SEC Filings

10-Q
RANGE RESOURCES CORP filed this Form 10-Q on 10/23/2018
Entire Document
 

Other Postretirement Benefits

Effective fourth quarter 2017, as part of our officer succession plan, we implemented a postretirement benefit plan to assist in providing health care to officers who are active employees (including their spouses) and have met certain age and service requirements. These benefits are not funded in advance and are provided up to age 65 or at the date they become eligible for Medicare, subject to various cost-sharing features. In first nine months 2018, there were $276,000 of estimated prior service costs amortized from accumulated other comprehensive income into general and administrative expense. Those employees that qualify for the new postretirement health care plan are also fully vested in all equity grants.

Deferred Compensation Plan

Our deferred compensation plan gives non-employee directors and officers the ability to defer all or a portion of their salaries, bonuses or director fees and invest in Range common stock or make other investments at the individual’s discretion. Range provides a partial matching contribution to officers which vests over three years. The assets of the plan are held in a grantor trust, which we refer to as the Rabbi Trust, and are therefore available to satisfy the claims of our general creditors in the event of bankruptcy or insolvency. Our stock held in the Rabbi Trust is treated as a liability award as employees are allowed to take withdrawals from the Rabbi Trust either in cash or in Range stock. The liability for the vested portion of the stock held in the Rabbi Trust is reflected as deferred compensation liability in the accompanying consolidated balance sheets and is adjusted to fair value each reporting period by a charge or credit to deferred compensation plan expense on our consolidated statements of operations. The assets of the Rabbi Trust, other than our common stock, are invested in marketable securities and reported at their market value as other assets in the accompanying consolidated balance sheets. The deferred compensation liability reflects the vested market value of the marketable securities and Range stock held in the Rabbi Trust. Changes in the market value of the marketable securities and changes in the fair value of the deferred compensation plan liability are charged or credited to deferred compensation plan expense each quarter. We recorded mark-to-market loss of $223,000 in third quarter 2018 compared to mark-to-market gain of $9.2 million in third quarter 2017. We recorded mark-to-market gain of $559,000 in first nine months 2018 compared to a mark-to-market gain of $36.8 million in first nine months 2017. The Rabbi Trust held 2.9 million shares (2.7 million of which were vested) of Range stock at September 30, 2018 compared to 2.9 million shares (2.8 million of which were vested) at December 31, 2017.

(14) CAPITAL STOCK

We have authorized capital stock of 485.0 million shares which includes 475.0 million shares of common stock and 10.0 million shares of preferred stock. We currently have no preferred stock issued or outstanding. The following is a schedule of changes in the number of common shares outstanding since the beginning of 2017:

 

 

 

Nine Months
Ended
September 30,
2018

 

 

Year
Ended
December 31,
2017

 

Beginning balance

 

 

248,129,430

 

 

 

247,144,356

 

Restricted stock grants

 

 

853,291

 

 

 

539,096

 

Restricted stock units vested

 

 

430,287

 

 

 

344,937

 

Performance stock units issued

 

 

73,985

 

 

 

85,461

 

Performance stock dividends

 

 

2,164

 

 

 

 

Treasury shares issued

 

 

4,900

 

 

 

15,580

 

Ending balance

 

 

249,494,057

 

 

 

248,129,430

 

 

(15) SUPPLEMENTAL CASH FLOW INFORMATION

 

 

 

 

Nine Months Ended September 30,

 

 

 

2018

 

 

2017

 

 

 

(in thousands)

 

Net cash provided from operating activities included:

 

 

 

 

 

 

 

 

Income taxes refunded (paid) to taxing authorities

 

$

7,521

 

 

$

(98

)

Interest paid

 

 

(161,444

)

 

 

(136,863

)

Non-cash investing and financing activities included:

 

 

 

 

 

 

 

 

Increase in asset retirement costs capitalized

 

 

20,452

 

 

 

6,460

 

(Decrease) increase in accrued capital expenditures

 

 

(107,070

)

 

 

52,289

 

 

 

 

 

 

 

 

 

 

 

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