Segment Information

9 Months Ended

Sep. 30, 2012

Segment Information

Segment Information

Note 14—Segment Information

        The Company's reportable segments are strategic business units arranged geographically with separate management teams. The business units have been aggregated into three reportable segments following the April 1, 2011 Western Coal acquisition described in Note 2. These reportable segments are U.S. Operations, Canadian and U.K. Operations, and Other. Both the U.S. Operations and Canadian and U.K. Operations reportable segments primary business is that of mining and exporting metallurgical coal for the steel industry. The U.S. Operations segment includes Walter Energy's historical operating segments of Underground Mining, Surface Mining and Walter Coke as well as the results of the West Virginia mining operations acquired through the acquisition of Western Coal. The Canadian and U.K. Operations segment includes the results of the mining operations located in Northeast British Columbia (Canada) and South Wales (United Kingdom). The Other segment primarily includes corporate activities and expenditures.

        The accounting policies of the segments are the same as those described in Note 2 of the Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2011. The Company evaluates performance primarily based on operating income of the respective business segments.

        Summarized financial information of the Company's reportable segments is shown in the following table (in thousands):

	For the three months ended September 30,
	2012			Recast 2011
Revenues:
U.S. Operations	$	483,615		$	471,155
Canadian and U.K. Operations		127,905			217,334
Other		454			258
Total Revenues	$	611,974		$	688,747
Segment operating income (loss):
U.S. Operations	$	(22,228	)	$	120,078
Canadian and U.K. Operations		(1,036,690	)		52,361
Other		(12,847	)		(14,412	)
Total operating income (loss)		(1,071,765	)		158,027
Less interest expense, net		(30,432	)		(27,602	)
Other income (loss)		(943	)		(13,143	)
Income (loss) before income tax expense		(1,103,140	)		117,282
Income tax expense (benefit)		(41,184	)		30,202
Net income (loss)	$	(1,061,956	)	$	87,080
Impairment charges:
U.S. Operations	$	(114,281	)	$	—
Canadian and U.K. Operations		(992,434	)		—
Other		—			—
Total	$	(1,106,715	)	$	—
Depreciation and depletion:
U.S. Operations	$	44,789		$	43,546
Canadian and U.K. Operations		37,305			13,408
Other		466			190
Total	$	82,560		$	57,144
Capital expenditures:
U.S. Operations	$	41,670		$	41,435
Canadian and U.K. Operations		43,419			115,426
Other		195			99
Total	$	85,284		$	156,960

	For the nine months ended September 30,
	2012			Recast 2011
Revenues:
U.S. Operations	$	1,402,526		$	1,390,171
Canadian and U.K. Operations		515,901			476,552
Other		2,684			1,629
Total Revenues	$	1,921,111		$	1,868,352
Segment operating income (loss):
U.S. Operations	$	191,998		$	432,184
Canadian and U.K. Operations		(1,074,924	)		71,161
Other		(36,790	)		(61,088	)
Total operating income (loss)		(919,716	)		442,257
Less interest expense, net		(88,985	)		(62,889	)
Other income (loss)		(13,855	)		11,360
Income (loss) from continuing operations before income tax expense		(1,022,556	)		390,728
Income tax expense (benefit)		(27,972	)		107,382
Income (loss) from continuing operations	$	(994,584	)	$	283,346
Impairment charges:
U.S. Operations	$	(114,281	)	$	—
Canadian and U.K. Operations		(992,434	)		—
Other		—			—
Total	$	(1,106,715	)	$	—
Depreciation and depletion:
U.S. Operations	$	130,635		$	110,750
Canadian and U.K. Operations		91,976			46,651
Other		901			571
Total	$	223,512		$	157,972
Capital expenditures:
U.S. Operations	$	121,633		$	126,543
Canadian and U.K. Operations		205,776			166,837
Other		3,931			(3	)
Total	$	331,340		$	293,377

	September 30, 2012		Recast December 31, 2011
Identifiable assets:
U.S. Operations	$	1,274,750	$	1,118,451
Canadian and U.K. Operations		4,103,172		5,021,521
Other		469,979		716,536
Total	$	5,847,901	$	6,856,508