Restructuring and Asset Impairment

12 Months Ended

Dec. 31, 2013

Restructuring and Asset Impairment

Restructuring and Asset Impairment

NOTE 5—Restructuring and Asset Impairment

        During the fourth quarter of 2013, the Company closed the North River Mine in the U.S. Operations segment as all of the economically recoverable reserves were mined. The Company recognized a gain of approximately $17.0 million due to the release of a below market contract liability that was obtained through the acquisition of the North River Mine, primarily offset by restructuring and asset impairment charges of approximately $9.3 million, all related to the accelerated closure of the North River Mine. The Company also curtailed production at the Willow Creek Mine in the Canadian and U.K. Operations segment in the first half of 2013 due to depressed metallurgical coal prices. In connection with this curtailment, the Company recognized restructuring charges of approximately $10.7 million.

        In the fourth quarter of 2012, the Company curtailed operations at its Aberpergwm underground coal mine in the U.K. and recognized restructuring and asset impairment charges of $9.1 million, of which $6.0 million related to severance and other obligations and $3.1 million related to the impairment of property, plant and equipment as the carrying values of certain assets exceeded their fair value. The Company also recorded a pre-tax charge of $40 million ($25 million after-tax) in the third quarter of 2012, to write-off capitalized exploratory costs associated with a natural gas exploration project that had not proved capable of providing commercially sufficient quantities of proven reserves to be economical.