Segment Information

9 Months Ended

Sep. 30, 2011

Segment Information [Abstract]

Segment Information

18. Segment Information

     The Company has three reportable business segments, which are based on the major coal producing basins in which the Company operates. Each of these reportable business segments includes a number of mine complexes. The Company manages its coal sales by coal basin, not by individual mine complex. Geology, coal transportation routes to customers, regulatory environments and coal quality are characteristic to a basin. Accordingly, market and contract pricing have developed by coal basin. Mine operations are evaluated based on their per-ton operating costs (defined as including all mining costs but excluding pass-through transportation expenses), as well as on other non-financial measures, such as safety and environmental performance. The Company's reportable segments are the Powder River Basin (PRB) segment, with operations in Wyoming; the Western Bituminous (WBIT) segment, with operations in Utah, Colorado and southern Wyoming; the Appalachia (APP) segment, with operations in West Virginia, Kentucky, Maryland and Virginia. The Appalachia segment includes the acquired ICG operations in Appalachia, as well as the Company's previous Central Appalachia segment. The "Other" operating segment represents primarily the Company's Illinois operations and ADDCAR subsidiary, which manufactures and sells its patented highwall mining system.

     Operating segment results for the three and nine months ended September 30, 2011 and 2010 are presented below. Results for the reportable segments include all direct costs of mining, including all depreciation, depletion and amortization related to the mining operations, even if the assets are not recorded at the operating segment level. See discussion of segment assets below. Corporate, Other and Eliminations includes the change in fair value of coal derivatives and coal trading activities, net; corporate overhead; land management; other support functions; and the elimination of intercompany transactions.

     The asset amounts below represent an allocation of assets used in the segments' cash-generating activities. The amounts in Corporate, Other and Eliminations represent primarily corporate assets (cash, receivables, investments, plant, property and equipment) as well as unassigned coal reserves, above-market acquired sales contracts and other unassigned assets.

									Other			Corporate,
									Operating			Other and
		PRB		APP			WBIT		Segments			Eliminations			Consolidated
	(In thousands)
Three months ended September 30, 2011
Revenues	$	394,012	$	611,403		$	168,795	$	24,463		$	—		$	1,198,673
Income (loss) from operations		38,630		77,511			24,653		(1,713	)		(46,815	)		92,266
Depreciation, depletion and amortization		42,676		59,576			19,125		3,781			(2,132	)		123,026
Amortization of acquired sales contracts, net		3,802		(16,022	)		—		34			—			(12,186	)
Capital expenditures		20,937		62,121			16,111		4,705			4,300			108,174
Three months ended September 30, 2010
Revenues	$	440,439	$	296,227		$	138,039	$	—		$	—		$	874,705
Income from operations		51,787		55,664			14,816		—			(23,920	)		98,347
Depreciation, depletion and amortization		49,005		24,435			18,940		—			477			92,857
Amortization of acquired sales contracts, net		10,038		—			—		—			—			10,038
Capital expenditures		8,164		16,910			20,703		—			3,848			49,625
Nine Months ended September 30, 2011
Revenues	$	1,178,537	$	1,336,581		$	513,388	$	28,633		$	—		$	3,057,139
Income (loss) from operations		121,119		224,561			95,218		(1,814	)		(147,401	)		291,683
Total assets		2,240,458		5,159,710			667,658		222,014			1,565,421			9,855,261
Depreciation, depletion and amortization		125,532		108,904			61,753		4,386			1,171			301,746
Amortization of acquired sales contracts, net		15,349		(20,145	)		—		43			—			(4,753	)
Capital expenditures		39,422		108,711			38,003		9,078			20,685			215,899
Nine months ended September 30, 2010
Revenues	$	1,170,353	$	777,619		$	402,902	$	—		$	—		$	2,350,874
Income from operations		101,525		147,336			41,122		—			(52,937	)		237,046
Total assets		2,304,277		701,670			677,968		—			1,150,871			4,834,786
Depreciation, depletion and amortization		138,059		72,190			57,700		—			1,186			269,135
Amortization of acquired sales contracts, net		26,005		—			—		—			—			26,005
Capital expenditures		12,614		41,519			54,507		—			112,943			221,583

A reconciliation of segment income from operations to consolidated income before income taxes follows:

		Three Months Ended September 30						Nine Months Ended September 30
		2011			2010			2011			2010
		(In thousands)						(In thousands)
Income from operations	$	92,266		$	98,347		$	291,683		$	237,046
Interest expense		(77,694	)		(37,698	)		(154,523	)		(107,906	)
Interest income		840			927			2,341			1,888
Bridge financing costs related to ICG		—			—			(49,490	)		—
Net loss resulting from early retirement of debt		(1,708	)		(6,776	)		(1,958	)		(6,776	)
Income before income taxes	$	13,704		$	54,800		$	88,053		$	124,252