentives 4,021 
Liability for pension and other post-retirement benefits9,053 9,063 
Other noncurrent assets and liabilities(34,976)3,045 
Net cash (used in) provided by operating activities(34,443)116,381 
Investing activities:
Capital expenditures(27,751)(97,902)
Capitalized intellectual property costs(531)(3,493)
Proceeds from sale of property, plant and equipment2,749 1,543 
Net cash used in investing activities(25,533)(99,852)
Financing activities:
Dividends paid(6,169)(13,880)
Proceeds from options exercised 128 
Tax payments related to shares withheld for vested restricted stock and stock units(630)(2,913)
Proceeds from draw down of the Revolver25,000  
Payments on long-term debt(10,235)(20,207)
Contributions from non-controlling interest1,234 5,185 
Principal payments on finance lease obligations(41)(51)
Net cash provided by (used in) financing activities9,159 (31,738)
Net decrease in cash and cash equivalents(50,817)(15,209)
Cash and cash equivalents, beginning of period185,740 202,498 
Cash and cash equivalents, end of period$134,923 $187,289 



7


U.S. SILICA HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(Unaudited; dollars in thousands)
 Nine Months Ended 
 September 30,
 20202019
Supplemental cash flow information:
Cash paid (received) during the period for:
Interest$57,107 $66,429 
Taxes, net of refunds$(35,676)$(14,031)
Non-cash items:
Accrued capital expenditures$15,111 $27,357 
Net assets assumed in business acquisition$8,241 $ 
The accompanying notes are an integral part of these financial statements.

8


U.S. SILICA HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; dollars in thousands, except per share amounts)
NOTE A—ORGANIZATION AND BASIS OF PRESENTATION
Organization
U.S. Silica Holdings, Inc. (“Holdings,” and together with its subsidiaries “we,” “us” or the “Company”) is a performance materials company and one of the largest domestic producers of commercial silica used in the oil and gas industry and in a wide range of industrial applications. In addition, through our acquisition of EP Minerals, LLC ("EPM") and its affiliated companies in 2018, we are an industry leader in the production of industrial minerals, including diatomaceous earth, clay (calcium bentonite and calcium montmorillonite) and perlite. During our 120-year history, we have developed core competencies in mining, processing, logistics and materials science that enable us to produce and cost-effectively deliver products to customers across our end markets. Our operations are organized into two reportable segments based on end markets served: (1) Oil & Gas Proppants and (2) Industrial & Specialty Products. See Note U - Segment Reporting for more information on our reportable segments.
Basis of Presentation and Consolidation
The accompanying unaudited Condensed Consolidated Financial Statements for the quarter ended September 30, 2020 included in this Quarterly Report on Form 10-Q have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X issued by the U.S. Securities and Exchange Commission (“SEC”). They do not contain certain information included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019; therefore, the unaudited Condensed Consolidated Financial Statements should be read in conjunction with that Annual Report on Form 10-K. Operating results for the three-month period ended September 30, 2020 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2020. In the opinion of management, all adjustments necessary for a fair presentation have been included. Such adjustments are of a normal, recurring nature.
The unaudited Condensed Consolidated Financial Statements include the accounts of Holdings and its direct and indirect wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
We follow Financial Accounting Standards Board ("FASB") Accounting Standards Codification (“ASC”) guidance for identification and reporting of entities over which control is achieved through means other than voting rights. The guidance defines such entities as Variable Interest Entities (“VIEs”). We consolidate VIEs when we have variable interests and are the primary beneficiary. We continually evaluate our involvement with VIEs to determine when these criteria are met.
During the third quarter of 2018, we finalized a shareholders' agreement with unrelated parties to form a limited liability company with the purpose of constructing and operating a water pipeline to transport and sell water. In connection with the shareholders’ agreement, we acquired a 50% equity ownership in the limited liability company for $3.2 million, with a maximum initial capital contribution of $7.0 million, and a water rights intangible asset for $0.7 million. Based on our evaluation, we determined that this limited liability company is a VIE, of which we are the primary beneficiary, and therefore we are required to consolidate it. As of September 30, 2020, the VIE had total assets of $17.9 million and total liabilities of $0.1 million. We made $0.2 million in capital contributions during the nine months ended September 30, 2020.
Throughout this report we refer to (i) our unaudited Condensed Consolidated Balance Sheets as our “Balance Sheets,” (ii) our unaudited Condensed Consolidated Statements of Operations as our “Income Statements,” and (iii) our unaudited Condensed Consolidated Statements of Cash Flows as our “Cash Flows.”
NOTE B—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Use of Estimates and Assumptions
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The more significant areas requiring the use of management estimates and assumptions relate to the purchase price allocation for businesses acquired; mineral reserves that are the basis for future cash flow estimates utilized in impairment calculations and units-of-production amortization calculations; environmental, reclamation and closure obligations; estimates of recoverable minerals; estimates of allowance for credit losses; estimates of fair value for certain reporting units and asset
9


impairments (including impairments of goodwill, intangible assets and other long-lived assets); write-downs of inventory to net realizable value; equity-based compensation expense; post-employment, post-retirement and other employee benefit liabilities; valuation allowances for deferred tax assets; contingent considerations; reserves for contingencies and litigation and the fair value and accounting treatment of financial instruments, including derivative instruments. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results may differ significantly from these estimates under different assumptions or conditions.
New Accounting Pronouncements Recently Adopted
In August 2018, the FASB issued Accounting Standards Update ("ASU") 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The new guidance requires a customer in a cloud computing arrangement (i.e., hosting arrangement) that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. Capitalized implementation costs related to a hosting arrangement that is a service contract will be amortized over the term of the hosting arrangement, beginning when the module or component of the hosting arrangement is ready for its intended use. The update was effective for calendar-year public business entities in 2020. We adopted the new standard on January 1, 2020. The adoption of this ASU had no significant impact on our Condensed Consolidated Statements of Operations.
In November 2018, FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses. The amendments in this ASU clarified issues related to Topic 326. In Issue 1, the amendment in this ASU mitigates transition complexity by requiring that for nonpublic business entities the amendments in ASU 2016-13 are effective for fiscal years after December 15, 2021, including interim periods within those fiscal years. In Issue 2, the amendment clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. Impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. The ASU was effective for all entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. We adopted the new standard on January 1, 2020. The adoption of the new standard did not have a significant impact on our Condensed Consolidated Financial Statements as our current process for estimating expected credit losses for trade receivables aligned with the expected credit loss model. See Note F - Accounts Receivable for more information.
New Accounting Pronouncements Not Yet Adopted

In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20). The new guidance removes certain disclosure requirements for employers which sponsor defined benefit pension or other post-retirement plans, but also adds disclosure requirements for the weighted average interest crediting rates for cash balance plans and other plans with promised crediting rates and an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The amendments also clarify disclosure requirements for the projected benefit obligation (PBO) and accumulated benefit obligation (ABO) and fair value of plan assets for plans with PBOs and ABOs in excess of plan assets. Entities should apply the amendments on a retrospective basis for all periods presented. The amendments in this ASU are effective for public entities for fiscal years ending after December 15, 2020. We are currently evaluating the effect that the guidance will have on our disclosures.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this ASU simplify the accounting for income taxes by removing several exceptions and also simplify the accounting for income taxes by requiring that an entity recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax, requiring that an entity evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction, specifying that an entity is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements (however, an entity may elect to do so on an entity-by-entity basis) for a legal entity that is both not subject to tax and disregarded by the taxing authority, requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date, and making minor codification improvements for income taxes related to employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method. For public business entities, the amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. We are currently evaluating the effect that the guidance will have on our consolidated financial statements and related disclosures.
10


NOTE C—EARNINGS PER SHARE
Basic earnings per common share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per common share is computed similarly to basic earnings per common share except that the weighted average number of common shares outstanding is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued.
Diluted net earnings per share assumes the conversion of contingently convertible securities and stock options under the treasury stock method, if dilutive. Contingently convertible securities and stock options are excluded from the calculation of fully diluted earnings per share if they are anti-dilutive, including when we incur a loss from continuing operations. 
The following table shows the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2020 and 2019:
In thousands, except per share amounts
Three Months Ended 
 September 30,
Nine Months Ended 
 September 30,
 2020201920202019
Numerator:
Net loss attributable to U.S. Silica Holdings, Inc.$(13,962)$(23,037)$(118,661)$(36,211)
Denominator:
Weighted average shares outstanding73,688 73,328 73,601 73,223 
Diluted effect of stock awards    
Weighted average shares outstanding assuming dilution73,688 73,328 73,601 73,223 
Loss per share attributable to U.S. Silica Holdings, Inc.:
Basic loss per share$(0.19)$(0.31)$(1.61)$(0.49)
Diluted loss per share$(0.19)$(0.31)$(1.61)$(0.49)
Potentially dilutive shares (in thousands) of 348 and 91 for the three months ended September 30, 2020 and 2019, respectively, and 173 and 191 for the nine months ended September 30, 2020 and 2019, respectively, were excluded from the calculation of diluted weighted average shares outstanding and diluted earnings per share because we were in a net loss position. Certain stock options, restricted stock awards and performance share units were excluded from the computation of diluted earnings per share because their effect would have been anti-dilutive. Stock awards excluded from the calculation of diluted loss per common share were as follows:
In thousandsThree Months Ended 
 September 30,
Nine Months Ended 
 September 30,
 2020201920202019
Stock options excluded826 700 826 716 
Restricted stock and performance share unit awards excluded2,667 265 4,103 280 
NOTE D—CAPITAL STRUCTURE AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Common Stock
Our Amended and Restated Certificate of Incorporation authorizes up to 500,000,000 shares of common stock, par value of $0.01. Subject to the rights of holders of any series of preferred stock, all of the voting power of the stockholders of Holdings shall be vested in the holders of the common stock. There were 83,076,544 shares issued and 73,937,777 shares outstanding at September 30, 2020. There were 82,601,926 shares issued and 73,601,950 shares outstanding at December 31, 2019.
During the nine months ended September 30, 2020, our Board of Directors declared quarterly cash dividends as follows:
Dividends per Common ShareDeclaration DateRecord Date Payable Date
$0.02 February 10, 2020March 13, 2020April 3, 2020
11


All dividends were paid as scheduled.
Any determination to pay dividends and other distributions in cash, stock, or property by Holdings in the future will be at the discretion of our Board of Directors and will be dependent on then-existing conditions, including our business and financial condition, results of operations, liquidity, capital requirements, contractual restrictions including restrictive covenants contained in our debt agreements, and other factors. Additionally, because we are a holding company, our ability to pay dividends on our common stock may be limited by restrictions on the ability of our subsidiaries to pay dividends or make distributions to us, including restrictions under the terms of the agreements governing our indebtedness. During May of 2020, our Board of Directors determined that it was not in the best interest of our shareholders to issue a dividend for the second quarter of 2020 and they subsequently decided not to issue a dividend for the third quarter of 2020. The Board of Directors will make determinations regarding future dividends on a quarterly basis using the criteria described above.
Preferred Stock
Our Amended and Restated Certificate of Incorporation authorizes our Board of Directors to issue up to 10,000,000 shares, in the aggregate, of preferred stock, par value of $0.01 in one or more series, to fix the powers, preferences and other rights of such series, and any qualifications, limitations or restrictions thereof, including the dividend rate, conversion rights, voting rights, redemption rights and liquidation preference, and to fix the number of shares to be included in any such series, without any further vote or action by our stockholders.
There were no shares of preferred stock issued or outstanding at September 30, 2020 or December 31, 2019. At present, we have no plans to issue any preferred stock.
Share Repurchase Program
In May 2018, our Board of Directors authorized the repurchase of up to $200 million of our common stock from time to time on the open market or in privately negotiated transactions. Stock repurchases, if any, will be funded using our available liquidity. The timing and amount of stock repurchases will depend on a variety of factors, including the market conditions as well as corporate and regulatory considerations. As of September 30, 2020, we have repurchased a total of 5,036,139 shares of our common stock at an average price of $14.59 and have $126.5 million of remaining availability under this program. We did not repurchase any shares during the nine months ended September 30, 2020.
Accumulated Other Comprehensive Loss
Accumulated other comprehensive loss consists of fair value adjustments associated with cash flow hedges, accumulated adjustments for net experience losses and prior service costs related to employee benefit plans and foreign currency translation adjustments, net of tax. The following table presents the changes in accumulated other comprehensive loss by component (in thousands) during the nine months ended September 30, 2020:
 For the Nine Months Ended September 30, 2020
 Unrealized (loss) gain on cash flow hedgesForeign currency translation adjustmentsPension and other post-retirement benefits liabilityTotal
Beginning Balance$(3,053)$(808)$(15,993)$(19,854)
Other comprehensive gain (loss) before reclassifications3,053 662 (10,498)(6,783)
Amounts reclassified from accumulated other comprehensive loss  1,796 1,796 
Ending Balance$ $(146)$(24,695)$(24,841)
Amounts reclassified from accumulated other comprehensive loss related to cash flow hedges are included in interest expense in our Income Statements and amounts reclassified related to pension and other post-retirement benefits are included in the computation of net periodic benefit costs at their pre-tax amounts.

NOTE E—BUSINESS COMBINATIONS

    During the first quarter of 2020, we settled multiple intellectual property and contractual lawsuits involving our SandBox Logistics unit and Arrows Up, LLC.  As part of the settlement, SandBox Logistics took control of Arrows Up's existing business, including all equipment and sand logistics contracts, while also receiving a cash payment.

12


    We have accounted for the acquisition of Arrows Up, LLC under the acquisition method of accounting in accordance with ASC 805, Business Combinations. Estimates of fair value included in the Condensed Consolidated Financial Statements represent our best estimates and valuations. In accordance with the acquisition method of accounting, the fair values are subject to adjustment until we complete our analysis, within a period of time not to exceed one year after the date of acquisition, or March 7, 2021. This business combination resulted in a bargain purchase pursuant to ASC 805-30-25 because no consideration was paid for the fair value of assets acquired and liabilities assumed. The fair value of assets acquired, which included cash, accounts receivable, inventories, lease right-of-use assets, and property plant, and equipment, was $19.9 million. The fair value of liabilities assumed, which included lease liabilities and other long-term liabilities, was $2.5 million. A gain on bargain purchase of $17.4 million was recorded in "Other income, net, including interest income" in the Condensed Consolidated Statement of Operations.

In the three months ended September 30, 2020, we recorded a $0.1 million increase to accounts receivable. In the nine months ended September 30, 2020, we recorded a $3.3 million decrease in inventory, a $1.0 million increase to accounts receivable, and a $0.1 million decrease to property, plant and equipment. The total measurement period adjustments during the nine months ended September 30, 2020 of $2.4 million were recorded as a net decrease to the initial gain on bargain purchase and recorded in "Other (expense) income, net, including interest income" in the Condensed Consolidated Statement of Operations.
NOTE F—ACCOUNTS RECEIVABLE
Accounts receivable are recorded when billed or accrued and represent claims against third parties that will be settled in cash. The carrying value of our accounts receivable, net of the allowance for credit losses, represents their estimated net realizable value. At September 30, 2020 and December 31, 2019, accounts receivable (in thousands) consisted of the following:
September 30,
2020
December 31,
2019
Trade receivables$133,127 $178,182 
Less: Allowance for credit losses(6,677)(8,984)
Net trade receivables126,450 169,198 
Other receivables(1)
47,377 13,040 
Total accounts receivable$173,827 $182,238 
(1)
At September 30, 2020, other receivables included $42.3 million of refunds related to NOL carryback claims filed for various tax years in accordance with certain provisions of the CARES Act. At December 31, 2019, other receivables included $8.1 million of refundable alternative minimum tax credits.
We classify our trade receivables into the following portfolio segments: Oil & Gas Proppants and Industrial & Specialty Products, which also aligns with our reporting segments. We estimate the allowance for credit losses based on historical collection trends, the age of outstanding receivables, risks attributable to specific customers, such as credit history, bankruptcy or other going concern issues, and current economic and industry conditions. If events or circumstances indicate that specific receivable balances may be impaired, further consideration is given to the collectability of those balances and the allowance is adjusted accordingly. Past due balances are written off when we have exhausted our internal and external collection efforts and have been unsuccessful in collecting the amount due.
13


The following table reflects the change of the allowance for credit losses (in thousands) for the nine months ended September 30, 2020, disaggregated by portfolio segments:
Oil & Gas ProppantsIndustrial & Specialty ProductsTotal
Beginning balance, December 31, 2019$7,640 $1,344 $8,984 
Provision for credit losses1,340 41 1,381 
Write-offs(3,328)(360)(3,688)
Ending balance, September 30, 2020$5,652 $1,025 $6,677 
Our ten largest customers accounted for 23% and 32% of total sales for the three and nine months ended September 30, 2020, respectively, and 43% and 42% for the three and nine months ended September 30, 2019, respectively. No customers accounted for 10% or more of our total sales for the three or nine months ended September 30, 2020. Sales to one of our customers accounted for 11% and 12% for the three and nine months ended September 30, 2019, respectively. No other customers accounted for 10% or more of our total sales during the same period. At September 30, 2020, one of our customer's accounts receivable represented 15% of our total trade accounts receivable. At December 31, 2019, the same customer's accounts receivable represented 12% of our total trade accounts receivable. No other customers accounted for 10% or more of our total trade accounts receivable during the same period.
NOTE G—INVENTORIES
At September 30, 2020 and December 31, 2019, inventories (in thousands) consisted of the following:
September 30, 2020December 31, 2019
Supplies$43,331 $47,277 
Raw materials and work in process34,544 41,167 
Finished goods26,836 35,988 
Total inventories$104,711 $124,432 

    During 2020, there was an unprecedented drop in global demand combined with the breakdown of the Organization of the Petroleum Exporting Countries and other oil producing nations ("OPEC+") agreement to restrict oil production that led to one of the largest annual crude oil inventory builds in history. This led to sharp reductions in global crude oil prices. Containment measures and other economic, travel, and business disruptions caused by COVID-19 also affected refinery activity and future demand for crude oil, and consequently, the services and products of our Oil & Gas Proppants Segment. As a result of these events, we recorded impairment charges of zero and $6.7 million for the three and nine months ended September 30, 2020, respectively, primarily related to unused inventory at idled plants. These charges related to the Oil & Gas Proppants Segment and were recorded in "Goodwill and other asset impairments" in the Condensed Consolidated Statements of Operations.
14


NOTE H—PROPERTY, PLANT AND MINE DEVELOPMENT
At September 30, 2020 and December 31, 2019, property, plant and mine development (in thousands) consisted of the following:
September 30,
2020
December 31,
2019
Mining property and mine development$788,710 $794,899 
Asset retirement cost18,011 18,260 
Land55,281 57,082 
Land improvements75,878 73,203 
Buildings69,492 69,112 
Machinery and equipment1,179,002 1,152,898 
Furniture and fixtures4,071 4,068 
Construction-in-progress34,034 54,675 
2,224,479 2,224,197 
Accumulated depreciation, depletion, amortization and impairment charges(808,843)(706,610)
Total property, plant and mine development, net$1,415,636 $