Supplemental Consolidating Financial Information (Tables)

9 Months Ended

Sep. 30, 2014

Supplemental Condensed Consolidating Financial Information [Abstract]

Schedule of Condensed Consolidating Statements of Income

Condensed Consolidating Statements of Operations

Three Months Ended September 30,2014

	Parent/Issuer			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenues	$	—		$	742,180		$	—		$	—		$	742,180
Costs, expenses and other
Cost of sales (exclusive of items shown separately below)	2,442			645,672			—			(1,018		)	647,096
Depreciation, depletion and amortization	1,175			103,971			9			—			105,155
Amortization of acquired sales contracts, net	—			(3,013		)	—			—			(3,013		)
Change in fair value of coal derivatives and coal trading activities, net	—			(3,733		)	—			—			(3,733		)
Asset impairment and mine closure costs	—			5,060			—			—			5,060
Selling, general and administrative expenses	19,542			7,427			1,679			(512		)	28,136
Other operating income, net	1,562			(2,942		)	(1,371		)	1,530			(1,221		)
	24,721			752,442			317			—			777,480
Income from investment in subsidiaries	2,005			—			—			(2,005		)	—
Loss from operations	(22,716		)	(10,262		)	(317		)	(2,005		)	(35,300		)
Interest expense, net
Interest expense	(116,742		)	(6,577		)	(1,116		)	26,218			(98,217		)
Interest and investment income	7,872			18,987			1,308			(26,218		)	1,949
	(108,870		)	12,410			192			—			(96,268		)
Income (loss) from continuing operations before income taxes	(131,586		)	2,148			(125		)	(2,005		)	(131,568		)
Benefit from income taxes	(34,368		)	—			18			—			(34,350		)
Net income (loss)	$	(97,218	)	$	2,148		$	(143	)	$	(2,005	)	$	(97,218	)
Total comprehensive income (loss)	$	(99,197	)	$	1,717		$	(143	)	$	(1,574	)	$	(99,197	)

Condensed Consolidating Statements of Operations

Three Months Ended September 30,2013

	Parent/Issuer			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenues	$	—		$	791,269		$	—		$	—		$	791,269
Costs, expenses and other
Cost of sales (exclusive of items shown separately below)	169			688,543			—			—			688,712
Depreciation, depletion and amortization	1,549			104,765			9			—			106,323
Amortization of acquired sales contracts, net	—			(2,568		)	—			—			(2,568		)
Change in fair value of coal derivatives and coal trading activities, net	—			9,753			—			—			9,753
Asset impairment and mine closure costs	57,668			142,729			—			—			200,397
Selling, general and administrative expenses	19,104			8,214			1,482			—			28,800
Other operating income, net	2,345			(7,740		)	—			—			(5,395		)
	80,835			943,696			1,491			—			1,026,022
Loss from investment in subsidiaries	(61,537		)	—			—			61,537			—
Loss from operations	(142,372		)	(152,427		)	(1,491		)	61,537			(234,753		)
Interest expense, net
Interest expense	(114,536		)	(6,222		)	(1,070		)	26,204			(95,624		)
Interest and investment income	6,606			18,975			1,320			(26,204		)	697
	(107,930		)	12,753			250			—			(94,927		)
Loss from continuing operations before income taxes	(250,302		)	(139,674		)	(1,241		)	61,537			(329,680		)
Provision for (benefit from) income taxes	(121,939		)	—			26			—			(121,913		)
Loss from continuing operations	(128,363		)	(139,674		)	(1,267		)	61,537			(207,767		)
Income from discontinued operations, net of tax	—			79,404			—			—			79,404
Net loss	$	(128,363	)	$	(60,270	)	$	(1,267	)	$	61,537		$	(128,363	)
Total comprehensive loss	$	(125,996	)	$	(59,241	)	$	(1,267	)	$	60,508		$	(125,996	)

Condensed Consolidating Statements of Operations

Nine Months Ended September 30,2014

	Parent/Issuer			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenues	$	—		$	2,191,927		$	—		$	—		$	2,191,927
Costs, expenses and other
Cost of sales (exclusive of items shown separately below)	9,378			1,948,918			—			(2,749		)	1,955,547
Depreciation, depletion and amortization	3,993			308,022			27			—			312,042
Amortization of acquired sales contracts, net	—			(9,948		)	—			—			(9,948		)
Change in fair value of coal derivatives and coal trading activities, net	—			(5,811		)	—			—			(5,811		)
Asset impairment costs	1,512			5,060			—			—			6,572
Selling, general and administrative expenses	61,216			22,540			4,971			(1,524		)	87,203
Other operating income, net	1,272			(10,869		)	(4,127		)	4,273			(9,451		)
	77,371			2,257,912			871			—			2,336,154
Loss from investment in subsidiaries	(30,839		)	—			—			30,839			—
Loss from operations	(108,210		)	(65,985		)	(871		)	30,839			(144,227		)
Interest expense, net
Interest expense	(346,481		)	(19,466		)	(3,258		)	76,557			(292,648		)
Interest and investment income	23,598			54,979			3,808			(76,557		)	5,828
	(322,883		)	35,513			550			—			(286,820		)
Loss from continuing operations before income taxes	(431,093		)	(30,472		)	(321		)	30,839			(431,047		)
Provision for (benefit from) income taxes	(112,876		)	—			46			—			(112,830		)
Net loss	$	(318,217	)	$	(30,472	)	$	(367	)	$	30,839		$	(318,217	)
Total comprehensive loss	$	(324,403	)	$	(33,062	)	$	(367	)	$	33,429		$	(324,403	)

Condensed Consolidating Statements of Operations

Nine Months Ended September 30,2013

	Parent/Issuer			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenues	$	—		$	2,294,971		$	—		$	—		$	2,294,971
Costs, expenses and other
Cost of sales (exclusive of items shown separately below)	4,881			1,989,772			—			—			1,994,653
Depreciation, depletion and amortization	4,430			323,144			27			—			327,601
Amortization of acquired sales contracts, net	—			(7,587		)	—			—			(7,587		)
Change in fair value of coal derivatives and coal trading activities, net	—			2,053			—			—			2,053
Asset impairment costs	78,150			142,729			—			—			220,879
Selling, general and administrative expenses	63,006			28,978			4,327			—			96,311
Other operating income, net	(4,663		)	(10,704		)	(1,109		)	—			(16,476		)
	145,804			2,468,385			3,245			—			2,617,434
Income from investment in subsidiaries	(42,199		)	—			—			42,199			—
Loss from operations	(188,003		)	(173,414		)	(3,245		)	42,199			(322,463		)
Interest expense, net
Interest expense	(336,310		)	(18,502		)	(3,170		)	72,528			(285,454		)
Interest and investment income	22,917			49,986			4,374			(72,528		)	4,749
	(313,393		)	31,484			1,204			—			(280,705		)
Loss from continuing operations before income taxes	(501,396		)	(141,930		)	(2,041		)	42,199			(603,168		)
Provision for (benefit from) income taxes	(230,778		)	—			44			—			(230,734		)
Loss from continuing operations	(270,618		)	(141,930		)	(2,085		)	42,199			(372,434		)
Income from discontinued operations, net of tax	—			101,816			—			—			101,816
Net loss	$	(270,618	)	$	(40,114	)	$	(2,085	)	$	42,199		$	(270,618	)
Total comprehensive loss	$	(262,717	)	$	(39,175	)	$	(2,085	)	$	41,260		$	(262,717	)

Schedule of Condensed Consolidating Balance Sheets

	Parent/Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
Assets	$ 628,251
Cash and cash equivalents	$	633,822	$	150,359	$	11,753	$	—		$	795,934
Short term investments	249,067		—		—		—			249,067
Receivables	24,438		13,496		212,813		(4,609		)	246,138
Inventories	—		209,659		—		—			209,659
Other	83,939		40,717		263		—			124,919
Total current assets	991,266		414,231		224,829		(4,609		)	1,625,717
Property, plant and equipment, net	10,120		6,521,641		10		347			6,532,118
Investment in subsidiaries	7,641,207		—		—		(7,641,207		)	—
Intercompany receivables	—		2,095,207		—		(2,095,207		)	—
Note receivable from Arch Western	675,000		—		—		(675,000		)	—
Other	145,757		315,065		125		—			460,947
Total other assets	8,461,964		2,410,272		125		(10,411,414		)	460,947
Total assets	$	9,463,350	$	9,346,144	$	224,964	$	(10,415,676	)	$	8,618,782
Liabilities and Stockholders’ Equity
Accounts payable	$	11,093	$	162,701	$	41	$	—		$	173,835
Accrued expenses and other current liabilities	118,162		228,126		1,030		(4,609		)	342,709
Current maturities of debt	22,068		7,909		—		—			29,977
Total current liabilities	151,323		398,736		1,071		(4,609		)	546,521
Long-term debt	5,088,466		37,720		—		—			5,126,186
Intercompany payables	1,898,152		—		197,055		(2,095,207		)	—
Note payable to Arch Coal	—		675,000		—		(675,000		)	—
Asset retirement obligations	1,056		399,879		—		—			400,935
Accrued pension benefits	3,151		12,143		—		—			15,294
Accrued postretirement benefits other than pension	4,500		34,627		—		—			39,127
Accrued workers’ compensation	29,683		48,837		—		—			78,520
Deferred income taxes	296,639		—		—		—			296,639
Other noncurrent liabilities	56,330		124,509		324		—			181,163
Total liabilities	7,529,300		1,731,451		198,450		(2,774,816		)	6,684,385
Stockholders’ equity	1,934,050		7,614,693		26,514		(7,640,860		)	1,934,397
Total liabilities and stockholders’ equity	$	9,463,350	$	9,346,144	$	224,964	$	(10,415,676	)	$	8,618,782

Condensed Consolidating Balance Sheets

December 31, 2013

	Parent/Issuer		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
Assets
Cash and cash equivalents	$	799,333	$	100,418		$	11,348	$	—		$	911,099
Short term investments	248,414		—			—		—			248,414
Receivables	14,177		23,018			197,015		(4,637		)	229,573
Inventories	—		264,161			—		—			264,161
Other	84,401		43,617			806		—			128,824
Total current assets	1,146,325		431,214			209,169		(4,637		)	1,782,071
Property, plant and equipment, net	24,851		6,709,398			37		—			6,734,286
Investment in subsidiaries	7,709,201		—			—		(7,709,201		)	—
Intercompany receivables	—		1,921,331			—		(1,921,331		)	—
Note receivable from Arch Western	675,000		—			—		(675,000		)	—
Other	162,287		311,463			86		—			473,836
Total other assets	8,546,488		2,232,794			86		(10,305,532		)	473,836
Total assets	$	9,717,664	$	9,373,406		$	209,292	$	(10,310,169	)	$	8,990,193
Liabilities and Stockholders’ Equity
Accounts payable	$	17,781	$	158,224		$	137	$	—		$	176,142
Accrued expenses and other current liabilities	53,779		228,664			781		(4,637		)	278,587
Current maturities of debt	28,882		4,611			—		—			33,493
Total current liabilities	100,442		391,499			918		(4,637		)	488,222
Long-term debt	5,099,833		18,169			—		—			5,118,002
Intercompany payables	1,740,236		—			181,095		(1,921,331		)	—
Note payable to Arch Coal	—		675,000			—		(675,000		)	—
Asset retirement obligations	1,095		401,618			—		—			402,713
Accrued pension benefits	7,797		(686		)	—		—			7,111
Accrued postretirement benefits other than pension	12,079		27,176			—		—			39,255
Accrued workers’ compensation	21,546		56,516			—		—			78,062
Deferred income taxes	413,546		—			—		—			413,546
Other noncurrent liabilities	67,841		121,794			398		—			190,033
Total liabilities	7,464,415		1,691,086			182,411		(2,600,968		)	6,736,944
Stockholders’ equity	2,253,249		7,682,320			26,881		(7,709,201		)	2,253,249
Total liabilities and stockholders’ equity	$	9,717,664	$	9,373,406		$	209,292	$	(10,310,169	)	$	8,990,193

Schedule of Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows

Nine Months Ended September 30,2014

	Parent/Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
	(In thousands)
Cash provided by (used in) operating activities	$	(342,497	)	$	360,036		$	(15,549	)	$	—	$	1,990
Investing Activities
Capital expenditures	(1,195		)	(117,506		)	—			—		(118,701		)
Minimum royalty payments	—			(3,604		)	—			—		(3,604		)
Proceeds from disposals and divestitures	46,634			4,337			—			—		50,971
Purchases of marketable securities	(181,546		)	—			—			—		(181,546		)
Proceeds from sale or maturity of marketable securities and other investments	178,293			—			—			—		178,293
Investments in and advances to affiliates	(2,047		)	(11,346		)	—			—		(13,393		)
Cash provided by (used in) investing activities	40,139			(128,119		)	—			—		(87,980		)
Financing Activities
Payments on term loan	(14,625		)	—			—			—		(14,625		)
Net payments on other debt	(6,814		)	(3,373		)	—			—		(10,187		)
Debt financing costs	(2,219		)	—			—			—		(2,219		)
Dividends paid	(2,123		)	—			—			—		(2,123		)
Other	(15		)	—			(6		)	—		(21		)
Transactions with affiliates, net	162,643			(178,603		)	15,960			—		—
Cash provided by (used in) financing activities	136,847			(181,976		)	15,954			—		(29,175		)
Increase (decrease) in cash and cash equivalents	(165,511		)	49,941			405			—		(115,165		)
Cash and cash equivalents, beginning of period	799,333			100,418			11,348			—		911,099
Cash and cash equivalents, end of period	$	633,822		$	150,359		$	11,753		$	—	$	795,934

Condensed Consolidating Statements of Cash Flows

Nine Months Ended September 30,2013

	Parent/Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Cash provided by (used in) operating activities	$	(22,206	)	$	153,868		$	54,930		$	—		$	186,592
Investing Activities
Capital expenditures	(2,488		)	(220,680		)	—			—			(223,168		)
Minimum royalty payments	—			(10,901		)	—			—			(10,901		)
Proceeds from sale-leaseback transactions	—			34,919			—			—			34,919
Proceeds from disposals and divestitures	—			431,462			—			—			431,462
Purchases of short term investments	(85,418		)	—			—			—			(85,418		)
Proceeds from sales of short term investments	67,255			—			—			—			67,255
Investments in and advances to affiliates	(4,016		)	(7,492		)	—			384			(11,124		)
Change in restricted cash	3,453			—			—			—			3,453
Cash provided by (used in) investing activities	(21,214		)	227,308			—			384			206,478
Financing Activities
Contributions from parent	—			384			—			(384		)	—
Payments on term loan	(12,375		)	—			—			—			(12,375		)
Net payments on other debt	(12,700		)	(384		)	—			—			(13,084		)
Dividends paid	(19,105		)	—			—			—			(19,105		)
Transactions with affiliates, net	437,532			(381,234		)	(56,298		)	—			—
Cash provided by (used in) financing activities	393,352			(381,234		)	(56,298		)	(384		)	(44,564		)
Decrease in cash and cash equivalents	349,932			(58		)	(1,368		)	—			348,506
Cash and cash equivalents, beginning of period	671,313			100,468			12,841			—			784,622
Cash and cash equivalents, end of period	$	1,021,245		$	100,410		$	11,473		$	—		$	1,133,128