FORM 10-Q |
þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 30, 2013 |
¨ 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 incorporation or organization) | (I.R.S. Employer Identification No.) |
701 Market Street, St. Louis, Missouri | 63101-1826 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer þ | Accelerated filer ¨ | |||||||
Non-accelerated filer ¨ | Smaller reporting company ¨ | |||||||
(Do not check if a smaller reporting company) |
Page | |
Item 1. Financial Statements. | |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(Dollars in millions, except per share data) | ||||||||||||||||
Revenues | ||||||||||||||||
Sales | $ | 1,588.6 | $ | 1,699.7 | $ | 3,165.8 | $ | 3,484.8 | ||||||||
Other revenues | 136.7 | 281.4 | 307.5 | 517.0 | ||||||||||||
Total revenues | 1,725.3 | 1,981.1 | 3,473.3 | 4,001.8 | ||||||||||||
Costs and expenses | ||||||||||||||||
Operating costs and expenses | 1,437.2 | 1,466.0 | 2,826.6 | 2,887.8 | ||||||||||||
Depreciation, depletion and amortization | 185.7 | 155.3 | 356.4 | 298.2 | ||||||||||||
Asset retirement obligation expenses | 18.3 | 17.2 | 37.3 | 32.2 | ||||||||||||
Selling and administrative expenses | 64.0 | 62.7 | 129.1 | 133.7 | ||||||||||||
Other operating (income) loss: | ||||||||||||||||
Net gain on disposal or exchange of assets | (43.2 | ) | (3.4 | ) | (45.8 | ) | (7.4 | ) | ||||||||
Asset impairment | 21.5 | — | 21.5 | — | ||||||||||||
Loss from equity affiliates | 15.4 | 6.6 | 33.0 | 29.3 | ||||||||||||
Operating profit | 26.4 | 276.7 | 115.2 | 628.0 | ||||||||||||
Interest expense | 110.8 | 106.9 | 212.1 | 208.9 | ||||||||||||
Interest income | (1.1 | ) | (6.5 | ) | (7.0 | ) | (14.6 | ) | ||||||||
(Loss) income from continuing operations before income taxes | (83.3 | ) | 176.3 | (89.9 | ) | 433.7 | ||||||||||
Income tax (benefit) provision | (184.7 | ) | (38.2 | ) | (181.0 | ) | 36.2 | |||||||||
Income from continuing operations, net of income taxes | 101.4 | 214.5 | 91.1 | 397.5 | ||||||||||||
Loss from discontinued operations, net of income taxes | (14.3 | ) | (6.7 | ) | (23.4 | ) | (11.4 | ) | ||||||||
Net income | 87.1 | 207.8 | 67.7 | 386.1 | ||||||||||||
Less: Net (loss) income attributable to noncontrolling interests | (3.2 | ) | 3.1 | 0.8 | 8.7 | |||||||||||
Net income attributable to common stockholders | $ | 90.3 | $ | 204.7 | $ | 66.9 | $ | 377.4 | ||||||||
Income from continuing operations: | ||||||||||||||||
Basic earnings per share | $ | 0.39 | $ | 0.78 | $ | 0.34 | $ | 1.43 | ||||||||
Diluted earnings per share | $ | 0.39 | $ | 0.78 | $ | 0.33 | $ | 1.43 | ||||||||
Net income attributable to common stockholders: | ||||||||||||||||
Basic earnings per share | $ | 0.33 | $ | 0.75 | $ | 0.25 | $ | 1.39 | ||||||||
Diluted earnings per share | $ | 0.33 | $ | 0.75 | $ | 0.25 | $ | 1.39 | ||||||||
Dividends declared per share | $ | 0.085 | $ | 0.085 | $ | 0.170 | $ | 0.170 |
Three Months Ended June 30, | Six months ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(Dollars in millions) | |||||||||||||||
Net income | $ | 87.1 | $ | 207.8 | $ | 67.7 | $ | 386.1 | |||||||
Other comprehensive (loss) income, net of income taxes: | |||||||||||||||
Net change in unrealized holding gains (losses) on available-for-sale securities (net of respective tax provision (benefits) of $3.7 ($1.5), ($0.1) and ($8.2)) | |||||||||||||||
Unrealized holding losses on available-for-sale securities | (7.6 | ) | (2.6 | ) | (13.8 | ) | (14.1 | ) | |||||||
Less: Reclassification for realized losses included in net income | 13.6 | — | 13.5 | — | |||||||||||
Net change in unrealized gains (losses) on available-for-sale securities | 6.0 | (2.6 | ) | (0.3 | ) | (14.1 | ) | ||||||||
Net unrealized (losses) gains on cash flow hedges (net of respective tax (benefits) provision of ($217.1), ($28.5), ($228.0) and $2.9) | |||||||||||||||
(Decrease) increase in fair value of cash flow hedges | (339.0 | ) | 42.7 | (270.3 | ) | 190.5 | |||||||||
Less: Reclassification for realized gains included in net income | (38.3 | ) | (37.3 | ) | (115.4 | ) | (121.5 | ) | |||||||
Net unrealized (losses) gains on cash flow hedges | (377.3 | ) | 5.4 | (385.7 | ) | 69.0 | |||||||||
Amortization of actuarial loss and prior service cost for postretirement plans and workers' compensation obligations (net of respective tax provisions of $8.4, $8.0, $16.7 and $16.1) | 14.2 | 13.8 | 28.4 | 27.7 | |||||||||||
Foreign currency translation adjustment | (74.5 | ) | (6.1 | ) | (73.4 | ) | 6.6 | ||||||||
Other comprehensive (loss) income, net of income taxes | (431.6 | ) | 10.5 | (431.0 | ) | 89.2 | |||||||||
Comprehensive (loss) income | (344.5 | ) | 218.3 | (363.3 | ) | 475.3 | |||||||||
Less: Comprehensive (loss) income attributable to noncontrolling interests | (3.2 | ) | 3.1 | 0.8 | 8.7 | ||||||||||
Comprehensive (loss) income attributable to common stockholders | $ | (341.3 | ) | $ | 215.2 | $ | (364.1 | ) | $ | 466.6 |
(Unaudited) | ||||||||
June 30, 2013 | December 31, 2012 | |||||||
(In millions, except per share data) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 517.9 | $ | 558.8 | ||||
Accounts receivable, net of allowance for doubtful accounts of $3.6 at June 30, 2013 and $13.7 at December 31, 2012 | 732.2 | 737.8 | ||||||
Inventories | 581.6 | 548.4 | ||||||
Assets from coal trading activities, net | 56.6 | 52.4 | ||||||
Deferred income taxes | 39.4 | 56.4 | ||||||
Other current assets | 321.5 | 621.7 | ||||||
Total current assets | 2,249.2 | 2,575.5 | ||||||
Property, plant, equipment and mine development | ||||||||
Land and coal interests | 10,957.5 | 10,947.7 | ||||||
Buildings and improvements | 1,412.4 | 1,321.3 | ||||||
Machinery and equipment | 3,075.8 | 3,162.2 | ||||||
Less: accumulated depreciation, depletion and amortization | (3,953.7 | ) | (3,629.5 | ) | ||||
Property, plant, equipment and mine development, net | 11,492.0 | 11,801.7 | ||||||
Investments and other assets | 1,186.7 | 1,431.8 | ||||||
Total assets | $ | 14,927.9 | $ | 15,809.0 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Current maturities of long-term debt | $ | 26.0 | $ | 47.8 | ||||
Deferred income taxes | 2.0 | — | ||||||
Liabilities from coal trading activities, net | 17.0 | 19.4 | ||||||
Accounts payable and accrued expenses | 1,625.8 | 1,606.9 | ||||||
Total current liabilities | 1,670.8 | 1,674.1 | ||||||
Long-term debt, less current maturities | 5,962.0 | 6,205.1 | ||||||
Deferred income taxes | 152.5 | 577.3 | ||||||
Asset retirement obligations | 713.9 | 687.5 | ||||||
Accrued postretirement benefit costs | 958.4 | 960.7 | ||||||
Other noncurrent liabilities | 919.2 | 765.5 | ||||||
Total liabilities | 10,376.8 | 10,870.2 | ||||||
Stockholders’ equity | ||||||||
Preferred Stock — $0.01 per share par value; 10.0 shares authorized; no shares issued or outstanding as of June 30, 2013 or December 31, 2012 | — | — | ||||||
Perpetual Preferred Stock — 0.8 shares authorized, no shares issued or outstanding as of June 30, 2013 or December 31, 2012 | — | — | ||||||
Series Common Stock — $0.01 per share par value; 40.0 shares authorized, no shares issued or outstanding as of June 30, 2013 or December 31, 2012 | — | — | ||||||
Common Stock — $0.01 per share par value; 800.0 shares authorized, 283.7 shares issued and 269.9 shares outstanding as of June 30, 2013 and 282.3 shares issued and 268.6 shares outstanding as of December 31, 2012 | 2.8 | 2.8 | ||||||
Additional paid-in capital | 2,314.2 | 2,286.3 | ||||||
Retained earnings | 3,087.4 | 3,066.4 | ||||||
Accumulated other comprehensive (loss) income | (420.0 | ) | 11.0 | |||||
Treasury stock, at cost: 13.8 shares as of June 30, 2013 and 13.7 shares as of December 31, 2012 | (464.4 | ) | (461.6 | ) | ||||
Peabody Energy Corporation’s stockholders’ equity | 4,520.0 | 4,904.9 | ||||||
Noncontrolling interests | 31.1 | 33.9 | ||||||
Total stockholders’ equity | 4,551.1 | 4,938.8 | ||||||
Total liabilities and stockholders’ equity | $ | 14,927.9 | $ | 15,809.0 |
Six Months Ended June 30, | ||||||||
2013 | 2012 | |||||||
(Dollars in millions) | ||||||||
Cash Flows From Operating Activities | ||||||||
Net income | $ | 67.7 | $ | 386.1 | ||||
Loss from discontinued operations, net of income taxes | 23.4 | 11.4 | ||||||
Income from continuing operations, net of income taxes | 91.1 | 397.5 | ||||||
Adjustments to reconcile income from continuing operations, net of income taxes to net cash provided by operating activities: | ||||||||
Depreciation, depletion and amortization | 356.4 | 298.2 | ||||||
Noncash interest expense | 11.1 | 11.5 | ||||||
Deferred income taxes | (205.3 | ) | (115.4 | ) | ||||
Share-based compensation | 28.6 | 24.2 | ||||||
Asset impairment | 21.5 | — | ||||||
Net gain on disposal or exchange of assets | (45.8 | ) | (7.4 | ) | ||||
Loss from equity affiliates | 33.0 | 29.3 | ||||||
Changes in current assets and liabilities: | ||||||||
Accounts receivable | (7.8 | ) | 93.5 | |||||
Change in receivable from accounts receivable securitization program | 50.0 | 32.0 | ||||||
Inventories | (33.4 | ) | (142.1 | ) | ||||
Net assets from coal trading activities | 6.0 | 161.4 | ||||||
Other current assets | 13.6 | 24.4 | ||||||
Accounts payable and accrued expenses | (0.7 | ) | (168.0 | ) | ||||
Asset retirement obligations | 26.3 | 25.7 | ||||||
Accrued postretirement benefit costs | 8.8 | 18.5 | ||||||
Pension costs | 25.8 | 24.8 | ||||||
Contributions to pension plans | (0.8 | ) | (0.9 | ) | ||||
Other, net | (12.5 | ) | 18.1 | |||||
Net cash provided by continuing operations | 365.9 | 725.3 | ||||||
Net cash used in discontinued operations | (34.5 | ) | (49.8 | ) | ||||
Net cash provided by operating activities | 331.4 | 675.5 | ||||||
Cash Flows From Investing Activities | ||||||||
Additions to property, plant, equipment and mine development | (166.5 | ) | (426.4 | ) | ||||
Changes in accrued expenses related to capital expenditures | (102.6 | ) | — | |||||
Federal coal lease expenditures | — | (89.2 | ) | |||||
Investment in Prairie State Energy Campus | — | (6.7 | ) | |||||
Proceeds from disposal of assets, net of notes receivable | 123.9 | 12.6 | ||||||
Purchases of debt securities | (9.7 | ) | (24.3 | ) | ||||
Proceeds from sales and maturities of debt securities | 17.0 | 27.6 | ||||||
Proceeds from the maturity of short-term investments | 4.8 | — | ||||||
Contributions to joint ventures | (323.8 | ) | (375.6 | ) | ||||
Distributions from joint ventures | 372.1 | 384.3 | ||||||
Advances to related parties | (35.7 | ) | (627.6 | ) | ||||
Repayment of loans from related parties | 18.2 | 618.7 | ||||||
Other, net | (3.6 | ) | (1.6 | ) | ||||
Net cash used in continuing operations | (105.9 | ) | (508.2 | ) | ||||
Net cash used in discontinued operations | (0.3 | ) | (7.7 | ) | ||||
Net cash used in investing activities | (106.2 | ) | (515.9 | ) | ||||
Cash Flows From Financing Activities | ||||||||
Repayments of long-term debt | (215.6 | ) | (280.0 | ) | ||||
Common stock repurchase | — | (99.9 | ) | |||||
Acquisition of MCG Coal Holdings Pty Ltd noncontrolling interests | — | (49.8 | ) | |||||
Dividends paid | (45.9 | ) | (46.3 | ) | ||||
Repurchase of employee common stock relinquished for tax withholding | (2.8 | ) | (8.0 | ) | ||||
Excess tax benefits related to share-based compensation | — | 3.7 | ||||||
Other, net | (1.8 | ) | 10.8 | |||||
Net cash used in financing activities | (266.1 | ) | (469.5 | ) | ||||
Net change in cash and cash equivalents | (40.9 | ) | (309.9 | ) | ||||
Cash and cash equivalents at beginning of period | 558.8 | 799.1 | ||||||
Cash and cash equivalents at end of period | $ | 517.9 | $ | 489.2 |
Peabody Energy Corporation’s Stockholders’ Equity | |||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Noncontrolling Interests | Total Stockholders’ Equity | |||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||
December 31, 2012 | $ | 2.8 | $ | 2,286.3 | $ | (461.6 | ) | $ | 3,066.4 | $ | 11.0 | $ | 33.9 | $ | 4,938.8 | ||||||||||||
Net income | — | — | — | 66.9 | — | 0.8 | 67.7 | ||||||||||||||||||||
Net change in unrealized holding losses on available-for-sale securities (net of $0.1 tax benefit) | — | — | — | — | (0.3 | ) | — | (0.3 | ) | ||||||||||||||||||
Net unrealized losses on cash flow hedges (net of $228.0 tax benefit) | — | — | — | — | (385.7 | ) | — | (385.7 | ) | ||||||||||||||||||
Postretirement plans and workers’ compensation obligations (net of $16.7 tax provision) | — | — | — | — | 28.4 | — | 28.4 | ||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | (73.4 | ) | — | (73.4 | ) | ||||||||||||||||||
Dividends paid | — | — | — | (45.9 | ) | — | — | (45.9 | ) | ||||||||||||||||||
Share-based compensation | — | 28.6 | — | — | — | 28.6 | |||||||||||||||||||||
Write off of excess tax benefits related to share-based compensation | — | (4.1 | ) | — | — | — | — | (4.1 | ) | ||||||||||||||||||
Employee stock purchases | — | 3.4 | — | — | — | — | 3.4 | ||||||||||||||||||||
Repurchase of employee common stock relinquished for tax withholding | — | — | (2.8 | ) | — | — | — | (2.8 | ) | ||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | (3.6 | ) | (3.6 | ) | ||||||||||||||||||
June 30, 2013 | $ | 2.8 | $ | 2,314.2 | $ | (464.4 | ) | $ | 3,087.4 | $ | (420.0 | ) | $ | 31.1 | $ | 4,551.1 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(Dollars in millions) | ||||||||||||||||
Total revenues | $ | 35.6 | $ | 63.2 | $ | 67.7 | $ | 129.7 | ||||||||
Loss from discontinued operations before income taxes | $ | (16.1 | ) | $ | (9.9 | ) | $ | (32.7 | ) | $ | (19.0 | ) | ||||
Income tax benefit | 1.8 | 3.2 | 9.3 | 7.6 | ||||||||||||
Loss from discontinued operations, net of income taxes | $ | (14.3 | ) | $ | (6.7 | ) | $ | (23.4 | ) | $ | (11.4 | ) |
June 30, 2013 | December 31, 2012 | |||||||
(Dollars in millions) | ||||||||
Assets: | ||||||||
Other current assets | $ | 39.4 | $ | 37.5 | ||||
Investments and other assets | 142.6 | 140.8 | ||||||
Total assets classified as discontinued operations | $ | 182.0 | $ | 178.3 | ||||
Liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 31.8 | $ | 33.3 | ||||
Other noncurrent liabilities | 42.9 | 27.1 | ||||||
Total liabilities classified as discontinued operations | $ | 74.7 | $ | 60.4 |
Available-for-sale securities | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(Dollars in millions) | ||||||||||||||||
Current: | ||||||||||||||||
Federal government securities | $ | 2.9 | $ | — | $ | — | $ | 2.9 | ||||||||
U.S. corporate bonds | 2.0 | — | — | 2.0 | ||||||||||||
Noncurrent: | ||||||||||||||||
Marketable equity securities | 10.9 | — | — | 10.9 | ||||||||||||
Federal government securities | 25.4 | 0.1 | (0.2 | ) | 25.3 | |||||||||||
U.S. corporate bonds | 17.7 | 0.1 | (0.1 | ) | 17.7 | |||||||||||
Total | $ | 58.9 | $ | 0.2 | $ | (0.3 | ) | $ | 58.8 |
Available-for-sale securities | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(Dollars in millions) | ||||||||||||||||
Current: | ||||||||||||||||
U.S. corporate bonds | $ | 4.1 | $ | — | $ | — | $ | 4.1 | ||||||||
Noncurrent: | ||||||||||||||||
Marketable equity securities | 32.4 | — | — | 32.4 | ||||||||||||
Federal government securities | 32.0 | 0.2 | — | 32.2 | ||||||||||||
U.S. corporate bonds | 19.5 | 0.2 | — | 19.7 | ||||||||||||
Total | $ | 88.0 | $ | 0.4 | $ | — | $ | 88.4 |
Contractual maturities for available-for-sale securities | Cost | Fair Value | ||||||
(Dollars in millions) | ||||||||
Due in one year or less | $ | 4.9 | $ | 4.9 | ||||
Due in one to five years | 43.1 | 43.0 | ||||||
Total | $ | 48.0 | $ | 47.9 |
June 30, 2013 | December 31, 2012 | ||||||
(Dollars in millions) | |||||||
Materials and supplies | $ | 168.9 | $ | 157.6 | |||
Raw coal | 114.2 | 164.3 | |||||
Saleable coal | 298.5 | 226.5 | |||||
Total | $ | 581.6 | $ | 548.4 |
Notional Amount by Year of Maturity | |||||||||||||||||||||||
Total | 2013 | 2014 | 2015 | 2016 | 2017 | ||||||||||||||||||
Foreign Currency | |||||||||||||||||||||||
A$:US$ hedge contracts (A$ millions) | $ | 5,608.4 | $ | 992.3 | $ | 1,888.5 | $ | 1,469.1 | $ | 856.5 | $ | 402.0 | |||||||||||
Commodity Contracts | |||||||||||||||||||||||
Diesel fuel hedge contracts (million gallons) | 198.3 | 52.9 | 83.8 | 50.6 | 11.0 | — | |||||||||||||||||
U.S. explosives hedge contracts (million MMBtu) | 2.3 | 1.1 | 1.2 | — | — | — |
Account Classification by | ||||||||||||||||
Cash Flow Hedge | Fair Value Hedge | Economic Hedge | Fair Value of Net Liability | |||||||||||||
(Dollars in millions) | ||||||||||||||||
Foreign Currency | ||||||||||||||||
A$:US$ hedge contracts (A$ millions) | $ | 5,608.4 | $ | — | $ | — | $ | (314.2 | ) | |||||||
Commodity Contracts | ||||||||||||||||
Diesel fuel hedge contracts (million gallons) | 198.3 | — | — | (19.2 | ) | |||||||||||
U.S. explosives hedge contracts (million MMBtu) | 2.3 | — | — | (3.4 | ) |
Three Months Ended June 30, 2013 | ||||||||||||||||||
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) | Gain reclassified from other comprehensive income into income (ineffective portion) | |||||||||||||
(Dollars in millions) | ||||||||||||||||||
Commodity swap contracts | Operating costs and expenses | $ | — | $ | (25.0 | ) | $ | 0.5 | $ | 0.1 | ||||||||
Foreign currency forward contracts | Operating costs and expenses | — | (492.6 | ) | 62.1 | — | ||||||||||||
Total | $ | — | $ | (517.6 | ) | $ | 62.6 | $ | 0.1 | |||||||||
Three Months Ended June 30, 2012 | ||||||||||||||||||
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) | Gain reclassified from other comprehensive income into income (ineffective portion) | |||||||||||||
(Dollars in millions) | ||||||||||||||||||
Commodity swap contracts | Operating costs and expenses | $ | — | $ | (79.0 | ) | $ | 10.5 | $ | 0.1 | ||||||||
Foreign currency forward contracts | Operating costs and expenses | — | (12.0 | ) | 81.6 | — | ||||||||||||
Total | $ | — | $ | (91.0 | ) | $ | 92.1 | $ | 0.1 |
Six Months Ended June 30, 2013 | ||||||||||||||||||
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) | Gain reclassified from other comprehensive income into income (ineffective portion) | |||||||||||||
(Dollars in millions) | ||||||||||||||||||
Commodity swap contracts | Operating costs and expenses | $ | — | $ | (19.1 | ) | $ | 7.2 | $ | 0.3 | ||||||||
Foreign currency forward contracts | Operating costs and expenses | — | (453.9 | ) | 147.2 | — | ||||||||||||
Total | $ | — | $ | (473.0 | ) | $ | 154.4 | $ | 0.3 | |||||||||
Six Months Ended June 30, 2012 | ||||||||||||||||||
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) | Loss reclassified from other comprehensive income into income (ineffective portion) | |||||||||||||
(Dollars in millions) | ||||||||||||||||||
Commodity swap contracts | Operating costs and expenses | $ | — | $ | (20.9 | ) | $ | 27.8 | $ | (4.5 | ) | |||||||
Foreign currency forward contracts | Operating costs and expenses | — | 128.3 | 194.6 | — | |||||||||||||
Total | $ | — | $ | 107.4 | $ | 222.4 | $ | (4.5 | ) |
Fair Value of Assets as of June 30, 2013 | ||||||||||||||||||||
Financial Instrument | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Condensed Consolidated Balance Sheet | Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheet | Derivatives Not Offset in the Condensed Consolidated Balance Sheet(1) | Net Amount | |||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Commodity swap contracts | $ | 3.0 | $ | (2.7 | ) | $ | 0.3 | n.a. | n.a. | |||||||||||
Foreign currency forward contracts | 43.6 | (43.6 | ) | — | n.a. | n.a. | ||||||||||||||
Total | $ | 46.6 | $ | (46.3 | ) | $ | 0.3 | $ | (0.3 | ) | $ | — | ||||||||
Noncurrent Assets: | ||||||||||||||||||||
Commodity swap contracts | $ | 0.6 | $ | (0.5 | ) | $ | 0.1 | n.a. | n.a. | |||||||||||
Foreign currency forward contracts | — | — | — | n.a. | n.a. | |||||||||||||||
Total | $ | 0.6 | $ | (0.5 | ) | $ | 0.1 | $ | (0.1 | ) | $ | — |
(1) | Adjustments relate to the further netting of derivative contracts with a common counterparty across the Company's foreign currency, diesel fuel and explosives hedging strategy derivative contract portfolios that would be contractually enforceable in the event of default. |
Fair Value of Liabilities as of June 30, 2013 | ||||||||||||||||||||
Financial Instrument | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Condensed Consolidated Balance Sheet | Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheet | Derivatives Not Offset in the Condensed Consolidated Balance Sheet(1) | Net Amount | |||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Commodity swap contracts | $ | 16.1 | $ | (2.7 | ) | $ | 13.4 | n.a. | n.a. | |||||||||||
Foreign currency forward contracts | 119.6 | (34.6 | ) | 85.0 | n.a. | n.a. | ||||||||||||||
Total | $ | 135.7 | $ | (37.3 | ) | $ | 98.4 | $ | (2.3 | ) | $ | 96.1 | ||||||||
Noncurrent Liabilities: | ||||||||||||||||||||
Commodity swap contracts | $ | 10.1 | $ | (0.5 | ) | $ | 9.6 | n.a. | n.a. | |||||||||||
Foreign currency forward contracts | 238.2 | (9.0 | ) | 229.2 | n.a. | n.a. | ||||||||||||||
Total | $ | 248.3 | $ | (9.5 | ) | $ | 238.8 | $ | 1.9 | $ | 240.7 |
(1) | Adjustments relate to the further netting of derivative contracts with a common counterparty across the Company's foreign currency, diesel fuel and explosives hedging strategy derivative contract portfolios that would be contractually enforceable in the event of default. |
Fair Value of Assets as of December 31, 2012 | ||||||||||||||||||||
Financial Instrument | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Condensed Consolidated Balance Sheet | Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheet | Derivatives Not Offset in the Condensed Consolidated Balance Sheet(1) | Net Amount | |||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Commodity swap contracts | $ | 18.3 | $ | (3.8 | ) | $ | 14.5 | n.a. | n.a. | |||||||||||
Foreign currency forward contracts | 260.1 | — | 260.1 | n.a. | n.a. | |||||||||||||||
Total | $ | 278.4 | $ | (3.8 | ) | $ | 274.6 | $ | (8.0 | ) | $ | 266.6 | ||||||||
Noncurrent Assets: | ||||||||||||||||||||
Commodity swap contracts | $ | 2.5 | $ | (1.4 | ) | $ | 1.1 | n.a. | n.a. | |||||||||||
Foreign currency forward contracts | 27.6 | (0.8 | ) | 26.8 | n.a. | n.a. | ||||||||||||||
Total | $ | 30.1 | $ | (2.2 | ) | $ | 27.9 | $ | (3.4 | ) | $ | 24.5 |
(1) | Adjustments relate to the further netting of derivative contracts with a common counterparty across the Company's foreign currency, diesel fuel and explosives hedging strategy derivative contract portfolios that would be contractually enforceable in the event of default. |
Fair Value of Liabilities as of December 31, 2012 | ||||||||||||||||||||
Financial Instrument | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Condensed Consolidated Balance Sheet | Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheet | Derivatives Not Offset in the Condensed Consolidated Balance Sheet(1) | Net Amount | |||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Commodity swap contracts | $ | 8.5 | $ | (2.8 | ) | $ | 5.7 | n.a. | n.a. | |||||||||||
Foreign currency forward contracts | — | — | — | n.a. | n.a. | |||||||||||||||
Total | $ | 8.5 | $ | (2.8 | ) | $ | 5.7 | $ | (5.7 | ) | $ | — | ||||||||
Noncurrent Liabilities: | ||||||||||||||||||||
Commodity swap contracts | $ | 8.3 | $ | (2.4 | ) | $ | 5.9 | n.a. | n.a. | |||||||||||
Foreign currency forward contracts | 0.8 | (0.8 | ) | — | n.a. | n.a. | ||||||||||||||
Total | $ | 9.1 | $ | (3.2 | ) | $ | 5.9 | $ | (5.7 | ) | $ | 0.2 |
(1) | Adjustments relate to the further netting of derivative contracts with a common counterparty across the Company's foreign currency, diesel fuel and explosives hedging strategy derivative contract portfolios that would be contractually enforceable in the event of default. |
June 30, 2013 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(Dollars in millions) | |||||||||||||||
Investments in debt and equity securities | $ | 47.3 | $ | 11.5 | $ | — | $ | 58.8 | |||||||
Commodity swap contracts | — | (22.6 | ) | — | (22.6 | ) | |||||||||
Foreign currency forward contracts | — | (314.2 | ) | — | (314.2 | ) | |||||||||
Total net financial assets (liabilities) | $ | 47.3 | $ | (325.3 | ) | $ | — | $ | (278.0 | ) |
December 31, 2012 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(Dollars in millions) | |||||||||||||||
Investments in debt and equity securities | $ | 75.4 | $ | 13.0 | $ | — | $ | 88.4 | |||||||
Commodity swap contracts | — | 4.0 | — | 4.0 | |||||||||||
Foreign currency forward contracts | — | 286.9 | — | 286.9 | |||||||||||
Total net financial assets | $ | 75.4 | $ | 303.9 | $ | — | $ | 379.3 |
• | Investments in debt and equity securities: corporate bonds and U.S. government treasury instruments and marketable equity securities are valued based on quoted prices in active markets (Level 1) and U.S. government agency securities are valued based on derived prices in active markets (Level 2). |
• | 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, notes receivable and accounts payable have carrying values which approximate fair value due to the short maturity or the liquid nature of these instruments. |
• | Held-to-maturity investments in time deposits denominated in Chinese Renminbi of $4.8 million held as of December 31, 2012 had carrying values based on amortized cost which approximated fair value due to the short maturity of the investments. Those time deposits matured during the six months ended June 30, 2013. |
• | 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. |
June 30, 2013 | December 31, 2012 | ||||||||||||||
Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||
(Dollars in millions) | |||||||||||||||
Long-term debt | $ | 5,988.0 | $ | 5,903.4 | $ | 6,252.9 | $ | 6,583.9 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
Trading Revenues by Type of Instrument | 2013 | 2012 | 2013 | 2012 | ||||||||||||
(Dollars in millions) | ||||||||||||||||
Commodity futures, swaps and options | $ | 34.9 | $ | 39.8 | $ | 85.9 | $ | 50.6 | ||||||||
Physical commodity purchase/sale contracts | (38.3 | ) | 32.8 | (63.4 | ) | 41.9 | ||||||||||
Total trading revenues | $ | (3.4 | ) | $ | 72.6 | $ | 22.5 | $ | 92.5 |
Affected line item in the condensed consolidated balance sheets | Gross Amounts of Recognized Assets (Liabilities) | Gross Amounts Offset in the Condensed Consolidated Balance Sheets | Variation margin (held) posted (1) | Net Amounts of Assets (Liabilities) Presented in the Condensed Consolidated Balance Sheets | ||||||||||||
(Dollars in millions) | ||||||||||||||||
Fair Value as of June 30, 2013 | ||||||||||||||||
Assets from coal trading activities, net | $ | 693.8 | $ | (507.8 | ) | $ | (129.4 | ) | $ | 56.6 | ||||||
Liabilities from coal trading activities, net | (528.0 | ) | 507.8 | 3.2 | (17.0 | ) | ||||||||||
Total, Net | $ | 165.8 | $ | — | $ | (126.2 | ) | $ | 39.6 | |||||||
Fair Value as of December 31, 2012 | ||||||||||||||||
Assets from coal trading activities, net | $ | 380.4 | $ | (170.8 | ) | $ | (157.2 | ) | $ | 52.4 | ||||||
Liabilities from coal trading activities, net | (190.5 | ) | 170.8 | 0.3 | (19.4 | ) | ||||||||||
Total, Net | $ | 189.9 | $ | — | $ | (156.9 | ) | $ | 33.0 |
(1) | Approximately $88 million and $76 million of the net variation margin held at June 30, 2013 and December 31, 2012, respectively, related to cash flow hedges. |
June 30, 2013 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(Dollars in millions) | |||||||||||||||
Commodity futures, swaps and options | $ | — | $ | 40.3 | $ | — | $ | 40.3 | |||||||
Physical commodity purchase/sale contracts | — | (2.0 | ) | 1.3 | (0.7 | ) | |||||||||
Total net financial assets | $ | — | $ | 38.3 | $ | 1.3 | $ | 39.6 |
December 31, 2012 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(Dollars in millions) | |||||||||||||||
Commodity futures, swaps and options | $ | 1.2 | $ | 24.4 | $ | — | $ | 25.6 | |||||||
Physical commodity purchase/sale contracts | — | 2.2 | 5.2 | 7.4 | |||||||||||
Total net financial assets | $ | 1.2 | $ | 26.6 | $ | 5.2 | $ | 33.0 |
• | Commodity futures, 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 | ||||||||
Input | Low | High | Average | ||||||
Quality adjustments | 4 | % | 22 | % | 13 | % | |||
Non-performance adjustments | 4 | % | 4 | % | 4 | % |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(Dollars in millions) | ||||||||||||||||
Beginning of period | $ | 1.4 | $ | 8.9 | $ | 5.2 | $ | 8.7 | ||||||||
Total net (losses) gains realized/unrealized: | ||||||||||||||||
Included in earnings | (0.3 | ) | 8.9 | (4.4 | ) | 10.4 | ||||||||||
Settlements | 0.2 | (14.9 | ) | 0.5 | (16.2 | ) | ||||||||||
End of period | $ | 1.3 | $ | 2.9 | $ | 1.3 | $ | 2.9 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(Dollars in millions) | ||||||||||||||||
Changes in net unrealized losses (1) | $ | (2.8 | ) | $ | (3.9 | ) | $ | (2.6 | ) | $ | (2.7 | ) |
(1) | Within the unaudited condensed consolidated statements of operations 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. |
Percentage of | |||
Year of Expiration | Portfolio Total | ||
2013 | 45 | % | |
2014 | 52 | % | |
2015 | 2 | % | |
2016 | 1 | % | |
100 | % |
Balance Sheet Classification | June 30, 2013 | December 31, 2012 | ||||||
(Dollars in millions) | ||||||||
Accounts receivable, net | $ | 36.8 | $ | 0.7 | ||||
Investments and other assets | 363.8 | 391.0 | ||||||
Total financing receivables | $ | 400.6 | $ | 391.7 |
June 30, 2013 | December 31, 2012 | ||||||
(Dollars in millions) | |||||||
Term Loan | $ | 301.8 | $ | 418.8 | |||
2011 Term Loan Facility | 862.5 | 912.5 | |||||
7.375% Senior Notes due November 2016 | 650.0 | 650.0 | |||||
6.00% Senior Notes due November 2018 | 1,518.8 | 1,518.8 | |||||
6.50% Senior Notes due September 2020 | 650.0 | 650.0 | |||||
6.25% Senior Notes due November 2021 | 1,339.6 | 1,339.6 | |||||
7.875% Senior Notes due November 2026 | 247.4 | 247.4 | |||||
Convertible Junior Subordinated Debentures due December 2066 | 378.5 | 377.4 | |||||
Capital lease obligations | 38.3 | 104.6 | |||||
Other | 1.1 | 33.8 | |||||
Total Debt | $ | 5,988.0 | $ | 6,252.9 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(Dollars in millions) | ||||||||||||||||
Service cost for benefits earned | $ | 0.5 | $ | 0.5 | $ | 1.1 | $ | 1.0 | ||||||||
Interest cost on projected benefit obligation | 10.5 | 11.7 | 21.1 | 23.4 | ||||||||||||
Expected return on plan assets | (14.8 | ) | (16.0 | ) | (29.7 | ) | (31.9 | ) | ||||||||
Amortization of prior service cost and actuarial loss | 16.7 | 12.4 | 33.3 | 24.8 | ||||||||||||
Net periodic pension costs | $ | 12.9 | $ | 8.6 | $ | 25.8 | $ | 17.3 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(Dollars in millions) | ||||||||||||||||
Service cost for benefits earned | $ | 3.9 | $ | 3.7 | $ | 7.8 | $ | 7.3 | ||||||||
Interest cost on accumulated postretirement benefit obligation | 10.4 | 13.8 | 20.9 | 27.5 | ||||||||||||
Amortization of prior service cost, actuarial loss and other | 7.1 | 8.6 | 12.7 | 17.4 | ||||||||||||
Net periodic postretirement benefit costs | $ | 21.4 | $ | 26.1 | $ | 41.4 | $ | 52.2 |
Foreign Currency Translation Adjustment | Net Actuarial Loss Associated with Postretirement Plans and Workers’ Compensation Obligations | Prior Service Cost Associated with Postretirement Plans | Cash Flow Hedges | Available-For-Sale Securities | Total Accumulated Other Comprehensive (Loss) Income | ||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
December 31, 2012 | $ | 22.2 | $ | (411.7 | ) | $ | 12.7 | $ | 387.5 | $ | 0.3 | $ | 11.0 | ||||||||||
Net change in fair value | — | — | — | (270.3 | ) | (13.8 | ) | (284.1 | ) | ||||||||||||||
Reclassification from other comprehensive income to earnings | — | 28.6 | (0.2 | ) | (115.4 | ) | 13.5 | (73.5 | ) | ||||||||||||||
Current period change | (73.4 | ) | — | — | — | — | (73.4 | ) | |||||||||||||||
June 30, 2013 | $ | (51.2 | ) | $ | (383.1 | ) | $ | 12.5 | $ | 1.8 | $ | — | $ | (420.0 | ) |
Three Months Ended June 30, 2013 | Six Months Ended June 30, 2013 | |||||||||
Details about accumulated other comprehensive income (loss) components | Amount reclassifed from accumulated other comprehensive (loss) income (1) | Affected line item in the condensed consolidated statement of operations | ||||||||
(Dollars in millions) | ||||||||||
Net actuarial loss associated with postretirement plans and workers compensation obligations: | ||||||||||
Postretirement health care and life insurance benefits | $ | (6.0 | ) | $ | (12.0 | ) | Operating costs and expenses | |||
Defined benefit pension plans | (13.6 | ) | (27.2 | ) | Operating costs and expenses | |||||
Defined benefit pension plans | (2.8 | ) | (5.6 | ) | Selling and administrative expenses | |||||
Insignificant items | (0.3 | ) | (0.6 | ) | ||||||
(22.7 | ) | (45.4 | ) | Total before income taxes | ||||||
8.4 | 16.8 | Income tax benefit | ||||||||
$ | (14.3 | ) | $ | (28.6 | ) | Total after income taxes | ||||
Prior service cost associated with postretirement plans: | ||||||||||
Postretirement health care and life insurance benefits | $ | 0.4 | $ | 0.8 | Operating costs and expenses | |||||
Defined benefit pension plans | (0.3 | ) | (0.5 | ) | Operating costs and expenses | |||||
0.1 | 0.3 | Total before income taxes | ||||||||
— | (0.1 | ) | Income tax provision | |||||||
$ | 0.1 | $ | 0.2 | Total after income taxes | ||||||
Cash flow hedges: | ||||||||||
Foreign currency cash flow hedge contracts | $ | 62.1 | 147.2 | Operating costs and expenses | ||||||
Fuel and explosives commodity swaps | 0.1 | 7.0 | Operating costs and expenses | |||||||
Coal trading commodity futures, swaps and options | 0.4 | 25.7 | Other revenues | |||||||
Insignificant items | 0.3 | 0.2 | ||||||||
62.9 | 180.1 | Total before income taxes | ||||||||
(24.6 | ) | (64.7 | ) | Income tax provision | ||||||
$ | 38.3 | $ | 115.4 | Total after income taxes | ||||||
Available-for-sale securities: | ||||||||||
Debt securities | $ | — | $ | 0.1 | Interest income | |||||
Equity securities | (21.5 | ) | (21.5 | ) | Asset impairment | |||||
(21.5 | ) | (21.4 | ) | Total before income taxes | ||||||
7.9 | 7.9 | Income tax benefit | ||||||||
$ | (13.6 | ) | $ | (13.5 | ) | Total after income taxes |
(1) | Presented as gains (losses) in the unaudited condensed consolidated statements of operations. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(Dollars in millions) | ||||||||||||||||
EPS numerator: | ||||||||||||||||
Income from continuing operations, net of income taxes | $ | 101.4 | $ | 214.5 | $ | 91.1 | $ | 397.5 | ||||||||
Less: Net (loss) income attributable to noncontrolling interests | (3.2 | ) | 3.1 | 0.8 | 8.7 | |||||||||||
Income from continuing operations attributable to common stockholders, before allocation of earnings to participating securities | 104.6 | 211.4 | 90.3 | 388.8 | ||||||||||||
Less: Earnings from continuing operations allocated to participating securities | 0.7 | 1.5 | 0.2 | 2.6 | ||||||||||||
Income from continuing operations attributable to common stockholders, after allocation of earnings to participating securities (1) | 103.9 | 209.9 | 90.1 | 386.2 | ||||||||||||
Loss from discontinued operations, net of income taxes | (14.3 | ) | (6.7 | ) | (23.4 | ) | (11.4 | ) | ||||||||
Less: Loss from discontinued operations allocated to participating securities (1) | (0.1 | ) | — | (0.2 | ) | — | ||||||||||
Loss from discontinued operations attributable to common stockholders, after allocation of earnings to participating securities | (14.2 | ) | (6.7 | ) | (23.2 | ) | (11.4 | ) | ||||||||
Net income attributable to common stockholders, after allocation of earnings to participating securities (1) | $ | 89.7 | $ | 203.2 | $ | 66.9 | $ | 374.8 | ||||||||
EPS denominator: | ||||||||||||||||
Weighted average shares outstanding — basic | 266.9 | 269.2 | 266.9 | 269.7 | ||||||||||||
Impact of dilutive securities | 0.6 | 0.6 | 0.5 | 0.5 | ||||||||||||
Weighted average shares outstanding — diluted | 267.5 | 269.8 | 267.4 | 270.2 | ||||||||||||
Basic EPS attributable to common stockholders: | ||||||||||||||||
Income from continuing operations | $ | 0.39 | $ | 0.78 | $ | 0.34 | $ | 1.43 | ||||||||
Loss from discontinued operations | (0.06 | ) | (0.03 | ) | (0.09 | ) | (0.04 | ) | ||||||||
Net income | $ | 0.33 | $ | 0.75 | $ | 0.25 | $ | 1.39 | ||||||||
Diluted EPS attributable to common stockholders: | ||||||||||||||||
Income from continuing operations | $ | 0.39 | $ | 0.78 | $ | 0.33 | $ | 1.43 | ||||||||
Loss from discontinued operations | (0.06 | ) | (0.03 | ) | (0.08 | ) | (0.04 | ) | ||||||||
Net income | $ | 0.33 | $ | 0.75 | $ | 0.25 | $ | 1.39 |
(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 | $ | 1,242.5 | $ | — | $ | — | $ | — | $ | 1,242.5 | |||||||||
Surety bonds | 318.6 | 109.8 | 34.2 | 9.0 | 471.6 | ||||||||||||||
Bank guarantees | 249.1 | — | — | 144.0 | 393.1 | ||||||||||||||
Letters of credit | — | — | 32.3 | 79.7 | 112.0 | ||||||||||||||
$ | 1,810.2 | $ | 109.8 | $ | 66.5 | $ | 232.7 | $ | 2,219.2 |
(1) | Other includes the $79.7 million in letters of credit described below and an additional $153.0 million in bank guarantees and surety bonds related to collateral for surety companies, road maintenance, performance guarantees and other operations. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(Dollars in millions) | ||||||||||||||||
Revenues: | ||||||||||||||||
Australian Mining | $ | 744.8 | $ | 884.9 | $ | 1,482.8 | $ | 1,739.0 | ||||||||
Western U.S. Mining | 640.9 | 669.0 | 1,281.0 | 1,430.0 | ||||||||||||
Midwestern U.S. Mining | 330.0 | 346.9 | 666.7 | 694.6 | ||||||||||||
Trading and Brokerage | (3.4 | ) | 75.6 | 22.5 | 128.1 | |||||||||||
Corporate and Other | 13.0 | 4.7 | 20.3 | 10.1 | ||||||||||||
Total | $ | 1,725.3 | $ | 1,981.1 | $ | 3,473.3 | $ | 4,001.8 | ||||||||
Adjusted EBITDA: | ||||||||||||||||
Australian Mining | $ | 112.5 | $ | 240.4 | $ | 212.9 | $ | 536.0 | ||||||||
Western U.S. Mining | 154.9 | 165.4 | 315.4 | 372.4 | ||||||||||||
Midwestern U.S. Mining | 106.8 | 104.7 | 219.1 | 213.9 | ||||||||||||
Trading and Brokerage | (41.0 | ) | 45.4 | (25.0 | ) | 73.5 | ||||||||||
Corporate and Other | (78.9 | ) | (105.8 | ) | (188.0 | ) | (234.2 | ) | ||||||||
Total | $ | 254.3 | $ | 450.1 | $ | 534.4 | $ | 961.6 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(Dollars in millions) | ||||||||||||||||
Total Adjusted EBITDA | $ | 254.3 | $ | 450.1 | $ | 534.4 | $ | 961.6 | ||||||||
Depreciation, depletion and amortization | 185.7 | 155.3 | 356.4 | 298.2 | ||||||||||||
Asset impairment | 21.5 | — | 21.5 | — | ||||||||||||
Amortization of basis difference related to equity affiliates | 2.4 | 0.9 | 4.0 | 3.2 | ||||||||||||
Asset retirement obligation expenses | 18.3 | 17.2 | 37.3 | 32.2 | ||||||||||||
Interest expense | 110.8 | 106.9 | 212.1 | 208.9 | ||||||||||||
Interest income | (1.1 | ) | (6.5 | ) | (7.0 | ) | (14.6 | ) | ||||||||
Income tax (benefit) provision | (184.7 | ) | (38.2 | ) | (181.0 | ) | 36.2 | |||||||||
Income from continuing operations, net of income taxes | $ | 101.4 | $ | 214.5 | $ | 91.1 | $ | 397.5 |
Three Months Ended June 30, 2013 | |||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Total revenues | $ | — | $ | 972.5 | $ | 818.8 | $ | (66.0 | ) | $ | 1,725.3 | ||||||||
Costs and expenses | |||||||||||||||||||
Operating costs and expenses | (62.8 | ) | 823.0 | 743.0 | (66.0 | ) | 1,437.2 | ||||||||||||
Depreciation, depletion and amortization | — | 85.5 | 100.2 | — | 185.7 | ||||||||||||||
Asset retirement obligation expenses | — | 10.2 | 8.1 | — | 18.3 | ||||||||||||||
Selling and administrative expenses | 14.6 | 44.3 | 5.1 | — | 64.0 | ||||||||||||||
Other operating (income) loss: | |||||||||||||||||||
Net gain on disposal or exchange of assets | — | (43.0 | ) | (0.2 | ) | — | (43.2 | ) | |||||||||||
Asset impairment | 21.5 | — | — | — | 21.5 | ||||||||||||||
(Income) loss from equity affiliates and investment in subsidiaries | (174.4 | ) | 4.5 | 10.9 | 174.4 | 15.4 | |||||||||||||
Interest expense | 101.3 | 8.7 | 95.4 | (94.6 | ) | 110.8 | |||||||||||||
Interest income | (0.1 | ) | (90.5 | ) | (5.1 | ) | 94.6 | (1.1 | ) | ||||||||||
Unrealized loss (gain) on derivatives | — | 502.6 | (502.6 | ) | — | — | |||||||||||||
Income (loss) from continuing operations before income taxes | 99.9 | (372.8 | ) | 364.0 | (174.4 | ) | (83.3 | ) | |||||||||||
Income tax provision (benefit) | 5.8 | (193.1 | ) | 2.6 | — | (184.7 | ) | ||||||||||||
Income (loss) from continuing operations, net of income taxes | 94.1 | (179.7 | ) | 361.4 | (174.4 | ) | 101.4 | ||||||||||||
Loss from discontinued operations, net of income taxes | (3.8 | ) | (1.0 | ) | (9.5 | ) | — | (14.3 | ) | ||||||||||
Net income (loss) | 90.3 | (180.7 | ) | 351.9 | (174.4 | ) | 87.1 | ||||||||||||
Less: Net loss attributable to noncontrolling interests | — | — | (3.2 | ) | — | (3.2 | ) | ||||||||||||
Net income (loss) attributable to common stockholders | $ | 90.3 | $ | (180.7 | ) | $ | 355.1 | $ | (174.4 | ) | $ | 90.3 |
Three Months Ended June 30, 2013 | |||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Net income (loss) | $ | 90.3 | $ | (180.7 | ) | $ | 351.9 | $ | (174.4 | ) | $ | 87.1 | |||||||
Other comprehensive (loss) income, net of income taxes | (431.6 | ) | 51.0 | (49.9 | ) | (1.1 | ) | (431.6 | ) | ||||||||||
Comprehensive (loss) income | (341.3 | ) | (129.7 | ) | 302.0 | (175.5 | ) | (344.5 | ) | ||||||||||
Less: Comprehensive loss attributable to noncontrolling interests | — | — | (3.2 | ) | — | (3.2 | ) | ||||||||||||
Comprehensive (loss) income attributable to common stockholders | $ | (341.3 | ) | $ | (129.7 | ) | $ | 305.2 | $ | (175.5 | ) | $ | (341.3 | ) |
Three Months Ended June 30, 2012 | |||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Total revenues | $ | — | $ | 1,071.0 | $ | 997.5 | $ | (87.4 | ) | $ | 1,981.1 | ||||||||
Costs and expenses | |||||||||||||||||||
Operating costs and expenses | (93.2 | ) | 828.5 | 818.1 | (87.4 | ) | 1,466.0 | ||||||||||||
Depreciation, depletion and amortization | — | 74.5 | 80.8 | — | 155.3 | ||||||||||||||
Asset retirement obligation expenses | — | 12.2 | 5.0 | — | 17.2 | ||||||||||||||
Selling and administrative expenses | 10.8 | 48.1 | 3.8 | — | 62.7 | ||||||||||||||
Other operating (income) loss: | |||||||||||||||||||
Net gain on disposal or exchange of assets | — | (3.0 | ) | (0.4 | ) | — | (3.4 | ) | |||||||||||
(Income) loss from equity affiliates and investment in subsidiaries | (174.5 | ) | 1.9 | 4.7 | 174.5 | 6.6 | |||||||||||||
Interest expense | 106.9 | 1.8 | 110.9 | (112.7 | ) | 106.9 | |||||||||||||
Interest income | (73.6 | ) | (30.9 | ) | (14.7 | ) | 112.7 | (6.5 | ) | ||||||||||
Unrealized loss (gain) on derivatives | — | 101.9 | (101.9 | ) | — | — | |||||||||||||
Income from continuing operations before income taxes | 223.6 | 36.0 | 91.2 | (174.5 | ) | 176.3 | |||||||||||||
Income tax provision (benefit) | 18.5 | 52.2 | (108.9 | ) | — | (38.2 | ) | ||||||||||||
Income (loss) from continuing operations, net of income taxes | 205.1 | (16.2 | ) | 200.1 | (174.5 | ) | 214.5 | ||||||||||||
Loss from discontinued operations, net of income taxes | (0.4 | ) | (1.2 | ) | (5.1 | ) | — | (6.7 | ) | ||||||||||
Net income (loss) | 204.7 | (17.4 | ) | 195.0 | (174.5 | ) | 207.8 | ||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 3.1 | — | 3.1 | ||||||||||||||
Net income (loss) attributable to common stockholders | $ | 204.7 | $ | (17.4 | ) | $ | 191.9 | $ | (174.5 | ) | $ | 204.7 |
Three Months Ended June 30, 2012 | |||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Net income (loss) | $ | 204.7 | $ | (17.4 | ) | $ | 195 | $ | (174.5 | ) | $ | 207.8 | |||||||
Other comprehensive income (loss), net of income taxes | 10.5 | (5.2 | ) | 135.2 | (130.0 | ) | 10.5 | ||||||||||||
Comprehensive income (loss) | 215.2 | (22.6 | ) | 330.2 | (304.5 | ) | 218.3 | ||||||||||||
Less: Comprehensive income attributable to noncontrolling interests | — | — | 3.1 | — | 3.1 | ||||||||||||||
Comprehensive income (loss) attributable to common stockholders | $ | 215.2 | $ | (22.6 | ) | $ | 327.1 | $ | (304.5 | ) | $ | 215.2 |
Six Months Ended June 30, 2013 | |||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Total revenues | $ | — | $ | 1,987.1 | $ | 1,615.0 | $ | (128.8 | ) | $ | 3,473.3 | ||||||||
Costs and expenses | |||||||||||||||||||
Operating costs and expenses | (154.5 | ) | 1,523.9 | 1,586.0 | (128.8 | ) | 2,826.6 | ||||||||||||
Depreciation, depletion and amortization | — | 165.1 | 191.3 | — | 356.4 | ||||||||||||||
Asset retirement obligation expenses | — | 21.8 | 15.5 | — | 37.3 | ||||||||||||||
Selling and administrative expenses | 23.8 | 91.7 | 13.6 | — | 129.1 | ||||||||||||||
Other operating (income) loss: | |||||||||||||||||||
Net gain on disposal or exchange of assets | — | (45.8 | ) | — | — | (45.8 | ) | ||||||||||||
Asset impairment | 21.5 | — | — | — | 21.5 | ||||||||||||||
(Income) loss from equity affiliates and investment in subsidiaries | (89.6 | ) | 8.4 | 24.6 | 89.6 | 33.0 | |||||||||||||
Interest expense | 203.2 | 11.0 | 205.9 | (208.0 | ) | 212.1 | |||||||||||||
Interest income | (68.2 | ) | (125.4 | ) | (21.4 | ) | 208.0 | (7.0 | ) | ||||||||||
Unrealized loss (gain) on derivatives | — | 461.6 | (461.6 | ) | — | — | |||||||||||||
Income (loss) from continuing operations before income taxes | 63.8 | (125.2 | ) | 61.1 | (89.6 | ) | (89.9 | ) | |||||||||||
Income tax benefit | (9.5 | ) | (85.2 | ) | (86.3 | ) | — | (181.0 | ) | ||||||||||
Income (loss) from continuing operations, net of income taxes | 73.3 | (40.0 | ) | 147.4 | (89.6 | ) | 91.1 | ||||||||||||
Loss from discontinued operations, net of income taxes | (6.4 | ) | (2.5 | ) | (14.5 | ) | — | (23.4 | ) | ||||||||||
Net income (loss) | 66.9 | (42.5 | ) | 132.9 | (89.6 | ) | 67.7 | ||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 0.8 | — | 0.8 | ||||||||||||||
Net income (loss) attributable to common stockholders | $ | 66.9 | $ | (42.5 | ) | $ | 132.1 | $ | (89.6 | ) | $ | 66.9 |
Six Months Ended June 30, 2013 | |||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Net income (loss) | $ | 66.9 | $ | (42.5 | ) | $ | 132.9 | $ | (89.6 | ) | $ | 67.7 | |||||||
Other comprehensive (loss) income, net of income taxes | (431.0 | ) | 28.5 | (64.1 | ) | 35.6 | (431.0 | ) | |||||||||||
Comprehensive (loss) income | (364.1 | ) | (14.0 | ) | 68.8 | (54.0 | ) | (363.3 | ) | ||||||||||
Less: Comprehensive income attributable to noncontrolling interests | — | — | 0.8 | — | 0.8 | ||||||||||||||
Comprehensive (loss) income attributable to common stockholders | $ | (364.1 | ) | $ | (14.0 | ) | $ | 68.0 | $ | (54.0 | ) | $ | (364.1 | ) |
Six Months Ended June 30, 2012 | |||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Total revenues | $ | — | $ | 2,202.3 | $ | 1,916.1 | $ | (116.6 | ) | $ | 4,001.8 | ||||||||
Costs and expenses | |||||||||||||||||||
Operating costs and expenses | (217.6 | ) | 1,664.1 | 1,557.9 | (116.6 | ) | 2,887.8 | ||||||||||||
Depreciation, depletion and amortization | — | 147.2 | 151.0 | — | 298.2 | ||||||||||||||
Asset retirement obligation expenses | — | 22.9 | 9.3 | — | 32.2 | ||||||||||||||
Selling and administrative expenses | 20.9 | 100.0 | 12.8 | — | 133.7 | ||||||||||||||
Other operating (income) loss: | |||||||||||||||||||
Net gain on disposal or exchange of assets | — | (4.9 | ) | (2.5 | ) | — | (7.4 | ) | |||||||||||
(Income) loss from equity affiliates and investment in subsidiaries | (290.9 | ) | 3.8 | 25.5 | 290.9 | 29.3 | |||||||||||||
Interest expense | 210.3 | 7.1 | 225.9 | (234.4 | ) | 208.9 | |||||||||||||
Interest income | (151.4 | ) | (65.8 | ) | (31.8 | ) | 234.4 | (14.6 | ) | ||||||||||
Unrealized loss (gain) on derivatives | — | 42.7 | (42.7 | ) | — | — | |||||||||||||
Income from continuing operations before income taxes | 428.7 | 285.2 | 10.7 | (290.9 | ) | 433.7 | |||||||||||||
Income tax provision (benefit) | 50.9 | 53.6 | (68.3 | ) | — | 36.2 | |||||||||||||
Income from continuing operations, net of income taxes | 377.8 | 231.6 | 79.0 | (290.9 | ) | 397.5 | |||||||||||||
Loss from discontinued operations, net of income taxes | (0.4 | ) | (2.1 | ) | (8.9 | ) | — | (11.4 | ) | ||||||||||
Net income | 377.4 | 229.5 | 70.1 | (290.9 | ) | 386.1 | |||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 8.7 | — | 8.7 | ||||||||||||||
Net income attributable to common stockholders | $ | 377.4 | $ | 229.5 | $ | 61.4 | $ | (290.9 | ) | $ | 377.4 |
Six Months Ended June 30, 2012 | |||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Net income | $ | 377.4 | $ | 229.5 | $ | 70.1 | $ | (290.9 | ) | $ | 386.1 | ||||||||
Other comprehensive income, net of income taxes | 89.2 | 27.4 | 148.8 | (176.2 | ) | 89.2 | |||||||||||||
Comprehensive income | 466.6 | 256.9 | 218.9 | (467.1 | ) | 475.3 | |||||||||||||
Less: Comprehensive income attributable to noncontrolling interests | — | — | 8.7 | — | 8.7 | ||||||||||||||
Comprehensive income attributable to common stockholders | $ | 466.6 | $ | 256.9 | $ | 210.2 | $ | (467.1 | ) | $ | 466.6 |
June 30, 2013 | |||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Reclassifications/ Eliminations | Consolidated | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Assets | |||||||||||||||||||
Current assets | |||||||||||||||||||
Cash and cash equivalents | $ | 333.8 | $ | 0.2 | $ | 183.9 | $ | — | $ | 517.9 | |||||||||
Accounts receivable, net | 1.3 | 73.7 | 657.2 | — | 732.2 | ||||||||||||||
Inventories | — | 260.1 | 321.5 | — | 581.6 | ||||||||||||||
Assets from coal trading activities, net | — | 95.0 | — | (38.4 | ) | 56.6 | |||||||||||||
Deferred income taxes | — | 35.5 | 7.1 | (3.2 | ) | 39.4 | |||||||||||||
Other current assets | 2.8 | 43.6 | 275.1 | — | 321.5 | ||||||||||||||
Total current assets | 337.9 | 508.1 | 1,444.8 | (41.6 | ) | 2,249.2 | |||||||||||||
Property, plant, equipment and mine development, net | — | 4,981.3 | 6,510.7 | — | 11,492.0 | ||||||||||||||
Deferred income taxes | 184.8 | — | — | (184.8 | ) | — | |||||||||||||
Investments and other assets | 11,716.1 | 7.4 | 1,326.9 | (11,863.7 | ) | 1,186.7 | |||||||||||||
Total assets | $ | 12,238.8 | $ | 5,496.8 | $ | 9,282.4 | $ | (12,090.1 | ) | $ | 14,927.9 | ||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||
Current liabilities | |||||||||||||||||||
Current maturities of long-term debt | $ | — | $ | 0.1 | $ | 25.9 | $ | — | $ | 26.0 | |||||||||
Payables to (receivables from) affiliates, net | 294.0 | (593.9 | ) | 299.9 | — | — | |||||||||||||
Deferred income taxes | 3.2 | — | 2.0 | (3.2 | ) | 2.0 | |||||||||||||
Liabilities from coal trading activities, net | — | 4.3 | 51.1 | (38.4 | ) | 17.0 | |||||||||||||
Accounts payable and accrued expenses | 152.9 | 663.4 | 809.5 | — | 1,625.8 | ||||||||||||||
Total current liabilities | 450.1 | 73.9 | 1,188.4 | (41.6 | ) | 1,670.8 | |||||||||||||
Long-term debt, less current maturities | 5,948.7 | 6.5 | 6.8 | — | 5,962.0 | ||||||||||||||
Deferred income taxes | — | 106.2 | 231.1 | (184.8 | ) | 152.5 | |||||||||||||
Notes payable to (receivable from) affiliates, net | 1,032.6 | (6,176.0 | ) | 5,143.4 | — | — | |||||||||||||
Other noncurrent liabilities | 287.4 | 1,887.1 | 417.0 | — | 2,591.5 | ||||||||||||||
Total liabilities | 7,718.8 | (4,102.3 | ) | 6,986.7 | (226.4 | ) | 10,376.8 | ||||||||||||
Peabody Energy Corporation’s stockholders’ equity | 4,520.0 | 9,599.1 | 2,264.6 | (11,863.7 | ) | 4,520.0 | |||||||||||||
Noncontrolling interests | — | — | 31.1 | — | 31.1 | ||||||||||||||
Total stockholders’ equity | 4,520.0 | 9,599.1 | 2,295.7 | (11,863.7 | ) | 4,551.1 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 12,238.8 | $ | 5,496.8 | $ | 9,282.4 | $ | (12,090.1 | ) | $ | 14,927.9 |
December 31, 2012 | |||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Reclassifications/ Eliminations | Consolidated | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Assets | |||||||||||||||||||
Current assets | |||||||||||||||||||
Cash and cash equivalents | $ | 269.6 | $ | 0.3 | $ | 288.9 | $ | — | $ | 558.8 | |||||||||
Accounts receivable, net | 3.6 | 5.0 | 729.2 | — | 737.8 | ||||||||||||||
Inventories | — | 271.4 | 277.0 | — | 548.4 | ||||||||||||||
Assets from coal trading activities, net | — | 87.5 | — | (35.1 | ) | 52.4 | |||||||||||||
Deferred income taxes | — | 57.3 | 2.3 | (3.2 | ) | 56.4 | |||||||||||||
Other current assets | 275.0 | — | 354.6 | (7.9 | ) | 621.7 | |||||||||||||
Total current assets | 548.2 | 421.5 | 1,652.0 | (46.2 | ) | 2,575.5 | |||||||||||||
Property, plant, equipment and mine development, net | — | 5,120.8 | 6,680.9 | — | 11,801.7 | ||||||||||||||
Investments and other assets | 9,524.7 | — | 1,037.0 | (9,129.9 | ) | 1,431.8 | |||||||||||||
Total assets | $ | 10,072.9 | $ | 5,542.3 | $ | 9,369.9 | $ | (9,176.1 | ) | $ | 15,809.0 | ||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||
Current liabilities | |||||||||||||||||||
Current maturities of long-term debt | $ | — | $ | — | $ | 47.8 | $ | — | $ | 47.8 | |||||||||
Payables to (receivables from) affiliates, net | 2,309.3 | (2,904.4 | ) | 595.1 | — | — | |||||||||||||
Deferred income taxes | 3.2 | — | — | (3.2 | ) | — | |||||||||||||
Liabilities from coal trading activities, net | — | 4.0 | 50.5 | (35.1 | ) | 19.4 | |||||||||||||
Accounts payable and accrued expenses | 63.3 | 595.0 | 956.5 | (7.9 | ) | 1,606.9 | |||||||||||||
Total current liabilities | 2,375.8 | (2,305.4 | ) | 1,649.9 | (46.2 | ) | 1,674.1 | ||||||||||||
Long-term debt, less current maturities | 6,114.5 | 6.6 | 84.0 | — | 6,205.1 | ||||||||||||||
Deferred income taxes | 43.2 | 142.0 | 392.1 | — | 577.3 | ||||||||||||||
Notes (receivable from) payable to affiliates, net | (3,421.3 | ) | (1,100.4 | ) | 4,521.7 | — | — | ||||||||||||
Other noncurrent liabilities | 55.8 | 1,893.9 | 464.0 | — | 2,413.7 | ||||||||||||||
Total liabilities | 5,168.0 | (1,363.3 | ) | 7,111.7 | (46.2 | ) | 10,870.2 | ||||||||||||
Peabody Energy Corporation’s stockholders’ equity | 4,904.9 | 6,905.6 | 2,224.3 | (9,129.9 | ) | 4,904.9 | |||||||||||||
Noncontrolling interests | — | — | 33.9 | — | 33.9 | ||||||||||||||
Total stockholders’ equity | 4,904.9 | 6,905.6 | 2,258.2 | (9,129.9 | ) | 4,938.8 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 10,072.9 | $ | 5,542.3 | $ | 9,369.9 | $ | (9,176.1 | ) | $ | 15,809.0 |
Six Months Ended June 30, 2013 | |||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidated | ||||||||||||
(Dollars in millions) | |||||||||||||||
Cash Flows From Operating Activities | |||||||||||||||
Net cash provided by (used in) continuing operations | $ | 114.5 | $ | 496.5 | $ | (245.1 | ) | $ | 365.9 | ||||||
Net cash (used in) provided by discontinued operations | (8.1 | ) | 0.5 | (26.9 | ) | (34.5 | ) | ||||||||
Net cash provided by (used in) operating activities | 106.4 | 497.0 | (272.0 | ) | 331.4 | ||||||||||
Cash Flows From Investing Activities | |||||||||||||||
Additions to property, plant, equipment and mine development | — | (45.1 | ) | (121.4 | ) | (166.5 | ) | ||||||||
Changes in accrued expenses related to capital expenditures | — | (2.4 | ) | (100.2 | ) | (102.6 | ) | ||||||||
Proceeds from disposal of assets, net of notes receivable | — | 42.1 | 81.8 | 123.9 | |||||||||||
Purchases of debt securities | — | — | (9.7 | ) | (9.7 | ) | |||||||||
Proceeds from sales and maturities of debt and equity securities | — | — | 17.0 | 17.0 | |||||||||||
Proceeds from the maturity of short-term investments | — | — | 4.8 | 4.8 | |||||||||||
Contributions to joint ventures | — | — | (323.8 | ) | (323.8 | ) | |||||||||
Distributions from joint ventures | — | — | 372.1 | 372.1 | |||||||||||
Advances to related parties | — | — | (35.7 | ) | (35.7 | ) | |||||||||
Repayments of loans from related parties | — | — | 18.2 | 18.2 | |||||||||||
Other, net | — | (3.4 | ) | (0.2 | ) | (3.6 | ) | ||||||||
Net cash used in continuing operations | — | (8.8 | ) | (97.1 | ) | (105.9 | ) | ||||||||
Net cash used in discontinued operations | — | — | (0.3 | ) | (0.3 | ) | |||||||||
Net cash used in investing activities | — | (8.8 | ) | (97.4 | ) | (106.2 | ) | ||||||||
Cash Flows From Financing Activities | |||||||||||||||
Repayments of long-term debt | (167.0 | ) | (0.1 | ) | (48.5 | ) | (215.6 | ) | |||||||
Dividends paid | (45.9 | ) | — | — | (45.9 | ) | |||||||||
Repurchase of employee common stock relinquished for tax withholding | (2.8 | ) | — | — | (2.8 | ) | |||||||||
Other, net | 3.7 | (5.2 | ) | (0.3 | ) | (1.8 | ) | ||||||||
Transactions with affiliates, net | 169.8 | (483.0 | ) | 313.2 | — | ||||||||||
Net cash (used in) provided by financing activities | (42.2 | ) | (488.3 | ) | 264.4 | (266.1 | ) | ||||||||
Net change in cash and cash equivalents | 64.2 | (0.1 | ) | (105.0 | ) | (40.9 | ) | ||||||||
Cash and cash equivalents at beginning of period | 269.6 | 0.3 | 288.9 | 558.8 | |||||||||||
Cash and cash equivalents at end of period | $ | 333.8 | $ | 0.2 | $ | 183.9 | $ | 517.9 |
Six Months Ended June 30, 2012 | |||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidated | ||||||||||||
(Dollars in millions) | |||||||||||||||
Cash Flows From Operating Activities | |||||||||||||||
Net cash provided by continuing operations | $ | 194.6 | $ | 181.8 | $ | 348.9 | $ | 725.3 | |||||||
Net cash (used in) provided by discontinued operations | (1.0 | ) | 5.3 | (54.1 | ) | (49.8 | ) | ||||||||
Net cash provided by operating activities | 193.6 | 187.1 | 294.8 | 675.5 | |||||||||||
Cash Flows From Investing Activities | |||||||||||||||
Additions to property, plant, equipment and mine development | — | (118.8 | ) | (307.6 | ) | (426.4 | ) | ||||||||
Federal coal lease expenditures | — | (89.2 | ) | — | (89.2 | ) | |||||||||
Investment in Prairie State Energy Campus | — | (6.7 | ) | — | (6.7 | ) | |||||||||
Proceeds from disposal of assets | — | 12.6 | — | 12.6 | |||||||||||
Purchases of debt securities | — | — | (24.3 | ) | (24.3 | ) | |||||||||
Proceeds from sales and maturities of debt securities | — | — | 27.6 | 27.6 | |||||||||||
Contributions to joint ventures | — | — | (375.6 | ) | (375.6 | ) | |||||||||
Distributions from joint ventures | — | — | 384.3 | 384.3 | |||||||||||
Advances to related parties | — | — | (627.6 | ) | (627.6 | ) | |||||||||
Repayment of loans from related parties | — | — | 618.7 | 618.7 | |||||||||||
Other, net | — | (1.6 | ) | — | (1.6 | ) | |||||||||
Net cash used in continuing operations | — | (203.7 | ) | (304.5 | ) | (508.2 | ) | ||||||||
Net cash used in discontinued operations | — | (1.2 | ) | (6.5 | ) | (7.7 | ) | ||||||||
Net cash used in investing activities | — | (204.9 | ) | (311.0 | ) | (515.9 | ) | ||||||||
Cash Flows From Financing Activities | |||||||||||||||
Repayments of long-term debt | (266.5 | ) | — | (13.5 | ) | (280.0 | ) | ||||||||
Common stock repurchase | (99.9 | ) | — | — | (99.9 | ) | |||||||||
Acquisition of MCG Coal Holdings Pty Ltd noncontrolling interests | — | (49.8 | ) | — | (49.8 | ) | |||||||||
Dividends paid | (46.3 | ) | — | — | (46.3 | ) | |||||||||
Repurchase of employee common stock relinquished for tax withholding | (8.0 | ) | — | — | (8.0 | ) | |||||||||
Excess tax benefits related to share-based compensation | 3.7 | — | — | 3.7 | |||||||||||
Other, net | 4.6 | 10.8 | (4.6 | ) | 10.8 | ||||||||||
Transactions with affiliates, net | 21.7 | 215.5 | (237.2 | ) | — | ||||||||||
Net cash (used in) provided by financing activities | (390.7 | ) | 176.5 | (255.3 | ) | (469.5 | ) | ||||||||
Net change in cash and cash equivalents | (197.1 | ) | 158.7 | (271.5 | ) | (309.9 | ) | ||||||||
Cash and cash equivalents at beginning of period | 283.2 | 0.8 | 515.1 | 799.1 | |||||||||||
Cash and cash equivalents at end of period | $ | 86.1 | $ | 159.5 | $ | 243.6 | $ | 489.2 |
• | 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, site access 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; |
• | impact of take-or-pay arrangements for rail and port commitments for the delivery of coal; |
• | 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, changes in income tax regulations, sales-related royalties or other regulatory taxes and changes in derivatives laws and regulations; |
• | litigation, including claims not yet asserted; |
• | terrorist attacks or security threats; |
• | impacts of pandemic illnesses; and |
• | other factors, including those discussed in Part II, Item 1. "Legal Proceedings." |
Three Months Ended | Increase (Decrease) | Six Months Ended | Increase (Decrease) | ||||||||||||||||||||
June 30, | to Volumes | June 30, | to Volumes | ||||||||||||||||||||
2013 | 2012 | Tons | % | 2013 | 2012 | Tons | % | ||||||||||||||||
(Tons in millions) | (Tons in millions) | ||||||||||||||||||||||
Australian Mining | 8.6 | 8.2 | 0.4 | 4.9 | % | 16.9 | 14.8 | 2.1 | 14.2 | % | |||||||||||||
Western U.S. Mining | 37.6 | 37.0 | 0.6 | 1.6 | % | 75.2 | 80.4 | (5.2 | ) | (6.5 | )% | ||||||||||||
Midwestern U.S. Mining | 6.5 | 6.8 | (0.3 | ) | (4.4 | )% | 13.0 | 13.5 | (0.5 | ) | (3.7 | )% | |||||||||||
Trading and Brokerage | 8.1 | 5.2 | 2.9 | 55.8 | % | 12.9 | 9.9 | 3.0 | 30.3 | % | |||||||||||||
Total tons sold | 60.8 | 57.2 | 3.6 | 6.3 | % | 118.0 | 118.6 | (0.6 | ) | (0.5 | )% |
Three Months Ended | Increase (Decrease) | Six Months Ended | Increase (Decrease) | ||||||||||||||||||||||||||
June 30, | to Revenues | June 30, | to Revenues | ||||||||||||||||||||||||||
2013 | 2012 | $ | % | 2013 | 2012 | $ | % | ||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | ||||||||||||||||||||||||||||
Australian Mining | $ | 744.8 | $ | 884.9 | $ | (140.1 | ) | (15.8 | )% | $ | 1,482.8 | $ | 1,739.0 | $ | (256.2 | ) | (14.7 | )% | |||||||||||
Western U.S. Mining | 640.9 | 669.0 | (28.1 | ) | (4.2 | )% | 1,281.0 | 1,430.0 | (149.0 | ) | (10.4 | )% | |||||||||||||||||
Midwestern U.S. Mining | 330.0 | 346.9 | (16.9 | ) | (4.9 | )% | 666.7 | 694.6 | (27.9 | ) | (4.0 | )% | |||||||||||||||||
Trading and Brokerage | (3.4 | ) | 75.6 | (79.0 | ) | (104.5 | )% | 22.5 | 128.1 | (105.6 | ) | (82.4 | )% | ||||||||||||||||
Corporate and Other | 13.0 | 4.7 | 8.3 | 176.6 | % | 20.3 | 10.1 | 10.2 | 101.0 | % | |||||||||||||||||||
Total revenues | $ | 1,725.3 | $ | 1,981.1 | $ | (255.8 | ) | (12.9 | )% | $ | 3,473.3 | $ | 4,001.8 | $ | (528.5 | ) | (13.2 | )% |
Increase (Decrease) | Increase (Decrease) | ||||||||||||||||||||||||||||
Three Months Ended | to Segment Adjusted EBITDA | Six Months Ended | to Segment Adjusted EBITDA | ||||||||||||||||||||||||||
2013 | 2012 | $ | % | 2013 | 2012 | $ | % | ||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | ||||||||||||||||||||||||||||
Australian Mining | $ | 112.5 | $ | 240.4 | $ | (127.9 | ) | (53.2 | )% | $ | 212.9 | $ | 536.0 | $ | (323.1 | ) | (60.3 | )% | |||||||||||
Western U.S. Mining | 154.9 | 165.4 | (10.5 | ) | (6.3 | )% | 315.4 | 372.4 | (57.0 | ) | (15.3 | )% | |||||||||||||||||
Midwestern U.S. Mining | 106.8 | 104.7 | 2.1 | 2.0 | % | 219.1 | 213.9 | 5.2 | 2.4 | % | |||||||||||||||||||
Trading and Brokerage | (41.0 | ) | 45.4 | (86.4 | ) | (190.3 | )% | (25.0 | ) | 73.5 | (98.5 | ) | (134.0 | )% | |||||||||||||||
Segment Adjusted EBITDA | $ | 333.2 | $ | 555.9 | $ | (222.7 | ) | (40.1 | )% | $ | 722.4 | $ | 1,195.8 | $ | (473.4 | ) | (39.6 | )% |
Three Months Ended | Increase (Decrease) | Six Months Ended | Increase (Decrease) | ||||||||||||||||||||||||||
June 30, | to Income | June 30, | to Income | ||||||||||||||||||||||||||
2013 | 2012 | $ | % | 2013 | 2012 | $ | % | ||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | ||||||||||||||||||||||||||||
Segment Adjusted EBITDA | $ | 333.2 | $ | 555.9 | $ | (222.7 | ) | (40.1 | )% | $ | 722.4 | $ | 1,195.8 | $ | (473.4 | ) | (39.6 | )% | |||||||||||
Corporate and Other Adjusted EBITDA (1) | (78.9 | ) | (105.8 | ) | 26.9 | 25.4 | % | (188.0 | ) | (234.2 | ) | 46.2 | 19.7 | % | |||||||||||||||
Depreciation, depletion and amortization | (185.7 | ) | (155.3 | ) | (30.4 | ) | (19.6 | )% | (356.4 | ) | (298.2 | ) | (58.2 | ) | (19.5 | )% | |||||||||||||
Asset retirement obligation expenses | (18.3 | ) | (17.2 | ) | (1.1 | ) | (6.4 | )% | (37.3 | ) | (32.2 | ) | (5.1 | ) | (15.8 | )% | |||||||||||||
Asset impairment | (21.5 | ) | — | (21.5 | ) | n.a. | (21.5 | ) | — | (21.5 | ) | n.a. | |||||||||||||||||
Amortization of basis difference related to equity affiliates | (2.4 | ) | (0.9 | ) | (1.5 | ) | (166.7 | )% | (4.0 | ) | (3.2 | ) | (0.8 | ) | (25.0 | )% | |||||||||||||
Interest expense | (110.8 | ) | (106.9 | ) | (3.9 | ) | (3.6 | )% | (212.1 | ) | (208.9 | ) | (3.2 | ) | (1.5 | )% | |||||||||||||
Interest income | 1.1 | 6.5 | (5.4 | ) | (83.1 | )% | 7.0 | 14.6 | (7.6 | ) | (52.1 | )% | |||||||||||||||||
(Loss) income from continuing operations before income taxes | $ | (83.3 | ) | $ | 176.3 | $ | (259.6 | ) | (147.2 | )% | $ | (89.9 | ) | $ | 433.7 | $ | (523.6 | ) | (120.7 | )% |
(1) | Corporate and Other Adjusted EBITDA includes selling and administrative expenses, equity income (losses) from our joint ventures, gains (losses) on certain asset sales, costs associated with past mining activities, certain coal royalty expenses, resource management costs and revenues and expenses related to our other commercial activities, such as generation development and Btu Conversion. |
Three Months Ended | Increase (Decrease) | Six Months Ended | Increase (Decrease) | ||||||||||||||||||||||||||
June 30, | to Income | June 30, | to Income | ||||||||||||||||||||||||||
2013 | 2012 | $ | % | 2013 | 2012 | $ | % | ||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | ||||||||||||||||||||||||||||
Australian Mining | $ | (99.1 | ) | $ | (79.9 | ) | $ | (19.2 | ) | (24.0 | )% | $ | (189.0 | ) | $ | (149.1 | ) | $ | (39.9 | ) | (26.8 | )% | |||||||
Western U.S. Mining | (57.9 | ) | (49.0 | ) | (8.9 | ) | (18.2 | )% | (109.0 | ) | (98.9 | ) | (10.1 | ) | (10.2 | )% | |||||||||||||
Midwestern U.S. Mining | (19.9 | ) | (20.1 | ) | 0.2 | 1.0 | % | (41.5 | ) | (38.6 | ) | (2.9 | ) | (7.5 | )% | ||||||||||||||
Trading and Brokerage | (0.2 | ) | (0.2 | ) | — | — | % | (0.3 | ) | (0.3 | ) | — | — | % | |||||||||||||||
Corporate and Other | (8.6 | ) | (6.1 | ) | (2.5 | ) | (41.0 | )% | (16.6 | ) | (11.3 | ) | (5.3 | ) | (46.9 | )% | |||||||||||||
Total | $ | (185.7 | ) | $ | (155.3 | ) | $ | (30.4 | ) | (19.6 | )% | $ | (356.4 | ) | $ | (298.2 | ) | $ | (58.2 | ) | (19.5 | )% |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Australian Mining | $ | 5.29 | $ | 6.38 | $ | 5.31 | $ | 5.64 | |||||||
Western U.S. Mining | 0.94 | 0.68 | 0.85 | 0.65 | |||||||||||
Midwestern U.S. Mining | 0.39 | 0.38 | 0.41 | 0.36 |
Three Months Ended | Increase (Decrease) | Six Months Ended | Increase (Decrease) | ||||||||||||||||||||||||||
June 30, | to Income | June 30, | to Income | ||||||||||||||||||||||||||
2013 | 2012 | $ | % | 2013 | 2012 | $ | % | ||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | ||||||||||||||||||||||||||||
(Loss) income from continuing operations before income taxes | $ | (83.3 | ) | $ | 176.3 | $ | (259.6 | ) | (147.2 | )% | $ | (89.9 | ) | $ | 433.7 | $ | (523.6 | ) | (120.7 | )% | |||||||||
Income tax (benefit) provision | (184.7 | ) | (38.2 | ) | 146.5 | 383.5 | % | (181.0 | ) | 36.2 | 217.2 | 600.0 | % | ||||||||||||||||
Income from continuing operations, net of income taxes | $ | 101.4 | $ | 214.5 | $ | (113.1 | ) | (52.7 | )% | $ | 91.1 | $ | 397.5 | $ | (306.4 | ) | (77.1 | )% |
Three Months Ended | Increase (Decrease) | Six Months Ended | Increase (Decrease) | ||||||||||||||||||||||||||
June 30, | to Income | June 30, | to Income | ||||||||||||||||||||||||||
2013 | 2012 | $ | % | 2013 | 2012 | $ | % | ||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | ||||||||||||||||||||||||||||
Income from continuing operations, net of income taxes | $ | 101.4 | $ | 214.5 | $ | (113.1 | ) | (52.7 | )% | $ | 91.1 | $ | 397.5 | $ | (306.4 | ) | (77.1 | )% | |||||||||||
Asset impairment | 21.5 | — | 21.5 | n.a. | 21.5 | — | 21.5 | n.a. | |||||||||||||||||||||
Remeasurement benefit related to foreign income tax accounts | (37.1 | ) | (13.8 | ) | (23.3 | ) | 168.8 | % | (35.5 | ) | (4.9 | ) | (30.6 | ) | 624.5 | % | |||||||||||||
Adjusted Income from Continuing Operations | $ | 85.8 | $ | 200.7 | $ | (114.9 | ) | (57.2 | )% | $ | 77.1 | $ | 392.6 | $ | (315.5 | ) | (80.4 | )% |
Three Months Ended | Increase (Decrease) | Six Months Ended | Increase (Decrease) | ||||||||||||||||||||||||||
June 30, | to Income | June 30, | to Income | ||||||||||||||||||||||||||
2013 | 2012 | $ | % | 2013 | 2012 | $ | % | ||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | ||||||||||||||||||||||||||||
Income from continuing operations, net of income taxes | $ | 101.4 | $ | 214.5 | $ | (113.1 | ) | (52.7 | )% | $ | 91.1 | $ | 397.5 | $ | (306.4 | ) | (77.1 | )% | |||||||||||
Loss from discontinued operations, net of income taxes | (14.3 | ) | (6.7 | ) | (7.6 | ) | (113.4 | )% | (23.4 | ) | (11.4 | ) | (12.0 | ) | (105.3 | )% | |||||||||||||
Net income | 87.1 | 207.8 | (120.7 | ) | (58.1 | )% | 67.7 | 386.1 | (318.4 | ) | (82.5 | )% | |||||||||||||||||
Less: Net (loss) income attributable to noncontrolling interests | (3.2 | ) | 3.1 | 6.3 | 203.2 | % | 0.8 | 8.7 | 7.9 | 90.8 | % | ||||||||||||||||||
Net income attributable to common stockholders | $ | 90.3 | $ | 204.7 | $ | (114.4 | ) | (55.9 | )% | $ | 66.9 | $ | 377.4 | $ | (310.5 | ) | (82.3 | )% |
Three Months Ended | Increase (Decrease) | Six Months Ended | Increase (Decrease) | ||||||||||||||||||||||||||
June 30, | to EPS | June 30, | to EPS | ||||||||||||||||||||||||||
2013 | 2012 | $ | % | 2013 | 2012 | $ | % | ||||||||||||||||||||||
Diluted EPS attributable to common stockholders: | |||||||||||||||||||||||||||||
Income from continuing operations | $ | 0.39 | $ | 0.78 | $ | (0.39 | ) | (50.0 | )% | $ | 0.33 | $ | 1.43 | $ | (1.10 | ) | (76.9 | )% | |||||||||||
Loss from discontinued operations | (0.06 | ) | (0.03 | ) | (0.03 | ) | (100.0 | )% | (0.08 | ) | (0.04 | ) | (0.04 | ) | (100.0 | )% | |||||||||||||
Net income | $ | 0.33 | $ | 0.75 | $ | (0.42 | ) | (56.0 | )% | $ | 0.25 | $ | 1.39 | $ | (1.14 | ) | (82.0 | )% |
Three Months Ended | Increase (Decrease) | Six Months Ended | Increase (Decrease) | ||||||||||||||||||||||||||
June 30, | to EPS | June 30, | to EPS | ||||||||||||||||||||||||||
2013 | 2012 | $ | % | 2013 | 2012 | $ | % | ||||||||||||||||||||||
Adjusted Diluted EPS Reconciliation: | |||||||||||||||||||||||||||||
Income from continuing operations | $ | 0.39 | $ | 0.78 | $ | (0.39 | ) | (50.0 | )% | $ | 0.33 | $ | 1.43 | $ | (1.10 | ) | (76.9 | )% | |||||||||||
Asset impairment | 0.08 | — | 0.08 | n.a. | 0.08 | — | 0.08 | n.a. | |||||||||||||||||||||
Remeasurement benefit related to foreign income tax accounts | (0.14 | ) | (0.05 | ) | (0.09 | ) | 180.0 | % | (0.13 | ) | (0.02 | ) | (0.11 | ) | 550.0 | % | |||||||||||||
Adjusted Diluted EPS | $ | 0.33 | $ | 0.73 | $ | (0.40 | ) | (54.8 | )% | $ | 0.28 | $ | 1.41 | $ | (1.13 | ) | (80.1 | )% |
GDP Growth (%) | ||||||
Region: | 2013 | 2014 | ||||
U.S. | 1.7 | % | 2.7 | % | ||
China | 7.8 | % | 7.7 | % | ||
India | 5.6 | % | 6.3 | % | ||
Worldwide | 3.1 | % | 3.8 | % |
June 30, 2013 | December 31, 2012 | ||||||
(Dollars in millions) | |||||||
Term Loan | $ | 301.8 | $ | 418.8 | |||
2011 Term Loan Facility | 862.5 | 912.5 | |||||
7.375% Senior Notes due November 2016 | 650.0 | 650.0 | |||||
6.00% Senior Notes due November 2018 | 1,518.8 | 1,518.8 | |||||
6.50% Senior Notes due September 2020 | 650.0 | 650.0 | |||||
6.25% Senior Notes due November 2021 | 1,339.6 | 1,339.6 | |||||
7.875% Senior Notes due November 2026 | 247.4 | 247.4 | |||||
Convertible Junior Subordinated Debentures due December 2066 | 378.5 | 377.4 | |||||
Capital lease obligations | 38.3 | 104.6 | |||||
Other | 1.1 | 33.8 | |||||
Total Debt | $ | 5,988.0 | $ | 6,252.9 |
Six Months Ended | Increase (Decrease) | |||||||||||||
June 30, | to Cash and Cash Equivalents | |||||||||||||
2013 | 2012 | $ | % | |||||||||||
(Dollars in millions) | ||||||||||||||
Net cash provided by operating activities | $ | 331.4 | $ | 675.5 | $ | (344.1 | ) | (50.9 | )% | |||||
Net cash used in investing activities | (106.2 | ) | (515.9 | ) | 409.7 | 79.4 | % | |||||||
Net cash used in financing activities | (266.1 | ) | (469.5 | ) | 203.4 | 43.3 | % | |||||||
Net change in cash and cash equivalents | (40.9 | ) | (309.9 | ) | 269.0 | 86.8 | % | |||||||
Cash and cash equivalents at beginning of period | 558.8 | 799.1 | (240.3 | ) | (30.1 | )% | ||||||||
Cash and cash equivalents at end of period | $ | 517.9 | $ | 489.2 | $ | 28.7 | 5.9 | % |
• | Lower results from operations largely driven by lower pricing; |
• | Decrease in margin cash flows associated with our trading and brokerage activities ($191.0 million); and |
• | The timing of cash receipts from customer receivables ($83.3 million, net of change in receivable from accounts receivable securitization program); partially offset by |
• | The timing of disbursements associated with our accounts payable and certain accrued liabilities ($167.3 million, net of advance tax deposit with ATO as a condition to proceed with litigation on the disputed tax assessment); |
• | Lower comparative inventory builds as we seek to control our inventory levels in response to market demand ($108.7 million); and |
• | Lower cash spending associated with our discontinued operations ($15.3 million). |
• | Lower current year capital spending as we seek to carefully control the deployment of capital amid a challenged global coal market environment ($164.0 million, net of changes in accrued expenses related to capital expenditures); |
• | Greater proceeds from the disposal of assets driven by cash received in connection with current year sale-leaseback transactions for capital equipment in Australia and current year cash received on sale of non-strategic U.S. coal reserves and surface lands ($111.3 million); and |
• | Federal coal lease expenditures in the prior year associated with our Western U.S. Mining operations ($89.2 million). |
• | Prior year common stock repurchases ($99.9 million); |
• | Lower repayments of long-term debt ($64.4 million), mainly due to current year voluntary prepayments of $199.4 million in aggregate principal amount of our Term Loan, 2011 Term Loan Facility and Australian private placement bonds discussed above compared to prior year voluntary prepayments of $241.6 million in aggregate principal amount on our 6% and 6.25% Senior Notes; and |
• | Payments made in the prior year associated with the acquisition of the noncontrolling interest in MCG Coal Holdings Pty Ltd ($49.8 million). |
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) | |||||||||
April 1 through April 30, 2013 | 3,269 | $ | 19.88 | — | $ | 700.4 | |||||||
May 1 through May 31, 2013 | 869 | 20.44 | — | 700.4 | |||||||||
June 1 through June 30, 2013 | 2,836 | 19.67 | — | 700.4 | |||||||||
Total | 6,974 | $ | 19.87 | — |
(1) | Represents shares withheld to cover the withholding taxes upon the vesting of restricted stock, which are not a part of the Repurchase Program. |
Six months ended June 30, | |||||
2013 | 2012 | ||||
U.S.(1) | 0.75 | 1.42 | |||
Australia(1) | 2.81 | 2.91 | |||
Total Peabody Energy Corporation(1) | 1.77 | 2.13 |
(1) | Results for all periods presented include certain mines classified as discontinued operations and inactive operations in the process of being reclaimed as of June 30, 2013. Excluding those impacts, our incidence rates for the six months ended June 30, 2013 for the U.S., Australia and worldwide were 0.69, 2.72 and 1.67, respectively. |
PEABODY ENERGY CORPORATION | ||||
Date: | August 8, 2013 | 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 July 29, 2013). | |
10.1 | Fourth Amended and Restated Receivables Purchase Agreement, dated as of May 1, 2013, 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 Related Committed Purchasers listed on the signature pages thereto, all Purchaser Agents 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 (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on May 3, 2013). | |
10.2† | Transition Agreement effective April 29, 2013 by and between Peabody Energy Corporation and Gregory H. Boyce (entered into on April 29, 2013) (incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K filed on May 3, 2013). | |
10.3† | 2013 Restricted Stock Unit Agreement by and between Peabody Energy Corporation and Gregory H. Boyce (incorporated by reference to Exhibit 10.3 to the Registrant's Current Report on Form 8-K filed on May 3, 2013). | |
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 June 30, 2013 filed in XBRL). The financial information contained in the XBRL-related documents is “unaudited” and “unreviewed.” |
* | Filed herewith. | |
† | Management or compensatory agreement. |
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 June 30, 2013 (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 June 30, 2013 (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. |
• | 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 (2) | ($) Proposed MSHA Assessments | |||||||||||||||||||
Mine (1) | Fatalities (5) | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Western U.S. Mining | |||||||||||||||||||||||||
Caballo | 5 | — | — | — | — | — | $ | 7.1 | — | ||||||||||||||||
Kayenta | 3 | — | — | — | — | — | 1.8 | — | |||||||||||||||||
Lee Ranch | — | — | — | — | — | — | 0.2 | — | |||||||||||||||||
Peabody Williams Fork Mining, LLC | — | — | — | — | — | — | 0.3 | — | |||||||||||||||||
Sage Creek (3) | — | — | — | — | — | — | 0.1 | — | |||||||||||||||||
Twentymile (Foidel Creek) | 15 | — | — | — | — | — | 43.0 | — | |||||||||||||||||
Midwestern U.S. Mining | |||||||||||||||||||||||||
Bear Run | 10 | — | 1 | — | — | — | 28.3 | — | |||||||||||||||||
Francisco Preparation Plant (Francisco Mine) | — | — | — | — | — | — | 0.3 | — | |||||||||||||||||
Francisco Underground | 18 | — | — | — | — | — | 67.1 | — | |||||||||||||||||
Gateway | 14 | — | — | — | — | — | 74.5 | — | |||||||||||||||||
Somerville Central | 2 | — | — | — | — | — | 1.7 | — | |||||||||||||||||
Viking - Corning Pit | 2 | — | — | — | — | — | 3.3 | — | |||||||||||||||||
Wild Boar Mine | — | — | — | — | — | — | 0.1 | — | |||||||||||||||||
Wildcat Hills - Cottage Grove Pit | — | — | — | — | — | — | 0.2 | — | |||||||||||||||||
Wildcat Hills Underground | 10 | — | — | — | — | 1 | 51.3 | — | |||||||||||||||||
Willow Lake Portal (4) | — | — | — | — | — | — | 0.3 | — |
(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) | Additional information related to Section 107(a) Orders issued to us by MSHA have been reflected in our current reports previously filed with the Securities and Exchange Commission in accordance with Item 1.04 of Form 8-K. |
(3) | Mine had yet to commence operations as of June 30, 2013. |
(4) | Mine was closed as of June 30, 2013. |
(5) | On July 2, 2013, an employee at our Wildcat Hills underground mine in Illinois was fatally injured as the result of a coal haulage incident. |
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 (2) | ($) Proposed MSHA Assessments | |||||||||||||||||||
Mine (1) | Fatalities (6) | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Western U.S. Mining | |||||||||||||||||||||||||
Caballo | 7 | — | — | — | — | — | $ | 9.3 | — | ||||||||||||||||
Kayenta | 20 | — | 3 | — | — | 1 | 219.5 | — | |||||||||||||||||
Lee Ranch | — | — | — | — | — | — | 0.6 | — | |||||||||||||||||
North Antelope Rochelle | 4 | — | — | — | — | — | 9.1 | — | |||||||||||||||||
Peabody Williams Fork Mining, LLC | — | — | — | — | — | — | 0.3 | — | |||||||||||||||||
Rawhide | 2 | — | — | — | — | — | 1.7 | — | |||||||||||||||||
Sage Creek (3) | — | — | — | — | — | — | 0.2 | — | |||||||||||||||||
Twentymile (Foidel Creek) | 25 | — | — | — | — | — | 66.7 | — | |||||||||||||||||
Midwestern U.S. Mining | |||||||||||||||||||||||||
Air Quality (4)(5) | 4 | — | — | — | — | — | 15.7 | — | |||||||||||||||||
Bear Run | 11 | — | 1 | — | — | — | 32.1 | — | |||||||||||||||||
Francisco Preparation Plant (Francisco Mine) | 1 | — | — | — | — | — | 1.4 | — | |||||||||||||||||
Francisco Underground | 37 | — | — | — | — | — | 157.5 | — | |||||||||||||||||
Gateway | 23 | — | — | — | — | — | 122.9 | — | |||||||||||||||||
Gateway Preparation Plant | 1 | — | — | — | — | — | 0.6 | — | |||||||||||||||||
Somerville Central | 2 | — | — | — | — | — | 1.7 | — | |||||||||||||||||
Viking - Corning Pit | 2 | — | — | — | — | — | 3.9 | — | |||||||||||||||||
Wild Boar Mine | — | — | — | — | — | — | 0.1 | — | |||||||||||||||||
Wildcat Hills - Cottage Grove Pit | — | — | — | — | — | — | 0.8 | — | |||||||||||||||||
Wildcat Hills Underground | 17 | — | — | — | — | 1 | 94.3 | — | |||||||||||||||||
Willow Lake Portal (4) | — | — | — | — | — | — | 5.9 | — |
(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) | Additional information related to Section 107(a) Orders issued to us by MSHA have been reflected in our current reports previously filed with the Securities and Exchange Commission in accordance with Item 1.04 of Form 8-K. |
(3) | Mine had yet to commence operations as of June 30, 2013. |
(4) | Mine was closed as of June 30, 2013. |
(5) | Mine classified in discontinued operation as of June 30, 2013. |
(6) | On July 2, 2013, an employee at our Wildcat Hills underground mine in Illinois was fatally injured as the result of a coal haulage incident. |
• | 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 June 30, 2013 | Legal Actions Resolved During the Three Months Ended June 30, 2013 | ||||||||||
Number of Pending Legal Actions as of June 30, 2013 | Pre-Penalty Contests of Citations/Orders | Contests of Penalty Assessment | Complaints for Compensation | |||||||||
Mine(1) | ||||||||||||
Western U.S. Mining | ||||||||||||
Kayenta | 21 | 8 | 13 | — | 5 | 2 | ||||||
North Antelope Rochelle | 3 | — | 3 | — | 1 | 1 | ||||||
Rawhide | 2 | — | 2 | — | 1 | — | ||||||
Sage Creek (2) | 2 | — | 2 | — | 1 | — | ||||||
Twentymile (Foidel Creek) | 11 | — | 11 | — | 3 | 4 | ||||||
Midwestern U.S. Mining | ||||||||||||
Air Quality (3)(4) | 18 | — | 18 | — | — | 2 | ||||||
Francisco Preparation Plant (Francisco Mine) | 1 | — | 1 | — | — | — | ||||||
Francisco Underground | 9 | 1 | 8 | — | — | 2 | ||||||
Gateway | 8 | 1 | 7 | — | — | 3 | ||||||
Somerville Central | 1 | — | 1 | — | — | — | ||||||
Vermilion Grove (Riola Complex Vermilion Grove Portal) (3)(4) | 1 | — | 1 | — | — | 2 | ||||||
Wildcat Hills Underground | 4 | 2 | 2 | — | 2 | — | ||||||
Willow Lake Portal (3) | 89 | 46 | 42 | 1 | — | 4 |
(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 had yet to commence operations as of June 30, 2013. |
(3) | Mine was closed as of June 30, 2013. |
(4) | Mine classified in discontinued operation as of June 30, 2013. |
Income Taxes
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's tax benefit of $184.7 million and $38.2 million for the three months ended June 30, 2013 and 2012, respectively, included remeasurement benefit related to foreign tax accounts of $37.1 million and $13.8 million, respectively. The Company's tax benefit of $181.0 million and tax expense of $36.2 million for the six months ended June 30, 2013 and 2012, respectively, included remeasurement benefit related to foreign tax accounts of $35.5 million and $4.9 million, respectively. The 2013 effective tax rate before remeasurement is based on the Company's estimated full year effective tax rate, which is comprised of the expected statutory tax expense, more than offset by reductions from percentage depletion, foreign rate differential and the Australian minerals resource rent tax. During the quarter ended June 30, 2013, the Company released a portion of its valuation allowance on U.S. capital loss carry forwards amounting to $25.5 million due to a change in expected realization upon sale of non-strategic U.S. coal reserves and surface lands. The Company's Australian income tax returns for the tax years 2004 through 2010 are under examination by the Australian Tax Office (ATO). In April 2013, the ATO issued a final assessment challenging certain financing transactions with a total assessment of $70.2 million, comprised of additional taxes of $48.7 million plus interest and penalties of $21.5 million. During the quarter ended June 30, 2013, the Company made the $35.1 million advance deposit required by the ATO in order for the Company to proceed with litigation of the disputed tax assessment. That deposit balance has been reflected in "Other current assets" in the unaudited condensed consolidated balance sheet as of June 30, 2013. All tax assessment amounts above are presented in U.S. dollars at foreign currency exchange rates in effect at June 30, 2013. The Company believes the tax assessment will likely be resolved without a material adverse effect on its financial condition, results of operations or cash flows. |
Consolidated Statement of Comprehensive Income (Unaudited) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||||||
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
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Jun. 30, 2012
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Net income | $ 87.1 | $ 207.8 | $ 67.7 | $ 386.1 | ||||
Unrealized holding losses on available-for-sale securities | (7.6) | (2.6) | (13.8) | (14.1) | ||||
Less: Reclassification for realized losses included in net income | 13.6 | [1] | 0 | 13.5 | [1] | 0 | ||
Net change in unrealized gains (losses) on available-for-sale securities | 6.0 | (2.6) | (0.3) | (14.1) | ||||
(Decrease) increase in fair value of cash flow hedges | (339.0) | 42.7 | (270.3) | 190.5 | ||||
Less: Reclassification for realized gains included in net income | (38.3) | [1] | (37.3) | (115.4) | [1] | (121.5) | ||
Net unrealized (losses) gains on cash flow hedges | (377.3) | 5.4 | (385.7) | 69.0 | ||||
Amortization of actuarial loss and prior service cost for postretirement plans and workers' compensation obligations (net of respective tax provisions of $8.4, $8.0, $16.7 and $16.1) | 14.2 | 13.8 | 28.4 | 27.7 | ||||
Foreign currency translation adjustment | (74.5) | (6.1) | (73.4) | 6.6 | ||||
Other comprehensive (loss) income, net of income taxes | (431.6) | 10.5 | (431.0) | 89.2 | ||||
Comprehensive (loss) income | (344.5) | 218.3 | (363.3) | 475.3 | ||||
Less: Comprehensive (loss) income attributable to noncontrolling interests | (3.2) | 3.1 | 0.8 | 8.7 | ||||
Comprehensive (loss) income attributable to common stockholders | $ (341.3) | $ 215.2 | $ (364.1) | $ 466.6 | ||||
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Basis of Presentation
|
6 Months Ended |
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Jun. 30, 2013
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The condensed consolidated financial statements include the accounts of Peabody Energy Corporation (the Company) and its affiliates. Interests in subsidiaries controlled by the Company are consolidated with any outside shareholder interests reflected as noncontrolling interests, except when the Company has an undivided interest in an unincorporated joint venture. In those cases, the Company includes its proportionate share in the assets, liabilities, revenues and expenses of the jointly controlled entities within each applicable line item of the unaudited condensed consolidated financial statements. All intercompany transactions, profits and balances have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's 2012 Annual Report on Form 10-K. In the opinion of management, these financial statements reflect all normal, recurring adjustments necessary for a fair presentation. Balance sheet information presented herein as of December 31, 2012 has been derived from the Company’s audited consolidated balance sheet at that date. The results of operations for the three and six months ended June 30, 2013 are not necessarily indicative of the results that may be expected for future quarters or for the year ending December 31, 2013. The Company classifies items within discontinued operations in the unaudited condensed consolidated financial statements when the operations and cash flows of a particular component of the Company have been (or will be) eliminated from the ongoing operations of the Company as a result of a disposal (by sale or otherwise) and the Company will no longer have any significant continuing involvement in the operation of that component. |
Financial Instruments and Guarantees with Off-Balance-Sheet Risk
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Jun. 30, 2013
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Financial Instruments And Guarantees With Off Balance Sheet Risk Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments and Guarantees with Off-Balance-Sheet Risk | Financial Instruments, Guarantees with Off-Balance Sheet Risk and Other Guarantees In the normal course of business, the Company is a party to guarantees and financial instruments with off-balance-sheet risk, which are not reflected in the accompanying condensed consolidated balance sheets. Such financial instruments are valued based on the amount of exposure under the instrument and the likelihood of required performance. In the Company’s past experience, virtually no claims have been made against these financial instruments. Management does not expect any material losses to result from these guarantees or off-balance-sheet instruments. Financial Instruments with Off-Balance Sheet Risk As of June 30, 2013, the Company had the following financial instruments with off-balance sheet risk:
The Company owns a 37.5% interest in Dominion Terminal Associates, a partnership that operates a coal export terminal in Newport News, Virginia under a 30-year lease that expires July 1, 2016 and permits the partnership to purchase the terminal at the end of the lease term for a nominal amount. The partners have severally (but not jointly) agreed to make payments under various agreements which in the aggregate provide the partnership with sufficient funds to pay rents and to cover the principal and interest payments on the floating-rate industrial revenue bonds issued by the Peninsula Ports Authority, and which are supported by letters of credit from a commercial bank. As of June 30, 2013, the Company’s maximum reimbursement obligation to the commercial bank was in turn supported by four letters of credit totaling $42.7 million. The Company is party to an agreement with the PBGC and TXU Europe Limited, an affiliate of the Company’s former parent corporation, under which the Company is required to make special contributions to two of the Company’s defined benefit pension plans and to maintain a $37.0 million letter of credit in favor of the PBGC. If the Company or the PBGC gives notice of an intent to terminate one or more of the covered pension plans in which liabilities are not fully funded, or if the Company fails to maintain the letter of credit, the PBGC may draw down on the letter of credit and use the proceeds to satisfy liabilities under the Employee Retirement Income Security Act of 1974, as amended. The PBGC, however, is required to first apply amounts received from a $110.0 million guarantee in place from TXU Europe Limited in favor of the PBGC before it draws on the Company’s letter of credit. On November 19, 2002, TXU Europe Limited was placed under the administration process in the U.K. (a process similar to bankruptcy proceedings in the U.S.) and continues under this process as of June 30, 2013. As a result of these proceedings, TXU Europe Limited may be liquidated or otherwise reorganized in such a way as to relieve it of its obligations under its guarantee. In June 2013, one of the Company's wholly-owned captive insurance subsidiaries entered into a letter of credit arrangement for $24.1 million in relation to certain of its workers' compensation and other insurance-related obligations whereby that subsidiary has pledged $34.4 million of its investments in debt securities as collateral. This arrangement reduces the letters of credit drawn on the Company's Credit Facility and effectively lowers the fees associated with the related letters of credit. Accounts Receivable Securitization The Company has an accounts receivable securitization program (securitization program) with a maximum capacity of $275.0 million through its wholly owned, bankruptcy-remote subsidiary (Seller). At June 30, 2013, the Company had $133.7 million remaining capacity available under the securitization program, net of outstanding letters of credit and amounts drawn. Under the securitization program, the Company contributes trade receivables of most of the Company's U.S. subsidiaries on a revolving basis to the Seller, which then sells the receivables in their entirety to a consortium of unaffiliated asset-backed commercial paper conduits and banks (the Conduits). After the sale, the Company, as servicer of the assets, collects the receivables on behalf of the Conduits for a nominal servicing fee. The Company utilizes proceeds from the sale of its accounts receivable as an alternative to short-term borrowings under the revolving credit facility portion of the Company’s Credit Facility, effectively managing its overall borrowing costs and providing an additional source of working capital. The securitization program was renewed in May 2013 and will expire in April 2016. The Seller is a separate legal entity whose assets are available first and foremost to satisfy the claims of its creditors. Of the receivables sold to the Conduits, a portion of the amount due to the Seller is deferred until the ultimate collection of the underlying receivables. During the six months ended June 30, 2013, the Company received total consideration of $2,063.7 million related to accounts receivable sold under the securitization program, including $1,312.2 million of cash up front from the sale of the receivables, an additional $563.2 million of cash upon the collection of the underlying receivables and $188.3 million that had not been collected at June 30, 2013 and was recorded at carrying value, which approximates fair value. The reduction in accounts receivable as a result of securitization activity with the Conduits was $75.0 million and $25.0 million at June 30, 2013 and December 31, 2012, respectively. The securitization activity has been reflected in the unaudited condensed consolidated statements of cash flows as an operating activity because both the cash received from the Conduits upon sale of the receivables as well as the cash received from the Conduits upon the ultimate collection of the receivables are not subject to significantly different risks given the short-term nature of the Company’s trade receivables. The Company recorded expense associated with securitization transactions of $0.4 million for each of the three months ended June 30, 2013 and 2012, and $0.7 million and $0.9 million for the six months ended June 30, 2013 and 2012, respectively. Patriot Bankruptcy On October 31, 2007, the Company spun-off companies that constituted portions of its former Eastern U.S. Mining operations business segment to form Patriot Coal Corporation (Patriot). The spin-off included eight company-operated mines, two majority-owned joint venture mines and numerous contractor-operated mines serviced by eight coal preparation facilities, along with 1.2 billion tons of proven and probable coal reserves. On July 9, 2012, Patriot and certain of its wholly owned subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Code in the U.S. Bankruptcy Court for the Southern District of New York. The case was subsequently moved to the U.S. Bankruptcy Court for the Eastern District of Missouri. The Company believes that its only material exposure to the bankruptcy of Patriot relates to up to $150 million in possible federal and state black lung occupational disease liabilities. As Patriot noted in its Annual Report on Form 10-K for the year ended December 31, 2012, it has posted $15 million in collateral with the U.S. Department of Labor (DOL) in exchange for the right to self-insure its liabilities under the Federal Coal Mine Health and Safety Act of 1969 (Black Lung Act). If Patriot is unable to meet its black lung liability obligations, the Company believes that the DOL will first look to this collateral for payment. The Black Lung Act allows the DOL to seek recovery from other potentially liable operators as well. The Company may be considered a potentially liable operator for purposes of the Black Lung Act with respect to the black lung liabilities of Patriot at the time of the spin-off. See Note 16. "Commitments and Contingencies" to the unaudited condensed consolidated financial statements for a discussion of certain litigation related to the Patriot bankruptcy. Other Included in "Other noncurrent liabilities" in the Company's condensed consolidated balance sheets as of June 30, 2013 and December 31, 2012 is a liability of $45.6 million related to reclamation and bonding commitments provided on behalf of a third-party coal producer associated with a 2007 purchase of coal reserves and surface lands in the Illinois Basin. The Company is the lessee under numerous equipment and property leases. It is common in such commercial lease transactions for the Company, as the lessee, to agree to indemnify the lessor for the value of the property or equipment leased, should the property be damaged or lost during the course of the Company’s operations. The Company expects that losses with respect to leased property, if any, would be covered by insurance (subject to deductibles). The Company and certain of its subsidiaries have guaranteed other subsidiaries’ performance under various lease obligations. Aside from indemnification of the lessor for the value of the property leased, the Company’s maximum potential obligations under its leases are equal to the respective future minimum lease payments, and the Company assumes that no amounts could be recovered from third parties. The Company has provided financial guarantees under certain long-term debt agreements entered into by its subsidiaries and substantially all of the Company’s U.S. subsidiaries provide financial guarantees under long-term debt agreements entered into by the Company. The maximum amounts payable under the Company’s debt agreements are equal to the respective principal and interest payments. |
Supplemental Guarantor/Non-Guarantor Financial Information (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Total revenues | $ 1,725.3 | $ 1,981.1 | $ 3,473.3 | $ 4,001.8 |
Operating costs and expenses | 1,437.2 | 1,466.0 | 2,826.6 | 2,887.8 |
Depreciation, depletion and amortization | 185.7 | 155.3 | 356.4 | 298.2 |
Asset retirement obligation expenses | 18.3 | 17.2 | 37.3 | 32.2 |
Selling and administrative expenses | 64.0 | 62.7 | 129.1 | 133.7 |
Net gain on disposal or exchange of assets | (43.2) | (3.4) | (45.8) | (7.4) |
Asset impairment | 21.5 | 0 | 21.5 | 0 |
(Income) loss from equity affiliates and investment in subsidiaries | 15.4 | 6.6 | 33.0 | 29.3 |
Interest expense | 110.8 | 106.9 | 212.1 | 208.9 |
Interest income | (1.1) | (6.5) | (7.0) | (14.6) |
Unrealized loss (gain) on derivatives | 0 | 0 | 0 | 0 |
Income (loss) from continuing operations before income taxes | (83.3) | 176.3 | (89.9) | 433.7 |
Income tax provision (benefit) | (184.7) | (38.2) | (181.0) | 36.2 |
Income (loss) from continuing operations, net of income taxes | 101.4 | 214.5 | 91.1 | 397.5 |
Loss from discontinued operations, net of income taxes | (14.3) | (6.7) | (23.4) | (11.4) |
Net income (loss) | 87.1 | 207.8 | 67.7 | 386.1 |
Less: Net (loss) income attributable to noncontrolling interests | (3.2) | 3.1 | 0.8 | 8.7 |
Net income (loss) attributable to common stockholders | 90.3 | 204.7 | 66.9 | 377.4 |
Other comprehensive (loss) income, net of income taxes | (431.6) | 10.5 | (431.0) | 89.2 |
Comprehensive (loss) income | (344.5) | 218.3 | (363.3) | 475.3 |
Comprehensive (loss) income attributable to common stockholders | (341.3) | 215.2 | (364.1) | 466.6 |
Parent Company [Member]
|
||||
Total revenues | 0 | 0 | 0 | 0 |
Operating costs and expenses | (62.8) | (93.2) | (154.5) | (217.6) |
Depreciation, depletion and amortization | 0 | 0 | 0 | 0 |
Asset retirement obligation expenses | 0 | 0 | 0 | 0 |
Selling and administrative expenses | 14.6 | 10.8 | 23.8 | 20.9 |
Net gain on disposal or exchange of assets | 0 | 0 | 0 | 0 |
Asset impairment | 21.5 | 21.5 | ||
(Income) loss from equity affiliates and investment in subsidiaries | (174.4) | (174.5) | (89.6) | (290.9) |
Interest expense | 101.3 | 106.9 | 203.2 | 210.3 |
Interest income | (0.1) | (73.6) | (68.2) | (151.4) |
Unrealized loss (gain) on derivatives | 0 | 0 | 0 | 0 |
Income (loss) from continuing operations before income taxes | 99.9 | 223.6 | 63.8 | 428.7 |
Income tax provision (benefit) | 5.8 | 18.5 | (9.5) | 50.9 |
Income (loss) from continuing operations, net of income taxes | 94.1 | 205.1 | 73.3 | 377.8 |
Loss from discontinued operations, net of income taxes | (3.8) | (0.4) | (6.4) | (0.4) |
Net income (loss) | 90.3 | 204.7 | 66.9 | 377.4 |
Less: Net (loss) income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to common stockholders | 90.3 | 204.7 | 66.9 | 377.4 |
Other comprehensive (loss) income, net of income taxes | (431.6) | 10.5 | (431.0) | 89.2 |
Comprehensive (loss) income | (341.3) | 215.2 | (364.1) | 466.6 |
Comprehensive (loss) income attributable to common stockholders | (341.3) | 215.2 | (364.1) | 466.6 |
Guarantor Subsidiaries [Member]
|
||||
Total revenues | 972.5 | 1,071.0 | 1,987.1 | 2,202.3 |
Operating costs and expenses | 823.0 | 828.5 | 1,523.9 | 1,664.1 |
Depreciation, depletion and amortization | 85.5 | 74.5 | 165.1 | 147.2 |
Asset retirement obligation expenses | 10.2 | 12.2 | 21.8 | 22.9 |
Selling and administrative expenses | 44.3 | 48.1 | 91.7 | 100.0 |
Net gain on disposal or exchange of assets | (43.0) | (3.0) | (45.8) | (4.9) |
Asset impairment | 0 | 0 | ||
(Income) loss from equity affiliates and investment in subsidiaries | 4.5 | 1.9 | 8.4 | 3.8 |
Interest expense | 8.7 | 1.8 | 11.0 | 7.1 |
Interest income | (90.5) | (30.9) | (125.4) | (65.8) |
Unrealized loss (gain) on derivatives | 502.6 | 101.9 | 461.6 | 42.7 |
Income (loss) from continuing operations before income taxes | (372.8) | 36.0 | (125.2) | 285.2 |
Income tax provision (benefit) | (193.1) | 52.2 | (85.2) | 53.6 |
Income (loss) from continuing operations, net of income taxes | (179.7) | (16.2) | (40.0) | 231.6 |
Loss from discontinued operations, net of income taxes | (1.0) | (1.2) | (2.5) | (2.1) |
Net income (loss) | (180.7) | (17.4) | (42.5) | 229.5 |
Less: Net (loss) income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to common stockholders | (180.7) | (17.4) | (42.5) | 229.5 |
Other comprehensive (loss) income, net of income taxes | 51.0 | (5.2) | 28.5 | 27.4 |
Comprehensive (loss) income | (129.7) | (22.6) | (14.0) | 256.9 |
Comprehensive (loss) income attributable to common stockholders | (129.7) | (22.6) | (14.0) | 256.9 |
Non-Guarantor Subsidiaries [Member]
|
||||
Total revenues | 818.8 | 997.5 | 1,615.0 | 1,916.1 |
Operating costs and expenses | 743.0 | 818.1 | 1,586.0 | 1,557.9 |
Depreciation, depletion and amortization | 100.2 | 80.8 | 191.3 | 151.0 |
Asset retirement obligation expenses | 8.1 | 5.0 | 15.5 | 9.3 |
Selling and administrative expenses | 5.1 | 3.8 | 13.6 | 12.8 |
Net gain on disposal or exchange of assets | (0.2) | (0.4) | 0 | (2.5) |
Asset impairment | 0 | 0 | ||
(Income) loss from equity affiliates and investment in subsidiaries | 10.9 | 4.7 | 24.6 | 25.5 |
Interest expense | 95.4 | 110.9 | 205.9 | 225.9 |
Interest income | (5.1) | (14.7) | (21.4) | (31.8) |
Unrealized loss (gain) on derivatives | (502.6) | (101.9) | (461.6) | (42.7) |
Income (loss) from continuing operations before income taxes | 364.0 | 91.2 | 61.1 | 10.7 |
Income tax provision (benefit) | 2.6 | (108.9) | (86.3) | (68.3) |
Income (loss) from continuing operations, net of income taxes | 361.4 | 200.1 | 147.4 | 79.0 |
Loss from discontinued operations, net of income taxes | (9.5) | (5.1) | (14.5) | (8.9) |
Net income (loss) | 351.9 | 195.0 | 132.9 | 70.1 |
Less: Net (loss) income attributable to noncontrolling interests | (3.2) | 3.1 | 0.8 | 8.7 |
Net income (loss) attributable to common stockholders | 355.1 | 191.9 | 132.1 | 61.4 |
Other comprehensive (loss) income, net of income taxes | (49.9) | 135.2 | (64.1) | 148.8 |
Comprehensive (loss) income | 302.0 | 330.2 | 68.8 | 218.9 |
Comprehensive (loss) income attributable to common stockholders | 305.2 | 327.1 | 68.0 | 210.2 |
Consolidation, Eliminations [Member]
|
||||
Total revenues | (66.0) | (87.4) | (128.8) | (116.6) |
Operating costs and expenses | (66.0) | (87.4) | (128.8) | (116.6) |
Depreciation, depletion and amortization | 0 | 0 | 0 | 0 |
Asset retirement obligation expenses | 0 | 0 | 0 | 0 |
Selling and administrative expenses | 0 | 0 | 0 | 0 |
Net gain on disposal or exchange of assets | 0 | 0 | 0 | 0 |
Asset impairment | 0 | 0 | ||
(Income) loss from equity affiliates and investment in subsidiaries | 174.4 | 174.5 | 89.6 | 290.9 |
Interest expense | (94.6) | (112.7) | (208.0) | (234.4) |
Interest income | 94.6 | 112.7 | 208.0 | 234.4 |
Unrealized loss (gain) on derivatives | 0 | 0 | 0 | 0 |
Income (loss) from continuing operations before income taxes | (174.4) | (174.5) | (89.6) | (290.9) |
Income tax provision (benefit) | 0 | 0 | 0 | 0 |
Income (loss) from continuing operations, net of income taxes | (174.4) | (174.5) | (89.6) | (290.9) |
Loss from discontinued operations, net of income taxes | 0 | 0 | 0 | 0 |
Net income (loss) | (174.4) | (174.5) | (89.6) | (290.9) |
Less: Net (loss) income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to common stockholders | (174.4) | (174.5) | (89.6) | (290.9) |
Other comprehensive (loss) income, net of income taxes | (1.1) | (130.0) | 35.6 | (176.2) |
Comprehensive (loss) income | (175.5) | (304.5) | (54.0) | (467.1) |
Comprehensive (loss) income attributable to common stockholders | $ (175.5) | $ (304.5) | $ (54.0) | $ (467.1) |
Financing Receivables (Details)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
USD ($)
|
Dec. 31, 2012
USD ($)
|
Jun. 30, 2013
Middlemount Mine [Member]
USD ($)
|
Dec. 31, 2012
Middlemount Mine [Member]
USD ($)
|
Jun. 30, 2013
Codrilla Mine Project [Member]
USD ($)
|
Sep. 30, 2012
Codrilla Mine Project [Member]
|
Jun. 30, 2013
Codrilla Mine Project [Member]
USD ($)
|
Dec. 31, 2011
Codrilla Mine Project [Member]
|
Dec. 31, 2012
Codrilla Mine Project [Member]
USD ($)
|
Oct. 23, 2011
Codrilla Mine Project [Member]
AUD
|
Oct. 23, 2011
Coppabella, Moorvale, and Codrilla Mines [Member]
|
Jun. 30, 2013
Kentucky Nonstrategic Reserves and Land [Member]
USD ($)
|
Jun. 30, 2013
Financing Receivable [Member]
USD ($)
|
Dec. 31, 2012
Financing Receivable [Member]
USD ($)
|
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Total financing receivables | $ 400.6 | $ 391.7 | ||||||||||||
Accounts receivable, net | 36.8 | 0.7 | ||||||||||||
Investments and other assets | 335.0 | 357.4 | 28.8 | 28.8 | 33.6 | 363.8 | 391.0 | |||||||
Percentage of ownership before selldown | 85.00% | |||||||||||||
Percentage of undivided interests acquired | 73.30% | |||||||||||||
Consideration received by company upon completion of sell down | 15.0 | |||||||||||||
Percentage of agreed sale price as consideration upon selldown completion | 20.00% | |||||||||||||
Business acquistion percentage of agreed sales price first installment payment received | 40.00% | |||||||||||||
Percentage of agreed sale price as final installment payment due | 40.00% | 40.00% | ||||||||||||
Adjustment to Discounted Value of Note Receivable | 1.6 | 1.6 | ||||||||||||
Basis spread over Australian Bank Bill Swap Reference Rate | 3.50% | |||||||||||||
Cash Proceeds From Sale Of Nonstrategic Coal Reserves | 35.0 | 35.0 | ||||||||||||
Notes Receivable From Sale Of Nonstrategic Coal Reserves | $ 35.0 |
Financing Receivables
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Receivables [Text Block] | Financing Receivables The Company had total financing receivables of $400.6 million and $391.7 million at June 30, 2013 and December 31, 2012, respectively, which consisted of the following:
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 June 30, 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 earlier of the mine's first coal shipment or a specified date. The sales agreement was amended during the three months ended June 30, 2013 to delay the specified date from March 31, 2015 to June 30, 2016, resulting in an adjustment to the discounted value of the note receivable in the amount of $1.6 million. This adjustment was recorded in "Interest income" in the unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2013. There are currently no indications of impairment on the remaining installment and the Company expects to receive full payment upon the earlier of the mine's first shipment or June 30, 2016. The remaining balance associated with these receivables is recorded in "Investments and other assets" which was $28.8 million and $33.6 million at June 30, 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, which the Company projects will extend beyond the stated expiration date, 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 and six month periods ended June 30, 2013 is included in foreign currency translation adjustment in the unaudited condensed consolidated balance sheet as of June 30, 2013 and the unaudited condensed consolidated statements of comprehensive income for the three and six months then ended. "Investments and other assets" included $335.0 million and $357.4 million at June 30, 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 second quarter of 2013, the Company sold non-strategic coal reserves and surface lands for cash of $35.0 million and a note receivable totaling $35.0 million, which is due in December 2013. |
Derivatives and Fair Value Measurements (Details 1) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in other comprehensive income on derivative (effective portion) | $ (517.6) | $ (91.0) | $ (473.0) | $ 107.4 |
Loss reclassified from other comprehensive income into income (effective portion) | 62.6 | 92.1 | 154.4 | 222.4 |
Gain reclassified from other comprehensive income into income (ineffective portion) | 0.1 | 0.1 | 0.3 | (4.5) |
Not Designated as Hedging Instrument [Member]
|
||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain recognized in income on non-designated derivatives | 0 | 0 | 0 | 0 |
Foreign Currency Forward Contract [Member] | Operating costs and expenses [Member] | Cash flow hedges [Member]
|
||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in other comprehensive income on derivative (effective portion) | (492.6) | (12.0) | (453.9) | 128.3 |
Loss reclassified from other comprehensive income into income (effective portion) | 62.1 | 81.6 | 147.2 | 194.6 |
Gain reclassified from other comprehensive income into income (ineffective portion) | 0 | 0 | 0 | 0 |
Foreign Currency Forward Contract [Member] | Operating costs and expenses [Member] | Cash flow hedges [Member] | Not Designated as Hedging Instrument [Member]
|
||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain recognized in income on non-designated derivatives | 0 | 0 | 0 | 0 |
Commodity swap contracts [Member] | Operating costs and expenses [Member] | Cash flow hedges [Member]
|
||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in other comprehensive income on derivative (effective portion) | (25.0) | (79.0) | (19.1) | (20.9) |
Loss reclassified from other comprehensive income into income (effective portion) | 0.5 | 10.5 | 7.2 | 27.8 |
Gain reclassified from other comprehensive income into income (ineffective portion) | 0.1 | 0.1 | 0.3 | (4.5) |
Commodity swap contracts [Member] | Operating costs and expenses [Member] | Cash flow hedges [Member] | Not Designated as Hedging Instrument [Member]
|
||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain recognized in income on non-designated derivatives | $ 0 | $ 0 | $ 0 | $ 0 |
Debt Textuals (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2013
|
Dec. 31, 2012
|
|
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 7.875% | 7.875% | |
Capital lease obligations | $ 38.3 | $ 38.3 | $ 104.6 |
Other | 1.1 | 1.1 | 33.8 |
Total Debt | 5,988.0 | 5,988.0 | 6,252.9 |
Loss on Debt Extinguishment | 4.5 | 5.4 | |
CapitalLeaseObligationsOffsetAgainstReceivablesWithSameParty | 56.1 | 56.1 | |
Term Loan
|
|||
Debt Instrument [Line Items] | |||
Long-term Debt | 301.8 | 301.8 | 418.8 |
2011 Term Loan Facility
|
|||
Debt Instrument [Line Items] | |||
Long-term Debt | 862.5 | 862.5 | 912.5 |
7.375% Senior Notes due November 2016
|
|||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 7.375% | 7.375% | |
Long-term Debt | 650.0 | 650.0 | 650.0 |
6.00% Senior Notes due November 2018
|
|||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | 6.00% | |
Long-term Debt | 1,518.8 | 1,518.8 | 1,518.8 |
6.50% Senior Notes due September 2020
|
|||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | 6.50% | |
Long-term Debt | 650.0 | 650.0 | 650.0 |
6.25% Senior Notes due November 2021
|
|||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.25% | 6.25% | |
Long-term Debt | 1,339.6 | 1,339.6 | 1,339.6 |
7.875% Senior Notes due November 2026
|
|||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 7.875% | 7.875% | |
Long-term Debt | 247.4 | 247.4 | 247.4 |
Convertible Junior Subordinated Debentures due December 2066
|
|||
Debt Instrument [Line Items] | |||
Long-term Debt | 378.5 | 378.5 | 377.4 |
Term Loan & 2011 Term Loan Facility
|
|||
Debt Instrument [Line Items] | |||
Repayments of Long-term Debt | 167.0 | ||
Australian private placement bonds
|
|||
Debt Instrument [Line Items] | |||
Repayments of Long-term Debt | $ 32.4 |
Earnings per Share (EPS) (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings allocation method utilized in the calculation of basic and diluted EPS | The following illustrates the earnings allocation method utilized in the calculation of basic and diluted EPS:
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Supplemental Guarantor/Non-Guarantor Financial Information
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Supplemental Guarantor Non Guarantor Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Guarantor Non Guarantor Financial Information Disclosure [Text Block] | Supplemental Guarantor/Non-Guarantor Financial Information In accordance with the indentures governing the 7.375% Senior Notes due November 2016, the 6.00% Senior Notes due November 2018, the 6.50% Senior Notes due September 2020, the 6.25% Senior Notes due November 2021 and the 7.875% Senior Notes due November 2026 (collectively the Senior Notes), certain wholly owned U.S. subsidiaries of the Company have fully and unconditionally guaranteed the Senior Notes, on a joint and several basis. Separate financial statements and other disclosures concerning the Guarantor Subsidiaries are not presented because management believes that such information is not material to the holders of the Senior Notes. The following historical financial statement information is provided for the Guarantor/Non-Guarantor Subsidiaries. Unaudited Supplemental Condensed Consolidating Statements of Operations
Unaudited Supplemental Condensed Consolidating Statements of Comprehensive Income
Unaudited Supplemental Condensed Consolidating Statements of Operations
Unaudited Supplemental Condensed Consolidating Statements of Comprehensive Income
Unaudited Supplemental Condensed Consolidating Statements of Operations
Unaudited Supplemental Condensed Consolidating Statements of Comprehensive Income
Unaudited Supplemental Condensed Consolidating Statements of Operations
Unaudited Supplemental Condensed Consolidating Statements of Comprehensive Income
Unaudited Supplemental Condensed Consolidating Balance Sheets
Supplemental Condensed Consolidating Balance Sheets
Unaudited Supplemental Condensed Consolidating Statements of Cash Flows
Unaudited Supplemental Condensed Consolidating Statements of Cash Flows
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Segment Information
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The Company reports its results of operations primarily through the following reportable segments: “Australian Mining," “Western U.S. Mining,” “Midwestern U.S. Mining,” “Trading and Brokerage” and “Corporate and Other.” The Company’s chief operating decision maker uses Adjusted EBITDA as the primary measure of segment profit and loss. The Company defines Adjusted EBITDA as income from continuing operations before deducting net interest expense, income taxes, asset retirement obligation expenses, depreciation, depletion and amortization, asset impairment and mine closure costs and amortization of basis difference related to equity method investments. Reportable segment results were as follows:
A reconciliation of Adjusted EBITDA to consolidated income from continuing operations, net of income taxes follows:
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Inventories (Details) (USD $)
In Millions, unless otherwise specified |
Jun. 30, 2013
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Dec. 31, 2012
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Inventories | ||
Materials and supplies | $ 168.9 | $ 157.6 |
Raw coal | 114.2 | 164.3 |
Saleable coal | 298.5 | 226.5 |
Total | $ 581.6 | $ 548.4 |
Financing Receivables (Tables)
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6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Financing Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | The Company had total financing receivables of $400.6 million and $391.7 million at June 30, 2013 and December 31, 2012, respectively, which consisted of the following:
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Segment Information (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating segment results | Reportable segment results were as follows:
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Reconciliation of Adjusted EBITDA to consolidated (loss) income from continuing operations, net of income taxes | A reconciliation of Adjusted EBITDA to consolidated income from continuing operations, net of income taxes follows:
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Derivatives and Fair Value Measurements (Details 3) (USD $)
In Millions, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Explosives Hedge Contracts Member
|
||
Fair value of financial asset (liability) positions measured on a recurring basis | ||
Derivative assets (liabilities), at fair value, net | $ (3.4) | |
Diesel Fuel Hedge Contracts [Member]
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||
Fair value of financial asset (liability) positions measured on a recurring basis | ||
Derivative assets (liabilities), at fair value, net | (19.2) | |
Fair Value, Measurements, Recurring [Member]
|
||
Fair value of financial asset (liability) positions measured on a recurring basis | ||
Investments in debt and equity securities (available-for-sale) | 58.8 | 88.4 |
Total net financial assets | (278.0) | 379.3 |
Fair Value, Measurements, Recurring [Member] | Foreign Currency Forward Contract [Member]
|
||
Fair value of financial asset (liability) positions measured on a recurring basis | ||
Derivative assets (liabilities), at fair value, net | (314.2) | 286.9 |
Fair Value, Measurements, Recurring [Member] | Commodity swap contracts [Member]
|
||
Fair value of financial asset (liability) positions measured on a recurring basis | ||
Derivative assets (liabilities), at fair value, net | (22.6) | 4.0 |
Fair Value, Measurements, Recurring [Member] | Level 1[Member]
|
||
Fair value of financial asset (liability) positions measured on a recurring basis | ||
Investments in debt and equity securities (available-for-sale) | 47.3 | 75.4 |
Total net financial assets | 47.3 | 75.4 |
Fair Value, Measurements, Recurring [Member] | Level 1[Member] | Foreign Currency Forward Contract [Member]
|
||
Fair value of financial asset (liability) positions measured on a recurring basis | ||
Derivative assets (liabilities), at fair value, net | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1[Member] | Commodity swap contracts [Member]
|
||
Fair value of financial asset (liability) positions measured on a recurring basis | ||
Derivative assets (liabilities), at fair value, net | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member]
|
||
Fair value of financial asset (liability) positions measured on a recurring basis | ||
Investments in debt and equity securities (available-for-sale) | 11.5 | 13.0 |
Total net financial assets | (325.3) | 303.9 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Foreign Currency Forward Contract [Member]
|
||
Fair value of financial asset (liability) positions measured on a recurring basis | ||
Derivative assets (liabilities), at fair value, net | (314.2) | 286.9 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Commodity swap contracts [Member]
|
||
Fair value of financial asset (liability) positions measured on a recurring basis | ||
Derivative assets (liabilities), at fair value, net | (22.6) | 4.0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member]
|
||
Fair value of financial asset (liability) positions measured on a recurring basis | ||
Investments in debt and equity securities (available-for-sale) | 0 | 0 |
Total net financial assets | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Foreign Currency Forward Contract [Member]
|
||
Fair value of financial asset (liability) positions measured on a recurring basis | ||
Derivative assets (liabilities), at fair value, net | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Commodity swap contracts [Member]
|
||
Fair value of financial asset (liability) positions measured on a recurring basis | ||
Derivative assets (liabilities), at fair value, net | $ 0 | $ 0 |
Inventories (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories consisted of the following:
|
Commitments and Contingencies (Details 1) (Capital Addition Purchase Commitments [Member], USD $)
In Millions, unless otherwise specified |
Jun. 30, 2013
|
---|---|
Capital Addition Purchase Commitments [Member]
|
|
Long-term Purchase Commitment [Line Items] | |
Commitments outstanding for capital expenditures due, total | $ 156.0 |
Commitments outstanding for capital expenditures due within one year | $ 78.0 |
Financial Instruments and Guarantees with Off-Balance-Sheet Risk (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
Dec. 31, 2012
|
Oct. 31, 2007
T
|
|||||
Guarantee Obligations [Line Items] | ||||||||||
Guarantor obligations, current carrying value | $ 2,219.2 | $ 2,219.2 | ||||||||
Amount in letters of credit and surety bonds related to collateral for surety companies, road maintenance, performance guarantees and other operations | 153.0 | 153.0 | ||||||||
Financial Instruments and Guarantees with Off-Balance-Sheet Risk (Textuals) [Abstract] | ||||||||||
Letter of credit arrangement for workers comp | 24.1 | 24.1 | ||||||||
Collateral for letter of credit related to workers comp | 34.4 | 34.4 | ||||||||
Maximum capacity of the securitization program | 275.0 | 275.0 | ||||||||
Amount available under the securitization program | 133.7 | 133.7 | ||||||||
Total consideration received by Company related to accounts receivable sold under securitization program | 2,063.7 | |||||||||
Cash up front from sale of receivables | 1,312.2 | |||||||||
Additional cash upon collection of underlying receivables | 563.2 | |||||||||
Non collected receivables | 188.3 | 188.3 | ||||||||
Accounts receivable from securitization | 75.0 | 75.0 | 25.0 | |||||||
Expense associated with securitization transactions | 0.4 | 0.4 | 0.7 | 0.9 | ||||||
Number of company operated mines included in Patriot Spin-off | 8 | |||||||||
Number of majority owned JV mines included in the Patriot spin-off | 2 | |||||||||
Number of coal preparation facilities servicing contractor-operated mines included in the Patriot spin-off | 8 | |||||||||
Proven and probable coal reserves related to Patriot | 1,200,000,000 | |||||||||
Potential exposure from Patriot bankruptcy | 150 | 150 | ||||||||
Patriot collateral posted with the Department of Labor | 15 | |||||||||
Liability for reclamation and bonding commitments provided on behalf of third-party coal producer | 45.6 | 45.6 | 45.6 | |||||||
DTA and PBGC
|
||||||||||
Guarantee Obligations [Line Items] | ||||||||||
Letters of credit outstanding, amount | 79.7 | 79.7 | ||||||||
Dominion Terminal Associates Partnership
|
||||||||||
Financial Instruments and Guarantees with Off-Balance-Sheet Risk (Textuals) [Abstract] | ||||||||||
Ownership Percentage in DTA | 37.50% | 37.50% | ||||||||
DTA lease term | 30 | 30 | ||||||||
Number of letters of credit supporting reimbursement obligation | 4 | 4 | ||||||||
Maximum reimbursement obligation to commercial bank related to Dominion Terminals | 42.7 | 42.7 | ||||||||
Pension Plans Agreement With PBG and TXU Europe
|
||||||||||
Financial Instruments and Guarantees with Off-Balance-Sheet Risk (Textuals) [Abstract] | ||||||||||
Defined benefit pension plans requiring special contributions | 2 | 2 | ||||||||
Letter of credit maintained by the Company in favor of the PBGC | 37.0 | 37.0 | ||||||||
Guarantee in place from TXU Europe Limited | 110.0 | 110.0 | ||||||||
Reclamation Obligations
|
||||||||||
Guarantee Obligations [Line Items] | ||||||||||
Guarantor obligations, current carrying value | 1,810.2 | 1,810.2 | ||||||||
Lease Obligations
|
||||||||||
Guarantee Obligations [Line Items] | ||||||||||
Guarantor obligations, current carrying value | 109.8 | 109.8 | ||||||||
Workers' Compensation Obligations
|
||||||||||
Guarantee Obligations [Line Items] | ||||||||||
Guarantor obligations, current carrying value | 66.5 | 66.5 | ||||||||
Other
|
||||||||||
Guarantee Obligations [Line Items] | ||||||||||
Guarantor obligations, current carrying value | 232.7 | [1] | 232.7 | [1] | ||||||
Self bonding
|
||||||||||
Guarantee Obligations [Line Items] | ||||||||||
Guarantor obligations, current carrying value | 1,242.5 | 1,242.5 | ||||||||
Self bonding | Reclamation Obligations
|
||||||||||
Guarantee Obligations [Line Items] | ||||||||||
Guarantor obligations, current carrying value | 1,242.5 | 1,242.5 | ||||||||
Self bonding | Lease Obligations
|
||||||||||
Guarantee Obligations [Line Items] | ||||||||||
Guarantor obligations, current carrying value | 0 | 0 | ||||||||
Self bonding | Workers' Compensation Obligations
|
||||||||||
Guarantee Obligations [Line Items] | ||||||||||
Guarantor obligations, current carrying value | 0 | 0 | ||||||||
Self bonding | Other
|
||||||||||
Guarantee Obligations [Line Items] | ||||||||||
Guarantor obligations, current carrying value | 0 | [1] | 0 | [1] | ||||||
Surety bonds
|
||||||||||
Guarantee Obligations [Line Items] | ||||||||||
Guarantor obligations, current carrying value | 471.6 | 471.6 | ||||||||
Surety bonds | Reclamation Obligations
|
||||||||||
Guarantee Obligations [Line Items] | ||||||||||
Guarantor obligations, current carrying value | 318.6 | 318.6 | ||||||||
Surety bonds | Lease Obligations
|
||||||||||
Guarantee Obligations [Line Items] | ||||||||||
Guarantor obligations, current carrying value | 109.8 | 109.8 | ||||||||
Surety bonds | Workers' Compensation Obligations
|
||||||||||
Guarantee Obligations [Line Items] | ||||||||||
Guarantor obligations, current carrying value | 34.2 | 34.2 | ||||||||
Surety bonds | Other
|
||||||||||
Guarantee Obligations [Line Items] | ||||||||||
Guarantor obligations, current carrying value | 9.0 | [1] | 9.0 | [1] | ||||||
Bank guarantees
|
||||||||||
Guarantee Obligations [Line Items] | ||||||||||
Guarantor obligations, current carrying value | 393.1 | 393.1 | ||||||||
Bank guarantees | Reclamation Obligations
|
||||||||||
Guarantee Obligations [Line Items] | ||||||||||
Guarantor obligations, current carrying value | 249.1 | 249.1 | ||||||||
Bank guarantees | Lease Obligations
|
||||||||||
Guarantee Obligations [Line Items] | ||||||||||
Guarantor obligations, current carrying value | 0 | 0 | ||||||||
Bank guarantees | Workers' Compensation Obligations
|
||||||||||
Guarantee Obligations [Line Items] | ||||||||||
Guarantor obligations, current carrying value | 0 | 0 | ||||||||
Bank guarantees | Other
|
||||||||||
Guarantee Obligations [Line Items] | ||||||||||
Guarantor obligations, current carrying value | 144.0 | [1] | 144.0 | [1] | ||||||
Letters of credit
|
||||||||||
Guarantee Obligations [Line Items] | ||||||||||
Guarantor obligations, current carrying value | 112.0 | 112.0 | ||||||||
Letters of credit | Reclamation Obligations
|
||||||||||
Guarantee Obligations [Line Items] | ||||||||||
Guarantor obligations, current carrying value | 0 | 0 | ||||||||
Letters of credit | Lease Obligations
|
||||||||||
Guarantee Obligations [Line Items] | ||||||||||
Guarantor obligations, current carrying value | 0 | 0 | ||||||||
Letters of credit | Workers' Compensation Obligations
|
||||||||||
Guarantee Obligations [Line Items] | ||||||||||
Guarantor obligations, current carrying value | 32.3 | 32.3 | ||||||||
Letters of credit | Other
|
||||||||||
Guarantee Obligations [Line Items] | ||||||||||
Guarantor obligations, current carrying value | $ 79.7 | [1] | $ 79.7 | [1] | ||||||
|
Investments (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
Dec. 31, 2012
|
|
Schedule of Available-for-sale Securities [Line Items] | |||||
Purchases of debt securities | $ 5.2 | $ 24.3 | $ 9.7 | $ 24.3 | |
Investments in available-for-sale securities | |||||
Available-for-sale securities, amortized cost | 58.9 | 58.9 | 88.0 | ||
Available-for-sale securities, gross unrealized gains | 0.2 | 0.2 | 0.4 | ||
Available-for-sale Securities, Gross Unrealized Losses | (0.3) | (0.3) | 0 | ||
Current [Member] | Federal government securities [Member]
|
|||||
Investments in available-for-sale securities | |||||
Available-for-sale securities, amortized cost | 2.9 | 2.9 | |||
Available-for-sale securities, gross unrealized gains | 0 | 0 | |||
Available-for-sale Securities, Gross Unrealized Losses | 0 | 0 | |||
Available-for-sale securities, fair value | 2.9 | 2.9 | |||
Current [Member] | U.S. corporate bonds [Member]
|
|||||
Investments in available-for-sale securities | |||||
Available-for-sale securities, amortized cost | 2.0 | 2.0 | 4.1 | ||
Available-for-sale securities, gross unrealized gains | 0 | 0 | 0 | ||
Available-for-sale Securities, Gross Unrealized Losses | 0 | 0 | 0 | ||
Available-for-sale securities, fair value | 2.0 | 2.0 | 4.1 | ||
Noncurrent [Member] | Federal government securities [Member]
|
|||||
Investments in available-for-sale securities | |||||
Available-for-sale securities, amortized cost | 25.4 | 25.4 | 32.0 | ||
Available-for-sale securities, gross unrealized gains | 0.1 | 0.1 | 0.2 | ||
Available-for-sale Securities, Gross Unrealized Losses | 0.2 | 0.2 | 0 | ||
Available-for-sale securities, fair value | 25.3 | 25.3 | 32.2 | ||
Noncurrent [Member] | U.S. corporate bonds [Member]
|
|||||
Investments in available-for-sale securities | |||||
Available-for-sale securities, amortized cost | 17.7 | 17.7 | 19.5 | ||
Available-for-sale securities, gross unrealized gains | 0.1 | 0.1 | 0.2 | ||
Available-for-sale Securities, Gross Unrealized Losses | 0.1 | 0.1 | 0 | ||
Available-for-sale securities, fair value | 17.7 | 17.7 | 19.7 | ||
Noncurrent [Member] | Marketable equity securities [Member]
|
|||||
Investments in available-for-sale securities | |||||
Available-for-sale securities, amortized cost | 10.9 | 10.9 | 32.4 | ||
Available-for-sale securities, gross unrealized gains | 0 | 0 | 0 | ||
Available-for-sale Securities, Gross Unrealized Losses | 0 | 0 | 0 | ||
Available-for-sale securities, fair value | 10.9 | 10.9 | 32.4 | ||
Fair Value, Measurements, Recurring [Member]
|
|||||
Investments in available-for-sale securities | |||||
Available-for-sale securities, fair value | $ 58.8 | $ 58.8 | $ 88.4 |
Supplemental Guarantor/Non-Guarantor Financial Information (Details 2) (USD $)
In Millions, unless otherwise specified |
6 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
Parent Company [Member]
|
Jun. 30, 2012
Parent Company [Member]
|
Jun. 30, 2013
Guarantor Subsidiaries [Member]
|
Jun. 30, 2012
Guarantor Subsidiaries [Member]
|
Jun. 30, 2013
Non-Guarantor Subsidiaries [Member]
|
Jun. 30, 2012
Non-Guarantor Subsidiaries [Member]
|
Jun. 30, 2013
Consolidation, Eliminations [Member]
|
Dec. 31, 2012
Consolidation, Eliminations [Member]
|
|
Cash Flows From Operating Activities | ||||||||||
Net cash provided by (used In) continuing operations | $ 365.9 | $ 725.3 | $ 114.5 | $ 194.6 | $ 496.5 | $ 181.8 | $ (245.1) | $ 348.9 | ||
Net cash (used in) provided by discontinued operations | (34.5) | (49.8) | (8.1) | (1.0) | 0.5 | 5.3 | (26.9) | (54.1) | ||
Net cash provided by (used in) operating activities | 331.4 | 675.5 | 106.4 | 193.6 | 497.0 | 187.1 | (272.0) | 294.8 | ||
Cash Flows From Investing Activities | ||||||||||
Additions to property, plant, equipment and mine development | (166.5) | (426.4) | 0 | 0 | (45.1) | (118.8) | (121.4) | (307.6) | ||
Federal coal lease expenditures | 0 | (89.2) | 0 | (89.2) | 0 | |||||
Changes in accrued expenses related to capital expenditures | (102.6) | 0 | 0 | (2.4) | (100.2) | |||||
Investment in Prairie State Energy Campus | 0 | (6.7) | 0 | (6.7) | 0 | |||||
Proceeds from disposal of assets, net of notes receivable | 123.9 | 12.6 | 0 | 0 | 42.1 | 12.6 | 81.8 | 0 | ||
Purchases of debt securities | (9.7) | (24.3) | 0 | 0 | 0 | 0 | (9.7) | (24.3) | ||
Proceeds from sales and maturities of debt securities | 17.0 | 27.6 | 0 | 0 | 0 | 0 | 17.0 | 27.6 | ||
Proceeds from the maturity of short-term investments | 4.8 | 0 | 0 | 0 | 4.8 | |||||
Contributions to joint ventures | (323.8) | (375.6) | 0 | 0 | 0 | 0 | (323.8) | (375.6) | ||
Distributions from joint ventures | 372.1 | 384.3 | 0 | 0 | 0 | 0 | 372.1 | 384.3 | ||
Advances to related parties | (35.7) | (627.6) | 0 | 0 | 0 | 0 | (35.7) | (627.6) | ||
Repayment of loans from related parties | 18.2 | 618.7 | 0 | 0 | 0 | 0 | 18.2 | 618.7 | ||
Other, net | (3.6) | (1.6) | 0 | 0 | (3.4) | (1.6) | (0.2) | 0 | ||
Net cash used in continuing operations | (105.9) | (508.2) | 0 | 0 | (8.8) | (203.7) | (97.1) | (304.5) | ||
Net cash used in discontinued operations | (0.3) | (7.7) | 0 | 0 | 0 | (1.2) | (0.3) | (6.5) | ||
Net cash used in investing activities | (106.2) | (515.9) | 0 | 0 | (8.8) | (204.9) | (97.4) | (311.0) | ||
Cash Flows From Financing Activities | ||||||||||
Repayments of long-term debt | (215.6) | (280.0) | (167.0) | (266.5) | (0.1) | 0 | (48.5) | (13.5) | ||
Common stock repurchase | 0 | (99.9) | (99.9) | 0 | 0 | |||||
Acquisition of MCG Coal Holdings Pty Ltd noncontrolling interests | 0 | (49.8) | 0 | (49.8) | 0 | |||||
Dividends paid | (45.9) | (46.3) | (45.9) | (46.3) | 0 | 0 | 0 | 0 | ||
Repurchase of employee common stock relinquished for tax withholding | (2.8) | (8.0) | (2.8) | (8.0) | 0 | 0 | 0 | 0 | ||
Excess tax benefits related to share-based compensation | 0 | 3.7 | 3.7 | 0 | 0 | |||||
Other, net | (1.8) | 10.8 | 3.7 | 4.6 | (5.2) | 10.8 | (0.3) | (4.6) | ||
Transactions with affiliates, net | 0 | 0 | 169.8 | 21.7 | (483.0) | 215.5 | 313.2 | (237.2) | ||
Net cash (used in) provided by financing activities | (266.1) | (469.5) | (42.2) | (390.7) | (488.3) | 176.5 | 264.4 | (255.3) | ||
Net change in cash and cash equivalents | (40.9) | (309.9) | 64.2 | (197.1) | (0.1) | 158.7 | (105.0) | (271.5) | ||
Cash and cash equivalents at beginning of period | 558.8 | 799.1 | 269.6 | 283.2 | 0.3 | 0.8 | 288.9 | 515.1 | 0 | 0 |
Cash and cash equivalents at end of period | $ 517.9 | $ 489.2 | $ 333.8 | $ 86.1 | $ 0.2 | $ 159.5 | $ 183.9 | $ 243.6 | $ 0 | $ 0 |
Commitments and Contingencies
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments Unconditional Purchase Obligations As of June 30, 2013, purchase commitments for capital expenditures were $156.0 million, all of which are obligated within the next three years, with $78.0 million obligated in the next 12 months. There were no other material changes to the Company’s commitments from the information provided in Note 24 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. Contingencies From time to time, the Company 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. 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. Gulf Power subsequently 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 $20.6 million for its 2007 cover coal purchases. The court later entered another order awarding Gulf Power prejudgment interest in the amount of $6.9 million plus post-judgment interest. The Company's subsidiary and Gulf Power both appealed and, on June 26, 2013, the U.S. Court of Appeals for the Eleventh Circuit issued its order affirming the District Court's judgment in all respects. The Company and Gulf Power have agreed not to seek judicial review of the Eleventh Circuit's order and the Company intends to pay the judgment during the third quarter of 2013. In connection with the order, the Company recorded a charge for the judgment amount for $20.6 million in "Operating costs and expenses" and $6.9 million in "Interest expense" in the unaudited condensed consolidated statement of operations for the three and six months ended June 30, 2013. 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. Sumiseki Materials Co Ltd. In 2010, the Class B shareholder (noncontrolling interest holder) in Wambo Coal Pty Ltd (Wambo), an Australian subsidiary of the Company, filed a lawsuit in the Supreme Court of New South Wales, Australia, against Wambo alleging the Class B shareholder was entitled to certain dividend payments from Wambo (subject to limited exceptions) and requested payment of those dividends for periods from 2009 to 2012. On March 25, 2013, the Supreme Court issued a judgment in favor of the plaintiff's position that the Class B shareholder was entitled to dividend payments (subject to limited exceptions), thus requiring Wambo to pay dividends to the Class B shareholder for the periods in question. The Supreme Court issued finalized orders on May 3, 2013, including the final calculation of amounts due for dividends during the periods from 2009 to 2012 totaling $29.1 million plus interest of $5.7 million. Amounts of the finalized orders are presented in U.S. dollars at foreign currency exchange rates in effect at June 30, 2013. Wambo has filed a notice of intention to appeal the Supreme Court's decision, and has posted the requisite security of $34.8 million with the court in the form of cash payment into an interest bearing trust account jointly operated by the parties. Because the Supreme Court's order allows for the substitution of that posted cash payment with a bank guarantee from an Australian bank or another form of acceptable security, those funds remain readily available to the Company and have therefore been reflected in "Cash and cash equivalents" in the condensed consolidated balance sheet as of June 30, 2013. Based on information currently available, the Company believes that its subsidiary should be successful in the appeals process, and therefore, has not declared any dividends and continues to reflect the previously allocated earnings to "Noncontrolling interests" in the condensed consolidated balance sheet as of June 30, 2013. If the Supreme Court's ruling is upheld, the Company believes the 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 Patriot Coal Corporation. On October 31, 2007, the Company spun off companies that constituted portions of its former Eastern U.S. Mining operations business segment to form Patriot Coal Corporation (Patriot). The spin-off included eight company-operated mines, two majority-owned joint venture mines and numerous contractor-operated mines serviced by eight coal preparation facilities, along with 1.2 billion tons of proven and probable coal reserves. On July 9, 2012, Patriot and certain of its wholly owned subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Code in the U.S. Bankruptcy Court for the Southern District of New York. The case was subsequently moved to the U.S. Bankruptcy Court for the Eastern District of Missouri. On March 14, 2013, Patriot filed a motion in its bankruptcy proceeding seeking authority to reject its collective bargaining agreements under section 1113 of the Bankruptcy Code and change its obligation to pay benefits it provides to certain of its retirees pursuant to section 1114 of the Bankruptcy Code and transferring the obligation to a voluntary employee benefit association. At the same time, Patriot also filed a declaratory judgment complaint against the Company and one of its subsidiaries seeking a declaration that Section 1(d) of the NBCWA Liabilities Assumption Agreement will not apply to reduce the subsidiary's healthcare benefits funding obligations if Patriot were to be successful under the bankruptcy code in changing the benefits it is required to pay to certain of its retirees under its collective bargaining agreements. On April 5, 2013, Patriot filed a motion for summary judgment with respect to the declaratory judgment complaint. After hearing both motions, the Court granted Patriot's section 1113/1114 motion and, on its own accord, granted Peabody summary judgment on the declaratory judgment complaint. The UMWA has appealed the Court's ruling on the section 1113/1114 motion and Patriot has appealed the Court's grant of the summary judgment motion in Peabody's favor. Patriot and the Official Committee of Unsecured Creditors of Patriot Coal Corporation have issued discovery requests to the Company pursuant to Rule 2004 of the Federal Rules of Bankruptcy Procedure, and the Company is in the process of responding to those requests. 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 the Company, one of its subsidiaries and an unrelated coal company. The lawsuit seeks to have the court obligate the defendants to maintain certain Patriot benefit plans at their current levels and to find the defendants' actions in violation of the Employee Retirement Income Security Act of 1974. On January 7, 2013, the Company defendants filed a motion to dismiss the complaint for failure to state a claim upon which relief can be granted. The plaintiffs thereafter amended their complaint to include new allegations and name two more individuals as plaintiffs. The Company defendants updated their motion to dismiss to respond to the new allegations and filed it with the Court. The Company believes the lawsuit is without merit and will vigorously defend against it. Environmental Claims and Litigation Claims Arising From Historical, Non-Coal Producing Operations. 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 the historical operations of a former affiliate of Gold Fields. Environmental claims for remediation, past costs, future costs, and/or natural resource damages have been asserted against Gold Fields related to historical activities of Gold Fields or a former affiliate. Gold Fields or the former affiliate has been named a potentially responsible party (PRP) at five national priority list sites based on the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA). CERCLA 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 CERCLA sites in and of itself is not a relevant measure of liability because the nature and extent of environmental concerns and costs 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 $61.8 million as of June 30, 2013 and $46.7 million as of December 31, 2012, $23.7 million and $10.6 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 or the former affiliate 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 condensed 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 affirmed the dismissal. The plaintiffs subsequently filed a petition for rehearing en banc, which was denied. The plaintiffs filed a petition for certiorari with the U.S. Supreme Court, which was denied on May 20, 2013. With that denial, the court's dismissal stands and the case is considered closed. Other At times the Company becomes a party to other disputes, including those related to contract miner performance; 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. For example, 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. In addition, in January 2013, the Securities and Exchange Commission (SEC) staff served a subpoena on the Company seeking information and documents relating to the development of Prairie State Energy Campus, a 1,600 megawatt coal-fueled electricity generation plant and adjacent coal mine in Illinois in which the Company owns a 5.06% undivided interest. The Company is cooperating with the SEC's investigation. Based on current information, the Company believes that such other pending or threatened proceedings are likely to be resolved without a material adverse effect on its financial condition, results of operations or cash flows. |
Unaudited Condensed Consolidated Statement of Comprehensive Income (Parenthetical) (Parentheticals) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
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Net change in unrealized holding gains (losses) on available-for-sale securities, tax benefit | $ 3.7 | $ (1.5) | $ (0.1) | $ (8.2) |
Net unrealized (losses) gains on cash flow hedges, tax (benefits) provision | (217.1) | (28.5) | (228.0) | 2.9 |
Amortization of actuarial loss and prior service cost for postretirement plans and workers' compensation obligations, tax provision | $ 8.4 | $ 8.0 | $ 16.7 | $ 16.1 |
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2013
|
Dec. 31, 2012
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Net income | $ 87.1 | $ 67.7 | |
Net income attributable to noncontrolling interest | (3.2) | 0.8 | |
Comprehensive income: | |||
Net change in unrealized holding losses on available-for-sale securities (net of $0.1 tax benefit) | 6.0 | (0.3) | |
Net unrealized losses on cash flow hedges (net of $228.0 tax benefit) | (377.3) | (385.7) | |
Postretirement plans and workers’ compensation obligations (net of $16.7 tax provision) | 14.2 | 28.4 | |
Foreign currency translation adjustment | (74.5) | (73.4) | |
Dividends paid | (45.9) | ||
Share-based Compensation | 28.6 | ||
Write off of excess tax benefits related to share-based compensation | (4.1) | ||
Employee stock purchases | 3.4 | ||
Repurchase of employee common stock relinquished for tax withholding | (2.8) | ||
Distributions to noncontrolling interests | (3.6) | ||
Ending Balance | 4,551.1 | 4,551.1 | 4,938.8 |
Common Stock
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|||
Comprehensive income: | |||
Ending Balance | 2.8 | 2.8 | 2.8 |
Additional Paid-in Capital
|
|||
Comprehensive income: | |||
Share-based Compensation | 28.6 | ||
Write off of excess tax benefits related to share-based compensation | (4.1) | ||
Employee stock purchases | 3.4 | ||
Ending Balance | 2,314.2 | 2,314.2 | 2,286.3 |
Treasury Stock
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Comprehensive income: | |||
Share-based Compensation | |||
Repurchase of employee common stock relinquished for tax withholding | (2.8) | ||
Ending Balance | (464.4) | (464.4) | (461.6) |
Retained Earnings
|
|||
Net income | 66.9 | ||
Comprehensive income: | |||
Dividends paid | (45.9) | ||
Ending Balance | 3,087.4 | 3,087.4 | 3,066.4 |
Accumulated Other Comprehensive Income (Loss)
|
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Comprehensive income: | |||
Net change in unrealized holding losses on available-for-sale securities (net of $0.1 tax benefit) | (0.3) | ||
Net unrealized losses on cash flow hedges (net of $228.0 tax benefit) | (385.7) | ||
Postretirement plans and workers’ compensation obligations (net of $16.7 tax provision) | 28.4 | ||
Foreign currency translation adjustment | (73.4) | ||
Ending Balance | (420.0) | (420.0) | 11.0 |
Noncontrolling Interests
|
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Net income attributable to noncontrolling interest | 0.8 | ||
Comprehensive income: | |||
Distributions to noncontrolling interests | (3.6) | ||
Ending Balance | $ 31.1 | $ 31.1 | $ 33.9 |
Newly Adopted Accounting Standards and Accounting Standards Not Yet Implemented
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6 Months Ended |
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Jun. 30, 2013
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New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Newly Adopted Accounting Standards and Accounting Standards Not Yet Implemented | Newly Adopted Accounting Standards and Accounting Standards Not Yet Implemented Presentation of Unrecognized Tax Benefits In July 2013, the FASB issued accounting guidance requiring entities to present unrecognized tax benefits as a reduction to any related deferred tax assets for net operating losses, similar tax losses or tax credit carryforwards if such settlement is required or expected in the event an uncertain tax position is disallowed. Currently effective U.S. GAAP does not provide explicit guidance on the topic. The new presentation guidance will become effective for interim and annual periods beginning after December 15, 2013 (January 1, 2014 for the Company). While the adoption of this guidance may impact the presentation of unrecognized tax benefits in the Company's consolidated balance sheet, it will not affect the Company's results of operations, financial condition or cash flows. Balance Sheet Offsetting In December 2011, the Financial Accounting Standards Board (FASB) issued accounting guidance, which was further clarified in January 2013, requiring additional information intended to help reconcile existing differences in balance sheet offsetting requirements under U.S. GAAP and International Financial Reporting Standards. While this standard leaves existing guidance surrounding the offsetting of financial assets and liabilities unchanged, it requires several additional disclosures, including gross and net information about instruments and transactions eligible for offset in the balance sheet and instruments and transactions subject to a master netting arrangement or a similar agreement. The guidance applies to the Company's derivatives, which include both non-coal trading derivative financial instruments held for risk management purposes and derivative contracts associated with the Company's trading and brokerage activities. The guidance became effective for the Company for interim and annual reporting periods beginning on or after January 1, 2013. While the adoption of this guidance impacted the Company's disclosures, it did not affect the Company's results of operations, financial condition or cash flows. Non-Coal Trading Derivatives. The Company's non-coal trading derivative financial instruments are transacted in over-the-counter (OTC) markets with financial institutions under International Swaps and Derivatives Association (ISDA) Master Agreements. Those agreements contain symmetrical default provisions which allow for the net settlement of amounts owed by either counterparty in the event of default or contract termination. The Company offsets its non-coal trading asset and liability derivative positions on a counterparty-by-counterparty basis in the condensed consolidated balance sheets, with the fair values of those respective derivatives reflected in “Other current assets,” “Investments and other assets,” “Accounts payable and accrued expenses” and “Other noncurrent liabilities." Though the symmetrical default provisions associated with the Company's non-coal trading derivatives exist at the overall counterparty level across its foreign currency, diesel fuel and explosives hedging strategy derivative contract portfolios, it is the Company's accounting policy to apply counterparty offsetting separately within those derivative contract portfolios for presentation in the condensed consolidated balance sheets because that application is more consistent with the fact that the Company generally net settles its non-coal trading derivatives with each counterparty by derivative contract portfolio on a routine basis. Coal Trading Derivatives. The Company's coal trading assets and liabilities include financial instruments, such as swaps, futures and options, cleared through various commodities exchanges, which involve the daily net settlement of closed positions. The Company is required to post cash collateral, known as variation margin, on exchange-cleared positions that are in a net liability position and entitled to receive variation margin when in a net asset position. The Company also transacts in coal trading financial swaps and options through OTC markets with financial institutions and other non-financial trading entities under ISDA Master Agreements, which contain symmetrical default provisions. Certain of the Company's coal trading agreements with OTC counterparties also contain credit support provisions that may periodically require the Company to post, or entitle the Company to receive, variation margin. Physical coal and freight-related purchase and sale contracts included in the Company's coal trading assets and liabilities are executed pursuant to master purchase and sale agreements that also contain symmetrical default provisions and allow for the netting and setoff of receivables and payables that arise during the same time period. The Company offsets its coal trading asset and liability derivative positions, and variation margin related to those positions, on a counterparty-by-counterparty basis in the condensed consolidated balance sheets, with the fair values of those respective derivatives reflected in “Assets from coal trading activities, net” and “Liabilities from coal trading activities, net." Refer to Note 6. "Derivatives and Fair Value Measurements" and Note 7. "Coal Trading" herein for the additional quantitative disclosures related to this guidance. Accumulated Other Comprehensive Income In June 2011, the FASB issued accounting guidance, which was finalized in February 2013, that introduced new disclosure requirements requesting that entities provide additional information about reclassification adjustments out of accumulated other comprehensive income, including changes in accumulated other comprehensive income balances by component and significant reclassification items. The new disclosure requirements became effective for interim and annual reporting periods beginning after December 15, 2012 (January 1, 2013 for the Company). While the adoption of this guidance impacted the Company's disclosures, it did not affect the Company's results of operations, financial condition or cash flows. Refer to Note 12. "Accumulated Other Comprehensive Income" herein for the additional disclosures related to this guidance. |
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
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Jun. 30, 2012
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Comprehensive income: | ||||
Net change in unrealized losses on available-for-sale securities, tax benefit | $ 3.7 | $ (1.5) | $ (0.1) | $ (8.2) |
Net unrealized losses on cash flow hedges, tax benefit | (217.1) | (28.5) | (228.0) | 2.9 |
Postretirement plans and workers' compensation obligations, tax provision | $ 16.7 |
Supplemental Guarantor/Non-Guarantor Financial Information (Tables)
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Jun. 30, 2013
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Supplemental Consolidated Statements Of Operations [Table Text Block] | Unaudited Supplemental Condensed Consolidating Statements of Operations
Unaudited Supplemental Condensed Consolidating Statements of Operations
Unaudited Supplemental Condensed Consolidating Statements of Operations
Unaudited Supplemental Condensed Consolidating Statements of Operations
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Supplemental Consolidated Statments of Comprehensive Income [Table Text Block] | Unaudited Supplemental Condensed Consolidating Statements of Comprehensive Income
Unaudited Supplemental Condensed Consolidating Statements of Comprehensive Income
Unaudited Supplemental Condensed Consolidating Statements of Comprehensive Income
Unaudited Supplemental Condensed Consolidating Statements of Comprehensive Income
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Supplemental Consolidated Balance Sheets [Table Text Block] | Unaudited Supplemental Condensed Consolidating Balance Sheets
Supplemental Condensed Consolidating Balance Sheets
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Supplemental Consolidated Statements Of Cash Flows [Table Text Block] | Unaudited Supplemental Condensed Consolidating Statements of Cash Flows
Unaudited Supplemental Condensed Consolidating Statements of Cash Flows
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Derivatives and Fair Value Measurements Fair value transfer timing policy (Policies)
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6 Months Ended |
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Jun. 30, 2013
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Fair value transfer policy [Abstract] | |
Fair Value Transfer, Policy [Policy Text Block] | The Company’s policy is to value transfers between levels using the beginning of period valuation. |
Derivatives and Fair Value Measurements (Tables) (Non Coal Trading [Member])
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Non Coal Trading [Member]
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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 June 30, 2013:
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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 six months ended June 30, 2013 and 2012:
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Classification and amount of derivatives, gross | The classification and amount of non-coal trading derivative financial instruments presented on a gross and net basis as of June 30, 2013 and December 31, 2012 are presented in the tables that follow.
See Note 7. "Coal Trading" for information on balance sheet offsetting related to the Company’s coal trading activities. |
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Fair value measured on recurring basis of financial assets and liabilities | Financial Instruments Measured on a Recurring Basis. The following tables set forth the hierarchy of the Company’s net financial asset (liability) positions for which fair value is measured on a recurring basis:
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Carrying amounts and estimated fair values of the Company's debt | The carrying amounts and estimated fair values of the Company’s long-term debt are summarized as follows:
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Accumulated Other Comprehensive Income (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Accumulated Other Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table sets forth the after-tax components of accumulated other comprehensive (loss) income and changes thereto recorded during the six months ended June 30, 2013:
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Schedule of Comprehensive Income (Loss) [Table Text Block] | The following table provides additional information regarding items reclassified out of "Accumulated other comprehensive (loss) income" into earnings during the three and six months ended June 30, 2013:
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Supplemental Guarantor/Non-Guarantor Financial Information Textuals (Details)
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Jun. 30, 2013
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Debt Instrument, Interest Rate, Stated Percentage | 7.875% |
6.00% Senior Notes due November 2018
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Debt Instrument, Interest Rate, Stated Percentage | 6.00% |
6.50% Senior Notes due September 2020
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Debt Instrument, Interest Rate, Stated Percentage | 6.50% |
6.25% Senior Notes due November 2021
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Debt Instrument, Interest Rate, Stated Percentage | 6.25% |
7.875% Senior Notes due November 2026
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Debt Instrument, Interest Rate, Stated Percentage | 7.875% |
7.375% Senior Notes due November 2016
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Debt Instrument, Interest Rate, Stated Percentage | 7.375% |
Income Taxes Details Textuals (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
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Jun. 30, 2012
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Income Tax Contingency [Line Items] | ||||
Income Tax Benefit (Expense) | $ 184.7 | $ 38.2 | $ 181.0 | $ (36.2) |
Remeasurement of foreign income taxes | (37.1) | (13.8) | (35.5) | (4.9) |
ATO Proposed Assessment | 70.2 | 70.2 | ||
ATO Proposed Assessment Tax | 48.7 | 48.7 | ||
ATO Proposed Assessment Penalties and Interest | 21.5 | 21.5 | ||
Deposit Assets | 35.1 | 35.1 | ||
Capital Loss Carryforward [Member]
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Income Tax Contingency [Line Items] | ||||
Income Tax Reconciliation, Change in Deferred Tax Assets Valuation Allowance | $ 25.5 |