e11vk
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
(Mark One)
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ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended December 31, 2010
or
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TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File Number: 1-16463
PEABODY INVESTMENTS CORP.
EMPLOYEE RETIREMENT ACCOUNT
Full title of the plan
PEABODY ENERGY CORPORATION
701 Market Street, St. Louis, Missouri 63101-1826
Name of issuer of the securities held pursuant to the plan and the address of its principal
executive office
Peabody Investments Corp.
Employee Retirement Account
Financial Statements and Supplemental Schedule
Years Ended December 31, 2010 and 2009
Table of Contents
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Report of Independent Registered Public Accounting Firm |
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1 |
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Financial Statements: |
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Statements of Net Assets Available for Benefits —
December 31, 2010 and 2009 |
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Statements of Changes in Net Assets Available for Benefits —
Years Ended December 31, 2010 and 2009 |
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3 |
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Notes to Financial Statements |
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4 |
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Supplemental Schedule: |
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Schedule H, Line 4i — Schedule of Assets (Held at End of Year) |
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13 |
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Signature |
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15 |
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Exhibit Index |
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16 |
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Exhibit 23 — Consent of Independent Registered Public Accounting Firm |
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Report of Independent Registered Public Accounting Firm
The Plan Administrator
Defined Contribution Administrative Committee
We have audited the accompanying statements of net assets available for benefits of Peabody
Investments Corp. Employee Retirement Account (the Plan) as of December 31, 2010 and 2009, and the
related statements of changes in net assets available for benefits for the years then ended. These
financial statements are the responsibility of the Plan’s management. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. We
were not engaged to perform an audit of the Plan’s internal control over financial reporting. Our
audits included consideration of internal control over financial reporting as a basis for designing
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Plan’s internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the net assets available for benefits of the Plan at December 31, 2010 and 2009, and the
changes in its net assets available for benefits for the years then ended, in conformity with U.S.
generally accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the financial statements taken
as a whole. The accompanying supplemental schedule of assets (held at end of year) as of December
31, 2010, is presented for purposes of additional analysis and is not a required part of the
financial statements but is supplementary information required by the Department of Labor’s Rules
and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. This supplemental schedule is the responsibility of the Plan’s management. The supplemental
schedule has been subjected to the auditing procedures applied in our audits of the financial
statements and, in our opinion, is fairly stated in all material respects in relation to the
financial statements taken as a whole.
St. Louis, Missouri
June 17, 2011
1
Peabody Investments Corp.
Employee Retirement Account
Statements of Net Assets Available for Benefits
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December 31, |
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2010 |
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2009 |
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(Dollars in thousands) |
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Assets: |
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Investments, at fair value: |
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Investments in mutual funds |
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$ |
446,289 |
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$ |
354,497 |
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Investment in common/collective trust |
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147,150 |
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130,403 |
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Interest in Master Trust |
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80,872 |
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63,403 |
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Total investments |
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674,311 |
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548,303 |
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Receivables: |
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Employer contributions |
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20,025 |
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19,781 |
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Notes receivable from participants |
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21,997 |
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18,043 |
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Total receivables |
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42,022 |
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37,824 |
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Total assets |
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716,333 |
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586,127 |
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Adjustment from fair value to contract value
for fully benefit-responsive investment
contracts |
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(5,794 |
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(2,819 |
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Net assets available for benefits |
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$ |
710,539 |
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$ |
583,308 |
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See accompanying notes.
2
Peabody Investments Corp.
Employee Retirement Account
Statements of Changes in Net Assets Available for Benefits
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Years Ended December 31, |
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2010 |
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2009 |
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(Dollars in thousands) |
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Additions: |
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Investment income: |
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Interest and dividends |
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$ |
13,529 |
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$ |
10,468 |
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Net realized and unrealized appreciation of mutual funds |
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45,145 |
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67,278 |
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Net investment income in the Master Trust |
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24,992 |
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33,711 |
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Net investment income |
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83,666 |
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111,457 |
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Interest income on notes receivable from participants |
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1,072 |
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1,046 |
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Contributions: |
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Employee |
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36,494 |
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35,200 |
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Employer |
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48,825 |
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46,816 |
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Rollover |
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1,463 |
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330 |
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Total contributions |
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86,782 |
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82,346 |
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Total additions |
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171,520 |
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194,849 |
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Deductions: |
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Benefits paid to participants |
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(44,156 |
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(22,417 |
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Administrative expenses |
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(133 |
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(83 |
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Total deductions |
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(44,289 |
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(22,500 |
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Net increase in net assets available for benefits |
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127,231 |
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172,349 |
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Net assets available for benefits at beginning of year |
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583,308 |
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410,959 |
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Net assets available for benefits at end of year |
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$ |
710,539 |
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$ |
583,308 |
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See accompanying notes.
3
Peabody Investments Corp.
Employee Retirement Account
Notes to Financial Statements
Years Ended December 31, 2010 and 2009
1. Description of the Plan
The following description of the Peabody Investments Corp. (the Company, Plan Administrator and
Plan Sponsor) Employee Retirement Account (the Plan) provides only general information.
Participants should refer to the plan documents for a more complete description of the Plan’s
provisions. The Company is a wholly owned subsidiary of Peabody Energy Corporation (Peabody).
General
The Plan is a defined contribution plan, and participation in the Plan is voluntary. All
nonrepresented employees of the Company and certain of its participating subsidiaries and
affiliated companies (collectively, the Employer) are eligible for participation on the date of
their employment or at any time afterward. The Plan is subject to the provisions of the Employee
Retirement Income Security Act of 1974, as amended (ERISA).
The Plan allows participants to invest in a selection of mutual funds, a common/collective trust
and the Peabody Energy Stock Fund, which is the participating investment in the Master Trust. See
Notes 2 and 3 for additional details related to the Master Trust. All investments in the Plan are
participant-directed except for the Vanguard Prime Money Market Fund, which represents forfeited
employer contributions.
Contributions
Each year participants may contribute on a pre-tax or traditional after-tax basis any whole
percentage from 1% to 60% of eligible compensation, as defined in the Plan. Effective January 1,
2009, participants also have the option to contribute to their account on a Roth after-tax basis
whereby investment income earned on contributions is not subject to taxation. In the calendar year
that a participant is age 50 or older and each year thereafter, he or she is permitted to make
catch-up contributions to the Plan. Participants may also rollover account balances from other
qualified defined benefit or defined contribution plans.
For participants other than those performing services in the Colorado, Wyoming and New Mexico
regions, the Employer makes matching contributions equal to 100% of the first 6% of eligible
compensation. Plan participants in the Colorado, Wyoming and New Mexico regions are entitled to
Employer matching contributions up to 8% of such participant’s eligible compensation, adjusted for
the participant’s age and years of service.
Certain Plan participants in the Colorado, Wyoming and New Mexico regions who have either
completed 15 or more years of service, or attained age 45 and completed at least 5 years of service
as of December 31, 2007, are entitled to Employer transition contributions equal to 9% of such
participant’s eligible compensation. The Employer transition contributions began on January 1, 2008
and will end on or before December 31, 2012.
Certain Plan participants of the Peabody Investments Corp. Retirement Plan for Salaried Employees
(Salaried Pension Plan) who are no longer credited with any additional years of service for benefit
accrual purposes are entitled to Employer transition contributions equal to either 5% or 7% based
on age and/or years of service as of
4
Peabody Investments Corp.
Employee Retirement Account
Notes to Financial Statements
December 31, 2000. The Employer transition contributions began
on June 1, 2008 and will end on or before December 31, 2012.
Participants direct the investment of all contributions into various investment options offered by
the Plan. All contributions are subject to certain limitations as defined by the Plan and the
Internal Revenue Service (IRS).
Peabody’s Board of Directors establishes desired minimum and maximum performance targets that
require the Employer to pay a performance contribution between 0% and 4% of eligible compensation
into the accounts of active, eligible employees as of the end of the fiscal year, based upon
Peabody’s financial performance. If the minimum performance targets set for a fiscal year are not
met, the Board of Directors may authorize the Employer to contribute a discretionary amount to the
accounts of active, eligible employees. If the maximum performance targets set for a fiscal year
are exceeded, the Board of Directors, at its discretion, may authorize the Employer to contribute
additional incremental percentages of eligible compensation to the accounts of active, eligible
employees.
At December 31, 2010, a $20.0 million receivable was recorded for a 6% performance contribution of
eligible employees’ compensation related to the 2010 plan year. At December 31, 2009, a $19.8
million receivable was recorded for a 6% performance contribution of eligible employees’
compensation related to the 2009 plan year.
Vesting
Participants are vested immediately in their own contributions and the actual earnings thereon.
Vesting of Employer matching contributions occurs ratably based on years of continuous service (20%
per year after one year of service with 100% vesting after five years) and automatically vests 100%
upon death, normal retirement
date or disability retirement date, as defined in the Plan. Employer transition, performance
and discretionary contributions, if any, are immediately vested 100%.
Forfeited Accounts
Employer contributions are reduced by forfeitures of non-vested amounts. During the years ended
December 31, 2010 and 2009, the Plan received forfeiture credits, net of holding gains or losses,
of $0.8 million and $0.7 million, respectively. There were no forfeitures used to offset
contributions during the year ended December 31, 2010. During the year ended December 31, 2009, the
Plan used forfeitures of $1.3 million to reduce Employer contributions. As of December 31, 2010 and
2009, the balance of forfeiture credits available for future use was $1.5 million and $0.7 million,
respectively. Beginning in October 2009, forfeitures of non-vested Employer contributions are
invested in the Vanguard Prime Money Market Fund.
5
Peabody Investments Corp.
Employee Retirement Account
Notes to Financial Statements
Notes Receivable from Participants
Participants may borrow up to 50% of their own contributions (Employer matching, transition,
performance and discretionary contributions are not eligible) subject to minimum and maximum
amounts of $1,000 and $50,000, respectively, with the maximum amount reduced by the highest
principal amount outstanding in the last 12 months, if applicable. Loans are secured by the balance
in the participant’s account and bear interest based on the prime interest rate as published in The
Wall Street Journal on the first business day of the month in which the loan was made, plus an
additional 1%. Principal and interest are paid ratably through payroll deductions. A maximum of two
loans may be outstanding at any time. Upon retirement or separation of employment, a participant’s
loan must be repaid before the participant can receive a final distribution from the Plan. If the
loan is not repaid in 90 days, it is subtracted from the participant’s total account balance and
considered a taxable distribution from the Plan.
Participant Accounts
Each participant’s account is credited with the participant’s contributions, Employer matching,
transition, performance and discretionary contributions, and plan earnings. The benefit to which a
participant is entitled is the vested balance of the participant’s account as defined in the Plan.
Payment of Benefits
Participants are eligible for distribution of their vested account balance upon termination of
employment. Participants are eligible for distribution of their entire account balance upon death,
disability, or termination of employment after normal retirement date. Participants may elect to
receive their distribution as either a lump sum payment or as installments in certain
circumstances, as defined in the Plan. Participants may also elect to transfer their account
balance into an individual retirement account or another qualified plan.
Participants who have attained the age of 591/2 have the right to receive a partial or full
distribution of their vested account balance. Withdrawals in cases of hardship and other
withdrawals are also permitted, as defined in the Plan.
Plan Termination
The Plan is voluntary on the part of the Employer. The Employer may terminate the Plan in whole or
in part subject to the provisions of ERISA. Upon termination or complete discontinuance of all
contributions to the Plan, participants’ accounts become fully vested. Currently, the Employer has
no intention to terminate the Plan.
Administrative Expenses
All significant administrative expenses of the Plan, including recordkeeping, audit and trustee
fees, are paid by the Employer. Participants are required to pay for certain miscellaneous
transaction fees.
6
Peabody Investments Corp.
Employee Retirement Account
Notes to Financial Statements
2. Summary of Significant Accounting Policies
Basis of Presentation
Financial statements of the Plan are prepared using the accrual method of accounting.
Newly Adopted Accounting Standards
In September 2010, the Financial Accounting Standards Board (FASB) issued accounting guidance that
requires participant loans to be measured at their unpaid principal balance, plus any accrued but
unpaid interest, and classified as notes receivable from participants. Loans were previously
measured at fair value and classified as investments. The new disclosure requirements are effective
for fiscal years ending after December 15, 2010 (December 31, 2010 for the Plan) and are required
to be applied retrospectively to all prior periods presented. Adoption of the guidance did not
change the value of participant loans from the amount previously reported as of December 31, 2009.
Participant loans have been reclassified to notes receivable from participants for all years
presented.
In January 2010, the FASB issued accounting guidance that requires new fair value disclosures,
including significant transfers in and out of Level 1 and Level 2 fair value measurements and a
description of the reasons for the transfers. In addition, the guidance requires new disclosures
regarding activity in Level 3 fair value measurements, including a gross basis reconciliation. The
new disclosure requirements became effective for annual periods beginning January 1, 2010, except
for the disclosure of activity within Level 3 fair value measurements, which is effective for
fiscal years beginning after December 15, 2010 (January 1, 2011 for the Plan). Accordingly,
adoption of the guidance does not impact the Plan’s disclosures. Adoption of the gross presentation
of Level 3 activity is not expected to impact the Plan’s disclosures as the Plan currently does not
have any Level 3 investments.
Valuation of Investments
The Plan Sponsor defines fair value as the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at the measurement date.
See Note 3 for further description of fair value measurements.
The Vanguard Retirement Savings Trust invests in fully benefit-responsive investment contracts.
These investment contracts are recorded at fair value; however, since these contracts are fully
benefit-responsive, an adjustment is reflected in the statements of net assets available for
benefits to present these investments at contract value. Contract value is the relevant measurement
attributable to fully benefit-responsive investment contracts because contract value is the amount
participants would receive if they were to initiate permitted
transactions under the terms of the Plan. Contract value represents contributions plus
earnings, less participant withdrawals and administrative expenses.
7
Peabody Investments Corp.
Employee Retirement Account
Notes to Financial Statements
Securities Transactions
Purchases and sales of securities are recorded on a trade-date basis. Realized gains (losses) are
computed based on the average cost of securities sold. Interest income is recorded when earned.
Dividend income is recorded on the ex-dividend date. Capital gain distributions are included in
dividend income.
Interest in Master Trust
The Master Trust Agreement for the Peabody Energy Stock Fund (the Master Trust) was established to
hold investments in the Peabody Energy Stock Fund for this Plan as well as Peabody’s other defined
contribution plans. Total investment income (loss) of the Master Trust is allocated to each plan
investing in the Master Trust based on the units held in the Master Trust by each plan.
Notes Receivable from Participants
Notes receivable from participants are measured at their unpaid principal balance plus any accrued
but unpaid interest. Interest income on notes receivable from participants is recorded when it is
earned. Loan origination fees are included in notes receivable from participants and are not
reflected as administrative expenses on the statement of changes in net assets available for
benefits. No allowance for credit losses has been recorded as of December 31, 2010 or 2009. If a
participant ceases to make loan repayments and the Plan Administrator deems the note receivable to
be a distribution, the note receivable balance is reduced and a benefit payment is recorded.
Payment of Benefits
Benefit distributions are recorded when paid.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting
principles requires management to make estimates that affect the amounts reported in the financial
statements and accompanying notes. Actual results could differ from those estimates.
8
Peabody Investments Corp.
Employee Retirement Account
Notes to Financial Statements
3. Fair Value Measurements
The Plan Sponsor uses a three-level fair value hierarchy that categorizes assets and liabilities
measured at fair value based on the observability of the inputs utilized in the valuation. These
levels include: Level 1, inputs are quoted prices in active markets for identical assets or
liabilities; Level 2, inputs other than quoted prices included in Level 1 that are directly or
indirectly observable through market-corroborated inputs; and Level 3, inputs are unobservable, or
observable but cannot be market-corroborated, requiring the Plan Sponsor to make assumptions about
pricing by market participants. There were no Level 3 investments in the Plan as of December 31,
2010 and 2009.
A financial instrument’s level within the valuation hierarchy is based upon the lowest level of
input that is significant to the fair value measurement. Following is a description of the
valuation techniques and inputs used for each major class of investments measured at fair value,
including the general classification of such investments pursuant to the valuation hierarchy.
Mutual Funds
Plan investments include a wide variety of mutual fund types that can generally be classified as
holding primarily equity securities, fixed income securities, or a combination of equity and fixed
income securities aimed at certain target retirement dates. Shares of mutual funds are valued at
quoted market prices, which represent the net asset value (NAV) of shares held by the Plan at
year-end. NAV is based on the value of the underlying assets owned by the fund, minus its
liabilities, and then divided by the number of shares outstanding. The NAV for these investments is
a quoted price in an active market and is classified within Level 1 of the valuation hierarchy.
Common/Collective Trust
Units in the common/collective trust are valued at NAV at year-end. These investments are
classified within Level 2 of the valuation hierarchy as the NAV for these investments is a derived
price in an active market. This fund is primarily invested in guaranteed and synthetic investment
contracts. Participant-directed redemptions have no restrictions; however, the Plan is required to
provide a one-year redemption notice to liquidate its entire share in the fund. The NAV has been
estimated based on the fair value of the underlying investment contracts in the fund as reported by
the issuer of the fund. The fair value differs from the contract value. As previously discussed in
Note 2, contract value is the relevant measurement attributable to fully benefit-responsive
investment contracts because contract value is the amount participants would receive if they were
to initiate permitted transactions under the terms of the Plan.
Peabody Energy Stock Fund
The Peabody Energy Stock Fund is valued at its unit closing price (comprised of quoted market price
plus uninvested cash position, if any) reported on the active market on which the security is
traded and is classified within Level 1 of the valuation hierarchy.
9
Peabody Investments Corp.
Employee Retirement Account
Notes to Financial Statements
The methods described above may produce a fair value calculation that may not be indicative of
net realizable value or reflective of future fair values. Furthermore, while the Plan Sponsor
believes its valuation methods are appropriate and consistent with other market participants, the
use of different methodologies or assumptions to determine the fair value of certain financial
instruments could result in a different fair value measurement at the reporting date. The inputs or
methodologies used for valuating investments are not necessarily an indication of the risk
associated with investing in those investments.
The following tables present the fair value hierarchy of the investments on the statements of net
assets available for benefits.
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December 31, 2010 |
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| |
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Level 1 |
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Level 2 |
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Total |
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(Dollars in thousands) |
|
Equity mutual funds |
|
$ |
248,921 |
|
|
$ |
— |
|
|
$ |
248,921 |
|
Fixed income mutual funds |
|
|
42,857 |
|
|
|
— |
|
|
|
42,857 |
|
Target retirement mutual funds |
|
|
154,511 |
|
|
|
— |
|
|
|
154,511 |
|
Fixed income common/collective trust |
|
|
— |
|
|
|
147,150 |
|
|
|
147,150 |
|
Peabody Energy Stock Fund (1) |
|
|
80,872 |
|
|
|
— |
|
|
|
80,872 |
|
|
|
|
|
|
|
|
|
|
|
Total assets at fair value |
|
$ |
527,161 |
|
|
$ |
147,150 |
|
|
$ |
674,311 |
|
|
|
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|
|
|
|
|
|
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| |
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| |
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December 31, 2009 |
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| |
|
Level 1 |
|
|
Level 2 |
|
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Total |
|
| |
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(Dollars in thousands) |
|
Equity mutual funds |
|
$ |
204,823 |
|
|
$ |
— |
|
|
$ |
204,823 |
|
Fixed income mutual funds |
|
|
35,777 |
|
|
|
— |
|
|
|
35,777 |
|
Target retirement mutual funds |
|
|
113,897 |
|
|
|
— |
|
|
|
113,897 |
|
Fixed income common/collective trust |
|
|
— |
|
|
|
130,403 |
|
|
|
130,403 |
|
Peabody Energy Stock Fund (1) |
|
|
63,403 |
|
|
|
— |
|
|
|
63,403 |
|
|
|
|
|
|
|
|
|
|
|
Total assets at fair value |
|
$ |
417,900 |
|
|
$ |
130,403 |
|
|
$ |
548,303 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
|
Interest in Master Trust |
10
Peabody Investments Corp.
Employee Retirement Account
Notes to Financial Statements
4. Investments
The following table presents investment information for the Master Trust:
| |
|
|
|
|
|
|
|
|
| |
|
Years Ended December 31, |
|
| |
|
2010 |
|
|
2009 |
|
| |
|
(Dollars in thousands) |
|
Investments, at fair value: |
|
|
|
|
|
|
|
|
Peabody Energy Stock Fund |
|
$ |
82,306 |
|
|
$ |
64,603 |
|
|
|
|
|
|
|
|
Plan’s interest in Master Trust |
|
|
98 |
% |
|
|
98 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Master Trust net investment income: |
|
|
|
|
|
|
|
|
Dividend income |
|
$ |
336 |
|
|
$ |
377 |
|
Net appreciation of common stock |
|
|
25,181 |
|
|
|
33,995 |
|
|
|
|
|
|
|
|
Net investment income |
|
$ |
25,517 |
|
|
$ |
34,372 |
|
|
|
|
|
|
|
|
Investments representing 5% or more of the fair value of the Plan’s net assets were as
follows:
| |
|
|
|
|
|
|
|
|
| |
|
December 31, |
|
| |
|
2010 |
|
|
2009 |
|
| |
|
(Dollars in thousands) |
|
Mutual funds: |
|
|
|
|
|
|
|
|
Vanguard 500 Index Fund |
|
$ |
70,373 |
|
|
$ |
59,086 |
|
Vanguard PRIMECAP Fund |
|
|
46,192 |
|
|
|
41,851 |
|
Common/collective trust: |
|
|
|
|
|
|
|
|
Vanguard Retirement Savings Trust |
|
|
147,150 |
|
|
|
130,403 |
|
11
Peabody Investments Corp.
Employee Retirement Account
Notes to Financial Statements
5. Reconciliation of Financial Statements to Form 5500
The following is a reconciliation of net assets available for benefits per the financial statements
to the Form 5500:
| |
|
|
|
|
|
|
|
|
| |
|
December 31, |
|
| |
|
2010 |
|
|
2009 |
|
| |
|
(Dollars in thousands) |
|
Net assets available for benefits per the
financial statements |
|
$ |
710,539 |
|
|
$ |
583,308 |
|
|
|
|
|
|
|
|
|
|
Adjustment from contract value to fair value for
fully benefit-responsive contracts |
|
|
5,794 |
|
|
|
2,819 |
|
|
|
|
|
|
|
|
Net assets available for benefits per the Form 5500 |
|
$ |
716,333 |
|
|
$ |
586,127 |
|
|
|
|
|
|
|
|
6. Related — Party Transactions
The Plan invests in shares of mutual funds and units in a common/collective trust managed by an
affiliate of its trustee, Vanguard Fiduciary Trust Company, a party-in-interest with respect to the
Plan. These transactions are covered by an exemption from the “prohibited transaction” provisions
of ERISA and the Internal Revenue Code of 1986 (the Code), as amended. The Plan also invests in
Peabody stock through the Peabody Energy Stock Fund, which is a permitted party-in-interest
transaction.
7. Income Tax Status
The Plan received a determination letter from the IRS dated February 9, 2004, stating that the Plan
is qualified under Section 401(a) of the Code and, therefore, the related trust was exempt from
taxation. Once qualified, the Plan is required to operate in conformity with the Code to maintain
its qualification. The Plan was amended and restated subsequent to the IRS determination letter and
applied for a new determination letter in January 2010. The Plan’s administrator believes the Plan
is being operated in compliance with the applicable requirements of the Code and, therefore,
believes the Plan, as amended, is qualified and the related trust is tax-exempt.
8. Risks and Uncertainties
The Plan invests in various investment securities. Investment securities are exposed to various
risks such as interest rate, market and credit risks. Due to the level of risk associated with
certain investment securities, it is at least reasonably possible that changes in the values of
investment securities will occur in the near term and that such changes could materially affect
participants’ account balances and the amounts reported in the statements of net assets available
for benefits.
12
Supplemental Schedule
Peabody Investments Corp.
Employee Retirement Account
Employer ID #20-0480084
Plan #003
Schedule H, Line 4i — Schedule of Assets (Held at End of Year)
December 31, 2010
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
(e) Current |
|
| (a) |
|
|
(b) Identity of Issue |
|
(c) Description of Investment |
|
(d) Cost(1) |
|
|
Value |
|
| * |
|
|
Vanguard 500 Index Fund |
|
607,611 shares of mutual fund |
|
|
|
|
|
$ |
70,373,467 |
|
| * |
|
|
Vanguard PRIMECAP Fund |
|
702,009 shares of mutual fund |
|
|
|
|
|
|
46,192,214 |
|
| * |
|
|
Vanguard International Growth Fund |
|
1,336,536 shares of mutual fund |
|
|
|
|
|
|
25,848,616 |
|
| * |
|
|
Vanguard Total Bond Market Index Fund |
|
2,225,055 shares of mutual fund |
|
|
|
|
|
|
23,585,580 |
|
| * |
|
|
Vanguard Small-Cap Index Fund |
|
576,541 shares of mutual fund |
|
|
|
|
|
|
20,034,817 |
|
| * |
|
|
Vanguard Windsor II Fund |
|
516,014 shares of mutual fund |
|
|
|
|
|
|
13,246,079 |
|
| |
|
|
Sound Shore Fund |
|
336,190 shares of mutual fund |
|
|
|
|
|
|
10,697,573 |
|
| |
|
|
T. Rowe Price Mid-Cap Growth Fund |
|
164,291 shares of mutual fund |
|
|
|
|
|
|
9,615,939 |
|
| * |
|
|
Vanguard Extended Market Index Fund |
|
222,027 shares of mutual fund |
|
|
|
|
|
|
9,160,853 |
|
| * |
|
|
Vanguard Emerging Markets Stock Index Fund |
|
268,859 shares of mutual fund |
|
|
|
|
|
|
8,157,174 |
|
| * |
|
|
Vanguard Total Stock Market Index Fund |
|
205,235 shares of mutual fund |
|
|
|
|
|
|
6,477,223 |
|
| * |
|
|
Vanguard Long-Term Bond Index Fund |
|
504,058 shares of mutual fund |
|
|
|
|
|
|
6,068,859 |
|
| * |
|
|
Vanguard REIT Index Fund |
|
317,789 shares of mutual fund |
|
|
|
|
|
|
5,840,960 |
|
| |
|
|
Harbor Capital Appreciation Fund |
|
158,371 shares of mutual fund |
|
|
|
|
|
|
5,815,392 |
|
| * |
|
|
Vanguard High-Yield Corporate Fund |
|
859,482 shares of mutual fund |
|
|
|
|
|
|
4,899,046 |
|
| * |
|
|
Vanguard GNMA Fund |
|
403,833 shares of mutual fund |
|
|
|
|
|
|
4,337,166 |
|
| * |
|
|
Vanguard Long-Term Treasury Fund |
|
358,290 shares of mutual fund |
|
|
|
|
|
|
3,966,269 |
|
| |
|
|
T. Rowe Price Small-Cap Stock Fund |
|
113,111 shares of mutual fund |
|
|
|
|
|
|
3,894,399 |
|
| * |
|
|
Vanguard Developed Markets Index Fund |
|
341,823 shares of mutual fund |
|
|
|
|
|
|
3,438,740 |
|
| * |
|
|
Vanguard International Value Fund |
|
85,579 shares of mutual fund |
|
|
|
|
|
|
2,752,222 |
|
| |
|
|
MSIFT U.S. Small Cap Value Portfolio |
|
90,531 shares of mutual fund |
|
|
|
|
|
|
2,439,808 |
|
| |
|
|
Lazard U.S. Small Cap Equity Value |
|
134,990 shares of mutual fund |
|
|
|
|
|
|
1,964,099 |
|
| |
|
|
Baron Asset Fund |
|
27,113 shares of mutual fund |
|
|
|
|
|
|
1,498,526 |
|
| * |
|
|
Vanguard Prime Money Market Fund (2) |
|
1,472,959 shares of mutual fund |
|
|
1,472,959 |
|
|
|
1,472,959 |
|
| * |
|
|
Vanguard Target Retirement Income Fund |
|
323,349 shares of mutual fund |
|
|
|
|
|
|
3,647,374 |
|
| * |
|
|
Vanguard Target Retirement 2005 Fund |
|
107,901 shares of mutual fund |
|
|
|
|
|
|
1,265,683 |
|
| * |
|
|
Vanguard Target Retirement 2010 Fund |
|
460,159 shares of mutual fund |
|
|
|
|
|
|
10,266,138 |
|
| * |
|
|
Vanguard Target Retirement 2015 Fund |
|
1,876,000 shares of mutual fund |
|
|
|
|
|
|
23,299,916 |
|
13
Supplemental Schedule
Peabody Investments Corp.
Employee Retirement Account
Employer ID #20-0480084
Plan #003
Schedule H, Line 4i — Schedule of Assets (Held at End of Year) (continued)
December 31, 2010
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
(e) Current |
|
| (a) |
|
|
(b) Identity of Issue |
|
(c) Description of Investment |
|
(d) Cost(1) |
|
|
Value |
|
| * |
|
|
Vanguard Target Retirement 2020 Fund |
|
1,537,287 shares of mutual fund |
|
|
|
|
|
|
33,974,036 |
|
| * |
|
|
Vanguard Target Retirement 2025 Fund |
|
1,959,846 shares of mutual fund |
|
|
|
|
|
|
24,733,256 |
|
| * |
|
|
Vanguard Target Retirement 2030 Fund |
|
679,377 shares of mutual fund |
|
|
|
|
|
|
14,728,899 |
|
| * |
|
|
Vanguard Target Retirement 2035 Fund |
|
875,895 shares of mutual fund |
|
|
|
|
|
|
11,465,462 |
|
| * |
|
|
Vanguard Target Retirement 2040 Fund |
|
484,065 shares of mutual fund |
|
|
|
|
|
|
10,407,405 |
|
| * |
|
|
Vanguard Target Retirement 2045 Fund |
|
783,089 shares of mutual fund |
|
|
|
|
|
|
10,571,702 |
|
| * |
|
|
Vanguard Target Retirement 2050 Fund |
|
474,338 shares of mutual fund |
|
|
|
|
|
|
10,150,829 |
|
| * |
|
|
Vanguard Retirement Savings Trust |
|
141,355,646 units of common/collective trust |
|
|
|
|
|
|
147,150,141 |
|
| * |
|
|
Various participants |
|
Participant notes receivable, interest rates
from 4.25% to 9.50%, maturities through December 8, 2020 |
|
|
|
|
|
|
21,996,687 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
$ |
615,435,508 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| * |
|
Denotes party-in-interest |
| |
| (1) |
|
Cost is not presented for participant directed investments |
| |
| (2) |
|
Non-participant directed investment |
14
SIGNATURE
Peabody Investments Corp. Employee Retirement Account. Pursuant to the requirements of the
Securities Exchange Act of 1934, the Plan Administrator has duly caused this annual report to be
signed on its behalf by the undersigned hereunto duly authorized.
| |
|
|
|
|
| |
Peabody Investments Corp.
Employee Retirement Account
|
|
| Date: June 17, 2011 |
By: |
/s/ SHARON D. FIEHLER
|
|
| |
|
Sharon D. Fiehler |
|
| |
|
Peabody Energy Corporation
Executive Vice President and
Chief Administrative Officer |
|
15
EXHIBIT INDEX
The exhibit below is numbered in accordance with the Exhibit Table of Item 601 of Regulation S-K.
| |
|
|
| Exhibit |
|
|
| No. |
|
Description of Exhibit |
23
|
|
Consent of Ernst & Young LLP, Independent Registered Public
Accounting Firm. |
16