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Leases (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of Partnership's Leases, Excluding Leases for Mineral Reserves

The following tables present information about the Partnership’s leases, excluding leases for mineral reserves (which are excluded in accordance with ASC 842-10-15-1b):

Leases	Balance Sheet Location	March 31, 2019
		(In Thousands)
Assets
Operating lease right-of-use assets	Other assets	$	6,186
Operating lease right-of-use assets - affiliate	Other assets		1,891
Finance lease right-of-use assets ⁽¹⁾	Property, plant, equipment, and development, net		54,655
Total lease right-of-use assets		$	62,732

Liabilities
Current:
Operating lease liabilities	Accrued expenses and other current liabilities	$	3,144
Operating lease liabilities - affiliate	Accrued expenses and other current liabilities		174
Finance lease liabilities	Current portion of long-term debt and finance lease obligations		10,932
Non-current:
Operating lease liabilities	Other long-term liabilities		3,042
Operating lease liabilities - affiliate	Other long-term liabilities		1,717
Finance lease liabilities	Long-term debt and finance lease obligations		—
Total lease liabilities		$	19,009

(1)	Finance lease right-of-use assets are recorded net of accumulated amortization of $72.4 million as of March 31, 2019.

Lease Cost	Statement of Operations Location	Three Months Ended March 31, 2019
		(In Thousands)
Operating lease cost ⁽²⁾	Cost of coal produced (excluding depreciation, depletion and amortization); Transportation; Selling, general and administrative	$	1,144
Operating lease cost - affiliate	Cost of coal produced (excluding depreciation, depletion and amortization); Transportation		82
Variable operating lease cost ⁽¹⁾	Cost of coal produced (excluding depreciation, depletion and amortization)		2,600
Finance lease cost:
Amortization of right-of-use assets	Depreciation, depletion and amortization		3,602
Interest on lease liabilities	Interest expense, net		176
Total lease cost		$	7,604

(1)	Variable operating lease cost consists primarily of contingent rental payments related to the rail loadout facility at Williamson Energy. We pay contingent rental fees, net of a fixed per ton amount received for maintaining the facility, on each ton of coal passed through the rail loadout facility.

(2)	Includes any short-term lease cost and sublease income, which are not material.

Lease Terms and Discount Rates	March 31, 2019

Weighted-average remaining lease term (years)
Operating leases		5.6
Operating leases - affiliate		19.6
Finance leases		0.7
Weighted-average discount rate
Operating leases		7.00	%
Operating leases - affiliate		7.00	%
Finance leases		5.81	%

Other Information	Three Months Ended March 31, 2019
	(In Thousands)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,058
Operating cash flows from operating leases - affiliate		56
Operating cash flows from finance leases		184
Financing cash flows from finance leases		2,974
Lease assets obtained in exchange for new operating lease liabilities		1,370

Schedule of Future Minimum Lease Payments

The following presents future minimum lease payments, by year, with initial terms greater than one year, as of March 31, 2019:

	Operating Leases			Operating Leases – Affiliate			Finance Leases			Total
	(In Thousands)
2019 (remaining)	$	2,433		$	118		$	11,218		$	13,769
2020		1,851			175			—			2,026
2021		1,077			175			—			1,252
2022		203			176			—			379
2023		203			176			—			379
Thereafter		1,739			2,676			—			4,415
Total lease payments		7,506			3,496			11,218			22,220
Less: interest		(1,320	)		(1,605	)		(286	)		(3,211	)
Total lease liabilities	$	6,186		$	1,891		$	10,932		$	19,009

Schedule of Maturities Expected Principal Payments

The following summarizes the maturities of expected principal payments, based on current mine plans, on the Partnership’s sale-leaseback financing arrangements and the associated accrued interest at March 31, 2019:

	Sale-Leaseback Financing Arrangements		Accrued Interest
	(In Thousands)
2019 (remaining)	$	5,350	$	698
2020		6,417		—
2021		7,585		—
2022		9,009		—
2023		9,933		—
Thereafter		156,489		—
Total	$	194,783	$	698

Schedule of Minimum Lease Payments

Minimum payments from March 31, 2019 through 2023 are as follows:

	2019 (remaining)			2020			2021			2022			2023
Minimum lease payments	$	15,750		$	21,000		$	21,000		$	21,000		$	21,000