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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, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number 001-35416
 slca-20220930_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 21, 2022, 75,708,882 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, 2022
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 except share information)
September 30,
2022
December 31,
2021
ASSETS
Current Assets:
Cash and cash equivalents$267,133 $239,425 
Accounts receivable, net236,231 202,759 
Inventories, net143,198 115,713 
Prepaid expenses and other current assets24,658 18,018 
Total current assets671,220 575,915 
Property, plant and mine development, net1,190,957 1,258,646 
Lease right-of-use assets47,425 42,241 
Goodwill185,649 185,649 
Intangible assets, net143,105 150,054 
Other assets9,239 7,095 
Total assets$2,247,595 $2,219,600 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable and accrued expenses$222,665 $167,670 
Current portion of operating lease liabilities19,255 14,469 
Current portion of long-term debt22,770 18,285 
Current portion of deferred revenue14,095 4,247 
Income tax payable1,660 1,200 
Total current liabilities280,445 205,871 
Long-term debt, net1,089,713 1,193,135 
Deferred revenue17,124 16,494 
Liability for pension and other post-retirement benefits34,789 32,935 
Deferred income taxes, net53,135 44,774 
Operating lease liabilities69,269 75,130 
Other long-term liabilities 34,622 37,178 
Total liabilities1,579,097 1,605,517 
Commitments and Contingencies (Note M)
Stockholders’ Equity:
Preferred stock, $0.01 par value, 10,000,000 shares authorized; zero issued and outstanding at September 30, 2022 and December 31, 2021
  
Common stock, $0.01 par value, 500,000,000 shares authorized; 85,465,344 issued and 75,616,067 outstanding at September 30, 2022; 84,746,194 issued and 75,033,352 outstanding at December 31, 2021
853 845 
Additional paid-in capital1,230,293 1,218,575 
Retained deficit(382,674)(429,260)
Treasury stock, at cost, 9,849,277 and 9,712,842 shares at September 30, 2022 and December 31, 2021, respectively
(185,657)(186,294)
Accumulated other comprehensive (loss) income(2,816)349 
Total U.S. Silica Holdings, Inc. stockholders’ equity659,999 604,215 
Non-controlling interest8,499 9,868 
Total stockholders' equity668,498 614,083 
Total liabilities and stockholders’ equity$2,247,595 $2,219,600 
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,
 2022202120222021
Sales:
Product$309,831 $216,134 $833,390 $675,611 
Service108,982 51,164 278,823 143,404 
Total sales418,813 267,298 1,112,213 819,015 
Cost of sales (excluding depreciation, depletion and amortization):
Product217,424 168,212 590,776 464,971 
Service74,096 39,236 196,509 112,421 
Total cost of sales (excluding depreciation, depletion and amortization)291,520 207,448 787,285 577,392 
Operating expenses:
Selling, general and administrative33,933 30,956 108,860 84,689 
Depreciation, depletion and amortization34,500 39,981 106,964 122,494 
Goodwill and other asset impairments 11  49 
Total operating expenses68,433 70,948 215,824 207,232 
Operating income (loss)58,860 (11,098)109,104 34,391 
Other (expense) income:
Interest expense(20,174)(17,796)(54,777)(53,425)
Other income, net, including interest income3,576 2,580 7,206 4,999 
Total other expense(16,598)(15,216)(47,571)(48,426)
Income (loss) before income taxes42,262 (26,314)61,533 (14,035)
Income tax (expense) benefit(10,259)6,140 (15,209)(1,172)
Net income (loss)$32,003 $(20,174)$46,324 $(15,207)
Less: Net loss attributable to non-controlling interest(68)(179)(262)(462)
Net income (loss) attributable to U.S. Silica Holdings, Inc. $32,071 $(19,995)$46,586 $(14,745)
Earnings (loss) per share attributable to U.S. Silica Holdings, Inc.:
Basic$0.42 $(0.27)$0.62 $(0.20)
Diluted$0.41 $(0.27)$0.60 $(0.20)
Weighted average shares outstanding:
Basic75,587 74,523 75,446 74,267 
Diluted77,770 74,523 77,580 74,267 
Dividends declared per share$ $ $ $ 
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,
 2022202120222021
Net income (loss)$32,003 $(20,174)$46,324 $(15,207)
Other comprehensive income:
Foreign currency translation adjustment (net of tax of $(89) and $(260) for the three months ended September 30, 2022 and 2021, respectively, and $(437) and $(224) for the nine months ended September 30, 2022 and 2021, respectively).
(272)(251)(1,364)(707)
Pension and other post-retirement benefits liability adjustment (net of tax of $(721) and $1,491 for the three months ended September 30, 2022 and 2021, respectively, and $(574) and $2,110 for the nine months ended September 30, 2022 and 2021, respectively).
(2,263)(5,472)(1,801)6,624 
Comprehensive income (loss)$29,468 $(25,897)$43,159 $(9,290)
Less: Comprehensive loss attributable to non-controlling interest(68)(179)(262)(462)
Comprehensive income (loss) attributable to U.S. Silica Holdings, Inc.$29,536 $(25,718)$43,421 $(8,828)
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
Deficit
Accumulated
Other
Comprehensive (Loss) Income
Total U.S. Silica Holdings Inc., Stockholders’
Equity
Non-controlling InterestTotal
Stockholders’
Equity
Balance at June 30, 2022$852 $(186,826)$1,226,484 $(414,745)$(281)$625,484 $8,950 $634,434 
Net income (loss)— — — 32,071 — 32,071 (68)32,003 
Foreign currency translation adjustment— — — — (272)(272)— (272)
Pension and post-retirement liability— — — — (2,263)(2,263)— (2,263)
Distributions to non-controlling interest— — — — — — (383)(383)
Common stock-based compensation plans activity:
Equity-based compensation— — 4,743 — — 4,743 — 4,743 
Proceeds from options exercised— 1,356 (933)— — 423 — 423 
Tax payments related to shares withheld for vested restricted stock and stock units1 (187)(1)— — (187)— (187)
Balance at September 30, 2022$853 $(185,657)$1,230,293 $(382,674)$(2,816)$659,999 $8,499 $668,498 
Balance at June 30, 2021$837 $(183,420)$1,207,670 $(390,238)$3,161 $638,010 $10,729 $648,739 
Net loss— — — (19,995)— (19,995)(179)(20,174)
Foreign currency translation adjustment— — — — (251)(251)— (251)
Pension and post-retirement liability— — — — (5,472)(5,472)— (5,472)
Distributions to non-controlling interest— — — — — — (266)(266)
Common stock-based compensation plans activity:
Equity-based compensation— — 5,495 — — 5,495 — 5,495 
Tax payments related to shares withheld for vested restricted stock and stock units— (63)— — — (63)— (63)
Balance at September 30, 2021$837 $(183,483)$1,213,165 $(410,233)$(2,562)$617,724 $10,284 $628,008 

The accompanying notes are an integral part of these financial statements.



5


Common
Stock
Treasury
Stock
Additional
Paid-In
Capital
Retained
Deficit
Accumulated
Other
Comprehensive
Income (Loss)
Total U.S. Silica Holdings Inc., Stockholders’
Equity
Non-controlling InterestTotal
Stockholders’
Equity
Balance at December 31, 2021$845 $(186,294)$1,218,575 $(429,260)$349 $604,215 $9,868 $614,083 
Net income (loss)— — — 46,586 — 46,586 (262)46,324 
Foreign currency translation adjustment— — — — (1,364)(1,364)— (1,364)
Pension and post-retirement liability— — — — (1,801)(1,801)— (1,801)
Distributions to non-controlling interest— — — — — — (1,107)(1,107)
Common stock-based compensation plans activity:
Equity-based compensation— — 13,821 — — 13,821 — 13,821 
Proceeds from options exercised— 3,051 (2,095)— — 956 — 956 
Tax payments related to shares withheld for vested restricted stock and stock units8 (2,414)(8)— — (2,414)— (2,414)
Balance at September 30, 2022$853 $(185,657)$1,230,293 $(382,674)$(2,816)$659,999 $8,499 $668,498 
Balance at December 31, 2020$827 $(181,615)$1,200,023 $(395,496)$(8,479)$615,260 $11,531 $626,791 
Net loss— — — (14,745)— (14,745)(462)(15,207)
Foreign currency translation adjustment— — — — (707)(707)— (707)
Pension and post-retirement liability— — — — 6,624 6,624 — 6,624 
Cash dividends— — — 8 — 8 — 8 
Distributions to non-controlling interest— — — — — — (785)(785)
Common stock-based compensation plans activity:
Equity-based compensation— — 13,391 — — 13,391 — 13,391 
Proceeds from options exercised— 344 (239)— — 105 — 105 
Tax payments related to shares withheld for vested restricted stock and stock units10 (2,212)(10)— — (2,212)— (2,212)
Balance at September 30, 2021$837 $(183,483)$1,213,165 $(410,233)$(2,562)$617,724 $10,284 $628,008 
6


U.S. SILICA HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; dollars in thousands)
 Nine Months Ended 
 September 30,
 20222021
Operating activities:
Net income (loss)$46,324 $(15,207)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation, depletion and amortization106,964 122,494 
Goodwill and other asset impairments 49 
Debt issuance amortization3,696 3,801 
Original issue discount amortization749 771 
Deferred income taxes9,789 (3,239)
Deferred revenue(9,461)(14,264)
Gain on disposal of property, plant and equipment(557)(406)
Equity-based compensation13,821 13,391 
Allowance for credit losses, net of recoveries378 (948)
Other5,067 23,696 
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable(35,309)31,216 
Inventories(26,918)(11,721)
Prepaid expenses and other current assets1,801 1,185 
Income taxes460 1,789 
Accounts payable and accrued expenses72,678 36,824 
Operating lease liabilities(17,643)(19,728)
Liability for pension and other post-retirement benefits1,854 (11,119)
Other noncurrent assets and liabilities(4,233)(1,802)
Net cash provided by operating activities169,460 156,782 
Investing activities:
Capital expenditures(28,691)(15,394)
Capitalized intellectual property costs(343)(210)
Proceeds from sale of property, plant and equipment2,171 644 
Net cash used in investing activities(26,863)(14,960)
Financing activities:
Dividends paid(163)(41)
Proceeds from options exercised956 105 
Tax payments related to shares withheld for vested restricted stock and stock units(2,414)(2,212)
Payments on Revolver (25,000)
Payments on short-term debt(4,424)(4,184)
Payments on long-term debt(106,738)(9,600)
Distributions to non-controlling interest(1,107)(785)
Principal payments on finance lease obligations(999)(438)
Net cash used in financing activities(114,889)(42,155)
Net increase in cash and cash equivalents27,708 99,667 
Cash and cash equivalents, beginning of period239,425 150,920 
Cash and cash equivalents, end of period$267,133 $250,587 



7


U.S. SILICA HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(Unaudited; dollars in thousands)
 Nine Months Ended 
 September 30,
 20222021
Supplemental cash flow information:
Cash paid (received) during the period for:
Interest$49,913 $48,538 
Taxes, net of refunds$(16,152)$(13,324)
Non-cash items:
Accrued capital expenditures$3,724 $2,592 
Net assets assumed in business acquisition$ $68 
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 global performance materials company and a leading producer of commercial silica used in the oil and gas industry and in a wide range of industrial applications. In addition, through our subsidiary EP Minerals, LLC ("EPM"), we are an industry leader in the production of industrial minerals, including diatomaceous earth, clay (calcium bentonite and calcium montmorillonite) and perlite. During our 122-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 S - 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, 2022 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, 2021; therefore, the unaudited Condensed Consolidated Financial Statements should be read in conjunction with that Annual Report on Form 10-K. Operating results for the nine-month period ended September 30, 2022 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2022. 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.
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 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 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. 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

None.
9


New Accounting Pronouncements Not Yet Adopted
In March 2020, the FASB issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting followed by ASU 2021-01, Reference Rate Reform (Topic 848): Scope, issued in January 2021 to provide clarifying guidance regarding the scope of Topic 848. ASU 2020-04 was issued to provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. Generally, the guidance is to be applied as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. ASU 2020-04 and ASU 2021-01 are effective for all entities through December 31, 2022. In April 2022, the FASB proposed to extend the effective date through December 31, 2024; however, a final ruling has not been issued. As of September 30, 2022, we have not elected to use the optional guidance and continue to evaluate the options provided by ASU 2020-04 and ASU 2021-01. See Note I - Debt for discussion of the use of the adjusted LIBOR rate in connection with borrowings under our senior secured revolving credit facility.


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:
In thousands, except per share amounts
Three Months Ended 
 September 30,
Nine Months Ended 
 September 30,
 2022202120222021
Numerator:
Net income (loss) attributable to U.S. Silica Holdings, Inc.$32,071 $(19,995)$46,586 $(14,745)
Denominator:
Weighted average shares outstanding75,587 74,523 75,446 74,267 
Diluted effect of stock awards2,183  2,134  
Weighted average shares outstanding assuming dilution77,770 74,523 77,580 74,267 
Earnings (loss) per share attributable to U.S. Silica Holdings, Inc.:
Basic earnings (loss) per share$0.42 $(0.27)$0.62 $(0.20)
Diluted earnings (loss) per share$0.41 $(0.27)$0.60 $(0.20)
10


Potentially dilutive shares are excluded from the calculation of diluted weighted average shares outstanding and diluted earnings per share if we are 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. Such potentially dilutive shares and stock awards excluded from the calculation of diluted earnings per common share were as follows:
In thousandsThree Months Ended 
 September 30,
Nine Months Ended 
 September 30,
 2022202120222021
Potentially dilutive shares excluded N/A1,523 N/A1,706 
Stock options excluded521 667 509 584 
Restricted stock and performance share unit awards excluded7 92 24 67 
NOTE D—ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Accumulated other comprehensive income (loss) consists of fair value adjustments associated with 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 income (loss) by component (in thousands):
 For the Nine Months Ended September 30, 2022
 Foreign currency translation adjustmentsPension and other post-retirement benefits liabilityTotal
Beginning Balance$(417)$766 $349 
Other comprehensive loss before reclassifications(1,364)(1,759)(3,123)
Amounts reclassified from accumulated other comprehensive loss (42)(42)
Ending Balance$(1,781)$(1,035)$(2,816)
Any amounts reclassified from accumulated other comprehensive income (loss) 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—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. Accounts receivable (in thousands) consisted of the following:
September 30,
2022
December 31,
2021
Trade receivables$239,029 $182,992 
Less: Allowance for credit losses(5,595)(5,248)
Net trade receivables233,434 177,744 
Other receivables(1)
2,797 25,015 
Total accounts receivable$236,231 $202,759 
(1) Other receivables included zero and $21.5 million at September 30, 2022 and December 31, 2021, respectively, of refunds related to NOL carryback claims filed for various tax years in accordance with certain provisions of the CARES Act.
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.
11


The following table reflects the change of the allowance for credit losses (in thousands):
Oil & Gas ProppantsIndustrial & Specialty ProductsTotal
Beginning balance, December 31, 2021$4,625 $623 $5,248 
Allowance for credit losses 378 378 
Write-offs(8)(23)(31)
Ending balance, September 30, 2022$4,617 $978 $5,595 
Our ten largest customers accounted for 42% and 40% of total sales for the three and nine months ended September 30, 2022, respectively, and 30% and 42% for the three and nine months ended September 30, 2021, respectively. No customers accounted for 10% or more of our total sales for the three or nine months ended September 30, 2022 or 2021. At September 30, 2022 and December 31, 2021, none of our customers' accounts receivable represented 10% or more of our total trade accounts receivable.
NOTE F—INVENTORIES
Inventories (in thousands) consisted of the following:
September 30, 2022December 31, 2021
Supplies$54,933 $45,605 
Raw materials and work in process41,165 36,529 
Finished goods47,100 33,579 
Total inventories$143,198 $115,713 


NOTE G—PROPERTY, PLANT AND MINE DEVELOPMENT
Property, plant and mine development (in thousands) consisted of the following:
September 30,
2022
December 31,
2021
Mining property and mine development$790,499 $789,122 
Asset retirement cost19,937 22,283 
Land55,582 55,541 
Land improvements76,338 76,248 
Buildings73,151 72,207 
Machinery and equipment1,197,418 1,189,548 
Furniture and fixtures3,922 3,932 
Construction-in-progress50,051 35,060 
2,266,898 2,243,941 
Accumulated depreciation, depletion, amortization and impairment charges(1,075,941)(985,295)
Total property, plant and mine development, net$1,190,957 $1,258,646 
Depreciation, depletion, and amortization expense related to property, plant and mine development was $31.6 million and $37.1 million for the three months ended September 30, 2022 and 2021, respectively, and $98.2 million and $114.0 million for the nine months ended September 30, 2022 and 2021, respectively.


12


NOTE H—GOODWILL AND INTANGIBLE ASSETS
The changes in the carrying amount of goodwill (in thousands) by business segment consisted of the following:
 Oil & Gas Proppants SegmentIndustrial & Specialty Products SegmentTotal
Balance at December 31, 2021$ $185,649 $185,649 
Impairment loss   
Balance at September 30, 2022$ $185,649 $185,649 

Goodwill and trade names are evaluated for impairment annually as of October 31, or more frequently when indicators of impairment exist. We evaluated events and circumstances since the date of our last qualitative assessment, including macroeconomic conditions, industry and market conditions, and our overall financial performance. There were no triggering events during the first nine months of 2022, therefore, no impairment charges were recorded related to goodwill or trade names for the nine months ended September 30, 2022.
The changes in the carrying amount of intangible assets (in thousands) consisted of the following:
 September 30, 2022December 31, 2021
 Gross Carrying AmountAccumulated AmortizationImpairmentsNetGross Carrying AmountAccumulated AmortizationImpairmentsNet
Technology and intellectual property$71,522 $(28,767)$ $42,755 $71,209 $(25,069)$(38)$46,102 
Customer relationships66,999 (31,589) 35,410 66,999 (27,987) 39,012 
 Total definite-lived intangible assets:$138,521 $(60,356)$ $78,165 $138,208 $(53,056)$(38)$85,114 
Trade names64,240 —  64,240 64,240 —  64,240 
Other700 —  700 700 —  700 
Total intangible assets:$203,461 $(60,356)$ $143,105 $203,148 $(53,056)$(38)$150,054 

Estimated useful life of technology and intellectual property is 15 years. Estimated useful life of customer relationships is a range of 13 - 20 years.

Amortization expense was $2.4 million and $7.3 million for the three and nine months ended September 30, 2022, respectively and $2.4 million and $7.3 million for the three and nine months ended September 30, 2021, respectively.

The estimated amortization expense related to definite-lived intangible assets (in thousands) for the five succeeding years is as follows:
2022 (remaining three months)$2,421 
2023$9,679 
2024$