Supplemental Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 30, 2012

Supplemental Condensed Consolidating Financial Information [Abstract]

Schedule Of Condensed Consolidating Statements Of Operations

Condensed Consolidating Statements of Operations

Three Months Ended September 30,2012

	Parent/Issuer			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenues	$	—		$	1,087,618		$	—		$	—		$	1,087,618
Costs, expenses and other
Cost of sales	2,434			922,455			—			(28,080		)	896,809
Depreciation, depletion and amortization	1,400			125,429			9			—			126,838
Amortization of acquired sales contracts, net	—			(4,093		)	—			—			(4,093		)
Legal contingencies	—			(79,532		)	—			—			(79,532		)
Mine closure and asset impairment costs	—			(2,194		)	—			—			(2,194		)
Goodwill impairment	—			—			—			—			—
Selling, general and administrative expenses	22,050			11,353			1,783			(1,920		)	33,266
Change in fair value of coal derivatives and coal trading activities, net	—			5,840			—			—			5,840
Other operating (income) expense, net	(11,051		)	(44,137		)	(89		)	30,001			(25,276		)
	14,833			935,121			1,703			1			951,658
Income from investment in subsidiaries	159,653			—			—			(159,653		)	—
Income (loss) from operations	144,820			152,497			(1,703		)	(159,654		)	135,960
Interest expense, net:
Interest expense	(91,589		)	(7,021		)	(649		)	23,549			(75,710		)
Interest income	8,478			14,584			1,946			(23,549		)	1,459
	(83,111		)	7,563			1,297			—			(74,251		)
Other non-operating expense
Bridge financing costs related to ICG	—			—			—			—			—
Net loss resulting from early retirement of ICG debt	—			—			—			—			—
	—			—			—			—			—
Income (loss) before income taxes	61,709			160,060			(406		)	(159,654		)	61,709
Provision for income taxes	15,958			—			—			—			15,958
Net income (loss)	45,751			160,060			(406		)	(159,654		)	45,751
Less: Net income attributable to noncontrolling interest	—			—			—			—			—
Net income (loss) attributable to Arch Coal, Inc.	$	45,751		$	160,060		$	(406	)	$	(159,654	)	$	45,751
Total comprehensive income (loss)	$	45,494		$	158,864		$	(406	)	$	(159,653	)	$	44,299

Condensed Consolidating Statements of Operations

Nine Months Ended September 30,2012

	Parent/Issuer			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenues	$	—		$	3,190,807		$	—		$	—		$	3,190,807
Costs, expenses and other
Cost of sales	7,691			2,696,114			—			(74,866		)	2,628,939
Depreciation, depletion and amortization	3,960			395,688			24			—			399,672
Amortization of acquired sales contracts, net	—			(22,561		)	—			—			(22,561		)
Legal contingencies	—			(79,532		)	—			—			(79,532		)
Mine closure and asset impairment costs	—			523,568			—			—			523,568
Goodwill impairment	—			115,791			—			—			115,791
Selling, general and administrative expenses	62,468			36,388			5,871			(5,422		)	99,305
Change in fair value of coal derivatives and coal trading activities, net	—			(29,827		)	—			—			(29,827		)
Other operating (income) expense, net	(7,692		)	(105,753		)	(12,449		)	80,289			(45,605		)
	66,427			3,529,876			(6,554		)	1			3,589,750
Income from investment in subsidiaries	(316,041		)	—			—			316,041			—
Income (loss) from operations	(382,468		)	(339,069		)	6,554			316,040			(398,943		)
Interest expense, net:
Interest expense	(263,428		)	(27,815		)	(2,382		)	64,415			(229,210		)
Interest income	19,615			42,557			5,811			(64,415		)	3,568
	(243,813		)	14,742			3,429			—			(225,642		)
Other non-operating expense
Bridge financing costs related to ICG	—			—			—			—			—
Net loss resulting from early retirement of debt	(17,349		)	(1,693		)	—			—			(19,042		)
	(17,349		)	(1,693		)	—			—			(19,042		)
Income (loss) before income taxes	(643,630		)	(326,020		)	9,983			316,040			(643,627		)
Benefit from income taxes	(256,944		)	—			1,581			—			(255,363		)
Net income (loss)	(386,686		)	(326,020		)	8,402			316,040			(388,264		)
Less: Net income attributable to noncontrolling interest	(268		)	—			—			—			(268		)
Net income (loss) attributable to Arch Coal, Inc.	$	(386,954	)	$	(326,020	)	$	8,402		$	316,040		$	(388,532	)
Total comprehensive income (loss)	$	(385,185	)	$	(324,785	)	$	8,402		$	316,044		$	(385,524	)

Condensed Consolidating Statements of Operations

Three Months Ended September 30,2011

	Parent/Issuer			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenues	$	—		$	1,198,673		$	—		$	—		$	1,198,673
Costs, expenses and other
Cost of sales	7,439			971,319			—			(25,908		)	952,850
Depreciation, depletion and amortization	720			138,827			—			—			139,547
Amortization of acquired sales contracts, net	—			(12,698		)	—			—			(12,698		)
Mine closure and asset impairment costs	—			—			—			—			—
Goodwill impairment	—			—			—			—			—
Selling, general and administrative expenses	20,261			13,752			1,058			(1,796		)	33,275
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	(6,062		)	(25,314		)	61			27,704			(3,611		)
	27,052			1,094,246			1,119			—			1,122,417
Income from investment in subsidiaries	105,198			—			—			(105,198		)	—
Income (loss) from operations	78,146			104,427			(1,119		)	(105,198		)	76,256
Interest expense, net:
Interest expense	(84,044		)	(11,060		)	(541		)	17,951			(77,694		)
Interest income	3,592			14,023			1,176			(17,951		)	840
	(80,452		)	2,963			635			—			(76,854		)
Other non-operating expense
Bridge financing costs related to ICG	—			—			—			—			—
Net loss resulting from early retirement of debt	—			(1,708		)	—			—			(1,708		)
	—			(1,708		)	—			—			(1,708		)
Income (loss) before income taxes	(2,306		)	105,682			(484		)	(105,198		)	(2,306		)
Benefit from income taxes	(11,427		)	—			—			—			(11,427		)
Net income (loss)	9,121			105,682			(484		)	(105,198		)	9,121
Less: Net income attributable to noncontrolling interest	(231		)	—			—			—			(231		)
Net income (loss) attributable to Arch Coal, Inc.	$	8,890		$	105,682		$	(484	)	$	(105,198	)	$	8,890
Total comprehensive income (loss)	$	6,119		$	101,255		$	(484	)	$	(105,198	)	$	1,692

Condensed Consolidating Statements of Operations

Nine Months Ended September 30,2011

	Parent/Issuer			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue	$	—		$	3,057,139		$	—		$	—		$	3,057,139
Costs, expenses and other
Cost of sales	15,658			2,382,406			—			(75,940		)	2,322,124
Depreciation, depletion and amortization	2,051			318,269			—			—			320,320
Amortization of acquired sales contracts, net	—			(5,492		)	—			—			(5,492		)
Mine closure and asset impairment costs	—			7,316			—			—			7,316
Goodwill impairment	—			—			—			—			—
Selling, general and administrative expenses	59,197			36,441			2,439			(5,328		)	92,749
Change in fair value of coal derivatives and coal trading activities, net	—			9,248			—			—			9,248
Acquisition and transition costs related to ICG	46,044			—			—			—			46,044
Other operating (income) expense, net	(15,460		)	(74,928		)	102			81,268			(9,018		)
	107,490			2,673,260			2,541			—			2,783,291
Income from investment in subsidiaries	388,253			—			—			(388,253		)	—
Income (loss) from operations	280,763			383,879			(2,541		)	(388,253		)	273,848
Interest expense, net:
Interest expense	(172,699		)	(34,858		)	(1,535		)	54,569			(154,523		)
Interest income	11,644			40,576			4,690			(54,569		)	2,341
	(161,055		)	5,718			3,155			—			(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 (loss) before income taxes	70,218			387,639			614			(388,253		)	70,218
Benefit from income taxes	(1,407		)	—			—			—			(1,407		)
Net income (loss)	71,625			387,639			614			(388,253		)	71,625
Less: Net income attributable to noncontrolling interest	(822		)	—			—			—			(822		)
Net income (loss) attributable to Arch Coal, Inc.	$	70,803		$	387,639		$	614		$	(388,253	)	$	70,803
Total comprehensive income (loss)	$	72,511		$	379,390		$	614		$	(388,253	)	$	64,262

Schedule Of Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheets

September 30, 2012

	Parent/Issuer			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Assets
Cash and cash equivalents	$	313,548		$	225,431	$	11,777		$	—		$	550,756
Restricted cash	3,450			—		—			—			3,450
Short term investments	99,359			—		—			—			99,359
Receivables	52,081			24,672		276,992			(4,997		)	348,748
Inventories	—			391,526		—			—			391,526
Other	104,507			80,901		439			—			185,847
Total current assets	572,945			722,530		289,208			(4,997		)	1,579,686
Property, plant and equipment, net	28,622			7,343,360		81			—			7,372,063
Investment in subsidiaries	8,503,465			—		—			(8,503,465		)	—
Intercompany receivables	(1,399,215		)	1,561,073		(161,858		)	—			—
Note receivable from Arch Western	675,000			—		—			(675,000		)	—
Other	184,982			799,033		90			—			984,105
Total other assets	7,964,232			2,360,106		(161,768		)	(9,178,465		)	984,105
Total assets	$	8,565,799		$	10,425,996	$	127,521		$	(9,183,462	)	$	9,935,854
Liabilities and Stockholders’ Equity
Accounts payable	$	35,157		$	269,203	$	82		$	—		$	304,442
Accrued expenses and other current liabilities	92,337			269,834		1,772			(4,997		)	358,946
Current maturities of debt and short-term borrowings	14,832			863		100,000			—			115,695
Total current liabilities	142,326			539,900		101,854			(4,997		)	779,083
Long-term debt	4,463,386			2,059		—			0			4,465,445
Note payable to Arch Coal	—			675,000		—			(675,000		)	—
Asset retirement obligations	790			425,254		—			—			426,044
Accrued pension benefits	21,125			24,035		—			—			45,160
Accrued postretirement benefits other than pension	11,733			29,328		—			—			41,061
Accrued workers’ compensation	28,129			57,122		—			—			85,251
Deferred income taxes	665,414			80,665		—			—			746,079
Other noncurrent liabilities	67,629			114,557		278			—			182,464
Total liabilities	5,400,532			1,947,920		102,132			(679,997		)	6,770,587
Redeemable noncontrolling interest	—			—		—			—			—
Stockholders’ equity	3,165,267			8,478,076		25,389			(8,503,465		)	3,165,267
Total liabilities and stockholders’ equity	$	8,565,799		$	10,425,996	$	127,521		$	(9,183,462	)	$	9,935,854

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		$	75,425	$	1,349		$	—		$	138,149
Restricted cash	10,322			—		—			—			10,322
Receivables	65,187			27,001		378,608			(1,617		)	469,179
Inventories	—			377,490		—			—			377,490
Other	81,732			105,282		620			—			187,634
Total current assets	218,616			585,198		380,577			(1,617		)	1,182,774
Property, plant and equipment, net	21,241			7,918,816		9,093			—			7,949,150
Investment in subsidiaries	8,805,731			—		—			(8,805,731		)	—
Intercompany receivables	(1,457,864		)	1,716,424		(258,560		)	—			—
Note receivable from Arch Western	225,000			—		—			(225,000		)	—
Other	184,266			897,567		202			—			1,082,035
Total other assets	7,757,133			2,613,991		(258,358		)	(9,030,731		)	1,082,035
Total assets	$	7,996,990		$	11,118,005	$	131,312		$	(9,032,348	)	$	10,213,959
Liabilities and Stockholders’ Equity
Accounts payable	$	25,409		$	358,347	$	26		$	—		$	383,782
Accrued expenses and other current liabilities	75,133			282,434		85			(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			642,768		106,411			(1,617		)	1,020,668
Long-term debt	3,308,674			453,623		—			0			3,762,297
Note payable to Arch Coal	—			225,000		—			(225,000		)	—
Asset retirement obligations	877			445,907		—			—			446,784
Accrued pension benefits	19,198			29,046		—			—			48,244
Accrued postretirement benefits other than pension	13,843			28,466		—			—			42,309
Accrued workers’ compensation	17,272			54,676		—			—			71,948
Deferred income taxes	621,483			355,270		—			—			976,753
Other noncurrent liabilities	152,963			102,335		84			—			255,382
Total liabilities	4,407,416			2,337,091		106,495			(226,617		)	6,624,385
Redeemable noncontrolling interest	11,534			—		—			—			11,534
Stockholders’ equity	3,578,040			8,780,914		24,817			(8,805,731		)	3,578,040
Total liabilities and stockholders’ equity	$	7,996,990		$	11,118,005	$	131,312		$	(9,032,348	)	$	10,213,959

Schedule Of Condensed Consolidating Statements Of Cash Flows

Condensed Consolidating Statements of Cash Flows

Nine Months Ended September 30,2012

	Parent/Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Cash provided by (used in) operating activities	$	(500,331	)	$	771,047		$	85,679		$	—		$	356,395
Investing Activities
Change in restricted cash	6,872			—			—			—			6,872
Capital expenditures	(4,150		)	(299,818		)	—			—			(303,968		)
Proceeds from dispositions of property, plant and equipment	—			1,127			21,497			—			22,624
Investments in and advances to affiliates	(5,138		)	(9,082		)	—			1,535			(12,685		)
Purchases of short term investments	(99,628		)	—			—			—			(99,628		)
Purchase of noncontrolling interest	(17,500		)	—			—			—			(17,500		)
Additions to prepaid royalties	—			(9,192		)	—			—			(9,192		)
Cash used in investing activities	(119,544		)	(316,965		)	21,497			1,535			(413,477		)
Financing Activities
Contributions from parent	—			1,535						(1,535		)	—
Proceeds from term note	1,386,000			—			—			—			1,386,000
Payments to retire debt	—			(452,806		)	—			—			(452,806		)
Net decrease in borrowings under lines of credit and commercial paper program	(381,300		)	—			—			—			(381,300		)
Payments on term note	(3,500		)	—			—			—			(3,500		)
Net payments on other debt	(13,078		)	—			—			—			(13,078		)
Debt financing costs	(34,640		)	—			(46		)	—			(34,686		)
Dividends paid	(36,072		)	—			—			—			(36,072		)
Issuance of common stock under incentive plans	5,131			—			—			—			5,131
Transactions with affiliates, net	(50,493		)	147,195			(96,702		)	—			—
Cash provided by (used in) financing activities	872,048			(304,076		)	(96,748		)	(1,535		)	469,689
Increase in cash and cash equivalents	252,173			150,006			10,428			—			412,607
Cash and cash equivalents, beginning of period	61,375			75,425			1,349			—			138,149
Cash and cash equivalents, end of period	$	313,548		$	225,431		$	11,777		$	—		$	550,756

Condensed Consolidating Statements of Cash Flows

Nine Months Ended September 30,2011

	Parent/Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Cash provided by (used in) operating activities	$	(444,664	)	$	896,941		$	19,090		$	—		$	471,367
Investing Activities
Acquisition of ICG, net of cash acquired	(2,894,339		)	—			—			—			(2,894,339		)
Change in restricted cash	(5,939		)	—			—			—			(5,939		)
Capital expenditures	(5,137		)	(210,660		)	(102		)	—			(215,899		)
Proceeds from dispositions of property, plant and equipment	—			25,133			—			—			25,133
Investments in and advances to affiliates	(777,341		)	(29,872		)	—			750,386			(56,827		)
Additions to prepaid royalties	—			(26,135		)	—			—			(26,135		)
Cash used in investing activities	(3,682,756		)	(241,534		)	(102		)	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 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		)	(16		)	(8		)	—			(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			(724,238		)	(18,668		)	—			—
Cash provided by (used in) financing activities	4,171,485			(634,868		)	(18,676		)	(750,386		)	2,767,555
Increase in cash and cash equivalents	44,065			20,539			312			—			64,916
Cash and cash equivalents, beginning of period	13,713			79,880			—			—			93,593
Cash and cash equivalents, end of period	$	57,778		$	100,419		$	312		$	—		$	158,509