Acquisition (Tables)

6 Months Ended

Jun. 30, 2012

Acquisition

Summary of consolidated financial statements amounts as previously reported with preliminary purchase price allocation and as recast with refinements to purchase price allocation

The following table summarizes the Company's recast and previously reported December 31, 2011 consolidated balance sheet amounts (in thousands):

	Recast December 31, 2011(1)		December 31, 2011(2)
ASSETS
Inventories	$	240,437	$	242,607
Other current assets	$	45,649	$	45,627
Mineral interests, net	$	3,056,258	$	2,946,113
Property, plant and equipment, net	$	1,631,333	$	1,637,182
Goodwill	$	1,066,754	$	1,124,597
LIABILITIES AND STOCKHOLDERS' EQUITY
Other current liabilities	$	63,757	$	59,827
Deferred income taxes	$	1,029,336	$	1,003,383
Retained earnings	$	744,939	$	730,517

(1)

As presented in the June 30, 2012 condensed consolidated financial statements herein.

(2)

As previously presented in the consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2011.

        The following table summarizes the changes to the Company's recast and previously reported June 30, 2011 Condensed Consolidated Statements of Operations amounts (in thousands):

	Recast June 30, 2011(1)		June 30, 2011(2)
For the three months ended:
Sales	$	764,587	$	766,716
Cost of sales (exclusive of depreciation and depletion)		466,074		462,061
Depreciation and depletion		72,470		89,426
Operating income		164,463		153,649
Income before income tax expense		157,079		146,265
Income tax expense		42,626		38,907
Net income	$	114,453	$	107,358
Net income per share:
Basic	$	1.84	$	1.72
Diluted	$	1.83	$	1.71
For the six months ended:
Sales	$	1,171,162	$	1,173,291
Cost of sales (exclusive of depreciation and depletion)		684,534		680,521
Depreciation and depletion		100,828		117,784
Operating income		284,230		273,416
Income before income tax expense		273,446		262,632
Income tax expense		77,180		73,461
Net income	$	196,266	$	189,171
Net income per share:
Basic	$	3.36	$	3.24
Diluted	$	3.34	$	3.22

(1)

As presented in the June 30, 2012 condensed financial statements herein.

(2)

As previously presented in the condensed consolidated financial statements in the Company's Form 10-Q for the three and six months ended June 30, 2011.

        The following table summarizes the changes to the Company's recast and previously reported June 30, 2011 Condensed Consolidated Statement of Cash Flows amounts (in thousands):

	For the six months ended June 30,
	Recast 2011(1)			2011(2)
Net Income	$	196,266		$	189,171
Adjustments to reconcile net income to net cash flows provided by (used in) operating activities:
Depreciation and depletion	$	100,828		$	117,784
Deferred income tax credit	$	(11,121	)	$	(14,840	)
Other	$	10,247		$	27,521
Decrease in current assets, net of effect of business acquisitions:
Inventories	$	38,076		$	14,660

(1)

As presented in the June 30, 2012 condensed consolidated financial statements herein.

(2)

As previously presented in the condensed consolidated financial statements in the Company's Form 10-Q for the six months ended June 30, 2011.

Western Coal Corp

Acquisitions

Purchase consideration and fair value of assets acquired and liabilities assumed

Purchase consideration:
Cash	$	2,173,080
Fair value of shares of common stock issued		1,224,126
Fair value of stock options issued and warrants		34,765
Fair value of consideration transferred		3,431,971
Fair value of equity interest in Western Coal held before the acquisition		314,231
Total consideration	$	3,746,202

	Preliminary as of December 31, 2011		Adjustments			Final
Fair value of assets acquired and liabilities assumed:
Cash and cash equivalents	$	34,065	$	—		$	34,065
Receivables		163,668		—			163,668
Inventories		121,229		—			121,229
Other current assets		86,475		23			86,498
Mineral interests		2,992,000		94,000			3,086,000
Property, plant and equipment		560,894		(6,702	)		554,192
Goodwill		1,122,884		(57,844	)		1,065,040
Other long-term assets		54,150		—			54,150
Total assets		5,135,365		29,477			5,164,842
Accounts payable and accrued liabilities		184,983		—			184,983
Other current liabilities		82,175		3,930			86,105
Deferred tax liability		1,021,161		25,547			1,046,708
Other long-term liabilities		100,844		—			100,844
Total liabilities		1,389,163		29,477			1,418,640
Net assets acquired	$	3,746,202	$	—		$	3,746,202

Schedule of unaudited pro forma financial information

	For the six months ended June 30, 2011
Revenues	$	1,403,813
Net income	$	253,926