Arch Resources (ARCH) 10-K 1 Mar 10 2009 FY Annual report Financial data

Document and Company Informatio

Document and Company Information (USD $)
In Billions, except Share data	12 Months Ended Dec. 31, 2009	Feb. 22, 2010	Jun. 30, 2009
Document and Company Information [Abstract]
Entity Registrant Name	ARCH COAL INC
Entity Central Index Key	0001037676
Document Type	10-K
Document Period End Date	2009-12-31
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			2.2
Entity Common Stock, Shares Outstanding		162,474,101

Consolidated Statements of Inco

Consolidated Statements of Income (USD $)
In Thousands, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
REVENUES
Coal sales	$2,576,081	$2,983,806	$2,413,644
COSTS, EXPENSES AND OTHER
Cost of coal sales	2,070,715	2,183,922	1,888,285
Depreciation, depletion and amortization	301,608	293,553	243,695
Amortization of acquired sales contracts, net	19,623	(705)	(1,633)
Selling, general and administrative expenses	97,787	107,121	84,446
Change in fair value of coal derivatives and coal trading activities, net	(12,056)	(55,093)	(7,292)
Costs related to acquisition of Jacobs Ranch	13,726	0	0
Other operating income, net	(39,036)	(6,262)	(24,488)
Total operating expenses	2,452,367	2,522,536	2,183,013
Income from operations	123,714	461,270	230,631
Interest expense, net:
Interest expense	(105,932)	(76,139)	(74,865)
Interest income	7,622	11,854	2,600
Interest expense, net	(98,310)	(64,285)	(72,265)
Other non-operating expense:
Expenses resulting from early debt extinguishment and termination of hedge accounting for interest rate swaps	0	0	(1,919)
Other non-operating expense	0	0	(354)
Total other non-operating expense	0	0	(2,273)
Income before income taxes	25,404	396,985	156,093
Provision for (benefit from) income taxes	(16,775)	41,774	(19,850)
Net income	42,179	355,211	175,943
Less: Net income attributable to noncontrolling interest	(10)	(881)	(1,014)
Net income attributable to Arch Coal, Inc.	$42,169	$354,330	$174,929
EARNINGS PER COMMON SHARE
Basic earnings per common share	0.28	2.47	1.23
Diluted earnings per common share	0.28	2.45	1.21
Basic weighted average shares outstanding	150,963	143,604	142,518
Diluted weighted average shares outstanding	151,272	144,416	144,019
Dividends declared per common share	0.36	0.34	0.27

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Thousands	Dec. 31, 2009	Dec. 31, 2008
Current assets:
Cash and cash equivalents	$61,138	$70,649
Trade accounts receivable	190,738	215,053
Other receivables	40,632	43,419
Inventories	240,776	191,568
Prepaid royalties	21,085	43,780
Deferred income taxes	0	52,918
Coal derivative assets	18,807	43,173
Other	113,606	45,818
Total current assets	686,782	706,378
Property, plant and equipment:
Coal lands and mineral rights	2,417,151	1,818,657
Plant and equipment	2,261,929	2,031,561
Deferred mine development	832,976	762,746
Property, plant and equipment, net	5,512,056	4,612,964
Less accumulated depreciation, depletion and amortization	(2,145,870)	(1,909,881)
Property, plant and equipment, net	3,366,186	2,703,083
Other assets:
Prepaid royalties	86,622	66,918
Goodwill	113,701	46,832
Deferred income taxes	354,869	294,682
Equity investments	87,268	87,761
Other	145,168	73,310
Total other assets	787,628	569,503
Total assets	4,840,596	3,978,964
Current liabilities:
Accounts payable	128,402	186,322
Coal derivative liabilities	2,244	10,757
Deferred income taxes	5,901	0
Accrued expenses and other current liabilities	227,716	249,203
Current maturities of debt and short-term borrowings	267,464	213,465
Total current liabilities	631,727	659,747
Long-term debt	1,540,223	1,098,948
Asset retirement obligations	305,094	255,369
Accrued pension benefits	68,266	73,486
Accrued postretirement benefits other than pension	43,865	58,163
Accrued workers' compensation	29,110	30,107
Other noncurrent liabilities	98,243	65,526
Total liabilities	2,716,528	2,241,346
Redeemable noncontrolling interest	8,962	8,885
Stockholders' equity:
Common stock, $0.01 par value, authorized 260,000 shares, issued 163,953 and 144,345 shares at December 31, 2009 and 2008, respectively	1,643	1,447
Paid-in capital	1,721,230	1,381,496
Treasury stock, 1,512 shares at December 31, 2009 and 2008, at cost	(53,848)	(53,848)
Retained earnings	465,934	478,734
Accumulated other comprehensive loss	(19,853)	(79,096)
Total stockholders' equity	2,115,106	1,728,733
Total liabilities and stockholders' equity	$4,840,596	$3,978,964

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (USD $)
Share data in Thousands	Dec. 31, 2009	Dec. 31, 2008
Stockholders' equity:
Common stock, par value	0.01	0.01
Common stock, shares authorized	260,000	260,000
Common stock, shares issued	163,953	144,345
Treasury stock, shares	1,512	1,512

Consolidated Statements of Stoc

Consolidated Statements of Stockholders Equity (USD $)
In Thousands	Preferred Stock	Common Stock	Paid-In Capital	Retained Earnings	Treasury Stock at Cost	Accumulated Other Comprehensive Loss	Total
Beginning Balance at Dec. 31, 2006	$2	$1,426	$1,345,188	$38,147	$0	($19,169)	$1,365,594
Comprehensive income:
Net income attributable to Arch Coal, Inc.				174,929			174,929
Pension, postretirement and other post-employment benefits						11,070	11,070
Net amount reclassified to income						2,490	2,490
Unrealized losses on available-for-sale securities						(2,815)	(2,815)
Unrealized gains (losses) on derivatives						1,584	1,584
Net amount reclassified to income						(5,208)	(5,208)
Total comprehensive income				174,929		17,537	192,466
Dividends:
Common ($0.36 per share, $0.34 per share and $0.27 per share for the year 2009, 2008 and 2007, respectively)				(38,696)			(38,696)
Preferred ($2.50 per share and $2.50 per share for the year 2008 and 2007, respectively)				(219)			(219)
Issuance of 45 shares, 261 shares and 186 shares of common stock under the stock incentive plan - restricted stock and restricted stock units for the year 2009, 2008 and 2007, respectively		2	(2)				0
Issuance of 405 shares and 283 shares of common stock upon conversion of preferred stock for the year 2008 and 2007, respectively	(1)	3	(2)				0
Issuance of 13 shares, 521 shares and 510 shares of common stock under the stock incentive plan - stock options including income tax benefits for the year 2009, 2008 and 2007, respectively		5	7,734				7,739
Employee stock-based compensation expense			5,777				5,777
Effect of adoption of FIN 48				(975)			(975)
Ending Balance at Dec. 31, 2007	1	1,436	1,358,695	173,186	0	(1,632)	1,531,686
Comprehensive income:
Net income attributable to Arch Coal, Inc.				354,330			354,330
Pension, postretirement and other post-employment benefits						(31,907)	(31,907)
Net amount reclassified to income						(684)	(684)
Unrealized losses on available-for-sale securities						(349)	(349)
Net amount reclassified to income						1,005	1,005
Unrealized gains (losses) on derivatives						(44,128)	(44,128)
Net amount reclassified to income						1,401	1,401
Total comprehensive income				354,330		(77,464)	276,866
Dividends:
Common ($0.36 per share, $0.34 per share and $0.27 per share for the year 2009, 2008 and 2007, respectively)				(48,769)			(48,769)
Preferred ($2.50 per share and $2.50 per share for the year 2008 and 2007, respectively)				(12)			(12)
Issuance of 45 shares, 261 shares and 186 shares of common stock under the stock incentive plan - restricted stock and restricted stock units for the year 2009, 2008 and 2007, respectively		2	(2)				0
Issuance of 405 shares and 283 shares of common stock upon conversion of preferred stock for the year 2008 and 2007, respectively	(1)	4	(3)				0
Preferred stock redemption			(24)	(1)			(25)
Issuance of 13 shares, 521 shares and 510 shares of common stock under the stock incentive plan - stock options including income tax benefits for the year 2009, 2008 and 2007, respectively		5	6,314				6,319
Employee stock-based compensation expense			16,516				16,516
Purchase of 1,512 shares of common stock under stock repurchase program					(53,848)		(53,848)
Ending Balance at Dec. 31, 2008	0	1,447	1,381,496	478,734	(53,848)	(79,096)	1,728,733
Comprehensive income:
Net income attributable to Arch Coal, Inc.				42,169			42,169
Pension, postretirement and other post-employment benefits						12,176	12,176
Net amount reclassified to income						718	718
Unrealized losses on available-for-sale securities						(86)	(86)
Unrealized gains (losses) on derivatives						2,436	2,436
Net amount reclassified to income						(43,999)	(43,999)
Total comprehensive income				42,169		59,243	101,412
Dividends:
Common ($0.36 per share, $0.34 per share and $0.27 per share for the year 2009, 2008 and 2007, respectively)				(54,969)			(54,969)
Issuance of 19,550 common shares		196	326,256				326,452
Issuance of 45 shares, 261 shares and 186 shares of common stock under the stock incentive plan - restricted stock and restricted stock units for the year 2009, 2008 and 2007, respectively		0	0				0
Issuance of 13 shares, 521 shares and 510 shares of common stock under the stock incentive plan - stock options including income tax benefits for the year 2009, 2008 and 2007, respectively		0	84				84
Employee stock-based compensation expense			13,394				13,394
Ending Balance at Dec. 31, 2009	$0	$1,643	$1,721,230	$465,934	($53,848)	($19,853)	$2,115,106

1_Consolidated Statements of St

Consolidated Statements of Stockholders Equity (Parenthetical) (USD $)
Share data in Thousands, except Per Share data	Preferred Stock	Common Stock	Paid-In Capital	Retained Earnings	Treasury Stock at Cost	Total
Preferred dividends, per share				2.5
Issuance of shares of common stock under the stock incentive plan - restricted stock and restricted stock units		186	186
Issuance of shares of common stock upon conversion of preferred stock	283	283	283
Issuance of shares of common stock under the stock incentive plan - stock options		510	510			510
Preferred dividends, per share				2.5
Issuance of shares of common stock under the stock incentive plan - restricted stock and restricted stock units		261	261
Issuance of shares of common stock upon conversion of preferred stock	405	405	405
Issuance of shares of common stock under the stock incentive plan - stock options		521	521			521
Purchase of shares of common stock under stock repurchase program					1,512	1,512
Common dividends, per share				0.36		0.36
Common share, shares issued		19,550	19,550			19,550
Issuance of shares of common stock under the stock incentive plan - restricted stock and restricted stock units		45	45			45
Issuance of shares of common stock under the stock incentive plan - stock options		13	13			13

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Thousands	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
OPERATING ACTIVITIES
Net income	$42,179	$355,211	$175,943
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation, depletion and amortization	301,608	293,553	243,695
Amortization of acquired sales contracts, net	19,623	(705)	(1,633)
Prepaid royalties expensed	29,746	36,227	11,962
Net (gain) loss on dispositions of property, plant and equipment	310	(243)	(17,769)
Employee stock-based compensation	13,394	12,618	5,777
Other non-operating expense	0	0	2,273
Changes in operating assets and liabilities:
Receivables	47,794	(9,871)	10,254
Inventories	(28,518)	(13,783)	(55,471)
Coal derivative assets and liabilities	32,266	(41,183)	(8,532)
Accounts payable, accrued expenses and other current liabilities	(44,764)	21,823	(59,634)
Deferred income taxes	(34,668)	15,222	(31,825)
Accrued postretirement benefits other than pension	4,142	4,202	3,733
Asset retirement obligations	18,741	16,437	21,609
Accrued workers' compensation	(2,909)	(528)	971
Other	(15,964)	(9,843)	29,457
Cash provided by operating activities	382,980	679,137	330,810
INVESTING ACTIVITIES
Capital expenditures	(323,150)	(497,347)	(488,363)
Payments made to acquire Jacobs Ranch	(768,819)	0	0
Proceeds from dispositions of property, plant and equipment	825	1,135	70,296
Additions to prepaid royalties	(26,755)	(19,764)	(19,713)
Purchases of investments and advances to affiliates	(10,925)	(7,466)	(5,540)
Consideration paid related to prior business acquisitions	(4,767)	(6,800)	0
Reimbursement of deposit on equipment	3,209	2,697	18,325
Cash used in investing activities	(1,130,382)	(527,545)	(424,995)
FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt	584,784	0	0
Proceeds from the sale of common stock	326,452	0	0
Purchases of treasury stock	0	(53,848)	0
Net increase (decrease) in borrowings under lines of credit and commercial paper program	(85,815)	13,493	133,476
Net payments on other debt	(2,986)	(2,907)	(2,696)
Debt financing costs	(29,659)	(233)	(202)
Dividends paid	(54,969)	(48,847)	(38,945)
Issuance of common stock under incentive plans	84	6,319	5,109
Cash provided by (used in) financing activities	737,891	(86,023)	96,742
Increase (decrease) in cash and cash equivalents	(9,511)	65,569	2,557
Cash and cash equivalents, beginning of year	70,649	5,080	2,523
Cash and cash equivalents, end of year	61,138	70,649	5,080
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the year for interest	(76,801)	(71,620)	(69,866)
Cash (paid) received during the year for income taxes	($17,482)	($22,830)	$2,145

Accounting Policies

Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Accounting Policies [Abstract]
Accounting Policies	1. Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of Arch Coal, Inc. and its subsidiaries and controlled entities (the Company). The Companys primary business is the production of steam and metallurgical coal from surface and underground mines located throughout the United States for sale to utility, steel, industrial and export markets. The Companys mines are located in southern West Virginia, eastern Kentucky, Virginia, Wyoming, Colorado and Utah. All subsidiaries (except as noted below) are wholly-owned. Intercompany transactions and accounts have been eliminated in consolidation. The Company owns a 99% membership interest in a joint venture named Arch Western Resources, LLC (Arch Western) which operates coal mines in Wyoming, Colorado and Utah. The Company also acts as the managing member of Arch Western. Accounting Pronouncements Adopted The Financial Accounting Standards Board (FASB) has established the FASB Accounting Standards Codificationtm (Codification) as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the United States for financial statements of interim and annual periods ending after September15, 2009. References to authoritative accounting principles after the effective date will reference the Codification and not the previous accounting guidance. On January1, 2009, the Company changed its presentation of noncontrolling interest in subsidiaries, pursuant to new guidance in the Consolidation topic of the Codification, which requires that a noncontrolling interest (previously referred to as minority interest) in a consolidated subsidiary be displayed in the consolidated balance sheet as a separate component of equity and the amount of net income attributable to the noncontrolling interest be included in consolidated net income on the face of the consolidated statement of income. Because the noncontrolling interest in Arch Western is redeemable, it is presented in the mezzanine between liabilities and equity. This change resulted in a decrease in other liabilities of $8.9million as of December31, 2008 from what was previously reported for the reclassification of the noncontrolling interest in Arch Western. For the year ended December31, 2008 and 2007 this change resulted in an increase in other operating income, net and in net income of $0.9million and $1.0million, respectively, from what was previously reported for the amount of income attributable to the noncontrolling interest in Arch Western. On January1, 2009, the Company adopted the new disclosure requirements of the Derivatives and Hedging topic of the Codification. The new disclosures include qualitative disclosures about objectives for using derivatives, tabular disclosures and the gross fair value of derivative instruments, gains and losses from derivative instruments by type of contract, and the locations of these amounts in the interim and annual financial statements. See Note7, Derivative Instruments for the disclosures required. On January1, 2009, the Company adopted amendments to the Earning

Property Transactions

Property Transactions
	12 Months Ended Dec. 31, 2009 USD / shares
Property Transactions [Abstract]
Property Transactions	2. Property Transactions On November12, 2009, the Company leased coal reserves and other coal resources from Great Northern Properties Limited Partnership in Montana for $73.1million. The coal lease will give the Company the right to mine approximately 9,600acres and approximately 731million tons of coal reserves. On September28, 2007, the Company purchased coal reserves and surface rights in Illinois for $38.9million. On June29, 2007, the Company sold select assets and related liabilities associated with its Mingo Logan-Ben Creek mining complex in West Virginia for $43.5million. For the year ended December31, 2007, the Companys Mingo Logan-Ben Creek operations contributed coal sales of 1.2million tons, revenues of $75.1million and income from operations of $9.1million. The Company recognized a net gain of $8.9million in the year ended December31, 2007 resulting from the sale of the Mingo Logan-Ben Creek complex. That amount has been reflected in other operating income, net in the accompanying consolidated statements of income. This gain is net of accrued losses of $12.5million on firm commitments to purchase coal through 2008 to supply below-market sales contracts that could not be sourced from the Companys operations and $4.9million of employee-related payments, which were paid prior to December31, 2007. During the years ended December31, 2009, 2008 and 2007, gains (losses) on other dispositions of property, plant and equipment were $(0.3)million, $0.2million and $8.9million, respectively. Included in the gain for 2007 was $8.4million related to the sales of non-strategic reserves in the Powder River Basin and Central Appalachia.

Business Combinations

Business Combinations
	12 Months Ended Dec. 31, 2009 USD / shares
Business Combinations [Abstract]
Business Combinations	3. Business Combinations On October1, 2009, the Company finalized its purchase of the issued and outstanding membership interests of Jacobs Ranch Holdings I LLC, the parent of the Jacobs Ranch mining operations, for a purchase price of $768.8million, including all final working capital adjustments. The acquired operations included approximately 345million tons of coal reserves adjacent to the Companys Black Thunder mining complex. The acquired mining operations were integrated into the Companys Black Thunder mining operations, part of the Powder River Basin segment. To finance the acquisition, the Company sold 19.55million shares of its common stock and issued $600.0million in aggregate principal amount of senior unsecured notes. The net proceeds received from the issuance of common stock were $326.5million and the net proceeds received from the issuance of the 8.75%senior unsecured notes were $570.3million. See Note10, Debt and Financing Arrangements and Note15 Capital Stock for further information about these transactions. The following table summarizes the consideration paid for Jacobs Ranch and the amounts of assets acquired and liabilities assumed recognized at the acquisition date: (In thousands) Consideration paid $ 768,819 Recognized amounts of net tangible and intangible assets acquired and liabilities assumed: Assets: Receivables $ 20,578 Inventories 20,690 Other current assets 282 Net property, plant and equipment, including mineral rights 707,294 Acquired sales contracts, net 58,413 Goodwill 62,102 Liabilities: Accounts payable 14,695 Other accrued and current liabilities 5,797 Accrued pension benefits 1,542 Accrued postretirement benefits other than pension 2,506 Asset retirement obligation 75,109 Other liabilities 891 Net tangible and intangible assets acquired $ 768,819 The goodwill associated with the acquisition was allocated to the Companys Black Thunder mining complex, part of the Powder River Basin segment, for impairment testing purposes. All of the goodwill recognized is expected to be deductible for income tax purposes. The following unaudited pro forma information has been prepared for illustrative purposes and assumes that the business combination occurred at the beginning of each reporting period being presented below. The unaudited pro forma results have been prepared based upon operational results and estimates that the Company believes are reasonable. The results are not necessarily reflective of the consolidated results of operations had the acquisition actually occurred at the beginning of each reporting period presented below, nor are they indicative of future operating results. The unaudited pro forma results for the twelve months ended December31, 2009 and 2008 as follows: December31 2009 2008 (I

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income
	12 Months Ended Dec. 31, 2009 USD / shares
Accumulated Other Comprehensive Income [Abstract]
Accumulated Other Comprehensive Income	4. Accumulated Other Comprehensive Income Other comprehensive income includes transactions recorded in stockholders equity during the year, excluding net income and transactions with stockholders. Following are the items included in accumulated other comprehensive income (loss): Pension, Postretirement and Other Accumulated Post- Other Financial Employment Available-for- Comprehensive Derivatives Benefits Sale Securities Loss Balance January1, 2007 $ (6,512 ) $ (14,402 ) $ 1,745 $ (19,169 ) 2007 activity, before tax 9,533 21,183 (4,398 ) 26,318 2007 activity, tax effect (2,741 ) (7,623 ) 1,583 (8,781 ) Balance December31, 2007 280 (842 ) (1,070 ) (1,632 ) 2008 activity, before tax (71,129 ) (50,925 ) 1,024 (121,030 ) 2008 activity, tax effect 25,600 18,334 (368 ) 43,566 Balance December31, 2008 (45,249 ) (33,433 ) (414 ) (79,096 ) 2009 activity, before tax 72,553 20,124 (136 ) 92,541 2009 activity, tax effect (26,118 ) (7,230 ) 50 (33,298 ) Balance December31, 2009 $ 1,186 $ (20,539 ) $ (500 ) $ (19,853 ) As discussed in Note1, Accounting Policies unrealized gains or losses on derivatives that qualify for hedge accounting as cash flow hedges are recorded in other comprehensive income. Pension, postretirement and other post-employment benefits adjustments in other comprehensive income relate to changes in the funded status of various benefit plans, as discussed in Note1, Accounting Policies. The unrealized gains and losses associated with recognizing the Companys available-for-sale securities at fair value are recorded through other comprehensive income.

Equity Investments

Equity Investments
	12 Months Ended Dec. 31, 2009 USD / shares
Equity Investments [Abstract]
Equity Investments	5. Equity Investments KnightHawk DKRW DTA Total (In thousands) January1, 2007 $ 41,948 $ 24,859 $ 13,406 $ 80,213 Advances to (distributions from) affiliates (1,672 ) 3,649 1,891 3,868 Equity in comprehensive income (loss) 3,618 (1,601 ) (3,148 ) (1,131 ) December31, 2007 43.894 26,907 12,149 82,950 Advances to (distributions from) affiliates (2,167 ) 4,467 2,300 Other contributions 1,503 1,503 Equity in comprehensive income (loss) 6,366 (1,783 ) (3,575 ) 1,008 December31, 2008 $ 48,093 $ 25,124 $ 14,544 $ 87,761 Advances to (distributions from) affiliates (5,164 ) 2,925 (2,239 ) Equity in comprehensive income (loss) 6,674 (1,535 ) (3,393 ) 1,746 December31, 2009 $ 49,603 $ 23,589 $ 14,076 $ 87,268 The Company holds a 331/3% equity interest in Knight Hawk Holdings, LLC, a coal producer in the Illinois Basin. The Company holds a 24% equity interest in DKRW Advanced Fuels LLC (DKRW), a company engaged in developing coal-to-liquids facilities. The Company has a coal reserve purchase option with DKRW under which the Company would mine the reserves on a contract basis for DKRW. In March 2007, DKRW issued additional interests totaling $25.0million, of which the Company purchased $3.7million. In 2008, the Company entered into a convertible secured promissory note to allow DKRW to borrow up to $10.0million. In 2009, the note was amended to allow DKRW to borrow an additional $5.0million from the Company and $5.0million from other investors. Amounts borrowed are due and payable in cash or in additional equity interests on the earlier of June30, 2010 or upon the closing of DKRWs next financing, bear interest at the rate of 1.25% per month, are convertible into securities issued by DKRW in connection with its next financing and are secured by DKRWs equity interests in Medicine Bow Fuel Power LLC. As of December31, 2009 and 2008, the Company had advanced $11.1million and $3.0million, respectively under the note. The balance at December31, 2009 is reflected in other receivables and the balance at December31, 2008 is reflected in other noncurrent assets. The Company holds a general partnership interest in Dominion Terminal Associates (DTA), which is accounted for under the equity method. DTA operates a ground storage-to-vessel coal transloading facility in Newport News, Virginia used by the partners to transload coal. Under the terms of a throughput and handling agreement with DTA, each partner is ch

Inventories

Inventories
	12 Months Ended Dec. 31, 2009 USD / shares
Inventories [Abstract]
Inventories	6. Inventories Inventories consist of the following: December31 2009 2008 (In thousands) Coal $ 99,161 $ 64,683 Repair parts and supplies 141,615 126,885 $ 240,776 $ 191,568 The repair parts and supplies are stated net of an allowance for slow-moving and obsolete inventories of $13.4million and $12.7million at December31, 2009 and 2008, respectively.

Derivative Instruments

Derivative Instruments
	12 Months Ended Dec. 31, 2009 USD / shares
Derivative Instruments [Abstract]
Derivative Instruments	7. Derivative Instruments Diesel fuel price risk management The Company is exposed to price risk with respect to diesel fuel purchased for use in its operations. The Company purchases approximately 50 to 60million gallons of diesel fuel annually in its operations, including the effect of the acquisition of the Jacobs Ranch operations. To reduce the volatility in the price of diesel fuel for its operations, the Company uses forward physical diesel purchase contracts, as well as heating oil swaps and purchased call options. At December31, 2009, the Company had protected the price of approximately 55% of its expected purchases for fiscal year 2010. Since the changes in the price of heating oil are highly correlated to changes in the price of the hedged diesel fuel purchases, the heating oil swaps and purchased call options qualify for cash flow hedge accounting. The Company held heating oil swaps and purchased call options for approximately 34.1million gallons as of December31, 2009. Coal risk management positions The Company may sell or purchase forward contracts and options in the over-the-counter coal market in order to manage its exposure to coal prices. The Company has exposure to the risk of fluctuating coal prices related to forecasted sales or purchases of coal or to the risk of changes in the fair value of a fixed price physical sales contract. Certain derivative contracts may be designated as hedges of these risks. At December31, 2009, the Company held derivatives for risk management purposes totaling 1.3million tons of coal sales that are expected to settle during the remainder of 2010 and 0.8million tons of coal sales that are expected to settle in 2011. Coal trading positions The Company may sell or purchase forward contracts, swaps and options in the over-the-counter coal market for trading purposes. The Company may also include non-derivative contracts in its trading portfolio. The Company is exposed to the risk of changes in coal prices on its coal trading portfolio. The timing of the estimated future realization of the value of the trading portfolio is 62% in 2010 and 38% in 2011. Tabular derivatives disclosures The Companys contracts with certain of its counterparties allow for the settlement of contracts in an asset position with contracts in a liability position in the event of default or termination. Such netting arrangements reduce our credit exposure related to these counterparties. For classification purposes, the Company records the net fair value of all the positions with these counterparties as a net asset or liability. The amounts shown in the table below represent the fair value position of individual contracts, regardless of the net position presented in the accompanying consolidated balance sheet. The fair value and location of derivatives reflected in the accompanying consolidated balance sheet are as follows: Fair Value of Derivatives as of December31, 2009 Asset Liability Derivatives Derivatives (In thousands) Derivatives Designated as Hedging Instruments

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities
	12 Months Ended Dec. 31, 2009 USD / shares
Accrued Expenses and Other Current Liabilities [Abstract]
Accrued Expenses and Other Current Liabilities	8. Accrued Expenses and Other Current Liabilities Accrued expenses included in current liabilities consist of the following: December31 2009 2008 (In thousands) Payroll and employee benefits $ 41,773 $ 53,134 Taxes other than income taxes 88,980 92,682 Interest 55,557 33,168 Heating oil derivatives (see Note7) 476 51,770 Workers compensation (see Note13) 7,439 6,964 Asset retirement obligations (see Note12) 5,315 3,482 Other 28,176 8,003 $ 227,716 $ 249,203

Taxes

Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
Taxes [Abstract]
Taxes	9. Taxes Income taxes The Company is subject to U.S.federal income tax as well as income tax in multiple state jurisdictions. The tax years 2005 through 2009 remain open to examination for U.S.federal income tax matters and 1998 through 2009 remain open to examination for various state income tax matters. Significant components of the provision for (benefit from) income taxes are as follows: Year Ended December31 2009 2008 2007 (In thousands) Current: Federal $ 21,295 $ 24,066 $ 3,687 State 864 1,027 Total current 22,159 25,093 3,687 Deferred: Federal (39,492 ) 35,545 (20,090 ) State 558 (18,864 ) (3,447 ) Total deferred (38,934 ) 16,681 (23,537 ) $ (16,775 ) $ 41,774 $ (19,850 ) A reconciliation of the statutory federal income tax expense on the Companys pretax income to the actual provision for (benefit from) income taxes follows: Year Ended December31 2009 2008 2007 (In thousands) Income tax expense at statutory rate $ 8,888 $ 138,637 $ 54,278 Percentage depletion allowance (29,463 ) (45,336 ) (36,028 ) State taxes, net of effect of federal taxes (61 ) 4,060 569 Change in valuation allowance 725 (57,973 ) (38,681 ) Other, net 3,136 2,386 12 $ (16,775 ) $ 41,774 $ (19,850 ) In 2009, 2008 and 2007, compensatory stock options and other equity based compensation awards were exercised resulting in a tax expense (benefit) of $0.2million, $(9.8)million and $(5.6)million, respectively. The tax benefit will be recorded to paid-in capital at such point in time when a cash tax benefit is recognized. Significant components of the Companys deferred tax assets and liabilities that result from carryforwards and temporary differences between the financial statement basis and tax basis of assets and liabilities are summarized as follows: December31 2009 2008 (In thousands) Deferred tax assets: Alternative minimum tax credit carryforwards $ 142,070 $ 125,744 Net operating loss carryforwards 118,643 120,291 Reclamation and mine closure 59,648 49,612 Advance royalties 33,749 27,447 Retiree benefit plans 31,352 37,235 Plant and equipment 19,004 22,016

Debt and Financing Arrangements

Debt and Financing Arrangements
	12 Months Ended Dec. 31, 2009 USD / shares
Debt and Financing Arrangements [Abstract]
Debt and Financing Arrangements	10. Debt and Financing Arrangements Debt consists of the following: December31 2009 2008 (In thousands) Commercial paper $ 49,453 $ 65,671 Indebtedness to banks under credit facilities 204,000 273,597 6.75%senior notes ($950.0million face value) due July1, 2013 954,782 956,148 8.75%senior notes ($600.0million face value) due August1, 2016 585,441 Other 14,011 16,997 1,807,687 1,312,413 Less current maturities and short-term borrowings 267,464 213,465 Long-term debt $ 1,540,223 $ 1,098,948 The current maturities of debt include amounts borrowed that are supported by credit facilities that have a term of less than one year and amounts borrowed under credit facilities with terms longer than one year that the Company does not intend to refinance on a long-term basis, based on cash projections and managements plans. Commercial Paper On August15, 2007, the Company entered into a commercial paper placement program, as amended, to provide short-term financing at rates that are generally lower than the rates available under the revolving credit facility. Under the commercial paper program, the Company may sell interest-bearing or discounted short-term unsecured debt obligations with maturities of no more than 270days. Market conditions have impacted the Companys ability to issue commercial paper. The Company amended the program on April11, 2008 to increase the maximum aggregate principal amount outstanding to $100.0million from $75.0million. The commercial paper placement program is supported by a revolving credit facility, which is subject to renewal annually, and expires on April30, 2010. As of December31, 2009, the weighted-average interest rate of the Companys outstanding commercial paper was 1.44% and maturity dates ranged from 4 to 55days. Credit Facilities and Availability The Company maintains a secured credit facility. On August27, 2009, the Company entered into an amendment that extended the maturity of the credit facility from June23, 2011 to March31, 2013 and increased the Companys borrowing capacity from $800.0million to $860.0million until June23, 2011, when it will then decrease to $762.5million. New banks may join the credit facility after June23, 2011, subject to an aggregate maximum borrowing amount of $800.0million. The amendment also increased the maximum leverage ratio, as defined, that the Company must maintain. A March6, 2009, amendment amended certain covenants to make them less restrictive, including those related to lien creation, restricted payments and subsidiary guarantees of debt, in addition to an increase in the maximum leverage ratio, as defined, that the Company must maintain. Borrowings under the credit facility bear interest at a floating rate based on LIBOR determined by reference to the Companys leverage ratio, as calculated in accordance with the credit agreement.

Fair Values of Financial Instru

Fair Values of Financial Instruments
	12 Months Ended Dec. 31, 2009 USD / shares
Fair Values of Financial Instruments [Abstract]
Fair Values of Financial Instruments	11. Fair Values of Financial Instruments Inputs to fair value techniques are prioritized according to a fair value hierarchy, as defined below, that gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. Level1 is defined as observable inputs such as quoted prices in active markets for identical assets. Level1 assets include available-for-sale equity securities and coal futures that are submitted for clearing on the New York Mercantile Exchange. Level2 is defined as observable inputs other than Level1 prices. These include quoted prices for similar assets or liabilities in an active market, quoted prices for identical assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. The Companys level2 assets and liabilities include commodity contracts (coal and heating oil) with quoted prices in over-the-counter markets or direct broker quotes. Level3 is defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. These include the Companys commodity option contracts (primarily coal and heating oil) valued using modeling techniques, such as Black-Scholes, that require the use of inputs, particularly volatility, that are not observable. The table below sets forth, by level, the Companys financial assets and liabilities that are accounted for at fair value: Fair Value at December31, 2009 Total Level 1 Level 2 Level 3 (In thousands) Assets: Available-for-sale investments $ 2,537 $ 2,341 $ $ 196 Derivatives 30,805 22,820 7,985 Total assets $ 33,342 $ 2,341 $ 22,820 $ 8,181 Liabilities: Derivatives $ 2,720 $ 1,188 $ 1,568 $ (36 ) The Companys contracts with certain of its counterparties allow for the settlement of contracts in an asset position with contracts in a liability position in the event of default or termination. For classification purposes, the Company records the net fair value of all the positions with these counterparties as a net asset or liability. Each level in the table above displays the underlying contracts according to their classification in the accompanying consolidated balance sheet, based on this counterparty netting. The following table summarizes the change in the fair values of financial instruments categorized as level3. Year Ended December31, 2009 (In thousands) Beginning balance $ 1,050 Gains (l

Asset Retirement Obligations

Asset Retirement Obligations
	12 Months Ended Dec. 31, 2009 USD / shares
Asset Retirement Obligations [Abstract]
Asset Retirement Obligations	12. Asset Retirement Obligations The Companys asset retirement obligations arise from the Federal Surface Mining Control and Reclamation Act of 1977 and similar state statutes, which require that mine property be restored in accordance with specified standards and an approved reclamation plan. The required reclamation activities to be performed are outlined in the Companys mining permits. These activities include reclaiming the pit and support acreage at surface mines, sealing portals at underground mines, and reclaiming refuse areas and slurry ponds. The Company reviews its asset retirement obligation at least annually and makes necessary adjustments for permit changes as granted by state authorities and for revisions of estimates of the amount and timing of costs. For ongoing operations, adjustments to the liability result in an adjustment to the corresponding asset. For idle operations, adjustments to the liability are recognized as income or expense in the period the adjustment is recorded. The following table describes the changes to the Companys asset retirement obligation liability for the years ended December 31: 2009 2008 (In thousands) Balance at January 1 (including current portion) $ 258,851 $ 224,521 Accretion expense 23,427 19,613 Additions resulting from acquisition of Jacobs Ranch 75,109 Adjustments to the liability from changes in estimates (43,709 ) 18,939 Liabilities settled (3,269 ) (4,222 ) Balance at December 31 $ 310,409 $ 258,851 Current portion included in accrued expenses (5,315 ) (3,482 ) Noncurrent liability $ 305,094 $ 255,369 The 2009 reduction in the liability of $43.7million from changes in estimates resulted from the impact of the Jacobs Ranch acquisition on the mining sequence in the existing pit configuration. As of December31, 2009, the Company had $205.7million in surety bonds outstanding and $351.9million in self-bonding to secure reclamation obligations.

Accrued Workers Compensation

Accrued Workers Compensation
	12 Months Ended Dec. 31, 2009 USD / shares
Accrued Workers' Compensation [Abstract]
Accrued Workers' Compensation	13. Accrued Workers Compensation The Company is liable under the Federal Mine Safety and Health Act of 1969, as subsequently amended, to provide for pneumoconiosis (occupational disease) benefits to eligible employees, former employees, and dependents. The Company is also liable under various states statutes for occupational disease benefits. The Company currently provides for federal and state claims principally through a self-insurance program. The occupational disease benefit obligation is determined by independent actuaries, at the present value of the actuarially computed present and future liabilities for such benefits over the employees applicable years of service. In addition, the Company is liable for workers compensation benefits for traumatic injuries that are accrued as injuries are incurred. Traumatic claims are either covered through self-insured programs or through state-sponsored workers compensation programs. Workers compensation expense consists of the following components: Year Ended December31 2009 2008 2007 (In thousands) Self-insured occupational disease benefits: Service cost $ 531 $ 481 $ 1,310 Interest cost 558 449 998 Net amortization (2,879 ) (3,882 ) (1,688 ) Total occupational disease (1,790 ) (2,952 ) 620 Traumatic injury claims and assessments 8,904 10,277 10,055 Total workers compensation expense $ 7,114 $ 7,325 $ 10,675 Net amortization represents the systematic recognition of actuarial gains or losses over a five-year period. The reconciliation of changes in the benefit obligation of the occupational disease liability is as follows: December31 2009 2008 (In thousands) Beginning of year obligation $ 7,413 $ 17,463 Service cost 531 481 Interest cost 558 449 Actuarial gain 1,913 (10,436 ) Benefit and administrative payments (713 ) (544 ) Net obligation at end of year $ 9,702 $ 7,413 At December31, 2009 and 2008, accumulated gains of $10.9million and $15.7million, respectively, were not yet recognized in occupational disease cost and were recorded in accumulated other comprehensive income. The expected accumulated gain that will be amortized from accumulated other comprehensive income into occupational disease cost in 2010 is $2.2million. The following table provides the assumptions used to determine the projected occupational disease obligation: Year Ended December31 2009 2008 2007 Weighted average assumptions: Discount rate

Employee Benefit Plans

Employee Benefit Plans
	12 Months Ended Dec. 31, 2009 USD / shares
Employee Benefit Plans [Abstract]
Employee Benefit Plans	14. Employee Benefit Plans Defined Benefit Pension and Other Postretirement Benefit Plans The Company provides funded and unfunded non-contributory defined benefit pension plans covering certain of its salaried and hourly employees. Benefits are generally based on the employees age and compensation. The Company funds the plans in an amount not less than the minimum statutory funding requirements or more than the maximum amount that can be deducted for U.S.federal income tax purposes. The Company also currently provides certain postretirement medical and life insurance coverage for eligible employees. Generally, covered employees who terminate employment after meeting eligibility requirements are eligible for postretirement coverage for themselves and their dependents. The salaried employee postretirement benefit plans are contributory, with retiree contributions adjusted annually, and contain other cost-sharing features such as deductibles and coinsurance. The Companys current funding policy is to fund the cost of all postretirement benefits as they are paid. During 2009, the Company notified participants of the retiree medical plan of a plan change increasing the retirees responsibility for medical costs. This change resulted in a remeasurement of the postretirement benefit obligation, which included a decrease in the discount rate from 6.85% to 5.68%. The remeasurement resulted in a decrease in the liability of $21.0million, with a corresponding increase to other comprehensive income, and will result in future reductions in costs under the plan. Obligations and Funded Status.Summaries of the changes in the benefit obligations, plan assets and funded status of the plans are as follows: Other Postretirement Pension Benefits Benefits 2009 2008 2009 2008 (In thousands) CHANGE IN BENEFIT OBLIGATIONS Benefit obligations at January 1 $ 240,578 $ 234,628 $ 60,836 $ 61,942 Service cost 13,444 12,917 2,954 2,937 Interest cost 15,946 14,636 3,667 3,716 Plan amendments 1,907 (28,561 ) Benefits paid (13,834 ) (13,344 ) (2,573 ) (2,540 ) Acquisition of Jacobs Ranch 1,542 2,506 Other-primarily actuarial loss (gain) 23,017 (10,166 ) 7,616 (5,219 ) Benefit obligations at December 31 $ 280,693 $ 240,578 $ 46,445 $ 60,836 CHANGE IN PLAN ASSETS Value of plan assets at January 1 $ 166,304 $ 232,868 $ $ Actual return on plan assets 40,648 (55,837 ) Employer contributions 18,781 2,617

Capital Stock

Capital Stock
	12 Months Ended Dec. 31, 2009 USD / shares
Capital Stock [Abstract]
Capital Stock	15. Capital Stock On March14, 2006, the Company filed a registration statement on FormS-3 with the SEC. The registration statement allows the Company to offer, from time to time, an unlimited amount of debt securities, preferred stock, depositary shares, purchase contracts, purchase units, common stock and related rights and warrants. Common Stock On July31, 2009, the Company sold 17million shares of its common stock at a public offering price of $17.50 per share and on August6, 2009, the Company issued an additional 2.55million shares of its common stock under the same terms and conditions to cover underwriters over-allotments. The net proceeds received from the issuance of common stock were $326.5million, which was used primarily to finance the purchase of the Jacobs Ranch mining complex discussed in Note3, Business Combinations. Preferred Stock In January 2008, 84,376shares of the Companys 5% Perpetual Cumulative Convertible Preferred Stock (Preferred Stock) were converted into 404,735shares of the Companys common stock. On February1, 2008, the Company redeemed the remaining 505shares of Preferred Stock at the redemption price of $50.00 per share. During 2007, 58,890shares of preferred stock were converted to common stock. Stock Repurchase Plan In September 2006, the Companys Board of Directors authorized a share repurchase program, for the purchase of up to 14,000,000shares of the Companys common stock. At December31, 2009, 10,925,800shares of common stock were available for repurchase under the plan. During 2008, the Company repurchased 1,511,800shares of its common stock under the repurchase program at an average cost of $35.62 per share. Future repurchases under the plan will be made at managements discretion and will depend on market conditions and other factors. There were no purchases made under the plan during 2009 or 2007.

Stockholder Rights Plan

Stockholder Rights Plan
	12 Months Ended Dec. 31, 2009 USD / shares
Stockholder Rights Plan [Abstract]
Stockholder Rights Plan	16. Stockholder Rights Plan Under a stockholder rights plan, preferred share purchase rights (Preferred Purchase Rights) entitle their holders to purchase two hundredths of a share of a series of junior participating preferred stock at an exercise price of $42 per share. The Preferred Purchase Rights are exercisable only when a person or group (an Acquiring Person) acquires 20% or more of the Companys common stock or if a tender or exchange offer is announced which would result in ownership by a person or group of 20% or more of the Companys common stock. In certain circumstances, the Preferred Purchase Rights allow the holder (except for the Acquiring Person) to purchase the Companys common stock or voting stock of the Acquiring Person at a discount. The Board of Directors has the option to allow some or all holders (except for the Acquiring Person) to exchange their rights for Company common stock. The rights will expire on March20, 2010, subject to earlier redemption or exchange by the Company as described in the plan.

Stock Based Compensation and Ot

Stock Based Compensation and Other Incentive Plans
	12 Months Ended Dec. 31, 2009 USD / shares
Stock Based Compensation and Other Incentive Plans [Abstract]
Stock Based Compensation and Other Incentive Plans	17. Stock Based Compensation and Other Incentive Plans Under the Companys Stock Incentive Plan (the Incentive Plan), 18,000,000shares of the Companys common stock are reserved for awards to officers and other selected key management employees of the Company. The Incentive Plan provides the Board of Directors with the flexibility to grant stock options, stock appreciation rights, restricted stock awards, restricted stock units, performance stock or units, merit awards, phantom stock awards and rights to acquire stock through purchase under a stock purchase program (Awards). Awards the Board of Directors elects to pay out in cash do not count against the 18,000,000shares authorized in the Incentive Plan. The Incentive Plan calls for the adjustment of shares awarded under the plan in the event of a split. As of December31, 2009, the Company had stock options, restricted stock and restricted stock units outstanding under the Incentive Plan. Stock Options Stock options are granted at a price equal to the closing market price of the Companys common stock on the date of grant and are generally subject to vesting provisions of at least one year from the date of grant. Information regarding stock option activity under the Incentive Plan follows for the year ended December31, 2009: Weighted Average Aggregate Average Common Exercise Intrinsic Contract Shares Price Value Life (In thousands) (In thousands) Options outstanding at January 1 2,935 $ 29.08 Granted 1,044 14.08 Exercised (13 ) 6.22 Canceled (29 ) 31.00 Expired (2 ) 20.41 Options outstanding at December 31 3,935 25.17 $ 23,118 6.33 Options exercisable at December 31 2,036 21.64 14,668 4.31 The aggregate intrinsic value of options exercised during the years ended December31, 2009, 2008 and 2007 was $0.1million, $24.7million and $14.9million, respectively. Information regarding changes in stock options outstanding and not yet vested and the related grant-date fair value under the Incentive Plan follows for the year ended December31, 2009: Weighted Average Common Shares Grant-Date Fair Value (In thousands) Unvested options at January 1 1,408 $ 18.43 Granted 1,044 6.63 Vested (531 ) 17.18 Canceled (22 ) 12.07 Unvested options at December 31 1,899 12.36 Compensation expense related to stock options for the years ended December31, 200

Risk Concentrations

Risk Concentrations
	12 Months Ended Dec. 31, 2009 USD / shares
Risk Concentrations [Abstract]
Risk Concentrations	18. Risk Concentrations Credit Risk and Major Customers The Company has a formal written credit policy that establishes procedures to determine creditworthiness and credit limits for trade customers and counterparties in the over-the-counter coal market. Generally, credit is extended based on an evaluation of the customers financial condition. Collateral is not generally required, unless credit cannot be established. Credit losses are provided for in the financial statements and historically have been minimal. The Company markets its coal principally to electric utilities in the United States. Sales to customers in foreign countries were $194.4million, $486.1million and $196.7million for the years ended December31, 2009, 2008 and 2007, respectively. As of December31, 2009 and 2008, accounts receivable from electric utilities located in the United States totaled $119.0million and $160.0million, respectively, or 62% and 74% of total trade receivables, respectively. The Company is committed under long-term contracts to supply coal that meets certain quality requirements at specified prices. These prices are generally adjusted based on indices. Quantities sold under some of these contracts may vary from year to year within certain limits at the option of the customer. The Company sold approximately 126.1million tons of coal in 2009. Approximately 72% of this tonnage (representing approximately 66% of the Companys revenue) was sold under long-term contracts (contracts having a term of greater than one year). Prices for coal sold under long-term contracts ranged from $6.35 to $119.00 per ton. Long-term contracts ranged in remaining life from one to eight years. Sales (including spot sales) to our largest customer, Tennessee Valley Authority, were $278.8million, $416.5million and $336.4million for the years ended December31, 2009, 2008 and 2007, respectively. Third-party sources of coal The Company uses independent contractors to mine coal at certain mining complexes. The Company also purchases coal from third parties that it sells to customers. Factors beyond the Companys control could affect the availability of coal produced for or purchased by the Company. Disruptions in the quantities of coal produced for or purchased by the Company could impair its ability to fill customer orders or require it to purchase coal from other sources at prevailing market prices in order to satisfy those orders. Transportation The Company depends upon barge, rail, truck and belt transportation systems to deliver coal to its customers. Disruption of these transportation services due to weather-related problems, mechanical difficulties, strikes, lockouts, bottlenecks, and other events could temporarily impair the Companys ability to supply coal to its customers, resulting in decreased shipments. In the past, disruptions in rail service have resulted in missed shipments and production interruptions.

Earnings per Common Share

Earnings per Common Share
	12 Months Ended Dec. 31, 2009 USD / shares
Earnings per Common Share [Abstract]
Earnings per Common Share	19. Earnings per Common Share The following table provides the basis for earnings per share calculations by presenting the income available to common stockholders of the Company, after deducting earnings allocated to participating securities, and by reconciling basic and diluted weighted average shares outstanding: Year Ended December31 2009 2008 2007 (In thousands) Income for basic earnings per share calculation: Income allocated to common stockholders $ 42,128 $ 353,951 $ 174,399 Weighted average shares outstanding: Basic weighted average shares outstanding 150,963 143,604 142,518 Effect of common stock equivalents under incentive plans 309 779 1,068 Effect of common stock equivalents arising from Preferred Stock 33 433 Diluted weighted average shares outstanding 151,272 144,416 144,019 The effect of options to purchase 2.2million, 0.8million and 0.5million shares of common stock were excluded from the calculation of diluted weighted average shares outstanding for the years ended December31, 2009, 2008 and 2007, respectively, because the exercise price of these options exceeded the average market price of the Companys common stock for this period.

Leases

Leases
	12 Months Ended Dec. 31, 2009 USD / shares
Leases [Abstract]
Leases	20. Leases The Company leases equipment, land and various other properties under non-cancelable long-term leases, expiring at various dates. Certain leases contain options that would allow the Company to extend the lease or purchase the leased asset at the end of the base lease term. In addition, the Company enters into various non-cancelable royalty lease agreements under which future minimum payments are due. Minimum payments due in future years under these agreements in effect at December31, 2009 are as follows: Operating Leases Royalties (In thousands) 2010 $ 33,435 $ 32,609 2011 31,506 33,528 2012 27,435 16,528 2013 23,529 16,770 2014 21,324 15,924 Thereafter 30,277 31,951 $ 167,506 $ 147,310 Rental expense, including amounts related to these operating leases and other shorter-term arrangements, amounted to $43.3million in 2009, $42.8million in 2008 and $37.2million in 2007. Royalty expense, including production royalties, was $230.5million in 2009, $259.2million in 2008 and $204.7million in 2007. As of December31, 2009, certain of the Companys lease obligations were secured by outstanding surety bonds totaling $63.8million.

Guarantees

Guarantees
	12 Months Ended Dec. 31, 2009 USD / shares
Guarantees [Abstract]
Guarantees	21. Guarantees On December31, 2005, the Company sold the stock of three subsidiaries and their four associated mining operations and coal reserves in Central Appalachia to Magnum Coal Company (Magnum) under the Purchase and Sale Agreement (the Purchase Agreement). The Company has agreed to continue to provide surety bonds and letters of credit for reclamation and retiree healthcare obligations related to the properties the Company sold to Magnum. The Purchase Agreement requires Magnum to reimburse the Company for costs related to the surety bonds and letters of credit and to use commercially reasonable efforts to replace the obligations. If the surety bonds and letters of credit related to the reclamation obligations are not replaced by Magnum within a specified period of time, Magnum must post a letter of credit in favor of the Company in the amounts of the reclamation obligations. At December31, 2009, the Company had $91.6million of surety bonds related to properties sold to Magnum. Patriot Coal Corporation acquired Magnum in July 2008, and, as a result, Magnum will be required to post letters of credit in the Companys favor for the full amount of the reclamation obligation on or before February 2011. Magnum also acquired certain coal supply contracts with customers who did not consent to the assignment of the contract from the Company to Magnum. The Company has committed to purchase coal from Magnum to sell to those customers at the same price it is charging the customers for the sale. In addition, certain contracts were assigned to Magnum, but the Company has guaranteed performance under the contracts. The longest of the coal supply contracts extends to the year 2017. If Magnum is unable to supply the coal for these coal sales contracts then the Company would be required to purchase coal on the open market or supply contracts from its existing operations. At market prices effective at December31, 2009, the cost of purchasing 13.0million tons of coal to supply the contracts that have not been assigned over their duration would exceed the sales price under the contracts by approximately $423.4million, and the cost of purchasing 2.6million tons of coal to supply the assigned and guaranteed contracts over their duration would exceed the sales price under the contracts by approximately $52.8million. The Company has also guaranteed Magnums performance under certain operating leases, the longest of which extends through 2011. If the Company were required to perform under its guarantees of the operating lease agreements, it would be required to make $2.6million of lease payments. As the Company does not believe that it is probable that it would have to purchase replacement coal or fulfill its obligations under the lease guarantees, no losses have been recorded in the consolidated financial statements as of December31, 2009. However, if the Company would have to perform under these guarantees, it could potentially have a material adverse effect on the business, results of operations and financial condition of the Company. In connection with the Companys acquisition of the coal operations of ARCO and the simultaneous com

Contingencies

Contingencies
	12 Months Ended Dec. 31, 2009 USD / shares
Contingencies [Abstract]
Contingencies	22. Contingencies The Company is a party to numerous claims and lawsuits with respect to various matters. The Company provides for costs related to contingencies when a loss is probable and the amount is reasonably determinable. After conferring with counsel, it is the opinion of management that the ultimate resolution of pending claims will not have a material adverse effect on the consolidated financial condition, results of operations or liquidity of the Company.

Segment Information

Segment Information
	12 Months Ended Dec. 31, 2009 USD / shares
Segment Information [Abstract]
Segment Information	23. Segment Information The Company has three reportable business segments, which are based on the major low-sulfur coal basins in which the Company operates. Each of these reportable business segments includes a number of mine complexes. The Company manages its coal sales by coal basin, not by individual mine complex. Geology, coal transportation routes to customers, regulatory environments and coal quality are generally consistent within a basin. Accordingly, market and contract pricing have developed by coal basin. Mine operations are evaluated based on their per-ton operating costs (defined as including all mining costs but excluding pass-through transportation expenses), as well as on other non-financial measures, such as safety and environmental performance. The Companys reportable segments are the Powder River Basin (PRB) segment, with operations in Wyoming; the Western Bituminous (WBIT) segment, with operations in Utah, Colorado and southern Wyoming; and the Central Appalachia (CAPP) segment, with operations in southern West Virginia, eastern Kentucky and Virginia. Operating segment results for the years ended December31, 2009, 2008 and 2007 are presented below. Results for the operating segments include all direct costs of mining, including all depreciation, depletion and amortization related to the mining operations, even if the assets are not recorded at the operating segment level. See discussion of segment assets below. Corporate, Other and Eliminations includes the change in fair value of coal derivatives and coal trading activities, net; corporate overhead; land management; other support functions; and the elimination of intercompany transactions. The presentation of segments total assets below has changed from what was previously presented. The presentation was previously based on the amounts reflected in the accounts of the respective organizations. The amounts below reflect, for all periods presented, total assets used in the Companys return-on-assets calculation that is used as a metric in management incentive compensation plans and represent an allocation of assets used in the segments cash-generating activities. The amounts in the Corporate, Other and Eliminations represent primarily corporate assets (cash, receivables, investments, plant, property and equipment) as well as goodwill, unassigned coal reserves, above-market acquired sales contracts and other unassigned assets. Corporate, Other and PRB WBIT CAPP Eliminations Consolidated (In thousands) December31, 2009 Coal sales $ 1,205,492 $ 540,694 $ 829,895 $ $ 2,576,081 Income (loss) from operations 82,341 29,722 105,241 (93,590 ) 123,714 Total assets 2,421,917 687,873 734,309 996,497 4,840,596 Depreciation, depletion and amortization 127,378 83,781

Quarterly Financial Information

Quarterly Financial Information (Unaudited)
	12 Months Ended Dec. 31, 2009 USD / shares
Quarterly Financial Information (Unaudited) [Abstract]
Quarterly Financial Information (Unaudited)	24. Quarterly Financial Information (Unaudited) Quarterly financial data for the years ended December31, 2009 and 2008 is summarized below: March31 June30 September30 December31 (a)(b) (b) (b) (b) (In thousands, except per share data) 2009: Coal sales $ 681,040 $ 554,612 $ 614,957 $ 725,472 Gross profit 60,873 18,614 54,199 50,449 Income from operations 38,572 7,309 48,338 29,495 Net income (loss) 30,572 (15,161 ) 25,216 1,552 Basic earnings (loss) per common share 0.21 (0.11 ) 0.16 0.01 Diluted earnings (loss) per common share 0.21 (0.11 ) 0.16 0.01 March31 June30 September30 December31 (a) (In thousands, except per share data) 2008: Coal sales $ 699,350 $ 785,117 $ 769,458 $ 729,881 Gross profit 111,904 144,681 129,901 120,550 Income from operations 116,724 169,224 87,930 87,392 Net income 81,421 113,271 98,027 62,492 Basic earnings per common share 0.56 0.78 0.68 0.44 Diluted earnings per common share 0.56 0.78 0.68 0.44 (a) The Company filed for black lung excise tax refunds and recognized a refund of $11.0million, plus interest of $10.3million, in the fourth quarter of 2008, and recorded an adjustment for an additional $6.8million during 2009. (b) The Jacobs Ranch mining complex was acquired on October1, 2009 for $768.8million. We expensed costs related to the acquisition of $3.4million, $3.0million, $0.8million, and $6.5million in the first, second, third and fourth quarters of 2009, respectively.

Supplemental Condensed Consolid

Supplemental Condensed Consolidating Financial Information
	12 Months Ended Dec. 31, 2009 USD / shares
Supplemental Condensed Consolidating Financial Information [Abstract]
Supplemental Condensed Consolidating Financial Information	25. Supplemental Condensed Consolidating Financial Information Pursuant to the indenture governing the Arch Coal Inc senior notes, certain wholly-owned subsidiaries of the Company have fully and unconditionally guaranteed the senior notes on a joint and several basis. The following tables present unaudited condensed consolidating financial information for (i)the Company, (ii)the issuer of the senior notes , (iii)the guarantors under the Notes, and (iv)the entities which are not guarantors under the Notes (Arch Western Resources, LLC and Arch Receivable Company, LLC): Condensed Consolidating Statements of Income Year Ended December31, 2009 Guarantor Non-Guarantor Parent/Issuer Subsidiaries Subsidiaries Eliminations Consolidated (In thousands) Revenue Coal Sales $ $ 924,692 $ 1,651,389 $ $ 2,576,081 Costs, expenses and other Cost of coal sales 7,481 713,782 1,398,663 (49,211 ) 2,070,715 Depreciation, depletion and amortization 3,678 138,125 159,805 301,608 Amortization of acquired sales contracts, net 19,623 19,623 Selling, general and administrative expenses 49,672 7,504 46,563 (5,952 ) 97,787 Change in fair value of coal derivatives and coal trading activities, net (12,056 ) (12,056 ) Costs related to acquisition of Jacobs Ranch 13,726 13,726 Other operating expense (income) net (12,909 ) (85,460 ) 4,170 55,163 (39,036 ) 61,648 761,895 1,628,824 2,452,367 Income from investment in subsidiaries 165,183 (165,183 ) Income from operations 103,535 162,797 22,565 (165,183 ) 123,714 Interest expense, net: Interest expense (92,371 ) (2,442 ) (70,668 ) 59,549 (105,932 ) Interest income 14,240 720 52,211 (59,549 ) 7,622 (78,131 ) (1,722 ) (18,457 ) (98,310 ) Income before income taxes 25,404 161,075 4,108 (165,183 ) 25,404 Benefit from income taxes (16,775 ) (16,775 )

Valuation and Qualifying Accoun

Valuation and Qualifying Accounts
	12 Months Ended Dec. 31, 2009 USD / shares
Valuation and Qualifying Accounts [Abstract]
Valuation and Qualifying Accounts	Schedule Of Valuation And Qualifying Accounts Disclosure ScheduleII Arch Coal, Inc. and Subsidiaries Valuation and Qualifying Accounts Additions Balance at (Reductions) Charged to Beginning of Charged to Costs Other Balance at Year and Expenses Accounts Deductions(a) End of Year (In thousands) Year ended December31, 2009 Reserves deducted from asset accounts: Other assets other notes and accounts receivable $ 225 $ (17 ) $ $ 99 $ 109 Current assets supplies and inventory 12,760 1,302 656 13,406 Deferred income taxes 395 725 1,120 Year ended December31, 2008 Reserves deducted from asset accounts: Other assets other notes and accounts receivable $ 216 $ 42 $ $ 33 $ 225 Current assets supplies and inventory 13,500 1,548 2,288 12,760 Deferred income taxes 69,326 (57,973 ) (3,899 )(d) 7,059 395 Year ended December31, 2007 Reserves deducted from asset accounts: Other assets other notes and accounts receivable $ 3,156 $ (1,187 ) $ $ 1,753 $ 216 Current assets supplies and inventory 15,422 555 (2,122 )(b) 355 13,500 Deferred income taxes 114,034 (38,681 ) (3,603 )(c) 2,424 69,326 (a) Reserves utilized, unless otherwise indicated. (b) Balance upon disposition of Mingo Logan-Ben Creek complex. (c) Amount includes $1.0million related to the adoption of FIN48, which was recorded as a reduction of the beginning balance of retained earnings and $2.6million related to the reversal of tax benefits from the exercise of employee stock options that was recorded as paid-in capital. (d) Relates to the reversal of tax benefits from the exercise of employee stock options that was recorded as paid-in capital.