Mine development costs totaled $4.4 million in the first nine months of 2013,
the majority of which were incurred in the first half of the year, and were part
of a $14.5 million pit in Utah that was started in 2012. Extraction of ore from
this pit began late in the second quarter of this year.
Intangible assets of $25.9 million at the end of the third quarter 2013 were
$3.0 million lower than the balance of $28.9 million at year-end 2012. The
decrease was due to current period amortization net of deferred financing costs
incurred in support of the new credit facilities.
Other liabilities and accrued items were $50.8 million at the end of the third
quarter 2013, a decrease of $5.0 million from year-end 2012. The payment of the
2012 annual incentive compensation to employees in the first quarter 2013 net of
the expense for the first nine months of 2013 was the main cause of the decline.
Accruals for utilities, professional services, workers' compensation and other
items also declined due to business levels, seasonal factors or other causes.
Unearned revenue, which is a liability representing products invoiced to
customers but not yet shipped, was $0.5 million at the end of the third quarter
2013 compared to $1.5 million as of December 31, 2012. Revenue and the
associated margin will be recognized for these transactions when the goods ship,
title passes and all other revenue recognition criteria are met. Invoicing in
advance of the shipment, which is only done in certain circumstances, allows us
to collect cash sooner than we would otherwise.
Other long-term liabilities totaled $16.5 million at the end of the third
quarter 2013 compared to $16.2 million at year-end 2012, as increases in
long-term compensation plan accruals and other items were partially offset by
the amortization of capital lease balances.
Unearned income of $57.7 million at the end of the third quarter 2013 was $3.5
million lower than the balance of $61.2 million as of year-end 2012. This
balance represents the unamortized reimbursements from the government for
equipment purchases for the new beryllium facility made under the Title III
program. The $3.5 million reduction to unearned income in
the first nine months of 2013 was recorded against cost of sales on the
Consolidated Statement of Income and offset the depreciation expense recorded on
the underlying equipment. Depreciation and amortization expense on the
Consolidated Statement of Cash Flows is depicted net of the corresponding
reduction in unearned income. See Note I to the Consolidated Financial
The retirement and post-employment benefit liability was $122.0 million at the
end of the third quarter 2013 compared to $126.0 million as of December 31,
2012. This balance represents the liability under our domestic defined benefit
pension plan, the retiree medical plan and other retirement plans and
The liability for the domestic defined benefit pension plan declined $4.7
million in the first nine months of 2013 as a result of contributions to the
plan totaling $9.2 million and an adjustment to other comprehensive income of
$5.4 million offset in part by an expense of $9.9 million for the first nine
months of the year.