Supplemental Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2016

Supplemental Condensed Consolidating Financial Information [Abstract]

Schedule of Condensed Consolidating Statements of Income

Condensed Consolidating Statements of Operations

Three Months Ended March 31,2016

	Parent/Issuer			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenues	$	—		$	428,106		$	—		$	—		$	428,106
Costs, expenses and other
Cost of sales (exclusive of items shown separately below)	2,186			417,677			—			(547		)	419,316
Depreciation, depletion and amortization	755			62,944			—			—			63,699
Amortization of acquired sales contracts, net	—			(833		)	—			—			(833		)
Change in fair value of coal derivatives and coal trading activities, net	—			1,210			—			—			1,210
Asset impairment and mine closure costs	3,229			82,291			—			—			85,520
Selling, general and administrative expenses	13,540			5,382			1,272			(368		)	19,826
Other operating (income) expense, net	(1,098		)	(1,151		)	(886		)	915			(2,220		)
	18,612			567,520			386			—			586,518
Loss from investment in subsidiaries	(123,988		)	—			—			123,988			—
Loss from operations	(142,600		)	(139,414		)	(386		)	123,988			(158,412		)
Interest expense, net
Interest expense (contractual interest of $98,565 in 2016)	(66,239		)	(6,365		)	(2,229		)	30,382			(44,451		)
Interest and investment income	7,110			23,292			1,118			(30,382		)	1,138
	(59,129		)	16,927			(1,111		)	—			(43,313		)
Expenses related to proposed debt restructuring	(2,213		)	—			—			—			(2,213		)
Reorganization items, net	(3,875		)	—			—			—			(3,875		)
	(6,088		)	—			—			—			(6,088		)
Income (loss) from continuing operations before income taxes	(207,817		)	(122,487		)	(1,497		)	123,988			(207,813		)
Provision for (benefit from) income taxes	(1,115		)	—			4			—			(1,111		)
Net income (loss)	$	(206,702	)	$	(122,487	)	$	(1,501	)	$	123,988		$	(206,702	)
Total comprehensive income (loss)	$	(205,842	)	$	(123,489	)	$	(1,501	)	$	124,990		$	(205,842	)

Arch Coal, Inc. and Subsidiaries

(Debtor-in-Possession)

Condensed Consolidating Statements of Operations

Three Months Ended March 31,2015

	Parent/Issuer			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenues	$	—		$	677,005		$	—		$	—		$	677,005
Costs, expenses and other
Cost of sales (exclusive of items shown separately below)	7,470			555,686			—			(834		)	562,322
Depreciation, depletion and amortization	1,060			103,812			2			—			104,874
Amortization of acquired sales contracts, net	—			(3,390		)	—			—			(3,390		)
Change in fair value of coal derivatives and coal trading activities, net	—			1,220			—			—			1,220
Selling, general and administrative expenses	15,439			6,243			1,448			(525		)	22,605
Other operating (income) expense, net	3,700			5,278			(1,251		)	1,359			9,086
	27,669			668,849			199			—			696,717
Income from investment in subsidiaries	21,050			—			—			(21,050		)	—
Loss from operations	(6,619		)	8,156			(199		)	(21,050		)	(19,712		)
Interest expense, net
Interest expense	(118,056		)	(6,763		)	(1,275		)	26,842			(99,252		)
Interest and investment income	8,072			19,774			1,369			(26,842		)	2,373
	(109,984		)	13,011			94			—			(96,879		)
Income (loss) from continuing operations before income taxes	(116,603		)	21,167			(105		)	(21,050		)	(116,591		)
Provision for (benefit from) income taxes	(3,408		)	—			12			—			(3,396		)
Net income (loss)	$	(113,195	)	$	21,167		$	(117	)	$	(21,050	)	$	(113,195	)
Total comprehensive income (loss)	$	(109,591	)	$	24,407		$	(117	)	$	(24,290	)	$	(109,591	)

Schedule of Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheets

March 31, 2016

	Parent/Issuer			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
Assets
Cash and cash equivalents	$	283,309		$	100,432	$	11,657	$	—		$	395,398
Short term investments	198,788			—		—		—			198,788
Restricted cash	—			—		109,650		—			109,650
Receivables	12,756			394		120,359		(4,915		)	128,594
Inventories	—			195,987		—		—			195,987
Other	26,272			29,886		2,555		—			58,713
Total current assets	521,125			326,699		244,221		(4,915		)	1,087,130
Property, plant and equipment, net	7,036			3,479,653		—		420			3,487,109
Investment in subsidiaries	4,729,318			—		—		(4,729,318		)	—
Intercompany receivables	—			2,283,438		—		(2,283,438		)	—
Note receivable from Arch Western	675,000			—		—		(675,000		)	—
Other	38,578			240,872		1,721		—			281,171
Total other assets	5,442,896			2,524,310		1,721		(7,687,756		)	281,171
Total assets	$	5,971,057		$	6,330,662	$	245,942	$	(7,692,251	)	$	4,855,410
Liabilities and Stockholders’ Deficit
Liabilities not subject to compromise
Accounts payable	$	22,369		$	48,446	$	8	$	—		$	70,823
Accrued expenses and other current liabilities	26,357			80,396		752		(4,915		)	102,590
Current maturities of debt	—			—		—		—			—
Total current liabilities	48,726			128,842		760		(4,915		)	173,413
Long-term debt	—			—		—		—			—
Intercompany payables	2,062,135			—		221,302		(2,283,437		)	—
Note payable to Arch Coal	—			675,000		—		(675,000		)	—
Asset retirement obligations	1,024			400,545		—		—			401,569
Accrued pension benefits	4,115			16,531		—		—			20,646
Accrued postretirement benefits other than pension	75,226			14,553		—		—			89,779
Accrued workers’ compensation	9,500			104,282		—		—			113,782
Other noncurrent liabilities	6,502			11,366		155		—			18,023
Total liabilities not subject to compromise	2,207,228			1,351,119		222,217		(2,963,352		)	817,212
Liabilities subject to compromise	5,213,376			273,950							5,487,326
Total liabilities	7,420,604			1,625,069		222,217		(2,963,352		)	6,304,538
Stockholders’ equity (deficit)	(1,449,547		)	4,705,593		23,725		(4,728,899		)	(1,449,128		)
Total liabilities and stockholders’ deficit	$	5,971,057		$	6,330,662	$	245,942	$	(7,692,251	)	$	4,855,410

Arch Coal, Inc. and Subsidiaries

(Debtor-in-Possession)

Condensed Consolidating Balance Sheets

December 31, 2015

	Parent/Issuer			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
Assets
Cash and cash equivalents	$	337,646		$	100,428	$	12,707	$	—		$	450,781
Short term investments	200,192			—		—		—			200,192
Restricted cash	—			—		97,542		—			97,542
Receivables	12,463			3,153		124,581		(4,430		)	135,767
Inventories	—			196,720		—		—			196,720
Other	18,160			38,794		969		—			57,923
Total current assets	568,461			339,095		235,799		(4,430		)	1,138,925
Property, plant and equipment, net	7,747			3,610,869		—		413			3,619,029
Investment in subsidiaries	4,887,905			—		—		(4,887,905		)	—
Intercompany receivables	—			2,253,312		—		(2,253,312		)	—
Note receivable from Arch Western	675,000			—		—		(675,000		)	—
Other	39,302			243,806		819		—			283,927
Total other assets	5,602,207			2,497,118		819		(7,816,217		)	283,927
Total assets	$	6,178,415		$	6,447,082	$	236,618	$	(7,820,234	)	$	5,041,881
Liabilities and Stockholders’ Deficit
Accounts payable	$	8,495		$	119,633	$	3	$	—		$	128,131
Accrued expenses and other current liabilities	162,268			170,575		1,037		(4,430		)	329,450
Current maturities of debt	5,031,603			10,750		—		—			5,042,353
Total current liabilities	5,202,366			300,958		1,040		(4,430		)	5,499,934
Long-term debt	—			30,953		—		—			30,953
Intercompany payables	2,043,308			—		210,005		(2,253,313		)	—
Note payable to Arch Coal	—			675,000		—		(675,000		)	—
Asset retirement obligations	1,005			395,654		—		—			396,659
Accrued pension benefits	12,390			14,983		—		—			27,373
Accrued postretirement benefits other than pension	79,826			19,984		—		—			99,810
Accrued workers’ compensation	24,247			88,023		—		—			112,270
Other noncurrent liabilities	59,976			58,847		348		—			119,171
Total liabilities	7,423,118			1,584,402		211,393		(2,932,743		)	6,286,170
Stockholders’ equity (deficit)	(1,244,703		)	4,862,680		25,225		(4,887,491		)	(1,244,289		)
Total liabilities and stockholders’ deficit	$	6,178,415		$	6,447,082	$	236,618	$	(7,820,234	)	$	5,041,881

Schedule of Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows

Three Months Ended March 31,2016

	Parent/Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
	(In thousands)
Cash provided by (used in) operating activities	$	(56,374	)	$	43,335		$	2,941		$	—	$	(10,098	)
Investing Activities
Capital expenditures	(22		)	(5,904		)	—			—		(5,926		)
Additions to prepaid royalties	—			(71		)	—			—		(71		)
Purchases of marketable securities	(55,132		)	—			—			—		(55,132		)
Proceeds from sale or maturity of marketable securities and other investments	56,134			—			—			—		56,134
Investments in and advances to affiliates	—			(2,156		)	—			—		(2,156		)
Withdrawals (deposits) of restricted cash	—			—			(12,108		)	—		(12,108		)
Cash provided by (used) in investing activities	980			(8,131		)	(12,108		)	—		(19,259		)
Financing Activities
Net payments on other debt	(2,658		)	(2,752		)	—			—		(5,410		)
Expenses related to proposed debt restructuring	(2,213		)	—			—			—		(2,213		)
Debt financing costs	(15,222		)	—			(3,181		)	—		(18,403		)
Transactions with affiliates, net	21,150			(32,448		)	11,298			—		—
Cash provided by (used in) financing activities	1,057			(35,200		)	8,117			—		(26,026		)
Increase (decrease) in cash and cash equivalents	(54,337		)	4			(1,050		)	—		(55,383		)
Cash and cash equivalents, beginning of period	337,646			100,428			12,707			—		450,781
Cash and cash equivalents, end of period	$	283,309		$	100,432		$	11,657		$	—	$	395,398

Arch Coal, Inc. and Subsidiaries

(Debtor-in-Possession)

Condensed Consolidating Statements of Cash Flows

Three Months Ended March 31,2015

	Parent/Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
	(In thousands)
Cash provided by (used in) operating activities	$	(114,542	)	$	96,944		$	13,325		$	—	$	(4,273	)
Investing Activities
Capital expenditures	(450		)	(22,430		)	—			—		(22,880		)
Additions to prepaid royalties	—			(213		)	—			—		(213		)
Proceeds from disposals and divestitures	—			46			—			—		46
Purchases of short term investments	(101,793		)	—			—			—		(101,793		)
Proceeds from sales of short term investments	99,914			—			—			—		99,914
Investments in and advances to affiliates	—			(1,843		)	—			—		(1,843		)
Change in restricted cash	—			—			(3,532		)	—		(3,532		)
Cash used in investing activities	(2,329		)	(24,440		)	(3,532		)	—		(30,301		)
Financing Activities												—
Payments on term loan	(4,875		)	—			—			—		(4,875		)
Net payments on other debt	(2,751		)	(2,059		)	—			—		(4,810		)
Transactions with affiliates, net	130,144			(120,373		)	(9,771		)	—		—
Cash provided by (used in) financing activities	122,518			(122,432		)	(9,771		)	—		(9,685		)
Increase (decrease) in cash and cash equivalents	5,647			(49,928		)	22			—		(44,259		)
Cash and cash equivalents, beginning of period	572,185			150,358			11,688			—		734,231
Cash and cash equivalents, end of period	$	577,832		$	100,430		$	11,710		$	—	$	689,972