COMMITMENTS AND CONTINGENCIES |
9 Months Ended |
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Sep. 30, 2019 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| COMMITMENTS AND CONTINGENCIES |
COMMITMENTS AND CONTINGENCIES
Guarantees
On October 24, 2010, we executed a limited guarantee in favor of the Saudi Industrial Development Fund ("SIDF") whereby we agreed to guaranty up to 41% of the SIDF loan (the "Loan") to AMAK in the principal amount of 330.0 million Saudi Riyals (US$88.0 million). The term of the Loan was originally through June 2019. As a condition of the Loan, SIDF required all stockholders of AMAK to execute personal or corporate guarantees; as a result, our guarantee is for approximately 135.3 million Saudi Riyals (US$36.1 million). The Loan was necessary to continue construction of the AMAK facilities and provide working capital needs. We received no consideration in connection with extending the guarantee and did so to maintain and enhance the value of our investment. On July 8, 2018, the Loan was amended to adjust the repayment schedule and extend the repayment terms through April 2024. Under the new payment terms the current amount due in 2019 is 30.0 million Saudi Riyals (US$8.0 million). The total amount outstanding on the Loan at September 30, 2019, was 290.0 million Saudi Riyals (US$77.3 million). See additional discussion including the release of the guarantee in connection with the AMAK sale in Note 19.
Operating Lease Commitments
See Note 8 for discussion on lease commitments.
Litigation
The Company is periodically named in legal actions arising from normal business activities. We evaluate the merits of these actions and, if we determine that an unfavorable outcome is probable and can be reasonably estimated, we will establish the necessary reserves. We are not currently involved in legal proceedings that could reasonably be expected to have a material adverse effect on our business, prospects, financial condition or results of operations. We may become involved in material legal proceedings in the future.
Supplier Agreements
From time to time, we may incur shortfall fees due to feedstock purchases being below the minimum amounts prescribed by our agreements with our suppliers. Shortfall fee expenses for the three months ended September 30, 2019, and 2018, were $0.3 million and $0.2 million, respectively, and for the nine months ended September 30, 2019, and 2018, were $0.3 million and $0.7 million, respectively.
Environmental Remediation
Amounts charged to expense for various activities related to environmental monitoring, compliance, and improvements were approximately $0.2 million and $0.1 million for the three months ended September 30, 2019, and 2018 and for the nine months ended September 30, 2019, and 2018, were $0.7 million and $0.4 million, respectively.
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