Supplemental Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 30, 2011

Supplemental Condensed Consolidating Financial Information [Abstract]

Schedule Of Condensed Consolidating Statements Of Income

Condensed Consolidating Statements of Income
Three Months Ended September 30, 2011
					(unaudited)
					Guarantor			Non-Guarantor
	Parent/Issuer				Subsidiaries			Subsidiaries			Eliminations			Consolidated
								(In thousands)
Revenues	$	–		$	651,326		$	547,347			$ –		$	1,198,673
Costs, expenses and other
Cost of sales		7,442			522,636			448,680			(25,908	)		952,850
Depreciation, depletion and amortization		718			83,775			38,533			–			123,026
Amortization of acquired sales contracts, net		–			(15,989	)		3,803			–			(12,186	)
Selling, general and administrative expenses		20,263			5,058			9,751			(1,796	)		33,276
Change in fair value of coal derivatives and coal
trading activities, net		–			8,360			–			–			8,360
Acquisition and transition costs related to ICG		4,694			–			–			–			4,694
Other operating (income) expense, net		(6,063	)		(30,509	)		5,255			27,704			(3,613	)
		27,054			573,331			506,022			-			1,106,407
Income from investment in subsidiaries		121,210			–			–			(121,210	)		–
Income from operations		94,156			77,995			41,325			(121,210	)		92,266
Interest expense, net:
Interest expense		(84,045	)		(942	)		(10,657	)		17,950			(77,694	)
Interest income		3,593			108			15,089			(17,950	)		840
		(80,452	)		(834	)		4,432			–			(76,854	)
Other non-operating expense
Net loss resulting from early retirement of debt		–			(1,708	)		-			–			(1,708	)
		–			(1,708	)		-			–			(1,708	)
Income before income taxes		13,704			75,453			45,757			(121,210	)		13,704
Benefit from income taxes		(5,583	)		–			–			–			(5,583	)
Net income		19,287			75,453			45,757			(121,210	)		19,287
Less: Net income attributable to noncontrolling
interest		(231	)		–			–			–			(231	)
Net income attributable to Arch Coal	$	19,056		$	75,453		$	45,757		$	(121,210	)	$	19,056

Condensed Consolidating Statements of Income
Three Months Ended September 30, 2010
(unaudited)
					Guarantor		Non-Guarantor
	Parent/Issuer				Subsidiaries		Subsidiaries				Eliminations			Consolidated
							(In thousands)
Revenues	$	–		$	324,507		$	550,198		$	–		$	874,705
Costs, expenses and other
Cost of sales		3,578			229,731			445,814			(27,270	)		651,853
Depreciation, depletion and amortization		794			52,302			39,761			–			92,857
Amortization of acquired sales contracts, net		–			–			10,038			–			10,038
Selling, general and administrative expenses		18,245			1,858			8,818			(1,922	)		26,999
Change in fair value of coal derivatives and
coal trading activities, net		–			1,832			–			–			1,832
Other operating (income) expense, net		(3,346	)		(35,107	)		2,040			29,192			(7,221	)
		19,271			250,616			506,471			–			776,358
Income from investment in subsidiaries		108,974			–			–			(108,974	)		–
Income from operations		89,703			73,891			43,727			(108,974	)		98,347
Interest expense, net:
Interest expense		(38,041	)		(745	)		(16,738	)		17,826			(37,698	)
Interest income		3,138			119			15,496			(17,826	)		927
		(34,903	)		(626	)		(1,242	)		–			(36,771	)
Other non-operating expense
Net loss resulting from early retirement of debt		–			–			(6,776	)		–			(6,776	)
		–			–			(6,776	)		–			(6,776	)
Income before income taxes		54,800			73,265			35,709			(108,974	)		54,800
Provision for income taxes		7,941						–			–			7,941
Net income		46,859			73,265			35,709			(108,974	)		46,859
Less: Net income attributable to
noncontrolling interest		(181	)		–			–			–			(181	)
Net income attributable to Arch Coal	$	46,678		$	73,265		$	35,709		$	(108,974	)	$	46,678

Condensed Consolidating Statements of Income
Nine Months Ended September 30, 2011
			(unaudited)
						Guarantor			Non-Guarantor
	Parent/Issuer					Subsidiaries			Subsidiaries			Eliminations			Consolidated
									(In thousands)
Revenues	$		–		$	1,409,755		$	1,647,384			$ –		$	3,057,139
Costs, expenses and other
Cost of sales			15,661			1,062,692			1,319,711			(75,940	)		2,322,124
Depreciation, depletion and amortization			2,050			181,059			118,637			–			301,746
Amortization of acquired sales contracts, net			–			(20,102	)		15,349			–			(4,753	)
Selling, general and administrative expenses			59,198			10,112			28,768			(5,328	)		92,750
Change in fair value of coal derivatives and
coal trading activities, net			–			9,248			–			–			9,248
Acquisition and transition costs related to ICG			53,360			–			–			–			53,360
Other operating (income) expense, net			(15,461	)		(87,210	)		12,384			81,268			(9,019	)
			114,808			1,155,799			1,494,849			-			2,765,456
Income from investment in subsidiaries			413,406			–			–			(413,406	)		–
Income from operations			298,598			253,956			152,535			(413,406	)		291,683
Interest expense, net:
Interest expense			(172,700	)		(3,793	)		(32,599	)		54,569			(154,523	)
Interest income			11,645			540			44,725			(54,569	)		2,341
			(161,055	)		(3,253	)		12,126			–			(152,182	)
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			88,053			248,745			164,661			(413,406	)		88,053
Provision for income taxes			5,103			–			–			–			5,103
Net income			82,950			248,745			164,661			(413,406	)		82,950
Less: Net income attributable to noncontrolling
interest			(822	)		–			–			–			(822	)
Net income attributable to Arch Coal		$	82,128		$	248,745		$	164,661		$	(413,406	)	$	82,128

Condensed Consolidating Statements of Income
	Nine Months Ended September 30, 2010
		(unaudited)
					Guarantor			Non-Guarantor
	Parent/Issuer				Subsidiaries			Subsidiaries			Eliminations			Consolidated
								(In thousands)
Revenues	$	–		$	846,351		$	1,504,523		$	–		$	2,350,874
Costs, expenses and other
Cost of sales		8,554			591,692			1,239,893			(66,675	)		1,773,464
Depreciation, depletion and amortization		2,270			142,961			123,904			–			269,135
Amortization of acquired sales contracts, net		–			–			26,005			–			26,005
Selling, general and administrative expenses		60,139			5,500			29,226			(5,356	)		89,509
Change in fair value of coal derivatives and
coal trading activities, net		–			12,296			–			–			12,296
Gain on Knight Hawk transaction		–			(41,577	)		–			–			(41,577	)
Other operating (income) expense, net		(8,124	)		(84,031	)		5,120			72,031			(15,004	)
		62,839			626,841			1,424,148			–			2,113,828
Income from investment in subsidiaries		282,794			–			–			(282,794	)		–
Income from operations		219,955			219,510			80,375			(282,794	)		237,046
Interest expense, net:
Interest expense		(102,996	)		(2,104	)		(53,241	)		50,435			(107,906	)
Interest income		7,293			283			44,747			(50,435	)		1,888
		(95,703	)		(1,821	)		(8,494	)		–			(106,018	)
Other non-operating expense
Net loss resulting from early retirement of debt		–			–			(6,776	)		–			(6,776	)
		–			–			(6,776	)		–			(6,776	)
Income before income taxes		124,252			217,689			65,105			(282,794	)		124,252
Provision for income taxes		12,889			–			–			–			12,889
Net income		111,363			217,689			65,105			(282,794	)		111,363
Less: Net income attributable to
noncontrolling interest		(325	)		–			–			–			(325	)
Net income attributable to Arch Coal	$	111,038		$	217,689		$	65,105		$	(282,794	)	$	111,038

Schedule Of Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheets
		September 30, 2011
					(unaudited)
					Guarantor		Non-Guarantor
		Parent/Issuer			Subsidiaries		Subsidiaries				Eliminations				Consolidated
							(In thousands)
Assets
Cash and cash equivalents	$	57,778		$	280			$	100,451		$–			$	158,509
Restricted cash		21,428			-				-		–				21,428
Receivables		63,111			130,884				233,855		(1,550	)			426,300
Inventories		–			173,564				172,767		–				346,331
Other		35,413			102,729				16,873		–				155,015
Total current assets		177,730			407,457				523,946		(1,550	)			1,107,583
Property, plant and equipment, net		13,685			6,234,786				1,454,809		–				7,703,280
Investment in subsidiaries		8,632,002			–				–		(8,632,002	)			–
Intercompany receivables		(2,243,557	)		813,061				1,430,496		–				–
Note receivable from Arch Western		225,000			-				-		(225,000	)			–
Other		456,885			574,038				13,475		–				1,044,398
Total other assets		7,070,330			1,387,099				1,443,971		(8,857,002	)			1,044,398
Total assets	$	7,261,745		$	8,029,342			$	3,422,726	$	(8,858,552	)	$		9,855,261
Liabilities and Stockholders' Equity
Accounts payable	$	33,646		$	151,826		$		107,974	$	–		$		293,446
Accrued expenses and other current
liabilities		108,442			132,785				145,854		(1,550	)			385,531
Current maturities of debt and short-term
borrowings		4,357			2,799				40,000		–				47,156
Total current liabilities		146,445			287,410				293,828		(1,550	)			726,133
Long-term debt		3,388,496			1,702				451,132						3,841,330
Note payable to Arch Coal		-			–				225,000		(225,000	)			-
Asset retirement obligations		548			107,002				308,327		–				415,877
Accrued pension benefits		7,057			(489	)			9,667		–				16,235
Accrued postretirement benefits other
than pension		15,276			50,241				23,303		–				88,820
Accrued workers' compensation		14,866			42,850				6,705		–				64,421
Deferred income taxes		(4,162	)		884,649				-		–				880,487
Other noncurrent liabilities		148,751			75,565				53,174		–				277,490
Total liabilities		3,717,277			1,448,930				1,371,136		(226,550	)			6,310,793
Redeemable noncontrolling interest		11,261			–				–		–				11,261
Stockholders' equity		3,533,207			6,580,412				2,051,590		(8,632,002	)			3,533,207
Total liabilities and stockholders'
equity	$	7,261,745		$	8,029,342		$		3,422,726	$	(8,858,552	)	$		9,855,261

Condensed Consolidating Balance Sheets
December 31, 2010
(unaudited)
					Guarantor		Non-Guarantor
		Parent/Issuer			Subsidiaries		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
Nine Months Ended September 30, 2011
(unaudited)
					Guarantor			Non-Guarantor
		Parent/Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated
								(In thousands)
Cash provided by (used in) operating
activities	$	(444,664	)	$	613,179		$	302,852		$	-		$	471,367
Investing Activities
Acquisition of ICG, net of cash acquired		(2,894,339	)		-			-			-			(2,894,339	)
Increase in restricted cash		(5,939	)		-			-			-			(5,939	)
Capital expenditures		(5,137	)		(135,640	)		(75,122	)		-			(215,899	)
Proceeds from dispositions of property, plant
and equipment		–			25,010			123			-			25,133
Purchases of investments and advances to
affiliates		(777,341	)		(29,872	)		–			750,386			(56,827	)
Additions to prepaid royalties		–			(22,163	)		(3,972	)		–			(26,135	)
Cash used in investing activities		(3,682,756	)		(162,665	)		(78,971	)		750,386			(3,174,006	)
Financing Activities
Proceeds from the issuance of senior notes		2,000,000			–			-			-			2,000,000
Proceeds from the issuance of common stock,
net		1,267,776			–			-			-			1,267,776
Contributions from parent		-			750,386			-			(750,386	)		–
Payments to retire debt		-			(604,096	)		-			-			(604,096	)
Net increase (decrease) in borrowings under
lines of credit and commercial paper program		340,000			–			(56,904	)		-			283,096
Net payments on other debt		(8,792	)		–			–			-			(8,792	)
Debt financing costs		(114,563	)		–			(24	)		-			(114,587	)
Dividends paid		(57,470	)		–			–			-			(57,470	)
Issuance of common stock under incentive
plans		1,628			–			–			-			1,628
Transactions with affiliates, net		742,906			(596,588	)		(146,318	)		-			–
Cash provided by (used in) financing
activities		4,171,485			(450,298	)		(203,246	)		(750,386	)		2,767,555
Increase in cash and cash equivalents		44,065			216			20,635			-			64,916
Cash and cash equivalents, beginning of
period		13,713			64			79,816			-			93,593
Cash and cash equivalents, end of period	$	57,778		$	280		$	100,451		$	-		$	158,509

Condensed Consolidating Statements of Cash Flows
Nine Months Ended September 30, 2010
					(unaudited)
					Guarantor			Non-Guarantor
		Parent/Issuer			Subsidiaries			Subsidiaries			Consolidated
					(In thousands)
Cash provided by (used in) operating
activities	$	(224,066	)	$	404,836		$	275,910		$	456,680
Investing Activities
Capital expenditures		(3,942	)		(141,825	)		(75,816	)		(221,583	)
Proceeds from dispositions of property, plant and
equipment		–			178			74			252
Purchases of investments and advances to affiliates		(12,671	)		(4,069	)		–			(16,740	)
Additions to prepaid royalties		–			(20,880	)		(2,835	)		(23,715	)
Cash used in investing activities		(16,613	)		(166,596	)		(78,577	)		(261,786	)
Financing Activities
Proceeds from the issuance of senior notes		500,000			–			–			500,000
Payments to retire debt		–			–			(505,627	)		(505,627	)
Net increase (decrease) in borrowings under lines of
credit and commercial paper program		(120,000	)		–			1,663			(118,337	)
Net payments on other debt		(9,794	)		–			–			(9,794	)
Debt financing costs		(11,901	)		–			(729	)		(12,630	)
Dividends paid		(47,121	)		–			–			(47,121	)
Issuance of common stock under incentive plans		339			–			–			339
Contribution from noncontrolling interest		–			–			891			891
Transactions with affiliates, net		(123,309	)		(238,252	)		361,561			–
Cash provided by (used in) financing
activities		188,214			(238,252	)		(142,241	)		(192,279	)
Increase (decrease) in cash and cash equivalents		(52,465	)		(12	)		55,092			2,615
Cash and cash equivalents, beginning of
period		54,255			64			6,819			61,138
Cash and cash equivalents, end of period	$	1,790		$	52		$	61,911		$	63,753