FORM 10-Q |
( X ) | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2012 |
( ) | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from ____________ to ____________ |
Delaware | 13-4004153 | |
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation or organization) | Identification No.) |
701 Market Street, St. Louis, Missouri | 63101-1826 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer ( X ) | Accelerated filer ( ) | |||||
Non-accelerated filer ( ) | Smaller reporting company ( ) | |||||
(Do not check if a smaller reporting company) |
Page | |
PART I — FINANCIAL INFORMATION | |
Item 1. Financial Statements. | |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
(Dollars in millions, except per share data) | ||||||||||||||||
Revenues | ||||||||||||||||
Sales | $ | 1,797.2 | $ | 1,682.2 | $ | 5,282.0 | $ | 5,029.4 | ||||||||
Other revenues | 261.6 | 298.4 | 778.6 | 636.7 | ||||||||||||
Total revenues | 2,058.8 | 1,980.6 | 6,060.6 | 5,666.1 | ||||||||||||
Costs and expenses | ||||||||||||||||
Operating costs and expenses | 1,509.0 | 1,399.4 | 4,396.8 | 3,958.7 | ||||||||||||
Depreciation, depletion and amortization | 172.5 | 108.4 | 470.7 | 317.6 | ||||||||||||
Asset retirement obligation expenses | 21.1 | 14.6 | 53.3 | 43.3 | ||||||||||||
Selling and administrative expenses | 68.7 | 71.2 | 202.4 | 191.4 | ||||||||||||
Other operating (income) loss: | ||||||||||||||||
Net gain on disposal or exchange of assets | (0.2 | ) | (1.7 | ) | (7.6 | ) | (31.4 | ) | ||||||||
Loss from equity affiliates | 21.2 | 3.2 | 50.5 | 9.0 | ||||||||||||
Operating profit | 266.5 | 385.5 | 894.5 | 1,177.5 | ||||||||||||
Interest expense | 99.4 | 59.2 | 308.3 | 159.1 | ||||||||||||
Interest income | (5.1 | ) | (4.1 | ) | (19.7 | ) | (11.7 | ) | ||||||||
Income from continuing operations before income taxes | 172.2 | 330.4 | 605.9 | 1,030.1 | ||||||||||||
Income tax provision | 49.3 | 39.2 | 85.5 | 238.8 | ||||||||||||
Income from continuing operations, net of income taxes | 122.9 | 291.2 | 520.4 | 791.3 | ||||||||||||
Loss from discontinued operations, net of income taxes | (81.3 | ) | (9.7 | ) | (92.7 | ) | (38.9 | ) | ||||||||
Net income | 41.6 | 281.5 | 427.7 | 752.4 | ||||||||||||
Less: Net (loss) income attributable to noncontrolling interests | (1.3 | ) | 7.4 | 7.4 | 17.0 | |||||||||||
Net income attributable to common stockholders | $ | 42.9 | $ | 274.1 | $ | 420.3 | $ | 735.4 | ||||||||
Income From Continuing Operations | ||||||||||||||||
Basic earnings per share | $ | 0.46 | $ | 1.05 | $ | 1.89 | $ | 2.86 | ||||||||
Diluted earnings per share | $ | 0.46 | $ | 1.04 | $ | 1.89 | $ | 2.84 | ||||||||
Net Income Attributable to Common Stockholders | ||||||||||||||||
Basic earnings per share | $ | 0.16 | $ | 1.01 | $ | 1.55 | $ | 2.72 | ||||||||
Diluted earnings per share | $ | 0.16 | $ | 1.00 | $ | 1.55 | $ | 2.71 | ||||||||
Dividends declared per share | $ | 0.085 | $ | 0.085 | $ | 0.255 | $ | 0.255 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(Dollars in millions) | |||||||||||||||
Net income | $ | 41.6 | $ | 281.5 | $ | 427.7 | $ | 752.4 | |||||||
Other comprehensive income, net of income taxes: | |||||||||||||||
Net unrealized holding losses on available-for-sale securities (net of respective tax benefits of $3.0, $2.0, $11.2 and $2.3) | |||||||||||||||
Unrealized holding losses on available-for-sale securities | (5.1 | ) | (4.4 | ) | (19.2 | ) | (4.2 | ) | |||||||
Less: Reclassification for realized gains included in net income | — | (0.1 | ) | — | (0.1 | ) | |||||||||
Net unrealized holding losses on available-for-sale securities | (5.1 | ) | (4.5 | ) | (19.2 | ) | (4.3 | ) | |||||||
Net unrealized gains (losses) on cash flow hedges (net of respective tax provision (benefit) of $36.8, ($140.3), $39.7 and ($66.7)) | |||||||||||||||
Increase (decrease) in fair value of cash flow hedges | 111.5 | (135.9 | ) | 302.0 | 79.7 | ||||||||||
Less: Reclassification for realized gains included in net income | (57.7 | ) | (61.5 | ) | (179.2 | ) | (180.3 | ) | |||||||
Net unrealized gains (losses) on cash flow hedges | 53.8 | (197.4 | ) | 122.8 | (100.6 | ) | |||||||||
Postretirement plans and workers' compensation obligations (net of respective tax provisions of $8.1, $6.3, $24.2 and $12.8) | |||||||||||||||
Net actuarial loss for the period | — | — | — | 3.5 | |||||||||||
Amortization of actuarial loss and prior service cost | 13.9 | 10.2 | 41.6 | 30.2 | |||||||||||
Postretirement plan and workers' compensation obligations | 13.9 | 10.2 | 41.6 | 33.7 | |||||||||||
Foreign currency translation adjustment | 13.8 | — | 20.4 | — | |||||||||||
Other comprehensive income (loss) | 76.4 | (191.7 | ) | 165.6 | (71.2 | ) | |||||||||
Comprehensive income | 118.0 | 89.8 | 593.3 | 681.2 | |||||||||||
Less: Comprehensive (loss) income attributable to noncontrolling interests | (1.3 | ) | 7.4 | 7.4 | 17.0 | ||||||||||
Comprehensive income attributable to common stockholders | $ | 119.3 | $ | 82.4 | $ | 585.9 | $ | 664.2 |
(Unaudited) | ||||||||
September 30, 2012 | December 31, 2011 | |||||||
(Amounts in millions, except per share data) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 648.0 | $ | 799.1 | ||||
Accounts receivable, net of allowance for doubtful accounts of $15.2 at September 30, 2012 and $17.0 at December 31, 2011 | 682.2 | 922.5 | ||||||
Inventories | 554.9 | 444.4 | ||||||
Assets from coal trading activities, net | 56.2 | 44.6 | ||||||
Deferred income taxes | 15.8 | 27.3 | ||||||
Other current assets | 697.6 | 768.0 | ||||||
Total current assets | 2,654.7 | 3,005.9 | ||||||
Property, plant, equipment and mine development | ||||||||
Land and coal interests | 11,875.2 | 10,630.5 | ||||||
Buildings and improvements | 1,268.3 | 1,084.2 | ||||||
Machinery and equipment | 3,175.8 | 2,857.3 | ||||||
Less: accumulated depreciation, depletion and amortization | (3,808.2 | ) | (3,320.4 | ) | ||||
Property, plant, equipment and mine development, net | 12,511.1 | 11,251.6 | ||||||
Investments and other assets | 1,684.6 | 2,475.5 | ||||||
Total assets | $ | 16,850.4 | $ | 16,733.0 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Current maturities of long-term debt | $ | 124.8 | $ | 101.1 | ||||
Liabilities from coal trading activities, net | 19.9 | 10.3 | ||||||
Accounts payable and accrued expenses | 1,645.1 | 1,712.3 | ||||||
Total current liabilities | 1,789.8 | 1,823.7 | ||||||
Long-term debt, less current maturities | 6,238.3 | 6,556.4 | ||||||
Deferred income taxes | 385.0 | 523.2 | ||||||
Asset retirement obligations | 662.4 | 615.2 | ||||||
Accrued postretirement benefit costs | 1,054.3 | 1,053.1 | ||||||
Other noncurrent liabilities | 743.6 | 645.6 | ||||||
Total liabilities | 10,873.4 | 11,217.2 | ||||||
Stockholders’ equity | ||||||||
Preferred Stock — $0.01 per share par value; 10.0 shares authorized; no shares issued or outstanding as of September 30, 2012 or December 31, 2011 | — | — | ||||||
Series A Junior Participating Preferred Stock — $0.01 per share par value; no shares authorized as of September 30, 2012 and 1.5 shares authorized as of December 31, 2011; no shares issued or outstanding as of September 30, 2012 or December 31, 2011 | n.a. | — | ||||||
Perpetual Preferred Stock — 0.8 shares authorized, no shares issued or outstanding as of September 30, 2012 or December 31, 2011 | — | — | ||||||
Series Common Stock — $0.01 per share par value; 40.0 shares authorized, no shares issued or outstanding as of September 30, 2012 or December 31, 2011 | — | — | ||||||
Common Stock — $0.01 per share par value; 800.0 shares authorized, 282.0 shares issued and 268.3 shares outstanding as of September 30, 2012 and 280.3 shares issued and 271.1 shares outstanding as of December 31, 2011 | 2.8 | 2.8 | ||||||
Additional paid-in capital | 2,284.9 | 2,234.0 | ||||||
Retained earnings | 4,095.2 | 3,744.0 | ||||||
Accumulated other comprehensive income (loss) | 23.2 | (142.4 | ) | |||||
Treasury shares, at cost: 13.7 shares as of September 30, 2012 and 9.2 shares as of December 31, 2011 | (461.5 | ) | (353.3 | ) | ||||
Peabody Energy Corporation’s stockholders’ equity | 5,944.6 | 5,485.1 | ||||||
Noncontrolling interests | 32.4 | 30.7 | ||||||
Total stockholders’ equity | 5,977.0 | 5,515.8 | ||||||
Total liabilities and stockholders’ equity | $ | 16,850.4 | $ | 16,733.0 |
Nine Months Ended September 30, | ||||||||
2012 | 2011 | |||||||
(Dollars in millions) | ||||||||
Cash Flows From Operating Activities | ||||||||
Net income | $ | 427.7 | $ | 752.4 | ||||
Loss from discontinued operations, net of income taxes | 92.7 | 38.9 | ||||||
Income from continuing operations, net of income taxes | 520.4 | 791.3 | ||||||
Adjustments to reconcile income from continuing operations, net of income taxes to net cash provided by operating activities: | ||||||||
Depreciation, depletion and amortization | 470.7 | 317.6 | ||||||
Deferred income taxes | (162.6 | ) | 48.2 | |||||
Share-based compensation | 34.9 | 32.4 | ||||||
Net gain on disposal or exchange of assets | (7.6 | ) | (31.4 | ) | ||||
Loss from equity affiliates | 50.5 | 9.0 | ||||||
Changes in current assets and liabilities: | ||||||||
Accounts receivable | 259.0 | (11.8 | ) | |||||
Change in receivable from accounts receivable securitization program | (50.0 | ) | — | |||||
Inventories | (117.4 | ) | (12.3 | ) | ||||
Net assets from coal trading activities | 145.6 | 71.7 | ||||||
Other current assets | 42.7 | (42.3 | ) | |||||
Accounts payable and accrued expenses | 84.6 | (15.6 | ) | |||||
Asset retirement obligations | 55.6 | 27.2 | ||||||
Accrued postretirement benefit costs | 27.7 | 26.6 | ||||||
Pension costs | 26.0 | 25.5 | ||||||
Contributions to pension plans | (1.3 | ) | (1.3 | ) | ||||
Other, net | (5.1 | ) | (18.1 | ) | ||||
Net cash provided by continuing operations | 1,373.7 | 1,216.7 | ||||||
Net cash used in discontinued operations | (82.2 | ) | (26.2 | ) | ||||
Net cash provided by operating activities | 1,291.5 | 1,190.5 | ||||||
Cash Flows From Investing Activities | ||||||||
Additions to property, plant, equipment and mine development | (732.1 | ) | (553.4 | ) | ||||
Federal coal lease expenditures | (247.9 | ) | (42.4 | ) | ||||
Investment in Prairie State Energy Campus | (9.4 | ) | (29.8 | ) | ||||
Proceeds from disposal of assets | 93.5 | 12.1 | ||||||
Investments in equity affiliates and joint ventures | — | (39.8 | ) | |||||
Proceeds from sales and maturities of debt and equity securities | 39.0 | 53.3 | ||||||
Purchases of debt and equity securities | (23.8 | ) | (44.1 | ) | ||||
Purchases of short-term investments | — | (100.0 | ) | |||||
Proceeds from sale of short term investments | — | 100.0 | ||||||
Investment in shares of Macarthur Coal Limited | — | (45.5 | ) | |||||
Contributions to joint ventures | (531.2 | ) | — | |||||
Distributions from joint ventures | 527.7 | — | ||||||
Repayment of loans from related parties | 720.2 | — | ||||||
Advances to related parties | (743.4 | ) | — | |||||
Other, net | (3.2 | ) | (4.4 | ) | ||||
Net cash used in continuing operations | (910.6 | ) | (694.0 | ) | ||||
Net cash used in discontinued operations | (11.2 | ) | (62.8 | ) | ||||
Net cash used in investing activities | (921.8 | ) | (756.8 | ) | ||||
Cash Flows From Financing Activities | ||||||||
Payments of long-term debt | (305.7 | ) | (248.4 | ) | ||||
Common stock repurchase | (99.9 | ) | — | |||||
Acquisition of MCG Coal Holdings Pty Ltd noncontrolling interests | (49.8 | ) | — | |||||
Dividends paid | (69.1 | ) | (69.1 | ) | ||||
Repurchase of employee common stock relinquished for tax withholding | (8.3 | ) | (16.1 | ) | ||||
Excess tax benefits related to share-based compensation | 3.6 | 6.1 | ||||||
Other, net | 8.4 | 0.2 | ||||||
Net cash used in financing activities | (520.8 | ) | (327.3 | ) | ||||
Net change in cash and cash equivalents | (151.1 | ) | 106.4 | |||||
Cash and cash equivalents at beginning of period | 799.1 | 1,295.2 | ||||||
Cash and cash equivalents at end of period | $ | 648.0 | $ | 1,401.6 |
Peabody Energy Corporation’s Stockholders’ Equity | |||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | Total Stockholders’ Equity | |||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||
December 31, 2011 | $ | 2.8 | $ | 2,234.0 | $ | (353.3 | ) | $ | 3,744.0 | $ | (142.4 | ) | $ | 30.7 | $ | 5,515.8 | |||||||||||
Net income | — | — | — | 420.3 | — | 7.4 | 427.7 | ||||||||||||||||||||
Net unrealized losses on available-for-sale securities (net of $11.2 tax benefit) | — | — | — | — | (19.2 | ) | — | (19.2 | ) | ||||||||||||||||||
Increase in fair value of cash flow hedges (net of $39.7 tax provision) | — | — | — | — | 122.8 | — | 122.8 | ||||||||||||||||||||
Postretirement plans and workers’ compensation obligations (net of $24.2 tax provision) | — | — | — | — | 41.6 | — | 41.6 | ||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | 20.4 | — | 20.4 | ||||||||||||||||||||
Dividends paid | — | — | — | (69.1 | ) | — | — | (69.1 | ) | ||||||||||||||||||
Share-based compensation | — | 34.9 | — | — | — | — | 34.9 | ||||||||||||||||||||
Excess tax benefits related to share-based compensation | — | 3.6 | — | — | — | — | 3.6 | ||||||||||||||||||||
Stock options exercised | — | 1.7 | — | — | — | — | 1.7 | ||||||||||||||||||||
Employee stock purchases | — | 7.1 | — | — | — | — | 7.1 | ||||||||||||||||||||
Repurchase of employee common stock relinquished for tax withholding | — | — | (8.3 | ) | — | — | — | (8.3 | ) | ||||||||||||||||||
Common stock repurchase | — | — | (99.9 | ) | — | — | — | (99.9 | ) | ||||||||||||||||||
MCG Coal Holdings Pty Ltd noncontrolling interests at conversion | — | — | — | — | — | 53.4 | 53.4 | ||||||||||||||||||||
Acquisition of MCG Coal Holdings Pty Ltd noncontrolling interests | — | 3.6 | — | — | — | (53.4 | ) | (49.8 | ) | ||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | (5.7 | ) | (5.7 | ) | ||||||||||||||||||
September 30, 2012 | $ | 2.8 | $ | 2,284.9 | $ | (461.5 | ) | $ | 4,095.2 | $ | 23.2 | $ | 32.4 | $ | 5,977.0 |
Preliminary | Updated | ||||||||||
Allocations | Adjustments | Allocations | |||||||||
(Dollars in millions) | |||||||||||
Accounts receivable, net | $ | 106.6 | $ | 8.8 | $ | 115.4 | |||||
Inventories | 67.1 | (10.5 | ) | 56.6 | |||||||
Other current assets | 137.5 | (3.9 | ) | 133.6 | |||||||
Property, plant, equipment and mine development | 3,457.0 | 258.6 | 3,715.6 | ||||||||
Investments and other assets | 1,275.1 | (184.3 | ) | 1,090.8 | |||||||
Current maturities of long-term debt | (11.0 | ) | — | (11.0 | ) | ||||||
Accounts payable and accrued expenses | (133.8 | ) | (26.1 | ) | (159.9 | ) | |||||
Long-term debt, less current maturities | (59.2 | ) | — | (59.2 | ) | ||||||
Asset retirement obligations | (39.3 | ) | (15.2 | ) | (54.5 | ) | |||||
Other noncurrent liabilities | (31.4 | ) | (27.4 | ) | (58.8 | ) | |||||
Noncontrolling interests | (2,011.9 | ) | — | (2,011.9 | ) | ||||||
Total purchase price, net of cash acquired of $261.2 | $ | 2,756.7 | $ | — | $ | 2,756.7 |
Three Months Ended | Nine Months Ended | ||||||
September 30, 2011 | September 30, 2011 | ||||||
(Dollars in millions, except per share amounts) | |||||||
Revenue | $ | 2,194.1 | $ | 6,154.7 | |||
Income from continuing operations, net of income taxes | 256.0 | 727.6 | |||||
Basic earnings per share | $ | 0.88 | $ | 2.48 | |||
Diluted earnings per share | 0.87 | 2.48 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
(Dollars in millions) | ||||||||||||||||
Total revenues | $ | 41.5 | $ | 55.3 | $ | 171.5 | $ | 122.7 | ||||||||
Loss from discontinued operations before income taxes | $ | 127.6 | $ | 12.1 | $ | 146.6 | $ | 53.9 | ||||||||
Income tax benefit | 46.3 | 2.4 | 53.9 | 15.0 | ||||||||||||
Loss from discontinued operations, net of income taxes | $ | 81.3 | $ | 9.7 | $ | 92.7 | $ | 38.9 |
(Unaudited) | ||||||||
September 30, 2012 | December 31, 2011 | |||||||
(Dollars in millions) | ||||||||
Assets: | ||||||||
Other current assets | $ | 48.4 | $ | 24.6 | ||||
Investments and other assets | 135.2 | 232.2 | ||||||
Total assets classified as discontinued operations | $ | 183.6 | $ | 256.8 | ||||
Liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 33.4 | $ | 63.9 | ||||
Other noncurrent liabilities | 59.8 | 59.6 | ||||||
Total liabilities classified as discontinued operations | $ | 93.2 | $ | 123.5 |
Available-for-sale securities | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(Dollars in millions) | ||||||||||||||||
Current: | ||||||||||||||||
Federal government securities | $ | 0.8 | $ | — | $ | — | $ | 0.8 | ||||||||
U.S. corporate bonds | 3.4 | — | — | 3.4 | ||||||||||||
Noncurrent: | ||||||||||||||||
Marketable equity securities | 66.5 | — | (40.0 | ) | 26.5 | |||||||||||
Federal government securities | 23.2 | 0.3 | — | 23.5 | ||||||||||||
U.S. corporate bonds | 12.9 | 0.2 | — | 13.1 | ||||||||||||
Total | $ | 106.8 | $ | 0.5 | $ | (40.0 | ) | $ | 67.3 |
Available-for-sale securities | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(Dollars in millions) | ||||||||||||||||
Current: | ||||||||||||||||
Federal government securities | $ | 3.3 | $ | — | $ | — | $ | 3.3 | ||||||||
U.S. corporate bonds | 3.9 | — | — | 3.9 | ||||||||||||
Noncurrent: | ||||||||||||||||
Marketable equity securities | 66.5 | — | (9.5 | ) | 57.0 | |||||||||||
Federal government securities | 11.3 | 0.2 | — | 11.5 | ||||||||||||
U.S. corporate bonds | 7.7 | 0.1 | — | 7.8 | ||||||||||||
Total | $ | 92.7 | $ | 0.3 | $ | (9.5 | ) | $ | 83.5 |
Contractual maturities for available-for-sale securities | Cost | Fair Value | ||||||
(Dollars in millions) | ||||||||
Due in one year or less | $ | 4.2 | $ | 4.2 | ||||
Due in one to five years | 36.1 | 36.6 | ||||||
Total | $ | 40.3 | $ | 40.8 |
September 30, 2012 | December 31, 2011 | ||||||
(Dollars in millions) | |||||||
Materials and supplies | $ | 157.0 | $ | 123.7 | |||
Raw coal | 162.2 | 108.1 | |||||
Saleable coal | 235.7 | 212.6 | |||||
Total | $ | 554.9 | $ | 444.4 |
Notional Amount by Year of Maturity | |||||||||||||||||||
Total | 2012 | 2013 | 2014 | 2015 | |||||||||||||||
Foreign Currency | |||||||||||||||||||
A$:US$ hedge contracts (A$ millions) | $ | 4,832.3 | $ | 566.1 | $ | 2,173.6 | $ | 1,513.5 | $ | 579.1 | |||||||||
Commodity Contracts | |||||||||||||||||||
Diesel fuel hedge contracts (million gallons) | 215.4 | 27.0 | 102.1 | 63.6 | 22.7 | ||||||||||||||
U.S. explosives hedge contracts (million MMBtu) | 4.6 | 0.8 | 2.6 | 1.2 | — |
Account Classification by | |||||||||||||||
Cash Flow Hedge | Fair Value Hedge | Economic Hedge | Fair Value Asset (Liability) | ||||||||||||
(Dollars in millions) | |||||||||||||||
Foreign Currency | |||||||||||||||
A$:US$ hedge contracts (A$ millions) | $ | 4,832.3 | $ | — | $ | — | $ | 511.7 | |||||||
Commodity Contracts | |||||||||||||||
Diesel fuel hedge contracts (million gallons) | 215.4 | — | — | 30.9 | |||||||||||
U.S. explosives hedge contracts (million MMBtu) | 4.6 | — | — | (5.9 | ) |
Three Months Ended September 30, 2012 | ||||||||||||||||||
Financial Instrument | Income Statement Classification Gains (Losses) - Realized | Gain recognized in income on non-designated derivatives | Gain recognized in other comprehensive income on derivatives (effective portion) | Gain reclassified from other comprehensive income into income (effective portion) | Gain reclassified from other comprehensive income into income (ineffective portion) | |||||||||||||
(Dollars in millions) | ||||||||||||||||||
Commodity swap contracts | Operating costs and expenses | $ | — | $ | 49.6 | $ | 11.2 | $ | 2.2 | |||||||||
Foreign currency forward and option contracts | Operating costs and expenses | — | 169.2 | 82.0 | — | |||||||||||||
Total | $ | — | $ | 218.8 | $ | 93.2 | $ | 2.2 | ||||||||||
Three Months Ended September 30, 2011 | ||||||||||||||||||
Financial Instrument | Income Statement Classification Gains (Losses) - Realized | Gain recognized in income on non-designated derivatives | Loss recognized in other comprehensive income on derivatives (effective portion) | Gain reclassified from other comprehensive income into income (effective portion) | Loss reclassified from other comprehensive income into income (ineffective portion) | |||||||||||||
(Dollars in millions) | ||||||||||||||||||
Commodity swap contracts | Operating costs and expenses | $ | — | $ | (51.2 | ) | $ | 8.5 | $ | (1.2 | ) | |||||||
Foreign currency forward and option contracts: | ||||||||||||||||||
— Operating costs | Operating costs and expenses | — | (269.1 | ) | 92.2 | — | ||||||||||||
— Capital expenditures | Depreciation, depletion and amortization | — | (0.5 | ) | — | — | ||||||||||||
Total | $ | — | $ | (320.8 | ) | $ | 100.7 | $ | (1.2 | ) | ||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||
Financial Instrument | Income Statement Classification Gains (Losses) - Realized | Gain recognized in income on non-designated derivatives | Gain recognized in other comprehensive income on derivatives (effective portion) | Gain reclassified from other comprehensive income into income (effective portion) | Loss reclassified from other comprehensive income into income (ineffective portion) | |||||||||||||
(Dollars in millions) | ||||||||||||||||||
Commodity swap contracts | Operating costs and expenses | $ | — | $ | 28.7 | $ | 39.0 | $ | (2.3 | ) | ||||||||
Foreign currency forward and option contracts | Operating costs and expenses | — | 297.5 | 276.6 | — | |||||||||||||
Total | $ | — | $ | 326.2 | $ | 315.6 | $ | (2.3 | ) | |||||||||
Nine Months Ended September 30, 2011 | ||||||||||||||||||
Financial Instrument | Income Statement Classification Gains (Losses) - Realized | Gain recognized in income on non-designated derivatives | Gain (loss) recognized in other comprehensive income on derivatives (effective portion) | Gain reclassified from other comprehensive income into income (effective portion) | Gain reclassified from other comprehensive income into income (ineffective portion) | |||||||||||||
(Dollars in millions) | ||||||||||||||||||
Commodity swap contracts | Operating costs and expenses | $ | — | $ | 20.9 | $ | 28.4 | $ | 0.4 | |||||||||
Foreign currency forward and option contracts: | ||||||||||||||||||
— Operating costs | Operating costs and expenses | — | 33.8 | 261.1 | — | |||||||||||||
— Capital expenditures | Depreciation, depletion and amortization | — | (0.7 | ) | — | — | ||||||||||||
Total | $ | — | $ | 54.0 | $ | 289.5 | $ | 0.4 |
Fair Value as of September 30, 2012 | ||||||||||||||||
Financial Instrument | Current Assets | Noncurrent Assets | Current Liabilities | Noncurrent Liabilities | ||||||||||||
(Dollars in millions) | ||||||||||||||||
Commodity swap contracts | $ | 32.8 | $ | 5.2 | $ | 6.1 | $ | 6.9 | ||||||||
Foreign currency forward and option contracts | 286.7 | 225.0 | — | — | ||||||||||||
Total | $ | 319.5 | $ | 230.2 | $ | 6.1 | $ | 6.9 |
Fair Value as of December 31, 2011 | ||||||||||||||||
Financial Instrument | Current Assets | Noncurrent Assets | Current Liabilities | Noncurrent Liabilities | ||||||||||||
(Dollars in millions) | ||||||||||||||||
Commodity swap contracts | $ | 43.4 | $ | 11.7 | $ | 7.1 | $ | 15.0 | ||||||||
Foreign currency forward and option contracts | 270.4 | 229.0 | 4.3 | 4.5 | ||||||||||||
Total | $ | 313.8 | $ | 240.7 | $ | 11.4 | $ | 19.5 |
September 30, 2012 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(Dollars in millions) | |||||||||||||||
Investments in debt and equity securities | $ | 67.3 | $ | — | $ | — | $ | 67.3 | |||||||
Commodity swap contracts | — | 25.0 | — | 25.0 | |||||||||||
Foreign currency forward and option contracts | — | 511.7 | — | 511.7 | |||||||||||
Total net financial assets | $ | 67.3 | $ | 536.7 | $ | — | $ | 604.0 |
December 31, 2011 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(Dollars in millions) | |||||||||||||||
Investments in debt and equity securities | $ | 83.5 | $ | — | $ | — | $ | 83.5 | |||||||
Commodity swap contracts | — | 33.0 | — | 33.0 | |||||||||||
Foreign currency forward and option contracts | — | 490.6 | — | 490.6 | |||||||||||
Total net financial assets | $ | 83.5 | $ | 523.6 | $ | — | $ | 607.1 |
• | Investments in debt and equity securities: valued based on quoted prices in active markets (Level 1). |
• | Commodity swap contracts — diesel fuel and explosives: valued based on a valuation that is corroborated by the use of market-based pricing (Level 2). |
• | Foreign currency forward and option contracts: valued utilizing inputs obtained in quoted public markets (Level 2). |
• | Cash and cash equivalents, accounts receivable, including those within the Company’s accounts receivable securitization program, and accounts payable and accrued expenses have carrying values which approximate fair value due to the short maturity or the liquid nature of these instruments. |
• | The Company’s investment in debt securities related to its pro-rata share of funding in NCIG were included in “Investments and other assets” in the condensed consolidated balance sheets as of December 31, 2011, at which time the debt securities were recorded at cost, which approximated fair value. The Company disposed of its remaining investment in debt securities related to NCIG during the nine months ended September 30, 2012. |
• | Long-term debt fair value estimates are based on observed prices for securities with an active trading market when available (Level 2), and otherwise on estimated borrowing rates to discount the cash flows to their present value (Level 3). The carrying amounts of the 7.875% Senior Notes due December 2026 and the Convertible Junior Subordinated Debentures due 2066 (the Debentures) are net of the respective unamortized note discounts. |
September 30, 2012 | December 31, 2011 | ||||||||||||||
Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||
(Dollars in millions) | |||||||||||||||
Long-term debt | $ | 6,363.1 | $ | 6,393.0 | $ | 6,657.5 | $ | 6,922.7 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
Trading Revenues by Type of Instrument | 2012 | 2011 | 2012 | 2011 | ||||||||||||
(Dollars in millions) | ||||||||||||||||
Commodity swaps and options | $ | 60.3 | $ | (0.6 | ) | $ | 110.9 | $ | (26.6 | ) | ||||||
Physical commodity purchase/sale contracts | (20.0 | ) | 29.6 | 21.9 | 60.9 | |||||||||||
Total trading revenues | $ | 40.3 | $ | 29.0 | $ | 132.8 | $ | 34.3 |
September 30, 2012 | December 31, 2011 | ||||||||||||||
Gross Basis | Net Basis | Gross Basis | Net Basis | ||||||||||||
(Dollars in millions) | |||||||||||||||
Assets from coal trading activities | $ | 444.8 | $ | 56.2 | $ | 170.4 | $ | 44.6 | |||||||
Liabilities from coal trading activities | (216.6 | ) | (19.9 | ) | (84.0 | ) | (10.3 | ) | |||||||
Subtotal | 228.2 | 36.3 | 86.4 | 34.3 | |||||||||||
Net margin held (1) | (191.9 | ) | — | (52.1 | ) | — | |||||||||
Net value of coal trading positions | $ | 36.3 | $ | 36.3 | $ | 34.3 | $ | 34.3 |
(1) | Represents margin held from exchanges of $191.9 million and $52.1 million at September 30, 2012 and December 31, 2011, respectively. Approximately $100 million and $23 million of the margin held at September 30, 2012 and December 31, 2011, respectively, related to cash flow hedges. |
September 30, 2012 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(Dollars in millions) | |||||||||||||||
Commodity swaps and options | $ | 2.0 | $ | 31.9 | $ | — | $ | 33.9 | |||||||
Physical commodity purchase/sale contracts | — | 1.5 | 0.9 | 2.4 | |||||||||||
Total net financial assets | $ | 2.0 | $ | 33.4 | $ | 0.9 | $ | 36.3 |
December 31, 2011 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(Dollars in millions) | |||||||||||||||
Commodity swaps and options | $ | 21.2 | $ | (1.9 | ) | $ | — | $ | 19.3 | ||||||
Physical commodity purchase/sale contracts | — | 6.3 | 8.7 | 15.0 | |||||||||||
Total net financial assets | $ | 21.2 | $ | 4.4 | $ | 8.7 | $ | 34.3 |
• | Commodity swaps and options: generally valued based on unadjusted quoted prices in active markets (Level 1) or a valuation that is corroborated by the use of market-based pricing (Level 2). |
• | Physical commodity purchase/sale contracts: purchases and sales at locations with significant market activity corroborated by market-based information (Level 2). |
Range | Weighted | ||||||||
Low | High | Average | |||||||
Quality adjustments | 2 | % | 22 | % | 14 | % | |||
Location differentials | 6 | % | 40 | % | 25 | % | |||
Non-performance adjustments | 4 | % | 4 | % | 4 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(Dollars in millions) | |||||||||||||||
Beginning of period | $ | 2.9 | $ | 9.9 | $ | 8.7 | $ | 18.6 | |||||||
Total net gains (losses) realized/unrealized: | |||||||||||||||
Included in earnings | 2.4 | (1.4 | ) | 12.8 | 10.7 | ||||||||||
Settlements | (4.4 | ) | (1.3 | ) | (20.6 | ) | (3.1 | ) | |||||||
Transfers out | — | 1.0 | — | (18.0 | ) | ||||||||||
End of period | $ | 0.9 | $ | 8.2 | $ | 0.9 | $ | 8.2 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(Dollars in millions) | |||||||||||||||
Changes in net unrealized gains (1) | $ | 0.2 | $ | (1.1 | ) | $ | (3.5 | ) | $ | 8.7 |
(1) | Within the unaudited condensed consolidated statements of income and unaudited condensed consolidated statements of comprehensive income for the periods presented, unrealized gains and losses from Level 3 items are combined with unrealized gains and losses on positions classified in Level 1 or 2, as well as other positions that have been realized during the applicable periods. |
Year of | Percentage of | ||
Expiration | Portfolio Total | ||
2012 | 28 | % | |
2013 | 61 | % | |
2014 | 10 | % | |
2015 | 1 | % | |
100 | % |
Balance Sheet Classification | September 30, 2012 | December 31, 2011 | ||||||
(Dollars in millions) | ||||||||
Accounts receivable, net | $ | 9.8 | $ | 51.3 | ||||
Other current assets | — | 65.0 | ||||||
Investments and other assets | 375.3 | 259.8 | ||||||
Total financing receivables | $ | 385.1 | $ | 376.1 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(Dollars in millions) | |||||||||||||||
Expected income tax provision at federal statutory rate | $ | 60.2 | $ | 115.6 | $ | 212.1 | $ | 360.6 | |||||||
Excess depletion | (16.7 | ) | (17.0 | ) | (58.8 | ) | (53.0 | ) | |||||||
Foreign earnings provision differential | (17.5 | ) | (23.8 | ) | (72.0 | ) | (74.3 | ) | |||||||
Remeasurement of foreign income tax accounts | 13.6 | (38.7 | ) | 8.7 | (16.9 | ) | |||||||||
State income taxes, net of U.S. federal tax benefit | 4.4 | 2.9 | 15.5 | 9.2 | |||||||||||
General business tax credits | (13.5 | ) | (4.4 | ) | (47.6 | ) | (12.7 | ) | |||||||
Changes in valuation allowance | 4.1 | 2.5 | (30.9 | ) | 7.0 | ||||||||||
Changes in tax reserves | 8.6 | 6.0 | 21.9 | 10.8 | |||||||||||
Other, net | 6.1 | (3.9 | ) | 36.6 | 8.1 | ||||||||||
Total provision | $ | 49.3 | $ | 39.2 | $ | 85.5 | $ | 238.8 |
September 30, 2012 | December 31, 2011 | ||||||
(Dollars in millions) | |||||||
Term Loan | $ | 450.0 | $ | 468.8 | |||
2011 Term Loan Facility | 975.0 | 1,000.0 | |||||
7.375% Senior Notes due November 2016 | 650.0 | 650.0 | |||||
6.00% Senior Notes due November 2018 | 1,518.8 | 1,600.0 | |||||
6.50% Senior Notes due September 2020 | 650.0 | 650.0 | |||||
6.25% Senior Notes due November 2021 | 1,339.6 | 1,500.0 | |||||
7.875% Senior Notes due November 2026 | 247.4 | 247.3 | |||||
Convertible Junior Subordinated Debentures due December 2066 | 376.8 | 375.2 | |||||
Capital lease obligations | 111.6 | 122.8 | |||||
Other | 43.9 | 43.4 | |||||
Total Debt | $ | 6,363.1 | $ | 6,657.5 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(Dollars in millions) | |||||||||||||||
Service cost for benefits earned | $ | 0.5 | $ | 0.4 | $ | 1.5 | $ | 1.3 | |||||||
Interest cost on projected benefit obligation | 11.7 | 12.4 | 35.1 | 37.3 | |||||||||||
Expected return on plan assets | (15.9 | ) | (16.1 | ) | (47.8 | ) | (48.3 | ) | |||||||
Amortization of prior service cost | 0.3 | 0.3 | 0.8 | 0.8 | |||||||||||
Amortization of actuarial loss | 12.1 | 7.5 | 36.4 | 22.5 | |||||||||||
Net periodic pension costs | $ | 8.7 | $ | 4.5 | $ | 26.0 | $ | 13.6 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(Dollars in millions) | |||||||||||||||
Service cost for benefits earned | $ | 3.6 | $ | 3.5 | $ | 10.9 | $ | 9.8 | |||||||
Interest cost on accumulated postretirement benefit obligation | 13.7 | 14.5 | 41.2 | 43.4 | |||||||||||
Amortization of prior service cost | 0.7 | 0.8 | 1.7 | 1.6 | |||||||||||
Amortization of actuarial loss | 8.1 | 6.7 | 24.5 | 20.2 | |||||||||||
Net periodic postretirement benefit costs | $ | 26.1 | $ | 25.5 | $ | 78.3 | $ | 75.0 |
Inventories | $ | 3.6 | |
Property, plant, equipment and mine development | 153.8 | ||
Accounts payable and accrued expenses | (0.8 | ) | |
Total, net | $ | 156.6 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(In millions, except per share amounts) | |||||||||||||||
EPS numerator: | |||||||||||||||
Income from continuing operations, net of income taxes | $ | 122.9 | $ | 291.2 | $ | 520.4 | $ | 791.3 | |||||||
Less: Net (loss) income attributable to noncontrolling interests | (1.3 | ) | 7.4 | 7.4 | 17.0 | ||||||||||
Income from continuing operations attributable to common stockholders, before allocation of earnings to participating securities | 124.2 | 283.8 | 513.0 | 774.3 | |||||||||||
Less: Earnings from continuing operations allocated to participating securities | 0.8 | 1.6 | 3.8 | 4.4 | |||||||||||
Income from continuing operations attributable to common stockholders, after allocation of earnings to participating securities (1) | 123.4 | 282.2 | 509.2 | 769.9 | |||||||||||
Loss from discontinued operations, net of income taxes | (81.3 | ) | (9.7 | ) | (92.7 | ) | (38.9 | ) | |||||||
Less: Loss from discontinued operations allocated to participating securities | $ | (0.6 | ) | $ | — | $ | (0.8 | ) | $ | (0.2 | ) | ||||
Loss from discontinued operations attributable to common stockholders, after allocation of earnings to participating securities (1) | $ | (80.7 | ) | $ | (9.7 | ) | $ | (91.9 | ) | $ | (38.7 | ) | |||
Net income attributable to common stockholders, after allocation of earnings to participating securities (1) | $ | 42.7 | $ | 272.5 | $ | 417.3 | $ | 731.2 | |||||||
EPS denominator: | |||||||||||||||
Weighted average shares outstanding — basic | 266.2 | 269.2 | 268.5 | 269.0 | |||||||||||
Impact of dilutive securities | 0.6 | 1.4 | 0.7 | 1.5 | |||||||||||
Weighted average shares outstanding — diluted | 266.8 | 270.6 | 269.2 | 270.5 | |||||||||||
Basic EPS attributable to common stockholders: | |||||||||||||||
Income from continuing operations | $ | 0.46 | $ | 1.05 | $ | 1.89 | $ | 2.86 | |||||||
Loss from discontinued operations | (0.30 | ) | (0.04 | ) | (0.34 | ) | (0.14 | ) | |||||||
Net income | $ | 0.16 | $ | 1.01 | $ | 1.55 | $ | 2.72 | |||||||
Diluted EPS attributable to common stockholders: | |||||||||||||||
Income from continuing operations | $ | 0.46 | $ | 1.04 | $ | 1.89 | $ | 2.84 | |||||||
Loss from discontinued operations | (0.30 | ) | (0.04 | ) | (0.34 | ) | (0.13 | ) | |||||||
Net income | $ | 0.16 | $ | 1.00 | $ | 1.55 | $ | 2.71 |
(1) | The reallocation adjustment for participating securities to arrive at the numerator used to calculate diluted EPS was less than $0.1 million for the periods presented. |
Reclamation Obligations | Lease Obligations | Workers’ Compensation Obligations | Other(1) | Total | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Self bonding | $ | 1,221.9 | $ | — | $ | — | $ | — | $ | 1,221.9 | |||||||||
Surety bonds | 372.1 | 105.3 | 11.8 | 9.8 | 499.0 | ||||||||||||||
Bank guarantees | 225.9 | — | — | 204.7 | 430.6 | ||||||||||||||
Letters of credit | — | — | 62.4 | 81.2 | 143.6 | ||||||||||||||
$ | 1,819.9 | $ | 105.3 | $ | 74.2 | $ | 295.7 | $ | 2,295.1 |
(1) | Other includes the $79.7 million in letters of credit described below and an additional $216.0 million in bank guarantees, surety bonds and letters of credit related to collateral for surety companies, road maintenance, performance guarantees and other operations. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(Dollars in millions) | |||||||||||||||
Revenues: | |||||||||||||||
Australian Mining | $ | 866.0 | $ | 718.7 | $ | 2,605.0 | $ | 2,155.3 | |||||||
Western U.S. Mining | 783.5 | 758.5 | 2,213.5 | 2,124.5 | |||||||||||
Midwestern U.S. Mining | 355.7 | 368.5 | 1,050.1 | 1,025.3 | |||||||||||
Trading and Brokerage | 45.6 | 131.5 | 173.7 | 329.5 | |||||||||||
Corporate and Other | 8.0 | 3.4 | 18.3 | 31.5 | |||||||||||
Total | $ | 2,058.8 | $ | 1,980.6 | $ | 6,060.6 | $ | 5,666.1 | |||||||
Adjusted EBITDA: | |||||||||||||||
Australian Mining | $ | 221.4 | $ | 246.1 | $ | 757.4 | $ | 852.2 | |||||||
Western U.S. Mining | 243.9 | 218.7 | 616.3 | 532.2 | |||||||||||
Midwestern U.S. Mining | 103.5 | 105.4 | 317.4 | 292.8 | |||||||||||
Trading and Brokerage | 35.7 | 57.4 | 109.2 | 134.6 | |||||||||||
Corporate and Other | (144.6 | ) | (119.1 | ) | (378.8 | ) | (273.4 | ) | |||||||
Total | $ | 459.9 | $ | 508.5 | $ | 1,421.5 | $ | 1,538.4 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(Dollars in millions) | |||||||||||||||
Total Adjusted EBITDA | $ | 459.9 | $ | 508.5 | $ | 1,421.5 | $ | 1,538.4 | |||||||
Depreciation, depletion and amortization | 172.5 | 108.4 | 470.7 | 317.6 | |||||||||||
Amortization of basis difference related to equity affiliates | (0.2 | ) | — | 3.0 | — | ||||||||||
Asset retirement obligation expenses | 21.1 | 14.6 | 53.3 | 43.3 | |||||||||||
Interest expense | 99.4 | 59.2 | 308.3 | 159.1 | |||||||||||
Interest income | (5.1 | ) | (4.1 | ) | (19.7 | ) | (11.7 | ) | |||||||
Income tax provision | 49.3 | 39.2 | 85.5 | 238.8 | |||||||||||
Income from continuing operations, net of income taxes | $ | 122.9 | $ | 291.2 | $ | 520.4 | $ | 791.3 |
Three Months Ended September 30, 2012 | |||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Total revenues | $ | — | $ | 1,336.9 | $ | 778.3 | $ | (56.4 | ) | $ | 2,058.8 | ||||||||
Costs and expenses | |||||||||||||||||||
Operating costs and expenses | (95.6 | ) | 882.8 | 778.2 | (56.4 | ) | 1,509.0 | ||||||||||||
Depreciation, depletion and amortization | — | 84.8 | 87.7 | — | 172.5 | ||||||||||||||
Asset retirement obligation expenses | — | 11.8 | 9.3 | — | 21.1 | ||||||||||||||
Selling and administrative expenses | 8.3 | 54.5 | 5.9 | — | 68.7 | ||||||||||||||
Other operating (income) loss: | |||||||||||||||||||
Net (gain) loss on disposal or exchange of assets | — | (1.4 | ) | 1.2 | — | (0.2 | ) | ||||||||||||
(Income) loss from equity affiliates | (117.0 | ) | 1.9 | 19.3 | 117.0 | 21.2 | |||||||||||||
Interest expense | 101.8 | 5.8 | 124.4 | (132.6 | ) | 99.4 | |||||||||||||
Interest income | (72.9 | ) | (46.8 | ) | (18.0 | ) | 132.6 | (5.1 | ) | ||||||||||
Unrealized (gain) loss on derivatives | — | (112.3 | ) | 112.3 | — | — | |||||||||||||
Income (loss) from continuing operations before income taxes | 175.4 | 455.8 | (342.0 | ) | (117.0 | ) | 172.2 | ||||||||||||
Income tax provision (benefit) | 131.8 | 101.7 | (184.2 | ) | — | 49.3 | |||||||||||||
Income (loss) from continuing operations, net of income taxes | 43.6 | 354.1 | (157.8 | ) | (117.0 | ) | 122.9 | ||||||||||||
Loss from discontinued operations, net of income taxes | (0.7 | ) | (75.9 | ) | (4.7 | ) | — | (81.3 | ) | ||||||||||
Net income (loss) | 42.9 | 278.2 | (162.5 | ) | (117.0 | ) | 41.6 | ||||||||||||
Less: Net loss attributable to noncontrolling interests | — | — | (1.3 | ) | — | (1.3 | ) | ||||||||||||
Net income (loss) attributable to common stockholders | $ | 42.9 | $ | 278.2 | $ | (161.2 | ) | $ | (117.0 | ) | $ | 42.9 | |||||||
Comprehensive income (loss) attributable to common stockholders | $ | 119.3 | $ | 291.7 | $ | (175.8 | ) | $ | (115.9 | ) | $ | 119.3 |
Three Months Ended September 30, 2011 | |||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Total revenues | $ | — | $ | 1,213.3 | $ | 811.3 | $ | (44.0 | ) | $ | 1,980.6 | ||||||||
Costs and expenses | |||||||||||||||||||
Operating costs and expenses | (99.3 | ) | 905.0 | 637.7 | (44.0 | ) | 1,399.4 | ||||||||||||
Depreciation, depletion and amortization | — | 69.6 | 38.8 | — | 108.4 | ||||||||||||||
Asset retirement obligation expenses | — | 11.0 | 3.6 | — | 14.6 | ||||||||||||||
Selling and administrative expenses | 8.0 | 52.5 | 10.7 | — | 71.2 | ||||||||||||||
Other operating (income) loss: | |||||||||||||||||||
Net (gain) loss on disposal or exchange of assets | — | (1.8 | ) | 0.1 | — | (1.7 | ) | ||||||||||||
(Income) loss from equity affiliates | (252.5 | ) | 2.7 | 0.5 | 252.5 | 3.2 | |||||||||||||
Interest expense | 61.0 | 13.7 | 1.9 | (17.4 | ) | 59.2 | |||||||||||||
Interest income | (4.1 | ) | (5.2 | ) | (12.2 | ) | 17.4 | (4.1 | ) | ||||||||||
Income from continuing operations before income taxes | 286.9 | 165.8 | 130.2 | (252.5 | ) | 330.4 | |||||||||||||
Income tax provision (benefit) | 12.9 | 46.7 | (20.4 | ) | — | 39.2 | |||||||||||||
Income from continuing operations, net of income taxes | 274.0 | 119.1 | 150.6 | (252.5 | ) | 291.2 | |||||||||||||
Income (loss) from discontinued operations, net of income taxes | 0.1 | (7.7 | ) | (2.1 | ) | — | (9.7 | ) | |||||||||||
Net income | 274.1 | 111.4 | 148.5 | (252.5 | ) | 281.5 | |||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 7.4 | — | 7.4 | ||||||||||||||
Net income attributable to common stockholders | $ | 274.1 | $ | 111.4 | $ | 141.1 | $ | (252.5 | ) | $ | 274.1 | ||||||||
Comprehensive income attributable to common stockholders | $ | 82.4 | $ | 121.5 | $ | 205.2 | $ | (326.7 | ) | $ | 82.4 |
Nine Months Ended September 30, 2012 | |||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Total revenues | $ | — | $ | 3,539.2 | $ | 2,694.4 | $ | (173.0 | ) | $ | 6,060.6 | ||||||||
Costs and expenses | |||||||||||||||||||
Operating costs and expenses | (313.2 | ) | 2,546.9 | 2,336.1 | (173.0 | ) | 4,396.8 | ||||||||||||
Depreciation, depletion and amortization | — | 232.0 | 238.7 | — | 470.7 | ||||||||||||||
Asset retirement obligation expenses | — | 34.7 | 18.6 | — | 53.3 | ||||||||||||||
Selling and administrative expenses | 29.2 | 154.5 | 18.7 | — | 202.4 | ||||||||||||||
Other operating (income) loss: | |||||||||||||||||||
Net gain on disposal or exchange of assets | — | (6.3 | ) | (1.3 | ) | — | (7.6 | ) | |||||||||||
(Income) loss from equity affiliates | (407.9 | ) | 5.7 | 44.8 | 407.9 | 50.5 | |||||||||||||
Interest expense | 312.1 | 12.9 | 350.3 | (367.0 | ) | 308.3 | |||||||||||||
Interest income | (224.3 | ) | (112.6 | ) | (49.8 | ) | 367.0 | (19.7 | ) | ||||||||||
Unrealized (gain) loss on derivatives | — | (69.6 | ) | 69.6 | — | — | |||||||||||||
Income (loss) from continuing operations before income taxes | 604.1 | 741.0 | (331.3 | ) | (407.9 | ) | 605.9 | ||||||||||||
Income tax provision (benefit) | 182.7 | 155.3 | (252.5 | ) | — | 85.5 | |||||||||||||
Income (loss) from continuing operations, net of income taxes | 421.4 | 585.7 | (78.8 | ) | (407.9 | ) | 520.4 | ||||||||||||
Loss from discontinued operations, net of income taxes | (1.1 | ) | (78.0 | ) | (13.6 | ) | — | (92.7 | ) | ||||||||||
Net income (loss) | 420.3 | 507.7 | (92.4 | ) | (407.9 | ) | 427.7 | ||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 7.4 | — | 7.4 | ||||||||||||||
Net income (loss) attributable to common stockholders | $ | 420.3 | $ | 507.7 | $ | (99.8 | ) | $ | (407.9 | ) | $ | 420.3 | |||||||
Comprehensive income attributable to common stockholders | $ | 585.9 | $ | 548.6 | $ | 34.4 | $ | (583.0 | ) | $ | 585.9 |
Nine Months Ended September 30, 2011 | |||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Total revenues | $ | — | $ | 3,427.8 | $ | 2,456.5 | $ | (218.2 | ) | $ | 5,666.1 | ||||||||
Costs and expenses | |||||||||||||||||||
Operating costs and expenses | (289.3 | ) | 2,619.7 | 1,846.5 | (218.2 | ) | 3,958.7 | ||||||||||||
Depreciation, depletion and amortization | — | 210.5 | 107.1 | — | 317.6 | ||||||||||||||
Asset retirement obligation expenses | — | 30.7 | 12.6 | — | 43.3 | ||||||||||||||
Selling and administrative expenses | 24.9 | 151.0 | 15.5 | — | 191.4 | ||||||||||||||
Other operating (income) loss: | |||||||||||||||||||
Net (gain) loss on disposal or exchange of assets | — | (32.3 | ) | 0.9 | — | (31.4 | ) | ||||||||||||
(Income) loss from equity affiliates | (664.3 | ) | 6.4 | 2.6 | 664.3 | 9.0 | |||||||||||||
Interest expense | 162.3 | 40.6 | 7.5 | (51.3 | ) | 159.1 | |||||||||||||
Interest income | (12.8 | ) | (15.8 | ) | (34.4 | ) | 51.3 | (11.7 | ) | ||||||||||
Income from continuing operations before income taxes | 779.2 | 417.0 | 498.2 | (664.3 | ) | 1,030.1 | |||||||||||||
Income tax provision | 43.1 | 109.0 | 86.7 | — | 238.8 | ||||||||||||||
Income from continuing operations, net of income taxes | 736.1 | 308.0 | 411.5 | (664.3 | ) | 791.3 | |||||||||||||
Loss from discontinued operations, net of income taxes | (0.7 | ) | (6.3 | ) | (31.9 | ) | — | (38.9 | ) | ||||||||||
Net income | 735.4 | 301.7 | 379.6 | (664.3 | ) | 752.4 | |||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 17.0 | — | 17.0 | ||||||||||||||
Net income attributable to common stockholders | $ | 735.4 | $ | 301.7 | $ | 362.6 | $ | (664.3 | ) | $ | 735.4 | ||||||||
Comprehensive income attributable to common stockholders | $ | 664.2 | $ | 337.3 | $ | 405.8 | $ | (743.1 | ) | $ | 664.2 |
September 30, 2012 | |||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Reclassifications/ Eliminations | Consolidated | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Assets | |||||||||||||||||||
Current assets | |||||||||||||||||||
Cash and cash equivalents | $ | 237.9 | $ | 0.2 | $ | 409.9 | $ | — | $ | 648.0 | |||||||||
Accounts receivable, net | 5.4 | 72.1 | 604.7 | — | 682.2 | ||||||||||||||
Inventories | — | 257.4 | 297.5 | — | 554.9 | ||||||||||||||
Assets from coal trading activities, net | — | 9.6 | 46.6 | — | 56.2 | ||||||||||||||
Deferred income taxes | — | 69.6 | — | (53.8 | ) | 15.8 | |||||||||||||
Other current assets | 317.7 | 23.3 | 356.6 | — | 697.6 | ||||||||||||||
Total current assets | 561.0 | 432.2 | 1,715.3 | (53.8 | ) | 2,654.7 | |||||||||||||
Property, plant, equipment and mine development, net | — | 5,130.5 | 7,380.6 | — | 12,511.1 | ||||||||||||||
Investments and other assets | 10,700.6 | 106.0 | 936.0 | (10,058.0 | ) | 1,684.6 | |||||||||||||
Total assets | $ | 11,261.6 | $ | 5,668.7 | $ | 10,031.9 | $ | (10,111.8 | ) | $ | 16,850.4 | ||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||
Current liabilities | |||||||||||||||||||
Current maturities of long-term debt | $ | 75.0 | $ | — | $ | 49.8 | $ | — | $ | 124.8 | |||||||||
Payables to (receivables from) affiliates, net | 2,272.8 | (2,576.6 | ) | 303.8 | — | — | |||||||||||||
Liabilities from coal trading activities, net | — | 9.7 | 10.2 | — | 19.9 | ||||||||||||||
Deferred income taxes | 11.6 | — | 42.2 | (53.8 | ) | — | |||||||||||||
Accounts payable and accrued expenses | 121.1 | 704.1 | 819.9 | — | 1,645.1 | ||||||||||||||
Total current liabilities | 2,480.5 | (1,862.8 | ) | 1,225.9 | (53.8 | ) | 1,789.8 | ||||||||||||
Long-term debt, less current maturities | 6,132.7 | 6.6 | 99.0 | — | 6,238.3 | ||||||||||||||
Deferred income taxes | 66.6 | 126.0 | 192.4 | — | 385.0 | ||||||||||||||
Notes (receivable from) payable to affiliates, net | (3,421.3 | ) | (1,097.4 | ) | 4,518.7 | — | — | ||||||||||||
Other noncurrent liabilities | 58.5 | 1,975.4 | 426.4 | — | 2,460.3 | ||||||||||||||
Total liabilities | 5,317.0 | (852.2 | ) | 6,462.4 | (53.8 | ) | 10,873.4 | ||||||||||||
Peabody Energy Corporation’s stockholders’ equity | 5,944.6 | 6,520.9 | 3,537.1 | (10,058.0 | ) | 5,944.6 | |||||||||||||
Noncontrolling interests | — | — | 32.4 | — | 32.4 | ||||||||||||||
Total stockholders’ equity | 5,944.6 | 6,520.9 | 3,569.5 | (10,058.0 | ) | 5,977.0 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 11,261.6 | $ | 5,668.7 | $ | 10,031.9 | $ | (10,111.8 | ) | $ | 16,850.4 |
December 31, 2011 | |||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Reclassifications/ Eliminations | Consolidated | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Assets | |||||||||||||||||||
Current assets | |||||||||||||||||||
Cash and cash equivalents | $ | 283.2 | $ | 0.8 | $ | 515.1 | $ | — | $ | 799.1 | |||||||||
Accounts receivable, net | 5.3 | 100.8 | 816.4 | — | 922.5 | ||||||||||||||
Inventories | — | 218.1 | 226.3 | — | 444.4 | ||||||||||||||
Assets from coal trading activities, net | — | 14.9 | 29.7 | — | 44.6 | ||||||||||||||
Deferred income taxes | — | 48.0 | — | (20.7 | ) | 27.3 | |||||||||||||
Other current assets | 305.1 | 100.7 | 362.2 | — | 768.0 | ||||||||||||||
Total current assets | 593.6 | 483.3 | 1,949.7 | (20.7 | ) | 3,005.9 | |||||||||||||
Property, plant, equipment and mine development, net | — | 4,797.7 | 6,453.9 | — | 11,251.6 | ||||||||||||||
Investments and other assets | 10,300.8 | 310.8 | 1,496.1 | (9,632.2 | ) | 2,475.5 | |||||||||||||
Total assets | $ | 10,894.4 | $ | 5,591.8 | $ | 9,899.7 | $ | (9,652.9 | ) | $ | 16,733.0 | ||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||
Current liabilities | |||||||||||||||||||
Current maturities of long-term debt | $ | 62.5 | $ | — | $ | 38.6 | $ | — | $ | 101.1 | |||||||||
Payables to (receivables from) affiliates, net | 2,417.8 | (2,529.1 | ) | 111.3 | — | — | |||||||||||||
Liabilities from coal trading activities, net | — | 4.2 | 6.1 | — | 10.3 | ||||||||||||||
Deferred income taxes | 11.6 | — | 9.1 | (20.7 | ) | — | |||||||||||||
Accounts payable and accrued expenses | 69.4 | 868.8 | 774.1 | — | 1,712.3 | ||||||||||||||
Total current liabilities | 2,561.3 | (1,656.1 | ) | 939.2 | (20.7 | ) | 1,823.7 | ||||||||||||
Long-term debt, less current maturities | 6,428.8 | — | 127.6 | — | 6,556.4 | ||||||||||||||
Deferred income taxes | 76.0 | 95.3 | 351.9 | — | 523.2 | ||||||||||||||
Notes (receivable from) payable to affiliates, net | (3,720.0 | ) | (981.5 | ) | 4,701.5 | — | — | ||||||||||||
Other noncurrent liabilities | 63.2 | 1,923.6 | 327.1 | — | 2,313.9 | ||||||||||||||
Total liabilities | 5,409.3 | (618.7 | ) | 6,447.3 | (20.7 | ) | 11,217.2 | ||||||||||||
Peabody Energy Corporation’s stockholders’ equity | 5,485.1 | 6,210.5 | 3,421.7 | (9,632.2 | ) | 5,485.1 | |||||||||||||
Noncontrolling interests | — | — | 30.7 | — | 30.7 | ||||||||||||||
Total stockholders’ equity | 5,485.1 | 6,210.5 | 3,452.4 | (9,632.2 | ) | 5,515.8 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 10,894.4 | $ | 5,591.8 | $ | 9,899.7 | $ | (9,652.9 | ) | $ | 16,733.0 |
Nine Months Ended September 30, 2012 | |||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidated | ||||||||||||
(Dollars in millions) | |||||||||||||||
Cash Flows From Operating Activities | |||||||||||||||
Net cash provided by (used in) continuing operations | $ | 252.2 | $ | 1,225.0 | $ | (103.5 | ) | $ | 1,373.7 | ||||||
Net cash used in discontinued operations | (1.6 | ) | (8.0 | ) | (72.6 | ) | (82.2 | ) | |||||||
Net cash provided by (used in) operating activities | 250.6 | 1,217.0 | (176.1 | ) | 1,291.5 | ||||||||||
Cash Flows From Investing Activities | |||||||||||||||
Additions to property, plant, equipment and mine development | — | (188.3 | ) | (543.8 | ) | (732.1 | ) | ||||||||
Federal coal lease expenditures | — | (247.9 | ) | — | (247.9 | ) | |||||||||
Investment in Prairie State Energy Campus | — | (9.4 | ) | — | (9.4 | ) | |||||||||
Proceeds from disposal of assets | — | 59.3 | 34.2 | 93.5 | |||||||||||
Proceeds from sales and maturities of debt and equity securities | — | — | 39.0 | 39.0 | |||||||||||
Purchases of debt and equity securities | — | — | (23.8 | ) | (23.8 | ) | |||||||||
Contributions to joint ventures | — | — | (531.2 | ) | (531.2 | ) | |||||||||
Distributions from joint ventures | — | — | 527.7 | 527.7 | |||||||||||
Repayments of loans from related parties | — | — | 720.2 | 720.2 | |||||||||||
Advances to related parties | — | — | (743.4 | ) | (743.4 | ) | |||||||||
Other, net | — | (3.0 | ) | (0.2 | ) | (3.2 | ) | ||||||||
Net cash used in continuing operations | — | (389.3 | ) | (521.3 | ) | (910.6 | ) | ||||||||
Net cash used in discontinued operations | — | (1.9 | ) | (9.3 | ) | (11.2 | ) | ||||||||
Net cash used in investing activities | — | (391.2 | ) | (530.6 | ) | (921.8 | ) | ||||||||
Cash Flows From Financing Activities | |||||||||||||||
Payments of long-term debt | (285.3 | ) | (0.3 | ) | (20.1 | ) | (305.7 | ) | |||||||
Common stock repurchase | (99.9 | ) | — | — | (99.9 | ) | |||||||||
Acquisition of MCG Coal Holdings Pty Ltd noncontrolling interests | — | — | (49.8 | ) | (49.8 | ) | |||||||||
Dividends paid | (69.1 | ) | — | — | (69.1 | ) | |||||||||
Repurchase of employee common stock relinquished for tax withholding | (8.3 | ) | — | — | (8.3 | ) | |||||||||
Excess tax benefits related to share-based compensation | 3.6 | — | — | 3.6 | |||||||||||
Other, net | 9.4 | — | (1.0 | ) | 8.4 | ||||||||||
Transactions with affiliates, net | 153.7 | (826.1 | ) | 672.4 | — | ||||||||||
Net cash (used in) provided by financing activities | (295.9 | ) | (826.4 | ) | 601.5 | (520.8 | ) | ||||||||
Net change in cash and cash equivalents | (45.3 | ) | (0.6 | ) | (105.2 | ) | (151.1 | ) | |||||||
Cash and cash equivalents at beginning of period | 283.2 | 0.8 | 515.1 | 799.1 | |||||||||||
Cash and cash equivalents at end of period | $ | 237.9 | $ | 0.2 | $ | 409.9 | $ | 648.0 |
Nine Months Ended September 30, 2011 | |||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidated | ||||||||||||
(Dollars in millions) | |||||||||||||||
Cash Flows From Operating Activities | |||||||||||||||
Net cash provided by continuing operations | $ | 144.7 | $ | 718.3 | $ | 353.7 | $ | 1,216.7 | |||||||
Net cash (used in) provided by discontinued operations | (1.6 | ) | 1.2 | (25.8 | ) | (26.2 | ) | ||||||||
Net cash provided by operating activities | 143.1 | 719.5 | 327.9 | 1,190.5 | |||||||||||
Cash Flows From Investing Activities | |||||||||||||||
Additions to property, plant, equipment and mine development | — | (211.1 | ) | (342.3 | ) | (553.4 | ) | ||||||||
Federal coal lease expenditures | — | (42.4 | ) | — | (42.4 | ) | |||||||||
Investment in Prairie State Energy Campus | — | (29.8 | ) | — | (29.8 | ) | |||||||||
Proceeds from disposal of assets | — | 12.1 | — | 12.1 | |||||||||||
Investment in equity affiliates and joint ventures | — | (2.1 | ) | (37.7 | ) | (39.8 | ) | ||||||||
Proceeds from sales and maturities of debt and equity securities | — | — | 53.3 | 53.3 | |||||||||||
Purchases of debt and equity securities | — | — | (44.1 | ) | (44.1 | ) | |||||||||
Purchases of short-term investments | (75.0 | ) | — | (25.0 | ) | (100.0 | ) | ||||||||
Proceeds from sale of short-term investments | 75.0 | — | 25.0 | 100.0 | |||||||||||
Investment in shares of Macarthur Coal Limited | — | — | (45.5 | ) | (45.5 | ) | |||||||||
Other, net | — | (4.4 | ) | — | (4.4 | ) | |||||||||
Net cash used in continuing operations | — | (277.7 | ) | (416.3 | ) | (694.0 | ) | ||||||||
Net cash used in discontinued operations | — | (7.5 | ) | (55.3 | ) | (62.8 | ) | ||||||||
Net cash used in investing activities | — | (285.2 | ) | (471.6 | ) | (756.8 | ) | ||||||||
Cash Flows From Financing Activities | |||||||||||||||
Payments of long-term debt | (236.9 | ) | — | (11.5 | ) | (248.4 | ) | ||||||||
Dividends paid | (69.1 | ) | — | — | (69.1 | ) | |||||||||
Repurchase of employee common stock relinquished for tax withholding | (16.1 | ) | — | — | (16.1 | ) | |||||||||
Excess tax benefits related to share-based compensation | 6.1 | — | — | 6.1 | |||||||||||
Other, net | 6.8 | — | (6.6 | ) | 0.2 | ||||||||||
Transactions with affiliates, net | 220.2 | (438.5 | ) | 218.3 | — | ||||||||||
Net cash (used in) provided by financing activities | (89.0 | ) | (438.5 | ) | 200.2 | (327.3 | ) | ||||||||
Net change in cash and cash equivalents | 54.1 | (4.2 | ) | 56.5 | 106.4 | ||||||||||
Cash and cash equivalents at beginning of period | 903.8 | 5.2 | 386.2 | 1,295.2 | |||||||||||
Cash and cash equivalents at end of period | $ | 957.9 | $ | 1.0 | $ | 442.7 | $ | 1,401.6 |
• | global supply and demand for coal, including the seaborne thermal and metallurgical coal markets; |
• | price volatility, particularly in higher-margin products and in our trading and brokerage businesses; |
• | impact of alternative energy sources, including natural gas and renewables; |
• | global steel demand and the downstream impact on metallurgical coal prices; |
• | impact of weather and natural disasters on demand, production and transportation; |
• | reductions and/or deferrals of purchases by major customers and ability to renew sales contracts; |
• | credit and performance risks associated with customers, suppliers, contract miners, co-shippers and trading, banks and other financial counterparties; |
• | geologic, equipment, permitting and operational risks related to mining; |
• | transportation availability, performance and costs; |
• | availability, timing of delivery and costs of key supplies, capital equipment or commodities such as diesel fuel, steel, explosives and tires; |
• | integration of Macarthur Coal Limited (PEA-PCI) operations; |
• | successful implementation of business strategies; |
• | negotiation of labor contracts, employee relations and workforce availability; |
• | changes in postretirement benefit and pension obligations and their related funding requirements; |
• | replacement and development of coal reserves; |
• | availability, access to and the related cost of capital and financial markets; |
• | effects of changes in interest rates and currency exchange rates (primarily the Australian dollar); |
• | effects of acquisitions or divestitures; |
• | economic strength and political stability of countries in which we have operations or serve customers; |
• | legislation, regulations and court decisions or other government actions, including, but not limited to, new environmental and mine safety requirements and changes in income tax regulations, sales-related royalties or other regulatory taxes; |
• | litigation, including claims not yet asserted; |
• | terrorist attacks or threats; |
• | impacts of pandemic illnesses; and |
• | other factors, including those discussed in Part II, Item 1. "Legal Proceedings." |
Three Months Ended | Increase (Decrease) | Nine Months Ended | Increase (Decrease) | ||||||||||||||||||||
September 30, | to Volumes | September 30, | to Volumes | ||||||||||||||||||||
2012 | 2011 | Tons | % | 2012 | 2011 | Tons | % | ||||||||||||||||
(Tons in millions) | (Tons in millions) | ||||||||||||||||||||||
Australian Mining | 8.5 | 6.1 | 2.4 | 39.3 | % | 23.3 | 18.2 | 5.1 | 28.0 | % | |||||||||||||
Western U.S. Mining | 44.0 | 43.7 | 0.3 | 0.7 | % | 124.4 | 127.2 | (2.8 | ) | (2.2 | )% | ||||||||||||
Midwestern U.S. Mining | 7.0 | 7.6 | (0.6 | ) | (7.9 | )% | 20.5 | 21.5 | (1.0 | ) | (4.7 | )% | |||||||||||
Trading and Brokerage | 7.1 | 5.5 | 1.6 | 29.1 | % | 17.0 | 14.4 | 2.6 | 18.1 | % | |||||||||||||
Total tons sold | 66.6 | 62.9 | 3.7 | 5.9 | % | 185.2 | 181.3 | 3.9 | 2.2 | % |
Three Months Ended | Increase (Decrease) | Nine Months Ended | Increase (Decrease) | ||||||||||||||||||||||||||
September 30, | to Revenues | September 30, | to Revenues | ||||||||||||||||||||||||||
2012 | 2011 | $ | % | 2012 | 2011 | $ | % | ||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | ||||||||||||||||||||||||||||
Australian Mining | $ | 866.0 | $ | 718.7 | $ | 147.3 | 20.5 | % | $ | 2,605.0 | $ | 2,155.3 | $ | 449.7 | 20.9 | % | |||||||||||||
Western U.S. Mining | 783.5 | 758.5 | 25.0 | 3.3 | % | 2,213.5 | 2,124.5 | 89.0 | 4.2 | % | |||||||||||||||||||
Midwestern U.S. Mining | 355.7 | 368.5 | (12.8 | ) | (3.5 | )% | 1,050.1 | 1,025.3 | 24.8 | 2.4 | % | ||||||||||||||||||
Trading and Brokerage | 45.6 | 131.5 | (85.9 | ) | (65.3 | )% | 173.7 | 329.5 | (155.8 | ) | (47.3 | )% | |||||||||||||||||
Corporate and Other | 8.0 | 3.4 | 4.6 | 135.3 | % | 18.3 | 31.5 | (13.2 | ) | (41.9 | )% | ||||||||||||||||||
Total revenues | $ | 2,058.8 | $ | 1,980.6 | $ | 78.2 | 3.9 | % | $ | 6,060.6 | $ | 5,666.1 | $ | 394.5 | 7.0 | % |
Increase (Decrease) | Increase (Decrease) | ||||||||||||||||||||||||||||
Three Months Ended | to Segment Adjusted | Nine Months Ended | to Segment Adjusted | ||||||||||||||||||||||||||
September 30, | EBITDA | September 30, | EBITDA | ||||||||||||||||||||||||||
2012 | 2011 | $ | % | 2012 | 2011 | $ | % | ||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | ||||||||||||||||||||||||||||
Australian Mining | $ | 221.4 | $ | 246.1 | $ | (24.7 | ) | (10.0 | )% | $ | 757.4 | $ | 852.2 | $ | (94.8 | ) | (11.1 | )% | |||||||||||
Western U.S. Mining | 243.9 | 218.7 | 25.2 | 11.5 | % | 616.3 | 532.2 | 84.1 | 15.8 | % | |||||||||||||||||||
Midwestern U.S. Mining | 103.5 | 105.4 | (1.9 | ) | (1.8 | )% | 317.4 | 292.8 | 24.6 | 8.4 | % | ||||||||||||||||||
Trading and Brokerage | 35.7 | 57.4 | (21.7 | ) | (37.8 | )% | 109.2 | 134.6 | (25.4 | ) | (18.9 | )% | |||||||||||||||||
Segment Adjusted EBITDA | $ | 604.5 | $ | 627.6 | $ | (23.1 | ) | (3.7 | )% | $ | 1,800.3 | $ | 1,811.8 | $ | (11.5 | ) | (0.6 | )% |
Three Months Ended | Increase (Decrease) | Nine Months Ended | Increase (Decrease) | ||||||||||||||||||||||||||
September 30, | to Income | September 30, | to Income | ||||||||||||||||||||||||||
2012 | 2011 | $ | % | 2012 | 2011 | $ | % | ||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | ||||||||||||||||||||||||||||
Segment Adjusted EBITDA | $ | 604.5 | $ | 627.6 | $ | (23.1 | ) | (3.7 | )% | $ | 1,800.3 | $ | 1,811.8 | $ | (11.5 | ) | (0.6 | )% | |||||||||||
Corporate and Other Adjusted EBITDA (1) | (144.6 | ) | (119.1 | ) | (25.5 | ) | (21.4 | )% | (378.8 | ) | (273.4 | ) | (105.4 | ) | (38.6 | )% | |||||||||||||
Depreciation, depletion and amortization | (172.5 | ) | (108.4 | ) | (64.1 | ) | (59.1 | )% | (470.7 | ) | (317.6 | ) | (153.1 | ) | (48.2 | )% | |||||||||||||
Asset retirement obligation expenses | (21.1 | ) | (14.6 | ) | (6.5 | ) | (44.5 | )% | (53.3 | ) | (43.3 | ) | (10.0 | ) | (23.1 | )% | |||||||||||||
Amortization of basis difference related to equity affiliates | 0.2 | — | 0.2 | (100.0 | )% | (3.0 | ) | — | (3.0 | ) | (100.0 | )% | |||||||||||||||||
Interest expense | (99.4 | ) | (59.2 | ) | (40.2 | ) | (67.9 | )% | (308.3 | ) | (159.1 | ) | (149.2 | ) | (93.8 | )% | |||||||||||||
Interest income | 5.1 | 4.1 | 1.0 | 24.4 | % | 19.7 | 11.7 | 8.0 | 68.4 | % | |||||||||||||||||||
Income from continuing operations before income taxes | $ | 172.2 | $ | 330.4 | $ | (158.2 | ) | (47.9 | )% | $ | 605.9 | $ | 1,030.1 | $ | (424.2 | ) | (41.2 | )% |
(1) | Corporate and Other Adjusted EBITDA includes selling and administrative expenses, equity income (losses) from our joint ventures, gains (losses) on certain asset sales, resource management costs and revenues, coal royalty expense, costs associated with past mining activities, expenses related to our other commercial activities, such as generation development and Btu Conversion, and provisions for certain litigation. |
Three Months Ended | Increase (Decrease) | Nine Months Ended | Increase (Decrease) | ||||||||||||||||||||||||||
September 30, | to Income | September 30, | to Income | ||||||||||||||||||||||||||
2012 | 2011 | $ | % | 2012 | 2011 | $ | % | ||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | ||||||||||||||||||||||||||||
Income from continuing operations before income taxes | $ | 172.2 | $ | 330.4 | $ | (158.2 | ) | (47.9 | )% | $ | 605.9 | $ | 1,030.1 | $ | (424.2 | ) | (41.2 | )% | |||||||||||
Income tax provision | 49.3 | 39.2 | (10.1 | ) | 25.8 | % | 85.5 | 238.8 | 153.3 | (64.2 | )% | ||||||||||||||||||
Income from continuing operations, net of income taxes | 122.9 | 291.2 | (168.3 | ) | (57.8 | )% | 520.4 | 791.3 | (270.9 | ) | (34.2 | )% | |||||||||||||||||
Loss from discontinued operations, net of income taxes | (81.3 | ) | (9.7 | ) | (71.6 | ) | (738.1 | )% | (92.7 | ) | (38.9 | ) | (53.8 | ) | (138.3 | )% | |||||||||||||
Net income | 41.6 | 281.5 | (239.9 | ) | (85.2 | )% | 427.7 | 752.4 | (324.7 | ) | (43.2 | )% | |||||||||||||||||
Less: Net (loss) income attributable to noncontrolling interests | (1.3 | ) | 7.4 | 8.7 | (117.6 | )% | 7.4 | 17.0 | 9.6 | (56.5 | )% | ||||||||||||||||||
Net income attributable to common stockholders | $ | 42.9 | $ | 274.1 | $ | (231.2 | ) | (84.3 | )% | $ | 420.3 | $ | 735.4 | $ | (315.1 | ) | (42.8 | )% |
• | The impact of lower current year income from continuing operations before income taxes (three months, $55.4 million; nine months, $148.5 million); |
• | The recognition of a net tax benefit of $59.7 million in the second quarter 2012 due to an acquisition restructuring enabling certain PEA-PCI tax entities to join our Australian consolidated tax group, comprised of a $14.6 million reduction in deferred tax liabilities and a $45.1 million net reduction in valuation allowances on certain deferred tax assets and net operating losses due to the required tax basis reset of PEA-PCI assets; partially offset by |
• | The impact from the remeasurement of non-U.S. tax accounts as a result of current year weakening of the Australian dollar compared with strengthening in the prior year (three months, $52.3 million; nine months, $25.6 million). |
September 30, 2012 | December 31, 2011 | ||||||
(Dollars in millions) | |||||||
Term Loan | $ | 450.0 | $ | 468.8 | |||
2011 Term Loan Facility | 975.0 | 1,000.0 | |||||
7.375% Senior Notes due November 2016 | 650.0 | 650.0 | |||||
6.00% Senior Notes due November 2018 | 1,518.8 | 1,600.0 | |||||
6.50% Senior Notes due September 2020 | 650.0 | 650.0 | |||||
6.25% Senior Notes due November 2021 | 1,339.6 | 1,500.0 | |||||
7.875% Senior Notes due November 2026 | 247.4 | 247.3 | |||||
Convertible Junior Subordinated Debentures due December 2066 | 376.8 | 375.2 | |||||
Capital lease obligations | 111.6 | 122.8 | |||||
Other | 43.9 | 43.4 | |||||
Total Debt | $ | 6,363.1 | $ | 6,657.5 |
Nine Months Ended | Increase (Decrease) | |||||||||||||
September 30, | to cash and cash equivalents | |||||||||||||
2012 | 2011 | $ | % | |||||||||||
(Dollars in millions) | ||||||||||||||
Net cash provided by operating activities | $ | 1,291.5 | $ | 1,190.5 | $ | 101.0 | 8.5 | % | ||||||
Net cash used in investing activities | (921.8 | ) | (756.8 | ) | (165.0 | ) | (21.8 | )% | ||||||
Net cash used in financing activities | (520.8 | ) | (327.3 | ) | (193.5 | ) | (59.1 | )% | ||||||
Net change in cash and cash equivalents | (151.1 | ) | 106.4 | (257.5 | ) | 242.0 | % | |||||||
Cash and cash equivalents at beginning of period | 799.1 | 1,295.2 | (496.1 | ) | (38.3 | )% | ||||||||
Cash and cash equivalents at end of period | $ | 648.0 | $ | 1,401.6 | $ | (753.6 | ) | (53.8 | )% |
• | Strong accounts receivable collections in 2012 compared to 2011; |
• | The timing of disbursements associated with our accounts payable and certain accrued liabilities; and |
• | Higher current year cash inflows from our Trading and Brokerage activities, primarily due to an increase in the amount of net margin held; partially offset by |
• | Lower Adjusted EBITDA; |
• | Lower utilization of our accounts receivable securitization compared to the prior year period; and |
• | Higher inventory builds corresponding with the impact of the macroeconomic environment on global demand. |
• | Higher current year capital spending of $178.7 million, much of which is associated with our organic growth and development projects in Australia; |
• | Higher federal coal lease expenditures associated with our Western U.S. Mining operations of $205.5 million; and |
• | Increased net outflows associated with joint ventures and related parties related to the PEA-PCI acquisition; partially offset by |
• | Greater proceeds from the disposal of assets of $81.4 million driven by current year collections of $34.2 million on a long-term receivable related to a prior sell down of the Codrilla Mine Project by PEA-PCI into the Coppabella Moorvale Joint Venture prior to our acquisition of PEA-PCI in 2011, $17.4 million in aggregate reimbursement and true up payments received in the third quarter of 2012 related to our federal coal lease swap executed with Alpha and $27.2 million in proceeds received in the third quarter of 2012 from sale-leaseback transactions on operating equipment at PEA-PCI; |
• | Prior year investments in shares of PEA-PCI, formerly Macarthur Coal Limited, of $45.5 million leading up to the PEA-PCI acquisition; and |
• | Lower expenditures of $20.4 million related to our involvement in Prairie State as its construction nears completion and commercial operations commence. |
• | Current year common stock repurchases of $99.9 million; |
• | Higher long-term debt payments of $57.3 million as a result of an increase in debt repurchases over the prior year period, as well as higher overall debt levels due to the PEA-PCI acquisition; and |
• | Payments of $49.8 million made in the second quarter of 2012 associated with our acquisition of the remaining noncontrolling interest in MCG Coal Holdings Pty Ltd. |
Period | Total Number of Shares Purchased(1) | Average Price per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | Maximum Dollar Value that May Yet Be Used to Repurchase Shares Under the Publicly Announced Program (In millions) | |||||||||
July 1 through July 31, 2012 | 1,530 | $ | 24.52 | — | $ | 700.4 | |||||||
August 1 through August 31, 2012 | 2,434 | 21.04 | — | 700.4 | |||||||||
September 1 through September 30, 2012 | 8,531 | 25.61 | — | 700.4 | |||||||||
Total | 12,495 | $ | 24.59 | — |
(1) | Represents shares withheld to cover the withholding taxes upon the vesting of restricted stock, which are not a part of the Repurchase Program. |
Nine Months Ended September 30, | |||||
2012 | 2011 | ||||
U.S.(1) | 1.29 | 1.41 | |||
Australia(1) | 2.71 | 2.66 | |||
Total Peabody Energy Corporation(1) | 1.97 | 1.89 |
PEABODY ENERGY CORPORATION | ||||
Date: | November 7, 2012 | By: | /s/ MICHAEL C. CREWS | |
Michael C. Crews | ||||
Executive Vice President and Chief Financial Officer (On behalf of the registrant and as Principal Financial Officer) |
Exhibit No. | Description of Exhibit | |
3.1 | Third Amended and Restated Certificate of Incorporation of the Registrant, as amended (Incorporated by reference to Exhibit 3.1 of the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2008). | |
3.2 | Amended and Restated By-Laws of the Registrant (Incorporated by reference to Exhibit 3.1 of the Registrant’s Current Report on Form 8-K filed on September 16, 2008). | |
10.1 | Separation and General Release Agreement entered into on July 3, 2012 by and between Richard A. Navarre and Peabody Energy Corporation (Incorporated by reference to Exhibit 10.1 of the Registrant's Current Report on Form 8-K filed July 6, 2012). | |
10.2 | Consulting Agreement dated August 27, 2012 between Peabody Energy Corporation and Richard A. Navarre (Incorporated by reference to Exhibit 10.1 of the Registrant's Current Report on Form 8-K filed August 30, 2012). | |
10.3* | Fifth Amendment to Third Amended and Restated Receivables Purchase Agreement dated as of October 24, 2011, by and among P&L Receivables Company, LLC, Peabody Energy Corporation, the various Sub-Servicers listed on the signature pages thereto, all Conduit Purchasers listed on the signature pages thereto, all Purchaser Agents listed on the signature pages thereto, all Related Committed Purchasers listed on the signature pages thereto, all LC Participants listed on the signature pages thereto, and PNC Bank, National Association, as Administrator and as LC Bank. | |
10.4* | Sixth Amendment to Third Amended and Restated Receivables Purchase Agreement dated as of May 8, 2012, by and among P&L Receivables Company, LLC, Peabody Energy Corporation, the various Sub-Servicers listed on the signature pages thereto, all Conduit Purchasers listed on the signature pages thereto, all Purchaser Agents listed on the signature pages thereto, all Related Committed Purchasers listed on the signature pages thereto, all LC Participants listed on the signature pages thereto, and PNC Bank, National Association, as Administrator and as LC Bank. | |
10.5* | Seventh Amendment to Third Amended and Restated Receivables Purchase Agreement dated as of September 26, 2012, by and among P&L Receivables Company, LLC, Peabody Energy Corporation, the various Sub-Servicers listed on the signature pages thereto, all Conduit Purchasers listed on the signature pages thereto, all Purchaser Agents listed on the signature pages thereto, all Related Committed Purchasers listed on the signature pages thereto, all LC Participants listed on the signature pages thereto, and PNC Bank, National Association, as Administrator and as LC Bank. | |
31.1* | Certification of periodic financial report by Peabody Energy Corporation’s Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2* | Certification of periodic financial report by Peabody Energy Corporation’s Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1* | Certification of periodic financial report pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, by Peabody Energy Corporation’s Chief Executive Officer. | |
32.2* | Certification of periodic financial report pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, by Peabody Energy Corporation’s Chief Financial Officer. | |
95* | Mine Safety Disclosure required by Item 104 of Regulation S-K. | |
101* | Interactive Data File (Form 10-Q for the quarterly period ended September 30, 2012 filed in XBRL). The financial information contained in the XBRL-related documents is “unaudited” and “unreviewed.” |
* | Filed herewith. | |
(i) | P&L RECEIVABLES COMPANY, LLC, a Delaware limited liability company, as Seller; |
(ii) | Peabody energy corporation, A Delaware corporation, as Servicer; |
(iii) | the various Persons identified on the signature pages hereto as Sub-Servicers; |
(iv) | MARKET STREET FUNDING LLC (“Market Street”) , as a Conduit Purchaser and as a Related Committed Purchaser; |
(v) | PNC BANK, NATIONAL ASSOCIATION, as Purchaser Agent for Market Street's Purchaser Group, as LC Bank, as an LC Participant and as Administrator; |
(vi) | ATLANTIC ASSET SECURITIZATION LLC (“Atlantic”), as a Conduit Purchaser; and |
(vii) | CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK NEW YORK BRANCH, as a Related Committed Purchaser, as Purchaser Agent for Atlantic's Purchase Group and as an LC Participant. |
C | = the aggregate Capital held by all Purchasers in such LC Participant's Purchaser Group; |
LCFE | = the LC Funding Exposure of such LC Participant's |
(i) | P&L RECEIVABLES COMPANY, LLC, a Delaware limited liability company, as Seller; |
(ii) | Peabody energy corporation, A Delaware corporation, as Servicer; |
(iii) | the various Persons identified on the signature pages hereto as Sub-Servicers; |
(iv) | MARKET STREET FUNDING LLC (“Market Street”) , as a Conduit Purchaser and as a Related Committed Purchaser; |
(v) | PNC BANK, NATIONAL ASSOCIATION, as Purchaser Agent for Market Street's Purchaser Group, as LC Bank, as an LC Participant and as Administrator; |
(vi) | ATLANTIC ASSET SECURITIZATION LLC (“Atlantic”), as a Conduit Purchaser; and |
(vii) | CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK NEW YORK BRANCH, as a Related Committed Purchaser, as Purchaser Agent for Atlantic's Purchase Group and as an LC Participant. |
(i) | P&L RECEIVABLES COMPANY, LLC, a Delaware limited liability company, as Seller; |
(ii) | PEABODY ENERGY CORPORATION, a Delaware corporation, as Servicer; |
(iii) | the various Persons identified on the signature pages hereto as Sub-Servicers; |
(iv) | MARKET STREET FUNDING LLC (“Market Street”), as a Conduit Purchaser and as a Related Committed Purchaser; |
(v) | PNC BANK, NATIONAL ASSOCIATION, as Purchaser Agent for Market Street's Purchaser Group, as LC Bank, as an LC Participant and as Administrator; |
(vi) | ATLANTIC ASSET SECURITIZATION LLC (“Atlantic”), as a Conduit Purchaser; and |
(vii) | CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK NEW YORK BRANCH, as a Related Committed Purchaser, as Purchaser Agent for Atlantic's Purchaser Group and as an LC Participant. |
1. | I have reviewed this quarterly report on Form 10-Q of Peabody Energy Corporation (“the registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Gregory H. Boyce | ||||
Gregory H. Boyce | ||||
Chairman and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Peabody Energy Corporation (“the registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Michael C. Crews | ||||
Michael C. Crews | ||||
Executive Vice President and Chief Financial Officer |
(1) | the Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2012 (the “Periodic Report”) which this statement accompanies fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(2) | information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of Peabody Energy Corporation. |
/s/ Gregory H. Boyce | ||||
Gregory H. Boyce | ||||
Chairman and Chief Executive Officer |
(1) | the Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2012 (the “Periodic Report”) which this statement accompanies fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(2) | information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of Peabody Energy Corporation. |
/s/ Michael C. Crews | ||||
Michael C. Crews | ||||
Executive Vice President and Chief Financial Officer |
• | Section 104 S&S Violations: The total number of violations received from MSHA under section 104(a) of the Mine Act that could significantly and substantially contribute to a serious injury if left unabated. In prior periodic reports, all violations received from MSHA under section 104(a) of the Mine Act, not limited to those that could significantly and substantially contribute to a serious injury if left unabated, were shown. |
• | Section 104(b)Orders: The total number of orders issued by MSHA under section 104(b) of the Mine Act, which represents a failure to abate a citation under section 104(a) within the period of time prescribed by MSHA. This results in an order of immediate withdrawal from the area of the mine affected by the condition until MSHA determines that the violation has been abated. |
• | Section 104(d)Citations and Orders: The total number of citations and orders issued by MSHA under section 104(d) of the Mine Act for unwarrantable failure to comply with mandatory health or safety standards. |
• | Section 104(e) Notices: The total number of notices issued by MSHA under section 104(e) of the Mine Act for a pattern of violations that could contribute to mine health or safety hazards. |
• | Section 110(b)(2)Violations: The total number of flagrant violations issued by MSHA under section 110(b)(2) of the Mine Act. |
• | Section 107(a)Orders: The total number of orders issued by MSHA under section 107(a) of the Mine Act for situations in which MSHA determined an imminent danger existed. |
• | Proposed MSHA Assessments: The total dollar value of proposed assessments from MSHA. |
• | Fatalities: The total number of related fatalities. |
Section 104 S&S Violations | Section 104(b) Orders | Section 104(d) Citations and Orders | Section 104(e) Potential Pattern of Violations | Section 110(b)(2) Violations | Section 107(a) Orders | ($) Proposed MSHA Assessments | ||||||||||||||||||
Mine (1) | Fatalities | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Western U.S. Mining | ||||||||||||||||||||||||
Caballo | 1 | — | — | — | — | — | 1.2 | — | ||||||||||||||||
El Segundo | 8 | — | — | — | — | — | 4.0 | — | ||||||||||||||||
Kayenta | 15 | 1 | 10 | — | — | — | 21.9 | — | ||||||||||||||||
North Antelope Rochelle | — | — | — | — | — | — | 0.5 | — | ||||||||||||||||
Peabody Williams Fork Mining, LLC | — | — | — | — | — | — | 0.1 | — | ||||||||||||||||
Rawhide | — | — | — | — | — | — | 0.2 | — | ||||||||||||||||
Sage Creek | 1 | — | — | — | — | — | — | — | ||||||||||||||||
Twentymile (Foidel Creek) | 9 | — | 3 | — | — | — | 35.1 | — | ||||||||||||||||
Midwestern U.S. Mining | ||||||||||||||||||||||||
Air Quality (2) | 26 | — | — | — | — | — | 176.5 | — | ||||||||||||||||
Bear Run | 6 | — | — | — | — | — | 5.9 | — | ||||||||||||||||
Francisco Surface (3) | 1 | — | — | — | — | — | 2.2 | — | ||||||||||||||||
Francisco Underground | 23 | — | 1 | — | — | — | 164.5 | — | ||||||||||||||||
Gateway | 11 | — | — | — | — | — | 69.7 | — | ||||||||||||||||
Midwest Repair Facility (Columbia Maintenance Services) | — | — | — | — | — | — | 0.1 | — | ||||||||||||||||
Viking - Corning Pit | — | — | — | — | — | — | 0.2 | — | ||||||||||||||||
Wildcat Hills Underground | 5 | — | — | — | — | — | 39.9 | — | ||||||||||||||||
Willow Lake Central Preparation Plant | — | — | — | — | — | — | 0.1 | — | ||||||||||||||||
Willow Lake Portal | 74 | 1 | 6 | — | — | — | 688.0 | — |
(1) | The definition of mine under section 3 of the Mine Act includes the mine, as well as other items used in, or to be used in, or resulting from, the work of extracting coal, such as land, structures, facilities, equipment, machines, tools and coal preparation facilities. Also, there are instances where the mine name per the MSHA system differs from the mine name utilized by us. Where applicable, we have parenthetically listed the name of the mine per the MSHA system. Also, all mines are listed alphabetically within each of our U.S. mining segments. |
(2) | Mine classified in discontinued operation as of September 30, 2012. |
(3) | Mine was closed as of September 30, 2012. |
Section 104 S&S Violations | Section 104(b) Orders | Section 104(d) Citations and Orders | Section 104(e) Potential Pattern of Violations | Section 110(b)(2) Violations | Section 107(a) Orders | ($) Proposed MSHA Assessments | ||||||||||||||||||
Mine (1) | Fatalities | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Western U.S. Mining | ||||||||||||||||||||||||
Caballo | 3 | — | — | — | — | 1 | 6.1 | — | ||||||||||||||||
El Segundo | 11 | — | — | — | — | — | 12.0 | — | ||||||||||||||||
Kayenta | 24 | 1 | 13 | — | — | — | 78.1 | — | ||||||||||||||||
Lee Ranch | 9 | — | — | — | — | — | 13.5 | — | ||||||||||||||||
North Antelope Rochelle | 5 | — | 1 | — | — | — | 56.6 | — | ||||||||||||||||
Peabody Williams Fork Mining, LLC | — | — | — | — | — | — | 0.1 | — | ||||||||||||||||
Rawhide | 10 | — | — | — | — | — | 21.3 | — | ||||||||||||||||
Sage Creek | 4 | — | — | — | — | — | 1.5 | — | ||||||||||||||||
Twentymile (Foidel Creek) | 44 | — | 3 | — | — | — | 213.4 | — | ||||||||||||||||
Midwestern U.S. Mining | ||||||||||||||||||||||||
Air Quality (2) | 90 | — | 2 | — | — | 1 | 910.1 | — | ||||||||||||||||
Bear Run | 9 | — | — | — | — | — | 12.8 | — | ||||||||||||||||
Cottage Grove (Wildcat Hills-Cottage Grove Pit) | 3 | — | — | — | — | — | 2.7 | — | ||||||||||||||||
Francisco Surface (3) | 1 | — | — | — | — | — | 2.7 | — | ||||||||||||||||
Francisco Underground | 76 | — | 1 | — | — | 1 | 455.1 | — | ||||||||||||||||
Gateway | 43 | — | 1 | — | — | — | 348.5 | — | ||||||||||||||||
Gateway Preparation Plant | 2 | — | — | — | — | — | 1.6 | — | ||||||||||||||||
Midwest Repair Facility (Columbia Maintenance Services) | — | — | — | — | — | — | 0.1 | — | ||||||||||||||||
Somerville Central | 1 | — | — | — | — | — | 1.9 | — | ||||||||||||||||
Viking - Corning Pit | 7 | — | — | — | — | — | 18.7 | — | ||||||||||||||||
Wild Boar | — | — | — | — | — | — | 0.1 | — | ||||||||||||||||
Wildcat Hills Underground | 22 | — | — | — | — | — | 144.6 | — | ||||||||||||||||
Willow Lake Central Preparation Plant | 3 | — | — | — | — | — | 1.4 | — | ||||||||||||||||
Willow Lake Portal | 143 | 1 | 6 | — | — | 1 | 1,563.0 | — |
(1) | The definition of mine under section 3 of the Mine Act includes the mine, as well as other items used in, or to be used in, or resulting from, the work of extracting coal, such as land, structures, facilities, equipment, machines, tools and coal preparation facilities. Also, there are instances where the mine name per the MSHA system differs from the mine name utilized by us. Where applicable, we have parenthetically listed the name of the mine per the MSHA system. Also, all mines are listed alphabetically within each of our U.S. mining segments. |
(2) | Mine classified in discontinued operation as of September 30, 2012. |
(3) | Mine was closed as of September 30, 2012. |
• | Contests of Citations and Orders: A contest proceeding may be filed with the Commission by operators, miners or miners’ representatives to challenge the issuance of a citation or order issued by MSHA. |
• | Contests of Proposed Penalties (Petitions for Assessment of Penalties): A contest of a proposed penalty is an administrative proceeding before the Commission challenging a civil penalty that MSHA has proposed for the violation. |
• | Complaints for Compensation: A complaint for compensation may be filed with the Commission by miners entitled to compensation when a mine is closed by certain withdrawal orders issued by MSHA. The purpose of the proceeding is to determine the amount of compensation, if any, due miners idled by the orders. |
• | Complaints of Discharge, Discrimination or Interference: A discrimination proceeding is a case that involves a miner’s allegation that he or she has suffered a wrong by the operator because he or she engaged in some type of activity protected under the Mine Act, such as making a safety complaint. |
• | Temporary Reinstatement Proceedings: Temporary reinstatement proceedings involve cases in which a miner has filed a complaint with MSHA stating he or she has suffered discrimination and the miner has lost his or her position. |
• | Emergency Response Plan (ERP) Dispute Proceedings: ERP dispute proceedings are cases brought before the Commission when an operator is issued a citation because it has not agreed to include a certain provision in its ERP. |
Pending Legal Actions | Legal Actions Initiated During the Three Months Ended September 30, 2012 | Legal Actions Resolved During the Three Months Ended September 30, 2012 | ||||||||||
Number of Pending Legal Actions as of September 30, 2012 | Pre-Penalty Contests of Citations/Orders | Contests of Penalty Assessment | Complaints of Discharge, Discrimination or Interference | |||||||||
Mine(1) | ||||||||||||
Western U.S. Mining | ||||||||||||
Kayenta | 10 | 4 | 6 | — | 1 | — | ||||||
Lee Ranch | 1 | — | 1 | — | 1 | — | ||||||
North Antelope Rochelle | 3 | — | 3 | — | — | 2 | ||||||
Rawhide | 1 | — | 1 | — | 1 | — | ||||||
Sage Creek | 1 | — | 1 | — | 1 | — | ||||||
Twentymile (Foidel Creek) | 32 | 4 | 28 | — | 7 | — | ||||||
Midwestern U.S. Mining | ||||||||||||
Air Quality (2) | 23 | — | 23 | — | — | — | ||||||
Air Quality South Wash Plant (2) | 1 | — | 1 | — | — | — | ||||||
Francisco Surface (3) | 2 | — | 2 | — | — | — | ||||||
Francisco Underground | 8 | 1 | 7 | — | — | — | ||||||
Gateway | 8 | 3 | 5 | — | — | 11 | ||||||
Midwest Repair Facility (Columbia Maintenance Services) | 3 | 2 | 1 | — | — | — | ||||||
Somerville Central | 1 | — | 1 | — | — | 1 | ||||||
Vermilion Grove (Riola Complex Vermilion Grove Portal) (3) | 3 | — | 3 | — | — | — | ||||||
Wildcat Hills Underground | 3 | — | 3 | — | — | — | ||||||
Willow Lake Portal | 83 | 45 | 36 | 2 | 3 | — |
(1) | The definition of mine under section 3 of the Mine Act includes the mine, as well as other items used in, or to be used in, or resulting from, the work of extracting coal, such as land, structures, facilities, equipment, machines, tools and coal preparation facilities. Also, there are instances where the mine name per the MSHA system differs from the mine name utilized by us. Where applicable, we have parenthetically listed the name of the mine per the MSHA system. Also, all mines are listed alphabetically within each of our U.S. mining segments. |
(2) | Mine classified in discontinued operation as of September 30, 2012. |
(3) | Mine was closed as of September 30, 2012. |
Other Commercial Events Other Commercial Events (Tables)
|
9 Months Ended | ||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
|||||||||||||||||||||||||
Other Commercial Events [Abstract] | |||||||||||||||||||||||||
Resource Management And Other Commercial Events [Text Block] |
|
Discontinued Operations Details 1 (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
Dec. 31, 2011
|
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Total revenues | $ 41.5 | $ 55.3 | $ 171.5 | $ 122.7 | |
Loss from discontinued operations before income taxes | (127.6) | (12.1) | (146.6) | (53.9) | |
Income tax benefit | (46.3) | (2.4) | (53.9) | (15.0) | |
Loss from discontinued operations, net of income taxes | (81.3) | (9.7) | (92.7) | (38.9) | |
Other current assets | 48.4 | 48.4 | 24.6 | ||
Investments and other assets | 135.2 | 135.2 | 232.2 | ||
Total assets classified as discontinued operations | 183.6 | 183.6 | 256.8 | ||
Accounts payable and accrued expenses | 33.4 | 33.4 | 63.9 | ||
Other noncurrent liabilities | 59.8 | 59.8 | 59.6 | ||
Total liabilities classified as discontinued operations | $ 93.2 | $ 93.2 | $ 123.5 |
Derivatives and Fair Value Measurements (Details 2) (USD $)
In Millions, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Current | $ 319.5 | $ 313.8 |
Derivative Assets, Noncurrent | 230.2 | 240.7 |
Derivative Liabilities, Current | 6.1 | 11.4 |
Derivative Liabilities, Noncurrent | 6.9 | 19.5 |
Foreign Exchange Contract [Member] | Cash flow hedges [Member]
|
||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Current | 286.7 | 270.4 |
Derivative Assets, Noncurrent | 225.0 | 229.0 |
Derivative Liabilities, Current | 0 | 4.3 |
Derivative Liabilities, Noncurrent | 0 | 4.5 |
Commodity contracts [Member] | Cash flow hedges [Member]
|
||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Current | 32.8 | 43.4 |
Derivative Assets, Noncurrent | 5.2 | 11.7 |
Derivative Liabilities, Current | 6.1 | 7.1 |
Derivative Liabilities, Noncurrent | $ 6.9 | $ 15.0 |
Acquisition of Macarthur Coal Limited Details Textuals (Details) (USD $)
|
3 Months Ended | 9 Months Ended | 9 Months Ended | 2 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 2 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
Additional Paid-in Capital [Member]
|
Sep. 30, 2012
MCGH [Member]
|
Feb. 03, 2012
MCGH [Member]
|
Feb. 03, 2012
MCGH [Member]
Term Loan Facility Three [Member]
|
Sep. 30, 2012
MCGH [Member]
Additional Paid-in Capital [Member]
|
Dec. 21, 2011
ArcelorMittal Mining Australasia B.V. [Member]
|
Dec. 20, 2011
Macarthur [Member]
|
Dec. 31, 2012
Macarthur [Member]
|
Sep. 30, 2012
Macarthur [Member]
|
Sep. 30, 2012
Macarthur [Member]
|
Dec. 31, 2015
Macarthur [Member]
|
Dec. 31, 2014
Macarthur [Member]
|
Dec. 31, 2013
Macarthur [Member]
|
Dec. 21, 2011
Macarthur [Member]
|
Oct. 26, 2011
Macarthur [Member]
|
Oct. 23, 2011
Macarthur [Member]
|
Dec. 20, 2011
Macarthur [Member]
PEAMCoal [Member]
|
|
Business Acquisition [Line Items] | |||||||||||||||||||||
Ownership percentage of the Company in the newly formed company | 100.00% | 60.00% | |||||||||||||||||||
Ownership percentage of the joint owner in the newly formed company | 40.00% | 40.00% | |||||||||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 2,800,000,000 | $ 4,800,000,000 | |||||||||||||||||||
Cash Acquired from Acquisition | 261,200,000 | ||||||||||||||||||||
Business Acquisition, Other Acquisitions | 2,000,000,000 | ||||||||||||||||||||
Business Combination, provisional information, initial accounting incomplete, adjustment, depreciation, depletion and amortization | 4,700,000 | 12,200,000 | |||||||||||||||||||
Business Combinations, Provisional information, Initial accounting incomplete, adjustment, operating costs and expenses | 10,100,000 | ||||||||||||||||||||
Business Acquisition Purchase Price Allocation: Take or Pay Liability | 47,400,000 | 47,400,000 | 58,500,000 | ||||||||||||||||||
Business Combinations Provisional Information Initial Accounting Incomplete Adjustment Expenses Related to Take or Pay Arrangements | 3,800,000 | 11,100,000 | |||||||||||||||||||
Take Or Pay Commitments Due Within The Next Year | 3,700,000 | ||||||||||||||||||||
Take or Pay Commitments Due Within Next Two Years | 18,100,000 | ||||||||||||||||||||
Take or Pay Commitments Due Within Next Three Year | 15,600,000 | ||||||||||||||||||||
Take Or Pay Commitments Due Within Next Four Years | 10,000,000 | ||||||||||||||||||||
Revenues | 2,058,800,000 | 1,980,600,000 | 6,060,600,000 | 5,666,100,000 | 182,500,000 | 479,500,000 | |||||||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | 172,200,000 | 330,400,000 | 605,900,000 | 1,030,100,000 | (4,400,000) | 98,700,000 | |||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Investments and Other Assets | 384,600,000 | ||||||||||||||||||||
Equity Interest, Converted From Receivable, Per Court Ruling | 90.00% | ||||||||||||||||||||
business combinations, recognized identifiable assets acquired and liabilities assumed, noncontrolling interest | 53,400,000 | ||||||||||||||||||||
Acquisition of MCG Coal Holdings Pty Ltd noncontrolling interests | (49,800,000) | 0 | 3,600,000 | 49,800,000 | 3,600,000 | ||||||||||||||||
Net Income (Loss) Attributable to Parent | $ 42,900,000 | $ 274,100,000 | $ 420,300,000 | $ 735,400,000 |
Derivatives and Fair Value Measurements (Tables) (Non Coal Trading [Member])
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non Coal Trading [Member]
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company's foreign currency and commodity positions | Notional Amounts and Fair Value. The following summarizes the Company’s foreign currency and commodity positions at September 30, 2012:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Classification and amounts of pre-tax gains and losses related to the Company's non-trading hedges | The tables below show the classification and amounts of pre-tax gains and losses related to the Company’s non-coal trading hedges during the three and nine months ended September 30, 2012 and 2011:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Classification and amount of derivatives, gross | The classification and amount of derivatives presented on a gross basis as of September 30, 2012 and December 31, 2011 were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value measured on recurring basis of financial assets and liabilities | The following tables set forth the hierarchy of the Company’s net financial asset positions for which fair value is measured on a recurring basis:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying amounts and estimated fair values of the Company's debt | The carrying amounts and estimated fair values of the Company’s debt are summarized as follows:
|
Subsequent Events (Details) (USD $)
In Millions, unless otherwise specified |
9 Months Ended | |
---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Subsequent Event [Line Items] | ||
Payments to Acquire Businesses and Interest in Affiliates | $ 0 | $ 45.5 |
Commitments and Contingencies (Details 1) (USD $)
|
3 Months Ended | 9 Months Ended | 12 Months Ended | 264 Months Ended | 12 Months Ended | |||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015
|
Dec. 31, 2014
|
Dec. 31, 2013
|
Dec. 31, 2012
|
Sep. 30, 2012
T
|
Sep. 30, 2011
T
|
Sep. 30, 2012
|
Dec. 31, 2016
|
Dec. 31, 2015
|
Dec. 31, 2014
T
|
Dec. 31, 2013
T
|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2032
Y
|
Jul. 31, 2011
T
|
Sep. 30, 2012
Capital Additions [Member]
|
Dec. 31, 2020
Minimum [Member]
T
|
Dec. 31, 2019
Minimum [Member]
T
|
Dec. 31, 2018
Minimum [Member]
T
|
Dec. 31, 2017
Minimum [Member]
T
|
Dec. 31, 2016
Minimum [Member]
T
|
Dec. 31, 2015
Minimum [Member]
T
|
Dec. 31, 2020
Maximum [Member]
T
|
Dec. 31, 2019
Maximum [Member]
T
|
Dec. 31, 2018
Maximum [Member]
T
|
Dec. 31, 2017
Maximum [Member]
T
|
Dec. 31, 2016
Maximum [Member]
T
|
Dec. 31, 2015
Maximum [Member]
T
|
|
Long-term Purchase Commitment [Line Items] | ||||||||||||||||||||||||||||
Commitments outstanding for capital expenditures due, total | $ 728,300,000 | |||||||||||||||||||||||||||
Commitments outstanding for capital expenditures due within one year | 688,500,000 | |||||||||||||||||||||||||||
LeasedcoalreservesadjacenttoNARM | 1,100,000,000 | |||||||||||||||||||||||||||
Weightedaveragebidpricepermineabletononcoalreserves | 1.10 | 1.10 | ||||||||||||||||||||||||||
Annualpaymentsoncoalreserves2012to2016 | 247,900,000 | 247,900,000 | 247,900,000 | 247,900,000 | 247,900,000 | |||||||||||||||||||||||
Number Of Tons Of Coal In Which Company Was Named Winning Bidder | 220,000,000 | |||||||||||||||||||||||||||
Bid Price Per Mineable Ton | 0.95 | |||||||||||||||||||||||||||
Annual Coal Reserve Payments Pursuant To Belle Ayr North Lease | 42,100,000 | 42,100,000 | 42,100,000 | 42,100,000 | 42,100,000 | |||||||||||||||||||||||
Number Of Tons Of Coal In Which Company Was Named Winning Bidder In The Powder River Basin | 130,000,000 | |||||||||||||||||||||||||||
Bid Price Per Mineable Ton In The Powder River Basin | 1.10 | |||||||||||||||||||||||||||
Annual Coal Reserve Payments Pursuant To Caballo West Lease | 28,600,000 | 28,600,000 | 28,600,000 | 28,600,000 | 28,600,000 | |||||||||||||||||||||||
Reimbursement for the difference in the federal coal lease payments made in 2011 | 13,500,000 | |||||||||||||||||||||||||||
Annual true up payments for the excess of the $1.10 bid price versus $0.95 under the transferred lease | 3,900,000 | 3,900,000 | 3,900,000 | 3,900,000 | 3,900,000 | |||||||||||||||||||||||
Aggregate received from Alpha for the reimbursement payment and first true up payment | $ 17,400,000 | |||||||||||||||||||||||||||
Remaining annual true up payments due from Alpha on November 1 of each of the years from 2012 through 2015 | 4 | |||||||||||||||||||||||||||
Federal Coal Lease Term | 20 | |||||||||||||||||||||||||||
Export capacity in 2013 | 2,000,000 | |||||||||||||||||||||||||||
Export Capacity in 2014 | 4,000,000 | |||||||||||||||||||||||||||
Export Capacity Increase From Kinder Morgan | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | 7,000,000 | 7,000,000 | 7,000,000 | 7,000,000 | 7,000,000 | 7,000,000 |
Derivatives and Fair Value Measurements (Details 4) (USD $)
In Millions, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 6,363.1 | $ 6,657.5 |
Carrying amount [Member]
|
||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 6,363.1 | 6,657.5 |
Estimated fair value [Member]
|
||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 6,393.0 | $ 6,922.7 |
7.875% Senior Notes due November 2026 [Member]
|
||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rates on Senior Notes | 7.875% |
Commitments and Contingencies
|
9 Months Ended |
---|---|
Sep. 30, 2012
|
|
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments Unconditional Purchase Obligations As of September 30, 2012, purchase commitments for capital expenditures were $728.3 million, all of which is obligated within the next three years and $688.5 million is obligated in the next 12 months. Federal Coal Leases In the second quarter of 2012, the Company was named by the U.S. Department of the Interior, Bureau of Land Management (BLM) as the winning bidder for control of approximately 1.1 billion tons of federal coal reserves adjacent to its North Antelope Rochelle Mine in the Southern Powder River Basin of Wyoming, with a weighted average bid price of approximately $1.10 per mineable ton. Consequently, the Company made aggregate payments of $247.9 million in the nine months ended September 30, 2012 pursuant to the two associated federal coal leases, with remaining annual payments of $247.9 million due in each of the next four years. In July 2011, the Company was named by the BLM as the winning bidder for control of approximately 220 million tons of federal coal reserves adjacent to its Caballo Mine in the Powder River Basin at a bid price of $0.95 per mineable ton, with payments of $42.1 million due annually in each of the years from 2011 through 2015 pursuant to the associated federal coal lease (the Belle Ayr North Lease). Similarly, in September 2011, a subsidiary of Alpha Natural Resources, Inc. (Alpha) was named by the BLM as the winning bidder for control of approximately 130 million tons of federal coal reserves in the Powder River Basin at a bid price of $1.10 per mineable ton, with contractual payments of $28.6 million due annually in each of the years from 2011 through 2015 under the associated federal coal lease (the Caballo West Lease). In July 2012, the Company and Alpha executed a lease exchange agreement with the BLM whereby the Company agreed to sell, assign and transfer its interest in the Belle Ayr North Lease in exchange for (i) Alpha's interest in the Caballo West Lease, (ii) reimbursement of $13.5 million for the difference in the related federal coal lease payments made by each party in 2011 and (iii) five annual true up payments of $3.9 million for the excess of the $1.10 bid price per mineable ton assumed under the Caballo West Lease over the $0.95 price under the transferred lease. An aggregate of $17.4 million was received from Alpha at closing for the reimbursement payment and first true up payment, which was classified in "Proceeds from disposal of assets" in the unaudited condensed consolidated statement of cash flows for the nine months ended September 30, 2012. The four remaining annual true up payments are due from Alpha on November 1 in each of the years from 2012 through 2015. The federal coal leases executed with the BLM described above expire after a 20-year initial term, unless at such time there is ongoing production on the subject leases or within an active logical mining unit of which they are part. Other In the third quarter of 2012, the Company entered into long-term agreements with Kinder Morgan Energy Partners L.P. (Kinder Morgan) to secure and expand the Gulf Coast export platform of the Company's Western U.S. Mining and Midwestern U.S. Mining coal products. Under the multi-terminal agreements, the Company gains additional access to Kinder Morgan's Deepwater Terminal and Houston Bulk Terminal near Houston, Texas and International Marine Terminal in Myrtle Grove, Louisiana through 2021 and 2020, respectively. The agreements are expected to increase the Company's annual Gulf Coast coal export capacity by approximately 2 million and 4 million tons in 2013 and 2014, respectively, and 5 million to 7 million tons in each of the years from 2015 through 2020. These agreements are subject to customary minimum throughput obligations during those periods at commercially reasonable coal handling, blending and storage rates. There were no other material changes to the Company’s commitments from the information provided in Note 23 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011. Contingencies From time to time, the Company and/or its subsidiaries are involved in legal proceedings arising in the ordinary course of business or related to indemnities or historical operations. The Company believes it has recorded adequate reserves for these liabilities and that there is no individual case pending that is likely to have a material adverse effect on the Company’s financial condition, results of operations or cash flows. The Company discusses its significant legal proceedings below. Litigation Relating to Continuing Operations Gulf Power Company Litigation. On June 22, 2006, Gulf Power Company (Gulf Power) filed a breach of contract lawsuit against a Company subsidiary in the U.S. District Court, Northern District of Florida, contesting the force majeure declaration by the Company’s subsidiary under a coal supply agreement with Gulf Power and seeking damages for alleged past and future tonnage shortfalls of nearly 5 million tons under the agreement, which expired on December 31, 2007. On June 30, 2009, the court granted Gulf Power’s motion for partial summary judgment on liability and denied the Company subsidiary’s motion for summary judgment. On September 30, 2010, the court entered its order on damages, awarding Gulf Power zero dollars in damages and the Company subsidiary its costs to defend the lawsuit. On November 1, 2010, Gulf Power filed a motion to alter or amend the judgment, contesting the trial court’s damages order, to which the Company subsidiary objected. The court entered an order on July 29, 2011 that affirmed its September 30, 2010 decision in all respects except for 2007 cover coal purchases and granted in part Gulf Power's motion to alter judgment with respect to 2007 cover coal purchases. On September 30, 2011, the court entered an order awarding Gulf Power damages in the amount of $20.5 million for its 2007 cover coal purchases. On January 19, 2012, the court entered its order awarding Gulf Power prejudgment interest in the amount of $6.9 million plus post-judgment interest. The Company's subsidiary has filed its notice of appeal and briefing is complete. Oral arguments before the U.S. Court of Appeals for the Eleventh Circuit is scheduled for the week of January 26, 2013. Based on the Company's evaluation of information currently available concerning the issues and their potential impact, the Company believes that its subsidiary will be successful in the liability appeals process and, therefore, no liability has been recorded at this time. Monto Coal Pty Limited, Monto Coal 2 Pty Ltd Limited and Macarthur Coal Limited. In October 2007, a statement of claim was delivered to Monto Coal Pty Ltd, a wholly owned subsidiary of PEA-PCI, then Macarthur Coal Limited, and Monto Coal 2 Pty Ltd, an equity accounted investee, from the minority interest holders in the Monto Coal Joint Venture, alleging that Monto Coal 2 Pty Ltd breached the Monto Coal Joint Venture Agreement and Monto Coal Pty Ltd breached the Monto Coal Management Agreement. Monto Coal Pty Ltd is the manager of the Monto Coal Joint Venture pursuant to the Management Agreement. Monto Coal 2 Pty Ltd holds a 51% interest in the Monto Coal Joint Venture. The plaintiffs are Sanrus Pty Ltd, Edge Developments Pty Ltd and H&J Enterprises (Qld) Pty Ltd. An additional statement of claim was delivered to PEA-PCI in November 2010 from the same minority interest holders in the Monto Coal Joint Venture, alleging that PEA-PCI induced Monto Coal 2 Pty Ltd and Monto Coal Pty Ltd to breach the Monto Coal Joint Venture Agreement and the Monto Coal Management Agreement, respectively. These actions, which are pending before the Supreme Court of Queensland, Australia, seek damages from the three defendants collectively of no less than $1,193.2 million Australian dollars, plus interest and costs. The defendants dispute the claims and are vigorously defending their positions. Based on the Company's evaluation of the issues and their potential impact, the amount of any future loss cannot be reasonably estimated. However, based on current information, the Company believes these claims are likely to be finalized without a material adverse effect on its financial condition, results of operations or cash flows. Claims and Litigation Relating to Indemnities or Historical Operations Oklahoma Lead Claims. Gold Fields Mining, LLC (Gold Fields) is a dormant, non-coal producing entity that was previously managed and owned by Hanson plc, the Company’s predecessor owner. In a February 1997 spin-off, Hanson plc transferred ownership of Gold Fields to the Company, despite the fact that Gold Fields had no ongoing operations and the Company had no prior involvement in its past operations. Gold Fields is currently one of the Company’s subsidiaries. The Company indemnified TXU Group with respect to certain claims relating to a former affiliate of Gold Fields. A predecessor of Gold Fields formerly operated two lead mills near Picher, Oklahoma prior to the 1950s and mined, in accordance with lease agreements and permits, approximately 0.15% of the total amount of the crude ore mined in the county. In June 2005, Gold Fields and other potentially responsible parties (PRPs) received a letter from the U. S. Department of Justice alleging that the PRPs' mining operations caused the U.S. Environmental Protection Agency (EPA) to incur approximately $125 million in residential yard remediation costs at Picher, Oklahoma and will cause the EPA to incur additional remediation costs relating to historical mining sites. In June 2008, Gold Fields and other PRPs received letters from the U.S. Department of Justice and the EPA re-initiating settlement negotiations. Gold Fields continues to participate in the settlement discussions. Gold Fields believes it has meritorious defenses to these claims. In February 2005, the state of Oklahoma, on behalf of itself and several other parties, sent a notice to Gold Fields and other companies regarding a possible natural resources damage claim. The state of Oklahoma has also indicated that it seeks to recover remediation costs from these parties. The outcome of these claims is subject to numerous uncertainties. Based on the Company’s evaluation of the issues and their potential impact, the amount of any future loss cannot be reasonably estimated. However, based on current information, the Company believes these claims are likely to be resolved without a material adverse effect on its financial condition, results of operations or cash flows. Patriot Coal Corporation. On October 23, 2012, eight individual plaintiffs and the United Mine Workers of America filed a putative class action lawsuit in the U.S. District Court for the Southern District of West Virginia against Peabody Holding Company, LLC, Peabody Energy Corporation and an unrelated coal company. The lawsuit seeks to have the court obligate the defendants to maintain certain Patriot Coal Corporation benefit plans at their current levels and to find the defendants actions in violation of the Employee Retirement Income Security Act of 1974. The Company believes that the lawsuit is without merit and will vigorously defend against it. Environmental Claims and Litigation Environmental claims have been asserted against Gold Fields related to activities of Gold Fields or a former affiliate. Gold Fields or the former affiliate has been named a PRP at five national priority list sites based on the Superfund Amendments and Reauthorization Act of 1986. Claims were asserted at 13 additional sites, bringing the total to 18, which have since been reduced to 10 by completion of work, transfer or regulatory inactivity. The number of PRP sites in and of itself is not a relevant measure of liability because the nature and extent of environmental concerns varies by site, as does the estimated share of responsibility relative to other PRPs for Gold Fields or the former affiliate. Undiscounted liabilities for environmental cleanup-related costs for all of the sites noted above were $48.7 million as of September 30, 2012 and $52.5 million as of December 31, 2011, $7.8 million and $11.6 million of which was reflected as a current liability, respectively. These amounts represent those costs that the Company believes are probable and reasonably estimable. Significant uncertainty exists as to whether claims will be pursued against Gold Fields in all cases, and where they are pursued, the amount of the eventual costs and liabilities, which could be greater or less than the liabilities recorded in the consolidated balance sheets. Based on the Company's evaluation of the issues and their potential impact, the total amount of any future loss cannot be reasonably estimated. However, based on current information, the Company believes these claims are likely to be resolved without a material adverse effect on its financial condition, results of operations or cash flows. Native Village of Kivalina and City of Kivalina v. ExxonMobil Corporation, et al. In February 2008, the Native Village of Kivalina and the City of Kivalina filed a lawsuit in the U.S. District Court for the Northern District of California against the Company, several owners of electricity generating facilities and several oil companies. The plaintiffs are the governing bodies of a village in Alaska that they contend is being destroyed by erosion allegedly caused by global warming that the plaintiffs attribute to emissions of greenhouse gases by the defendants. The plaintiffs assert claims for nuisance, and allege that the defendants have acted in concert and are jointly and severally liable for the plaintiffs’ damages. The suit seeks damages for lost property values and for the cost of relocating the village. The defendants filed motions to dismiss on the grounds of lack of personal and subject matter jurisdiction. In June 2009, the court granted defendants’ motion to dismiss for lack of subject matter jurisdiction finding that plaintiffs’ federal claim for nuisance is barred by the political question doctrine and for lack of standing. The plaintiffs appealed the court’s dismissal to the U.S. Court of Appeals for the Ninth Circuit, which heard oral arguments on November 28, 2011. On September 29, 2012, the U.S. Court of Appeals for the Ninth Circuit affirmed the district court's dismissal of the case on the grounds that the Clean Air Act and Environmental Protection Agency action under the Clean Air Act displaces the plaintiffs' claims. On October 4, 2012, the plaintiffs filed a petition for rehearing en banc, which requests the case to be heard before all judges of the court. Other In addition, at times the Company becomes a party to other claims, lawsuits, arbitration proceedings and administrative procedures in the ordinary course of business in the U.S., Australia and other countries where the Company does business. In June 2007, the New York Office of the Attorney General served a letter and subpoena on the Company, seeking information and documents relating to the Company's disclosure to investors of risks associated with possible climate change and related legislation and regulations. The Company believes it has made full and proper disclosure of these potential risks. Based on current information, the Company believes that the ultimate resolution of such other pending or threatened proceedings is not reasonably likely to have a material adverse effect on its financial position, results of operations or cash flows. |
Investments (Details 1) (Debt Securities [Member], USD $)
In Millions, unless otherwise specified |
Sep. 30, 2012
|
---|---|
Debt Securities [Member]
|
|
Contractual maturities for available-for-sale maturities | |
Due in one year or less, Cost | $ 4.2 |
Due in one to five years, Cost | 36.1 |
Total Cost | 40.3 |
Due in one year or less, Fair Value | 4.2 |
Due in one to five years, Fair Value | 36.6 |
Total Fair Value | $ 40.8 |
Segment Information (Tables)
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating segment results | Reportable segment results were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Adjusted EBITDA to consolidated income from continuing operations | A reconciliation of Adjusted EBITDA to consolidated income from continuing operations, net of income taxes follows:
|
Segment Information (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Operating segment results | ||||
Revenues | $ 2,058.8 | $ 1,980.6 | $ 6,060.6 | $ 5,666.1 |
Adjusted EBITDA | 459.9 | 508.5 | 1,421.5 | 1,538.4 |
Reconciliation Of Adjusted Ebitda To Consolidated Income From Continuing Operations [Abstract] | ||||
Adjusted EBITDA | 459.9 | 508.5 | 1,421.5 | 1,538.4 |
Depreciation, depletion and amortization | (172.5) | (108.4) | (470.7) | (317.6) |
Amortization of basis difference related to equity affiliates | (0.2) | 0 | 3.0 | 0 |
Asset retirement obligation expenses | 21.1 | 14.6 | 53.3 | 43.3 |
Interest expense | 99.4 | 59.2 | 308.3 | 159.1 |
Interest income | (5.1) | (4.1) | (19.7) | (11.7) |
Income tax provision | 49.3 | 39.2 | 85.5 | 238.8 |
Income from continuing operations, net of income taxes | 122.9 | 291.2 | 520.4 | 791.3 |
Western U.S. Mining [Member]
|
||||
Operating segment results | ||||
Revenues | 783.5 | 758.5 | 2,213.5 | 2,124.5 |
Adjusted EBITDA | 243.9 | 218.7 | 616.3 | 532.2 |
Reconciliation Of Adjusted Ebitda To Consolidated Income From Continuing Operations [Abstract] | ||||
Adjusted EBITDA | 243.9 | 218.7 | 616.3 | 532.2 |
Midwestern U.S. Mining [Member]
|
||||
Operating segment results | ||||
Revenues | 355.7 | 368.5 | 1,050.1 | 1,025.3 |
Adjusted EBITDA | 103.5 | 105.4 | 317.4 | 292.8 |
Reconciliation Of Adjusted Ebitda To Consolidated Income From Continuing Operations [Abstract] | ||||
Adjusted EBITDA | 103.5 | 105.4 | 317.4 | 292.8 |
Australian Mining [Member]
|
||||
Operating segment results | ||||
Revenues | 866.0 | 718.7 | 2,605.0 | 2,155.3 |
Adjusted EBITDA | 221.4 | 246.1 | 757.4 | 852.2 |
Reconciliation Of Adjusted Ebitda To Consolidated Income From Continuing Operations [Abstract] | ||||
Adjusted EBITDA | 221.4 | 246.1 | 757.4 | 852.2 |
Trading and Brokerage [Member]
|
||||
Operating segment results | ||||
Revenues | 45.6 | 131.5 | 173.7 | 329.5 |
Adjusted EBITDA | 35.7 | 57.4 | 109.2 | 134.6 |
Reconciliation Of Adjusted Ebitda To Consolidated Income From Continuing Operations [Abstract] | ||||
Adjusted EBITDA | 35.7 | 57.4 | 109.2 | 134.6 |
Corporate and Other [Member]
|
||||
Operating segment results | ||||
Revenues | 8.0 | 3.4 | 18.3 | 31.5 |
Adjusted EBITDA | (144.6) | (119.1) | (378.8) | (273.4) |
Reconciliation Of Adjusted Ebitda To Consolidated Income From Continuing Operations [Abstract] | ||||
Adjusted EBITDA | $ (144.6) | $ (119.1) | $ (378.8) | $ (273.4) |
Debt (Tables)
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | The Company’s total indebtedness as of September 30, 2012 and December 31, 2011 consisted of the following:
|
Inventories (Details) (USD $)
In Millions, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Inventories | ||
Materials and supplies | $ 157.0 | $ 123.7 |
Raw coal | 162.2 | 108.1 |
Saleable coal | 235.7 | 212.6 |
Total | $ 554.9 | $ 444.4 |
Debt Textuals (Details) (USD $)
In Millions, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Debt Instrument [Line Items] | ||
Capital Lease Obligations | $ 111.6 | $ 122.8 |
Other | 43.9 | 43.4 |
Total Debt | 6,363.1 | 6,657.5 |
Term Loan [Member]
|
||
Debt Instrument [Line Items] | ||
Long-term Debt | 450.0 | 468.8 |
2011 Term Loan Facility [Member]
|
||
Debt Instrument [Line Items] | ||
Long-term Debt | 975.0 | 1,000.0 |
7.375% Senior Notes due November 2016 [Member]
|
||
Debt Instrument [Line Items] | ||
Long-term Debt | 650.0 | 650.0 |
6.00% Senior Notes due November 2018 [Member]
|
||
Debt Instrument [Line Items] | ||
Long-term Debt | 1,518.8 | 1,600.0 |
6.50% Senior Notes due September 2020 [Member]
|
||
Debt Instrument [Line Items] | ||
Long-term Debt | 650.0 | 650.0 |
6.25% Senior Notes due November 2021 [Member]
|
||
Debt Instrument [Line Items] | ||
Long-term Debt | 1,339.6 | 1,500.0 |
7.875% Senior Notes due November 2026 [Member]
|
||
Debt Instrument [Line Items] | ||
Long-term Debt | 247.4 | 247.3 |
Convertible Junior Subordinated Debentures due December 2066 [Member]
|
||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 376.8 | $ 375.2 |
Coal Trading (Details 2) (Credit Concentration Risk [Member], Coal Trading Positions [Member], Coal Trading [Member])
|
Sep. 30, 2012
|
---|---|
External Credit Rating, Investment Grade [Member]
|
|
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 88.00% |
External Credit Rating, Non Investment Grade [Member]
|
|
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 9.00% |
Non Rated [Member]
|
|
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 3.00% |
Discontinued Operations (Details) (Air Quality [Member], USD $)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2012
|
Sep. 30, 2012
|
|
Air Quality [Member]
|
||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Discontinued Operation, Amount of Other Income (Loss) from Disposition of Discontinued Operations, before Income Tax | $ 116.7 | $ 116.7 |
Discontinued Operation, Amount of Other Income (Loss) from Disposition of Discontinued Operation, Net of Tax | 75.0 | 75.0 |
Impairment of Long-Lived Assets to be Disposed of | 108.9 | 108.9 |
Impairment of Long-Lived Assets to be Disposed of (after tax) | $ 68.8 | $ 68.8 |
Unaudited Condensed Consolidated Statement of Comprehensive Income (Parenthetical) (Parentheticals) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Net unrealized losses on available-for-sale securities, tax benefit | $ (3.0) | $ (2.0) | $ (11.2) | $ (2.3) |
Cash flow hedges, tax provision (benefit) | 36.8 | (140.3) | 39.7 | (66.7) |
Postretirement plans and workers' compensation obligations, tax provision | $ 8.1 | $ 6.3 | $ 24.2 | $ 12.8 |
Commitments and Contingencies (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015
|
Dec. 31, 2014
|
Dec. 31, 2013
|
Dec. 31, 2012
|
Sep. 30, 2012
|
Sep. 30, 2012
|
Dec. 31, 2016
|
Dec. 31, 2015
|
Dec. 31, 2014
|
Dec. 31, 2013
|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2020
Minimum [Member]
T
|
Dec. 31, 2019
Minimum [Member]
T
|
Dec. 31, 2018
Minimum [Member]
T
|
Dec. 31, 2017
Minimum [Member]
T
|
Dec. 31, 2016
Minimum [Member]
T
|
Dec. 31, 2015
Minimum [Member]
T
|
Dec. 31, 2020
Maximum [Member]
T
|
Dec. 31, 2019
Maximum [Member]
T
|
Dec. 31, 2018
Maximum [Member]
T
|
Dec. 31, 2017
Maximum [Member]
T
|
Dec. 31, 2016
Maximum [Member]
T
|
Dec. 31, 2015
Maximum [Member]
T
|
|
Long-term Purchase Commitment [Line Items] | ||||||||||||||||||||||||
Annualpaymentsoncoalreserves2012to2016 | $ 247.9 | $ 247.9 | $ 247.9 | $ 247.9 | $ 247.9 | |||||||||||||||||||
Annual Coal Reserve Payments Pursuant To Belle Ayr North Lease | 42.1 | 42.1 | 42.1 | 42.1 | 42.1 | |||||||||||||||||||
Annual Coal Reserve Payments Pursuant To Caballo West Lease | 28.6 | 28.6 | 28.6 | 28.6 | 28.6 | |||||||||||||||||||
Annual true up payments for the excess of the $1.10 bid price versus $0.95 under the transferred lease | $ 3.9 | $ 3.9 | $ 3.9 | $ 3.9 | $ 3.9 | |||||||||||||||||||
Export Capacity Increase From Kinder Morgan | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | 7,000,000 | 7,000,000 | 7,000,000 | 7,000,000 | 7,000,000 | 7,000,000 |