Asset Retirement Obligations

12 Months Ended

Dec. 31, 2012

NOTE 12—Asset Retirement Obligations

As of December 31, 2012 and 2011, the Company had recorded asset retirement obligation accruals for mine reclamation and closure costs totaling $89.5 million and $75.0 million, respectively. The portion of the costs expected to be paid within a year of $12.3 million and $7.1 million as of December 31, 2012 and 2011, respectively, is included in other current liabilities. There were no assets that were legally restricted for purposes of settling asset retirement obligations at December 31, 2012 or 2011.

Changes in the asset retirement obligations are as follows:

	December 31,

	2012			2011
Balance at beginning of year	$	74,963		$	25,257
Accretion expense		4,411			3,628
Revisions in estimated cash flows		14,353			3,722
Asset retirement obligation assumed in Western Coal acquisition(1)		—			42,599
Obligations settled		(4,249	)		(243	)

Balance at end of year	$	89,478		$	74,963

(1): See Note 3.

- Definition

The entire disclosure for an asset retirement obligation and the associated long-lived asset. An asset retirement obligation is a legal obligation associated with the disposal or retirement from service of a tangible long-lived asset that results from the acquisition, construction or development, or the normal operations of a long-lived asset, except for certain obligations of lessees.

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