Supplemental Guarantor and Non-Guarantor Financial Information (Tables)

9 Months Ended

Sep. 30, 2014

Supplemental Guarantor and Non-Guarantor Financial Information

Schedule of supplemental condensed consolidating balance sheets

SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEETS (UNAUDITED)

SEPTEMBER 30, 2014

(in thousands)

	Parent (Issuer)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Total Consolidated
ASSETS
Cash and cash equivalents	$	566,639		$	70	$	47,914	$	—		$	614,623
Receivables, net	101,931			96,058		19,094		—			217,083
Intercompany receivables	—			218,633		55,096		(273,729		)	—
Intercompany loans receivable	820			—		—		(820		)	—
Inventories	—			112,507		113,567		—			226,074
Deferred income taxes	26,794			2,495		957		—			30,246
Prepaid expenses	2,364			36,829		4,127		—			43,320
Other current assets	10,252			510		2,237		—			12,999
Total current assets	708,800			467,102		242,992		(274,549		)	1,144,345
Mineral interests, net	—			6,496		2,861,073		—			2,867,569
Property, plant and equipment, net	7,621			702,635		802,909		—			1,513,165
Deferred income taxes	3,046			8,377		—		(11,423		)	—
Investment in subsidiaries	3,390,858			79,885		—		(3,470,743		)	—
Other long-term assets	87,972			17,995		9,466		—			115,433
	$	4,198,297		$	1,282,490	$	3,916,440	$	(3,756,715	)	$	5,640,512
LIABILITIES AND STOCKHOLDERS' EQUITY
Current debt	$	—		$	7,071	$	7,107	$	—		$	14,178
Accounts payable	3,262			39,786		8,846		—			51,894
Accrued expenses	95,150			57,269		27,254		—			179,673
Intercompany payables	273,729			—		—		(273,729		)	—
Intercompany loans payable	—			—		820		(820		)	—
Accumulated other postretirement benefits obligation	1,370			29,941		—		—			31,311
Other current liabilities	175,137			21,371		24,901		—			221,409
Total current liabilities	548,648			155,438		68,928		(274,549		)	498,465
Long-term debt	3,168,520			7,544		155		—			3,176,219
Accumulated other postretirement benefits obligation	(849		)	577,727		—		—			576,878
Deferred income taxes	—			—		762,988		(11,423		)	751,565
Other long-term liabilities	27,060			81,657		73,750		—			182,467
Total liabilities	3,743,379			822,366		905,821		(285,972		)	5,185,594
Stockholders' equity:	454,918			460,124		3,010,619		(3,470,743		)	454,918
Total liabilities and stockholders' equity	$	4,198,297		$	1,282,490	$	3,916,440	$	(3,756,715	)	$	5,640,512

SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEETS (Unaudited)

DECEMBER 31, 2013

(in thousands)

	Parent (Issuer)		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Total Consolidated
ASSETS
Cash and cash equivalents	$	234,150	$	101	$	26,567	$	—		$	260,818
Receivables, net	113,936		90,460		77,367		—			281,763
Intercompany receivables	—		30,126		57,778		(87,904		)	—
Intercompany loans receivable	63,549		1,104,282		—		(1,167,831		)	—
Inventories	—		168,434		144,213		—			312,647
Deferred income taxes	23,957		12,154		956		—			37,067
Prepaid expenses	2,245		34,011		2,766		—			39,022
Other current assets	15,257		440		2,334		—			18,031
Total current assets	453,094		1,440,008		311,981		(1,255,735		)	949,348
Mineral interests, net	—		7,294		2,897,708		—			2,905,002
Property, plant and equipment, net	7,248		764,406		865,898		—			1,637,552
Deferred income taxes	3,049		4,458		—		(7,507		)	—
Investment in subsidiaries	4,409,683		86,357		—		(4,496,040		)	—
Other long-term assets	73,564		10,323		15,071		—			98,958
	$	4,946,638	$	2,312,846	$	4,090,658	$	(5,759,282	)	$	5,590,860
LIABILITIES AND STOCKHOLDERS' EQUITY
Current debt	$	—	$	1,313	$	7,897	$	—		$	9,210
Accounts payable	5,604		64,678		22,430		—			92,712
Accrued expenses	34,551		53,582		45,737		—			133,870
Intercompany payables	87,904		—		—		(87,904		)	—
Intercompany loans payable	1,104,282		—		63,549		(1,167,831		)	—
Accumulated other postretirement benefits obligation	94		29,942		—		—			30,036
Other current liabilities	164,364		27,062		22,647		—			214,073
Total current liabilities	1,396,799		176,577		162,260		(1,255,735		)	479,901
Long-term debt	2,763,957		—		5,665		—			2,769,622
Accumulated other postretirement benefits obligation	263		570,449		—		—			570,712
Deferred income taxes	—		—		830,374		(7,507		)	822,867
Other long-term liabilities	32,925		73,420		88,719		—			195,064
Total liabilities	4,193,944		820,446		1,087,018		(1,263,242		)	4,838,166
Stockholders' equity:	752,694		1,492,400		3,003,640		(4,496,040		)	752,694
Total liabilities and stockholders' equity	$	4,946,638	$	2,312,846	$	4,090,658	$	(5,759,282	)	$	5,590,860

Schedule of supplemental condensed consolidating statements of operations

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(UNAUDITED)

THREE MONTHS ENDED SEPTEMBER 30, 2014

(in thousands)

	Parent (Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Total Consolidated
Revenues:
Sales	$	—		$	270,176		$	49,366		$	—	$	319,542
Miscellaneous income (loss)	(40		)	1,818			8,226			—		10,004
	(40		)	271,994			57,592			—		329,546
Cost and expenses:
Cost of sales (exclusive of depreciation and depletion)	—			238,470			59,455			—		297,925
Depreciation and depletion	612			32,295			25,506			—		58,413
Selling, general and administrative	1,387			10,868			4,343			—		16,598
Postretirement benefits	(45		)	13,914			—			—		13,869
Restructuring and asset impairments	50			37			(2,513		)	—		(2,426		)
	2,004			295,584			86,791			—		384,379
Operating loss	(2,044		)	(23,590		)	(29,199		)	—		(54,833		)
Interest expense, net	(77,856		)	(257		)	(1,118		)	—		(79,231		)
Gain on extinguishment of debt	3,394			—			—			—		3,394
Other income, net	1,424			—			—			—		1,424
Loss before income tax expense (benefit)	(75,082		)	(23,847		)	(30,317		)	—		(129,246		)
Income tax expense (benefit)	(404		)	17			(29,957		)	—		(30,344		)
Equity in net losses of subsidiaries	(24,224		)	—			—			24,224		—
Net loss	$	(98,902	)	$	(23,864	)	$	(360	)	$	24,224	$	(98,902	)

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(UNAUDITED)

THREE MONTHS ENDED SEPTEMBER 30, 2013

(in thousands)

	Parent (Issuer)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations		Total Consolidated
Revenues:
Sales	$	—		$	302,328	$	143,609		$	—	$	445,937
Miscellaneous income (loss)	(932		)	5,669		5,122			—		9,859
	(932		)	307,997		148,731			—		455,796
Cost and expenses:
Cost of sales (exclusive of depreciation and depletion)	—			234,913		160,398			—		395,311
Depreciation and depletion	543			43,600		38,843			—		82,986
Selling, general and administrative	(3,730		)	13,854		11,749			—		21,873
Postretirement benefits	(54		)	14,761		—			—		14,707
	(3,241		)	307,128		210,990			—		514,877
Operating income (loss)	2,309			869		(62,259		)	—		(59,081		)
Interest income (expense), net	(65,013		)	8,465		(1,814		)	—		(58,362		)
Loss on extinguishment of debt	(874		)	—		—			—		(874		)
Other income (loss), net	(234		)	218		609			—		593
Income (loss) before income tax expense (benefit)	(63,812		)	9,552		(63,464		)	—		(117,724		)
Income tax expense (benefit)	(715		)	1,368		(17,653		)	—		(17,000		)
Equity in net losses of subsidiaries	(37,627		)	—		—			37,627		—
Net income (loss)	$	(100,724	)	$	8,184	$	(45,811	)	$	37,627	$	(100,724	)

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (UNAUDITED)

NINE MONTHS ENDED SEPTEMBER 30, 2014

(in thousands)

	Parent (Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Total Consolidated
Revenues:
Sales	$	—		$	854,074		$	248,679		$	—	$	1,102,753
Miscellaneous income	939			5,512			12,578			—		19,029
	939			859,586			261,257			—		1,121,782
Cost and expenses:
Cost of sales (exclusive of depreciation and depletion)	—			700,424			291,137			—		991,561
Depreciation and depletion	1,873			99,343			103,437			—		204,653
Selling, general and administrative	4,501			34,739			17,139			—		56,379
Postretirement benefits	(133		)	41,740			—			—		41,607
Restructuring and asset impairments	564			23,723			4,629			—		28,916
	6,805			899,969			416,342			—		1,323,116
Operating loss	(5,866		)	(40,383		)	(155,085		)	—		(201,334		)
Interest income (expense), net	(222,598		)	6,705			(2,172		)	—		(218,065		)
Gain on extinguishment of debt	902			—			—			—		902
Other income (loss), net	705			—			(59		)	—		646
Loss before income tax benefit	(226,857		)	(33,678		)	(157,316		)	—		(417,851		)
Income tax benefit	(2,837		)	(4,342		)	(68,201		)	—		(75,380		)
Equity in net losses of subsidiaries	(118,451		)	—			—			118,451		—
Net loss	$	(342,471	)	$	(29,336	)	$	(89,115	)	$	118,451	$	(342,471	)

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (UNAUDITED)

NINE MONTHS ENDED SEPTEMBER 30, 2013

(in thousands)

	Parent (Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Total Consolidated
Revenues:
Sales	$	—		$	916,338		$	457,006		$	—	$	1,373,344
Miscellaneous income (loss)	(159		)	8,638			6,812			—		15,291
	(159		)	924,976			463,818			—		1,388,635
Cost and expenses:
Cost of sales (exclusive of depreciation and depletion)	—			693,904			489,957			—		1,183,861
Depreciation and depletion	1,539			117,683			113,274			—		232,496
Selling, general and administrative	6,420			41,108			32,148			—		79,676
Postretirement benefits	(164		)	44,321			—			—		44,157
Restructuring and asset impairments	—			(8,947		)	10,646			—		1,699
	7,795			888,069			646,025			—		1,541,889
Operating income (loss)	(7,954		)	36,907			(182,207		)	—		(153,254		)
Interest income (expense), net	(173,640		)	21,748			(5,422		)	—		(157,314		)
Loss on extinguishment of debt	(6,875		)	—			—			—		(6,875		)
Other income (loss), net	(234		)	218			—			—		(16		)
Income (loss) before income tax expense (benefit)	(188,703		)	58,873			(187,629		)	—		(317,459		)
Income tax expense (benefit)	(49,490		)	6,505			(89,814		)	—		(132,799		)
Equity in net losses of subsidiaries	(45,447		)	—			—			45,447		—
Net income (loss)	$	(184,660	)	$	52,368		$	(97,815	)	$	45,447	$	(184,660	)

Schedule of supplemental condensed consolidating statements of comprehensive income (loss)

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE

INCOME (LOSS) (UNAUDITED)

THREE MONTHS ENDED SEPTEMBER 30, 2013

(in thousands)

	Parent (Issuer)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Net income (loss)	$	(100,724	)	$	8,184	$	(45,811	)	$	37,627		$	(100,724	)
Other comprehensive income (loss):
Change in pension and postretirement benefit plans, net of tax	4,659			13,338		—			(13,338		)	4,659
Change in unrealized gain on hedges, net of tax	653			12		—			(12		)	653
Change in foreign currency translation adjustment	14,847			—		14,847			(14,847		)	14,847
Change in unrealized gain on investments, net of tax	(940		)	—		(940		)	940			(940		)
Total other comprehensive income	19,219			13,350		13,907			(27,257		)	19,219
Total comprehensive income (loss)	$	(81,505	)	$	21,534	$	(31,904	)	$	10,370		$	(81,505	)

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE

INCOME (LOSS) (UNAUDITED)

THREE MONTHS ENDED SEPTEMBER 30, 2014

(in thousands)

	Parent (Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Net loss	$	(98,902	)	$	(23,864	)	$	(360	)	$	24,224		$	(98,902	)
Other comprehensive income (loss):
Change in pension and postretirement benefit plans, net of tax	2,977			2,963			—			(2,963		)	2,977
Change in foreign currency translation adjustment	(21,672		)	—			(21,672		)	21,672			(21,672		)
Total other comprehensive income (loss)	(18,695		)	2,963			(21,672		)	18,709			(18,695		)
Total comprehensive loss	$	(117,597	)	$	(20,901	)	$	(22,032	)	$	42,933		$	(117,597	)

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE

INCOME (LOSS) (UNAUDITED)

NINE MONTHS ENDED SEPTEMBER 30, 2014

(in thousands)

	Parent (Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Net loss	$	(342,471	)	$	(29,336	)	$	(89,115	)	$	118,451		$	(342,471	)
Other comprehensive income (loss):
Change in pension and postretirement benefit plans, net of tax	9,994			9,954			—			(9,954		)	9,994
Change in unrealized gain on hedges, net of tax	1,679			3			—			(3		)	1,679
Change in foreign currency translation adjustment	(8,244		)	—			(8,244		)	8,244			(8,244		)
Total other comprehensive income (loss)	3,429			9,957			(8,244		)	(1,713		)	3,429
Total comprehensive loss	$	(339,042	)	$	(19,379	)	$	(97,359	)	$	116,738		$	(339,042	)

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE

INCOME (LOSS) (UNAUDITED)

NINE MONTHS ENDED SEPTEMBER 30, 2013

(in thousands)

	Parent (Issuer)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Net income (loss)	$	(184,660	)	$	52,368	$	(97,815	)	$	45,447		$	(184,660	)
Other comprehensive income (loss):
Change in pension and postretirement benefit plans, net of tax	13,976			13,338		—			(13,338		)	13,976
Change in unrealized gain on hedges, net of tax	1,901			49		—			(49		)	1,901
Change in foreign currency translation adjustment	(2,239		)	—		(2,239		)	2,239			(2,239		)
Change in unrealized gain on investments, net of tax	(897		)	—		(897		)	897			(897		)
Total other comprehensive income (loss)	12,741			13,387		(3,136		)	(10,251		)	12,741
Total comprehensive income (loss)	$	(171,919	)	$	65,755	$	(100,951	)	$	35,196		$	(171,919	)

Schedule of supplemental condensed consolidating statement of cash flows

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(UNAUDITED)

NINE MONTHS ENDED SEPTEMBER 30, 2014

(in thousands)

	Parent (Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Cash flows provided by (used in) operating activities	$	(124,771	)	$	115,279		$	(11,294	)	$	—		$	(20,786	)
INVESTING ACTIVITIES
Additions to property, plant and equipment	(2,758		)	(60,059		)	(6,916		)	—			(69,733		)
Proceeds from sale of property, plant and equipment	—			24,112			—			—			24,112
Intercompany loans made	(5,200		)	—			—			5,200			—
Intercompany loans received	1,828			—			—			(1,828		)	—
Other	—			—			134			—			134
Cash flows used in investing activities	(6,130		)	(35,947		)	(6,782		)	3,372			(45,487		)
FINANCING ACTIVITIES
Proceeds from issuance of debt	869,800			—			—			—			869,800
Retirements of debt	(406,566		)	(5,790		)	(5,965		)	—			(418,321		)
Dividends paid	(1,944		)	—			—			—			(1,944		)
Debt issuance costs	(27,748		)	—			—			—			(27,748		)
Advances from (to) consolidated entities	30,043			(73,573		)	43,530			—			—
Intercompany notes borrowings	—			—			5,200			(5,200		)	—
Intercompany notes payments	—			—			(1,828		)	1,828			—
Other	(195		)	—			—			—			(195		)
Cash flows provided by (used in) financing activities	463,390			(79,363		)	40,937			(3,372		)	421,592
Effect of foreign exchange rates on cash	—			—			(1,514		)	—			(1,514		)
Net increase (decrease) in cash and cash equivalents	332,489			(31		)	21,347			—			353,805
Cash and cash equivalents at beginning of period	234,150			101			26,567			—			260,818
Cash and cash equivalents at end of period	$	566,639		$	70		$	47,914		$	—		$	614,623

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(UNAUDITED)

NINE MONTHS ENDED SEPTEMBER 30, 2013

(in thousands)

	Parent (Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Cash flows provided by (used in) operating activities	$	(165,441	)	$	163,367		$	(41,952	)	$	—		$	(44,026	)
INVESTING ACTIVITIES
Additions to property, plant and equipment	(863		)	(84,623		)	(23,249		)	—			(108,735		)
Intercompany loans made	(33,100		)	—			—			33,100			—
Intercompany loans received	30,500			—			—			(30,500		)	—
Investments in subsidiaries	—			—			—			—			—
Proceeds from sales of investments	—			—			1,559			—			1,559
Other	—			—			663			—			663
Cash flows used in investing activities	(3,463		)	(84,623		)	(21,027		)	2,600			(106,513		)
FINANCING ACTIVITIES
Proceeds from issuance of debt	897,412			—			—			—			897,412
Retirements of debt	(496,062		)	(14,193		)	—			—			(510,255		)
Dividends paid	(16,264		)	—			—			—			(16,264		)
Debt issuance costs	(42,128		)	—			—			—			(42,128		)
Advances from (to) consolidated entities	4,729			(64,763		)	60,034			—			—
Intercompany notes borrowings	—			—			33,100			(33,100		)	—
Intercompany notes payments	—			—			(30,500		)	30,500			—
Other	(883		)	151			—			—			(732		)
Cash flows provided by (used in) financing activities	346,804			(78,805		)	62,634			(2,600		)	328,033
Effect of foreign exchange rates on cash	—			—			(961		)	—			(961		)
Net increase (decrease) in cash and cash equivalents	177,900			(61		)	(1,306		)	—			176,533
Cash and cash equivalents at beginning of period	83,833			61			32,707			—			116,601
Cash and cash equivalents at end of period	$	261,733		$	—		$	31,401		$	—		$	293,134