-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BymK9W44fnW6+8TpFZtqrwl5uzfWYoR1if0L4gKCEp/PewgcSzZoIatxyRHBhpSL 0XnlQ897WCypDJ0Gj7kiGw== 0000037748-10-000025.txt : 20100430 0000037748-10-000025.hdr.sgml : 20100430 20100430171425 ACCESSION NUMBER: 0000037748-10-000025 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 6 CONFORMED PERIOD OF REPORT: 20100430 FILED AS OF DATE: 20100430 DATE AS OF CHANGE: 20100430 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MASSEY ENERGY CO CENTRAL INDEX KEY: 0000037748 STANDARD INDUSTRIAL CLASSIFICATION: BITUMINOUS COAL & LIGNITE SURFACE MINING [1221] IRS NUMBER: 950740960 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-07775 FILM NUMBER: 10788745 BUSINESS ADDRESS: STREET 1: 4 NORTH 4TH STREET CITY: RICHMOND STATE: VA ZIP: 23219 BUSINESS PHONE: 9493492000 MAIL ADDRESS: STREET 1: 4 NORTH 4TH STREET CITY: RICHMOND STATE: VA ZIP: 23219 FORMER COMPANY: FORMER CONFORMED NAME: FLUOR CORP/DE/ DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: FLUOR CORP LTD DATE OF NAME CHANGE: 19710624 10-Q/A 1 form20100331qa.htm AMENDMENT NO. 1 TO FORM 10-Q/A form20100331qa.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 10-Q/A
Amendment No. 1

 (Mark One)
x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended March 31, 2010
OR
 
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from                      to                     
 
Commission File No. 001-07775
 
MASSEY ENERGY COMPANY
(Exact name of registrant as specified in its charter)
   
Delaware
95-0740960
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification Number)
   
4 North 4th Street, Richmond, Virginia
23219
(Address of principal executive offices)
(Zip Code)
 
(804) 788-1800
(Registrant’s telephone number, including area code)
 
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (check one):
 
 
Large accelerated filer x
Accelerated filer ¨
 
Non-accelerated filer ¨ (Do not check if a smaller reporting company)
Smaller reporting company ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

As of April 23, 2010 there were 102,963,574 shares of common stock, $0.625 par value, outstanding.
 
 

 
 
EXPLANATORY NOTE
 
 
The purpose of this amendment on Form 10-Q/A to Massey Energy Company’s quarterly report on Form 10-Q for the period ended March 31, 2010, filed with the Securities and Exchange Commission on April 30, 2010 (“Form 10-Q”), is solely to furnish Exhibit 101 to the Form 10-Q, as required by Rule 405 of Regulation S-T. Due to an inadvertent error in the utilization of the EDGAR filing software used by the Company, Exhibit 101 was omitted from the Form 10-Q filing.
 
No other changes have been made to the Form 10-Q. This Form 10-Q/A speaks as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the Form 10-Q.
 
Pursuant to Rule 406T of Regulation S-T, the interactive data files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.
 

 
1

 
 
Item 6. Exhibits

 
10.1*
Amendment to Change in Control Severance Agreement between Massey Energy Company and Don. L. Blankenship dated February 16, 2010 [filed herewith]
10.2*
Amendment to Change in Control Severance Agreement between Massey Energy Company and J. Christopher Adkins dated February 16, 2010 [filed herewith]
10.3*
Amendment to Change in Control Severance Agreement between Massey Energy Company and Michael K. Snelling dated February 16, 2010 [filed herewith]
10.4*
Amendment to Change in Control Severance Agreement between Massey Energy Company and Eric B. Tolbert dated February 16, 2010 [filed herewith]
31.1*
Certification of Chief Executive Officer, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 [filed herewith]
31.2*
Certification of Chief Financial Officer, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 [filed herewith]
32.1*
Certification of Chief Executive Officer pursuant to 18 U.S.C., Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 [furnished herewith]
32.2*
Certification of Chief Financial Officer pursuant to 18 U.S.C., Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 [furnished herewith]
101
Interactive Data File (Quarterly Report on Form 10-Q, for the quarterly period ended March 31, 2010, furnished in XBRL (eXtensible Business Reporting Language)).
 
Attached as Exhibit 101 to this report are the following documents formatted in XBRL:  (i) the Condensed Consolidated Statements of Income for the three months ended March 31, 2010 and 2009, (ii) the Condensed Consolidated Balance Sheets at March 31, 2010 and December 31, 2009, (iii) the Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2010 and 2009 and (iv) the Notes to Condensed Consolidated Financial Statements, tagged as blocks of text. Users of this data are advised pursuant to Rule 406T of Regulation S-T that this interactive data file is deemed not filed or part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of section 18 of the Securities and Exchange Act of 1934, and otherwise is not subject to liability under these sections.
 
* Filed previously

 
2

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

                                           
                                                                                       
                  
   MASSEY ENERGY COMPANY
   (Registrant)
   
 Date:  April 30, 2010  /s/ Richard R. Grinnan
   Richard R. Grinnan
   Vice President and Secretary
   

 
3

 
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Massey&#8217;s then subsidiary, Wellmore Coal Corporation (&#8220;Wellmore&#8221;), declared force majeure under its coal supply agreement with Harman Mining Corporation (&#8220;Harman&#8221;) and reduced the amount of coal to be purchased from Harman.&#160;&#160;On October 29, 1998, Harman and its sole shareholder sued A.T. Massey and five of its other subsidiaries (the &#8220;Massey Defendants&#8221;) in the Circuit Court of Boone County, West Virginia, alleging that the Massey Defendants tortiously interfered with Wellmore&#8217;s agreement with Harman, causing Harman to go out of business.&#160;&#160;On August 1, 2002, the jury awarded the plaintiffs $50 million in compensatory and punitive damages. On October 24, 2006, the Massey Defendants timely filed their Petition for Appeal to the Supreme Court of Appeals of West Virginia (&#8220;WV Supreme Court&#8221;).&#160;&#160;On November 2 1, 2007, the WV Supreme Court issued a 3-2 majority opinion reversing the judgment against the Massey Defendants and remanding the case to the Circuit Court</font></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;</font></div> <div id="PGBRK_0" style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"> <div id="FTR_1"> <div id="GLFTR_2" style="WIDTH: 100%" align="left"> </div> </div> <div id="PN_3" style="PAGE-BREAK-AFTER: always"> <div style="TEXT-ALIGN: center; WIDTH: 100%"> </div> <div style="TEXT-ALIGN: center; WIDTH: 100%"> <hr style="COLOR: black" noshade="noshade" size="2"/> </div> </div> <div id="HDR_4" style="TEXT-ALIGN: justify"> <div id="GLHDR_5" style="WIDTH: 100%" align="right"> </div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">of Boone County with directions to enter an order dismissing the case, with prejudice, in its entirety.&#160;&#160;The Harman plaintiffs filed motions asking the WV Supreme Court to conduct a rehearing in the case.&#160;&#160;On January 24, 2008, the WV Supreme Court decided to rehear the case, which was re-argued on March 12, 2008.&#160;&#160;On April 3, 2008, the WV Supreme Court again reversed the judgment against the Massey Defendants and remanded the case with direction to enter an order dismissing the case, with prejudice, in its entirety. In July 2008, the Harman plaintiffs petitioned the United States Supreme Court (the &#8220;U.S. Supreme Court&#8221;) to review the WV Supreme Court&#8217;s dismissal of their claims.</font></div> </div> < div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">In December 2008, the U.S. Supreme Court agreed to review the case.&#160;&#160;The U.S. Supreme Court granted review based on the question of whether a justice of the WV Supreme Court should have recused himself from the appeal. The U.S. Supreme Court found that the justice should have recused himself and ruled on June 8, 2009 that the matter should be reheard by the WV Supreme Court.&#160;&#160;The WV Supreme Court heard oral arguments on the matter on September 8, 2009, and reversed the lower court&#8217;s decision on November 12, 2009.&#160;&#160;The Harman plaintiffs subsequently requested that the WV Supreme Court reconsider its decision; the WV Supreme Court denied that request on March 11, 2010.&# 160;&#160;The $72 million of cash we were required to post as collateral for an appeal bond was returned to us in March 2010.</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">West Virginia Flooding</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Since August 2004, five of our subsidiaries have been sued in six civil actions filed in the Circuit Courts of Boone, McDowell, Mingo, Raleigh, Summers and Wyoming Counties, West Virginia, for alleged property damages and personal injuries arising out of flooding on or about May 2, 2002.&#160;&#160;These complaints cover approximately 350 plaintiffs seeking unquantified compensatory and punitive damages from approximately 35 defendants.&#160;&#160;Two of these cases have been dismissed without prejudice for failure to prosecute. The other four cases are active.</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Since May 2006, we and twelve of our subsidiaries have been sued in three civil actions filed in the Circuit Courts of Logan and Mingo Counties, West Virginia, for alleged property damages and personal injuries arising out of flooding between May 30 and June 4, 2004. Four of our subsidiaries have been dismissed without prejudice from one of the Logan County cases . These complaints cover approximately 400 plaintiffs seeking unquantified compensatory and punitive damages from approximately 52 defendants.</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">We believe the remaining cases that have not been settled will be resolved without a material adverse impact on our cash flows, results of operations or financial condition.</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">West Virginia Trucking</font></div> <div style="TEXT- INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Since January 2003, an advocacy group and residents in Boone, Kanawha, Mingo and Raleigh Counties, West Virginia, filed 17 suits in the Circuit Courts of Kanawha and Mingo Counties, West Virginia, against twelve of our subsidiaries.&#160;&#160;Plaintiffs alleged that defendants illegally transported coal in overloaded trucks, causing damage to state roads, thereby interfering with plaintiffs&#8217; use and enjoyment of their properties and their right to use the public roads. Plaintiffs seek injunctive relief and compensatory and punitive damages.&#160;&#160;The WV Supreme Court referred the consolidated lawsuits, and similar lawsuits against other coal and transportation companies not involving our subsidiaries, to the Circuit Cou rt of Lincoln County, West Virginia, to be handled by a mass litigation panel judge. Plaintiffs filed motions requesting class certification. On June 7, 2007, plaintiffs voluntarily dismissed their public nuisance claims seeking monetary damages for road and bridge repairs.&#160;&#160;Plaintiffs also agreed to an order limiting any damages for nuisance to two years prior to the filing of any suit.&#160;&#160;A motion to dismiss any remaining public nuisance claims was restricted by plaintiffs and argued at hearings on December 14, 2007 and June 25, 2008.&#160;&#160;No rulings on these matters have been made.&#160;&#160;Defendants filed a motion requesting that the mass litigation panel judge recommend to the WV Supreme Court that the cases be sent back to the circuit courts of origin for resolution.&#160;&#160;That motion was verbally denied as to those cases in which our subsidiaries are defendants, and a class certification hearing was held on October 21 , 2009.&#160;&#160;To date, no decision has been rendered by the WV Supreme Court on the class certification issues.&#160;&#160;No date has been set for trial.&#160;&#160;We believe we have insurance coverage applicable to these items and that they will be resolved without a material adverse impact on our cash flows, results of operations or financial condition.</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div id="PGBRK_6" style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"> <div id="FTR_7"> <div id="GLFTR_8" style="WIDTH: 100%" align="left"> </div> </div> <div id="PN_9" style="PAGE-BREAK-AFTER: always"> <div style="TEXT-ALIGN: center; WIDTH: 100%"> </div> <div style="TEXT-ALIGN: center; WIDTH: 100%"> <hr style="COLOR: black" noshade="noshade" size="2"/> </div> </div> <div id="HDR_10"> <div id="GLHDR_11" style="WIDTH: 100%" align="right"> </div> </div> </div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Well Water Suits</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Since September 2004, approximately 738 plaintiffs have filed approximately 400 suits against us and our subsidiary, Rawl Sales &amp; Processing Co., in the Circuit Court of Mingo County, West Virginia (&#8220;Mingo Court&#8221;), for alleged property damage and pe rsonal injuries arising out of slurry injection and impoundment practices allegedly contaminating plaintiffs&#8217; water wells. Plaintiffs seek injunctive relief and compensatory damages in excess of $170 million and unquantified punitive damages.&#160;&#160;Specifically, plaintiffs are claiming that defendants&#8217; activities during the period of 1978 through 1987 rendered their property valueless and request monetary damages to pay, inter alia, the value of their property and future water bills.&#160;&#160;In addition, many plaintiffs are also claiming that their exposure to the contaminated well water caused neurological injury or physical injury, including cancers, kidney problems and gall stones.&#160;&#160;Finally, all plaintiffs claimed entitlement to medical monitoring for the next 30 years and have requested unliquidated compensatory damages for pain and suffering, annoyance and inconvenience and legal fees.&#160;&#160;On April 30, 2009, the Min go Court held a mandatory settlement conference. At that settlement conference, all plaintiffs agreed to settle and dismiss their medical monitoring claims.&#160;&#160;Additionally, 180 plaintiffs agreed to settle all of their remaining claims and be dismissed from the case.&#160;&#160;The Mingo Court is currently considering whether to dismiss the claims of an additional 179 plaintiffs who did not attend the mandatory settlement conference.&#160;&#160;All settlements to date will be funded by insurance proceeds.&#160;&#160;The plaintiffs are challenging the medical monitoring settlement.&#160;&#160;A motion to enforce the medical monitoring settlement has been filed.&#160;&#160;No ruling has been made.&#160;&#160;There are currently 556 plaintiffs remaining.&#160;&#160;As a result of the recent disqualification of Judge Thornsbury, on account of having been engaged as a lawyer in the 1980s on a matter on behalf of a Massey subsidiar y adverse to one of the plaintiffs, the WV Supreme Court reassigned all the cases to Judge Thomas Evans.&#160;&#160;Recently, Judge Evans requested the WV Supreme Court refer the cases to the statutory mass litigation panel for further proceedings.&#160;&#160;The WV Supreme Court ordered all the cases to be transferred to the mass litigation panel.&#160;&#160;No trial date has been set, nor has the mass litigation panel issued any orders as to how the cases will be resolved or what judge(s) will be responsible for these cases.</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Beginning in December 2008, we and certain of our subsidiaries along with several other companies were sued in numerous actions in Boone County, West Virg inia involving approximately 350 plaintiffs alleging well water contamination resulting from coal mining operations.&#160;&#160;Trial is scheduled for May 2, 2010.</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">We do not believe there was any contamination caused by our activities or that plaintiffs suffered any damage and, therefore, we do not believe we have a probable loss related to this matter.&#160;&#160;We plan to vigorously contest these claims.&#160;&#160;We believe that we have insurance coverage applicable to these matters and have initiated litigation against our insurers to establish that coverage.&#160;&#160;At this time, we believe that the litigation by the plaintiffs will be resolved without a mater ial adverse impact on our cash flows, results of operations or financial condition.</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Surface Mining Fills</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Since September 2005, three environmental groups sued the United States Army Corps of Engineers (&#8220;Corps&#8221;) in the United States District Court for the Southern District of West Virginia (the &#8220;District Court&#8221;), asserting the Corps unlawfully issued permits to four of our surface mines to construct mining fills. The suit alleges the Corps failed to comply with the requirements of both Section 404 of the Clean Water Act and the National Environmental Policy Act, including preparing environmental impact statements for individual permits. We intervened in the suit to protect our interests. On March 23, 2007, the District Court rescinded four of our subsidiaries&#8217; permits, resulting in the temporary suspension of mining at these surface mines. We appealed that ruling to the United States Court of Appeals for the Fourth Circuit (the &#8220;Fourth Circuit Court&#8221;). On April 17, 2007, the District Court partially stayed its ruling, permitting mining to resume in certain fills that were already under construction. On June 14, 2007, the District Court issued an additional ruling, finding the Corps improperly approved placement of sediment ponds in streams below fills on the four permits in question.&#160;&#160;The Distr ict Court subsequently modified its ruling to allow these ponds to remain in place, as the ponds and fills have already been constructed.&#160;&#160;The District Court&#8217;s ruling could impact the issuance of permits for the placement of sediment ponds for future operations. If the permits for the fills or sediment ponds are ultimately held to be unlawfully issued, production could be affected at these surface mines, and the process of obtaining new Corps permits for all surface mines could become more difficult. We appealed both rulings to the Fourth Circuit Court.&#160;&#160;On February 13, 2009, the Fourth Circuit Court reversed the prior rulings of the District Court and remanded the matter for further proceedings. On March 30, 2009, the plaintiffs requested that the Fourth Circuit Court reconsider the case.&#160;&#160;The </font></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">< font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;</font></div> <div id="PGBRK_12" style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"> <div id="FTR_13"> <div id="GLFTR_14" style="WIDTH: 100%" align="left"> </div> </div> <div id="PN_15" style="PAGE-BREAK-AFTER: always"> <div style="TEXT-ALIGN: center; WIDTH: 100%"> </div> <div style="TEXT-ALIGN: center; WIDTH: 100%"> <hr style="COLOR: black" noshade="noshade" size="2"/> </div> </div> <div id="HDR_16"> <div id="GLHDR_17" style="WIDTH: 100%" align="right"> </div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">request was denied on May 20, 2009. On August 26, 2009, the plaintiffs filed their request with the U.S. Supreme Court to review the Fourth Circuit Court&#8217;s decision. Our subsidiaries&#8217; response is due May 10, 2010; the U.S. Supreme Court then will decide whether to accept the case for review.</font></div> </div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Customer Disputes</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">We have customers who claim they did not receive, or did not timely receive, all of the coal required to be shipped to them during 2008 (&#8220;unshipped tons&#8221;). In such cases, it is typical for a customer and coal producer to agree upon a schedule for shipping unshipped tons in subsequent years.&#160;&#160;A few of our customers, however, filed claims or notified us of potential claims for cover damages, which damages are equal to the difference between the contract price of the coal that was not delivered and the market price of replacement coal or comparable quality coal. We resolved a number of these claims in 2009 and early 2010, while discussions with other customers remain ongoing.</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">We believe we have strong defenses to the remaining claims for cover damages.&#160;&#160;&#160;In many cases, there was untimely or insufficient delivery of railcars by the rail carrier or the customer.&#160;&#160;In other cases, factors beyond our control caused production or shipment problems.&#160;&#160;Additionally, we believe that certain customers previously agreed to accept unshipped tons in subsequent years.&#160;&#160;We believe that all of these factors, and other factors, provide defenses to claims or potential claims for unshipped tons.</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Separately, we are currently in litigation with one customer regarding whether or not binding contracts for the sale of coal were reached.&#160;&#160;We maintain that this customer improperly terminated a signed, higher-priced contract; the customer argues that it was only req uired to purchase coal under a purported agreement reached by email. On February 12, 2010, we received a decision from an arbitration panel awarding this customer $10.5 million on the grounds that the purported agreement by email was valid and that the higher-priced contract was invalid.&#160;&#160;We believe that the arbitration panel&#8217;s decision as to the validity of the higher-priced contract was beyond the panel&#8217;s jurisdiction of the award, which amounts to $8.2 million, and have challenged that decision in federal court.&#160;&#160;We will vigorously pursue this challenge and do not consider this loss as probable.&#160;&#160;We have paid $2.3 million for the award relating to the panels&#8217; decision that the agreement by email was valid.</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="ju stify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">We believe that we have strong defenses to the other claims and potential claims and further feel that many or all of these claims may be resolved without trial. We have recorded an accrual for our best estimate of probable losses related to these matters. While we believe that all of these matters discussed above will be resolved without a material adverse impact on our cash flows, results of operations or financial condition, it is reasonably possible that our judgments regarding some or all of these matters could change in the near term. We believe the aggregate exposure related to these claims in excess of our accrual is up to $60 million of charges that would affect our future operating results and financial position.</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGI N-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Spartan Unfair Labor Practice Matter &amp; Related Age Discrimination Class Action</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">In 2005, the United Mine Workers of America (&#8220;UMWA&#8221;) filed an unfair labor practice charge with the National Labor Relations Board (&#8220;NLRB&#8221;) alleging that one of our subsidiaries, Spartan Mining Company (&#8220;Spartan&#8221;), discriminated on the basis of anti-union animus in its employment offers.&#160;&#160;The NLRB issued a complaint and an NLRB Administrative Law Judge (&#8220;ALJ&#8221;) issued a recommended decisio n making detailed findings that Spartan committed a number of unfair labor practice violations and awarding, among other relief, back pay damages to union discriminatees.&#160;&#160;On September 30, 2009, the NLRB upheld the ALJ&#8217;s recommended decision.&#160;&#160;Spartan has appealed the NLRB&#8217;s decision to the United States Court of Appeals for the Fourth Circuit. We have no insurance coverage applicable to this unfair labor practice matter; however, its resolution is not expected to have a material impact on our cash flows, results of operations or financial condition.</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Other Legal Proceedings</font></div> <div style="TEXT-INDE NT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">We are parties to a number of other legal proceedings, incident to our normal business activities.&#160;&#160;These include contract dispute, personal injury, property damage and employment matters.&#160;&#160;While we cannot predict the outcome of these proceedings, based on our current estimates we do not believe that any liability arising from these matters individually or in the aggregate should have a material adverse impact upon our consolidated cash flows,</font></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;</font></div> <div id="PGBRK_18" s tyle="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"> <div id="FTR_19"> <div id="GLFTR_20" style="WIDTH: 100%" align="left"> </div> </div> <div id="PN_21" style="PAGE-BREAK-AFTER: always"> <div style="TEXT-ALIGN: center; WIDTH: 100%"> </div> <div style="TEXT-ALIGN: center; WIDTH: 100%"> <hr style="COLOR: black" noshade="noshade" size="2"/> </div> </div> <div id="HDR_22"> <div id="GLHDR_23" style="WIDTH: 100%" align="right"> </div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">results of operations or financial condition.&#160;&#160;It is possible, however, that the ultimate liabilities in the future with respect to these lawsuits and claims, in the aggregate, may be materially adverse to our cash flows, results of operations or financial condition.</font></div> </div> </div> 382000 471000 3089000 3129000 1769026000 1256283000 1303000 1303000 5167000 5092000 1019000 13635000 77157000 40882000 542963000 538058000 64207000 71618000 23083000 19339000 -466759000 0 -9204000 11238000 62365000 63590000 1831344000 1314565000 212005000 121577000 <div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(15)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Subsequent Events</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Upper Big Branch Mine</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"> <div style="TEXT-INDENT: 27pt; DISPLAY: b lock; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">On April 5, 2010, an explosion occurred at the Upper Big Branch mine of our Performance resource group, tragically resulting in the deaths of 29 members.&#160;&#160;The Federal Mine Safety and Health Administration and the State of West Virginia have begun a joint investigation into the cause of the explosion.&#160;&#160;We also have commenced our own investigation.&#160;&#160;We believe these investigations will continue for the foreseeable future, and we cannot assure you as to their outcome, including whether we become subject to possible civil penalties or enforcement actions.&#160;&#160;The mine will be closed for an extended period of time, the length of which we cannot predict at this time. While further analysis will be required, we estimate the range of loss to be $80 million to $150 million for charges related to the benefits being provided to the families of the fallen miners, costs associated with the rescue and recovery efforts, insurance deductibles, and possible legal and other contingencies.&#160;&#160;It is possible that the total costs incurred related to this tragedy could exceed these estimates.&#160;&#160;In addition, the book value of equipment, mine and longwall panel development and mineral rights at the mine potentially impacted by the disaster is approximately $62 million.&#160;&#160;We will assess these assets for possible impairment once full access to the mine is restored but we do expect to recover much of the equipment.&#160;&#160;We expect that certain of these charges will be recorded in the second quarter of 2010; however, we will continue to review the amount of any necessary accruals, potential asset impairments, or other related expenses and record the charges in the period in which the determination is made and an adjustment is required.</fon t></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">We self-insure our underground mining equipment, including our longwalls.&#160;&#160;At the Upper Big Branch mine we were operating a longwall and four underground miner sections. We do not currently carry business interruption insurance for the Upper Big Branch mine.&#160;&#160;We have third-party insurance coverage that applies to litigation risk, which coverage we believe will apply to litigation stemming from the Upper Big Branch mine explosion.</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLA Y: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Our sales plan for the balance of 2010 was to ship approximately 1.6&#160;million tons of metallurgical coal from the Upper Big Branch mine.&#160;&#160;In order to offset some of the production lost from the Upper Big Branch mine, we developed plans to increase production at other locations.&#160;&#160;These plans include more Saturday production (six days a week versus five) at all currently operating metallurgical coal mines and the addition of three continuous miner sections at existing mines within our Elk Run resource group.&#160;&#160;In total, we estimate these efforts will result in approximately 1.3 million tons of annualized metallurgical coal production.&#160;&#160;Some of the coal produced through these efforts may not be of similar enough qualities to meet the quality specifications our metallurgical coal sales contracts previously fulfilled with coal from the Upper Big Branch mine.</f ont></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Following the Upper Big Branch mine tragedy, several stockholder derivative suit proceedings have been filed naming us as a nominal defendant.&#160;&#160;Each of the current and certain former members of the Board of Directors and certain of our officers have been named as defendants (the &#8220;Defendants&#8221;). Two survivorship suits also have been filed against us. We and the Defendants have insurance coverage applicable to these proceedings.&#160;&#160;While we cannot predict the outcome of any of these proceedings, based on our current estimates we do not believe that liabilities arising from these proceedings individually or in the aggregate should have a material adverse impact upon our consolidated cash flows, results of operations or financial condition.&#160;&#160;It is possible, however, that the ultimate liabilities incurred in the future with respect to these proceedings, in the aggregate, may be materially adverse to our cash flows, results of operations or financial condition.</font></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div> </div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Cumberland Acquisition</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Time s New Roman; FONT-SIZE: 10pt">On April 19, 2010, we completed the acquisition of Cumberland for a purchase price of $640 million in cash, subject to working capital adjustments, and 6,519,034 shares of our Common Stock. Cumberland was one of the largest privately held coal producers in the United States.&#160;&#160;The Cumberland operations include primarily underground coal mines in Southwestern Virginia and Eastern Kentucky. We obtained an estimated 416 million tons of contiguous coal reserves, a preparation plant in Kentucky served by the CSX railroad and a preparation plant in</font></div> <div id="PGBRK_0" style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"> <div id="FTR_1"> <div id="GLFTR_2" style="WIDTH: 100%" align="left"> </div> </div> <div id="PN_3" style="PAGE-BREAK-AFTER: always"> <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline ; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">18</font></div> <div style="TEXT-ALIGN: center; WIDTH: 100%"> <hr style="COLOR: black" noshade="noshade" size="2"/> </div> </div> <div id="HDR_4"> <div id="GLHDR_5" style="WIDTH: 100%" align="right"> </div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Virginia served by the Norfolk Southern railroad.&#160;&#160;We did not incur or assume any third-party debt as a result of the acquisition of Cumberland.&#160;&#160;The acquisition of Cumberland will be accounted for as a business combination as required by current accounting guidance. The purchase accounting has not been completed as of the date the financial statements were issued.</font></div> </div> </div> <div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(12)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Derivative Instruments</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Upon entering into each coal sales and coal purchase contract, we evaluate each of our contracts to determine if they qualify for the normal purchase normal sale (&#8220;NPNS&#8221;) exception prescribed by current accounting guidance.&#160;&#160;We use coal purch ase contracts to supplement our produced and processed coal in order to provide coal to meet customer requirements under sales contracts.&#160;&#160;We are exposed to certain risks related to coal price volatility.&#160;&#160;The purchases and sales contracts we enter into allow us to mitigate a portion of the underlying risk associated with coal price volatility.&#160;&#160;The majority of our contracts qualify for the NPNS exception and therefore are not accounted for at fair value.&#160;&#160;For those contracts that do not qualify for the NPNS exception at inception or lose their designation at some point during the duration of the contract, the contracts are required to be accounted for as derivative instruments and must be recognized as assets or liabilities and measured at fair value.&#160;&#160;Those contracts that do not qualify for the NPNS exception have not been designated as cash flow or fair value hedges and, accordingly, the net change in fai r value is recorded in current period earnings.&#160;&#160;Our coal sales and coal purchase contracts that do not qualify for the NPNS exception as prescribed by current accounting guidance are offset on a counterparty-by-counterparty basis for derivative instruments executed with the same counterparty under a master netting arrangement.</font></div> <div style="TEXT-INDENT: 27pt; 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Examples include land, building and production equipment. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures. This element may be used as a single block of text to include the entire PPE disclosure, including data and tables. 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No authoritative reference available. false 9 1 dei_EntityFilerCategory dei false na duration na No definition available. false false false false false false false false false false false false 1 false false false false 0 0 Large Accelerated Filer Large Accelerated Filer false false false 2 false false false false 0 0 false false false Indicate whether the registrant is one of the following: (1) Large Accelerated Filer, (2) Accelerated Filer, (3) Non-accelerated Filer, or (4) Smaller Reporting Company. Definitions of these categories are stated in Rule 12b-2 of the Exchange Act. This information should be based on the registrant's current or most recent filing containing the related disclosure. No authoritative reference available. false 10 1 dei_EntityPublicFloat dei false credit instant monetary No definition available. false false false false false false false false false false false false 1 false false false false 0 0 false false false 2 true true false false 1670076824 1670076824 false false false State aggregate market value of voting and non-voting common equity held by non-affiliates computed by reference to price at which the common equity was last sold, or average bid and asked price of such common equity, as of the last business day of registrant's most recently completed second fiscal quarter. The public float should be reported on the cover page of the registrants form 10K. No authoritative reference available. false 11 1 dei_EntityCommonStockSharesOutstanding dei false na instant shares No definition available. false false false false false false false false false false false false 1 false true false false 96454056 96454056 false false false 2 false false false false 0 0 false false false Indicate number of shares outstanding of each of registrant's classes of common stock, as of latest practicable date. Where multiple classes exist define each class by adding class of stock items such as Common Class A [Member], Common Class B [Member] onto the Instrument [Domain] of the Entity Listings, Instrument No authoritative reference available. false 12 1 dei_DocumentFiscalYearFocus dei false na duration positiveinteger No definition available. false false false false false false false false false false false false 1 false true false false 2010 2010 false false false 2 false false false false 0 0 false false false This is focus fiscal year of the document report in CCYY format. For a 2006 annual report, which may also provide financial information from prior periods, fiscal 2006 should be given as the fiscal year focus. Example: 2006. No authoritative reference available. false 13 1 dei_DocumentFiscalPeriodFocus dei false na duration na No definition available. false false false false false false false false false false false false 1 false false false false 0 0 Q1 Q1 false false false 2 false false false false 0 0 false false false This is focus fiscal period of the document report. For a first quarter 2006 quarterly report, which may also provide financial information from prior periods, the first fiscal quarter should be given as the fiscal period focus. Values: FY, Q1, Q2, Q3, Q4, H1, H2, M9, T1, T2, T3, M8, CY. No authoritative reference available. false false 2 12 false NoRounding NoRounding UnKnown false true XML 18 R4.xml IDEA: Condensed Consolidated Statements of Cash Flows 2.0.0.10 false Condensed Consolidated Statements of Cash Flows (USD $) 003000 - Statement - Condensed Consolidated Statements of Cash Flows true false In Thousands false false 1 usd $ false false u000 Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 u001 Standard http://www.xbrl.org/2003/instance shares xbrli 0 u002 Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 false 2 usd $ false false u000 Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 u001 Standard http://www.xbrl.org/2003/instance shares xbrli 0 u002 Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 3 1 us-gaap_NetCashProvidedByUsedInOperatingActivitiesAbstract us-gaap true na duration string No definition available. false false false false false true false false false false false false 1 false false false false 0 0 false false false 2 false false false false 0 0 false false false The net cash from (used in) all of the entity's operating activities, including those of discontinued operations, of the reporting entity. Operating activities include all transactions and events that are not defined as investing or financing activities. Operating activities generally involve producing and delivering goods and providing services. Cash flows from operating activities are generally the cash effects of transactions and other events that enter into the determination of net income. false 4 2 us-gaap_NetIncomeLossAvailableToCommonStockholdersBasic us-gaap true credit duration monetary No definition available. false false false false false false false false false false false totallabel false 1 true true false false 33626000 33626 false false false 2 true true false false 43426000 43426 false false false Net income after adjustments for dividends on preferred stock (declared in the period) and/or cumulative preferred stock (accumulated for the period). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 9 true 5 2 us-gaap_AdjustmentsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivitiesAbstract us-gaap true na duration string No definition available. false false false false false true false false false false false false 1 false false false false 0 0 false false false 2 false false false false 0 0 false false false No definition available. false 6 3 us-gaap_DepreciationDepletionAndAmortization us-gaap true debit duration monetary No definition available. false false false false false false false false false false false false 1 false true false false 64469000 64469 false false false 2 false true false false 72639000 72639 false false false The aggregate expense recognized in the current period that allocates the cost of tangible assets, intangible assets, or depleting assets to periods that benefit from use of the assets. No authoritative reference available. false 7 3 us-gaap_ShareBasedCompensation us-gaap true debit duration monetary No definition available. false false false false false false false false false false false false 1 false true false false 2709000 2709 false false false 2 false true false false 3290000 3290 false false false The aggregate amount of noncash, equity-based employee remuneration. This may include the value of stock options, amortization of restricted stock, and adjustment for officers compensation. As noncash, this element is an add back when calculating net cash generated by operating activities using the indirect method. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 8 3 us-gaap_AmortizationOfDebtDiscountPremium us-gaap true debit duration monetary No definition available. false false false false false false false false false false false false 1 false true false false 5013000 5013 false false false 2 false true false false 4713000 4713 false false false The component of interest income or expense representing the periodic increase in or charge against earnings to reflect amortization of debt discounts and premiums over the life of the related debt instruments, which are liabilities of the entity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 21 -Paragraph 16 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 8 -Article 5 false 9 3 us-gaap_DeferredIncomeTaxExpenseBenefit us-gaap true debit duration monetary No definition available. false false false false false false false false false false false terselabel false 1 false true false false 3089000 3089 false false false 2 false true false false 3129000 3129 false false false The component of income tax expense for the period representing the net change in the entity's deferred tax assets and liabilities pertaining to continuing operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 6 -Section I -Subsection 7 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 45 -Subparagraph b Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 289 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 false 10 3 us-gaap_GainLossOnSaleOfPropertyPlantEquipment us-gaap true credit duration monetary No definition available. false false false false false false false false false false false false 1 false true false false -1019000 -1019 false false false 2 false true false false -9318000 -9318 false false false The difference between the sale price or salvage price and the book value of a property, plant, and equipment asset that was sold or retired during the reporting period. This element refers to the gain (loss). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 11 3 mee_GainOnReserveExchanges mee false na duration monetary Gain or loss recorded from exchange of coal properties, includes the realized gains (losses) on the exchange of proved and... false false false false false false false false false false false terselabel false 1 false true false false -2313000 -2313 false false false 2 false true false false 0 0 false false false Gain or loss recorded from exchange of coal properties, includes the realized gains (losses) on the exchange of proved and unproved coal properties. No authoritative reference available. false 12 3 mee_GainOnInsuranceRecovery mee false credit duration monetary The excess insurance recoveries compared to the recorded loss incurred from an insured event (including a conversion of... false false false false false false false false false false false label false 1 false true false false -5810000 -5810 false false false 2 false true false false 0 0 false false false The excess insurance recoveries compared to the recorded loss incurred from an insured event (including a conversion of nonmonetary assets to monetary assets). An excess would occur from recovery of lost profits, and recoveries at current replacement cost less carrying amounts of assets that were damaged or destroyed. No authoritative reference available. false 13 3 us-gaap_UnrealizedGainLossOnDerivatives us-gaap true credit duration monetary No definition available. false false false false false false false false false false false false 1 false true false false -28017000 -28017 false false false 2 false true false false -20688000 -20688 false false false The increases (decreases) in the market value of derivative instruments, including options, swaps, futures, and forward contracts, which were included in earnings in the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 14 3 us-gaap_GainLossOnInvestments us-gaap true credit duration monetary No definition available. false false false false false false false false false false false false 1 false true false false -3780000 -3780 false false false 2 false true false false 0 0 false false false This item represents the net total realized and unrealized gain (loss) included in earnings for the period as a result of selling or holding marketable securities categorized as trading, available-for-sale, or held-to-maturity, including the unrealized holding gain or loss of held-to-maturity securities transferred to the trading security category and the cumulative unrealized gain or loss which was included in other comprehensive income (a separate component of shareholders' equity) for available-for-sale securities transferred to trading securities during the period. Additionally, this item would include any gains or losses realized during the period from the sale of investments accounted for under the cost method of accounting and losses recognized for other than temporary impairments of the subject investments. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 7 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 13, 22 false 15 3 us-gaap_AssetRetirementObligationAccretionExpense us-gaap true debit duration monetary No definition available. false false false false false false false false false false false false 1 false true false false 4131000 4131 false false false 2 false true false false 3502000 3502 false false false Amount of accretion expense recognized in the income statement during the period that is associated with asset retirement obligations. Accretion expense measures and incorporates changes due to the passage of time into the carrying amount of the liability. Such accretion expense representing changes in the liability for an asset retirement obligation due to passage of time is the result of applying an interest method of allocation to the amount of the liability at the beginning of the period. The interest rate used to measure that change shall be the credit-adjusted risk-free rate that existed when the liability, or portion thereof, was initially measured. That amount shall be recognized as an increase in the carrying amount of the liability and as an expense classified as an operating item in the statement of income. Accretion expense shall not be considered to be interest cost for purposes of capitalization of interest. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 143 -Paragraph 13, 14 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 143 -Paragraph 22 -Subparagraph c(3) false 16 3 us-gaap_IncreaseDecreaseInOperatingCapitalAbstract us-gaap true na duration string No definition available. false false false false false true false false false false false false 1 false false false false 0 0 false false false 2 false false false false 0 0 false false false No definition available. false 17 4 us-gaap_IncreaseDecreaseInAccountsReceivable us-gaap true credit duration monetary No definition available. false false false false false false false false false false false false 1 false true false false -93743000 -93743 false false false 2 false true false false -61086000 -61086 false false false The net change during the reporting period in amount due within one year (or one business cycle) from customers for the credit sale of goods and services. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 18 4 us-gaap_IncreaseDecreaseInInventories us-gaap true credit duration monetary No definition available. false false false false false false false false false false false false 1 false true false false -3856000 -3856 false false false 2 false true false false -22893000 -22893 false false false The net change during the reporting period in the aggregate value of all inventory held by the reporting entity, associated with underlying transactions that are classified as operating activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 19 4 us-gaap_IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets us-gaap true credit duration monetary No definition available. false false false false false false false false false false false terselabel false 1 false true false false 66572000 66572 false false false 2 false true false false 11157000 11157 false false false The net change during the reporting period in the value of this group of assets within the working capital section. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 20 4 mee_IncreaseDecreaseInOtherAssets mee false na duration monetary The net change during reporting period in other assets not otherwise defined in taxonomy. false false false false false false false false false false false terselabel false 1 false true false false -9204000 -9204 false false false 2 false true false false 11238000 11238 false false false The net change during reporting period in other assets not otherwise defined in taxonomy. No authoritative reference available. false 21 4 us-gaap_IncreaseDecreaseInAccountsPayable us-gaap true debit duration monetary No definition available. false false false false false false false false false false false false 1 false true false false 20090000 20090 false false false 2 false true false false -41956000 -41956 false false false The net change during the reporting period in the aggregate amount of obligations due within one year (or one business cycle). This may include trade payables, amounts due to related parties, royalties payable, and other obligations. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 22 4 us-gaap_IncreaseDecreaseInAccruedIncomeTaxesPayable us-gaap true debit duration monetary No definition available. false false false false false false false false false false false false 1 false true false false 9468000 9468 false false false 2 false true false false 9835000 9835 false false false The net change during the period in the amount of cash payments due to taxing authorities for taxes that are based on the reporting entity's earnings. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 23 4 us-gaap_IncreaseDecreaseInAccruedLiabilities us-gaap true debit duration monetary No definition available. false false false false false false false false false false false false 1 false true false false 12685000 12685 false false false 2 false true false false 25395000 25395 false false false The net change during the reporting period in the aggregate amount of expenses incurred but not yet paid. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 24 4 mee_IncreaseInOtherNoncurrentLiabilities mee false na duration monetary The net change during reporting period in other obligations not otherwise defined in taxonomy false false false false false false false false false false false terselabel false 1 false true false false 2708000 2708 false false false 2 false true false false 3007000 3007 false false false The net change during reporting period in other obligations not otherwise defined in taxonomy No authoritative reference available. false 25 4 us-gaap_IncreaseDecreaseInPensionPlanObligations us-gaap true debit duration monetary No definition available. false false false false false false false false false false false false 1 false true false false 1429000 1429 false false false 2 false true false false 6442000 6442 false false false The net change during the reporting period in the amount due to fund retirement benefits to employees, retired and disabled former employees. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 26 4 us-gaap_IncreaseDecreaseInAssetRetirementObligations us-gaap true debit duration monetary No definition available. false false false false false false false false false false false false 1 false true false false -1090000 -1090 false false false 2 false true false false -950000 -950 false false false The net change during the reporting period in the carrying amount of asset retirement obligations. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 27 4 us-gaap_NetCashProvidedByUsedInOperatingActivities us-gaap true na duration monetary No definition available. false false false false false false false false false false false totallabel false 1 false true false false 77157000 77157 false false false 2 false true false false 40882000 40882 false false false The net cash from (used in) all of the entity's operating activities, including those of discontinued operations, of the reporting entity. Operating activities generally involve producing and delivering goods and providing services. Operating activity cash flows include transactions, adjustments, and changes in value that are not defined as investing or financing activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 true 28 1 us-gaap_NetCashProvidedByUsedInInvestingActivitiesAbstract us-gaap true na duration string No definition available. false false false false false true false false false false false false 1 false false false false 0 0 false false false 2 false false false false 0 0 false false false No definition available. false 29 2 us-gaap_PaymentsToAcquirePropertyPlantAndEquipment us-gaap true credit duration monetary No definition available. false false false false false false false false false false true negated false 1 false true false false -56146000 -56146 false false false 2 false true false false -103704000 -103704 false false false The cash outflow associated with the acquisition of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale; includes cash outflows to pay for construction of self-constructed assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 17 -Subparagraph c false 30 2 us-gaap_PaymentsForProceedsFromShortTermInvestments us-gaap true credit duration monetary No definition available. false false false false false false false false false false true negated false 1 false true false false 14644000 14644 false false false 2 false true false false 14470000 14470 false false false The net amount paid (received) by the reporting entity through acquisition (sale/maturities) of short-term investments with an original maturity that is three months or less which qualify for treatment as an investing activity based on management's intention and intended by management to be liquidated, if necessary, within the current operating cycle. Includes cash flows from securities classified as trading securities that were acquired for reasons other than sale in the short-term. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 13 false 31 2 us-gaap_ProceedsFromSaleOfProductiveAssets us-gaap true debit duration monetary No definition available. false false false false false false false false false false false false 1 false true false false 1019000 1019 false false false 2 false true false false 13635000 13635 false false false The cash inflow from the sale of property, plant and equipment (capital expenditures), software, and other intangible assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 16 -Subparagraph c false 32 2 us-gaap_ProceedsFromInsuranceSettlementInvestingActivities us-gaap true debit duration monetary No definition available. false false false false false false false false false false false false 1 false true false false 9125000 9125 false false false 2 false true false false 0 0 false false false The cash inflow from the amounts received by the insured under the terms of an insurance contract settlement. This element pertains only to insurance proceeds related to investments, for example fixed assets. It excludes insurance settlements classified as operating cash flows. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 22 -Subparagraph c false 33 2 us-gaap_NetCashProvidedByUsedInInvestingActivities us-gaap true debit duration monetary No definition available. false false false false false false false false false false false totallabel false 1 false true false false -31358000 -31358 false false false 2 false true false false -75599000 -75599 false false false The net cash inflow (outflow) from investing activity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 true 34 1 us-gaap_NetCashProvidedByUsedInFinancingActivitiesAbstract us-gaap true na duration string No definition available. false false false false false true false false false false false false 1 false false false false 0 0 false false false 2 false false false false 0 0 false false false No definition available. false 35 2 us-gaap_PaymentsToAcquireRestrictedInvestments us-gaap true credit duration monetary No definition available. false false false false false false false false false false true negated false 1 false true false false 466759000 466759 false false false 2 false true false false 0 0 false false false The cash outflow to acquire investments (not to include restricted cash) that are pledged or subject to withdrawal restrictions. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15, 17 false 36 2 us-gaap_RepaymentsOfLongTermCapitalLeaseObligations us-gaap true credit duration monetary No definition available. false false false false false false false false false false true negated false 1 false true false false -382000 -382 false false false 2 false true false false -471000 -471 false false false The cash outflow for the obligation for lease meeting the criteria for capitalization (with maturities exceeding one year or beyond the operating cycle of the entity, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26, 31 false 37 2 us-gaap_EarlyRepaymentOfSeniorDebt us-gaap true credit duration monetary No definition available. false false false false false false false false false false true negated false 1 false true false false -21949000 -21949 false false false 2 false true false false 0 0 false false false The cash outflow for the extinguishment of borrowing, with the highest claim on the assets of the entity in case of bankruptcy or liquidation, before its maturity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 20 -Subparagraph b false 38 2 us-gaap_PaymentsOfDividends us-gaap true credit duration monetary No definition available. false false false false false false false false false false true negated false 1 false true false false -5167000 -5167 false false false 2 false true false false -5092000 -5092 false false false The cash outflow from the entity's earnings to the shareholders. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 20 -Subparagraph a false 39 2 us-gaap_ProceedsFromStockOptionsExercised us-gaap true debit duration monetary No definition available. false false false false false false false false false false false false 1 false true false false 11490000 11490 false false false 2 false true false false 0 0 false false false The cash inflow associated with the amount received from holders exercising their stock options. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph A240 -Subparagraph i Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 19 -Subparagraph a false 40 2 us-gaap_ExcessTaxBenefitFromShareBasedCompensationFinancingActivities us-gaap true debit duration monetary No definition available. false false false false false false false false false false false false 1 false true false false 625000 625 false false false 2 false true false false 0 0 false false false Reductions in the entity's income taxes that arise when compensation cost (from non-qualified share-based compensation) recognized on the entity's tax return exceeds compensation cost from share-based compensation recognized in financial statements. This element represents the cash inflow reported in the enterprise's financing activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph A240 -Subparagraph i Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 00-15 -Paragraph 3 false 41 2 us-gaap_NetCashProvidedByUsedInFinancingActivities us-gaap true debit duration monetary No definition available. false false false false false false false false false false false totallabel false 1 false true false false 451376000 451376 false false false 2 false true false false -5563000 -5563 false false false The net cash inflow (outflow) from financing activity for the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 true 42 1 us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease us-gaap true na duration monetary No definition available. false false false false false false false false false false false totallabel false 1 false true false false 497175000 497175 false false false 2 false true false false -40280000 -40280 false false false The net change between the beginning and ending balance of cash and cash equivalents. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 true 43 1 us-gaap_CashAndCashEquivalentsAtCarryingValue us-gaap true debit instant monetary No definition available. false false false false false false false false true false false periodstartlabel false 1 false true false false 665762000 665762 false false false 2 false true false false 606997000 606997 false false false Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased th ree years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits should not be reported as cash and cash equivalents. 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It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased th ree years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits should not be reported as cash and cash equivalents. 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Masse y&#8217;s then subsidiary, Wellmore Coal Corporation (&#8220;Wellmore&#8221;), declared force majeure under its coal supply agreement with Harman Mining Corporation (&#8220;Harman&#8221;) and reduced the amount of coal to be purchased from Harman.&#160;&#160;On October 29, 1998, Harman and its sole shareholder sued A.T. Massey and five of its other subsidiaries (the &#8220;Massey Defendants&#8221;) in the Circuit Court of Boone County, West Virginia, alleging that the Massey Defendants tortiously interfered with Wellmore&#8217;s agreement with Harman, causing Harman to go out of business.&#160;&#160;On August 1, 2002, the jury awarded the plaintiffs $50 million in compensatory and punitive damages. On October 24, 2006, the Massey Defendants timely filed their Petition for Appeal to the Supreme Court of Appeals of West Virginia (&#8220;WV Supreme Court&#8221;).&#160;&#160;On November 21, 2007, the WV Supreme Court issued a 3-2 majority opinion reversing the judgment against the Massey Defendants and remanding the case to the Circuit Court</font></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;</font></div> <div id="PGBRK_0" style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"> <div id="FTR_1"> <div id="GLFTR_2" style="WIDTH: 100%" align="left"> </div> </div> <div id="PN_3" style="PAGE-BREAK-AFTER: always"> <div style="TEXT-ALIGN: center; WIDTH: 100%"> </div> <div style="TEXT-ALIGN: center; WIDTH: 100%"> <hr style="COLOR: black" noshade="noshade" size="2"/> </div> </div> <div id="HDR_4" style="TEXT-ALIGN: justify"> <div id="GLHDR_5" style=" WIDTH: 100%" align="right"> </div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">of Boone County with directions to enter an order dismissing the case, with prejudice, in its entirety.&#160;&#160;The Harman plaintiffs filed motions asking the WV Supreme Court to conduct a rehearing in the case.&#160;&#160;On January 24, 2008, the WV Supreme Court decided to rehear the case, which was re-argued on March 12, 2008.&#160;&#160;On April 3, 2008, the WV Supreme Court again reversed the judgment against the Massey Defendants and remanded the case with direction to enter an order dismissing the case, with prejudice, in its entirety. In July 2008, the Harman plaintiffs petitioned the United States Supreme Court (the &#8220;U.S. Supreme Court&#8221;) to review the WV Supreme Court&#8217;s dismissal of their claims.</font></div> </div> <div style="TEXT-INDENT: 0pt; DISPLAY: block">< ;br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">In December 2008, the U.S. Supreme Court agreed to review the case.&#160;&#160;The U.S. Supreme Court granted review based on the question of whether a justice of the WV Supreme Court should have recused himself from the appeal. The U.S. Supreme Court found that the justice should have recused himself and ruled on June 8, 2009 that the matter should be reheard by the WV Supreme Court.&#160;&#160;The WV Supreme Court heard oral arguments on the matter on September 8, 2009, and reversed the lower court&#8217;s decision on November 12, 2009.&#160;&#160;The Harman plaintiffs subsequently requested that the WV Supreme Court reconsider its decision; the WV Supreme Court denied that request on March 11, 2010.&#160;&#160;The $72 million of cash we were requi red to post as collateral for an appeal bond was returned to us in March 2010.</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">West Virginia Flooding</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Since August 2004, five of our subsidiaries have been sued in six civil actions filed in the Circuit Courts of Boone, McDowell, Mingo, Raleigh, Summers and Wyoming Counties, West Virginia, for alleged property damages and personal injuries arising out of flooding on or about May 2, 2002.& amp;#160;&#160;These complaints cover approximately 350 plaintiffs seeking unquantified compensatory and punitive damages from approximately 35 defendants.&#160;&#160;Two of these cases have been dismissed without prejudice for failure to prosecute. The other four cases are active.</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Since May 2006, we and twelve of our subsidiaries have been sued in three civil actions filed in the Circuit Courts of Logan and Mingo Counties, West Virginia, for alleged property damages and personal injuries arising out of flooding between May 30 and June 4, 2004. Four of our subsidiaries have been dismissed without prejudice from one of the Logan County cases. These complaints cover approximately 400 plainti ffs seeking unquantified compensatory and punitive damages from approximately 52 defendants.</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">We believe the remaining cases that have not been settled will be resolved without a material adverse impact on our cash flows, results of operations or financial condition.</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">West Virginia Trucking</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></di v> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Since January 2003, an advocacy group and residents in Boone, Kanawha, Mingo and Raleigh Counties, West Virginia, filed 17 suits in the Circuit Courts of Kanawha and Mingo Counties, West Virginia, against twelve of our subsidiaries.&#160;&#160;Plaintiffs alleged that defendants illegally transported coal in overloaded trucks, causing damage to state roads, thereby interfering with plaintiffs&#8217; use and enjoyment of their properties and their right to use the public roads. Plaintiffs seek injunctive relief and compensatory and punitive damages.&#160;&#160;The WV Supreme Court referred the consolidated lawsuits, and similar lawsuits against other coal and transportation companies not involving our subsidiaries, to the Circuit Court of Lincoln County, West Virginia, to be handled by a mass litigation panel judge. Plaintiffs filed motions requesting class certification. On June 7, 2007, plaintiffs voluntarily dismissed their public nuisance claims seeking monetary damages for road and bridge repairs.&#160;&#160;Plaintiffs also agreed to an order limiting any damages for nuisance to two years prior to the filing of any suit.&#160;&#160;A motion to dismiss any remaining public nuisance claims was restricted by plaintiffs and argued at hearings on December 14, 2007 and June 25, 2008.&#160;&#160;No rulings on these matters have been made.&#160;&#160;Defendants filed a motion requesting that the mass litigation panel judge recommend to the WV Supreme Court that the cases be sent back to the circuit courts of origin for resolution.&#160;&#160;That motion was verbally denied as to those cases in which our subsidiaries are defendants, and a class certification hearing was held on October 21, 2009.&#160;&#160;To date, no decision ha s been rendered by the WV Supreme Court on the class certification issues.&#160;&#160;No date has been set for trial.&#160;&#160;We believe we have insurance coverage applicable to these items and that they will be resolved without a material adverse impact on our cash flows, results of operations or financial condition.</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div id="PGBRK_6" style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"> <div id="FTR_7"> <div id="GLFTR_8" style="WIDTH: 100%" align="left"> </div> </div> <div id="PN_9" style="PAGE-BREAK-AFTER: always"> <div style="TEXT-ALIGN: center; WIDTH: 100%"> </div> <div style="TEXT-ALIGN: center; WIDTH: 100%"> <hr style="COLOR: black" noshade="noshade" size="2"/> </div> </div> &l t;div id="HDR_10"> <div id="GLHDR_11" style="WIDTH: 100%" align="right"> </div> </div> </div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Well Water Suits</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Since September 2004, approximately 738 plaintiffs have filed approximately 400 suits against us and our subsidiary, Rawl Sales &amp; Processing Co., in the Circuit Court of Mingo County, West Virginia (&#8220;Mingo Court&#8221;), for alleged property damage and personal injuries arising out of slurry injection and impoundment practices allegedly contaminating plaintiffs&#8217; water wells. Plaintiffs seek injunctive relief and compensatory damages in excess of $170 million and unquantified punitive damages.&#160;&#160;Specifically, plaintiffs are claiming that defendants&#8217; activities during the period of 1978 through 1987 rendered their property valueless and request monetary damages to pay, inter alia, the value of their property and future water bills.&#160;&#160;In addition, many plaintiffs are also claiming that their exposure to the contaminated well water caused neurological injury or physical injury, including cancers, kidney problems and gall stones.&#160;&#160;Finally, all plaintiffs claimed entitlement to medical monitoring for the next 30 years and have requested unliquidated compensatory damages for pain and suffering, annoyance and inconvenience and legal fees.&#160;&#160;On April 30, 2009, the Mingo Court held a mandatory settlement conference. A t that settlement conference, all plaintiffs agreed to settle and dismiss their medical monitoring claims.&#160;&#160;Additionally, 180 plaintiffs agreed to settle all of their remaining claims and be dismissed from the case.&#160;&#160;The Mingo Court is currently considering whether to dismiss the claims of an additional 179 plaintiffs who did not attend the mandatory settlement conference.&#160;&#160;All settlements to date will be funded by insurance proceeds.&#160;&#160;The plaintiffs are challenging the medical monitoring settlement.&#160;&#160;A motion to enforce the medical monitoring settlement has been filed.&#160;&#160;No ruling has been made.&#160;&#160;There are currently 556 plaintiffs remaining.&#160;&#160;As a result of the recent disqualification of Judge Thornsbury, on account of having been engaged as a lawyer in the 1980s on a matter on behalf of a Massey subsidiary adverse to one of the plaintiffs, the WV Supreme Court reassigned all the cases to Judge Thomas Evans.&#160;&#160;Recently, Judge Evans requested the WV Supreme Court refer the cases to the statutory mass litigation panel for further proceedings.&#160;&#160;The WV Supreme Court ordered all the cases to be transferred to the mass litigation panel.&#160;&#160;No trial date has been set, nor has the mass litigation panel issued any orders as to how the cases will be resolved or what judge(s) will be responsible for these cases.</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Beginning in December 2008, we and certain of our subsidiaries along with several other companies were sued in numerous actions in Boone County, West Virginia involving approximately 350 plaintiffs allegi ng well water contamination resulting from coal mining operations.&#160;&#160;Trial is scheduled for May 2, 2010.</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">We do not believe there was any contamination caused by our activities or that plaintiffs suffered any damage and, therefore, we do not believe we have a probable loss related to this matter.&#160;&#160;We plan to vigorously contest these claims.&#160;&#160;We believe that we have insurance coverage applicable to these matters and have initiated litigation against our insurers to establish that coverage.&#160;&#160;At this time, we believe that the litigation by the plaintiffs will be resolved without a material adverse impact on our cash flows, results of o perations or financial condition.</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Surface Mining Fills</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Since September 2005, three environmental groups sued the United States Army Corps of Engineers (&#8220;Corps&#8221;) in the United States District Court for the Southern District of West Virginia (the &#8220;District Court&#8221;), asserting the Corps unlawfully issued permits to four of our surface mines to construct mining fills. The suit alleges the Corps failed to comply with the requirements of both Section 404 of the Clean Water Act and the National Environmental Policy Act, including preparing environmental impact statements for individual permits. We intervened in the suit to protect our interests. On March 23, 2007, the District Court rescinded four of our subsidiaries&#8217; permits, resulting in the temporary suspension of mining at these surface mines. We appealed that ruling to the United States Court of Appeals for the Fourth Circuit (the &#8220;Fourth Circuit Court&#8221;). On April 17, 2007, the District Court partially stayed its ruling, permitting mining to resume in certain fills that were already under construction. On June 14, 2007, the District Court issued an additional ruling, finding the Corps improperly approved placement of sediment ponds in streams below fills on the four permits in question.&#160;&#160;The District Court subsequently modified its ruling to allo w these ponds to remain in place, as the ponds and fills have already been constructed.&#160;&#160;The District Court&#8217;s ruling could impact the issuance of permits for the placement of sediment ponds for future operations. If the permits for the fills or sediment ponds are ultimately held to be unlawfully issued, production could be affected at these surface mines, and the process of obtaining new Corps permits for all surface mines could become more difficult. We appealed both rulings to the Fourth Circuit Court.&#160;&#160;On February 13, 2009, the Fourth Circuit Court reversed the prior rulings of the District Court and remanded the matter for further proceedings. On March 30, 2009, the plaintiffs requested that the Fourth Circuit Court reconsider the case.&#160;&#160;The </font></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;</font></div> <div id="PGBRK_12" style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"> <div id="FTR_13"> <div id="GLFTR_14" style="WIDTH: 100%" align="left"> </div> </div> <div id="PN_15" style="PAGE-BREAK-AFTER: always"> <div style="TEXT-ALIGN: center; WIDTH: 100%"> </div> <div style="TEXT-ALIGN: center; WIDTH: 100%"> <hr style="COLOR: black" noshade="noshade" size="2"/> </div> </div> <div id="HDR_16"> <div id="GLHDR_17" style="WIDTH: 100%" align="right"> </div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">request was denied on May 20, 2009. On August 26, 2009, the plaintiffs filed their request with the U.S. Supreme Court to review the Fourth Circuit Court&#8217;s decision. Our sub sidiaries&#8217; response is due May 10, 2010; the U.S. Supreme Court then will decide whether to accept the case for review.</font></div> </div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Customer Disputes</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">We have customers who claim they did not receive, or did not timely receive, all of the coal required to be shipped to them during 2008 (&#8220;unshipped tons&#8221;). In such cases, it is typical for a customer and c oal producer to agree upon a schedule for shipping unshipped tons in subsequent years.&#160;&#160;A few of our customers, however, filed claims or notified us of potential claims for cover damages, which damages are equal to the difference between the contract price of the coal that was not delivered and the market price of replacement coal or comparable quality coal. We resolved a number of these claims in 2009 and early 2010, while discussions with other customers remain ongoing.</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">We believe we have strong defenses to the remaining claims for cover damages.&#160;&#160;&#160;In many cases, there was untimely or insufficient delivery of railcars by the rail carrier or the customer.&a mp;#160;&#160;In other cases, factors beyond our control caused production or shipment problems.&#160;&#160;Additionally, we believe that certain customers previously agreed to accept unshipped tons in subsequent years.&#160;&#160;We believe that all of these factors, and other factors, provide defenses to claims or potential claims for unshipped tons.</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Separately, we are currently in litigation with one customer regarding whether or not binding contracts for the sale of coal were reached.&#160;&#160;We maintain that this customer improperly terminated a signed, higher-priced contract; the customer argues that it was only required to purchase coal under a purported agreement reached by email. On February 12, 2010, we received a decision from an arbitration panel awarding this customer $10.5 million on the grounds that the purported agreement by email was valid and that the higher-priced contract was invalid.&#160;&#160;We believe that the arbitration panel&#8217;s decision as to the validity of the higher-priced contract was beyond the panel&#8217;s jurisdiction of the award, which amounts to $8.2 million, and have challenged that decision in federal court.&#160;&#160;We will vigorously pursue this challenge and do not consider this loss as probable.&#160;&#160;We have paid $2.3 million for the award relating to the panels&#8217; decision that the agreement by email was valid.</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAM ILY: Times New Roman; FONT-SIZE: 10pt">We believe that we have strong defenses to the other claims and potential claims and further feel that many or all of these claims may be resolved without trial. We have recorded an accrual for our best estimate of probable losses related to these matters. While we believe that all of these matters discussed above will be resolved without a material adverse impact on our cash flows, results of operations or financial condition, it is reasonably possible that our judgments regarding some or all of these matters could change in the near term. We believe the aggregate exposure related to these claims in excess of our accrual is up to $60 million of charges that would affect our future operating results and financial position.</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FO NT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Spartan Unfair Labor Practice Matter &amp; Related Age Discrimination Class Action</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">In 2005, the United Mine Workers of America (&#8220;UMWA&#8221;) filed an unfair labor practice charge with the National Labor Relations Board (&#8220;NLRB&#8221;) alleging that one of our subsidiaries, Spartan Mining Company (&#8220;Spartan&#8221;), discriminated on the basis of anti-union animus in its employment offers.&#160;&#160;The NLRB issued a complaint and an NLRB Administrative Law Judge (&#8220;ALJ&#8221;) issued a recommended decision making detailed findings that Spartan committed a number of unfair labor practice violations and awarding, among other relief, back pay damages to union discriminatees.&#160;&#160;On September 30, 2009, the NLRB upheld the ALJ&#8217;s recommended decision.&#160;&#160;Spartan has appealed the NLRB&#8217;s decision to the United States Court of Appeals for the Fourth Circuit. 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The adoption of this accounting standard update did not have a material impact on our financial position or results of operations.&#160;&#160;See Note 13 to the Notes to Condensed Consolidated Financial Statements for more information on our Fair Value Measurements and Disclosures.</font></div> <div id="PGBRK_3" style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RI GHT: 0pt"> <div id="FTR_4">&#160;</div> <div id="PN_5" style="PAGE-BREAK-AFTER: always"> <div style="TEXT-ALIGN: center; WIDTH: 100%"> <hr style="COLOR: black" noshade="noshade" size="2"/> </div> </div> <div id="HDR_6"> <div id="GLHDR_7" style="WIDTH: 100%" align="right"> </div> </div> </div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">In April 2010, the FASB issued an accounting standard update, amending disclosure requirements related to income taxes, as a result of the Patient Protection and Affordable Care Act (&#8220;PPACA&#8221;), which became law on March 23, 2010, and was subsequently amended on March 30, 2010.&#160;&#160;Beginning in fiscal year 2014, the t ax deduction available to us will be reduced to the extent our drug expenses are reimbursed under the Medicare Part D retiree drug subsidy program.&#160;&#160;Because retiree health care liabilities and the related tax impacts are already reflected in our Condensed Consolidated Financial Statements, we are required to recognize the full accounting impact of this accounting standard update in the period in which the PPACA was signed into law.&#160;&#160;The total non-cash charge to Income tax expense related to the reduction in the tax benefit is $2.6 million.</font></div> </div> (1)&#160;Significant Accounting Policies Basis of Presentation The condensed consolidated financial statements do not include false false false Description containing the entire organization, consolidation, basis of presentation and significant accounting policies of financial statements disclosure. 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Current assets are expected to be realized or consumed within one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 8 -Article 5 false 11 3 us-gaap_AssetsCurrent us-gaap true debit instant monetary No definition available. false false false false false false false false false false false totallabel false 1 false true false false 1831344000 1831344 false false false 2 false true false false 1314565000 1314565 false false false Sum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold, or consumed within one year (or the normal operating cycle, if longer). Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 9 -Article 5 true 12 2 us-gaap_PropertyPlantAndEquipmentNet us-gaap true debit instant monetary No definition available. false false false false false false false false false false false false 1 false true false false 2342499000 2342499 false false false 2 false true false false 2344770000 2344770 false false false Tangible assets that are held by an entity for use in the production or supply of goods and services, for rental to others, or for administrative purposes and that are expected to provide economic benefit for more than one year; net of accumulated depreciation. Examples include land, buildings, and production equipment. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 13 -Subparagraph a -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 12 -Paragraph 5 -Subparagraph b, c Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 8 -Article 7 false 13 2 us-gaap_AssetsNoncurrentAbstract us-gaap true na duration string No definition available. false false false false false true false false false false false false 1 false false false false 0 0 false false false 2 false false false false 0 0 false false false No definition available. false 14 3 us-gaap_OtherAssetsNoncurrent us-gaap true debit instant monetary No definition available. false false false false false false false false false false false false 1 false true false false 162986000 162986 false false false 2 false true false false 140336000 140336 false false false Aggregate carrying amount, as of the balance sheet date, of noncurrent assets not separately disclosed in the balance sheet due to materiality considerations. Noncurrent assets are expected to be realized or consumed after one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 17 -Article 5 false 15 2 us-gaap_Assets us-gaap true debit instant monetary No definition available. false false false false false false false false false false false totallabel false 1 false true false false 4336829000 4336829 false false false 2 false true false false 3799671000 3799671 false false false Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events. 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Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19 -Subparagraph a -Article 5 false 19 3 us-gaap_LongTermDebtAndCapitalLeaseObligationsCurrent us-gaap true credit instant monetary No definition available. false false false false false false false false false false false false 1 false true false false 3855000 3855 false false false 2 false true false false 23531000 23531 false false false Obligation related to long-term debt (excluding convertible debt) and capital leases, the portion which is due in one year or less in the future. 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Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 22 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 6 -Section H false 25 3 us-gaap_DeferredTaxLiabilitiesNoncurrent us-gaap true credit instant monetary No definition available. false false false false false false false false false false false false 1 false true false false 215783000 215783 false false false 2 false true false false 209230000 209230 false false false Represents the noncurrent portion of deferred tax liabilities, which result from applying the applicable tax rate to net taxable temporary differences pertaining to each jurisdiction to which the entity is obligated to pay income tax. A noncurrent taxable temporary difference is a difference between the tax basis and the carrying amount of a noncurrent asset or liability in the financial statements prepared in accordance with generally accepted accounting principles. In a classified statement of financial position, an enterprise shall separate deferred tax liabilities and assets into a current amount and a noncurrent amount. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference. 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Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 22, 23, 24, 25, 26, 27 -Article 5 false 29 2 us-gaap_Liabilities us-gaap true credit instant monetary No definition available. false false false false false false false false false false false totallabel false 1 false true false false 2567803000 2567803 false false false 2 false true false false 2543388000 2543388 false false false Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future. No authoritative reference available. true 31 3 mee_CapitalStockAbstract mee false na duration string No definition available. false false false false false true false false false false false terselabel false 1 false false false false 0 0 false false false 2 false false false false 0 0 false false false No definition available. false 32 4 us-gaap_PreferredStockValue us-gaap true credit instant monetary No definition available. false false false false false false false false false false false terselabel false 1 false true false false 0 0 false false false 2 false true false false 0 0 false false false Dollar value of issued nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer) whether issued at par value, no par or stated value. This item includes treasury stock repurchased by the entity. Note: elements for number of nonredeemable preferred shares, par value and other disclosure concepts are in another section within stockholders' equity. 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May be all or a portion of the number of common shares authorized. These shares represent the ownership interest of the common shareholders. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 30 -Article 5 false 34 3 us-gaap_AdditionalPaidInCapital us-gaap true credit instant monetary No definition available. false false false false false false false false false false false false 1 false true false false 1044173000 1044173 false false false 2 false true false false 568995000 568995 false false false Excess of issue price over par or stated value of the entity's capital stock and amounts received from other transactions involving the entity's stock or stockholders. Includes adjustments to additional paid in capital. Some examples of such adjustments include recording the issuance of debt with a beneficial conversion feature and certain tax consequences of equity instruments awarded to employees. Use this element for the aggregate amount of APIC associated with common AND preferred stock. For APIC associated with only common stock, use the element Additional Paid In Capital, Common Stock. For APIC associated with only preferred stock, use the element Additional Paid In Capital, Preferred Stock. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 31 -Article 5 false 35 3 us-gaap_RetainedEarningsAccumulatedDeficit us-gaap true credit instant monetary No definition available. false false false false false false false false false false false false 1 false true false false 744548000 744548 false false false 2 false true false false 716089000 716089 false false false The cumulative amount of the reporting entity's undistributed earnings or deficit. 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Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, and unrealized gains and losses on certain investments in debt and equity securities as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge. 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While further analysis will be required, we estimate the range of loss to be $80 million to $150 million for charges related to the benefits being provided to the fami lies of the fallen miners, costs associated with the rescue and recovery efforts, insurance deductibles, and possible legal and other contingencies.&#160;&#160;It is possible that the total costs incurred related to this tragedy could exceed these estimates.&#160;&#160;In addition, the book value of equipment, mine and longwall panel development and mineral rights at the mine potentially impacted by the disaster is approximately $62 million.&#160;&#160;We will assess these assets for possible impairment once full access to the mine is restored but we do expect to recover much of the equipment.&#160;&#160;We expect that certain of these charges will be recorded in the second quarter of 2010; however, we will continue to review the amount of any necessary accruals, potential asset impairments, or other related expenses and record the charges in the period in which the determination is made and an adjustment is required.</font></div> <div style= "TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">We self-insure our underground mining equipment, including our longwalls.&#160;&#160;At the Upper Big Branch mine we were operating a longwall and four underground miner sections. 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We and the Defendants have insurance coverage applicable to these proceedings.&#160;&#160;While we cannot predict the outcome of any of these proceedings, based on our current estimates we do not believe that liabilities arising from these proceedings individually or in the aggregate should have a material adverse impact upon our consolidated cash flow s, results of operations or financial condition.&#160;&#160;It is possible, however, that the ultimate liabilities incurred in the future with respect to these proceedings, in the aggregate, may be materially adverse to our cash flows, results of operations or financial condition.</font></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div> </div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Cumberland Acquisition</font></div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div> <div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">On Apri l 19, 2010, we completed the acquisition of Cumberland for a purchase price of $640 million in cash, subject to working capital adjustments, and 6,519,034 shares of our Common Stock. 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