Warrior Met Coal receives favorable IRS private letter ruling
Warrior Met Coal reported that the Internal Revenue Service has issued a Private Letter Ruling that favorably impacts the company's analysis of its ability to utilize its net operating loss carryforwards for federal income tax purposes. Prior to the PLR, the company applied an annual limitation on the utilization of NOLs and expected to pay a significantly higher amount of income taxes for 2017. However, the company expects to be subject to the Alternative Minimum Tax. The company expects to make a year-to-date adjustment in its Q3 financial results to reflect the change in application of Section 382 in computing income tax expense. After applying the revised method, the company believes that its effective income tax rate will be approximately 2% for the full year. The company expects that its NOLs will be less than the amounts previously disclosed due to the change in the application of Section 382, as a result of this ruling. The company now expects its federal NOLs to total approximately $1.8B-$2.0B. The company plans to provide an updated estimate of its NOLs by the end of this fiscal year.