Financing Receivables

The Company had total financing receivables of $412.5 million and $391.7 million at March 31, 2013 and December 31, 2012, respectively, which consisted of the following:



Balance Sheet Classification	March 31, 2013		December 31, 2012
	(Dollars in millions)
Accounts receivable, net	$	1.8	$	0.7
Investments and other assets	410.7		391.0
Total financing receivables	$	412.5	$	391.7

The Company periodically assesses the collectability of accounts and loans receivable by considering factors such as specific evaluation of collectability, historical collection experience, the age of the receivable and other available evidence. Below is a description of the Company's financing receivables at March 31, 2013.

Codrilla Mine Project. In 2011, a wholly owned subsidiary of PEA-PCI, then Macarthur Coal Limited, completed the sale of its 85% interest in the Codrilla Mine Project to participants of the Coppabella Moorvale Joint Venture (CMJV) where PEA-PCI sold down its interest in the Codrilla project to the CMJV (Codrilla sell down) so that, following completion of the sale, ownership of the Codrilla Mine Project reflected the existing ownership of the Coppabella and Moorvale mines with PEA-PCI retaining a 73.3% ownership. Prior to the acquisition of PEA-PCI by the Company, consideration of $15.0 million Australian dollars was received by PEA-PCI upon completion of the Codrilla sell down, representing 20% of the agreed price. Two installments, for which the Company holds non-interest-bearing receivables, are due upon the completion of certain milestones. The first installment, with 40% due on the granting of the related mining lease, was received during the three months ended September 30, 2012. The final 40% is due upon the mine's first coal shipment. There are currently no indications of impairment on the remaining installment and the Company expects to receive full payment upon the mine's first shipment. The remaining balance associated with these receivables is recorded in "Investments and other assets" which was $34.2 million and $33.6 million at March 31, 2013 and December 31, 2012, respectively, in the condensed consolidated balance sheets.

Middlemount Mine. The Company periodically makes loans to the Middlemount Mine joint venture (Middlemount), in which the Company owns a 50% equity interest, pursuant to the related shareholders’ agreement for purposes of funding capital expenditures and working capital requirements. Middlemount intends to pay down the loans as excess cash is generated as required by the shareholders’ agreement. The loans bear interest at a rate equal to the monthly average 30-day Australian Bank Bill Swap Reference Rate plus 3.5% and expire December 24, 2015. Based on the expected timing of repayment on these loans, the Company now considers these loans to be of a long-term nature. As a result, the foreign currency impact related to the shareholder loans for the three month period ended March 31, 2013 is included in foreign currency translation adjustment in the unaudited condensed consolidated balance sheet as of March 31, 2013 and the unaudited condensed consolidated statement of comprehensive income for the three months then ended. "Investments and other assets" included $376.5 million and $357.4 million at March 31, 2013 and December 31, 2012, respectively, related to these loans in the condensed consolidated balance sheets.

Other Financing Receivables. From time to time, the Company may enter into transactions resulting in accounts or notes receivable held by the Company, which have been reflected in "Accounts receivable, net." These notes are generally short term in nature with positive historical collection experience and do not represent a material credit risk to the Company. During the three months ended March 31, 2013, the Company collected all such receivables outstanding as of December 31, 2012.