Supplemental Guarantor and Non-Guarantor Financial Information (Tables)

12 Months Ended

Dec. 31, 2012

Supplemental Guarantor and Non-Guarantor Financial Information

Schedule of supplemental condensed consolidating balance sheets (Unaudited)

SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEETS

DECEMBER 31, 2012

(in thousands)

	Parent (Issuer)		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
ASSETS
Cash and cash equivalents	$	83,833	$	61	$	32,707		$	—		$	116,601
Receivables, net		64,106		620,701		79,679			(507,519	)		256,967
Inventories		—		131,893		174,125			—			306,018
Deferred income taxes		39,375		17,687		1,464			—			58,526
Prepaid expenses		1,869		45,327		6,580			—			53,776
Other current assets		17,559		1,109		5,260			—			23,928
Total current assets		206,742		816,778		299,815			(507,519	)		815,816
Mineral interests, net		—		18,475		2,947,082			—			2,965,557
Property, plant and equipment, net		8,448		790,900		932,783			—			1,732,131
Deferred income taxes		52,363		112,560		(4,501	)		—			160,422
Goodwill		—		—		—			—			—
Other long-term assets		3,601,716		9,375		13,497			(3,530,094	)		94,494
	$	3,869,269	$	1,748,088	$	4,188,676		$	(4,037,613	)	$	5,768,420
LIABILITIES AND STOCKHOLDERS' EQUITY
Current debt	$	—	$	10,196	$	8,597		$	—		$	18,793
Accounts payable		5,128		78,260		31,525			—			114,913
Accrued expenses		262,704		83,155		346,535			(507,519	)		184,875
Accumulated postretirement benefits obligation		131		29,069		—			—			29,200
Other current liabilities		157,044		24,389		25,040			—			206,473
Total current liabilities		425,007		225,069		411,697			(507,519	)		554,254
Long-term debt		2,381,255		1,784		14,333			—			2,397,372
Deferred income taxes		—		—		921,687			—			921,687
Accumulated postretirement benefits obligation		452		632,812		—			—			633,264
Other long-term liabilities		51,984		128,593		70,695			—			251,272
Total liabilities		2,858,698		988,258		1,418,412			(507,519	)		4,757,849
Stockholders' equity		1,010,571		759,830		2,770,264			(3,530,094	)		1,010,571
Total liabilities and stockholders' equity	$	3,869,269	$	1,748,088	$	4,188,676		$	(4,037,613	)	$	5,768,420

SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEETS

DECEMBER 31, 2011

(in thousands)

	Parent (Issuer)		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
ASSETS
Cash and cash equivalents	$	99,086	$	79	$	29,265		$	—		$	128,430
Receivables, net		45,244		344,460		167,462			(243,823	)		313,343
Inventories		—		129,015		111,422			—			240,437
Deferred income taxes		11,698		38,834		10,547			—			61,079
Prepaid expenses		1,187		39,317		9,470			—			49,974
Other current assets		15,184		4,225		26,240			—			45,649
Total current assets		172,399		555,930		354,406			(243,823	)		838,912
Mineral interests, net		—		29,461		3,026,797			—			3,056,258
Property, plant and equipment, net		5,459		777,882		847,992			—			1,631,333
Deferred income taxes		59,705		67,145		(17,550	)		—			109,300
Goodwill		—		1,713		1,065,041			—			1,066,754
Other long-term assets		4,603,800		13,730		20,976			(4,484,555	)		153,951
	$	4,841,363	$	1,445,861	$	5,297,662		$	(4,728,378	)	$	6,856,508
LIABILITIES AND STOCKHOLDERS' EQUITY
Current debt	$	—	$	29,063	$	27,632		$	—		$	56,695
Accounts payable		245,790		72,018		38,676			(243,823	)		112,661
Accrued expenses		34,027		72,687		122,353			—			229,067
Accumulated postretirement benefits obligation		192		27,055		—			—			27,247
Other current liabilities		20,809		7,398		35,550			—			63,757
Total current liabilities		300,818		208,221		224,211			(243,823	)		489,427
Long-term debt		2,208,163		10,885		49,972			—			2,269,020
Deferred income taxes		—		—		1,029,336			—			1,029,336
Accumulated postretirement benefits obligation		355		550,316		—			—			550,671
Other long-term liabilities		195,510		133,295		52,732			—			381,537
Total liabilities		2,704,846		902,717		1,356,251			(243,823	)		4,719,991
Stockholders' equity		2,136,517		543,144		3,941,411			(4,484,555	)		2,136,517
Total liabilities and stockholders' equity	$	4,841,363	$	1,445,861	$	5,297,662		$	(4,728,378	)	$	6,856,508

Schedule of supplemental condensed consolidating statements of operations (Unaudited)

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

YEAR ENDED DECEMBER 31, 2012

(in thousands)

	Parent (Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Total Consolidated
Revenues:
Sales	$	—		$	1,592,680		$	789,080		$	—	$	2,381,760
Miscellaneous income (loss)		2,233			20,518			(4,616	)		—		18,135
		2,233			1,613,198			784,464			—		2,399,895
Cost and expenses:
Cost of sales (exclusive of depreciation and depletion)		—			1,039,547			757,444			—		1,796,991
Depreciation and depletion		1,379			141,463			173,390			—		316,232
Selling, general and administrative		11,716			71,299			50,452			—		133,467
Postretirement benefits		(449	)		53,301			—			—		52,852
Asset impairment and restructuring		—			—			49,070			—		49,070
Goodwill impairment		—			1,713			1,062,696			—		1,064,409
		12,646			1,307,323			2,093,052			—		3,413,021
Operating income (loss)		(10,413	)		305,875			(1,308,588	)		—		(1,013,126	)
Interest expense		(92,397	)		(30,446	)		(16,513	)		—		(139,356	)
Interest income		158			2			644			—		804
Other loss		—			—			(13,081	)		—		(13,081	)
Income (loss) from continuing operations before income tax expense		(102,652	)		275,431			(1,337,538	)		—		(1,164,759	)
Income tax expense (benefit)		(68,615	)		85,935			(116,524	)		—		(99,204	)
Income (loss) from continuing operations		(34,037	)		189,496			(1,221,014	)		—		(1,065,555	)
Income from discontinued operations		—			5,180			—			—		5,180
Equity in earnings of investments of Issuer		(1,026,338	)		—			—			1,026,338		—
Net income (loss)	$	(1,060,375	)	$	194,676		$	(1,221,014	)	$	1,026,338	$	(1,060,375	)

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

YEAR ENDED DECEMBER 31, 2011

(in thousands)

	Parent (Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Revenues:
Sales	$	—		$	1,694,235		$	868,090		$	—		$	2,562,325
Miscellaneous income (loss)		21,486			8,973			(21,426	)		—			9,033
		21,486			1,703,208			846,664			—			2,571,358
Cost and expenses:
Cost of sales (exclusive of depreciation and depletion)		—			927,465			633,647			—			1,561,112
Depreciation and depletion		776			120,086			109,819			—			230,681
Selling, general and administrative		79,411			43,025			43,313			—			165,749
Postretirement benefits		(1,360	)		41,745			—			—			40,385
		78,827			1,132,321			786,779			—			1,997,927
Operating income (loss)		(57,341	)		570,887			59,885			—			573,431
Interest expense		(90,274	)		(1,629	)		(4,917	)		—			(96,820	)
Interest income		226			15			365			—			606
Other income		—			—			17,606			—			17,606
Income (loss) from continuing operations before income tax expense		(147,389	)		569,273			72,939			—			494,823
Income tax expense (benefit)		(71,566	)		199,886			2,905			—			131,225
Income (loss) from continuing operations		(75,823	)		369,387			70,034			—			363,598
Equity in earnings (losses) of subsidiaries		439,421			—			—			(439,421	)		—
Net income (loss)	$	363,598		$	369,387		$	70,034		$	(439,421	)	$	363,598

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

YEAR ENDED DECEMBER 31, 2010

(in thousands)

	Parent (Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Revenues:
Sales	$	—		$	1,544,033		$	26,812		$	—		$	1,570,845
Miscellaneous income		2,000			11,976			2,909			—			16,885
		2,000			1,556,009			29,721			—			1,587,730
Cost and expenses:
Cost of sales (exclusive of depreciation and depletion)		—			751,810			14,706			—			766,516
Depreciation and depletion		532			83,202			14,968			—			98,702
Selling, general and administrative		8,214			78,758			—			—			86,972
Postretirement benefits		(1,750	)		43,228			—			—			41,478
		6,996			956,998			29,674			—			993,668
Operating income (loss)		(4,996	)		599,011			47			—			594,062
Interest expense		(15,024	)		(2,226	)		—			—			(17,250	)
Interest income		784			—			—			—			784
Income (loss) from continuing operations before income tax expense		(19,236	)		596,785			47			—			577,596
Income tax expense (benefit)		(23,693	)		210,648			1,216			—			188,171
Income (loss) from continuing operations		4,457			386,137			(1,169	)		—			389,425
Loss from discontinued operations		—			(3,628	)		—			—			(3,628	)
Equity in earnings (losses) of subsidiaries		381,340			—			—			(381,340	)		—
Net income (loss)	$	385,797		$	382,509		$	(1,169	)	($	381,340	)	$	385,797

Schedule of supplemental condensed consolidating statements of comprehensive income

SUPPLEMENTAL CONDENSED CONSOLIDATING
STATEMENTS OF COMPREHENSIVE INCOME

YEAR ENDED DECEMBER 31, 2012

(in thousands)

	Parent (Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Net income (loss)	$	(1,060,375	)	$	194,676		$	(1,221,014	)	$	1,026,338		$	(1,060,375	)
Other comprehensive income (loss), net of tax:
Change in pension and postretirement benefit plans, net of tax		(40,501	)		(90,876	)		—			90,876			(40,501	)
Change in unrealized loss on hedges, net of tax		(3,416	)		95			(2,533	)		2,438			(3,416	)
Change in foreign currency translation adjustment		1,774			—			1,774			(1,774	)		1,774
Change in unrealized gain on investments		769			—			769			(769	)		769
Total other comprehensive income (loss), net of tax		(41,374	)		(90,781	)		10			90,771			(41,374	)
Total comprehensive income (loss)	$	(1,101,749	)	$	103,895		$	(1,221,004	)	$	1,117,109		$	(1,101,749	)

SUPPLEMENTAL CONDENSED CONSOLIDATING
STATEMENTS OF COMPREHENSIVE INCOME

YEAR ENDED DECEMBER 31, 2011

(in thousands)

	Parent (Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Net income (loss)	$	363,598		$	369,387		$	70,034		$	(439,421	)	$	363,598
Other comprehensive income (loss), net of tax:
Change in pension and postretirement benefit plans, net of tax		(53,224	)		(9,437	)		—			9,437			(53,224	)
Change in unrealized loss on hedges, net of tax		(716	)		85			2,309			(2,394	)		(716	)
Change in foreign currency translation adjustment		(3,276	)		—			(3,276	)		3,276			(3,276	)
Change in unrealized gain on investments		128			—			128			(128	)		128
Total other comprehensive income (loss), net of tax		(57,088	)		(9,352	)		(839	)		10,191			(57,088	)
Total comprehensive income (loss)	$	306,510		$	360,035		$	69,195		$	(429,230	)	$	306,510

SUPPLEMENTAL CONDENSED CONSOLIDATING
STATEMENTS OF COMPREHENSIVE INCOME

YEAR ENDED DECEMBER 31, 2010

(in thousands)

	Parent (Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Net income (loss)	$	385,797		$	382,509		$	(1,169	)	$	(381,340	)	$	385,797
Other comprehensive income (loss), net of tax:
Change in pension and postretirement benefit plans, net of tax		(5,280	)		(35,677	)		(7,631	)		43,308			(5,280	)
Change in unrealized loss on hedges, net of tax		(596	)		(210	)		(386	)		596			(596	)
Change in foreign currency translation adjustment		—			—			—			—			—
Change in unrealized gain on investments		—			—			—			—			—
Total other comprehensive income (loss), net of tax		(5,876	)		(35,887	)		(8,017	)		43,904			(5,876	)
Total comprehensive income (loss)	$	379,921		$	346,622		$	(9,186	)	$	(337,436	)	$	379,921

Schedule of supplemental condensed consolidating statement of cash flows (Unaudited)

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

YEAR ENDED DECEMBER 31, 2012

(in thousands)

	Parent (Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Cash flows provided by (used in) operating activities	$	(193,700	)	$	548,678		$	(25,071	)	$	—		$	329,907
INVESTING ACTIVITIES
Additions to property, plant and equipment		(4,395	)		(143,206	)		(243,911	)		—			(391,512	)
Proceeds from sales of investments		—			—			13,239			—			13,239
Intercompany notes issued		(293,170	)		—			—			293,170			—
Intercompany notes proceeds		16,513			—			—			(16,513	)		—
Investments in equity affiliates		(238,083	)		—			—			238,083			—
Distributions from equity affiliates		271,847			—			—			(271,847	)		—
Other		—			855			43			—			898
Cash flows used in investing activities		(247,288	)		(142,351	)		(230,629	)		242,893			(377,375	)
FINANCING ACTIVITIES
Proceeds from issuance of debt		496,510			—			—			—			496,510
Borrowings under revolving credit agreement		—			—			510,650			—			510,650
Repayments on revolving credit agreement		—			—			(519,453	)		—			(519,453	)
Retirements of debt		(343,255	)		(8,131	)		(41,465	)		—			(392,851	)
Dividends paid		(31,246	)		—			—			—			(31,246	)
Excess tax benefits from stock-based compensation arrangements		217			—			—			—			217
Proceeds from stock options exercised		161			—			—			—			161
Net consideration paid upon exercise of warrants		(11,535	)		—			—			—			(11,535	)
Debt issuance costs		(24,532	)		—			—			—			(24,532	)
Advances from (to) consolidated entities		340,181			(384,695	)		44,514			—			—
Intercompany notes borrowings		—			—			293,170			(293,170	)		—
Intercompany notes payments		—			—			(16,513	)		16,513			—
Investment from Parent		—			238,083			—			(238,083	)		—
Intercompany dividends		—			(261,102	)		(10,745	)		271,847			—
Other		(766	)		—			—			—			(766	)
Cash flows provided by (used in) financing activities		425,735			(415,845	)		260,158			(242,893	)		27,155
Cash flows provided by (used in) continuing operations		(15,253	)		(9,518	)		4,458			—			(20,313	)
CASH FLOWS FROM DISCONTINUED OPERATIONS
Cash flows provided by investing activities		—			9,500			—			—			9,500
Cash flows provided by discontinued operations		—			9,500			—			—			9,500
Effect of foreign exchange rates on cash		—			—			(1,016	)		—			(1,016	)
Net increase (decrease) in cash and cash equivalents	$	(15,253	)	$	(18	)	$	3,442		$	—		$	(11,829	)
Cash and cash equivalents at beginning of period		99,086			79			29,265			—			128,430
Cash and cash equivalents at end of period	$	83,833		$	61		$	32,707		$	—		$	116,601

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

YEAR ENDED DECEMBER 31, 2011

(in thousands)

	Parent (Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Cash flows provided by (used in) operating activities	$	(208,650	)	$	687,791		$	227,725		$	—		$	706,866
INVESTING ACTIVITIES
Additions to property, plant and equipment		(93	)		(143,529	)		(293,083	)		—			(436,705	)
Acquisition of Western Coal Corp., net of cash acquired		(2,466,758	)		—			34,065			—			(2,432,693	)
Proceeds from sales of investments		—			—			27,325			—			27,325
Intercompany notes issued		(50,738	)		—			—			50,738			—
Distributions from equity investments		516,407			—			—			(516,407	)		—
Other		23			273			1,117			—			1,413
Cash flows used in investing activities		(2,001,159	)		(143,256	)		(230,576	)		(465,669	)		(2,840,660	)
FINANCING ACTIVITIES
Proceeds from issuance of debt		2,350,000			—			—			—			2,350,000
Borrowings under revolving credit agreement		—			—			71,259			—			71,259
Repayments on revolving credit agreement		—			—			(61,259	)		—			(61,259	)
Retirements of debt		(258,062	)		(12,300	)		(20,268	)		—			(290,630	)
Dividends paid		(30,042	)		—			—			—			(30,042	)
Excess tax benefits from stock-based compensation arrangements		8,929			—			—			—			8,929
Proceeds from stock options exercised		8,920			—			—			—			8,920
Debt issuance costs		(80,027	)		—			—			—			(80,027	)
Advances from (to) consolidated entities		19,967			(14,461	)		(5,506	)		—			—
Intercompany borrowings		—			—			50,738			(50,738	)		—
Intercompany dividends		—			(516,407	)		—			516,407			—
Other		(5,203	)		—			—			—			(5,203	)
Cash flows provided by (used in) financing activities		2,014,482			(543,168	)		34,964			465,669			1,971,947
Effect of foreign exchange rates on cash		—			—			(3,668	)		—			(3,668	)
Net increase (decrease) in cash and cash equivalents	$	(195,327	)	$	1,367		$	28,445		$	—		$	(165,515	)
Cash and cash equivalents at beginning of period		294,413			(1,823	)		820			—			293,410
Add: Cash and cash equivalents of discontinued operations at beginning of year		—			535			—			—			535
Cash and cash equivalents at end of period	$	99,086		$	79		$	29,265		$	—		$	128,430

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

YEAR ENDED DECEMBER 31, 2010

(in thousands)

	Parent (Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Cash flows provided by (used in) operating activities	$	(246,744	)	$	806,528		$	14,366		$	—		$	574,150
INVESTING ACTIVITIES
Additions to property, plant and equipment		(5,177	)		(146,636	)		(5,663	)		—			(157,476	)
Acquisition of HighMount Exploration & Production Alabama, LLC		—			(209,964	)		—			—			(209,964	)
Distributions from equity investments		618,942			—			—			(618,942	)		—
Other		—			(3,414	)		—			—			(3,414	)
Cash flows provided by (used in) investing activities		613,765			(360,014	)		(5,663	)		(618,942	)		(370,854	)
FINANCING ACTIVITIES
Retirements of debt		(1,436	)		(25,536	)		—			—			(26,972	)
Dividends paid		(25,266	)		—			—			—			(25,266	)
Purchases of stock under stock repurchase program		(65,438	)		—			—			—			(65,438	)
Excess tax benefits from stock-based compensation arrangements		28,875			—			—			—			28,875
Proceeds from stock options exercised		17,134			—			—			—			17,134
Advances from (to) consolidated entities		(187,811	)		196,886			(9,075	)		—			—
Intercompany dividends		—			(618,942	)		—			618,942			—
Other		(3,332	)		317			—			—			(3,015	)
Cash flows provided by (used in) financing activities		(237,274	)		(447,275	)		(9,075	)		618,942			(74,682	)
Cash flows provided by (used in) continuing operations		129,747			(761	)		(372	)		—			128,614
CASH FLOWS FROM DISCONTINUED OPERATIONS
Cash flows used in operating activities		—			(6,268	)		—			—			(6,268	)
Cash flows provided by investing activities		—			5,066			—			—			5,066
Cash flows used in discontinued operations		—			(1,202	)		—			—			(1,202	)
Net increase (decrease) in cash and cash equivalents	$	129,747		$	(1,963	)	$	(372	)	$	—		$	127,412
Cash and cash equivalents at beginning of period		164,666			(579	)		1,192			—			165,279
Add: Cash and cash equivalents of discontinued operations at beginning of year		—			1,254			—			—			1,254
Less: Cash and cash equivalents of discontinued operations at end of year		—			535			—			—			535
Cash and cash equivalents at end of period	$	294,413		$	(1,823	)	$	820		$	—		$	293,410