Supplemental Condensed Consolidating Financial Information (Tables)

12 Months Ended

Dec. 31, 2011

Supplemental Condensed Consolidating Financial Information [Abstract]

Schedule Of Condensed Consolidating Statements Of Income

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

Year Ended December 31, 2011

Parent/Issuer	Guarantor   Subsidiaries	Non-Guarantor   Subsidiaries	Eliminations	Consolidated
(In thousands)

Revenues	$                  –	$2,024,168	$  2,261,727	$               –	$   4,285,895
Costs, expenses and other
Cost of sales	22,925	1,537,697	1,812,461	(105,173)	3,267,910
Depreciation, depletion and amortization	2,883	304,742	158,962	–	466,587
Amortization of acquired sales contracts, net	–	(41,527)	19,458	–	(22,069)
Selling, general and administrative expenses	74,591	13,860	37,839	(7,234)	119,056
Change in fair value of coal derivatives and coal trading activities, net	–	(2,907)	–	–	(2,907)
Acquisition and transition costs	54,676	–	–	–	54,676
Other operating (income) expense, net	(23,306)	(118,767)	18,732	112,407	(10,934)
	131,769	1,693,098	2,047,452	-	3,872,319
Income from investment in subsidiaries	556,448	–	–	(556,448)	–
Income from operations	424,679	331,070	214,275	(556,448)	413,576
Interest income (expense), net:
Interest expense	(256,220)	(5,062)	(43,728)	74,824	(230,186)
Interest income	16,282	759	61,092	(74,824)	3,309
	(239,938)	(4,303)	17,364	–	(226,877)
Other non-operating expense
Bridge financing costs related to ICG	(49,490)	-	-	-	(49,490)
Net loss resulting from early retirement of debt	–	(1,958)	-	–	(1,958)
	(49,490)	(1,958)	-	–	(51,448)
Income before income taxes	135,251	324,809	231,639	(556,448)	135,251
Benefit from income taxes	(7,589)	–	–	–	(7,589)
Net income	142,840	324,809	231,639	(556,448)	142,840
Less:  Net income attributable to noncontrolling interest	(1,157)	–	–	–	(1,157)
Net income attributable to Arch Coal	$  141,683	$  324,809	$   231,639	$(556,448)	$141,683

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

Year Ended December 31, 2010

	Parent/Issuer	Guarantor    Subsidiaries	Non-Guarantor    Subsidiaries	Eliminations	Consolidated
	(In thousands)
Revenues	$               —	$  1,137,980	$     2,048,288	$               —	$  3,186,268
Costs, expenses and other
Cost of sales	11,526	797,917	1,679,872	(93,503)	2,395,812
Depreciation, depletion and amortization	2,933	194,847	167,286	—	365,066
Amortization of acquired sales contracts, net	—	—	35,606	—	35,606
Selling, general and administrative expenses	79,580	7,355	38,496	(7,254)	118,177
Change in fair value of coal derivatives and coal trading activities, net	—	8,924	—	—	8,924
Gain on Knight Hawk transaction	—	(41,577)	—	—	(41,577)
Other operating (income) expense, net	(10,259)	(115,994)	5,772	100,757	(19,724)
	83,780	851,472	1,927,032	—	2,862,284
Income from investment in subsidiaries	393,366	—	—	(393,366)	—
Income from operations	309,586	286,508	121,256	(393,366)	323,984
Interest expense, net:
Interest expense	(143,606)	(2,763)	(64,463)	68,283	(142,549)
Interest income	11,128	456	59,148	(68,283)	2,449
	(132,478)	(2,307)	(5,315)	—	(140,100)
Other non-operating expense
Net loss resulting from early retirement of debt	—	—	(6,776)	—	(6,776)
	—	—	(6,776)	—	(6,776)
Income before income taxes	177,108	284,201	109,165	(393,366)	177,108
Provision for income taxes	17,714	—	—	—	17,714
Net income	159,394	284,201	109,165	(393,366)	159,394
Less: Net income attributable to noncontrolling interest	(537)	—	—	—	(537)
Net income attributable to Arch Coal	$    158,857	$      284,201	$        109,165	$   (393,366)	$      158,857

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

Year Ended December 31, 2009

	Parent/Issuer	Guarantor Subsidiaries	Non-Guarantor    Subsidiaries	Eliminations	Consolidated
	(In thousands)
Revenues	$             —	$  924,692	$     1,651,389	$               —	$  2,576,081
Costs, expenses and other
Cost of sales	7,481	713,782	1,398,663	(49,211)	2,070,715
Depreciation, depletion and amortization	3,678	138,125	159,805	—	301,608
Amortization of acquired sales contracts, net	—	—	19,623	—	19,623
Selling, general and administrative expenses	49,672	7,504	46,563	(5,952)	97,787
Change in fair value of coal derivatives and coal trading activities, net	—	(12,056)	—	—	(12,056)
Acquisition and transition costs	13,726	—	—	—	13,726
Other operating (income) expense, net	(12,909)	(85,460)	4,170	55,163	(39,036)
	61,648	761,895	1,628,824	—	2,452,367
Income from investment in subsidiaries	165,183	—	—	(165,183)	—
Income from operations	103,535	162,797	22,565	(165,183)	123,714
Interest expense, net:
Interest expense	(92,371)	(2,442)	(70,668)	59,549	(105,932)
Interest income	14,240	720	52,211	(59,549)	7,622
	(78,131)	(1,722)	(18,457)	—	(98,310)
Income before income taxes	25,404	161,075	4,108	(165,183)	25,404
Benefit from income taxes	(16,775)	—	—	—	(16,775)
Net income	42,179	161,075	4,108	(165,183)	42,179
Less: Net income attributable to noncontrolling interest	(10)	—	—	—	(10)
Net income attributable to Arch Coal	$     42,169	$  161,075	$             4,108	$   (165,183)	$        42,169

Schedule Of Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS

December 31, 2011

	Parent/Issuer	Guarantor  Subsidiaries	Non-Guarantor   Subsidiaries	Eliminations	Consolidated
	(In thousands)
ASSETS
Cash and cash equivalents	$  61,375	$    332	$     76,442	$         –	$  138,149
Restricted cash	10,322	–	–	–	10,322
Receivables	65,187	22,037	383,572	(1,617)	469,179
Inventories	–	207,050	170,440	–	377,490
Other	81,732	83,122	22,780	–	187,634
Total current assets	218,616	312,541	653,234	(1,617)	1,182,774
Property, plant and equipment, net	21,241	6,403,658	1,524,251	–	7,949,150
Investment in subsidiaries	8,805,731	–	–	(8,805,731)	–
Intercompany receivables	(1,457,864)	7,010	1,450,854	–	–
Note receivable from Arch Western	225,000	–	–	(225,000)	–
Other	184,266	884,613	13,156	–	1,082,035
Total other assets	7,757,133	891,623	1,464,010	(9,030,731)	1,082,035
Total assets	$  7,996,990	$7,607,822	$  3,641,495	(9,032,348)	$10,213,959
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	$   25,409	$ 175,196	$ 183,177	$    –	$  383,782
Accrued expenses and other current liabilities	75,133	115,685	166,834	(1,617)	356,035
Current maturities of debt and short-term borrowings	172,564	1,987	106,300	–	280,851
Total current liabilities	273,106	292,868	456,311	(1,617)	1,020,668
Long-term debt	3,308,674	2,652	450,971		3,762,297
Note payable to Arch Coal	–	–	225,000	(225,000)	–
Asset retirement obligations	877	140,861	305,046	–	446,784
Accrued pension benefits	19,198	4,203	24,843	–	48,244
Accrued postretirement benefits other than pension	13,843	6,271	22,195	–	42,309
Accrued workers' compensation	17,272	48,111	6,565	–	71,948
Deferred income taxes	621,483	355,270	–	–	976,753
Other noncurrent liabilities	152,963	64,795	37,624	–	255,382
Total liabilities	4,407,416	915,031	1,528,555	(226,617)	6,624,385
Redeemable noncontrolling interest	11,534	–	–	–	11,534
Stockholders' equity	3,578,040	6,692,791	2,112,940	(8,805,731)	3,578,040
Total liabilities and stockholders' equity	$  7,996,990	$7,607,822	$ 3,641,495	$ (9,032,348)	$10,213,959

CONDENSED CONSOLIDATING BALANCE SHEETS

December 31, 2010

	Parent/Issuer	Guarantor   Subsidiaries	Non-Guarantor    Subsidiaries	Eliminations	Consolidated
	(In thousands)
ASSETS
Cash and cash equivalents	$          13,713	$                64	$        79,816	$                  —	$        93,593
Receivables	31,458	12,740	210,075	(1,953)	252,320
Inventories	—	85,196	150,420	—	235,616
Other	29,575	102,375	21,435	—	153,385
Total current assets	74,746	200,375	461,746	(1,953)	734,914
Property, plant and equipment, net	9,817	1,800,578	1,498,497	—	3,308,892
Investment in subsidiaries	4,555,233	—	—	(4,555,233)	—
Intercompany receivables	(1,807,902)	508,624	1,299,278	—	—
Note receivable from Arch Western	225,000	—	—	(225,000)	—
Other	481,345	344,698	10,920	—	836,963
Total other assets	3,453,676	853,322	1,310,198	(4,780,233)	836,963
Total assets	$    3,538,239	$  2,854,275	$  3,270,441	$   (4,782,186)	$  4,880,769
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	$          10,753	$        65,793	$      121,670	$                  —	$     198,216
Accrued expenses and other current liabilities	75,746	31,123	153,217	(1,953)	258,133
Current maturities of debt and short-term borrowings	14,093	—	56,904	—	70,997
Total current liabilities	100,592	96,916	331,791	(1,953)	527,346
Long-term debt	1,087,126	—	451,618	—	1,538,744
Note payable to Arch Coal	—	—	225,000	(225,000)	—
Asset retirement obligations	873	32,029	301,355	—	334,257
Accrued pension benefits	20,843	4,407	23,904	—	49,154
Accrued postretirement benefits other than pension	14,284	—	23,509	—	37,793
Accrued workers' compensation	15,383	13,805	6,102	—	35,290
Other noncurrent liabilities	51,187	22,135	36,912	—	110,234
Total liabilities	1,290,288	169,292	1,400,191	(226,953)	2,632,818
Redeemable noncontrolling interest	10,444	—	—	—	10,444
Stockholders' equity	2,237,507	2,684,983	1,870,250	(4,555,233)	2,237,507
Total liabilities and stockholders' equity	$    3,538,239	$  2,854,275	$  3,270,441	$   (4,782,186)	$  4,880,769

Schedule Of Condensed Consolidating Statements Of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Year Ended December 31, 2011

	Parent/Issuer	Guarantor   Subsidiaries	Non-Guarantor   Subsidiaries	Eliminations	Consolidated
		(In thousands)
Cash provided by (used in) operating activities	$ (561,704)	$801,201	$ 402,745	$          –	$ 642,242
Investing Activities
Acquisitions of businesses, net of cash acquired	(2,894,339)	–	–	–	(2,894,339)
Decrease in restricted cash	5,167	–	–	–	5,167
Capital expenditures	(12,809)	(353,441)	(174,686)	–	(540,936)
Proceeds from dispositions of property, plant and equipment	–	25,730	157	–	25,887
Additions to prepaid royalties	-	(25,982)	(3,975)	-	(29,957)
Purchases of investments and advances to affiliates	(633,534)	(33,553)	-	605,178	(61,909)
Consideration paid related to prior business acquisitions	(829)	–	–	–	(829)
Cash used in investing activities	(3,536,344)	(387,246)	(178,504)	605,178	(3,496,916)
Financing Activities
Proceeds from the issuance of senior notes	2,000,000	–	–	–	2,000,000
Proceeds from the issuance of common stock, net	1,267,933	–	–	–	1,267,933
Contributions from parent	–	605,178	–	(605,178)	–
Payments to retire debt	–	(605,178)	–	–	(605,178)
Net increase (decrease) in borrowings under lines of credit and commercial paper program	481,300	–	(56,904)	–	424,396
Net proceeds from other debt	5,334	–	–	–	5,334
Debt financing costs	(114,799)	–	(24)	–	(114,823)
Dividends paid	(80,748)	–	–	–	(80,748)
Issuance of common stock under incentive plans	2,316	–	–	–	2,316
Transactions with affiliates, net	584,374	(413,687)	(170,687)	–	–
Cash provided by (used in) financing activities	4,145,710	(413,687)	(227,615)	(605,178)	2,899,230
Increase (decrease) in cash and cash equivalents	47,662	268	(3,374)	–	44,556
Cash and cash equivalents, beginning of period	13,713	64	79,816	–	93,593
Cash and cash equivalents, end of period	$  61,375	$   332	$   76,442	$               –	$   138,149

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Year Ended December 31, 2010

	Parent/Issuer	Guarantor  Subsidiaries	Non-Guarantor   Subsidiaries	Consolidated
	(In thousands)
Cash provided by (used in) operating activities	$   (238,736)	$    503,766	$    432,117	$    697,147
Investing Activities
Capital expenditures	(4,814)	(198,243)	(111,600)	(314,657)
Proceeds from dispositions of property, plant and equipment	—	251	79	330
Additions to prepaid royalties	—	(24,381)	(2,974)	(27,355)
Purchases of investments and advances to affiliates	(40,421)	(5,764)	—	(46,185)
Consideration paid related to prior business acquisitions	(1,262)	—	—	(1,262)
Cash used in investing activities	(46,497)	(228,137)	(114,495)	(389,129)
Financing Activities
Proceeds from the issuance of senior notes	500,000	—	—	500,000
Payments to retire debt	—	—	(505,627)	(505,627)
Net decrease in borrowings under lines of credit and commercial paper program	(120,000)	—	(76,549)	(196,549)
Net proceeds from other debt	82	—	—	82
Debt financing costs	(12,022)	—	(729)	(12,751)
Dividends paid	(63,373)	—	—	(63,373)
Issuance of common stock under incentive plans	1,764			1,764
Contribution from noncontrolling interest	—	—	891	891
Transactions with affiliates, net	(61,760)	(275,629)	337,389	—
Cash provided by (used in) financing activities	244,691	(275,629)	(244,625)	(275,563)
Increase (decrease) in cash and cash equivalents	(40,542)	—	72,997	32,455
Cash and cash equivalents, beginning of period	54,255	64	6,819	61,138
Cash and cash equivalents, end of period	$      13,713	$              64	$      79,816	$      93,593

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Year Ended December 31, 2009

	Parent/Issuer	Guarantor   Subsidiaries	Non-Guarantor    Subsidiaries	Consolidated
	(In thousands)
Cash provided by (used in) operating activities	$   (168,427)	$    338,956	$    212,451	$       382,980
Investing Activities
Acquisitions of businesses, net of cash acquired	(768,819)	—	—	(768,819)
Capital expendiutres	(2,940)	(194,756)	(125,454)	(323,150)
Proceeds from dispositions of property, plant and equipment	—	734	91	825
Additions to prepaid royalties	—	(23,991)	(2,764)	(26,755)
Purchases of investments and advances to affiliates	(8,000)	(2,925)	—	(10,925)
Consideration paid related to prior business acquisitions	(4,767)	—	—	(4,767)
Reimbursement of deposits on equipment	—	—	3,209	3,209
Cash used in investing activities	(784,526)	(220,938)	(124,918)	(1,130,382)
Financing Activities
Proceeds from the issuance of senior notes	584,784	—	—	584,784
Proceeds from the sale of common stock, net	326,452	—	—	326,452
Net decrease in borrowings under lines of credit and commercial paper program	(85,000)	—	(815)	(85,815)
Net payments on other debt	(2,986)	—	—	(2,986)
Debt financing costs	(29,456)	—	(203)	(29,659)
Dividends paid	(54,969)	—	—	(54,969)
Issuance of common stock under incentive plans	84	—	—	84
Transactions with affiliates, net	200,562	(118,015)	(82,547)	—
Cash provided by (used in) financing activities	939,471	(118,015)	(83,565)	737,891
Increase (decrease) in cash and cash equivalents	(13,482)	3	3,968	(9,511)
Cash and cash equivalents, beginning of period	67,737	61	2,851	70,649
Cash and cash equivalents, end of period	$      54,255	$              64	$        6,819	$          61,138