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Impairment Charges and Mine Closure Costs
12 Months Ended
Dec. 31, 2013
Impairment charges [Abstract]  
Impairment Charges and Mine Closure Costs
Impairment Charges and Mine Closure Costs

Due to ongoing weakness in the thermal coal markets in Appalachia, the Company assessed in the third quarter of 2013 whether the carrying values of certain assets were recoverable through future cash flows. The Company determined that the carrying amounts of certain assets associated with the Hazard mining complex in Kentucky and the Company's ADDCAR subsidiary, which manufactures and sells its patented highwall mining system, could not be recovered through future cash flows expected to be generated from use of the assets and their ultimate disposal.

The assets' fair values were determined based on projections of cash flows to be generated from use of the assets and their ultimate disposal including estimates relating to market demand, coal prices, production costs and mine plans, and recovery value of the assets. An impairment charge of $142.8 million was recognized to adjust the carrying value of the assets to their fair value of $71.3 million. These losses are reflected on the line "Asset impairment and mine closure costs" in the consolidated statements of operations.

During 2013, the Company also recognized other-than-temporary impairment charges related to equity method investments. See further discussion in Note 9, "Equity Method Investments and Membership Interests in Joint Ventures."

In 2012, the closure and idling of mines in Appalachia discussed in Note 1, "Basis of Presentation" resulted in closure costs and related impairment charges that are reflected on the line "Asset impairment and mine closures costs" in the consolidated statements of operations.
        
 
In millions
Parts and supplies inventory writedown
$
2.6

Impairment of property, plant and equipment
95.6

Impairment of coal properties and deferred development costs
403.3

Royalty obligations
11.5

Employee termination benefits
12.3

Pension, postretirement and occupational disease curtailment gain, net
(1.8
)
 
$
523.5



In 2012, the value of an acquired sales contract was also determined to be impaired, see further discussion in Note 10, "Acquired Sales Contracts " for further discussion.

The $7.3 million in asset impairment costs for the year ended December 31, 2011 related to a preparation plant and loadout of an acquired ICG mining operation that would not be used in ongoing operations.