During the
first
quarter of
2026,
management
idled operations
at the Logan mine
complex
within the Company’s
U.S.
Operations
in
response
to
sustained
weakness
in
the
U.S.
domestic
Met
coal
markets.
The
idling
represented
a
triggering
event
under
Accounting
Standards
Codification,
or
ASC,
360
–
Equipment
,
requiring
the
Company
to
assess
the
recoverability
of
the
relevant
asset
groups.
The Company
determined
that the
estimated
undiscounted
pre-tax future
cash flows
of
the Logan
asset group
did not
exceed
its’
carrying
value.
Accordingly,
the
Company
measured
the
fair
value
of
the
asset
group
and
recorded
an
159.8
million
against
long-lived
assets,
including property,
plant and
equipment,
to write
down the
carrying value
of
the asset
group
to
its
estimated
fair value.
During the three months
ended June
30, 2026, the Company committed
to a plan to sell the Logan mining assets
and determined
that all the
criteria to classify
assets and liabilities
as held
for sale were
met. Upon
classification
as held for
sale, the Company
performed
an impairment assessment
in accordance
with ASC 360-10-35-43
and
determined
that the carrying amount of
Logan,
which includes its assets
and associated liabilities,
or the Disposal
Group,
exceeded
its
estimated
fair value,
less
costs
to
sell. Accordingly,
the Company
recorded
an
additional
17.7
million
against
the carrying
value of
the Disposal
Group.