Acquisition (Tables)

9 Months Ended

Sep. 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 September 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 Company's recast and previously reported three and nine months ended September 30, 2011 Condensed Consolidated Statements of Operations amounts (in thousands):

	Recast September 30, 2011(1)		September 30, 2011(2)
For the three months ended:
Sales	$	683,730	$	685,052
Cost of sales (exclusive of depreciation and depletion)		420,690		425,487
Depreciation and depletion		57,144		63,046
Operating income		158,027		148,650
Income before income tax expense		117,282		107,905
Income tax expense		30,202		31,684
Net income	$	87,080	$	76,221
Net income per share:
Basic	$	1.40	$	1.22
Diluted	$	1.39	$	1.21
For the nine months ended:
Sales	$	1,854,892	$	1,858,343
Cost of sales (exclusive of depreciation and depletion)		1,105,224		1,106,008
Depreciation and depletion		157,972		180,830
Operating income		442,257		422,066
Income before income tax expense		390,728		370,537
Income tax expense		107,382		105,145
Net income	$	283,346	$	265,392
Net income per share:
Basic	$	4.75	$	4.45
Diluted	$	4.72	$	4.43

(1)

As presented in the September 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 nine months ended September 30, 2011.

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

	For the nine months ended September 30,
	Recast 2011(1)			2011(2)
Net Income	$	283,346		$	265,392
Adjustments to reconcile net income to net cash flows provided by (used in) operating activities:
Depreciation and depletion	$	157,972		$	180,830
Deferred income tax credit	$	(16,901	)	$	(19,138	)
Other	$	8,349		$	29,098
Decrease (increase) in current assets, net of effect of business acquisitions:
Inventories	$	21,856		$	(1,560	)

(1)

As presented in the September 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 nine months ended September 30, 2011.

Western Coal Corp

Acquisitions

Purchase consideration and fair value of assets acquired and liabilities assumed

The following tables summarize the purchase consideration, the preliminary purchase price allocation reported in the Company's Annual Report on Form 10-K for the year ended December 31, 2011, the final purchase price allocation, and the applicable recast adjustments made upon finalization during the quarter ended March 31, 2012 (in thousands):

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

The following unaudited pro forma financial information should not be considered indicative of either future results or results that might have occurred had the acquisition been consummated as of January 1, 2010 (in thousands):

	For the nine months ended September 30, 2011
Revenues	$	2,092,560
Net income	$	338,106