Supplemental Consolidating Financial Information

12 Months Ended

Dec. 31, 2011

Supplemental Consolidating Financial Information [Abstract]

SUPPLEMENTAL CONSOLIDATING FINANCIAL INFROMATION

17. SUPPLEMENTAL CONSOLIDATING FINANCIAL INFORMATION

Pursuant to the indenture governing the Parent Notes, certain wholly owned subsidiaries of the Company have fully and unconditionally guaranteed the notes on a joint and several basis. The following tables present unaudited consolidating financial information for (i) the issuer of the notes (Westmoreland Coal Company), (ii) the co-issuer of the notes (Westmoreland Partners), (iii) the guarantors under the notes, and (iv) the entities that are not guarantors under the notes:

CONSOLIDATING BALANCE SHEETS

December 31, 2011

(In thousands)

		September 30,			September 30,			September 30,			September 30,			September 30,			September 30,
Assets	Parent/ Issuer			Co-Issuer			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Total
Current assets:
Cash and cash equivalents	$	26,141		$	6		$	143		$	4,493		$	—		$	30,783
Receivables:
Trade		—			12,651			68			33,516			—			46,235
Contractual third-party reclamation receivables		—			—			56			11,203			—			11,259
Intercompany receivable/payable		(20,756	)		—			9,657			(22,308	)		33,407			—
Other		224			216			9,256			2,212			(8,415	)		3,493
		(20,532	)		12,867			19,037			24,623			24,992			60,987
Inventories		—			3,756			4,490			17,450			—			25,696
Other current assets		668			179			1,000			3,140			—			4,987
Total current assets		6,277			16,808			24,670			49,706			24,992			122,453
Property, plant and equipment:
Land and mineral rights		—			1,156			18,306			64,876			—			84,338
Capitalized asset retirement cost		—			239			11,088			102,536			—			113,863
Plant and equipment		3,249			217,846			117,836			188,196			—			527,127
		3,249			219,241			147,230			355,608			—			725,328
Less accumulated depreciation, depletion and amortization		(2,140	)		(51,864	)		(88,762	)		(185,830	)		—			(328,596	)
Net property, plant and equipment		1,109			167,377			58,468			169,778			—			396,732
Advanced coal royalties		—			—			—			2,552			—			2,552
Reclamation deposits		—			—			—			71,939			—			71,939
Restricted investments and bond collateral		13,532			5,983			13,592			25,198			—			58,305
Contractual third-party reclamation receivables		—			—			169			87,505			—			87,674
Intangible assets		—			4,563			—			316			—			4,879
Investment in subsidiaries		161,371			—			(792	)		3,770			(164,349	)		—
Other assets		11,085			—			1,078			2,475			—			14,638
Total assets	$	193,374		$	194,731		$	97,185		$	413,239		$	(139,357	)	$	759,172

CONSOLIDATING BALANCE SHEETS

December 31, 2011

(In thousands)

		September 30,			September 30,			September 30,			September 30,			September 30,			September 30,
Liabilities and Shareholders’ Deficit	Parent/ Issuer			Co-Issuer			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Total
Current liabilities
Current installments of long-term debt	$	1,125		$	—		$	2,409		$	19,208		$	(1,947	)	$	20,795
Accounts payable and accrued expenses:
Trade		4,286			8,183			4,069			35,377			(6,589	)		45,326
Production taxes		—			3			980			24,622			—			25,605
Workers’ compensation		911			—			—			—			—			911
Postretirement medical benefits		11,796			—			—			1,383			—			13,179
SERP		391			—			—			—			—			391
Deferred revenue		—			8,800			—			1,052			—			9,852
Asset retirement obligations		—			—			1,384			18,381			—			19,765
Other current liabilities		6,752			259			1,276			44			(33	)		8,298
Total current liabilities		25,261			17,245			10,118			100,067			(8,569	)		144,122
Long-term debt, less current installments		143,991			—			3,152			114,331			—			261,474
Workers’ compensation, less current portion		10,715			—			—			—			—			10,715
Excess of pneumoconiosis benefit obligation over trust assets		6,565			—			—			—			—			6,565
Postretirement medical benefits, less current portion		207,650			—			—			37,812			—			245,462
Pension and SERP obligations, less current portion		25,555			245			—			3,191			—			28,991
Deferred revenue, less current portion		—			58,539			—			7,295			—			65,834
Asset retirement obligations, less current portion		—			770			23,373			203,570			—			227,713
Intangible liabilities		—			7,644			—			—			—			7,644
Other liabilities		976			—			7,901			1,633			—			10,510
Intercompany receivable/payable		22,519			—			(10	)		29,202			(51,711	)		—
Total liabilities		443,232			84,443			44,534			497,101			(60,280	)		1,009,030
Shareholders’ deficit
Preferred stock		160			—			—			—			—			160
Common stock		34,527			5			110			132			(247	)		34,527
Other paid-in capital		126,288			52,775			16,373			59,893			(129,041	)		126,288
Accumulated other comprehensive loss		(121,455	)		(343	)		15			(23,168	)		23,496			(121,455	)
Accumulated earnings (deficit)		(281,141	)		57,851			36,153			(120,719	)		26,715			(281,141	)
Total Westmoreland Coal Company shareholders’ deficit		(241,621	)		110,288			52,651			(83,862	)		(79,077	)		(241,621	)
Noncontrolling interest		(8,237	)		—			—			—			—			(8,237	)
Total equity (deficit)		(249,858	)		110,288			52,651			(83,862	)		(79,077	)		(249,858	)
Total liabilities and shareholders’ deficit	$	193,374		$	194,731		$	97,185		$	413,239		$	(139,357	)	$	759,172

CONSOLIDATING BALANCE SHEETS

December 31, 2010

(In thousands)

		September 30,			September 30,			September 30,			September 30,			September 30,			September 30,
Assets	Parent/ Issuer			Co-Issuer			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Total
Current assets:
Cash and cash equivalents	$	271		$	880		$	—		$	4,624		$	—		$	5,775
Receivables:
Trade		—			14,148			65			36,365			—			50,578
Contractual third-party reclamation receivables		—			—			135			7,608			—			7,743
Intercompany receivable/payable		—			—			10,193			(21,544	)		11,351			—
Other		66			198			4,917			1,530			(2,166	)		4,545
		66			14,346			15,310			23,959			9,185			62,866
Inventories		—			1,935			4,624			17,012			—			23,571
Other current assets		796			224			469			3,944			(98	)		5,335
Total current assets		1,133			17,385			20,403			49,539			9,087			97,547
Property, plant and equipment:
Land and mineral rights		—			1,156			17,806			64,862			—			83,824
Capitalized asset retirement cost		—			239			20,463			94,154			—			114,856
Plant and equipment		2,611			215,851			117,360			170,839			—			506,661
		2,611			217,246			155,629			329,855			—			705,341
Less accumulated depreciation, depletion and amortization		(1,987	)		(42,156	)		(82,239	)		(162,004	)		—			(288,386	)
Net property, plant and equipment		624			175,090			73,390			167,851			—			416,955
Advanced coal royalties		—			—			998			2,697			—			3,695
Reclamation deposits		—			—			—			72,274			—			72,274
Restricted investments and bond collateral		11,816			8,563			10,956			24,049			—			55,384
Contractual third-party reclamation receivables		—			—			390			87,349			—			87,739
Deferred income taxes		—			—			—			—			2,458			2,458
Intangible assets		—			6,203			—			352			—			6,555
Investment in subsidiaries		115,612			—			(717	)		3,770			(118,665	)		—
Other assets		2,060			401			1,683			3,555			—			7,699
Total assets	$	131,245		$	207,642		$	107,103		$	411,436		$	(107,120	)	$	750,306

CONSOLIDATING BALANCE SHEETS

December 31, 2010

(In thousands)

		September 30,			September 30,			September 30,			September 30,			September 30,			September 30,
Liabilities and Shareholders’ Deficit	Parent/ Issuer			Co-Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Current liabilities
Current installments of long-term debt	$	—		$	—		$	2,255		$	12,718		$	—		$	14,973
Accounts payable and accrued expenses:
Trade		5,187			8,549			3,283			31,709			(2,481	)		46,247
Production taxes		—			2			1,084			25,231			—			26,317
Workers’ compensation		954			—			—			—			—			954
Postretirement medical benefits		12,198			—			—			1,383			—			13,581
SERP		304			—			—			—			—			304
Deferred revenue		—			8,805			349			1,055			—			10,209
Asset retirement obligations		—			—			3,371			11,143			—			14,514
Other current liabilities		249			782			3,138			2,164			(92	)		6,241
Total current liabilities		18,892			18,138			13,480			85,403			(2,573	)		133,340
Long-term debt, less current installments		13,671			46,648			15,166			133,246			—			208,731
Revolving lines of credit		—			—			16,900			1,500			—			18,400
Workers’ compensation, less current portion		9,424			—			—			—			—			9,424
Excess of pneumoconiosis benefit obligation over trust assets		2,246			—			—			—			—			2,246
Postretirement medical benefits, less current portion		169,677			—			—			27,602			—			197,279
Pension and SERP obligations, less current portion		16,105			154			—			4,203			—			20,462
Deferred revenue, less current portion		—			67,308			—			8,087			—			75,395
Asset retirement obligations, less current portion		—			715			28,967			197,447			—			227,129
Intangible liabilities		—			8,663			—			—			—			8,663
Other liabilities		4,153			—			3,149			1,409			2,881			11,592
Intercompany receivable/payable		59,432			—			(19,590	)		26,424			(66,266	)		—
Total liabilities		293,600			141,626			58,072			485,321			(65,958	)		912,661
Shareholders’ deficit
Preferred stock		160			—			—			—			—			160
Common stock		27,901			5			110			132			(247	)		27,901
Other paid-in capital		98,466			30			16,036			53,264			(69,330	)		98,466
Accumulated other comprehensive loss		(57,680	)		(203	)		120			(14,353	)		14,436			(57,680	)
Accumulated earnings (deficit)		(226,740	)		66,184			32,765			(112,928	)		13,979			(226,740	)
Total Westmoreland Coal Company shareholders’ deficit		(157,893	)		66,016			49,031			(73,885	)		(41,162	)		(157,893	)
Noncontrolling interest		(4,462	)		—			—			—			—			(4,462	)
Total equity (deficit)		(162,355	)		66,016			49,031			(73,885	)		(41,162	)		(162,355	)
Total liabilities and shareholders’ deficit	$	131,245		$	207,642		$	107,103		$	411,436		$	(107,120	)	$	750,306

CONSOLIDATING STATEMENTS OF OPERATIONS

Year Ended December 31, 2011

(In thousands)

		September 30,			September 30,			September 30,			September 30,			September 30,			September 30,
	Parent/ Issuer			Co-Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	—		$	86,785		$	58,544		$	411,908		$	(55,524	)	$	501,713
Costs and expenses:
Cost of sales		—			60,243			49,439			338,629			(55,524	)		392,787
Depreciation, depletion and amortization		306			10,175			7,936			27,177			—			45,594
Selling and administrative		10,616			4,059			4,566			21,508			(473	)		40,276
Heritage health benefit expenses		17,754			—			—			821			—			18,575
Loss on sales of assets		3			189			59			389			—			640
Other operating income (loss)		—			—			(7,258	)		—			473			(6,785	)
		28,679			74,666			54,742			388,524			(55,524	)		491,087
Operating income (loss)		(28,679	)		12,119			3,802			23,384			—			10,626
Other income (expense):
Interest expense		(16,365	)		(469	)		(657	)		(12,370	)		92			(29,769	)
Loss on extinguishment of debt		(7,873	)		(9,073	)		(84	)		—			—			(17,030	)
Interest income		266			14			206			1,050			(92	)		1,444
Other income (loss)		(3,014	)		—			170			272			—			(2,572	)
		(26,986	)		(9,528	)		(365	)		(11,048	)		—			(47,927	)
Income (loss) before income taxes and income of consolidated subsidiaries		(55,665	)		2,591			3,437			12,336			—			(37,301	)
Equity in income of subsidiaries		18,508			—			—			—			(18,508	)		—
Loss before income taxes		(37,157	)		2,591			3,437			12,336			(18,508	)		(37,301	)
Income tax expense (benefit)		(282	)		(2,498	)		(26	)		7,263			(4,883	)		(426	)
Net income (loss)		(36,875	)		5,089			3,463			5,073			(13,625	)		(36,875	)
Less net loss attributable to noncontrolling interest		(3,775	)		—			—			—			—			(3,775	)
Net income (loss) attributable to the Parent company	$	(33,100	)	$	5,089		$	3,463		$	5,073		$	(13,625	)	$	(33,100	)

CONSOLIDATING STATEMENTS OF OPERATIONS

Year Ended December 31, 2010

(In thousands)

		September 30,			September 30,			September 30,			September 30,			September 30,			September 30,
	Parent/ Issuer			Co-Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	—		$	87,999		$	52,201		$	416,410		$	(50,553	)	$	506,057
Costs and expenses:
Cost of sales		—			61,739			44,943			338,698			(50,553	)		394,827
Depreciation, depletion and amortization		391			10,131			7,897			26,271			—			44,690
Selling and administrative		9,292			4,287			4,140			21,905			(143	)		39,481
Heritage health benefit expenses		13,732			—			—			689			—			14,421
Gain (loss) on sales of assets		—			122			(5	)		109			—			226
Other operating income		—			—			(8,109	)		—			—			(8,109	)
		23,415			76,279			48,866			387,672			(50,696	)		485,536
Operating income (loss)		(23,415	)		11,720			3,335			28,738			143			20,521
Other income (expense):
Interest expense		(3,195	)		(4,659	)		(2,534	)		(12,723	)		119			(22,992	)
Interest income		246			36			141			1,448			(124	)		1,747
Other income (loss)		(3,389	)		30			48			724			—			(2,587	)
		(6,338	)		(4,593	)		(2,345	)		(10,551	)		(5	)		(23,832	)
Income (loss) before income taxes and income of consolidated subsidiaries		(29,753	)		7,127			990			18,187			138			(3,311	)
Equity in income of subsidiaries		26,268			—			—			—			(26,268	)		—
Income (loss) before income taxes		(3,485	)		7,127			990			18,187			(26,130	)		(3,311	)
Income tax expense (benefit)		(315	)		368			21			3,945			(4,160	)		(141	)
Net income (loss)		(3,170	)		6,759			969			14,242			(21,970	)		(3,170	)
Less net loss attributable to noncontrolling interest		(2,645	)		—			—			—			—			(2,645	)
Net income (loss) attributable to the Parent company	$	(525	)	$	6,759		$	969		$	14,242		$	(21,970	)	$	(525	)

CONSOLIDATING STATEMENTS OF OPERATIONS

Year Ended December 31, 2009

(In thousands)

		September 30,			September 30,			September 30,			September 30,			September 30,			September 30,
	Parent/ Issuer			Co-Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	—		$	82,162		$	52,643		$	360,117		$	(51,554	)	$	443,368
Costs and expenses:
Cost of sales		—			60,504			46,966			317,154			(51,554	)		373,070
Depreciation, depletion and amortization		418			9,764			8,265			25,807			—			44,254
Selling and administrative		11,585			4,231			4,682			20,114			—			40,612
Heritage health benefit expenses		26,813			—			—			1,261			—			28,074
Gain (loss) on sales of assets		—			12			78			101			—			191
Other operating income		—			—			(11,059	)		—			—			(11,059	)
		38,816			74,511			48,932			364,437			(51,554	)		475,142
Operating income (loss)		(38,816	)		7,651			3,711			(4,320	)		—			(31,774	)
Other income (expense):
Interest expense		(2,618	)		(5,946	)		(2,195	)		(12,977	)		3			(23,733	)
Interest income		376			120			446			2,344			(68	)		3,218
Other income (loss)		5,691			448			28			(176	)		—			5,991
		3,449			(5,378	)		(1,721	)		(10,809	)		(65	)		(14,524	)
Loss before income taxes and income of consolidated subsidiaries		(35,367	)		2,273			1,990			(15,129	)		(65	)		(46,298	)
Equity in income of subsidiaries		(10,869	)		—			—			—			10,869			—
Loss before income taxes		(46,236	)		2,273			1,990			(15,129	)		10,804			(46,298	)
Income tax expense (benefit)		(17,074	)		3,812			106			(4,224	)		244			(17,136	)
Net income (loss)		(29,162	)		(1,539	)		1,884			(10,905	)		10,560			(29,162	)
Less net loss attributable to noncontrolling interest		(1,817	)		—			—			—			—			(1,817	)
Net loss attributable to the Parent company	$	(27,345	)	$	(1,539	)	$	1,884		$	(10,905	)	$	10,560		$	(27,345	)

CONSOLIDATING STATEMENTS OF CASH FLOWS

Year Ended December 31, 2011

(In thousands)

		September 30,			September 30,			September 30,			September 30,			September 30,			September 30,
Statements of Cash Flows	Parent/ Issuer			Co-Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Cash flows from operating activities:
Net income (loss)	$	(36,875	)	$	5,089		$	3,463		$	5,073		$	(13,625	)	$	(36,875	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Equity in income of subsidiaries		18,508			—			—			—			(18,508	)		—
Gain on derivative instruments		3,079			—			—			—			—			3,079
Depreciation, depletion, and amortization		306			10,175			7,936			27,177			—			45,594
Accretion of asset retirement obligation and receivable		—			55			3,034			7,789			—			10,878
Amortization of intangible assets and liabilities, net		—			621			—			36			—			657
Share-based compensation		1,671			32			249			2,769			—			4,721
Loss on sale of assets		3			189			59			389			—			640
Amortization of deferred financing costs		1,485			(21	)		383			668			—			2,515
Gain on investments		—			—			(75	)		(75	)		—			(150	)
Loss on extinguishment of debt		7,873			9,073			84			—			—			17,030
Changes in operating assets and liabilities:
Receivables, net		(158	)		1,479			(4,343	)		2,263			6,250			5,491
Inventories		—			(1,820	)		134			(439	)		—			(2,125	)
Excess of pneumoconiosis benefit obligation over trust assets		4,319			—			—			—			—			4,319
Accounts payable and accrued expenses		5,849			(1,063	)		378			3,103			(4,139	)		4,128
Deferred revenue		—			(8,774	)		(349	)		(795	)		—			(9,918	)
Accrual for workers’ compensation		1,248			—			—			—			—			1,248
Asset retirement obligations		—			—			(875	)		(5,635	)		—			(6,510	)
Accrual for postretirement medical benefits		(2,878	)		—			—			1,235			—			(1,643	)
Pension and SERP obligations		(4,320	)		(50	)		—			3,092			—			(1,278	)
Other assets and liabilities		444			(529	)		3,839			(392	)		(428	)		2,934
Net cash provided by (used in) operating activities		554			14,456			13,917			46,258			(30,450	)		44,735
Cash flows from investing activities:
Distributions received from subsidiaries		23,400			—			—			—			(23,400	)		—
Additions to property, plant and equipment		(797	)		(2,119	)		(2,569	)		(22,109	)		—			(27,594	)
Change in restricted investments and bond collateral and reclamation deposits		(1,714	)		2,581			(3,738	)		(3,115	)		—			(5,986	)
Cash payments related to acquisitions and other		(4,000	)		—			—			—			—			(4,000	)
Net proceeds from sales of assets		—			—			250			437			—			687
Proceeds from the sale of investments		—			—			1,075			2,275			—			3,350
Receivable from customer for property and equipment purchases		—			—			—			(96	)		—			(96	)
Net cash provided by (used in) investing activities		16,889			462			(4,982	)		(22,608	)		(23,400	)		(33,639	)
Cash flows from financing activities:
Change in book overdrafts		(146	)		259			(694	)		(143	)		—			(724	)
Borrowings from long-term debt		142,500			—			—			—			—			142,500
Repayments of long-term debt		(2,532	)		(46,220	)		(11,982	)		(12,832	)		—			(73,566	)
Borrowings on revolving lines of credit		—			1,500			12,200			73,500			—			87,200
Repayments on revolving lines of credit		—			(1,500	)		(29,100	)		(75,000	)		—			(105,600	)
Debt issuance costs and other refinancing costs		(6,042	)		(9,077	)		100			—			—			(15,019	)
Exercise of stock options		422			—			—			—			—			422
Dividends/distributions		(21,301	)		(10,700	)		—			(12,700	)		23,400			(21,301	)
Transactions with Parent/affiliates		(104,474	)		49,946			20,684			3,394			30,450			—
Net cash provided by (used in) financing activities		8,427			(15,792	)		(8,792	)		(23,781	)		53,850			13,912
Net increase (decrease) in cash and cash equivalents		25,870			(874	)		143			(131	)		—			25,008
Cash and cash equivalents, beginning of year		271			880			—			4,624			—			5,775
Cash and cash equivalents, end of year	$	26,141		$	6		$	143		$	4,493		$	—		$	30,783

CONSOLIDATING STATEMENTS OF CASH FLOWS

Year Ended December 31, 2010

(In thousands)

		September 30,			September 30,			September 30,			September 30,			September 30,			September 30,
Statements of Cash Flows	Parent/ Issuer			Co-Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Cash flows from operating activities:
Net income (loss)	$	(3,170	)	$	6,759		$	969		$	14,242		$	(21,970	)	$	(3,170	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Equity in income of subsidiaries		(26,268	)		—			—			—			26,268			—
Gain (loss) on derivative instruments		3,486			(30	)		—			—			—			3,456
Depreciation, depletion, and amortization		391			10,131			7,897			26,271			—			44,690
Accretion of asset retirement obligation and receivable		—			51			3,007			8,482			—			11,540
Amortization of intangible assets and liabilities, net		—			621			—			(31	)		—			590
Share-based compensation		4,049			—			—			—			—			4,049
Loss (gain) on sale of assets		—			122			(5	)		109			—			226
Amortization of deferred financing costs		1,489			(308	)		450			673			—			2,304
Non-cash interest expense		1,236			—			—			—			—			1,236
Gain on investments securities		(97	)		—			—			(507	)		—			(604	)
Changes in operating assets and liabilities:
Receivables, net		358			(609	)		(2,266	)		(3,367	)		1,156			(4,728	)
Inventories		—			635			(208	)		1,873			—			2,300
Excess of pneumoconiosis benefit obligation over trust assets		1,460			—			—			—			—			1,460
Accounts payable and accrued expenses		2,333			884			(863	)		8,189			(1,502	)		9,041
Deferred revenue		—			(6,010	)		(375	)		(1,014	)		—			(7,399	)
Accrual for workers’ compensation		(841	)		—			—			—			—			(841	)
Asset retirement obligations		—			—			(1,769	)		(6,014	)		—			(7,783	)
Accrual for postretirement medical benefits		(2,813	)		—			—			(19	)		—			(2,832	)
Pension and SERP obligations		(6,828	)		—			93			2,833			—			(3,902	)
Other assets and liabilities		(923	)		(211	)		898			(3,986	)		(58	)		(4,280	)
Net cash provided by (used in) operating activities		(26,138	)		12,035			7,828			47,734			3,894			45,353
Cash flows from investing activities:
Distributions received from subsidiaries		31,300			—			—			—			(31,300	)		—
Additions to property, plant and equipment		(550	)		(2,207	)		(4,275	)		(15,782	)		—			(22,814	)
Change in restricted investments and bond collateral and reclamation deposits		(1,714	)		142			(1,716	)		(5,257	)		—			(8,545	)
Net proceeds from sales of assets		—			1			66			645			—			712
Proceeds from the sale of investments		156			—			—			2,151			—			2,307
Receivable from customer for property and equipment purchases		—			—			—			(840	)		—			(840	)
Net cash provided by (used in) investing activities		29,192			(2,064	)		(5,925	)		(19,083	)		(31,300	)		(29,180	)
Cash flows from financing activities:
Change in book overdrafts		(111	)		—			57			(541	)		—			(595	)
Repayments of long-term debt		—			(9,355	)		(4,440	)		(6,610	)		—			(20,405	)
Borrowings on revolving lines of credit		—			7,300			91,500			72,100			—			170,900
Repayments on revolving lines of credit		—			(7,300	)		(91,000	)		(70,600	)		—			(168,900	)
Debt issuance costs and other refinancing costs		(1,718	)		—			(207	)		—			—			(1,925	)
Exercise of stock options		8			—			—			—			—			8
Dividends/distributions		—			—			—			(31,300	)		31,300			—
Transactions with Parent/affiliates		(1,717	)		126			2,187			3,298			(3,894	)		—
Net cash provided by (used in) financing activities		(3,538	)		(9,229	)		(1,903	)		(33,653	)		27,406			(20,917	)
Net increase (decrease) in cash and cash equivalents		(484	)		742			—			(5,002	)		—			(4,744	)
Cash and cash equivalents, beginning of year		755			138			—			9,626			—			10,519
Cash and cash equivalents, end of year	$	271		$	880		$	—		$	4,624		$	—		$	5,775

CONSOLIDATING STATEMENTS OF CASH FLOWS

Year Ended December 31, 2009

(In thousands)

		September 30,			September 30,			September 30,			September 30,			September 30,			September 30,
Statements of Cash Flows	Parent/ Issuer			Co-Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Cash flows from operating activities:
Net loss	$	(29,162	)	$	(1,539	)	$	1,884		$	(10,905	)	$	10,560		$	(29,162	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Equity in income of subsidiaries		10,869			—			—			—			(10,869	)		—
Gain on derivative instruments		(5,674	)		(448	)		—			—			—			(6,122	)
Depreciation, depletion, and amortization		418			9,764			8,265			25,807			—			44,254
Accretion of asset retirement obligation and receivable		—			34			1,291			8,649			—			9,974
Amortization of intangible assets and liabilities, net		—			621			—			(342	)		—			279
Non-cash tax benefits		(17,062	)		—			—			—			—			(17,062	)
Share-based compensation		2,552			—			—			—			—			2,552
Loss (gain) on sale of assets		—			12			78			101			—			191
Amortization of deferred financing costs		1,143			(313	)		572			573			—			1,975
Non-cash interest expense		1,470			—			—			—			—			1,470
Gain (loss) on investments securities		(11	)		—			—			423			—			412
Changes in operating assets and liabilities:
Receivables, net		102			8,341			661			7,910			(1,511	)		15,503
Inventories		—			(730	)		(617	)		130			—			(1,217	)
Excess of pneumoconiosis benefit obligation over trust assets		3,025			—			—			—			—			3,025
Accounts payable and accrued expenses		(123	)		(61	)		(3,990	)		(9,577	)		(51	)		(13,802	)
Deferred revenue		—			11,216			(139	)		(591	)		—			10,486
Accrual for workers’ compensation		(1,619	)		—			—			—			—			(1,619	)
Asset retirement obligations		—			—			(307	)		(1,912	)		—			(2,219	)
Accrual for postretirement medical benefits		(3,362	)		—			—			11,124			—			7,762
Pension and SERP obligations		2,682			—			—			491			—			3,173
Other assets and liabilities		(1,220	)		(2,427	)		(2,307	)		5,879			(330	)		(405	)
Net cash provided by (used in) operating activities		(35,972	)		24,470			5,391			37,760			(2,201	)		29,448
Cash flows from investing activities:
Distributions received from subsidiaries		26,399			—			—			—			(26,399	)		—
Additions to property, plant and equipment		(218	)		(4,251	)		(3,919	)		(26,158	)		—			(34,546	)
Change in restricted investments and bond collateral and reclamation deposits		(2,239	)		2,266			(1,399	)		(3,229	)		—			(4,601	)
Net proceeds from sales of assets		—			—			105			832			—			937
Proceeds from the sale of investments		415			—			—			381			—			796
Receivable from customer for property and equipment purchases		—			—			—			(1,183	)		—			(1,183	)
Net cash provided by (used in) investing activities		24,357			(1,985	)		(5,213	)		(29,357	)		(26,399	)		(38,597	)
Cash flows from financing activities:
Change in book overdrafts		(291	)		—			244			643			—			596
Borrowings from long-term debt		—			—			7,764			798			—			8,562
Repayments of long-term debt		—			(25,845	)		(3,719	)		(5,711	)		—			(35,275	)
Borrowings on revolving lines of credit		—			—			79,116			15,000			—			94,116
Repayments on revolving lines of credit		—			—			(73,016	)		(15,000	)		—			(88,016	)
Debt issuance costs		—			—			(256	)		—			—			(256	)
Dividends/distributions		—			(7,706	)		—			(18,693	)		26,399			—
Transactions with Parent/affiliates		11,705			5,540			(10,311	)		(9,135	)		2,201			—
Net cash provided by (used in) financing activities		11,414			(28,011	)		(178	)		(32,098	)		28,600			(20,273	)
Net increase (decrease) in cash and cash equivalents		(201	)		(5,526	)		—			(23,695	)		—			(29,422	)
Cash and cash equivalents, beginning of year		956			5,664			—			33,321			—			39,941
Cash and cash equivalents, end of year	$	755		$	138		$	—		$	9,626		$	—		$	10,519